Platts proposes to launch RD spread to ULSD No2 CARB Diesel and calculated RD margin indicators

Platts, part of S&P Global Commodity Insights, proposes to launch six daily Renewable Diesel (RD) assessments, four as a differential to ULSD No2 CARB Diesel, and two calculated margin indicators for RD from soybean oil and tallow, effective Aug. 11, 2025.

Renewable diesel has become a major part of California's diesel consumption, with more than 60% of petroleum diesel replaced by renewable diesel in 2024, according to the California Air Resources Board (CARB). Platts has observed growing interest in a published CARB diesel differential for pricing, in addition to the existing Platts differential for RD Los Angeles and RD San Francisco versus NYMEX ULSD (AAUWF 00, AAUWH00).

Additionally, the proposed margin indicators for soybean oil and tallow feedstocks will help enable producers and traders to assess the economic viability of RD production based on prevailing feedstock costs and credit values. These initiatives would enhance the market transparency of California's renewable fuel sector.

Renewable diesel price differential to CARB diesel

Platts is proposing to launch four renewable diesel assessed price differentials:

99% renewable diesel, or R99, delivered to the Los Angeles area to ULSD No2 CARB Diesel LA (POAAK00)

100% renewable diesel, or R100, delivered to the Los Angeles area to ULSD No2 CARB Diesel LA (POAAK00)

99% renewable diesel, or R99, delivered to the San Francisco area to ULSD No2 CARB Diesel SF (POAAL00)

100% renewable diesel, or R100, delivered to the San Francisco area to ULSD No2 CARB Diesel SF (POAAL00)

The assessments for R99 and R100 will be published in US cents per gallon.

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, the federal RD tax credit, and D4 RIN; 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 US publication calendar, taking into consideration price information gathered up to the close of the assessment process at 13:30 Central Time.

RD Margin indicators

Platts proposes to calculate the RD margin indicators from Hydroprocessed Esters and Fatty Acids production pathway.

The calculation would consider Platts ULSD No2 CARB Diesel Los Angeles (POAAK00), deducting CBOT soybean oil daily settle (CBAAD00) or Platts tallow delivered USGC (TADUC00) feedstock price, then multiplied by the yield, and add the Platts California LCFS credit price (AAXYA00) based on a value per point of CI , the federal RD tax credit and D4 biomass-based diesel RIN price (BDRCY02) with RD multiplier .

The RD soybean oil margin indicator would reflect renewable diesel with a reference Carbon Intensity (CI) of 40 gCO2e/ MJ and the RD tallow margin indicator would reflect a reference CI of 20 gCO2e/MJ.

Platts may normalize the soybean oil assessment to account for refining and its freight cost, and the tallow assessment to account for its freight cost delivered in Los Angeles.

The cost-based prices 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 July 13 , 2025.

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.