Full Text of HB2994 98th General Assembly
HB2994ham001 98TH GENERAL ASSEMBLY | Rep. André M. Thapedi Filed: 4/9/2013
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| 1 | | AMENDMENT TO HOUSE BILL 2994
| 2 | | AMENDMENT NO. ______. Amend House Bill 2994 by replacing | 3 | | line 25 on page 558 through line 4 on page 566 with the | 4 | | following: | 5 | | "(h-5) Sequestration enforcement. | 6 | | (A) All contracts entered into under subsection (h) of | 7 | | this Section and all sourcing agreements under subsection | 8 | | (h-1) of this Section, regardless of duration, shall | 9 | | require the owner of any facility supplying SNG under the | 10 | | contract or sourcing agreement to provide certified | 11 | | documentation to the Commission each year, starting in the | 12 | | facility's first year of commercial operation, accurately | 13 | | reporting the quantity of carbon dioxide emissions from the | 14 | | facility that have been captured and sequestered and | 15 | | reporting any quantities of carbon dioxide released from | 16 | | the site or sites at which carbon dioxide emissions were | 17 | | sequestered in prior years, based on continuous monitoring | 18 | | of those sites. |
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| 1 | | (B) If, in any year, the owner of the clean coal SNG | 2 | | facility fails to demonstrate that the SNG facility | 3 | | captured and sequestered at least 90% of the total carbon | 4 | | dioxide emissions that the facility would otherwise emit or | 5 | | that sequestration of emissions from prior years has | 6 | | failed, resulting in the release of carbon dioxide into the | 7 | | atmosphere, then the owner of the clean coal SNG facility | 8 | | must pay a penalty of $20 per ton of excess carbon dioxide | 9 | | emissions not to exceed $40,000,000, in any given year | 10 | | which shall be deposited into the Energy Efficiency Trust | 11 | | Fund and distributed pursuant to subsection (b) of Section | 12 | | 6-6 of the Renewable Energy, Energy Efficiency, and Coal | 13 | | Resources Development Law of 1997. On or before the 5-year | 14 | | anniversary of the execution of the contract and every 5 | 15 | | years thereafter, an expert hired by the owner of the | 16 | | facility with the approval of the Attorney General shall | 17 | | conduct an analysis to determine the cost of sequestration | 18 | | of at least 90% of the total carbon dioxide emissions the | 19 | | plant would otherwise emit. If the analysis shows that the | 20 | | actual annual cost is greater than the penalty, then the | 21 | | penalty shall be increased to equal the actual cost. | 22 | | Provided, however, to the extent that the owner of the | 23 | | facility described in subsection (h) of this Section can | 24 | | demonstrate that the failure was as a result of acts of God | 25 | | (including fire, flood, earthquake, tornado, lightning, | 26 | | hurricane, or other natural disaster); any amendment, |
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| 1 | | modification, or abrogation of any applicable law or | 2 | | regulation that would prevent performance; war; invasion; | 3 | | act of foreign enemies; hostilities (regardless of whether | 4 | | war is declared); civil war; rebellion; revolution; | 5 | | insurrection; military or usurped power or confiscation; | 6 | | terrorist activities; civil disturbance; riots; | 7 | | nationalization; sabotage; blockage; or embargo, the owner | 8 | | of the facility described in subsection (h) of this Section | 9 | | shall not be subject to a penalty if and only if (i) it | 10 | | promptly provides notice of its failure to the Commission; | 11 | | (ii) as soon as practicable and consistent with any order | 12 | | or direction from the Commission, it submits to the | 13 | | Commission proposed modifications to its carbon capture | 14 | | and sequestration plan; and (iii) it carries out its | 15 | | proposed modifications in the manner and time directed by | 16 | | the Commission. | 17 | | If the Commission finds that the facility has not | 18 | | satisfied each of these requirements, then the facility | 19 | | shall be subject to the penalty. If the owner of the clean | 20 | | coal SNG facility captured and sequestered more than 90% of | 21 | | the total carbon dioxide emissions that the facility would | 22 | | otherwise emit, then the owner of the facility may credit | 23 | | such additional amounts to reduce the amount of any future | 24 | | penalty to be paid. The penalty resulting from the failure | 25 | | to capture and sequester at least the minimum amount of | 26 | | carbon dioxide shall not be passed on to a utility or its |
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| 1 | | customers. | 2 | | If the clean coal SNG facility fails to meet the | 3 | | requirements specified in this subsection (h-5), then the | 4 | | Attorney General, on behalf of the People of the State of | 5 | | Illinois, shall bring an action to enforce the obligations | 6 | | related to the facility set forth in this subsection (h-5), | 7 | | including any penalty payments owed, but not including the | 8 | | physical obligation to capture and sequester at least 90% | 9 | | of the total carbon dioxide emissions that the facility | 10 | | would otherwise emit. Such action may be filed in any | 11 | | circuit court in Illinois. By entering into a contract | 12 | | pursuant to subsection (h) of this Section, the clean coal | 13 | | SNG facility agrees to waive any objections to venue or to | 14 | | the jurisdiction of the court with regard to the Attorney | 15 | | General's action under this subsection (h-5). | 16 | | Compliance with the sequestration requirements and any | 17 | | penalty requirements specified in this subsection (h-5) | 18 | | for the clean coal SNG facility shall be assessed annually | 19 | | by the Commission, which may in its discretion retain an | 20 | | expert to facilitate its assessment. If any expert is | 21 | | retained by the Commission, then the clean coal SNG | 22 | | facility shall pay for the expert's reasonable fees, and | 23 | | such costs shall not be passed through to the utility or | 24 | | its customers. | 25 | | In addition, carbon dioxide emission credits received | 26 | | by the clean coal SNG facility in connection with |
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| 1 | | sequestration of carbon dioxide from the facility must be | 2 | | sold in a timely fashion with any revenue, less applicable | 3 | | fees and expenses and any expenses required to be paid by | 4 | | facility for carbon dioxide transportation or | 5 | | sequestration, deposited into the reconciliation account | 6 | | within 30 days after receipt of such funds by the owner of | 7 | | the clean coal SNG facility. | 8 | | The clean coal SNG facility is prohibited from | 9 | | transporting or sequestering carbon dioxide unless the | 10 | | owner of the carbon dioxide pipeline that transfers the | 11 | | carbon dioxide from the facility and the owner of the | 12 | | sequestration site where the carbon dioxide captured by the | 13 | | facility is stored has acquired all applicable permits | 14 | | under applicable State and federal laws, statutes, rules, | 15 | | or regulations prior to the transfer or sequestration of | 16 | | carbon dioxide. The responsibility for compliance with the | 17 | | sequestration requirements specified in this subsection | 18 | | (h-5) for the clean coal SNG facility shall reside solely | 19 | | with the clean coal SNG facility, regardless of whether the | 20 | | facility has contracted with another party to capture, | 21 | | transport, or sequester carbon dioxide. | 22 | | (C) If, in any year, the owner of a clean coal SNG | 23 | | brownfield facility fails to demonstrate that the clean | 24 | | coal SNG brownfield facility captured and sequestered at | 25 | | least 85% of the total carbon dioxide emissions that the | 26 | | facility would otherwise emit, then the owner of the clean |
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| 1 | | coal SNG brownfield facility must pay a penalty of $20 per | 2 | | ton of excess carbon emissions up to $20,000,000, which | 3 | | shall be deposited into the Energy Efficiency Trust Fund | 4 | | and distributed pursuant to subsection (b) of Section 6-6 | 5 | | of the Renewable Energy, Energy Efficiency, and Coal | 6 | | Resources Development Law of 1997. Provided, however, to | 7 | | the extent that the owner of the clean coal SNG brownfield | 8 | | facility can demonstrate that the failure was as a result | 9 | | of acts of God (including fire, flood, earthquake, tornado, | 10 | | lightning, hurricane, or other natural disaster); any | 11 | | amendment, modification, or abrogation of any applicable | 12 | | law or regulation that would prevent performance; war; | 13 | | invasion; act of foreign enemies; hostilities (regardless | 14 | | of whether war is declared); civil war; rebellion; | 15 | | revolution; insurrection; military or usurped power or | 16 | | confiscation; terrorist activities; civil disturbances; | 17 | | riots; nationalization; sabotage; blockage; or embargo, | 18 | | the owner of the clean coal SNG brownfield facility shall | 19 | | not be subject to a penalty if and only if (i) it promptly | 20 | | provides notice of its failure to the Commission; (ii) as | 21 | | soon as practicable and consistent with any order or | 22 | | direction from the Commission, it submits to the Commission | 23 | | proposed modifications to its carbon capture and | 24 | | sequestration plan; and (iii) it carries out its proposed | 25 | | modifications in the manner and time directed by the | 26 | | Commission. If the Commission finds that the facility has |
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| 1 | | not satisfied each of these requirements, then the facility | 2 | | shall be subject to the penalty. If the owner of a clean | 3 | | coal SNG brownfield facility demonstrates that the clean | 4 | | coal SNG brownfield facility captured and sequestered more | 5 | | than 85% of the total carbon emissions that the facility | 6 | | would otherwise emit, the owner of the clean coal SNG | 7 | | brownfield facility may credit such additional amounts to | 8 | | reduce the amount of any future penalty to be paid. The | 9 | | penalty resulting from the failure to capture and sequester | 10 | | at least the minimum amount of carbon dioxide shall not be | 11 | | passed on to a utility or its customers. | 12 | | In addition to any penalty for the clean coal SNG | 13 | | brownfield facility's failure to capture and sequester at | 14 | | least its minimum sequestration requirement, the Attorney | 15 | | General, on behalf of the People of the State of Illinois, | 16 | | shall bring an action for specific performance of this | 17 | | subsection (h-5). Such action may be filed in any circuit | 18 | | court in Illinois. By entering into a sourcing agreement | 19 | | pursuant to subsection (h-1) of this Section, the clean | 20 | | coal SNG brownfield facility agrees to waive any objections | 21 | | to venue or to the jurisdiction of the court with regard to | 22 | | the Attorney General's action for specific performance | 23 | | under this subsection (h-5). | 24 | | Compliance with the sequestration requirements and | 25 | | penalty requirements specified in this subsection (h-5) | 26 | | for the clean coal SNG brownfield facility shall be |
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| 1 | | assessed annually by the Commission, which may in its | 2 | | discretion retain an expert to facilitate its assessment. | 3 | | If an expert is retained by the Commission, then the clean | 4 | | coal SNG brownfield facility shall pay for the expert's | 5 | | reasonable fees, and such costs shall not be passed through | 6 | | to a utility or its customers. A SNG facility operating | 7 | | pursuant to this subsection (h-5) shall not forfeit its | 8 | | designation as a clean coal SNG facility or a clean coal | 9 | | SNG brownfield facility if the facility fails to fully | 10 | | comply with the applicable carbon sequestration | 11 | | sequestrian requirements in any given year, provided the | 12 | | requisite offsets are purchased or requisite penalties are | 13 | | paid. | 14 | | Responsibility for compliance with the sequestration | 15 | | requirements specified in this subsection (h-5) for the | 16 | | clean coal SNG brownfield facility shall reside solely with | 17 | | the clean coal SNG brownfield facility regardless of | 18 | | whether the facility has contracted with another party to | 19 | | capture, transport, or sequester carbon dioxide.".
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