EPA sets cellulosic waiver credit price for 2017 at $2.00
The U.S. EPA recently published a notice to its website setting the cellulosic waiver credit (CWC) price for 2017 at $2.00. The CWC price for 2016 was set in at $1.33 in November 2015.
Within the notice, the agency explains that for any year that the projected volume of cellulosic biofuel production is less than the applicable volume of cellulosic biofuel set in the Clean Air Act, it must reduce the required volume of cellulosic biofuel for that year to the projected volume and provide obligated parties the opportunity to purchase CWCs.
The EPA sets the price of CWC using a formula specified in the CAA. According to documents published by the EPA, the price of CWCs is the greater of 25 cents or $3.00 minus the wholesale price of gasoline, with both figures adjusted for inflation.
Prior to 2015, the EPA established the CWC price through rulemaking. The process, however, was altered in March 2015 when the EPA introduced a rule that allows the agency to announce CWC prices via its website. According to EPA, the annual CWC rulemaking process resulted in delays in setting CWC prices for 2014 and 2015. The change implemented last year allows the agency to announce CWC prices in a timelier manner.
A full copy of the EPA’s Notice of Cellulosic Waiver Credit Price Calculation for 2017 can be downloaded from the agency’s website.