HB1703 EngrossedLRB097 10381 ASK 50596 b

1    AN ACT concerning regulation.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Public Utilities Act is amended by changing
5Section 15-401 as follows:
 
6    (220 ILCS 5/15-401)
7    Sec. 15-401. Licensing.
8    (a) No person shall operate as a common carrier by pipeline
9unless the person possesses a certificate in good standing
10authorizing it to operate as a common carrier by pipeline. No
11person shall begin or continue construction of a pipeline or
12other facility, other than the repair or replacement of an
13existing pipeline or facility, for use in operations as a
14common carrier by pipeline unless the person possesses a
15certificate in good standing.
16    (b) Requirements for issuance. The Commission, after a
17hearing, shall grant an application for a certificate
18authorizing operations as a common carrier by pipeline, in
19whole or in part, to the extent that it finds that the
20application was properly filed; a public need for the service
21exists; the applicant is fit, willing, and able to provide the
22service in compliance with this Act, Commission regulations,
23and orders; and the public convenience and necessity requires

 

 

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1issuance of the certificate. Evidence encompassing any of the
2factors described in items (1) through (9) of this subsection
3(b) that is submitted by the applicant, any other party, or the
4Commission's staff shall also be considered by the Commission
5in determining whether a public need for the service exists
6under either current or expected conditions. The changes in
7this subsection (b) are intended to be confirmatory of existing
8law.
9    In its determination of public convenience and necessity
10for a proposed pipeline or facility designed or intended to
11transport crude oil and any alternate locations for such
12proposed pipeline or facility, the Commission shall consider,
13but not be limited to, the following:
14        (1) any evidence presented by the Illinois
15    Environmental Protection Agency regarding the
16    environmental impact of the proposed pipeline or other
17    facility;
18        (2) any evidence presented by the Illinois Department
19    of Transportation regarding the impact of the proposed
20    pipeline or facility on traffic safety, road construction,
21    or other transportation issues;
22        (3) any evidence presented by the Department of Natural
23    Resources regarding the impact of the proposed pipeline or
24    facility on any conservation areas, forest preserves,
25    wildlife preserves, wetlands, or any other natural
26    resource;

 

 

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1        (4) any evidence of the effect of the pipeline upon the
2    economy, infrastructure, and public safety presented by
3    local governmental units that will be affected by the
4    proposed pipeline or facility;
5        (5) any evidence of the effect of the pipeline upon
6    property values presented by property owners who will be
7    affected by the proposed pipeline or facility, provided
8    that the Commission need not hear evidence as to the actual
9    valuation of property such as that as would be presented to
10    and determined by the courts under the Eminent Domain Act;
11        (6) any evidence presented by the Department of
12    Commerce and Economic Opportunity regarding the current
13    and future local, State-wide, or regional economic effect,
14    direct or indirect, of the proposed pipeline or facility
15    including, but not limited to, property values, employment
16    rates, and residential and business development; and
17        (7) any evidence addressing the factors described in
18    items (1) through (9) of this subsection (b) or other
19    relevant factors that is presented by any other State
20    agency, the applicant, a party, or other entity that
21    participates in the proceeding, including evidence
22    presented by the Commission's staff; .
23        (8) any evidence presented by a State agency or unit of
24    State or local government as to the current and future
25    national, State-wide, or regional economic effects of the
26    proposed pipeline, direct or indirect, as they affect

 

 

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1    residents or businesses in Illinois, including, but not
2    limited to, such impacts as the ability of manufacturers in
3    Illinois to meet public demand for related services and
4    products and to compete in the national and regional
5    economies, improved access of suppliers to regional and
6    national shipping grids, the ability of the State to access
7    funds made available for energy infrastructure by the
8    federal government, mitigation of foreseeable spikes in
9    price affecting Illinois residents or businesses due to
10    sudden changes in supply or transportation capacity, and
11    the likelihood that the proposed construction will
12    substantially encourage related investment in the State's
13    energy infrastructure and the creation of energy related
14    jobs; and
15        (9) any evidence presented by any State or federal
16    governmental entity as to how the proposed pipeline or
17    facility will affect the security, stability, and
18    reliability of energy in the State or in the region.
19    In its written order, the Commission shall address all of
20the evidence presented, and if the order is contrary to any of
21the evidence, the Commission shall state the reasons for its
22determination with regard to that evidence. The provisions of
23this amendatory Act of 1996 apply to any certificate granted or
24denied after the effective date of this amendatory Act of 1996.
25    (c) An application filed pursuant to this Section may
26request either that the Commission review and approve a

 

 

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1specific route for a pipeline, or that the Commission review
2and approve a project route width that identifies the areas in
3which the pipeline would be located, with such width ranging
4from the minimum width required for a pipeline right-of-way up
5to 500 feet in width. The purpose for allowing the option of
6review and approval of a project route width is to provide
7increased flexibility during the construction process to
8accommodate specific landowner requests, avoid environmentally
9sensitive areas, or address special environmental permitting
10requirements.
11    (d) A common carrier by pipeline may request any other
12approvals as may be needed from the Commission for completion
13of the pipeline under Article VIII or any other Article or
14Section of this Act at the same time, and as part of the same
15application, as its request for a certificate of good standing
16under this Section. The Commission's rules shall ensure that
17notice of such a consolidated application is provided within 30
18days after filing to the landowners along a proposed project
19route, or to the potentially affected landowners within a
20proposed project route width, using the notification
21procedures set forth in the Commission's rules. If a
22consolidated application is submitted, then the requests shall
23be heard on a consolidated basis and a decision on all issues
24shall be entered within the time frames stated in subsection
25(e) of this Section. In such a consolidated proceeding, the
26Commission may consider evidence relating to the same factors

 

 

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1identified in items (1) through (9) of subsection (b) of this
2Section in granting authority under Section 8-503 of this Act.
3If the Commission grants approval of a project route width as
4opposed to a specific project route, then the common carrier by
5pipeline must, as it finalizes the actual pipeline alignment
6within the project route width, file its final list of affected
7landowners with the Commission at least 14 days in advance of
8beginning construction on any tract within the project route
9width and also provide the Commission with at least 14 days
10notice before filing a complaint for eminent domain in the
11circuit court with regard to any tract within the project route
12width.
13    (e) The Commission shall make its determination on any
14application filed pursuant to this Section and issue its final
15order within one year after the date that the application is
16filed unless an extension is granted as provided in this
17subsection (e). The Commission may extend the one-year time
18period for issuing a final order on an application filed
19pursuant to this Section up to an additional 6 months if it
20finds, following the filing of initial testimony by the parties
21to the proceeding, that due to the number of affected
22landowners and other parties in the proceeding and the
23complexity of the contested issues before it, additional time
24is needed to ensure a complete review of the evidence. If an
25extension is granted, then the schedule for the proceeding
26shall not be further extended beyond this 6-month period, and

 

 

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1the Commission shall issue its final order within the 6-month
2extension period. The Commission shall also have the power to
3establish an expedited schedule for making its determination on
4an application filed pursuant to this Section in less than one
5year if it finds that the public interest requires the setting
6of such an expedited schedule.
7    (f) Within 6 months after the Commission's entry of an
8order approving either a specific route or a project route
9width under this Section, the common carrier by pipeline that
10receives such order may file supplemental applications for
11minor route deviations outside the approved project route
12width, allowing for additions or changes to the approved route
13to address environmental concerns encountered during
14construction or to accommodate landowner requests. Notice of a
15supplemental application shall be provided to any State agency
16that appeared in the original proceeding or immediately
17affected landowner at the time such supplemental application is
18filed. The route deviations shall be approved by the Commission
19within 45 days, unless a written objection is filed to the
20supplemental application within 20 days after the date such
21supplemental application is filed. Hearings on any such
22supplemental application shall be limited to the
23reasonableness of the specific variance proposed, and the
24issues of public need or public convenience or necessity for
25the project or fitness of the applicant shall not be reopened
26in the supplemental proceeding.

 

 

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1    (g) The rules of the Commission may include additional
2options for expediting the issuance of permits and certificates
3under this Section. Such rules may provide that, in the event
4that an applicant elects to use an option provided for in such
5rules; (1) the applicant must request the use of the expedited
6process at the time of filing its application for a license or
7permit with the Commission; (2) the Commission may engage
8experts and procure additional administrative resources that
9are reasonably necessary for implementing the expedited
10process; and (3) the applicant must bear any additional costs
11incurred by the Commission as a result of the applicant's use
12of such expedited process.
13    (h) (c) Duties and obligations of common carriers by
14pipeline. Each common carrier by pipeline shall provide
15adequate service to the public at reasonable rates and without
16discrimination.
17(Source: P.A. 94-793, eff. 5-19-06.)
 
18    Section 99. Effective date. This Act takes effect July 1,
192011.