Platts proposes launching new RIN credits, January 3

Platts is proposing to launch two Renewable Identification Number (RIN) credit assessments for cellulosic biofuel and advanced biofuel for the calendar years 2010 and 2011 on January 3, 2011.

A cellulosic biofuel RIN is a number issued by the US Environmental Protection Agency, for the purpose of tracking cellulosic biofuel and advanced biofuel throughout the supply chain. Refiners, importers and blenders, called "obligated parties" use them to show the EPA they have fulfilled their mandated government use of cellulosic and advanced biofuel. If the obligated party has not used enough physical cellulosic and advanced biofuel, it can satisfy the quota by purchasing RIN credits, commonly referred to as RINs.

The assessments for cellulosic and advanced biofuel-specific RIN credits would run concurrently to Platts' existing RIN credit assessments for ethanol and biodiesel. The calendar year cellulosic and advanced biofuel RIN credit assessments would reflect the price per renewable fuel credit (RIN) and typical volume of 1 million RINs per trade.

According to the EPA, calendar-year RINs expire two years forward on the last day of February. For example, all calendar-year 2010 cellulosic biofuel RINs will expire on February 28, 2012. However, Platts would roll to the next prompt year on the first business day of January, two years forward from the calendar year when the RINs were issued. For example, Platts would roll its calendar year 2010 cellulosic biofuel RIN assessment to the prompt year and will add calendar year 2011 cellulosic biofuel RIN assessments on the first business day of January 2011.

Platts would publish these RIN assessments in Platts Refiner, US Marketscan, Platts Dispatch, and on Platts Global Alert page 597.

Send questions and comments by November 29, 2010, to Robert Sharp, +1 713 658 3215, robert_sharp@platts.com, Esa Ramasamy, +1 713 658 3292, esa_ramasamy@platts.com, with a cc to pricegroup@platts.com.