Illinois General Assembly - Full Text of SB2514
Illinois General Assembly

Previous General Assemblies

Full Text of SB2514  102nd General Assembly




State of Illinois
2021 and 2022


Introduced 2/26/2021, by Sen. Chapin Rose


New Act
30 ILCS 105/5.935 new

    Creates the Carbon Dioxide Geologic Storage Act. Provides that the Act applies to carbon dioxide injections that commence on or after January 1, 2021. Provides that a storage operator may not operate a storage facility without a reservoir permit issued by the Department of Natural Resources. Provides that a permit shall be issued if the storage operator: pays a fee to the Department of $0.08 per ton of carbon dioxide estimated to be injected into a storage facility; and owns all of the pore space in a storage facility, or owns more than 50%, but less than 100% of the pore space within a storage facility and an application to the Department to amalgamate the remaining property interests has been granted. Provides that after carbon dioxide injections at a storage facility cease, the storage operator may apply for a certificate of completion. Provides requirements the Department shall find before issuing a certificate of completion. Provides that the Department may adopt rules and issue orders to enforce the Act. Limits home rule powers. Provides for ownership and conveyance of pore space, mineral interests, title to carbon dioxide and liability, enhanced recovery projects, and restraint of trade. Creates the Illinois Geologic Sequestration Special Fund. Makes a corresponding change in the State Finance Act.

LRB102 16590 LNS 21987 b






SB2514LRB102 16590 LNS 21987 b

1    AN ACT concerning property.
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4    Section 1. Short title. This Act may be cited as the Carbon
5Dioxide Geologic Storage Act.
6    Section 5. Statement of policy. It is in the public
7interest to promote the geologic storage of carbon dioxide.
8Doing so will help ensure the viability of State industries
9under a spectrum of potential environmental regulations and
10will promote economic development in this State.
11    To be practical and effective, geologic storage of carbon
12dioxide requires cooperative use of surface and subsurface
13property interests often across large areas. It is therefore
14in the public interest to employ procedures that promote, in a
15manner fair to all interests, the use of all pore space in a
16clearly defined reservoir to ensure comprehensive management
17of the reservoir and the efficient use of natural resources.
18It is important that rules governing the use and development
19of subsurface pore space be consistent with both established
20precedents and subsurface private property rights.
21    Section 10. Definitions. As used in this Act:
22    "Carbon dioxide injection well" means a well that is used



SB2514- 2 -LRB102 16590 LNS 21987 b

1to inject carbon dioxide into a reservoir for geologic
3    "Department" means the Department of Natural Resources.
4    "Geologic storage" means the underground storage of carbon
5dioxide in a reservoir.
6    "Mineral owner" means, as identified in the records of the
7recorder of deeds for each county containing some portion of
8the proposed reservoir, any owner of a whole or fractional
9interest in any or all minerals in real property above, below,
10or within the proposed reservoir that has been severed from
11the surface estate by grant, exception, reservation, lease, or
12other means.
13    "Pore space" means naturally created subsurface cavities
14or voids that can be used as storage space for carbon dioxide.
15    "Pore space owner" means the person, trust, corporation,
16or other entity who has title to the pore space.
17    "Reservoir permit" means a permit issued by the Department
18allowing a person to establish and operate a storage facility.
19    "Storage facility" means the area of review as delineated
20in the storage operator's federal UIC program Class VI permit.
21    "Storage operator" means a person holding a reservoir
22permit under this Act and holding or applying for a UIC permit
23for the injection of carbon dioxide.
24    "Surface owners" means, as identified in the records of
25the recorder of deeds for each county containing some portion
26of the proposed reservoir, any owner of a whole or undivided



SB2514- 3 -LRB102 16590 LNS 21987 b

1fee simple interest or other freehold interest, which may or
2may not include mineral rights, in the surface above the
3proposed reservoir, but does not include an owner of a
4right-of-way, easement, leasehold, or any other lesser estate.
5    "UIC permit" means an Underground Injection Control permit
6authorized under the federal Safe Drinking Water Act's
7Underground Injection Control (UIC) Program that allows a
8person to operate a carbon dioxide injection well.
9    Section 15. Applicability. This Act applies only to carbon
10dioxide injections that commence on or after January 1, 2021.
11    Section 20. Reservoir permit.
12    (a) A storage operator may not operate a storage facility
13in this State without a valid reservoir permit issued by the
14Department. A reservoir permit may be transferred or assigned
15from one storage operator to another. Each permit is valid for
16one year after issuance.
17    (b) The Department shall issue or renew a reservoir permit
18if the storage operator has paid the fee required by
19subsection (c) and has met the requirements of Section 30.
20    (c) The storage operator shall provide the Department an
21estimate of the amount of carbon dioxide to be injected into a
22storage facility for the period of the permit at the time of
23application for a reservoir permit. A storage operator shall
24pay to the Department a fee of $0.08 per ton of carbon dioxide



SB2514- 4 -LRB102 16590 LNS 21987 b

1estimated to be injected into a storage facility. Prior to any
2renewal, the storage operator shall pay a fee of $0.08 per ton
3for carbon dioxide injected into a storage facility beyond the
4amount contained in the storage operator's estimate for the
5previous year. If the amount of carbon dioxide injected into a
6storage facility is less than the amount estimated, the
7Department shall refund the storage operator any overpayment.
8    (d) The Department may require a storage operator to make
9records available to the Department relating to the amount of
10carbon dioxide injected into a storage facility to ensure
11compliance with the fee requirements of subsection (c).
12    (e) The fees collected in subsection (c) shall be
13deposited into the Illinois Geologic Sequestration Special
15    Section 25. Ownership and conveyance of pore space.
16    (a) Title to pore space is vested in the owner of the
17overlying surface estate.
18    (b) A conveyance of title to the surface estate conveys
19the pore space in all strata underlying the surface estate.
20    (c) Title to pore space may not be severed from the surface
22    (d) Grants of easement to use or leasing of pore space is
23not a severance prohibited by this Section.
24    (e) The grants of easement or leasing of pore space shall
25not confer any right to enter upon or otherwise use the surface



SB2514- 5 -LRB102 16590 LNS 21987 b

1of the land unless the grant of easement or lease expressly so
3    Section 30. Ownership requirements.
4    (a) No reservoir permit shall be issued unless the storage
5operator owns, or has obtained grants of easements or
6leaseholds for, all of the pore space in a storage facility.
7    (b) If a storage operator owns, or has obtained grants of
8easement or leaseholds for, more than 50% but less than 100% of
9the pore space within a proposed storage facility, the storage
10operator may apply to the Department to amalgamate the
11remaining property interests.
12    Section 35. Amalgamating property interests.
13    (a) If a storage operator has applied to the Department to
14amalgamate any remaining property interests in a storage
15facility, the Department shall:
16        (1) notify any and all nonconsenting property owners
17    who own property interests to be amalgamated;
18        (2) within 120 days, but no less than 60 days after the
19    filing of the application, the Department shall conduct a
20    hearing to determine the fair market value of each
21    property owner's pore space to be amalgamated. The storage
22    operator and each property owner has the right to present
23    evidence as to the value of the pore space, including, but
24    not limited to, the economic benefits to the storage



SB2514- 6 -LRB102 16590 LNS 21987 b

1    operator, and to be represented by an attorney; and
2        (3) after the hearing, issue an order determining the
3    fair market value of each nonconsenting owner's pore
4    space.
5    (b) Upon payment by the storage operator to the Department
6of the total fair market value of the pore space to be
7amalgamated, the storage operator shall be granted an easement
8by the Department upon the pore space. The Department shall
9record the easement with the appropriate county recorder of
10deeds. The Department shall remit funds received from the
11storage operator to each property owner consistent with the
12Department's determination of fair market value.
13    (c) Any easement granted under this Section shall not
14include the right to use the surface above a nonconsenting
15property owner's pore space.
16    (d) The Department has the authority to commit State-owned
17pore space to a storage facility.
18    Section 40. Mineral interests. A mineral owner may drill
19through or near a reservoir to explore for or extract minerals
20if the drilling, extraction, and related activities are
21conducted in cooperation with the storage operator and comply
22with Department requirements that preserve the storage
23facility's integrity.
24    Section 45. Title to carbon dioxide; liability. The



SB2514- 7 -LRB102 16590 LNS 21987 b

1storage operator has title to the carbon dioxide injected into
2and stored in a reservoir and holds title until the Department
3issues a certificate of completion. While the storage operator
4holds title, the storage operator is liable for any damage the
5carbon dioxide may cause, including damage caused by carbon
6dioxide that escapes from the storage facility. The pore space
7owner has no liability associated with the operation of a
8storage facility unless the storage operator is the pore space
10    Section 55. Project completion and title transfer.
11    (a) After carbon dioxide injections at a storage facility
12cease, the storage operator may apply for a certificate of
13completion. Before issuing a certificate of completion, the
14Department, in consultation with the issuer of the UIC permit,
15shall find that:
16        (1) the storage operator is in full compliance with
17    all laws governing the storage facility, including any
18    ongoing UIC permit requirements;
19        (2) the storage operator addressed all pending claims,
20    if any, regarding the storage facility's operation;
21        (3) all carbon dioxide injection wells are plugged,
22    equipment and facilities are removed, and reclamation work
23    is completed as required by the UIC permit issuer or the
24    Department;
25        (4) the carbon dioxide in the reservoir is stable,



SB2514- 8 -LRB102 16590 LNS 21987 b

1    which means that it is essentially stationary or, if it is
2    migrating or may migrate, any migration will be unlikely
3    to be outside of the storage facility; and
4        (5) all monitoring wells, equipment, and facilities to
5    be used in the post-closure period are in good condition
6    and retain mechanical integrity.
7    (b) If the Department does not complete the review of a
8certificate of completion application within 90 days after
9receipt, including the public notice and input deemed
10appropriate by the Department, then the certificate of
11completion shall be issued. If the Department does not find
12that the requirements in subsection (a) are met, then it may
13decline the application or require amendment to the
14application before granting the certificate of completion. If
15the Department requires amendment to the application, then the
16storage operator shall have 30 days to amend the application.
17Thereafter, the Department shall have 30 days to either grant
18or decline to grant the certificate of completion or the
19certificate of completion shall be issued.
20    (c) The Department may charge a fee to the storage
21operator for reviewing the certificate of completion
22application. The fee shall be in the amount set by Department
23rule. The amount shall be based on the Department's
24anticipated expenses that it shall incur in reviewing the
25certificate of completion application and shall not exceed



SB2514- 9 -LRB102 16590 LNS 21987 b

1    (d) Once a certificate of completion is issued, the
2following occurs:
3        (1) Title to the storage facility and to the stored
4    carbon dioxide transfers, without compensation, to the
5    State.
6        (2) Title acquired by the State includes all rights
7    and interests in, and all responsibilities associated
8    with, the stored carbon dioxide.
9        (3) The storage operator is released from all
10    regulatory requirements associated with the storage
11    facility.
12        (4) Monitoring and managing the storage facility is
13    the State's responsibility to be overseen by the
14    Department until the federal government assumes
15    responsibility for the long-term monitoring and management
16    of storage facilities.
17        (5) If the federal government has not assumed
18    responsibility for the long-term monitoring and management
19    of storage facilities, then the Illinois Geologic
20    Sequestration Special Fund shall be used for the purposes
21    of monitoring and managing the storage facility and any
22    other responsibility associated with the stored carbon
23    dioxide.
24    Section 60. Enhanced recovery projects. This Act does not
25apply to applications filed with the Department proposing to



SB2514- 10 -LRB102 16590 LNS 21987 b

1use carbon dioxide for an enhanced oil or gas recovery
2project. Such applications shall be processed pursuant the
3Illinois Oil and Gas Act.
4    Section 65. Department powers; home rule. The Department
5may adopt rules and issue orders to enforce this Act. The
6Department may authorize its employees, qualified by training
7and experience, to perform the powers and duties set forth in
8this Act. No agency of State government or political
9subdivision of the State may regulate geologic storage except
10as expressly authorized under this Act. This Section is a
11limitation under subsection (i) of Section 6 of Article VII of
12the Illinois Constitution on the concurrent exercise by home
13rule units of powers and functions exercised by the State.
14    Section 70. Restraint of trade. None of the rights and
15responsibilities pursuant to this Act shall be held or
16construed to violate any of the statutes of this State
17relating to trusts, monopolies, or contracts and combinations
18in the restraint of trade.
19    Section 75. Illinois Geologic Sequestration Special Fund.
20The Illinois Geologic Sequestration Special Fund is created as
21a special fund in the State treasury. The Fund shall consist of
22any money deposited into the Fund as provided in subsection
23(e) of Section 20. Money in the Fund shall be used for the



SB2514- 11 -LRB102 16590 LNS 21987 b

1administration of this Act and for no other purpose. All
2interest earned on money in the Fund shall be deposited into
3the Fund.
4    Section 97. Severability. The provisions of this Act are
5severable under Section 1.31 of the Statute on Statutes.
6    Section 905. The State Finance Act is amended by adding
7Section 5.935 as follows:
8    (30 ILCS 105/5.935 new)
9    Sec. 5.935. The Illinois Geologic Sequestration Special