As always Cantor Environmental Brokerage does not trade for its own account. All allowances purchased in the auction or traded in the open market are for our clients. It is Cantor Environmental Brokerage 's policy to keep the identity of our clients and their positions in the market in strict confidence.

New York State Considers a More Onerous SO2 and NOx Allowance Program Concerned with acid rain in the Adirondack region, the New York State Department of Environmental Conservation (NYDEC) has proposed a regulation that exceeds the requirements of the United States Environmental Protection Agency’s (USEPA) Acid Rain sulfur dioxide (SO2) allowance trading program. In particular, NYDEC would require large power generation facilities to reduce SO2 emissions to only half of the federally allowable levels, while also requiring that the existing nitrogen oxide (NOx) cap and trade program become extended to an annual program (the existing program is only during the summer months -- May 1 – September 30). Many environmental groups view this proposal favorably. In contrast, some environmental groups and economists view the proposal as detrimental because it discourages voluntary emissions decreases and increases local power costs. Such local power cost increases could result in cheaper cost power coming in from outside the state to replace NY-generated power. Furthermore, such cheaper cost power likely would be generated upwind of New York and could cause additional emissions to land in the Adirondack region. USEPA has noted such an effect in its review of the SO2 allowance program, and as a result, has suggested that regional programs are still the optimum method for reducing acid rain. Connecticut has preceded NY by enacting similar legislation requiring an annual NOx Budget program, as well as restrictions on SO2 emissions. Maryland Creates Restriction on NOx Budget Allowances Maryland is the most recent state to propose nitrogen oxide (NOx) Budget emissions trading regulations. A novel requirement of the Maryland rule is that its NOx Budget sources can only acquire requisite additional tons from sources within Maryland. However, Maryland sources are still free to trade their allowances outside the state’s borders. Thus, the state has restricted its maximum NOx emissions during the summer months.

Greenhouse Gas Reductions Portfolio: Cantor Environmental Brokerage sister company, assists companies to hedge their greenhouse gas exposure and potential limitations on their ability to emit greenhouse gases. CO2e.com experts provide risk managers with options to create a diverse portfolio of greenhouse gas reductions and offsets. Transactions include simple purchases and sales to structured options transactions. CO2e.com currently represents a diverse family of reductions including: (a) Renewable energy, energy efficiency and land-use projects expected to be eligible for credit under the Clean Development Mechanism in South and Central America, Asia, and Africa; (b) Renewable energy, energy efficiency, methane capture and recovery, and land-use projects in Australia, Canada, and Europe; and (c) Renewable energy, land-use, and methane capture and recovery projects in the United States. Prices vary but range from $1.00 - $2.00 per ton CO2 equivalent and increase up to $8.00 depending on vintage year, risk guarantees, volume, and contract structure. Options prices are according to structure. For details call Corinne Boone at 416-350-2177.