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1 | AN ACT concerning energy.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 1. Short title. This Act may be cited as the | ||||||||||||||||||||||||
5 | Clean-Coal Project Indemnification Act. | ||||||||||||||||||||||||
6 | Section 5. Definitions. As used in this Act: | ||||||||||||||||||||||||
7 | "Clean-coal project" means the installation of one or more | ||||||||||||||||||||||||
8 | components of the coal-based integrated sequestration and | ||||||||||||||||||||||||
9 | hydrogen research project to be built in partnership with the | ||||||||||||||||||||||||
10 | United States Department of Energy, commonly referred to as the | ||||||||||||||||||||||||
11 | FutureGen project. | ||||||||||||||||||||||||
12 | "Injected carbon dioxide" means carbon dioxide that is | ||||||||||||||||||||||||
13 | generated from a clean-coal project, captured, and injected, | ||||||||||||||||||||||||
14 | for storage, into an underground geologic formation, stratum, | ||||||||||||||||||||||||
15 | reservoir, or cavern. | ||||||||||||||||||||||||
16 | "Operator" means any person or entity operating a | ||||||||||||||||||||||||
17 | clean-coal project and that person's or entity's employees and | ||||||||||||||||||||||||
18 | agents. | ||||||||||||||||||||||||
19 | Section 10. Representation and indemnification by the | ||||||||||||||||||||||||
20 | State. | ||||||||||||||||||||||||
21 | (a) If a civil proceeding is commenced against an operator | ||||||||||||||||||||||||
22 | arising from the escape or migration of injected carbon |
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1 | dioxide, then the Attorney General shall, upon timely and | ||||||
2 | appropriate notice by the operator, appear on behalf of the | ||||||
3 | operator and defend the action. Any such notice must be in | ||||||
4 | writing, must be mailed within 15 days after the date of | ||||||
5 | receipt by the operator of service of process, and must | ||||||
6 | authorize the Attorney General to represent and defend the | ||||||
7 | operator in the proceeding. The giving of this notice to the | ||||||
8 | Attorney General constitutes an agreement by the operator to | ||||||
9 | cooperate with the Attorney General in his or her defense of | ||||||
10 | the action and a consent that the Attorney General shall | ||||||
11 | conduct the defense as he or she deems advisable and in the | ||||||
12 | best interests of the operator, including settlement in the | ||||||
13 | Attorney General's discretion. In any such proceeding, the | ||||||
14 | State shall pay the court costs and litigation expenses of | ||||||
15 | defending the action, to the extent approved by the Attorney | ||||||
16 | General as reasonable, as they are incurred. | ||||||
17 | (b) If the Attorney General determines that so appearing | ||||||
18 | and defending an operator either (i) involves an actual or | ||||||
19 | potential conflict of interest or (ii) that the act or omission | ||||||
20 | that gave rise to the claim was not within the scope of the | ||||||
21 | escape or migration of injected carbon dioxide or was | ||||||
22 | intentional, wilful, or wanton misconduct, then the Attorney | ||||||
23 | General shall decline in writing to appear or defend or shall | ||||||
24 | promptly take appropriate action to withdraw as attorney for | ||||||
25 | the operator. | ||||||
26 | Upon receipt of such a declination or withdrawal by the |
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1 | Attorney General on the basis of an actual or potential | ||||||
2 | conflict of interest, the operator may employ his or her own | ||||||
3 | attorney to appear and defend, in which event the State shall | ||||||
4 | pay the operator's court costs, litigation expenses, and | ||||||
5 | attorneys' fees to the extent approved by the Attorney General | ||||||
6 | as reasonable, as they are incurred. | ||||||
7 | In the event that the Attorney General declines to appear | ||||||
8 | or withdraws on the grounds that the act or omission was not | ||||||
9 | within the scope of the escape or migration of injected carbon | ||||||
10 | dioxide or was intentional, wilful, or wanton misconduct, and a | ||||||
11 | court or jury finds that the act or omission of the operator | ||||||
12 | was within the scope of the escape or migration of injected | ||||||
13 | carbon dioxide and was not intentional, wilful, or wanton | ||||||
14 | misconduct, the State shall indemnify the operator for any | ||||||
15 | damages awarded and court costs and attorneys' fees assessed as | ||||||
16 | part of any final and unreversed judgment. In such event the | ||||||
17 | State shall also pay the operator's court costs, litigation | ||||||
18 | expenses, and attorneys' fees to the extent approved by the | ||||||
19 | Attorney General as reasonable. | ||||||
20 | (c) The Attorney General may file a counterclaim on behalf | ||||||
21 | of an operator if: | ||||||
22 | (1) the Attorney General determines that the operator | ||||||
23 | is entitled to representation in a civil action under this | ||||||
24 | Section; | ||||||
25 | (2) the counterclaim arises out of any act or
omission | ||||||
26 | occurring within the scope of the operation of a clean-coal |
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1 | project that is the subject of the civil action; and | ||||||
2 | (3) the operator agrees in writing that if judgment
is | ||||||
3 | entered in favor of the operator, the amount of the | ||||||
4 | judgment will be applied to offset any judgment that may be | ||||||
5 | entered in favor of the plaintiff, and then to reimburse | ||||||
6 | the State treasury for court costs and litigation expenses | ||||||
7 | required to pursue the counterclaim. The balance of the | ||||||
8 | collected judgment shall be paid to the operator.
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9 | (d) In any such proceeding where notice in accordance with | ||||||
10 | this Section has been given to the Attorney General, unless the | ||||||
11 | court or jury finds that the conduct or inaction that gave rise | ||||||
12 | to the claim or cause of action was intentional, wilful, or | ||||||
13 | wanton misconduct, the State shall indemnify the operator for | ||||||
14 | any damages awarded and court costs and attorneys' fees | ||||||
15 | assessed as part of any final and unreversed judgment or shall | ||||||
16 | pay the judgment. | ||||||
17 | Unless the Attorney General determines that the conduct or | ||||||
18 | inaction that gave rise to the claim or cause of action was | ||||||
19 | intentional, wilful, or wanton misconduct, the case may be | ||||||
20 | settled, in the Attorney General's discretion and with the | ||||||
21 | operator's consent, and the State shall indemnify the operator | ||||||
22 | for any damages, court costs, and attorneys' fees agreed to as | ||||||
23 | part of the settlement or shall pay such settlement. Where the | ||||||
24 | operator is represented by private counsel, any settlement must | ||||||
25 | be so approved by the Attorney General and the court having | ||||||
26 | jurisdiction, which obligates the State to indemnify the |
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1 | operator. | ||||||
2 | (e) Court costs and litigation expenses and other costs of | ||||||
3 | providing a defense or counterclaim, including attorneys' fees | ||||||
4 | obligated under this Section, shall be paid from the State | ||||||
5 | treasury on the warrant of the Comptroller out of | ||||||
6 | appropriations made to the Attorney General specifically | ||||||
7 | designed for the payment of costs, fees, and expenses covered | ||||||
8 | by this Section.
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9 | Section 99. Effective date. This Act takes effect upon | ||||||
10 | becoming law.
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