Illinois Implements Zero Emission Credits Based on SCC

  • Application

    Zero Emission Credits Program

  • Date

    October 2018
  • 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 upheld the district court decision

  • 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 http://www.ilga.gov/legislation/99/SB/PDF/09900SB2814enr.pdf ↩︎
  4.  Village of Old Mill Creek v. Star, Case No. 17-cv-1163, Memorandum Opinion and Order (July 14, 2017), available here  ↩︎

← PUC of Nevada Uses SCC to Fulfill New Mandate on Integrated Resource Plans

New York Incorporates SCC into Proceeding on Reforming the Energy Vision →

Feedback? Please email iliana.paul@nyu.edu.