103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB2153 Introduced 2/10/2023, by Sen. Bill Cunningham SYNOPSIS AS INTRODUCED: New Act30 ILCS 105/5.990 new30 ILCS 105/5.991 new Creates the Underground Carbon Dioxide Storage Act. Provides that the Act applies to the underground storage of carbon dioxide but does not apply to extractable mineral resources, and the rights and requirements of the Act are subordinate to the rights pertaining to oil, gas, and coal resources. Provides that a storage operator may not operate a storage facility without a storage facility permit issued by the Department of Natural Resources. Includes provisions regarding: pore space ownership; integration of ownership interests; fees; requirements for drilling near a storage facility; the applicability of certain tort claims; certificate of project completion; and rulemaking. Creates the Carbon Dioxide Storage Administrative Fund and the Carbon Dioxide Long-Term Trust Fund. Makes corresponding changes in the State Finance Act. Effective immediately. LRB103 26410 AMQ 52773 b A BILL FOR 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB2153 Introduced 2/10/2023, by Sen. Bill Cunningham SYNOPSIS AS INTRODUCED: New Act30 ILCS 105/5.990 new30 ILCS 105/5.991 new New Act 30 ILCS 105/5.990 new 30 ILCS 105/5.991 new Creates the Underground Carbon Dioxide Storage Act. Provides that the Act applies to the underground storage of carbon dioxide but does not apply to extractable mineral resources, and the rights and requirements of the Act are subordinate to the rights pertaining to oil, gas, and coal resources. Provides that a storage operator may not operate a storage facility without a storage facility permit issued by the Department of Natural Resources. Includes provisions regarding: pore space ownership; integration of ownership interests; fees; requirements for drilling near a storage facility; the applicability of certain tort claims; certificate of project completion; and rulemaking. Creates the Carbon Dioxide Storage Administrative Fund and the Carbon Dioxide Long-Term Trust Fund. Makes corresponding changes in the State Finance Act. Effective immediately. LRB103 26410 AMQ 52773 b LRB103 26410 AMQ 52773 b A BILL FOR
103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB2153 Introduced 2/10/2023, by Sen. Bill Cunningham SYNOPSIS AS INTRODUCED:
New Act30 ILCS 105/5.990 new30 ILCS 105/5.991 new New Act 30 ILCS 105/5.990 new 30 ILCS 105/5.991 new
New Act
30 ILCS 105/5.990 new
30 ILCS 105/5.991 new
Creates the Underground Carbon Dioxide Storage Act. Provides that the Act applies to the underground storage of carbon dioxide but does not apply to extractable mineral resources, and the rights and requirements of the Act are subordinate to the rights pertaining to oil, gas, and coal resources. Provides that a storage operator may not operate a storage facility without a storage facility permit issued by the Department of Natural Resources. Includes provisions regarding: pore space ownership; integration of ownership interests; fees; requirements for drilling near a storage facility; the applicability of certain tort claims; certificate of project completion; and rulemaking. Creates the Carbon Dioxide Storage Administrative Fund and the Carbon Dioxide Long-Term Trust Fund. Makes corresponding changes in the State Finance Act. Effective immediately.
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A BILL FOR
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1 AN ACT concerning regulation.
2 Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4 Section 1. Short title. This Act may be cited as the
5 Underground Carbon Dioxide Storage Act.
6 Section 5. Statement of policy. The General Assembly finds
7 that it is in the public interest to promote the permanent
8 underground storage of carbon dioxide. Underground storage of
9 carbon dioxide benefits the citizens of this State by reducing
10 greenhouse gas emissions and by supporting jobs and economic
11 development in local communities. Therefore, it is the policy
12 of this State to promote the use and employment of
13 technologies that enable the capture of carbon dioxide for the
14 purpose of storing the carbon dioxide underground in a
15 permanent manner.
16 Section 10. Applicability.
17 (a) This Act applies to the underground storage of carbon
18 dioxide.
19 (b) Except as otherwise provided in this Act, this Act
20 does not apply to extractable mineral resources.
21 (c) The rights and requirements of this Act:
22 (1) are subordinate to the rights pertaining to oil,
103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB2153 Introduced 2/10/2023, by Sen. Bill Cunningham SYNOPSIS AS INTRODUCED:
New Act30 ILCS 105/5.990 new30 ILCS 105/5.991 new New Act 30 ILCS 105/5.990 new 30 ILCS 105/5.991 new
New Act
30 ILCS 105/5.990 new
30 ILCS 105/5.991 new
Creates the Underground Carbon Dioxide Storage Act. Provides that the Act applies to the underground storage of carbon dioxide but does not apply to extractable mineral resources, and the rights and requirements of the Act are subordinate to the rights pertaining to oil, gas, and coal resources. Provides that a storage operator may not operate a storage facility without a storage facility permit issued by the Department of Natural Resources. Includes provisions regarding: pore space ownership; integration of ownership interests; fees; requirements for drilling near a storage facility; the applicability of certain tort claims; certificate of project completion; and rulemaking. Creates the Carbon Dioxide Storage Administrative Fund and the Carbon Dioxide Long-Term Trust Fund. Makes corresponding changes in the State Finance Act. Effective immediately.
LRB103 26410 AMQ 52773 b LRB103 26410 AMQ 52773 b
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A BILL FOR
New Act
30 ILCS 105/5.990 new
30 ILCS 105/5.991 new
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1 gas, and coal resources; and
2 (2) may not adversely affect oil, gas, and coal
3 resources, except as is strictly necessary to construct
4 and maintain a storage facility that will provide for
5 permanent storage of carbon dioxide.
6 Section 15. Definitions. As used in this Act:
7 "Carbon dioxide" means the chemical compound composed of
8 one carbon and 2 oxygen atoms and includes phases, mixtures,
9 and combinations of carbon dioxide, whether fluid, liquid or
10 gaseous, stripped, segregated, or divided from any other fluid
11 stream thereof, plus incidental associated substances derived
12 from the source materials and the capture process, and any
13 substances added to the stream to enable or improve the
14 injection process.
15 "Carbon dioxide injection well" refers to a well that is
16 used to inject carbon dioxide into a storage facility pursuant
17 to a UIC Class VI well permit.
18 "Carbon dioxide plume" means the underground,
19 3-dimensional extent of an injected carbon dioxide stream.
20 "Department" means the Department of Natural Resources.
21 "Mineral lessee" means a lessee, identified by the records
22 of the recorder of deeds for each county containing a portion
23 of the proposed storage facility, who holds an interest in
24 minerals on real property that are located above, below, or
25 within the proposed storage facility that has been severed
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1 from the surface estate by grant, exception, reservation,
2 lease, or any other means.
3 "Mineral owner" means an owner identified by the records
4 of the recorder of deeds for each county containing a portion
5 of the proposed storage facility who holds an interest in
6 minerals on real property that are located above, below, or
7 within the proposed storage facility that has been severed
8 from the surface estate by grant, exception, reservation,
9 lease, or any other means.
10 "Pore space" means subsurface cavities or voids that can
11 be used as a storage space for carbon dioxide.
12 "Pore space owner" means a person, a trust, a corporation,
13 or another entity that has title to, a right to, or an interest
14 in pore space.
15 "Proposed storage facility" means a subsurface sedimentary
16 stratum, formation, aquifer, cavity, or void that is naturally
17 or artificially created for the use of, or is capable of being
18 made suitable for, injecting and storing carbon dioxide and
19 which a storage operator proposes to develop as a storage
20 facility for the underground storage of carbon dioxide.
21 "Storage facility" means the subsurface area consisting of
22 the extent of a carbon dioxide plume which is required to be
23 delineated in an approved UIC Class VI well permit or an
24 amendment to a UIC Class VI well permit of a storage operator.
25 "Storage operator" means a person, a trust, a corporation,
26 or another entity that operates a storage facility.
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1 "Surface or subsurface property interest owner" means a
2 property interest owner identified by the records of the
3 recorder of deeds for each county containing a portion of the
4 proposed storage facility who holds a fee simple interest,
5 other freehold interest, or leasehold in the surface or
6 subsurface of the property, which may include mineral rights.
7 "UIC Class VI well permit" means a permit issued under the
8 Underground Injection Control program of the federal Safe
9 Drinking Water Act that allows a person, a trust, a
10 corporation, or another entity to operate a carbon dioxide
11 injection well.
12 "Underground storage of carbon dioxide" means the
13 injection and permanent storage of carbon dioxide into
14 underground strata and formations pursuant to at least one UIC
15 Class VI well permit.
16 Section 20. Pore space ownership.
17 (a) Unless expressly modified, reserved, or altered by a
18 deed, conveyance, lease, or contract, the ownership of the
19 pore space underlying a surface estate is declared to be
20 vested in and owned by the owner or owners of the surface
21 estates above the pore space.
22 (b) This Act does not alter, amend, diminish, or
23 invalidate common law established prior to the effective date
24 of this Act regarding the relationship between the mineral
25 estate and the surface estate.
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1 (c) A grant of (i) an easement to use or (ii) a lease of
2 pore space for underground storage of carbon dioxide is in
3 perpetuity if specified by an easement or lease. Unless an
4 individual who obtains an easement or lease operates carbon
5 dioxide injection not later than 20 years after obtaining the
6 easement or lease, interest shall lapse, extinguish, and
7 revert to the owner of the surface estate.
8 Section 25. Integration of ownership interests.
9 (a) If at least 2 pore space owners own pore space located
10 within a proposed carbon dioxide storage area of a storage
11 facility, the owners may agree to integrate the owners'
12 interests to develop the pore space as a proposed storage
13 facility for the underground storage of carbon dioxide.
14 (b) If all of the owners of the pore space under subsection
15 (a) do not agree to integrate the owners' interests, the
16 Department may issue an order requiring the owners to
17 integrate the owners' interests and to develop the pore space
18 as a proposed storage facility for the underground storage of
19 carbon dioxide to serve the public interest subject to the
20 findings under subsection (c).
21 (c) Before issuing an order under subsection (b), the
22 Department must make the following findings:
23 (1) that the storage operator has undertaken specific
24 efforts to obtain a UIC Class VI well permit and is
25 reasonably likely to obtain such a permit;
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1 (2) that the storage operator has made a good faith
2 effort to obtain the consent of all pore space owners
3 located within the proposed storage facility;
4 (3) that the storage operator has obtained the consent
5 of the owners of the pore space underlying at least 61% of
6 the surface area above the proposed storage facility or
7 amended proposed storage facility; and
8 (4) that all pore space owners who do not agree to
9 integrate the owners' interests to develop the pore space
10 as a proposed storage facility for the underground storage
11 of carbon dioxide are or will be equitably compensated.
12 (d) Any unknown or missing pore space owner shall be
13 deemed to have consented to integrate the owner's interest if
14 the proposed storage operator complied with the notice
15 requirements in paragraph (3) of subsection (b) of Section 30.
16 Any unknown or missing pore space owner shall be deemed
17 eligible for equitable compensation pursuant to paragraph (4)
18 of subsection (c).
19 (e) A right to pore space granted by this Section does not
20 confer a right to enter upon, or otherwise use, the surface of
21 the land that is integrated under this Section unless provided
22 in an order requiring the owners to integrate the owners'
23 interests and to develop the pore space as a proposed storage
24 facility for the underground storage of carbon dioxide.
25 Section 30. Injection permits.
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1 (a) Injection permits have the following requirements:
2 (1) A storage operator may not operate a storage
3 facility in this State without:
4 (A) a UIC Class VI well permit; and
5 (B) a valid permit issued by the Department.
6 (2) If a storage facility is owned by an entity other
7 than the storage operator, the storage operator shall be
8 responsible for obtaining a permit for a storage facility
9 under paragraph (1). A permit for a storage facility may
10 be transferred or assigned from one storage operator to
11 another storage operator.
12 (3) An entity shall apply to the Department for a
13 permit for a storage facility in a form and manner
14 prescribed by the Department.
15 (4) An application under paragraph (3) must include
16 the following:
17 (A) a filing fee of $1,000;
18 (B) the signature of the applicant;
19 (C) a statement verifying that the information
20 submitted is true, accurate, and complete to the best
21 of the applicant's knowledge;
22 (D) a statement that the interests of a mineral
23 lessee or mineral owner will not be adversely
24 affected. If a mineral owner or mineral lessee is
25 adversely affected, the adversely affected mineral
26 owner or mineral lessee and the applicant may enter
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1 into an agreement under Section 25;
2 (E) documentation describing the scope of the
3 proposed project and copies of any relevant federal
4 permits, including UIC Class VI well permits, once
5 obtained; and
6 (F) an estimate of the amount of carbon dioxide to
7 be injected into a storage facility.
8 (b) Injection permit applications have the following
9 procedural requirements:
10 (1) The Department shall review an application
11 submitted under subsection (a). If the Department
12 determines that the application is complete, the
13 Department shall notify the applicant. If the Department
14 determines that the application is incomplete, inaccurate,
15 or both, the Department shall return the application to
16 the applicant.
17 (2) If the Department returns an application to an
18 applicant under paragraph (1), the Department shall inform
19 the applicant in writing that the applicant may file a
20 corrected application not more than 60 days after the
21 receipt of the returned application. Upon receiving a
22 corrected application, the Department shall review the
23 application. If the Department determines that the
24 corrected application is complete, the Department shall
25 notify the applicant.
26 (3) Upon receiving notification that the application
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1 or corrected application is complete, the applicant shall:
2 (A) not more than 60 days after receiving the
3 notice that the application or corrected application
4 is complete:
5 (i) place a copy of the application in a
6 public library located in each county in which the
7 storage facility is proposed to be located for
8 public inspection;
9 (ii) publish notice under the Notice By
10 Publication Act in each county in which the
11 storage facility is proposed to be located and the
12 name and address of each library in which a copy of
13 the application is placed as required by item (1);
14 and
15 (iii) provide mailed notice to each known and
16 locatable surface estate, mineral estate, and pore
17 space owner within or adjacent to the storage
18 facility; and
19 (B) not more than 30 days after the publication or
20 delivery of the notice under subparagraph (A), provide
21 to the Department proof of publication of notice.
22 (4) Not later than 90 days after receiving proof of
23 publication of notice under subparagraph (B) of paragraph
24 (3), the Department shall notify the applicant in writing
25 that the Department has either approved or denied the
26 application.
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1 (c) If the Department approves an application under this
2 Section, the Department shall issue to the applicant a storage
3 facility permit.
4 (d)(1) If a storage operator identifies information as
5 trade secret or confidential and proprietary information in
6 its permit application, the Department shall take all
7 necessary precautions to avoid public disclosure of that
8 information.
9 (2) If any entity other than the storage operator files
10 with the Department a request for release of the confidential
11 information identified in paragraph (1) including a statement
12 of the reasons that the information should be disclosed, the
13 Department shall consult with the storage operator. The
14 Department may only release information identified in
15 paragraph (1) if the storage operator consents.
16 Section 35. Fees.
17 (a) At the conclusion of each calendar year, the storage
18 operator shall pay the Department a fee of $0.06 for every ton
19 of carbon dioxide injected into a storage facility in that
20 year, deposited into the Carbon Dioxide Storage Administrative
21 Fund.
22 (b) Upon approval by the Department of an application for
23 certificate of completion, the storage operator shall pay an
24 additional one-time transfer fee of $0.02 per ton of carbon
25 dioxide injected and stored at the storage facility over the
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1 permit period, deposited into the Carbon Dioxide Storage
2 Long-Term Trust Fund.
3 Section 40. Funds.
4 (a) There is hereby created the Carbon Dioxide Storage
5 Administrative Fund to be held as a separate fund within the
6 State treasury and to be administered by the Department.
7 Moneys in the fund shall be expended only as authorized by this
8 Act.
9 (1) The fee collected in subsection (a) of Section 35
10 shall be deposited into the Carbon Dioxide Storage
11 Administrative Fund.
12 (2) Moneys in the Carbon Dioxide Storage
13 Administrative Fund may only be used:
14 (A) to defray expenses incurred by the Department
15 for the regulation of storage facilities during their
16 construction, operational, and pre-closure phases; or
17 (B) if the Carbon Dioxide Long-Term Trust Fund
18 becomes depleted, to defray expenses incurred by the
19 Department for the long-term monitoring and management
20 of storage facilities after the department issues a
21 certificate of project completion.
22 (b) There is hereby created the Carbon Dioxide Storage
23 Long-Term Trust Fund to be held as a separate fund within the
24 State treasury and to be administered by the Department.
25 Moneys in the fund shall be expended only as authorized by this
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1 Act.
2 (1) The fee collected in subsection (b) of Section 35
3 shall be deposited into the Carbon Dioxide Long-Term Trust
4 Fund.
5 (2) Moneys in the Carbon Dioxide Long-Term Trust Fund
6 may only be used to defray expenses incurred by the
7 Department for the long-term monitoring and management of
8 storage facilities after the Department issues a
9 certification of project completion.
10 Section 45. Requirements for drilling near a storage
11 facility.
12 (a) A mineral owner or mineral lessee shall provide
13 written notice to a storage operator at least 31 days prior to
14 drilling a well if the mineral owner or mineral lessee wishes
15 to drill a well not more than:
16 (1) 330 feet from the surface location of a well
17 pursuant to a UIC Class VI well permit; or
18 (2) 500 feet from the uppermost confining zone of a
19 storage facility pursuant to a UIC Class VI well permit.
20 (b) A well drilled under subsection (a) must be drilled in
21 compliance with the requirements of:
22 (1) the Department to preserve the integrity of the
23 storage facility;
24 (2) a UIC Class VI well permit; and
25 (3) any other applicable rules or regulations.
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1 Section 50. Applicability of certain tort claims.
2 (a) A claim of subsurface trespass shall not be actionable
3 against a storage operator conducting underground storage of
4 carbon dioxide in accordance with a valid UIC Class VI well
5 permit unless the claimant proves that injection or migration
6 of carbon dioxide (i) constitutes an invasion of another's
7 interest in the use and enjoyment of his or her land that is
8 substantial, either intentional or negligent, unreasonable,
9 and perceptible to the senses, or (ii) has caused direct
10 physical injury to a person, an animal, or tangible property.
11 (b) A surface or subsurface property interest holder shall
12 be permitted to recover money damages only for the loss of a
13 nonspeculative value resulting from the injection and
14 migration of carbon dioxide beyond the storage facility.
15 (c) A surface or subsurface property interest holder may
16 seek punitive damages in accordance with Section 2-604.1 of
17 the Code of Civil Procedure only if the storage operator
18 knowingly or willfully violates the requirements of a UIC
19 Class VI well permit or acts with reckless disregard for
20 public safety.
21 Section 55. Certificate of project completion.
22 (a) Upon application from a storage operator, the
23 Department shall consider whether each of the following
24 factors is satisfied in determining whether to issue a
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1 certificate of project completion. The Department may only
2 issue the certificate if the Department finds that the storage
3 operator:
4 (1) is in compliance with all applicable laws
5 governing the storage facility;
6 (2) shows that the storage facility is reasonably
7 expected to retain the carbon dioxide stored therein;
8 (3) shows that the carbon dioxide in the storage
9 facility is stable by showing either that:
10 (A) the stored carbon dioxide is essentially
11 stationary; or
12 (B) if the stored carbon dioxide migrates,
13 migration will be likely to remain within the storage
14 facility;
15 (4) shows that any long-term monitoring wells,
16 equipment, and facilities used after the closure period
17 are in good condition and retain mechanical integrity;
18 (5) shows that injection wells have been plugged;
19 (6) shows that equipment and facilities, not including
20 fixed structures and long-term monitoring equipment and
21 wells, have been removed; and
22 (7) shows the following with respect to site closure:
23 (A) the storage operator has provided a notice of
24 intent for site closure to the United States
25 Environmental Protection Agency, or to the State
26 regulatory body if the State assumes primacy for UIC
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1 Class VI well permitting;
2 (B) site closure has been authorized by the United
3 States Environmental Protection Agency, or by the
4 State regulatory body if the State assumes primacy for
5 UIC Class VI well permitting; and
6 (C) the storage operator has provided to the
7 United States Environmental Protection Agency the site
8 closure report required under 40 CFR 146.93(f) on the
9 effective date of this Act, or has provided a
10 comparable report to the State regulatory body if the
11 State assumes primacy for UIC Class VI well
12 permitting.
13 (b) Not later than 90 days after receiving an application
14 from the storage operator, the Department shall either:
15 (1) issue a certificate of project completion; or
16 (2) if the Department determines that the application
17 for a certificate of project completion is incomplete,
18 inaccurate, or both, return the application to the storage
19 operator.
20 (c) If the Department returns the application to the
21 storage operator under subsection (b), the Department shall
22 inform the storage operator, in writing, of the deficiencies
23 of the submitted application and inform the storage operator
24 of the right to file a corrected application with the
25 Department.
26 (d) Upon issuance of a certificate of project completion
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1 and payment of the fee under subsection (b) of Section 35, the
2 following occurs:
3 (1) Title to the storage facility and all carbon
4 dioxide stored therein is immediately transferred to the
5 State. Title acquired by the State under this subsection
6 includes all rights, and interests in, and all
7 responsibilities associated with, the stored carbon
8 dioxide and the storage facility. Notwithstanding the
9 foregoing, no party may transfer to the State, and the
10 State may not accept, any property interests or rights
11 that the party does not own or have legal authority to
12 transfer.
13 (2) The State assumes responsibility for all
14 regulatory requirements associated with the storage
15 facility and stored carbon dioxide, and the storage
16 operator and the owner of the storage facility are
17 released from responsibility for all regulatory
18 requirements associated with the storage facility and
19 stored carbon dioxide.
20 (3) The State assumes any potential liability
21 associated with the storage facility and stored carbon
22 dioxide.
23 (e) A certificate of project completion shall be void if
24 the Department finds, after a hearing, that the storage
25 operator obtained the certificate on the basis of gross
26 misconduct, including intentional misrepresentation of
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1 information to the Department that the Department relied upon,
2 gross negligence, willful deceit, or criminal wrongdoing. A
3 storage operator may appeal this finding in a court of
4 competent jurisdiction.
5 (f) Unless there is documentation to the contrary, the
6 storage operator holds title to the carbon dioxide injected
7 into and stored in a storage facility until and unless the
8 storage operator:
9 (1) obtains a certificate of project completion from
10 the Department; or
11 (2) expressly conveys title to a third party.
12 Section 60. Rules. The Department shall adopt rules to
13 implement this Act within 180 days after the effective date of
14 this Act.
15 Section 65. The State Finance Act is amended by adding
16 Section 5.990 and 5.991 as follows:
17 (30 ILCS 105/5.990 new)
18 Sec. 5.990. The Carbon Dioxide Storage Administrative
19 Fund.
20 (30 ILCS 105/5.991 new)
21 Sec. 5.991. The Carbon Dioxide Long-Term Trust Fund.
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1 Section 97. Severability. The provisions of this Act are
2 severable under Section 1.31 of the Statute on Statutes.
3 Section 99. Effective date. This Act takes effect upon
4 becoming law.
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