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




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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 described in items (1) through (9) of this subsection
3(b) that is submitted by the applicant, any other party, or the
4Commission's staff shall also be considered by the Commission
5in determining whether a public need for the service exists
6under current or expected conditions. The changes in this
7subsection (b) are declarative 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 would be presented to and
9    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 described in
17    items (1) through (9) of this subsection (b) or other
18    relevant factors that is presented by any other State
19    agency, the applicant, a party, or other entity that
20    participates in the proceeding, including evidence
21    presented by the Commission's staff; .
22        (8) any evidence presented by a State agency or unit of
23    State or local government as to the current and future
24    national, State-wide, or regional economic effects of the
25    proposed pipeline, direct or indirect, as they affect
26    residents or businesses in Illinois, including, but not



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



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1identifies the areas in which the pipeline would be located,
2with such width ranging from the minimum width required for a
3pipeline right-of-way up to 500 feet in width. The purpose for
4allowing the option of review and approval of a project route
5width is to provide increased flexibility during the
6construction process to accommodate specific landowner
7requests, avoid environmentally sensitive areas, or address
8special environmental permitting requirements.
9    (d) A common carrier by pipeline may request any other
10approvals as may be needed from the Commission for completion
11of the pipeline under Article VIII or any other Article of this
12Act at the same time, and as part of the same application, as
13its request for a certificate of good standing under this
14Section. The Commission's rules shall ensure that notice of
15such a consolidated application is provided within 30 days
16after filing to the landowners along a proposed project route,
17or to the potentially affected landowners within a proposed
18project route width, using the notification procedures set
19forth in the Commission's rules. If a consolidated application
20is submitted, then the requests shall be heard on a
21consolidated basis and a decision on all issues shall be
22entered within the time frames stated in subsection (e) of this
23Section. In such a consolidated proceeding, the Commission may
24consider evidence relating to the same factors identified in
25items (1) through (9) of subsection (b) of this Section in
26granting authority 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, then the common carrier by
3pipeline must, as it finalizes the actual pipeline alignment
4within the project route width, file its final list of affected
5landowners with the Commission at least 14 days in advance of
6beginning construction on any tract within the project route
7width and also provide the Commission with at least 14 days
8notice before filing a complaint for eminent domain in the
9circuit court with regard to any tract within the project route
11    (e) The Commission shall make its determination on any
12application filed pursuant to this Section and issue its final
13order within one year after the date that the application is
14filed unless an extension is granted as provided in this
15subsection (e). The Commission may extend the one-year time
16period for issuing a final order on an application filed
17pursuant to this Section up to an additional 6 months if it
18finds, following the filing of initial testimony by the parties
19to the proceeding, that due to the number of affected
20landowners and other parties in the proceeding and the
21complexity of the contested issues before it, additional time
22is needed to ensure a complete review of the evidence. If an
23extension is granted, then the schedule for the proceeding
24shall not be further extended beyond this 6-month period, and
25the Commission shall issue its final order within the 6-month
26extension period. The Commission shall also have the power to



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



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