Colorado Bill Increases Petroleum Storage Tank Fund Liability and Allows ASTM Standard Exceptions

Detected March 24th, 2026

Summary

Colorado SB26-122 proposes to increase the maximum liability of the petroleum storage tank fund for individual incidents from $2,000,000 to $2,500,000. The bill also allows the director of the division of oil and public safety to grant exceptions to ASTM International standards for petroleum products through rulemaking or policy guidance.

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What changed

Colorado Senate Bill 26-122, introduced for the 2026 Regular Session, seeks to amend existing regulations concerning liquid fuels and petroleum storage tanks. The bill proposes to increase the maximum liability of the petroleum storage tank fund for individual leaks, spills, or releases from underground storage tanks from $2,000,000 to $2,500,000 per occurrence. Furthermore, it grants the director of the division of oil and public safety the authority to adopt rules or issue policy guidance that may provide exceptions to specific requirements within ASTM International standards for petroleum products.

This proposed legislation will impact owners and operators of underground and aboveground storage tanks by potentially increasing the financial exposure for incidents, while also offering flexibility in adhering to ASTM standards. Compliance officers should monitor the progress of this bill and be prepared to update internal policies and procedures related to spill response, liability limits, and fuel product compliance if it is enacted. The bill's effective date is not yet determined as it is still in the legislative process.

What to do next

Monitor the legislative progress of SB26-122.
Review current spill response and liability policies for potential updates if the bill is enacted.
Assess compliance with ASTM standards and identify any potential exceptions that may become available.

Source document (simplified)

SB26-122

Fuel Standards & Liability of Petroleum Storage Tank Fund

| Type | Bill |
| --- | --- |
| Session | 2026 Regular Session |
| Subjects | Labor & Employment |
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.

Recent Bill (PDF) Recent Fiscal Note (PDF) Bill Summary:

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 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.

(Note: This summary applies to this bill as introduced.)