27 Sep 2013

New RINs Master Version 1.1 and RINs Single Trade Agreement Now Available

NEW RINs MASTER AGREEMENT VERSION 1.1 AND RINs SINGLE TRADE AGREEMENT

September 2013 — Leadership for Energy Automated Processing (“LEAP”) is pleased to announce the publication of the LEAP MASTER AGREEMENT FOR PURCHASING AND   SELLING RENEWABLE IDENTIFICATION NUMBERS VERSION 1.1 and the LEAP SINGLE TRADE AGREEMENT FOR PURCHASING AND SELLING RENEWABLE INDENTIFICATION NUMBERS VERSION 1.0.  The “RINs Master Agreement” and the “RINs Single Trade Agreement”, respectively, are available for voluntary use by participants in the market for Renewable Identification Numbers (“RINs”) in the United States of America[1].  The documents can be downloaded free of charge from the LEAP website at http://www.energyleap.org/document-downloads/.

The new version of the RINs Master Agreement was made necessary by a change in an EPA Renewable Fuels rulemaking, and removes a ‘hardcoded’ reference to a February 28th yearly deadline for compliance. This version also includes certain other modifications related to the definition of LEAP, the change in a calculation of payment from Buyer to Seller in the case of a failure to accept or deny RINs, and a change in the Representations and Warranties section.  All of the differences between Version 1.0 and 1.1 are summarized in an accompanying document, also available on the LEAP website in the same location.

The RINs Single Trade Agreement was developed based on feedback from LEAP members who wished to transact under the same terms of the RINs Master Agreement while using a document template that contains all of the terms for a single   transaction. We expect this document to be used between parties who transact RINs rarely with each other, and as such do not wish to negotiate a master agreement.

The LEAP RINs Master Agreement and the RINs Single Trade Agreement were prepared by a Committee comprised of representatives from LEAP member companies and non-member participating companies.  The Committee believes that the Agreements represent 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 templates 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.