(III) AMEMBER REPRESENTING THE C OLORADO ENERGY OFFICE, APPOINTED BY THE DIRECTOR OF THECOLORADO ENERGY OFFICE ;

(IV) A MEMBER REPRESENTING THE OIL AND GAS INDUSTRY , APPOINTED BY THE DIRECTOR;

(V) A MEMBER ,APPOINTED BY THE DIRECTOR OF THC OLORADO -4- 1069 ENERGY OFFICE , REPRESENTING AN ENVIRONMENTAL ADVOCACY ORGANIZATION WITH :

(A) AFOCUSONTHEREDUCTIONOFGREENHOUSEGASEMISSIONS ;

AND (B) EXPERIENCE WITH CARBON REMOVAL AND SEQUESTRATION SOLUTIONS;

(VI) A MEMBER WITH EXPERTISE IN THE BIOCHAR INDUSTRY , APPOINTED BY THE DIRECTOR;AND (VII) AMEMBER OF THE COMMISSION ,WHO IS THE CHAIR OF THE WORK GROUP ,APPOINTED BY THE DIRECTOR.

(c) THE WORK GROUP ALSO CONSISTS OF THE FOLLOWING MEMBERS ,WHOSHALLPARTICIPATEINTHEWORKGROUPINANADVISORY , NONVOTING CAPACITY :

(I) A MEMBER REPRESENTING THE STATE FOREST SERVICE , APPOINTED BY THE DIRECTOR OF THE STATE FOREST SERVI;E (II) A MEMBER REPRESENTING A BIOCHAR MANUFACTURING ENTITY LOCATED IN THE STAT,APPOINTED BY THE DIRECTO;

(III) MEMBER REPRESENTING A LOCAL GOVERNMENT WHO HAS ADEMONSTRATEDFOCUSONENVIRONMENTALAIRQUALITYISSUES ,WITH CLIMATEPROTECTIONASADEMONSTRATEDPRIORITY ,APPOINTEDBYTHE DIRECTOR OF THEC OLORADO ENERGY OFFICE;

(IV) AMEMBER ,APPOINTEDBYTHEDIRECTOR REPRESENTINGTHE FEDERAL BUREAU OF LAND MANAGEMENT WHO HAS KNOWLEDGE CONCERNING :

(A) THEFEDERALSTANDARDSFORPLUGGINGOILANDGASWELLS ;

AND (B) THE OPPORTUNITIES FOR OBTAINING FEDERAL FUNDING FOR -5- 1069 THE PILOT PROGRAM;

(V) AMEMBERWITHEXPERTISEINPLUGGINGANDABANDONMENT OPERATIONSANDMETHANEMITIGATIONFROMWELLBORES APPOINTEDBY 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)(IAPPOINTED 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 JULY1, 2023.

HE MEMBERS OF THE WORK GROUP SERVE WITHOUT COMPENSATION BUT SHALL BE REIMBURSED FOR EXPENSES INCURRED BY THEM IN THE PERFORMANCE OF THEIR OFFICIAL DUTIE.

(e) THE 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 UNIVERSITS DUTIES PURSUANT TO THIS SECTI.N (3) (a) HE UNIVERSITY SHAL:

(I) EVIEWPEER -REVIEWEDSCIENTIFICARTICLESANDSTUDIESON BIOCHAR S CAPACITY T:

(A) LOWER GREENHOUSE GAS EMISSIONS ;

(B) LOWER CHEMICAL LEAKS ;

(C) REMOVE AND SEQUESTER CARBON ;

(D) LOWER THE CARBON FOOTPRINT IN CEMENT;

-6- 1069 (E) A DD STRENGTH TO CEMENT ;AND (F) BIND CHEMICALS SUCH AS METHANE ,BENZENE,AND CARBON DIOXIDE FROM FUGITIVE EMISSION;

(II) EVIEWANYAPPLICABLEFEDERALLAWSANDLAWSOFOTHER STATESTHATADDRESS THE USE OFBIOCHARINTHEPLUGGINGOFOILAND GAS WELLS ;

(III) ONDUCTDESKRESEARCHRELATEDTOBIOCHAR ,INCLUDING GEOMECHANICAL MODELING AND CALCULATIONS TO LIMIT VARIABLES ;

(IV) CONDUCTLABORATORYRESEARCH ,INCLUDINGRESEARCHTO CHARACTERIZE :

(A) THE MECHANICAL STRENGTH , PERMEABILITY , PORE STRUCTURE ,AND GAS ABSORPTION OF BIOCHAR;

(B) THEGEOCHEMICALREACTIONOFBIOCHARWITHWATERFROM AN UNDERGROUND FORMATION ;AND (C) THE CHEMICAL REACTION OFBIOCHAR 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 PROGRA;

(VI) ASSESS THE COSTS ASSOCIATEDWITHUSINGBIOCHARINTHE PLUGGING OF AN OIL AND GAS WELL;

(VII) DETERMINE THE AMOUNT OF BIOCHAR THAT IS AVAILABLE FOR USE IN THE STAT;

(VIII) EXAMINE WHETHER THE USE OFBIOCHARINTHE PLUGGING OFOILANDGASWELLSISCONSISTENTWITHTHESTATE SSHORT -TERMAND LONG -TERMGREENHOUSEGASANDPOLLUTIONREDUCTIONGOALS ,ASSET FORTH IN SECTION 25-7-102 (2)(g)TAKING INTO CONSIDERATION THE EMISSIONS OF GREENHOUSE GASES AND OTHER POLLUTANTS CAUSED BY -7- 1069 THEPRODUCTIONOFBIOCHARANDTHEUSEOFBIOCHARINTHEPLUGGING OF OIL AND GAS WELL;AND (IX) DETERMINEWHETHERTHEUSEOFBIOCHARWHENPLUGGING 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 WELLTO RECEIVE LEGITIMATE CARBON CREDITS OR OFFSETS;

(B) W OULDREQUIREANYCHANGESTOSTATELAWTOALLOWTHE USE OFBIOCHARINTHEPLUGGINGOFANOILANDGAS WELLORTOALLOW A STATE AGENCY TO COORDINATE WITH APPLICABLE FEDERAL AGENCIES AND OTHER ENTITIES IN THE IMPLEMENTATION OF THE PILOT PROGRA;

AND (C) W OULD 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) N PERFORMING ITS DUTIES PURSUANT TO SUBSECTIO(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) O LATER THANM ARCH 1, 2024,THE UNIVERSITY SHALL PROVIDEANUNOFFICIALPROGRESSREPORTOFITSFINDINGSPURSUANTTO SUBSECTION (3)(aOF THIS SECTION TO THE WORK GROU.

(b) NOLATERTHAN UNE 1,2024,THEUNIVERSITYSHALLPROVIDE ANOFFICIALREPORTOFITSFINDINGSPURSUANTTOSUBSECTION (3)(aOF -8- 1069 THISSECTIONTOTHE WORKGROUP .F,BASEDONTHE 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 HEALT,SAFETY,AND WELFARE OF THE STATE AND WOULD BE CONSISTENT WITH THE STATE S SHORT -TERM AND LONG TERMGREENHOUSEGASANDPOLLUTIONREDUCTIONGOALS ,ASSET FORTH IN SECTION25-7-102 (2)(gTHE WORK GROUP SHALL ,NO LATER THAN AUGUST 1, 2024, DIRECT THE UNIVERSITY TO MAKE RECOMMENDATIONS REGARDING THE DEVELOPMENT OF THE PILOT PROGRAM .

(c) HE RECOMMENDATIONS PURSUANT TOSUBSECTION (4)(bOF THISSECTIONMUSTINCLUDERECOMMENDATIONSREGARDINGAPLANTO :

(I) DEVELOP STANDARDS FOR:

(A) USING 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 GASWELLSTOEMISSIONSDATAFROMOILANDGASWELLSTHATHAVENOT BEEN PLUGGED USING BIOCHAR;

(II) 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)(OF THIS SECTIO;AND (III) ONTINUE ,AFTER THE SELECTED OIL AND GAS WELLS ARE PLUGGED ,TO:

(A) M ONITOR EMISSIONS AND COMPARE EMISSIONS DATA FROM -9- 1069 THESELECTEDOILANDGASWELLSINACCORDANCEWITHTHESTANDARDS DEVELOPED PURSUANT TO SUBSECTIONS (4)(c)(I)(AND (4)(c)(I)(OF THIS SECTIO;

(B) ASSESSTHECONDITIONOFTHESELECTEDOILANDGASWELLS ;

AND (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 OILAND GAS WELL AND TO DETERMINE THE BEST ESTIMATE OF THE LONG-TERM DURABILITYOFBIOCHARWHENUSEDINTHEPLUGGINGOFANOILANDGAS WELL .

(d) THERECOMMENDATIONS PURSUANT TOSUBSECTION (4)(bOF THIS SECTION MUST INCLUDE , AT A MINIMUM ,RECOMMENDATIONS REGARDING :

(I) HE ESTIMATED COSTS TO IMPLEMENT THE PILOT PROGRA;

(II) HE DURATION OF THE PILOT PROGRA;

(III) ADETAILED 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) NO 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)(dOFTHISSECTIONTOTHEWORKGROUP .NOLATERTHAN -10- 1069 D ECEMBER 15, 2024THE UNIVERSITY SHALL :

(a) N CONSULTATION WITH THE WORK GROUP ,CREATE A FINAL REPORTTHATINCORPORATESTHEWORKGROUP 'SCOMMENTSREGARDING THE DRAFT REPORT ;AND (b) ROVIDE A COPY OF THE FINAL REPORT TO THE DIRECTOR.

(6) THE DIRECTOR SHALL POST A COPY OF THE FINAL REPORT DESCRIBED IN SUBSECTION (5)(b)OFTHIS SECTION ON THE COMMISSION'S WEBSITE .

(7) THIS SECTION IS REPEALE,EFFECTIVES EPTEMBER 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) Forpurposesauthorizedbysection23-41-114(4);C.R.S.AND (d) (I) Y THE COMMISSION AND C OLORADO STATE UNIVERSITY , ESTABLISHED IN SECTION 23-31-101, FOR THE PURPOSES OF THE STUDY CONDUCTED PURSUANT TO SECTION 34-60-134.

(II) HISSUBSECTION (4)(d)ISREPEALED ,EFFECTIVESEPTEMBER 1, 2025.

SECTION 4.

Appropriation.

(1) For the 2023-24 state fiscal year,$370,140isappropriatedtothedepartmentofhighereducation.This appropriation is from the oil and gas conservation and environmental responsefundcreatedinsection34-60-122(5)(a),C.R.S.,andisbasedon an assumption thatthedepartmentwillrequireanadditional 3.0 FTE.

To implement this act, the department may use this appropriation for the boardofgovernorsoftheColoradostateuniversitysystemforthebiochar -11- 1069 in oil and gas well plugging working advisory group.

(2) Forthe2023-24statefiscalyear,$5,600isappropriatedtothe 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 assemblyherebyfinds, determines, and declares that this act is necessary for the immediate preservation of the public peace, health, or safety.

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