EPA sets 2019 cellulosic waiver credit price at $1.77

By Erin Voegele | December 17, 2018

The U.S. EPA has published a notice on its website setting the cellulosic waiver credit (CWC) price for 2019 at $1.77. The price is slightly lower than the CWC price for 2018, which was set at $1.96 in December 2017.

Under the Renewable Fuel Standard regulations, the EPA is required to set CWC prices annually. For any calendar year in which the projected volume of cellulosic biofuel production is less than the applicable volume of cellulosic biofuel set forth in the Clean Air Act, the EPA must reduce the required volume of cellulosic biofuel for that year to the projected volume. In addition, the agency must provide obligated parties the opportunity to purchase CWC.

The price of CWCs is determined using a formula contained in the CAA. The CWC price is the greater either of 25 cents or $3.00 minus the wholesale price of gasoline, where both figures are adjusted for inflation. To set the CWC price, the EPA determines the average wholesale price of gasoline using the most recent 12 monthly values using data published by the U.S. Energy Information Administration. For 2019, the EPA said the most recent 12 months of data covers from July 2017 through June 2018.

The full notice setting the 2019 CWC price can be downloaded from the EPA website.