415 ILCS 5/ Environmental Protection Act.

(415 ILCS 5/Tit. XVIII heading) TITLE XVIII: CARBON CAPTURE AND SEQUESTRATION (Source: P.A. 103-651, eff. 7-18-24.)

(415 ILCS 5/59)

Sec. 59. Definitions. As used in this Title:

"Carbon dioxide capture project" mean a project or facility that:

(1) uses equipment to capture a significant quantity of carbon dioxide directly from the ambient air or uses a process to separate carbon dioxide from industrial or energy-related sources, other than oil or gas production from a well; and

(2) produces a concentrated fluid of carbon dioxide.

"Carbon dioxide stream" means carbon dioxide, any incidental associated substances derived from the source materials and process of producing or capturing carbon dioxide, and any substance added to the stream to enable or improve the injection process or the detection of a leak or rupture.

"Carbon sequestration activity" means the injection of one or more carbon dioxide streams into underground geologic formations under at least one Class VI well permit for long-term sequestration.

"Criteria pollutants" means the 6 pollutants for which the United States Environmental Protection Agency has set National Ambient Air Quality Standards under Section 109 of the Clean Air Act, together with recognized precursors to those pollutants.

"Project labor agreement" means a prehire collective bargaining agreement that covers all terms and conditions of employment on a specific construction project and must include the following:

(1) provisions establishing the minimum hourly wage for each class of labor organization employee;

(2) provisions establishing the benefits and other compensation for each class of labor organization employee;

(3) provisions establishing that no strike or disputes will be engaged in by the labor organization employees;

(4) provisions establishing that no lockout or disputes will be engaged in by the general contractor building the project; and

(5) provisions for minorities and women, as defined under the Business Enterprise for Minorities, Women, and Persons with Disabilities Act, setting forth goals for apprenticeship hours to be performed by minorities and women and setting forth goals for total hours to be performed by underrepresented minorities and women.

"Project labor agreement" includes other terms and conditions a labor organization or general contractor building the project deems necessary.

"Sequestration facility" means the carbon dioxide sequestration reservoir, underground equipment, including, but not limited to, well penetrations, and surface facilities and equipment used or proposed to be used in a carbon sequestration activity. "Sequestration facility" includes each injection well and equipment used to connect surface activities to the carbon dioxide sequestration reservoir and underground equipment. "Sequestration facility" does not include pipelines used to transport carbon dioxide to a sequestration facility.

(Source: P.A. 103-651, eff. 7-18-24.)

(415 ILCS 5/59.1)

Sec. 59.1. Carbon capture permit requirements. For air construction permit applications for carbon dioxide capture projects at existing sources submitted on or after the effective date of this amendatory Act of the 103rd General Assembly, no permit may be issued unless all of the following requirements are met:

(1) The permit applicant demonstrates that there will be no net increase in the individual allowable potential annual criteria pollutant emissions at the source. If the Agency determines that it is technically infeasible for an applicant to demonstrate that there will be no net increase in the individual allowable potential annual criteria pollutant emissions at the source, the Agency shall allow an alternative demonstration.

(2) The Agency has complied with the public participation requirements under 35 Ill. Adm. Code 252.

(3) The permit applicant submits to the Agency in its permit application, a Greenhouse Gas Inventory Analysis, as set forth in guidance from the United States Environmental Protection Agency, that includes all emissions at the stack or emissions source from which carbon dioxide is captured and a demonstration that the total greenhouse gas emissions associated with capture, including, but not limited to, (i) the emissions at the stack or emissions source from which the carbon dioxide is captured, (ii) the additional emissions associated with additional electricity generated, whether on-site or off-site, used to power any capture equipment, and (iii) any increased emissions necessary for the operation of the capture facility as compared to before the installation and operation of the capture equipment at the facility, do not exceed the total amount of greenhouse gas emissions captured. This comparison shall be made on an annual basis, projected across the proposed life span of the capture project.

(4) The permit applicant provides a water impact assessment report. The report must have been submitted to Department of Natural Resources and to the Soil and Water Conservation District in the county in which the project will be constructed. The report shall identify the following:

(A) each water source to be used by the project;

(B) the pumping method to be used by the project;

(C) the maximum and expected average daily pumping rates for the pumps used by the project;

(D) the impacts to each water source used by the project, such as aquifer drawdown or river reductions; and

(E) a detailed assessment of the impact on water users near the area of impact.

The water impact assessment shall consider the water impacts (i) immediately following the project's initial operations, (ii) at the end of the project's expected operational life, and (iii) during a drought or other similar event.

The permit applicant shall submit a certification to the Agency that the applicant has submitted its initial water use impact study and the applicant's ongoing water usage to the Department of Natural Resources. This requirement may be satisfied by submitting to the Agency copies of documents provided to the United States Environmental Protection Agency in accordance with 40 CFR 146.82 if the applicant satisfies the requirements of this Section.

(Source: P.A. 103-651, eff. 7-18-24.)

(415 ILCS 5/59.2)

Sec. 59.2. Report on minimum carbon capture standards and the deployment of carbon capture and sequestration technology. By December 1, 2028, the Agency, in consultation with Illinois Emergency Management Agency and Office of Homeland Security, the Illinois Commerce Commission, the Commission on Environmental Justice, and the Department of Natural Resources, shall submit to the Governor and General Assembly, a report that reviews the progress on the implementation of carbon dioxide capture, transport, and storage projects in this State. The Agency may also obtain outside consultants to assist with the report. The report shall include, at minimum:

(1) a review of federal and other State statutory or regulatory actions to establish and implement a minimum carbon capture efficiency rate at the stack or emission point;

(2) a review of active and proposed capture projects, including the types of technology and capture rates used by various industry subsectors to capture and store carbon;

(3) an assessment of the technical and economic feasibility of carbon capture in various industries and various rates of capture; and

(4) an environmental justice analysis which includes, but is not limited to:

(A) an assessment of capture, transport, and sequestration projects that present potential impacts on environmental justice communities and economically disadvantaged rural communities;

(B) how public participation processes associated with the permitting of carbon capture, transport, and storage projects provide transparency and meaningful participation for environmental justice communities, rural communities, minority populations, low-income populations, tribes, or indigenous peoples; and

(C) options for State agencies and decision-makers to improve environmental, public health, and economic protections for environmental justice communities and economically disadvantaged rural communities in permitting and regulatory enforcement of permit provisions of carbon capture, transport, and sequestration proposals.

(Source: P.A. 103-651, eff. 7-18-24.)

(415 ILCS 5/59.3)

Sec. 59.3. Minimum carbon dioxide capture efficiency rulemaking authority. The Agency may propose, and the Board may adopt, rules to establish a minimum carbon capture efficiency rate for carbon capture projects. The Agency may propose, and the Board may adopt, a minimum carbon capture efficiency rate that is applicable to all carbon capture projects or individual efficiencies applicable to distinct industries.

(Source: P.A. 103-651, eff. 7-18-24.)

(415 ILCS 5/59.4)

Sec. 59.4. Report on the status and impact of carbon capture and sequestration. Beginning July 1, 2029, and every 5 years thereafter, the Agency shall submit a report to the Governor and General Assembly that includes, for each carbon dioxide capture project in this State:

(1) the amount of carbon dioxide captured on an annual basis;

(2) the means for transporting the carbon dioxide to a sequestration or utilization facility;

(3) the location of the sequestration or utilization facility used;

(4) the electrical power consumption of the carbon dioxide capture equipment; and

(5) the generation source or sources providing electrical power for the carbon dioxide capture equipment and the emissions of CO2 and criteria pollutants of the generation source or sources.

(Source: P.A. 103-651, eff. 7-18-24.)

(415 ILCS 5/59.5)

Sec. 59.5. Prohibitions.

(a) No person shall conduct a carbon sequestration activity without a permit issued by the Agency under Section 59.6. This prohibition does not apply to any carbon sequestration activity in existence and permitted by the United States Environmental Protection Agency on or before the effective date of this amendatory Act of the 103rd General Assembly or to any Class VI well for which (1) a Class VI well permit has been filed with the United States Environmental Protection Agency and a completeness determination had been received prior to January 1, 2023, and (2) the sequestration activity will occur on a contiguous property with common ownership where the carbon dioxide is generated, captured, and injected.

(b) No person shall conduct a carbon sequestration activity in violation of this Act.

(c) No person shall conduct a carbon sequestration activity in violation of any applicable rules adopted by the Pollution Control Board.

(d) No person shall conduct a carbon sequestration activity in violation of a permit issued by the Agency under this Act.

(e) No person shall fail to submit reports required by this Act or required by a permit issued by the Agency under this Act.

(f) No person shall conduct a carbon sequestration activity without obtaining an order for integration of pore space from the Department of Natural Resources, if applicable.

(Source: P.A. 103-651, eff. 7-18-24.)

(415 ILCS 5/59.6)

Sec. 59.6. Sequestration permit; application contents. An application to obtain a carbon sequestration permit under this Act shall contain, at a minimum, the following:

(1) A map and accompanying description that clearly identifies the location of all carbon sequestration activities for which a permit is sought.

(2) A map and accompanying description that clearly identifies the properties overlaying the carbon sequestration activity.

(3) Copies of any permit and related application materials submitted to or issued by the United States Environmental Protection Agency in accordance with 40 CFR 146.82.

(4) A report describing air and soil gas baseline conditions at properties potentially impacted by a release from the carbon sequestration activity to determine background levels of constituents of concern present before the commencement of the carbon sequestration activity for which a permit is sought. The report must:

(A) contain sampling data generated within 180 calendar days prior to the submission of the permit application;

(B) identify the constituents of concern for which monitoring was conducted and the method for selecting those constituents of concern;

(C) use and describe the sampling methodology employed to collect and test air and soil samples in a manner consistent with standards established by a national laboratory accreditation body;

(D) identify the accredited laboratory used to conduct necessary testing; and

(E) include the sampling results for the identified constituents of concern.

(5) The permit application must include an air monitoring plan containing, at a minimum, the following elements:

(A) sufficient surface and near-surface monitoring points based on potential risks of atmospheric carbon dioxide and any other identified constituents of concern attributable to the carbon sequestration activity to identify the nature and extent any release of carbon dioxide or other constituents of concern, the source of the release, and the estimated volume of the release;

(B) a monitoring frequency designed to evaluate the nature and extent of any release of carbon dioxide or other constituents of concern, the source of the release, and the estimated volume of the release;

(C) a description of the monitoring network components and methods, including sampling and equipment quality assurance methods, that comply with applicable testing and laboratory standards, established by a national laboratory accreditation body;

(D) confirmation monitoring protocols to address any monitoring results that reflect a statistically significant increase over background levels; and

(E) development and submission of quarterly air monitoring reports to the Agency.

This requirement may be satisfied by the submission of copies of documents provided to the United States Environmental Protection Agency in accordance with 40 CFR 146.82 if the applicant satisfies the requirements of this Section.

(6) The permit application must include a soil gas monitoring plan containing, at a minimum, the following elements:

(A) sufficient soil sampling points and sampling depths to identify the nature and extent of any release of carbon dioxide or other constituents of concern, the source of the release, and the estimated volume of the release;

(B) a monitoring frequency designed to identify the nature and extent of any release of carbon dioxide or other constituents of concern, the source of the release, and the estimated volume of the release;

(C) a description of the monitoring network components and methods, including sampling and equipment quality assurance methods, that comply with applicable testing and laboratory standards, established by a national laboratory accreditation body;

(D) confirmation monitoring protocols to address any monitoring results that reflect a statistically significant increase over background levels; and

(E) development and submission of quarterly soil gas monitoring reports to the Agency.

This requirement may be satisfied by the submission of copies of documents provided to the United States Environmental Protection Agency in accordance with 40 CFR 146.82 if the applicant satisfies the requirements of this Section.

(7) The permit application must include an emergency response plan designed to respond to and minimize the immediate threat to human health and the environment from a release from the carbon sequestration activity. The plan must have been submitted to the Illinois Emergency Management Agency and Office of Homeland Security for review and input on the emergency preparedness activities prior to submitting in a permit application to the Agency. Proof of this submission must be included with the permit application. The plan must:

(A) identify the resources and infrastructure near carbon sequestration activity;

(B) identify potential risk scenarios that would result in the need to trigger a response plan. Potential risk scenarios must include, at a minimum:

(i) injection or monitoring well integrity failure;

(ii) injection well monitoring equipment failure;

(iii) fluid or carbon dioxide release;

(iv) natural disaster; or

(v) induced or natural seismic event;

(C) describe response actions necessary to prepare for and address each risk scenario identified in the emergency response plan. These actions should include, but are not limited to, identification and maintenance of sensors and alarms to detect carbon dioxide leaks, an internal and external communications plan accounting for external communications to the public in the primary languages of potentially impacted populations, a training program that includes regular training for employees and emergency responders on how to handle carbon dioxide, public safety, and evacuation plans, and post-incident analysis and reporting procedures;

(D) identify personnel and equipment necessary to comprehensively address the emergency;

(E) describe emergency notification procedures, including notifications to and coordination with State and local emergency response agencies;

(F) describe the process for determining the nature and extent of any injuries or private or public property damage attributable to the release of carbon dioxide;

(G) include an air and soil gas monitoring plan designed to determine the nature and extent of any air or soil gas impacts attributable to a release from the permitted carbon sequestration activity; and

(H) provide any additional information or action plans requested by the Agency or the Illinois Emergency Management Agency and Office of Homeland Security.

This requirement may be satisfied by the submission of copies of documents provided to the United States Environmental Protection Agency in accordance with 40 CFR 146.82 if the applicant satisfies the requirements of this Section.

(8) The permit applicant must include a water impact assessment report. The report must have been submitted to the Department of Natural Resources and to the Soil and Water Conservation District in the county in which the project will be constructed. The report shall identify the following:

(A) each water source to be used by the project;

(B) the pumping method to be used by the project;

(C) the maximum and expected average daily pumping rates for the pumps used by the project;

(D) the impacts to each water source, such as aquifer drawdown or river reductions; and

(E) a detailed assessment of the impact of the project on water users near the area of impact.

The impact assessment shall consider the water impacts (i) immediately following the project's initial operations, (ii) at the end of the project's expected operational life, and (iii) during a drought or other similar event.

The permit applicant shall submit a certification to the Agency from the Department of Natural Resources that the applicant has submitted its initial water use impact study and is submitting to the Department of Resources the applicant's ongoing water usage. This requirement may be satisfied by the submission of copies of documents provided to the United States Environmental Protection Agency in accordance with 40 CFR 146.82 if the applicant satisfies the requirements of this Section.

(9) The permit application must include a remedial action plan designed to address the air and soil impacts of a release from the carbon sequestration activity. The remedial action plan must, at a minimum:

(A) identify all necessary remedial actions to address air and soil impacts from a release from the sequestration activity, consistent with Title XVII. Soil impacts from a release of carbon dioxide must be addressed through (i) the installation of an appropriate treatment system designed to remove contaminants of concerns emplaced by, or the increase in any contaminants of concern that result from, the carbon sequestration activity or (ii) the removal of all impacted soils and transportation of those soils to an appropriately permitted facility for treatment, storage or disposal;

(B) include a demonstration of the performance, reliability, ease of implementation, and potential impacts, including safety, cross-media impacts, and control of exposure of any residual contamination, of the selected corrective actions; and

(C) identify a reasonable timeline and describe the procedure for implementation and completion of the remedial action plan, consistent with Title XVII, following a release attributable to the sequestration activity.

(10) The permit application must include a closure plan that addresses the post-injection site care and closure. The closure plan must include:

(A) the pressure differential between preinjection and predicted post-injection pressures at all injection zones;

(B) the predicted position of the carbon dioxide plume and associated pressure front at site closure;

(C) a description of post-injection monitoring locations, methods, and proposed frequency;

(D) a proposed schedule for submitting post-injection site care monitoring results to the Agency; and

(E) the duration of the post-injection site care period that ensures nonendangerment of groundwater, as specified in 35 Ill. Adm. Code 620, or to human health or the environment. The post-injection site care period shall be no less than 30 years from the last date of injection.

This requirement may be satisfied by the submission of copies of documents provided to the United States Environmental Protection Agency in accordance with 40 CFR 146.93 if the applicant satisfies the requirements of this Section.

(11) The permit application must contain a written estimate of the cost of all air monitoring, soil gas monitoring, emergency response, remedial action, and closure activities required by this Section.

The cost estimate must be calculated in terms of reasonable actual remedial, construction, maintenance, and labor costs that the Agency would bear if contracting to complete the actions set forth in an air monitoring, soil gas monitoring, emergency response, remedial action, and closure plans set forth in an Agency-approved permit.

The owner or operator must revise the cost estimate whenever there is a change in the air monitoring, soil gas monitoring, emergency response, remedial action, or closure plans that would result in an increase to the cost estimate.

The owner or operator must annually revise the cost estimate to adjust for inflation.

Revisions to the cost estimate must be submitted to the Agency as a permit modification.

(12) Proof that the applicant has financial assurance sufficient to satisfy the requirements set forth in Section 59.10.

(13) Proof of insurance that complies with the requirements set forth in Section 59.11.

(Source: P.A. 103-651, eff. 7-18-24.)

(415 ILCS 5/59.7)

Sec. 59.7. Sequestration permit application fee. Upon submission of a sequestration facility permit application, and in addition to any other fees required by law, the sequestration operator shall remit to the Agency an initial, one-time permit application fee of $60,000. One-third of each sequestration facility permit application fee shall be deposited into the Water Resources Fund, the Emergency Planning and Training Fund, and the Carbon Dioxide Sequestration Administrative Fund.

(Source: P.A. 103-651, eff. 7-18-24.)

(415 ILCS 5/59.8)

Sec. 59.8. Public participation. Prior to issuing a permit for carbon sequestration activity, the Agency shall issue a public notice of the permit application and draft permit. The public notice shall include a link to a website where copies of the permit application or draft permit, and all included attachments that are not protected under the Freedom of Information Act are posted, and shall provide information concerning the comment period on the permit application or draft permit and instructions for how to request a hearing on the permit application or draft permit. The Agency shall provide an opportunity for public comments on the permit application or draft permit, and shall hold a public hearing upon request. The Agency will make copies of all comments received available on its website and consider those comments when rendering its permit decision.

(Source: P.A. 103-651, eff. 7-18-24.)

(415 ILCS 5/59.9)

Sec. 59.9. Closure. The owner or operator of a carbon sequestration activity permitted in accordance with this Act shall monitor the site during the post-injection site care period, which shall be no less than 30 years after the last date of injection, as well as following certification of closure by United States Environmental Protection Act to show the position of the carbon dioxide and pressure front to ensure it does not pose an endangerment to groundwater, as specified in 35 Ill. Adm. Code 620, or to human health or the environment, unless and until the Agency certifies that a carbon sequestration facility is closed. Air and soil gas monitoring required by a carbon sequestration activity permit issued by the Agency must continue until the Agency certifies the carbon sequestration facility as closed. The Agency shall certify a carbon sequestration facility as closed if:

(1) the owner or operator submits to the Agency a copy of a closure certification issued for the carbon sequestration facility in accordance with 40 CFR 146.93; and

(2) the owner or operator demonstrates to the Agency that no additional air or soil gas monitoring is needed to ensure the carbon sequestration facility does not pose an endangerment to groundwater, as specified in 35 Ill. Adm. Code 620, or to human health or the environment.

This demonstration must include location-specific monitoring data. The certification of closure does not relieve an operator of any liabilities from the carbon sequestration activity or carbon sequestration facility.

(Source: P.A. 103-651, eff. 7-18-24.)

(415 ILCS 5/59.10)

Sec. 59.10. Financial assurance.

(a) The owner or operator of a sequestration activity permitted in accordance with this Act shall maintain financial assurance in an amount equal to or greater than the cost estimate calculated in accordance with paragraph (11) of Section 59.6.

(b) The owner or operator of the sequestration activity must use one or a combination of the following mechanisms as financial assurance:

(1) a fully funded trust fund;

(2) a surety bond guaranteeing payment;

(3) a surety bond guaranteeing performance; or

(4) an irrevocable letter of credit.

(c) The financial assurance mechanism must identify the Agency as the sole beneficiary.

(d) The financial assurance mechanism shall be on forms adopted by the Agency. The Agency must adopt these forms within 90 days of the date of the effective date of this amendatory Act of the 103rd General Assembly.

(e) The Agency shall release a trustee, surety, or other financial institution holding a financial assurance mechanism when:

(1) the owner or operator of a carbon sequestration activity substitutes alternative financial assurance such that the total financial assurance for the site is equal to or greater than the current cost estimate, without counting the amounts to be released; or

(2) the Agency determines that the owner or operator is no longer required to maintain a permit.

(f) The Agency may enter into contracts and agreements it deems necessary to carry out the purposes of this Section, including, but not limited to, interagency agreements with the Illinois State Geological Survey, the Department of Natural Resources, or other agencies of the State. Neither the State nor any State employee shall be liable for any damages or injuries arising out of or resulting from any action taken under paragraph (11) of Section 59.6.

(g) The Agency may order that a permit holder modify the financial assurance or order that proceeds from financial assurance be applied to the remedial action at or closure of an injection site. The Agency may pursue legal action in any court of competent jurisdiction to enforce its rights under financial instruments used to provide the financial assurance required under Section 59.10.

(h) An owner or operator of a carbon sequestration activity permitted in accordance with this Act that has a closure plan approved by United States Environmental Protection Agency in accordance with 40 CFR 146.93 may satisfy the financial assurance requirements for any portion of the cost estimates for closure costs required by the Agency by submitting to the Agency true copies of the financial assurance mechanism required by 40 CFR 146.85, if those mechanisms are compliant with Section 59.10.

(Source: P.A. 103-651, eff. 7-18-24.)

(415 ILCS 5/59.11)

Sec. 59.11. Insurance.

(a) The owner or operator of a carbon sequestration facility permitted in accordance with this Act shall maintain insurance to cover wrongful death, bodily injuries, property damages, and public or private losses related to a release from the carbon sequestration facility from an insurer holding at least an A- rating by an AM Best or equivalent credit rating agency. Such insurance shall be in an amount of at least $25,000,000.

(b) The owner or operator of a carbon sequestration activity permitted in accordance with this Act must maintain insurance required by this Section throughout the period during which carbon dioxide is injected into the sequestration site, throughout the post-injection time frame, and until the Agency certifies that the carbon sequestration facility is closed.

(c) The insurance policy must provide that the insurer may not cancel or terminate, except for failure to pay the premium.

(d) The insurance policy must allow for assignment to a successor owner or operator. The insurer shall not unreasonably withhold consent to assignment of the insurance policy.

(Source: P.A. 103-651, eff. 7-18-24.)

(415 ILCS 5/59.12)

Sec. 59.12. Ownership of carbon dioxide; liability.

(a) The owner or operator of a sequestration activity permitted in accordance with this Act may be subject to liability for any and all damage, including, but not limited to, wrongful death, bodily injuries, or tangible property damages, caused by a release attributable to the sequestration activity, including, but not limited to, damage caused by carbon dioxide or other fluids released from the sequestration facility, regardless of who holds title to the carbon dioxide, the pore space, or the surface estate.

Liability for damage caused by a release attributable to the sequestration activity that is within a sequestration facility or otherwise within a sequestration operator's control, including carbon dioxide being transferred from a pipeline to the injection well, may be joint and several with a third party adjudicated to have caused or contributed to such damage.

A claim of subsurface trespass shall not be actionable against an owner of operator of a sequestration facility conducting carbon sequestration activity in accordance with a valid Class VI permit and a permit issued by the Agency for a sequestration facility, unless the claimant proves that injection or migration of carbon dioxide:

(1) substantially interferes with the claimant's reasonable use and enjoyment of their real property; or

(2) has caused wrongful death or direct physical injury to a person, an animal, or tangible property.

The State shall not be liable for any damage caused by or attributable to the sequestration activity.

(b) The owner or operator of a sequestration activity permitted in accordance with this Act is liable for any and all damage that may result from equipment associated with carbon sequestration, including, but not limited to, operation of the equipment. Liability for harms or damage resulting from equipment associated with carbon sequestration, including equipment used to transfer carbon dioxide from the pipeline to the injection well, may be joint and several with a third party adjudicated to have caused or contributed to such damage.

(c) Title to carbon dioxide sequestered in this State shall be vested in the operator of the sequestration facility. Sequestered carbon dioxide is a separate property independent of the sequestration pore space.

(Source: P.A. 103-651, eff. 7-18-24.)

(415 ILCS 5/59.13)

Sec. 59.13. Carbon Sequestration Long-Term Trust Fund. The Carbon Dioxide Sequestration Long-Term Trust Fund is hereby created as a State trust fund in the State treasury. The Fund may receive deposits of moneys made available from any source. All moneys in the Fund are to be invested and reinvested by the State Treasurer. All interest accruing from these investments shall be deposited into the Fund to be used under the provisions of this Section. Moneys in the Fund may be used by the Agency to cover costs incurred to:

(1) take any remedial or corrective action necessary to protect human health and the environment from releases, or threatened releases, from a sequestration facility;

(2) monitor, inspect, or take other action if the sequestration operator abandons a sequestration facility or injection site, or fails to maintain its obligations under this Act;

(3) compensate any person suffering any damages or losses to a person or property caused by a release from a sequestration facility or carbon dioxide pipeline who is not otherwise compensated from the sequestration operator; or

(4) any other applicable costs under the Act.

Nothing in this Section relieves a sequestration operator from its obligations under this Act, from its liability under Section 59.12, or its obligations to maintain insurance and financial assurances under Sections 59.10 and 59.11.

(Source: P.A. 103-651, eff. 7-18-24.)

(415 ILCS 5/59.14)

Sec. 59.14. Water Resources Fund. The Water Resources Fund is hereby created as a special fund in the State treasury to be administered by the Department of Natural Resources. The Fund shall be used by the Department of Natural Resources for administrative costs under obligations under the Water Use Act of 1983, the Environmental Protection Act, or related statutes, including, but not limited to, reviewing water use plans and providing technical assistance to entities for water resource planning.

(Source: P.A. 103-651, eff. 7-18-24.)

(415 ILCS 5/59.15)

Sec. 59.15. Environmental Justice Grant Fund. The Environmental Justice Grant Fund is hereby created as a special fund in the State treasury to be administered by the Agency. The Fund shall be used by the Agency to make grants to eligible entities, including, but not limited to, units of local government, community-based nonprofits, and eligible organizations representing areas of environmental justice concern, to fund environmental projects benefiting areas of the State that are disproportionately burdened by environmental harms. Eligible projects include, but are not limited to, water infrastructure improvements, energy efficiency projects, and transportation decarbonization projects.

(Source: P.A. 103-651, eff. 7-18-24.)

(415 ILCS 5/59.16)

Sec. 59.16. Carbon Dioxide Sequestration Administrative Fund. The Carbon Dioxide Sequestration Administrative Fund is hereby created as a special fund within the State treasury to be administered by the Agency. Moneys in the fund may be used:

(1) for Agency administrative costs incurred for the regulation and oversight of sequestration facilities during their construction, operation, and post-injection phases; and

(2) to transfer moneys to funds outlined in Sections 59.13, 59.14, and 59.15 for the purpose of implementing and enforcing the Act.

The Fund may receive deposits of moneys made available from any source, including, but not limited to, fees, fines, and penalties collected under this Act, investment income, and moneys deposited or transferred into the Fund.

(Source: P.A. 103-651, eff. 7-18-24.)

(415 ILCS 5/59.17)

Sec. 59.17. Sequestration annual tonnage fee.

(a) Beginning July 1, 2025, and each July 1 thereafter, each sequestration operator shall report to the Agency the tons of carbon dioxide injected in the prior 12 months.

(b) If the sequestration operator does not possess a project labor agreement, the sequestration operator shall be assessed a per-ton sequestration fee of $0.62.

(c) If the sequestration operator does possess a project labor agreement, the sequestration operator shall be assessed a per-ton sequestration fee of $0.31.

(d) The fee assessed to the sequestration operator under subsection (b) shall be reduced to $0.31 for every ton of carbon dioxide injected into a sequestration facility in that fiscal year if the sequestration operator successfully demonstrates to the Department that the following types of construction and maintenance were conducted in the State during that fiscal year by the sequestration operator and were performed by contractors and subcontractors signatory to a project labor agreement used by the building and construction trades council with relevant geographic jurisdiction:

(1) construction and maintenance of equipment associated with the capture of carbon dioxide, including, but not limited to, all clearing, site preparation, concrete, equipment, and appurtenance installation;

(2) construction and maintenance of carbon dioxide pipelines used to transport carbon dioxide streams to the sequestration facility, including, but not limited to, all clearing, site preparation, and site remediation. For purposes of this paragraph (2), a national multi-craft project labor agreement governing pipeline construction and maintenance used in the performance of the work described in this subsection shall satisfy the project labor agreement requirement;

(3) construction and maintenance of compressor stations used to assist in the transport of carbon dioxide streams via carbon dioxide pipeline, including, but not limited to, all clearing, site preparation, concrete, equipment, and appurtenance installation; and

(4) construction of carbon dioxide injection wells used at the sequestration facility, including, but not limited to, all clearing, site preparation, drilling, distribution piping, concrete, equipment, and appurtenance installation.

(e) Sequestration fees shall be deposited into the Carbon Dioxide Sequestration Administrative Fund.

(f) The per-ton fee for carbon dioxide injected shall be increased by an amount equal to the percentage increase, if any, in the Consumer Price Index for All Urban Consumers for all items published by the United States Department of Labor for the 12 months ending in March of the year in which the increase takes place. The rate shall be rounded to the nearest one-hundredth of one cent.

(g) For the fiscal year beginning July 1, 2025, and each fiscal year thereafter, at the direction of the Agency, in consultation with the Illinois Emergency Management Agency and Office of Homeland Security, and the Department of Natural Resources, the State Comptroller shall direct and the State Treasurer shall transfer from the Carbon Dioxide Sequestration Administrative Fund the following percentages of the amounts collected under this Act by the Agency during the previous fiscal year:

(1) 2% to the Water Resources Fund;

(2) 6% to the Oil and Gas Resource Management Fund;

(3) 20% to the Emergency Planning and Training Fund;

(4) 28% to the Carbon Dioxide Sequestration Long-Term Trust Fund;

(5) 10% to the General Revenue Fund; and

(6) 24% to the Environmental Justice Grant Fund.

(Source: P.A. 103-651, eff. 7-18-24.)