HOUSE BILL 23-1069
BY REPRESENTATIVE(S) McCormick and Amabile, Bacon, Bird,
Boesenecker, Brown, deGruy Kennedy, Dickson, Froelich,
Gonzales-Gutierrez, Hamrick, Jodeh, Lindsay, Mabrey, McLachlan, Ortiz,
Parenti, Sharbini, Snyder, Story, Titone, Valdez, Velasco, Weissman,
Willford, Woodrow, McCluskie;
also SENATOR(S) Cutter and Priola, Bridges, Gonzales, Jaquez Lewis,
Sullivan, Winter F., Fenberg.
C
ONCERNING THE CREATION OF THE BIOCHAR IN OIL AND GAS WELL
PLUGGING WORKING ADVISORY GROUP TO MAKE RECOMME NDATIONS
FOR THE DEVELOPMENT OF A PILOT PROGRAM TO STUDY THE USE OF
BIOCHAR IN THE PLUGGING OF OIL AND GAS WELLS
, AND, IN
CONNECTION THEREWITH
, MAKING AN APPROPRIATION.
Be it enacted by the General Assembly of the State of Colorado:
SECTION 1. Legislative declaration. (1) The general assembly
finds and declares that:
(a) It is important to focus on finding innovative solutions to:
(I) Mitigate the impacts of climate change;
NOTE: This bill has been prepared for the signatures of the appropriate legislative
officers and the Governor. To determine whether the Governor has signed the bill
or taken other action on it, please consult the legislative status sheet, the legislative
history, or the Session Laws.
________
Capital letters or bold & italic numbers indicate new material added to existing law; dashes
through words or numbers indicate deletions from existing law and such material is not part of
the act. (II) Further protect human and animal health; and
(III) Lower the carbon footprint of current methods of plugging oil
and gas wells;
(b) The state recognizes the importance of regulating the oil and gas
industry and supports the implementation of practices and technologies to
address emission reduction goals and research to develop these practices
and technologies;
(c) The state should continue to regulate the plugging of oil and gas
wells by both state agencies and the oil and gas industry;
(d) It is important to create opportunities for the oil and gas industry
to permanently sequester carbon from the atmosphere;
(e) Exploring the use of biochar in oil and gas well plugging
operations may potentially open up economic opportunities for Colorado to
become a leader in the use of biochar in oil and gas well plugging
operations; and
(f) Biochar could be beneficial to efforts by the oil and gas industry
to reduce greenhouse gas emissions in Colorado.
(2) The general assembly further finds and declares that it is in the
interest of Colorado to convene a working advisory group that coordinates
with Colorado state university and makes recommendations on establishing
a pilot program to study the use of biochar in oil and gas well plugging
operations.
SECTION 2. In Colorado Revised Statutes, add 34-60-136 as
follows:
34-60-136. Biochar in oil and gas well plugging working
advisory group - created - members - study by Colorado state
university - recommendations for the development of a pilot program
- report - definitions - repeal. (1) A
S USED IN THIS SECTION, UNLESS THE
CONTEXT OTHERWISE REQUIRES
:
PAGE 2-HOUSE BILL 23-1069 (a) "BIOCHAR" MEANS THE SOLID CARBON -RICH PRODUCT MADE
WHEN WOODY BIOMASS UNDERGOES PYROLYSIS IN AN OXYGEN
-DEPLETED
ATMOSPHERE AT APPROXIMATELY EIGHT HUNDRED DEGREES
CELSIUS.
(b) "C
OLORADO ENERGY OFFICE" MEANS THE COLORADO ENERGY
OFFICE CREATED IN SECTION
24-38.5-101 (1).
(c) "D
IRECTOR" MEANS THE DIRECTOR OF THE COMMISSION
APPOINTED PURSUANT TO SECTION
34-60-104.5 (1) OR THE DIRECTOR'S
DESIGNEE
.
(d) "E
NVIRONMENTAL JUSTICE ADVISORY BOARD " MEANS THE
ENVIRONMENTAL JUSTICE ADVISORY BOARD CREATED IN SECTION
25-1-134
(2)(a).
(e) "L
OCAL GOVERNMENT " MEANS A HOME RULE OR STATUTORY
COUNTY
, MUNICIPALITY, OR CITY AND COUNTY.
(f) "P
ILOT PROGRAM" MEANS THE PILOT PROGRAM DESCRIBED IN
SUBSECTION
(4)(b) OF THIS SECTION.
(g) "S
ELECTED OIL AND GAS WELLS" MEANS THE OIL AND GAS WELLS
SELECTED BY THE WORK GROUP PURSUANT TO SUBSECTION
(4)(c)(II) OF THIS
SECTION
.
(h) "S
TATE FOREST SERVICE" MEANS THE COLORADO STATE FOREST
SERVICE IDENTIFIED IN SECTION
23-31-302.
(i) "U
NIVERSITY" MEANS COLORADO STATE UNIVERSITY
ESTABLISHED IN SECTION
23-31-101.
(j) "W
ORK GROUP" MEANS THE BIOCHAR IN OIL AND GAS WELL
PLUGGING WORKING ADVISORY GROUP CREATED IN SUBSECTION
(2)(a) OF
THIS SECTION
.
(2) (a) T
HE BIOCHAR IN OIL AND GAS WELL PL UGGING WORKING
ADVISORY GROUP IS CREATED IN THE COMMISSION
.
(b) T
HE WORK GROUP CONSISTS OF THE FOLLOWING MEMBERS :
PAGE 3-HOUSE BILL 23-1069 (I) A MEMBER OF THE COMMISSION 'S TECHNICAL STAFF WITH
EXPERTISE IN ENGINEERING OR ORPHANED WELLS
, APPOINTED BY THE
DIRECTOR
;
(II) A
MEMBER REPRESENTING THE DEPARTMENT OF PUBLIC HEALTH
AND ENVIRONMENT CREATED IN SECTION
24-1-119 (1), APPOINTED BY THE
EXECUTIVE DIRECTOR OF THE DEPARTMENT OF PUBLIC HEALTH AND
ENVIRONMENT
;
(III) A
MEMBER REPRESENTING THE COLORADO ENERGY OFFICE ,
APPOINTED BY THE DIRECTOR OF THE COLORADO ENERGY OFFICE;
(IV) A
MEMBER REPRESENTING THE OIL AND GAS INDUSTRY ,
APPOINTED BY THE DIRECTOR;
(V) A
MEMBER, APPOINTED BY THE DIRECTOR OF THE COLORADO
ENERGY OFFICE
, REPRESENTING AN ENVIRONMENTAL ADVOCACY
ORGANIZATION WITH
:
(A) A
FOCUS ON THE REDUCTION OF GREENHOUSE GAS EMISSIONS ;
AND
(B) EXPERIENCE WITH CARBON REMOVAL AND SEQUESTRATION
SOLUTIONS
;
(VI) A
MEMBER WITH EXPERTISE IN THE BIOCHAR INDUSTRY ,
APPOINTED BY THE DIRECTOR; AND
(VII) A MEMBER OF THE COMMISSION , WHO IS THE CHAIR OF THE
WORK GROUP
, APPOINTED BY THE DIRECTOR.
(c) T
HE WORK GROUP ALSO CONSISTS OF THE FOLLOWING MEMBERS ,
WHO SHALL PARTICIPATE IN THE WORK GROUP IN AN ADVISORY , NONVOTING
CAPACITY
:
(I) A
MEMBER REPRESENTING THE STATE FOREST SERVICE ,
APPOINTED BY THE DIRECTOR OF THE STATE FOREST SERVICE ;
(II) A
MEMBER REPRESENTING A BIOCHAR MANUFACTURING ENTITY
LOCATED IN THE STATE
, APPOINTED BY THE DIRECTOR;
PAGE 4-HOUSE BILL 23-1069 (III) A MEMBER REPRESENTING A LOCAL GOVERNMENT WHO HAS A
DEMONSTRATED FOCUS ON ENVIRONMENTAL AIR QUALITY ISSUES
, WITH
CLIMATE PROTECTION AS A DEMONSTRATED PRIORITY
, APPOINTED BY THE
DIRECTOR OF THE
COLORADO ENERGY OFFICE;
(IV) A
MEMBER, APPOINTED BY THE DIRECTOR, REPRESENTING THE
FEDERAL BUREAU OF LAND MANAGEMENT WHO HAS KNOWLEDGE
CONCERNING
:
(A) T
HE FEDERAL STANDARDS FOR PLUGGING OIL AND GAS WELLS ;
AND
(B) THE OPPORTUNITIES FOR OBTAINING FEDERAL FUNDING FOR THE
PILOT PROGRAM
;
(V) A
MEMBER WITH EXPERTISE IN PLUGGING AND ABANDONMENT
OPERATIONS AND METHANE MITIGATION FROM WELLBORES
, APPOINTED BY
THE DIRECTOR
;
(VI) A
MEMBER OF THE ENVIRONMENTAL JUSTICE ADVISORY BOARD ,
APPOINTED BY THE CHAIR OF THE ENVIRONMENTAL JUSTICE ADVISORY
BOARD
; AND
(VII) A MEMBER REPRESENTING THE INTERESTS OF
DISPROPORTIONATELY IMPACTED COMMUNITIES
, AS DEFINED IN SECTION
24-4-109 (2)(b)(II), APPOINTED BY THE CHAIR OF THE ENVIRONMENTAL
JUSTICE ADVISORY BOARD
.
(d) T
HE APPOINTING AUTHORITIES SHALL MAKE ALL APPOINTMENTS
TO THE WORK GROUP NO LATER THAN
JULY 1, 2023. THE MEMBERS OF THE
WORK GROUP SERVE WITHOUT COMPENSATION BUT SHALL BE REIMBURSED
FOR EXPENSES INCURRED BY THEM IN THE PERFORMANCE OF THEIR OFFICIAL
DUTIES
.
(e) T
HE WORK GROUP SHALL CONDUCT MEETINGS AS OFTEN AS
NECESSARY TO PERFORM THE WORK GROUP
'S DUTIES PURSUANT TO THIS
SECTION
, INCLUDING CONSULTING AND COORDINATING WITH THE
UNIVERSITY ON THE UNIVERSITY
'S DUTIES PURSUANT TO THIS SECTION.
(3) (a) T
HE UNIVERSITY SHALL:
PAGE 5-HOUSE BILL 23-1069 (I) REVIEW PEER-REVIEWED SCIENTIFIC ARTICLES AND STUDIES ON
BIOCHAR
'S CAPACITY TO:
(A) L
OWER GREENHOUSE GAS EMISSIONS ;
(B) L
OWER CHEMICAL LEAKS;
(C) R
EMOVE AND SEQUESTER CARBON ;
(D) L
OWER THE CARBON FOOTPRINT IN CEMENT ;
(E) A
DD STRENGTH TO CEMENT; AND
(F) BIND CHEMICALS SUCH AS METHANE , BENZENE, AND CARBON
DIOXIDE FROM FUGITIVE EMISSIONS
;
(II) R
EVIEW ANY APPLICABLE FEDERAL LAWS AND LAWS OF OTHER
STATES THAT ADDRESS THE USE OF BIOCHAR IN THE PLUGGING OF OIL AND
GAS WELLS
;
(III) C
ONDUCT DESK RESEARCH RELATED TO BIOCHAR , INCLUDING
GEOMECHANICAL MODELING AND CALCULATIONS TO LIMIT VARIABLES
;
(IV) C
ONDUCT LABORATORY RESEARCH , INCLUDING RESEARCH TO
CHARACTERIZE
:
(A) T
HE MECHANICAL STRENGTH, PERMEABILITY, PORE STRUCTURE,
AND GAS ABSORPTION OF BIOCHAR ;
(B) T
HE GEOCHEMICAL REACTION OF BIOCHAR WITH WATER FROM AN
UNDERGROUND FORMATION
; AND
(C) THE CHEMICAL REACTION OF BIOCHAR WITH CEMENT USED IN
THE PLUGGING OF OIL AND GAS WELLS
;
(V) E
VALUATE WHETHER ANY FEDERAL OR STATE PROGRAMS OR
PRIVATE ENTITIES COULD PROVIDE FUNDING FOR THE PILOT PROGRAM
;
(VI) A
SSESS THE COSTS ASSOCIATED WITH USING BIOCHAR IN THE
PLUGGING OF AN OIL AND GAS WELL
;
PAGE 6-HOUSE BILL 23-1069 (VII) DETERMINE THE AMOUNT OF BIOCHAR THAT IS AVAILABLE FOR
USE IN THE STATE
;
(VIII) E
XAMINE WHETHER THE USE OF BIOCHAR IN THE PLUGGING OF
OIL AND GAS WELLS IS CONSISTENT WITH THE STATE
'S SHORT-TERM AND
LONG
-TERM GREENHOUSE GAS AND POLLUTION REDUCTION GOALS , AS SET
FORTH IN SECTION
25-7-102 (2)(g), TAKING INTO CONSIDERATION THE
EMISSIONS OF GREENHOUSE GASES AND OTHER POLLUTANTS CAUSED BY THE
PRODUCTION OF BIOCHAR AND THE USE OF BIOCHAR IN THE PLUGGING OF OIL
AND GAS WELLS
; AND
(IX) DETERMINE WHETHER THE USE OF BIOCHAR WHEN PLUGGING AN
OIL AND GAS WELL
:
(A) C
OULD, WITH VERIFIED NET PERMANENT REMOVAL OF
ATMOSPHERIC CARBON AS ESTABLISHED ACCORDING TO INTERNATIONALLY
RECOGNIZED STANDARDS
, ALLOW AN OPERATOR OR OTHER PERSON
PLUGGING AN OIL AND GAS WELL TO RECEIVE LEGITIMATE CARBON CREDITS
OR OFFSETS
;
(B) W
OULD REQUIRE ANY CHANGES TO STATE LAW TO ALLOW THE
USE OF BIOCHAR IN THE PLUGGING OF AN OIL AND GAS WELL OR TO ALLOW
A STATE AGENCY TO COORDINATE WITH APPLICABLE FEDERAL AGENCIES AND
OTHER ENTITIES IN THE IMPLEMENTATION OF THE PILOT PROGRAM
; AND
(C) WOULD COMPLY, IN THE CASE OF PLUGGING AN OIL AND GAS
WELL OWNED BY THE
UNITED STATES OR A TRIBAL LAND TRUST , WITH
FEDERAL LAW OR ANY OTHER APPLICABLE LAW
.
(b) I
N PERFORMING ITS DUTIES PURSUANT TO SUBSECTION (3)(a) OF
THIS SECTION
, THE UNIVERSITY SHALL UTILIZE ANY APPLICABLE EXISTING
FEDERAL
, STATE, OR LOCAL PROGRAMS OR FUNDING AND MAY COORDINATE
AND CONSULT WITH OTHER INSTITUTIONS OF HIGHER EDUCATION
.
(4) (a) N
O LATER THAN MARCH 1, 2024, THE UNIVERSITY SHALL
PROVIDE AN UNOFFICIAL PROGRESS REPORT OF ITS FINDINGS PURSUANT TO
SUBSECTION
(3)(a) OF THIS SECTION TO THE WORK GROUP.
(b) N
O LATER THAN JUNE 1, 2024, THE UNIVERSITY SHALL PROVIDE
AN OFFICIAL REPORT OF ITS FINDINGS PURSUANT TO SUBSECTION
(3)(a) OF
PAGE 7-HOUSE BILL 23-1069 THIS SECTION TO THE WORK GROUP . IF, BASED ON THE REPORT, THE WORK
GROUP DETERMINES THAT A PILOT PROGRAM TO STUDY THE USE OF BIOCHAR
IN THE PLUGGING OF OIL AND GAS WELLS WOULD HAVE A POSITIVE IMPACT
ON THE HEALTH
, SAFETY, AND WELFARE OF THE STATE AND WOULD BE
CONSISTENT WITH THE STATE
'S SHORT-TERM AND LONG-TERM GREENHOUSE
GAS AND POLLUTION REDUCTION GOALS
, AS SET FORTH IN SECTION 25-7-102
(2)(g),
THE WORK GROUP SHALL, NO LATER THAN AUGUST 1, 2024, DIRECT
THE UNIVERSITY TO MAKE RECOMMENDATIONS REGARDING THE
DEVELOPMENT OF THE PILOT PROGRAM
.
(c) T
HE RECOMMENDATIONS PURSUANT TO SUBSECTION (4)(b) OF
THIS SECTION MUST INCLUDE RECOMMENDATIONS REGARDING A PLAN TO
:
(I) D
EVELOP STANDARDS FOR:
(A) U
SING BIOCHAR IN THE PLUGGING OF THE SELECTED OIL AND GAS
WELLS
;
(B) M
ONITORING THE EMISSIONS OF THE SELECTED OIL AND GAS
WELLS
; AND
(C) COMPARING EMISSIONS DATA FROM THE SELECTED OIL AND GAS
WELLS TO EMISSIONS DATA FROM OIL AND GAS WELLS THAT HAVE NOT BEEN
PLUGGED USING BIOCHAR
;
(II) S
ELECT OIL AND GAS WELLS WHERE AN OPERATOR OR OTHER
PERSON PLUGGING AN OIL AND GAS WELL WILL USE BIOCHAR WHEN
PLUGGING THE WELL IN ACCORDANCE WITH THE STANDARDS DEVELOPED
PURSUANT TO SUBSECTION
(4)(c)(I)(A) OF THIS SECTION; AND
(III) CONTINUE, AFTER THE SELECTED OIL AND GAS WELLS ARE
PLUGGED
, TO:
(A) M
ONITOR EMISSIONS AND COMPARE EMISSIONS DATA FROM THE
SELECTED OIL AND GAS WELLS IN ACCORDANCE WITH THE STANDARDS
DEVELOPED PURSUANT TO SUBSECTIONS
(4)(c)(I)(B) AND (4)(c)(I)(C) OF
THIS SECTION
;
(B) A
SSESS THE CONDITION OF THE SELECTED OIL AND GAS WELLS ;
AND
PAGE 8-HOUSE BILL 23-1069 (C) CONDUCT LABORATORY TESTING ON THE SELECTED OIL AND GAS
WELLS TO DETERMINE THE ABILITY OF BIOCHAR TO ABSORB OR ADSORB
METHANE AND OTHER CHEMICALS FOUND IN A PLUGGED OIL AND GAS WELL
AND TO DETERMINE THE BEST ESTIMATE OF THE LONG
-TERM DURABILITY OF
BIOCHAR WHEN USED IN THE PLUGGING OF AN OIL AND GAS WELL
.
(d) T
HE RECOMMENDATIONS PURSUANT TO SUBSECTION (4)(b) OF
THIS SECTION MUST INCLUDE
, AT A MINIMUM , RECOMMENDATIONS
REGARDING
:
(I) T
HE ESTIMATED COSTS TO IMPLEMENT THE PILOT PROGRAM ;
(II) T
HE DURATION OF THE PILOT PROGRAM ;
(III) A
DETAILED PLAN FOR THE IMPLEMENTATION OF THE PILOT
PROGRAM BY THE COMMISSION
;
(IV) A
DESCRIPTION OF ANY OPPORTUNITIES TO WORK WITH OR
RECEIVE FUNDING FROM FEDERAL AGENCIES OR PRIVATE ENTITIES IN THE
IMPLEMENTATION OF THE PILOT PROGRAM
; AND
(V) A PROCESS FOR REPORTING THE FINDINGS OF THE PILOT
PROGRAM
.
(5) N
O LATER THAN DECEMBER 1, 2024, THE UNIVERSITY SHALL
SUBMIT A DRAFT REPORT DESCRIBING ITS RECOMMENDATIONS FOR THE
DEVELOPMENT OF A PILOT PROGRAM PURSUANT TO SUBSECTIONS
(4)(b),
(4)(c),
AND (4)(d) OF THIS SECTION TO THE WORK GROUP. NO LATER THAN
DECEMBER 15, 2024, THE UNIVERSITY SHALL:
(a) I
N CONSULTATION WITH THE WORK GROUP , CREATE A FINAL
REPORT THAT INCORPORATES THE WORK GROUP
'S COMMENTS REGARDING
THE DRAFT REPORT
; AND
(b) PROVIDE A COPY OF THE FINAL REPORT TO THE DIRECTOR .
(6) T
HE DIRECTOR SHALL POST A COPY OF THE FINAL REPORT
DESCRIBED IN SUBSECTION
(5)(b) OF THIS SECTION ON THE COMMISSION 'S
WEBSITE
.
PAGE 9-HOUSE BILL 23-1069 (7) THIS SECTION IS REPEALED, EFFECTIVE SEPTEMBER 1, 2025.
SECTION 3. In Colorado Revised Statutes, 34-60-124, amend
(4)(b); and add (4)(d) as follows:
34-60-124. Oil and gas conservation and environmental response
fund - repeal. (4) The oil and gas conservation and environmental
response fund may be expended:
(b) For purposes authorized by section 23-41-114 (4); C.R.S.; AND
(d) (I) BY THE COMMISSION AND COLORADO STATE UNIVERSITY ,
ESTABLISHED IN SECTION 23-31-101, FOR THE PURPOSES OF THE STUDY
CONDUCTED PURSUANT TO SECTION
34-60-136.
(II) T
HIS SUBSECTION (4)(d) IS REPEALED, EFFECTIVE SEPTEMBER 1,
2025.
SECTION 4. Appropriation. (1) For the 2023-24 state fiscal year,
$370,140 is appropriated to the department of higher education. This
appropriation is from the oil and gas conservation and environmental
response fund created in section 34-60-122 (5)(a), C.R.S., and is based on
an assumption that the department will require an additional 3.0 FTE. To
implement this act, the department may use this appropriation for the board
of governors of the Colorado state university system for the biochar in oil
and gas well plugging working advisory group.
(2) For the 2023-24 state fiscal year, $5,600 is appropriated to the
department of natural resources for use by the oil and gas conservation
commission. This appropriation is from the oil and gas conservation and
environmental response fund created in section 34-60-122 (5)(a), C.R.S. To
implement this act, the commission may use this appropriation for program
costs.
SECTION 5. Safety clause. The general assembly hereby finds,
PAGE 10-HOUSE BILL 23-1069 determines, and declares that this act is necessary for the immediate
preservation of the public peace, health, or safety.
____________________________ ____________________________
Julie McCluskie Steve Fenberg
SPEAKER OF THE HOUSE PRESIDENT OF
OF REPRESENTATIVES THE SENATE
____________________________ ____________________________
Robin Jones Cindi L. Markwell
CHIEF CLERK OF THE HOUSE SECRETARY OF
OF REPRESENTATIVES THE SENATE
APPROVED________________________________________
(Date and Time)
_________________________________________
Jared S. Polis
GOVERNOR OF THE STATE OF COLORADO
PAGE 11-HOUSE BILL 23-1069