(1) There is hereby created at the Colorado school of mines the Colorado energy research institute, which shall be referred to in this section as the "institute". It is the intent of this section that the institute serve as a mechanism for the development of energy and energy-related minerals research programs, including programs at single state or private educational or research institutions and multidisciplinary, interuniversity, government-university, and industry-university energy and energy-related minerals research programs and projects. It is the further intent of this section that the institute provide the mechanism for enhancing the development and promotion of energy and energy-related minerals education programs in the state.

(2) The principal administrative officer of the institute shall be the president of the Colorado school of mines, and budgetary and fiscal procedures and activities of the institute shall be under the supervision of the Colorado school of mines.

(3) It is the duty of the institute to:

(a) Maintain liaison with the state to identify the important regional energy and energy-related minerals problems, including their relationship to the use of the waters of the state;

(b) Solicit and determine, through inquiry of and consultation with the executive and legislative branches of the state government and with local governments, the needs of the said branches and governments for energy data and background information relating to the determination of state policy and actions in relation to energy shortages, planning, and long-range options, and to collect, maintain, and provide such data and background material;

(c) Promote the development of energy and energy-related minerals research programs and projects in single or multiple disciplines at state and private educational and research institutions;

(d) Administer a phase-out program of energy grants to enrolled undergraduates within the higher education system;

(e) Develop and promote energy and energy-related minerals education programs in the state;

(f) Administer programs of public education in energy development, utilization, and conservation, which shall include, but shall not be limited to, energy status reports, sponsorship of symposia, demonstration programs, and reports on research results;

(g) Contract for and to accept any gifts or grants or loans or funds or property or financial or other aid in any form from the United States or any agency or instrumentality thereof, or from the state or any executive or legislative agency thereof, or from any other source and to comply, subject to the provisions of this article, with the terms and conditions thereof, and to have the authority to expend such funds.

(h) Repealed.

(4) The institute shall conduct:

(a) Regular, mutual consultations about its progress in meeting the goals set forth in this section with the department of natural resources; and

(b) The following specific research and educational programs designed to meet the information needs of the department of natural resources, other agencies of the state's executive branch, the legislature, and the public:

(I) (A) The collection of primary data on the economic impact of energy industries, emphasizing oil and gas, on municipalities and counties; the establishment of an energy economics database to be housed and maintained in the Colorado school of mines division of economics and business and the establishment of internet access to such database; the development of reliable means of forecasting by the institute's program in energy economics; and support for the analysis, interpretation, and periodic publication of the findings of the economic analysis.

(B) For the purposes authorized by this subparagraph (I), up to five hundred thousand dollars of the unencumbered balance available in the oil and gas conservation and environmental response fund created in section 34-60-122 (5), C.R.S., may be expended.

(II) (A) The development of research in those sectors of geoscience and engineering that are most critical to the formation of renewable energy and continued enhanced production of natural gas and oil from Rocky Mountain reservoirs, including production optimization and resource distribution and synergies with renewable resources.

(B) For the purpose authorized by this subparagraph (II), up to one million dollars of the unencumbered balance available in the oil and gas conservation and environmental response fund created in section 34-60-122 (5), C.R.S., may be expended.

(C) Of the amount specified in sub-subparagraph (B) of this subparagraph (II): Five hundred thousand dollars may be expended in the state fiscal year beginning July 1, 2005; and five hundred thousand dollars may be expended in the state fiscal year beginning July 1, 2006, if an estimate made on or about May 1, 2006, of the projected unencumbered balance that will be available in the oil and gas conservation and environmental response fund on July 1, 2006, exceeds two and one-half million dollars.

(III) (A) To inform the public, legislative and regulatory bodies, and working professionals about new technologies and their relationship to traditional sources of energy to promote the public's understanding of how its everyday energy needs are met.

(B) For the purpose authorized by this subparagraph (III), up to three hundred seventy-five thousand dollars of the unencumbered balance available in the oil and gas conservation and environmental response fund created in section 34-60-122 (5), C.R.S., may be expended.

(C) Of the amount specified in sub-subparagraph (B) of this subparagraph (III): One hundred seventy-five thousand dollars may be expended in the state fiscal year beginning July 1, 2005; and two hundred thousand dollars may be expended in the state fiscal year beginning July 1, 2006, if an estimate made on or about May 1, 2006, of the projected unencumbered balance that will be available in the oil and gas conservation and environmental response fund on July 1, 2006, exceeds two and one-half million dollars.

(IV) (A) To facilitate economic development by funding local community colleges, colleges, area technical colleges, and vocational schools in regions where energy development is occurring and by providing grants for job training and education resources to advance knowledge and skill development that goes beyond basic research and helps attract, educate, and train people for employment.

(B) For the purpose authorized by this subparagraph (IV), up to one million dollars of the unencumbered balance available in the oil and gas conservation and environmental response fund created in section 34-60-122 (5), C.R.S., may be expended.

(C) Of the amount specified in sub-subparagraph (B) of this subparagraph (IV): Five hundred thousand dollars may be expended in the state fiscal year beginning July 1, 2005; and five hundred thousand dollars may be expended in the state fiscal year beginning July 1, 2006, if an estimate made on or about May 1, 2006, of the projected unencumbered balance that will be available in the oil and gas conservation and environmental response fund on July 1, 2006, exceeds two and one-half million dollars.

(V) (A) To pay the membership dues of the energy council referred to in section 2-3-311 (2)(b), C.R.S.

(B) For the purpose authorized by this subparagraph (V), up to fifty six thousand dollars of the unencumbered balance available in the oil and gas conservation and environmental response fund created in section 34-60-122 (5), C.R.S., may be expended.

(VI) (A) To provide grants for the development of a central resource for building trade professionals, including contractors, engineers, architects, and designers, for the purpose of increasing available tools and education to advance energy-efficient design and construction.

(B) For the purpose authorized by this subparagraph (VI), up to one hundred twenty-five thousand dollars of the unencumbered balance available in the oil and gas conservation and environmental response fund created in section 34-60-122 (5), C.R.S., may be expended.

(C) Of the amount specified in sub-subparagraph (B) of this subparagraph (VI): Seventy-five thousand dollars may be expended in the state fiscal year beginning July 1, 2005; and fifty thousand dollars may be expended in the state fiscal year beginning July 1, 2006, if an estimate made on or about May 1, 2006, of the projected unencumbered balance that will be available in the oil and gas conservation and environmental response fund on July 1, 2006, exceeds two and one-half million dollars.