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Illinois Governor Signs Carbon Capture Bill with Pipeline Moratorium and New Regulations

2024-07-22 00:58:40.045000

The legal battle over the placement of carbon dioxide pipelines in Iowa continues, as Summit Carbon Solutions argues that two county ordinances seeking to limit pipeline placement are overridden by state and federal regulators. The ordinances, passed by Shelby and Story counties, impose minimum separation distances between the pipelines and populated areas. Summit contends that these placement requirements are overruled by state regulators and that safety-related provisions fall under the jurisdiction of federal regulators. The case is set for oral arguments before a panel of Eighth Circuit U.S. Court of Appeals judges, with a decision expected next year. The outcome of this case could have implications for pending lawsuits against other counties. The work on the pipeline is incentivized by federal tax credits and aims to transport captured carbon dioxide from ethanol producers to North Dakota for sequestration. [7f77b94f]

Meanwhile, in North Dakota, the state's two largest industries, energy and agriculture, are investing in carbon capture and storage technology. North Dakota has spent over 15 years developing the framework for CO2 capture and storage, with significant investments in research and development. The state's coal industry could see an extended lifespan with stable CO2 policies, allowing it to continue providing baseload power for decades. Additionally, the state's CO2 policies create the opportunity to double the output of the Bakken oil field through enhanced oil recovery, which would have positive impacts on the economy. Ethanol plants in North Dakota could also benefit from accessing low-carbon fuels markets and strengthening the farm economy by capturing, shipping, and storing the CO2 they emit. The state's legislature has established a framework for success in carbon capture, transport, and storage, positioning North Dakota as a global leader in agriculture and energy. [094d8b04]

Illinois Governor J.B. Pritzker signed a new law governing carbon capture and storage, aiming to balance environmental concerns with economic development. The law includes a two-year moratorium on building new pipelines to move captured carbon dioxide (CO2). Decatur, Illinois, where the signing took place, has been at the forefront of experimental work on carbon capture. Archer Daniels Midland Co., based in Decatur, has been a leader in pioneering carbon capture technology. Critics have raised concerns about the long-term effects of carbon storage, but the Sierra Club, a critic of carbon capture, supports the new law, citing its safeguards and high standards for sequestration projects. The law also bans the use of carbon waste for oil drilling methods like fracking. Illinois business and manufacturing groups believe the law strikes a balance between decarbonization and economic growth, and will generate well-paying jobs. Decatur Mayor Julie Moore Wolfe highlighted the city's unique position for pioneering the carbon capture industry due to its workforce and geology. [c3068ae3]

In addition to the pipeline moratorium, the new legislation signed by Governor Pritzker includes new regulations on carbon capture and sequestration in Illinois. The law aims to balance environmental concerns with economic development and sets high standards for sequestration projects. It also prohibits the use of carbon waste for oil drilling methods like fracking. The Sierra Club, a critic of carbon capture, supports the new law, citing its safeguards. Illinois business and manufacturing groups believe the law strikes a balance between decarbonization and economic growth, and will generate well-paying jobs. Decatur, Illinois, where the signing took place, has been at the forefront of experimental work on carbon capture, with Archer Daniels Midland Co. leading the way in pioneering carbon capture technology. Mayor Julie Moore Wolfe highlighted the city's unique position for pioneering the carbon capture industry due to its workforce and geology. [33b28fc1]

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