Petroleum storage tank fund - petroleum cleanup and redevelopment fund - creation - rules - repeal.

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(1) There is hereby created in the state treasury the petroleum storage tank fund, which is an enterprise fund. The fund consists of the following:

(a) Registration and annual renewal fees collected from owners or operators of aboveground and underground storage tanks pursuant to section 8-20.5-102 (3); (b) Repealed.

  1. Fees collected pursuant to section 8-20.5-102 (4);

  2. Surcharge funds collected pursuant to section 8-20-206.5;

  3. Moneys reimbursed to the department in payment for costs incurred in the investigation of a release and performance of corrective action pursuant to section 8-20.5-209;

  4. Any moneys appropriated to the fund by the general assembly;

  5. Any moneys granted to the department from a federal agency for administration ofthe underground storage tank program; and

  6. Moneys from bonds issued pursuant to subsection (8) of this section.

(2) (a) The moneys in the petroleum storage tank fund and all interest earned on moneys in the fund shall not be credited or transferred to the general fund at the end of the fiscal year.

(b) Repealed.

(3) The moneys in the petroleum storage tank fund are continuously appropriated to the division of oil and public safety; except that moneys for the purposes specified in paragraphs (b), (f), and (g) of this subsection (3) are subject to annual appropriation by the general assembly. The fund shall be used for:

  1. Petroleum corrective action purposes and third-party liability where the costs exceedthe minimum financial responsibility requirements of the owner or operator provided for in section 8-20.5-206; except that moneys from the fund may not be used for initial abatement and corrective action regarding fuels that are especially prepared and sold for use in aircraft or railroad equipment or locomotives;

  2. Administrative costs, limited each year to the amount of the registration fee stated insection 8-20.5-102, including costs for contract services and costs related to the delegation of duties to units of local government which are incurred by the department of labor and employment in carrying out administrative responsibilities pursuant to this article;

  3. Any costs related to the abatement of fire and safety hazards as ordered by the director of the division of oil and public safety pursuant to section 8-20.5-208 (3);

  4. Investigation of releases or suspected releases and performance of corrective actionfor petroleum releases by the department or its designated agent pursuant to section 8-20.5-209; (e) Any federal program pertaining to petroleum underground storage tanks, which program requires state-matching dollars;

(f) (I) Costs related to petroleum storage tank facility inspections and meter calibrations.

(II) This paragraph (f) is repealed, effective September 1, 2023.

(g) Administrative costs necessary for the implementation of this article and section 820-206.5.

(3.5) (a) Moneys in the petroleum storage tank fund may be used as incentives to underground or aboveground storage tank owners and operators for significant operational compliance or to upgrade existing systems. The director of the division of oil and public safety shall promulgate rules to implement this subsection (3.5).

(b) For purposes of this subsection (3.5), "significant operational compliance" means that an owner or operator of an underground or aboveground storage tank is in full compliance with all of the requirements of this article and, through one or more best management practices that are not otherwise required, has prevented or reduced the threat of a release to the environment.

  1. Appropriations of moneys out of the fund for the purpose of initial abatement response or for corrective action purposes in the cleanup of releases shall be used only for those stated purposes and shall not be used for any administrative costs incurred by the department. Any amounts used for initial abatement response or for corrective action purposes shall be reported annually to the general assembly and the joint budget committee.

  2. Subject to section 8-20.5-104, the fund shall be available only to those undergroundand aboveground storage tanks owners or operators who are in compliance with the provisions of section 8-20.5-209 and regulations promulgated pursuant to sections 8-20.5-202 and 8-20.5-302.

  3. Moneys in the petroleum storage tank fund shall not be used: (a) Repealed.

(b) To fund any programs that are not specifically stated within this section.

(7) (a) Subject to sections 8-20.5-206 (6) and 8-20.5-303 (6), owners and operators of underground and aboveground storage tanks on fee lands shall be eligible for access to the fund if the tank owner or operator:

  1. Has registered such tanks pursuant to section 8-20.5-102 and paid the surchargesimposed by section 8-20-206.5;

  2. Can demonstrate that the owner or operator is in compliance with the rules promulgated pursuant to sections 8-20.5-202 and 8-20.5-302; and

  3. Can demonstrate that the owner or operator has complied with sections 8-20.5-209 and 8-20.5-304 and any other rules, policies, and procedures of the department concerning corrective action.

  1. Underground and aboveground storage tank owners and operators who have beendenied access to the fund prior to July 1, 2005, based upon a determination that the tanks are on fee lands, are eligible to reapply for reimbursement from the fund if the application is filed prior to December 31, 2005, and is not barred by settlement or other agreement.

  2. Nothing in this subsection (7) shall be construed to modify the department's authorityto regulate operation of or corrective action for underground and aboveground storage tanks on fee lands.

(7.5) In addition to the sources identified in subsection (1) of this section, the petroleum storage tank fund includes the amount transferred from the petroleum cleanup and redevelopment fund in accordance with subsection (9)(e)(II) of this section. On October 15, 2020, and the fifteenth day of each of the next seven months, the state treasurer shall transfer five hundred thousand dollars from the petroleum storage tank fund to the general fund. These transfers are repayment for the transfer from the petroleum cleanup and redevelopment fund, as the original amount transferred would have otherwise transferred to the general fund.

  1. The executive director of the department is authorized to issue bonds to reimburseassessment and corrective action costs to remediate petroleum contamination. The petroleum storage tank committee may temporarily raise such bonding limits in the event of extraordinary circumstances or environmental conditions.

  2. (a) There is hereby created in the state treasury the petroleum cleanup and redevelopment fund, which is referred to in this subsection (9) as the redevelopment fund. The redevelopment fund's sources of revenue are:

  1. Civil penalties collected pursuant to section 8-20.5-107;

  2. Any public or private gifts, grants, or donations to the redevelopment fund receivedby the department;

  3. Any legislative appropriations made to the redevelopment fund; and

  4. Earned interest, which the state treasurer shall deposit in the redevelopment fund.

(b) (I) The department may use revenues in the redevelopment fund for administration, investigation, abatement action, and preparing and implementing corrective action plans for petroleum releases not covered by the petroleum storage tank fund if, in the opinion of the director of the division of oil and public safety, such actions would enhance environmental protection and beneficial use of the property affected by the releases. The revenues in the redevelopment fund:

  1. Remain in the fund and shall neither be credited nor transferred to the general fundat the end of any fiscal year;

  2. Are exempt from section 24-75-402, C.R.S.; and

  3. Are continuously appropriated to the division of oil and public safety for the purposes stated in this section and are not subject to annual appropriation by the general assembly; except that the uses of the fund for the department's costs in administering this subsection (9) are subject to annual appropriation by the general assembly.

(II) Subject to the availability of money in the redevelopment fund, the maximum amount payable from the redevelopment fund for any single corrective action plan must not exceed fifty percent of the eligible cleanup costs or five hundred thousand dollars, whichever is less.

  1. Repealed.

  2. The division of oil and public safety shall promulgate rules to implement this subsection (9).

  3. (I) Notwithstanding any other provision of this section to the contrary, on June 30,2020, the state treasurer shall transfer two million dollars from the redevelopment fund to the general fund.

(II) Notwithstanding any other provision of this section, on June 29, 2020, the state treasurer shall transfer four million dollars from the redevelopment fund to the petroleum storage tank fund created in subsection (1) of this section.

Source: L. 95: Entire article added, p. 393, § 1, effective July 1. L. 2000: (3)(f) and (6) added, p. 1383, §§ 1, 2, effective May 30. L. 2001: (3)(c) amended, p. 1126, § 43, effective June 5. L. 2002: (2) amended, p. 150, § 2, effective March 27; (3)(f) amended, p. 950, § 1, effective August 7. L. 2003: (3)(g) added and (6)(a) repealed, p. 2665, §§ 3, 2, effective June 5. L. 2005: IP(1) amended and (1)(h) and (8) added, p. 1326, §§ 1, 2, effective July 1; (7) added, p. 416, § 1, effective July 1. L. 2007: IP(3), (3)(a), and (3)(f)(II) amended, p. 387, § 3, effective April 3; (3.5) added, p. 980, § 1, effective July 1. L. 2010: (3)(f)(II) amended, (HB 10-1185), ch. 82, p. 276, § 2, effective August 11. L. 2013: IP(1) amended, (1)(b) repealed, and (9) added, (HB 131252), ch. 247, p. 1196, § 1, effective May 18. L. 2014: (9)(b)(I) amended, (HB 14-1334), ch. 370, p. 1762, § 1, effective June 6. L. 2015: (3.5) added, (HB 15-1299), ch. 162, p. 494, § 1, effective August 5. L. 2016: (2)(b) repealed, (HB 16-1408), ch. 153, p. 472, § 26, effective July 1; IP(3) and (3)(f)(II) amended, (HB 16-1044), ch. 1, p. 1, § 2, effective August 10. L. 2020: (7.5) and (9)(e) added, (HB 20-1406), ch. 178, p. 810, § 1, effective June 29.

Editor's note: (1) This section is similar to former § 25-18-109 as it existed prior to 1995.

(2) Subsection (9)(c)(II) provided for the repeal of subsection (9)(c), effective July 1, 2014. (See L. 2013, p. 1196.)


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