Illinois Carbon Capture

What is carbon capture technology?

Carbon capture technology refers to a set of methods and tools used to capture carbon dioxide (CO₂) emissions at their source, such as power plants and industrial facilities, preventing them from entering the atmosphere. Once captured, the CO₂ can be stored underground or used for various purposes.

How does carbon capture work?

Carbon capture typically involves three main steps: 

• Capture: CO₂ is separated from other gases produced during combustion or industrial processes.

• Transport: The captured CO₂ is transported to a storage or utilization site.

• Storage/Utilization: The CO₂ is either stored deep underground in geological formations (known as carbon sequestration) or used in various applications.

Why do proponents support carbon capture technology?

Proponents argue that carbon capture:

• Can significantly reduce greenhouse gas emissions, helping to combat climate change.

• Allows for a smoother transition to a low-carbon future by enabling continued use of fossil fuels while reducing their environmental impact.

• Can create economic opportunities through the development of new technologies and industries.

Why do opponents oppose carbon capture technology?

Critics of carbon capture believe:

• It may divert attention and resources from renewable energy sources.

• There are potential risks associated with the storage of large amounts of CO₂ underground.

• It can be expensive and may not be economically viable without significant subsidies or incentives.

Are there any secondary uses for the captured carbon?

Yes, captured CO₂ can be used in various applications, including:

• Enhanced oil recovery (EOR): Injecting CO₂ into oil reservoirs to increase oil production.

• Manufacturing: Using CO₂ in the production of chemicals, plastics, and other materials.

• Agriculture: Using CO₂ to promote plant growth in greenhouses.

What are the byproducts of carbon capture?

Depending on the capture method used, byproducts can include heat, water, and other chemicals. Some of these byproducts can be reused in industrial processes, while others may need to be treated or disposed of.

Are there federal regulations related to carbon capture?

Yes, in many countries, there are federal regulations governing the capture, transport, and storage of CO₂ to ensure safety and environmental protection. For instance, in the U.S., the Environmental Protection Agency (EPA) has established guidelines for carbon sequestration to prevent potential risks to public health and the environment.

Are there state regulations related to carbon capture?

State regulations can vary, but many states have developed their own guidelines and policies to promote or regulate carbon capture and storage projects. These can range from incentives and grants to specific safety and monitoring requirements.

Carbon Capture, Utilization, and Storage (CCUS):

• Carbon capture, utilization, and storage (CCUS) involves capturing CO2 from large point sources and either using it or storing it in deep geological formations.

• CCUS can be retrofitted to existing power and industrial plants and can tackle emissions in hard-to-abate sectors.

• The United States and the United Kingdom have increased funding for CCUS projects, and the European Union has proposed a CO2 storage target to encourage investment in CCUS. [Sources: IEA, Federal Register]

Geologic Sequestration (GS) and Class VI Wells:

• Class VI wells are used to inject carbon dioxide (CO2) into deep rock formations for long-term underground storage, known as geologic sequestration (GS).

• The goal of GS is to reduce CO2 emissions to the atmosphere and mitigate climate change.

• Class VI well requirements are designed to protect underground sources of drinking water.

• The regulations for Class VI wells address the unique nature of CO2 injection for GS, considering factors like the buoyancy of CO2, its subsurface mobility, and its corrosivity in the presence of water.

• In December 2010, the EPA published the Federal Requirements for Class VI wells, which provide guidelines for the siting, construction, operation, testing, monitoring, and closure of these wells. [Source: EPA]

Federal Environmental Laws and Carbon Capture:

• The Clean Air Act (CAA) regulates greenhouse gas (GHG) emissions, including CO2, from stationary sources.

• The Safe Drinking Water Act (SDWA) regulates the underground injection of CO2 for geologic sequestration through the Underground Injection Control (UIC) program.

• The Resource Conservation and Recovery Act (RCRA) may apply if captured CO2 is considered a waste.

• The Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA)and the Emergency Planning and Community Right-to-Know Act (EPCRA) have reporting requirements that may apply to facilities capturing and storing CO2.

• The Endangered Species Act (ESA) and the National Historic Preservation Act (NHPA) may require reviews and consultations for carbon capture projects.

• The National Environmental Policy Act (NEPA) requires federal agencies to evaluate the environmental impacts of their actions, which may include permitting or funding carbon capture projects.

• The Federal Land Policy and Management Act (FLPMA) and the Mineral Leasing Act (MLA)govern the use of federal lands for carbon capture and sequestration projects. [Source: Mayer Brown]

EPA's Rules and Policies:

• The EPA's Affordable Clean Energy (ACE) rule was criticized for not doing enough to promote carbon capture.

• The ACE rule replaced the Clean Power Plan, which set more aggressive targets for reducing carbon emissions from power plants. [Source: Time]

National Carbon Capture Statistics:

• Over 100 planned carbon capture, transport, or storage projects have been announced in the U.S.

• The capacity for carbon capture is expected to grow to over 130.6 megatons of CO2 per year by 2030.

Illinois and Carbon Capture:

• Illinois is considering ways to achieve its goal of relying entirely on clean energy by 2050, with carbon capture being one of the technologies under consideration.

• Carbon capture involves placing CO2 in long-term storage, usually by injection into wells in geologic formations deep underground.

• The carbon capture industry is expected to grow significantly in the coming years, especially as high emissions industries seek to reduce their carbon footprint.

• Several planned projects in Illinois are prompting lawmakers to consider how to regulate the technology to ensure safety for residents living near pipelines or sequestration wells.

• The Illinois Basin, covering roughly 70% of the state, has favorable geology for carbon capture and is home to the country's first commercial-scale carbon sequestration project.

Competing Illinois Legislation 2023:

• House Bill 3119: Sponsored by Rep. Ann Williams, this bill would ensure that companies engaging in carbon transport or injection are liable for any damages caused by CO2 transportation. It would also establish a permitting structure for carbon capture projects, requirements for setbacks from occupied land, and a fee structure to fund new regulatory mandates.

• House Bill 2202 and Senate Bill 2153: Supported by industry groups like ADM, Navigator CO2, and the Illinois Manufacturers Association, these bills focus on "landowner's protection." While the bills do not regulate the transport of CO2, they do codify pore space ownership and create an application process for companies to obtain rights to use pore space.

Proposed Illinois Legislation 2024:

•  Senate Bill 3311 and House Bill 569, creates the Climate and Landowner Protection Act for the purpose of storing carbon dioxide underground in a permanent manner by establishing parameters for land ownership interests, facility permits, development compliance, notice, compensation, fees, and liability.

• Legislative compromise was ultimately reached in late May 2024 through Senate Bill 1289, which provides regulations for injections wells (i.e. sequestration) while also mandating a pipeline moratorium through July 1, 2026.

Illinois Pipelines:

• Navigator CO2 proposes a 1,300-mile pipeline for transporting CO2 for storage or utilization, running through five states, including fourteen west-central counties in Illinois. Navigator filed an expanded application in February, adding 42 miles of pipeline to its previous application. Source On October 10, 2023, Navigator withdrew its application for a carbon dioxide pipeline permit, but may consider refiling in the future similar to its withdrawal and refiling in early 2024. Source

• Wolf Carbon Solutions filed an application with the Illinois Commerce Commission in June 2023 to build 166 miles of the Mt. Simon Hub Pipeline in Illinois, Source, but subsequently withdrew its application in November 2023 following concerns raised by Illinois Commerce Commission (ICC) staff; however, in its application withdrawal to the ICC, Wolf stated that "through a new application, it can address and moot many, if not all, of the concerns expressed," Source.

Federal Oversight:

• The Pipeline and Hazardous Materials Safety Administration oversees CO2 pipelines at the federal level. They began a new rulemaking process for pipeline safety in response to a 2020 incident where a CO2 pipeline burst in Mississippi.

***Sources***

Link to CRS Reports - October 5, 2022

Link to NETL's CCS Database

Link to Capitol News Illinois Source - April 25, 2023

Link to Capitol News Illinois Source - October 14, 2023

Link to Center Square Source - March 13, 2024

In late May 2024, Illinois lawmakers passed significant legislation concerning carbon capture and storage (CCS) technology, which involves transporting carbon dioxide (CO2) via pipelines and storing it underground.

Illinois Public Act 103-651, establishes regulations for injection sites (i.e. sequestration), and a moratorium on new carbon pipeline projects until the U.S. Pipeline and Hazardous Materials Safety Administration (PHMSA) sets new federal safety guidelines; this moratorium is set to expire on July 1, 2026, unless PHMSA finalizes the safety rules before that date.

Safety and Monitoring Provisions

Key safety provisions in the legislation include:

1. Extended Monitoring: Injection wells used for carbon storage must be monitored for at least 30 years after they are closed. This monitoring process requires approval from both state and federal agencies.

2. Illinois Commerce Commission Authority: The Commission is granted expanded authority to impose fees and mandate safety models during the permitting process for carbon sequestration and transportation projects.

3. State Funds for First Responders: The legislation establishes new state funds to train first responders and provide necessary equipment to handle emergencies related to CCS technology.

These provisions aim to mitigate the risks associated with CO2 pipeline bursts, which could lead to toxic releases of carbon dioxide, posing significant hazards to public health and safety.

Environmental and Community Impact

The bill has garnered support from various environmental groups, which traditionally oppose CCS projects. Organizations like the Little Village Environmental Justice Organization and Earthjustice have recognized the bill’s strong safety requirements and environmental protections. They argue that while CCS is not a perfect solution to the climate crisis, the legislation is a critical step in ensuring that any future projects do not exacerbate pollution in already burdened communities.

However, some groups, including the Illinois Farm Bureau and the Illinois Soybean Association, have opposed the bill. Their primary concern lies in the eminent domain provisions, which allow the state’s Department of Natural Resources to mandate the use of underground "pore space" for carbon storage, potentially against the wishes of landowners. Although compensation is required, the method for calculating "just compensation" has faced bipartisan criticism.

Concerns and Next Steps

One of the major concerns revolves around the potential impact on the Mahomet Aquifer, a critical source of drinking water for much of central Illinois. Lawmakers, particularly those representing districts reliant on the aquifer, have voiced apprehensions about the risk of contamination. Historical incidents, such as the 2016 methane leak from a natural gas injection well, underline the potential dangers. The legislation includes stringent monitoring requirements and mandates that companies undertake remediation activities to mitigate these risks.

As the moratorium period unfolds, it is expected that there will be ongoing discussions and potential revisions to address these concerns, particularly the eminent domain and aquifer protection issues. Lawmakers like Sen. Laura Fine and Rep. Carol Ammons have indicated their commitment to revisiting these aspects to ensure robust protections for property owners and critical water resources.

Implementation and Future Considerations

The next steps in implementing this legislation involve close collaboration between state and federal agencies to establish and enforce the new safety guidelines. Key actions include:

1. Finalizing Safety Rules: The PHMSA needs to expedite the development and finalization of safety regulations for CO2 pipelines.

2. Establishing State Funds: Illinois must operationalize the newly created state funds to ensure first responders are adequately trained and equipped to handle potential CCS emergencies.

3. Monitoring and Enforcement: State agencies must develop comprehensive monitoring and enforcement mechanisms to ensure compliance with the new safety standards and environmental protections.

4. Ongoing Legislative Review: Lawmakers will continue to review and potentially amend the legislation to address emerging concerns and incorporate additional protections as needed.

Ultimately, the May 2024 Illinois legislative compromise on carbon capture and storage balances the potential benefits of CCS in mitigating climate change with the need to protect public health, safety, and the environment. The success of this legislative framework will depend on effective implementation, continuous monitoring, and the willingness of stakeholders to engage in ongoing dialogue and refinement of the regulations.

***Sources***

• Capitol News Illinois - May 28, 2024

• WBEZ - June 10, 2024

• Chicago Tribune - June 7, 2024