Governor Pritzker Signs Illinois Carbon Capture Bill Including Two-Year Moratorium on Pipelines

The longstanding effort to create a legal framework for developing carbon capture and storage infrastructure in Illinois has come to a close. In what could be described as a balancing act, the final version of the bill signed by Gov. J.B. Pritzker on Thursday allows for the construction of pipelines to transport carbon dioxide, but places a moratorium until July 1, 2026.

While the two-year period is determined by the development of federal safety regulations for carbon transportation, it provides more time for industry, environmental and farming groups, and the public to converge their positions, while providing a platform for resource- and capital-intensive projects to get underway.

“Illinois will create new jobs while leading the fight against climate change. In recent years, it has become increasingly clear that while the transition to green energy is inevitable, we must use every tool at our disposal to slow emissions and address climate change,” Pritzker said.

According to figures from the governor’s office, the expected investment from carbon capture projects could be as much as $9 billion and could create about 3,700 new jobs.

The bill also provides safeguards against potential risks through the creation of an environmental justice fund and a monitoring requirement for at least 30 years after the start of activities.

Sen. Laura Fine, D-Glenview, the sponsor of the legislation in the Senate, said, “This legislation establishes some of the strongest environmental protections in the country. Without these safeguards, projects could move forward without essential protections.”

Many of the state’s existing carbon transfer applications have been denied. The Illinois Commerce Commission denied a permit for a One Earth Sequestration pipeline that would run through McLean and Ford counties.

In November 2023, a proposal for a Wolf carbon pipeline that would have transported carbon dioxide from Iowa to central Illinois for storage was halted. The company said it plans to resubmit the application in 2024.

Read more: Wolf CO2 pipeline halts Illinois plans, plans to review and resubmit