Illinois would collect climate costs from major fossil fuel producers

Illinois would establish a special fund for climate change adaptation costs. The fund would support projects and programs in Illinois that help state, local, and tribal governments and residents prepare for or respond to climate-related harm. Money could be used only for listed projects, program administration, and repayment of certain startup loans. At least 40% of fund money would have to support disadvantaged communities facing climate change impacts. Spending would be subject to legislative appropriation. The fund would operate after the Act takes effect, with spending governed by agency rules.

The Illinois Environmental Protection Agency would assess cost-recovery payments against certain fossil fuel companies. The payments would apply to entities or successors that extracted fossil fuels or refined crude oil during 2000 through 2024 and are found responsible for more than 1 billion tons of covered emissions, subject to constitutional connection requirements. Each company would pay a share based on its portion of covered emissions and the fund's overall size. The liability would be strict, meaning the company would not need to be found at fault. Payments could be made in equal yearly installments over five years, but unpaid balances could become immediately due after missed payments, liquidation, or the end of business. Amounts would accrue inflation-based interest, and the agency or a court could pause payment during a challenge while interest continued. The agency would adopt liability rules within one year after the Act takes effect and serve payment notices within six months after adopting those rules; liability would cover emissions from January 1, 2000, through December 31, 2024.

The Environmental Protection Agency would write rules, run the program, and provide ways to challenge payment assessments. The rules would cover liability calculations, payment notices, funded projects, public proposals, and challenges by entities labeled responsible parties. The agency would hold at least one in-person and one online public hearing on proposed rules. A company could ask the agency to reconsider its designation or payment amount and could seek court review after completing required agency review. The agency would not be required to provide another administrative appeal after reconsideration. The Act would not regulate future fossil fuel extraction, production, refining, combustion, or sales. The agency would adopt implementation rules within one year after the Act takes effect; the fund report to the General Assembly would be due within six months after the effective date.