Amendments for HB23-1069
House Journal, February 17
30 Amend printed bill, strike everything below the enacting clause and
31 substitute:
32
33 "SECTION 1. Legislative declaration. (1) The general
34 assembly finds and declares that:
35 (a) It is important to focus on finding innovative solutions to:
36 (I) Mitigate the impacts of climate change;
37 (II) Further protect human and animal health; and
38 (III) Lower the carbon footprint of current methods of plugging
39 oil and gas wells;
40 (b) The state recognizes the importance of regulating the oil and
41 gas industry and supports the implementation of practices and
42 technologies to address emission reduction goals and research to develop
43 these practices and technologies;
44 (c) The state should continue to regulate the plugging of oil and
45 gas wells by both state agencies and the oil and gas industry;
46 (d) It is important to create opportunities for the oil and gas
47 industry to permanently sequester carbon from the atmosphere;
48 (e) Exploring the use of biochar in oil and gas well plugging
49 operations may potentially open up economic opportunities for Colorado
50 to become a leader in the use of biochar in oil and gas well plugging
51 operations; and
52 (f) Biochar could be beneficial to efforts by the oil and gas
53 industry to reduce greenhouse gas emissions in Colorado.
54
1 (2) The general assembly further finds and declares that it is in the
2 interest of Colorado to convene a working advisory group that
3 coordinates with Colorado state university and makes recommendations
4 on establishing a pilot program to study the use of biochar in oil and gas
5 well plugging operations.
6 SECTION 2. In Colorado Revised Statutes, add 34-60-134 as
7 follows:
8 34-60-134. Biochar in oil and gas well plugging working
9 advisory group - created - members - study by Colorado state
10 university - recommendations for the development of a pilot program
11 - report - definitions - repeal. (1) AS USED IN THIS SECTION, UNLESS THE
12 CONTEXT OTHERWISE REQUIRES:
13 (a) "BIOCHAR" MEANS THE SOLID CARBON-RICH PRODUCT MADE
14 WHEN WOODY BIOMASS UNDERGOES PYROLYSIS IN AN OXYGEN-DEPLETED
15 ATMOSPHERE AT APPROXIMATELY EIGHT HUNDRED DEGREES CELSIUS.
16 (b) "COLORADO ENERGY OFFICE" MEANS THE COLORADO ENERGY
17 OFFICE CREATED IN SECTION 24-38.5-101 (1).
18 (c) "DIRECTOR" MEANS THE DIRECTOR OF THE COMMISSION
19 APPOINTED PURSUANT TO SECTION 34-60-104.5 (1) OR THE DIRECTOR'S
20 DESIGNEE.
21 (d) "ENVIRONMENTAL JUSTICE ADVISORY BOARD" MEANS THE
22 ENVIRONMENTAL JUSTICE ADVISORY BOARD CREATED IN SECTION
23 25-1-134 (2)(a).
24 (e) "LOCAL GOVERNMENT" MEANS A HOME RULE OR STATUTORY
25 COUNTY, MUNICIPALITY, OR CITY AND COUNTY.
26 (f) "PILOT PROGRAM" MEANS THE PILOT PROGRAM DESCRIBED IN
27 SUBSECTION (4)(b) OF THIS SECTION.
28 (g) "SELECTED OIL AND GAS WELLS" MEANS THE OIL AND GAS
29 WELLS SELECTED BY THE WORK GROUP PURSUANT TO SUBSECTION
30 (4)(c)(II) OF THIS SECTION.
31 (h) "STATE FOREST SERVICE" MEANS THE COLORADO STATE
32 FOREST SERVICE IDENTIFIED IN SECTION 23-31-302.
33 (i) "UNIVERSITY" MEANS COLORADO STATE UNIVERSITY
34 ESTABLISHED IN SECTION 23-31-101.
35 (j) "WORK GROUP" MEANS THE BIOCHAR IN OIL AND GAS WELL
36 PLUGGING WORKING ADVISORY GROUP CREATED IN SUBSECTION (2)(a) OF
37 THIS SECTION.
38 (2) (a) THE BIOCHAR IN OIL AND GAS WELL PLUGGING WORKING
39 ADVISORY GROUP IS CREATED IN THE COMMISSION.
40 (b) THE WORK GROUP CONSISTS OF THE FOLLOWING MEMBERS:
41 (I) A MEMBER OF THE COMMISSION'S TECHNICAL STAFF WITH
42 EXPERTISE IN ENGINEERING OR ORPHANED WELLS, APPOINTED BY THE
43 DIRECTOR;
44 (II) A MEMBER REPRESENTING THE DEPARTMENT OF PUBLIC
45 HEALTH AND ENVIRONMENT CREATED IN SECTION 24-1-119 (1),
46 APPOINTED BY THE EXECUTIVE DIRECTOR OF THE DEPARTMENT OF PUBLIC
47 HEALTH AND ENVIRONMENT;
48 (III) A MEMBER REPRESENTING THE COLORADO ENERGY OFFICE,
49 APPOINTED BY THE DIRECTOR OF THE COLORADO ENERGY OFFICE;
50 (IV) A MEMBER REPRESENTING THE OIL AND GAS INDUSTRY,
51 APPOINTED BY THE DIRECTOR;
52 (V) A MEMBER, APPOINTED BY THE DIRECTOR OF THE COLORADO
53 ENERGY OFFICE, REPRESENTING AN ENVIRONMENTAL ADVOCACY
54 ORGANIZATION WITH:
55
1 (A) A FOCUS ON THE REDUCTION OF GREENHOUSE GAS EMISSIONS;
2 AND
3 (B) EXPERIENCE WITH CARBON REMOVAL AND SEQUESTRATION
4 SOLUTIONS;
5 (VI) A MEMBER WITH EXPERTISE IN THE BIOCHAR INDUSTRY,
6 APPOINTED BY THE DIRECTOR; AND
7 (VII) A MEMBER OF THE COMMISSION, WHO IS THE CHAIR OF THE
8 WORK GROUP, APPOINTED BY THE DIRECTOR.
9 (c) THE WORK GROUP ALSO CONSISTS OF THE FOLLOWING
10 MEMBERS, WHO SHALL PARTICIPATE IN THE WORK GROUP IN AN ADVISORY,
11 NONVOTING CAPACITY:
12 (I) A MEMBER REPRESENTING THE STATE FOREST SERVICE,
13 APPOINTED BY THE DIRECTOR OF THE STATE FOREST SERVICE;
14 (II) A MEMBER REPRESENTING A BIOCHAR MANUFACTURING
15 ENTITY LOCATED IN THE STATE, APPOINTED BY THE DIRECTOR;
16 (III) A MEMBER REPRESENTING A LOCAL GOVERNMENT WHO HAS
17 A DEMONSTRATED FOCUS ON ENVIRONMENTAL AIR QUALITY ISSUES, WITH
18 CLIMATE PROTECTION AS A DEMONSTRATED PRIORITY, APPOINTED BY THE
19 DIRECTOR OF THE COLORADO ENERGY OFFICE;
20 (IV) A MEMBER, APPOINTED BY THE DIRECTOR, REPRESENTING THE
21 FEDERAL BUREAU OF LAND MANAGEMENT WHO HAS KNOWLEDGE
22 CONCERNING:
23 (A) THE FEDERAL STANDARDS FOR PLUGGING OIL AND GAS WELLS;
24 AND
25 (B) THE OPPORTUNITIES FOR OBTAINING FEDERAL FUNDING FOR
26 THE PILOT PROGRAM;
27 (V) A MEMBER WITH EXPERTISE IN PLUGGING AND ABANDONMENT
28 OPERATIONS AND METHANE MITIGATION FROM WELLBORES, APPOINTED BY
29 THE DIRECTOR;
30 (VI) A MEMBER OF THE ENVIRONMENTAL JUSTICE ADVISORY
31 BOARD, APPOINTED BY THE CHAIR OF THE ENVIRONMENTAL JUSTICE
32 ADVISORY BOARD; AND
33 (VII) A MEMBER REPRESENTING THE INTERESTS OF
34 DISPROPORTIONATELY IMPACTED COMMUNITIES, AS DEFINED IN SECTION
35 24-4-109 (2)(b)(II), APPOINTED BY THE CHAIR OF THE ENVIRONMENTAL
36 JUSTICE ADVISORY BOARD.
37 (d) THE APPOINTING AUTHORITIES SHALL MAKE ALL
38 APPOINTMENTS TO THE WORK GROUP NO LATER THAN JULY 1, 2023. THE
39 MEMBERS OF THE WORK GROUP SERVE WITHOUT COMPENSATION BUT
40 SHALL BE REIMBURSED FOR EXPENSES INCURRED BY THEM IN THE
41 PERFORMANCE OF THEIR OFFICIAL DUTIES.
42 (e) THE WORK GROUP SHALL CONDUCT MEETINGS AS OFTEN AS
43 NECESSARY TO PERFORM THE WORK GROUP'S DUTIES PURSUANT TO THIS
44 SECTION, INCLUDING CONSULTING AND COORDINATING WITH THE
45 UNIVERSITY ON THE UNIVERSITY'S DUTIES PURSUANT TO THIS SECTION.
46 (3) (a) THE UNIVERSITY SHALL:
47 (I) REVIEW PEER-REVIEWED SCIENTIFIC ARTICLES AND STUDIES ON
48 BIOCHAR'S CAPACITY TO:
49 (A) LOWER GREENHOUSE GAS EMISSIONS;
50 (B) LOWER CHEMICAL LEAKS;
51 (C) REMOVE AND SEQUESTER CARBON;
52 (D) LOWER THE CARBON FOOTPRINT IN CEMENT;
53 (E) ADD STRENGTH TO CEMENT; AND
54 (F) BIND CHEMICALS SUCH AS METHANE, BENZENE, AND CARBON
55 DIOXIDE FROM FUGITIVE EMISSIONS;
1 (II) REVIEW ANY APPLICABLE FEDERAL LAWS AND LAWS OF OTHER
2 STATES THAT ADDRESS THE USE OF BIOCHAR IN THE PLUGGING OF OIL AND
3 GAS WELLS;
4 (III) CONDUCT DESK RESEARCH RELATED TO BIOCHAR, INCLUDING
5 GEOMECHANICAL MODELING AND CALCULATIONS TO LIMIT VARIABLES;
6 (IV) CONDUCT LABORATORY RESEARCH, INCLUDING RESEARCH TO
7 CHARACTERIZE:
8 (A) THE MECHANICAL STRENGTH, PERMEABILITY, PORE
9 STRUCTURE, AND GAS ABSORPTION OF BIOCHAR;
10 (B) THE GEOCHEMICAL REACTION OF BIOCHAR WITH WATER FROM
11 AN UNDERGROUND FORMATION; AND
12 (C) THE CHEMICAL REACTION OF BIOCHAR WITH CEMENT USED IN
13 THE PLUGGING OF OIL AND GAS WELLS;
14 (V) EVALUATE WHETHER ANY FEDERAL OR STATE PROGRAMS OR
15 PRIVATE ENTITIES COULD PROVIDE FUNDING FOR THE PILOT PROGRAM;
16 (VI) ASSESS THE COSTS ASSOCIATED WITH USING BIOCHAR IN THE
17 PLUGGING OF AN OIL AND GAS WELL;
18 (VII) DETERMINE THE AMOUNT OF BIOCHAR THAT IS AVAILABLE
19 FOR USE IN THE STATE;
20 (VIII) EXAMINE WHETHER THE USE OF BIOCHAR IN THE PLUGGING
21 OF OIL AND GAS WELLS IS CONSISTENT WITH THE STATE'S SHORT-TERM AND
22 LONG-TERM GREENHOUSE GAS AND POLLUTION REDUCTION GOALS, AS SET
23 FORTH IN SECTION 25-7-102 (2)(g), TAKING INTO CONSIDERATION THE
24 EMISSIONS OF GREENHOUSE GASES AND OTHER POLLUTANTS CAUSED BY
25 THE PRODUCTION OF BIOCHAR AND THE USE OF BIOCHAR IN THE PLUGGING
26 OF OIL AND GAS WELLS; AND
27 (IX) DETERMINE WHETHER THE USE OF BIOCHAR WHEN PLUGGING
28 AN OIL AND GAS WELL:
29 (A) COULD, WITH VERIFIED NET PERMANENT REMOVAL OF
30 ATMOSPHERIC CARBON AS ESTA B LIS H E D A CC O R D ING TO
31 INTERNATIONALLY RECOGNIZED STANDARDS, ALLOW AN OPERATOR OR
32 OTHER PERSON PLUGGING AN OIL AND GAS WELL TO RECEIVE LEGITIMATE
33 CARBON CREDITS OR OFFSETS;
34 (B) WOULD REQUIRE ANY CHANGES TO STATE LAW TO ALLOW THE
35 USE OF BIOCHAR IN THE PLUGGING OF AN OIL AND GAS WELL OR TO ALLOW
36 A STATE AGENCY TO COORDINATE WITH APPLICABLE FEDERAL AGENCIES
37 AND OTHER ENTITIES IN THE IMPLEMENTATION OF THE PILOT PROGRAM;
38 AND
39 (C) WOULD COMPLY, IN THE CASE OF PLUGGING AN OIL AND GAS
40 WELL OWNED BY THE UNITED STATES OR A TRIBAL LAND TRUST, WITH
41 FEDERAL LAW OR ANY OTHER APPLICABLE LAW.
42 (b) IN PERFORMING ITS DUTIES PURSUANT TO SUBSECTION (3)(a)
43 OF THIS SECTION, THE UNIVERSITY SHALL UTILIZE ANY APPLICABLE
44 EXISTING FEDERAL, STATE, OR LOCAL PROGRAMS OR FUNDING AND MAY
45 COORDINATE AND CONSULT WITH OTHER INSTITUTIONS OF HIGHER
46 EDUCATION.
47 (4) (a) NO LATER THAN MARCH 1, 2024, THE UNIVERSITY SHALL
48 PROVIDE AN UNOFFICIAL PROGRESS REPORT OF ITS FINDINGS PURSUANT TO
49 SUBSECTION (3)(a) OF THIS SECTION TO THE WORK GROUP.
50 (b) NO LATER THAN JUNE 1, 2024, THE UNIVERSITY SHALL PROVIDE
51 AN OFFICIAL REPORT OF ITS FINDINGS PURSUANT TO SUBSECTION (3)(a) OF
52 THIS SECTION TO THE WORK GROUP. IF, BASED ON THE REPORT, THE WORK
53 GROUP DETERMINES THAT A PILOT PROGRAM TO STUDY THE USE OF
54 BIOCHAR IN THE PLUGGING OF OIL AND GAS WELLS WOULD HAVE A
55 POSITIVE IMPACT ON THE HEALTH, SAFETY, AND WELFARE OF THE STATE
1 AND WOULD BE CONSISTENT WITH THE STATE'S SHORT-TERM AND
2 LONG-TERM GREENHOUSE GAS AND POLLUTION REDUCTION GOALS, AS SET
3 FORTH IN SECTION 25-7-102 (2)(g), THE WORK GROUP SHALL, NO LATER
4 THAN AUGUST 1, 2024, DIRECT THE UNIVERSITY TO MAKE
5 RECOMMENDATIONS REGARDING THE DEVELOPMENT OF THE PILOT
6 PROGRAM.
7 (c) THE RECOMMENDATIONS PURSUANT TO SUBSECTION (4)(b) OF
8 THIS SECTION MUST INCLUDE RECOMMENDATIONS REGARDING A PLAN TO:
9 (I) DEVELOP STANDARDS FOR:
10 (A) USING BIOCHAR IN THE PLUGGING OF THE SELECTED OIL AND
11 GAS WELLS;
12 (B) MONITORING THE EMISSIONS OF THE SELECTED OIL AND GAS
13 WELLS; AND
14 (C) COMPARING EMISSIONS DATA FROM THE SELECTED OIL AND
15 GAS WELLS TO EMISSIONS DATA FROM OIL AND GAS WELLS THAT HAVE NOT
16 BEEN PLUGGED USING BIOCHAR;
17 (II) SELECT OIL AND GAS WELLS WHERE AN OPERATOR OR OTHER
18 PERSON PLUGGING AN OIL AND GAS WELL WILL USE BIOCHAR WHEN
19 PLUGGING THE WELL IN ACCORDANCE WITH THE STANDARDS DEVELOPED
20 PURSUANT TO SUBSECTION (4)(c)(I)(A) OF THIS SECTION; AND
21 (III) CONTINUE, AFTER THE SELECTED OIL AND GAS WELLS ARE
22 PLUGGED, TO:
23 (A) MONITOR EMISSIONS AND COMPARE EMISSIONS DATA FROM
24 THE SELECTED OIL AND GAS WELLS IN ACCORDANCE WITH THE STANDARDS
25 DEVELOPED PURSUANT TO SUBSECTIONS (4)(c)(I)(B) AND (4)(c)(I)(C) OF
26 THIS SECTION;
27 (B) ASSESS THE CONDITION OF THE SELECTED OIL AND GAS WELLS;
28 AND
29 (C) CONDUCT LABORATORY TESTING ON THE SELECTED OIL AND
30 GAS WELLS TO DETERMINE THE ABILITY OF BIOCHAR TO ABSORB OR
31 ADSORB METHANE AND OTHER CHEMICALS FOUND IN A PLUGGED OIL AND
32 GAS WELL AND TO DETERMINE THE BEST ESTIMATE OF THE LONG-TERM
33 DURABILITY OF BIOCHAR WHEN USED IN THE PLUGGING OF AN OIL AND GAS
34 WELL.
35 (d) THE RECOMMENDATIONS PURSUANT TO SUBSECTION (4)(b) OF
36 THIS SECTION MUST INCLUDE, AT A MINIMUM, RECOMMENDATIONS
37 REGARDING:
38 (I) THE ESTIMATED COSTS TO IMPLEMENT THE PILOT PROGRAM;
39 (II) THE DURATION OF THE PILOT PROGRAM;
40 (III) A DETAILED PLAN FOR THE IMPLEMENTATION OF THE PILOT
41 PROGRAM BY THE COMMISSION;
42 (IV) A DESCRIPTION OF ANY OPPORTUNITIES TO WORK WITH OR
43 RECEIVE FUNDING FROM FEDERAL AGENCIES OR PRIVATE ENTITIES IN THE
44 IMPLEMENTATION OF THE PILOT PROGRAM; AND
45 (V) A PROCESS FOR REPORTING THE FINDINGS OF THE PILOT
46 PROGRAM.
47 (5) NO LATER THAN DECEMBER 1, 2024, THE UNIVERSITY SHALL
48 SUBMIT A DRAFT REPORT DESCRIBING ITS RECOMMENDATIONS FOR THE
49 DEVELOPMENT OF A PILOT PROGRAM PURSUANT TO SUBSECTIONS (4)(b),
50 (4)(c), AND (4)(d) OF THIS SECTION TO THE WORK GROUP. NO LATER THAN
51 DECEMBER 15, 2024, THE UNIVERSITY SHALL:
52 (a) IN CONSULTATION WITH THE WORK GROUP, CREATE A FINAL
53 REPORT THAT INCORPORATES THE WORK GROUP'S COMMENTS REGARDING
54 THE DRAFT REPORT; AND
55
1 (b) PROVIDE A COPY OF THE FINAL REPORT TO THE DIRECTOR.
2 (6) THE DIRECTOR SHALL POST A COPY OF THE FINAL REPORT
3 DESCRIBED IN SUBSECTION (5)(b) OF THIS SECTION ON THE COMMISSION'S
4 WEBSITE.
5 (7) THIS SECTION IS REPEALED, EFFECTIVE SEPTEMBER 1, 2025.
6 SECTION 3. Safety clause. The general assembly hereby finds,
7 determines, and declares that this act is necessary for the immediate
8 preservation of the public peace, health, or safety.".
House Journal, April 21
52 HB23-1069 be amended as follows, and as so amended, be referred to
53 the Committee of the Whole with favorable
54 recommendation:
55
1 Amend the Energy and Environment Committee Report, dated February
2 16, 2023, page 7, after line 4 insert:
3
4 "SECTION 3. In Colorado Revised Statutes, 34-60-124, amend
5 (4)(b); and add (4)(d) as follows:
6 34-60-124. Oil and gas conservation and environmental
7 response fund - repeal. (4) The oil and gas conservation and
8 environmental response fund may be expended:
9 (b) For purposes authorized by section 23-41-114 (4); C.R.S. AND
10 (d) (I) BY THE COMMISSION AND COLORADO STATE UNIVERSITY,
11 ESTABLISHED IN SECTION 23-31-101, FOR THE PURPOSES OF THE STUDY
12 CONDUCTED PURSUANT TO SECTION 34-60-134.
13 (II) THIS SUBSECTION (4)(d) IS REPEALED, EFFECTIVE SEPTEMBER
14 1, 2025.
15 SECTION 4. Appropriation. (1) For the 2023-24 state fiscal
16 year, $370,140 is appropriated to the department of higher education. This
17 appropriation is from the oil and gas conservation and environmental
18 response fund created in section 34-60-122 (5)(a), C.R.S., and is based on
19 an assumption that the department will require an additional 3.0 FTE. To
20 implement this act, the department may use this appropriation for the
21 board of governors of the Colorado state university system for the biochar
22 in oil and gas well plugging working advisory group.
23 (2) For the 2023-24 state fiscal year, $5,600 is appropriated to the
24 department of natural resources for use by the oil and gas conservation
25 commission. This appropriation is from the oil and gas conservation and
26 environmental response fund created in section 34-60-122 (5)(a), C.R.S.
27 To implement this act, the commission may use this appropriation for
28 program costs.".
29
30 Renumber succeeding section accordingly.
31
32 Page 7, after line 7 insert:
33
34 "Page 1 of the bill, line 105, strike "WELLS." and substitute "WELLS, AND,
35 IN CONNECTION THEREWITH, MAKING AN APPROPRIATION.".".
36
37