Read the full stored bill text
Second Regular Session
Seventy-fifth General Assembly
STATE OF COLORADO
REVISED
This Version Includes All Amendments Adopted
on Second Reading in the Second House
LLS NO. 26-0835.01 Richard Sweetman x4333 SENATE BILL 26-122
Senate Committees House Committees
Business, Labor, & Technology Agriculture, Water & Natural Resources
A BILL FOR AN ACT
CONCERNING LIQUID FUELS , AND , IN CONNECTION THEREWITH ,101
INCREASING THE MAXIMUM AMOUNT OF LIABILITY OF THE102
PETROLEUM STORAGE TANK FUND FOR INDIVIDUAL INCIDENTS103
AND ALLOWING THE DIRECTOR OF THE DIVISION OF OIL AND104
PUBLIC SAFETY TO ADOPT A RULE OR ISSUE POLICY GUIDANCE105
THAT PROVIDES EXCEPTIONS TO SPECIFIC REQUIREMENTS106
ESTABLISHED IN AN ASTM STANDARD FOR PETROLEUM107
PRODUCTS.108
Bill Summary
(Note: This summary applies to this bill as introduced and does
not reflect any amendments that may be subsequently adopted. If this bill
passes third reading in the house of introduction, a bill summary that
applies to the reengrossed version of this bill will be available at
HOUSE
2nd Reading Unamended
April 14, 2026
SENATE
3rd Reading Unamended
March 24, 2026
SENATE
Amended 2nd Reading
March 23, 2026
SENATE SPONSORSHIP
Pelton R. and Roberts, Amabile, Carson, Catlin, Coleman, Exum, Kirkmeyer, Liston,
Mullica, Pelton B., Rich
HOUSE SPONSORSHIP
Winter T. and Lukens,
Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment.
Capital letters or bold & italic numbers indicate new material to be added to existing law.
Dashes through the words or numbers indicate deletions from existing law.
http://leg.colorado.gov.)
Under current law, the maximu m amount of li ability 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 bill increases the maximum liability to
$2,500,000 per occurrence. Additionally, an owner or operator of an
underground or aboveground storage tank (owner or operator) may
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 bill allows the director to adopt a rule or issue policy
guidance that provides exceptions to specific requirements established in
an ASTM standard.
Be it enacted by the General Assembly of the State of Colorado:1
SECTION 1. In Colorado Revised Statutes, 8-20-204, amend (1)2
as follows:3
8-20-204. Specifications - classes I, II, and III - rules.4
(1) (a) EXCEPT AS DESCRIBED IN SUBSECTION (1)(b) OF THIS5
SECTION, all products in classes I, II, and III shall MUST comply with the6
most current applicable specifications of ASTM, which are found in7
section 5 of that organization's publication "Petroleum Products,8
Lubricants, and Fossil Fuels" and supplements thereto TO THE9
PUBLICATION or revisions thereof OF THE PUBLICATION as may be10
designated by ASTM, except as modified or rejected by this article11
ARTICLE 20 or any rule promulgated ADOPTED pursuant to this article12
ARTICLE 20. If gasoline is blended with ethanol, the ASTM D 481413
specifications shall apply to the base gasoline prior to blending. Blends14
of gasoline and ethanol shall MUST not exceed the ASTM D 4814 vapor15
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pressure standard; except that, if the ethanol is blended at nine percent or1
higher but not exceeding ten percent, the blend may exceed the ASTM D2
4814 vapor pressure standard by no more than 1.0 PSI. Class I products3
shall not be blended at a retail location with products commonly and4
commercially known as casinghead gasoline, absorption gasoline,5
condensation gasoline, drip gasoline, or natural gasoline.6
(b) I N ORDER TO ENSURE ACCESS TO FUEL PRODUCTS FOR7
COMMUNITIES IN COLORADO, THE DIRECTOR OF THE DIVISION OF OIL AND8
PUBLIC SAFETY MAY ADOPT A RULE OR ISSUE POLICY GUIDANCE THAT9
PROVIDES EXCEPTIONS TO SPECIFIC REQUIREMENTS ESTABLISHED IN AN10
ASTM STANDARD DESCRIBED IN SUBSECTION (1)(a) OF THIS SECTION TO11
ADDRESS CONSUMER PROTECTION, PRICING, SUPPLY NETWORKS, OR OTHER12
FACTORS NOT CONSIDERED BY ASTM WHEN FORMULATING THE13
STANDARD.14
SECTION 2. In Colorado Revised Statutes, 8-20.5-206, amend15
(2) as follows:16
8-20.5-206. Financial responsibility for petroleum17
underground storage tanks - definition - rules.18
(2) (a) The maximum amount of liability of th e fund under this19
section shall be IS three million dollars aggregate during a state fiscal year20
for multiple occurrences involving tanks that are the responsibility of an21
individual owner or operator, but in no event, shall EXCEPT AS DESCRIBED22
IN SUBSECTION (2)(b) OF THIS SECTION , DOES the liability of the fund23
exceed two million dollars per occurrence. For purposes of this section24
AS USED IN THIS SUBSECTION (2), an "occurrence" means the period of25
time from identification through remediation of a leak, spill, or release of26
a petroleum product from an underground storage tank. In the event the27
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cost of remediation or third-party claims exceeds the amount available to1
pay such costs, such costs and claims shall be paid on a pro rata basis as2
determined by the committee created in section 8-20.5-104. Any balance3
owed shall be paid as moneys become MONEY BECOMES available in the4
fund. Any excess costs that are not paid by the fund or by the federal5
leaking underground storage tank trust fund shall be paid by and are the6
sole responsibility of the responsible owner or operator. 7
(b) AN OWNER OR OPERATOR MAY EXCEED THE MAXIMUM AMOUNT8
OF LIABILITY DESCRIBED IN SUBSECTION (2)(a) OF THIS SECTION FOR AN9
INDIVIDUAL OCCURRENCE IF THE OWNER OR OPERATOR RECEIVES10
PERMISSION TO DO SO FROM BOTH THE DIRECTOR OF THE DIVISION OF OIL11
AND PUBLIC SAFETY AND THE PETROLEUM STORAGE TANK COMMITTEE12
CREATED IN SECTION 8-20.5-104. IF THE DIRECTOR AND THE COMMITTEE13
GRANT SUCH PERMISSION , THE DIRECTOR AND THE COMMITTEE SHALL14
ESTABLISH A NEW MAXIMUM AMOUNT OF LIABILITY PER OCCURRENCE FOR15
THE OWNER OR OPERATOR.16
SECTION 3. Act subject to petition - effective date. This act17
takes effect at 12:01 a.m. on the day following the expiration of the18
ninety-day period after final adjournment of the general assembly (August19
12, 2026, if adjournment sine die is on May 13, 2026); except that, if a20
referendum petition is filed pursuant to section 1 (3) of article V of the21
state constitution against this act or an item, section, or part of this act22
within such period, then the act, item, section, or part will not take effect23
unless approved by the people at the general election to be held in24
November 2026 and, in such case, will take effect on the date of the25
official declaration of the vote thereon by the governor.26
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