Platts clarify methodology for its RINs credit assessments

Following a period of industry feedback, Platts will further clarify its methodology for its Renewable Identification Number (RIN) credit assessments effective May 1, 2012.

A RIN is a number issued by the US Environmental Protection Agency, for the purpose of tracking renewable fuel usage 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 renewable fuels.

If the obligated party has not used enough physical product, such as ethanol, it can satisfy the quota by purchasing RINs. Currently, Platts assesses prompt two calendar year RINs for ethanol, biodiesel, advanced biofuel and cellulosic biofuel.

Platts is proposing that these assessments reflect bids, offers and transactions for transfer of the RIN documentation from seller to buyer 5-10 days forward from date of publication.

Currently, Platts ethanol RINs assessments (Category D6) reflect a minimum volume of 1,000,000 RINS.

Platts is also proposing to add the following minimum volumes for its other RINs assessments: 250,000 RINs for biodiesel (Category D4), 100,000 for cellulosic biofuel (Category D3), and 100,000 for advanced biofuel (Category D5).

Platts is also proposing to change the expiry of its prompt year RINs assessments from one year forward on the end of December two years forward on February 15.

Under this proposed change, the last day for 2011 Platts RINs assessments would be February 15, 2013.

Platts will also publish a current-year RINs assessments starting on the first business day of January.

On January 2, 2013, Platts will publish RINs assessments for 2011, 2012, and 2013.

Please respond with questions or comments to pl_biofuels@platts.com.