Illinois General Assembly - -

(220 ILCS 75/1)

Sec. 1. Short title. This Act may be cited as the Carbon Dioxide Transportation and Sequestration Act.

(Source: P.A. 97-534, eff. 8-23-11.)

(220 ILCS 75/5)

Sec. 5. Legislative purpose. Pipeline transportation of carbon dioxide for sequestration and other carbon management purposes other than enhanced oil recovery 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 or other carbon management purposes other than enhanced oil recovery and thus is an essential component to compliance with required or voluntary plans to reduce carbon dioxide emissions. Carbon dioxide pipelines are critical to advance economic development, environmental protection, and energy security in the State.

(Source: P.A. 103-651, eff. 7-18-24.)

(220 ILCS 75/10)

Sec. 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 or other carbon management application. "Carbon dioxide pipeline" or "pipeline" does not include the portion of pipelines sold or used for enhanced oil recovery in this State.

"Commission" means the Illinois Commerce Commission.

"Legacy carbon dioxide pipeline" includes any carbon dioxide pipeline constructed before July 1, 2024 that is less than one mile in length, is located on property entirely owned by the pipeline operator, and is used to transport carbon dioxide to an injection well.

"New carbon dioxide pipeline" means any carbon dioxide pipeline constructed after July 1, 2024.

"Sequester" has the meaning ascribed to that term in Section 1-10 of the Illinois Power Agency Act. "Sequester" does not include the sale or use of carbon dioxide for enhanced oil recovery in Illinois.

"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.

(Source: P.A. 103-651, eff. 7-18-24.)

(220 ILCS 75/15)

Sec. 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.

(Source: P.A. 103-651, eff. 7-18-24.)

(220 ILCS 75/20)

Sec. 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. Nothing in this Act requires a legacy carbon dioxide pipeline to obtain 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 one or more

agreements with a source or sources that will result in the reduction of carbon dioxide emissions from that source or sources and the applicant has filed such agreement or agreements as part of its application;

(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;

(6.1) the applicant has applied for any and all other

federal permits necessary to construct and operate a carbon dioxide pipeline;

(6.2) the applicant has held at least 2 prefiling

public meetings to receive public comment concerning the proposed carbon dioxide pipeline in each county where the pipeline is to be located, no earlier than 6 months prior to the filing of the application. Notice of the public meeting shall be published in a newspaper of general circulation within the affected county once a week for 3 consecutive weeks, beginning no earlier than one month prior to the first public meeting. Notice of each public meeting, including a description of the carbon dioxide pipeline, must be provided in writing to the clerk of each county where the project is to be located and to the chief clerk of the Commission. A representative of the Commission shall be invited to each prefiling public meeting. The applicant shall maintain a dedicated public website which provides details regarding the proposed route of the pipeline, plans for construction, status of the application, and the manner in which members of the public may offer their opinions regarding the pipeline;

(6.3) the applicant has directly contacted the owner

of each parcel of land located within 2 miles of the proposed pipeline route by certified mail, or made good faith efforts if the owner of record cannot be located, advising them of the proposed pipeline route and of the date and time of each public meeting to be held in the county in which each landowner's property is located;

(6.4) the applicant has prepared and submitted a

detailed emergency operations plan, which addresses at a minimum, emergency operations plan requirements adopted by the Illinois Emergency Management Agency and Office of Homeland Security under paragraph (4) of subsection (f) of Section 5 of the Illinois Emergency Management Agency Act. The submitted emergency operations plan shall also provide for post-emergency analysis and controller actions. In addition, the applicant shall demonstrate that it has communicated with the county emergency services and disaster agency (ESDA), or other relevant mandated ESDA, to coordinate its emergency operations plan for the pipeline with the county ESDA's, or other relevant mandated ESDA's, emergency operations plan;

(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

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, unit of local government, 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 public infrastructure.

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 unit of 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) If an applicant has obtained all necessary federal licenses, permits, and authority necessary to construct and operate a carbon dioxide pipeline before it files an application pursuant to this Section, then the Commission shall make its determination on any application for a certificate of authority 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. The Commission shall not issue any certificate of authority under this Act until (i) the Pipeline and Hazardous Materials Safety Administration has adopted final revisions to its pipeline safety rules intended to enhance the safe transportation of carbon dioxide by pipelines to accommodate an anticipated increase in the number of carbon dioxide pipelines and volume of carbon dioxide transported in the proposed rulemaking designated Regulatory Information Number 2137-AF60, and (ii) the Commission has verified that the submitted application complies with those finalized rules. If, after July 1, 2026, the Pipeline and Hazardous Materials Safety Administration has not adopted final revisions to its pipeline safety rules under the proposed rulemaking designated Regulatory Information Number 2137-AF60, the Commission may only approve a certificate of authority under this Section if it finds that the applicant has met all of the requirements of this Act, has already acquired all of its other necessary approvals, and is compliant with any requirements or conditions adopted by the Commission subsection (g-5).

(g-5) In granting a certificate under this Act, the Commission shall adopt such requirements or impose such conditions upon a certificate as in its opinion are necessary to preserve public safety, as long as such requirements are compatible with the minimum standards prescribed by the Pipeline and Hazardous Material Safety Administration.

(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) the right to seek eminent domain authority from

the Commission under Section 8-509 of the Public Utilities Act.

(j) All applications under this Act pending before the Commission on the effective date of this amendatory Act of the 103rd General Assembly shall be dismissed without prejudice.

(Source: P.A. 103-651, eff. 7-18-24.)

(220 ILCS 75/22)

(This Section may contain text from a Public Act with a delayed effective date)

Sec. 22. Compensation for damages to the surface.

(a) An affected landowner is entitled to reasonable compensation from an applicant who has been granted a certificate of authority under this Act for damages resulting from access to the landowner's property for required activities taken to construct the pipeline, including, but not limited to, the following:

(1) compensation for damage to growing crops, trees,

shrubs, fences, roads, structures, improvements, personal property, and livestock thereon and compensation for the loss of the value of a commercial crop impacted by pipeline installation; the value of the crop shall be calculated based on local market price by:

(A) determining the average per acre yield for

the same crop on comparable adjacent acreage;

(B) determining the price received for the sale

of the same crop on comparable adjacent acreage;

(C) determining the acreage of the area impacted

by pipeline activities and applying the determined price; and

(D) making an initial determination of the value

of the crop, which shall be determined by the affected landowner and submitted to the applicant who has been granted a certificate of authority under this Act;

(2) compensation to return the surface estate,

including soil conservation practices, such as terraces, grassed waterways, and other conservation practices, to the condition of the surface prior to accessing the property;

(3) compensation for damage to the productive

capability of the soil resulting from compaction or rutting if the parties are incapable of reaching resolution for such issues under the mitigation agreement detailed in paragraph (6) of subsection (b) of Section 20. An applicant shall not access a property where excessively wet soil conditions would not allow normal farming operations due to increased risk of soil erosion, rutting, or compaction. The Department of Agriculture may temporarily halt construction or any other activities on a proposed pipeline upon a finding of an applicant's noncompliance with this paragraph. If there is a dispute between the applicant who has been granted a certificate of authority under this Act and the landowner regarding the value of the damage to the productive capability of the soil, the applicant who has been granted a certificate of authority under this Act and the landowner shall consult with a representative of the soil and water conservation district in the respective county where the parcel of property is located for recommendations to restore the productive capability of the soil; and

(4) compensation for damage to surface and subsurface

drainage, including, but not limited to:

(A) compensation in that the applicant who has

been granted a certificate of authority under this Act shall perform immediate and temporary repairs for damage that occurs to subsurface drainage tiles that have water actively flowing through them at the time of damage; and

(B) compensation such that the applicant who has

been granted a certificate of authority under this Act shall compensate the affected landowner to permanently restore drainage to the condition of the drainage prior to accessing the property.

(b) The compensation for damages required by subsection (a) shall be paid in any manner mutually agreed upon by the applicant who has been granted a certificate of authority under this Act and the affected landowners. Unless otherwise agreed, the applicant who has been granted a certificate of authority under this Act shall tender to the landowner payment by check or draft no later than 60 days after completing the required activities under the application if the occurrence or value of damages is not disputed. The landowner's remedy for unpaid or disputed compensation shall be an action for damages in any court of competent jurisdiction for the parcel of property or the greater part thereof on which the activities were conducted, and the landowner shall be entitled to recover reasonable damages and attorney's fees if the landowner prevails.

(c) If any landowner prevails in litigation seeking compensation for damages under this Section, the applicant who has been granted a certificate of authority under this Act shall be responsible for such reasonable attorney's fees and costs as the court may allow and a judgment may be entered therefor in favor of the plaintiff if the attorney's fees and costs are not paid as provided by the court.

(d) Nothing in this Section shall have any impact on an applicant's fulfillment of the requirement to enter into an agreement with the Department of Agriculture that governs the mitigation of agricultural impacts associated with the construction of the proposed pipeline as detailed in paragraph (6) of subsection (b) of Section 20. An applicant shall comply with the requirements of the agreement that governs the mitigation of agricultural impacts as detailed in paragraph (6) of subsection (b) of Section 20.

(Source: P.A. 104-390, eff. 1-1-26.)

(220 ILCS 75/25)

Sec. 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.

(Source: P.A. 97-534, eff. 8-23-11.)

(220 ILCS 75/30)

Sec. 30. Safety. Inasmuch as the regulation of the construction, maintenance, and operation of pipelines transporting carbon dioxide, whether interstate or intrastate, falls within the statutory and regulatory jurisdiction of the Pipeline and Hazardous Material Safety Administration of the federal Department of Transportation, each carbon dioxide pipeline owner shall construct, maintain, and operate all of its pipelines, related facilities, and equipment in this State in a manner that complies fully with all federal laws and regulations governing the construction, maintenance, and operation of pipelines transporting carbon dioxide, as from time to time amended, and which otherwise poses no undue risk to its employees or the public. This Section shall not be interpreted to act in derogation of any such federal laws or regulations.

(Source: P.A. 97-534, eff. 8-23-11; 97-906, eff. 8-7-12.)

(220 ILCS 75/35)

Sec. 35. Land surveys and land use studies. For the purpose of making land surveys and land use studies, any applicant that has been granted a certificate of authority under this Section may, 30 days after providing written notice to the landowner thereof by registered mail and after providing a second notice to the owner of record, as identified in the records of the relevant county tax assessor, by telephone or email or by registered mail if the landowner has not been notified by other means, at least 3 days, but not more than 15 days, prior to the stated date in the notice, identifying the date when land surveys and land use studies will first begin on the landowner's property and informing the landowner that the landowner or the landowner's agent may be present when the land surveys or land use studies occur, enter upon the property of any landowner who has refused permission for entrance upon that property, but subject to responsibility for all damages which may be inflicted thereby.

(Source: P.A. 103-651, eff. 7-18-24.)

(220 ILCS 75/40)

Sec. 40. Pipeline operator fees. Any person or entity that has been granted a certificate of authority authorizing the construction and operation of a carbon dioxide pipeline pursuant to this Section or any person or entity operating a legacy carbon dioxide pipeline shall be assessed an annual fee per pipeline system operated in the State, plus an additional fee per mile of carbon dioxide pipeline in length that is physically operated or proposed to be operated in the State.

The Commission may adopt any rules and procedures necessary to enforce and administer the provisions of this Act. The Commission may, by administrative rule, modify any rules or procedures or adjust any Commission fees necessary to regulate and enforce the provisions of this Act. The Commission shall adopt such rules in consultation with the Illinois Emergency Management Agency and Office of Homeland Security in order to establish the total amount necessary to cover the Commission's and Illinois Emergency Management Agency and Office of Homeland Security's administrative costs plus the amount necessary to fund the needs of emergency responders as determined by the Illinois Emergency Management Agency and Office of Homeland Security. The Commission rules shall include, but shall not be limited to, the following provisions:

(1) a provision requiring a portion of the fee to be

allocated to the Commission for purposes of assessing the permit application and regulating the operating pipeline;

(2) a provision requiring the balance of the fee to

be allocated and transferred to the Illinois Emergency Management Agency and Office of Homeland Security for compiling and maintaining emergency response plans and coordinating and funding training, exercises, and equipment of first responders along the pipeline route through agreements and grants to county emergency services and disaster agencies;

(3) a provision requiring the fee to be payable to

the Commission and due 30 days after the certificate of authority is granted by the Commission, and at the conclusion of each State fiscal year. The Commission shall transfer to the Illinois Emergency Management Agency and Office of Homeland Security's Emergency Planning and Training Fund its allocable share within 30 days following the end of each fiscal year to be utilized as indicated in paragraph (2);

(4) a provision requiring the fee to be assessed with

a flat fee per pipeline system, plus an additional fee assessed per each mile of a pipeline, based on the actual length of carbon dioxide pipeline that has been used to transport carbon dioxide in the State in the State fiscal year during which the fee is imposed;

(5) a provision requiring the fee structure to be

designed to collect the funds necessary for emergency responders in a manner that facilitates the safe and reliable development of new carbon dioxide pipelines within the State; and

(6) a provision requiring the fee to be adjusted with

inflation.

(Source: P.A. 103-651, eff. 7-18-24.)

(220 ILCS 75/99)

Sec. 99. Effective date. This Act takes effect upon becoming law.

(Source: P.A. 97-534, eff. 8-23-11.)