EPA Issues 2014 and 2015 Cellulosic Waiver Credit prices
by Jim Lane (Biofuels Digest) In Washington, the EPA announced 2014 and 2015 Cellulosic Waiver Credit prices, and “a Clarification of the Data Sources Used in the Cellulosic Waiver Credit Price Calculation”.
The good news here? The waiver credits have been successfully separated from a parallel process to set the Renewable Volume Obligation levels – which were due for 2014 in November 2013 but have not yet been released.
The Advanced Biofuels Association said: This morning, the Environmental Protection Agency (EPA) announced a direct final rulemaking, which set forward a new path for setting the cellulosic waiver credit RIN price. This action, which is a direct result of advocacy efforts carried out by the Advanced Biofuels Association (ABFA) over the last 18 months, will help bring the cellulosic waiver credit RIN prices to parity with the RIN values of other renewables. In addition, the revised rule also helps incentivize the purchase of actual gallons of cellulosic biofuel rather than using the waiver credit loophole.
Effective immediately, this rule raises the posted waiver price from its outdated 2013 position at $0.42, to a more reasonable rate of $0.64 for 2015. This increases the competitiveness of the RIN value relative to the renewable pool which now sits at $0.67 cents – sending a positive signal to markets and investors. READ MORE and MORE (DomesticFuel.com) and MORE (Reuters) and MORE (Environmental Protection Agency) EPA Direct Final Rule