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Approved Application for Oat Regularity
Application for Regularity in Ethanol
Approved Application for Ethanol regularity
Ethanol
September 2008 CBOT Ethanol Chartbook
Education Series: Using Options to Hedge Commodity Price Risk
Ethanol Fundamentals & Risk Management
Exchange Policy on RINs on Ethanol Futures Load-Out

On September 1, 2007, the U.S. Environmental Protection Agency (EPA) is planning to implement the Renewable Fuel Standard provisions of the Energy Policy Act of 2005 (see 72 Federal Register 23,900 (May 1, 2007)). The RFS program includes registration, recordkeeping and reporting requirements for biofuels to ensure compliance with the RFS. To ensure compliance, the EPA will begin requiring that Renewable Identification Numbers (RINs) be created for all biofuels, including ethanol, that are produced in, or imported into, the U.S. beginning on September 1, 2007.

Beginning one month after this program’s implementation, pending Board approval and CFTC certification, all load-out of ethanol from canceled shipping certificates delivered on CBOT® Ethanol futures contracts shall be accompanied by gallon-RINs. Each gallon of ethanol loaded out on CBOT Ethanol futures shall be accompanied by a minimum of one gallon-RIN. All such gallon-RINs shall not expire for at least six months from the date load-out is completed. Note that RIN transfer is required only at physical load-out and not when shipping certificates are delivered.

Since RIN transfer will be required on futures load-out, all regular firms that deliver in satisfaction of CBOT Ethanol futures contracts or firms that take delivery in satisfaction of such ethanol futures contracts and cancel shipping certificates for load-out are encouraged to register for the RFS program through the EPA at their earliest convenience. Registration forms are available at the EPA website: www.epa.gov.

If you have any questions, please contact David Lehman (312/347-3848), Fred Seamon (312/347-3808) or Jeffry Kuijpers (312/347-3951) in CME Group Corporate Development.

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