Sec. 386.055.  AVAILABILITY OF EMISSIONS REDUCTION CREDITS GENERALLY.  (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 Section 386.056, to offset any emissions reduction obligation;  and
(2)  may be used to demonstrate conformity with the state implementation plan.
(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 Section 386.056;  and
(2)  the reductions are permanently retired.
Added by Acts 2001, 77th Leg., ch. 967, Sec. 1(b), eff. Sept. 1, 2001.