Platts updates 2023 RVO calculation

Platts, part of S&P Global Commodity Insights, has updated the percentage mandates for its calculated values of the US Renewable Volume Obligation for compliance year 2023, effective June 21, 2023.

The update follows the Environmental Protection Agency's proposed mandates for 2023, 2024 and 2025 published June 21, 2023.

The RVO is the aggregate cost of the Renewable Identification Number percentages per gallon of transportation fuel as the EPA mandated in the Renewable Fuel Standard Program (RFS2).

To align with typical market practices, Platts calculates these renewable credit values using the daily value of biomass-based diesel (D4), conventional biofuel (D6), advanced biofuel (D5), and cellulosic biofuel (D3) RIN credits as assessed by Platts for the respective RVO years.

The percentages for the RVOs that Platts currently assesses are as follows:

2023

D68.71%

D50.33%

D42.58%

D30.48%

In accordance with EPA guidance, the 0.14% supplemental standards for 2023 have been added to the 2023 D6 percentages, as RINs from any fuel category can be used to satisfy the supplemental standard.

In line with the Platts methodology and as these renewable fuels are mandated by the EPA and hence subject to change without prior notice, Platts will update its RVO formulas at any time. When such changes are set forth by the EPA, Platts will inform the market of the changes in the formulas through subscriber notes.

Platts welcomes all feedback and questions to mrts_biofuelsandfeedstocks@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.