The U.S. Court of Appeals for the Second Circuit on Sept. 27 upheld New York’s zero emission credit program adopted in August 2016 to support the state’s financially struggling nuclear plants. The ruling rejects complaints that the program depresses energy and capacity prices in the wholesale power auction overseen by the Federal Energy Regulatory Commission. Petitioners, a group of power generators, argued that the subsidized nuclear plants receive zero emission credits – which compensated eligible plants for every megawatt-hour of carbon-free electricity – in addition to what they earn in the power markets. The court said that the credits, similar to renewable energy certificates, are independent of the purchase or sale of wholesale energy and are not conditioned on participation in the power auction. The U.S. Court of Appeals for the Seventh Circuit on Sept. 13 upheld similar subsidies in Illinois finding that states hold authority to enact measures to promote clean generation so long as it is “untethered to a generator’s wholesale market participation.” The case is Coalition for Competitive Electricity, et al. v. Zibelman, et al (17‐2654‐cv).