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Rep. Thomas Holbrook
Filed: 3/1/2011
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1 | | AMENDMENT TO HOUSE BILL 1878
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2 | | AMENDMENT NO. ______. Amend House Bill 1878 by replacing |
3 | | everything after the enacting clause with the following:
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4 | | "Section 5. The Clean Coal FutureGen for Illinois Act is |
5 | | amended by changing Sections 15, 20, 25, 30, and 998 as |
6 | | follows: |
7 | | (20 ILCS 1107/15) |
8 | | (Section scheduled to be repealed on March 1, 2011)
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9 | | Sec. 15. Definitions. For the purposes of this Act: |
10 | | "Agency" means the Illinois Environmental Protection |
11 | | Agency. |
12 | | "Captured CO2" means CO2 and other trace chemical |
13 | | constituents approved by the Agency for injection into the |
14 | | Mount Simon Formation. |
15 | | "Carbon capture and storage" means the process of |
16 | | collecting captured CO2 from coal combustion by-products for |
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1 | | the purpose of injecting and storing the captured CO2 for |
2 | | permanent storage. |
3 | | "Carbon dioxide" or "CO2" means a colorless, odorless gas |
4 | | in the form of one carbon and 2 oxygen atoms that is the |
5 | | principal greenhouse gas. |
6 | | "Department" means the Department of Commerce and Economic |
7 | | Opportunity. |
8 | | "Director" means the Director of Commerce and Economic |
9 | | Opportunity. |
10 | | "Federal Department" means the federal Department of |
11 | | Energy. |
12 | | "FutureGen Alliance" is a 501(c)(3) non-profit consortium |
13 | | of coal and energy producers created to benefit the public |
14 | | interest and the interest of science through the research, |
15 | | development, and demonstration of near zero-emission coal |
16 | | technology, with the cooperation of the Federal Department. |
17 | | "FutureGen Project" means the public-private partnership |
18 | | between the Federal Department and the FutureGen Alliance that |
19 | | will control captured CO2 and will construct and operate a |
20 | | pipeline and storage field for captured CO2. |
21 | | "Mount Simon Formation" means the deep sandstone reservoir |
22 | | into which the sequestered CO2 is to be injected at a depth |
23 | | greater than 3,500 feet below ground surface and that is |
24 | | bounded by the granitic basement below and the Eau Claire Shale |
25 | | above. |
26 | | "Operator" means the FutureGen Alliance and its member |
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1 | | companies, including their parent companies, subsidiaries, |
2 | | affiliates, directors, officers, employees, and agents, or a |
3 | | not-for-profit successor-in-interest approved by the |
4 | | Department. |
5 | | "Operational phase" means the period of time during which |
6 | | the Operator injects and monitors CO2 into the Mount Simon |
7 | | Formation in accordance with its permit approved by the Agency |
8 | | for the FutureGen Project. |
9 | | "Post-injection" means after the captured CO2 has been |
10 | | successfully injected into the wellhead at the point at which |
11 | | the captured CO2 is transferred into the wellbore for carbon |
12 | | sequestration and storage into the Mount Simon Formation. |
13 | | "Pre-injection" means all activities and occurrences prior |
14 | | to successful delivery into the wellhead at the point at which |
15 | | the captured CO2 is transferred into the wellbore for carbon |
16 | | sequestration and storage into the Mount Simon Formation, |
17 | | including but not limited to, the operation of the FutureGen |
18 | | Project. |
19 | | "Public liability" means any civil legal liability arising |
20 | | out of or resulting from the storage, escape, release, or |
21 | | migration of the post-injection sequestered CO2 that was |
22 | | injected by the Operator and for which title is transferred to |
23 | | the State pursuant to Section 20 of this Act. The term "public |
24 | | liability", however, does not include any legal liability |
25 | | arising out of or resulting from the construction, operation, |
26 | | or other pre-injection activity of the Operator or any other |
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1 | | third party. |
2 | | "Public liability action" or "action" means a written |
3 | | demand, lawsuit, or claim from any third party received by the |
4 | | Operator seeking a remedy or alleging liability on behalf of |
5 | | Operator resulting from any public liability. |
6 | | "Sequestered CO2" means the captured CO2 from the FutureGen |
7 | | Project operations that is injected into the Mount Simon |
8 | | Formation by the Operator.
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9 | | (Source: P.A. 95-18, eff. 7-30-07; 96-1491, eff. 12-30-10.) |
10 | | (20 ILCS 1107/20) |
11 | | (Section scheduled to be repealed on March 1, 2011)
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12 | | Sec. 20. Title to sequestered CO2 gas . If the FutureGen |
13 | | Alliance selects as its location for CO2 storage a designated |
14 | | site or sites Project locates at either the Tuscola or Mattoon |
15 | | site in the State of Illinois suitable for injection of |
16 | | captured CO2 into the Mount Simon Formation , then the FutureGen |
17 | | Alliance agrees that the Operator shall transfer and convey and |
18 | | the State of Illinois shall accept and receive, with no payment |
19 | | due from the State of Illinois, all rights, title, and interest |
20 | | in and to and any liabilities associated with the sequestered |
21 | | gas, including any current or future environmental benefits, |
22 | | marketing claims, tradable credits, emissions allocations or |
23 | | offsets (voluntary or compliance based) associated therewith, |
24 | | upon such gas reaching the status of post-injection, which |
25 | | shall be verified by the Agency or other designated State of |
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1 | | Illinois agency. The Operator shall retain all rights, title, |
2 | | and interest in and to and any liabilities associated with the |
3 | | pre-injection CO2 sequestered gas . The Operator shall retain |
4 | | all rights, title, and interest, including any environmental |
5 | | benefits or credits, in and to and any liabilities associated |
6 | | with the sequestered CO2 during the operational phase of the |
7 | | FutureGen Project. Following the operational phase of the |
8 | | FutureGen Project and upon compliance with all applicable |
9 | | permits, the Operator shall transfer and convey and the State |
10 | | of Illinois shall accept and receive, with no payment due from |
11 | | the State of Illinois, all rights, title, and interest, |
12 | | including any environmental benefits or credits, in and to and |
13 | | any liabilities associated with the sequestered CO2. Illinois |
14 | | State Geological Survey of the University of Illinois shall |
15 | | monitor, measure, and verify the permanent status of |
16 | | sequestered carbon dioxide and co-sequestered gases in which |
17 | | the State has acquired the right, title, and interest under |
18 | | this Section.
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19 | | (Source: P.A. 95-18, eff. 7-30-07; 95-728, eff. 7-1-08 - See |
20 | | Sec. 999 .) |
21 | | (20 ILCS 1107/25) |
22 | | (Section scheduled to be repealed on March 1, 2011)
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23 | | Sec. 25. Insurance against qualified losses. |
24 | | (a) The Operator Department shall procure an insurance |
25 | | policy from a private insurance carrier or carriers, if and to |
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1 | | the extent that such a policy is available at a reasonable |
2 | | cost , that insures the Operator against any qualified loss |
3 | | stemming from a public liability action. The coverage limits |
4 | | for such an insurance policy shall be at least $15,000,000 |
5 | | policy must be procured in accordance with the provisions of |
6 | | the Procurement Code . |
7 | | (a-5) The Operator shall establish and fund a newly-created |
8 | | CO2 Storage Trust Fund. |
9 | | (1) The purpose of the CO2 Storage Trust Fund shall be |
10 | | to complement commercially-available insurance products |
11 | | and to support the Operator's ability to satisfy financial |
12 | | assurance obligations that may be required by law or the |
13 | | terms of the Operator's permit issued by the Agency. |
14 | | (2) The funds in the CO2 Storage Trust Fund may used to |
15 | | satisfy any qualified loss stemming from a public liability |
16 | | action to the extent that such loss is not otherwise |
17 | | covered by an insurance policy. The funds may also be used |
18 | | to pay reasonable administrative costs associated with |
19 | | managing and resolving claims associated with the CO2 |
20 | | Storage Trust Fund. The funds may also be used for well |
21 | | closure, post-injection monitoring, or other activities |
22 | | for which a law or permit requires financial assurance. |
23 | | (3) The CO2 Storage Trust Fund shall be funded in the |
24 | | following manner, toward a maximum amount of $50,000,000 |
25 | | per 100 million metric tons of CO2 storage site design |
26 | | capacity, unless the permit approved by the Agency requires |
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1 | | a higher maximum amount: |
2 | | (A) The CO2 Storage Trust Fund shall be funded with |
3 | | an initial payment of 20% of the total projected |
4 | | maximum amount of the fund as forecasted by the |
5 | | Operator, based on the total amount of sequestered CO2 |
6 | | projected to be stored during the operational phase of |
7 | | the FutureGen Project which may not exceed the |
8 | | permitted storage site design capacity, at least 30 |
9 | | days prior to the first day of regular CO2 injection |
10 | | operations are forecasted to begin into the Mount Simon |
11 | | Formation in accordance with its permit approved by the |
12 | | Agency. |
13 | | (B) Subsequent future payments to the CO2 Storage |
14 | | Trust Fund shall be made during the during the |
15 | | Operational Phase of the Project according to the |
16 | | following formula: |
17 | | For each million metric tons of sequestered CO2, the |
18 | | subsequent future payments to the CO2 Storage Trust Fund |
19 | | shall be determined by taking the difference between the |
20 | | trust fund maximum amount and the initial payment divided |
21 | | by the CO2 storage site capacity, measured in million |
22 | | metric tons, designated in the Operator's permit with the |
23 | | Agency. If 100 million metric tons was the total design |
24 | | capacity of the CO2 storage facility, then the subsequent |
25 | | annual future payments to the CO2 Storage Trust Fund would |
26 | | be $400,000 per million metric tons of CO2 injected. |
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1 | | (4) The Operator shall select, subject to the approval |
2 | | of the Agency, an independent third-party trustee to |
3 | | administer the CO2 Storage Trust Fund. |
4 | | (b) Pursuant to Section 30 of this Act, the State shall |
5 | | indemnify and hold harmless the Operator against any qualified |
6 | | loss stemming from a public liability action to the extent that |
7 | | the qualified loss is not covered under an insurance policy |
8 | | under subsection (a) of this Section and to the extent that the |
9 | | CO2 Storage Trust Fund lacks adequate funds to cover the loss . |
10 | | (c) (Blank). The Department shall pay any insurance |
11 | | premium, deductible, or liability under subsections (a) or (b) |
12 | | from appropriations by the General Assembly for that purpose. |
13 | | It is the intent of this Act that, to the extent practical, any |
14 | | unexpended balance of the proceeds from the sale of emission |
15 | | reduction rights or tradable credits to which the State has |
16 | | title under Section 20 should be used for the purposes of this |
17 | | subsection (c). |
18 | | (d) If the FutureGen Alliance identifies a designated site |
19 | | or sites in Illinois suitable for injection of captured CO2 |
20 | | into the Mount Simon Formation, locates the FutureGen Project |
21 | | at either the Mattoon or Tuscola site in the State of Illinois, |
22 | | then the Department shall be authorized to contract with the |
23 | | FutureGen Alliance, under terms not inconsistent with this Act, |
24 | | in order to define the rights and obligations of the FutureGen |
25 | | Alliance and the Department, including but not limited to, the |
26 | | insurance and indemnification obligations under Sections 25 |
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1 | | and 30 of this Act. |
2 | | (e) If federal indemnification covers all or a portion of |
3 | | the obligations assumed by the State under Section 25 of this |
4 | | Act, such State obligations shall be reduced in proportion to |
5 | | the federal indemnification and be considered subordinated to |
6 | | any federal indemnification. |
7 | | (g) For the purpose of this Section, "qualified loss" means |
8 | | a loss by the Operator stemming from a public liability action |
9 | | other than those losses arising out of or relating to: |
10 | | (1) the intentional or willful misconduct of the |
11 | | Operator in its operation of the FutureGen Project ; |
12 | | (2) the failure of the Operator to comply with any |
13 | | applicable law, rule, regulation, or other requirement |
14 | | established by the Federal Department, Agency, or State of |
15 | | Illinois for the carbon capture and storage of the |
16 | | sequestered CO2 gas , including any limitations on the |
17 | | chemical composition of any sequestered CO2 gas ; or |
18 | | (3) any the pre-injection activities operation of the |
19 | | Operator FutureGen Project .
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20 | | (Source: P.A. 95-18, eff. 7-30-07 .) |
21 | | (20 ILCS 1107/30) |
22 | | (Section scheduled to be repealed on March 1, 2011)
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23 | | Sec. 30. Indemnification. Notwithstanding any law to the |
24 | | contrary, subject to and consistent with the conditions |
25 | | provided in Section 25 of this Act, the State of Illinois shall |
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1 | | indemnify, hold harmless, defend, and release the Operator from |
2 | | and against any public liability action asserted against the |
3 | | Operator, subject to the following terms and conditions: |
4 | | (a) The obligation of the State of Illinois to indemnify |
5 | | the Operator does not extend to any public liability arising |
6 | | out of or relating to: |
7 | | (1) the intentional or willful misconduct of the |
8 | | Operator in its operation of the FutureGen Project ; |
9 | | (2) the failure of the Operator to materially comply |
10 | | with any applicable law, rule, regulation, or other |
11 | | requirement established by the Federal Department, Agency, |
12 | | or State of Illinois for the carbon capture and storage of |
13 | | the sequestered CO2 gas , including any limitations on the |
14 | | chemical composition of any sequestered CO2 gas ; |
15 | | (3) any the pre-injection activities of the Operator |
16 | | operation of the FutureGen Project ; or |
17 | | (4) a qualified loss to the extent that it is paid |
18 | | under an insurance policy under subsection (a) or from the |
19 | | CO2 Storage Trust Fund under subsection (b) of Section 25 |
20 | | of this Act. |
21 | | (b) The indemnification obligations of the State of |
22 | | Illinois assumed under Section 30 of this Act shall be reduced |
23 | | in proportion and be subordinated to any federal |
24 | | indemnification that covers all or a portion of the State's |
25 | | obligations.
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26 | | (Source: P.A. 95-18, eff. 7-30-07 .) |
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1 | | (20 ILCS 1107/998) |
2 | | (Section scheduled to be repealed on March 1, 2011)
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3 | | Sec. 998. Repeal. This Act is repealed on March 1, 2015 |
4 | | 2011 .
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5 | | (Source: P.A. 95-18, eff. 7-30-07; 96-1491, eff. 12-30-10.) |
6 | | (20 ILCS 1107/23 rep.) |
7 | | (20 ILCS 1107/50 rep.) |
8 | | Section 10. The Clean Coal FutureGen for Illinois Act is |
9 | | amended by repealing Sections 23 and 50.
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10 | | Section 99. Effective date. This Act takes effect upon |
11 | | becoming law.".
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