Bill Text: IL HB3093 | 2019-2020 | 101st General Assembly | Introduced

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Bill Title: Amends the Public Utilities Act. In its determination of public convenience and necessity for a proposed pipeline or facility designed or intended to transport crude oil and any alternate locations for such proposed pipeline or facility, requires the Illinois Commerce Commission to consider any evidence presented by a party or other entity that participates in the proceeding regarding the impact of the proposed pipeline or facility on environmental externalities. Provides that "environmental externalities" means benefits or costs, generated as a by-product of an economic activity, that do not accrue to the parties involved in the activity and are benefits or costs that manifest themselves through changes in the physical or biological environment.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Introduced - Dead) 2020-06-23 - Rule 19(b) / Re-referred to Rules Committee [HB3093 Detail]

Download: Illinois-2019-HB3093-Introduced.html

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101ST GENERAL ASSEMBLY State of Illinois 2019 and 2020 HB3093 Introduced , by Rep. Anna Moeller SYNOPSIS AS INTRODUCED:
220 ILCS 5/3-127 new
220 ILCS 5/15-401
Amends the Public Utilities Act. In its determination of public convenience and necessity for a proposed pipeline or facility designed or intended to transport crude oil and any alternate locations for such proposed pipeline or facility, requires the Illinois Commerce Commission to consider any evidence presented by a party or other entity that participates in the proceeding regarding the impact of the proposed pipeline or facility on environmental externalities. Provides that "environmental externalities" means benefits or costs, generated as a by-product of an economic activity, that do not accrue to the parties involved in the activity and are benefits or costs that manifest themselves through changes in the physical or biological environment.
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A BILL FOR
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AN ACT concerning regulation.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Public Utilities Act is amended by changing
Section 15-401 and by adding Section 3-127 as follows:
(220 ILCS 5/3-127 new)
Sec. 3-127. Environmental externalities. "Environmental
externalities" means benefits or costs, generated as a
by-product of an economic activity, that do not accrue to the
parties involved in the activity and are benefits or costs that
manifest themselves through changes in the physical or
biological environment.
(220 ILCS 5/15-401)
Sec. 15-401. Licensing.
(a) No person shall operate as a common carrier by pipeline
unless the person possesses a certificate in good standing
authorizing it to operate as a common carrier by pipeline. No
person shall begin or continue construction of a pipeline or
other facility, other than the repair or replacement of an
existing pipeline or facility, for use in operations as a
common carrier by pipeline unless the person possesses a
certificate in good standing.

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(b) Requirements for issuance. The Commission, after a
hearing, shall grant an application for a certificate
authorizing operations as a common carrier by pipeline, in
whole or in part, to the extent that it finds that the
application was properly filed; a public need for the service
exists; the applicant is fit, willing, and able to provide the
service in compliance with this Act, Commission regulations,
and orders; and the public convenience and necessity requires
issuance of the certificate. Evidence encompassing any of the
factors described in items (1) through (10) (9) of this
subsection (b) that is submitted by the applicant, any other
party, or the Commission's staff shall also be considered by
the Commission in determining whether a public need for the
service exists under either current or expected conditions. The
changes in this subsection (b) are intended to be confirmatory
of existing law.
In its determination of public convenience and necessity
for a proposed pipeline or facility designed or intended to
transport crude oil and any alternate locations for such
proposed pipeline or facility, the Commission shall consider,
but not be limited to, the following:
(1) any evidence presented by the Illinois
Environmental Protection Agency regarding the
environmental impact of the proposed pipeline or other
facility;
(2) any evidence presented by the Illinois Department

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of Transportation regarding the impact of the proposed
pipeline or facility on traffic safety, road construction,
or other transportation issues;
(3) any evidence presented by the Department of Natural
Resources regarding the impact of the proposed pipeline or
facility on any conservation areas, forest preserves,
wildlife preserves, wetlands, or any other natural
resource;
(4) any evidence of the effect of the pipeline upon the
economy, infrastructure, and public safety presented by
local governmental units that will be affected by the
proposed pipeline or facility;
(5) any evidence of the effect of the pipeline upon
property values presented by property owners who will be
affected by the proposed pipeline or facility, provided
that the Commission need not hear evidence as to the actual
valuation of property such as that as would be presented to
and determined by the courts under the Eminent Domain Act;
(6) any evidence presented by the Department of
Commerce and Economic Opportunity regarding the current
and future local, State-wide, or regional economic effect,
direct or indirect, of the proposed pipeline or facility
including, but not limited to, property values, employment
rates, and residential and business development;
(7) any evidence addressing the factors described in
items (1) through (9) of this subsection (b) or other

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relevant factors that is presented by any other State
agency, the applicant, a party, or other entity that
participates in the proceeding, including evidence
presented by the Commission's staff;
(8) any evidence presented by a State agency or unit of
State or local government as to the current and future
national, State-wide, or regional economic effects of the
proposed pipeline, direct or indirect, as they affect
residents or businesses in Illinois, including, but not
limited to, such impacts as the ability of manufacturers in
Illinois to meet public demand for related services and
products and to compete in the national and regional
economies, improved access of suppliers to regional and
national shipping grids, the ability of the State to access
funds made available for energy infrastructure by the
federal government, mitigation of foreseeable spikes in
price affecting Illinois residents or businesses due to
sudden changes in supply or transportation capacity, and
the likelihood that the proposed construction will
substantially encourage related investment in the State's
energy infrastructure and the creation of energy related
jobs; and
(9) any evidence presented by any State or federal
governmental entity as to how the proposed pipeline or
facility will affect the security, stability, and
reliability of energy in the State or in the region; and .

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(10) any evidence presented by a party or other entity
that participates in the proceeding regarding the impact of
the proposed pipeline or facility on environmental
externalities.
In its written order, the Commission shall address all of
the evidence presented, and if the order is contrary to any of
the evidence, the Commission shall state the reasons for its
determination with regard to that evidence.
(c) An application filed pursuant to this Section may
request either that the Commission review and approve a
specific route for a pipeline, or that the Commission review
and approve a project route width that identifies the areas in
which the pipeline would be located, with such width ranging
from the minimum width required for a pipeline right-of-way up
to 500 feet in width. The purpose for allowing the option of
review and approval of a project route width is to provide
increased flexibility during the construction process to
accommodate specific landowner requests, avoid environmentally
sensitive areas, or address special environmental permitting
requirements.
(d) A common carrier by pipeline may request any other
approvals as may be needed from the Commission for completion
of the pipeline under Article VIII or any other Article or
Section of this Act at the same time, and as part of the same
application, as its request for a certificate of good standing
under this Section. The Commission's rules shall ensure that

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notice of such a consolidated application is provided within 30
days after filing to the landowners along a proposed project
route, or to the potentially affected landowners within a
proposed project route width, using the notification
procedures set forth in the Commission's rules. If a
consolidated application is submitted, then the requests shall
be heard on a consolidated basis and a decision on all issues
shall be entered within the time frames stated in subsection
(e) of this Section. In such a consolidated proceeding, the
Commission may consider evidence relating to the same factors
identified in items (1) through (9) of subsection (b) of this
Section in granting authority under Section 8-503 of this Act.
If the Commission grants approval of a project route width as
opposed to a specific project route, then the common carrier by
pipeline must, as it finalizes the actual pipeline alignment
within the project route width, file its final list of affected
landowners with the Commission at least 14 days in advance of
beginning construction on any tract within the project route
width and also provide the Commission with at least 14 days
notice before filing a complaint for eminent domain in the
circuit court with regard to any tract within the project route
width.
(e) The Commission shall make its determination on any
application filed pursuant to this Section and issue its final
order within one year after the date that the application is
filed unless an extension is granted as provided in this

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subsection (e). The Commission may extend the one-year time
period for issuing a final order on an application filed
pursuant to this Section up to an additional 6 months if it
finds, following the filing of initial testimony by the parties
to the proceeding, that due to the number of affected
landowners and other parties in the proceeding and the
complexity of the contested issues before it, additional time
is needed to ensure a complete review of the evidence. If an
extension is granted, then the schedule for the proceeding
shall not be further extended beyond this 6-month period, and
the Commission shall issue its final order within the 6-month
extension period. The Commission shall also have the power to
establish an expedited schedule for making its determination on
an application filed pursuant to this Section in less than one
year if it finds that the public interest requires the setting
of such an expedited schedule.
(f) Within 6 months after the Commission's entry of an
order approving either a specific route or a project route
width under this Section, the common carrier by pipeline that
receives such order may file supplemental applications for
minor route deviations outside the approved project route
width, allowing for additions or changes to the approved route
to address environmental concerns encountered during
construction or to accommodate landowner requests. Notice of a
supplemental application shall be provided to any State agency
that appeared in the original proceeding or immediately

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affected landowner at the time such supplemental application is
filed. The route deviations shall be approved by the Commission
within 45 days, unless a written objection is filed to the
supplemental application within 20 days after the date such
supplemental application is filed. Hearings on any such
supplemental application shall be limited to the
reasonableness of the specific variance proposed, and the
issues of public need or public convenience or necessity for
the project or fitness of the applicant shall not be reopened
in the supplemental proceeding.
(g) The rules of the Commission may include additional
options for expediting the issuance of permits and certificates
under this Section. Such rules may provide that, in the event
that an applicant elects to use an option provided for in such
rules; (1) the applicant must request the use of the expedited
process at the time of filing its application for a license or
permit with the Commission; (2) the Commission may engage
experts and procure additional administrative resources that
are reasonably necessary for implementing the expedited
process; and (3) the applicant must bear any additional costs
incurred by the Commission as a result of the applicant's use
of such expedited process.
(h) Duties and obligations of common carriers by pipeline.
Each common carrier by pipeline shall provide adequate service
to the public at reasonable rates and without discrimination.
(Source: P.A. 97-405, eff. 8-16-11.)