Full Text of SB1821 97th General Assembly
SB1821sam003 97TH GENERAL ASSEMBLY | Sen. John M. Sullivan Filed: 3/29/2011
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| 1 | | AMENDMENT TO SENATE BILL 1821
| 2 | | AMENDMENT NO. ______. Amend Senate Bill 1821, AS AMENDED, | 3 | | by replacing everything after the enacting clause with the | 4 | | following:
| 5 | | "Section 1. Short title. This Act may be cited as the | 6 | | Carbon Dioxide Transportation and Sequestration Act. | 7 | | Section 5. Legislative purpose. Pipeline transportation of | 8 | | carbon dioxide for sequestration, enhanced oil recovery, and | 9 | | other purposes is declared to be a public use and service, in | 10 | | the public interest, and a benefit to the welfare of Illinois | 11 | | and the people of Illinois because pipeline transportation is | 12 | | necessary for sequestration, enhanced oil recovery, or other | 13 | | carbon management purposes and thus is an essential component | 14 | | to compliance with required or voluntary plans to reduce carbon | 15 | | dioxide emissions from "clean coal" facilities and other | 16 | | sources. Carbon dioxide pipelines are critical to the promotion |
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| 1 | | and use of Illinois coal and also advance economic development, | 2 | | environmental protection, and energy security in the State. | 3 | | Section 10. Definitions. As used in this Act: | 4 | | "Carbon dioxide pipeline" or "pipeline" means the in-state | 5 | | portion of a pipeline, including appurtenant facilities, | 6 | | property rights, and easements, that are used exclusively for | 7 | | the purpose of transporting carbon dioxide to a point of sale, | 8 | | storage, enhanced oil recovery, or other carbon management | 9 | | application. | 10 | | "Clean coal facility" has the meaning ascribed to that term | 11 | | in Section 1-10 of the Illinois Power Agency Act. | 12 | | "Clean coal SNG facility" has the meaning ascribed to that | 13 | | term in Section 1-10 of the Illinois Power Agency Act. | 14 | | "Clean coal SNG brownfield facility" has the meaning | 15 | | ascribed to that term in Section 1-10 of the Illinois Power | 16 | | Agency Act. | 17 | | "Commission" means the Illinois Commerce Commission. | 18 | | "Sequester" has the meaning ascribed to that term in | 19 | | Section 1-10 of the Illinois Power Agency Act. | 20 | | "Transportation" means the physical movement of carbon | 21 | | dioxide by pipeline conducted for a person's own use or account | 22 | | or
the use or account of another person or persons. | 23 | | Section 15. Scope. This Act applies only to an owner or | 24 | | operator of a pipeline designed, constructed, and operated to |
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| 1 | | transport and to sequester carbon dioxide produced by a clean | 2 | | coal facility, by a clean coal SNG facility, by a clean coal | 3 | | SNG brownfield facility, or by any other source that will | 4 | | result in the reduction of carbon dioxide emissions from that | 5 | | source. Further, this Act applies only to a person or entity | 6 | | authorized to do business in Illinois who is authorized to | 7 | | transport carbon dioxide by pipeline and has obtained a | 8 | | certificate of authority from the Commission pursuant to this | 9 | | Act. | 10 | | Section 20. Application. | 11 | | (a) No person or entity may construct, operate, or repair a | 12 | | carbon dioxide pipeline unless the person or entity possesses a | 13 | | certificate in good standing. | 14 | | (b) The Commission, after a hearing, shall grant an | 15 | | application for a certificate authorizing the construction and | 16 | | operation of a carbon dioxide pipeline to the extent that it | 17 | | finds that the application was properly filed; the applicant is | 18 | | fit, willing, and able to construct and operate the pipeline in | 19 | | compliance with this Act and with Commission regulations and | 20 | | orders; and the proposed pipeline is consistent with the public | 21 | | interest, public benefit, and legislative purpose as set forth | 22 | | in this Act. Evidence encompassing any of the factors described | 23 | | in items (1) through (9) of this subsection (b) that is | 24 | | submitted by the applicant, any other party, or the | 25 | | Commission's staff shall also be considered by the Commission.
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| 1 | | In its review of an application for a certificate of | 2 | | authority to construct and operate a proposed carbon dioxide | 3 | | pipeline and any alternate locations for that proposed pipeline | 4 | | or facility, the Commission shall consider, but not be limited | 5 | | to, the following: | 6 | | (1) that the applicant has filed or will timely file | 7 | | with the Pipeline and Hazardous Materials Safety | 8 | | Administration of the U.S. Department of Transportation | 9 | | all forms required by that agency in advance of | 10 | | constructing a carbon dioxide pipeline; | 11 | | (2) that the applicant has filed or will timely file | 12 | | with the U.S. Army Corps of Engineers all applications for | 13 | | permits required by that agency in advance of constructing | 14 | | a carbon dioxide pipeline;
| 15 | | (3) that the applicant has entered into an agreement | 16 | | with the Illinois Department of Agriculture that governs | 17 | | the mitigation of agricultural impacts associated with the | 18 | | construction of the proposed pipeline; | 19 | | (4) any evidence regarding the applicant's financial, | 20 | | managerial, legal, and technical qualifications necessary | 21 | | to construct and operate the proposed carbon dioxide | 22 | | pipeline; | 23 | | (5) any evidence of the effect of the pipeline upon the | 24 | | economy, infrastructure, and public safety presented by | 25 | | local governmental units that will be affected by the | 26 | | proposed pipeline route; |
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| 1 | | (6) any evidence of the effect of the pipeline upon | 2 | | property values presented by property owners who will be | 3 | | affected by the proposed pipeline or facility, provided | 4 | | that the Commission need not hear evidence as to the actual | 5 | | valuation of property such as that as would be presented to | 6 | | and determined by the courts under the Eminent Domain Act; | 7 | | (7) any evidence presented by the Department of | 8 | | Commerce and Economic Opportunity regarding the current | 9 | | and future local, State-wide, or regional economic effect, | 10 | | direct or indirect, of the proposed pipeline or facility | 11 | | including, but not limited to, ability of the State to | 12 | | attract economic growth, meet future energy requirements, | 13 | | and ensure compliance with environmental requirements and | 14 | | goals; | 15 | | (8) any evidence addressing the factors described in | 16 | | items (1) through (9) of this subsection (b) or other | 17 | | relevant factors that is presented by any other State | 18 | | agency, the applicant, a party, or other entity that | 19 | | participates in the proceeding, including evidence | 20 | | presented by the Commission's staff; and | 21 | | (9) any evidence presented by any State or federal | 22 | | governmental entity as to how the proposed pipeline will | 23 | | affect the security, stability, and reliability of energy. | 24 | | In its written order, the Commission shall address all of | 25 | | the evidence presented, and if the order is contrary to any of | 26 | | the evidence, the Commission shall state the reasons for its |
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| 1 | | determination with regard to that evidence.
| 2 | | (c) When an applicant files its application with the | 3 | | Commission, it shall provide notice to each local government | 4 | | where the proposed pipeline will be located and include a map | 5 | | of the proposed pipeline route. The applicant shall also | 6 | | publish notice in a newspaper of general circulation in each | 7 | | county where the proposed pipeline is located. | 8 | | (d) An application filed pursuant to this Section may | 9 | | request either that the Commission review and approve a | 10 | | specific route for a carbon dioxide pipeline, or that the | 11 | | Commission review and approve a project route width that | 12 | | identifies the areas in which the pipeline would be located, | 13 | | with such width ranging from the minimum width required for a | 14 | | pipeline right-of-way up to 200 feet in width. The purpose for | 15 | | allowing the option of review and approval of a project route | 16 | | width is to provide increased flexibility during the | 17 | | construction process to accommodate specific landowner | 18 | | requests, avoid environmentally sensitive areas, or address | 19 | | special environmental permitting requirements. | 20 | | (e) An applicant under this Act may request the issuance of | 21 | | a certificate of authority from the Commission for the | 22 | | construction and operation of a carbon dioxide pipeline at the | 23 | | same time, and as part of the same application, as its request | 24 | | for a certificate of good standing. | 25 | | The Commission's rules shall ensure that notice of such a | 26 | | consolidated application is provided within 30 days after |
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| 1 | | filing to the landowners along a proposed project route, or to | 2 | | the potentially affected landowners within a proposed project | 3 | | route width, using the notification procedures set forth in the | 4 | | Commission's rules. If a consolidated application is | 5 | | submitted, then the requests shall be heard on a consolidated | 6 | | basis and a decision on all issues shall be entered within the | 7 | | time frames stated in subsection (f) of this Section. In such a | 8 | | consolidated proceeding, the Commission may consider evidence | 9 | | relating to the same factors identified in items (1) through | 10 | | (9) of subsection (b) of this Section. If the Commission grants | 11 | | approval of a project route width as opposed to a specific | 12 | | project route, then the applicant must, as it finalizes the | 13 | | actual pipeline alignment within the project route width, file | 14 | | its final list of affected landowners with the Commission at | 15 | | least 14 days in advance of beginning construction on any tract | 16 | | within the project route width and also provide the Commission | 17 | | with at least 14 days' notice before filing a complaint for | 18 | | eminent domain in the circuit court with regard to any tract | 19 | | within the project route width. | 20 | | (f) The Commission shall make its determination on any | 21 | | application filed pursuant to this Section and issue its final | 22 | | order within 11 months after the date that the application is | 23 | | filed. | 24 | | (g) Within 6 months after the Commission's entry of an | 25 | | order approving either a specific route or a project route | 26 | | width under this Section, the owner or operator of the carbon |
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| 1 | | dioxide pipeline that receives that order may file supplemental | 2 | | applications for minor route deviations outside the approved | 3 | | project route width, allowing for additions or changes to the | 4 | | approved route to address environmental concerns encountered | 5 | | during construction or to accommodate landowner requests. | 6 | | Notice of a supplemental application shall be provided to any | 7 | | State agency that appeared in the original proceeding or | 8 | | immediately affected landowner at the time that supplemental | 9 | | application is filed. The route deviations shall be approved by | 10 | | the Commission within 45 days, unless a written objection is | 11 | | filed to the supplemental application within 20 days after the | 12 | | date the supplemental application is filed. If a written | 13 | | objection is filed, then the Commission shall issue an order | 14 | | either granting or denying the route deviation within 60 days | 15 | | after the filing of the objection. Hearings on any such | 16 | | supplemental application shall be limited to the | 17 | | reasonableness of the specific variance proposed, and the | 18 | | issues of the public interest and benefit of the project or | 19 | | fitness of the applicant shall not be reopened in the | 20 | | supplemental proceeding. | 21 | | (h) The rules of the Commission may include additional | 22 | | options for expediting the issuance of certificates and | 23 | | approvals under this Section. If an applicant elects to use an | 24 | | option provided for in the rules, then the rules may provide | 25 | | that: (1) the applicant must request the use of the expedited | 26 | | process at the time of filing its application; (2) the |
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| 1 | | Commission may engage experts and procure additional | 2 | | administrative resources that are reasonably necessary for | 3 | | implementing the expedited process; and (3) the applicant must | 4 | | bear any additional costs incurred by the Commission as a | 5 | | result of the applicant's use of the expedited process.
| 6 | | (i) A certificate of authority to construct and operate a | 7 | | carbon dioxide pipeline issued by the Commission shall contain | 8 | | and include all of the following: | 9 | | (1) a grant of authority to construct and operate a | 10 | | carbon dioxide pipeline as requested in the application, | 11 | | subject to the laws of this State; and | 12 | | (2) a limited grant of authority to take and acquire an | 13 | | easement in any property or interest in property for the | 14 | | construction, maintenance, or operation of a carbon | 15 | | dioxide pipeline in the manner provided for the exercise of | 16 | | the power of eminent domain under the Eminent Domain Act. | 17 | | The limited grant of authority shall be restricted to, and | 18 | | exercised solely for, the purpose of siting, | 19 | | rights-of-way, and easements appurtenant, including | 20 | | construction and maintenance. The applicant shall not | 21 | | exercise this power until it has used reasonable and good | 22 | | faith efforts to acquire the property or easement thereto. | 23 | | The applicant may thereafter use this power when the | 24 | | applicant determines that the easement is necessary to | 25 | | avoid unreasonable delay or economic hardship to the | 26 | | progress of activities carried out pursuant to the |
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| 1 | | certificate of authority. | 2 | | Section 25. Procedures. Notwithstanding any other | 3 | | provision of this Act, any power granted pursuant to this Act | 4 | | to acquire an easement is subject to, and shall be exercised in | 5 | | accordance with, the Eminent Domain Act. | 6 | | Section 30. Safety. A carbon dioxide pipeline owner shall | 7 | | construct, maintain, and operate all of its pipelines, related | 8 | | facilities, and equipment in this State in a manner that poses | 9 | | no undue risk to its employees or the public. The Commission | 10 | | shall adopt federal safety regulations governing the | 11 | | construction, maintenance, and operations of carbon dioxide | 12 | | pipelines, related facilities, and equipment to ensure the | 13 | | safety of pipeline employees and the public. | 14 | | Section 99. Effective date. This Act takes effect upon | 15 | | becoming law.".
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