EPA sets 2018 cellulosic waiver credit price at $1.96

By Erin Voegele | December 13, 2017

The U.S. EPA has published a notice on its website setting the cellulosic waiver credit (CWC) price for 2018 at $1.96. The price is slightly lower than the CWC price for 2017, which was set at $2.00 in December 2016.

The EPA is required to set CWC prices under the regulations that established the Renewable Fuel Standard. The notice explains that for any calendar year in which the projected volume of cellulosic biofuel production is less than the applicable volume of cellulosic biofuel set for in the Clean Air Act, the agency must reduce the required volume of cellulosic biofuel for that year to the project projected volume. In addition, the EPA must provide obligated parties the opportunity to purchase CWCs.

The price of CWCs is determined using a formula specified in the CAA. The CWC price is the greater 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 2018, the EPA said the most recent 12 months of data covers July 2016 through June 2017.

Additional information is available on the EPA website