Feedback sought for proposed NYH gasoline cargo RINS change

Platts is seeking feedback for a proposal to modify the calculation of RINS (Renewable Identification Numbers) credit values for its US Atlantic Coast inside-duty gasoline cargo assessments basis New York Harbor.

To align with typical market practices, Platts proposes calculating this credit value using a formula of 20% of the previous year's RINS price and 80% of the current year's RINS price, if the previous year RINS credit price is below the current year.

For example, if the price of 2010 RINS credits were below 2011 levels, then the RINS component of Platts inside-duty gasoline cargo assessment would be calculated as 20% of 2010 and 80% of 2011.

In the event that the previous year's RINS credit value is above the current year, then the RINS calculation would fully reflect the current year's RINS value.

The Environmental Protection Agency permits obligated parties to meet their annual RINS requirements by using up to 20% of the previous year's RINS.

In either case, the total RINS value would be calculated using Platts' RINS assessment for ethanol, Biodiesel, Advanced Biodiesel and Cellulosic.

At present, Platts uses 100% of the current year's total RINS value for its calculations towards USAC inside duty gasoline cargo assessments basis New York Harbor.

Please send inquires/comments by September 30, 2011, to americas_products@platts.com and pricegroup@platts.com.