EPA will soon be announcing the 2012 cellulosic waiver credit price. In any given compliance year when EPA reduces the applicable volume of cellulosic biofuel versus the EISA mandate, EPA will provide cellulosic waiver credits for that compliance year.
The price for a cellulosic waiver credit shall be set equal to the greater of:
(i) $0.25 per cellulosic biofuel waiver credit, adjusted for inflation in comparison to calendar year 2008; or
(ii) $3.00 less the wholesale price of gasoline per cellulosic biofuel waiver credit, adjusted for inflation in comparison to calendar year 2008.
Our current estimate for the value of a 2012 cellulosic waiver credit is $0.78.
Keep in mind that an Obligated Party who carries forward a deficit in the CB RVO category cannot make up that deficit with next year's waiver credits, they can only use cellulosic RINs.
Questions? Contact Sandra Dunphy at Sandra.Dunphy@WeaverLLP.com or 832-320-3218.