Cap and Trade Resources

How OPIS Handles Cap-and-Trade Regulations & Associated Costs

OPIS Cap and Trade Pricing Information

On August 1, 2014, OPIS began providing price discovery for the California carbon market in its U.S. West Coast Spot Market Report, estimating the impact of the state’s cap-and-trade regulations on transportation fuels delivered at the rack level. This includes daily price discovery for California Carbon Allowances (CCA) and a daily California Cap-at-the-Rack (CAR) assessment. On October 1, 2014, OPIS began publishing CAR price assessments for wholesale gasoline, diesel and biodiesel in the OPIS California Rack Reports. OPIS also publishes the Carbon Market Report with comprehensive carbon credit prices and market news.

Supplier List

Click here to view the updated list of how OPIS will reflect the assessed costs associated with carbon regulations by individual supplier with details and notes included. See which suppliers embed the cost of compliance into the price and which suppliers reflect it as a line item. Reflections will be assumptions used in the adjusted (CAR Normalized) OPIS Rack Reports.

OPIS Methodology

Click here to view the OPIS Methodology for assessing CCA values and calculating CAR values.

Questions? Contact us:

Tanya Lee

Director of Wholesale Business Development, OPIS
(p) 301.284.2135

Lisa Street

Head of Climate & Carbon Markets
(p) 832.679.7225

OPIS Customer Service

(p) 888.301.2645

Understand how cap and trade costs are reflected in rack reports.

The cost of cap and trade compliance can increase the price paid for wholesale gasoline and diesel at the rack. OPIS accounts for these compliance costs by showing California Cap at the Rack (CAR) in its gas and diesel rack reports.

However, suppliers have not standardized how they reflect compliance costs in their prices – some include it as a line item and others wrap the cost into their posted rack price. OPIS shows “normalized” costs in our rack fuel data to provide a standard price reference that compares “apples to apples.”

Watch this quick video to earn how OPIS accounts for Cap and Trade costs in its California gas and diesel wholesale rack price reports.