EMISSIONS

Houston Galveston

Market Overview

Houston/Galveston/Brazoria (HGB) Mass Emission Cap & Trade Program (MECT) is administered by the Texas Commission on Environment Quality (TCEQ).  The program establishes a mandatory annual NOx emission cap for major source facilities or where the site collectively has the potential to emit ten tons or more per year (tpy) of NOx.  The MECT program has a declining cap, mandating facilities comply with ever decreasing emission limits.  The program allows for trading and banking of allowances where an allowance equals one ton of NOx emissions.  All new or modified facilities (subject to the MECT) in HGB must obtain allowances from other facilities already participating under the cap to offset any increased NOx emissions. There is an anuual compliance period running from January 1 through December 31 each year and companies must comply annually.

In addition to a NOx Cap & Trade Program, the TCEQ has a Highly-Reactive Volatile Organic Compound (HRVOC) Emissions Cap and Trade Program. This program is a mandatory program that applies for facilities that emit more than 10 tons of HR VOC in the Harris County area. This program was adopted in 2004 but implemented in January 2007. It is expected that the allocations will be reduced through the future years leading to a 25% reduction from the initial available 2011 cap by 2018.

For information on these Cap & Trade programs, please give us a call at 646.346.6899 or login to our website by to see current bids and offers by clicking here.