Platts proposes to launch US West Coast renewable diesel price assessments, Aug. 1

Platts, part of S&P Global Commodity Insights, proposes to launch daily market-based US West Coast renewable diesel (RD) assessments, effective Aug. 1, 2024.

Platts has observed growing liquidity in the US renewable diesel market, particularly in California, driven by the state's low carbon fuel programs and federal decarbonization incentives. Renewable diesel has replaced at least 50% of petroleum diesel consumption in California, according to the California Air Resources Board (CARB).

Platts is proposing to launch four renewable diesel price assessments:

• 99% renewable diesel, or R99, delivered to the Los Angeles area
• 100% renewable diesel, or R100, delivered to the Los Angeles area
• 99% renewable diesel, or R99, delivered to the San Francisco area
• 100% renewable diesel, or R100, delivered to the San Francisco area

The R99 and R100 assessments would be published as an outright price in US cents/gal, as well as a differential to the front-month NYMEX ULSD futures contract.

The R99 and R100 assessments would reflect a minimum volume of 145,000 US gallons (typically five rail cars) meeting the ASTM D975 specification, delivered at place (DAP) via railcar (UP or BNSF) to the Los Angeles and San Francisco area, respectively. The proposed assessments would reflect delivery 15-30 days forward.

The Los Angeles and San Francisco R100 assessments would be inclusive of the California Low Carbon Fuel Standard (LCFS) credit, blender's tax credit, and D4 biomass-based diesel Renewable Identification Number; as well as considering cap-and-trade (CCA) costs.

Meanwhile, the blended Los Angeles and San Francisco R99 assessments would be exclusive of the LCFS credit, blender's tax credit, and D4RIN; but would still consider cap-and-trade (CCA) costs.

The R100 assessment would reflect renewable diesel with a reference Carbon Intensity (CI) of 37.01 gCO2e/MJ.

The assessments would consider market information reported to Platts and published as heards throughout the day, including firm bids and offers, trades, and indicative values, as well as any other data deemed relevant to the assessment process.

The assessments would reflect a 1330 Houston time market close and would follow the Platts US publishing schedule.

Please submit any feedback, comments, or questions about this proposal to mrts_biofuelsandfeedstocks@spglobal.com ,and pricegroup@spglobal.com by June 21, 2024.

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 upon request.