Committee advances HB12-68 to finance after adopting on‑bill financing amendments and triggering debate over Unclaimed Property Trust Fund

House Bill 12-68, a proposal to establish a statewide on‑bill repayment program to finance home and building energy efficiency and electrification upgrades, advanced from the Colorado House Energy and Environment Committee to the Committee on Finance with an 8–4 roll call after the committee adopted a strike‑below and two additional amendments to address program design, consumer protections and administrative structure.

Sponsors and bill summary Representative Froelich and Representative Joseph presented the bill to the committee, describing it as a program to create a revolving loan fund to expand existing utility on‑bill finance programs. Representative Froelich said the bill would create a fund that “offers over 20 year span [to] fund the utility on bill programs,” allowing customers to borrow through their utility bills for upgrades — such as windows, insulation, heat pumps and heat‑pump water heaters — and repay the cost on a small monthly addition to the utility bill. Representative Joseph summarized the intent as requiring the Colorado Energy Office to establish a statewide on‑bill repayment program and noted that the program ties repayment to the property’s utility meter rather than to personal credit, aiming to increase accessibility.

Program design and amendments The committee considered a strike‑below (L1), a draft that L2 further amended to tie the bill to provisions in a separate building decarbonization enterprise bill (referred to by sponsors as HB12‑69 language copied into L2 so the enterprise could provide technical support), and a smaller amendment L3 that capped the maximum loan amount per property and addressed tenant/transfer issues. Representative Froelich said L3 set a cap of $50,000 on individual loans to broaden program access.

Funding source and stakeholder concerns A central point of debate was the bill’s proposed seed loan from the Unclaimed Property Trust Fund (UPTF). Sponsors described using UPTF capital as a way to seed a large, low‑cost fund; Representative Joseph and Representative Froelich noted precedent for similar transfers and emphasized the program’s potential to expand upgrades and save household energy costs. The Colorado Department of Treasury and Treasury policy director Leah Marvin Riley testified in an amend position, urging the committee to reconsider UPTF as a funding source. She said the Unclaimed Property Trust Fund "was created to hold unclaimed property in trust for the rightful owners and heirs" and warned about existing litigation and statutory trust obligations. Lisonbee Morgan of the Colorado Bankers Association and the Colorado Association of Realtors and title industry witnesses raised implementation concerns about property transfer, disclosure and the need to make obligations recordable liens rather than rely solely on seller disclosures during a sale.

Supporters and technical testimony The bill drew broad support from local governments, environmental groups, utilities and energy‑efficiency advocates. Testimony in favor came from the Colorado Energy Office director (testimony summarized by a committee staff member), Justin Brandt of the Southwest Energy Efficiency Project, Brett Fleischman of Boulder County, Kristen Stevens (Larimer County commissioner), Jan Rose of the Colorado Coalition for a Livable Climate, Boulder staff, and other local government representatives; many emphasized that on‑bill finance reduces upfront barriers and can yield long‑term savings for residents while reducing greenhouse‑gas emissions. Xcel Energy testified in an amend position that the company had a PUC filing for its own on‑bill program and did not want the state framework to disrupt current PUC proceedings.

Votes and next steps Committee members adopted L3, then L2, then L1 as amended; Representative Joseph moved HB12‑68 as amended to the Committee on Finance with a favorable recommendation. The clerk called the roll: the committee reported the measure passes out of the Energy and Environment Committee 8–4. Committee sponsors and several members urged further work with realtors, bankers and title companies to resolve transfer/notice mechanics before the bill proceeds through finance and to finalize consumer‑protection provisions in rulemaking and program guidance. Representative Soper stated he would vote no, citing principled concerns about borrowing from the Unclaimed Property Trust Fund. Representative Brown and others spoke in favor of advancing the bill to the next committee.

What passed in committee - L1 (strike‑below) — establishes the on‑bill cash fund, directs the Colorado Energy Office to administer loans to participating utilities, and requires that investor‑owned utilities with more than 500,000 customers file a plan with the PUC by a set date — adopted. - L2 — incorporates language to create or align a building decarbonization enterprise to provide technical assistance and to impose a fee on participating utilities to fund the enterprise — adopted; its effective provisions were tied to passage of the companion enterprise legislation. - L3 — caps per‑property loan amounts (sponsor described the cap as $50,000) and clarifies obligations for property transfers and tenant protections; adopted, with sponsors committing to continue technical work with realtors and title companies.

The committee’s action was procedural and included extensive witness testimony and stakeholder discussion; the bill now moves to the Committee on Finance for fiscal and budgetary review and further policy deliberation.