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 ...
Summary
SB 26-122 makes two main changes to Colorado law governing liquid fuels and petroleum storage tanks. First, it raises the Petroleum Storage Tank Fund’s maximum liability for a single leak, spill, or release from $2 million to $2.5 million per occurrence. The bill also allows an underground or aboveground storage tank owner or operator to seek approval from the Division of Oil and Public Safety director and the Petroleum Storage Tank Committee to exceed that cap for a particular incident, with a new per-occurrence limit set for that owner or operator if permission is granted.
Second, the bill gives the director of the Division of Oil and Public Safety authority to adopt rules or issue policy guidance creating exceptions to specific ASTM fuel-standard requirements for class I, II, and III liquid fuels. Those exceptions must be aimed at issues such as consumer protection, pricing, supply networks, or other factors not considered by ASTM when the standards were developed. The bill preserves the general rule that these fuels must comply with the most current applicable ASTM specifications, but adds flexibility for state regulators to address Colorado-specific fuel access concerns.
Impact
The bill amends Colorado Revised Statutes sections 8-20-204 and 8-20.5-206. It increases potential payouts from the Petroleum Storage Tank Fund and creates a discretionary process for setting higher incident-specific liability limits for tank owners or operators with approval from state regulators. It also expands administrative authority in fuel-quality regulation by allowing the director to carve out exceptions from ASTM standards through rulemaking or policy guidance, which could affect fuel suppliers, refiners, distributors, retailers, and storage tank operators subject to state fuel specifications.
Sentiment
The available context suggests the bill was generally supported and ultimately enacted, as reflected by its final status as signed by the governor. The bill’s stated purpose emphasizes improving fuel access for Colorado communities and ensuring adequate financial coverage for petroleum storage tank incidents, indicating a policy rationale focused on practicality and consumer protection rather than controversy. No committee transcripts or recorded votes were provided, so there is no evidence in the record supplied here of organized opposition or divided sentiment.
Contention
The main policy tension in the bill is between maintaining uniform ASTM fuel standards and giving the state flexibility to create exceptions when those standards may not account for Colorado-specific concerns such as supply, pricing, or consumer access. Another potential point of contention is the higher exposure of the Petroleum Storage Tank Fund, since increasing the per-occurrence cap from $2 million to $2.5 million could raise fiscal risk for the fund and, indirectly, for responsible owners or operators if costs exceed available coverage. The bill addresses that concern by allowing case-by-case approval for even higher limits, but that discretion may also be viewed as a point of debate among regulators, industry participants, and fund administrators.