(a) A project funded under a program established under this chapter may not be used for credit under any state or federal emissions reduction credit averaging, banking, or trading program.
(b) An emissions reduction generated by a program established under this chapter:
(1) may not be used as a marketable emissions reduction credit or, except as provided by § 386.056, to offset any emissions reduction obligation; and
(2) may be used to demonstrate conformity with the state implementation plan.

Terms Used In Texas Health and Safety Code 386.055

  • Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.

(c) A project involving a new emissions reduction measure that would otherwise generate marketable credits under state or federal emissions reduction credit averaging, banking, or trading programs is not eligible for funding under a program established under this chapter unless:
(1) the project includes the transfer of the reductions that would otherwise be marketable credits to the state implementation plan or the owner or operator as provided by § 386.056; and
(2) the reductions are permanently retired.

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