SUBSCRIBER NOTE: Platts to clarify RIN transfers with ethanol trades

Following a review of the feedback received, effective May 8, 2018, S&P Global Platts has decided to set a cutoff date for when ethanol trades in the Platts Market on Close assessment process must carry current-year Renewable Identification Numbers.

This decision follows a proposal note, published March 19, 2018, after requests for clarification from market participants.

In addition, Platts clarifies that RIN transfers that occur for Chicago Argo Terminal ethanol trades during the Platts MOC assessment process must carry current-year RINs if the transfer date is after January 31 to December 31. Transfers on or between January 1 to January 31 maintain the seller's option to transfer prior-year RINs or current-year RINs. The transfer date determines what RIN vintage may be attached, not the trade date.

Platts clarifies that Rule 11 ethanol trades in the Platts MOC process use the bill of lading date to determine what RIN vintage may be attached. Bills of lading after January 31 to December 31 must carry current-year RINs. Bills of lading on or between January 1 and January 31 maintain the seller's option to transfer prior-year RINs or current-year RINs.

Furthermore, Platts clarifies that trades in the Houston market in the Platts MOC process function similar to Chicago Argo Terminal ethanol trades. Transfers of ownership of the ethanol after January 31 to December 31 must carry current-year RINs while transfers on or between January 1 to January 31 maintain the seller's option to transfer prior-year RINs or current year RINs.

Platts considers LEAP terms to be standard in the New York Harbor market.

Platts welcomes further feedback on standard industry trading practices around RIN transfers on ethanol traded both in and outside of the Platts MOC process.

Please send all questions and feedback to americas_ags@spglobal.com with a cc to pricegroup@spglobal.com. For written comments, please provide a clear indication if comments are not intended for publication by Platts for public viewing. Platts will consider all comments received and will make comments not marked as confidential available to the public upon request.