Illinois Implements Zero Emission Credits Based on SCC
Zero Emission Credits Program
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.
$16.50/MWh, based on IWG’s 2016 3% estimate, adjusted for inflation. 2
Future Energy Jobs Bill (SB 2814), 220 ILCS 5/20-135 new
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
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
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 ↩︎
- https://www.utilitydive.com/news/ferc-doj-support-illinois-nuclear-subsidies-in-court-filing/524580/ ↩︎
Feedback? Please email email@example.com.