15 Jul 2013

LEAP RINs Master Agreement User’s Guide Now Available

USER’S GUIDE TO THE LEAP MASTER AGREEMENT FOR PURCHASING AND SELLING RENEWABLE IDENTIFICATION NUMBERS VERSION 1.0

July 2013 — Leadership for Energy Automated Processing (“LEAP”) is pleased to announce the publication of the USER’S GUIDE TO THE LEAP MASTER AGREEMENT FOR PURCHASING AND SELLING RENEWABLE IDENTIFICATION NUMBERS VERSION 1.0.  This “User’s Guide” document is available for voluntary use by participants in market for Renewable Identification Numbers (“RINs”) in the United States of America[1].  The document can be downloaded free of charge from the LEAP website at http://www.energyleap.org/document-downloads/.

The User’s Guide is intended to assist parties in understanding and using the LEAP RINs Master Agreement, which was previously published and announced in February 2013.

Where one party and another party buy and sell RINs with each other regularly, it makes sense that they would want to obtain agreement on the general terms that govern their trades, like title transfer, buyer’s remedies for invalid or deficient RINs, seller’s remedies for buyer’s failures to accept or pay, limitations of parties’ liability, among other terms.  Once a LEAP RINs Master Agreement is executed, transactions become simplified because individual trade confirmations only need to include the economic terms of a trade.  In the future, subject to development by industry partners, parties may be able to forego paper confirmations altogether by using an online matching platform to confirm their trades.

The LEAP RINs Master Agreement and the User’s Guide were prepared by a Committee comprised of representatives from LEAP member companies and non-member participating companies.  The Committee believes that the LEAP RINs Master Agreement represents an unbiased set of terms and conditions that provide legal and operational clarity for the rights and obligations of the buyer and seller of RINs.

LEAP’s mission is to promote efficient and reliable transaction processing within the energy trading industry. More information about LEAP and how to join, including our Limited Project Participation option, is available at www.energyleap.org.

Membership in LEAP is open to energy trading, service and association entities on a nondiscriminatory basis. All members must be legal entities, not natural persons.

 



[1] The template may require revision and further customization by market participants depending on their individual commercial and legal objectives for each transaction.  Parties should consult their own legal counsel and other professional advisors when using the template to effect transactions.