Full Text of HB1878 97th General Assembly
HB1878ham001 97TH GENERAL ASSEMBLY | Rep. Thomas Holbrook Filed: 3/1/2011
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| 1 | | AMENDMENT TO HOUSE BILL 1878
| 2 | | AMENDMENT NO. ______. Amend House Bill 1878 by replacing | 3 | | everything after the enacting clause with the following:
| 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Sections 15, 20, 25, 30, and 998 as | 6 | | follows: | 7 | | (20 ILCS 1107/15) | 8 | | (Section scheduled to be repealed on March 1, 2011)
| 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.
| 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)
| 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.
| 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)
| 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 .
| 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)
| 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.
| 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)
| 3 | | Sec. 998. Repeal. This Act is repealed on March 1, 2015 | 4 | | 2011 .
| 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.
| 10 | | Section 99. Effective date. This Act takes effect upon | 11 | | becoming law.".
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