As Illinois lawmakers explore the options available to them to balance the state’s budget, one possible solution may surprise them: making polluters pay for heat-trapping emissions that cause global warming.

The Climate Action and Clean Energy Investment Act (HB 3668), sponsored by State Rep. Elaine Nekritz, would limit heat-trapping emissions from large sources, including power plants and oil refineries. Businesses could buy emissions credits -- each worth one ton of emissions -- through a state-run auction that would cover the pollution they produce. Businesses would have the flexibility to choose the best mix of reducing emissions or buying credits. In this way, they would be able to use the power of the market to implement the most cost-effective emissions reductions.

According to an analysis by my organization, the Union of Concerned Scientists, HB 3668 could generate $800 million to $4 billion annually in Illinois. Revenues raised from polluting businesses would go toward measures that strengthen energy efficiency, increase renewable energy use, and further cut global warming pollution in ways that generate new local jobs.

The state could also use a portion of the revenue to shore up its budget.  Moreover, making businesses pay to pollute could prove far more popular -- and lucrative -- than increasing taxes. To put that revenue in perspective, the proposed $.08 per gallon gas tax increase sponsored by Illinois House Speaker Michael Madigan would generate around $500 million a year, and Gov. Pat Quinn’s proposed income tax changes would generate slightly more than $3 billion a year.

The House bill is part of two dozen climate policy recommendations approved by the Illinois Climate Change Advisory Group. Illinois has already passed two new laws sparked by the advisory group’s recommendations: renewable energy standards for utilities and energy efficiency standards for new commercial buildings. Lawmakers are considering other recommendations this session.

An analysis commissioned by the state found that implementing the 24 strategies would reduce global warming emissions to 1990 levels by 2020 and create 60,000 new jobs. Additionally, the analysis found that statewide energy costs would drop $1.1 billion in 2010, $2.6 billion in 2015, and $3.2 billion in 2020 compared with business as usual. Investing in energy efficiency, renewable energy, and other low-carbon technologies would save consumers money and cut global warming emissions at the same time.

There is related action at both the state and federal levels. Later this spring, Gov. Quinn and governors from five other Midwestern states are expected to sign off on a regional market-based program to reduce heat-trapping emissions. The climate bill working its way through the Illinois legislature is designed to mesh with this regional program and would authorize Illinois agencies to work with their counterparts in other Midwestern states and elsewhere.

At the federal level, Congress is expected to enact national global warming legislation sooner rather than later. If Illinois establishes a program before Congress acts, it would better position our state businesses to achieve emissions reductions and generate revenue that might otherwise have to come from tax increases. Fears that such a program would push businesses -- and jobs -- out of state are unfounded. With federal climate legislation on the horizon, polluters have nowhere to hide. Illinois should seize the opportunity now to get ahead of the curve.

Our state has contributed significantly to global warming. If Illinois were a country, we’d rank as the world’s 24th largest global warming polluter. And we have a lot to lose if global warming continues unchecked, including reduced agricultural output, more urban heat waves, heavier rains, and increased flooding.

It’s time to take responsibility for our emissions, and doing so sooner rather than later could prove an economic boon. The Climate Action and Clean Energy Investment Act would put our economy and our environment on the right path.

Ron Burke is the Midwest office director at the Union of Concerned Scientists.