13 Apr 2015


April 2015 — Leadership for Energy Automated Processing (“LEAP”) is pleased to announce the publication of the LEAP LCFS Master Agreement.  The LEAP LCFS Master Agreement provides a clear set of terms and conditions with which parties can document their purchases and sales of Credits under the California Low Carbon Fuel Standard (“LCFS”) Program.  LEAP and the LCFS Master Agreement Committee believe that providing these documents will reduce confusion, inefficiency, and risk among parties in the trade of LCFS Credits.

Master agreements, like those found in the LEAP Master Agreement suite, are utilized by counterparties for several reasons, including, to: (i) obtain agreement on legal, credit and operational terms; (ii) obtain transaction simplification; and (iii) facilitate the electronic matching of trades.  Where one party and another party buy and sell LCFS Credits with each other regularly, it makes sense that they would want to obtain agreement on the general terms that govern their trades, like payment netting, close-out netting, governing law and dispute resolution, set off, and credit support, among other matters.  Once a LEAP Master Agreement is executed, transactions become simplified because individual trade confirmations only need to include the economic terms of a trade.

These documents are provided by LEAP for the free and voluntary use of market participants.  For document download visit http://www.energyleap.org/document-downloads/.  New users of the website, regardless of your LEAP membership, will be asked to complete a simple registration process prior to receiving an ID and password for the download of documents.

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 http://www.energyleap.org/about-us/how-to-join/.

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.