News

October 05, 2011

DOE Proposes to Require More Credit Trading within the Alternative Fuel Transportation Program (AFTP).

Under the AFTP (10 CFR 490.1), certain State and alternative fuel provider fleets are required to acquire alternative fuel vehicles as minimum percentages of their annual light duty vehicle acquisitions (now 90% for alternative fuel provider fleets and 75% for State fleets). Covered fleets are generally those that own, operate, lease or otherwise control 50 or more non-excluded light-duty vehicles if 20 of those 50 or more vehicles are used primarily within a single Metropolitan Statistical Area and are capable of being centrally fueled. In the notice of proposed rulemaking issued October 5, 2011, DOE has proposed to modify the exemption process so that deficient fleets without a sufficient number of banked credits would need to make a good faith effort to purchase credits in the market place prior to applying for an exemption. DOE has stated that going forward there will be fewer justifications for granting exemptions. The proposal is expected to be finalized sometime in 2012.

 

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Our easy-to-use online trading platform makes it possible for automakers, engine manufacturers, fuels producers, and fleet operators to buy and sell regulatory compliance credits via forward auctions and reverse auctions.
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In a Forward Auction, a company with excess credits initiates an auction to sell credits and companies needing credits bid to buy them. As the auction proceeds, bidding drives up the price of the credits. When the auction ends, the company that has offered to pay the most for the credits is the winner.

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In a Reverse Auction, a company needing credits initiates an auction to purchase credits and companies with excess credits bid to sell their credits to that company. As the auction proceeds, bidding drives the price of the credits down. When the auction ends, the company that has offered to sell their credits for the least amount of money is the winner.

See An Example