Fuels Exchange

Via the Mobilis Trading Fuels Compliance Credit Exchange, Mobilis Trading offers compliance credit trading with respect to the following programs:

EPA’s ABT Program for Benzene
CARB’s Low Carbon Fuel Standard ABT Program

EPA’s ABT Program for Benzene

Per the EPA ABT program for benzene, two types of credits can be traded:

  1. Early Benzene Credits (these are credits generated prior to 2011 or prior to 2015 if generated by a small refiner approved under Section 80.1340). Early credits may be used for compliance purposes under Section 80.1240(a) for the following averaging periods: 2011, 2012, and 2013. For small refiners, they can be used for the 2015, 2016 and 2017 averaging periods.
  2. Standard Benzene Credits (these are credits generated after 2010, or after 2014 if generated by a small refiner approved under Section 80.1340). Standard credits may be used for compliance purposes within five years from the year they were generated except that, if traded to and ultimately used by a small refiner, standard credits may be used for compliance purposes within seven years from the year they were generated.

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CARB’s Low Carbon Fuel Standard ABT Program

In 2010, the California Air Resources Board (CARB) adopted a new regulation to implement the California Low Carbon Fuel Standard (LCFS). The regulation is a discrete early action measure under the California Global Warming Solutions Act of 2006 (Assembly Bill 32) and effectuates Governor Schwarzenegger’s Executive Order S-01-07. The regulation is intended to reduce GHG emissions by reducing the carbon intensity of transportation fuels used in California by an average of 10 percent by the year 2020. The 10 percent reduction in average carbon intensity is achieved by starting specified providers of transportation fuels (referred to as “regulated parties”) at an initial 2011 level and incrementally lowering the allowable carbon intensity for transportation fuels used in California in each subsequent year through 2020.

Per the LCFS program, a regulated party’s overall carbon intensity for its pool of transportation fuels needs to meet each year’s specified carbon intensity level. Regulated parties can meet these annual carbon intensity levels with any combination of fuels they produce or supply and with LCFS credits generated in previous years or acquired from other regulated parties. There are separate annual carbon intensity standards for gasoline and diesel fuel.

In accordance with the ABT program for the CARB low carbon fuel standard (LCFS), LCFS credits are generated through the supply of fuels or blendstocks with carbon intensity values below that of the applicable standard. Once banked, these LCFS credits can be transferred to other regulated parties.

Mobilis Trading is offering LCFS credit trading for companies that are interested in utilizing the credit trading flexibilities afforded to them by the regulation.

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Our easy-to-use online trading platform makes it possible for automakers, engine manufacturers, fuels producers, and fleet operators to buy and sell regulatory compliance credits via forward auctions and reverse auctions.
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In a Forward Auction, a company with excess credits initiates an auction to sell credits and companies needing credits bid to buy them. As the auction proceeds, bidding drives up the price of the credits. When the auction ends, the company that has offered to pay the most for the credits is the winner.

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In a Reverse Auction, a company needing credits initiates an auction to purchase credits and companies with excess credits bid to sell their credits to that company. As the auction proceeds, bidding drives the price of the credits down. When the auction ends, the company that has offered to sell their credits for the least amount of money is the winner.

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