Rep. André M. Thapedi

Filed: 4/9/2013

 

 


 

 


 
09800HB2994ham001LRB098 06184 AMC 44036 a

1
AMENDMENT TO HOUSE BILL 2994

2    AMENDMENT NO. ______. Amend House Bill 2994 by replacing
3line 25 on page 558 through line 4 on page 566 with the
4following:
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.".