Carbon Capture Law Delivers Opportunity for Ethanol & Protects Landowners

FOR IMMEDIATE RELEASE Contact: Lindsay Croke

May 28, 2024 (309) 846-6622

Carbon Capture Law Delivers Opportunity for Ethanol & Protects Landowners

BLOOMINGTON, Ill. – IL Corn Growers Association (ICGA) and the Illinois Renewable Fuels Association (ILRFA) appreciate passage of SB1289, the SAFE CCS Act through the state legislature. The bipartisan legislation helps move carbon capture and sequestration (CCS) technology projects forward safely and responsibly in Illinois.

“Having a seat at the table in these discussions is critical for the industry,” Victoria farmer and ICGA President Dave Rylander said. “All sides worked towards compromise in this legislation, which creates additional regulatory framework around carbon capture and storage technology, CO2 pipelines, and provides landowner protections.”

“Carbon capture and sequestration is an important opportunity for ethanol plants and corn farmers. The technology allows corn-based ethanol to lower its carbon intensity and qualify for additional clean fuel market opportunities like sustainable aviation fuel. With this law, CCS projects can safely move forward and positions Illinois to lead in the clean fuel industry, which benefits everyone, including our renewable fuels industry,” said Dustin Marquis, President of the IL Renewable Fuels Association.

We thank Gov. Pritzker and bill sponsors Rep. Ann Williams, Sen. Laura Fine, as well as Rep. Jay Hoffman and Sen. Bill Cunningham for their leadership in bringing together the business community, environmental groups, organized labor, and agriculture interests to move this bill forward.

Key Protection and Safety Provisions in SB1289

Protections for landowners:

Affirms pore space ownership belongs to the landowner without severability.
Requires companies to secure at least 75% of the pore space area around sequestration sites before they can petition to initiate unitization and the amalgamation process for remaining pore space. The number increased to 75% from 71% in the original proposal.
IL Department of Natural Resources governs pore space amalgamation process, not eminent domain.
Provides extensive protections to non-consenting landowners including payment for pore space to be at least an average amount of what consenting landowners were paid per acre for use of their pore space during injection for the life of the well.
Requires 30 years of additional post-injection air and soil monitoring at sequestration sites – which goes further than existing federal requirements.

Moratorium on CO2 pipelines

Institutes CO2 pipeline moratorium until the Pipeline and Hazardous Materials Safety Administration (PHMSA) – the federal agency responsible for regulating the transportation of carbon dioxide in the US - finalizes updated safety rules for CO2 pipelines OR July 2026, whichever is sooner.

Safety

Creates an emergency planning and training fund that can be accessed by the Illinois Emergency Management Agency-Office of Homeland Security to provide training exercises, equipment and support for local emergency services and disaster agencies to prepare for future CO2 pipelines and sequestration projects.
Creates a long-term trust fund to ensure the citizens, resources, and environment of the state will be protected in the future.

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About the IL Corn Growers Association

IL Corn Growers Association is a state-based organization that represents the interests of corn farmers in Illinois, maintaining a high profile on issues in Washington, DC, and Springfield, IL. Through grassroots advocacy, ICGA creates a future for Illinois farmers in which they can operate freely, responsibly, and successfully. In order to fulfill this mission, the organization conducts governmental affairs activities at all levels, market development projects, and educational and member service programs. For further information regarding their work and involvement, visit their website www.ilcorn.org.

About the Illinois Renewable Fuels Association

Illinois Renewable Fuels Association is a member association formed in 2009 to help foster the development and growth of the ethanol industry in Illinois through education, promotion, research, legislation and infrastructure development. The ILRFA works closely with and supports the national ethanol trade organizations regarding national legislation, ethanol policy, and regulations. To learn more, visit www.illinoisrfa.org.

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