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Public Act 097-0534


 

Public Act 0534 97TH GENERAL ASSEMBLY



 


 
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.

Effective Date: 8/23/2011