A proposed bill in the Colorado legislature aims to place punitive fees on retailers of fuel products, which could increase costs for consumers while simultaneously shaming them for buying necessary fuel. The legislation is being introduced in a state already known for its strict regulations and environmentally conscious energy production.

In February, Colorado State Rep. Jennifer Bacon, Rep. Junie Joseph, and Sen. Lisa Cutter, introduced HB 1277, interestingly titled “Increasing Transparency Impact of Fuel Products.” The Democrat-sponsored legislation would require any business across the state that sells a fuel product, such as gas stations, to label fuel products as “being linked to global heating and significant health impacts.” A violation of the labeling requirements constitutes a violation of the Colorado Consumer Protection Act, with a hefty penalty of $20,000 per violation.

Last week, the bill continued its way through the state legislature, with the House Energy and Environment Committee reviewing it during a hearing on Friday. During the three-hour marathon discussion on the bill, witnesses and legislators alike expressed worries with the legislation, focusing on negative impacts to Colorado businesses and consumers. In the hearing, Greg Fulton, president of the Colorado Motor Carriers Association, emphasized the burdensome environment currently facing businesses in Colorado:

“This is adding an additional regulation on one of the most regulated industries out there. Currently, Colorado is the sixth most regulated state in the country and this would be one more log to the fire, and an unnecessary one.”

As the Trump administration continues to prioritize increasing energy access and lowering energy costs – in response to a clear message from voters in November that want rational energy policy – Colorado Democrats’ pursuit of more unnecessary regulations on the energy industry stands in stark pushback of consumer goals, unfortunately at the expense of Coloradans.

Increasing Costs for Consumers and Local Businesses

As Energy in Depth has previously analyzed, Coloradans have already been forced to suffer high fuel prices in the name of environmental policies spearheaded by Democrats. House Bill 1277 is another avenue for energy costs to rise across the state. Rep. Ken DeGraaf (R-22) expressed his worries about rising costs during Friday’s hearing:

“We do have people that have to make the choice of eat, rent, or pay for fuel. This affects mostly the energy poor. So we can’t keep doing that by adding up, increasing the cost to it. We need to make energy cheaper.” (emphasis added)

Fuel is a necessity for many people, as they require transportation to complete daily activities, such as going to work. Greg Fulton, president of the Colorado Motor Carriers Association described the unfairness of the legislation in a recent LinkedIn post:

“Evidently the purpose of the bill is to shame buyers for purchasing a product necessary for them to use in many cases to transport their children to school, travel to work, or go to the grocery store. Many lower and middle income families cannot afford an EV but why shame them for purchasing what constitutes a necessity in their life today.”

Statewide groups have also expressed concerns about the bill having negative financial impacts on local businesses throughout the state, with the Colorado Department of Public Health and Environment stating their opposition to the legislation. The Colorado Chamber has also expressed their disapproval of the bill due to its additional burdens, liabilities, and costs for employers statewide.

In Friday’s hearing, multiple small business owners testified that a $20,000 penalty would be detrimental to small businesses. Mary Zarmak, a local fuel station owner with nine locations in Colorado explained:

“This is the most punitive bill I have ever encountered in the state of Colorado. Fines of $20,000 thousand dollars per day for a sign that the state is asking us to pay for and it’s nothing short of virtuous virtue signaling from a highly funded environmental group.” (emphasis added)

Jay Euler, VP and General Manager of Colette Enterprises, a petroleum distributor based in Eagle County, similarly shared in the concerns for small businesses:

“Twenty thousand dollars per day is a ridiculous penalty for a non-compliance of a labeling requirement of this nature. This kind of fine is extremely excessive for something such as this and could cause a significant impact for small independent retailers.”

Even Democrats, including Committee Chair Alex Valdez (D-05), could see that the hefty fine is unfair and punitive for local businesses. Rep. Amy Paschal (D-18) admitted:

“But it [the fine] does seem really high and punitive to me. Especially when I look at the situation of someone who is a mom and pop gas station and you know five days could be a hundred thousand dollars, that seems exorbitant to me.”

Inaccurate Information for Consumers

Another widely shared concern regarding the legislation is the potential for inaccurate information forcibly being shared to consumers. The labels would focus only on the negative impacts of fuel products and attempt to be a one-size-fits-all requirement, rather than providing consumers with more comprehensive, accurate information about fuel products. During the hearing, Greer Bailey, representative of Colorado Fuel Marketers further explained:

“We do contest that this is a one-side conversation. Every single fuel from every single biofuel blend, every single blend with an ethanol, LNG, propane, methane capture that the waste haulers are using, all of them have  different emissions. All of them have a different energy benefit and that sticker, as currently considered doesn’t even give any sort of real technical information about what you’re actually doing.”

In the midst of state legislators looking to add more regulations on the oil and gas industry, Colorado energy is already highly regulated and clean. According to the Colorado Oil & Gas Association, Colorado contributes only 0.213 percent to global greenhouse gas emissions. Innovative technology combined with environmental regulations considered to be some of the most stringent in the world mean the energy produced in Colorado is both efficient and environmentally conscious. Energy in Depth has previously analyzed how Colorado is a leader in responsibly sourced oil and gas, despite what state Democrats may portray.

Bottom Line: With House Bill 1277, Colorado legislators are only pursuing another way for energy costs to continue rising across the state in the virtue-signaling name of environmental protection. Designed to shame consumers for choosing critical fuel necessary for daily life, the punitive label is yet another prong in the activist-driven attempt to dismantle fossil fuels – even as Colorado has some of the highest regulatory standards in the nation.