Full Text of HB3217 96th General Assembly
HB3217sam002 96TH GENERAL ASSEMBLY | Sen. John M. Sullivan Filed: 11/29/2010
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| 1 | | AMENDMENT TO HOUSE BILL 3217
| 2 | | AMENDMENT NO. ______. Amend House Bill 3217, AS AMENDED, by | 3 | | replacing everything after the enacting clause with the | 4 | | following:
| 5 | | "Section 5. The Clean Coal FutureGen for Illinois Act is | 6 | | amended by changing Sections 5, 10, 15, 20, 23, 25, 30, 50, and | 7 | | 998 as follows: | 8 | | (20 ILCS 1107/5) | 9 | | (Section scheduled to be repealed on December 31, 2010)
| 10 | | Sec. 5. Purpose. Recognizing that the FutureGen Project is | 11 | | a first-of-a-kind research project to permanently sequester | 12 | | underground captured CO2 carbon-dioxide emissions from : (1) a | 13 | | coal-fueled power plant that uses as its primary fuel source | 14 | | high volatile bituminous rank coal with greater than 1.7 pounds | 15 | | of sulfur per million btu content or (2) other approved and | 16 | | permitted captured CO2 sources in the State of Illinois , and |
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| 1 | | that such a project would have benefits to the economy and | 2 | | environment of Illinois, the purpose of this Act is to provide | 3 | | the FutureGen Alliance with adequate liability protection and | 4 | | permitting certainty to facilitate the siting of the FutureGen | 5 | | Project in the State of Illinois , to provide to the State of | 6 | | Illinois certain financial benefits from environmental | 7 | | attributes for the Project, and to help secure over $1 billion | 8 | | in federal funding for the Project .
| 9 | | (Source: P.A. 95-18, eff. 7-30-07.) | 10 | | (20 ILCS 1107/10) | 11 | | (Section scheduled to be repealed on December 31, 2010)
| 12 | | Sec. 10. Legislative findings. The General Assembly finds | 13 | | and determines that: | 14 | | (1) human-induced greenhouse gas emissions have been | 15 | | identified as contributing to global warming, the effects | 16 | | of which pose a threat to public health and safety and the | 17 | | economy of the State of Illinois; | 18 | | (2) in order to meet the energy needs of the State of | 19 | | Illinois, keep its economy strong and protect the | 20 | | environment while reducing its contribution to | 21 | | human-induced greenhouse gas emissions, the State of | 22 | | Illinois must be a leader in developing new low-carbon | 23 | | technologies; | 24 | | (3) carbon capture and storage is a low-carbon | 25 | | technology that involves capturing the captured CO2 carbon |
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| 1 | | dioxide from fossil fuel energy electric and hydrogen | 2 | | generating units and other industrial facilities and | 3 | | injecting it into secure geologic strata for permanent | 4 | | storage; | 5 | | (4) the FutureGen Project is a public-private | 6 | | partnership between the Federal Department of Energy and | 7 | | the FutureGen Alliance that proposes to use this new | 8 | | technology as part of a plan to transport and store | 9 | | captured CO2 from a coal-fueled power plant that uses as | 10 | | its primary fuel source high-volatile bituminous rank coal | 11 | | with greater than 1.7 pounds of sulfur per million btu | 12 | | content and other captured CO2 sources that are approved by | 13 | | the appropriate State of Illinois agency and permitted in | 14 | | the State of Illinois build and operate a near zero | 15 | | emission coal fueled power plant ; | 16 | | (5) the FutureGen Project will help ensure the | 17 | | long-term viability of Illinois Basin coal as a major | 18 | | energy source in the State of Illinois and throughout the | 19 | | nation and represents a significant step in the State of | 20 | | Illinois' efforts to become a self-sufficient, clean | 21 | | energy producer; | 22 | | (6) the FutureGen Project provides an opportunity for | 23 | | the State of Illinois to partner with the Federal | 24 | | Department of Energy and the FutureGen Alliance in the | 25 | | development of these innovative clean-coal technologies; | 26 | | (7) the FutureGen Project will make the State of |
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| 1 | | Illinois a center for developing and refining clean coal | 2 | | technology , hydrogen production and carbon capture and | 3 | | storage, and will result in the development of new | 4 | | technologies designed to improve the efficiency of the | 5 | | energy industry that will be replicated world wide; | 6 | | (8) the FutureGen Project is an important coal | 7 | | development and conversion project that will create jobs in | 8 | | the State of Illinois during the construction and | 9 | | operational phases, contribute to the overall economy of | 10 | | the State of Illinois and help reinvigorate the Illinois | 11 | | Basin coal industry; and | 12 | | (9) the FutureGen Project and the property necessary | 13 | | for the FutureGen Project serve a substantial public | 14 | | purpose as its advanced clean-coal coal gasification, | 15 | | electricity generation, hydrogen production, advanced | 16 | | emissions control and carbon capture and storage | 17 | | technologies will benefit the citizens of the State of | 18 | | Illinois.
| 19 | | (Source: P.A. 95-18, eff. 7-30-07.) | 20 | | (20 ILCS 1107/15) | 21 | | (Section scheduled to be repealed on December 31, 2010)
| 22 | | Sec. 15. Definitions. For the purposes of this Act: | 23 | | "Agency" means the Illinois Environmental Protection | 24 | | Agency. | 25 | | "Captured CO2" means CO2 and other trace chemical |
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| 1 | | constituents approved by the Agency for injection into the | 2 | | Mount Simon Formation. | 3 | | "Carbon capture and storage" means the process of | 4 | | collecting captured CO2 capturing CO2 and other chemical | 5 | | constituents from coal combustion by-products for the purpose | 6 | | of injecting and storing the captured CO2 gas for permanent | 7 | | storage. | 8 | | "Carbon dioxide" or "CO2" means a colorless, odorless gas | 9 | | in the form of one carbon and 2 oxygen atoms that is the | 10 | | principal greenhouse gas. | 11 | | "Department" means the Department of Commerce and Economic | 12 | | Opportunity. | 13 | | "Director" means the Director of Commerce and Economic | 14 | | Opportunity. | 15 | | "Federal Department" means the federal Department of | 16 | | Energy. | 17 | | "FutureGen Alliance" is a 501(c)(3) non-profit consortium | 18 | | of coal and energy producers created to benefit the public | 19 | | interest and the interest of science through the research, | 20 | | development, and demonstration of near zero-emission coal | 21 | | technology, with the cooperation of the Federal Department | 22 | | that, as of the effective date of this Act, includes American | 23 | | Electric Power, Anglo American plc, BHP Billiton, E. ON US, | 24 | | China Huaneng Group, CONSOL Energy, Foundation Coal, Kennecott | 25 | | Energy, Peabody Energy, PPL Corporation, Rio Tinto Energy | 26 | | American, Southern Company, and Xstrata Coal . |
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| 1 | | "FutureGen Project" means the public-private partnership | 2 | | between the Federal Department and the FutureGen Alliance that | 3 | | will control captured CO2 and will construct and operate a | 4 | | pipeline and storage field for captured CO2 coal-fueled power | 5 | | plant utilizing state-of-the-art clean-coal technology and | 6 | | carbon capture and storage. Two locations in Illinois, Tuscola | 7 | | and Mattoon, are under consideration for the FutureGen Project. | 8 | | These are the only locations eligible for benefits under this | 9 | | Act . | 10 | | "Mount Simon Formation" means the deep sandstone reservoir | 11 | | into which the sequestered CO2 gas is to be injected at a depth | 12 | | greater than 3,500 feet depths generally ranging between 5,500 | 13 | | and 8,500 feet below ground surface and that is bounded by the | 14 | | granitic basement below and the Eau Claire Shale above. | 15 | | "Operator" means the FutureGen Alliance and its member | 16 | | companies, including their parent companies, subsidiaries, | 17 | | affiliates, directors, officers, employees, and agents , or a | 18 | | not-for-profit successor-in-interest approved by the | 19 | | Department . | 20 | | "Post-injection" means after the captured CO2 gas has been | 21 | | successfully injected into the wellhead at the point at which | 22 | | the captured CO2 gas is transferred into the wellbore for | 23 | | carbon sequestration and storage into the Mount Simon | 24 | | Formation. | 25 | | "Pre-injection" means all activities and occurrences prior | 26 | | to successful delivery into the wellhead at the point at which |
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| 1 | | the captured CO2 gas is transferred into the wellbore for | 2 | | carbon sequestration and storage into the Mount Simon | 3 | | Formation, including but not limited to, the operation of the | 4 | | FutureGen Project. | 5 | | "Public liability" means any civil legal liability arising | 6 | | out of or resulting from the storage, escape, release, or | 7 | | migration of the post-injection sequestered CO2 gas that was | 8 | | injected by the Operator and for which title is transferred to | 9 | | the State pursuant to Section 20 of this Act during the | 10 | | operation of the FutureGen Project by the FutureGen Alliance . | 11 | | The term "public liability", however, does not include any | 12 | | legal liability arising out of or resulting from the | 13 | | construction, operation, or other pre-injection activity of | 14 | | the Operator or any other third party . | 15 | | "Public liability action" or "action" means a written | 16 | | demand, lawsuit, or claim from any third party received by the | 17 | | Operator seeking a remedy or alleging liability on behalf of | 18 | | Operator resulting from any public liability. | 19 | | "Sequestered CO2 gas " means the captured CO2 and other | 20 | | chemical constituents from the FutureGen Project operations | 21 | | that is are injected into the Mount Simon Formation by the | 22 | | Operator .
| 23 | | (Source: P.A. 95-18, eff. 7-30-07.) | 24 | | (20 ILCS 1107/20) | 25 | | (Section scheduled to be repealed on December 31, 2010)
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| 1 | | Sec. 20. Title to sequestered CO2 gas . If the FutureGen | 2 | | Alliance identifies a designated Project locates at either the | 3 | | Tuscola or Mattoon site in the State of Illinois suitable for | 4 | | injection of captured CO2 into the Mount Simon Formation , then | 5 | | the FutureGen Alliance agrees that the Operator shall transfer | 6 | | and convey and the State of Illinois shall accept and receive, | 7 | | with no payment due from the State of Illinois, all rights, | 8 | | title, and interest in and to and any liabilities associated | 9 | | with the sequestered CO2 gas , including any current or future | 10 | | environmental benefits, marketing claims, tradable credits, | 11 | | emissions allocations or offsets (voluntary or compliance | 12 | | based) associated therewith, upon such gas reaching the status | 13 | | of post-injection, which shall be verified by the Agency or | 14 | | other designated State of Illinois agency. The Operator or | 15 | | owner of the captured CO2 to be sequestered shall retain all | 16 | | rights, title, and interest in and to and any liabilities | 17 | | associated with the pre-injection captured CO2. In cooperation | 18 | | with and at the reasonable cost of the Operator, the | 19 | | sequestered gas. The Illinois State Geological Survey of the | 20 | | University of Illinois shall monitor, measure, and verify the | 21 | | permanent status of sequestered CO2 carbon dioxide and | 22 | | co-sequestered gases in which the State has acquired the right, | 23 | | title, and interest under this Section .
| 24 | | (Source: P.A. 95-18, eff. 7-30-07; 95-728, eff. 7-1-08 - See | 25 | | Sec. 999 .) |
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| 1 | | (20 ILCS 1107/23) | 2 | | (Section scheduled to be repealed on December 31, 2010)
| 3 | | Sec. 23. Sequestered CO2 gas . The State of Illinois may not | 4 | | intentionally remove sequestered CO2 gas unless the removal is | 5 | | for the purpose of research and development.
| 6 | | (Source: P.A. 95-18, eff. 7-30-07.) | 7 | | (20 ILCS 1107/25) | 8 | | (Section scheduled to be repealed on December 31, 2010)
| 9 | | Sec. 25. Insurance against qualified losses. | 10 | | (a) The Department shall procure an insurance policy from a | 11 | | private insurance carrier or carriers, if and to the extent | 12 | | that such a policy is available, that insures the Operator | 13 | | against any qualified loss stemming from a public liability | 14 | | action. The policy must be procured in accordance with the | 15 | | provisions of the Procurement Code. | 16 | | (b) Pursuant to Section 30 of this Act, the State shall | 17 | | indemnify the Operator against any qualified loss stemming from | 18 | | a public liability action to the extent that the qualified loss | 19 | | is not covered under an insurance policy under subsection (a) | 20 | | of this Section. | 21 | | (c) The Department shall pay any insurance premium, | 22 | | deductible, or liability under subsections (a) or (b) from | 23 | | appropriations by the General Assembly for that purpose. It is | 24 | | the intent of this Act that, to the extent practical, any | 25 | | unexpended balance of the proceeds from the sale of emission |
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| 1 | | reduction rights or tradable credits to which the State has | 2 | | title under Section 20 should be used for the purposes of this | 3 | | subsection (c). | 4 | | (d) If the FutureGen Alliance identifies a designated site | 5 | | in locates the FutureGen Project at either the Mattoon or | 6 | | Tuscola site in the State of Illinois suitable for injection of | 7 | | captured CO2 into the Mount Simon Formation , then the | 8 | | Department shall be authorized to contract with the FutureGen | 9 | | Alliance, under terms not inconsistent with this Act, in order | 10 | | to define the rights and obligations of the FutureGen Alliance | 11 | | and the Department, including but not limited to, the insurance | 12 | | and indemnification obligations under Sections 25 and 30 of | 13 | | this Act. | 14 | | (e) If federal indemnification covers all or a portion of | 15 | | the obligations assumed by the State under Section 25 of this | 16 | | Act, such State obligations shall be reduced in proportion to | 17 | | the federal indemnification and be considered subordinated to | 18 | | any federal indemnification. | 19 | | (g) For the purpose of this Section, "qualified loss" means | 20 | | a loss by the Operator stemming from a public liability action | 21 | | other than those losses arising out of or relating to: | 22 | | (1) the intentional or willful misconduct of the | 23 | | Operator in its operation of the FutureGen Project ; | 24 | | (2) the failure of the Operator to comply with any | 25 | | applicable law, rule, regulation, or other requirement | 26 | | established by the Federal Department, Agency, or State of |
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| 1 | | Illinois for the carbon capture and storage of the | 2 | | sequestered CO2 gas , including any limitations on the | 3 | | chemical composition of any sequestered CO2 gas ; or | 4 | | (3) any the pre-injection activities operation of the | 5 | | Operator FutureGen Project .
| 6 | | (Source: P.A. 95-18, eff. 7-30-07.) | 7 | | (20 ILCS 1107/30) | 8 | | (Section scheduled to be repealed on December 31, 2010)
| 9 | | Sec. 30. Indemnification. Notwithstanding any law to the | 10 | | contrary, the State of Illinois shall indemnify, hold harmless, | 11 | | defend, and release the Operator from and against any public | 12 | | liability action asserted against the Operator, subject to the | 13 | | following terms and conditions: | 14 | | (a) The obligation of the State of Illinois to indemnify | 15 | | the Operator does not extend to any public liability arising | 16 | | out of or relating to: | 17 | | (1) the intentional or willful misconduct of the | 18 | | Operator in its operation of the FutureGen Project ; | 19 | | (2) the failure of the Operator to comply with any | 20 | | applicable law, rule, regulation, or other requirement | 21 | | established by the Federal Department, Agency, or State of | 22 | | Illinois for the carbon capture and storage of the | 23 | | sequestered CO2 gas , including any limitations on the | 24 | | chemical composition of any sequestered CO2 gas ; | 25 | | (3) any the pre-injection activities operation of the |
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| 1 | | Operator FutureGen Project ; or | 2 | | (4) a qualified loss to the extent that it is paid | 3 | | under an insurance policy under subsection (a) of Section | 4 | | 25 of this Act. | 5 | | (b) The indemnification obligations of the State of | 6 | | Illinois assumed under Section 30 of this Act shall be reduced | 7 | | in proportion and be subordinated to any federal | 8 | | indemnification that covers all or a portion of the State's | 9 | | obligations.
| 10 | | (Source: P.A. 95-18, eff. 7-30-07.) | 11 | | (20 ILCS 1107/50) | 12 | | (Section scheduled to be repealed on December 31, 2010)
| 13 | | Sec. 50. Jurisdiction. The Court of Claims has jurisdiction | 14 | | concerning any public liability action arising under this Act | 15 | | or arising from the operation of the FutureGen Project, except | 16 | | that a public liability action may be brought in the circuit | 17 | | court if the cause of action is one of personal injury or | 18 | | wrongful death and the injury or death was proximately caused | 19 | | by the storage, escape, release, or
migration of the | 20 | | post-injection sequestered CO2 gas that was
injected during the | 21 | | operation of the FutureGen Project by the
FutureGen Alliance, | 22 | | and the circuit court is hereby granted jurisdiction over these | 23 | | matters. The jurisdiction over civil, administrative, or other | 24 | | legal processes is not, otherwise, affected by this Act.
| 25 | | (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 December 31, 2010)
| 3 | | Sec. 998. Repeal. This Act is repealed on December 31, 2015 | 4 | | 2010 unless the FutureGen Project has been located at a | 5 | | designated either the Mattoon or Tuscola site in Illinois.
| 6 | | (Source: P.A. 95-18, eff. 7-30-07.) | 7 | | (20 ILCS 1107/43 rep.) | 8 | | Section 10. The Clean Coal FutureGen for Illinois Act is | 9 | | amended by repealing Section 43.
| 10 | | Section 99. Effective date. This Act takes effect upon | 11 | | becoming law.".
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