SB2842 104TH GENERAL ASSEMBLY

LRB104 17076 AAS 30493 b

104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
SB2842

Introduced 1/13/2026, by Sen. Michael W. Halpin

SYNOPSIS AS INTRODUCED:

220 ILCS 5/8-509	from Ch. 111 2/3, par. 8-509
220 ILCS 75/20

Amends the Public Utilities Act. In provisions concerning the exercise of eminent domain powers by a public utility, provides that an owner or operator of a pipeline designed, constructed, and operated to transport carbon dioxide to which the Illinois Commerce Commission has granted a certificate under the Carbon Dioxide Transportation and Sequestration Act shall not seek or exercise eminent domain authority from the Commission. Amends the Carbon Dioxide Transportation and Sequestration Act. Provides that a certificate of authority does not grant an owner or operator of a carbon dioxide pipeline the authority to take and acquire an easement in any property or interest in property for the construction, maintenance, or operation of a carbon dioxide pipeline through the exercise of eminent domain power. Removes corresponding provisions concerning eminent domain.

A BILL FOR

AN ACT concerning regulation.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Public Utilities Act is amended by changing Section 8-509 as follows:

(220 ILCS 5/8-509) (from Ch. 111 2/3, par. 8-509)

Sec. 8-509. When necessary for the construction of any alterations, additions, extensions or improvements ordered or authorized under Section 8-406.1 or 8-503 of this Act, any public utility may enter upon, take or damage private property in the manner provided for by the law of eminent domain. If a public utility seeks relief under this Section in the same proceeding in which it seeks a certificate of public convenience and necessity under Section 8-406.1 of this Act, the Commission shall enter its order under this Section either as part of the Section 8-406.1 order or at the same time it enters the Section 8-406.1 order. If a public utility seeks relief under this Section after the Commission enters its order in the Section 8-406.1 proceeding, the Commission shall issue its order under this Section within 45 days after the utility files its petition under this Section.

This Section applies to the exercise of eminent domain powers by telephone companies or telecommunications carriers only when the facilities to be constructed are intended to be used in whole or in part for providing one or more intrastate telecommunications services classified as "noncompetitive" under Section 13-502 in a tariff filed by the condemnor. The exercise of eminent domain powers by telephone companies or telecommunications carriers in all other cases shall be governed solely by "An Act relating to the powers, duties and property of telephone companies", approved May 16, 1903, as now or hereafter amended.

This Section applies to the exercise of eminent domain powers by an owner or operator of a pipeline designed, constructed, and operated to transport carbon dioxide to which the Commission has granted a certificate under Section 20 of the Carbon Dioxide Transportation and Sequestration Act. Such an owner or operator shall not and may seek or exercise eminent domain authority from the Commission under this Section. If the applicant of such a certificate of authority for a new carbon dioxide pipeline seeks relief under this Section in the same proceeding in which it seeks a certificate of authority for a new carbon dioxide pipeline under Section 20 of the Carbon Dioxide Transportation and Sequestration Act, the Commission shall enter its order under this Section either as part of or at the same time as its order under the Carbon Dioxide Transportation and Sequestration Act. Notwithstanding anything to the contrary in this Section, the owner or operator of such a pipeline shall not be considered to be a public utility for any other provisions of this Act.

(Source: P.A. 103-651, eff. 7-18-24.)

Section 10. The Carbon Dioxide Transportation and Sequestration Act is amended by changing Section 20 as follows:

(220 ILCS 75/20)

Sec. 20. Application.

(a) No person or entity may construct, operate, or repair a carbon dioxide pipeline unless the person or entity possesses a certificate of authority. Nothing in this Act requires a legacy carbon dioxide pipeline to obtain a certificate of authority.

(b) The Commission, after a hearing, may grant an application for a certificate of authority authorizing the construction and operation of a carbon dioxide pipeline if it makes a specific written finding as to each of the following:

(1) the application was properly filed;

(2) the applicant is fit, willing, and able to construct and operate the pipeline in compliance with this Act and with Commission regulations and orders of the Commission or any applicable federal agencies;

(3) the applicant has entered into one or more agreements with a source or sources that will result in the reduction of carbon dioxide emissions from that source or sources and the applicant has filed such agreement or agreements as part of its application;

(4) the applicant has filed with the Pipeline and Hazardous Materials Safety Administration of the U.S. Department of Transportation all forms required by that agency in advance of constructing a carbon dioxide pipeline;

(5) the applicant has filed with the U.S. Army Corps of Engineers all applications for permits required by that agency in advance of constructing a carbon dioxide pipeline;

(6) the applicant has entered into an agreement with the Illinois Department of Agriculture that governs the mitigation of agricultural impacts associated with the construction of the proposed pipeline;

(6.1) the applicant has applied for any and all other federal permits necessary to construct and operate a carbon dioxide pipeline;

(6.2) the applicant has held at least 2 prefiling public meetings to receive public comment concerning the proposed carbon dioxide pipeline in each county where the pipeline is to be located, no earlier than 6 months prior to the filing of the application. Notice of the public meeting shall be published in a newspaper of general circulation within the affected county once a week for 3 consecutive weeks, beginning no earlier than one month prior to the first public meeting. Notice of each public meeting, including a description of the carbon dioxide pipeline, must be provided in writing to the clerk of each county where the project is to be located and to the chief clerk of the Commission. A representative of the Commission shall be invited to each prefiling public meeting. The applicant shall maintain a dedicated public website which provides details regarding the proposed route of the pipeline, plans for construction, status of the application, and the manner in which members of the public may offer their opinions regarding the pipeline;

(6.3) the applicant has directly contacted the owner of each parcel of land located within 2 miles of the proposed pipeline route by certified mail, or made good faith efforts if the owner of record cannot be located, advising them of the proposed pipeline route and of the date and time of each public meeting to be held in the county in which each landowner's property is located;

(6.4) the applicant has prepared and submitted a detailed emergency operations plan, which addresses at a minimum, emergency operations plan requirements adopted by the Illinois Emergency Management Agency and Office of Homeland Security under paragraph (4) of subsection (f) of Section 5 of the Illinois Emergency Management Agency Act. The submitted emergency operations plan shall also provide for post-emergency analysis and controller actions. In addition, the applicant shall demonstrate that it has communicated with the county emergency services and disaster agency (ESDA), or other relevant mandated ESDA, to coordinate its emergency operations plan for the pipeline with the county ESDA's, or other relevant mandated ESDA's, emergency operations plan;

(7) the applicant possesses the financial, managerial, legal, and technical qualifications necessary to construct and operate the proposed carbon dioxide pipeline; and

(8) the proposed pipeline is consistent with the public interest, public benefit, and legislative purpose as set forth in this Act. In addition to any other evidence the Commission may consider on this specific finding, the Commission shall consider the following:

(A) any evidence of the effect of the pipeline upon the economy, infrastructure, and public safety presented by local governmental units that will be affected by the proposed pipeline route;

(B) any evidence of the effect of the pipeline presented by property owners who will be affected by the proposed pipeline or facility, provided that the Commission need not hear evidence as to the actual valuation of property such as that as would be presented to and determined by the courts under the Eminent Domain Act;

(C) any evidence presented by the Department of Commerce and Economic Opportunity regarding the current and future local, State-wide, or regional economic effect, direct or indirect, of the proposed pipeline or facility including, but not limited to, ability of the State to attract economic growth, meet future energy requirements, and ensure compliance with environmental requirements and goals;

(D) any evidence addressing the factors described in items (1) through (8) of this subsection (b) or other relevant factors that is presented by any other State agency, unit of local government, the applicant, a party, or other entity that participates in the proceeding, including evidence presented by the Commission's staff; and

(E) any evidence presented by any State or federal governmental entity as to how the proposed pipeline will affect the security, stability, and reliability of public infrastructure.

In its written order, the Commission shall address all of the evidence presented, and if the order is contrary to any of the evidence, the Commission shall state the reasons for its determination with regard to that evidence.

(c) When an applicant files its application for a certificate of authority with the Commission, it shall provide notice to each unit of local government where the proposed pipeline will be located and include a map of the proposed pipeline route. The applicant shall also publish notice in a newspaper of general circulation in each county where the proposed pipeline is located.

(d) An application for a certificate of authority filed pursuant to this Section shall request either that the Commission review and approve a specific route for a carbon dioxide pipeline, or that the Commission review and approve a project route width that identifies the areas in which the pipeline would be located, with such width ranging from the minimum width required for a pipeline right-of-way up to 200 feet in width. A map of the route or route width shall be included in the application. The purpose for allowing the option of review and approval of a project route width is to provide increased flexibility during the construction process to accommodate specific landowner requests, avoid environmentally sensitive areas, or address special environmental permitting requirements.

(e) The Commission's rules shall ensure that notice of an application for a certificate of authority is provided within 30 days after filing to the landowners along a proposed project route, or to the potentially affected landowners within a proposed project route width, using the notification procedures set forth in the Commission's rules. If the Commission grants approval of a project route width as opposed to a specific project route, then the applicant must, as it finalizes the actual pipeline alignment within the project route width, file its final list of affected landowners with the Commission at least 14 days in advance of beginning construction on any tract within the project route width and also provide the Commission with at least 14 days' notice before filing a complaint for eminent domain in the circuit court with regard to any tract within the project route width.

(f) If an applicant has obtained all necessary federal licenses, permits, and authority necessary to construct and operate a carbon dioxide pipeline before it files an application pursuant to this Section, then the Commission shall make its determination on any application for a certificate of authority and issue its final order within 11 months after the date that the application is filed. The Commission's failure to act within this time period shall not be deemed an approval or denial of the application.

(g) A final order of the Commission granting a certificate of authority pursuant to this Act shall be conditioned upon the applicant obtaining all required permits or approvals from the Pipeline and Hazardous Materials Safety Administration of the U.S. Department of Transportation, U.S. Army Corps of Engineers, and Illinois Department of Agriculture, in addition to all other permits and approvals necessary for the construction and operation of the pipeline prior to the start of any construction. The final order must specifically prohibit the start of any construction until all such permits and approvals have been obtained. The Commission shall not issue any certificate of authority under this Act until (i) the Pipeline and Hazardous Materials Safety Administration has adopted final revisions to its pipeline safety rules intended to enhance the safe transportation of carbon dioxide by pipelines to accommodate an anticipated increase in the number of carbon dioxide pipelines and volume of carbon dioxide transported in the proposed rulemaking designated Regulatory Information Number 2137-AF60, and (ii) the Commission has verified that the submitted application complies with those finalized rules. If, after July 1, 2026, the Pipeline and Hazardous Materials Safety Administration has not adopted final revisions to its pipeline safety rules under the proposed rulemaking designated Regulatory Information Number 2137-AF60, the Commission may only approve a certificate of authority under this Section if it finds that the applicant has met all of the requirements of this Act, has already acquired all of its other necessary approvals, and is compliant with any requirements or conditions adopted by the Commission subsection (g-5).

(g-5) In granting a certificate under this Act, the Commission shall adopt such requirements or impose such conditions upon a certificate as in its opinion are necessary to preserve public safety, as long as such requirements are compatible with the minimum standards prescribed by the Pipeline and Hazardous Material Safety Administration.

(h) Within 6 months after the Commission's entry of an order approving either a specific route or a project route width under this Section, the owner or operator of the carbon dioxide pipeline that receives that order may file supplemental applications for minor route deviations outside the approved project route width, allowing for additions or changes to the approved route to address environmental concerns encountered during construction or to accommodate landowner requests. The supplemental application shall specifically detail the environmental concerns or landowner requests prompting the route changes, including the names of any landowners or entities involved. Notice of a supplemental application shall be provided to any State agency or unit of local government that appeared in the original proceeding and to any landowner affected by the proposed route deviation at the time that supplemental application is filed. The route deviations shall be approved by the Commission no sooner than 90 days after all interested parties receive notice of the supplemental application, unless a written objection is filed to the supplemental application within 45 days after such notice is received. If a written objection is filed, then the Commission shall issue an order either granting or denying the route deviation within 90 days after the filing of the objection. Hearings on any such supplemental application shall be limited to the reasonableness of the specific variance proposed, and the issues of the public interest and benefit of the project or fitness of the applicant shall be considered only to the extent that the route deviation has raised new concerns with regard to those issues.

(i) A certificate of authority to construct and operate a carbon dioxide pipeline issued by the Commission shall contain a grant of authority to construct and operate a carbon dioxide pipeline as requested in the application, subject to the laws of this State. A certificate of authority does not grant an owner or operator of a carbon dioxide pipeline the authority to take and acquire an easement in any property or interest in property for the construction, maintenance, or operation of a carbon dioxide pipeline through the exercise of eminent domain power. and include all of the following:

(1) a grant of authority to construct and operate a carbon dioxide pipeline as requested in the application, subject to the laws of this State; and

(2) the right to seek eminent domain authority from the Commission under Section 8-509 of the Public Utilities Act.

(j) All applications under this Act pending before the Commission on the effective date of this amendatory Act of the 103rd General Assembly shall be dismissed without prejudice.

(Source: P.A. 103-651, eff. 7-18-24.)