Illinois General Assembly - Full Text of HB0569
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Full Text of HB0569  103rd General Assembly


Rep. Jay Hoffman

Filed: 3/12/2024





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2    AMENDMENT NO. ______. Amend House Bill 569 by replacing
3everything after the enacting clause with the following:
4    "Section 1. Short title. This Act may be cited as the
5Climate and Landowner Protection Act.
6    Section 5. Statement of policy. The General Assembly finds
7that it is in the public interest to promote the permanent
8underground sequestration of carbon dioxide. Underground
9sequestration of carbon dioxide benefits the citizens of this
10State by reducing greenhouse gas emissions and by supporting
11jobs and economic development in local communities. This State
12has geology that is particularly well suited for underground
13sequestration of carbon dioxide, as demonstrated by the
14presence of the first commercial-scale carbon sequestration
15project in the United States. Therefore, it is the policy of
16this State to promote the use and employment of technologies



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1that enable the capture of carbon dioxide for the purpose of
2storing the carbon dioxide underground in a permanent manner.
3    Section 10. Applicability. This Act applies to the
4underground sequestration of carbon dioxide.
5    Section 15. Definitions. As used in this Act:
6    "Affected pore space owner" means (1) a pore space owner
7who does not agree to integrate the pore space owner's
8interests into a sequestration facility and is required to do
9so by an order issued by the Department in accordance with
10Section 25 and (2) any other pore space owner within the
11sequestration facility who has not granted surface access to
12the sequestration operator.
13    "Agency" means the Illinois Environmental Protection
15    "Applicable underground injection control program" means,
16for each Class VI injection well, the program provided by the
17federal Safe Drinking Water Act for that class of well in this
18State, including, but not limited to, the most recent
19amendments to that program.
20    "Carbon dioxide" means the chemical compound that is
21composed of one carbon atom and 2 oxygen atoms.
22    "Carbon dioxide pipeline" has the meaning given in Section
2310 of the Carbon Dioxide Transportation and Sequestration Act.
24    "Carbon dioxide plume" means the subsurface, 3-dimensional



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1extent of an injected carbon dioxide stream.
2    "Carbon dioxide stream" means carbon dioxide that has been
3captured from an emission source or the atmosphere and
4incidental associated substances derived from the source
5materials and the capture process, as well as any substances
6added to the stream to enable or improve the injection
7process. "Carbon dioxide stream" does not include any carbon
8dioxide stream that is "hazardous waste" as defined in 40 CFR
10    "Class VI injection well" means a well that is used to
11inject one or more carbon dioxide streams into a sequestration
12facility under a Class VI well permit.
13    "Class VI well permit" means a Class VI well permit issued
14under the applicable underground injection control program
15that allows a person, trust, corporation, or other entity to
16inject one or more carbon dioxide streams for underground
17sequestration of carbon dioxide.
18    "Department" means the Department of Natural Resources.
19    "Mineral lessee" means a lessee who is identified, by the
20records of the recorder of deeds for each county containing a
21portion of a proposed or permitted sequestration facility, as
22a person who holds an interest that has been severed from the
23surface estate by grant, exception, reservation, lease, or any
24other means in minerals that are located on real property
25above, below, or within the proposed or permitted
26sequestration facility. "Mineral lessee" includes a person who



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1is identified as a successor to a mineral lessee by the records
2of the recorder of deeds.
3    "Mineral owner" means an owner who is identified, by the
4records of the recorder of deeds for each county containing a
5portion of a proposed or permitted sequestration facility, as
6a person who holds an interest that has been severed from the
7surface estate by grant, exception, reservation, lease, or any
8other means in minerals that are located on real property
9above, below, or within the proposed or permitted
10sequestration facility. "Mineral owner" includes a person who
11is identified as a successor to a mineral owner by the records
12of the recorder of deeds.
13    "Pore space" means subsurface cavities or voids that can
14be used as containment for underground sequestration of carbon
16    "Pore space owner" means, with respect to any parcel of
17property, the surface owner as set forth in subsection (a) of
18Section 20.
19    "Project labor agreement" means a pre-hire collective
20bargaining agreement that covers all terms and conditions of
21employment on a specific construction project and includes the
23        (1) provisions establishing the minimum hourly wage
24    for each class of labor organization employee;
25        (2) provisions establishing the benefits and other
26    compensation for each class of labor organization



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1    employee;
2        (3) provisions establishing that no strike or disputes
3    will be engaged in by the labor organization employees;
4        (4) provisions establishing that no lockout or
5    disputes will be engaged in by the general contractor
6    building the project;
7        (5) provisions permitting the selection of the lowest
8    qualified responsible bidder, without regard to union or
9    non-union status at other construction sites; and
10        (6) provisions setting forth goals for apprenticeship
11    hours to be performed by minorities and women, as defined
12    under the Business Enterprise for Minorities, Women, and
13    Persons with Disabilities Act, and setting forth goals for
14    total hours to be performed by minorities and women.
15    "Property Index Number" has the meaning given in Section
161-120 of the Property Tax Code.
17    "Property interest owner" means a person who is
18identified, by the records of the recorder of deeds for each
19county containing a portion of the proposed sequestration
20facility or sequestration facility, as a person who holds a
21fee simple interest, easement, other freehold interest, or
22leasehold in the surface or subsurface of the property, which
23may include mineral rights. "Property interest owner" includes
24a person who is identified as a successor to a property
25interest owner by the records of the recorder of deeds.
26    "Proposed sequestration facility" means a subsurface



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1sedimentary stratum, formation, aquifer, cavity, or void that
2is naturally or artificially created, or is capable of being
3made suitable for receiving and containing a carbon dioxide
4plume for a long term, as delineated by computational modeling
5for a Class VI well permit application, and that a
6sequestration facility permit applicant proposes to develop as
7a sequestration facility for the underground sequestration of
8carbon dioxide. "Proposed sequestration facility" does not
9include an application for the modification of a sequestration
10facility permit.
11    "Sequestration facility" means the subsurface volume and
12confining zone capable of receiving and containing a carbon
13dioxide plume for a long term, as delineated by computational
14modeling for an approved Class VI well permit or an amendment
15to a Class VI well permit of a sequestration operator.
16    "Sequestration operator" means a person, trust,
17corporation, or other entity that operates at least one Class
18VI injection well and a sequestration facility.
19    "Surface owner" means the fee simple owner of the surface
20estate of a parcel of property who is identified by the records
21of the recorder of deeds for a county. "Surface owner"
22includes a person who is identified as a successor to a surface
23owner by the records of the recorder of deeds.
24    "Underground sequestration of carbon dioxide" means the
25injection of one or more carbon dioxide streams into
26underground geologic formations under at least one Class VI



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1well permit for long-term sequestration.
2    Section 20. Pore space ownership.
3    (a) As to any parcel of property, title to the pore space
4located below the surface thereof is hereby vested in the
5surface owner of the overlying surface estate subject to
6existing rights.
7    (b) A conveyance of title to the surface estate conveys
8title to the pore space in all strata underlying the surface
9estate subject to existing rights.
10    (c) Title to pore space may not be severed from the surface
11estate. An instrument or arrangement that seeks to sever title
12to pore space from title to the parcel of property is void as
13to the severance of the pore space from the surface interest.
14Nothing in this Section affects transactions completed before
15the effective date of this Act.
16    (d) Neither a grant of an easement to use pore space nor a
17lease of pore space is a severance prohibited by subsection
19    (e) Neither the grant of an easement to use pore space nor
20the lease of pore space confers any right to enter upon or
21otherwise use the surface of the parcel of property unless the
22grant of easement or the lease expressly so provides.
23    (f) Nothing in this Section shall be construed to change
24or alter the common law existing as of the effective date of
25this Act as it relates to the rights belonging to, or the



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1dominance of, the mineral estate.
2    Section 25. Integration and unitization of ownership
4    (a) If at least 2 pore space owners own pore space located
5within a proposed sequestration facility, the owners may agree
6to integrate the owners' interests to develop the pore space
7as a proposed sequestration facility for the underground
8sequestration of carbon dioxide.
9    (b) If all of the pore space owners within a proposed or
10permitted sequestration facility do not agree to integrate the
11pore space owners' interests, a sequestration operator or
12sequestration facility permit holder may petition the
13Department to issue an order requiring the pore space owners
14to integrate their interests and authorizing the sequestration
15operator or sequestration facility permit holder to develop
16and use the integrated pore space as a sequestration facility
17for the underground sequestration of carbon dioxide to serve
18the public interest subject to subsection (c). The petition
19shall include, but is not limited to:
20        (1) the name and address of the petitioners;
21        (2) the Property Index Numbers or legal descriptions
22    for the parcels of property and a geologic description of
23    the pore space within the proposed or permitted
24    sequestration facility;
25        (3) the names and addresses of all pore space owners



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1    owning property within the proposed or permitted
2    sequestration facility as disclosed by the records of the
3    office of the recorder for the county or counties in which
4    the proposed or permitted sequestration facility is
5    situated and a list of the pore space owners who have not
6    agreed to integrate their interests;
7        (4) a statement that the petitioner has exercised due
8    diligence to locate each pore space owner and to seek an
9    agreement with each for pore space rights for the
10    sequestration facility;
11        (5) a statement of the type of operations for the
12    proposed or permitted sequestration facility;
13        (6) a plan for determining the quantity of pore space
14    sequestration capacity to be assigned to each separately
15    owned parcel of property based on the surface area acreage
16    overlying the proposed or permitted sequestration facility
17    and for using the surface for Class VI well permit
18    required activities under Section 35;
19        (7) the method by which pore space owners will be
20    equitably compensated for use of the pore space; and
21        (8) a nonrefundable application fee of $2,500.
22    (c) The Department, upon the petition to issue an order to
23integrate the owners' interests and allow unitization in a
24proposed or permitted sequestration facility, shall fix a time
25and place for a public hearing within 90 days. The Department,
26at the petitioner's expense, shall give notice of such hearing



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1under this Section prior to the hearing by:
2        (1) mailing such notice by certified mail, return
3    receipt requested, directed to the persons named in the
4    petition at their last known addresses at least 30 days
5    before the hearing; and
6        (2) publishing such notice once each week for 2
7    consecutive weeks, with the first notice appearing at
8    least 30 days before the hearing in a newspaper of general
9    circulation that is published in each county containing
10    some portion of the proposed or permitted sequestration
11    facility.
12    (d) All notices for public hearings under this Section
13shall be issued in the name of the State of Illinois and shall
14be signed by the Director of Natural Resources. The notices
15shall specify the number and style of the proceedings, the
16time and place of the hearing, that the sole purpose of the
17hearing is for the integration of pore space for the operation
18of a sequestration facility, the name of the petitioners, and
19Property Index Numbers or legal descriptions of the parcels of
20property contained within the proposed or permitted
21sequestration facility.
22    (e) The Department shall issue an order integrating pore
23space under subsection (b) within 60 days after the hearing
24upon a showing that:
25        (1) the petitioner has obtained a Class VI well permit
26    or, if the well permit application is still pending at



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1    least one year from the date the application has been
2    filed, that the petitioner has received a Finding of
3    Administrative Completeness from the applicable
4    underground injection control program;
5        (2) the petitioner has made a good faith effort to
6    seek an agreement with all pore space owners located
7    within the proposed or permitted sequestration facility;
8        (3) the petitioner has obtained the rights from pore
9    space owners of pore space underlying at least 71% of the
10    surface area above the proposed or permitted sequestration
11    facility; and
12        (4) all pore space owners who do not agree to
13    integrate their interests to operate the pore space as a
14    proposed or permitted sequestration facility for the
15    underground sequestration of carbon dioxide are or will be
16    equitably compensated for use of the pore space and use of
17    the surface for Class VI well permit required activities
18    in accordance with Section 35.
19    (f) The Department's order under this Section is not
20effective until the petitioner has been issued a Class VI well
21permit from the applicable underground injection control
23    Section 30. Sequestration facility permits.
24    (a) Sequestration facility permits have the following



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1        (1) Except as provided in Section 75, a sequestration
2    operator may not operate a sequestration facility in this
3    State without:
4            (A) a Class VI well permit; and
5            (B) a valid sequestration facility permit.
6        (2) Each intended sequestration operator of a proposed
7    sequestration facility must obtain a sequestration
8    facility permit. A sequestration facility permit may be
9    transferred or assigned from one sequestration operator to
10    another sequestration operator with notice to the
11    Department, which may adopt rules governing such
12    transfers.
13        (3) Applications for a sequestration facility permit
14    shall be filed with the Department in the form and manner
15    prescribed by the Department.
16        (4) An application under paragraph (3) of this
17    subsection must include:
18            (A) a filing fee of $1,000;
19            (B) the signature of the applicant;
20            (C) a statement verifying that the information
21        submitted is true, accurate, and complete to the best
22        of the applicant's knowledge;
23            (D) a statement that the interests of mineral
24        lessees or mineral owners will not be adversely
25        affected;
26            (E) documentation describing the scope of the



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1        proposed sequestration facility;
2            (F) information on the seismic history including
3        the presence and depth of seismic sources; and
4            (G) an estimate of the amount of carbon dioxide to
5        be injected into a proposed sequestration facility.
6    If a mineral owner or mineral lessee demonstrates a
7potential for adverse effects, the mineral owner or mineral
8lessee and the applicant may enter into an agreement or the
9applicant, mineral owner, or mineral lessee may request the
10Department to establish sequestration facility permit
11conditions to mitigate potential adverse effects to the
12interests of a mineral lessee or mineral owner.
13    (b) The following procedural requirements apply to
14applications for sequestration facility permits:
15        (1) The Department shall review an application
16    submitted under paragraph (3) of subsection (a) for
17    completeness within 30 days of receipt. If the Department
18    determines that the application is incomplete, inaccurate,
19    or both, the Department shall promptly return the
20    application to the applicant with a written explanation of
21    any deficiencies. Otherwise, the Department shall promptly
22    notify the applicant in writing that the application is
23    complete.
24        (2) If the Department returns an application to an
25    applicant under paragraph (1) of this subsection, the
26    Department shall inform the applicant of the right to file



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1    a corrected application with the Department. Upon
2    receiving any corrected application, the Department shall
3    review the application for completeness within 30 days. If
4    the Department determines that the corrected application
5    remains incomplete, inaccurate, or both, the Department
6    shall promptly return the application to the applicant
7    with a written explanation of any deficiencies and an
8    opportunity to resubmit another corrected application to
9    the Department under this paragraph (2). Otherwise, the
10    Department shall promptly notify the applicant in writing
11    that the application is complete.
12        (3) Upon receiving notification that the application
13    or corrected application is complete, the applicant shall:
14            (A) not more than 60 days after receiving the
15        notice that the application or corrected application
16        is complete:
17                (i) place a copy of the application in a
18            public library located in each county in which the
19            sequestration facility is proposed to be located
20            for public inspection;
21                (ii) publish notice under the Notice By
22            Publication Act in each county in which the
23            sequestration facility is proposed to be located
24            and the name and address of each library in which a
25            copy of the application is placed as required by
26            subdivision (i); and



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1                (iii) provide mailed notice to each known and
2            locatable surface owner within the proposed
3            sequestration facility; and
4            (B) not more than 30 days after the publication of
5        the notice under subdivision (ii) of subparagraph (A),
6        provide to the Department proof of publication of
7        notice.
8        (4) Not later than 90 days after receiving proof of
9    publication of notice under subparagraph (B) of paragraph
10    (3), the Department shall notify the applicant in writing
11    that the Department has either approved or denied the
12    application with an explanation of the reasons for any
13    denial.
14    (c) If a sequestration facility permit applicant satisfies
15the requirements of subsection (a) and subsection (b), the
16Department shall issue a sequestration facility permit to the
17applicant within 60 days, which shall be effective upon
19    (d) The Department may adopt rules for the data
20acquisition necessary to allow the Department to determine
21whether there is a potential risk that carbon dioxide
22injection at a proposed or permitted sequestration facility
23will trigger a seismic event sufficient to compromise
24subsurface containment.
25    (e) If a sequestration facility permit applicant
26identifies information as trade secret or confidential and



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1proprietary information in its permit application, the
2Department shall take all necessary precautions to avoid
3public disclosure of that information, as set forth in the
4Illinois Freedom of Information Act.
5    If anyone other than the sequestration facility permit
6applicant files with the Department a request for release of
7the confidential information identified in subsection (d),
8including a statement of the reasons that the information
9should be disclosed, the Department shall consult with the
10sequestration facility permit applicant. The Department may
11release information identified in subsection (d) only if the
12sequestration facility permit applicant consents.
13    Section 35. Surface access for pore space owners. If a
14sequestration operator must enter upon the surface property of
15an affected pore space owner to comply with Class VI well
16permit requirements for the purposes of monitoring a
17sequestration facility or to respond to an emergency causing
18immediate risk to human health, environmental resources, or
19infrastructure, any such Class VI well permit required
20activity must be undertaken in such a way as to minimize the
21impact to the surface of the parcel of property and to ensure
22that the following requirements are met:
23        (1) The Class VI well permit required activity shall
24    be limited to surface monitoring activities, such as
25    geophysical surveys, but does not include the installation



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1    of surface infrastructure except as provided in paragraphs
2    (2) and (3).
3        (2) Shallow groundwater monitoring wells shall be
4    allowed to be installed on such property only if the
5    carbon dioxide plume may have unexpectedly migrated and
6    the applicable underground injection control program for
7    the Class VI injection well requires monitoring of
8    groundwater for potential carbon dioxide impact.
9        (3) Injection wells, deep monitoring wells, and
10    surface infrastructure other than shallow groundwater
11    monitoring wells as allowed by paragraph (2) will not be
12    located on the parcel of property of an affected pore
13    space owner without the express written consent of such
14    owner.
15    Section 40. Notice for surface access. Except in an
16emergency causing immediate risk to human health,
17environmental resources, or infrastructure, a sequestration
18operator with a valid Class VI well permit shall not enter upon
19the surface property for purposes of Class VI well permit
20required activities of any affected pore space owner until 30
21days after providing written notice to the affected pore space
22owner by registered mail and after providing a second notice
23to the pore space owner of record, as identified in the records
24of the relevant county tax assessor, by telephone or email or
25by registered mail in the event the property owner has not been



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1notified by other means, at least 3 days, but not more than 15
2days, prior to the stated date in the notice, identifying the
3date when access will first begin on the owner's property and
4informing the affected pore space owner that the owner or the
5owner's agent may be present when the access occurs.
6    Section 45. Compensation for damages to the surface.
7    (a) An affected pore space owner is entitled to reasonable
8compensation from the sequestration operator for damages
9resulting from surface access to the affected pore space
10owner's property for Class VI well permit required activities,
12        (1) compensation for damage to growing crops, trees,
13    shrubs, fences, roads, structures, improvements, personal
14    property, and livestock thereon and compensation for the
15    loss of the value of a commercial crop impacted by Class VI
16    well permit activities by the sequestration operator; the
17    value of the crop shall be calculated based on local
18    market price by:
19            (A) determining the average per acre yield for the
20        same crop on comparable adjacent acreage;
21            (B) determining the price received for the sale of
22        the same crop on comparable adjacent acreage;
23            (C) determining the acreage of the area impacted
24        by Class VI well permit activities and applying the
25        determined price; and



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1            (D) the initial determination of the value of the
2        crop shall be determined by the affected pore space
3        owner and submitted to the sequestration operator;
4        (2) compensation to return the surface estate,
5    including soil conservation practices, such as terraces,
6    grassed waterways, and other conservation practices, to a
7    condition as near as practicable to the condition of the
8    surface prior to accessing the property;
9        (3) compensation for damage to the productive
10    capability of the soil resulting from compaction or
11    rutting, including, but not limited to, compensation for
12    when a sequestration operator accesses a property where
13    excessively wet soil conditions would not allow normal
14    farming operations due to increased risk of soil erosion,
15    rutting, or compaction; if there is a dispute between the
16    sequestration operator and the affected pore space owner
17    regarding the value of the damage to the productive
18    capability of the soil, the sequestration operator shall
19    consult with a representative of the soil and water
20    conservation district in the respective county where the
21    parcel of property is located for recommendations to
22    restore the productive capability of the soil; and
23        (4) compensation for damage to surface and subsurface
24    drainage, including, but not limited to:
25            (A) compensation in that the sequestration
26        operator shall perform immediate and temporary repairs



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1        for damage that occurs to subsurface drainage tiles
2        that have water actively flowing through them at the
3        time of damage; and
4            (B) compensation such that the sequestration
5        operator shall compensate the affected pore space
6        owner to permanently restore drainage to a condition
7        as near as practicable to the condition of the
8        drainage prior to accessing the property.
9    (b) The compensation for damages required by subsection
10(a) shall be paid in any manner mutually agreed upon by the
11sequestration operator and the affected pore space owners.
12Unless otherwise agreed, the sequestration operator shall
13tender to the surface owner payment by check or draft in
14accordance with this Section 45 no later than 60 days after
15completing the Class VI well permit activities if the
16occurrence or value of damages is not disputed. The pore space
17owner's remedy for unpaid or disputed compensation shall be an
18action for damages in any court of competent jurisdiction for
19the parcel of property or the greater part thereof on which the
20Class VI well permit activities were conducted and shall be
21entitled to recover reasonable damages and attorney's fees if
22the pore space owner prevails.
23    Section 50. Fees.
24    (a) Beginning after the adoption of rules under paragraph
25(4) of subsection (d) of this Section, the sequestration



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1operator shall be assessed the following fees at the
2conclusion of each State fiscal year:
3        (1) a fee of $0.16 for every ton of carbon dioxide
4    injected into the sequestration facility that the
5    sequestration operator operates in that fiscal year to be
6    allocated to the Carbon Dioxide Sequestration
7    Administrative Fund;
8        (2) a fee of $0.04 for every ton of carbon dioxide
9    injected into a sequestration facility in that fiscal year
10    to be allocated to the Carbon Dioxide Sequestration
11    Long-Term Trust Fund; and
12        (3) a fee of $0.01 for every ton of carbon dioxide
13    injected into a sequestration facility in that fiscal year
14    to be deposited into the Carbon Dioxide Local First
15    Responders Fund.
16    (b) The sequestration operator shall be assessed a
17one-time fee of $1,000 upon approval of a sequestration
18facility permit to be deposited into the Carbon Dioxide First
19Responders Fund promptly upon approval of the sequestration
20facility permit.
21    (c) The fee assessed to the sequestration operator under
22paragraph (1) of subsection (a) shall be reduced to $0.04 for
23every ton of carbon dioxide injected into a sequestration
24facility in that fiscal year if the sequestration operator
25successfully demonstrates to the Department that the following
26types of construction and maintenance were conducted in



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1Illinois during that fiscal year by the sequestration operator
2and were performed by contractors and subcontractors signatory
3to a project labor agreement used by the building and
4construction trades council with relevant geographic
6        (1) construction and maintenance of equipment
7    associated with the capture of carbon dioxide, including,
8    but not limited to, all clearing, site preparation,
9    concrete, equipment, and appurtenance installation;
10        (2) construction and maintenance of carbon dioxide
11    pipelines used to transport carbon dioxide streams to the
12    sequestration facility, including, but not limited to, all
13    clearing, site preparation, and site remediation;
14        (3) construction and maintenance of compressor
15    stations used to assist in the transport of carbon dioxide
16    streams via carbon dioxide pipeline, including, but not
17    limited to, all clearing, site preparation, concrete,
18    equipment, and appurtenance installation; and
19        (4) construction of carbon dioxide injection wells
20    used at the sequestration facility, including, but not
21    limited to, all clearing, site preparation, drilling,
22    distribution piping, concrete, equipment, and appurtenance
23    installation.
24    (d) Annual fees imposed under subsection (a) shall be
25segregated as follows:
26        (1) 50% of the fees assessed under paragraph (1) of



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1    subsection (a) shall be deposited into the Carbon Dioxide
2    Sequestration Administrative Fund, and 50% of the fees
3    assessed under paragraph (1) of subsection (a) shall be
4    held in escrow by the sequestration operator for the
5    Carbon Dioxide Sequestration Administrative Fund under
6    rules adopted by the Department.
7        (2) 100% of the fees assessed by paragraph (2) of
8    subsection (a) shall be held in escrow by the
9    sequestration operator for the Carbon Dioxide Long-Term
10    Trust Fund under rules adopted by the Department.
11        (3) The funds held in escrow by the sequestration
12    operator pursuant to paragraph (1) and (2) shall not be
13    deemed funds of the sequestration operator unless and
14    until refunded to the sequestration operator under
15    subsection (e) below and shall instead be deemed funds
16    escrowed for the sole favor of the Department to be used
17    solely at the direction of the Department pursuant to the
18    terms of this Act and the rules adopted by the Department
19    in connection therewith.
20        (4) The Department shall, within one year after the
21    date of this Act, adopt rules with respect to the escrows
22    to be established under paragraphs (1) and (2). Such rules
23    may require deposit of additional (a)(1) funds into the
24    Carbon Dioxide Sequestration Administrative Fund as needed
25    to meet the requirements of the Act, provided that such
26    rules shall permit and establish requirements regarding



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1    investment of the escrowed funds.
2    (e) Upon site closure of the Class VI injection wells, all
3moneys accumulated by the sequestration operator in escrow
4pursuant to paragraphs (1) and (2) of subsection (d) in
5relation to such wells shall be deposited into the Carbon
6Dioxide Long-Term Trust Fund. The total amount deposited shall
7not exceed the anticipated cost of oversight and management
8following closure of the sequestration facility and associated
9Class VI injection wells, as determined by the Department. Any
10moneys remaining in the escrow in excess of the anticipated
11cost shall be refunded promptly to the sequestration operator.
12    (f) The Department may modify, by rule, the fee amounts
13authorized by paragraph (1) of subsection (a) to ensure that
14sufficient resources exist to achieve the requirements of this
15Act. Changes must be based on the anticipated costs to the
16Department of carrying out the requirements of the Act.
17    (g) If the Department modifies the fee amounts established
18in this Section, the fees assessed for the Carbon Dioxide
19Sequestration Administration Fund shall maintain a 4 times
20higher per ton fee when the storage operator does not
21demonstrate paragraphs (1), (2), (3), and (4) of subsection
22(c) to the Department.
23    Section 55. Funds.
24    (a) The Carbon Dioxide Sequestration Administrative Fund
25is hereby created as a special fund within the State treasury



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1to be administered by the Department. Moneys in the Fund may be
3        (1) to defray expenses incurred by the Department for
4    the regulation of sequestration facilities during their
5    construction, operational, and post-injection phases;
6        (2) to transfer funds to the Agency or other State
7    agencies for the purpose of implementing and enforcing the
8    applicable underground injection control program for Class
9    VI injection wells; or
10        (3) if the Carbon Dioxide Long-Term Trust Fund becomes
11    depleted, to defray expenses incurred by the Department
12    for the long-term monitoring and management of
13    sequestration facilities after the Department issues a
14    certificate of project completion.
15    (b) The Carbon Dioxide Sequestration Long-Term Trust Fund
16is hereby created as a special fund within the State treasury
17to be administered by the Department. Moneys in the Carbon
18Dioxide Sequestration Long-Term Trust Fund may only be used to
19defray expenses incurred by the Department for the long-term
20monitoring and management of sequestration facilities in this
21State, after site closure of the Class VI injection wells.
22Expenses may include response to any liabilities associated
23with the sequestration facility and sequestered carbon dioxide
24after the Department issues a certificate of project
26    (c) There is hereby created the Carbon Dioxide Local First



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1Responders Fund to be a fund locally held by the Department
2outside of the State treasury and administered by the
3Department. The fund is created to make grants to counties and
4local municipalities to provide training and support emergency
5preparedness services to local first responders for localities
6where sequestration facilities or carbon dioxide pipelines are
7located and to defray expenses of local first responders in
8responding to emergencies at sequestration facilities or
9carbon dioxide pipelines. Grants to support local first
10responders may be used for:
11        (1) preparing emergency response plans;
12        (2) conducting training and preparing training
13    materials for first responders, residents, businesses, and
14    other local entities; and
15        (3) obtaining equipment for first responders,
16    including personal protective equipment.
17    Section 60. Requirements for drilling near a sequestration
19    (a) Anyone intending to drill a well shall provide written
20notice to a sequestration operator at least 30 days before
21drilling a well if the well will be no more than:
22        (1) 330 feet from the surface location of a Class VI
23    injection well; or
24        (2) 500 feet from the uppermost confining zone of a
25    sequestration facility.



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1    (b) A well drilled under subsection (a) must be drilled in
2compliance with the requirements of:
3        (1) the Department to preserve the integrity of the
4    sequestration facility;
5        (2) a well permit issued by the Department or the
6    applicable underground injection program; and
7        (3) any other applicable rules.
8    (c) The Department shall not authorize any well drilled
9under subsection (a) without either:
10        (1) the consent of the sequestration operator; or
11        (2) if an agreement cannot be reached, an order from
12    the Department, following public hearing, determining that
13    the activity under subsection (a) will not adversely
14    affect the sequestration facility.
15    (d) The rules adopted pursuant to this Section 60 shall
16establish procedures requiring coordination between anyone
17intending to drill a well under subsection (a) and potentially
18affected sequestration operators or sequestration facilities.
19    Section 65. Applicability of certain tort claims.
20    (a) A private claim shall not be actionable against a
21sequestration operator who is conducting or has conducted
22underground sequestration of carbon dioxide in accordance with
23a valid Class VI well permit unless the claimant proves that
24injection or migration of carbon dioxide (1) constitutes a
25private nuisance in State common law and (2) has caused



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1physical injury to a person, animal, or tangible property.
2    (b) A private claimant shall only be permitted to recover
3money damages under subsection (a) for nonspeculative tangible
5    (c) A private claimant may seek punitive damages in
6accordance with Section 2-604.1 of the Code of Civil Procedure
7only if the sequestration operator knowingly or willfully
8violates the requirements of a Class VI well permit and acts
9with reckless disregard for public safety.
10    Section 70. Certification of project completion.
11    (a) Upon application from a sequestration operator, the
12Department shall consider whether each of the following
13factors is satisfied in determining whether to issue a
14certificate of project completion. The Department shall issue
15the certificate if the Department finds that the sequestration
17        (1) is in compliance with applicable laws governing
18    the sequestration facility;
19        (2) shows that the sequestration facility is
20    reasonably expected to retain the carbon dioxide stored
21    therein;
22        (3) shows that any long-term monitoring wells,
23    equipment, and facilities intended for future use after
24    the closure period are in good condition and retain
25    mechanical integrity;



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1        (4) shows that injection wells have been plugged;
2        (5) shows that equipment and facilities, not including
3    fixed structures and long-term monitoring equipment and
4    wells intended for future use, have been removed; and
5        (6) shows the following with respect to site closure:
6            (A) the sequestration operator has provided a
7        notice of intent for site closure to the applicable
8        underground injection control program;
9            (B) site closure has been authorized by the
10        applicable underground injection control program; and
11            (C) the sequestration operator has provided to the
12        applicable underground injection control program the
13        required site closure report.
14    (b) Not later than 90 days after receiving an application
15from the sequestration operator, the Department shall either:
16        (1) issue a certificate of project completion; or
17        (2) if the Department determines that the application
18    for a certificate of project completion is incomplete,
19    inaccurate, or both, promptly return the application to
20    the sequestration operator with a written explanation of
21    any deficiencies.
22    (c) If the Department returns the application to the
23sequestration operator under subsection (b), the Department
24shall inform the sequestration operator of the right to file a
25corrected application with the Department. Upon receiving any
26corrected application, the Department shall take action on the



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1application in accordance with subsection (b).
2    (d) Upon issuance of a certificate of project completion,
3the sequestration facility and all carbon dioxide stored
4therein are immediately transferred to the State.
5Sequestration facility acquisition by the State under this
6subsection (d) includes all rights and interests in and all
7responsibilities and potential liability other than criminal
8or contractual liability associated with the stored carbon
9dioxide and the sequestration facility, provided, however,
10that liability is not transferred to the State to the extent
11that the Department determines, after notice and hearing,
13        (1) the sequestration operator violated a duty related
14    to the sequestration facility and carbon dioxide stored
15    therein imposed on the sequestration operator by Illinois
16    law or rule or by the applicable underground injection
17    control program that was not remedied prior to approval of
18    site closure and any applicable statutes of limitation
19    have not run and the liability arises out of that
20    violation;
21        (2) the sequestration operator provided deficient or
22    erroneous information that was material and relied upon by
23    the Agency or the Department to support approval of site
24    closure; and
25        (3) there is fluid migration for which the
26    sequestration operator is responsible that causes or



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1    threatens imminent and substantial endangerment to an
2    underground source of drinking water;
3    A sequestration operator may appeal any finding under this
4subsection in a court of competent jurisdiction; and
5    Notwithstanding any other provision of this subsection
6(d), no party may transfer to the State, and the State may not
7accept, any property interests or rights that the party does
8not own or have legal authority to transfer.
9    (e) Unless there is documentation to the contrary, the
10sequestration operator holds title to the carbon dioxide
11injected into and stored in a sequestration facility until and
13        (1) the sequestration operator obtains a certificate
14    of project completion from the Department; or
15        (2) the sequestration operator expressly conveys such
16    title to a third party.
17    Section 75. Preexisting Class VI injection wells. A
18sequestration operator may operate without a sequestration
19facility permit issued by the Department under subparagraph
20(B) of paragraph (1) of subsection (a) of Section 30 if, on or
21before the effective date of this Act, it has either (1)
22obtained a Class VI well permit or (2) applied for a Class VI
23well permit and a Completeness Determination has been issued
24by the United States Environmental Protection Agency and an
25order from the Department to require integration of pore space



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1ownership interests under subsection (b) of Section 25 is not
3    Section 80. Public participation and environmental
5    (a) The Department shall coordinate with the applicable
6underground injection control program to ensure meaningful and
7inclusive public participation procedures for the issuance of
8Class VI well permits and sequestration facility permits.
9    (b) Public participation procedures may include, but are
10not limited to:
11        (1) public notice of the submission of permit
12    applications;
13        (2) public notice of any draft and final permitting
14    actions;
15        (3) an opportunity for submission of public comments;
16        (4) an opportunity for public hearing;
17        (5) publication of a summary and response to public
18    comments; and
19        (6) publication of the administrative record for
20    permits in a format and location that is easily accessible
21    to the affected community.
22    (c) Public participation procedures, including additional
23public participation procedures tailored to communities with
24potential environmental justice concerns, which are completed
25by the applicable underground injection control program, are



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1not required to be separately completed by the Department.
2    (d) In addition to those public participation procedures
3required by the applicable underground injection control
4program, the applicant shall also hold one informational
5meeting in each county where the project will be developed.
6The applicant shall consult with the Agency's Environmental
7Justice Officer on meeting best practices to ensure meaningful
8and inclusive public participation.
9    Section 85. Enhanced recovery. A sequestration facility
10permit shall not authorize the injection of carbon dioxide
11streams for enhanced oil or gas recovery.
12    Section 90. Primacy. The Agency shall not enforce the
13rules in 35 Ill. Adm. Code 730 Subpart H until the United
14States Environmental Protection Agency promulgates final
15approval to Illinois for Class VI injection well primary
16enforcement responsibility (primacy), whereby such rules, as
17may be amended, become the applicable underground injection
18control program for Class VI injection wells in Illinois.
19    Section 95. Liability of sequestered carbon dioxide
20release responders.
21    (a) Notwithstanding any other provision of law, a person
22is not liable for costs or damages that result from action
23taken or omitted to be taken in the course of rendering care,



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1assistance, or advice as directed by a federal or State
2official with responsibility for responding to a carbon
3dioxide release from a sequestration facility.
4    (b) Subsection (a) does not apply:
5        (1) to a responsible party as defined under Section
6    1001 of the U.S. Oil Pollution Act of 1990, Public Law No.
7    101-380;
8        (2) with respect to personal injury or wrongful death;
9    or
10        (3) if such person is grossly negligent or engages in
11    reckless, willful, wanton, or intentional misconduct.
12    Section 100. Rules. The Department shall adopt rules to
13implement this Act within 180 days after the effective date of
14this Act.
15    Section 900. The Illinois Administrative Procedure Act is
16amended by adding Section 5-45.55 as follows:
17    (5 ILCS 100/5-45.55 new)
18    Sec. 5-45.55. Emergency rulemaking; Climate and Landowner
19Protection Act. To provide for the expeditious and timely
20implementation of the Climate and Landowner Protection Act,
21emergency rules implementing the Act may be adopted in
22accordance with Section 5-45 by the Department of Natural
23Resources. The adoption of emergency rules authorized by



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1Section 5-45 and this Section is deemed necessary for the
2public interest, safety and welfare.
3    This Section is repealed one year after the effective date
4of the Climate and Landowner Protection Act.
5    Section 905. The State Finance Act is amended by adding
6Section 5.1015 and 5.1016 as follows:
7    (30 ILCS 105/5.1015 new)
8    Sec. 5.1015. The Carbon Dioxide Sequestration
9Administrative Fund.
10    (30 ILCS 105/5.1016 new)
11    Sec. 5.1016. The Carbon Dioxide Sequestration Long-Term
12Trust Fund.
13    Section 910. Severability. The provisions of this Act are
14severable under Section 1.31 of the Statute on Statutes.
15    Section 999. Effective date. This Act takes effect upon
16becoming law.".