UNDERGROUND CO2 STORAGE ACT
The Act applies strictly to carbon dioxide storage and explicitly excludes extractable mineral resources, stating that its rights and requirements are subordinate to existing rights related to oil, gas, and coal. New provisions include ownership rights to pore spaces and requirements for drilling near a storage facility to safeguard its integrity. A significant innovation introduced by the bill is the creation of the Carbon Dioxide Storage Administrative Fund and the Carbon Dioxide Long-Term Trust Fund, designed to cover regulatory oversight and long-term monitoring expenses.
SB2153, known as the Underground Carbon Dioxide Storage Act, aims to establish regulatory frameworks for the underground storage of carbon dioxide in Illinois. The bill recognizes the significance of capturing and permanently storing carbon dioxide to mitigate greenhouse gas emissions, thus promoting job creation and economic development in local communities. It provides that the storage operator must acquire a permit from the Department of Natural Resources to operate any storage facility, addressing public concerns regarding safety and regulatory oversight.
Notable points of contention may arise around property rights, particularly regarding pore space ownership and the rights of mineral lessees and owners situated above a storage facility. Disputes may develop over the integration of different ownership interests for pore space utilization, as the bill allows integration actions if owners do not consent, which could lead to conflicts over equitable compensation. Additionally, concerns from environmental groups may focus on the adequacy of safeguards against potential hazards associated with long-term carbon storage, including leakage and the impact on groundwater resources. The bill incorporates risk mitigation measures, yet debates about its effectiveness and investor interests in the carbon storage industry are likely to continue.