Illinois General Assembly - Full Text of SB1821
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Full Text of SB1821  97th General Assembly


Rep. Thomas Holbrook

Filed: 5/3/2011





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2    AMENDMENT NO. ______. Amend Senate Bill 1821 by replacing
3everything after the enacting clause with the following:
4    "Section 1. Short title. This Act may be cited as the
5Carbon Dioxide Transportation and Sequestration Act.
6    Section 5. Legislative purpose. Pipeline transportation of
7carbon dioxide for sequestration, enhanced oil recovery, and
8other purposes is declared to be a public use and service, in
9the public interest, and a benefit to the welfare of Illinois
10and the people of Illinois because pipeline transportation is
11necessary for sequestration, enhanced oil recovery, or other
12carbon management purposes and thus is an essential component
13to compliance with required or voluntary plans to reduce carbon
14dioxide emissions from "clean coal" facilities and other
15sources. Carbon dioxide pipelines are critical to the promotion
16and use of Illinois coal and also advance economic development,



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1environmental protection, and energy security in the State.
2    Section 10. Definitions. As used in this Act:
3    "Carbon dioxide pipeline" or "pipeline" means the in-state
4portion of a pipeline, including appurtenant facilities,
5property rights, and easements, that are used exclusively for
6the purpose of transporting carbon dioxide to a point of sale,
7storage, enhanced oil recovery, or other carbon management
9    "Clean coal facility" has the meaning ascribed to that term
10in Section 1-10 of the Illinois Power Agency Act.
11    "Clean coal SNG facility" has the meaning ascribed to that
12term in Section 1-10 of the Illinois Power Agency Act.
13    "Commission" means the Illinois Commerce Commission.
14    "Sequester" has the meaning ascribed to that term in
15Section 1-10 of the Illinois Power Agency Act.
16    "Transportation" means the physical movement of carbon
17dioxide by pipeline conducted for a person's own use or account
18or the use or account of another person or persons.
19    Section 15. Scope. This Act applies to the application
20process for the issuance of a certificate of authority by an
21owner or operator of a pipeline designed, constructed, and
22operated to transport and to sequester carbon dioxide produced
23by a clean coal facility, by a clean coal SNG facility, or by
24any other source that will result in the reduction of carbon



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1dioxide emissions from that source.
2    Section 20. Application.
3    (a) No person or entity may construct, operate, or repair a
4carbon dioxide pipeline unless the person or entity possesses a
5certificate of authority.
6    (b) The Commission, after a hearing, may grant an
7application for a certificate of authority authorizing the
8construction and operation of a carbon dioxide pipeline if it
9makes a specific written finding as to each of the following:
10        (1) the application was properly filed;
11        (2) the applicant is fit, willing, and able to
12    construct and operate the pipeline in compliance with this
13    Act and with Commission regulations and orders of the
14    Commission or any applicable federal agencies;
15        (3) the applicant has entered into an agreement with a
16    clean coal facility, a clean coal SNG facility, or any
17    other source that will result in the reduction of carbon
18    dioxide emissions from that source;
19        (4) the applicant has filed with the Pipeline and
20    Hazardous Materials Safety Administration of the U.S.
21    Department of Transportation all forms required by that
22    agency in advance of constructing a carbon dioxide
23    pipeline;
24        (5) the applicant has filed with the U.S. Army Corps of
25    Engineers all applications for permits required by that



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1    agency in advance of constructing a carbon dioxide
2    pipeline;
3        (6) the applicant has entered into an agreement with
4    the Illinois Department of Agriculture that governs the
5    mitigation of agricultural impacts associated with the
6    construction of the proposed pipeline;
7        (7) the applicant possesses the financial, managerial,
8    legal, and technical qualifications necessary to construct
9    and operate the proposed carbon dioxide pipeline; and
10        (8) the proposed pipeline is consistent with the public
11    interest, public benefit, and legislative purpose as set
12    forth in this Act. In addition to any other evidence the
13    Commission may consider on this specific finding, the
14    Commission shall consider the following:
15            (A) any evidence of the effect of the pipeline upon
16        the economy, infrastructure, and public safety
17        presented by local governmental units that will be
18        affected by the proposed pipeline route;
19            (B) any evidence of the effect of the pipeline upon
20        property values presented by property owners who will
21        be affected by the proposed pipeline or facility,
22        provided that the Commission need not hear evidence as
23        to the actual valuation of property such as that as
24        would be presented to and determined by the courts
25        under the Eminent Domain Act;
26            (C) any evidence presented by the Department of



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1        Commerce and Economic Opportunity regarding the
2        current and future local, State-wide, or regional
3        economic effect, direct or indirect, of the proposed
4        pipeline or facility including, but not limited to,
5        ability of the State to attract economic growth, meet
6        future energy requirements, and ensure compliance with
7        environmental requirements and goals;
8            (D) any evidence addressing the factors described
9        in items (1) through (8) of this subsection (b) or
10        other relevant factors that is presented by any other
11        State agency, the applicant, a party, or other entity
12        that participates in the proceeding, including
13        evidence presented by the Commission's staff; and
14            (E) any evidence presented by any State or federal
15        governmental entity as to how the proposed pipeline
16        will affect the security, stability, and reliability
17        of energy.
18    In its written order, the Commission shall address all of
19the evidence presented, and if the order is contrary to any of
20the evidence, the Commission shall state the reasons for its
21determination with regard to that evidence.
22    (c) When an applicant files its application for a
23certificate of authority with the Commission, it shall provide
24notice to each local government where the proposed pipeline
25will be located and include a map of the proposed pipeline
26route. The applicant shall also publish notice in a newspaper



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1of general circulation in each county where the proposed
2pipeline is located.
3    (d) An application for a certificate of authority filed
4pursuant to this Section shall request either that the
5Commission review and approve a specific route for a carbon
6dioxide pipeline, or that the Commission review and approve a
7project route width that identifies the areas in which the
8pipeline would be located, with such width ranging from the
9minimum width required for a pipeline right-of-way up to 200
10feet in width. A map of the route or route width shall be
11included in the application. The purpose for allowing the
12option of review and approval of a project route width is to
13provide increased flexibility during the construction process
14to accommodate specific landowner requests, avoid
15environmentally sensitive areas, or address special
16environmental permitting requirements.
17    (e) The Commission's rules shall ensure that notice of an
18application for a certificate of authority is provided within
1930 days after filing to the landowners along a proposed project
20route, or to the potentially affected landowners within a
21proposed project route width, using the notification
22procedures set forth in the Commission's rules. If the
23Commission grants approval of a project route width as opposed
24to a specific project route, then the applicant must, as it
25finalizes the actual pipeline alignment within the project
26route width, file its final list of affected landowners with



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1the Commission at least 14 days in advance of beginning
2construction on any tract within the project route width and
3also provide the Commission with at least 14 days' notice
4before filing a complaint for eminent domain in the circuit
5court with regard to any tract within the project route width.
6    (f) The Commission shall make its determination on any
7application for a certificate of authority filed pursuant to
8this Section and issue its final order within 11 months after
9the date that the application is filed. The Commission's
10failure to act within this time period shall be deemed a denial
11of the application.
12    (g) The Commission shall not issue its final order until
13the applicant is in receipt of valid permits from the Pipeline
14and Hazardous Materials Safety Administration of the U.S.
15Department of Transportation, U.S. Army Corps of Engineers, and
16Illinois Department of Agriculture, in addition to any other
17necessary permits for construction.
18    (h) Within 6 months after the Commission's entry of an
19order approving either a specific route or a project route
20width under this Section, the owner or operator of the carbon
21dioxide pipeline that receives that order may file supplemental
22applications for minor route deviations outside the approved
23project route width, allowing for additions or changes to the
24approved route to address environmental concerns encountered
25during construction or to accommodate landowner requests. The
26supplemental application shall specifically detail the



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1environmental concerns or landowner requests prompting the
2route changes, including the names of any landowners or
3entities involved. Notice of a supplemental application shall
4be provided to any State agency or unit of local government
5that appeared in the original proceeding and to any landowner
6affected by the proposed route deviation at the time that
7supplemental application is filed. The route deviations shall
8be approved by the Commission no sooner than 90 days after all
9interested parties receive notice of the supplemental
10application, unless a written objection is filed to the
11supplemental application within 45 days after such notice is
12received. If a written objection is filed, then the Commission
13shall issue an order either granting or denying the route
14deviation within 90 days after the filing of the objection.
15Hearings on any such supplemental application shall be limited
16to the reasonableness of the specific variance proposed, and
17the issues of the public interest and benefit of the project or
18fitness of the applicant shall be considered only to the extent
19that the route deviation has raised new concerns with regard to
20those issues.
21    (i) A certificate of authority to construct and operate a
22carbon dioxide pipeline issued by the Commission shall contain
23and include all of the following:
24        (1) a grant of authority to construct and operate a
25    carbon dioxide pipeline as requested in the application,
26    subject to the laws of this State; and



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1        (2) a limited grant of authority to take and acquire an
2    easement in any property or interest in property for the
3    construction, maintenance, or operation of a carbon
4    dioxide pipeline in the manner provided for the exercise of
5    the power of eminent domain under the Eminent Domain Act.
6    The limited grant of authority shall be restricted to, and
7    exercised solely for, the purpose of siting,
8    rights-of-way, and easements appurtenant, including
9    construction and maintenance. The applicant shall not
10    exercise this power until it has used reasonable and good
11    faith efforts to acquire the property or easement thereto.
12    The applicant may thereafter use this power when the
13    applicant determines that the easement is necessary to
14    avoid unreasonable delay or economic hardship to the
15    progress of activities carried out pursuant to the
16    certificate of authority.
17    Section 25. Procedures. Notwithstanding any other
18provision of this Act, any power granted pursuant to this Act
19to acquire an easement is subject to, and shall be exercised in
20accordance with, the Eminent Domain Act.
21    Section 30. Safety. A carbon dioxide pipeline owner shall
22construct, maintain, and operate all of its pipelines, related
23facilities, and equipment in this State in a manner that poses
24no undue risk to its employees or the public. The Commission



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1shall not issue any certificates or permits allowing the
2construction of a carbon dioxide pipeline until it has adopted
3federal safety regulations governing the construction,
4maintenance, and operations of carbon dioxide pipelines,
5related facilities, and equipment to ensure the safety of
6pipeline employees and the public.
7    Section 99. Effective date. This Act takes effect upon
8becoming law.".