Illinois General Assembly - Full Text of SB2169
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Full Text of SB2169  97th General Assembly




State of Illinois
2011 and 2012


Introduced 2/10/2011, by Sen. James F. Clayborne, Jr.


220 ILCS 5/15-401

    Amends the Public Utilities Act. In provisions concerning issuance of a certificate of good standing authorizing a person to operate as a common carrier by pipeline, makes changes concerning the factors the Illinois Commerce Commission shall consider in its determination of public convenience and necessity for a proposed pipeline or facility; provides that an application may request either that the Commission review and approve a specific route for a pipeline, or that the Commission review and approve a project route width that identifies the areas in which the pipeline would be located; provides for a consolidated proceeding for decisions on consolidated applications; requires the Commission to make its determination on any application filed pursuant to this Section and issue its final order within one year after the date that the application is filed unless an extension is granted; provides that the rules of the Commission may include additional options for expediting the issuance of permits and certificates. Makes other changes. Effective July 1, 2011.

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SB2169LRB097 07925 ASK 48040 b

1    AN ACT concerning regulation.
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4    Section 5. The Public Utilities Act is amended by changing
5Section 15-401 as follows:
6    (220 ILCS 5/15-401)
7    Sec. 15-401. Licensing.
8    (a) No person shall operate as a common carrier by pipeline
9unless the person possesses a certificate in good standing
10authorizing it to operate as a common carrier by pipeline. No
11person shall begin or continue construction of a pipeline or
12other facility, other than the repair or replacement of an
13existing pipeline or facility, for use in operations as a
14common carrier by pipeline unless the person possesses a
15certificate in good standing.
16    (b) Requirements for issuance. The Commission, after a
17hearing, shall grant an application for a certificate
18authorizing operations as a common carrier by pipeline, in
19whole or in part, to the extent that it finds that the
20application was properly filed; a public need for the service
21exists; the applicant is fit, willing, and able to provide the
22service in compliance with this Act, Commission regulations,
23and orders; and the public convenience and necessity requires



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1issuance of the certificate. Evidence encompassing any of the
2factors set forth in this subsection (b) that is submitted by
3the applicant, any other party, or the Commission's staff shall
4also be considered by the Commission in determining whether a
5public need for the service exists under either current or
6expected conditions. The changes in this subsection (b) are
7intended to be confirmatory of existing law.
8    In its determination of public convenience and necessity
9for a proposed pipeline or facility designed or intended to
10transport crude oil and any alternate locations for such
11proposed pipeline or facility, the Commission shall consider,
12but not be limited to, the following:
13        (1) any evidence presented by the Illinois
14    Environmental Protection Agency regarding the
15    environmental impact of the proposed pipeline or other
16    facility;
17        (2) any evidence presented by the Illinois Department
18    of Transportation regarding the impact of the proposed
19    pipeline or facility on traffic safety, road construction,
20    or other transportation issues;
21        (3) any evidence presented by the Department of Natural
22    Resources regarding the impact of the proposed pipeline or
23    facility on any conservation areas, forest preserves,
24    wildlife preserves, wetlands, or any other natural
25    resource;
26        (4) any evidence of the effect of the pipeline upon the



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1    economy, infrastructure, and public safety presented by
2    local governmental units that will be affected by the
3    proposed pipeline or facility;
4        (5) any evidence of the effect of the pipeline upon
5    property values presented by property owners who will be
6    affected by the proposed pipeline or facility, provided
7    that the Commission need not hear evidence as to the actual
8    valuation of property such as that as would be presented to
9    and determined by the courts under the Eminent Domain Act;
10        (6) any evidence presented by the Department of
11    Commerce and Economic Opportunity regarding the current
12    and future local, State-wide, or regional economic effect,
13    direct or indirect, of the proposed pipeline or facility
14    including, but not limited to, property values, employment
15    rates, and residential and business development; and
16        (7) any evidence addressing the factors in this
17    subsection (b) or other relevant factors that is presented
18    by any other State agency, the applicant, a party, or other
19    entity that participates in the proceeding, including
20    evidence presented by the Commission's staff; .
21        (8) any evidence presented by a State agency or unit of
22    State or local government as to the current and future
23    national, State-wide, or regional economic effects of the
24    proposed pipeline, direct or indirect, as they affect
25    residents or businesses in Illinois, including, but not
26    limited to, such impacts as the ability of manufacturers in



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1    Illinois to meet public demand for related services and
2    products and to compete in the national and regional
3    economies, improved access of suppliers to regional and
4    national shipping grids, the ability of the State to access
5    funds made available for energy infrastructure by the
6    federal government, mitigation of foreseeable spikes in
7    price affecting Illinois residents or businesses due to
8    sudden changes in supply or transportation capacity, and
9    the likelihood that the proposed construction will
10    substantially encourage related investment in the State's
11    energy infrastructure and the creation of energy related
12    jobs; and
13        (9) any evidence presented by any State or federal
14    governmental entity as to how the proposed pipeline or
15    facility will affect the security, stability, and
16    reliability of energy in the State or in the region.
17    In its written order, the Commission shall address all of
18the evidence presented, and if the order is contrary to any of
19the evidence, the Commission shall state the reasons for its
20determination with regard to that evidence. The provisions of
21this amendatory Act of 1996 apply to any certificate granted or
22denied after the effective date of this amendatory Act of 1996.
23    (b-5) An application filed pursuant to this Section may
24request either that the Commission review and approve a
25specific route for a pipeline, or that the Commission review
26and approve a project route width that identifies the areas in



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1which the pipeline would be located, with such width ranging
2from the minimum width required for a pipeline right-of-way up
3to 500 feet in width. The purpose for allowing the option of
4review and approval of a project route width is to provide
5increased flexibility during the construction process to
6accommodate specific landowner requests, avoid environmentally
7sensitive areas, or address special environmental permitting
9    (b-10) A common carrier by pipeline that may request any
10other approvals as may be needed from the Commission for
11completion of the pipeline under Article VIII or any other
12Article or Section of this Act at the same time, and as part of
13the same application, as its request for a certificate of good
14standing under this Section. The Commission's rules shall
15ensure that notice of such a consolidated application is
16provided within 30 days after filing to the landowners along a
17proposed project route, or to the potentially affected
18landowners within a proposed project route width, using the
19notification procedures set forth in the Commission's rules. If
20a consolidated application is submitted, the requests shall be
21heard on a consolidated basis and a decision on all issues
22shall be entered within the time frames stated in subsection
23(b-15) of this Section. In such a consolidated proceeding, the
24Commission may consider evidence relating to the same factors
25identified in subsection (b) of this Section in granting a
26certificate of need under Section 8-503 of this Act. If the



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1Commission grants approval of a project route width as opposed
2to a specific project route, the common carrier by pipeline
3must, as it finalizes the actual pipeline alignment within the
4project route width, file its final list of affected landowners
5with the Commission at least 14 days in advance of beginning
6construction on any tract within the project route width and
7also provide the Commission with at least 14 days notice before
8filing a complaint for eminent domain in the circuit court with
9regard to any tract within the project route width.
10    (b-15) The Commission shall make its determination on any
11application filed pursuant to this Section and issue its final
12order within one year after the date that the application is
13filed unless an extension is granted as provided in this
14subsection (b-15). The Commission may extend the one-year time
15period for issuing a final order on an application filed
16pursuant to this Section up to an additional 6 months if it
17finds, following the filing of initial testimony by the parties
18to the proceeding, that due to the number of affected
19landowners and other parties in the proceeding and the
20complexity of the contested issues before it, additional time
21is needed to ensure a complete review of the evidence. If an
22extension is granted, the schedule for the proceeding shall not
23be further extended beyond this 6-month period, and the
24Commission shall issue its final order within the 6-month
25extension period. The Commission shall also have the power to
26establish an expedited schedule for making its determination on



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1an application filed pursuant to this Section in less than one
2year if it finds that the public interest requires the setting
3of such an expedited schedule.
4    (b-15) Within 6 months after the Commission's entry of an
5order approving either a specific route or a project route
6width under this Section, the common carrier by pipeline that
7receives such order may file supplemental applications for
8minor route deviations outside the approved project route
9width, allowing for additions or changes to the approved route
10to address environmental concerns encountered during
11construction or to accommodate landowner requests. Notice of a
12supplemental application shall be provided to any State agency
13that appeared in the original proceeding or immediately
14affected landowner at the time such supplemental application is
15filed. The route deviations shall be approved by the Commission
16within 45 days, unless a written objection is filed to the
17supplemental application within 20 days after the date such
18supplemental application is filed. Hearings on any such
19supplemental application shall be limited to the
20reasonableness of the specific variance proposed, and the
21issues of public need or public convenience or necessity for
22the project or fitness of the applicant shall not be reopened
23in the supplemental proceeding.
24    (b-20) The rules of the Commission may include additional
25options for expediting the issuance of permits and certificates
26under this Section. Such rules may provide that, in the event



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1that an applicant elects to use an option provided for in such
2rules; (1) the applicant must request the use of the expedited
3process at the time of filing its application for a license or
4permit with the Commission; (2) the Commission may engage
5experts and procure additional administrative resources that
6are reasonably necessary for implementing the expedited
7process; and (3) the applicant must bear any additional costs
8incurred by the Commission as a result of the applicant's use
9of such expedited process.
10    (c) Duties and obligations of common carriers by pipeline.
11Each common carrier by pipeline shall provide adequate service
12to the public at reasonable rates and without discrimination.
13(Source: P.A. 94-793, eff. 5-19-06.)
14    Section 99. Effective date. This Act takes effect July 1,