Colorado Senate Bill SB286

Colorado 2025 Regular Session

• Introduced: 4/9/25
• Refer: 4/9/25
• Report Pass: 4/16/25
• Refer: 4/16/25

Caption

Petroleum Products Fees & Penalties

Impact

The bill will result in significant alterations to existing state statutes governing the regulation of petroleum products. Notably, it introduces a civil penalty mechanism for violations of fuel quality standards, permitting penalties up to $5,000 for non-compliance in specific areas, particularly for reformulated gasoline in 'nonattainment' areas as defined by federal criteria. By adjusting the maximum civil penalty for record-keeping violations at gasoline dispensing facilities to just $500, the bill aims to balance regulatory enforcement with practical considerations of compliance for operators.

Summary

Senate Bill 286 pertains to the collection and management of funds related to petroleum products in Colorado. It specifically authorizes the use of the petroleum storage tank fund to cover costs associated with the relocation or redevelopment of the division of oil and public safety's petroleum laboratory. This shift in fund usage reflects the state's ongoing efforts to ensure that its regulatory framework can adapt to the evolving needs of environmental management and safety in the petroleum sector. The bill also modifies penalties related to the quality assurance of gasoline, establishing more stringent enforcement measures.

Contention

While the bill aims to enhance state capabilities in monitoring and regulating petroleum-related activities, transference of funds from the petroleum storage tank fund has raised discussions among stakeholders. Concerns revolve around the implications of reallocating these funds, which had been traditionally used for managing environmental cleanups, towards laboratory redevelopment. Furthermore, the changes in penalty structures could provoke debates on the fairness and effectiveness of such regulations for small business operators within the petroleum market.