News

July 17, 2012

Mobilis Trading Launches Online Platform for Compliance Credit Trading - Press Release

FOR IMMEDIATE RELEASE

Washington, DC – July 17, 2012 -- Today, Washington, DC-based Mobilis Trading, LLC (“Mobilis”) launched a new trading platform (at www.mobilistrading.com) with four credit exchanges to help motor vehicle manufacturers, engine manufacturers, fuels producers, and alternative fuel vehicle fleet owners achieve compliance with increasingly more stringent environmental standards.

Using the Mobilis trading platform, companies subject to the regulatory programs listed below will now have the opportunity to trade compliance credits online by running forward and reverse auctions:

Vehicle manufacturers:

  • NHTSA’s Light Duty Vehicle Fuel Economy Program
  • EPA’s Light Duty Vehicle GHG Emissions Program
  • NHTSA’s Medium- and Heavy-Duty Vehicle Fuel Consumption Program
  • EPA’s Medium- and Heavy-Duty Vehicle GHG Emissions Program
  • California and S.177 State Low Emission Vehicle Programs

Engine manufacturers:

  • EPA Emissions Standards for Heavy Duty Highway Diesel Engines
  • EPA Emissions Standards for Heavy Duty Gasoline Engines and Vehicles
  • EPA Emissions Standards for Non-Road CI Engines
  • EPA Emissions Standards for Snowmobile SI Engines
  • EPA Emissions Standards for Small Non-Road SI Engines
  • EPA Emissions Standards for Marine SI Engines
  • EPA Emissions Standards for Locomotive Engines

Fuels producers:

  • CARB’s Low Carbon Fuel Standard Program
  • EPA’s ABT Program for Benzene

Alternative Fuel Vehicle Fleet Operators

  • DOE’s Alternative Fuel Vehicle Transportation Program (AFTP)

The Mobilis trading platform was developed by veteran auto industry regulatory affairs consultant, Dale Kardos. According to Kardos, the Mobilis trading platform will eliminate the uncertainty associated with negotiating a credit trade in a vacuum with a single trading partner. He said, “Our goal at Mobilis is to take the guesswork out of credit trading by offering regulated parties the opportunity to buy and sell compliance credits via a competitive online bidding process.”

Mobilis developed the new compliance credit trading platform anticipating that some regulated parties may experience difficulties complying with future fuel economy and emissions standards. With motor vehicle fuel economy standards poised to top 50 mpg in the near future, Kardos believes that automakers will welcome the new service. He is equally confident that Mobilis will be a hit with companies that must comply with programs such as California’s Low Carbon Fuel Standard and the Department of Energy’s Alternative Fuel Vehicle

Transportation Program. He said that with all of these programs, the regulators have built credit trading into the regulations because they know that, without such provisions, some companies simply will not be able to comply. According to Kardos, however, the regulators have not created the trading exchanges necessary to make credit trading practical and so Mobilis has stepped in to fill that void. Using the Mobilis trading platform, companies that need credits can run forward or reverse auctions to buy credits from companies that have generated excess credits through over-compliance with the standards. Kardos calls it a “win-win-win” situation because companies facing compliance difficulties will be able to get the credits they need to comply, companies that exceed the standards will benefit from their over-compliance, and the regulatory agencies will achieve their goals without putting anybody out of business in the process.

Mobilis will now begin the process of signing up customers and they anticipate that the first trades via the platform will take place later this summer. To open an account with Mobilis, a company must be regulated under at least one of the credit trading programs for which the platform has been designed. Companies that establish an account with Mobilis in 2012 pay no fee to access the platform. Mobilis will generate revenue by charging credit buyers a fee for each credit transfer that results from an auction run using the Mobilis platform.

For more information on the new Mobilis compliance credit trading platform, go to www.mobilistrading.com.

About Mobilis Trading:

Mobilis Trading’s mission is to make credit trading a practicable compliance option for vehicle manufacturers, engine manufacturers, fuels suppliers, and alternative fuel vehicle fleet operators. Mobilis has developed an online trading platform which makes it possible for regulated parties to trade emissions compliance credits by running forward and reverse auctions.

Contact:

Dale Kardos
Mobilis Trading, LLC
325 7th St., NW Suite 400
Washington, DC 20004
Tel: (202) 567-2926
Email: kardos@mobilistrading.com

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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.

See An Example

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