When Exxon Mobil Corp. endorsed a carbon tax proposal initiated by former Secretaries of State James Baker and George Shultz, some observers foresaw a future with dramatically fewer regulations.

Not so, says W. Thaddeus “Thad” Miller, the executive vice president and chief legal officer of Houston-based electrical provider Calpine Corp., who also endorses the Baker proposal. He expects a much less dramatic shift in the regulatory environment if the carbon tax becomes reality.

“This is not as large a change on the regulatory front as people may think,” Miller says. “Although the proposal includes a rollback of future regulations on carbon emissions, there are a host of environmental regulations regarding other emissions that have been successfully implemented and would remain in place. I would expect regulatory lawyers who deal with environmental regulations will continue to be involved [with] advising and litigation on those; it's just that the potentially fertile ground of CO2 [carbon dioxide] emissions regulation and litigation will not materialize.”