Platts to launch biodiesel RINs assessments May 3

Following a period of industry feedback, Platts plans to launch biodiesel Renewable Identification Number (RINs) assessments for calendar year 2009 and 2010 on May 3, 2010.

A biodiesel RIN is a number issued by the US Environmental Protection Agency for the purpose of tracking biodiesel throughout the supply chain; refiners, importers and blenders, called "obligated parties," use them to show the EPA they have fulfilled their mandated government use of biodiesel. If the obligated party has not used enough physical biodiesel, it can satisfy the quota by purchasing RINs.

These assessments for biodiesel-specific RINs would run concurrently to Platts existing "generic" RINs assessments. The calendar year biodiesel RINs assessment will reflect the price of per renewable fuel credit (RIN) and typical volume of 1 million RINs per trade. According to the EPA, calendar-year RINs expire two years forward on the last day of February. For example, all calendar-year 2009 biodiesel RINs will expire on February 28, 2011.

Platts, however, will roll to the next prompt year on the first business day of January, two years forward from the calendar year when the RINs were issued.

For example, Platts will roll its calendar year 2010 biodiesel RINs assesment to the prompt year and will add calendar year 2011 RINs on the first business day of January 2011.

Platts will publish these RINs assessments in Platts Refiner, US Marketscan, Platts Dispatch and on Platts Global Alert page 597.

For questions and comments, please contact Robert Sharp, +1-713-658-3215, robert_sharp@platts.com, and Esa Ramasamy, +1-713-658-3292, esa_ramasamy@platts.com, with a cc to pricegroup@platts.com.