Zero Emissions Credit Litigation: The Road Ahead

By Gordon Coffee and Tyson Smith (August 14, 2017, 4:28 PM EDT) -- On July 14, a federal judge in Illinois issued an opinion dismissing complaints challenging the zero emissions credit (ZEC) programs enacted by Illinois last year. On July 25, a New York federal judge rejected a similar challenge to that state's ZEC program.

In both cases, the plaintiffs, led by the Coalition for Competitive Electricity and the Electric Power Supply Association, argued that the ZEC programs were preempted by the Federal Power Act and intruded on the exclusive authority of the Federal Energy Regulatory Commission over wholesale electricity markets. The plaintiffs also contended that the programs discriminated against out-of-state generators in violation...

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