Summary/Abstract
The SAFE CCS Act (SB 1289) is a comprehensive regulatory framework for CCS projects in Illinois with an effective date of July 18, 2024. Among other things, it formalizes the ownership of pore space by the owner of the surface estate and establishes a Trust Fund to cover costs related to remediation, monitoring, and compensation, funded by annual per-ton fees levied on CCS operators. The SAFE CCS Act also puts in place specific provisions aimed at improving safety and environmental protection, as well as increasing regulatory supervision. These include permit requirements, fees on pipeline operators, requirements to demonstrate that projects will not result in a net increase in potential emissions, emergency protocols for incidents such as fluid or CO2 release, and prohibitions on the use of CO2 from CCS projects for enhanced oil and gas recovery or in ways that could lead to water pollution within the state. The SAFE CCS Act also adds in new provisions placing liability on the sequestration operator in the event of damage caused due to sequestration activities. Liability is imposed for any damage caused by the operation of the equipment for sequestration and any damage caused by releases attributable to the sequestration, irrespective of who may own title to the carbon dioxide or surface estate. If third parties caused the damage from releases, then liability on the sequestration operator will be joint and several with the third party.