Pritzker Signs SAFE CCS Act: New Carbon Capture Regulations and Pipeline Moratorium in Illinois

Governor JB Pritzker has signed the Safety and Aid for the Environment in Carbon Capture and Sequestration (SAFE CCS) Act into law, establishing stringent safety requirements and a temporary ban on carbon dioxide pipeline construction in Illinois.

The law sets rigorous standards for carbon capture and sequestration (CCS) projects, mandating state permits that include comprehensive safety monitoring and require projects to achieve a net reduction in greenhouse gases. The legislation was passed by the General Assembly earlier this year with significant support from environmental groups, labor organizations, and business leaders.

“We are essentially attempting to refossilize fossil fuels – put them back under the ground and keep them from going into the air and contributing to global warming,” said state Sen. Bill Cunningham (D-Chicago). “That’s very important work.”

Key Provisions of the SAFE CCS Act

1. Two-Year Moratorium on New Pipelines
The legislation imposes a two-year moratorium on the construction of new carbon dioxide pipelines. This timeline may be shortened if the U.S. Pipeline and Hazardous Materials Safety Administration finalizes new safety rules before then. The moratorium aims to address safety concerns following incidents like the 2020 pipeline burst in Satartia, Mississippi.

2. Comprehensive Permitting and Monitoring Requirements Developers of carbon capture projects must obtain state permits, which include stringent safety monitoring throughout the project’s lifecycle and for at least 30 years after its completion. These permits ensure continuous oversight and adherence to safety protocols.

3. Financial and Insurance Requirements
The law mandates financial assurances and insurance coverage for CCS projects to guarantee that funds are available for any potential accidents or failures. This includes emergency management plans and detailed closure plans to ensure projects are safely decommissioned.

4. Environmental Protections
Projects must achieve a net reduction in greenhouse gases, meaning the amount of carbon dioxide captured and stored must exceed the emissions produced during the construction and operation of the CCS infrastructure. Additionally, CCS projects must conduct rigorous water, air, and soil monitoring to detect and address any leaks or contamination promptly.

5. First Responder Training
The SAFE CCS Act mandates training and support for first responders in areas where pipelines are located. This ensures that local emergency services are prepared to handle any incidents involving carbon dioxide pipelines.

6. Regulatory Oversight and Transparency
The Illinois Commerce Commission (ICC) will oversee a rigorous and transparent assessment process for new CCS projects. This includes public input and stringent review of project plans to ensure compliance with safety and environmental standards.

Economic and Environmental Impact

“This bill adds carbon capture to the growing list of new and burgeoning industries being built right here in our state,” said Pritzker, emphasizing the economic benefits of the legislation.

Chris Cuddy, an executive at Archer Daniels Midland, praised the bill, noting that “CCS is an enabler for job creation, innovation, and economic growth.”

The Pritzker administration expects the bill, combined with federal incentives from the Inflation Reduction Act, to bring up to $9 billion in investment and create up to 3,700 jobs, many of them union positions.

In May Senior Campaign Representative of Sierra Club Illinois Christine Nannicelli shared the following statement on behalf of the Illinois Clean Jobs Coalition in response to the bill’s introduction:

“The SAFE CCS Act ensures critical guardrails are in place to protect Illinois taxpayers, landowners and our environment from the risks associated with capturing, transporting and injecting fossil fuel pollution into the earth. The Prairie Research Institute’s 2023 carbon capture report clearly demonstrated that Illinois is woefully unprotected from the many risks associated with these projects, and this bill takes urgent steps forward to address those gaps. In addition, Illinois joins California as the only two states in the nation to ban the use of CO2 for enhanced oil recovery.

“SB1298 is a compromise. It does not include every protection our coalition fought for, and these safeguards will likely need to evolve over time as this technology is deployed at scale. Nonetheless, it represents some of the strongest protections in the country, and also represents the incredible work of hundreds of concerned residents who have been fighting for years against carbon capture threats in their communities.

Criticism and Concerns

Despite broad support, the bill has faced criticism, particularly from Republicans and some local lawmakers. State Sen. Chapin Rose (R-Mahomet) expressed strong opposition, specifically citing concerns about the Mahomet Aquifer, a crucial water source for central Illinois.

The Mahomet Aquifer, designated as a “Sole Source Aquifer” by the U.S. Environmental Protection Agency, provides drinking water to nearly one million people in central Illinois. Critics, including Rose, worry about the potential for carbonic acid formation from CO2 interaction with the water, which could mobilize hazardous contaminants.

Sen. Rose has filed a new bill, Senate Bill 3963 that bans carbon sequestration activity over the Mahomet Aquifer.

The legislation’s proponents, however, insist that the bill is based on solid science. “We based it on the science and the data and the modeling that we had access to,” said Rep. Ann Williams (D-Chicago). “So [we] felt very comfortable about how we were providing safeguards to drill, not just through the aquifer, but anywhere in the state of Illinois.”

Future Outlook

The SAFE CCS Act represents a significant step in Illinois’ ongoing efforts to combat climate change and transition to a clean energy economy. It builds on previous initiatives such as the Climate and Equitable Jobs Act, which commits Illinois to 100% renewable energy by 2050.

“This law continues Illinois on its path to being a national leader in addressing the climate crisis,” said Sen. Laura Fine (D-Glenview).

“This measure presents a critical opportunity to further propel Illinois’ transition to a clean energy economy without leaving workers and families behind,” said Pat Devaney, Secretary-Treasurer of the Illinois AFL-CIO. “It’s yet another example of Illinois leading the way to build a green economy putting the hard-working men and women of labor to work.”

As Illinois moves forward with these new regulations, the debate over carbon capture and sequestration is likely to continue, with stakeholders closely monitoring the implementation and impact of the SAFE CCS Act.