Stillwater Benchmark for Refinery Stationary Source Cap & Trade Costs
February 14, 2019
This benchmark represents the cost in cents per gallon of CARBOB gasoline and CARB diesel incurred by the refining sector under of the stationary source provision of California’s Cap and Trade program (Stationary Source Cap and Trade or SSC&T).
Stillwater’s Benchmark for Refinery SSC&T Cost is calculated using the following formula:
|[(A - B) x C x D] / E = Stationary Source Cost (cpg of CARBOB gasoline and CARB diesel)|
|A||2016 Actual Refining Sector GHG Emissions (metric tons/year)|
|B||2018 Allowance Allocations (metric tons/year)|
|D||Daily OPIS California Carbon Allowance Assessment ($/metric ton)|
|E||2016 CARBOB gasoline + CARB diesel supplied (gallons)|
Actual Refining Sector GHG Emissions (line A) are updated annually with California Air Resources Board (CARB) data, which is published in November of the year following reporting. Allowance Allocations (line B) are updated annually with CARB’s January announcement. Our Correction Factor (line C) is updated annually based on CARB data which is released in November of the year following reporting. The California Carbon Allowance Assessment (line D) is updated at the close of each non-holiday weekday with the release of Oil Price Information Service (OPIS) West Coast Report data.