Full Text of SB1821 97th General Assembly
SB1821eng 97TH GENERAL ASSEMBLY |
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| 1 | | AN ACT concerning regulation.
| 2 | | Be it enacted by the People of the State of Illinois, | 3 | | represented in the General Assembly:
| 4 | | Section 1. Short title. This Act may be cited as the Carbon | 5 | | Dioxide Transportation and Sequestration Act. | 6 | | Section 5. Legislative purpose. Pipeline transportation of | 7 | | carbon dioxide for sequestration, enhanced oil recovery, and | 8 | | other purposes is declared to be a public use and service, in | 9 | | the public interest, and a benefit to the welfare of Illinois | 10 | | and the people of Illinois because pipeline transportation is | 11 | | necessary for sequestration, enhanced oil recovery, or other | 12 | | carbon management purposes and thus is an essential component | 13 | | to compliance with required or voluntary plans to reduce carbon | 14 | | dioxide emissions from "clean coal" facilities and other | 15 | | sources. Carbon dioxide pipelines are critical to the promotion | 16 | | and use of Illinois coal and also advance economic development, | 17 | | environmental 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 | 20 | | portion of a pipeline, including appurtenant facilities, | 21 | | property rights, and easements, that are used exclusively for | 22 | | the purpose of transporting carbon dioxide to a point of sale, |
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| 1 | | storage, enhanced oil recovery, or other carbon management | 2 | | application. | 3 | | "Clean coal facility" has the meaning ascribed to that term | 4 | | in Section 1-10 of the Illinois Power Agency Act. | 5 | | "Clean coal SNG facility" has the meaning ascribed to that | 6 | | term in Section 1-10 of the Illinois Power Agency Act. | 7 | | "Clean coal SNG brownfield facility" has the meaning | 8 | | ascribed to that term in Section 1-10 of the Illinois Power | 9 | | Agency Act. | 10 | | "Commission" means the Illinois Commerce Commission. | 11 | | "Sequester" has the meaning ascribed to that term in | 12 | | Section 1-10 of the Illinois Power Agency Act. | 13 | | "Transportation" means the physical movement of carbon | 14 | | dioxide by pipeline conducted for a person's own use or account | 15 | | or
the use or account of another person or persons. | 16 | | Section 15. Scope. This Act applies to the application | 17 | | process for the issuance of a certificate of authority by an | 18 | | owner or operator of a pipeline designed, constructed, and | 19 | | operated to transport and to sequester carbon dioxide produced | 20 | | by a clean coal facility, by a clean coal SNG facility, by a | 21 | | clean coal SNG brownfield facility, or by any other source that | 22 | | will result in the reduction of carbon dioxide emissions from | 23 | | that source. | 24 | | Section 20. Application. |
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| 1 | | (a) No person or entity may construct, operate, or repair a | 2 | | carbon dioxide pipeline unless the person or entity possesses a | 3 | | certificate of authority. | 4 | | (b) The Commission, after a hearing, shall grant an | 5 | | application for a certificate of authority authorizing the | 6 | | construction and operation of a carbon dioxide pipeline to the | 7 | | extent that it finds that the application was properly filed; | 8 | | the applicant is fit, willing, and able to construct and | 9 | | operate the pipeline in compliance with this Act and with | 10 | | Commission regulations and orders; and the proposed pipeline is | 11 | | consistent with the public interest, public benefit, and | 12 | | legislative purpose as set forth in this Act. Evidence | 13 | | encompassing any of the factors described in items (1) through | 14 | | (9) of this subsection (b) that is submitted by the applicant, | 15 | | any other party, or the Commission's staff shall also be | 16 | | considered by the Commission.
| 17 | | In its review of an application for a certificate of | 18 | | authority to construct and operate a proposed carbon dioxide | 19 | | pipeline and any alternate locations for that proposed pipeline | 20 | | or facility, the Commission shall consider, but not be limited | 21 | | to, 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; |
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| 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 |
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| 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 | 15 | | the evidence presented, and if the order is contrary to any of | 16 | | the evidence, the Commission shall state the reasons for its | 17 | | determination with regard to that evidence.
| 18 | | (c) When an applicant files its application for a | 19 | | certificate of authority with the Commission, it shall provide | 20 | | notice to each local government where the proposed pipeline | 21 | | will be located and include a map of the proposed pipeline | 22 | | route. The applicant shall also publish notice in a newspaper | 23 | | of general circulation in each county where the proposed | 24 | | pipeline is located. | 25 | | (d) An application for a certificate of authority filed | 26 | | pursuant to this Section may request either that the Commission |
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| 1 | | review and approve a specific route for a carbon dioxide | 2 | | pipeline, or that the Commission review and approve a project | 3 | | route width that identifies the areas in which the pipeline | 4 | | would be located, with such width ranging from the minimum | 5 | | width required for a pipeline right-of-way up to 200 feet in | 6 | | width. The purpose for allowing the option of review and | 7 | | approval of a project route width is to provide increased | 8 | | flexibility during the construction process to accommodate | 9 | | specific landowner requests, avoid environmentally sensitive | 10 | | areas, or address special environmental permitting | 11 | | requirements. | 12 | | (e) The Commission's rules shall ensure that notice of an | 13 | | application for a certificate of authority is provided within | 14 | | 30 days after filing to the landowners along a proposed project | 15 | | route, or to the potentially affected landowners within a | 16 | | proposed project route width, using the notification | 17 | | procedures set forth in the Commission's rules. If the | 18 | | Commission grants approval of a project route width as opposed | 19 | | to a specific project route, then the applicant must, as it | 20 | | finalizes the actual pipeline alignment within the project | 21 | | route width, file its final list of affected landowners with | 22 | | the Commission at least 14 days in advance of beginning | 23 | | construction on any tract within the project route width and | 24 | | also provide the Commission with at least 14 days' notice | 25 | | before filing a complaint for eminent domain in the circuit | 26 | | court with regard to any tract within the project route width. |
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| 1 | | | 2 | | (f) The Commission shall make its determination on any | 3 | | application for a certificate of authority filed pursuant to | 4 | | this Section and issue its final order within 11 months after | 5 | | the date that the application is filed. | 6 | | (g) Within 6 months after the Commission's entry of an | 7 | | order approving either a specific route or a project route | 8 | | width under this Section, the owner or operator of the carbon | 9 | | dioxide pipeline that receives that order may file supplemental | 10 | | applications for minor route deviations outside the approved | 11 | | project route width, allowing for additions or changes to the | 12 | | approved route to address environmental concerns encountered | 13 | | during construction or to accommodate landowner requests. | 14 | | Notice of a supplemental application shall be provided to any | 15 | | State agency that appeared in the original proceeding or | 16 | | immediately affected landowner at the time that supplemental | 17 | | application is filed. The route deviations shall be approved by | 18 | | the Commission within 45 days, unless a written objection is | 19 | | filed to the supplemental application within 20 days after the | 20 | | date the supplemental application is filed. If a written | 21 | | objection is filed, then the Commission shall issue an order | 22 | | either granting or denying the route deviation within 60 days | 23 | | after the filing of the objection. Hearings on any such | 24 | | supplemental application shall be limited to the | 25 | | reasonableness of the specific variance proposed, and the | 26 | | issues of the public interest and benefit of the project or |
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| 1 | | fitness of the applicant shall not be reopened in the | 2 | | supplemental proceeding. | 3 | | (h) The rules of the Commission may include additional | 4 | | options for expediting the issuance of certificates and | 5 | | approvals under this Section. If an applicant elects to use an | 6 | | option provided for in the rules, then the rules may provide | 7 | | that: (1) the applicant must request the use of the expedited | 8 | | process at the time of filing its application; (2) the | 9 | | Commission may engage experts and procure additional | 10 | | administrative resources that are reasonably necessary for | 11 | | implementing the expedited process; and (3) the applicant must | 12 | | bear any additional costs incurred by the Commission as a | 13 | | result of the applicant's use of the expedited process.
| 14 | | (i) A certificate of authority to construct and operate a | 15 | | carbon dioxide pipeline issued by the Commission shall contain | 16 | | and 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, |
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| 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 | 11 | | provision of this Act, any power granted pursuant to this Act | 12 | | to acquire an easement is subject to, and shall be exercised in | 13 | | accordance with, the Eminent Domain Act. | 14 | | Section 30. Safety. A carbon dioxide pipeline owner shall | 15 | | construct, maintain, and operate all of its pipelines, related | 16 | | facilities, and equipment in this State in a manner that poses | 17 | | no undue risk to its employees or the public. The Commission | 18 | | shall adopt federal safety regulations governing the | 19 | | construction, maintenance, and operations of carbon dioxide | 20 | | pipelines, related facilities, and equipment to ensure the | 21 | | safety of pipeline employees and the public. | 22 | | Section 99. Effective date. This Act takes effect upon | 23 | | becoming law. |
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