Illinois 2025-2026 Regular Session

Illinois Senate Bill SB1697 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB1697 Introduced 2/5/2025, by Sen. Laura Fine SYNOPSIS AS INTRODUCED: 220 ILCS 75/20220 ILCS 75/22 new415 ILCS 185/15 Amends the Carbon Dioxide Transportation and Sequestration Act. Provides that the Illinois Commerce Commission shall not issue any certificate of authority under the Act before July 1, 2026. Removes language providing that if, after July 1, 2026, the Pipeline and Hazardous Materials Safety Administration has not adopted final revisions to specified pipeline safety rules, the Commission may only approve a certificate of authority if it finds that the applicant has met all of the requirements of the Act, has already acquired all of its other necessary approvals, and is compliant with any requirements or conditions adopted by the Commission. Provides that a nonconsenting pore space owner's compensation shall include just compensation and any operations term or injection term payments made upon or after the initiation of injection provided to consenting pore space owners in consideration of allowing use of their pore space for sequestration of carbon dioxide. Provides that a nonconsenting pore space owner's compensation shall be no less than the average total payment package, considered as a whole with respect to an individual owner, provided in agreements to similarly situated consenting pore space owners for use of their pore space by the same sequestration operator for the same sequestration project (instead of provided in agreements during the previous 365 days to similarly situated consenting pore space owners). Amends the Safety and Aid for the Environment in Carbon Capture and Sequestration Act. Provides that an affected landowner is entitled to reasonable compensation from an applicant that has been granted a certificate of authority under this Act for damages resulting from access to the landowner's property for required activities taken to construct the pipeline, including, but not limited to, compensation for specified damages. Sets forth provisions concerning payment of the compensation; attorney's fees; and an applicant entering into an agreement with the Department of Agriculture that governs the mitigation of agricultural impacts associated with the construction of the proposed pipeline. Makes other changes. LRB104 09225 AAS 19282 b A BILL FOR 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB1697 Introduced 2/5/2025, by Sen. Laura Fine SYNOPSIS AS INTRODUCED: 220 ILCS 75/20220 ILCS 75/22 new415 ILCS 185/15 220 ILCS 75/20 220 ILCS 75/22 new 415 ILCS 185/15 Amends the Carbon Dioxide Transportation and Sequestration Act. Provides that the Illinois Commerce Commission shall not issue any certificate of authority under the Act before July 1, 2026. Removes language providing that if, after July 1, 2026, the Pipeline and Hazardous Materials Safety Administration has not adopted final revisions to specified pipeline safety rules, the Commission may only approve a certificate of authority if it finds that the applicant has met all of the requirements of the Act, has already acquired all of its other necessary approvals, and is compliant with any requirements or conditions adopted by the Commission. Provides that a nonconsenting pore space owner's compensation shall include just compensation and any operations term or injection term payments made upon or after the initiation of injection provided to consenting pore space owners in consideration of allowing use of their pore space for sequestration of carbon dioxide. Provides that a nonconsenting pore space owner's compensation shall be no less than the average total payment package, considered as a whole with respect to an individual owner, provided in agreements to similarly situated consenting pore space owners for use of their pore space by the same sequestration operator for the same sequestration project (instead of provided in agreements during the previous 365 days to similarly situated consenting pore space owners). Amends the Safety and Aid for the Environment in Carbon Capture and Sequestration Act. Provides that an affected landowner is entitled to reasonable compensation from an applicant that has been granted a certificate of authority under this Act for damages resulting from access to the landowner's property for required activities taken to construct the pipeline, including, but not limited to, compensation for specified damages. Sets forth provisions concerning payment of the compensation; attorney's fees; and an applicant entering into an agreement with the Department of Agriculture that governs the mitigation of agricultural impacts associated with the construction of the proposed pipeline. Makes other changes. LRB104 09225 AAS 19282 b LRB104 09225 AAS 19282 b A BILL FOR
2	2	104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB1697 Introduced 2/5/2025, by Sen. Laura Fine SYNOPSIS AS INTRODUCED:
3	3	220 ILCS 75/20220 ILCS 75/22 new415 ILCS 185/15 220 ILCS 75/20 220 ILCS 75/22 new 415 ILCS 185/15
4	4	220 ILCS 75/20
5	5	220 ILCS 75/22 new
6	6	415 ILCS 185/15
7	7	Amends the Carbon Dioxide Transportation and Sequestration Act. Provides that the Illinois Commerce Commission shall not issue any certificate of authority under the Act before July 1, 2026. Removes language providing that if, after July 1, 2026, the Pipeline and Hazardous Materials Safety Administration has not adopted final revisions to specified pipeline safety rules, the Commission may only approve a certificate of authority if it finds that the applicant has met all of the requirements of the Act, has already acquired all of its other necessary approvals, and is compliant with any requirements or conditions adopted by the Commission. Provides that a nonconsenting pore space owner's compensation shall include just compensation and any operations term or injection term payments made upon or after the initiation of injection provided to consenting pore space owners in consideration of allowing use of their pore space for sequestration of carbon dioxide. Provides that a nonconsenting pore space owner's compensation shall be no less than the average total payment package, considered as a whole with respect to an individual owner, provided in agreements to similarly situated consenting pore space owners for use of their pore space by the same sequestration operator for the same sequestration project (instead of provided in agreements during the previous 365 days to similarly situated consenting pore space owners). Amends the Safety and Aid for the Environment in Carbon Capture and Sequestration Act. Provides that an affected landowner is entitled to reasonable compensation from an applicant that has been granted a certificate of authority under this Act for damages resulting from access to the landowner's property for required activities taken to construct the pipeline, including, but not limited to, compensation for specified damages. Sets forth provisions concerning payment of the compensation; attorney's fees; and an applicant entering into an agreement with the Department of Agriculture that governs the mitigation of agricultural impacts associated with the construction of the proposed pipeline. Makes other changes.
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10	10	A BILL FOR
11	11	SB1697LRB104 09225 AAS 19282 b SB1697 LRB104 09225 AAS 19282 b
12	12	SB1697 LRB104 09225 AAS 19282 b
13	13	1 AN ACT concerning regulation.
14	14	2 Be it enacted by the People of the State of Illinois,
15	15	3 represented in the General Assembly:
16	16	4 Section 5. The Carbon Dioxide Transportation and
17	17	5 Sequestration Act is amended by changing Section 20 and by
18	18	6 adding Section 22 as follows:
19	19	7 (220 ILCS 75/20)
20	20	8 Sec. 20. Application.
21	21	9 (a) No person or entity may construct, operate, or repair
22	22	10 a carbon dioxide pipeline unless the person or entity
23	23	11 possesses a certificate of authority. Nothing in this Act
24	24	12 requires a legacy carbon dioxide pipeline to obtain a
25	25	13 certificate of authority.
26	26	14 (b) The Commission, after a hearing, may grant an
27	27	15 application for a certificate of authority authorizing the
28	28	16 construction and operation of a carbon dioxide pipeline if it
29	29	17 makes a specific written finding as to each of the following:
30	30	18 (1) the application was properly filed;
31	31	19 (2) the applicant is fit, willing, and able to
32	32	20 construct and operate the pipeline in compliance with this
33	33	21 Act and with Commission regulations and orders of the
34	34	22 Commission or any applicable federal agencies;
35	35	23 (3) the applicant has entered into one or more
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39	39	104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB1697 Introduced 2/5/2025, by Sen. Laura Fine SYNOPSIS AS INTRODUCED:
40	40	220 ILCS 75/20220 ILCS 75/22 new415 ILCS 185/15 220 ILCS 75/20 220 ILCS 75/22 new 415 ILCS 185/15
41	41	220 ILCS 75/20
42	42	220 ILCS 75/22 new
43	43	415 ILCS 185/15
44	44	Amends the Carbon Dioxide Transportation and Sequestration Act. Provides that the Illinois Commerce Commission shall not issue any certificate of authority under the Act before July 1, 2026. Removes language providing that if, after July 1, 2026, the Pipeline and Hazardous Materials Safety Administration has not adopted final revisions to specified pipeline safety rules, the Commission may only approve a certificate of authority if it finds that the applicant has met all of the requirements of the Act, has already acquired all of its other necessary approvals, and is compliant with any requirements or conditions adopted by the Commission. Provides that a nonconsenting pore space owner's compensation shall include just compensation and any operations term or injection term payments made upon or after the initiation of injection provided to consenting pore space owners in consideration of allowing use of their pore space for sequestration of carbon dioxide. Provides that a nonconsenting pore space owner's compensation shall be no less than the average total payment package, considered as a whole with respect to an individual owner, provided in agreements to similarly situated consenting pore space owners for use of their pore space by the same sequestration operator for the same sequestration project (instead of provided in agreements during the previous 365 days to similarly situated consenting pore space owners). Amends the Safety and Aid for the Environment in Carbon Capture and Sequestration Act. Provides that an affected landowner is entitled to reasonable compensation from an applicant that has been granted a certificate of authority under this Act for damages resulting from access to the landowner's property for required activities taken to construct the pipeline, including, but not limited to, compensation for specified damages. Sets forth provisions concerning payment of the compensation; attorney's fees; and an applicant entering into an agreement with the Department of Agriculture that governs the mitigation of agricultural impacts associated with the construction of the proposed pipeline. Makes other changes.
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46	46	LRB104 09225 AAS 19282 b
47	47	A BILL FOR
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53	53	220 ILCS 75/20
54	54	220 ILCS 75/22 new
55	55	415 ILCS 185/15
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74	74	1 agreements with a source or sources that will result in
75	75	2 the reduction of carbon dioxide emissions from that source
76	76	3 or sources and the applicant has filed such agreement or
77	77	4 agreements as part of its application;
78	78	5 (4) the applicant has filed with the Pipeline and
79	79	6 Hazardous Materials Safety Administration of the U.S.
80	80	7 Department of Transportation all forms required by that
81	81	8 agency in advance of constructing a carbon dioxide
82	82	9 pipeline;
83	83	10 (5) the applicant has filed with the U.S. Army Corps
84	84	11 of Engineers all applications for permits required by that
85	85	12 agency in advance of constructing a carbon dioxide
86	86	13 pipeline;
87	87	14 (6) the applicant has entered into an agreement with
88	88	15 the Illinois Department of Agriculture that governs the
89	89	16 mitigation of agricultural impacts associated with the
90	90	17 construction of the proposed pipeline;
91	91	18 (6.1) the applicant has applied for any and all other
92	92	19 federal permits necessary to construct and operate a
93	93	20 carbon dioxide pipeline;
94	94	21 (6.2) the applicant has held at least 2 prefiling
95	95	22 public meetings to receive public comment concerning the
96	96	23 proposed carbon dioxide pipeline in each county where the
97	97	24 pipeline is to be located, no earlier than 6 months prior
98	98	25 to the filing of the application. Notice of the public
99	99	26 meeting shall be published in a newspaper of general
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110	110	1 circulation within the affected county once a week for 3
111	111	2 consecutive weeks, beginning no earlier than one month
112	112	3 prior to the first public meeting. Notice of each public
113	113	4 meeting, including a description of the carbon dioxide
114	114	5 pipeline, must be provided in writing to the clerk of each
115	115	6 county where the project is to be located and to the chief
116	116	7 clerk of the Commission. A representative of the
117	117	8 Commission shall be invited to each prefiling public
118	118	9 meeting. The applicant shall maintain a dedicated public
119	119	10 website which provides details regarding the proposed
120	120	11 route of the pipeline, plans for construction, status of
121	121	12 the application, and the manner in which members of the
122	122	13 public may offer their opinions regarding the pipeline;
123	123	14 (6.3) the applicant has directly contacted the owner
124	124	15 of each parcel of land located within 2 miles of the
125	125	16 proposed pipeline route by certified mail, or made good
126	126	17 faith efforts if the owner of record cannot be located,
127	127	18 advising them of the proposed pipeline route and of the
128	128	19 date and time of each public meeting to be held in the
129	129	20 county in which each landowner's property is located;
130	130	21 (6.4) the applicant has prepared and submitted a
131	131	22 detailed emergency operations plan, which addresses at a
132	132	23 minimum, emergency operations plan requirements adopted by
133	133	24 the Illinois Emergency Management Agency and Office of
134	134	25 Homeland Security under paragraph (4) of subsection (f) of
135	135	26 Section 5 of the Illinois Emergency Management Agency Act.
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146	146	1 The submitted emergency operations plan shall also provide
147	147	2 for post-emergency analysis and controller actions. In
148	148	3 addition, the applicant shall demonstrate that it has
149	149	4 communicated with the county emergency services and
150	150	5 disaster agency (ESDA), or other relevant mandated ESDA,
151	151	6 to coordinate its emergency operations plan for the
152	152	7 pipeline with the county ESDA's, or other relevant
153	153	8 mandated ESDA's, emergency operations plan;
154	154	9 (7) the applicant possesses the financial, managerial,
155	155	10 legal, and technical qualifications necessary to construct
156	156	11 and operate the proposed carbon dioxide pipeline; and
157	157	12 (8) the proposed pipeline is consistent with the
158	158	13 public interest, public benefit, and legislative purpose
159	159	14 as set forth in this Act. In addition to any other evidence
160	160	15 the Commission may consider on this specific finding, the
161	161	16 Commission shall consider the following:
162	162	17 (A) any evidence of the effect of the pipeline
163	163	18 upon the economy, infrastructure, and public safety
164	164	19 presented by local governmental units that will be
165	165	20 affected by the proposed pipeline route;
166	166	21 (B) any evidence of the effect of the pipeline
167	167	22 presented by property owners who will be affected by
168	168	23 the proposed pipeline or facility, provided that the
169	169	24 Commission need not hear evidence as to the actual
170	170	25 valuation of property such as that as would be
171	171	26 presented to and determined by the courts under the
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182	182	1 Eminent Domain Act;
183	183	2 (C) any evidence presented by the Department of
184	184	3 Commerce and Economic Opportunity regarding the
185	185	4 current and future local, statewide State-wide, or
186	186	5 regional economic effect, direct or indirect, of the
187	187	6 proposed pipeline or facility including, but not
188	188	7 limited to, ability of the State to attract economic
189	189	8 growth, meet future energy requirements, and ensure
190	190	9 compliance with environmental requirements and goals;
191	191	10 (D) any evidence addressing the factors described
192	192	11 in items (1) through (8) of this subsection (b) or
193	193	12 other relevant factors that is presented by any other
194	194	13 State agency, unit of local government, the applicant,
195	195	14 a party, or other entity that participates in the
196	196	15 proceeding, including evidence presented by the
197	197	16 Commission's staff; and
198	198	17 (E) any evidence presented by any State or federal
199	199	18 governmental entity as to how the proposed pipeline
200	200	19 will affect the security, stability, and reliability
201	201	20 of public infrastructure.
202	202	21 In its written order, the Commission shall address all of
203	203	22 the evidence presented, and if the order is contrary to any of
204	204	23 the evidence, the Commission shall state the reasons for its
205	205	24 determination with regard to that evidence.
206	206	25 (c) When an applicant files its application for a
207	207	26 certificate of authority with the Commission, it shall provide
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218	218	1 notice to each unit of local government where the proposed
219	219	2 pipeline will be located and include a map of the proposed
220	220	3 pipeline route. The applicant shall also publish notice in a
221	221	4 newspaper of general circulation in each county where the
222	222	5 proposed pipeline is located.
223	223	6 (d) An application for a certificate of authority filed
224	224	7 pursuant to this Section shall request either that the
225	225	8 Commission review and approve a specific route for a carbon
226	226	9 dioxide pipeline, or that the Commission review and approve a
227	227	10 project route width that identifies the areas in which the
228	228	11 pipeline would be located, with such width ranging from the
229	229	12 minimum width required for a pipeline right-of-way up to 200
230	230	13 feet in width. A map of the route or route width shall be
231	231	14 included in the application. The purpose for allowing the
232	232	15 option of review and approval of a project route width is to
233	233	16 provide increased flexibility during the construction process
234	234	17 to accommodate specific landowner requests, avoid
235	235	18 environmentally sensitive areas, or address special
236	236	19 environmental permitting requirements.
237	237	20 (e) The Commission's rules shall ensure that notice of an
238	238	21 application for a certificate of authority is provided within
239	239	22 30 days after filing to the landowners along a proposed
240	240	23 project route, or to the potentially affected landowners
241	241	24 within a proposed project route width, using the notification
242	242	25 procedures set forth in the Commission's rules. If the
243	243	26 Commission grants approval of a project route width as opposed
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254	254	1 to a specific project route, then the applicant must, as it
255	255	2 finalizes the actual pipeline alignment within the project
256	256	3 route width, file its final list of affected landowners with
257	257	4 the Commission at least 14 days in advance of beginning
258	258	5 construction on any tract within the project route width and
259	259	6 also provide the Commission with at least 14 days' notice
260	260	7 before filing a complaint for eminent domain in the circuit
261	261	8 court with regard to any tract within the project route width.
262	262	9 (f) If an applicant has obtained all necessary federal
263	263	10 licenses, permits, and authority necessary to construct and
264	264	11 operate a carbon dioxide pipeline before it files an
265	265	12 application pursuant to this Section, then the Commission
266	266	13 shall make its determination on any application for a
267	267	14 certificate of authority and issue its final order within 11
268	268	15 months after the date that the application is filed. The
269	269	16 Commission's failure to act within this time period shall not
270	270	17 be deemed an approval or denial of the application.
271	271	18 (g) A final order of the Commission granting a certificate
272	272	19 of authority pursuant to this Act shall be conditioned upon
273	273	20 the applicant obtaining all required permits or approvals from
274	274	21 the Pipeline and Hazardous Materials Safety Administration of
275	275	22 the U.S. Department of Transportation, U.S. Army Corps of
276	276	23 Engineers, and Illinois Department of Agriculture, in addition
277	277	24 to all other permits and approvals necessary for the
278	278	25 construction and operation of the pipeline prior to the start
279	279	26 of any construction. The final order must specifically
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290	290	1 prohibit the start of any construction until all such permits
291	291	2 and approvals have been obtained. The Commission shall not
292	292	3 issue any certificate of authority under this Act before July
293	293	4 1, 2026 and until (i) the Pipeline and Hazardous Materials
294	294	5 Safety Administration has adopted final revisions to its
295	295	6 pipeline safety rules intended to enhance the safe
296	296	7 transportation of carbon dioxide by pipelines to accommodate
297	297	8 an anticipated increase in the number of carbon dioxide
298	298	9 pipelines and volume of carbon dioxide transported in the
299	299	10 proposed rulemaking designated Regulatory Information Number
300	300	11 2137-AF60, and (ii) the Commission has verified that the
301	301	12 submitted application complies with those finalized rules. If,
302	302	13 after July 1, 2026, the Pipeline and Hazardous Materials
303	303	14 Safety Administration has not adopted final revisions to its
304	304	15 pipeline safety rules under the proposed rulemaking designated
305	305	16 Regulatory Information Number 2137-AF60, the Commission may
306	306	17 only approve a certificate of authority under this Section if
307	307	18 it finds that the applicant has met all of the requirements of
308	308	19 this Act, has already acquired all of its other necessary
309	309	20 approvals, and is compliant with any requirements or
310	310	21 conditions adopted by the Commission subsection (g-5).
311	311	22 (g-5) In granting a certificate under this Act, the
312	312	23 Commission shall adopt such requirements or impose such
313	313	24 conditions upon a certificate as in its opinion are necessary
314	314	25 to preserve public safety, as long as such requirements are
315	315	26 compatible with the minimum standards prescribed by the
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326	326	1 Pipeline and Hazardous Material Safety Administration.
327	327	2 (h) Within 6 months after the Commission's entry of an
328	328	3 order approving either a specific route or a project route
329	329	4 width under this Section, the owner or operator of the carbon
330	330	5 dioxide pipeline that receives that order may file
331	331	6 supplemental applications for minor route deviations outside
332	332	7 the approved project route width, allowing for additions or
333	333	8 changes to the approved route to address environmental
334	334	9 concerns encountered during construction or to accommodate
335	335	10 landowner requests. The supplemental application shall
336	336	11 specifically detail the environmental concerns or landowner
337	337	12 requests prompting the route changes, including the names of
338	338	13 any landowners or entities involved. Notice of a supplemental
339	339	14 application shall be provided to any State agency or unit of
340	340	15 local government that appeared in the original proceeding and
341	341	16 to any landowner affected by the proposed route deviation at
342	342	17 the time that supplemental application is filed. The route
343	343	18 deviations shall be approved by the Commission no sooner than
344	344	19 90 days after all interested parties receive notice of the
345	345	20 supplemental application, unless a written objection is filed
346	346	21 to the supplemental application within 45 days after such
347	347	22 notice is received. If a written objection is filed, then the
348	348	23 Commission shall issue an order either granting or denying the
349	349	24 route deviation within 90 days after the filing of the
350	350	25 objection. Hearings on any such supplemental application shall
351	351	26 be limited to the reasonableness of the specific variance
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362	362	1 proposed, and the issues of the public interest and benefit of
363	363	2 the project or fitness of the applicant shall be considered
364	364	3 only to the extent that the route deviation has raised new
365	365	4 concerns with regard to those issues.
366	366	5 (i) A certificate of authority to construct and operate a
367	367	6 carbon dioxide pipeline issued by the Commission shall contain
368	368	7 and include all of the following:
369	369	8 (1) a grant of authority to construct and operate a
370	370	9 carbon dioxide pipeline as requested in the application,
371	371	10 subject to the laws of this State; and
372	372	11 (2) the right to seek eminent domain authority from
373	373	12 the Commission under Section 8-509 of the Public Utilities
374	374	13 Act.
375	375	14 (j) All applications under this Act pending before the
376	376	15 Commission on the effective date of this amendatory Act of the
377	377	16 103rd General Assembly shall be dismissed without prejudice.
378	378	17 (Source: P.A. 103-651, eff. 7-18-24.)
379	379	18 (220 ILCS 75/22 new)
380	380	19 Sec. 22. Compensation for damages to the surface.
381	381	20 (a) An affected landowner is entitled to reasonable
382	382	21 compensation from an applicant who has been granted a
383	383	22 certificate of authority under this Act for damages resulting
384	384	23 from access to the landowner's property for required
385	385	24 activities taken to construct the pipeline, including, but not
386	386	25 limited to, the following:
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397	397	1 (1) compensation for damage to growing crops, trees,
398	398	2 shrubs, fences, roads, structures, improvements, personal
399	399	3 property, and livestock thereon and compensation for the
400	400	4 loss of the value of a commercial crop impacted by
401	401	5 pipeline installation; the value of the crop shall be
402	402	6 calculated based on local market price by:
403	403	7 (A) determining the average per acre yield for the
404	404	8 same crop on comparable adjacent acreage;
405	405	9 (B) determining the price received for the sale of
406	406	10 the same crop on comparable adjacent acreage;
407	407	11 (C) determining the acreage of the area impacted
408	408	12 by pipeline activities and applying the determined
409	409	13 price; and
410	410	14 (D) making an initial determination of the value
411	411	15 of the crop, which shall be determined by the affected
412	412	16 landowner and submitted to the applicant who has been
413	413	17 granted a certificate of authority under this Act;
414	414	18 (2) compensation to return the surface estate,
415	415	19 including soil conservation practices, such as terraces,
416	416	20 grassed waterways, and other conservation practices, to a
417	417	21 condition as near as practicable to the condition of the
418	418	22 surface prior to accessing the property;
419	419	23 (3) compensation for damage to the productive
420	420	24 capability of the soil resulting from compaction or
421	421	25 rutting if the parties are incapable of reaching
422	422	26 resolution for such issues under the mitigation agreement
423	423
424	424
425	425
426	426
427	427
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429	429
430	430
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432	432	SB1697 - 12 - LRB104 09225 AAS 19282 b
433	433	1 detailed in paragraph (6) of subsection (b) of Section 20.
434	434	2 Such compensation shall include, but is not limited to,
435	435	3 compensation for when a pipeline applicant accesses a
436	436	4 property where excessively wet soil conditions would not
437	437	5 allow normal farming operations due to increased risk of
438	438	6 soil erosion, rutting, or compaction; if there is a
439	439	7 dispute between the applicant who has been granted a
440	440	8 certificate of authority under this Act and the affected
441	441	9 landowner regarding the value of the damage to the
442	442	10 productive capability of the soil, the applicant who has
443	443	11 been granted a certificate of authority under this Act
444	444	12 shall consult with a representative of the soil and water
445	445	13 conservation district in the respective county where the
446	446	14 parcel of property is located for recommendations to
447	447	15 restore the productive capability of the soil; and
448	448	16 (4) compensation for damage to surface and subsurface
449	449	17 drainage, including, but not limited to:
450	450	18 (A) compensation in that the applicant who has
451	451	19 been granted a certificate of authority under this Act
452	452	20 shall perform immediate and temporary repairs for
453	453	21 damage that occurs to subsurface drainage tiles that
454	454	22 have water actively flowing through them at the time
455	455	23 of damage; and
456	456	24 (B) compensation such that the applicant who has
457	457	25 been granted a certificate of authority under this Act
458	458	26 shall compensate the affected landowner to permanently
459	459
460	460
461	461
462	462
463	463
464	464	SB1697 - 12 - LRB104 09225 AAS 19282 b
465	465
466	466
467	467	SB1697- 13 -LRB104 09225 AAS 19282 b SB1697 - 13 - LRB104 09225 AAS 19282 b
468	468	SB1697 - 13 - LRB104 09225 AAS 19282 b
469	469	1 restore drainage to a condition as near as practicable
470	470	2 to the condition of the drainage prior to accessing
471	471	3 the property.
472	472	4 (b) The compensation for damages required by subsection
473	473	5 (a) shall be paid in any manner mutually agreed upon by the
474	474	6 applicant who has been granted a certificate of authority
475	475	7 under this Act and the affected landowners. Unless otherwise
476	476	8 agreed, the applicant who has been granted a certificate of
477	477	9 authority under this Act shall tender to the landowner payment
478	478	10 by check or draft no later than 60 days after completing the
479	479	11 required activities under the application if the occurrence or
480	480	12 value of damages is not disputed. The landowner's remedy for
481	481	13 unpaid or disputed compensation shall be an action for damages
482	482	14 in any court of competent jurisdiction for the parcel of
483	483	15 property or the greater part thereof on which the activities
484	484	16 were conducted, and the landowner shall be entitled to recover
485	485	17 reasonable damages and attorney's fees if the landowner
486	486	18 prevails.
487	487	19 (c) If any surface owner prevails in litigation seeking
488	488	20 compensation for damages under this Section, the applicant who
489	489	21 has been granted a certificate of authority under this Act
490	490	22 shall be responsible for such reasonable attorney's fees and
491	491	23 costs as the court may allow and a judgment may be entered
492	492	24 therefor in favor of the plaintiff if the attorney's fees and
493	493	25 costs are not paid as provided by the court.
494	494	26 (d) Nothing in this Section shall have any impact on an
495	495
496	496
497	497
498	498
499	499
500	500	SB1697 - 13 - LRB104 09225 AAS 19282 b
501	501
502	502
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504	504	SB1697 - 14 - LRB104 09225 AAS 19282 b
505	505	1 applicant's fulfillment of the requirement to enter into an
506	506	2 agreement with the Department of Agriculture that governs the
507	507	3 mitigation of agricultural impacts associated with the
508	508	4 construction of the proposed pipeline as detailed in paragraph
509	509	5 (6) of subsection (b) of Section 20.
510	510	6 Section 10. The Safety and Aid for the Environment in
511	511	7 Carbon Capture and Sequestration Act is amended by changing
512	512	8 Section 15 as follows:
513	513	9 (415 ILCS 185/15)
514	514	10 Sec. 15. Integration and unitization of ownership
515	515	11 interests.
516	516	12 (a) If at least 2 pore space owners own pore space located
517	517	13 within a proposed sequestration facility, the owners may agree
518	518	14 to integrate the owners' interests to develop the pore space
519	519	15 as a proposed sequestration facility for the underground
520	520	16 sequestration of carbon dioxide.
521	521	17 (b) If all of the pore space owners within a proposed or
522	522	18 permitted sequestration facility do not agree to integrate the
523	523	19 pore space owners' interests, the sequestration operator may
524	524	20 petition the Department of Natural Resources to issue an order
525	525	21 requiring the pore space owners to integrate their interests
526	526	22 and authorizing the sequestration operator or sequestration
527	527	23 facility permit holder to develop and use the integrated pore
528	528	24 space as a sequestration facility for carbon sequestration.
529	529
530	530
531	531
532	532
533	533
534	534	SB1697 - 14 - LRB104 09225 AAS 19282 b
535	535
536	536
537	537	SB1697- 15 -LRB104 09225 AAS 19282 b SB1697 - 15 - LRB104 09225 AAS 19282 b
538	538	SB1697 - 15 - LRB104 09225 AAS 19282 b
539	539	1 Such an order for unitization and integration of pore space
540	540	2 may only be issued if the sequestration operator has obtained
541	541	3 the rights from pore space owners of pore space underlying at
542	542	4 least 75% of the surface area above the proposed sequestration
543	543	5 facility. The petition shall include, but is not limited to:
544	544	6 (1) the name and address of the petitioners;
545	545	7 (2) the property index numbers or legal descriptions
546	546	8 for the parcels of property and a geologic description of
547	547	9 the pore space within the proposed or permitted
548	548	10 sequestration facility;
549	549	11 (3) a disclosure of any parcels of property overlying
550	550	12 the pore space to be integrated, identified by property
551	551	13 index numbers or legal descriptions, in which the
552	552	14 applicant, any of its owners, officers, corporate
553	553	15 subsidiaries, or parents, sister companies, or affiliates,
554	554	16 at the time of submission of the application or within 10
555	555	17 years prior to the submission of the application, have or
556	556	18 had any real or personal interest, whether direct or
557	557	19 indirect;
558	558	20 (4) the names and addresses of all pore space owners
559	559	21 owning property within the proposed or permitted
560	560	22 sequestration facility as disclosed by the records of the
561	561	23 office of the recorder for the county or counties in which
562	562	24 the proposed or permitted sequestration facility is
563	563	25 situated and a list of consenting and nonconsenting pore
564	564	26 space owners, as well as a list of all properties for which
565	565
566	566
567	567
568	568
569	569
570	570	SB1697 - 15 - LRB104 09225 AAS 19282 b
571	571
572	572
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574	574	SB1697 - 16 - LRB104 09225 AAS 19282 b
575	575	1 a pore space owner is unknown or nonlocatable;
576	576	2 (5) a statement that the petitioner has exercised due
577	577	3 diligence to locate each pore space owner and to seek an
578	578	4 agreement with each for pore space rights for the
579	579	5 sequestration facility, including a description of the
580	580	6 good faith efforts taken to identify, contact, and
581	581	7 negotiate with each nonconsenting pore space owner;
582	582	8 (6) a statement of the type of operations for the
583	583	9 proposed or permitted sequestration facility;
584	584	10 (7) a plan for determining the quantity of pore space
585	585	11 sequestration capacity to be assigned to each separately
586	586	12 owned parcel of property based on the surface area acreage
587	587	13 overlying the proposed or permitted sequestration facility
588	588	14 and for using the surface for Class VI well permit
589	589	15 required activities under Section 35;
590	590	16 (8) the method by which pore space owners will be
591	591	17 compensated for use of the pore space, and a copy of all
592	592	18 agreements entered into with consenting pore space owners
593	593	19 regarding the compensation paid to a consenting pore space
594	594	20 owner;
595	595	21 (9) the method by which nonconsenting pore space
596	596	22 owners will receive just compensation; and
597	597	23 (10) a nonrefundable application fee of $250,000.
598	598	24 The application fee shall be deposited into the Oil and
599	599	25 Gas Resource Management Fund for the Department of Natural
600	600	26 Resources' costs related to administration of this Act.
601	601
602	602
603	603
604	604
605	605
606	606	SB1697 - 16 - LRB104 09225 AAS 19282 b
607	607
608	608
609	609	SB1697- 17 -LRB104 09225 AAS 19282 b SB1697 - 17 - LRB104 09225 AAS 19282 b
610	610	SB1697 - 17 - LRB104 09225 AAS 19282 b
611	611	1 (c) If the petition for a unitization order concerns
612	612	2 unknown or nonlocatable pore space owners, the applicant shall
613	613	3 provide public notice once a week for 2 consecutive weeks in
614	614	4 the newspaper of the largest circulation in each county in
615	615	5 which the proposed sequestration facility is located within 30
616	616	6 days prior to submission of the petition for a unitization and
617	617	7 integration order. The petitioner shall file proof of such
618	618	8 notice with the Department of Natural Resources with the
619	619	9 petition. The petitioner shall also provide public notice of
620	620	10 the public hearing described in subsection (d) in the same
621	621	11 manner within 30 days prior to the hearing on the petition for
622	622	12 a unitization order. The petitioner shall also send notice of
623	623	13 the filing of the petition and the notice of the public hearing
624	624	14 via certified mail to the last known address of each
625	625	15 nonlocatable pore space owner and provide copies of those
626	626	16 notices to the Department of Natural Resources. The notice
627	627	17 shall:
628	628	18 (1) state that a petition for a unitization and
629	629	19 integration order has been filed with the Department of
630	630	20 Natural Resources;
631	631	21 (2) describe the formation or formations and pore
632	632	22 space proposed to be unitized;
633	633	23 (3) in the case of an unknown pore space owner,
634	634	24 indicate the name of the last known pore space owner;
635	635	25 (4) in the case of a nonlocatable pore space owner,
636	636	26 identify the pore space owner and the owner's last known
637	637
638	638
639	639
640	640
641	641
642	642	SB1697 - 17 - LRB104 09225 AAS 19282 b
643	643
644	644
645	645	SB1697- 18 -LRB104 09225 AAS 19282 b SB1697 - 18 - LRB104 09225 AAS 19282 b
646	646	SB1697 - 18 - LRB104 09225 AAS 19282 b
647	647	1 address; and
648	648	2 (5) state that any person claiming an interest in the
649	649	3 properties proposed to be unitized should notify the
650	650	4 operator of the proposed sequestration facility at the
651	651	5 published address within 20 days of the publication date.
652	652	6 Unknown or nonlocatable pore space owners that have not
653	653	7 claimed an interest by the time of the Department of Natural
654	654	8 Resources' public notice in subsection (d) shall be deemed to
655	655	9 have consented to unitization and integration of their pore
656	656	10 space.
657	657	11 (d) Prior to issuing an order to unitize and integrate
658	658	12 pore space, the Department of Natural Resources shall issue a
659	659	13 public notice of the petition and shall hold a public hearing
660	660	14 on the petition. The public notice shall include copies of the
661	661	15 petition and all included attachments that are not protected
662	662	16 under the Freedom of Information Act. The public notice shall
663	663	17 include an opportunity for public comments and shall contain
664	664	18 the date, time, and location of the public hearing as decided
665	665	19 by the Department. At the public hearing, the Department shall
666	666	20 allow interested persons to present views and comments on the
667	667	21 petition. The hearings must be open to the public and recorded
668	668	22 by stenographic or mechanical means. The Department of Natural
669	669	23 Resources will make available on its website copies of all
670	670	24 comments received.
671	671	25 (e) The Department of Natural Resources shall issue an
672	672	26 order unitizing and integrating pore space under subsection
673	673
674	674
675	675
676	676
677	677
678	678	SB1697 - 18 - LRB104 09225 AAS 19282 b
679	679
680	680
681	681	SB1697- 19 -LRB104 09225 AAS 19282 b SB1697 - 19 - LRB104 09225 AAS 19282 b
682	682	SB1697 - 19 - LRB104 09225 AAS 19282 b
683	683	1 (b) within 60 days after the hearing upon a showing that:
684	684	2 (1) the petitioner has obtained a Class VI well permit
685	685	3 or, if the well permit application is still pending at
686	686	4 least one year from the date the petition has been filed,
687	687	5 that the petitioner has received a Finding of
688	688	6 Administrative Completeness from the United States
689	689	7 Environmental Protection Agency;
690	690	8 (2) the petitioner has made a good faith effort to
691	691	9 seek an agreement with all pore space owners located
692	692	10 within the proposed or permitted sequestration facility;
693	693	11 (3) the petitioner has obtained the rights from pore
694	694	12 space owners of at least 75% of the surface area above the
695	695	13 proposed sequestration facility; and
696	696	14 (4) all nonconsenting pore space owners have received
697	697	15 or will receive just compensation for use of the pore
698	698	16 space and use of the surface for Class VI well permit
699	699	17 required activities. Additionally, a nonconsenting pore
700	700	18 space owner's such compensation shall be no less than the
701	701	19 average total payment package, considered as a whole with
702	702	20 respect to an individual owner, provided in agreements
703	703	21 during the previous 365 days to similarly situated
704	704	22 consenting pore space owners for use of their pore space
705	705	23 by the same sequestration operator for the same
706	706	24 sequestration project. The nonconsenting pore space
707	707	25 owner's compensation shall include just compensation and
708	708	26 any operations term or injection term payments made upon
709	709
710	710
711	711
712	712
713	713
714	714	SB1697 - 19 - LRB104 09225 AAS 19282 b
715	715
716	716
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718	718	SB1697 - 20 - LRB104 09225 AAS 19282 b
719	719	1 or after the initiation of injection provided to
720	720	2 consenting pore space owners in consideration of allowing
721	721	3 use of their pore space for sequestration of carbon
722	722	4 dioxide, but Such compensation shall exclude any
723	723	5 incentives, such as signing bonuses, provided to
724	724	6 consenting pore space owners prior to the initiation of
725	725	7 injection. Such compensation shall include any operations
726	726	8 term or injection term payments made upon or after the
727	727	9 initiation of injection provided to consenting pore space
728	728	10 owners in consideration of allowing use of their pore
729	729	11 space for sequestration of carbon dioxide. In determining
730	730	12 if pore space owners are similarly situated, the
731	731	13 Department of Natural Resources shall take into account:
732	732	14 the size, location, and proximity of the pore space; the
733	733	15 geologic characteristics of the pore space; the
734	734	16 restrictions on the use of the surface; the actual use of
735	735	17 the surface; the relevant law applicable at the time the
736	736	18 consenting pore space agreement was signed; title defects
737	737	19 and title warranties; the proximity of the pore space
738	738	20 owners' property to any carbon sequestration
739	739	21 infrastructure on the surface; whether the injection
740	740	22 interferes with any known mineral rights; and the fair
741	741	23 market value of pore space when entering into a commercial
742	742	24 contract. When evaluating the compensation provided to a
743	743	25 similarly situated pore space owner, the Department of
744	744	26 Natural Resources shall exclude any compensation provided
745	745
746	746
747	747
748	748
749	749
750	750	SB1697 - 20 - LRB104 09225 AAS 19282 b
751	751
752	752
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754	754	SB1697 - 21 - LRB104 09225 AAS 19282 b
755	755	1 to a pore space owner of a property identified by the
756	756	2 applicant in paragraph (3) of subsection (b) and any
757	757	3 compensation that was not provided as part of an arm's
758	758	4 length transaction.
759	759	5 Unknown or nonlocatable pore space owners shall also
760	760	6 receive just compensation in the same manner as provided
761	761	7 to the other nonconsenting pore space owners that must be
762	762	8 held in a separate escrow account for 20 years for future
763	763	9 payment to the previously unknown or nonlocatable pore
764	764	10 space owner upon discovery of that owner. After 20 years,
765	765	11 the compensation shall be transferred to the State
766	766	12 Treasurer under the Revised Uniform Unclaimed Property
767	767	13 Act.
768	768	14 (f) The Department of Natural Resources' order for
769	769	15 unitization and integration of pore space under this Section
770	770	16 is not effective until the petitioner has been issued a Class
771	771	17 VI well permit from the United States Environmental Protection
772	772	18 Agency and the carbon sequestration permit from the Illinois
773	773	19 Environmental Protection Agency.
774	774	20 (g) An order for integration and unitization under this
775	775	21 Section shall: provide for the unitization of the pore space
776	776	22 identified in the petition; authorize the integration of pore
777	777	23 space of nonconsenting pore space owners in the pore space
778	778	24 identified; provide for who may unitize the pore space to
779	779	25 establish a sequestration facility to be permitted by the
780	780	26 Illinois Environmental Protection Agency; and make provision
781	781
782	782
783	783
784	784
785	785
786	786	SB1697 - 21 - LRB104 09225 AAS 19282 b
787	787
788	788
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790	790	SB1697 - 22 - LRB104 09225 AAS 19282 b
791	791	1 for payment of just compensation to nonconsenting pore space
792	792	2 owner under the integration order.
793	793	3 (h) A petitioner shall provide a copy of any order for
794	794	4 unitization and integration of pore space to the Illinois
795	795	5 Environmental Protection Agency.
796	796	6 (i) If groundwater monitoring required by a Class VI
797	797	7 permit indicates that the source of drinking water has been
798	798	8 rendered unsafe to drink or to provide to livestock, the
799	799	9 sequestration operator shall provide an alternate supply of
800	800	10 potable drinking water within 24 hours of the monitoring
801	801	11 results becoming available and an alternate supply of water
802	802	12 that is safe for other uses necessary within 30 days of the
803	803	13 monitoring results becoming available. The alternate supplies
804	804	14 of both potable water and water that is safe for other uses
805	805	15 shall continue until additional monitoring by the
806	806	16 sequestration operator shows that the water is safe for
807	807	17 drinking and other uses.
808	808	18 (j) After an order for unitization and integration of pore
809	809	19 space is issued, the petitioner shall request that the
810	810	20 Department of Natural Resources issue separate orders
811	811	21 establishing the amount of just compensation to be provided to
812	812	22 each nonconsenting pore space owner. When submitting this
813	813	23 request, the petitioner shall provide information
814	814	24 demonstrating the good faith efforts taken to negotiate an
815	815	25 agreement with the nonconsenting pore space owner, including,
816	816	26 but not limited to, the number and extent of the petitioner's
817	817
818	818
819	819
820	820
821	821
822	822	SB1697 - 22 - LRB104 09225 AAS 19282 b
823	823
824	824
825	825	SB1697- 23 -LRB104 09225 AAS 19282 b SB1697 - 23 - LRB104 09225 AAS 19282 b
826	826	SB1697 - 23 - LRB104 09225 AAS 19282 b
827	827	1 contacts with the pore space owner, whether the petitioner
828	828	2 explained the compensation offer to the pore space owner,
829	829	3 whether the compensation offer was comparable to similarly
830	830	4 situated pore space owners, what efforts were made to address
831	831	5 the pore space owner's concerns, and the likelihood that
832	832	6 further negotiations would be successful. All orders requiring
833	833	7 the provision of just compensation shall be made after notice
834	834	8 and hearing in which the Department of Natural Resources shall
835	835	9 determine the appropriate amount of just compensation to be
836	836	10 provided to each nonconsenting pore space owner as described
837	837	11 in this Section. The Department shall adopt reasonable rules
838	838	12 governing such hearings as may be necessary. In such a
839	839	13 hearing, the burden shall be on the petitioner to prove the
840	840	14 appropriate amount of just compensation consistent with this
841	841	15 Section. Both the petitioner and the pore space owner shall be
842	842	16 permitted to provide testimony and evidence regarding the
843	843	17 appropriateness of the amount of just compensation proposed by
844	844	18 the sequestration operator. An order by the Department of
845	845	19 Natural Resources establishing the appropriate amount of just
846	846	20 compensation to be provided to a nonconsenting pore space
847	847	21 owner shall be a final agency decision subject to judicial
848	848	22 review under the Administrative Review Law. Such proceedings
849	849	23 for judicial review may be commenced in the circuit court of
850	850	24 the county in which any part of the pore space is situated. The
851	851	25 Department of Natural Resources shall not be required to
852	852	26 certify any record to the court or file any answer in court or
853	853
854	854
855	855
856	856
857	857
858	858	SB1697 - 23 - LRB104 09225 AAS 19282 b
859	859
860	860
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862	862	SB1697 - 24 - LRB104 09225 AAS 19282 b
863	863
864	864
865	865
866	866
867	867
868	868	SB1697 - 24 - LRB104 09225 AAS 19282 b