Concerning financing a utility on-bill repayment program to support certain energy-related upgrades.
SB26-148 would create a new statutory framework to expand Colorado Clean Energy Fund’s utility on-bill repayment program, which finances energy-related upgrades for homes and small businesses and allows repayment through monthly utility bills. The bill declares the program to be a public-purpose clean energy financing tool that can reduce upfront costs for energy efficiency, electrification, and related improvements, while also supporting housing resilience, lowering pollution, and advancing statewide emission-reduction goals.
The bill directs the state treasurer to make a $50 million low-interest loan from the unclaimed property trust fund to the Colorado Clean Energy Fund on August 15, 2026, if specified conditions are met. Those conditions include a determination that the loan will not impair the trust fund’s ability to pay claims, confirmation from the Colorado Energy Office that the program aligns with state emission goals, and loan terms that include repayment, reporting, and performance metrics. The loan could be drawn in five $10 million advances, bear interest at up to 2% annually, and be repaid over a maximum 20-year term.
The bill also imposes detailed program rules for participating utilities and the fund. It requires that repayment obligations attach to the utility meter rather than the individual customer, transfer with the property or occupancy unless paid off, and not constitute a lien on real property. It requires disclosures to participants and tenants, notice recording in county real property records, a minimum 5% loss reserve or other credit enhancement for participating utilities, an income-qualified participation pathway, and rules governing service shutoff for nonpayment after charges are more than 90 days past due.
In terms of state law impact, SB26-148 would amend the unclaimed property trust fund statute and add a new part to title 24 governing utility on-bill repayment programs. It would also create ongoing reporting obligations to the Joint Budget Committee, the Colorado Energy Office, and the state treasurer, and it would authorize the Colorado Clean Energy Fund to sell or transfer program receivables so long as state repayment obligations are protected. The bill would effectively use state-controlled trust fund capital to scale a green-bank-style financing program and formalize state oversight of its design and operation.
The overall sentiment reflected in the bill text is strongly favorable toward clean energy financing, affordability, and economic development. The legislation frames the program as a proven mechanism to leverage private capital, reduce energy burdens, and create jobs, and there is no recorded committee testimony or vote detail in the provided materials to indicate opposition or support beyond the bill’s introduction and later postponement indefinitely in Senate Appropriations. The main points of potential contention are the use of unclaimed property trust fund dollars for a long-term loan, the requirement that utilities and property owners accept repayment obligations that follow the meter and appear in title records, and the service-disconnection provisions for delinquent on-bill charges. Utilities, landlords, and consumer advocates could each have different concerns about administrative burden, tenant notice, credit risk, and consumer protections.
The bill would add a new statutory part to Colorado law governing utility on-bill repayment programs and amend the unclaimed property trust fund statute to authorize a specific $50 million loan to the Colorado Clean Energy Fund. It would create legal requirements for program structure, disclosures, property-record notices, utility loss reserves, interest-rate setting, income-qualified access, and repayment enforcement, while preserving existing Public Utilities Commission authority and local utility governance where applicable. The bill would also establish reporting and oversight obligations for the Colorado Energy Office, the state treasurer, and legislative budget staff.
The bill is presented in a strongly supportive, pro-clean-energy tone, emphasizing affordability, emissions reduction, housing resilience, and economic development. The available record does not include committee testimony or vote details, but the bill’s later postponement indefinitely in Senate Appropriations suggests it did not advance, despite the policy rationale laid out in the text. Overall, the framing indicates support for the concept of expanding on-bill financing, with no documented floor debate in the provided materials.
The most notable areas of contention are likely to be the financing source and the mechanics of repayment. Using the unclaimed property trust fund for a long-term loan may raise concerns about protecting the fund’s ability to pay rightful claims, while the requirement that repayment obligations attach to utility service and be recorded in property records may concern property owners, lenders, and tenants. Utilities may also scrutinize the mandatory loss reserve, compliance obligations, and the ability to disconnect service for delinquent on-bill charges, while consumer advocates may focus on disclosure adequacy, hardship protections, and the treatment of tenants who did not choose the upgrade.