HB0569ham001 103RD GENERAL ASSEMBLY

Rep. Jay Hoffman

Filed: 3/12/2024

10300HB0569ham001 LRB103 04154 BDA 70775 a

AMENDMENT TO HOUSE BILL 569

AMENDMENT NO. ______. Amend House Bill 569 by replacing everything after the enacting clause with the following:

"Section 1. Short title. This Act may be cited as the Climate and Landowner Protection Act.

Section 5. Statement of policy. The General Assembly finds that it is in the public interest to promote the permanent underground sequestration of carbon dioxide. Underground sequestration of carbon dioxide benefits the citizens of this State by reducing greenhouse gas emissions and by supporting jobs and economic development in local communities. This State has geology that is particularly well suited for underground sequestration of carbon dioxide, as demonstrated by the presence of the first commercial-scale carbon sequestration project in the United States. Therefore, it is the policy of this State to promote the use and employment of technologies that enable the capture of carbon dioxide for the purpose of storing the carbon dioxide underground in a permanent manner.

Section 10. Applicability. This Act applies to the underground sequestration of carbon dioxide.

Section 15. Definitions. As used in this Act:

"Affected pore space owner" means (1) a pore space owner who does not agree to integrate the pore space owner's interests into a sequestration facility and is required to do so by an order issued by the Department in accordance with Section 25 and (2) any other pore space owner within the sequestration facility who has not granted surface access to the sequestration operator.

"Agency" means the Illinois Environmental Protection Agency.

"Applicable underground injection control program" means, for each Class VI injection well, the program provided by the federal Safe Drinking Water Act for that class of well in this State, including, but not limited to, the most recent amendments to that program.

"Carbon dioxide" means the chemical compound that is composed of one carbon atom and 2 oxygen atoms.

"Carbon dioxide pipeline" has the meaning given in Section 10 of the Carbon Dioxide Transportation and Sequestration Act.

"Carbon dioxide plume" means the subsurface, 3-dimensional extent of an injected carbon dioxide stream.

"Carbon dioxide stream" means carbon dioxide that has been captured from an emission source or the atmosphere and incidental associated substances derived from the source materials and the capture process, as well as any substances added to the stream to enable or improve the injection process. "Carbon dioxide stream" does not include any carbon dioxide stream that is "hazardous waste" as defined in 40 CFR 261.

"Class VI injection well" means a well that is used to inject one or more carbon dioxide streams into a sequestration facility under a Class VI well permit.

"Class VI well permit" means a Class VI well permit issued under the applicable underground injection control program that allows a person, trust, corporation, or other entity to inject one or more carbon dioxide streams for underground sequestration of carbon dioxide.

"Department" means the Department of Natural Resources.

"Mineral lessee" means a lessee who is identified, by the records of the recorder of deeds for each county containing a portion of a proposed or permitted sequestration facility, as a person who holds an interest that has been severed from the surface estate by grant, exception, reservation, lease, or any other means in minerals that are located on real property above, below, or within the proposed or permitted sequestration facility. "Mineral lessee" includes a person who is identified as a successor to a mineral lessee by the records of the recorder of deeds.

"Mineral owner" means an owner who is identified, by the records of the recorder of deeds for each county containing a portion of a proposed or permitted sequestration facility, as a person who holds an interest that has been severed from the surface estate by grant, exception, reservation, lease, or any other means in minerals that are located on real property above, below, or within the proposed or permitted sequestration facility. "Mineral owner" includes a person who is identified as a successor to a mineral owner by the records of the recorder of deeds.

"Pore space" means subsurface cavities or voids that can be used as containment for underground sequestration of carbon dioxide.

"Pore space owner" means, with respect to any parcel of property, the surface owner as set forth in subsection (a) of Section 20.

"Project labor agreement" means a pre-hire collective bargaining agreement that covers all terms and conditions of employment on a specific construction project and includes the following:

(1) provisions establishing the minimum hourly wage for each class of labor organization employee;

(2) provisions establishing the benefits and other compensation for each class of labor organization employee;

(3) provisions establishing that no strike or disputes will be engaged in by the labor organization employees;

(4) provisions establishing that no lockout or disputes will be engaged in by the general contractor building the project;

(5) provisions permitting the selection of the lowest qualified responsible bidder, without regard to union or non-union status at other construction sites; and

(6) provisions setting forth goals for apprenticeship hours to be performed by minorities and women, as defined under the Business Enterprise for Minorities, Women, and Persons with Disabilities Act, and setting forth goals for total hours to be performed by minorities and women.

"Property Index Number" has the meaning given in Section 1-120 of the Property Tax Code.

"Property interest owner" means a person who is identified, by the records of the recorder of deeds for each county containing a portion of the proposed sequestration facility or sequestration facility, as a person who holds a fee simple interest, easement, other freehold interest, or leasehold in the surface or subsurface of the property, which may include mineral rights. "Property interest owner" includes a person who is identified as a successor to a property interest owner by the records of the recorder of deeds.

"Proposed sequestration facility" means a subsurface sedimentary stratum, formation, aquifer, cavity, or void that is naturally or artificially created, or is capable of being made suitable for receiving and containing a carbon dioxide plume for a long term, as delineated by computational modeling for a Class VI well permit application, and that a sequestration facility permit applicant proposes to develop as a sequestration facility for the underground sequestration of carbon dioxide. "Proposed sequestration facility" does not include an application for the modification of a sequestration facility permit.

"Sequestration facility" means the subsurface volume and confining zone capable of receiving and containing a carbon dioxide plume for a long term, as delineated by computational modeling for an approved Class VI well permit or an amendment to a Class VI well permit of a sequestration operator.

"Sequestration operator" means a person, trust, corporation, or other entity that operates at least one Class VI injection well and a sequestration facility.

"Surface owner" means the fee simple owner of the surface estate of a parcel of property who is identified by the records of the recorder of deeds for a county. "Surface owner" includes a person who is identified as a successor to a surface owner by the records of the recorder of deeds.

"Underground sequestration of carbon dioxide" means the injection of one or more carbon dioxide streams into underground geologic formations under at least one Class VI well permit for long-term sequestration.

Section 20. Pore space ownership.

(a) As to any parcel of property, title to the pore space located below the surface thereof is hereby vested in the surface owner of the overlying surface estate subject to existing rights.

(b) A conveyance of title to the surface estate conveys title to the pore space in all strata underlying the surface estate subject to existing rights.

(c) Title to pore space may not be severed from the surface estate. An instrument or arrangement that seeks to sever title to pore space from title to the parcel of property is void as to the severance of the pore space from the surface interest. Nothing in this Section affects transactions completed before the effective date of this Act.

(d) Neither a grant of an easement to use pore space nor a lease of pore space is a severance prohibited by subsection (c).

(e) Neither the grant of an easement to use pore space nor the lease of pore space confers any right to enter upon or otherwise use the surface of the parcel of property unless the grant of easement or the lease expressly so provides.

(f) Nothing in this Section shall be construed to change or alter the common law existing as of the effective date of this Act as it relates to the rights belonging to, or the dominance of, the mineral estate.

Section 25. Integration and unitization of ownership interests.

(a) If at least 2 pore space owners own pore space located within a proposed sequestration facility, the owners may agree to integrate the owners' interests to develop the pore space as a proposed sequestration facility for the underground sequestration of carbon dioxide.

(b) If all of the pore space owners within a proposed or permitted sequestration facility do not agree to integrate the pore space owners' interests, a sequestration operator or sequestration facility permit holder may petition the Department to issue an order requiring the pore space owners to integrate their interests and authorizing the sequestration operator or sequestration facility permit holder to develop and use the integrated pore space as a sequestration facility for the underground sequestration of carbon dioxide to serve the public interest subject to subsection (c). The petition shall include, but is not limited to:

(1) the name and address of the petitioners;

(2) the Property Index Numbers or legal descriptions for the parcels of property and a geologic description of the pore space within the proposed or permitted sequestration facility;

(3) the names and addresses of all pore space owners owning property within the proposed or permitted sequestration facility as disclosed by the records of the office of the recorder for the county or counties in which the proposed or permitted sequestration facility is situated and a list of the pore space owners who have not agreed to integrate their interests;

(4) a statement that the petitioner has exercised due diligence to locate each pore space owner and to seek an agreement with each for pore space rights for the sequestration facility;

(5) a statement of the type of operations for the proposed or permitted sequestration facility;

(6) a plan for determining the quantity of pore space sequestration capacity to be assigned to each separately owned parcel of property based on the surface area acreage overlying the proposed or permitted sequestration facility and for using the surface for Class VI well permit required activities under Section 35;

(7) the method by which pore space owners will be equitably compensated for use of the pore space; and

(8) a nonrefundable application fee of $2,500.

(c) The Department, upon the petition to issue an order to integrate the owners' interests and allow unitization in a proposed or permitted sequestration facility, shall fix a time and place for a public hearing within 90 days. The Department, at the petitioner's expense, shall give notice of such hearing under this Section prior to the hearing by:

(1) mailing such notice by certified mail, return receipt requested, directed to the persons named in the petition at their last known addresses at least 30 days before the hearing; and

(2) publishing such notice once each week for 2 consecutive weeks, with the first notice appearing at least 30 days before the hearing in a newspaper of general circulation that is published in each county containing some portion of the proposed or permitted sequestration facility.

(d) All notices for public hearings under this Section shall be issued in the name of the State of Illinois and shall be signed by the Director of Natural Resources. The notices shall specify the number and style of the proceedings, the time and place of the hearing, that the sole purpose of the hearing is for the integration of pore space for the operation of a sequestration facility, the name of the petitioners, and Property Index Numbers or legal descriptions of the parcels of property contained within the proposed or permitted sequestration facility.

(e) The Department shall issue an order integrating pore space under subsection (b) within 60 days after the hearing upon a showing that:

(1) the petitioner has obtained a Class VI well permit or, if the well permit application is still pending at least one year from the date the application has been filed, that the petitioner has received a Finding of Administrative Completeness from the applicable underground injection control program;

(2) the petitioner has made a good faith effort to seek an agreement with all pore space owners located within the proposed or permitted sequestration facility;

(3) the petitioner has obtained the rights from pore space owners of pore space underlying at least 71% of the surface area above the proposed or permitted sequestration facility; and

(4) all pore space owners who do not agree to integrate their interests to operate the pore space as a proposed or permitted sequestration facility for the underground sequestration of carbon dioxide are or will be equitably compensated for use of the pore space and use of the surface for Class VI well permit required activities in accordance with Section 35.

(f) The Department's order under this Section is not effective until the petitioner has been issued a Class VI well permit from the applicable underground injection control program.

Section 30. Sequestration facility permits.

(a) Sequestration facility permits have the following requirements:

(1) Except as provided in Section 75, a sequestration operator may not operate a sequestration facility in this State without:

(A) a Class VI well permit; and

(B) a valid sequestration facility permit.

(2) Each intended sequestration operator of a proposed sequestration facility must obtain a sequestration facility permit. A sequestration facility permit may be transferred or assigned from one sequestration operator to another sequestration operator with notice to the Department, which may adopt rules governing such transfers.

(3) Applications for a sequestration facility permit shall be filed with the Department in the form and manner prescribed by the Department.

(4) An application under paragraph (3) of this subsection must include:

(A) a filing fee of $1,000;

(B) the signature of the applicant;

(C) a statement verifying that the information submitted is true, accurate, and complete to the best of the applicant's knowledge;

(D) a statement that the interests of mineral lessees or mineral owners will not be adversely affected;

(E) documentation describing the scope of the proposed sequestration facility;

(F) information on the seismic history including the presence and depth of seismic sources; and

(G) an estimate of the amount of carbon dioxide to be injected into a proposed sequestration facility.

If a mineral owner or mineral lessee demonstrates a potential for adverse effects, the mineral owner or mineral lessee and the applicant may enter into an agreement or the applicant, mineral owner, or mineral lessee may request the Department to establish sequestration facility permit conditions to mitigate potential adverse effects to the interests of a mineral lessee or mineral owner.

(b) The following procedural requirements apply to applications for sequestration facility permits:

(1) The Department shall review an application submitted under paragraph (3) of subsection (a) for completeness within 30 days of receipt. If the Department determines that the application is incomplete, inaccurate, or both, the Department shall promptly return the application to the applicant with a written explanation of any deficiencies. Otherwise, the Department shall promptly notify the applicant in writing that the application is complete.

(2) If the Department returns an application to an applicant under paragraph (1) of this subsection, the Department shall inform the applicant of the right to file a corrected application with the Department. Upon receiving any corrected application, the Department shall review the application for completeness within 30 days. If the Department determines that the corrected application remains incomplete, inaccurate, or both, the Department shall promptly return the application to the applicant with a written explanation of any deficiencies and an opportunity to resubmit another corrected application to the Department under this paragraph (2). Otherwise, the Department shall promptly notify the applicant in writing that the application is complete.

(3) Upon receiving notification that the application or corrected application is complete, the applicant shall:

(A) not more than 60 days after receiving the notice that the application or corrected application is complete:

(i) place a copy of the application in a public library located in each county in which the sequestration facility is proposed to be located for public inspection;

(ii) publish notice under the Notice By Publication Act in each county in which the sequestration facility is proposed to be located and the name and address of each library in which a copy of the application is placed as required by subdivision (i); and

(iii) provide mailed notice to each known and locatable surface owner within the proposed sequestration facility; and

(B) not more than 30 days after the publication of the notice under subdivision (ii) of subparagraph (A), provide to the Department proof of publication of notice.

(4) Not later than 90 days after receiving proof of publication of notice under subparagraph (B) of paragraph (3), the Department shall notify the applicant in writing that the Department has either approved or denied the application with an explanation of the reasons for any denial.

(c) If a sequestration facility permit applicant satisfies the requirements of subsection (a) and subsection (b), the Department shall issue a sequestration facility permit to the applicant within 60 days, which shall be effective upon issuance.

(d) The Department may adopt rules for the data acquisition necessary to allow the Department to determine whether there is a potential risk that carbon dioxide injection at a proposed or permitted sequestration facility will trigger a seismic event sufficient to compromise subsurface containment.

(e) If a sequestration facility permit applicant identifies information as trade secret or confidential and proprietary information in its permit application, the Department shall take all necessary precautions to avoid public disclosure of that information, as set forth in the Illinois Freedom of Information Act.

If anyone other than the sequestration facility permit applicant files with the Department a request for release of the confidential information identified in subsection (d), including a statement of the reasons that the information should be disclosed, the Department shall consult with the sequestration facility permit applicant. The Department may release information identified in subsection (d) only if the sequestration facility permit applicant consents.

Section 35. Surface access for pore space owners. If a sequestration operator must enter upon the surface property of an affected pore space owner to comply with Class VI well permit requirements for the purposes of monitoring a sequestration facility or to respond to an emergency causing immediate risk to human health, environmental resources, or infrastructure, any such Class VI well permit required activity must be undertaken in such a way as to minimize the impact to the surface of the parcel of property and to ensure that the following requirements are met:

(1) The Class VI well permit required activity shall be limited to surface monitoring activities, such as geophysical surveys, but does not include the installation of surface infrastructure except as provided in paragraphs (2) and (3).

(2) Shallow groundwater monitoring wells shall be allowed to be installed on such property only if the carbon dioxide plume may have unexpectedly migrated and the applicable underground injection control program for the Class VI injection well requires monitoring of groundwater for potential carbon dioxide impact.

(3) Injection wells, deep monitoring wells, and surface infrastructure other than shallow groundwater monitoring wells as allowed by paragraph (2) will not be located on the parcel of property of an affected pore space owner without the express written consent of such owner.

Section 40. Notice for surface access. Except in an emergency causing immediate risk to human health, environmental resources, or infrastructure, a sequestration operator with a valid Class VI well permit shall not enter upon the surface property for purposes of Class VI well permit required activities of any affected pore space owner until 30 days after providing written notice to the affected pore space owner by registered mail and after providing a second notice to the pore space owner of record, as identified in the records of the relevant county tax assessor, by telephone or email or by registered mail in the event the property owner has not been notified by other means, at least 3 days, but not more than 15 days, prior to the stated date in the notice, identifying the date when access will first begin on the owner's property and informing the affected pore space owner that the owner or the owner's agent may be present when the access occurs.

Section 45. Compensation for damages to the surface.

(a) An affected pore space owner is entitled to reasonable compensation from the sequestration operator for damages resulting from surface access to the affected pore space owner's property for Class VI well permit required activities, including:

(1) compensation for damage to growing crops, trees, shrubs, fences, roads, structures, improvements, personal property, and livestock thereon and compensation for the loss of the value of a commercial crop impacted by Class VI well permit activities by the sequestration operator; the value of the crop shall be calculated based on local market price by:

(A) determining the average per acre yield for the same crop on comparable adjacent acreage;

(B) determining the price received for the sale of the same crop on comparable adjacent acreage;

(C) determining the acreage of the area impacted by Class VI well permit activities and applying the determined price; and

(D) the initial determination of the value of the crop shall be determined by the affected pore space owner and submitted to the sequestration operator;

(2) compensation to return the surface estate, including soil conservation practices, such as terraces, grassed waterways, and other conservation practices, to a condition as near as practicable to the condition of the surface prior to accessing the property;

(3) compensation for damage to the productive capability of the soil resulting from compaction or rutting, including, but not limited to, compensation for when a sequestration operator accesses a property where excessively wet soil conditions would not allow normal farming operations due to increased risk of soil erosion, rutting, or compaction; if there is a dispute between the sequestration operator and the affected pore space owner regarding the value of the damage to the productive capability of the soil, the sequestration operator shall consult with a representative of the soil and water conservation district in the respective county where the parcel of property is located for recommendations to restore the productive capability of the soil; and

(4) compensation for damage to surface and subsurface drainage, including, but not limited to:

(A) compensation in that the sequestration operator shall perform immediate and temporary repairs for damage that occurs to subsurface drainage tiles that have water actively flowing through them at the time of damage; and

(B) compensation such that the sequestration operator shall compensate the affected pore space owner to permanently restore drainage to a condition as near as practicable to the condition of the drainage prior to accessing the property.

(b) The compensation for damages required by subsection (a) shall be paid in any manner mutually agreed upon by the sequestration operator and the affected pore space owners. Unless otherwise agreed, the sequestration operator shall tender to the surface owner payment by check or draft in accordance with this Section 45 no later than 60 days after completing the Class VI well permit activities if the occurrence or value of damages is not disputed. The pore space owner's remedy for unpaid or disputed compensation shall be an action for damages in any court of competent jurisdiction for the parcel of property or the greater part thereof on which the Class VI well permit activities were conducted and shall be entitled to recover reasonable damages and attorney's fees if the pore space owner prevails.

Section 50. Fees.

(a) Beginning after the adoption of rules under paragraph (4) of subsection (d) of this Section, the sequestration operator shall be assessed the following fees at the conclusion of each State fiscal year:

(1) a fee of $0.16 for every ton of carbon dioxide injected into the sequestration facility that the sequestration operator operates in that fiscal year to be allocated to the Carbon Dioxide Sequestration Administrative Fund;

(2) a fee of $0.04 for every ton of carbon dioxide injected into a sequestration facility in that fiscal year to be allocated to the Carbon Dioxide Sequestration Long-Term Trust Fund; and

(3) a fee of $0.01 for every ton of carbon dioxide injected into a sequestration facility in that fiscal year to be deposited into the Carbon Dioxide Local First Responders Fund.

(b) The sequestration operator shall be assessed a one-time fee of $1,000 upon approval of a sequestration facility permit to be deposited into the Carbon Dioxide First Responders Fund promptly upon approval of the sequestration facility permit.

(c) The fee assessed to the sequestration operator under paragraph (1) of subsection (a) shall be reduced to $0.04 for every ton of carbon dioxide injected into a sequestration facility in that fiscal year if the sequestration operator successfully demonstrates to the Department that the following types of construction and maintenance were conducted in Illinois during that fiscal year by the sequestration operator and were performed by contractors and subcontractors signatory to a project labor agreement used by the building and construction trades council with relevant geographic jurisdiction:

(1) construction and maintenance of equipment associated with the capture of carbon dioxide, including, but not limited to, all clearing, site preparation, concrete, equipment, and appurtenance installation;

(2) construction and maintenance of carbon dioxide pipelines used to transport carbon dioxide streams to the sequestration facility, including, but not limited to, all clearing, site preparation, and site remediation;

(3) construction and maintenance of compressor stations used to assist in the transport of carbon dioxide streams via carbon dioxide pipeline, including, but not limited to, all clearing, site preparation, concrete, equipment, and appurtenance installation; and

(4) construction of carbon dioxide injection wells used at the sequestration facility, including, but not limited to, all clearing, site preparation, drilling, distribution piping, concrete, equipment, and appurtenance installation.

(d) Annual fees imposed under subsection (a) shall be segregated as follows:

(1) 50% of the fees assessed under paragraph (1) of subsection (a) shall be deposited into the Carbon Dioxide Sequestration Administrative Fund, and 50% of the fees assessed under paragraph (1) of subsection (a) shall be held in escrow by the sequestration operator for the Carbon Dioxide Sequestration Administrative Fund under rules adopted by the Department.

(2) 100% of the fees assessed by paragraph (2) of subsection (a) shall be held in escrow by the sequestration operator for the Carbon Dioxide Long-Term Trust Fund under rules adopted by the Department.

(3) The funds held in escrow by the sequestration operator pursuant to paragraph (1) and (2) shall not be deemed funds of the sequestration operator unless and until refunded to the sequestration operator under subsection (e) below and shall instead be deemed funds escrowed for the sole favor of the Department to be used solely at the direction of the Department pursuant to the terms of this Act and the rules adopted by the Department in connection therewith.

(4) The Department shall, within one year after the date of this Act, adopt rules with respect to the escrows to be established under paragraphs (1) and (2). Such rules may require deposit of additional (a)(1) funds into the Carbon Dioxide Sequestration Administrative Fund as needed to meet the requirements of the Act, provided that such rules shall permit and establish requirements regarding investment of the escrowed funds.

(e) Upon site closure of the Class VI injection wells, all moneys accumulated by the sequestration operator in escrow pursuant to paragraphs (1) and (2) of subsection (d) in relation to such wells shall be deposited into the Carbon Dioxide Long-Term Trust Fund. The total amount deposited shall not exceed the anticipated cost of oversight and management following closure of the sequestration facility and associated Class VI injection wells, as determined by the Department. Any moneys remaining in the escrow in excess of the anticipated cost shall be refunded promptly to the sequestration operator.

(f) The Department may modify, by rule, the fee amounts authorized by paragraph (1) of subsection (a) to ensure that sufficient resources exist to achieve the requirements of this Act. Changes must be based on the anticipated costs to the Department of carrying out the requirements of the Act.

(g) If the Department modifies the fee amounts established in this Section, the fees assessed for the Carbon Dioxide Sequestration Administration Fund shall maintain a 4 times higher per ton fee when the storage operator does not demonstrate paragraphs (1), (2), (3), and (4) of subsection (c) to the Department.

Section 55. Funds.

(a) The Carbon Dioxide Sequestration Administrative Fund is hereby created as a special fund within the State treasury to be administered by the Department. Moneys in the Fund may be used:

(1) to defray expenses incurred by the Department for the regulation of sequestration facilities during their construction, operational, and post-injection phases;

(2) to transfer funds to the Agency or other State agencies for the purpose of implementing and enforcing the applicable underground injection control program for Class VI injection wells; or

(3) if the Carbon Dioxide Long-Term Trust Fund becomes depleted, to defray expenses incurred by the Department for the long-term monitoring and management of sequestration facilities after the Department issues a certificate of project completion.

(b) The Carbon Dioxide Sequestration Long-Term Trust Fund is hereby created as a special fund within the State treasury to be administered by the Department. Moneys in the Carbon Dioxide Sequestration Long-Term Trust Fund may only be used to defray expenses incurred by the Department for the long-term monitoring and management of sequestration facilities in this State, after site closure of the Class VI injection wells. Expenses may include response to any liabilities associated with the sequestration facility and sequestered carbon dioxide after the Department issues a certificate of project completion.

(c) There is hereby created the Carbon Dioxide Local First Responders Fund to be a fund locally held by the Department outside of the State treasury and administered by the Department. The fund is created to make grants to counties and local municipalities to provide training and support emergency preparedness services to local first responders for localities where sequestration facilities or carbon dioxide pipelines are located and to defray expenses of local first responders in responding to emergencies at sequestration facilities or carbon dioxide pipelines. Grants to support local first responders may be used for:

(1) preparing emergency response plans;

(2) conducting training and preparing training materials for first responders, residents, businesses, and other local entities; and

(3) obtaining equipment for first responders, including personal protective equipment.

Section 60. Requirements for drilling near a sequestration facility.

(a) Anyone intending to drill a well shall provide written notice to a sequestration operator at least 30 days before drilling a well if the well will be no more than:

(1) 330 feet from the surface location of a Class VI injection well; or

(2) 500 feet from the uppermost confining zone of a sequestration facility.

(b) A well drilled under subsection (a) must be drilled in compliance with the requirements of:

(1) the Department to preserve the integrity of the sequestration facility;

(2) a well permit issued by the Department or the applicable underground injection program; and

(3) any other applicable rules.

(c) The Department shall not authorize any well drilled under subsection (a) without either:

(1) the consent of the sequestration operator; or

(2) if an agreement cannot be reached, an order from the Department, following public hearing, determining that the activity under subsection (a) will not adversely affect the sequestration facility.

(d) The rules adopted pursuant to this Section 60 shall establish procedures requiring coordination between anyone intending to drill a well under subsection (a) and potentially affected sequestration operators or sequestration facilities.

Section 65. Applicability of certain tort claims.

(a) A private claim shall not be actionable against a sequestration operator who is conducting or has conducted underground sequestration of carbon dioxide in accordance with a valid Class VI well permit unless the claimant proves that injection or migration of carbon dioxide (1) constitutes a private nuisance in State common law and (2) has caused physical injury to a person, animal, or tangible property.

(b) A private claimant shall only be permitted to recover money damages under subsection (a) for nonspeculative tangible losses.

(c) A private claimant may seek punitive damages in accordance with Section 2-604.1 of the Code of Civil Procedure only if the sequestration operator knowingly or willfully violates the requirements of a Class VI well permit and acts with reckless disregard for public safety.

Section 70. Certification of project completion.

(a) Upon application from a sequestration operator, the Department shall consider whether each of the following factors is satisfied in determining whether to issue a certificate of project completion. The Department shall issue the certificate if the Department finds that the sequestration operator:

(1) is in compliance with applicable laws governing the sequestration facility;

(2) shows that the sequestration facility is reasonably expected to retain the carbon dioxide stored therein;

(3) shows that any long-term monitoring wells, equipment, and facilities intended for future use after the closure period are in good condition and retain mechanical integrity;

(4) shows that injection wells have been plugged;

(5) shows that equipment and facilities, not including fixed structures and long-term monitoring equipment and wells intended for future use, have been removed; and

(6) shows the following with respect to site closure:

(A) the sequestration operator has provided a notice of intent for site closure to the applicable underground injection control program;

(B) site closure has been authorized by the applicable underground injection control program; and

(C) the sequestration operator has provided to the applicable underground injection control program the required site closure report.

(b) Not later than 90 days after receiving an application from the sequestration operator, the Department shall either:

(1) issue a certificate of project completion; or

(2) if the Department determines that the application for a certificate of project completion is incomplete, inaccurate, or both, promptly return the application to the sequestration operator with a written explanation of any deficiencies.

(c) If the Department returns the application to the sequestration operator under subsection (b), the Department shall inform the sequestration operator of the right to file a corrected application with the Department. Upon receiving any corrected application, the Department shall take action on the application in accordance with subsection (b).

(d) Upon issuance of a certificate of project completion, the sequestration facility and all carbon dioxide stored therein are immediately transferred to the State. Sequestration facility acquisition by the State under this subsection (d) includes all rights and interests in and all responsibilities and potential liability other than criminal or contractual liability associated with the stored carbon dioxide and the sequestration facility, provided, however, that liability is not transferred to the State to the extent that the Department determines, after notice and hearing, that:

(1) the sequestration operator violated a duty related to the sequestration facility and carbon dioxide stored therein imposed on the sequestration operator by Illinois law or rule or by the applicable underground injection control program that was not remedied prior to approval of site closure and any applicable statutes of limitation have not run and the liability arises out of that violation;

(2) the sequestration operator provided deficient or erroneous information that was material and relied upon by the Agency or the Department to support approval of site closure; and

(3) there is fluid migration for which the sequestration operator is responsible that causes or threatens imminent and substantial endangerment to an underground source of drinking water;

A sequestration operator may appeal any finding under this subsection in a court of competent jurisdiction; and

Notwithstanding any other provision of this subsection (d), no party may transfer to the State, and the State may not accept, any property interests or rights that the party does not own or have legal authority to transfer.

(e) Unless there is documentation to the contrary, the sequestration operator holds title to the carbon dioxide injected into and stored in a sequestration facility until and unless:

(1) the sequestration operator obtains a certificate of project completion from the Department; or

(2) the sequestration operator expressly conveys such title to a third party.

Section 75. Preexisting Class VI injection wells. A sequestration operator may operate without a sequestration facility permit issued by the Department under subparagraph (B) of paragraph (1) of subsection (a) of Section 30 if, on or before the effective date of this Act, it has either (1) obtained a Class VI well permit or (2) applied for a Class VI well permit and a Completeness Determination has been issued by the United States Environmental Protection Agency and an order from the Department to require integration of pore space ownership interests under subsection (b) of Section 25 is not required.

Section 80. Public participation and environmental justice.

(a) The Department shall coordinate with the applicable underground injection control program to ensure meaningful and inclusive public participation procedures for the issuance of Class VI well permits and sequestration facility permits.

(b) Public participation procedures may include, but are not limited to:

(1) public notice of the submission of permit applications;

(2) public notice of any draft and final permitting actions;

(3) an opportunity for submission of public comments;

(4) an opportunity for public hearing;

(5) publication of a summary and response to public comments; and

(6) publication of the administrative record for permits in a format and location that is easily accessible to the affected community.

(c) Public participation procedures, including additional public participation procedures tailored to communities with potential environmental justice concerns, which are completed by the applicable underground injection control program, are not required to be separately completed by the Department.

(d) In addition to those public participation procedures required by the applicable underground injection control program, the applicant shall also hold one informational meeting in each county where the project will be developed. The applicant shall consult with the Agency's Environmental Justice Officer on meeting best practices to ensure meaningful and inclusive public participation.

Section 85. Enhanced recovery. A sequestration facility permit shall not authorize the injection of carbon dioxide streams for enhanced oil or gas recovery.

Section 90. Primacy. The Agency shall not enforce the rules in 35 Ill. Adm. Code 730 Subpart H until the United States Environmental Protection Agency promulgates final approval to Illinois for Class VI injection well primary enforcement responsibility (primacy), whereby such rules, as may be amended, become the applicable underground injection control program for Class VI injection wells in Illinois.

Section 95. Liability of sequestered carbon dioxide release responders.

(a) Notwithstanding any other provision of law, a person is not liable for costs or damages that result from action taken or omitted to be taken in the course of rendering care, assistance, or advice as directed by a federal or State official with responsibility for responding to a carbon dioxide release from a sequestration facility.

(b) Subsection (a) does not apply:

(1) to a responsible party as defined under Section 1001 of the U.S. Oil Pollution Act of 1990, Public Law No. 101-380;

(2) with respect to personal injury or wrongful death; or

(3) if such person is grossly negligent or engages in reckless, willful, wanton, or intentional misconduct.

Section 100. Rules. The Department shall adopt rules to implement this Act within 180 days after the effective date of this Act.

Section 900. The Illinois Administrative Procedure Act is amended by adding Section 5-45.55 as follows:

(5 ILCS 100/5-45.55 new)

Sec. 5-45.55. Emergency rulemaking; Climate and Landowner Protection Act. To provide for the expeditious and timely implementation of the Climate and Landowner Protection Act, emergency rules implementing the Act may be adopted in accordance with Section 5-45 by the Department of Natural Resources. The adoption of emergency rules authorized by Section 5-45 and this Section is deemed necessary for the public interest, safety and welfare.

This Section is repealed one year after the effective date of the Climate and Landowner Protection Act.

Section 905. The State Finance Act is amended by adding Section 5.1015 and 5.1016 as follows:

(30 ILCS 105/5.1015 new)

Sec. 5.1015. The Carbon Dioxide Sequestration Administrative Fund.

(30 ILCS 105/5.1016 new)

Sec. 5.1016. The Carbon Dioxide Sequestration Long-Term Trust Fund.

Section 910. Severability. The provisions of this Act are severable under Section 1.31 of the Statute on Statutes.

Section 999. Effective date. This Act takes effect upon becoming law.".