Archive: July 2017

1
K&L Gates Blockchain Energizer – Volume 9
2
Illinois District Court Rejects Federal Preemption Challenges to State Zero-Emissions Credit Program
3
K&L Gates Blockchain Energizer – Volume 8

K&L Gates Blockchain Energizer – Volume 9

By Molly Suda, Buck B. Endemann, and Ben Tejblum

There is a lot of buzz around blockchain technology and its potential to revolutionize a wide range of industries from finance and healthcare to real estate and supply chain management. Reports estimate that over $1.4 billion was invested in blockchain startups in 2016 alone, and many institutions and companies are forming partnerships to explore how blockchain ledgers and smart contracts can be deployed to manage and share data, create transactional efficiencies, and reduce costs.

While virtual currencies and blockchain technology in the financial services industry have been the subject of significant debate and discussion, blockchain applications that could transform the energy industry have received comparatively less attention. Every other week, the K&L Gates’ Blockchain Energizer will highlight emerging issues or stories relating to the use of blockchain technology in the energy space. To subscribe to the Blockchain Energizer newsletter, please click here.

IN THIS ISSUE

  • Illinois Moving Forward with Blockchain Pilots
  • Singapore: Latest Country to Develop a Regulatory Sandbox to Promote Energy Innovation
  • LO3 Energy Developing Blockchain-Powered Microgrid Technology to Australia

To view more information on theses topics in Volume 9 of the Blockchain Energizer, click here.

Illinois District Court Rejects Federal Preemption Challenges to State Zero-Emissions Credit Program

By Molly Suda, Donald A. Kaplan, William M. Keyser, John L. Longstreth, and Elizabeth P. Trinkle

UPDATE: On July 25, 2017, the New York court issued its decision, which also upheld New York’s ZEC program. We will have more analysis of that decision in a later post.

On July 14, 2017, the U.S. District Court for the Northern District of Illinois issued an opinion dismissing challenges to the state of Illinois’ zero-emissions credit (“ZEC”) program. Illinois’ ZECs are tradable credits created by statute that, in the court’s words, put “money in the coffers of Exelon from the sale of ZECs that will give it a benefit when pricing its energy in the wholesale market relative to competing energy producers that do not receive ZEC payments.” The ZECs represent the zero-emissions attributes of nuclear power and would provide additional revenue for nuclear power plants, whose owners state they are unable to cover their costs in the current low-price wholesale energy and capacity markets.

In its decision in the companion cases Village of Old Mill Creek v. Star and Electric Power Supply Association v. Star upholding the ZEC program, the court rejected arguments that Illinois’ program is preempted by the Federal Power Act and further concluded that ZECs do not discriminate under the dormant commerce or equal protection clauses. If affirmed on appeal, the opinion could have important implications for the future of other states’ programs aimed at supporting at-risk nuclear power plants and may influence the Federal Energy Regulatory Commission’s (“FERC”) outlook on its role in integrating state programs and policies into wholesale energy markets.

To read the full alert on K&L Gates HUB, click here.

K&L Gates Blockchain Energizer – Volume 8

By Molly Suda, Buck B. Endemann, and Ben Tejblum

There is a lot of buzz around blockchain technology and its potential to revolutionize a wide range of industries from finance and healthcare to real estate and supply chain management. Reports estimate that over $1.4 billion was invested in blockchain startups in 2016 alone, and many institutions and companies are forming partnerships to explore how blockchain ledgers and smart contracts can be deployed to manage and share data, create transactional efficiencies, and reduce costs.

While virtual currencies and blockchain technology in the financial services industry have been the subject of significant debate and discussion, blockchain applications that could transform the energy industry have received comparatively less attention. Every other week, the K&L Gates’ Blockchain Energizer will highlight emerging issues or stories relating to the use of blockchain technology in the energy space.

IN THIS ISSUE

  • Investment in Energy Blockchain Applications is Heating Up
  • New Forms of Consensus Being Developed to Meet the Needs of Business Blockchains
  • Blockchain Being Deployed to Optimize Shipping Container Management

To view more information on theses topics in Volume 8 of the Blockchain Energizer, click here.

 

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