First Regular Session
Seventy-fourth General Assembly
STATE OF COLORADO
REVISED
This Version Includes All Amendments Adopted
on Second Reading in the Second House
LLS NO. 23-0267.01 Sarah Lozano x3858
HOUSE BILL 23-1069
House Committees Senate Committees
Energy & Environment Transportation & Energy
Appropriations Appropriations
A BILL FOR AN ACT
C
ONCERNING THE CREATION OF THE BIOCHAR IN OIL AND GAS WELL101
PLUGGING WORKING ADVISORY GROUP TO MAKE102
RECOMMENDATIONS FOR THE DEVELOPMENT OF A PILOT103
PROGRAM TO STUDY THE USE OF BIOCHAR IN THE PLUGGING OF104
OIL AND GAS
WELLS, AND, IN CONNECTION THEREWITH, MAKING105
AN APPROPRIATION.106
Bill Summary
(Note: This summary applies to this bill as introduced and does
not reflect any amendments that may be subsequently adopted. If this bill
passes third reading in the house of introduction, a bill summary that
applies to the reengrossed version of this bill will be available at
http://leg.colorado.gov
.)
The bill creates the biochar in oil and gas well plugging working
SENATE
2nd Reading Unamended
May 5, 2023
HOUSE
3rd Reading Unamended
April 24, 2023
HOUSE
Amended 2nd Reading
April 21, 2023
HOUSE SPONSORSHIP
McCormick and Amabile, Bacon, Bird, Boesenecker, Brown, deGruy Kennedy, Dickson,
Froelich, Gonzales-Gutierrez, Hamrick, Jodeh, Lindsay, Mabrey, McCluskie, McLachlan,
Ortiz, Parenti, Sharbini, Snyder, Story, Titone, Valdez, Velasco, Weissman, Willford,
Woodrow
SENATE SPONSORSHIP
Cutter and Priola,
Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment.
Capital letters or bold & italic numbers indicate new material to be added to existing law.
Dashes through the words or numbers indicate deletions from existing law. advisory group (work group) in the oil and gas conservation commission
(commission). The work group's purpose is to make recommendations for
the development of a pilot program to study the use of biochar in the
plugging of oil and gas wells.
No later than September 1, 2023, the work group must submit a
draft report to the commission detailing its recommendations for the pilot
program. After coordinating with the commission to develop a final
report, no later than February 1, 2024, the work group must present the
report to the transportation and energy committee of the senate and the
energy and environment committee of the house of representatives.
Be it enacted by the General Assembly of the State of Colorado:1
SECTION 1. Legislative declaration. (1) The general assembly2
finds and declares that:3
(a) It is important to focus on finding innovative solutions to:4
(I) Mitigate the impacts of climate change;5
(II) Further protect human and animal health; and6
(III) Lower the carbon footprint of current methods of plugging7
oil and gas wells;8
(b) The state recognizes the importance of regulating the oil and9
gas industry and supports the implementation of practices and10
technologies to address emission reduction goals and research to develop11
these practices and technologies;12
(c) The state should continue to regulate the plugging of oil and13
gas wells by both state agencies and the oil and gas industry;14
(d) It is important to create opportunities for the oil and gas15
industry to permanently sequester carbon from the atmosphere;16
(e) Exploring the use of biochar in oil and gas well plugging17
operations may potentially open up economic opportunities for Colorado18
to become a leader in the use of biochar in oil and gas well plugging19
operations; and20
1069-2- (f) Biochar could be beneficial to efforts by the oil and gas1
industry to reduce greenhouse gas emissions in Colorado.2
(2) The general assembly further finds and declares that it is in the3
interest of Colorado to convene a working advisory group that4
coordinates with Colorado state university and makes recommendations5
on establishing a pilot program to study the use of biochar in oil and gas6
well plugging operations.7
SECTION 2. In Colorado Revised Statutes, add 34-60-134 as8
follows:9
34-60-134. Biochar in oil and gas well plugging working10
advisory group - created - members - study by Colorado state11
university - recommendations for the development of a pilot program12
- report - definitions - repeal. (1) AS USED IN THIS SECTION, UNLESS THE13
CONTEXT OTHERWISE REQUIRES :14
(a) "BIOCHAR" MEANS THE SOLID CARBON-RICH PRODUCT MADE15
WHEN WOODY BIOMASS UNDERGOES PYROLYSIS IN AN OXYGEN-DEPLETED16
ATMOSPHERE AT APPROXIMATELY EIGHT HUNDRED DEGREES CELSIUS.17
(b) "COLORADO ENERGY OFFICE" MEANS THE COLORADO ENERGY18
OFFICE CREATED IN SECTION 24-38.5-101 (1).19
(c) "DIRECTOR" MEANS THE DIRECTOR OF THE COMMISSION20
APPOINTED PURSUANT TO SECTION 34-60-104.5 (1) OR THE DIRECTOR'S21
DESIGNEE.22
(d) "ENVIRONMENTAL JUSTICE ADVISORY BOARD" MEANS THE23
ENVIRONMENTAL JUSTICE ADVISORY BOARD CREATED IN SECTION24
25-1-134 (2)(a).25
(e) "LOCAL GOVERNMENT" MEANS A HOME RULE OR STATUTORY26
COUNTY, MUNICIPALITY, OR CITY AND COUNTY.27
1069
-3- (f) "PILOT PROGRAM" MEANS THE PILOT PROGRAM DESCRIBED IN1
SUBSECTION (4)(b) OF THIS SECTION.2
(g) "SELECTED OIL AND GAS WELLS" MEANS THE OIL AND GAS3
WELLS SELECTED BY THE WORK GROUP PURSUANT TO SUBSECTION4
(4)(c)(II) OF THIS SECTION.5
(h) "STATE FOREST SERVICE" MEANS THE COLORADO STATE6
FOREST SERVICE IDENTIFIED IN SECTION 23-31-302.7
(i) "UNIVERSITY" MEANS COLORADO STATE UNIVERSITY8
ESTABLISHED IN SECTION 23-31-101.9
(j) "WORK GROUP" MEANS THE BIOCHAR IN OIL AND GAS WELL10
PLUGGING WORKING ADVISORY GROUP CREATED IN SUBSECTION (2)(a) OF11
THIS SECTION.12
(2) (a) THE BIOCHAR IN OIL AND GAS WELL PLUGGING WORKING13
ADVISORY GROUP IS CREATED IN THE COMMISSION .14
(b) THE WORK GROUP CONSISTS OF THE FOLLOWING MEMBERS :15
(I) A MEMBER OF THE COMMISSION'S TECHNICAL STAFF WITH16
EXPERTISE IN ENGINEERING OR ORPHANED WELLS , APPOINTED BY THE17
DIRECTOR;18
(II) A MEMBER REPRESENTING THE DEPARTMENT OF PUBLIC19
HEALTH AND ENVIRONMENT CREATED IN SECTION 24-1-119 (1),20
APPOINTED BY THE EXECUTIVE DIRECTOR OF THE DEPARTMENT OF PUBLIC21
HEALTH AND ENVIRONMENT ;22
(III) A MEMBER REPRESENTING THE COLORADO ENERGY OFFICE,23
APPOINTED BY THE DIRECTOR OF THE COLORADO ENERGY OFFICE;24
(IV) A MEMBER REPRESENTING THE OIL AND GAS INDUSTRY,25
APPOINTED BY THE DIRECTOR;26
(V) A MEMBER, APPOINTED BY THE DIRECTOR OF THE COLORADO27
1069
-4- ENERGY OFFICE, REPRESENTING AN ENVIRONMENTAL ADVOCACY1
ORGANIZATION WITH:2
(A) A FOCUS ON THE REDUCTION OF GREENHOUSE GAS EMISSIONS;3
AND4
(B) EXPERIENCE WITH CARBON REMOVAL AND SEQUESTRATION5
SOLUTIONS;6
(VI) A MEMBER WITH EXPERTISE IN THE BIOCHAR INDUSTRY ,7
APPOINTED BY THE DIRECTOR; AND8
(VII) A MEMBER OF THE COMMISSION , WHO IS THE CHAIR OF THE9
WORK GROUP, APPOINTED BY THE DIRECTOR.10
(c) THE WORK GROUP ALSO CONSISTS OF THE FOLLOWING11
MEMBERS, WHO SHALL PARTICIPATE IN THE WORK GROUP IN AN ADVISORY,12
NONVOTING CAPACITY:13
(I) A MEMBER REPRESENTING THE STATE FOREST SERVICE ,14
APPOINTED BY THE DIRECTOR OF THE STATE FOREST SERVICE ;15
(II) A MEMBER REPRESENTING A BIOCHAR MANUFACTURING16
ENTITY LOCATED IN THE STATE, APPOINTED BY THE DIRECTOR;17
(III) A MEMBER REPRESENTING A LOCAL GOVERNMENT WHO HAS18
A DEMONSTRATED FOCUS ON ENVIRONMENTAL AIR QUALITY ISSUES, WITH19
CLIMATE PROTECTION AS A DEMONSTRATED PRIORITY, APPOINTED BY THE20
DIRECTOR OF THE COLORADO ENERGY OFFICE;21
(IV) A MEMBER, APPOINTED BY THE DIRECTOR, REPRESENTING THE22
FEDERAL BUREAU OF LAND MANAGEMENT WHO HAS KNOWLEDGE23
CONCERNING:24
(A) THE FEDERAL STANDARDS FOR PLUGGING OIL AND GAS WELLS;25
AND26
(B) THE OPPORTUNITIES FOR OBTAINING FEDERAL FUNDING FOR27
1069
-5- THE PILOT PROGRAM;1
(V) A MEMBER WITH EXPERTISE IN PLUGGING AND ABANDONMENT2
OPERATIONS AND METHANE MITIGATION FROM WELLBORES , APPOINTED BY3
THE DIRECTOR;4
(VI) A MEMBER OF THE ENVIRONMENTAL JUSTICE ADVISORY5
BOARD, APPOINTED BY THE CHAIR OF THE ENVIRONMENTAL JUSTICE6
ADVISORY BOARD; AND7
(VII) A MEMBER REPRESENTING THE INTERESTS OF8
DISPROPORTIONATELY IMPACTED COMMUNITIES, AS DEFINED IN SECTION9
24-4-109 (2)(b)(II), APPOINTED BY THE CHAIR OF THE ENVIRONMENTAL10
JUSTICE ADVISORY BOARD.11
(d) THE APPOINTING AUTHORITIES SHALL MAKE ALL12
APPOINTMENTS TO THE WORK GROUP NO LATER THAN JULY 1, 2023. THE13
MEMBERS OF THE WORK GROUP SERVE WITHOUT COMPENSATION BUT14
SHALL BE REIMBURSED FOR EXPENSES INCURRED BY THEM IN THE15
PERFORMANCE OF THEIR OFFICIAL DUTIES .16
(e) THE WORK GROUP SHALL CONDUCT MEETINGS AS OFTEN AS17
NECESSARY TO PERFORM THE WORK GROUP 'S DUTIES PURSUANT TO THIS18
SECTION, INCLUDING CONSULTING AND COORDINATING WITH THE19
UNIVERSITY ON THE UNIVERSITY'S DUTIES PURSUANT TO THIS SECTION.20
(3) (a) THE UNIVERSITY SHALL:21
(I) REVIEW PEER-REVIEWED SCIENTIFIC ARTICLES AND STUDIES ON22
BIOCHAR'S CAPACITY TO:23
(A) LOWER GREENHOUSE GAS EMISSIONS ;24
(B) LOWER CHEMICAL LEAKS;25
(C) REMOVE AND SEQUESTER CARBON ;26
(D) LOWER THE CARBON FOOTPRINT IN CEMENT ;27
1069
-6- (E) ADD STRENGTH TO CEMENT; AND1
(F) BIND CHEMICALS SUCH AS METHANE, BENZENE, AND CARBON2
DIOXIDE FROM FUGITIVE EMISSIONS;3
(II) REVIEW ANY APPLICABLE FEDERAL LAWS AND LAWS OF OTHER4
STATES THAT ADDRESS THE USE OF BIOCHAR IN THE PLUGGING OF OIL AND5
GAS WELLS;6
(III) CONDUCT DESK RESEARCH RELATED TO BIOCHAR, INCLUDING7
GEOMECHANICAL MODELING AND CALCULATIONS TO LIMIT VARIABLES ;8
(IV) CONDUCT LABORATORY RESEARCH, INCLUDING RESEARCH TO9
CHARACTERIZE:10
(A) THE MECHANICAL STRENGTH, PERMEABILITY, PORE11
STRUCTURE, AND GAS ABSORPTION OF BIOCHAR;12
(B) THE GEOCHEMICAL REACTION OF BIOCHAR WITH WATER FROM13
AN UNDERGROUND FORMATION ; AND14
(C) THE CHEMICAL REACTION OF BIOCHAR WITH CEMENT USED IN15
THE PLUGGING OF OIL AND GAS WELLS;16
(V) EVALUATE WHETHER ANY FEDERAL OR STATE PROGRAMS OR17
PRIVATE ENTITIES COULD PROVIDE FUNDING FOR THE PILOT PROGRAM ;18
(VI) ASSESS THE COSTS ASSOCIATED WITH USING BIOCHAR IN THE19
PLUGGING OF AN OIL AND GAS WELL;20
(VII) DETERMINE THE AMOUNT OF BIOCHAR THAT IS AVAILABLE21
FOR USE IN THE STATE;22
(VIII) EXAMINE WHETHER THE USE OF BIOCHAR IN THE PLUGGING23
OF OIL AND GAS WELLS IS CONSISTENT WITH THE STATE'S SHORT-TERM AND24
LONG-TERM GREENHOUSE GAS AND POLLUTION REDUCTION GOALS, AS SET25
FORTH IN SECTION 25-7-102 (2)(g), TAKING INTO CONSIDERATION THE26
EMISSIONS OF GREENHOUSE GASES AND OTHER POLLUTANTS CAUSED BY27
1069
-7- THE PRODUCTION OF BIOCHAR AND THE USE OF BIOCHAR IN THE PLUGGING1
OF OIL AND GAS WELLS; AND2
(IX) DETERMINE WHETHER THE USE OF BIOCHAR WHEN PLUGGING3
AN OIL AND GAS WELL:4
(A) COULD, WITH VERIFIED NET PERMANENT REMOVAL OF5
ATMOSPHERIC CARBON AS ESTABLISHED ACCORDING TO6
INTERNATIONALLY RECOGNIZED STANDARDS, ALLOW AN OPERATOR OR7
OTHER PERSON PLUGGING AN OIL AND GAS WELL TO RECEIVE LEGITIMATE8
CARBON CREDITS OR OFFSETS;9
(B) WOULD REQUIRE ANY CHANGES TO STATE LAW TO ALLOW THE10
USE OF BIOCHAR IN THE PLUGGING OF AN OIL AND GAS WELL OR TO ALLOW11
A STATE AGENCY TO COORDINATE WITH APPLICABLE FEDERAL AGENCIES12
AND OTHER ENTITIES IN THE IMPLEMENTATION OF THE PILOT PROGRAM ;13
AND14
(C) WOULD COMPLY, IN THE CASE OF PLUGGING AN OIL AND GAS15
WELL OWNED BY THE UNITED STATES OR A TRIBAL LAND TRUST, WITH16
FEDERAL LAW OR ANY OTHER APPLICABLE LAW .17
(b) IN PERFORMING ITS DUTIES PURSUANT TO SUBSECTION (3)(a)18
OF THIS SECTION, THE UNIVERSITY SHALL UTILIZE ANY APPLICABLE19
EXISTING FEDERAL, STATE, OR LOCAL PROGRAMS OR FUNDING AND MAY20
COORDINATE AND CONSULT WITH OTHER INSTITUTIONS OF HIGHER21
EDUCATION.22
(4) (a) NO LATER THAN MARCH 1, 2024, THE UNIVERSITY SHALL23
PROVIDE AN UNOFFICIAL PROGRESS REPORT OF ITS FINDINGS PURSUANT TO24
SUBSECTION (3)(a) OF THIS SECTION TO THE WORK GROUP.25
(b) NO LATER THAN JUNE 1, 2024, THE UNIVERSITY SHALL PROVIDE26
AN OFFICIAL REPORT OF ITS FINDINGS PURSUANT TO SUBSECTION (3)(a) OF27
1069
-8- THIS SECTION TO THE WORK GROUP. IF, BASED ON THE REPORT, THE WORK1
GROUP DETERMINES THAT A PILOT PROGRAM TO STUDY THE USE OF2
BIOCHAR IN THE PLUGGING OF OIL AND GAS WELLS WOULD HAVE A3
POSITIVE IMPACT ON THE HEALTH, SAFETY, AND WELFARE OF THE STATE4
AND WOULD BE CONSISTENT WITH THE STATE'S SHORT-TERM AND5
LONG-TERM GREENHOUSE GAS AND POLLUTION REDUCTION GOALS , AS SET6
FORTH IN SECTION 25-7-102 (2)(g), THE WORK GROUP SHALL, NO LATER7
THAN AUGUST 1, 2024, DIRECT THE UNIVERSITY TO MAKE8
RECOMMENDATIONS REGARDING THE DEVELOPMENT OF THE PILOT9
PROGRAM.10
(c) THE RECOMMENDATIONS PURSUANT TO SUBSECTION (4)(b) OF11
THIS SECTION MUST INCLUDE RECOMMENDATIONS REGARDING A PLAN TO:12
(I) DEVELOP STANDARDS FOR:13
(A) USING BIOCHAR IN THE PLUGGING OF THE SELECTED OIL AND14
GAS WELLS;15
(B) MONITORING THE EMISSIONS OF THE SELECTED OIL AND GAS16
WELLS; AND17
(C) COMPARING EMISSIONS DATA FROM THE SELECTED OIL AND18
GAS WELLS TO EMISSIONS DATA FROM OIL AND GAS WELLS THAT HAVE NOT19
BEEN PLUGGED USING BIOCHAR ;20
(II) SELECT OIL AND GAS WELLS WHERE AN OPERATOR OR OTHER21
PERSON PLUGGING AN OIL AND GAS WELL WILL USE BIOCHAR WHEN22
PLUGGING THE WELL IN ACCORDANCE WITH THE STANDARDS DEVELOPED23
PURSUANT TO SUBSECTION (4)(c)(I)(A) OF THIS SECTION; AND24
(III) CONTINUE, AFTER THE SELECTED OIL AND GAS WELLS ARE25
PLUGGED, TO:26
(A) MONITOR EMISSIONS AND COMPARE EMISSIONS DATA FROM27
1069
-9- THE SELECTED OIL AND GAS WELLS IN ACCORDANCE WITH THE STANDARDS1
DEVELOPED PURSUANT TO SUBSECTIONS (4)(c)(I)(B) AND (4)(c)(I)(C) OF2
THIS SECTION;3
(B) ASSESS THE CONDITION OF THE SELECTED OIL AND GAS WELLS;4
AND5
(C) CONDUCT LABORATORY TESTING ON THE SELECTED OIL AND6
GAS WELLS TO DETERMINE THE ABILITY OF BIOCHAR TO ABSORB OR7
ADSORB METHANE AND OTHER CHEMICALS FOUND IN A PLUGGED OIL AND8
GAS WELL AND TO DETERMINE THE BEST ESTIMATE OF THE LONG-TERM9
DURABILITY OF BIOCHAR WHEN USED IN THE PLUGGING OF AN OIL AND GAS10
WELL.11
(d) THE RECOMMENDATIONS PURSUANT TO SUBSECTION (4)(b) OF12
THIS SECTION MUST INCLUDE, AT A MINIMUM, RECOMMENDATIONS13
REGARDING:14
(I) THE ESTIMATED COSTS TO IMPLEMENT THE PILOT PROGRAM ;15
(II) THE DURATION OF THE PILOT PROGRAM ;16
(III) A DETAILED PLAN FOR THE IMPLEMENTATION OF THE PILOT17
PROGRAM BY THE COMMISSION ;18
(IV) A DESCRIPTION OF ANY OPPORTUNITIES TO WORK WITH OR19
RECEIVE FUNDING FROM FEDERAL AGENCIES OR PRIVATE ENTITIES IN THE20
IMPLEMENTATION OF THE PILOT PROGRAM ; AND21
(V) A PROCESS FOR REPORTING THE FINDINGS OF THE PILOT22
PROGRAM.23
(5) NO LATER THAN DECEMBER 1, 2024, THE UNIVERSITY SHALL24
SUBMIT A DRAFT REPORT DESCRIBING ITS RECOMMENDATIONS FOR THE25
DEVELOPMENT OF A PILOT PROGRAM PURSUANT TO SUBSECTIONS (4)(b),26
(4)(c), AND (4)(d) OF THIS SECTION TO THE WORK GROUP. NO LATER THAN27
1069
-10- DECEMBER 15, 2024, THE UNIVERSITY SHALL:1
(a) IN CONSULTATION WITH THE WORK GROUP , CREATE A FINAL2
REPORT THAT INCORPORATES THE WORK GROUP'S COMMENTS REGARDING3
THE DRAFT REPORT; AND4
(b) PROVIDE A COPY OF THE FINAL REPORT TO THE DIRECTOR .5
(6) THE DIRECTOR SHALL POST A COPY OF THE FINAL REPORT6
DESCRIBED IN SUBSECTION (5)(b) OF THIS SECTION ON THE COMMISSION'S7
WEBSITE.8
(7) THIS SECTION IS REPEALED, EFFECTIVE SEPTEMBER 1, 2025.9
SECTION 3. In Colorado Revised Statutes, 34-60-124, amend10
(4)(b); and add (4)(d) as follows:11
34-60-124. Oil and gas conservation and environmental12
response fund - repeal. (4) The oil and gas conservation and13
environmental response fund may be expended:14
(b) For purposes authorized by section 23-41-114 (4); C.R.S. AND15
(d) (I) BY THE COMMISSION AND COLORADO STATE UNIVERSITY,16
ESTABLISHED IN SECTION 23-31-101, FOR THE PURPOSES OF THE STUDY17
CONDUCTED PURSUANT TO SECTION 34-60-134.18
(II) THIS SUBSECTION (4)(d) IS REPEALED, EFFECTIVE SEPTEMBER19
1, 2025.20
SECTION 4. Appropriation. (1) For the 2023-24 state fiscal21
year, $370,140 is appropriated to the department of higher education. This22
appropriation is from the oil and gas conservation and environmental23
response fund created in section 34-60-122 (5)(a), C.R.S., and is based on24
an assumption that the department will require an additional 3.0 FTE. To25
implement this act, the department may use this appropriation for the26
board of governors of the Colorado state university system for the biochar27
1069
-11- in oil and gas well plugging working advisory group.1
(2) For the 2023-24 state fiscal year, $5,600 is appropriated to the2
department of natural resources for use by the oil and gas conservation3
commission. This appropriation is from the oil and gas conservation and4
environmental response fund created in section 34-60-122 (5)(a), C.R.S.5
To implement this act, the commission may use this appropriation for6
program costs.7
SECTION 5. Safety clause. The general assembly hereby finds,8
determines, and declares that this act is necessary for the immediate9
preservation of the public peace, health, or safety.10
1069
-12-