Illinois Implements Zero Emission Credits Based on SCC
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Application
Zero Emission Credits Program
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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.
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SCC Value(s)
$16.50/MWh, based on IWG’s 2016 3% estimate, adjusted for inflation. 2
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Reference
Future Energy Jobs Bill (SB 2814), 220 ILCS 5/20-135 new
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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
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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.
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Commentary
First state after New York to use SCC in setting ZECs.
- Future Energy Jobs Bill (SB 2814), 220 ILCS 5/20-135 new ↩︎
- Id. at 135-36. ↩︎
- 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 ↩︎
- Village of Old Mill Creek v. Star, Case No. 17-cv-1163, Memorandum Opinion and Order (July 14, 2017), available here ↩︎
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