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Thursday, September 29, 2011
BGC EBS Breaking News: California Supreme Court Upholds AB 32 Cap and Trade Program -
Tuesday, September 13, 2011
BGC EBS California Emission Markets Regulatory Update -
Tuesday, September 13, 2011
BGC EBS California Emission Markets Regulatory Update -
te the risk of activity-shifting and/or market-shifting leakage;” [95972(a)(4)] • Requirements for Offset Projects Using ARB Compliance Offset Protocol: Clarification that early action offset projects transitioning to Compliance Offset Protocols may have an earlier offset project commencement date: “Early Action Offset Project Commencement Date. Offset projects that transition to Compliance Offset Protocols pursuant to section 95990(k) may have an Offset Project Commencement date before December 31, 2006.” [95973(a)(2)] • Deadlines for CARB approval of an Offset Project: Within 45 calendar days, CARB will determine whether the GHG emission reductions and GHG removal enhancements meet the requirements of section 95981(a), the information submitted in sections 95981(b) and (c) is complete, and the Positive Offset or Qualified Positive Offset Verification Statement meets the requirements of 95977, 95977.1, and 95977.2. • Process for Issuance of ARB Offset Credits: After CARB determines whether an offset project is administratively complete, the agency will have 15 days after its determination to issue CARB offset credits. Also, CARB shortened the time period from 30 to 15 days for the agency to notify project operators that the information they submitted was incomplete and request additional information. This change was made in response to stakeholder comments that the process for the ultimate issuance of ARB offset credits was too lengthy. [95981.1(d)] • Invalidation of ARB Offset Credits. o Timeframe: Clarifies the timeframes in which ARB may invalidate ARB offset credits. o Overstatement of Reductions: New description of the process by which CARB would determine if there was an overstatement in the number of GHG emission reductions and GHG removal enhancements that were credited with ARB offset credits. This includes a notification process and identifies which information CARB will look at to determine if there was an overstatement. [95985(c)(1)(A), through (c)(1)(C)(3)] o ODS Invalidation: The statute of limitations was changed from five years to three years for ozone depleting substances projects, because ARB feels that three years is sufficient time for any new information regarding an Offset Project Data Report for that project type to be discovered. [95985(b)(1)(A)]. o Forestry, Ag Methane and Urban Forestry Invalidation: These new provisions clarify that offset projects developed under the other three Compliance Offset Protocols may also qualify for a three year statute of limitation if a different verification body verifies a subsequent Offset Project Data Report from that offset project within three years. [95985(b)(1)(B)] o Forestry Invalidation and Reversals: New section was added to clarify that reversals for forest offset projects do not trigger an invalidation and reversals will be handled according to section 95983. This provision was added to alleviate stakeholder concerns that any reversal would trigger invalidation and that the forest owner would have to double compensate for those tonnes. [95985(c)(4)(B)] o Blocking Transfers: New language was added to immediately block any transfers of CARB offset credits after CARB makes an initial determination to investigate the applicable Offset Project Data Report. This provision will prevent the holders of potentially invalidated CARB offset credits from transferring them (and any associated replacement liability) to other unwitting parties. [95985(d)] o Partial Offset Invalidation: If ARB invalidates only a portion of the ARB offset credits from an Offset Project Data Report, ARB must determine how many and which ARB offset credits to remove from each parties Compliance and/or Holding Accounts. The formula in section 95985(g)(1)(A)(1.) will be used to determine how many ARB offset credits will be removed from the accounts of the affected parties, and section 95985(g)(1)(A)(2.) will be used to determine which ARB offset credits will be removed from the accounts of the affected parties. [95985(g)(1)(A) and (g)(1)(B)]. o Replacement of Invalidated Offsets: New requirement that the parties identified in section 95985(e)(2) must replace the ARB offset credits within six months of being notified by CARB. They must replace CARB offset credits in the amount calculated pursuant to section 95985(h)(1)(A). [95985(h)(1)(B)] o Failure to Replace Invalidated Offsets: New requirement that if the parties identified in section 95985(e)(2) do not replace the ARB offset credits within six months, each unplaced ARB offset credit is a violation. [95985(h)(1)(C)] o Offset Project Operator Liability: New requirement that the Offset Project Operator replace the ARB offset credits in the event that the parties identified in section 95985(e)(2) are no longer in business. This will ensure that the environmental integrity of the program is preserved and the cap is made whole. [95985(h)(1)(C)(1.) through (h)(1)(C)(3.)] • Early Action Offset Credits o Change in Latest Registration Date: The latest date that early action offset projects can register or list their projects with an Early Action Offset Program was changed from January 1, 2013 to January 1, 2014. This modification will allow ARB time to approve Offset Project Registries and ARB accredited verifiers to process and verify offset projects developed under Compliance Offset Protocols. [95990(c)(3)] o Protocol Version: Only the most current version of any protocol may be used at the time the project is initiated. This ensures that an early action offset project is not using an out-of-date protocol. [95990(c)(5)] o Program Location: An Early Action Offset Program must have a primary business in the United States to ensure a physical presence in the geographic region where CARB will issue early action offset credits. This will better facilitate any in-person audits CARB may wish to pursue at the Early Action Offset Program offices. [95990(a)(3)(D)] • Modifications to Compliance Offset Protocol Livestock Projects. o This protocol was modified to allow identical engines to share a biogas flow meter and any mention of thermocouplers for flares have been expanded to include engines. Both of these changes were in response to stakeholder comments. o The requirements for adjustments to metered biogas flow data in Section 6.1 have been replaced with a more conservative method to ensure a rigorous accounting met
Tuesday, September 13, 2011
BGC EBS California Emission Markets Regulatory Update -
odology within the protocol. • Modifications to Compliance Offset Protocol Ozone Depleting Substances Projects. o CFC-13 was added as an eligible gas and incorporated into the methodology based on information from US EPA and others. The incorporation required changes throughout the protocol including addition of 10-year cumulative emission rates, carbon ratios, and substitute emissions. o Modified to include the updated leakage rates in Table 5.4. The leakage rates were updated to reflect the impacts of ARB’s Refrigerant Management Program. This change had already been made to the baseline calculations, but was inadvertently left out of Table 5.4. • Modification to Compliance Offset Protocol U.S. Forest Projects. o Modified to make the definition for “Forest Owner” consistent with the cap-and-trade regulation which was modified in response to stakeholder comments. o The eligibility of offset projects was also modified to allow projects that were part of other voluntary programs to register under the Compliance Offset Protocol if the offset project owners had met legal requirements before transitioning from the other voluntary programs. Stakeholders were concerned that only projects previously registered at the Climate Action Reserve would be allowed to transition to the Compliance Offset Protocol. o Clarifications were made to the language related to projects on tribal lands. o Forestry Offset Reversals:  Clarification that ARB offset credits must only be replaced if there have been CARB offset credits issued to the offset project. Also, in response to stakeholder comments, staff changed the timing for replacing the reversed tonnes from 90 days to six months. CARB believes this will alleviate concerns that entities will not have enough time to find sufficient compliance instruments. [95983(c)(3) and (c)(4)]  New section 95983(d)(1) was added to clarify that ARB will compensate for reversals out of the Forest Buffer Account in the case of project termination due to unintentional reversal. This will ensure that permanence obligations are fully upheld for all GHG reductions or removal enhancements achieved by the offset project. 6. Market Mechanics • Schedule for Allocation of Allowances: Allocation to electrical distribution utilities and industrial covered entities will now occur in November of the year prior to the allowance budget year being distributed. A special allocation of 2013 vintages to electrical distribution utilities is now planned in July 2012 to allow for consignment auctions by utilities of one-third (one-sixth at each of two auctions) of 2013 allowances in 2012. • Accounts for Registered Entities: Clarification that each registered entity will have no more than one holding account, compliance account, limited use holding account, or exchange clearing holding account. The existing requirement was vague, stating only that each registered entity could gain approval for a “set” of accounts. [95831(a)(1)] • Timely Surrender of Compliance Instruments: Clarification which vintage of compliance instruments is valid to meet a compliance obligation. The change explains that a compliance instrument from a vintage within or before the year for which a compliance obligation is calculated may be used to satisfy an annual obligation for that year. A compliance instrument issued for the last year of a compliance period, or from a previous vintage, may be used for a triennial obligation for that compliance period. The change is needed because stakeholders commented that the original text would have required entities to match vintages of allowances to emissions in a compliance period year by year rather than for the total over the compliance period. [95856(b)(2)] • Untimely Surrender of Compliance Instruments: Entities are allowed to use offset credits to meet up to one fourth of the untimely surrender obligation as long as the offset usage does not violate the quantitative offset usage limits for the applicable compliance period. This modification was made in response to stakeholder comments and to clarify staff’s original intent that the quantitative offset usage limit applies to the portion of offsets to meet the compliance obligation. No offsets are allowed to satisfy three-quarters of the untimely surrender obligation since these allowances return to the auction account. [95857(b)] • Allocation for Industry Assistance: The choice of allocation methodology is based on classification of “activities” rather than “industries” in Tables 8-1 and 9-1. This change clarifies that a facility within a given industry may conduct multiple activities and the operator of a facility may receive allocation under both the product-based and energy-based allocation methodologies (based on the assigned allocation approach for each separate activity). The assignment of allocation method was also updated to allow for the new petroleum refining approach created in 95891(d). [95891(a)] o The energy-based allocation calculation methodology specified in section 95891(c) was modified based on stakeholder comment. The text was updated to clarify that the CHP exclusion in the “steam consumed” term applies only to steam produced from CHP units on site. Allocations for on-site CHP unit activities are captured in the FConsumed term. Steam imported from an off-site CHP unit is included in the SConsumed term. The “electricity sold” term was altered slightly to clarify that this term captures all power exported or sold from a facility. Auction of Allowances • Auction Process: Clarification of the process used for the two auctions which will be conducted each quarter: o Budget Years: The auction of allowances from the current budget year may also include allowances from earlier budget years. This provision is needed to accommodate the two other changes. First, allowances remaining unsold at auction will be returned to auction for two consecutive auctions instead of being sent to the Reserve. Second, allowances used to fulfill an untimely surrender obligation will go to the auction holding account, not the Reserve. Both of these changes may result in older vintage allowances being auctioned. [95910(c)(1)] o Consigned Allowances: Allowances consigned to auction pursuant to 95870(f) will also be sold at the current vintage auction. New section 95910(c)(1)(C) clarifies that allowances remaining unsold at previous auctions may also be returned to the current vintag
Tuesday, September 13, 2011
BGC EBS California Emission Markets Regulatory Update -
auction pursuant to section 95911(b)(4). [95910(c)(1)(B)] o Future Vintages: One quarter of the future vintage allowances designated for auction in each budget year will be offered at each auction. [95910(c)(2)(B)] o Future Vintages and Unsold Allowances: Allowances remaining unsold at previous future vintage auctions may also be returned to the future vintage auction pursuant to section 95911(b)(4). [95910(c)(2)(C)] • Unsold Allowances: Allowances remaining unsold when an auction settlement price equals the auction reserve price will be returned to the auction holding account for two consecutive auctions rather than go to the Reserve. Staff agreed to make the changes after stakeholders commented that having unsold allowances placed in the Reserve would unnecessarily reduce the supply of allowances to the market and in cases when a market is initially over-allocated may result in the market being artificially short in later years. [95831(b)(4), 95911(b)(4)] • Purchase Limit: Section was modified to raise the purchase limit for the first compliance period from 10 percent to 15 percent for industrial entities. Staff determined the change was needed after reviewing new data on emissions and in response to comments, the entry of new facilities, and the effect of the allocation of allowances by ARB on net compliance needs. [95911(c)(4)(A)] Trading • Transactions vs. Transfer Requests: o Transfer Request: The term “transaction” was replaced with the term “transfer request.” CARB made the change to clear up confusion between the act of transferring control of a compliance instrument on the tracking system and the underlying agreement in the secondary market between entities which would result in a transfer. This change was made to sections 95920(b)(3) and (4). [95920(b)] o Transaction: The term “transaction” means an understanding among registered entities to transfer the control of an allowance from one entity to another, either immediately or at a later date. The “transfer” of a compliance instrument means the removal of the serial number of a compliance instrument from one account and placement into another account. In the California cap and trade system, a transfer will be effected through a “Transfer Request” submitted by an authorized account representative or an alternate authorized account representative to the accounts administrator in order to register a transfer of allowances between accounts into the tracking system. [95920(b)] o Deficient Transfer Requests: Clarification that the accounts administrator will not accept deficient transfer requests. Some stakeholders expressed concern that the provision would require the automatic unwinding of the transaction which resulted in the transfer request. [95920(f)(4)] • Conduct of Trades: All requests for transfer of compliance instruments between accounts on the tracking system must meet the requirements of this rule before the accounts administrator will register them into the tracking system. CARB believes the changes are needed to emphasize the distinction between the transfer request and the underlying transaction that results in the request. New section 95921(b) outlines the procedure to be followed when the accounts administrator finds a deficiency in the transfer request submitted pursuant to 95921(a). [95921(a)(1) and (2)] • Holding Limit for Current Compliance: Clarification of how the holding limit will apply to allowances which can be used for compliance in the current compliance year separately from those that cannot be used for compliance. Section 95920(c)(1) was modified to clarify a reference to section 95856(b), which defines the vintages that can be used for current compliance. [95920(c)] • Holding Limits for Allowances Only: was modified to clarify that the holding limit is applied only to allowances not all compliance instruments. In addition, the holding limit applies jointly to members of direct and indirect corporate associations, not to members of a disclosable corporate association. [95920(f)(1)] • Previous Years Allowances: In any year, allowances from the previous years may be used for compliance. Allowances purchased at the advance auction may be usable during the current compliance year, not the current compliance period. Also, the ability to use allowances changes with each year not each compliance period. That is, vintage 2015 allowances can be used for compliance surrender in 2016, but not vintage 2016 and 2017 allowances that had been purchased at advance auction. [95920(c)(1)(A-C)]. • Allowance Price Containment Reserve o Sale Price: The price charged for an allowance is the price of the tier from which it was purchased, not the bid actually submitted. CARB believes the change is necessary because the process allows bids to a higher tier to be fulfilled with allowances from a lower-priced tier if they are available. Staff agrees with stakeholders who commented that the procedure did not specify whether the bid or the tier price is to be used. [95913(f)(3)(B)] o Definition changes: the definition of the term “Proceeds” was modified to reflect that proceeds will also result from sales from the Allowance Price Containment Reserve. 7. Exclusion of Geologic Sequestration and Enhanced Oil Recovery • Carbon dioxide used in carbon capture and geologic sequestration (CCGS) and carbon dioxide-enhanced oil recovery (CO2-EOR) is excluded from the Cap-and-Trade Regulation in a different way from how the federal GHG reporting regulation excludes it. Whereas the federal reporting regulation contains separate reporting categories for carbon dioxide suppliers, CCGS, and CO2-EOR, ARB does not yet include these reporting categories within our Mandatory Reporting Regulation (MRR), though we signal in section 95852(g) that these activities and uses will be excluded from a compliance obligation through a to-be-developed quantification methodology. [95802] Deadline for Comments Given the state’s October 28, 2011 deadline to finalize the cap and trade regulation, CARB is moving directly on formal 15-day comment changes instead of releasing a “discussion draft” prior to formal comment. Comments are due to CARB on September 27th, 2011. While this set of rule changes is expected to be the last before the CARB votes on the final rule at its October 20-21 meeting, additional rulemaking is expected next year for linking California with other cap and trade programs. In parallel, the California Public Utilities Commission (CPUC) has established a schedule for rulemaking tha
Tuesday, September 13, 2011
BGC EBS California Emission Markets Regulatory Update -
regulates utilities on the use of revenue generated from the auctioning of their allowances. The CPUC has begun internal development of the rules and is planning to finalize them before CARB’s first allowance auction in August 2012. California Carbon Market Update California Carbon Markets continue to be driven by the formulation of rules and regulations under AB32 with allowance contracts climbing over the last week. Demand continues for projects under the Climate Action Reserve ODS, Forestry, and Ag Methane project protocols; with ODS and Ag CRTs are being offered in the $9.50 - $10.50 range. Due to continued uncertainty around the conversion of V2.1 forestry CRTs into compliant ARB Offsets, they continue to be offered at an approximate 20% discount to the ODS and Ag CRT projects. Various allowance contracts for use in California’s first compliance year (2013) have been trading between $16 and $20/metric tonne. For information on Carbon prices: please contact your BGC EBS broker at 646.346.6899 or 415.296.9359 San Joaquin ERC Rule Update SJVAPCD continues work on amendments to rule 2301, Emission Reduction Credit Banking for Greenhouse Gasses (GHGs). SJVAPCD is proposing: • Approval of banking of offset projects types that have been approved by CARB and other project types as the SJVAPCD determines. Offset credit will be given to projects as far back as 2005. • GHG reductions must occur in the San Joaquin Valley and be real, surplus, permanent, quantifiable, and enforceable. The public comment period for SJVAPCD’s draft EIR will close on September 26, 2011. For the rule itself, SJVAPCD will receive public comments until October 10, 2011. The SJVAPCD Board will hold a public hearing on the amendments on December 15, 2011. For information on SJVAPCD Carbon prices: please contact your BGC EBS broker at 646.346.6899 or 415.296.9359 US EPA Proposes Approval of 8-hour Ozone Standard for SCAQMD and SJVAPCD On September 8, the US EPA proposed to approve the 8-hour ozone air quality State Implementation Plans (SIP) for the San Joaquin Valley and South Coast Air Quality Management Districts. EPA is proposing to approve the 8-hour ozone air quality plans for 0.08 parts per million of ozone as measured in 8-hour increments, which include their attainment demonstrations, enforceable commitments and reductions from new technologies. Under the SIPs, both air districts will use statewide measures such as the in-use truck and off-road diesel rules, and smog-check improvements will further reduce air pollution. In the San Joaquin Valley, district rules will reduce emissions from boilers, open burning, composting, and livestock operations. In the South Coast, district rules are targeting emissions from boilers, solvents, and lubricants. In the face of the Obama Administration’s recent abandonment of a new ozone standard, regulated sources have been wondering if EPA would reinstate the 2008 ozone standard or allow it to lapse and use the earlier 1997 standard. EPA’s action in California indicates that it will rely on the 2008 standard until 2013 when it’s required to promulgate a new ozone standard. EPA is providing a 30-day public comment period on its 8-hour ozone proposed actions. For information on SJVAPCD ERC prices: please contact your BGC EBS broker at 646.346.6899 or 415.296.9359 South Coast Air Quality Management District Rule 1315: Judge Signals Support for Resubmitted EIR At a hearing late last week, Judge Jones indicated verbally that she was satisfied with the re-submittal of the EIR by the SCAQMD on Rule 1315 - ERC Tracking. Judge Jones indicated she’ll issue her formal ruling soon. Her comments came in response to a challenge by litigants saying the revised EIR was inadequate. In 2008, Judge Jones' ruling on the insufficiency of the Air District’s EIR for Rule 1315 caused a permitting moratorium. As a result, the California Legislature approved SB 827 in 2009 ending the moratorium and allowing SCAQMD to continue to issue permits. SCAQMD responded to the concerns of Judge Jones by re-writing the EIR and re-adopting Rule 1315. EPA has yet to approve the re-adopted rule. With EPA’s recent draft approval of the District’s SIP, supporters of the revised rule are hopeful. Timing is critical since SB 827 sunsets at the end of April 2012. For information on SCAQMD ERC and RECLAIM prices: please contact your BGC EBS broker at 646.346.6899 or 415.296.9359
Monday, September 12, 2011
TODAY: BGC Annual Charity Day! -
TODAY: BGC Annual Charity Day! As part of BGC’s continued legacy and commitment to raise money for charities and commemorate the 658 employees who lost their lives in the 9/11 attacks on the World Trade Center ten years ago, we will be holding our Seventh Annual Charity Day TODAY. Last year we raised in excess of $10 million globally, and to date BGC’s Charity Day has raised over $43 million globally. The charities we are supporting this year include: · Alliance for Lupus Research · AmeriCares · Boomer Esiason Foundation · Building Homes for Heroes · Felix Organization · Garden of Dreams · Happy Hearts · Harlem RBI · Intrepid Sea, Air and Space · Make-a-Wish Foundation · Services for the Underserved · Solving Kids Cancer · St. Christopher's · Tony Alt Foundation · USTA Serves · Wheelchair Sports Federation · Worldwide Orphans Foundation · Wounded Warrior Project · Youth Consultation Services More information on them can be found here: http://www.bgcpartners.com/about-us/charity/charity_day_2011/ In New York, we will be joined by a number of celebrity guests. Anticipated celebrity guests in New York include: Hilary Duff, Ben Stiller, Jon Voight, Russell Simmons, and Petra Nemcova. Sports icons include: Allan Houston, Carmelo Anthony, Henrik Lundqvist, Ike Davis, John McEnroe, Jared Jeffries, Mark Sanchez and many others. They will be on the phones alongside our licensed brokers making trades with you, our customers. We hope that this will encourage you to trade with us today and help raise money for these great causes. Flagship talk sport radio, WFAN, will be broadcasting live from our broking floor throughout the morning, starting with Boomer Esiason's and Craig Carton's show at 6am. Tune in to 660AM to listen in. In addition, Fox Business will be broadcasting live from our offices all day and the trade you see on television could very well be yours. Please reach out to your BGC Broker at 646.346.6899. With your support we look forward to this being another highly successful day in support of these worthy charitable organizations. Best wishes, BGC Environmental Brokerage Services
Wednesday, September 7, 2011
BGC’s Annual Charity Day, Monday, September 12, 2011 -
Friday, September 2, 2011
BGC EBS Breaking News UPDATED: President Obama Withdraws Proposed Change to Ozone Standards -
Friday, September 2, 2011
BGC EBS Breaking News: President Obama Withdraws Proposed Change to Ozone Standards -
Friday, August 26, 2011
BGC Environmental Brokerage Services Update: CARB Plans to Release 2nd 15 Day Changes to Cap and Trade Rule Sept 8 -
Wednesday, August 24, 2011
BGC Environmental Brokerage Services Breaking News: CARB Approves Revised Scoping Plan Paving Way for Cap and Trade Rule -
GC Environmental Brokerage Services Breaking News: CARB Approves Revised Scoping Plan Paving Way for Cap and Trade Rule Minutes ago, the California Air Resources Board (CARB) Board of Directors unanimously approved the Final supplement to the AB 32 Scoping Plan Functional Equivalent Document. This important procedural action allows the state agency to stay on track to finalize its cap and trade rule in October for launch in 2012 with compliance starting in 2013. Following the vote, CARB Executive Officer James Goldstene said that CARB staff will likely release a second set of draft 15-day rule changes to the Cap and Trade rule next week. BGC Environmental Brokerage Services will continue to keep you updated on developments and details on this fast-moving regulation. For more details, please contact your BGC Environmental Brokerage Services broker or strategy advisor at the telephone numbers below: BGC Environmental Brokerage Services: New York Office: 646.346.6899 San Francisco Office: 415.296.9359
Wednesday, August 24, 2011
BGC Environmental Brokerage Services Breaking News: CARB Approves Revised Scoping Plan Paving Way for Cap and Trade Rule -
Minutes ago, the California Air Resources Board (CARB) Board of Directors unanimously approved the Final supplement to the AB 32 Scoping Plan Functional Equivalent Document.  This important procedural action allows the state agency to stay on track to finalize its cap and trade rule in October for launch in 2012 with compliance starting in 2013
Wednesday, August 24, 2011
BGC Environmental Brokerage Services Breaking News: California Outlines Next Steps on Cap and Trade Rule -
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Wednesday, August 24, 2011
BGC Environmental Brokerage Services Breaking News: California Outlines Next Steps on Cap and Trade Rule -
At today’s Meeting of the California Air Resources Board currently underway, CARB staff revealed new information on their plans for offsets, allowance allocations, auctions and market oversight. At the same time, CARB staff reaffirmed other aspects of the program that will remain unchanged, including the implementation schedule.
Friday, August 12, 2011
CantorCO2e Update: Our Comments on CARB’s Proposed Changes to its Cap and Trade Regulation -
As the California Air Resources Board (CARB) closes its 15-Day Comment Period on proposed rule changes to its landmark cap and trade regulation
Thursday, August 11, 2011
CantorCO2e Update: Our Comments on CARB’s Proposed Changes to its Cap and Trade Regulation -
CantorCO2e Update: Our Comments on CARB’s Proposed Changes to its Cap and Trade Regulation As the California Air Resources Board (CARB) closes its 15-Day Comment Period on proposed rule changes to its landmark cap and trade regulation, CantorCO2e wanted to share its recommendations for improving the efficiency and effectiveness of the program. In summary, we recommend to CARB: 1.  Assign offset liability to those that are best able to manage it – the project developer and CARB 2.  Increase the 8% offset limit 3.  Allow for the forward carry of unused offset capacity 4.  Issue multi-year allocations 5.  Allow for the use of shutdowns/curtailment to generate credits To view our recommendations to CARB, please click the following link: http://www.arb.ca.gov/lists/capandtrade10/1394-cantorco2e_15_day_rule_change_comments_august_10_2011.pdf CARB is expected to issue a second set of proposed rule changes in the next few weeks to as it races to finalize its cap and trade rule in October. We will continue keep you updated on developments as they happen. We Have Some Great News to Share with You! CantorCO2e's North American environmental brokerage business has been acquired by BGC Capital Markets, L.P. The business will now operate as BGC Environmental Brokerage Services. As we transition to BGC Environmental Brokerage Services, we look forward to continuing to service your needs as in the past. Our website is currently undergoing changes and will be updated soon to reflect our new branding. For more information on BGC, please click on the following link: http://www.bgcpartners.com/products-and-services/other-asset/commodities/ To read the press release, please click on the following link: http://www.bgcpartners.com/news-centre/press-releases/press-releases-02/127335043.html    
Monday, July 25, 2011
California Releases 15-Day Rule Changes for Cap and Trade Program -
This afternoon CARB released its formal, “15-Day Rulemaking Package” for a first round of proposed changes to its Cap and Trade Rule. CARB will accept public comments between today and August 9th, 2011.

Today’s rule package contains a few “substantive” changes from the discussion draft of the regulation that CARB released on July 7, 2011. CantorCO2e provides a quick identification of the changes in the proposed rule from that of two weeks ago.
Wednesday, July 20, 2011
CARB Discusses Changes to California Cap and Trade Rule -
On July 15 the California Air Resources Board (CARB) held an all day workshop on proposed changes to its cap and trade regulation. The agency heard a wide range of concerns about the changes and the cap and trade program itself as it prepares to formally release a draft rule for a rapid 15-day public comment period. CantorCO2e provides summarizes the changes and concerns discussed at the workshop.
Tuesday, July 19, 2011
CantorCO2e Update: CARB Discusses Changes to California Cap and Trade Rule -
CantorCO2e Update: CARB Discusses Changes to California Cap and Trade Rule On July 15 the California Air Resources Board (CARB) held an all day workshop on proposed changes to its cap and trade program. The agency heard a wide range of concerns about the changes and the cap and trade program itself. CantorCO2e provides highlights from the public workshop. Friday’s workshop was designed to provide opportunity for public questions and discussion prior to release of formal “15-day” regulatory language in the next two weeks. The workshop focused on changes in the draft cap and trade rule for: Market Operations, Oversight and Timing Allowance Allocation for Industry and Electricity Sectors Offsets and Offset Protocols Mandatory Reporting requirements While CARB is proposing to postpone compliance for 2012, the agency is not altering annual reduction targets, effectively steepening the emissions reduction slope for 2013. Major concerns expressed during and after CARB’s Friday workshop included the following... [http://www.cantorco2e.com/MarketData/news.asp?id=36637]
Tuesday, July 19, 2011
CARB Discusses Changes to California Cap and Trade Rule -
On July 15 the California Air Resources Board (CARB) held an all day workshop on proposed changes to its cap and trade regulation. The agency heard a wide range of concerns about the changes and the cap and trade program itself as it prepares to formally release a draft rule for a rapid 15-day public comment period. CantorCO2e provides summarizes the changes and concerns discussed at the workshop.
Friday, July 8, 2011
California Releases 15-Day Proposed Rule Changes for Cap & Trade Regulation -
California Releases 15-Day Proposed Rule Changes for Cap & Trade Regulation   Late last night, CARB released 274 pages of proposed rule changes for its pending cap and trade regulation. In conjunction with proposed rule changes, CARB also released specifics on allocation of carbon allowances to electrical distribution utilities and more detail on allowance allocation benchmarking for industrial sectors. In this massive package CARB has made extensive and significant changes to its cap and trade regulations. The changes touch every facility covered by AB32. Some will be pleased. Others will be disappointed. There are changes that affect every business. Others are SIC code specific. And some changes narrowly affect the business prospects of single facilities. We believe that businesses should take immediate action to: 1. Fully evaluate the impact of this rule on their operations. 2. Protect the favorable treatment that they have been afforded. 3. Advocate amendments to rectify negative consequences. CantorCO2e suggests that given the import and rapid schedule (workshop on July 15 and Board meeting August 24) this should be a top priority for your organization. Please contact one of our specialists to learn more about the rule package, how it may affect your operations, and what you should do now to protect your interests. San Francisco abedwell@cantorco2e.com 415-869-2035 800-228-2955 Los Angeles cgrandstaff@cantorco2e.com 949-240-4602 New York akruger@cantorco2e.com 212-829-5460 www.cantorco2e.com www.emissionstrading.com For our detailed summary of CARB’s rule changes, please click here.
Friday, July 8, 2011
California Releases 15-Day Proposed Rule Changes for Cap & Trade Regulation -

 Late last night, CARB released 274 pages of proposed rule changes for its pending cap and trade regulation. In conjunction with proposed rule changes, CARB also released specifics on allocation of carbon allowances to electrical distribution utilities and more detail on allowance allocation benchmarking for industrial sectors.


In this massive package CARB has made extensive and significant changes to its cap and trade regulations. The changes touch every facility covered by AB32. Some will be pleased. Others will be disappointed. There are changes that affect every business. Others are SIC code specific. And some changes narrowly affect the business prospects of single facilities.

We believe that businesses should take immediate action to:
1. Fully evaluate the impact of this rule on their operations.
2. Protect the favorable treatment that they have been afforded.
3. Advocate amendments to rectify negative consequences.

CantorCO2e suggests that given the import and rapid schedule (workshop on July 15 and Board meeting August 24) this should be a top priority for your organization. Please contact one of our specialists to learn more about the rule package, how it may affect your operations, and what you should do now to protect your interests.

San Francisco
abedwell@cantorco2e.com
415-869-2035
800-228-2955

Los Angeles
cgrandstaff@cantorco2e.com
949-240-4602

New York
akruger@cantorco2e.com
212-829-5460

www.cantorco2e.com
www.emissionstrading.com

For our detailed summary of CARB’s rule changes, please click here.
Thursday, July 7, 2011
An Overview of EPA’s New Cross-State Air Pollution Rule -
An Overview of EPA’s New Cross-State Air Pollution Rule Today the U.S. EPA released final rules to further reduce NOx, SO2, and fine particulate emissions from power plants in 27 Eastern states. The Cross-State Air Pollution Rule (CSAPR) was originally called the Clean Air Transport Rule (CATR) when it was proposed as a draft rule a year ago. The rule was signed by EPA Administrator Lisa Jackson yesterday and released to the public today, July 7. CantorCO2e summarizes the 1,300-page new rule, including: reduction targets and timetables trading provisions allocation methodology state emission budgets, and impact on emission sources. Click here for CantorCO2e’s overview of CSAPR [http://www.cantorco2e.com/MarketData/news.asp?id=36622]
Thursday, July 7, 2011
An Overview of EPA’s New Cross-State Air Pollution Rule -
U.S. EPA released final rules to further reduce NOx, SO2, and fine particulate emissions from power plants in 27 Eastern states. The Cross-State Air Pollution Rule (CSAPR) was originally called the Clean Air Transport Rule (CATR) when it was proposed as a draft rule a year ago. The rule was signed by EPA Administrator Lisa Jackson yesterday and released to the public today, July 7. CantorCO2e summarizes the new rule and its impact on emission sources.
Thursday, June 30, 2011
Ohio PM2.5, SO2, and NOx ERC Auction Results -
Good Afternoon, The Ohio PM2.5, SO2, and NOx ERC auction that was run by CantorCO2e LP, on behalf of Biomass Group LLC is now closed.  The result of the auction is that the reserve price was not met.  All credits are still available for purchase.  Please contact CantorCO2e to discuss the potential purchase of these credits. Thank you, CantorCO2e
Thursday, June 30, 2011
UPDATE: CARB's Cap and Trade Program in 2012 -

Following yesterday's public statement by CARB Chairman Mary Nichols, CantorCO2e has clarified her comments with senior executives at CARB. Through those discussions with CARB staff, we offer the following take aways from yesterday’s statement by Chairman Nichols:

  • The most significant change is excusing sources from the need to secure and retire allowances or offsets to account for their 2012 emissions
  • No 2012 carbon allowances will be issued
  • Facilities will have the same emissions reduction obligation as before by 2014
  • CARB has yet to determine the number of auctions that will be held in 2012
  • 2012 auctions will auction future vintage allowances
  • CARB will issue a statement next week (perhaps Thursday) that clarifies and answers many of these items…and addresses others as well

Wednesday, June 29, 2011
UPDATE: CARB Compresses First Cap and Trade Compliance Schedule from 3 Years to 2 Years -
Following testimony this evening by CARB Chairwoman Mary Nichols, CantorCO2e attempted to clarify 2012 compliance requirements that were not clear in her  remarks. CantorCO2e subsequently confirmed this evening with CARB staff that the state cap and trade program’s first 3 year compliance period, starting in 2012, will hold facilities accountable in 2013 and 2014 for the three year declining cap period..  Clarifying Nichol’s testimony for CantorCO2e, CARB  staff indicated that the program will start in 2012 with allowance allocations expected to move forward in that year on a quarterly basis.  However, firms will need to make the same reductions by 2013 and 2014 that would have had to make 2012, 2013, and 2014 in order to meet the programs reduction targets. The only structural difference is that firms will be given a temporary “breather” for their 2012 compliance obligations.  Facilities that pass on their 2012 compliance obligations will be required to comply with a compressed time period to make the reductions by the end of the first period (2014). In other words, the reductions forced by the declining cap that were originally scheduled to occur over a three year period will now occur over a two year period. 

In an emailed statement issued by CARB late tonight to clarify Nichol’s testimony, CARB spokes person Stanley Young stated: “ ARB will be initiating all elements of the cap and trade program throughout 2012, including establishing the market infrastructure, developing market oversight mechanisms,conducting trainings, holding auctions and developing linkages with partners in the Western Climate Initiative. This will ensure that we have tested the program prior to moving into the first year of compliance.  The only change is shifting the first compliance obligation to 2013.”


 

Friday, June 24, 2011
Breaking News: Court Allows California to to Move Forward on Cap & Trade -
Late tonight, the California Court of Appeals denied an appeal by small group of environmentalists to stop or "stay" CARB's cap and trade rulemaking while the Court of Appeals considers CARB's appeal of a lower court's decision that temporarily blocked CARB. Since it takes an average of 15 months for the Courts of Appeal to adjudicate an appeal, tonight’s decision essentially allows CARB to legally move forward unhindered with implementation of cap and trade in 2012.
Wednesday, June 15, 2011
Ohio PM2.5, SO2, and NOx ERC Auction CORRECTION: -
Good Day, Ohio PM2.5, SO2 and NOx ERC Auction CORRECTION: Please note that the Notice of Intent to Auction document which was posted yesterday contained an error switching the amounts of PM2.5 and SO2 ERCs being auctioned under the “Description of Auction,” on page 3.  However, the correct amounts are used in the rest of the document.    The proper quantities are as follows: 6.728 - Particulate Matter (PM2.5) 4,870.5 - Sulfur dioxide (SO2) The revised document is now available here. [http://www.cantorco2e.com/uploadDocs/Biomass_-_Notice_of_Intent_to_Auction.pdf] We apologize for any inconvenience. Thank You, CantorCO2e
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