Bill Text: IL SB1821 | 2011-2012 | 97th General Assembly | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Creates the Carbon Dioxide Transport by Pipeline Act. Contains only a short title provision.

Sponsorship: Moderate Partisan Bill (Democrat 7-1)

Status: (Passed) 2011-08-23 - Public Act . . . . . . . . . 97-0534 [SB1821 Detail]

Download: Illinois-2011-SB1821-Amended.html

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Sen. John M. Sullivan

Filed: 3/14/2011

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AMENDMENT TO SENATE BILL 1821
AMENDMENT NO. ______. Amend Senate Bill 1821 by replacing
everything after the enacting clause with the following:
"Section 1. Short title. This Act may be cited as the
Carbon Dioxide Transportation and Sequestration Act.
Section 5. Legislative purpose. Pipeline transportation of
carbon dioxide for sequestration, enhanced oil recovery, and
other purposes is declared to be a public use and service, in
the public interest, and a benefit to the welfare of Illinois
and the people of Illinois because pipeline transportation is
necessary for sequestration, enhanced oil recovery, or other
carbon management purposes and thus is an essential component
to compliance with required or voluntary plans to reduce carbon
dioxide emissions from "clean coal" facilities and other
Illinois sources. Carbon dioxide pipelines are critical to the
promotion and use of Illinois coal and also advance economic

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development, environmental protection, and energy security in
the State.
Section 10. Definitions. As used in this Act:
"Carbon dioxide pipeline" or "pipeline" means the in-state
portion of a pipeline, including appurtenant facilities,
property rights, and easements, that are used exclusively for
the purpose of transporting carbon dioxide to a point of sale,
storage, enhanced oil recovery, or other carbon management
application.
"Clean coal facility" has the meaning ascribed to that term
in Section 1-10 of the Illinois Power Agency Act.
"Clean coal SNG facility" has the meaning ascribed to that
term in Section 1-10 of the Illinois Power Agency Act.
"Clean coal SNG brownfield facility" has the meaning
ascribed to that term in Section 1-10 of the Illinois Power
Agency Act
"Commission" means the Illinois Commerce Commission.
"Sequester" has the meaning ascribed to that term in
Section 1-10 of the Illinois Power Agency Act.
"Transportation" means the physical movement of carbon
dioxide by pipeline conducted for a person's own use or account
or the use or account of another person or persons.
Section 15. Scope. This Act applies only to an owner or
operator of a pipeline designed, constructed, and operated to

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transport and to sequester carbon dioxide produced by a clean
coal facility, by a clean coal SNG facility, by a clean coal
SNG brownfield facility, or by any other source that will
result in the reduction of carbon dioxide emissions from that
source. Further, this Act applies only to a person or entity
authorized to do business in Illinois who is authorized to
transport carbon dioxide by pipeline and has obtained a
certificate of authority from the Commission pursuant to this
Act.
Section 20. Application.
(a) No person or entity may construct, operate, or repair a
carbon dioxide pipeline unless the person or entity possesses a
certificate in good standing. No person shall begin or continue
construction of a carbon dioxide pipeline unless the person
possesses a certificate in good standing.
(b) The Commission, after a hearing, shall grant an
application for a certificate authorizing the construction and
operation of a carbon dioxide pipeline to the extent that it
finds that the application was properly filed; the applicant is
fit, willing, and able to construct and operate the pipeline in
compliance with this Act and with Commission regulations and
orders; and the proposed pipeline is consistent with the public
interest, public benefit, and legislative purpose as set forth
in this Act. Evidence encompassing any of the factors described
in items (1) through (9) of this subsection (b) that is

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submitted by the applicant, any other party, or the
Commission's staff shall also be considered by the Commission.
In its review of an application for a certificate of
authority to construct and operate a proposed carbon dioxide
pipeline and any alternate locations for that proposed pipeline
or facility, the Commission shall consider, but not be limited
to, the following:
(1) that the applicant has filed or will timely file
with the Pipeline and Hazardous Materials Safety
Administration of the U.S. Department of Transportation
all forms required by that agency in advance of
constructing a carbon dioxide pipeline;
(2) that the applicant has filed or will timely file
with the U.S. Army Corps of Engineers all applications for
permits required by that agency in advance of constructing
a carbon dioxide pipeline;
(3) that the applicant has entered into an agreement
with the Illinois Department of Agriculture that governs
the mitigation of agricultural impacts associated with the
construction of the proposed pipeline;
(4) any evidence regarding the applicant's financial,
managerial, legal, and technical qualifications necessary
to construct and operate the proposed carbon dioxide
pipeline;
(5) any evidence of the effect of the pipeline upon the
economy, infrastructure, and public safety presented by

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local governmental units that will be affected by the
proposed pipeline route;
(6) 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;
(7) 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, ability of the State to
attract economic growth, meet future energy requirements,
and ensure compliance with environmental requirements and
goals;
(8) 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; and
(9) any evidence presented by any State or federal
governmental entity as to how the proposed pipeline will
affect the security, stability, and reliability of energy.
In its written order, the Commission shall address all of

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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) When an applicant files its application with the
Commission, it shall provide notice to each local government
where the proposed pipeline will be located and include a map
of the proposed pipeline route. The applicant shall also
publish notice in a newspaper of general circulation in each
county where the proposed pipeline is located.
(d) An application filed pursuant to this Section may
request either that the Commission review and approve a
specific route for a carbon dioxide 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.
(e) An applicant under this Act may request the issuance of
a certificate of authority from the Commission for the
construction and operation of a carbon dioxide pipeline at the
same time, and as part of the same application, as its request
for a certificate of good standing.

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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 (f) 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. If the Commission grants
approval of a project route width as opposed to a specific
project route, then the applicant 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.
(f) The Commission shall make its determination on any
application filed pursuant to this Section and issue its final
order within 6 months after the date that the application is
filed unless an extension is granted as provided in this
subsection (f). The Commission may extend the 6-month time

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period for issuing a final order on an application filed
pursuant to this Section up to an additional 3 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 3-month period, and
the Commission shall issue its final order within the 3-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 6
months if it finds that the public interest requires the
setting of such an expedited schedule.
(g) 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 owner or operator of the carbon
dioxide pipeline that receives that 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 that supplemental

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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 the 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, public interest and benefit of the
project, or fitness of the applicant shall not be reopened in
the supplemental proceeding.
(h) The rules of the Commission may include additional
options for expediting the issuance of certificates and
approvals under this Section. If an applicant elects to use an
option provided for in the rules, then the rules may provide
that: (1) the applicant must request the use of the expedited
process at the time of filing its application; (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 the expedited process.
(i) A certificate of authority to construct and operate a
carbon dioxide pipeline issued by the Commission shall contain
and include all of the following:
(1) a grant of authority to construct and operate a
carbon dioxide pipeline as requested in the application,
subject to the laws of this State;

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(2) a grant of authority to use, occupy, and construct
facilities in any designated public right-of-way for the
construction and operation of the carbon dioxide pipeline
subject to the laws of this State; and
(3) a limited grant of authority to take and acquire an
easement in any property or interest in property for the
construction, maintenance, or operation of a carbon
dioxide pipeline in the manner provided for the exercise of
the power of eminent domain under the Eminent Domain Act.
The limited grant of authority shall be restricted to, and
exercised solely for, the purpose of siting,
rights-of-way, and easements appurtenant, including
construction and maintenance. The applicant shall not
exercise this power until it has used reasonable and good
faith efforts to acquire the property or easement thereto.
The applicant may thereafter use this power when the
applicant determines that the easement is necessary to
avoid unreasonable delay or economic hardship to the
progress of activities carried out pursuant to the
certificate of authority.
Section 25. Procedures. Notwithstanding any other
provision of this Act, any power granted pursuant to this Act
to acquire an easement is subject to, and shall be exercised in
accordance with, the Eminent Domain Act.

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Section 30. Safety. A carbon dioxide pipeline owner shall
construct, maintain, and operate all of its pipelines, related
facilities, and equipment in this State in a manner that poses
no undue risk to its employees or the public. The Commission
shall adopt federal safety regulations governing the
construction, maintenance, and operations of carbon dioxide
pipelines, related facilities, and equipment to ensure the
safety of pipeline employees and the public.
Section 99. Effective date. This Act takes effect upon
becoming law.".