SB 122 — Fuel Standards & Liability of Petroleum Storage Tank Fund

NOTE:~ ~ ~ tt SENATE BILL 26-122 BY SENATOR(S) Pelton R.

Thisand billRoberts, hasAmabile, beenCarson, preparedCatlin, forExum, theKirkmeyer, signaturesListon, ofMullica, thePeltoB., appropriateRich, legislativeColeman; officers and the Governor.

To determine whether the Governor has signed the bill or taken other action on it, please consult the legislative status sheet, the legislative history, or the Session Laws.

SENATE BILL 26-122 BY SENATOR(S) Pelton R.

and Roberts, Amabile, Carson, Catlin, Exum, Kirkmeyer, Liston, Mullica, Pelton B., Rich, Coleman;

CONCERNINGLIQUIDFUELSCONCERNING ,ANDLIQUID ,INCONNECTIONTHEREWITHFUELS, ,INCREASINGAND, INCONNECTION THEREWITH, INCREASING THE MAXIMUM AMOUNT OF LIABILITY OF THE PETROLEUM STORAGE TANK FUND FOR INDIVIDUAL INCIDENTS AND ALLOWING THE DIRECTOR OF THE DIVISION OF OIL AND PUBLIC SAFETY TO ADOPT A RULE OR ISSUE POLICY GUIDANCE THAT PROVIDES EXCEPTIONS TO SPECIFIC REQUIREMENTS ESTABLISHED ININAN AN ASTM STANDARDFORSTANDARD FOR PETROLEUM PRODUCTSPRODUCTS. .

Be it enacted by the General Assembly ofofthe the State ofofColorado: Colorado:

In Colorado Revised Statutes,Statutes8-20-204, 8-20-204, amend (1) as follows:

Specifications - classesclassesI, I,IIand II, and III - rules.

(1) (a) EXCEPT AS DESCRIBED IN SUBSECTION (1)(b)(l)(b) OF THIS SECTIONSECTION, , all products in classes I, II, andandshaltMUST IIIMUSTllcomplycomply with the ________ Capital letters or bold & italic numbers indicate new material added to existing law;

dashes through words or numbers indicate deletionsdeletionsfrom from existing law andandsuch such material is notnotpart part of the act.

mostcurrentapplicablespecificationsofASTM,whicharefoundinsectionmostcurrentapplicablespecifications ofASTM, which are found insection of that organization's publication "Petroleum Products, Lubricants, and Fossil Fuels" and supplements theretoTOthereto THETOTHE PUBLICATION or revisions thereofOFthereof THEOFTHE PUBLICATION as may be designated by ASTM, except as modified or rejected by this articleTICLEarticle ARTICLE 20 or any rule promulgated ADOPTED pursuant to this articARTICLEarticle 20.ARTICLE20.

If gasoline is blended with ethanol, the ASTM D 4814 specifications shallapplyshalt apply to the base gasoline priortoblending.Blendsofgasolineandethanolshallpriorto MUSTblending. notexceedthe ASTM D 4814 vapor pressure standard;

exceptBlends that,ofgasoline ifand theethanolshaltMUSTnot ethanolexceed isthe blendedASTM atD nine4814 percentvapor orpressure higherstandard; but not exceeding ten percent, the blend mayexceedtheASTMD4814vaporpressurestandardbynomorethan1.0 PSI.

Classexcept Ithat, productsif shallthe notethanol beis blended at anine retailpercent locationor withhigher productsbut commonlynot andexceeding commerciallyten knownpercent, asthe casingheadblend gasoline,may absorptionexceedthe gasoline,ASTM condensationD gasoline,4814vaporpressure dripstandardbyno gasoline,morethan or1.0 naturalPSI. gasoline.

(b)Class INIproducts ORDERshall TOnot ENSUREbe ACCESSblended TOat FUELa PRODUCTSretail FORlocation COMMUNITIESwith INproducts Ccommonly OLORADOand ,THEcommercially DIRECTORknown OFas THEcasinghead DIVISIONgasoline, OFabsorption OILgasoline, ANDcondensation PUBLICgasoline, SAFETYdrip MAYgasoline, ADOPTor Anatural RULEgasoline. OR ISSUE POLICY GUIDANCE THAT PROVIDES EXCEPTIONS TO SPECIFIC REQUIREMENTS ESTABLISHED IN AN ASTM STANDARD DESCRIBED IN SUBSECTION (1)(a)OF THIS SECTION TO ADDRESS CONSUMER PROTECTION , PRICING,SUPPLY NETWORKS ,OR OTHER FACTORSNOTCONSIDEREDBY ASTM WHENFORMULATINGTHESTANDARD .

(b) IN ORDER TO ENSURE ACCESS TO FUEL PRODUCTS FOR COMMUNITIES INCOLORADO, THEDIRECTOROFTHEDIVISIONOFOILAND PUBLIC SAFETY MAY ADOPT A RULE OR ISSUE POLICY GUIDANCE THAT PROVIDES EXCEPTIONS TO SPECIFIC REQUIREMENTS ESTABLISHED IN AN ASTM STANDARD DESCRIBED INSUBSECTION (l)(a) OFTHIS SECTIONTO ADDRESSCONSUMERPROTECTION, PRICING, SUPPLYNETWORKS, OROTHER FACTORSNOTCONSIDEREDBY ASTM WHENFORMULATINGTHESTANDARD.

InColoradoRevisedStatutes,8-20.5-206,amend(2)In Colorado Revised Statutes, 8-20.5-206amend (2) as follows:

FinancialresponsibilityforpetroleumundergroundFinancial responsibilityfor petroleum underground storage tanks - definition - rules.

(2) (a) The maximum amount of liability of the fund under this section shall beSthreebe ISthree million dollars aggregate during a state fiscal year for multiple occurrences involving tanks that are the responsibility of an individual owner or operator, but in no event, shallPTshalt ASEXCEPTASDESCRIBED DESCRIBEDINSUBSECTION(2)(b) INSUBSECTIONOFTHISSECTION,DOESthe (2)(b)OFTHISSECTIONliabilityofthe ,DOESfund theliabilityofthefundexceedexceed two million dollarsperoccurrence.Forpurposesofdollars thissectionper Aoccurrence. SUSEDIN THIS SUBSECTION (2), an "occurrence" means the period of time from identificationthroughremediationofaleak,spill,orreleaseof apetroleum product from an underground storage tank.

InFm thepurposes eventofthis thesectiAs costUSEDIN ofTHIS remediationorthird-partyclaimsSUBSECTION exceeds(2), thean amountavailabletopaysuch"occurrence" costs,means suchthe costsperiod andof claimstime shallfrom beidentificationthrough paidremediation onofa aleak, prospill, rata basis as determined PAGE 2-SENATE BILL 26-122 bythecommitteecreatedinsection8-20.5-104.Anybalanceowedshallbe paidasmoneysbecome MONEYBECOMES availableinthefund.Anyexcess costs that are not paid by the fund or byrelease theofapetroleum federalproduct leakingfrom an underground storagetanktrustfundshallbepaidbyandarethesoleresponsibilityofstorage thetank. responsible owner or operator.

(b)In Athe Nevent OWNERthe ORcost OPERATORof MAYremediation EXCEEDorthird-party THEclaims MAXIMUMexceeds AMOUNTthe OFamount LIABILITYavailable DESCRIBEDto INpay SUBSECTIONsuch (2)(a)OFcosts, THISsuch SECTIONcosts FORand ANclaims INDIVIDUALshall OCCURRENCEbe IFpaid THEon OWNERa ORpro OPERATORrata RECEIVESbasis PERMISSIONas TOdetermined DOPAGE SO2-SENATE FROMBILL BOTH26-122 THEby DIRECTORthe OFcommittee THEcreated DIVISIONin OFsection OIL AND PUBLIC SAFETY AND THE PETROLEUM STORAGE TANK COMMITTEE CREATED IN SECTION 8-20.5-104.

FAny THEbalance DIRECTORowed ANDshall THEbe COMMITTEEpaid GRANTas SUCHmoneys PERMISSIONbecome ,THEMONEY DIRECTORBECOMES ANDavailable THEin COMMITTEEthe SHALLfund. ESTABLISH A NEW MAXIMUM AMOUNT OF LIABILITY PER OCCURRENCE FOR THE OWNER OR OPERATOR .

Any excess costs that are not paid by the fund or by the federal leaking underground storage tank trust fund shall be paid by and are the sole responsibility o fthe responsible owner or operator.

(b) AN OWNEROROPERATORMAY EXCEEDTHE MAXIMUM AMOUNT OF LIABILITY DESCRIBED IN SUBSECTION (2)(a) OF THIS SECTION FOR AN INDIVIDUAL OCCURRENCE IF THE OWNER OR OPERATOR RECEIVES PERMISSION TO DO SO FROM BOTH THE DIRECTOR OF THE DIVISION OF OIL AND PUBLIC SAFETY AND THE PETROLEUM STORAGE TANK COMMITTEE CREATED IN SECTION 8-20.5-104.

IF THE DIRECTOR AND THE COMMITTEE GRANT SUCH PERMISSION, THE DIRECTOR AND THE COMMITTEE SHALL ESTABLISH A NEW MAXIMUM AMOUNT OF LIABILITY PEROCCURRENCE FOR THE OWNEROROPERATOR.

on the day following the expiration ofo f the ninety-dayperiodninety-day period after final adjournment ofo thefthe general assembly(Augustassembly (August 12, 2026, ifi f adjournment sine die is on May 13,13,2026); 2026);

except that, ifi f a referendumpetitionisfiledpursuanttosection1(3)ofarticleVofthestatereferendum petition is filed pursuant to section 1(3) o farVico fthe state constitution against this act or an item, section, or partpa11 ofo f this act within such period, then the act, item, section, or part will not take effect unless PAGE 3-SENATE BILLB ILL 26-122 approvedbythepeopleatthegeneralelectiontobeheldinNovember2026approved bythe people atthe general election to be held inNovember2026 and, in such case, will take effect on the date ofofthe the official declaration of the vote thereon by the governor.

____________________________ ____________________________ James Rashad Coleman, Sr.

Julie~ McCluskieC l u s k i e PRESIDENT OF SPEAKER OF THE HOUSE THE SENATE OF REPRESENTATIVES ____________________________E ____________________________er Esther van Mourik Vanessa Reilly SECRETARY OF CHIEF CLERK OF THE HOUSE THE SENATE OF REPRESENTATIVES APPROVED________________________________________APPROVED (Dateo and"T Time)vesot7isffilA-"::f2.02 _________________________________________'2 Jared~::\3:o0rn,. S.

Polis( GOVERNORate OFan THETime) STATEESTATE OF COLORADO PAGE 4-SENATE BILL 26-122