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


Sen. John M. Sullivan

Filed: 3/29/2011





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



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1and use of Illinois coal and also advance economic development,
2environmental protection, and energy security in the State.
3    Section 10. Definitions. As used in this Act:
4    "Carbon dioxide pipeline" or "pipeline" means the in-state
5portion of a pipeline, including appurtenant facilities,
6property rights, and easements, that are used exclusively for
7the purpose of transporting carbon dioxide to a point of sale,
8storage, enhanced oil recovery, or other carbon management
10    "Clean coal facility" has the meaning ascribed to that term
11in Section 1-10 of the Illinois Power Agency Act.
12    "Clean coal SNG facility" has the meaning ascribed to that
13term in Section 1-10 of the Illinois Power Agency Act.
14    "Clean coal SNG brownfield facility" has the meaning
15ascribed to that term in Section 1-10 of the Illinois Power
16Agency Act.
17    "Commission" means the Illinois Commerce Commission.
18    "Sequester" has the meaning ascribed to that term in
19Section 1-10 of the Illinois Power Agency Act.
20    "Transportation" means the physical movement of carbon
21dioxide by pipeline conducted for a person's own use or account
22or the use or account of another person or persons.
23    Section 15. Scope. This Act applies only to an owner or
24operator of a pipeline designed, constructed, and operated to



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1transport and to sequester carbon dioxide produced by a clean
2coal facility, by a clean coal SNG facility, by a clean coal
3SNG brownfield facility, or by any other source that will
4result in the reduction of carbon dioxide emissions from that
5source. Further, this Act applies only to a person or entity
6authorized to do business in Illinois who is authorized to
7transport carbon dioxide by pipeline and has obtained a
8certificate of authority from the Commission pursuant to this
10    Section 20. Application.
11    (a) No person or entity may construct, operate, or repair a
12carbon dioxide pipeline unless the person or entity possesses a
13certificate in good standing.
14    (b) The Commission, after a hearing, shall grant an
15application for a certificate authorizing the construction and
16operation of a carbon dioxide pipeline to the extent that it
17finds that the application was properly filed; the applicant is
18fit, willing, and able to construct and operate the pipeline in
19compliance with this Act and with Commission regulations and
20orders; and the proposed pipeline is consistent with the public
21interest, public benefit, and legislative purpose as set forth
22in this Act. Evidence encompassing any of the factors described
23in items (1) through (9) of this subsection (b) that is
24submitted by the applicant, any other party, or the
25Commission's staff shall also be considered by the Commission.



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1    In its review of an application for a certificate of
2authority to construct and operate a proposed carbon dioxide
3pipeline and any alternate locations for that proposed pipeline
4or facility, the Commission shall consider, but not be limited
5to, the following:
6        (1) that the applicant has filed or will timely file
7    with the Pipeline and Hazardous Materials Safety
8    Administration of the U.S. Department of Transportation
9    all forms required by that agency in advance of
10    constructing a carbon dioxide pipeline;
11        (2) that the applicant has filed or will timely file
12    with the U.S. Army Corps of Engineers all applications for
13    permits required by that agency in advance of constructing
14    a carbon dioxide pipeline;
15        (3) that the applicant has entered into an agreement
16    with the Illinois Department of Agriculture that governs
17    the mitigation of agricultural impacts associated with the
18    construction of the proposed pipeline;
19        (4) any evidence regarding the applicant's financial,
20    managerial, legal, and technical qualifications necessary
21    to construct and operate the proposed carbon dioxide
22    pipeline;
23        (5) any evidence of the effect of the pipeline upon the
24    economy, infrastructure, and public safety presented by
25    local governmental units that will be affected by the
26    proposed pipeline route;



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1        (6) any evidence of the effect of the pipeline upon
2    property values presented by property owners who will be
3    affected by the proposed pipeline or facility, provided
4    that the Commission need not hear evidence as to the actual
5    valuation of property such as that as would be presented to
6    and determined by the courts under the Eminent Domain Act;
7        (7) any evidence presented by the Department of
8    Commerce and Economic Opportunity regarding the current
9    and future local, State-wide, or regional economic effect,
10    direct or indirect, of the proposed pipeline or facility
11    including, but not limited to, ability of the State to
12    attract economic growth, meet future energy requirements,
13    and ensure compliance with environmental requirements and
14    goals;
15        (8) any evidence addressing the factors described in
16    items (1) through (9) of this subsection (b) or other
17    relevant factors that is presented by any other State
18    agency, the applicant, a party, or other entity that
19    participates in the proceeding, including evidence
20    presented by the Commission's staff; and
21        (9) any evidence presented by any State or federal
22    governmental entity as to how the proposed pipeline will
23    affect the security, stability, and reliability of energy.
24    In its written order, the Commission shall address all of
25the evidence presented, and if the order is contrary to any of
26the evidence, the Commission shall state the reasons for its



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1determination with regard to that evidence.
2    (c) When an applicant files its application with the
3Commission, it shall provide notice to each local government
4where the proposed pipeline will be located and include a map
5of the proposed pipeline route. The applicant shall also
6publish notice in a newspaper of general circulation in each
7county where the proposed pipeline is located.
8    (d) An application filed pursuant to this Section may
9request either that the Commission review and approve a
10specific route for a carbon dioxide pipeline, or that the
11Commission review and approve a project route width that
12identifies the areas in which the pipeline would be located,
13with such width ranging from the minimum width required for a
14pipeline right-of-way up to 200 feet in width. The purpose for
15allowing the option of review and approval of a project route
16width is to provide increased flexibility during the
17construction process to accommodate specific landowner
18requests, avoid environmentally sensitive areas, or address
19special environmental permitting requirements.
20    (e) An applicant under this Act may request the issuance of
21a certificate of authority from the Commission for the
22construction and operation of a carbon dioxide pipeline at the
23same time, and as part of the same application, as its request
24for a certificate of good standing.
25    The Commission's rules shall ensure that notice of such a
26consolidated application is provided within 30 days after



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1filing to the landowners along a proposed project route, or to
2the potentially affected landowners within a proposed project
3route width, using the notification procedures set forth in the
4Commission's rules. If a consolidated application is
5submitted, then the requests shall be heard on a consolidated
6basis and a decision on all issues shall be entered within the
7time frames stated in subsection (f) of this Section. In such a
8consolidated proceeding, the Commission may consider evidence
9relating to the same factors identified in items (1) through
10(9) of subsection (b) of this Section. If the Commission grants
11approval of a project route width as opposed to a specific
12project route, then the applicant must, as it finalizes the
13actual pipeline alignment within the project route width, file
14its final list of affected landowners with the Commission at
15least 14 days in advance of beginning construction on any tract
16within the project route width and also provide the Commission
17with at least 14 days' notice before filing a complaint for
18eminent domain in the circuit court with regard to any tract
19within the project route width.
20    (f) The Commission shall make its determination on any
21application filed pursuant to this Section and issue its final
22order within 11 months after the date that the application is
24    (g) Within 6 months after the Commission's entry of an
25order approving either a specific route or a project route
26width under this Section, the owner or operator of the carbon



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1dioxide pipeline that receives that order may file supplemental
2applications for minor route deviations outside the approved
3project route width, allowing for additions or changes to the
4approved route to address environmental concerns encountered
5during construction or to accommodate landowner requests.
6Notice of a supplemental application shall be provided to any
7State agency that appeared in the original proceeding or
8immediately affected landowner at the time that supplemental
9application is filed. The route deviations shall be approved by
10the Commission within 45 days, unless a written objection is
11filed to the supplemental application within 20 days after the
12date the supplemental application is filed. If a written
13objection is filed, then the Commission shall issue an order
14either granting or denying the route deviation within 60 days
15after the filing of the objection. Hearings on any such
16supplemental application shall be limited to the
17reasonableness of the specific variance proposed, and the
18issues of the public interest and benefit of the project or
19fitness of the applicant shall not be reopened in the
20supplemental proceeding.
21    (h) The rules of the Commission may include additional
22options for expediting the issuance of certificates and
23approvals under this Section. If an applicant elects to use an
24option provided for in the rules, then the rules may provide
25that: (1) the applicant must request the use of the expedited
26process at the time of filing its application; (2) the



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1Commission may engage experts and procure additional
2administrative resources that are reasonably necessary for
3implementing the expedited process; and (3) the applicant must
4bear any additional costs incurred by the Commission as a
5result of the applicant's use of the expedited process.
6    (i) A certificate of authority to construct and operate a
7carbon dioxide pipeline issued by the Commission shall contain
8and include all of the following:
9        (1) a grant of authority to construct and operate a
10    carbon dioxide pipeline as requested in the application,
11    subject to the laws of this State; and
12        (2) a limited grant of authority to take and acquire an
13    easement in any property or interest in property for the
14    construction, maintenance, or operation of a carbon
15    dioxide pipeline in the manner provided for the exercise of
16    the power of eminent domain under the Eminent Domain Act.
17    The limited grant of authority shall be restricted to, and
18    exercised solely for, the purpose of siting,
19    rights-of-way, and easements appurtenant, including
20    construction and maintenance. The applicant shall not
21    exercise this power until it has used reasonable and good
22    faith efforts to acquire the property or easement thereto.
23    The applicant may thereafter use this power when the
24    applicant determines that the easement is necessary to
25    avoid unreasonable delay or economic hardship to the
26    progress of activities carried out pursuant to the



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1    certificate of authority.
2    Section 25. Procedures. Notwithstanding any other
3provision of this Act, any power granted pursuant to this Act
4to acquire an easement is subject to, and shall be exercised in
5accordance with, the Eminent Domain Act.
6    Section 30. Safety. A carbon dioxide pipeline owner shall
7construct, maintain, and operate all of its pipelines, related
8facilities, and equipment in this State in a manner that poses
9no undue risk to its employees or the public. The Commission
10shall adopt federal safety regulations governing the
11construction, maintenance, and operations of carbon dioxide
12pipelines, related facilities, and equipment to ensure the
13safety of pipeline employees and the public.
14    Section 99. Effective date. This Act takes effect upon
15becoming law.".