Platts to launch North California ethanol eWindow instruments July 1

• One instrument for 70 CI ethanol, one for annual gasoline standard
• CI differences to be normalized using CI value per point calculation

S&P Global Platts will launch instruments for the North California ethanol Market on Close assessment processes on eWindow technology on July 1.

The North California ethanol assessments reflect ethanol with 70 CI and the annual gasoline standard CI as published by the California Air Resources Board, respectively.

Other information relevant to the North California ethanol assessments can be found in the Biofuels Specifications guide here: spglobal.com/platts/en/our-methodology/methodology-specifications/agriculture/biofuels-methodology

CI normalization

Platts understands that ethanol delivered into northern California by rail reflects material with a range of CI values. Therefore for any trades published during the MOC process for both these assessments, Platts would expect buyers and sellers to apply a value normalization based on the CI of the ethanol physically delivered.

For example, if a seller delivers ethanol that has a CI value lower than stated CI basis of the traded reference, Platts would expect buyers to use a value per CI point calculation to compensate the seller for the difference in quality, and vice versa if the CI is higher.

MOC participation using eWindow software

Participants in the Platts MOC assessment process will be able to submit bids and offers for publication directly through the eWindow software or through an editor, who would then publish bids and offers using the software.

Platts expects credit relationships that prevail inside its assessment environment to fully reflect relationships in the markets as a whole. Where Platts editors publish bids and offers on behalf of a company that submits data to an editor, counterparty credit settings are set to "open" for regular participants in the assessment process unless companies have notified Platts in advance of any restrictions.

If a counterparty submitting information through an editor has not already notified Platts of any counterparty credit restrictions, they should notify Platts at least one hour prior to the start of the MOC process if any counterparty credit filters need to be modified. The eWindow provides direct entry and management of credit filters which should mirror those normally applied in the marketplaces.

Guidelines for the publication of bids and offers in the MOC process are published in the Biofuels Timing and Increment Guide available here: spglobal.com/platts/en/our-methodology/methodology-specifications/agriculture/biofuels-timing-and-increments-guidelines

An overview of Platts Assessments Methodology including the Market On Close assessment process can be found here: spglobal.com/platts/plattscontent/_assets/_files/en/our-methodology/methodology-specifications/platts-assessments-methodology-guide.pdf.

Any entities interested in participating in the MOC process for US ethanol should refer to spglobal.com/platts/en/our-methodology/participation-review. Platts provides training to participants interested in learning more about the use of the eWindow software.

Please send all further feedback and comments to Americas_ags@spglobal.com and 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 upon request.