US EPA sets 2020 cellulosic waiver credit at $1.80, in line with Platts expectations

New York — The US Environmental Protection Agency has set the 2020 cellulosic waiver credit (CWC) at $1.80, in line with S&P Global Platts expectations, the agency said on its website.

Parties obligated under the Renewable Fuel Standard can purchase the CWC if they are unable to source enough D3 renewable identification numbers to satisfy obligations.

Platts calculated the expected value of the 2020 CWC in September to use in 2020 D3 RIN assessments, using the same underlying data the EPA uses.

The EPA has historically published the value of the next year's CWC in or near December of the current year. However, the underlying data for calculating the CWC is published in early September.

The EPA calculates the CWC using the average wholesale price of gasoline from the preceding July 1 through June 30 period, as published by the US Energy Information Administration. The agency then subtracts that average price from an inflation adjusted $3.00, using inflation figures from the Bureau of Labor and Statistics. The EPA sets the CWC at that calculated number or an inflation adjusted 25 cents, whichever is greater.