Environment

On July 5, 2010, in response to the Court’s order, the EPA released their draft of the Clean Air Transport Rule “CATR”. This new proposed emissions program is scheduled to be operational in 2012 and will have an Annual and Seasonal NOx feature as well as two separate regions for SO2 compliance. Comments on this rule were submitted and are currently being reviewed by the EPA. The EPA will be addressing these comments in the next few months and a final rule is expected to be drafted and released sometime in the 2nd quarter of 2010. This rule has been poorly received by different market participants and imposes several limitations on trading that if unchanged, will likely impact the functionality and efficiency of the market.