SB 25-286
Fiscal Note
Legislative Council Staff
Nonpartisan Services for Colorado’s Legislature
SB 25-286: PETROLEUM PRODUCTS FEES & PENALTIES
Prime Sponsors:
Sen. Hinrichsen; Snyder
Published for: Senate Transportation & Energy
Drafting number: LLS 25-1036
Fiscal Analyst:
Josh Abram, 303-866-3561
josh.abram@coleg.gov
Version: Initial Fiscal Note
Date: April 11, 2025
Fiscal note status: The fiscal note reflects the introduced bill.
Summary Information
Overview. The bill authorizes the Colorado Department of Labor and Employment to fund costs related
to relocation or redevelopment of the Division of Oil and Public Safety's Petroleum Laboratory using the
Petroleum Storage Tank Cash Fund, and creates emissions- related civil penalties on petroleum marketers.
Types of impacts. The bill is projected to affect the following areas on an ongoing basis:
State Revenue State Expenditures
Appropriations. No appropriation is required.
Table 1
State Fiscal Impacts
Type of Impact FY 2025-26 through FY 2029-30
State Revenue $0
State Expenditures (Cash Funds) $6,400,000
Transferred Funds $0
Change in TABOR Refunds $0
Change in State FTE 0.0 FTE
Page 2
April 11, 2025 SB 25-286
Summary of Legislation
The bill authorizes the use of money in the Petroleum Storage Tank Cash Fund for costs related
to the relocation or redevelopment of the Division of Oil and Public Safety's (OPS’s) Petroleum
Laboratory in the Colorado Department of Labor and Employment (CDLE) through July 1, 2030.
The division is required to reserve money in the fund to pay costs related to relocation or
redevelopment of the lab. The money reserved in the fund is not included in the available
balance used to determine the amount of the Environmental Response Surcharge on fuel
products.
When the federal Environmental Protection Agency requires the sale of reformulated gasoline in
a nonattainment area in the state, the division may impose a civil penalty up to $5,000 per day
for the retail or wholesale distribution of reformulated gasoline that violates the applicable fuel
quality standard.
The bill also creates a specific civil penalty for a gasoline dispensing facility that fails to file an air
pollutant emission notice or an air permit public notice with the Department of Public Health
and Environment (CDPHE) at $500 per violation, which is a reduction in penalties the CDPHE can
currently collect.
Background
The Petroleum Tank Storage Fund, a state enterprise, reimburses costs related to assessment
and cleanup of petroleum contaminated sites. It is funded with an environmental surcharge fee
assessed per tanker truckload of petroleum products sold in the state, which varies based on
fund balance. The surcharge is currently at its maximum, $100 per tanker truckload. The
surcharge is reduced when the fund balance exceeds certain dollar amounts.
State Revenue
The bill may minimally impact state revenue from fees and civil penalties, as discussed below.
Fee Impact on Petroleum Marketers
While the bill is not expected to change the surcharge amount assessed per tanker truckload of
petroleum, reserving funds within the Petroleum Tank Storage Fund will draw down the balance,
prolonging the higher surcharge of $100 tanker truckload. This fund is not subject to TABOR.
Civil Penalties and Filing Fees
To the extent CDLE assesses civil penalties under the bill, revenue to the Petroleum Cleanup
Redevelopment Fund will increase. Civil penalty collections may decrease for CDPHE, which will
reduce revenue to the General Fund. Finally, the bill may increase revenue to various cash funds
in the Judicial Department from an increase in filing fees from civil case filings. These revenue
sources are subject to TABOR. Page 3
April 11, 2025 SB 25-286
State Expenditures
The bill increases state expenditures in the Department of Labor and Employment by an
estimated $6.4 million through FY 2029-30. These costs, paid from the Petroleum Tank Storage
Fund, which is continuously appropriated to the Division of Oil and Public Safety for this
purpose, are summarized in Table 2 and discussed below. The bill also minimally impacts
workload in the Judicial Department.
Department of Labor and Employment
The cost to relocate the petroleum laboratory is estimated at $6.4 million based on an initial
architectural proposal. Actual costs will be determined through contracting and available funds
reserved. The project is expected to involve updating electric and plumbing systems in an
existing structure to laboratory standards. The Petroleum Tank Storage Fund will continue to
issue reimbursements for petroleum tank clean-ups during this time period.
Table 2
State Expenditures
Department of Labor and Employment
Cost Component FY 2025-26 through FY 2029-30
Laboratory Relocation $6,400,000
Total Costs $6,400,000
Total FTE 0.0 FTE
Judicial Department
The bill may also increase workload in the trial courts if additional civil cases are brought for
noncompliance with applicable fuel quality standards or from failing to file a required air
pollutant emission notice. This fiscal note assumes a high degree of compliance from affected
persons and that most violations will be resolved administratively. Any increase in trial court
workload is anticipated to be minimal.
Effective Date
The bill takes effect 90 days following adjournment of the General Assembly sine die, assuming
no referendum petition is filed, and civil penalties apply to violations committed on or after the
applicable effective date. Page 4
April 11, 2025 SB 25-286
State and Local Government Contacts
Labor and Employment
Judicial
Public Health and Environment
The revenue and expenditure impacts in this fiscal note represent changes from current law under the bill for each
fiscal year. For additional information about fiscal notes, please visit the General Assembly website.