Illinois Implements Zero Emission Credits Based on SCC

  • Application

    Zero Emission Credits Program

  • Date

    July 2016
  • Details

    The state legislature passed a comprehensive energy bill, which included provisions for valuing the social benefits of emissions-free energy. 1 This policy is similar to New York’s zero emission credits program under the Reforming the Energy Vision program.

  • SCC Value(s)

    $16.50/MWh, based on IWG’s 2016 3% estimate, adjusted for inflation. 2

  • Reference

    Future Energy Jobs Bill (SB 2814), 220 ILCS 5/20-135 new

  • Legal Authority

    220 ILCS 5/20-135 defines the price for each ZEC as “in an amount that equals the Social Cost of Carbon,” subject to a price adjustment if the price exceeds a threshold. 3

  • Litigation

    The U.S. District Court for the Northern District of Illinois recently upheld Illinois’s ZEC program against preemption and dormant commerce clause claims. 4 The case was then appealed to the Seventh Circuit U.S. Court of Appeals, which has not yet been decided. The Seventh Circuit case, however, may have ramifications for similar ZEC programs in New York and New Jersey. 5

  • Commentary

    First state after New York to use SCC in setting ZECs.

  1.  Future Energy Jobs Bill (SB 2814), 220 ILCS 5/20-135 new ↩︎
  2.  Id. at 135-36. ↩︎
  3.  Future Energy Jobs Bill (SB 2814), 220 ILCS 5/20-135 new, at 135, available at ↩︎
  4.  Village of Old Mill Creek v. Star, Case No. 17-cv-1163, Memorandum Opinion and Order (July 14, 2017), available here  ↩︎
  5. ↩︎

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