2023 Colorado Revised Statutes › Title 8 - LABOR AND INDUSTRY (§§ 8-1-101 — 8-88-207) › LABOR I - DEPARTMENT OF LABOR AND EMPLOYMENT (§§ 8-1-101 — 8-20.5-401) › FUEL PRODUCTS (§§ 8-20-101 — 8-20.5-401) › Article 20 - FUEL PRODUCTS (§§ 8-20-101 — 8-20-1004) › Part 2 - FUEL PRODUCTS (§§ 8-20-201 — 8-20-235) › Section 8-20-206.5 - [Effective 8/7/2024] Environmental response surcharge - liquefied petroleum gas and natural gas inspection fund - perfluoroalkyl and polyfluoroalkyl substances cash fund - hazardous materials infrastructure cash fund - fuels impact reduction grant program - definitions

(1)
(a)
Every first purchaser of odorized liquefied petroleum gas, every manufacturer of fuel products who manufactures such products for sale within Colorado or who ships such products from any point outside of Colorado to a distributor within Colorado, and every distributor who ships such products from any point outside of Colorado to a point within Colorado shall pay to the executive director of the department of revenue, each calendar month, either twenty-five dollars per tank truckload of fuel products delivered during the previous calendar month for sale or use in Colorado or the fee for odorized liquefied petroleum gas and natural gas as specified in paragraph (d) of this subsection (1), whichever is applicable. Such payment shall be made on forms prescribed and furnished by the executive director. The provisions of this section shall not apply to fuel that is especially prepared and sold for use in aircraft or railroad equipment or locomotives.
(b)
In the event the available fund balance in the petroleum storage tank fund is greater than twelve million dollars, no surcharge shall be imposed, but if the available fund balance in the fund is less than or equal to:
(I)
Twelve million dollars, the fee imposed by paragraph (a) of this subsection (1) shall be fifty dollars per tank truckload;
(II)
Six million dollars, the fee imposed shall be seventy-five dollars per tank truckload;
(III)
Three million dollars, the fee imposed shall be one hundred dollars per tank truckload.
(c)
Notwithstanding subsection (1)(b) of this section, on and after September 1, 2033, if the available fund balance in the petroleum storage tank fund is greater than eight million dollars, no surcharge shall be imposed, but if the available fund balance in the fund is less than or equal to eight million dollars, the fee imposed by subsection (1)(a) of this section is twenty-five dollars per tank truckload.
(d)
Notwithstanding paragraph (b) of this subsection (1), the executive director of the department of revenue shall have the authority to determine and adjust a fee for odorized liquefied petroleum gas and natural gas, not to exceed ten dollars per tank truckload for liquefied petroleum gas and liquefied natural gas and per every eight thousand gallon equivalents for compressed natural gas.
(e)
(I)
There is hereby created the liquefied petroleum gas and natural gas inspection fund within the state treasury. Neither this section nor section
8-20.5-103
shall be construed to make the liquefied petroleum gas and natural gas inspection fund an enterprise fund. Such fund shall consist of:
(A)
Liquefied petroleum gas and natural gas inspection moneys collected pursuant to this article;
(B)
Civil penalties collected as a result of court actions pursuant to section
8-20-104
;
(C)
Any moneys appropriated to the fund by the general assembly; and
(D)
Any moneys granted to the department from a federal agency or trade association for administration of the department's liquefied petroleum gas and natural gas inspection program.
(II)
The executive director of the department of revenue shall adjust the fees collected pursuant to this article so that the balance of unexpended and unencumbered moneys in the liquefied petroleum gas and natural gas inspection fund does not exceed the amount necessary to accumulate and maintain in the liquefied petroleum gas and natural gas inspection fund a reserve sufficient to defray administrative expenses of the division of oil and public safety for a period of two months.
(III)
The moneys in the fund shall be subject to annual appropriation by the general assembly. Moneys in the fund shall only be used for costs related to:
(A)
Initial and subsequent inspections of liquefied petroleum gas and natural gas installations;
(B)
Proving, including calibrating and adjusting, liquefied petroleum gas and natural gas meters and dispensers;
(C)
Abatement of fire and safety hazards at liquefied petroleum gas and natural gas installations;
(D)
Investigation of reported liquefied petroleum gas and natural gas that requires state matching dollars;
(E)
Any federal program pertaining to liquefied petroleum gas and natural gas that requires state matching dollars;
(F)
Liquefied petroleum gas and natural gas product quality testing;
(G)
Administrative costs, including costs for contract services; and
(H)
Defraying the salaries and operating expenses incurred by the department of labor and employment in the administration of this article as it pertains to liquefied petroleum gas and natural gas installations, meters, and dispensers. Such moneys shall be appropriated for such purposes by the general assembly.
(IV)
The moneys in the liquefied petroleum gas and natural gas inspection fund and all interest earned on the moneys in the fund shall remain in such fund and shall not be credited or transferred to the general fund or any other fund at the end of any fiscal year.
(1.5)
Notwithstanding the amount specified for any fee or surcharge in subsection (1) of this section, the executive director by rule or as otherwise provided by law may reduce the amount of one or more of the fees or surcharges if necessary pursuant to section
24-75-402 (3)
, C.R.S., to reduce the uncommitted reserves of the fund to which all or any portion of one or more of the fees or surcharges is credited. After the uncommitted reserves of the fund are sufficiently reduced, the executive director by rule or as otherwise provided by law may increase the amount of one or more of the fees or surcharges as provided in section
24-75-402 (4)
, C.R.S.
(2)
The fee or surcharge imposed by subsection (1) of this section shall be collected, administered, and enforced in the same manner as the fuel taxes imposed pursuant to the provisions of article
27
of title
39
, C.R.S., and the same penalty and interest provisions shall apply.
(3)
(a)
Except as set forth in paragraph (b) of this subsection (3), it is the duty of every manufacturer or distributor as described in subsection (1) of this section to compute the amount of the surcharge payable on all tank truckloads sold by the manufacturer or distributor and separately state the surcharge due on statements issued with each purchase of fuel. In the event that the manufacturer or distributor sells such fuel to a retailer or consumer or consumes such fuel, the manufacturer or distributor shall pay to the department of revenue the surcharge imposed in subsection (1) of this section.
(b)
For compressed natural gas, the fuel distributor who reports the gallons for purposes of paying the tax set forth in article
27
of title
39
, C.R.S., shall pay the surcharge imposed in subsection (1) of this section to the department of revenue.
(4)
For the purposes of this section:
(a)
"Available fund balance" means the sum of the current year revenues and the previous fund balance minus the sum of the obligations approved by the petroleum storage tank committee pursuant to section
8-20.5-104
and the costs incurred by the division of oil and public safety for purposes of administering articles
20
and
20.5
of this title.
(b)
"Fuel product" means gasoline, blended gasoline, gasoline sold for gasohol production, gasohol, diesel, biodiesel blends, natural gas, and special fuels, and special fuel mixes with alcohol.
(c)
"Tank truckload" means eight thousand gallons or gallon equivalents.
(5)
Repealed.
(6)
(a)
In addition to the payments collected pursuant to subsections (1)(a) and (8)(a) of this section, the executive director of the department of revenue shall also collect a fee to:
(I)
Fund the perfluoroalkyl and polyfluoroalkyl substances cash fund;
(II)
Support the department of transportation in functions related to freight movement and infrastructure in the state, including the functions of the freight mobility and safety branch of the transportation development division of the department of transportation created in section
43-1-117 (4)
, as well as infrastructure projects that enhance the safety of movement of commercial materials;
(III)
Support the Colorado state patrol in regulating hazardous materials on highways in the state; and
(IV)
Pay the costs to the department of revenue for administering the fee.
(b)
On and after September 1, 2020, but before September 1, 2031, every manufacturer of fuel products that manufactures such products for sale within Colorado or that ships such products from any point outside of Colorado to a distributor within Colorado and every distributor that ships such products from any point outside of Colorado to a point within Colorado shall pay to the executive director of the department of revenue, each calendar month, twenty-five dollars per tank truckload of fuel products delivered during the previous calendar month for sale or use in Colorado. This section does not apply to fuel that is used in aviation or to odorized liquefied petroleum gas and natural gas.
(c)
[Repealed by 2024 amendment.]
(d)
[Repealed by 2024 amendment.]
(d.5)
Beginning October 1, 2023, and every October 1 thereafter through October 1, 2031, the executive director of the department of revenue shall transmit any fee collected in accordance with this subsection (6) to the state treasurer, who shall credit:
(I)
First, the costs to the department of revenue for administering the fee and the costs to the department of revenue for administering the tax credit created in section
39-30-104 (7)
;
(II)
Second, two million dollars to the department of public safety for use by the Colorado state patrol to support the regulation of and response to hazardous materials on highways in the state, to make employer contributions to a multiple employer health trust in order to participate in the voluntary firefighter cancer benefits program pursuant to part 4 of article
5
of title
29
, and as well as to enforce commercial and hazardous materials critical corridors designated by the chief of the Colorado state patrol; and
(III)
Third, of the amount remaining:
(A)
Seventy percent to the perfluoroalkyl and polyfluoroalkyl substances cash fund; and
(B)
Thirty percent to the department of transportation to support functions related to the transportation of hazardous materials and the safe and efficient movement of freight, as well as to support infrastructure projects that enhance the safety of the movement of freight and hazardous materials such as the installation of foam suppression systems in the Eisenhower-Johnson tunnels, the mitigation of hazards in Glenwood Canyon, and other uses necessary to secure the safe transport of fuels through the I-70 mountain corridor.
(e)
(I)
Before October 1, 2023, notwithstanding subsection (6)(b) of this section, if the available fund balance in the perfluoroalkyl and polyfluoroalkyl substances cash fund is greater than eight million dollars, the executive director of the department of revenue shall not collect the fee described in subsection (6)(b) of this section, but if the available balance in the fund is less than eight million dollars within a fiscal year, the executive director of the department of revenue shall impose a fee in accordance with subsection (6)(b) of this section.
(II)
On or after October 1, 2023, notwithstanding subsection (6)(b) of this section, if the available fund balance in the perfluoroalkyl and polyfluoroalkyl substances cash fund is greater than nine million dollars, the executive director of the department of revenue shall not collect the fee described in subsection (6)(b) of this section, but if the available balance in the fund is less than nine million dollars within a fiscal year, the executive director of the department of revenue shall impose a fee in accordance with subsection (6)(b) of this section.
(f)
As used in this subsection (6) and subsection (8) of this section, "fuel products" means all gasoline; diesel; biodiesel; biodiesel blends; kerosene; and all alcohol blended fuels that are produced, compounded, and offered for sale or used for the purpose of generating heat, light, or power in internal combustion engines or fuel cells, for cleaning, or for any other similar usage. "Fuel products" does not include fuel that is used in aviation or odorized liquefied petroleum gas and natural gas.
(7)
(a)
There is hereby created in the state treasury the perfluoroalkyl and polyfluoroalkyl substances cash fund, referred to in this subsection (7) as the "fund". The fund consists of money credited to the fund pursuant to subsection (6) of this section and any other money that the general assembly may appropriate or transfer to the fund.
(b)
The money in the fund shall not be deposited in or transferred to the general fund or any other fund. The state treasurer shall credit all interest and income derived from the deposit and investment of money in the fund to the fund. Any unexpended and unencumbered money in the fund shall remain in the fund and shall not be credited or transferred to the general fund or any other fund.
(c)
Money in the fund is continuously appropriated for costs related to:
(I)
Administering the perfluoroalkyl and polyfluoroalkyl substances grant program and awarding grants in accordance with section
25-5-1310
;
(II)
Administering the perfluoroalkyl and polyfluoroalkyl substances take-back program and purchasing and disposing of eligible materials under the take-back program in accordance with section
25-5-1311
; and
(III)
Providing technical assistance in locating and studying perfluoroalkyl and polyfluoroalkyl substances to communities, stakeholders, and regulatory boards or commissions for the following purposes:
(A)
Developing guidance and recommendations regarding human health-based standards for perfluoroalkyl and polyfluoroalkyl substances in water or other media; and
(B)
Identifying safe disposal methods of materials containing perfluoroalkyl and polyfluoroalkyl substances.
(8)
(a)
In addition to the payments collected under subsections (1)(a) and (6) of this section, beginning September 1, 2023, the fuels impact enterprise created in section
43-4-1503
shall impose a fuels impact reduction fee, the executive director of the department of revenue shall collect the fee on behalf of the fuels impact enterprise, and the state treasurer shall credit an amount of the fee revenue to the department of revenue to cover the costs of collecting the fee.
(b)
(I)
On and after September 1, 2023, every manufacturer of fuel products who manufactures such products for sale within Colorado or who ships such products from any point outside of Colorado to a distributor within Colorado and every distributor who ships such products from any point outside of Colorado to a point within Colorado shall pay to the executive director of the department of revenue six thousand one hundred twenty-five millionths of a dollar per gallon of fuel products delivered during the previous calendar month for sale or use in Colorado or a lesser amount determined by the fuels impact enterprise. The distributor shall pay this fee on a per gallon basis and at the same time and on the same form as the fees collected pursuant to subsections (1) and (6) of this section.
(II)
As used in this subsection (8)(b), "distributor" means the person that remits the applicable state fee imposed pursuant to subsection (1) or (6) of this section.
(II)
As used in this subsection (8)(b), "distributor" means the person who remits the applicable state fee imposed pursuant to subsection (1) or (6) of this section.
(c)
On and after September 1, 2023, the executive director of the department of revenue shall transmit any fuels impact reduction fee revenue that it collects on behalf of the fuels impact enterprise pursuant to this subsection (8) to the state treasurer, who shall credit:
(I)
The total amount of fuels impact reduction fee revenue collected by the department of revenue, minus the costs to the department of revenue for administering the fee, to the fuels impact enterprise fund created in section
43-4-1504
; and
(II)
The costs to the department of revenue for administering the fee to the department of revenue.
Amended by 2024 Ch. 42,§ 1, eff. 8/7/2024.
Amended by 2023 Ch. 404,§ 3, eff. 8/7/2023.
Amended by 2021 Ch. 250, § 2, eff. 6/17/2021.
Amended by 2020 Ch. 141, § 1, eff. 6/29/2020.
Amended by 2016 Ch. 1, § 1, eff. 8/10/2016.
Amended by 2013 Ch. 225, § 4, eff. 1/1/2014.
L. 89: Entire section added, p. 405, § 4, effective July 1. L. 92: (1)(b) and (5) amended, p. 1820, § 2, effective June 3. L. 95: (1)(b) amended, p. 419, § 4, effective July 1. L. 96: (1)(b) amended and (1)(c) added, p. 709, § 1, effective May 15. L. 97: (5) repealed, p. 138, § 2, effective March 28. L. 98: (1.5) added, p. 1324, § 22, effective June 1. L. 2000: (1)(b)(III) and (1)(c) amended, p. 1384, § 3, effective May 30. L. 2003: (1)(a) amended and (1)(d) and (1)(e) added, p. 1822, § 6, effective May 21; (1)(a), IP(1)(b), (1)(c), and (4) amended, p. 2664, § 1, effective June 5. L. 2005: (1)(b), (1)(c), and IP(1)(e)(I) amended, p. 1328, § 5, effective July 1; (4)(b) amended, p. 1345, § 7, effective August 8. L. 2010: (1)(a), (1)(c), and (2) amended, (HB 10 -1185), ch. 275, p. 275, § 1, effective August 11. L. 2013: (1)(a), (1)(d), (1)(e), (3), and (4)(b) amended and (4)(c) added, (HB 13-1110), ch. 1056, p. 1056, § 4, effective 1/1/2014. L. 2016: (1)(c) amended, (HB 16 -1044), ch. 1, p. 1, § 1, effective August 10. L. 2020: (6) and (7) added, (SB 20-218), ch. 612, p. 612, § 1, effective June 29.
Amendments to subsection (1)(a) by House Bill 03-1099 and Senate Bill 03-324 were harmonized.
2024 Ch. 42, was passed without a safety clause. See Colo. Const. art. V, § 1(3).
2023 Ch. 404, was passed without a safety clause. See Colo. Const. art. V, § 1(3).
This section is set out more than once due to postponed, multiple, or conflicting amendments.
(1) For the petroleum storage tank fund, see § 8-20.5-103 . (2) For the legislative declaration contained in the 2003 act amending subsection (1)(a) and enacting subsections (1)(d) and (1)(e), see section 1 of chapter 279, Session Laws of Colorado 2003. For the legislative declaration in the 2013 act amending subsections (1)(a), (1)(d), (1)(e), (3), and (4)(b) and adding subsection (4)(c), see section 1 of chapter 225, Session Laws of Colorado 2013. (3) For the legislative declaration in SB 21-260, see section 1 of chapter 250, Session Laws of Colorado 2021.