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 Dec. 1, 2022.

The update follows the Environmental Protection Agency's proposed mandates for 2023, published Dec. 1, 2022.

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, S&P Global 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:

In accordance with EPA guidance, the 0.14% supplemental standards for 2022 and 2023 have been added to the 2022 and 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, S&P Global will update its RVO formulas at any time. When such changes are set forth by the EPA, S&P Global will inform the market of the changes in the formulas through subscriber notes.

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