Emission Credit Strategies for Nonattainment Areas

Baker Botts is at the forefront of innovative emission credit strategies to meet Nonattainment New Source Review offset requirements.  For example, we obtained the first agency-approved use in Texas of emission credits from one nonattainment area to satisfy offset requirements in a different nonattainment area.  We also obtained the first agency-approved use in Texas of NOx emission credits as a substitute for offset requirements relating to VOC emissions.  

Our practice involves frequent dialogue and close relationships with air permitting authorities, which has given us insights and advocacy opportunities to support greater flexibility in nonattainment offsetting. For example, we were heavily involved in the Texas Commission on Environmental Quality’s 2013 release of guidance on the use of cap-and-trade program allowances as nonattainment offsets.

In addition to supporting our clients’ use of innovative emission credit strategies, we also advise clients in connection with emission credit transactions. This aspect of our practice includes negotiating contract terms and pre-transaction due diligence of the underlying emission credits.

Our clients in this area are involved in industries such as refining, chemical manufacturing and power generation.