Committee rejects on-bill financing bill over concerns about funding and repayment mechanics

House Bill 1268, which would have created a revolving on-bill financing program to help customers pay for energy measures and solar installations, failed in the Senate Appropriations Committee and was postponed indefinitely after a 5-2 vote against the measure.

Sponsor Senator Winter described the proposal as a revolving loan fund that the Colorado Energy Office would use to lend to participating utilities, which would in turn offer on-bill repayment to customers. "This is merely a revolving loan fund," Winter said, adding the state has used similar mechanisms in previous years.

Senator Gonzales said she could not support the bill's proposed funding mechanism, which relies on the Unclaimed Property Trust Fund (UPTF). She said she received a fact sheet indicating the legislature is obligated to repay about $662 million to the UPTF from past transfers and that none of that amount had been repaid. "That, to me, raises questions of solvency," Gonzales said, and she said she would vote no because of the funding concern.

Committee members also questioned how loans would be repaid and what would happen if properties were sold before repayment. Senator Kirk Meyer asked whether there would be a lien on sold property; Senator Mullica said the loan "passes with the meter" and the repayment obligation moves to the next utility customer. Sponsors and members also discussed tax credits and utility repayment flows.

The recorded vote on the motion to advance the bill showed Senators Gonzales, Kirkmeyer, Kocher, Liston and Lundin voting no; the vice chair and the chair voted yes. After the failed vote the motion to postpone the bill indefinitely was made and the committee recorded that the bill was postponed indefinitely.