Illinois § 59.10

§ 59.10.

Financial assurance. (a) The owner or operator of a sequestration activity permitted in accordance with this Act shall maintain financial assurance in an amount equal to or greater than the cost estimate calculated in accordance with paragraph (11) of Section 59.6. (b) The owner or operator of the sequestration activity must use one or a combination of the following mechanisms as financial assurance: (1) a fully funded trust fund; (2) a surety bond guaranteeing payment; (3) a surety bond guaranteeing performance; or (4) an irrevocable letter of credit. (c) The financial assurance mechanism must identify the Agency as the sole beneficiary. (d) The financial assurance mechanism shall be on forms adopted by the Agency. The Agency must adopt these forms within 90 days of July 18, 2024 (the effective date of Public Act 103-651). (e) The Agency shall release a trustee, surety, or other financial institution holding a financial assurance mechanism when: (1) the owner or operator of a carbon sequestration activity substitutes alternative financial assurance such that the total financial assurance for the site is equal to or greater than the current cost estimate, without counting the amounts to be released; or (2) the Agency determines that the owner or operator is no longer required to maintain a permit. (f) The Agency may enter into contracts and agreements it deems necessary to carry out the purposes of this Section, including, but not limited to, interagency agreements with the Illinois State Geological Survey, the Department of Natural Resources, or other agencies of the State. Neither the State nor any State employee shall be liable for any damages or injuries arising out of or resulting from any action taken under paragraph (11) of Section 59.6. (g) The Agency may order that a permit holder modify the financial assurance or order that proceeds from financial assurance be applied to the remedial action at or closure of an injection site. The Agency may pursue legal action in any court of competent jurisdiction to enforce its rights under financial instruments used to provide the financial assurance required under Section 59.10. (h) An owner or operator of a carbon sequestration activity permitted in accordance with this Act that has a closure plan approved by the United States Environmental Protection Agency in accordance with 40 CFR 146.93 may satisfy the financial assurance requirements for any portion of the cost estimates for closure costs required by the Agency by submitting to the Agency true copies of the financial assurance mechanism required by 40 CFR 146.85, if those mechanisms are compliant with Section 59.10. (Source: P.A. 103-651, eff. 7-18-24; 104-417, eff. 8-15-25.)