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1 | | that enable the capture of carbon dioxide for the purpose of |
2 | | storing the carbon dioxide underground in a permanent manner. |
3 | | Section 10. Applicability. This Act applies to the |
4 | | underground sequestration of carbon dioxide. |
5 | | Section 15. Definitions. As used in this Act: |
6 | | "Affected pore space owner" means (1) a pore space owner |
7 | | who does not agree to integrate the pore space owner's |
8 | | interests into a sequestration facility and is required to do |
9 | | so by an order issued by the Department in accordance with |
10 | | Section 25 and (2) any other pore space owner within the |
11 | | sequestration facility who has not granted surface access to |
12 | | the sequestration operator. |
13 | | "Agency" means the Illinois Environmental Protection |
14 | | Agency. |
15 | | "Applicable underground injection control program" means, |
16 | | for each Class VI injection well, the program provided by the |
17 | | federal Safe Drinking Water Act for that class of well in this |
18 | | State, including, but not limited to, the most recent |
19 | | amendments to that program. |
20 | | "Carbon dioxide" means the chemical compound that is |
21 | | composed of one carbon atom and 2 oxygen atoms. |
22 | | "Carbon dioxide pipeline" has the meaning given in Section |
23 | | 10 of the Carbon Dioxide Transportation and Sequestration Act. |
24 | | "Carbon dioxide plume" means the subsurface, 3-dimensional |
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1 | | extent of an injected carbon dioxide stream. |
2 | | "Carbon dioxide stream" means carbon dioxide that has been |
3 | | captured from an emission source or the atmosphere and |
4 | | incidental associated substances derived from the source |
5 | | materials and the capture process, as well as any substances |
6 | | added to the stream to enable or improve the injection |
7 | | process. "Carbon dioxide stream" does not include any carbon |
8 | | dioxide stream that is "hazardous waste" as defined in 40 CFR |
9 | | 261. |
10 | | "Class VI injection well" means a well that is used to |
11 | | inject one or more carbon dioxide streams into a sequestration |
12 | | facility under a Class VI well permit. |
13 | | "Class VI well permit" means a Class VI well permit issued |
14 | | under the applicable underground injection control program |
15 | | that allows a person, trust, corporation, or other entity to |
16 | | inject one or more carbon dioxide streams for underground |
17 | | sequestration of carbon dioxide. |
18 | | "Department" means the Department of Natural Resources. |
19 | | "Mineral lessee" means a lessee who is identified, by the |
20 | | records of the recorder of deeds for each county containing a |
21 | | portion of a proposed or permitted sequestration facility, as |
22 | | a person who holds an interest that has been severed from the |
23 | | surface estate by grant, exception, reservation, lease, or any |
24 | | other means in minerals that are located on real property |
25 | | above, below, or within the proposed or permitted |
26 | | sequestration facility. "Mineral lessee" includes a person who |
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1 | | is identified as a successor to a mineral lessee by the records |
2 | | of the recorder of deeds. |
3 | | "Mineral owner" means an owner who is identified, by the |
4 | | records of the recorder of deeds for each county containing a |
5 | | portion of a proposed or permitted sequestration facility, as |
6 | | a person who holds an interest that has been severed from the |
7 | | surface estate by grant, exception, reservation, lease, or any |
8 | | other means in minerals that are located on real property |
9 | | above, below, or within the proposed or permitted |
10 | | sequestration facility. "Mineral owner" includes a person who |
11 | | is identified as a successor to a mineral owner by the records |
12 | | of the recorder of deeds. |
13 | | "Pore space" means subsurface cavities or voids that can |
14 | | be used as containment for underground sequestration of carbon |
15 | | dioxide. |
16 | | "Pore space owner" means, with respect to any parcel of |
17 | | property, the surface owner as set forth in subsection (a) of |
18 | | Section 20. |
19 | | "Project labor agreement" means a pre-hire collective |
20 | | bargaining agreement that covers all terms and conditions of |
21 | | employment on a specific construction project and includes the |
22 | | following: |
23 | | (1) provisions establishing the minimum hourly wage |
24 | | for each class of labor organization employee; |
25 | | (2) provisions establishing the benefits and other |
26 | | compensation for each class of labor organization |
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1 | | employee; |
2 | | (3) provisions establishing that no strike or disputes |
3 | | will be engaged in by the labor organization employees; |
4 | | (4) provisions establishing that no lockout or |
5 | | disputes will be engaged in by the general contractor |
6 | | building the project; |
7 | | (5) provisions permitting the selection of the lowest |
8 | | qualified responsible bidder, without regard to union or |
9 | | non-union status at other construction sites; and |
10 | | (6) provisions setting forth goals for apprenticeship |
11 | | hours to be performed by minorities and women, as defined |
12 | | under the Business Enterprise for Minorities, Women, and |
13 | | Persons with Disabilities Act, and setting forth goals for |
14 | | total hours to be performed by minorities and women. |
15 | | "Property Index Number" has the meaning given in Section |
16 | | 1-120 of the Property Tax Code. |
17 | | "Property interest owner" means a person who is |
18 | | identified, by the records of the recorder of deeds for each |
19 | | county containing a portion of the proposed sequestration |
20 | | facility or sequestration facility, as a person who holds a |
21 | | fee simple interest, easement, other freehold interest, or |
22 | | leasehold in the surface or subsurface of the property, which |
23 | | may include mineral rights. "Property interest owner" includes |
24 | | a person who is identified as a successor to a property |
25 | | interest owner by the records of the recorder of deeds. |
26 | | "Proposed sequestration facility" means a subsurface |
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1 | | sedimentary stratum, formation, aquifer, cavity, or void that |
2 | | is naturally or artificially created, or is capable of being |
3 | | made suitable for receiving and containing a carbon dioxide |
4 | | plume for a long term, as delineated by computational modeling |
5 | | for a Class VI well permit application, and that a |
6 | | sequestration facility permit applicant proposes to develop as |
7 | | a sequestration facility for the underground sequestration of |
8 | | carbon dioxide. "Proposed sequestration facility" does not |
9 | | include an application for the modification of a sequestration |
10 | | facility permit. |
11 | | "Sequestration facility" means the subsurface volume and |
12 | | confining zone capable of receiving and containing a carbon |
13 | | dioxide plume for a long term, as delineated by computational |
14 | | modeling for an approved Class VI well permit or an amendment |
15 | | to a Class VI well permit of a sequestration operator. |
16 | | "Sequestration operator" means a person, trust, |
17 | | corporation, or other entity that operates at least one Class |
18 | | VI injection well and a sequestration facility. |
19 | | "Surface owner" means the fee simple owner of the surface |
20 | | estate of a parcel of property who is identified by the records |
21 | | of the recorder of deeds for a county. "Surface owner" |
22 | | includes a person who is identified as a successor to a surface |
23 | | owner by the records of the recorder of deeds. |
24 | | "Underground sequestration of carbon dioxide" means the |
25 | | injection of one or more carbon dioxide streams into |
26 | | underground geologic formations under at least one Class VI |
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1 | | well permit for long-term sequestration. |
2 | | Section 20. Pore space ownership. |
3 | | (a) As to any parcel of property, title to the pore space |
4 | | located below the surface thereof is hereby vested in the |
5 | | surface owner of the overlying surface estate subject to |
6 | | existing rights. |
7 | | (b) A conveyance of title to the surface estate conveys |
8 | | title to the pore space in all strata underlying the surface |
9 | | estate subject to existing rights. |
10 | | (c) Title to pore space may not be severed from the surface |
11 | | estate. An instrument or arrangement that seeks to sever title |
12 | | to pore space from title to the parcel of property is void as |
13 | | to the severance of the pore space from the surface interest. |
14 | | Nothing in this Section affects transactions completed before |
15 | | the effective date of this Act. |
16 | | (d) Neither a grant of an easement to use pore space nor a |
17 | | lease of pore space is a severance prohibited by subsection |
18 | | (c). |
19 | | (e) Neither the grant of an easement to use pore space nor |
20 | | the lease of pore space confers any right to enter upon or |
21 | | otherwise use the surface of the parcel of property unless the |
22 | | grant of easement or the lease expressly so provides. |
23 | | (f) Nothing in this Section shall be construed to change |
24 | | or alter the common law existing as of the effective date of |
25 | | this Act as it relates to the rights belonging to, or the |
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1 | | dominance of, the mineral estate. |
2 | | Section 25. Integration and unitization of ownership |
3 | | interests. |
4 | | (a) If at least 2 pore space owners own pore space located |
5 | | within a proposed sequestration facility, the owners may agree |
6 | | to integrate the owners' interests to develop the pore space |
7 | | as a proposed sequestration facility for the underground |
8 | | sequestration of carbon dioxide. |
9 | | (b) If all of the pore space owners within a proposed or |
10 | | permitted sequestration facility do not agree to integrate the |
11 | | pore space owners' interests, a sequestration operator or |
12 | | sequestration facility permit holder may petition the |
13 | | Department to issue an order requiring the pore space owners |
14 | | to integrate their interests and authorizing the sequestration |
15 | | operator or sequestration facility permit holder to develop |
16 | | and use the integrated pore space as a sequestration facility |
17 | | for the underground sequestration of carbon dioxide to serve |
18 | | the public interest subject to subsection (c). The petition |
19 | | shall include, but is not limited to: |
20 | | (1) the name and address of the petitioners; |
21 | | (2) the Property Index Numbers or legal descriptions |
22 | | for the parcels of property and a geologic description of |
23 | | the pore space within the proposed or permitted |
24 | | sequestration facility; |
25 | | (3) the names and addresses of all pore space owners |
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1 | | owning property within the proposed or permitted |
2 | | sequestration facility as disclosed by the records of the |
3 | | office of the recorder for the county or counties in which |
4 | | the proposed or permitted sequestration facility is |
5 | | situated and a list of the pore space owners who have not |
6 | | agreed to integrate their interests; |
7 | | (4) a statement that the petitioner has exercised due |
8 | | diligence to locate each pore space owner and to seek an |
9 | | agreement with each for pore space rights for the |
10 | | sequestration facility; |
11 | | (5) a statement of the type of operations for the |
12 | | proposed or permitted sequestration facility; |
13 | | (6) a plan for determining the quantity of pore space |
14 | | sequestration capacity to be assigned to each separately |
15 | | owned parcel of property based on the surface area acreage |
16 | | overlying the proposed or permitted sequestration facility |
17 | | and for using the surface for Class VI well permit |
18 | | required activities under Section 35; |
19 | | (7) the method by which pore space owners will be |
20 | | equitably compensated for use of the pore space; and |
21 | | (8) a nonrefundable application fee of $2,500. |
22 | | (c) The Department, upon the petition to issue an order to |
23 | | integrate the owners' interests and allow unitization in a |
24 | | proposed or permitted sequestration facility, shall fix a time |
25 | | and place for a public hearing within 90 days. The Department, |
26 | | at the petitioner's expense, shall give notice of such hearing |
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1 | | under this Section prior to the hearing by: |
2 | | (1) mailing such notice by certified mail, return |
3 | | receipt requested, directed to the persons named in the |
4 | | petition at their last known addresses at least 30 days |
5 | | before the hearing; and |
6 | | (2) publishing such notice once each week for 2 |
7 | | consecutive weeks, with the first notice appearing at |
8 | | least 30 days before the hearing in a newspaper of general |
9 | | circulation that is published in each county containing |
10 | | some portion of the proposed or permitted sequestration |
11 | | facility. |
12 | | (d) All notices for public hearings under this Section |
13 | | shall be issued in the name of the State of Illinois and shall |
14 | | be signed by the Director of Natural Resources. The notices |
15 | | shall specify the number and style of the proceedings, the |
16 | | time and place of the hearing, that the sole purpose of the |
17 | | hearing is for the integration of pore space for the operation |
18 | | of a sequestration facility, the name of the petitioners, and |
19 | | Property Index Numbers or legal descriptions of the parcels of |
20 | | property contained within the proposed or permitted |
21 | | sequestration facility. |
22 | | (e) The Department shall issue an order integrating pore |
23 | | space under subsection (b) within 60 days after the hearing |
24 | | upon a showing that: |
25 | | (1) the petitioner has obtained a Class VI well permit |
26 | | or, if the well permit application is still pending at |
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1 | | least one year from the date the application has been |
2 | | filed, that the petitioner has received a Finding of |
3 | | Administrative Completeness from the applicable |
4 | | underground injection control program; |
5 | | (2) the petitioner has made a good faith effort to |
6 | | seek an agreement with all pore space owners located |
7 | | within the proposed or permitted sequestration facility; |
8 | | (3) the petitioner has obtained the rights from pore |
9 | | space owners of pore space underlying at least 71% of the |
10 | | surface area above the proposed or permitted sequestration |
11 | | facility; and |
12 | | (4) all pore space owners who do not agree to |
13 | | integrate their interests to operate the pore space as a |
14 | | proposed or permitted sequestration facility for the |
15 | | underground sequestration of carbon dioxide are or will be |
16 | | equitably compensated for use of the pore space and use of |
17 | | the surface for Class VI well permit required activities |
18 | | in accordance with Section 35. |
19 | | (f) The Department's order under this Section is not |
20 | | effective until the petitioner has been issued a Class VI well |
21 | | permit from the applicable underground injection control |
22 | | program. |
23 | | Section 30. Sequestration facility permits. |
24 | | (a) Sequestration facility permits have the following |
25 | | requirements: |
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1 | | (1) Except as provided in Section 75, a sequestration |
2 | | operator may not operate a sequestration facility in this |
3 | | State without: |
4 | | (A) a Class VI well permit; and |
5 | | (B) a valid sequestration facility permit. |
6 | | (2) Each intended sequestration operator of a proposed |
7 | | sequestration facility must obtain a sequestration |
8 | | facility permit. A sequestration facility permit may be |
9 | | transferred or assigned from one sequestration operator to |
10 | | another sequestration operator with notice to the |
11 | | Department, which may adopt rules governing such |
12 | | transfers. |
13 | | (3) Applications for a sequestration facility permit |
14 | | shall be filed with the Department in the form and manner |
15 | | prescribed by the Department. |
16 | | (4) An application under paragraph (3) of this |
17 | | subsection must include: |
18 | | (A) a filing fee of $1,000; |
19 | | (B) the signature of the applicant; |
20 | | (C) a statement verifying that the information |
21 | | submitted is true, accurate, and complete to the best |
22 | | of the applicant's knowledge; |
23 | | (D) a statement that the interests of mineral |
24 | | lessees or mineral owners will not be adversely |
25 | | affected; |
26 | | (E) documentation describing the scope of the |
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1 | | proposed sequestration facility; |
2 | | (F) information on the seismic history including |
3 | | the presence and depth of seismic sources; and |
4 | | (G) an estimate of the amount of carbon dioxide to |
5 | | be injected into a proposed sequestration facility. |
6 | | If a mineral owner or mineral lessee demonstrates a |
7 | | potential for adverse effects, the mineral owner or mineral |
8 | | lessee and the applicant may enter into an agreement or the |
9 | | applicant, mineral owner, or mineral lessee may request the |
10 | | Department to establish sequestration facility permit |
11 | | conditions to mitigate potential adverse effects to the |
12 | | interests of a mineral lessee or mineral owner. |
13 | | (b) The following procedural requirements apply to |
14 | | applications for sequestration facility permits: |
15 | | (1) The Department shall review an application |
16 | | submitted under paragraph (3) of subsection (a) for |
17 | | completeness within 30 days of receipt. If the Department |
18 | | determines that the application is incomplete, inaccurate, |
19 | | or both, the Department shall promptly return the |
20 | | application to the applicant with a written explanation of |
21 | | any deficiencies. Otherwise, the Department shall promptly |
22 | | notify the applicant in writing that the application is |
23 | | complete. |
24 | | (2) If the Department returns an application to an |
25 | | applicant under paragraph (1) of this subsection, the |
26 | | Department shall inform the applicant of the right to file |
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1 | | a corrected application with the Department. Upon |
2 | | receiving any corrected application, the Department shall |
3 | | review the application for completeness within 30 days. If |
4 | | the Department determines that the corrected application |
5 | | remains incomplete, inaccurate, or both, the Department |
6 | | shall promptly return the application to the applicant |
7 | | with a written explanation of any deficiencies and an |
8 | | opportunity to resubmit another corrected application to |
9 | | the Department under this paragraph (2). Otherwise, the |
10 | | Department shall promptly notify the applicant in writing |
11 | | that the application is complete. |
12 | | (3) Upon receiving notification that the application |
13 | | or corrected application is complete, the applicant shall: |
14 | | (A) not more than 60 days after receiving the |
15 | | notice that the application or corrected application |
16 | | is complete: |
17 | | (i) place a copy of the application in a |
18 | | public library located in each county in which the |
19 | | sequestration facility is proposed to be located |
20 | | for public inspection; |
21 | | (ii) publish notice under the Notice By |
22 | | Publication Act in each county in which the |
23 | | sequestration facility is proposed to be located |
24 | | and the name and address of each library in which a |
25 | | copy of the application is placed as required by |
26 | | subdivision (i); and |
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1 | | (iii) provide mailed notice to each known and |
2 | | locatable surface owner within the proposed |
3 | | sequestration facility; and |
4 | | (B) not more than 30 days after the publication of |
5 | | the notice under subdivision (ii) of subparagraph (A), |
6 | | provide to the Department proof of publication of |
7 | | notice. |
8 | | (4) Not later than 90 days after receiving proof of |
9 | | publication of notice under subparagraph (B) of paragraph |
10 | | (3), the Department shall notify the applicant in writing |
11 | | that the Department has either approved or denied the |
12 | | application with an explanation of the reasons for any |
13 | | denial. |
14 | | (c) If a sequestration facility permit applicant satisfies |
15 | | the requirements of subsection (a) and subsection (b), the |
16 | | Department shall issue a sequestration facility permit to the |
17 | | applicant within 60 days, which shall be effective upon |
18 | | issuance. |
19 | | (d) The Department may adopt rules for the data |
20 | | acquisition necessary to allow the Department to determine |
21 | | whether there is a potential risk that carbon dioxide |
22 | | injection at a proposed or permitted sequestration facility |
23 | | will trigger a seismic event sufficient to compromise |
24 | | subsurface containment. |
25 | | (e) If a sequestration facility permit applicant |
26 | | identifies information as trade secret or confidential and |
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1 | | proprietary information in its permit application, the |
2 | | Department shall take all necessary precautions to avoid |
3 | | public disclosure of that information, as set forth in the |
4 | | Illinois Freedom of Information Act. |
5 | | If anyone other than the sequestration facility permit |
6 | | applicant files with the Department a request for release of |
7 | | the confidential information identified in subsection (d), |
8 | | including a statement of the reasons that the information |
9 | | should be disclosed, the Department shall consult with the |
10 | | sequestration facility permit applicant. The Department may |
11 | | release information identified in subsection (d) only if the |
12 | | sequestration facility permit applicant consents. |
13 | | Section 35. Surface access for pore space owners. If a |
14 | | sequestration operator must enter upon the surface property of |
15 | | an affected pore space owner to comply with Class VI well |
16 | | permit requirements for the purposes of monitoring a |
17 | | sequestration facility or to respond to an emergency causing |
18 | | immediate risk to human health, environmental resources, or |
19 | | infrastructure, any such Class VI well permit required |
20 | | activity must be undertaken in such a way as to minimize the |
21 | | impact to the surface of the parcel of property and to ensure |
22 | | that the following requirements are met: |
23 | | (1) The Class VI well permit required activity shall |
24 | | be limited to surface monitoring activities, such as |
25 | | geophysical surveys, but does not include the installation |
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1 | | of surface infrastructure except as provided in paragraphs |
2 | | (2) and (3). |
3 | | (2) Shallow groundwater monitoring wells shall be |
4 | | allowed to be installed on such property only if the |
5 | | carbon dioxide plume may have unexpectedly migrated and |
6 | | the applicable underground injection control program for |
7 | | the Class VI injection well requires monitoring of |
8 | | groundwater for potential carbon dioxide impact. |
9 | | (3) Injection wells, deep monitoring wells, and |
10 | | surface infrastructure other than shallow groundwater |
11 | | monitoring wells as allowed by paragraph (2) will not be |
12 | | located on the parcel of property of an affected pore |
13 | | space owner without the express written consent of such |
14 | | owner. |
15 | | Section 40. Notice for surface access. Except in an |
16 | | emergency causing immediate risk to human health, |
17 | | environmental resources, or infrastructure, a sequestration |
18 | | operator with a valid Class VI well permit shall not enter upon |
19 | | the surface property for purposes of Class VI well permit |
20 | | required activities of any affected pore space owner until 30 |
21 | | days after providing written notice to the affected pore space |
22 | | owner by registered mail and after providing a second notice |
23 | | to the pore space owner of record, as identified in the records |
24 | | of the relevant county tax assessor, by telephone or email or |
25 | | by registered mail in the event the property owner has not been |
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1 | | notified by other means, at least 3 days, but not more than 15 |
2 | | days, prior to the stated date in the notice, identifying the |
3 | | date when access will first begin on the owner's property and |
4 | | informing the affected pore space owner that the owner or the |
5 | | owner's agent may be present when the access occurs. |
6 | | Section 45. Compensation for damages to the surface. |
7 | | (a) An affected pore space owner is entitled to reasonable |
8 | | compensation from the sequestration operator for damages |
9 | | resulting from surface access to the affected pore space |
10 | | owner's property for Class VI well permit required activities, |
11 | | including: |
12 | | (1) compensation for damage to growing crops, trees, |
13 | | shrubs, fences, roads, structures, improvements, personal |
14 | | property, and livestock thereon and compensation for the |
15 | | loss of the value of a commercial crop impacted by Class VI |
16 | | well permit activities by the sequestration operator; the |
17 | | value of the crop shall be calculated based on local |
18 | | market price by: |
19 | | (A) determining the average per acre yield for the |
20 | | same crop on comparable adjacent acreage; |
21 | | (B) determining the price received for the sale of |
22 | | the same crop on comparable adjacent acreage; |
23 | | (C) determining the acreage of the area impacted |
24 | | by Class VI well permit activities and applying the |
25 | | determined price; and |
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1 | | (D) the initial determination of the value of the |
2 | | crop shall be determined by the affected pore space |
3 | | owner and submitted to the sequestration operator; |
4 | | (2) compensation to return the surface estate, |
5 | | including soil conservation practices, such as terraces, |
6 | | grassed waterways, and other conservation practices, to a |
7 | | condition as near as practicable to the condition of the |
8 | | surface prior to accessing the property; |
9 | | (3) compensation for damage to the productive |
10 | | capability of the soil resulting from compaction or |
11 | | rutting, including, but not limited to, compensation for |
12 | | when a sequestration operator accesses a property where |
13 | | excessively wet soil conditions would not allow normal |
14 | | farming operations due to increased risk of soil erosion, |
15 | | rutting, or compaction; if there is a dispute between the |
16 | | sequestration operator and the affected pore space owner |
17 | | regarding the value of the damage to the productive |
18 | | capability of the soil, the sequestration operator shall |
19 | | consult with a representative of the soil and water |
20 | | conservation district in the respective county where the |
21 | | parcel of property is located for recommendations to |
22 | | restore the productive capability of the soil; and |
23 | | (4) compensation for damage to surface and subsurface |
24 | | drainage, including, but not limited to: |
25 | | (A) compensation in that the sequestration |
26 | | operator shall perform immediate and temporary repairs |
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1 | | for damage that occurs to subsurface drainage tiles |
2 | | that have water actively flowing through them at the |
3 | | time of damage; and |
4 | | (B) compensation such that the sequestration |
5 | | operator shall compensate the affected pore space |
6 | | owner to permanently restore drainage to a condition |
7 | | as near as practicable to the condition of the |
8 | | drainage prior to accessing the property. |
9 | | (b) The compensation for damages required by subsection |
10 | | (a) shall be paid in any manner mutually agreed upon by the |
11 | | sequestration operator and the affected pore space owners. |
12 | | Unless otherwise agreed, the sequestration operator shall |
13 | | tender to the surface owner payment by check or draft in |
14 | | accordance with this Section 45 no later than 60 days after |
15 | | completing the Class VI well permit activities if the |
16 | | occurrence or value of damages is not disputed. The pore space |
17 | | owner's remedy for unpaid or disputed compensation shall be an |
18 | | action for damages in any court of competent jurisdiction for |
19 | | the parcel of property or the greater part thereof on which the |
20 | | Class VI well permit activities were conducted and shall be |
21 | | entitled to recover reasonable damages and attorney's fees if |
22 | | the pore space owner prevails. |
23 | | Section 50. Fees. |
24 | | (a) Beginning after the adoption of rules under paragraph |
25 | | (4) of subsection (d) of this Section, the sequestration |
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1 | | operator shall be assessed the following fees at the |
2 | | conclusion of each State fiscal year: |
3 | | (1) a fee of $0.16 for every ton of carbon dioxide |
4 | | injected into the sequestration facility that the |
5 | | sequestration operator operates in that fiscal year to be |
6 | | allocated to the Carbon Dioxide Sequestration |
7 | | Administrative Fund; |
8 | | (2) a fee of $0.04 for every ton of carbon dioxide |
9 | | injected into a sequestration facility in that fiscal year |
10 | | to be allocated to the Carbon Dioxide Sequestration |
11 | | Long-Term Trust Fund; and |
12 | | (3) a fee of $0.01 for every ton of carbon dioxide |
13 | | injected into a sequestration facility in that fiscal year |
14 | | to be deposited into the Carbon Dioxide Local First |
15 | | Responders Fund. |
16 | | (b) The sequestration operator shall be assessed a |
17 | | one-time fee of $1,000 upon approval of a sequestration |
18 | | facility permit to be deposited into the Carbon Dioxide First |
19 | | Responders Fund promptly upon approval of the sequestration |
20 | | facility permit. |
21 | | (c) The fee assessed to the sequestration operator under |
22 | | paragraph (1) of subsection (a) shall be reduced to $0.04 for |
23 | | every ton of carbon dioxide injected into a sequestration |
24 | | facility in that fiscal year if the sequestration operator |
25 | | successfully demonstrates to the Department that the following |
26 | | types of construction and maintenance were conducted in |
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1 | | Illinois during that fiscal year by the sequestration operator |
2 | | and were performed by contractors and subcontractors signatory |
3 | | to a project labor agreement used by the building and |
4 | | construction trades council with relevant geographic |
5 | | jurisdiction: |
6 | | (1) construction and maintenance of equipment |
7 | | associated with the capture of carbon dioxide, including, |
8 | | but not limited to, all clearing, site preparation, |
9 | | concrete, equipment, and appurtenance installation; |
10 | | (2) construction and maintenance of carbon dioxide |
11 | | pipelines used to transport carbon dioxide streams to the |
12 | | sequestration facility, including, but not limited to, all |
13 | | clearing, site preparation, and site remediation; |
14 | | (3) construction and maintenance of compressor |
15 | | stations used to assist in the transport of carbon dioxide |
16 | | streams via carbon dioxide pipeline, including, but not |
17 | | limited to, all clearing, site preparation, concrete, |
18 | | equipment, and appurtenance installation; and |
19 | | (4) construction of carbon dioxide injection wells |
20 | | used at the sequestration facility, including, but not |
21 | | limited to, all clearing, site preparation, drilling, |
22 | | distribution piping, concrete, equipment, and appurtenance |
23 | | installation. |
24 | | (d) Annual fees imposed under subsection (a) shall be |
25 | | segregated as follows: |
26 | | (1) 50% of the fees assessed under paragraph (1) of |
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1 | | subsection (a) shall be deposited into the Carbon Dioxide |
2 | | Sequestration Administrative Fund, and 50% of the fees |
3 | | assessed under paragraph (1) of subsection (a) shall be |
4 | | held in escrow by the sequestration operator for the |
5 | | Carbon Dioxide Sequestration Administrative Fund under |
6 | | rules adopted by the Department. |
7 | | (2) 100% of the fees assessed by paragraph (2) of |
8 | | subsection (a) shall be held in escrow by the |
9 | | sequestration operator for the Carbon Dioxide Long-Term |
10 | | Trust Fund under rules adopted by the Department. |
11 | | (3) The funds held in escrow by the sequestration |
12 | | operator pursuant to paragraph (1) and (2) shall not be |
13 | | deemed funds of the sequestration operator unless and |
14 | | until refunded to the sequestration operator under |
15 | | subsection (e) below and shall instead be deemed funds |
16 | | escrowed for the sole favor of the Department to be used |
17 | | solely at the direction of the Department pursuant to the |
18 | | terms of this Act and the rules adopted by the Department |
19 | | in connection therewith. |
20 | | (4) The Department shall, within one year after the |
21 | | date of this Act, adopt rules with respect to the escrows |
22 | | to be established under paragraphs (1) and (2). Such rules |
23 | | may require deposit of additional (a)(1) funds into the |
24 | | Carbon Dioxide Sequestration Administrative Fund as needed |
25 | | to meet the requirements of the Act, provided that such |
26 | | rules shall permit and establish requirements regarding |
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1 | | investment of the escrowed funds. |
2 | | (e) Upon site closure of the Class VI injection wells, all |
3 | | moneys accumulated by the sequestration operator in escrow |
4 | | pursuant to paragraphs (1) and (2) of subsection (d) in |
5 | | relation to such wells shall be deposited into the Carbon |
6 | | Dioxide Long-Term Trust Fund. The total amount deposited shall |
7 | | not exceed the anticipated cost of oversight and management |
8 | | following closure of the sequestration facility and associated |
9 | | Class VI injection wells, as determined by the Department. Any |
10 | | moneys remaining in the escrow in excess of the anticipated |
11 | | cost shall be refunded promptly to the sequestration operator. |
12 | | (f) The Department may modify, by rule, the fee amounts |
13 | | authorized by paragraph (1) of subsection (a) to ensure that |
14 | | sufficient resources exist to achieve the requirements of this |
15 | | Act. Changes must be based on the anticipated costs to the |
16 | | Department of carrying out the requirements of the Act. |
17 | | (g) If the Department modifies the fee amounts established |
18 | | in this Section, the fees assessed for the Carbon Dioxide |
19 | | Sequestration Administration Fund shall maintain a 4 times |
20 | | higher per ton fee when the storage operator does not |
21 | | demonstrate paragraphs (1), (2), (3), and (4) of subsection |
22 | | (c) to the Department. |
23 | | Section 55. Funds. |
24 | | (a) The Carbon Dioxide Sequestration Administrative Fund |
25 | | is hereby created as a special fund within the State treasury |
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1 | | to be administered by the Department. Moneys in the Fund may be |
2 | | used: |
3 | | (1) to defray expenses incurred by the Department for |
4 | | the regulation of sequestration facilities during their |
5 | | construction, operational, and post-injection phases; |
6 | | (2) to transfer funds to the Agency or other State |
7 | | agencies for the purpose of implementing and enforcing the |
8 | | applicable underground injection control program for Class |
9 | | VI injection wells; or |
10 | | (3) if the Carbon Dioxide Long-Term Trust Fund becomes |
11 | | depleted, to defray expenses incurred by the Department |
12 | | for the long-term monitoring and management of |
13 | | sequestration facilities after the Department issues a |
14 | | certificate of project completion. |
15 | | (b) The Carbon Dioxide Sequestration Long-Term Trust Fund |
16 | | is hereby created as a special fund within the State treasury |
17 | | to be administered by the Department. Moneys in the Carbon |
18 | | Dioxide Sequestration Long-Term Trust Fund may only be used to |
19 | | defray expenses incurred by the Department for the long-term |
20 | | monitoring and management of sequestration facilities in this |
21 | | State, after site closure of the Class VI injection wells. |
22 | | Expenses may include response to any liabilities associated |
23 | | with the sequestration facility and sequestered carbon dioxide |
24 | | after the Department issues a certificate of project |
25 | | completion. |
26 | | (c) There is hereby created the Carbon Dioxide Local First |
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1 | | Responders Fund to be a fund locally held by the Department |
2 | | outside of the State treasury and administered by the |
3 | | Department. The fund is created to make grants to counties and |
4 | | local municipalities to provide training and support emergency |
5 | | preparedness services to local first responders for localities |
6 | | where sequestration facilities or carbon dioxide pipelines are |
7 | | located and to defray expenses of local first responders in |
8 | | responding to emergencies at sequestration facilities or |
9 | | carbon dioxide pipelines. Grants to support local first |
10 | | responders may be used for: |
11 | | (1) preparing emergency response plans; |
12 | | (2) conducting training and preparing training |
13 | | materials for first responders, residents, businesses, and |
14 | | other local entities; and |
15 | | (3) obtaining equipment for first responders, |
16 | | including personal protective equipment. |
17 | | Section 60. Requirements for drilling near a sequestration |
18 | | facility. |
19 | | (a) Anyone intending to drill a well shall provide written |
20 | | notice to a sequestration operator at least 30 days before |
21 | | drilling a well if the well will be no more than: |
22 | | (1) 330 feet from the surface location of a Class VI |
23 | | injection well; or |
24 | | (2) 500 feet from the uppermost confining zone of a |
25 | | sequestration facility. |
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1 | | (b) A well drilled under subsection (a) must be drilled in |
2 | | compliance with the requirements of: |
3 | | (1) the Department to preserve the integrity of the |
4 | | sequestration facility; |
5 | | (2) a well permit issued by the Department or the |
6 | | applicable underground injection program; and |
7 | | (3) any other applicable rules. |
8 | | (c) The Department shall not authorize any well drilled |
9 | | under subsection (a) without either: |
10 | | (1) the consent of the sequestration operator; or |
11 | | (2) if an agreement cannot be reached, an order from |
12 | | the Department, following public hearing, determining that |
13 | | the activity under subsection (a) will not adversely |
14 | | affect the sequestration facility. |
15 | | (d) The rules adopted pursuant to this Section 60 shall |
16 | | establish procedures requiring coordination between anyone |
17 | | intending to drill a well under subsection (a) and potentially |
18 | | affected sequestration operators or sequestration facilities. |
19 | | Section 65. Applicability of certain tort claims. |
20 | | (a) A private claim shall not be actionable against a |
21 | | sequestration operator who is conducting or has conducted |
22 | | underground sequestration of carbon dioxide in accordance with |
23 | | a valid Class VI well permit unless the claimant proves that |
24 | | injection or migration of carbon dioxide (1) constitutes a |
25 | | private nuisance in State common law and (2) has caused |
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1 | | physical injury to a person, animal, or tangible property. |
2 | | (b) A private claimant shall only be permitted to recover |
3 | | money damages under subsection (a) for nonspeculative tangible |
4 | | losses. |
5 | | (c) A private claimant may seek punitive damages in |
6 | | accordance with Section 2-604.1 of the Code of Civil Procedure |
7 | | only if the sequestration operator knowingly or willfully |
8 | | violates the requirements of a Class VI well permit and acts |
9 | | with reckless disregard for public safety. |
10 | | Section 70. Certification of project completion. |
11 | | (a) Upon application from a sequestration operator, the |
12 | | Department shall consider whether each of the following |
13 | | factors is satisfied in determining whether to issue a |
14 | | certificate of project completion. The Department shall issue |
15 | | the certificate if the Department finds that the sequestration |
16 | | operator: |
17 | | (1) is in compliance with applicable laws governing |
18 | | the sequestration facility; |
19 | | (2) shows that the sequestration facility is |
20 | | reasonably expected to retain the carbon dioxide stored |
21 | | therein; |
22 | | (3) shows that any long-term monitoring wells, |
23 | | equipment, and facilities intended for future use after |
24 | | the closure period are in good condition and retain |
25 | | mechanical integrity; |
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1 | | (4) shows that injection wells have been plugged; |
2 | | (5) shows that equipment and facilities, not including |
3 | | fixed structures and long-term monitoring equipment and |
4 | | wells intended for future use, have been removed; and |
5 | | (6) shows the following with respect to site closure: |
6 | | (A) the sequestration operator has provided a |
7 | | notice of intent for site closure to the applicable |
8 | | underground injection control program; |
9 | | (B) site closure has been authorized by the |
10 | | applicable underground injection control program; and |
11 | | (C) the sequestration operator has provided to the |
12 | | applicable underground injection control program the |
13 | | required site closure report. |
14 | | (b) Not later than 90 days after receiving an application |
15 | | from the sequestration operator, the Department shall either: |
16 | | (1) issue a certificate of project completion; or |
17 | | (2) if the Department determines that the application |
18 | | for a certificate of project completion is incomplete, |
19 | | inaccurate, or both, promptly return the application to |
20 | | the sequestration operator with a written explanation of |
21 | | any deficiencies. |
22 | | (c) If the Department returns the application to the |
23 | | sequestration operator under subsection (b), the Department |
24 | | shall inform the sequestration operator of the right to file a |
25 | | corrected application with the Department. Upon receiving any |
26 | | corrected application, the Department shall take action on the |
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1 | | application in accordance with subsection (b). |
2 | | (d) Upon issuance of a certificate of project completion, |
3 | | the sequestration facility and all carbon dioxide stored |
4 | | therein are immediately transferred to the State. |
5 | | Sequestration facility acquisition by the State under this |
6 | | subsection (d) includes all rights and interests in and all |
7 | | responsibilities and potential liability other than criminal |
8 | | or contractual liability associated with the stored carbon |
9 | | dioxide and the sequestration facility, provided, however, |
10 | | that liability is not transferred to the State to the extent |
11 | | that the Department determines, after notice and hearing, |
12 | | that: |
13 | | (1) the sequestration operator violated a duty related |
14 | | to the sequestration facility and carbon dioxide stored |
15 | | therein imposed on the sequestration operator by Illinois |
16 | | law or rule or by the applicable underground injection |
17 | | control program that was not remedied prior to approval of |
18 | | site closure and any applicable statutes of limitation |
19 | | have not run and the liability arises out of that |
20 | | violation; |
21 | | (2) the sequestration operator provided deficient or |
22 | | erroneous information that was material and relied upon by |
23 | | the Agency or the Department to support approval of site |
24 | | closure; and |
25 | | (3) there is fluid migration for which the |
26 | | sequestration operator is responsible that causes or |
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1 | | threatens imminent and substantial endangerment to an |
2 | | underground source of drinking water; |
3 | | A sequestration operator may appeal any finding under this |
4 | | subsection in a court of competent jurisdiction; and |
5 | | Notwithstanding any other provision of this subsection |
6 | | (d), no party may transfer to the State, and the State may not |
7 | | accept, any property interests or rights that the party does |
8 | | not own or have legal authority to transfer. |
9 | | (e) Unless there is documentation to the contrary, the |
10 | | sequestration operator holds title to the carbon dioxide |
11 | | injected into and stored in a sequestration facility until and |
12 | | unless: |
13 | | (1) the sequestration operator obtains a certificate |
14 | | of project completion from the Department; or |
15 | | (2) the sequestration operator expressly conveys such |
16 | | title to a third party. |
17 | | Section 75. Preexisting Class VI injection wells. A |
18 | | sequestration operator may operate without a sequestration |
19 | | facility permit issued by the Department under subparagraph |
20 | | (B) of paragraph (1) of subsection (a) of Section 30 if, on or |
21 | | before the effective date of this Act, it has either (1) |
22 | | obtained a Class VI well permit or (2) applied for a Class VI |
23 | | well permit and a Completeness Determination has been issued |
24 | | by the United States Environmental Protection Agency and an |
25 | | order from the Department to require integration of pore space |
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1 | | ownership interests under subsection (b) of Section 25 is not |
2 | | required. |
3 | | Section 80. Public participation and environmental |
4 | | justice. |
5 | | (a) The Department shall coordinate with the applicable |
6 | | underground injection control program to ensure meaningful and |
7 | | inclusive public participation procedures for the issuance of |
8 | | Class VI well permits and sequestration facility permits. |
9 | | (b) Public participation procedures may include, but are |
10 | | not limited to: |
11 | | (1) public notice of the submission of permit |
12 | | applications; |
13 | | (2) public notice of any draft and final permitting |
14 | | actions; |
15 | | (3) an opportunity for submission of public comments; |
16 | | (4) an opportunity for public hearing; |
17 | | (5) publication of a summary and response to public |
18 | | comments; and |
19 | | (6) publication of the administrative record for |
20 | | permits in a format and location that is easily accessible |
21 | | to the affected community. |
22 | | (c) Public participation procedures, including additional |
23 | | public participation procedures tailored to communities with |
24 | | potential environmental justice concerns, which are completed |
25 | | by the applicable underground injection control program, are |
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1 | | not required to be separately completed by the Department. |
2 | | (d) In addition to those public participation procedures |
3 | | required by the applicable underground injection control |
4 | | program, the applicant shall also hold one informational |
5 | | meeting in each county where the project will be developed. |
6 | | The applicant shall consult with the Agency's Environmental |
7 | | Justice Officer on meeting best practices to ensure meaningful |
8 | | and inclusive public participation. |
9 | | Section 85. Enhanced recovery. A sequestration facility |
10 | | permit shall not authorize the injection of carbon dioxide |
11 | | streams for enhanced oil or gas recovery. |
12 | | Section 90. Primacy. The Agency shall not enforce the |
13 | | rules in 35 Ill. Adm. Code 730 Subpart H until the United |
14 | | States Environmental Protection Agency promulgates final |
15 | | approval to Illinois for Class VI injection well primary |
16 | | enforcement responsibility (primacy), whereby such rules, as |
17 | | may be amended, become the applicable underground injection |
18 | | control program for Class VI injection wells in Illinois. |
19 | | Section 95. Liability of sequestered carbon dioxide |
20 | | release responders. |
21 | | (a) Notwithstanding any other provision of law, a person |
22 | | is not liable for costs or damages that result from action |
23 | | taken or omitted to be taken in the course of rendering care, |
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1 | | assistance, or advice as directed by a federal or State |
2 | | official with responsibility for responding to a carbon |
3 | | dioxide release from a sequestration facility. |
4 | | (b) Subsection (a) does not apply: |
5 | | (1) to a responsible party as defined under Section |
6 | | 1001 of the U.S. Oil Pollution Act of 1990, Public Law No. |
7 | | 101-380; |
8 | | (2) with respect to personal injury or wrongful death; |
9 | | or |
10 | | (3) if such person is grossly negligent or engages in |
11 | | reckless, willful, wanton, or intentional misconduct. |
12 | | Section 100. Rules. The Department shall adopt rules to |
13 | | implement this Act within 180 days after the effective date of |
14 | | this Act. |
15 | | Section 900. The Illinois Administrative Procedure Act is |
16 | | amended by adding Section 5-45.55 as follows: |
17 | | (5 ILCS 100/5-45.55 new) |
18 | | Sec. 5-45.55. Emergency rulemaking; Climate and Landowner |
19 | | Protection Act. To provide for the expeditious and timely |
20 | | implementation of the Climate and Landowner Protection Act, |
21 | | emergency rules implementing the Act may be adopted in |
22 | | accordance with Section 5-45 by the Department of Natural |
23 | | Resources. The adoption of emergency rules authorized by |
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1 | | Section 5-45 and this Section is deemed necessary for the |
2 | | public interest, safety and welfare. |
3 | | This Section is repealed one year after the effective date |
4 | | of the Climate and Landowner Protection Act. |
5 | | Section 905. The State Finance Act is amended by adding |
6 | | Section 5.1015 and 5.1016 as follows: |
7 | | (30 ILCS 105/5.1015 new) |
8 | | Sec. 5.1015. The Carbon Dioxide Sequestration |
9 | | Administrative Fund. |
10 | | (30 ILCS 105/5.1016 new) |
11 | | Sec. 5.1016. The Carbon Dioxide Sequestration Long-Term |
12 | | Trust Fund. |
13 | | Section 910. Severability. The provisions of this Act are |
14 | | severable under Section 1.31 of the Statute on Statutes. |
15 | | Section 999. Effective date. This Act takes effect upon |
16 | | becoming law.". |