SB1821 EngrossedLRB097 08782 ASK 48912 b

1    AN ACT concerning regulation.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 1. Short title. This Act may be cited as the Carbon
5Dioxide Transportation and Sequestration Act.
 
6    Section 5. Legislative purpose. Pipeline transportation of
7carbon dioxide for sequestration, enhanced oil recovery, and
8other purposes is declared to be a public use and service, in
9the public interest, and a benefit to the welfare of Illinois
10and the people of Illinois because pipeline transportation is
11necessary for sequestration, enhanced oil recovery, or other
12carbon management purposes and thus is an essential component
13to compliance with required or voluntary plans to reduce carbon
14dioxide emissions from "clean coal" facilities and other
15sources. Carbon dioxide pipelines are critical to the promotion
16and use of Illinois coal and also advance economic development,
17environmental protection, and energy security in the State.
 
18    Section 10. Definitions. As used in this Act:
19    "Carbon dioxide pipeline" or "pipeline" means the in-state
20portion of a pipeline, including appurtenant facilities,
21property rights, and easements, that are used exclusively for
22the purpose of transporting carbon dioxide to a point of sale,

 

 

SB1821 Engrossed- 2 -LRB097 08782 ASK 48912 b

1storage, enhanced oil recovery, or other carbon management
2application.
3    "Clean coal facility" has the meaning ascribed to that term
4in Section 1-10 of the Illinois Power Agency Act.
5    "Clean coal SNG facility" has the meaning ascribed to that
6term in Section 1-10 of the Illinois Power Agency Act.
7    "Clean coal SNG brownfield facility" has the meaning
8ascribed to that term in Section 1-10 of the Illinois Power
9Agency Act.
10    "Commission" means the Illinois Commerce Commission.
11    "Sequester" has the meaning ascribed to that term in
12Section 1-10 of the Illinois Power Agency Act.
13    "Transportation" means the physical movement of carbon
14dioxide by pipeline conducted for a person's own use or account
15or the use or account of another person or persons.
 
16    Section 15. Scope. This Act applies to the application
17process for the issuance of a certificate of authority by an
18owner or operator of a pipeline designed, constructed, and
19operated to transport and to sequester carbon dioxide produced
20by a clean coal facility, by a clean coal SNG facility, by a
21clean coal SNG brownfield facility, or by any other source that
22will result in the reduction of carbon dioxide emissions from
23that source.
 
24    Section 20. Application.

 

 

SB1821 Engrossed- 3 -LRB097 08782 ASK 48912 b

1    (a) No person or entity may construct, operate, or repair a
2carbon dioxide pipeline unless the person or entity possesses a
3certificate of authority.
4    (b) The Commission, after a hearing, shall grant an
5application for a certificate of authority authorizing the
6construction and operation of a carbon dioxide pipeline to the
7extent that it finds that the application was properly filed;
8the applicant is fit, willing, and able to construct and
9operate the pipeline in compliance with this Act and with
10Commission regulations and orders; and the proposed pipeline is
11consistent with the public interest, public benefit, and
12legislative purpose as set forth in this Act. Evidence
13encompassing any of the factors described in items (1) through
14(9) of this subsection (b) that is submitted by the applicant,
15any other party, or the Commission's staff shall also be
16considered by the Commission.
17    In its review of an application for a certificate of
18authority to construct and operate a proposed carbon dioxide
19pipeline and any alternate locations for that proposed pipeline
20or facility, the Commission shall consider, but not be limited
21to, the following:
22        (1) that the applicant has filed or will timely file
23    with the Pipeline and Hazardous Materials Safety
24    Administration of the U.S. Department of Transportation
25    all forms required by that agency in advance of
26    constructing a carbon dioxide pipeline;

 

 

SB1821 Engrossed- 4 -LRB097 08782 ASK 48912 b

1        (2) that the applicant has filed or will timely file
2    with the U.S. Army Corps of Engineers all applications for
3    permits required by that agency in advance of constructing
4    a carbon dioxide pipeline;
5        (3) that the applicant has entered into an agreement
6    with the Illinois Department of Agriculture that governs
7    the mitigation of agricultural impacts associated with the
8    construction of the proposed pipeline;
9        (4) any evidence regarding the applicant's financial,
10    managerial, legal, and technical qualifications necessary
11    to construct and operate the proposed carbon dioxide
12    pipeline;
13        (5) any evidence of the effect of the pipeline upon the
14    economy, infrastructure, and public safety presented by
15    local governmental units that will be affected by the
16    proposed pipeline route;
17        (6) any evidence of the effect of the pipeline upon
18    property values presented by property owners who will be
19    affected by the proposed pipeline or facility, provided
20    that the Commission need not hear evidence as to the actual
21    valuation of property such as that as would be presented to
22    and determined by the courts under the Eminent Domain Act;
23        (7) any evidence presented by the Department of
24    Commerce and Economic Opportunity regarding the current
25    and future local, State-wide, or regional economic effect,
26    direct or indirect, of the proposed pipeline or facility

 

 

SB1821 Engrossed- 5 -LRB097 08782 ASK 48912 b

1    including, but not limited to, ability of the State to
2    attract economic growth, meet future energy requirements,
3    and ensure compliance with environmental requirements and
4    goals;
5        (8) any evidence addressing the factors described in
6    items (1) through (9) of this subsection (b) or other
7    relevant factors that is presented by any other State
8    agency, the applicant, a party, or other entity that
9    participates in the proceeding, including evidence
10    presented by the Commission's staff; and
11        (9) any evidence presented by any State or federal
12    governmental entity as to how the proposed pipeline will
13    affect the security, stability, and reliability of energy.
14    In its written order, the Commission shall address all of
15the evidence presented, and if the order is contrary to any of
16the evidence, the Commission shall state the reasons for its
17determination with regard to that evidence.
18    (c) When an applicant files its application for a
19certificate of authority with the Commission, it shall provide
20notice to each local government where the proposed pipeline
21will be located and include a map of the proposed pipeline
22route. The applicant shall also publish notice in a newspaper
23of general circulation in each county where the proposed
24pipeline is located.
25    (d) An application for a certificate of authority filed
26pursuant to this Section may request either that the Commission

 

 

SB1821 Engrossed- 6 -LRB097 08782 ASK 48912 b

1review and approve a specific route for a carbon dioxide
2pipeline, or that the Commission review and approve a project
3route width that identifies the areas in which the pipeline
4would be located, with such width ranging from the minimum
5width required for a pipeline right-of-way up to 200 feet in
6width. The purpose for allowing the option of review and
7approval of a project route width is to provide increased
8flexibility during the construction process to accommodate
9specific landowner requests, avoid environmentally sensitive
10areas, or address special environmental permitting
11requirements.
12    (e) The Commission's rules shall ensure that notice of an
13application for a certificate of authority is provided within
1430 days after filing to the landowners along a proposed project
15route, or to the potentially affected landowners within a
16proposed project route width, using the notification
17procedures set forth in the Commission's rules. If the
18Commission grants approval of a project route width as opposed
19to a specific project route, then the applicant must, as it
20finalizes the actual pipeline alignment within the project
21route width, file its final list of affected landowners with
22the Commission at least 14 days in advance of beginning
23construction on any tract within the project route width and
24also provide the Commission with at least 14 days' notice
25before filing a complaint for eminent domain in the circuit
26court with regard to any tract within the project route width.

 

 

SB1821 Engrossed- 7 -LRB097 08782 ASK 48912 b

1    
2    (f) The Commission shall make its determination on any
3application for a certificate of authority filed pursuant to
4this Section and issue its final order within 11 months after
5the date that the application is filed.
6    (g) Within 6 months after the Commission's entry of an
7order approving either a specific route or a project route
8width under this Section, the owner or operator of the carbon
9dioxide pipeline that receives that order may file supplemental
10applications for minor route deviations outside the approved
11project route width, allowing for additions or changes to the
12approved route to address environmental concerns encountered
13during construction or to accommodate landowner requests.
14Notice of a supplemental application shall be provided to any
15State agency that appeared in the original proceeding or
16immediately affected landowner at the time that supplemental
17application is filed. The route deviations shall be approved by
18the Commission within 45 days, unless a written objection is
19filed to the supplemental application within 20 days after the
20date the supplemental application is filed. If a written
21objection is filed, then the Commission shall issue an order
22either granting or denying the route deviation within 60 days
23after the filing of the objection. Hearings on any such
24supplemental application shall be limited to the
25reasonableness of the specific variance proposed, and the
26issues of the public interest and benefit of the project or

 

 

SB1821 Engrossed- 8 -LRB097 08782 ASK 48912 b

1fitness of the applicant shall not be reopened in the
2supplemental proceeding.
3    (h) The rules of the Commission may include additional
4options for expediting the issuance of certificates and
5approvals under this Section. If an applicant elects to use an
6option provided for in the rules, then the rules may provide
7that: (1) the applicant must request the use of the expedited
8process at the time of filing its application; (2) the
9Commission may engage experts and procure additional
10administrative resources that are reasonably necessary for
11implementing the expedited process; and (3) the applicant must
12bear any additional costs incurred by the Commission as a
13result of the applicant's use of the expedited process.
14    (i) A certificate of authority to construct and operate a
15carbon dioxide pipeline issued by the Commission shall contain
16and include all of the following:
17        (1) a grant of authority to construct and operate a
18    carbon dioxide pipeline as requested in the application,
19    subject to the laws of this State; and
20        (2) a limited grant of authority to take and acquire an
21    easement in any property or interest in property for the
22    construction, maintenance, or operation of a carbon
23    dioxide pipeline in the manner provided for the exercise of
24    the power of eminent domain under the Eminent Domain Act.
25    The limited grant of authority shall be restricted to, and
26    exercised solely for, the purpose of siting,

 

 

SB1821 Engrossed- 9 -LRB097 08782 ASK 48912 b

1    rights-of-way, and easements appurtenant, including
2    construction and maintenance. The applicant shall not
3    exercise this power until it has used reasonable and good
4    faith efforts to acquire the property or easement thereto.
5    The applicant may thereafter use this power when the
6    applicant determines that the easement is necessary to
7    avoid unreasonable delay or economic hardship to the
8    progress of activities carried out pursuant to the
9    certificate of authority.
 
10    Section 25. Procedures. Notwithstanding any other
11provision of this Act, any power granted pursuant to this Act
12to acquire an easement is subject to, and shall be exercised in
13accordance with, the Eminent Domain Act.
 
14    Section 30. Safety. A carbon dioxide pipeline owner shall
15construct, maintain, and operate all of its pipelines, related
16facilities, and equipment in this State in a manner that poses
17no undue risk to its employees or the public. The Commission
18shall adopt federal safety regulations governing the
19construction, maintenance, and operations of carbon dioxide
20pipelines, related facilities, and equipment to ensure the
21safety of pipeline employees and the public.
 
22    Section 99. Effective date. This Act takes effect upon
23becoming law.