Bill Text: IL HB3643 | 2017-2018 | 100th General Assembly | Introduced

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Bill Title: Amends the Public Utilities Act. Provides that the term "public utility" does not include pipeline companies that have a demonstrated history of not acting in the interest of public convenience and necessity in Illinois. Provides that 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 any evidence or externality presented by a party or other entity participating in the proceeding.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Failed) 2019-01-08 - Session Sine Die [HB3643 Detail]

Download: Illinois-2017-HB3643-Introduced.html

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100TH GENERAL ASSEMBLY State of Illinois 2017 and 2018 HB3643 Introduced , by Rep. Anna Moeller SYNOPSIS AS INTRODUCED:
220 ILCS 5/3-105 from Ch. 111 2/3, par. 3-105
220 ILCS 5/15-401
Amends the Public Utilities Act. Provides that the term "public utility" does not include pipeline companies that have a demonstrated history of not acting in the interest of public convenience and necessity in Illinois. Provides that 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 any evidence or externality presented by a party or other entity participating in the proceeding.
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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
Sections 3-105 and 15-401 as follows:
(220 ILCS 5/3-105) (from Ch. 111 2/3, par. 3-105)
Sec. 3-105. Public utility.
(a) "Public utility" means and includes, except where
otherwise expressly provided in this Section, every
corporation, company, limited liability company, association,
joint stock company or association, firm, partnership or
individual, their lessees, trustees, or receivers appointed by
any court whatsoever that owns, controls, operates or manages,
within this State, directly or indirectly, for public use, any
plant, equipment or property used or to be used for or in
connection with, or owns or controls any franchise, license,
permit or right to engage in:
(1) the production, storage, transmission, sale,
delivery or furnishing of heat, cold, power, electricity,
water, or light, except when used solely for communications
purposes;
(2) the disposal of sewerage; or
(3) the conveyance of oil or gas by pipe line.

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(b) "Public utility" does not include, however:
(1) public utilities that are owned and operated by any
political subdivision, public institution of higher
education or municipal corporation of this State, or public
utilities that are owned by such political subdivision,
public institution of higher education, or municipal
corporation and operated by any of its lessees or operating
agents;
(2) water companies which are purely mutual concerns,
having no rates or charges for services, but paying the
operating expenses by assessment upon the members of such a
company and no other person;
(3) electric cooperatives as defined in Section 3-119;
(4) the following natural gas cooperatives:
(A) residential natural gas cooperatives that are
not-for-profit corporations established for the
purpose of administering and operating, on a
cooperative basis, the furnishing of natural gas to
residences for the benefit of their members who are
residential consumers of natural gas. For entities
qualifying as residential natural gas cooperatives and
recognized by the Illinois Commerce Commission as
such, the State shall guarantee legally binding
contracts entered into by residential natural gas
cooperatives for the express purpose of acquiring
natural gas supplies for their members. The Illinois

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Commerce Commission shall establish rules and
regulations providing for such guarantees. The total
liability of the State in providing all such guarantees
shall not at any time exceed $1,000,000, nor shall the
State provide such a guarantee to a residential natural
gas cooperative for more than 3 consecutive years; and
(B) natural gas cooperatives that are
not-for-profit corporations operated for the purpose
of administering, on a cooperative basis, the
furnishing of natural gas for the benefit of their
members and that, prior to 90 days after the effective
date of this amendatory Act of the 94th General
Assembly, either had acquired or had entered into an
asset purchase agreement to acquire all or
substantially all of the operating assets of a public
utility or natural gas cooperative with the intention
of operating those assets as a natural gas cooperative;
(5) sewage disposal companies which provide sewage
disposal services on a mutual basis without establishing
rates or charges for services, but paying the operating
expenses by assessment upon the members of the company and
no others;
(6) (blank);
(7) cogeneration facilities, small power production
facilities, and other qualifying facilities, as defined in
the Public Utility Regulatory Policies Act and regulations

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promulgated thereunder, except to the extent State
regulatory jurisdiction and action is required or
authorized by federal law, regulations, regulatory
decisions or the decisions of federal or State courts of
competent jurisdiction;
(8) the ownership or operation of a facility that sells
compressed natural gas at retail to the public for use only
as a motor vehicle fuel and the selling of compressed
natural gas at retail to the public for use only as a motor
vehicle fuel;
(9) alternative retail electric suppliers as defined
in Article XVI; and
(10) the Illinois Power Agency; and .
(11) pipeline companies that have a demonstrated
history of not acting in the interest of public convenience
and necessity in Illinois.
(c) An entity that furnishes the service of charging
electric vehicles does not and shall not be deemed to sell
electricity and is not and shall not be deemed a public utility
notwithstanding the basis on which the service is provided or
billed. If, however, the entity is otherwise deemed a public
utility under this Act, or is otherwise subject to regulation
under this Act, then that entity is not exempt from and remains
subject to the otherwise applicable provisions of this Act. The
installation, maintenance, and repair of an electric vehicle
charging station shall comply with the requirements of

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subsection (a) of Section 16-128 and Section 16-128A of this
Act.
For purposes of this subsection, the term "electric
vehicles" has the meaning ascribed to that term in Section 10
of the Electric Vehicle Act.
(Source: P.A. 97-1128, eff. 8-28-12.)
(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.
(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

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factors described in items (1) through (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
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

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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
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

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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 .
(10) any evidence or externality presented by a party
or other entity participating in the proceeding.
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

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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
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

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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
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

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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
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

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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.)