Public Act 097-0534
 
SB1821 EnrolledLRB097 08782 ASK 48912 b



    AN ACT concerning regulation. 

 
    Be it enacted by the People of the State of Illinois, 
represented in the General Assembly: 




 
    Section 1. Short title.  This Act may be cited as the Carbon 
Dioxide Transportation and Sequestration Act.
 
    Section 5. Legislative purpose.  Pipeline transportation of 
carbon dioxide for sequestration, enhanced oil recovery, and 
other purposes is declared to be a public use and service, in 
the public interest, and a benefit to the welfare of Illinois 
and the people of Illinois because pipeline transportation is 
necessary for sequestration, enhanced oil recovery, or other 
carbon management purposes and thus is an essential component 
to compliance with required or voluntary plans to reduce carbon 
dioxide emissions from "clean coal" facilities and other 
sources.  Carbon dioxide pipelines are critical to the promotion 
and use of Illinois coal  and also advance economic development, 
environmental protection, and energy security in the State.
 
    Section 10. Definitions.  As used in this Act: 
    "Carbon dioxide pipeline" or "pipeline" means the in-state 
portion of a pipeline, including appurtenant facilities, 
property rights, and easements, that are used exclusively for 
the purpose of transporting carbon dioxide to a point of sale, 
storage, enhanced oil recovery, or other carbon management 
application.
    "Clean coal facility" has the meaning ascribed to that term 
in Section 1-10 of the Illinois Power Agency Act.
    "Clean coal SNG facility" has the meaning ascribed to that 
term in Section 1-10 of the Illinois Power Agency Act.
    "Commission" means the Illinois Commerce Commission.
    "Sequester" has the meaning ascribed to that term in 
Section 1-10 of the Illinois Power Agency Act.
    "Transportation" means the physical movement of carbon 
dioxide by pipeline conducted for a person's own use or account 
or
the use or account of another person or persons.
 
    Section 15. Scope.  This Act applies to the application 
process for the issuance of a certificate of authority by an 
owner or operator of a pipeline designed, constructed, and 
operated to transport and to sequester carbon dioxide produced 
by a clean coal facility, by a clean coal SNG facility, or by 
any other source that will result in the reduction of carbon 
dioxide emissions from that source.
 
    Section 20. Application. 
    (a) No person or entity may construct, operate, or repair a 
carbon dioxide pipeline unless the person or entity possesses a 
certificate of authority.
    (b) The Commission, after a hearing, may grant an 
application for a certificate of authority authorizing the 
construction and operation of a carbon dioxide pipeline  if it 
makes a specific written finding as to each of the following:
        (1) the application was properly filed;
        (2) the applicant is fit, willing, and able to 
    construct and operate the pipeline in compliance with this 
    Act and with Commission regulations and orders of the 
    Commission or any applicable federal agencies;
        (3) the applicant has entered into an agreement with a 
    clean coal facility, a clean coal SNG facility, or any 
    other source that will result in the reduction of carbon 
    dioxide emissions from that source;
        (4) the applicant has filed
with the Pipeline and 
    Hazardous Materials Safety
Administration of the U.S. 
    Department of Transportation
all forms required by that 
    agency in advance of
constructing a carbon dioxide 
    pipeline;
        (5) the applicant has filed with the U.S. Army Corps of 
    Engineers all applications for
permits required by that 
    agency in advance of constructing
a carbon dioxide 
    pipeline;
        (6) the applicant has entered into an agreement
with 
    the Illinois Department of Agriculture that governs
the 
    mitigation of agricultural impacts associated with the

    construction of the proposed pipeline;
        (7) the applicant possesses the financial,
managerial, 
    legal, and technical qualifications necessary
to construct 
    and operate the proposed carbon dioxide
pipeline; and


        (8) the proposed pipeline is consistent with the public 
    interest, public benefit, and legislative purpose as set 
    forth in this Act. In addition to any other evidence the 
    Commission may consider on this specific finding, the 
    Commission shall consider the following:
            (A) any evidence of the effect of the pipeline upon 
        the economy, infrastructure, and public safety 
        presented by local governmental units that will be 
        affected by the proposed pipeline route;
            (B) any evidence of the effect of the pipeline upon 
        property values presented by property owners who will 
        be affected by the proposed pipeline or facility, 
        provided that the Commission need not hear evidence as 
        to the actual valuation of property such as that as 
        would be presented to and determined by the courts 
        under the Eminent Domain Act;
            (C) any evidence presented by the Department of 
        Commerce and Economic Opportunity regarding the 
        current and future local, State-wide, or regional 
        economic effect, direct or indirect, of the proposed 
        pipeline or facility including, but not limited to, 
        ability of the State to attract economic growth, meet 
        future energy requirements, and ensure compliance with 
        environmental requirements and goals;
            (D) any evidence addressing the factors described 
        in items (1) through (8) of this subsection (b) or 
        other relevant factors that is presented by any other 
        State agency, the applicant, a party, or other entity 
        that participates in the proceeding, including 
        evidence presented by the Commission's staff; and
            (E) any evidence presented by any State or federal 
        governmental entity as to how the proposed pipeline 
        will affect the security, stability, and reliability 
        of energy.
    In its written order, the Commission shall address all of 
the evidence presented, and if the order is contrary to any of 
the evidence, the Commission shall state the reasons for its 
determination with regard to that evidence.

    (c) When an applicant files its application for a 
certificate of authority with the Commission, it shall provide 
notice to each local government where the proposed pipeline 
will be located and include a map of the proposed pipeline 
route. The applicant shall also publish notice in a newspaper 
of general circulation in each county where the proposed 
pipeline is located.
    (d) An application for a certificate of authority filed 
pursuant to this Section shall request either that the 
Commission review and approve a specific route for a carbon 
dioxide pipeline, or that the Commission review and approve a 
project route width that identifies the areas in which the 
pipeline would be located, with such width ranging from the 
minimum width required for a pipeline right-of-way up to 200 
feet in width. A map of the route or route width shall be 
included in the application. The purpose for allowing the 
option of review and approval of a project route width is to 
provide increased flexibility during the construction process 
to accommodate specific landowner requests, avoid 
environmentally sensitive areas, or address special 
environmental permitting requirements.
    (e) The Commission's rules shall ensure that notice of an 
application for a certificate of authority is provided within 
30 days after filing to the landowners along a proposed project 
route, or to the potentially affected landowners within a 
proposed project route width, using the notification 
procedures set forth in the Commission's rules. If the 
Commission grants approval of a project route width as opposed 
to a specific project route, then the applicant must, as it 
finalizes the actual pipeline alignment within the project 
route width, file its final list of affected landowners with 
the Commission at least 14 days in advance of beginning 
construction on any tract within the project route width and 
also provide the Commission with at least 14 days' notice 
before filing a complaint for eminent domain in the circuit 
court with regard to any tract within the project route width.
    (f) The Commission shall make its determination on any 
application for a certificate of authority filed pursuant to 
this Section and issue its final order within 11 months after 
the date that the application is filed. The Commission's 
failure to act within this time period shall not be deemed an 
approval or denial of the application.
    (g) A final order of the Commission granting a certificate 
of authority pursuant to this Act shall be conditioned upon the 
applicant obtaining all required permits or approvals from the 
Pipeline and Hazardous Materials Safety Administration of the 
U.S. Department of Transportation, U.S. Army Corps of 
Engineers, and Illinois Department of Agriculture, in addition 
to all other permits and approvals necessary for the 
construction and operation of the pipeline prior to the start 
of any construction.  The final order must specifically prohibit 
the start of any construction until all such permits and 
approvals have been obtained. 
    (h) Within 6 months after the Commission's entry of an 
order approving either a specific route or a project route 
width under this Section, the owner or operator of the carbon 
dioxide pipeline that receives that order may file supplemental 
applications for minor route deviations outside the approved 
project route width, allowing for additions or changes to the 
approved route to address environmental concerns encountered 
during construction or to accommodate landowner requests. The 
supplemental application shall specifically detail the 
environmental concerns or landowner requests prompting the 
route changes, including the names of any landowners or 
entities involved. Notice of a supplemental application shall 
be provided to any State agency or unit of local government 
that appeared in the original proceeding and to any landowner 
affected by the proposed route deviation at the time that 
supplemental application is filed. The route deviations shall 
be approved by the Commission no sooner than 90 days after all 
interested parties receive notice of the supplemental 
application, unless a written objection is filed to the 
supplemental application within 45 days after such notice is 
received. If a written objection is filed, then the Commission 
shall issue an order either granting or denying the route 
deviation within 90 days after the filing of the objection. 
Hearings on any such supplemental application shall be limited 
to the reasonableness of the specific variance proposed, and 
the issues of the public interest and benefit of the project or 
fitness of the applicant shall be considered only to the extent 
that the route deviation has raised new concerns with regard to 
those issues.
    (i) A certificate of authority to construct and operate a 
carbon dioxide pipeline issued by the Commission shall contain 
and include all of the following:
        (1) a grant of authority to construct and operate a 
    carbon dioxide pipeline as requested in the application, 
    subject to the laws of this State; and
        (2) a limited grant of authority to take and acquire an 
    easement in any property or interest in property for the 
    construction, maintenance, or operation of a carbon 
    dioxide pipeline in the manner provided for the exercise of 
    the power of eminent domain under the Eminent Domain Act.  
    The limited grant of authority shall be restricted to, and 
    exercised solely for, the purpose of siting, 
    rights-of-way, and easements  appurtenant, including 
    construction and maintenance.  The applicant shall not 
    exercise this power until it has used reasonable and good 
    faith efforts to acquire the property or easement thereto. 
    The applicant may thereafter use this power when the 
    applicant determines that the easement is necessary to 
    avoid unreasonable delay or economic hardship to the 
    progress of activities carried out pursuant to the 
    certificate of authority.
 
    Section 25. Procedures. Notwithstanding any other 
provision of this Act, any power granted pursuant to this Act 
to acquire an easement is subject to, and shall be exercised in 
accordance with, the Eminent Domain Act.
 
    Section 30. Safety. A carbon dioxide pipeline owner shall 
construct, maintain, and operate all of its pipelines, related 
facilities, and equipment in this State in a manner that poses 
no undue risk to its employees or the public. The Commission 
shall not issue any certificates or permits allowing the 
construction of a carbon dioxide pipeline until it has adopted 
federal safety regulations governing the construction, 
maintenance, and operations of carbon dioxide pipelines, 
related facilities, and equipment to ensure the safety of 
pipeline employees and the public.
 
    Section 99. Effective date. This Act takes effect upon 
becoming law.