SB 23-280

Senate Bill 23-280, titled "Hazardous Material Mitigation," creates a new fee on fuel product manufacturers in Colorado. Starting October 1, 2023, these companies will pay up to $.006125 per gallon of fuel delivered for sale or use in the state. The collected funds will be used to support grants that help communities and governments improve safety measures related to hazardous materials transportation and emergency responses. Additionally, the bill modifies an existing fee to fund various programs related to hazardous material regulation and environmental protection. This bill was signed into law by the governor on June 6, 2023, and became effective on August 7, 2023. It will be in place until January 1, 2030, when it is set to expire.

Official Summary

The act creates the fuels impact enterprise (enterprise) in the department of transportation. The enterprise is required to impose a new fuels impact reduction fee on fuel product manufacturers in an amount of up to $.006125 per gallon of fuel products delivered during the previous calendar month for sale or use in Colorado to fund a new fuels impact reduction grant program (program) that the enterprise administers. The fee is collected and deposited in the fuels impact enterprise cash fund until the fund has an available balance of $15 million or more. Under the program, the enterprise provides grants to certain critically impacted communities, governments, and transportation corridors for the improvement of hazardous mitigation corridors and to support local and state government projects related to emergency responses, environmental mitigation, or projects related to the transportation of fuel within the state. The enterprise and the program are repealed, effective January 1, 2030. Beginning October 1, 2023, the act modifies the fee that is currently collected for distribution to the perfluoroalkyl and polyfluoroalkyl substances cash fund by extending the collection of the fee to 2031and by changing the distribution of the fee revenue. Under the new distribution, the state treasurer shall credit: An amount equal to the cost of administering the fee and an existing tax credit to the department of revenue; $2 million of the fee revenue to the department of public safety to support the regulation of 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, and to enforce commercial and hazardous materials critical corridors determined by the chief of the Colorado state patrol; 70% of the amount remaining to the perfluoroalkyl and polyfluoroalkyl substances cash fund; and 30% of the amount remaining 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 movement of freight and hazardous materials. The act also increases the amount of fee revenue that can be held annually in the perfluoroalkyl and polyfluoroalkyl substances cash fund from $8 million to $9 million. Additionally, the act: Extends authorization for the division of oil and public safety to use the petroleum storage tank fund for costs related to petroleum storage tank facility inspections and meter calibrations from September 1, 2023, to September 1, 2033; Delays the effective date of the $8 million cap on the petroleum storage tank fund from September 1, 2023, to September 1, 2033; Allows the director of the division of oil and public safety, in consultation with the petroleum storage tank committee, to establish rules that allow an operator of petroleum storage tanks pay less than 100% reimbursement for remediation expenses paid from the petroleum storage tank fund to the fund; Allows the director of the division of oil and public safety to annually transfer up to $500,000 from the petroleum storage tank fund to the petroleum cleanup and redevelopment fund; Makes hazardous materials troopers eligible for the voluntary firefighter cancer benefits program; and Allows the Colorado state patrol to conform hazardous materials routing regulations to transportation commission rules; $36,272 is appropriated from the general fund to the department of revenue for implementation of the act. APPROVED by Governor June 6, 2023 EFFECTIVE August 7, 2023 NOTE: This act was passed without a safety clause and takes effect 90 days after sine die. (Note: This summary applies to this bill as enacted.)

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