Colorado 2023 Regular Session

Colorado House Bill HB1069 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
	1	+	First Regular Session
	2	+	Seventy-fourth General Assembly
	3	+	STATE OF COLORADO
	4	+	REVISED
	5	+	This Version Includes All Amendments Adopted
	6	+	on Second Reading in the Second House
	7	+	LLS NO. 23-0267.01 Sarah Lozano x3858
1	8		HOUSE BILL 23-1069
2		-	BY REPRESENTATIVE(S) McCormick and Amabile, Bacon, Bird,
3		-	Boesenecker, Brown, deGruy Kennedy, Dickson, Froelich,
4		-	Gonzales-Gutierrez, Hamrick, Jodeh, Lindsay, Mabrey, McLachlan, Ortiz,
5		-	Parenti, Sharbini, Snyder, Story, Titone, Valdez, Velasco, Weissman,
6		-	Willford, Woodrow, McCluskie;
7		-	also SENATOR(S) Cutter and Priola, Bridges, Gonzales, Jaquez Lewis,
8		-	Sullivan, Winter F., Fenberg.
	9	+	House Committees Senate Committees
	10	+	Energy & Environment Transportation & Energy
	11	+	Appropriations Appropriations
	12	+	A BILL FOR AN ACT
9	13		C
10		-	ONCERNING THE CREATION OF THE BIOCHAR IN OIL AND GAS WELL
11		-	PLUGGING WORKING ADVISORY GROUP TO MAKE RECOMME NDATIONS
12		-	FOR THE DEVELOPMENT OF A PILOT PROGRAM TO STUDY THE USE OF
13		-	BIOCHAR IN THE PLUGGING OF OIL AND GAS WELLS
14		-	, AND, IN
15		-	CONNECTION THEREWITH
16		-	, MAKING AN APPROPRIATION.
17		-
18		-	Be it enacted by the General Assembly of the State of Colorado:
19		-	SECTION 1. Legislative declaration. (1) The general assembly
20		-	finds and declares that:
21		-	(a) It is important to focus on finding innovative solutions to:
22		-	(I) Mitigate the impacts of climate change;
23		-	NOTE: This bill has been prepared for the signatures of the appropriate legislative
24		-	officers and the Governor. To determine whether the Governor has signed the bill
25		-	or taken other action on it, please consult the legislative status sheet, the legislative
26		-	history, or the Session Laws.
27		-	________
28		-	Capital letters or bold & italic numbers indicate new material added to existing law; dashes
29		-	through words or numbers indicate deletions from existing law and such material is not part of
30		-	the act. (II) Further protect human and animal health; and
31		-	(III) Lower the carbon footprint of current methods of plugging oil
32		-	and gas wells;
33		-	(b) The state recognizes the importance of regulating the oil and gas
34		-	industry and supports the implementation of practices and technologies to
35		-	address emission reduction goals and research to develop these practices
36		-	and technologies;
37		-	(c) The state should continue to regulate the plugging of oil and gas
38		-	wells by both state agencies and the oil and gas industry;
39		-	(d) It is important to create opportunities for the oil and gas industry
40		-	to permanently sequester carbon from the atmosphere;
41		-	(e) Exploring the use of biochar in oil and gas well plugging
42		-	operations may potentially open up economic opportunities for Colorado to
43		-	become a leader in the use of biochar in oil and gas well plugging
44		-	operations; and
45		-	(f) Biochar could be beneficial to efforts by the oil and gas industry
46		-	to reduce greenhouse gas emissions in Colorado.
47		-	(2) The general assembly further finds and declares that it is in the
48		-	interest of Colorado to convene a working advisory group that coordinates
49		-	with Colorado state university and makes recommendations on establishing
50		-	a pilot program to study the use of biochar in oil and gas well plugging
51		-	operations.
52		-	SECTION 2. In Colorado Revised Statutes, add 34-60-136 as
53		-	follows:
54		-	34-60-136. Biochar in oil and gas well plugging working
55		-	advisory group - created - members - study by Colorado state
56		-	university - recommendations for the development of a pilot program
57		-	- report - definitions - repeal. (1) A
58		-	S USED IN THIS SECTION, UNLESS THE
59		-	CONTEXT OTHERWISE REQUIRES
60		-	:
61		-	PAGE 2-HOUSE BILL 23-1069 (a) "BIOCHAR" MEANS THE SOLID CARBON -RICH PRODUCT MADE
62		-	WHEN WOODY BIOMASS UNDERGOES PYROLYSIS IN AN OXYGEN
63		-	-DEPLETED
64		-	ATMOSPHERE AT APPROXIMATELY EIGHT HUNDRED DEGREES
65		-	CELSIUS.
66		-	(b) "C
67		-	OLORADO ENERGY OFFICE" MEANS THE COLORADO ENERGY
68		-	OFFICE CREATED IN SECTION
69		-	24-38.5-101 (1).
70		-	(c) "D
71		-	IRECTOR" MEANS THE DIRECTOR OF THE COMMISSION
72		-	APPOINTED PURSUANT TO SECTION
73		-	34-60-104.5 (1) OR THE DIRECTOR'S
74		-	DESIGNEE
75		-	.
76		-	(d) "E
77		-	NVIRONMENTAL JUSTICE ADVISORY BOARD " MEANS THE
78		-	ENVIRONMENTAL JUSTICE ADVISORY BOARD CREATED IN SECTION
79		-	25-1-134
80		-	(2)(a).
81		-	(e) "L
82		-	OCAL GOVERNMENT " MEANS A HOME RULE OR STATUTORY
83		-	COUNTY
84		-	, MUNICIPALITY, OR CITY AND COUNTY.
85		-	(f) "P
86		-	ILOT PROGRAM" MEANS THE PILOT PROGRAM DESCRIBED IN
87		-	SUBSECTION
88		-	(4)(b) OF THIS SECTION.
89		-	(g) "S
90		-	ELECTED OIL AND GAS WELLS" MEANS THE OIL AND GAS WELLS
91		-	SELECTED BY THE WORK GROUP PURSUANT TO SUBSECTION
92		-	(4)(c)(II) OF THIS
93		-	SECTION
94		-	.
95		-	(h) "S
96		-	TATE FOREST SERVICE" MEANS THE COLORADO STATE FOREST
97		-	SERVICE IDENTIFIED IN SECTION
98		-	23-31-302.
99		-	(i) "U
100		-	NIVERSITY" MEANS COLORADO STATE UNIVERSITY
101		-	ESTABLISHED IN SECTION
102		-	23-31-101.
103		-	(j) "W
104		-	ORK GROUP" MEANS THE BIOCHAR IN OIL AND GAS WELL
105		-	PLUGGING WORKING ADVISORY GROUP CREATED IN SUBSECTION
106		-	(2)(a) OF
107		-	THIS SECTION
108		-	.
109		-	(2) (a) T
110		-	HE BIOCHAR IN OIL AND GAS WELL PL UGGING WORKING
111		-	ADVISORY GROUP IS CREATED IN THE COMMISSION
112		-	.
113		-	(b) T
114		-	HE WORK GROUP CONSISTS OF THE FOLLOWING MEMBERS :
115		-	PAGE 3-HOUSE BILL 23-1069 (I) A MEMBER OF THE COMMISSION 'S TECHNICAL STAFF WITH
116		-	EXPERTISE IN ENGINEERING OR ORPHANED WELLS
117		-	, APPOINTED BY THE
118		-	DIRECTOR
119		-	;
120		-	(II) A
121		-	MEMBER REPRESENTING THE DEPARTMENT OF PUBLIC HEALTH
122		-	AND ENVIRONMENT CREATED IN SECTION
123		-	24-1-119 (1), APPOINTED BY THE
124		-	EXECUTIVE DIRECTOR OF THE DEPARTMENT OF PUBLIC HEALTH AND
125		-	ENVIRONMENT
126		-	;
127		-	(III) A
128		-	MEMBER REPRESENTING THE COLORADO ENERGY OFFICE ,
129		-	APPOINTED BY THE DIRECTOR OF THE COLORADO ENERGY OFFICE;
130		-	(IV) A
131		-	MEMBER REPRESENTING THE OIL AND GAS INDUSTRY ,
132		-	APPOINTED BY THE DIRECTOR;
133		-	(V) A
134		-	MEMBER, APPOINTED BY THE DIRECTOR OF THE COLORADO
135		-	ENERGY OFFICE
136		-	, REPRESENTING AN ENVIRONMENTAL ADVOCACY
137		-	ORGANIZATION WITH
138		-	:
139		-	(A) A
140		-	FOCUS ON THE REDUCTION OF GREENHOUSE GAS EMISSIONS ;
141		-	AND
142		-	(B) EXPERIENCE WITH CARBON REMOVAL AND SEQUESTRATION
143		-	SOLUTIONS
144		-	;
145		-	(VI) A
146		-	MEMBER WITH EXPERTISE IN THE BIOCHAR INDUSTRY ,
147		-	APPOINTED BY THE DIRECTOR; AND
148		-	(VII) A MEMBER OF THE COMMISSION , WHO IS THE CHAIR OF THE
149		-	WORK GROUP
150		-	, APPOINTED BY THE DIRECTOR.
151		-	(c) T
152		-	HE WORK GROUP ALSO CONSISTS OF THE FOLLOWING MEMBERS ,
153		-	WHO SHALL PARTICIPATE IN THE WORK GROUP IN AN ADVISORY , NONVOTING
154		-	CAPACITY
155		-	:
156		-	(I) A
157		-	MEMBER REPRESENTING THE STATE FOREST SERVICE ,
158		-	APPOINTED BY THE DIRECTOR OF THE STATE FOREST SERVICE ;
159		-	(II) A
160		-	MEMBER REPRESENTING A BIOCHAR MANUFACTURING ENTITY
161		-	LOCATED IN THE STATE
162		-	, APPOINTED BY THE DIRECTOR;
163		-	PAGE 4-HOUSE BILL 23-1069 (III) A MEMBER REPRESENTING A LOCAL GOVERNMENT WHO HAS A
164		-	DEMONSTRATED FOCUS ON ENVIRONMENTAL AIR QUALITY ISSUES
165		-	, WITH
166		-	CLIMATE PROTECTION AS A DEMONSTRATED PRIORITY
167		-	, APPOINTED BY THE
168		-	DIRECTOR OF THE
169		-	COLORADO ENERGY OFFICE;
170		-	(IV) A
171		-	MEMBER, APPOINTED BY THE DIRECTOR, REPRESENTING THE
172		-	FEDERAL BUREAU OF LAND MANAGEMENT WHO HAS KNOWLEDGE
173		-	CONCERNING
174		-	:
175		-	(A) T
176		-	HE FEDERAL STANDARDS FOR PLUGGING OIL AND GAS WELLS ;
177		-	AND
178		-	(B) THE OPPORTUNITIES FOR OBTAINING FEDERAL FUNDING FOR THE
179		-	PILOT PROGRAM
180		-	;
181		-	(V) A
182		-	MEMBER WITH EXPERTISE IN PLUGGING AND ABANDONMENT
183		-	OPERATIONS AND METHANE MITIGATION FROM WELLBORES
184		-	, APPOINTED BY
185		-	THE DIRECTOR
186		-	;
187		-	(VI) A
188		-	MEMBER OF THE ENVIRONMENTAL JUSTICE ADVISORY BOARD ,
189		-	APPOINTED BY THE CHAIR OF THE ENVIRONMENTAL JUSTICE ADVISORY
190		-	BOARD
191		-	; AND
192		-	(VII) A MEMBER REPRESENTING THE INTERESTS OF
193		-	DISPROPORTIONATELY IMPACTED COMMUNITIES
194		-	, AS DEFINED IN SECTION
195		-	24-4-109 (2)(b)(II), APPOINTED BY THE CHAIR OF THE ENVIRONMENTAL
196		-	JUSTICE ADVISORY BOARD
197		-	.
198		-	(d) T
199		-	HE APPOINTING AUTHORITIES SHALL MAKE ALL APPOINTMENTS
200		-	TO THE WORK GROUP NO LATER THAN
201		-	JULY 1, 2023. THE MEMBERS OF THE
202		-	WORK GROUP SERVE WITHOUT COMPENSATION BUT SHALL BE REIMBURSED
203		-	FOR EXPENSES INCURRED BY THEM IN THE PERFORMANCE OF THEIR OFFICIAL
204		-	DUTIES
205		-	.
206		-	(e) T
207		-	HE WORK GROUP SHALL CONDUCT MEETINGS AS OFTEN AS
208		-	NECESSARY TO PERFORM THE WORK GROUP
209		-	'S DUTIES PURSUANT TO THIS
210		-	SECTION
211		-	, INCLUDING CONSULTING AND COORDINATING WITH THE
212		-	UNIVERSITY ON THE UNIVERSITY
213		-	'S DUTIES PURSUANT TO THIS SECTION.
214		-	(3) (a) T
215		-	HE UNIVERSITY SHALL:
216		-	PAGE 5-HOUSE BILL 23-1069 (I) REVIEW PEER-REVIEWED SCIENTIFIC ARTICLES AND STUDIES ON
217		-	BIOCHAR
218		-	'S CAPACITY TO:
219		-	(A) L
220		-	OWER GREENHOUSE GAS EMISSIONS ;
221		-	(B) L
222		-	OWER CHEMICAL LEAKS;
223		-	(C) R
224		-	EMOVE AND SEQUESTER CARBON ;
225		-	(D) L
226		-	OWER THE CARBON FOOTPRINT IN CEMENT ;
227		-	(E) A
228		-	DD STRENGTH TO CEMENT; AND
229		-	(F) BIND CHEMICALS SUCH AS METHANE , BENZENE, AND CARBON
230		-	DIOXIDE FROM FUGITIVE EMISSIONS
231		-	;
232		-	(II) R
233		-	EVIEW ANY APPLICABLE FEDERAL LAWS AND LAWS OF OTHER
234		-	STATES THAT ADDRESS THE USE OF BIOCHAR IN THE PLUGGING OF OIL AND
235		-	GAS WELLS
236		-	;
237		-	(III) C
238		-	ONDUCT DESK RESEARCH RELATED TO BIOCHAR , INCLUDING
239		-	GEOMECHANICAL MODELING AND CALCULATIONS TO LIMIT VARIABLES
240		-	;
241		-	(IV) C
242		-	ONDUCT LABORATORY RESEARCH , INCLUDING RESEARCH TO
243		-	CHARACTERIZE
244		-	:
245		-	(A) T
246		-	HE MECHANICAL STRENGTH, PERMEABILITY, PORE STRUCTURE,
247		-	AND GAS ABSORPTION OF BIOCHAR ;
248		-	(B) T
249		-	HE GEOCHEMICAL REACTION OF BIOCHAR WITH WATER FROM AN
250		-	UNDERGROUND FORMATION
251		-	; AND
252		-	(C) THE CHEMICAL REACTION OF BIOCHAR WITH CEMENT USED IN
253		-	THE PLUGGING OF OIL AND GAS WELLS
254		-	;
255		-	(V) E
256		-	VALUATE WHETHER ANY FEDERAL OR STATE PROGRAMS OR
257		-	PRIVATE ENTITIES COULD PROVIDE FUNDING FOR THE PILOT PROGRAM
258		-	;
259		-	(VI) A
260		-	SSESS THE COSTS ASSOCIATED WITH USING BIOCHAR IN THE
261		-	PLUGGING OF AN OIL AND GAS WELL
262		-	;
263		-	PAGE 6-HOUSE BILL 23-1069 (VII) DETERMINE THE AMOUNT OF BIOCHAR THAT IS AVAILABLE FOR
264		-	USE IN THE STATE
265		-	;
266		-	(VIII) E
267		-	XAMINE WHETHER THE USE OF BIOCHAR IN THE PLUGGING OF
268		-	OIL AND GAS WELLS IS CONSISTENT WITH THE STATE
269		-	'S SHORT-TERM AND
270		-	LONG
271		-	-TERM GREENHOUSE GAS AND POLLUTION REDUCTION GOALS , AS SET
272		-	FORTH IN SECTION
273		-	25-7-102 (2)(g), TAKING INTO CONSIDERATION THE
274		-	EMISSIONS OF GREENHOUSE GASES AND OTHER POLLUTANTS CAUSED BY THE
275		-	PRODUCTION OF BIOCHAR AND THE USE OF BIOCHAR IN THE PLUGGING OF OIL
276		-	AND GAS WELLS
277		-	; AND
278		-	(IX) DETERMINE WHETHER THE USE OF BIOCHAR WHEN PLUGGING AN
279		-	OIL AND GAS WELL
280		-	:
281		-	(A) C
282		-	OULD, WITH VERIFIED NET PERMANENT REMOVAL OF
283		-	ATMOSPHERIC CARBON AS ESTABLISHED ACCORDING TO INTERNATIONALLY
284		-	RECOGNIZED STANDARDS
285		-	, ALLOW AN OPERATOR OR OTHER PERSON
286		-	PLUGGING AN OIL AND GAS WELL TO RECEIVE LEGITIMATE CARBON CREDITS
287		-	OR OFFSETS
288		-	;
289		-	(B) W
290		-	OULD REQUIRE ANY CHANGES TO STATE LAW TO ALLOW THE
291		-	USE OF BIOCHAR IN THE PLUGGING OF AN OIL AND GAS WELL OR TO ALLOW
292		-	A STATE AGENCY TO COORDINATE WITH APPLICABLE FEDERAL AGENCIES AND
293		-	OTHER ENTITIES IN THE IMPLEMENTATION OF THE PILOT PROGRAM
294		-	; AND
295		-	(C) WOULD COMPLY, IN THE CASE OF PLUGGING AN OIL AND GAS
296		-	WELL OWNED BY THE
297		-	UNITED STATES OR A TRIBAL LAND TRUST , WITH
298		-	FEDERAL LAW OR ANY OTHER APPLICABLE LAW
299		-	.
300		-	(b) I
301		-	N PERFORMING ITS DUTIES PURSUANT TO SUBSECTION (3)(a) OF
302		-	THIS SECTION
303		-	, THE UNIVERSITY SHALL UTILIZE ANY APPLICABLE EXISTING
304		-	FEDERAL
305		-	, STATE, OR LOCAL PROGRAMS OR FUNDING AND MAY COORDINATE
306		-	AND CONSULT WITH OTHER INSTITUTIONS OF HIGHER EDUCATION
307		-	.
308		-	(4) (a) N
309		-	O LATER THAN MARCH 1, 2024, THE UNIVERSITY SHALL
310		-	PROVIDE AN UNOFFICIAL PROGRESS REPORT OF ITS FINDINGS PURSUANT TO
311		-	SUBSECTION
312		-	(3)(a) OF THIS SECTION TO THE WORK GROUP.
313		-	(b) N
314		-	O LATER THAN JUNE 1, 2024, THE UNIVERSITY SHALL PROVIDE
315		-	AN OFFICIAL REPORT OF ITS FINDINGS PURSUANT TO SUBSECTION
316		-	(3)(a) OF
317		-	PAGE 7-HOUSE BILL 23-1069 THIS SECTION TO THE WORK GROUP . IF, BASED ON THE REPORT, THE WORK
318		-	GROUP DETERMINES THAT A PILOT PROGRAM TO STUDY THE USE OF BIOCHAR
319		-	IN THE PLUGGING OF OIL AND GAS WELLS WOULD HAVE A POSITIVE IMPACT
320		-	ON THE HEALTH
321		-	, SAFETY, AND WELFARE OF THE STATE AND WOULD BE
322		-	CONSISTENT WITH THE STATE
323		-	'S SHORT-TERM AND LONG-TERM GREENHOUSE
324		-	GAS AND POLLUTION REDUCTION GOALS
325		-	, AS SET FORTH IN SECTION 25-7-102
326		-	(2)(g),
327		-	THE WORK GROUP SHALL, NO LATER THAN AUGUST 1, 2024, DIRECT
328		-	THE UNIVERSITY TO MAKE RECOMMENDATIONS REGARDING THE
329		-	DEVELOPMENT OF THE PILOT PROGRAM
330		-	.
331		-	(c) T
332		-	HE RECOMMENDATIONS PURSUANT TO SUBSECTION (4)(b) OF
333		-	THIS SECTION MUST INCLUDE RECOMMENDATIONS REGARDING A PLAN TO
334		-	:
335		-	(I) D
336		-	EVELOP STANDARDS FOR:
337		-	(A) U
338		-	SING BIOCHAR IN THE PLUGGING OF THE SELECTED OIL AND GAS
339		-	WELLS
340		-	;
341		-	(B) M
342		-	ONITORING THE EMISSIONS OF THE SELECTED OIL AND GAS
343		-	WELLS
344		-	; AND
345		-	(C) COMPARING EMISSIONS DATA FROM THE SELECTED OIL AND GAS
346		-	WELLS TO EMISSIONS DATA FROM OIL AND GAS WELLS THAT HAVE NOT BEEN
347		-	PLUGGED USING BIOCHAR
348		-	;
349		-	(II) S
350		-	ELECT OIL AND GAS WELLS WHERE AN OPERATOR OR OTHER
351		-	PERSON PLUGGING AN OIL AND GAS WELL WILL USE BIOCHAR WHEN
352		-	PLUGGING THE WELL IN ACCORDANCE WITH THE STANDARDS DEVELOPED
353		-	PURSUANT TO SUBSECTION
354		-	(4)(c)(I)(A) OF THIS SECTION; AND
355		-	(III) CONTINUE, AFTER THE SELECTED OIL AND GAS WELLS ARE
356		-	PLUGGED
357		-	, TO:
358		-	(A) M
359		-	ONITOR EMISSIONS AND COMPARE EMISSIONS DATA FROM THE
360		-	SELECTED OIL AND GAS WELLS IN ACCORDANCE WITH THE STANDARDS
361		-	DEVELOPED PURSUANT TO SUBSECTIONS
362		-	(4)(c)(I)(B) AND (4)(c)(I)(C) OF
363		-	THIS SECTION
364		-	;
365		-	(B) A
366		-	SSESS THE CONDITION OF THE SELECTED OIL AND GAS WELLS ;
367		-	AND
368		-	PAGE 8-HOUSE BILL 23-1069 (C) CONDUCT LABORATORY TESTING ON THE SELECTED OIL AND GAS
369		-	WELLS TO DETERMINE THE ABILITY OF BIOCHAR TO ABSORB OR ADSORB
370		-	METHANE AND OTHER CHEMICALS FOUND IN A PLUGGED OIL AND GAS WELL
371		-	AND TO DETERMINE THE BEST ESTIMATE OF THE LONG
372		-	-TERM DURABILITY OF
373		-	BIOCHAR WHEN USED IN THE PLUGGING OF AN OIL AND GAS WELL
374		-	.
375		-	(d) T
376		-	HE RECOMMENDATIONS PURSUANT TO SUBSECTION (4)(b) OF
377		-	THIS SECTION MUST INCLUDE
378		-	, AT A MINIMUM , RECOMMENDATIONS
379		-	REGARDING
380		-	:
381		-	(I) T
382		-	HE ESTIMATED COSTS TO IMPLEMENT THE PILOT PROGRAM ;
383		-	(II) T
384		-	HE DURATION OF THE PILOT PROGRAM ;
385		-	(III) A
386		-	DETAILED PLAN FOR THE IMPLEMENTATION OF THE PILOT
387		-	PROGRAM BY THE COMMISSION
388		-	;
389		-	(IV) A
390		-	DESCRIPTION OF ANY OPPORTUNITIES TO WORK WITH OR
391		-	RECEIVE FUNDING FROM FEDERAL AGENCIES OR PRIVATE ENTITIES IN THE
392		-	IMPLEMENTATION OF THE PILOT PROGRAM
393		-	; AND
394		-	(V) A PROCESS FOR REPORTING THE FINDINGS OF THE PILOT
395		-	PROGRAM
396		-	.
397		-	(5) N
398		-	O LATER THAN DECEMBER 1, 2024, THE UNIVERSITY SHALL
399		-	SUBMIT A DRAFT REPORT DESCRIBING ITS RECOMMENDATIONS FOR THE
400		-	DEVELOPMENT OF A PILOT PROGRAM PURSUANT TO SUBSECTIONS
401		-	(4)(b),
402		-	(4)(c),
403		-	AND (4)(d) OF THIS SECTION TO THE WORK GROUP. NO LATER THAN
404		-	DECEMBER 15, 2024, THE UNIVERSITY SHALL:
405		-	(a) I
406		-	N CONSULTATION WITH THE WORK GROUP , CREATE A FINAL
407		-	REPORT THAT INCORPORATES THE WORK GROUP
408		-	'S COMMENTS REGARDING
409		-	THE DRAFT REPORT
410		-	; AND
411		-	(b) PROVIDE A COPY OF THE FINAL REPORT TO THE DIRECTOR .
412		-	(6) T
413		-	HE DIRECTOR SHALL POST A COPY OF THE FINAL REPORT
414		-	DESCRIBED IN SUBSECTION
415		-	(5)(b) OF THIS SECTION ON THE COMMISSION 'S
416		-	WEBSITE
417		-	.
418		-	PAGE 9-HOUSE BILL 23-1069 (7) THIS SECTION IS REPEALED, EFFECTIVE SEPTEMBER 1, 2025.
419		-	SECTION 3. In Colorado Revised Statutes, 34-60-124, amend
420		-	(4)(b); and add (4)(d) as follows:
421		-	34-60-124. Oil and gas conservation and environmental response
422		-	fund - repeal. (4) The oil and gas conservation and environmental
423		-	response fund may be expended:
424		-	(b) For purposes authorized by section 23-41-114 (4); C.R.S.; AND
425		-	(d) (I) BY THE COMMISSION AND COLORADO STATE UNIVERSITY ,
426		-	ESTABLISHED IN SECTION 23-31-101, FOR THE PURPOSES OF THE STUDY
427		-	CONDUCTED PURSUANT TO SECTION
428		-	34-60-136.
429		-	(II) T
430		-	HIS SUBSECTION (4)(d) IS REPEALED, EFFECTIVE SEPTEMBER 1,
431		-	2025.
432		-	SECTION 4. Appropriation. (1) For the 2023-24 state fiscal year,
433		-	$370,140 is appropriated to the department of higher education. This
434		-	appropriation is from the oil and gas conservation and environmental
435		-	response fund created in section 34-60-122 (5)(a), C.R.S., and is based on
436		-	an assumption that the department will require an additional 3.0 FTE. To
437		-	implement this act, the department may use this appropriation for the board
438		-	of governors of the Colorado state university system for the biochar in oil
439		-	and gas well plugging working advisory group.
440		-	(2) For the 2023-24 state fiscal year, $5,600 is appropriated to the
441		-	department of natural resources for use by the oil and gas conservation
442		-	commission. This appropriation is from the oil and gas conservation and
443		-	environmental response fund created in section 34-60-122 (5)(a), C.R.S. To
444		-	implement this act, the commission may use this appropriation for program
445		-	costs.
446		-	SECTION 5. Safety clause. The general assembly hereby finds,
447		-	PAGE 10-HOUSE BILL 23-1069 determines, and declares that this act is necessary for the immediate
448		-	preservation of the public peace, health, or safety.
449		-	____________________________ ____________________________
450		-	Julie McCluskie Steve Fenberg
451		-	SPEAKER OF THE HOUSE PRESIDENT OF
452		-	OF REPRESENTATIVES THE SENATE
453		-	____________________________ ____________________________
454		-	Robin Jones Cindi L. Markwell
455		-	CHIEF CLERK OF THE HOUSE SECRETARY OF
456		-	OF REPRESENTATIVES THE SENATE
457		-	APPROVED________________________________________
458		-	(Date and Time)
459		-	_________________________________________
460		-	Jared S. Polis
461		-	GOVERNOR OF THE STATE OF COLORADO
462		-	PAGE 11-HOUSE BILL 23-1069
	14	+	ONCERNING THE CREATION OF THE BIOCHAR IN OIL AND GAS WELL101
	15	+	PLUGGING WORKING ADVISORY GROUP TO MAKE102
	16	+	RECOMMENDATIONS FOR THE DEVELOPMENT OF A PILOT103
	17	+	PROGRAM TO STUDY THE USE OF BIOCHAR IN THE PLUGGING OF104
	18	+	OIL AND GAS
	19	+	WELLS, AND, IN CONNECTION THEREWITH, MAKING105
	20	+	AN APPROPRIATION.106
	21	+	Bill Summary
	22	+	(Note: This summary applies to this bill as introduced and does
	23	+	not reflect any amendments that may be subsequently adopted. If this bill
	24	+	passes third reading in the house of introduction, a bill summary that
	25	+	applies to the reengrossed version of this bill will be available at
	26	+	http://leg.colorado.gov
	27	+	.)
	28	+	The bill creates the biochar in oil and gas well plugging working
	29	+	SENATE
	30	+	2nd Reading Unamended
	31	+	May 5, 2023
	32	+	HOUSE
	33	+	3rd Reading Unamended
	34	+	April 24, 2023
	35	+	HOUSE
	36	+	Amended 2nd Reading
	37	+	April 21, 2023
	38	+	HOUSE SPONSORSHIP
	39	+	McCormick and Amabile, Bacon, Bird, Boesenecker, Brown, deGruy Kennedy, Dickson,
	40	+	Froelich, Gonzales-Gutierrez, Hamrick, Jodeh, Lindsay, Mabrey, McCluskie, McLachlan,
	41	+	Ortiz, Parenti, Sharbini, Snyder, Story, Titone, Valdez, Velasco, Weissman, Willford,
	42	+	Woodrow
	43	+	SENATE SPONSORSHIP
	44	+	Cutter and Priola,
	45	+	Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment.
	46	+	Capital letters or bold & italic numbers indicate new material to be added to existing law.
	47	+	Dashes through the words or numbers indicate deletions from existing law. advisory group (work group) in the oil and gas conservation commission
	48	+	(commission). The work group's purpose is to make recommendations for
	49	+	the development of a pilot program to study the use of biochar in the
	50	+	plugging of oil and gas wells.
	51	+	No later than September 1, 2023, the work group must submit a
	52	+	draft report to the commission detailing its recommendations for the pilot
	53	+	program. After coordinating with the commission to develop a final
	54	+	report, no later than February 1, 2024, the work group must present the
	55	+	report to the transportation and energy committee of the senate and the
	56	+	energy and environment committee of the house of representatives.
	57	+	Be it enacted by the General Assembly of the State of Colorado:1
	58	+	SECTION 1. Legislative declaration. (1) The general assembly2
	59	+	finds and declares that:3
	60	+	(a) It is important to focus on finding innovative solutions to:4
	61	+	(I) Mitigate the impacts of climate change;5
	62	+	(II) Further protect human and animal health; and6
	63	+	(III) Lower the carbon footprint of current methods of plugging7
	64	+	oil and gas wells;8
	65	+	(b) The state recognizes the importance of regulating the oil and9
	66	+	gas industry and supports the implementation of practices and10
	67	+	technologies to address emission reduction goals and research to develop11
	68	+	these practices and technologies;12
	69	+	(c) The state should continue to regulate the plugging of oil and13
	70	+	gas wells by both state agencies and the oil and gas industry;14
	71	+	(d) It is important to create opportunities for the oil and gas15
	72	+	industry to permanently sequester carbon from the atmosphere;16
	73	+	(e) Exploring the use of biochar in oil and gas well plugging17
	74	+	operations may potentially open up economic opportunities for Colorado18
	75	+	to become a leader in the use of biochar in oil and gas well plugging19
	76	+	operations; and20
	77	+	1069-2- (f) Biochar could be beneficial to efforts by the oil and gas1
	78	+	industry to reduce greenhouse gas emissions in Colorado.2
	79	+	(2) The general assembly further finds and declares that it is in the3
	80	+	interest of Colorado to convene a working advisory group that4
	81	+	coordinates with Colorado state university and makes recommendations5
	82	+	on establishing a pilot program to study the use of biochar in oil and gas6
	83	+	well plugging operations.7
	84	+	SECTION 2. In Colorado Revised Statutes, add 34-60-134 as8
	85	+	follows:9
	86	+	34-60-134. Biochar in oil and gas well plugging working10
	87	+	advisory group - created - members - study by Colorado state11
	88	+	university - recommendations for the development of a pilot program12
	89	+	- report - definitions - repeal. (1) AS USED IN THIS SECTION, UNLESS THE13
	90	+	CONTEXT OTHERWISE REQUIRES :14
	91	+	(a) "BIOCHAR" MEANS THE SOLID CARBON-RICH PRODUCT MADE15
	92	+	WHEN WOODY BIOMASS UNDERGOES PYROLYSIS IN AN OXYGEN-DEPLETED16
	93	+	ATMOSPHERE AT APPROXIMATELY EIGHT HUNDRED DEGREES CELSIUS.17
	94	+	(b) "COLORADO ENERGY OFFICE" MEANS THE COLORADO ENERGY18
	95	+	OFFICE CREATED IN SECTION 24-38.5-101 (1).19
	96	+	(c) "DIRECTOR" MEANS THE DIRECTOR OF THE COMMISSION20
	97	+	APPOINTED PURSUANT TO SECTION 34-60-104.5 (1) OR THE DIRECTOR'S21
	98	+	DESIGNEE.22
	99	+	(d) "ENVIRONMENTAL JUSTICE ADVISORY BOARD" MEANS THE23
	100	+	ENVIRONMENTAL JUSTICE ADVISORY BOARD CREATED IN SECTION24
	101	+	25-1-134 (2)(a).25
	102	+	(e) "LOCAL GOVERNMENT" MEANS A HOME RULE OR STATUTORY26
	103	+	COUNTY, MUNICIPALITY, OR CITY AND COUNTY.27
	104	+	1069
	105	+	-3- (f) "PILOT PROGRAM" MEANS THE PILOT PROGRAM DESCRIBED IN1
	106	+	SUBSECTION (4)(b) OF THIS SECTION.2
	107	+	(g) "SELECTED OIL AND GAS WELLS" MEANS THE OIL AND GAS3
	108	+	WELLS SELECTED BY THE WORK GROUP PURSUANT TO SUBSECTION4
	109	+	(4)(c)(II) OF THIS SECTION.5
	110	+	(h) "STATE FOREST SERVICE" MEANS THE COLORADO STATE6
	111	+	FOREST SERVICE IDENTIFIED IN SECTION 23-31-302.7
	112	+	(i) "UNIVERSITY" MEANS COLORADO STATE UNIVERSITY8
	113	+	ESTABLISHED IN SECTION 23-31-101.9
	114	+	(j) "WORK GROUP" MEANS THE BIOCHAR IN OIL AND GAS WELL10
	115	+	PLUGGING WORKING ADVISORY GROUP CREATED IN SUBSECTION (2)(a) OF11
	116	+	THIS SECTION.12
	117	+	(2) (a) THE BIOCHAR IN OIL AND GAS WELL PLUGGING WORKING13
	118	+	ADVISORY GROUP IS CREATED IN THE COMMISSION .14
	119	+	(b) THE WORK GROUP CONSISTS OF THE FOLLOWING MEMBERS :15
	120	+	(I) A MEMBER OF THE COMMISSION'S TECHNICAL STAFF WITH16
	121	+	EXPERTISE IN ENGINEERING OR ORPHANED WELLS , APPOINTED BY THE17
	122	+	DIRECTOR;18
	123	+	(II) A MEMBER REPRESENTING THE DEPARTMENT OF PUBLIC19
	124	+	HEALTH AND ENVIRONMENT CREATED IN SECTION 24-1-119 (1),20
	125	+	APPOINTED BY THE EXECUTIVE DIRECTOR OF THE DEPARTMENT OF PUBLIC21
	126	+	HEALTH AND ENVIRONMENT ;22
	127	+	(III) A MEMBER REPRESENTING THE COLORADO ENERGY OFFICE,23
	128	+	APPOINTED BY THE DIRECTOR OF THE COLORADO ENERGY OFFICE;24
	129	+	(IV) A MEMBER REPRESENTING THE OIL AND GAS INDUSTRY,25
	130	+	APPOINTED BY THE DIRECTOR;26
	131	+	(V) A MEMBER, APPOINTED BY THE DIRECTOR OF THE COLORADO27
	132	+	1069
	133	+	-4- ENERGY OFFICE, REPRESENTING AN ENVIRONMENTAL ADVOCACY1
	134	+	ORGANIZATION WITH:2
	135	+	(A) A FOCUS ON THE REDUCTION OF GREENHOUSE GAS EMISSIONS;3
	136	+	AND4
	137	+	(B) EXPERIENCE WITH CARBON REMOVAL AND SEQUESTRATION5
	138	+	SOLUTIONS;6
	139	+	(VI) A MEMBER WITH EXPERTISE IN THE BIOCHAR INDUSTRY ,7
	140	+	APPOINTED BY THE DIRECTOR; AND8
	141	+	(VII) A MEMBER OF THE COMMISSION , WHO IS THE CHAIR OF THE9
	142	+	WORK GROUP, APPOINTED BY THE DIRECTOR.10
	143	+	(c) THE WORK GROUP ALSO CONSISTS OF THE FOLLOWING11
	144	+	MEMBERS, WHO SHALL PARTICIPATE IN THE WORK GROUP IN AN ADVISORY,12
	145	+	NONVOTING CAPACITY:13
	146	+	(I) A MEMBER REPRESENTING THE STATE FOREST SERVICE ,14
	147	+	APPOINTED BY THE DIRECTOR OF THE STATE FOREST SERVICE ;15
	148	+	(II) A MEMBER REPRESENTING A BIOCHAR MANUFACTURING16
	149	+	ENTITY LOCATED IN THE STATE, APPOINTED BY THE DIRECTOR;17
	150	+	(III) A MEMBER REPRESENTING A LOCAL GOVERNMENT WHO HAS18
	151	+	A DEMONSTRATED FOCUS ON ENVIRONMENTAL AIR QUALITY ISSUES, WITH19
	152	+	CLIMATE PROTECTION AS A DEMONSTRATED PRIORITY, APPOINTED BY THE20
	153	+	DIRECTOR OF THE COLORADO ENERGY OFFICE;21
	154	+	(IV) A MEMBER, APPOINTED BY THE DIRECTOR, REPRESENTING THE22
	155	+	FEDERAL BUREAU OF LAND MANAGEMENT WHO HAS KNOWLEDGE23
	156	+	CONCERNING:24
	157	+	(A) THE FEDERAL STANDARDS FOR PLUGGING OIL AND GAS WELLS;25
	158	+	AND26
	159	+	(B) THE OPPORTUNITIES FOR OBTAINING FEDERAL FUNDING FOR27
	160	+	1069
	161	+	-5- THE PILOT PROGRAM;1
	162	+	(V) A MEMBER WITH EXPERTISE IN PLUGGING AND ABANDONMENT2
	163	+	OPERATIONS AND METHANE MITIGATION FROM WELLBORES , APPOINTED BY3
	164	+	THE DIRECTOR;4
	165	+	(VI) A MEMBER OF THE ENVIRONMENTAL JUSTICE ADVISORY5
	166	+	BOARD, APPOINTED BY THE CHAIR OF THE ENVIRONMENTAL JUSTICE6
	167	+	ADVISORY BOARD; AND7
	168	+	(VII) A MEMBER REPRESENTING THE INTERESTS OF8
	169	+	DISPROPORTIONATELY IMPACTED COMMUNITIES, AS DEFINED IN SECTION9
	170	+	24-4-109 (2)(b)(II), APPOINTED BY THE CHAIR OF THE ENVIRONMENTAL10
	171	+	JUSTICE ADVISORY BOARD.11
	172	+	(d) THE APPOINTING AUTHORITIES SHALL MAKE ALL12
	173	+	APPOINTMENTS TO THE WORK GROUP NO LATER THAN JULY 1, 2023. THE13
	174	+	MEMBERS OF THE WORK GROUP SERVE WITHOUT COMPENSATION BUT14
	175	+	SHALL BE REIMBURSED FOR EXPENSES INCURRED BY THEM IN THE15
	176	+	PERFORMANCE OF THEIR OFFICIAL DUTIES .16
	177	+	(e) THE WORK GROUP SHALL CONDUCT MEETINGS AS OFTEN AS17
	178	+	NECESSARY TO PERFORM THE WORK GROUP 'S DUTIES PURSUANT TO THIS18
	179	+	SECTION, INCLUDING CONSULTING AND COORDINATING WITH THE19
	180	+	UNIVERSITY ON THE UNIVERSITY'S DUTIES PURSUANT TO THIS SECTION.20
	181	+	(3) (a) THE UNIVERSITY SHALL:21
	182	+	(I) REVIEW PEER-REVIEWED SCIENTIFIC ARTICLES AND STUDIES ON22
	183	+	BIOCHAR'S CAPACITY TO:23
	184	+	(A) LOWER GREENHOUSE GAS EMISSIONS ;24
	185	+	(B) LOWER CHEMICAL LEAKS;25
	186	+	(C) REMOVE AND SEQUESTER CARBON ;26
	187	+	(D) LOWER THE CARBON FOOTPRINT IN CEMENT ;27
	188	+	1069
	189	+	-6- (E) ADD STRENGTH TO CEMENT; AND1
	190	+	(F) BIND CHEMICALS SUCH AS METHANE, BENZENE, AND CARBON2
	191	+	DIOXIDE FROM FUGITIVE EMISSIONS;3
	192	+	(II) REVIEW ANY APPLICABLE FEDERAL LAWS AND LAWS OF OTHER4
	193	+	STATES THAT ADDRESS THE USE OF BIOCHAR IN THE PLUGGING OF OIL AND5
	194	+	GAS WELLS;6
	195	+	(III) CONDUCT DESK RESEARCH RELATED TO BIOCHAR, INCLUDING7
	196	+	GEOMECHANICAL MODELING AND CALCULATIONS TO LIMIT VARIABLES ;8
	197	+	(IV) CONDUCT LABORATORY RESEARCH, INCLUDING RESEARCH TO9
	198	+	CHARACTERIZE:10
	199	+	(A) THE MECHANICAL STRENGTH, PERMEABILITY, PORE11
	200	+	STRUCTURE, AND GAS ABSORPTION OF BIOCHAR;12
	201	+	(B) THE GEOCHEMICAL REACTION OF BIOCHAR WITH WATER FROM13
	202	+	AN UNDERGROUND FORMATION ; AND14
	203	+	(C) THE CHEMICAL REACTION OF BIOCHAR WITH CEMENT USED IN15
	204	+	THE PLUGGING OF OIL AND GAS WELLS;16
	205	+	(V) EVALUATE WHETHER ANY FEDERAL OR STATE PROGRAMS OR17
	206	+	PRIVATE ENTITIES COULD PROVIDE FUNDING FOR THE PILOT PROGRAM ;18
	207	+	(VI) ASSESS THE COSTS ASSOCIATED WITH USING BIOCHAR IN THE19
	208	+	PLUGGING OF AN OIL AND GAS WELL;20
	209	+	(VII) DETERMINE THE AMOUNT OF BIOCHAR THAT IS AVAILABLE21
	210	+	FOR USE IN THE STATE;22
	211	+	(VIII) EXAMINE WHETHER THE USE OF BIOCHAR IN THE PLUGGING23
	212	+	OF OIL AND GAS WELLS IS CONSISTENT WITH THE STATE'S SHORT-TERM AND24
	213	+	LONG-TERM GREENHOUSE GAS AND POLLUTION REDUCTION GOALS, AS SET25
	214	+	FORTH IN SECTION 25-7-102 (2)(g), TAKING INTO CONSIDERATION THE26
	215	+	EMISSIONS OF GREENHOUSE GASES AND OTHER POLLUTANTS CAUSED BY27
	216	+	1069
	217	+	-7- THE PRODUCTION OF BIOCHAR AND THE USE OF BIOCHAR IN THE PLUGGING1
	218	+	OF OIL AND GAS WELLS; AND2
	219	+	(IX) DETERMINE WHETHER THE USE OF BIOCHAR WHEN PLUGGING3
	220	+	AN OIL AND GAS WELL:4
	221	+	(A) COULD, WITH VERIFIED NET PERMANENT REMOVAL OF5
	222	+	ATMOSPHERIC CARBON AS ESTABLISHED ACCORDING TO6
	223	+	INTERNATIONALLY RECOGNIZED STANDARDS, ALLOW AN OPERATOR OR7
	224	+	OTHER PERSON PLUGGING AN OIL AND GAS WELL TO RECEIVE LEGITIMATE8
	225	+	CARBON CREDITS OR OFFSETS;9
	226	+	(B) WOULD REQUIRE ANY CHANGES TO STATE LAW TO ALLOW THE10
	227	+	USE OF BIOCHAR IN THE PLUGGING OF AN OIL AND GAS WELL OR TO ALLOW11
	228	+	A STATE AGENCY TO COORDINATE WITH APPLICABLE FEDERAL AGENCIES12
	229	+	AND OTHER ENTITIES IN THE IMPLEMENTATION OF THE PILOT PROGRAM ;13
	230	+	AND14
	231	+	(C) WOULD COMPLY, IN THE CASE OF PLUGGING AN OIL AND GAS15
	232	+	WELL OWNED BY THE UNITED STATES OR A TRIBAL LAND TRUST, WITH16
	233	+	FEDERAL LAW OR ANY OTHER APPLICABLE LAW .17
	234	+	(b) IN PERFORMING ITS DUTIES PURSUANT TO SUBSECTION (3)(a)18
	235	+	OF THIS SECTION, THE UNIVERSITY SHALL UTILIZE ANY APPLICABLE19
	236	+	EXISTING FEDERAL, STATE, OR LOCAL PROGRAMS OR FUNDING AND MAY20
	237	+	COORDINATE AND CONSULT WITH OTHER INSTITUTIONS OF HIGHER21
	238	+	EDUCATION.22
	239	+	(4) (a) NO LATER THAN MARCH 1, 2024, THE UNIVERSITY SHALL23
	240	+	PROVIDE AN UNOFFICIAL PROGRESS REPORT OF ITS FINDINGS PURSUANT TO24
	241	+	SUBSECTION (3)(a) OF THIS SECTION TO THE WORK GROUP.25
	242	+	(b) NO LATER THAN JUNE 1, 2024, THE UNIVERSITY SHALL PROVIDE26
	243	+	AN OFFICIAL REPORT OF ITS FINDINGS PURSUANT TO SUBSECTION (3)(a) OF27
	244	+	1069
	245	+	-8- THIS SECTION TO THE WORK GROUP. IF, BASED ON THE REPORT, THE WORK1
	246	+	GROUP DETERMINES THAT A PILOT PROGRAM TO STUDY THE USE OF2
	247	+	BIOCHAR IN THE PLUGGING OF OIL AND GAS WELLS WOULD HAVE A3
	248	+	POSITIVE IMPACT ON THE HEALTH, SAFETY, AND WELFARE OF THE STATE4
	249	+	AND WOULD BE CONSISTENT WITH THE STATE'S SHORT-TERM AND5
	250	+	LONG-TERM GREENHOUSE GAS AND POLLUTION REDUCTION GOALS , AS SET6
	251	+	FORTH IN SECTION 25-7-102 (2)(g), THE WORK GROUP SHALL, NO LATER7
	252	+	THAN AUGUST 1, 2024, DIRECT THE UNIVERSITY TO MAKE8
	253	+	RECOMMENDATIONS REGARDING THE DEVELOPMENT OF THE PILOT9
	254	+	PROGRAM.10
	255	+	(c) THE RECOMMENDATIONS PURSUANT TO SUBSECTION (4)(b) OF11
	256	+	THIS SECTION MUST INCLUDE RECOMMENDATIONS REGARDING A PLAN TO:12
	257	+	(I) DEVELOP STANDARDS FOR:13
	258	+	(A) USING BIOCHAR IN THE PLUGGING OF THE SELECTED OIL AND14
	259	+	GAS WELLS;15
	260	+	(B) MONITORING THE EMISSIONS OF THE SELECTED OIL AND GAS16
	261	+	WELLS; AND17
	262	+	(C) COMPARING EMISSIONS DATA FROM THE SELECTED OIL AND18
	263	+	GAS WELLS TO EMISSIONS DATA FROM OIL AND GAS WELLS THAT HAVE NOT19
	264	+	BEEN PLUGGED USING BIOCHAR ;20
	265	+	(II) SELECT OIL AND GAS WELLS WHERE AN OPERATOR OR OTHER21
	266	+	PERSON PLUGGING AN OIL AND GAS WELL WILL USE BIOCHAR WHEN22
	267	+	PLUGGING THE WELL IN ACCORDANCE WITH THE STANDARDS DEVELOPED23
	268	+	PURSUANT TO SUBSECTION (4)(c)(I)(A) OF THIS SECTION; AND24
	269	+	(III) CONTINUE, AFTER THE SELECTED OIL AND GAS WELLS ARE25
	270	+	PLUGGED, TO:26
	271	+	(A) MONITOR EMISSIONS AND COMPARE EMISSIONS DATA FROM27
	272	+	1069
	273	+	-9- THE SELECTED OIL AND GAS WELLS IN ACCORDANCE WITH THE STANDARDS1
	274	+	DEVELOPED PURSUANT TO SUBSECTIONS (4)(c)(I)(B) AND (4)(c)(I)(C) OF2
	275	+	THIS SECTION;3
	276	+	(B) ASSESS THE CONDITION OF THE SELECTED OIL AND GAS WELLS;4
	277	+	AND5
	278	+	(C) CONDUCT LABORATORY TESTING ON THE SELECTED OIL AND6
	279	+	GAS WELLS TO DETERMINE THE ABILITY OF BIOCHAR TO ABSORB OR7
	280	+	ADSORB METHANE AND OTHER CHEMICALS FOUND IN A PLUGGED OIL AND8
	281	+	GAS WELL AND TO DETERMINE THE BEST ESTIMATE OF THE LONG-TERM9
	282	+	DURABILITY OF BIOCHAR WHEN USED IN THE PLUGGING OF AN OIL AND GAS10
	283	+	WELL.11
	284	+	(d) THE RECOMMENDATIONS PURSUANT TO SUBSECTION (4)(b) OF12
	285	+	THIS SECTION MUST INCLUDE, AT A MINIMUM, RECOMMENDATIONS13
	286	+	REGARDING:14
	287	+	(I) THE ESTIMATED COSTS TO IMPLEMENT THE PILOT PROGRAM ;15
	288	+	(II) THE DURATION OF THE PILOT PROGRAM ;16
	289	+	(III) A DETAILED PLAN FOR THE IMPLEMENTATION OF THE PILOT17
	290	+	PROGRAM BY THE COMMISSION ;18
	291	+	(IV) A DESCRIPTION OF ANY OPPORTUNITIES TO WORK WITH OR19
	292	+	RECEIVE FUNDING FROM FEDERAL AGENCIES OR PRIVATE ENTITIES IN THE20
	293	+	IMPLEMENTATION OF THE PILOT PROGRAM ; AND21
	294	+	(V) A PROCESS FOR REPORTING THE FINDINGS OF THE PILOT22
	295	+	PROGRAM.23
	296	+	(5) NO LATER THAN DECEMBER 1, 2024, THE UNIVERSITY SHALL24
	297	+	SUBMIT A DRAFT REPORT DESCRIBING ITS RECOMMENDATIONS FOR THE25
	298	+	DEVELOPMENT OF A PILOT PROGRAM PURSUANT TO SUBSECTIONS (4)(b),26
	299	+	(4)(c), AND (4)(d) OF THIS SECTION TO THE WORK GROUP. NO LATER THAN27
	300	+	1069
	301	+	-10- DECEMBER 15, 2024, THE UNIVERSITY SHALL:1
	302	+	(a) IN CONSULTATION WITH THE WORK GROUP , CREATE A FINAL2
	303	+	REPORT THAT INCORPORATES THE WORK GROUP'S COMMENTS REGARDING3
	304	+	THE DRAFT REPORT; AND4
	305	+	(b) PROVIDE A COPY OF THE FINAL REPORT TO THE DIRECTOR .5
	306	+	(6) THE DIRECTOR SHALL POST A COPY OF THE FINAL REPORT6
	307	+	DESCRIBED IN SUBSECTION (5)(b) OF THIS SECTION ON THE COMMISSION'S7
	308	+	WEBSITE.8
	309	+	(7) THIS SECTION IS REPEALED, EFFECTIVE SEPTEMBER 1, 2025.9
	310	+	SECTION 3. In Colorado Revised Statutes, 34-60-124, amend10
	311	+	(4)(b); and add (4)(d) as follows:11
	312	+	34-60-124. Oil and gas conservation and environmental12
	313	+	response fund - repeal. (4) The oil and gas conservation and13
	314	+	environmental response fund may be expended:14
	315	+	(b) For purposes authorized by section 23-41-114 (4); C.R.S. AND15
	316	+	(d) (I) BY THE COMMISSION AND COLORADO STATE UNIVERSITY,16
	317	+	ESTABLISHED IN SECTION 23-31-101, FOR THE PURPOSES OF THE STUDY17
	318	+	CONDUCTED PURSUANT TO SECTION 34-60-134.18
	319	+	(II) THIS SUBSECTION (4)(d) IS REPEALED, EFFECTIVE SEPTEMBER19
	320	+	1, 2025.20
	321	+	SECTION 4. Appropriation. (1) For the 2023-24 state fiscal21
	322	+	year, $370,140 is appropriated to the department of higher education. This22
	323	+	appropriation is from the oil and gas conservation and environmental23
	324	+	response fund created in section 34-60-122 (5)(a), C.R.S., and is based on24
	325	+	an assumption that the department will require an additional 3.0 FTE. To25
	326	+	implement this act, the department may use this appropriation for the26
	327	+	board of governors of the Colorado state university system for the biochar27
	328	+	1069
	329	+	-11- in oil and gas well plugging working advisory group.1
	330	+	(2) For the 2023-24 state fiscal year, $5,600 is appropriated to the2
	331	+	department of natural resources for use by the oil and gas conservation3
	332	+	commission. This appropriation is from the oil and gas conservation and4
	333	+	environmental response fund created in section 34-60-122 (5)(a), C.R.S.5
	334	+	To implement this act, the commission may use this appropriation for6
	335	+	program costs.7
	336	+	SECTION 5. Safety clause. The general assembly hereby finds,8
	337	+	determines, and declares that this act is necessary for the immediate9
	338	+	preservation of the public peace, health, or safety.10
	339	+	1069
	340	+	-12-