Abby L. Harvey
GHG Monitor
2/27/2015
A new bill introduced in the Illinois state legislature this week would direct the Illinois Environmental Protection Agency to develop a market-based “cap-and-invest” program to comply with the Environmental Protection Agency’s proposed carbon emissions standards for existing coal fired power plants upon the rule’s finalization. The proposed EPA rule is due to be finalized mid-summer and sets state-specific targets for emissions reductions and requires states to develop action plans to meet those targets. “A comprehensive market-based program shall, at a minimum, achieve the carbon emissions reductions required to meet Illinois’ mass-based goal under its Plan and create a mechanism to achieve additional emissions reductions from the power sector when implemented in conjunction with other State policies, including Illinois’ Renewable Energy Standard and Energy Efficiency Resource Standard,” the bill says.
The bill would also call on the state agency to reach out to other states in an effort to create a regional program, which is allowed in the proposed EPA regulation. “The Agency shall make every effort to participate in a regional program and regional allowance auctions with other states if it results in greater carbon dioxide emission reductions at a lower cost for Illinois’ residents over time. The Agency may conduct Illinois-only auctions if such auctions are found to be in the best interests of Illinois ratepayers, as determined by the Agency, and after consultation with the Illinois Commerce Commission, taking into account the impact on the State’s goals under the USEPA rule, State residents’ health, and ratepayers,” the bill says.
Funds collected by the market-based program would be invested into a number of state programs. A minimum of 65 percent of the revenue from the program would be invested in new renewable energy and energy efficiency and at least 20 percent of that would be earmarked for low-income communities and households. Five percent would be reserved to “assist workers in the fossil fuel-fired power plant industry to transition to renewable energy and energy efficiency jobs.” Other allocations include 5 percent for low-income energy bill assistance, the mitigation of adverse health and economic impacts of a power plants’ pollution within its local community and basic administrative costs.
