EPA sets prices for 2021, 2022 cellulosic waiver credits

By Erin Voegele | August 22, 2022

The U.S. EPA has announced the Renewable Fuel Standard cellulosic waiver credit prices for 2021 and 2022 are $2.23 and $2.31, respectively, up from a price of $1.80 set for 2020 cellulosic waiver credits.

For any calendar year for which the projected volume of cellulosic biofuel production is less than the applicable volume of cellulosic biofuel set forth by the Clean Air Act, the EPA must reduce the required volume of cellulosic biofuel for that year to produced projected volume, and must provide obligated parties the opportunity to purchase cellulosic waiver credits. The credit prices are determined using a formula specified the CAA that accounts for inflation.

Unlike renewable identification numbers (RINs), cellulosic waiver credits cannot be traded or banked for future use. They must be used to meet the cellulosic biofuel standard for the year that they are offered.

Additional information is available on the EPA website.