Monthly Bulletin

<%@LANGUAGE="VBSCRIPT" CODEPAGE="1252"%> Monthly Bulletin

SO2 EA and NOx EA
July 2004

July 2004 SO2 EA and NOx EA MPI HEADLINES
SO2 EA MPI Up 31.68% - Vintage 2004 NOx EA MPI Up 6.79%

What are the Cantor Environmental Brokerage SO2 EA and NOx EA MPIs?

The Cantor Environmental Brokerage Market Price Indices (MPIs) are prices that reflect current market conditions for Clean Air Act Title IV SO2, and Section 126/NOx SIP Call emission allowances (EAs). The MPI is an average of the following three numbers (where available) (Note: fees and commissions are not.

RECENT TRANSACTION PRICE
Prices from the most recent transactions (sales, swaps, and options) either executed by Cantor Environmental Brokerage and/or reasonably believed by Cantor Environmental Brokerage to have occurred. Also note that the MPI does not include transactions that are reported as retirements or facility changes of ownership because such transactions may not be reflective of current market conditions.

Lowest Offer Price
Lowest price, reported to Cantor Environmental Brokerage, at which a seller is willing to sell.

Highest Bid Price
Highest price, reported to Cantor Environmental Brokerage, at which a buyer is willing to buy.

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For More Information Call (203) 662-3638
19 Old Kings Highway South, Darien, Connecticut 06820
Fax (203) 662-3643

www.emissionstrading.com

Note: All information contained here is obtained by Cantor Environmental Brokerage from sources believed to be accurate and reliable. However, because of the possibility of human and mechanical errors, as well as other factors, such information is provided "as is" without warranty of any kind and Cantor Environmental Brokerage, in particular, makes no representation or warranty as to the accuracy, timeliness, or completeness of this information. Under no circumstance shall Cantor Environmental Brokerage have any liability to any person or entity for (a) any loss or damage in whole or in part caused by, resulting from, or relating to any error (negligent or otherwise) or other circumstance involved in procuring, collecting, compiling interpreting, analyzing, editing, transcribing, transmitting, communicating, or delivering any such information, or (b) any direct, indirect, special, consequential, or incidental damages whatsoever even if Cantor Environmental Brokerage is advised in advance of the possibility of such damages, resulting from the use of, or inability to use, any such information. The data and information contained herein are, and must be construed solely as statements of opinions and not statements of fact or recommendations to purchase, sell, or hold SO2 or NOx EAs. All prices are merely indications of interest, do not represent firm bids and offers, and their terms are subject to change without notice. NOWARRANTY, EXPRESS OR IMPLIED, AS TO THE ACCURACY, TIMELINESS, COMPLETENESS, MERCHANTABILITY, OR FITNESS FOR ANY PARTICULAR PURPOSE OF ANY SUCH DATA OR INFORMATION OROTHER OPINION IS GIVEN OR MADE BY CANTOR ENVIRONMENTAL BROKERAGE IN ANY FORM OR MANNER.

For information on trading SCAQMD RTCs and/or ERCs, SJVAPCD and BAAQMD ERCs, Illinois ATUs, ERCs, DERs, or Sewerage Facilities Charge Credits please visit or call 1-800-228-2955 ext. 1, 2, 4, 6, 7, 8, or 9. For information on trading HGA NOx Allowances, call 800-228-2955 ext. 13 or 14. For information on trading NOx Section 126/NOx SIP Call Allowances, and SO2 Allowances call (203) 662-3638 or 800-228-2955 ext. 6 or 12. For information regarding Greenhouse Gas Credits visit , or call 800-228-2955 ext. 10.

            July 2004
           CANTOR ENVIRONMENTAL BROKERAGE
           SO2 EA Market Price Index

Cantor Environmental BROKERAGE Market Price Index: $529.10
(Call 203-662-3638 for description)

	Bids*	Offers*	Trades	MPI
Price/Volume	2,500 @ $500.00	2,500 @ $550.00	Not Listed
Weighted Average	$500.00	$550.00	$537.30	$529.10

Immediate Settlement

		Best Prices ($/Allowance)		Maximum Volume
Term	Vintage	Bid to Buy	Offer to Sell	Bid	Offered
1 Year Term	2004	$500.00	$550.00	2,500	2,500	Allowances
	2005	$498.05		2,500		Allowances
	2006	$496.75		2,500		Allowances
	2007	$488.75		2,500		Allowances
	2008	$466.25		2,500		Allowances

Swaps


Swap Rates against vintage 2004 allowances
	2005	2006	2007	2008
Offer	0.39%	0.65%	2.25%	6.75%
Ratios for base years other than 2004 are available upon request.

SO2 EA Market Beat

  The Cantor Environmental Brokerage SO2 EA
  Market Price Index increased by 31.68% this
  month from $401.82 in June 2004
to $529.10 in July 2004.

            July 2004
           CANTOR ENVIRONMENTAL BROKERAGE
           NOx EA Market Price Index

BEST BIDS TO BUY			BEST OFFERS
2004	50 tons	$2,450/ton	2004	50 tons	$2,600/ton
2005	50 tons	$3,600/ton	2005	50 tons	$3,800/ton
2006	50 tons	$3,050/ton	2006	50 tons	$3,200/ton
2007	50 tons	$2,750/ton	2007	50 tons	$2,850/ton

RECENT TRADE PRICES June 26, 2004 - July 25, 2004
	V04 for $2,325/ton	V04 for $2,475/ton	V06 for $3,050/ton	V06 for $3,150/ton
	V04 for $2,300/ton x4	V07 for $2,800/ton	V06 for $3,100/ton	V04 for $2,475/ton
	V04 for $2,300/ton x4	V04 for $2,500/ton x4	V05 for $3,450/ton
	V04 for $2,350/ton	V04 for $2,500/ton	V04 for $2,450/ton x2
	V04 for $2,375/ton x2	V06 for $3,200/ton	V07 for $2,750/ton
	V04 for $2,400/ton x3	V04 for $2,450/ton	V04 for $2,450/ton x2
	V04 for $2,425/ton x2	V04 for $2,425/ton	V05 for $3,500/ton
	V05 for $3,500/ton	V04 for $2,400/ton	V05 for $3,550/ton
	V06 for $3,175/ton	V04 for $2,375/ton	V05 for $3,600/ton
	V04 for $2,450/ton x4	V04 for $2,350/tpy x2	V05 for $3,650/ton x2
	V06 for $3,200/ton x2	V04 for $2,325/ton	V06 for $3,150/ton
	V04 for $2,300/ton	V06 for $3,050/ton	V06 for $3,200/ton x2
	V05 for $3,600/ton x2	V04 for $2,400/ton x2	V04 for $2,500/ton
	V07 for $2,800/ton	V06 for $3,100/ton x3	V05 for $3,725/ton x2
	V06 for $3,200/ton	V04 for $2,425ton	V04 for $2,500/ton x4

MARKET INDEX PRICE
	2004 $2,485/ton	$158	4,035 tons trade this month
	2005 $3,655/ton	$318	1,375 tons trade this month
	2006 $3,122/ton	$24	1,250 tons trade this month
	2007 $2,794/ton	$92	150 tons trade this month

            July 2004
           CANTOR ENVIRONMENTAL BROKERAGE
           Market News

SO2 Continues Its Rise, But Finishes Off the Month with a turnaround (Still Above Last month’s Close)

SO2 continued a remarkable rise this month to $640. However, the past week has seen a volatile swing down to $500 before settling out at $550 by the close. Inter-day volatility has often been extraordinary, with price swings of $50 or more occurring, sometimes in both directions.

NOx Market Creeps Up

NOx rose over the past month to a high of V04 $2525, before settling back to $2475. Heat, fuel choices, and control equipment not performing as originally planned, all combined with spread opportunities across various vintages of NOx EAs, contributed to the price rise over the past month. Vintage 2005 and vintage 2006 NOx prices responded in sympathy, with maximum prices of $3725, and $3200 for vintage 2005 and 2006, respectively.

NOx Quarterly Emissions Data Due

Second quarter NOx emissions data is due this month. With this data, EPA will soon be able to publish actual NOx emissions figures for the beginning of this year’s ozone season (May and June). We anticipate that the data will be made available during late August or early September, and will provide an opportunity to estimate whether the 2004 ozone season emissions are on target, or above or below market participants’ expectations.

EPA Publishes CAIR Information
Collection Request – Comments Due 60 Days from July 16, 2004

As a part of its Clean Air Interstate Rule (“CAIR”), EPA
published an Information Collection Request on July 16,
2004. On its website at www.epa.gov/airmarkets, EPA
noted that: The Environmental Protection Agency (EPA)
has proposed a Rule to Reduce Interstate Transport of
Fine Particulate Matter and Ozone (Clean Air Interstate
Rule) (CAIR) that includes new reporting requirements
and combines these new requirements with existing
requirements from the Consolidated Emissions
Reporting Rule (CERR), the Emission Reporting
Requirements for Ozone State Implementation Plan
(SIP) Revisions Relating to Statewide Budgets for NOx
Emissions to Reduce Regional Transport of Ozone (NOx
SIP Call) and the Acid Rain Program under Title IV of
the CAA Amendments of 1990. An Information
Collection Request … has been submitted to the Office
of Management and Budget (OMB) for review and
approval in accord with the requirements of the
Paperwork Reduction Act.

For more information please call us at 800-228-2955.

Cantor Environmental Brokerage
19 Old Kings Highway South, Darien, Connecticut 06820
Tel. (203) 662-3638 Fax (203) 662-3643
www.emissiontrading.com

EMA Conference Scheduled for September 19-22, 2004 in Toronto

The Emissions Marketing Association (EMA) has announced that its Fall 2004 Meeting will be held at the Marriott Toronto, Eaton Centre, Toronto, Canada on September 19-22, 2004. A tentative conference agenda may be found online at http://www.emissions.org/conferences/fallconference04/

To Reach Cantor Environmental Brokerage Staff Call 800-228-2955 or Dial Direct:
Josh Margolis San Francisco RTCs/ERCs/DERs 800-228-2955 ext 1	Bill Ross New York/San Francisco RECs 800-228-2955 ext 7
Andy Kruger Darien, CT ERCs/NOx & SO2 EAs/DERs 800-228-2955 ext 6	Alexa Paton Darien, CT ERCs/NOx & SO2 EAs/DERs 800-228-2955 ext 6
Laurie Gage New York ERCs/NOx & SO2 EAs/DERs 800-228-2955 ext 7	Lauren Kisling New York ERCs/NOx & SO2 EAs/DERs 800-228-2955 ext 7
Mike Hammond San Francisco RTCs/ERCs/DERs 800-228-2955 ext 9	Christine Grandstaff Los Angeles RTCs/ERCs/DERs 800-228-2955 ext 4
Diarmuid McGarry San Francisco Back Office Manager 800-228-2955 ext 3