SB3343 96TH GENERAL ASSEMBLY

LRB096 19284 MJR 34675 b

96TH GENERAL ASSEMBLY
State of Illinois
2009 and 2010
SB3343

Introduced 2/10/2010, by Sen. James F. Clayborne, Jr.

SYNOPSIS AS INTRODUCED:

See Index

Amends the Public Utilities Act. Provides that the rules of the Illinois Commerce Commission may include specific options for expediting the issuance of those permits and licenses that are necessary for the construction of energy infrastructure, where such construction is subject to the Commission's jurisdiction. Provides that the rules may provide that in the event that an applicant elects to use an option provided for in the rules that (i) the applicant must request the use of the expedited process at the time of filing its application for a license or permit with the Commission; (ii) the Commission may engage the experts and procure those additional resources that are reasonably necessary for implementing the expedited process; and (iii) the applicant must bear any additional costs incurred by the Commission as a result of the applicant's use of the expedited process. Provides that a common carrier by pipeline that requests and receives a certificate of good standing that is related to the proposed construction of a pipeline or other facility under specified provisions may enter upon, take, or damage private property in the manner provided for by the law of eminent domain. Changes provisions that provide that in its determination of public convenience and necessity for a proposed pipeline or facility designed or intended to transport crude oil, gas, or ethanol and any alternate locations for such proposed pipeline or facility, the Commission shall consider, but not be limited to, specified factors. Amends the Eminent Domain Act to include provisions from the Public Utilities Act in provisions concerning the express grants of the power to acquire property by condemnation or eminent domain. Effective July 1, 2010.

A BILL FOR

AN ACT concerning utilities, which may be referred to as the Energy Infrastructure and Jobs Permitting Law.

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

Section 5. The Public Utilities Act is amended by changing Sections 8-509 and 15-401 and by adding Section 4-105 as follows:

(220 ILCS 5/4-105 new)

Sec. 4-105. Options for expedited permitting. The rules of the Commission may include specific options for expediting the issuance of those permits and licenses that are necessary for the construction of energy infrastructure, where such construction is subject to the Commission's jurisdiction. The rules may provide that in the event that an applicant elects to use an option provided for in the rules that (i) the applicant must request the use of the expedited process at the time of filing its application for a license or permit with the Commission; (ii) the Commission may engage the experts and procure those additional resources that are reasonably necessary for implementing the expedited process; and (iii) the applicant must bear any additional costs incurred by the Commission as a result of the applicant's use of the expedited process.

(220 ILCS 5/8-509) (from Ch. 111 2/3, par. 8-509)

Sec. 8-509. When necessary for the construction of any alterations, additions, extensions or improvements ordered or authorized under Section 8-406, 8-503, or 12-218, or 15-401 of this Act, any public utility may enter upon, take or damage private property in the manner provided for by the law of eminent domain.

This Section applies to the exercise of eminent domain powers by telephone companies or telecommunications carriers only when the facilities to be constructed are intended to be used in whole or in part for providing one or more intrastate telecommunications services classified as "noncompetitive" under Section 13-502 in a tariff filed by the condemnor. The exercise of eminent domain powers by telephone companies or telecommunications carriers in all other cases shall be governed solely by "An Act relating to the powers, duties and property of telephone companies", approved May 16, 1903, as now or hereafter amended.

(Source: P.A. 86-221.)

(220 ILCS 5/15-401)

Sec. 15-401. Licensing.

(a) No person shall operate as a common carrier by pipeline unless the person possesses a certificate in good standing authorizing it to operate as a common carrier by pipeline. No person shall begin or continue construction of a pipeline or other facility, other than the repair or replacement of an existing pipeline or facility, for use in operations as a common carrier by pipeline unless the person possesses a certificate in good standing. As provided in Section 8-509 of this Act, a common carrier by pipeline that requests and receives a certificate of good standing that is related to the proposed construction of a pipeline or other facility under this Section may enter upon, take, or damage private property in the manner provided for by the law of eminent domain.

(b) Requirements for issuance. The Commission, after a hearing, shall grant an application for a certificate authorizing operations as a common carrier by pipeline, in whole or in part, to the extent that it finds that the application was properly filed; a public need for the service exists; the applicant is fit, willing, and able to provide the service in compliance with this Act, Commission regulations, and orders; and the public convenience and necessity requires issuance of the certificate. Evidence encompassing any of the factors set forth in items (1) through (9) of this subsection (b) that is submitted by the applicant, any other party, or the Commission's staff shall also be considered by the Commission in determining whether a public need for the service exists under either current or expected conditions. The changes in this subsection (b) are intended to be confirmatory of existing law.

In its determination of public convenience and necessity for a proposed pipeline or facility designed or intended to transport crude oil, gas, or ethanol and any alternate locations for such proposed pipeline or facility, the Commission shall consider, but not be limited to, the following:

(1) any evidence presented by the Illinois Environmental Protection Agency regarding the environmental impact of the proposed pipeline or other facility;

(2) any evidence presented by the Illinois Department of Transportation regarding the impact of the proposed pipeline or facility on traffic safety, road construction, or other transportation issues;

(3) any evidence presented by the Department of Natural Resources regarding the impact of the proposed pipeline or facility on any conservation areas, forest preserves, wildlife preserves, wetlands, or any other natural resource;

(4) 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 or facility;

(5) 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, however 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;

(6) 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, property values, employment rates, and residential and business development; and

(7) any evidence addressing the factors in 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; .

(8) any evidence presented by a State agency or unit of State or local government as to the current and future national, State-wide, or regional economic effects of the proposed pipeline, direct or indirect, as they affect residents or businesses in Illinois, including, but not limited to, such impacts as the ability of manufacturers in Illinois to meet public demand for related services and products and to compete in the national and regional economies, improved access of suppliers to regional and national shipping grids, the ability of the State to access funds made available for energy infrastructure by the federal government, mitigation of foreseeable spikes in price affecting Illinois residents or businesses due to sudden changes in supply or transportation capacity, and the likelihood that the proposed construction will substantially encourage related investment in the State's energy infrastructure and the creation of energy related jobs; and

(9) any evidence presented by any State or federal governmental entity as to how the proposed pipeline or facility will affect the security, stability, and reliability of energy in the State or in the region.

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. The provisions of this amendatory Act of 1996 apply to any certificate granted or denied after the effective date of this amendatory Act of 1996.

(b-5) An application filed pursuant to this Section may request review of a project route width that identifies the areas in which the pipeline would be located, with the width ranging from the minimum width required for a pipeline right-of-way up to 500 feet in width, thus allowing increased flexibility to accommodate specific landowner requests, avoid environmentally sensitive areas, or address special environmental permitting requirements. The applicant must notify all potentially affected landowners within the defined project route width of the application using the notification procedures set forth in the Commission's rules for applications under this Section. Upon receiving approval of the project route width, the common carrier by pipeline must, as it finalizes the actual pipeline alignment within the route, 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.

(b-10) The Commission shall make its determination on any application filed pursuant to this Section and issue its final order within 11 months after the date that the application is filed unless all parties to the proceeding agree in writing to a period of greater than 11 months, and provided that any agreement to extend the 11-month period must be for a specified period of time, not exceeding 60 days. The parties may enter into more than one agreement to extend time. In the event the Commission fails to enter its order within the applicable 11-month period after the filing of the application, or upon the expiration of the last agreement to extend time, any party may file a complaint in the circuit court for an emergency order of mandamus to direct and compel the Commission to enter its order within 60 days after the expiration of the 11-month period or within 60 days after the expiration of the last agreement to extend time, and the court shall set a schedule to enable the Commission to complete the case and enter an order within the 60-day time frame specified in this subsection (b-10). Summons upon the complaint shall be returnable within 5 days. The complaint for an order of mandamus shall be brought in the circuit court in which the pipeline is situated or, if the subject matter of the hearing is situated in more than one circuit, then in any one of those circuits. Nothing in this subsection (b-10) shall preclude the Commission from establishing an expedited schedule for making its determination on an application filed pursuant to this Section if it finds that the public interest requires the setting of such an expedited schedule.

(b-15) 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 common carrier by pipeline that receives such 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. Notice of a supplemental application shall be provided to any State agency that appeared in the original proceeding or immediately affected landowner at the time such supplemental application is filed. The route deviations shall be approved by the Commission within 45 days unless a written objection is filed to the supplemental application within 20 days after the date such supplemental application is filed. Hearings on any such supplemental application shall be limited to the reasonableness of the specific variance proposed, and the issues of public need or public convenience or necessity for the project or fitness of the applicant shall not be reopened in the supplemental proceeding.

(c) Duties and obligations of common carriers by pipeline. Each common carrier by pipeline shall provide adequate service to the public at reasonable rates and without discrimination.

(Source: P.A. 94-793, eff. 5-19-06.)

Section 10. The Eminent Domain Act is amended by changing Section 15-5-25 as follows:

(735 ILCS 30/15-5-25)

Sec. 15-5-25. Eminent domain powers in ILCS Chapters 205 through 430. The following provisions of law may include express grants of the power to acquire property by condemnation or eminent domain:

(220 ILCS 5/8-509 and 15-401); Public Utilities Act; public utilities; for construction of certain improvements.

(220 ILCS 15/1); Gas Storage Act; corporations engaged in the distribution, transportation, or storage of natural gas or manufactured gas; for their operations.

(220 ILCS 15/2 and 15/6); Gas Storage Act; corporations engaged in the distribution, transportation, or storage of natural gas or manufactured gas; for use of an underground geological formation for gas storage.

(220 ILCS 30/13); Electric Supplier Act; electric cooperatives; for general purposes.

(220 ILCS 55/3); Telegraph Act; telegraph companies; for telegraph lines.

(220 ILCS 65/4); Telephone Company Act; telecommunications carriers; for telephone company purposes.

(225 ILCS 435/23); Ferries Act; ferry operators; for a landing, ferryhouse, or approach.

(225 ILCS 440/9); Highway Advertising Control Act of 1971; Department of Transportation; for removal of signs adjacent to highways.

(310 ILCS 5/6 and 5/38); State Housing Act; housing corporations; for general purposes.

(310 ILCS 10/8.3); Housing Authorities Act; housing authorities; for general purposes.

(310 ILCS 10/8.15); Housing Authorities Act; housing authorities; for implementation of conservation plans and demolition.

(310 ILCS 10/9); Housing Authorities Act; housing authorities; for general purposes.

(310 ILCS 20/5); Housing Development and Construction Act; housing authorities; for development or redevelopment.

(310 ILCS 35/2); House Relocation Act; political subdivisions and municipal corporations; for relocation of dwellings for highway construction.

(315 ILCS 5/14); Blighted Areas Redevelopment Act of 1947; land clearance commissions; for redevelopment projects.

(315 ILCS 10/5); Blighted Vacant Areas Development Act of 1949; State of Illinois; for housing development.

(315 ILCS 20/9 and 20/42); Neighborhood Redevelopment Corporation Law; neighborhood redevelopment corporations; for general purposes. (315 ILCS 25/4 and 25/6); Urban Community Conservation Act; municipal conservation boards; for conservation areas.

(315 ILCS 30/12); Urban Renewal Consolidation Act of 1961; municipal departments of urban renewal; for blighted area redevelopment projects.

(315 ILCS 30/20 and 30/22); Urban Renewal Consolidation Act of 1961; municipal departments of urban renewal; for implementing conservation areas.

(315 ILCS 30/24); Urban Renewal Consolidation Act of 1961; municipal departments of urban renewal; for general purposes.

(415 ILCS 95/6); Junkyard Act; Department of Transportation; for junkyards or scrap processing facilities.

(420 ILCS 35/1); Radioactive Waste Storage Act; Illinois Emergency Management Agency; for radioactive by-product and waste storage.

(Source: P.A. 94-1055, eff. 1-1-07.)

Section 99. Effective date. This Act takes effect July 1, 2010.