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SB26-122 • 2026

Fuel Standards & Liability of Petroleum Storage Tank Fund

Under current law, the maximum amount of liability of the petroleum storage tank fund for an individual occurrence of a leak, spill, or release of a petroleum product from an underground storage tank

Energy
Enacted

This bill passed the Legislature and reached final enactment based on the latest official action.

Sponsor
Sen. R. Pelton, Sen. D. Roberts, Rep. M. Lukens, Rep. T. Winter, Sen. J. Amabile, Sen. J. Carson, Sen. M. Catlin, Sen. J. Coleman, Sen. T. Exum, Sen. B. Kirkmeyer, Sen. L. Liston, Sen. K. Mullica, Sen. B. Pelton, Sen. J. Rich, Rep. J. Caldwell, Rep. M. Duran, Rep. R. Gonzalez, Rep. R. Keltie, Rep. G. Rydin, Rep. S. Slaugh, Rep. L. Smith, Rep. L. Suckla, Rep. R. Weinberg, Rep. D. Woog
Last action
2026-05-05
Official status
Governor Signed
Effective date
Not listed

Plain English Breakdown

Using official source text because the generated explanation was unavailable or could not be confirmed against the official bill text.

Fuel Standards & Liability of Petroleum Storage Tank Fund

Under current law, the maximum amount of liability of the petroleum storage tank fund for an individual occurrence of a leak, spill, or release of a petroleum product from an underground storage tank (occurrence) is $2,000,000.

What This Bill Does

  • Under current law, the maximum amount of liability of the petroleum storage tank fund for an individual occurrence of a leak, spill, or release of a petroleum product from an underground storage tank (occurrence) is $2,000,000.
  • The act allows an owner or operator of an underground or aboveground storage tank (owner or operator) to exceed this amount of liability with the permission of the director of the division of oil and public safety (director) and the petroleum storage tank committee (committee).
  • If the director and the committee grant such permission, the director and committee shall establish a new maximum amount of liability per occurrence for the owner or operator.
  • Under current law, all class I, II, and III liquid fuel products must comply with the most current applicable standards of ASTM International.

Limits and Unknowns

  • This entry is temporarily using official source text because the generated explanation could not be confirmed against the official bill text during the last sync.

Amendments

These notes stay tied to the official amendment files and metadata from the legislature.

L.002

Second Reading

Passed [**]

Plain English: SB122_L.002 Amendment No.

  • SB122_L.002 Amendment No.
  • ___________ SB26-122 SENATE FLOOR AMENDMENT Second Reading BY SENATOR Pelton R.
  • 1 Amend printed bill, page 3, line 24, strike "FIVE HUNDRED THOUSAND".
  • ** *** ** *** ** LLS: Richard Sweetman x4333

Bill History

  1. 2026-05-05 Governor

    Governor Signed

  2. 2026-04-27 Governor

    Sent to the Governor

  3. 2026-04-27 House

    Signed by the Speaker of the House

  4. 2026-04-27 Senate

    Signed by the President of the Senate

  5. 2026-04-16 House

    House Third Reading Passed - No Amendments

  6. 2026-04-15 House

    House Third Reading Laid Over Daily - No Amendments

  7. 2026-04-14 House

    House Second Reading Special Order - Passed - No Amendments

  8. 2026-04-09 House

    House Second Reading Laid Over Daily - No Amendments

  9. 2026-04-06 House

    House Committee on Agriculture, Water & Natural Resources Refer Unamended to House Committee of the Whole

  10. 2026-03-25 House

    Introduced In House - Assigned to Agriculture, Water & Natural Resources

  11. 2026-03-24 Senate

    Senate Third Reading Passed - No Amendments

  12. 2026-03-23 Senate

    Senate Second Reading Passed with Amendments - Floor

  13. 2026-03-17 Senate

    Senate Committee on Business, Labor, & Technology Refer Unamended to Senate Committee of the Whole

  14. 2026-02-24 Senate

    Introduced In Senate - Assigned to Business, Labor, & Technology

Official Summary Text

Under current law, the maximum amount of liability of the petroleum storage tank fund for an individual occurrence of a leak, spill, or release of a petroleum product from an underground storage tank (occurrence) is $2,000,000. The act allows an owner or operator of an underground or aboveground storage tank (owner or operator) to exceed this amount of liability with the permission of the director of the division of oil and public safety (director) and the petroleum storage tank committee (committee). If the director and the committee grant such permission, the director and committee shall establish a new maximum amount of liability per occurrence for the owner or operator.
Under current law, all class I, II, and III liquid fuel products must comply with the most current applicable standards of ASTM International. The act allows the director to adopt a rule or issue policy guidance that provides exceptions to specific requirements established in an ASTM standard.
(Note: This summary applies to this bill as enacted.)

Current Bill Text

Read the full stored bill text
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SENATE BILL 26-122
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BY SENATOR(S) Pelton R. and Roberts, Amabile, Carson, Catlin, Exum,
Kirkmeyer, Liston, Mullica, Pelton B., Rich, Coleman;
also REPRESENTATIVE(S) Winter T. and Lukens, Caldwell, Duran,
Gonzalez R., Keltie, Rydin, Slaugh, Smith, Suckla, Weinberg, Woog.
CONCERNING LIQUID FUELS, AND, IN CONNECTION 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 IN AN ASTM STANDARD FOR
PETROLEUM PRODUCTS.
Be it enacted by the General Assembly of the State of Colorado:
SE CTION 1. In Colorado Revised Statutes, 8-20-204, amend (1)
as follows:
8-20-204. Specifications -classes I, II, and III -rules.
(1) (a) EXCEPT AS DESCRIBED IN SUBSECTION (l)(b) OF THIS
SECTION, all products in classes I, II, and III shalt MUST comply with the
Capital letters or bold & italic numbers indicate new material added to existing law; dashes
through words or numbers indicate deletions from existing law and such material is not part of
the act.
most current applicable specifications of ASTM, which are found in section
5 of that organization's publication "Petroleum Products, Lubricants, and
Fossil Fuels" and supplements thereto TO THE PUBLICATION or revisions
thereof OF THE PUBLICATION as may be designated by ASTM, except as
modified or rejected by this article ARTICLE 20 or any rule promulgated
ADOPTED pursuant to this article ARTICLE 20. If gasoline is blended with
ethanol, the ASTM D 4814 specifications shalt apply to the base gasoline
prior to blending. Blends of gasoline and ethanol shalt MUST not exceed the
ASTM D 4814 vapor pressure standard; except that, if the ethanol is
blended at nine percent or higher but not exceeding ten percent, the blend
may exceed the ASTM D 4814 vapor pressure standard by no more than 1.0
PSI. Class I products shall not be blended at a retail location with products
commonly and commercially known as casinghead gasoline, absorption
gasoline, condensation gasoline, drip gasoline, or natural gasoline.
(b) IN ORDER TO ENSURE ACCESS TO FUEL PRODUCTS FOR
COMMUNITIES IN COLORADO, THE DIRECTOR OF THE DIVISION OF OIL AND
PUBLIC SAFETY MAY ADOPT A RULE OR ISSUE POLICY GUIDANCE THAT
PROVIDES EXCEPTIONS TO SPECIFIC REQUIREMENTS ESTABLISHED IN AN
ASTM STANDARD DESCRIBED IN SUBSECTION (l)(a) OF THIS SECTION TO
ADDRESS CONSUMER PROTECTION, PRICING, SUPPLY NETWORKS, OR OTHER
FACTORS NOT CONSIDERED BY ASTM WHEN FORMULATING THE STANDARD.
SECTION 2. In Colorado Revised Statutes, 8-20.5-206, amend (2)
as follows:
8-20.5-206. Financial responsibility for petroleum underground
storage tanks -definition - rules.
(2) (a) The maximum amount of liability of the fund under this
section shall be IS three 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, shalt EXCEPT AS DESCRIBED
IN SUBSECTION (2)(b) OF THIS SECTION, DOES the liability of the fund exceed
two million dollars per occurrence. Fm purposes of this section As USED IN
THIS SUBSECTION (2), an "occurrence" means the period of time from
identification through remediation of a leak, spill, or release of a petroleum
product from an underground storage tank. In the event the cost of
remediation or third-party claims exceeds the amount available to pay such
costs, such costs and claims shall be paid on a pro rata basis as determined
PAGE 2-SENATE BILL 26-122
by the committee created in section 8-20.5-104. Any balance owed shall be
paid as moneys become MONEY BECOMES available in the fund. 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 of the
responsible owner or operator.
(b) AN OWNER OR OPERA TOR MAY EXCEED THE MAXIMUM AMOUNT
OF LIABILITY DESCRIBED IN SUBSECTION (2)(a) OF THIS SECTION FOR AN
INDIVIDUAL OCCURRENCE IF THE OWNER OR OPERA TOR 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
EST AB LISH A NEW MAXIMUM AMOUNT OF LIABILITY PER OCCURRENCE FOR
THE OWNER OR OPERA TOR.
SECTION 3. Act subject to petition - effective date. This act
takes effect at 12:01 a.m. on the day following the expiration of the
ninety-day period after final adjournment of the general assembly (August
12, 2026, if adjournment sine die is on May 13, 2026); except that, if a
referendum petition is filed pursuant to section 1 (3) of article V of the state
constitution against this act or an item, section, or pa11 of this act within
such period, then the act, item, section, or part will not take effect unless
PAGE 3-SENATE BILL 26-122
approved by the people at the general election to be held in November 2026
and, in such case, will take effect on the date of the official declaration of
the vote thereon by the governor.
James Rashad Coleman, Sr.
PRESIDENT OF
THE SENATE
~
E er van Mourik
SECRETARY OF
THE SENATE
~Cluskie
SPEAKER OF THE HOUSE
OF REPRESENTATIVES
Vanessa Reilly
CHIEF CLERK OF THE HOUSE
OF REPRESENTATIVES
APPROVED o"' Tvesot7is ffilA-~ S"::fu 2.02 '=2 ~::\ 3:o0rn,.
( ate an Time)
ESTATE OF COLORADO
PAGE 4-SENATE BILL 26-122