Section 35-1-120 - Study of greenhouse gas reduction and carbon sequestration opportunities in agriculture and agricultural land management - definitions - reporting - rules(1)(a)(I) In accordance with subsection (1)(a)(II) of this section, the commissioner or the commissioner's designee shall conduct a study to examine greenhouse gas reduction and carbon sequestration opportunities in the agricultural sector and in agricultural land management in the state, including: (A) Soil health management practices, including cover cropping, manure management, soil amendments, rotational grazing, rangeland management, low- and no-till practices, and hedge grows;(B) The use of dry digesters; and(C) An investigation into the potential for creating and offering a certified greenhouse gas offset program and credit instruments to provide fungible greenhouse gas offsets for agricultural producers and in agricultural land management.(II) The commissioner or commissioner's designee shall conduct the study in consultation with the Colorado energy office created in section 24-38.5-101, the air quality control commission created in section 25-7-104 (1), the natural and working lands task force convened by the department of natural resources, the Colorado state forest service, and an institution of higher education with expertise in climate change mitigation, adaptation benefits, and other environmental benefits related to agricultural research.(b)(I) Any certified greenhouse gas offset program and credit instruments offered must reflect real, additional, quantifiable, permanent, verifiable, and enforceable reductions in greenhouse gas emissions that are equivalent to the offsets provided and must not require agricultural producers' participation.(II) Greenhouse gas offsets developed for agricultural producers and in agricultural land management in accordance with this section:(A) May be incorporated into the air quality control commission's rules, including rules adopted under section 25-7-105 (1)(e), and, specifically, rules concerning coordination with other jurisdictions pursuant to the authority granted in, and the considerations required under, section 25-7-105 (1)(e)(V);(B) May be used as compliance instruments by a source regulated under article 7 of title 25, with emission reduction obligations established by the air quality control commission that ensure that the annual, overall, absolute emissions from the source, sector, or group of sources decline consistent with the statewide greenhouse gas emission reduction goals set forth in section 25-7-102 (2)(g); except that, if the source is located in a disproportionately impacted community, the commission shall establish by rule an annual, absolute emission reduction obligation specific to the source;(C) Must not be available as an instrument for emission reduction compliance under section 25-7-105 (1)(e)(V) unless the commission has adopted rules establishing an annual, absolute emission reduction obligation for the relevant sector that is consistent with the statewide greenhouse gas emission reduction goals.(c) The study must identify policy mechanisms to avoid the impacts that the use of greenhouse gas offsets by regulated sources could have on disproportionately impacted communities.(2) The commissioner or the commissioner's designee shall submit to the general assembly: (a) A report summarizing the progress on the study on or before October 1, 2024; and(b) A final report on the study on or before October 1, 2025. The final report must include any legislative, regulatory, or other recommendations for designing and implementing greenhouse gas reduction and carbon sequestration opportunities for the agricultural sector and in agricultural land management in the state.(3)(a)(I) Upon conclusion of the study, with regard to any recommendations in the study that do not require legislative changes, the commissioner, in consultation with the Colorado energy office and the air quality control commission, may adopt rules to implement the recommendations.(II) Any rules adopted pursuant to this subsection (3)(a) must not mandate participation by agricultural producers in any greenhouse gas offset program or any other greenhouse gas reduction and carbon sequestration programs or mechanisms developed in rule, but the rules may provide incentives to agricultural producers for their voluntary participation in any program or mechanism developed in rule pursuant to this subsection (3)(a).(b) If the commissioner adopts rules pursuant to subsection (3)(a) of this section, the department shall include a summary of the rules as part of the department's regulatory agenda that it files pursuant to section 2-7-203 (4) and that is included in the department's "SMART Act" presentation that immediately follows the adoption of the rules.(4) Nothing in this section requires the air quality control commission to adopt rules for greenhouse gas emission offsets or credit mechanisms or to accept any greenhouse gas emission offsets or credit mechanisms as compliance instruments for emission reduction compliance or verification.(5) As used in this section, unless the context otherwise requires: (a) "Anaerobic digester" means a sealed, oxygen-free tank into which feedstock, such as food waste, animal manure, or wastewater sludge, is placed for anaerobic digestion by microorganisms. An anaerobic digester can be used as a means of waste disposal or energy production.(b) "Disproportionately impacted communities" has the meaning set forth in section 24-4-109 (2)(b)(II).(c) "Dry digester" means an anaerobic digester that processes feedstock with a low moisture content.Added by 2023 Ch. 218,§ 3, eff. 8/7/2023.2023 Ch. 218, was passed without a safety clause. See Colo. Const. art. V, § 1(3).