Benchmarking the Cost of Stationary Source Cap & Trade on...

Stillwater Associates LLC

Benchmarking the Cost of Stationary Source Cap & Trade on California Refineries, July 19, 2018 ™

Benchmarking the Cost of Stationary Source Cap & Trade on California Refineries

prepared by Stillwater Associates, LLC

Irvine, California, USA

1

August 9, 2018

1



Contents

1) Study Objectives2) Stationary Source Cap and Trade (SSC&T) – What Is It

and How Does it Work?3) Current industry invoicing practices4) SSC&T should be treated like other invoice items5) Benchmarking Methodology 6) Summary

2



Study Objectives

o Develop rationale and methodology to be used to benchmark the SSC&T cost to California refiners

3



Contents

1) Study Objectives2) Stationary Source Cap and Trade (SSC&T) –

What Is It and How Does it Work?3) Current industry invoicing practices4) SSC&T should be treated like other invoice items5) Benchmarking Methodology 6) Summary

4



Stationary Source Cap & Trade – What Is It?

1. Global Warming Solutions Act of 2006 (AB 32) addresses climate change with a variety of programs, including cleaner cars, renewable energy, energy efficiency, and Cap & Trade, designed to collectively reduce greenhouse gas (GHG) emissions to 1990 levels by 2020.

2. AB 398, passed in 2017, extends the Cap & Trade program to 2030 and pushes the emission reduction goal to 40% below 1990 levels.

3. Cap-and-Trade Program creates a “cap” on GHG emissions a business may produce

4. The Cap-and-Trade rule applies to large electric power plants, large industrial plants (like oil refineries), and fuel distributors

5



Stationary Source Cap & Trade – How it Works

1. Each year the cap is lowered by approximately three percent (3%)

2. Industries in this program must either reduce their GHG emissions or buy a limited quantity of pollution permits, also called “allowances”

3. Participants are required to surrender one compliance instrument (allowances and offsets) for each metric ton of covered GHG emissions

4. Compliance instruments may be traded

5. Allowances can be bought through quarterly auctions managed by the California Air Resources Board (CARB)

6. CARB allocates “free” allowances to covered emitters on an annual basis as an offset to their total GHG exposure

6



Stationary Source Cap & Trade – How it Works

The Cap & Trade program applies to only the most prevalent GHGs, called “covered emissions”:-- Carbon Dioxide (CO2)-- Methane (CH4)-- Nitrous Oxide (N2O)-- Sulfur Hexafluoride (SF6)-- Perfluocarbons (PFCs)-- Nitrogen Trifluoride (NF3)-- Other fluorinated GHGs

CARB measures emissions by the metric ton of carbon dioxide equivalent (MTCO2e). This means that the other covered gases, like methane and nitrous oxide, will be measured by how many metric tons of carbon dioxide are necessary to reproduce the climate effects of one metric ton of the other covered gas.

7



Stationary Source Cap & Trade – 2016 Volume & Cost

Actual GHG Emissions, tons per year

100%

Allocated Allowances, tons per year

-80%

Net Emissions, tons per year

20%

Auction Price, $ per ton

Cost of StationaryCap & Trade

34,959,731

(28,040,923)

6,918,808

$15

$103,782,125

Note: emission data & allowances for facilities included in CARB’s allowances for “Petroleum Refining”

Allocated Allowances currently reduce refiner cost by $420 million

Sources: Stillwater analysis, CARB, OPIS

8



Contents



9



Current industry invoicing practices…

Mandatory items are passed through

Source: Stillwater analysis of March 2018 data

10

CARBOB Regular

CARBOB Premium

CARB Diesel

CA CAR Assessment 11.900 11.900 15.160CA LCFS Assessment 8.080 8.080 5.790CA Childhood Lead Assessment Fee 0.076 0.076 CA Gasoline AB32 Admin Fee 2017/18 0.171 0.171 CA ULSD AB32 Admin Fee 2017/18 0.203CA Prepaid Sales Tax 5.000 5.000 25.000Federal Oil Spill Tax 0.193 0.193 0.214Federal Excise Tax LUST 1.000 1.000 1.000CA Motor Vehicle Fuel Tax 41.700 41.700 CA Diesel Tax 36.000Federal Excise Tax -- 10% Gasohol 18.300 18.300 Federal Excise Tax -- Diesel 24.300

TOTAL TAXES & FEES 86.420 86.420 107.667

Rack Invoiced Taxes & Fees

cents per gallon



Contents


and How Does it Work?3) Current industry invoicing practices4) SSC&T should be treated like other invoice

items5) Benchmarking Methodology 6) Summary

11



SSC&T should be treated like the other items

1. SSC&T costs are currently borne by refiners

2. SSC&T is an inherent environmental cost, like LCFS

3. Invoicing for SSC&T provides crucial transparency to consumers and regulatory bodies

12



Contents



13



Benchmarking Methodology – Highlights

1. Stationary cost is derived from the net cost of emissions for fuel refineries divided by total CARBOB gasoline and CARB diesel sales

2. Data is publicly available

3. Most recent full-year CARB data on fuel refinery emissions (excluding non-fuels manufacturing facilities) and announced free allocations determine number of allowances

4. “Mean” price for California Carbon Allowance Assessments as reported in the OPIS West Coast Spot Market Report, for Current Year Prompt

5. Total California gasoline and diesel sales over same time frame as allowances based on CARB data reported in its LCFS Reporting Tool (LRT)

6. Resulting cost in cents per gallon (CPG) would be used for both gasoline and diesel

14



Benchmarking Methodology

The NUMERATOR(Actual Emissions – Allowances)

X Correction Factor (CF) X OPIS Price

The DENOMINATORVolume

= Cost in CPG

15



Benchmarking Methodology – the “Numerator”

1. Actual annual covered emissions recognized by CARB for the fuel refineries reflects best estimate available

2. Actual emissions = Total Petroleum Refining and Hydrogen Production Sector emissions in metric tons (MT) for most recent year published by CARB. (See Appendix 1)

3. Refineries and other facilities are listed individually and tailored to match facilities included in Allowances

(Actual Emissions – Allowances) x CF x OPIS Price

16




4. Freely allocated allowances = Total Petroleum Refining and Hydrogen Production Sector Total Allocation in MT, corrected by the Total True-up Value if appropriate (see Appendix 2)

5. While CARB groups facility-level allocation by North American Industry Classification System (NAICS) sector to prevent disclosure of confidential business information, including petroleum refineries, it is the most complete data available

6. Subtracting freely granted allowances yields total net emissions


17




7. The correction factor (CF) is used to exclude emissions & allowances included in the CARB grouping for “petroleum refining” but not associated with manufacturing of transportation fuels (such as calciners, asphalt plants, etc.)


18




Sources: Stillwater analysis, CARB data 19




8. Alternatives for pricing include the most recent CARB auction price or the daily “mean” price for California Carbon Allowance Assessments as reported by OPIS in the West Coast Spot Market Report, for Current Year Prompt

9. The OPIS daily price has three advantages over Auction Price:i. It reflects daily changes priceii. It includes latest market informationiii. It will be favored by OPIS, who will be helpful


As a result, we favor using the OPIS daily price 20



Benchmarking Methodology – the “Denominator”

We considered a number of alternatives for the “volume”:

1. CARBOB gasoline and CARB diesel sold in the calendar year that emissions were generated from that reported in CARB’s Quarterly LRT data

2. Taxable sales of gasoline and diesel from California Board of Equalization data

3. Total gasoline and diesel production from California Energy Commission (CEC) Weekly Production data

4. Total gasoline, diesel, and jet fuel production from CEC Weekly Production data

Volume

21



Benchmarking Methodology – Alternatives2016 CARBOB + CARB Diesel

Sales (LCFS Reporting

Tool)

2016 CA Gasoline and

Diesel Taxable Sales (CA BoE)

Total 2016 Gasoline and

Diesel Production

(CEC)

Total 2016 Gasoline, Diesel

and Jet Production

(CEC)2016 Actual GHG Emissions, tons per year

2016 Allowances, tons per year

Correction Factor

OPIS Price, $ per ton

The "Numerator", $

The "Denominator", gallons 17,435,254,193 18,493,227,498 22,263,234,000 26,619,558,000

Stationary Cost, cpg 0.58 0.55 0.46 0.38

Memo: Gasoline 14,053,271,601 15,487,956,872 16,757,328,000 16,757,328,000 Diesel 3,381,982,592 3,005,270,626 5,505,906,000 5,505,906,000 Jet Fuel 4,356,324,000

34,959,731

28,040,923

15

$101,476,221

0.9778

Source: Stillwater analysis, ARB, CEC. OPIS data

22



Benchmarking Methodology – Alternatives

We believe that the CARBOB gasoline + CARB diesel sales from CARB’s Quarterly LRT to be the best option

23



Benchmarking Methodology – Data Updates

1. Actual Emissions: Updated annually with following-year Q4 release https://ww2.arb.ca.gov/mrr-data

2. Allowances: Updated annually with beginning-of-year releasehttps://www.arb.ca.gov/cc/capandtrade/allowanceallocation/v2018allocation.pdf

3. Correction Factor: Updated annually based on Actual Emissions release4. OPIS Price: Updated daily5. Volume: Reported quarterly by the end of the following quarter and published the

last day of the month following the reporting deadline (i.e. 1Q18 is due by June 30 and published July 31). https://www.arb.ca.gov/fuels/lcfs/lrtqsummaries.htm

The data for our recommended components are updated with varying frequency

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Source: California Air Resources Board

We recommend updating bi-annually with the release of the Actual Emissions and Allowance Allocations data, except for pricing

J F M A M J J A S O N D J F M A M J J A S O N DActual EmissionsAllowancesCorrection FactorOPIS PriceVolumes

reporting year firat year after reporting yearfirst year after reporting year



Contents


and How Does it Work?3) Current industry invoicing practices4) SSC&T should be treated like other invoice items5) Benchmarking Methodology6) Summary

25



Summary

Source: Stillwater analysis

26

CARBOB Regular

CARBOB Premium

CARB Diesel

CA CAR Assessment 11.900 11.900 15.160

CA LCFS Assessment 8.080 8.080 5.790CA SSC&T Assessment 0.582 0.582 0.582

CA Childhood Lead Assessment Fee 0.076 0.076

CA Gasoline AB32 Admin Fee 2017/18 0.171 0.171

CA ULSD AB32 Admin Fee 2017/18 0.203

CA Prepaid Sales Tax 5.000 5.000 25.000

Federal Oil Spill Tax 0.193 0.193 0.214

Federal Excise Tax LUST 1.000 1.000 1.000

CA Motor Vehicle Fuel Tax 41.700 41.700

CA Diesel Tax 36.000

Federal Excise Tax -- 10% Gasohol 18.300 18.300

Federal Excise Tax -- Diesel 24.300

TOTAL TAXES & FEES 87.002 87.002 108.249

Rack Invoiced Taxes & Fees

cents per gallon

With CARB reducing Allowance Allocations, the 2018 cost has risen to 1.32 cpg of CARBOB and CARB diesel!



Summary (cont.)

1. SSC&T cost California refineries about $100 million per year through 2016. This number increases significantly with CARB’s planned phase-out of allowance allocations, which began in 2017

2. Sellers would allocate the benchmark cost to sales of CARBOB gasoline and CARB diesel

3. With publicly available data and common-sense methodology, the cost of SSC&T can be determined and established as a pass-through item

4. Treating SSC&T like other items on the invoice establishes transparency

27



Benchmarking the Cost of Stationary Source Cap & Trade on California Refineries

Appendices1) Total GHG Emissions report example2) Freely Granted Allowances report example3) ARB Auction report example4) OPIS daily carbon report example5) LCFS Reporting Tool example6) CA BoE Taxable Gasoline Sales report example7) CA BoE Taxable Diesel Sales report example8) CEC Weekly Production report example

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APPENDIX 1

Annual Summary of 2016 Greenhouse Gas Emissions Data Reported to the California Air Resources Board

Released November 6, 2017 This spreadsheet includes three tabs:

1) "Introduction" (this tab), provides an overview of the included data; 2) "Column Descriptions" provides a description of each data column provided in the GHG Data tab; and 3) "2016 GHG Data" provides a summary of annual emissions data reported under the California greenhouse gas mandatory reporting regulation.

The summary data shown were submitted to the California Air Resources Board to comply with the requirements of the Regulation for the Mandatory Reporting of Greenhouse Gas Emissions (MRR). The regulation is available here: http://www.arb.ca.gov/cc/reporting/ghg‐rep/regulation/mrr‐regulation.htm

MRR includes applicability, reporting requirements, estimation methods, and verification requirements. Because of regulation changes that became effective after January 1, 2012, reports for 2011 data and onward will have differences from the historical 2008‐2010 data because of changes in the reporting requirements.

A majority of the emissions data reports were subject to verification by ARB‐accredited third‐party verifiers. The outcome of the verification is displayed in the "2016 GHG Data" spreadsheet.

Listed facilities and entities can change from year to year due to shutdowns, startups, and changes in emissions that affect applicability under MRR. This affects both the number of facilities and emissions totals.

Product data is required to be reported for specific industrial sectors. Product data is not included in this report because it may include confidential business information that will not be publically released. However, the verification statement for the product data is included to indicate if the submitted product data were complete and accurate.

Data summarized in this spreadsheet are from facilities and entities subject to MRR and does not include all California GHG emissions sources, such as mobile sources. An overall statewide inventory of all GHG sources is available here: http://www.arb.ca.gov/cc/inventory/data/data.htm

The data displayed as "covered emissions" may not represent compliance obligations in the Cap‐and‐Trade Program.

Released November 6, 2017 Column TOTALS34,705,257 34,606,172 34,606,172

ARB ID Facility NameReportYear

Emitter CO2e from Non‐Biogenic

Sources and CH4 and N2O from Biogenic Fuels

Emitter CO2 from Biogenic Fuels

Fuel Supplier CO2e from Non‐Biogenic Fuels and CH4 and N2O from

Biogenic Fuels

Fuel Supplier CO2 from Biogenic Fuels

Electricity Importer CO2e

Emitter CoveredEmissions

Fuel Supplier CoveredEmissions

Electricity Importer Covered Emissions

Total Covered Emissions

Total Non‐Covered Emissions

101701 Air Liquide El Segundo Hydrogen Plant 2016 644,287 0 0 0 0 644,287 0 0 644,287 0101749 Air Liquide Large Industries US L.P. ‐ Rodeo Hydrogen Plant 2016 773,174 0 0 0 0 773,174 0 0 773,174 0101017 Air Products & Chemicals, Inc., Martinez 2016 264,232 0 0 0 0 264,232 0 0 264,232 0101248 Air Products Carson Hydrogen Plant 2016 743,423 0 0 0 0 743,423 0 0 743,423 0101512 Air Products Manufacturing Corporation, Sacramento 2016 45,337 0 0 0 0 45,337 0 0 45,337 0100127 Air Products Wilmington Hydrogen Plant 2016 647,842 0 0 0 0 647,842 0 0 647,842 0101053 Praxair Inc. 2016 70,979 0 0 0 0 70,979 0 0 70,979 0100884 Alon Bakersfield Refinery ‐ Area 3 2016 0 0 0 0 0 0 0 0 0 0101237 Alon Bakersfield Refinery ‐ Areas 1&2 2016 25,894 0 0 0 0 25,894 0 0 25,894 0101320 Edgington Oil Company 2016 5 0 0 0 0 0 0 0 0 5101155 Greka Santa Maria Refinery 2016 23,277 0 0 0 0 0 0 0 0 23,277101507 Kern Oil Refinery 2016 132,353 2,063 0 0 0 131,987 0 0 131,987 2,429101162 Lunday‐Thagard Company, DBA World Oil Refining 2016 39,026 0 0 0 0 36,149 0 0 36,149 2,877101056 Paramount Petroleum Corporation 2016 13,364 23,339 0 0 0 13,364 0 0 13,364 23,339101226 Phillips 66 Company ‐ Santa Maria Refinery 2016 200,292 0 0 0 0 200,117 0 0 200,117 175104005 Tricor Refining, LLC 2016 46,556 0 0 0 0 41,849 0 0 41,849 4,707101205 Ultramar Inc ‐ Valero Wilmington 2016 1,018,611 0 0 0 0 1,018,177 0 0 1,018,177 434104444 Valero Wilmington Asphalt Plant 2016 12,387 0 0 0 0 0 0 0 0 12,387100303 Phillips 66 Company ‐ San Francisco Refinery 2016 1,214,808 0 0 0 0 1,214,258 0 0 1,214,258 550101239 San Joaquin Refining Company 2016 94,412 0 0 0 0 94,048 0 0 94,048 365100914 Shell Oil Products US ‐ Martinez 2016 4,008,406 0 0 0 0 4,007,504 0 0 4,007,504 902100138 Chevron Products Company ‐ El Segundo Refinery, 90245 2016 3,537,187 0 0 0 0 3,536,042 0 0 3,536,042 1,145101384 Chevron Products Company ‐ Richmond Refinery, 94802 2016 4,312,257 0 0 0 0 4,309,539 0 0 4,309,539 2,718100913 Phillips 66 Company ‐ Los Angeles Refinery ‐ Carson Plant 2016 969,432 0 0 0 0 960,412 0 0 960,412 9,020100329 Phillips 66 Company ‐ Los Angeles Refinery ‐ Wilmington Plant 2016 1,880,625 0 0 0 0 1,878,867 0 0 1,878,867 1,758

101246Tesoro Refining & Marketing Company LLC ‐ Los Angeles Refinery ‐ Carson

2016 6,393,187 0 0 0 0 6,356,500 0 0 6,356,500 36,687

101331 Tesoro Refining and Marketing Co. ‐ Martinez 2016 2,365,254 0 0 0 0 2,364,850 0 0 2,364,850 404100217 Torrance Refinery 2016 2,441,904 0 0 0 0 2,441,384 0 0 2,441,384 521

100372Valero Refining Company ‐ California, Benicia Refinery and Benicia Asphalt Plant

2016 2,786,748 0 0 0 0 2,785,960 0 0 2,785,960 788

Facility Reported GHG Data ARB Calculated Covered Emissions

California Air Resources BoardAnnual Summary of GHG Mandatory Reporting

See the "Introduction" tab and the "Column Descriptions" tab for important information

City State Zip CodeNorth American Industry Classification

System (NAICS) Code and Description

U.S.EPA/ARB

SubpartsIndustry Sector

El Segundo CA 90245 325120 ‐ Industrial Gas Manufacturing C,P Hydrogen PlantRodeo CA 94572 325120 ‐ Industrial Gas Manufacturing C,P Hydrogen PlantMartinez CA 94553 325120 ‐ Industrial Gas Manufacturing P Hydrogen PlantCarson CA 90810 325120 ‐ Industrial Gas Manufacturing C,P Hydrogen PlantSacramento CA 95826 325120 ‐ Industrial Gas Manufacturing P Hydrogen PlantWilmington CA 90744 325120 ‐ Industrial Gas Manufacturing C,P Hydrogen PlantOntario CA 91761 325120 ‐ Industrial Gas Manufacturing C,P Hydrogen PlantBakersfield CA 93308 324110 ‐ Petroleum Refineries C RefineryBakersfield CA 93308 324110 ‐ Petroleum Refineries C RefineryLong Beach CA 90805 324110 ‐ Petroleum Refineries C RefinerySanta Maria CA 93458 324110 ‐ Petroleum Refineries C,Y RefineryBakersfield CA 93307 324110 ‐ Petroleum Refineries C,Y RefinerySouth Gate CA 90280 324110 ‐ Petroleum Refineries C,Y RefineryParamount CA 90723 325199 ‐ All Other Basic Organic Chemical ManuC RefineryArroyo Grande CA 93420 324110 ‐ Petroleum Refineries C,Y RefineryBakersfield CA 93308 324110 ‐ Petroleum Refineries C,Y RefineryWilmington CA 90744 324110 ‐ Petroleum Refineries C,Y RefineryWilmington CA 90744 324110 ‐ Petroleum Refineries C,Y RefineryRodeo CA 94572 324110 ‐ Petroleum Refineries C,P,Y Refinery and Hydrogen PlantBakersfield CA 93308 324110 ‐ Petroleum Refineries C,P,Y Refinery and Hydrogen PlantMartinez CA 94553 324110 ‐ Petroleum Refineries C,P,Y Refinery and Hydrogen PlantEl Segundo CA 90245 324110 ‐ Petroleum Refineries C,P,PP,Y Refinery and Hydrogen Plant / CRichmond CA 94802 324110 ‐ Petroleum Refineries C,P,PP,Y Refinery and Hydrogen Plant / CCarson CA 90745 324110 ‐ Petroleum Refineries C,P,PP,Y Refinery and Hydrogen Plant / CWilmington CA 90744 324110 ‐ Petroleum Refineries C,P,PP,Y Refinery and Hydrogen Plant / C

Carson CA 90810 324110 ‐ Petroleum Refineries C,P,PP,Y Refinery and Hydrogen Plant / C

Martinez CA 94553 324110 ‐ Petroleum Refineries C,P,PP,Y Refinery and Hydrogen Plant / CTORRANCE CA 90504 324110 ‐ Petroleum Refineries C,P,PP,Y Refinery and Hydrogen Plant / C

Benicia CA 94510 324110 ‐ Petroleum Refineries C,P,PP,Y Refinery and Hydrogen Plant / C

Facility Physical Address Industry Classifications

APPENDIX 2

April 13, 2016

Vintage 2016 Allowance Allocation This document provides a summary of the vintage 2016 free allowance allocation under the Cap-and-Trade Program, aggregated both by allocation methodology and, within the industrial allocation category, by North American Industry Classification System (NAICS) sector. The methodologies for allowance allocation can be found in Cap-and-Trade Regulation sections 95852(j), 95852(k), 95870, 95890, 95891, 95893, 95894, and 95895. Details on allocation to electrical distribution utilities are not included in this document and are instead posted online at http://www.arb.ca.gov/cc/capandtrade/allowanceallocation/electricity-allocation-2013-updates.pdf. Because facility-level allocation could reveal confidential business information, the total allocation for each allocation methodology and allocation to each industrial sector with fewer than five companies are grouped together. For facilities with a limited exemption of emissions from the production of qualified thermal output and waste-to-energy facilities, allowance allocation is provided at the facility level. These facilities are allocated allowances equal to each facility’s 2014 covered emissions, which are already public data and therefore not confidential. Detailed information regarding allocation for industrial and other sectors may be found at the following links:

1. Allowance allocation web page 2. 2010 Cap-and-Trade Regulation

a. Initial Statement of Reasons: Appendix J—Allowance Allocation b. First 15-Day Modifications July 25, 2011: Appendix B—Development of Product Benchmarks for Allowance

Allocation c. Second 15-Day Modifications September 27, 2011: Appendix A—Refinery Allocation Methodology

3. 2013 Cap-and-Trade Regulation a. Initial Statement of Reasons (for information on allocation to universities and public services facilities,

natural gas suppliers, legacy contract generators, and public wholesale water agencies, as well as for the limited exemption of emissions from qualified thermal output and waste-to-energy facilities) and 45-Day Modifications September 4, 2013: Appendix C: Product-Based Benchmark Development

b. 15-Day Modifications March 21, 2014: Appendix A: Product-Based Benchmark Development

Page 1 of 14

http://www.arb.ca.gov/cc/capandtrade/allowanceallocation/electricity-allocation-2013-updates.pdf

http://www.arb.ca.gov/cc/capandtrade/allowanceallocation/allowanceallocation.htm

http://www.arb.ca.gov/regact/2010/capandtrade10/capv4appj.pdf

http://www.arb.ca.gov/regact/2010/capandtrade10/candtappb.pdf

http://www.arb.ca.gov/regact/2010/capandtrade10/candtappb.pdf

http://www.arb.ca.gov/regact/2010/capandtrade10/2nd15dayappa.pdf

http://www.arb.ca.gov/regact/2013/capandtrade13/capandtrade13isor.pdf

http://www.arb.ca.gov/regact/2013/capandtrade13/capandtrade13isorappc.pdf

http://www.arb.ca.gov/regact/2013/capandtrade13/2appabenchmarks.pdf

April 13, 2016

The “Total Allocation” numbers below reflect the sum of positive allowances distributed to eligible entities. This value does not include any negative allocation that will carry over into the next allocation distribution. For more information on negative allocation, see Cap-and-Trade Regulation section 95870(j). The “Total True-up Value” numbers below reflect the sum of positive true-up values. True-up value is a quantity of vintage 2016 allowances eligible to be used for compliance for budget year 2014 and subsequent years. Questions regarding allocation may be directed to David Allgood at (916) 445-8238 or [email protected].

Industrial Allocation Category Total NAICS Codes Facility Names Total

# Facilities

Petroleum Refining and

Hydrogen Production

Total Allocation: 28,040,923

Total True-up

Value: 658,790

• 324110 -- Petroleum Refineries • 324199 -- All Other Petroleum

and Coal Products Manufacturing

• 325120 -- Industrial Gas Manufacturing

• 100002 – Tesoro Los Angeles Refinery - Wilmington Calciner

• 100127 – Air Products Wilmington Hydrogen Plant

• 100138 – Chevron Products Company - El Segundo Refinery, 90245

• 100217 – ExxonMobil Oil Corporation - Torrance Refinery

• 100303 – Phillips 66 Company - San Francisco Refinery

• 100329 – Phillips 66 Company - Los Angeles Refinery - Wilmington Plant

• 100351 – Phillips 66 Company - San Francisco Carbon Plant

• 100372 – Valero Refining Company - California, Benicia Refinery and Benicia Asphalt Plant

• 100888 – Plains LPG Services/ Lone Star Frac & Isom Facility

26

Page 2 of 14

mailto:[email protected]

April 13, 2016


# Facilities

Petroleum Refining and Hydrogen

Production (Continued)

See Above • See Above

• 100913 – Phillips 66 Company - Los Angeles Refinery - Carson Plant

• 100914 – Shell Oil Products US – Martinez • 101017 – Air Products & Chemicals, Inc.,

Martinez • 101053 – Praxair Inc. • 101162 – Lunday-Thagard Company • 101205 – Ultramar Inc - Valero • 101226 – Phillips 66 Company - Santa Maria

Refinery • 101239 – San Joaquin Refining Company • 101246 – Tesoro Los Angeles Refinery -

Carson • 101248 – Air Products Carson Hydrogen Plant • 101331 – Tesoro Refining and Marketing Co. -

Martinez • 101384 – Chevron Products Company -

Richmond Refinery, 94802 • 101507 – Kern Oil Refinery • 101512 – Air Products Manufacturing

Corporation, Sacramento • 101701 – Air Liquide El Segundo Hydrogen

Plant • 101709 – DeMenno/Kerdoon • 101749 – Air Liquide Large Industries US L.P. -

Rodeo Hydrogen Plant

See Above

Page 3 of 14

April 13, 2016


# Facilities

Crude Petroleum and

Natural Gas Extraction


Total True-up

Value: 1,646,718

• 211111 -- Crude Petroleum and Natural Gas Extraction

• 211112 – Natural Gas Liquid Extraction

• 100888 – Plains LPG Services/ Lone Star Frac & Isom Facility

• • 100904 – Linn Operating Inc • 100994 – Oxy - Thums Long Beach Company • 101187 – California Resources Elk Hills, LLC -

San Joaquin Valley Basin • 101231 – All American Oil and Gas Company • 101234 – Macpherson Oil Company • 101460 – TRC Cypress Group • 101674 – Pacific Coast Energy Company LP • 101703 – Crestwood West Coast, LLC • 103016 – Freeport-McMoRan Oil & Gas LLC -

Arroyo Grande Oil Production Facility • 104011 – Chevron AAPG 740 Coastal Basin • 104012 – Chevron AAPG 745 San Joaquin

Basin • 104013 – Chevron 17Z Gas Plant • 104014 – California Resources Elk Hills, LLC -

35R Gas Plant • 104016 – Aera Energy San Joaquin Basin • 104017 – Aera Energy Ventura Basin

35

Page 4 of 14

April 13, 2016


# Facilities

Crude Petroleum and

Natural Gas Extraction

(Continued)

See Above See Above

• 104018 – Aera Energy Coastal Basins • 104019 – Aera Energy Belridge Gas Plant 32 • 104029 – California Resources Production

Corporation - Sacramento Valley Basin 730 • 104030 – California Resources Production

Corporation - San Joaquin Valley Basin 745 • 104033 – California Resources Production

Corporation - SCVGP Gas Plant • 104072 – Oxy - Tidelands Oil Production

Company - 760 Los Angeles Basin • 104075 – BreitBurn Operating LP - Los

Angeles Basin Facility • 104081 – Freeport-McMoRan Oil & Gas LLC -

SJV Basin Facility • 104090 – Signal Hill Petroleum Facilities • 104091 – Seneca San Joaquin Production

Facilities • 104094 – Berry Petroleum Company - San

Joaquin Basin • 104097 – Naftex Operating Company • 104215 – E&B Natural Resources - San

Joaquin Valley • 104426 –Holmes Western Oil Corporation • 104458 – ERG Operating Company, LLC. 750

Santa Maria Basin • 104459 – ExxonMobil POPCO Facility • 104460 – ExxonMobil LFC Facility • 104485 – CMO Inc • 104581 – Eagle Petroleum - Lynch Canyon

Field

See Above

Page 5 of 14

April 13, 2016


# Facilities

Cement, Lime, and Gypsum Product

Manufacturing


Total True-up

Value: 1,170,249

• 327310 – Cement Manufacturing

• 327410 – Lime Manufacturing • 327420 – Gypsum Product

Manufacturing

• 100013 – Riverside Cement Company • 101010 – Mitsubishi Cement 2000 • 101029 – CalPortland Company, Mojave Plant • 101265 – Lehigh Southwest Cement Co -

Cupertino • 101271 – U.S. Gypsum Co Plaster City Plant • 101314 – National Cement Company - Lebec • 101381 – Lehigh Southwest Cement Co -

Redding • 101461 – Lehigh Southwest Cement Co -

Tehachapi • 101476 – Cemex Construction Materials Pacific

LLC - Victorville Plant • 101697 – New NGC, Inc - Long Beach • 101700 – Georgia-Pacific Gypsum LLC -

Antioch • 104052 – Lhoist North America - Natividad

Plant

12

Metal Ore and Mineral Mining


Total True-up

Value: 201,326

• 212299 – All Other Metal Ore Mining

• 212391 – Potash, Soda, and Borate Mineral Mining

• 212399 – All Other Nonmetallic Mineral Mining

• 100011 – Searles Valley Minerals Inc. • 100300 – U.S. Borax, 93516 • 101243 – Dicalite Minerals Corp. • 101318 – Imerys Minerals California, Inc. • 104322 – Molycorp Minerals, LLC

5

Page 6 of 14

April 13, 2016


# Facilities

Fruit and Vegetable Canning

Total Allocation: 930,675

Total True-up

Value: 150,949

• 311421 -- Fruit and Vegetable Canning

• 100936 – Campbell Soup Supply Company, L.L.C. - Dixon

• 100972 – Los Gatos Tomato Products • 101008 – Ingomar Packing Company • 101025 – Stanislaus Food Products • 101207 – Pacific Coast Producers • 101213 – Olam West Coast Inc- Lemoore • 101214 – Del Monte - Hanford • 101217 – R&B Foods, Inc. • 101498 – Morning Star Packing Company - Los

Banos • 101499 – Liberty Packing - Los Banos

(Morning Star) • 101500 – Olam West Coast Inc - Williams • 101502 – Tomatek / Neil Jones Food

Companies • 101503 – ConAgra - Oakdale • 101504 – J.G.Boswell Tomato Company Kings • 101536 – Morning Star Packing Company -

Williams • 101705 – J. G. Boswell Tomato Company Kern • 101729 – ConAgra Foods - Helm Facility

17

Page 7 of 14

April 13, 2016


# Facilities

Other Food Manufacturing


Total True-up

Value: 95,956

• 311221 – Wet Corn Milling • 311313 – Beet Sugar

Manufacturing • 311423 – Dried and

Dehydrated Food Manufacturing

• 311611 – Animal (except Poultry) Slaughtering

• 311615 – Poultry Processing • 311911 – Roasted Nuts and

Peanut Butter Manufacturing • 311919 – Other Snack Food

Manufacturing • 311991 -- Perishable Prepared

Food Manufacturing • 311999 – All Other

Miscellaneous Food Manufacturing

• 312120 – Breweries • 312130 -- Wineries

• 100323 – Ingredion Incorporated Stockton Plant

• 100943 – Anheuser-Busch LLC - Fairfield • 100958 – E & J Gallo Winery - Fresno • 101235 – Frito Lay - Kern Plant • 101241 – Spreckels Sugar Company, Inc.-

Brawley • 101297 – MillerCoors • 101315 – Sensient Natural Ingredients LLC • 101473 – Anheuser-Busch LLC - Los Angeles

Brewery • 101519 – CP Kelco San Diego • 101575 – Foster Poultry Farms - Livingston

Complex, 95334 • 101693 – Wm. Bolthouse Farms, Inc. • 101736 – Paramount Farms International LLC • 104069 – Olam West Coast, Inc. - Firebaugh

13

Dairies


Total True-up

Value: 76,202

• 311513 -- Cheese Manufacturing

• 311514 -- Dry, Condensed, and Evaporated Dairy Product Manufacturing

• 100959 – California Dairies, Inc. Fresno • 101186 – Saputo Cheese USA Inc. - Paige • 101190 – California Dairies, Inc. Turlock • 101197 – California Dairies, Inc. Visalia • 101288 – Hilmar Cheese Company • 101465 – Land O' Lakes, Inc. • 101509 – California Dairies, Inc. Tipton • 101716 – Leprino Foods - Lemoore West

8

Page 8 of 14

April 13, 2016


# Facilities

Glass Manufacturing


Total True-up

Value: 36,579

• 327211 -- Flat Glass Manufacturing

• 327213 -- Glass Container Manufacturing

• 327993 -- Mineral Wool Manufacturing

• 100917 – CertainTeed Corporation • 101042 – Owens-Brockway Glass Container,

Oakland • 101183 – Owens-Brockway Glass Container,

Tracy • 101342 – Ardagh Glass Inc. • 101475 – Owens-Brockway Glass Container,

Vernon • 101513 – PPG Industries Inc. • 101721 – Guardian Industries Corp. • 103018 – Gallo Glass Company • 104122 – Johns Manville

9

Paper Manufacturing


Total True-up

Value: 12,610

• 322121 -- Paper (except Newsprint) Mills

• 322130 -- Paperboard Mills

• 100147 – Graphic Packaging International, Inc • 100195 – New-Indy Ontario, LLC Linerboard

Mill • 100962 – Kimberly Clark Worldwide Inc. • 101356 – New-Indy Oxnard LLC • 101582 – The P&G Paper Products Co. • 104135 – California Paperboard Corporation • 104136 – Newark Pacific Paperboard

7

Page 9 of 14

April 13, 2016


# Facilities

Metal Processing and Manufacturing


Total True-up

Value: 135,371

• 331111 – Iron and Steel Mills • 331221 – Rolled Steel Shape

Manufacturing • 331314 – Secondary Smelting

and Alloying of Aluminum • 331492 – Secondary Smelting,

Refining, and Alloying of Nonferrous Metal (except Copper and Aluminum)

• 331511 – Iron Foundries • 332112 – Nonferrous Forging

• 100953 – Vista Metals Corp. • 100954 – California Steel Industries • 101073 – TAMCO • 101469 – United States Pipe & Foundry Co.

LLC • 101734 – Carlton Forge Works • 104066 – Exide Technologies • 104197 – Quemetco, Inc. • 104329 – Shultz Steel Company • 104358 – Schlosser Forge Company

9

Chemical, Biological, and Pharmaceutical Manufacturing


Total True-up

Value: 2,116

• 325188 -- All Other Basic Inorganic Chemical Manufacturing

• 325193 -- Ethyl Alcohol Manufacturing

• 325199 -- All Other Basic Organic Chemical Manufacturing

• 325311 -- Nitrogenous Fertilizer Manufacturing

• 325412 -- Pharmaceutical Preparation Manufacturing

• 325414 -- Biological Product (except Diagnostic) Manufacturing

• 100259 – Eco Services - Dominguez • 100389 – Braun Medical Inc • 101451 – Genentech Inc South San Francisco • 101685 – Pixley Cogeneration Partners /

Calgren Renewable Fuels • 101733 – Dow Chemical Company - Pittsburg • 104006 – Agrium US Inc • 104048 – Pacific Ethanol Stockton, LLC • 104347 – Aemetis Advanced Fuels Keyes, Inc.

8

Page 10 of 14

April 13, 2016


# Facilities

Miscellaneous Industrial Facilities


Total True-up

Value: 29,662

• 324121 – Asphalt Paving Mixture and Block Manufacturing

• 332510 -- Hardware Manufacturing

• 333611 -- Turbine and Turbine Generator Set Units Manufacturing

• 336111 -- Automobile Manufacturing

• 336411 -- Aircraft Manufacturing

• 336414 -- Guided Missile and Space Vehicle Manufacturing

• 488119 -- Other Airport Operations

• 488190 -- Other Support Activities for Air Transportation

• 101118 – Solar Turbines Incorporated - Kearny Mesa

• 101124 – United Airlines San Francisco Maintenance Center

• 101323 – Los Angeles International Airport (LAX)

• 101623 – Lockheed Martin Corporation - Sunnyvale

• 104206 – Prime Wheel Corporation • 104516 – Tesla Motors

6

Page 11 of 14

April 13, 2016

Universities and Public Service Facilities Total Allocation Total True-up Value Facility Names Total

# Facilities

931,855 0

• 100207 – Loma Linda University • 100235 – California State University, Channel Islands • 100273 – University of California, Santa Cruz, UCSC EH&S Office • 100305 – University of California, Davis • 100327 – California Institute of Technology (CalTech) • 100328 – Civic Center Cogen, LA County • 100997 – University of California, Los Angeles, UCLA • 101296 – University of California, Irvine • 101305 – University of California, San Diego, UCSD • 101399 – California State University, San Diego • 101416 – University of California, San Francisco • 104068 – UC Davis Medical Center • 104372 – University of California, Santa Barbara • 104514 – University of California, Berkeley

14

Natural Gas Allocation

Total Allocation Total True-up Value Facility Names Total # Entities

44,444,093 0

• 5002 – Southern California Gas Company • 5003 – Long Beach Gas & Oil Dept (LBGO) • 5008 – City of Vernon, Gas Municipal Utility Department • 5011 – City of Palo Alto - Gas Utility • 5013 – Southwest Gas Distribution Facilities • 104024 – Pacific Gas and Electric Company (PG&E) - Supplier of

Natural Gas • 104085 – San Diego Gas and Electric (SDG&E) - Local Distribution

7

Page 12 of 14

April 13, 2016

Legacy Contract Generators Total Allocation Total True-up Value Facility Names Total

# Facilities

761,895 77,230

• 100001 – ACE Cogeneration • 100130 – Sacramento Municipal Utility District (SMUD) , Carson Ice CG • 100150 – Corona Energy Partners, Ltd. • 100178 – Calpine - Gilroy Cogen, L.P., Gilroy Cogen_Peaker • 100236 – OLS Energy Chino • 100252 – Sacramento Municipal Utility District (SMUD) , SCA • 100338 – Calpine - Los Medanos Energy Center, LLC • 100878 – Wheelabrator Norwalk Energy Company, Inc. • 101263 – Crockett Cogeneration Project, LP • 101300 – Calpine - King City Cogen, LLC, King City Cogen_Peaker • 101701 – Air Liquide El Segundo Hydrogen Plant • 101740 – Panoche Energy Center, LLC

12

Waste-to-Energy Facilities

Total Allocation

Facility Allocation (all allowances have

true-up value)

Facility Names Total # Facilities

262,352 104,554 100063 – Southeast Resource Recovery Facility (SERRF)

3 56,669 100064 – LACSD - Commerce Refuse To Energy 101,129 101264 – Covanta - Stanislaus, Inc

Page 13 of 14

April 13, 2016

Facilities with Limited Exemption of Emissions from the Production of Qualified Thermal Output Total Allocation

Facility Allocation

(all allowances have true-up value)

Facility Names Total # Facilities

225,523

30,316 100131 – California State University, San Jose

8

25,171 100263 – SRI International Cogen Project 13,155 101054 – Freeport-McMoRan Oil & Gas LLC - Gaviota Oil Heating Facility 18,651 101400 – Qualcomm, Inc. - Morehouse Facility 9,946 101487 – LACSD - Joint Water Pollution Control Plant 57,685 101607 – NRG Energy - San Francisco Thermal 35,123 101745 – Orange County Central Utility Facility 35,476 104364 – Houweling Nurseries

Public Wholesale Water Agencies

Total Allocation Total True-up Value Facility Names Total # Facilities

133,065 0 2046 – Metropolitan Water District of Southern California (MWD) 1

Total Allowance Allocation Total Allocation Total True-up

Value Total

# Entities1 55,751,545 4,216,528 Total industrial allocation 155 102,510,328 4,781,633 Total allocation on this spreadsheet 200 90,450,339 0 Total electricity distribution utility allocation2 54

192,960,667 4,781,633 TOTAL ALLOCATION 254

1 Total number of facilities/entities from each of the above categories will not add up to the “Total # Entities” under “Total Allowance Allocation” since an entity may receive allocation under multiple allocation categories. 2 For more information on allocation to the electrical distribution utilities, please see http://www.arb.ca.gov/cc/capandtrade/allowanceallocation/electricity-allocation-2013-updates.pdf

Page 14 of 14

http://www.arb.ca.gov/cc/capandtrade/allowanceallocation/electricity-allocation-2013-updates.pdf

APPENDIX 3

California Cap-and-Trade Program, Ontario Cap-and-Trade Program, and

Québec Cap-and-Trade System February 2018 Joint Auction #14

Summary Results Report

Background

The California Air Resources Board (CARB), Ontario Ministry of the Environment and Climate Change (MOECC), and Québec’s ministère du Développement durable, de l’Environnement et de la Lutte contre les changements climatiques (MDDELCC)1 held a joint auction of greenhouse gas (GHG) allowances on February 21, 2018. The auction included a Current Auction of 2016 and 2018 vintage allowances and an Advance Auction of 2021 vintage allowances. The information provided in this report is a balance between the need for program transparency and protection of information about individual qualified bidders’ market positions.

Prior to the certification of the auction, CARB, MOECC, and MDDELCC staff and the independent Market Monitor carefully evaluated the bids and determined that the auction process and procedures complied with the requirements of the California, Ontario, and Québec Cap-and-Trade Regulations (the Regulations). As provided below, the Market Monitor made the following determination:

The Market Monitor found that the auction was cleared consistent with the auction clearing rules in the Regulations and appropriate economic logic. The Market Monitor confirmed the clearing price and clearing quantities by qualified bidder for the Current Auction of 2016 and 2018 vintage allowances and for the Advance Auction of 2021 vintage allowances. The auction algorithm correctly applied the requirements of the Regulations covering the bid guarantee. The Market Monitor did not observe any breaches of security or communication protocols.

The Market Monitor recommends that CARB, MOECC, and MDDELCC approve the February Auction results.

Auction proceeds figures are not shown in this report because of the exchange rate process for determining final auction proceeds in a joint auction. Winning bids are submitted in one of two currencies – U.S. dollars (USD) or Canadian dollars (CAD). After receiving payment from the winning bidders, and using instructions from the linked jurisdictions (California, Ontario, and Québec), the Financial Services Administrator will exchange some amount of currency at then-prevailing market rates prior to transferring the auction proceeds to the jurisdictions.

The Financial Services Administrator will distribute auction proceeds to the jurisdictions after all qualified bidder payments are received. The jurisdictions will receive auction proceeds by March 20, 2018. As provided in the California Cap-and-Trade Regulation, 1 Ministry of Sustainable Development, Environment and the Fight against Climate Change.

CA-ON-QC Joint Auction Summary Results Report

February 28, 2018

sellers who consigned allowances in this auction will be paid the auction settlement price in USD for every consigned allowance sold. Information regarding jurisdiction-specific auction proceeds will be published after the auction is final.

California must receive auction proceeds only in USD. Ontario and Québec must receive auction proceeds only in CAD. Thus, the total amount of auction proceeds received by the jurisdictions from the sale of allowances may be higher or lower than the auction settlement price multiplied by allowances sold depending on the prevailing exchange rates in effect at the time of currency exchange prior to the distribution of auction proceeds. Each jurisdiction will separately post information on March 20, 2018, providing the final amount of proceeds transferred.

Auction Results

The first table below provides key data and information on the results of the auction. The second table provides qualified bid summary statistics from the auction. Please see Explanatory Notes after the list of qualified bidders for descriptions of all summary information.

Table 1: Auction Results for February 2018 Joint Auction #14

Current Auction Advance Auction

2016

Vintage 2018

Vintage Total Current 2021 Vintage

Total Allowances Available for Sale 14,894,520 83,321,400 98,215,920 12,427,950

CA Entity Consignment - 20,671,989 20,671,989 - CARB 12,961,816 31,175,277 44,137,093 8,020,000 MOECC - 23,743,316 23,743,316 3,026,450 MDDELCC 1,932,704 7,730,818 9,663,522 1,381,500

Total Allowances Sold at Auction 98,215,920 8,576,000

CA Entity Consignment - 20,671,989 20,671,989 - CARB 12,961,816 31,175,277 44,137,093 5,534,261 MOECC - 23,743,316 23,743,316 2,088,425 MDDELCC 1,932,704 7,730,818 9,663,522 953,314

Total Qualified Bids Divided by Total Allowances Available for Sale 1.21 0.69 Proportion of Allowances Purchased by Compliance Entities 92.1% 89.0% Herfindahl-Hirschman Index 436 436 1727


February 28, 2018

Qualified Bid Summary Statistics

All Qualified Bid Summary Statistics are determined in USD including all bids submitted in USD and CAD. The CAD equivalent of the USD Qualified Bid Summary Statistics is based on the Auction Exchange Rate. USD statistics are converted into CAD in whole cents to be able to compare statistics on a common basis.

Table 2: Qualified Bid Summary Statistics for February 2018 Joint Auction #14

Current 2016/2018 Vintage Advance 2021 Vintage USD CAD USD CAD Auction Reserve Price $14.53 $18.34 $14.53 $18.34 Settlement Price $14.61 $18.44 $14.53 $18.34 Maximum Price $54.27 $68.50 $22.19 $28.01 Minimum Price $14.53 $18.34 $14.53 $18.34 Mean Price $15.90 $20.07 $15.32 $19.34 Median Price $14.84 $18.73 $14.91 $18.82 Median Allowance Price $14.93 $18.84 $14.82 $18.71

Auction Exchange Rate (USD to CAD) 1.2622


February 28, 2018

List of qualified bidders for the February 2018 Joint Auction #14

A qualified bidder is an entity that completed an auction application, submitted a bid guarantee2 that was accepted by the Financial Services Administrator, and was approved by CARB, MOECC, or MDDELCC to participate in the auction. Qualified bidders may or may not have participated in the auction.

CITSS Entity ID Entity Legal Name ON2306 1329606 Ontario Limited QC2101 1443635 Ontario Inc CA1185 Aera Energy LLC CA1019 Air Liquide Large Industries U.S. LP CA1561 AltaGas Power Holdings (U.S.) Inc. QC2096 ArcelorMittal Produits longs Canada s.e.n.c. QC1724 Bell-Gaz ltée CA1180 BNSF RAILWAY COMPANY CA1913 BP Products North America Inc. CA1463 California Power Holdings LLc ON2676 Canadian Pacific Railway Company QC2580 Chauffage Benwell Fuels Ltd. CA1075 Chevron U.S.A. Inc. CA1037 City of Anaheim, Public Utilities Department CA1732 City of Long Beach, Gas and Oil Department CA1443 City of Los Angeles, Department of Airports CA1166 City of Vernon, Vernon Public Utilities CA2050 CP Energy Marketing (US) Inc. ON2509 Econo Petroleum Inc. ON2414 Elbow River Marketing Ltd ON2176 Enbridge Gas Distribution Inc. ON2458 Énergie Valero Inc / Valero Energy Inc QC1384 Énergie Valero Inc. ON2329 EPCOR Natural Gas Limited Partnership ON2253 Federated Co-operatives Limited CA1260 Flyers Energy, LLC CA1234 Fresno Cogeneration Partners, LP QC1750 Gazifère Inc. QC1764 Gestion Énergie Québec Inc. ON2162 Goodyear Canada Inc

2 The term “bid guarantee” refers to “bid guarantee” as described in the California Regulation, “financial guarantee” as defined in the Québec Regulation, and “financial assurance” as described in the Ontario Regulation.


February 28, 2018

CITSS Entity ID Entity Legal Name QC1374 Graymont (QC) Inc. ON2330 Great Lakes Greenhouses Inc. ON2240 Greater Toronto Airports Authority ON2203 Greenergy Fuels Canada Inc. CA2113 Hartree Partners, LP ON2315 Husky Oil Operations Limited ON2288 Hydro One Networks Inc. QC1359 Hydro-Québec CA1807 Idemitsu Apollo ON2189 Imperial Oil CA1665 IPC (USA), Inc. ON2210 Ivaco Rolling Mills 2004 L.P. CA1727 Jaco Oil Company CA1141 Kern Oil & Refining Co, ON2356 Koch Supply & Trading, LP QC1901 La Coop Carbone QC1431 Lantic Inc. ON2504 Larry Penner Enterprises Inc. QC2501 Le Groupe Harnois Inc QC1770 Les Pétroles Irving Commercial s.e.n.c QC1730 Les Produits Pétroliers Norcan S.E.N.C CA1830 Luminus Energy Partners, LLC ON2439 MacEwen Petroleum Inc. CA1104 Macquarie Energy LLC CA2111 MAG ENERGY SOLUTIONS INC. ON2187 Markham District Energy Incorporated ON2457 McDougall Energy Inc. CA2645 Mercuria Energy America, Inc. CA1107 Midway Sunset Cogeneration Company CA1239 Morgan Stanley Capital Group Inc. QC2128 Mr. Gas Limitee CA1302 Naftex Operating Company ON2324 Nature Fresh Farms Inc. CA1672 NextEra Energy Marketing LLC QC2107 NGL Supply Co. Ltd. CA1191 Northern California Power Agency CA1138 NRG Power Marketing LLC ON2304 Ontario Power Generation Inc. ON2294 P38 Energy Inc.


February 28, 2018

CITSS Entity ID Entity Legal Name CA1046 Pacific Gas and Electric Company CA2046 Pacific Gas and Electric Company CA1034 PacifiCorp CA2106 PBF Energy Western Region LLC ON2345 Pembina Infrastructure and Logistics LP CA1410 PETRO DIAMOND INCORPORATED CA1279 Phillips 66 Company CA1595 Pixley Cogen Partners, LLC ON2190 Plains Midstream Canada ULC CA1505 Powerex Corp. ON2348 Primemax Energy Inc. QC2663 PROPANE PLUS INC QC1960 Révolution VSC LP CA1204 Rio Tinto Minerals Inc. CA1834 River City Petroleum CA1102 Royal Bank of Canada CA1163 Sacramento Municipal Utility District (SMUD) CA1085 San Diego Gas & Electric Company CA1760 San Diego Gas and Electric Company CA1011 San Joaquin Refining Company, Inc. QC2568 Sanimax LOM Inc. CA2175 Sempra Gas & Power Marketing, LLC CA1366 Seneca Resources Corporation CA2358 Sentinel Peak Resources California, LLC CA1251 Shell Energy North America (US), L.P. CA1757 Shiralian Enterprises CA1054 Signal Hill Petroleum, Inc. CA1031 Silicon Valley Power (SVP), City of Santa Clara CA1029 Southern California Edison Company CA1170 Southern California Gas Company CA1674 Southwest Gas Corporation CA1804 Stan Boyett & Son, Inc. CA1921 Statkraft US LLC ON2313 Sun Gro Farms Inc. ON2151 Suncor Energy Products Partnership QC1873 Superior Gas Liquids Partnership ON2267 Superior Plus LP QC1486 TEMBEC CA1165 Tesoro Refining & Marketing Company LLC


February 28, 2018

CITSS Entity ID Entity Legal Name ON2299 The Corporation of the City of Kingston ON2381 The Corporation of the City of Kitchener CA1888 The Soco Group, Inc ON2220 TransCanada PipeLines Limited CA1216 Turlock Irrigation District ON2165 Union Gas Limited CA1419 Union Pacific Railroad Company CA1635 Valero Marketing and Supply Company CA1135 Vitol Inc. ON2514 W. O. Stinson & Son Limited CA1229 Walnut Creek Energy, LLC CA2056 Wild Goose Storage, LLC


February 28, 2018

Explanatory Notes: Qualified Bid Summary Statistics

Current Auction

Total Allowances Available for Sale: Total allowances available, by vintage, for purchase in the Current Auction, including allowances consigned by consigning entities and allowances offered for sale by the State of California, the Province of Ontario, and the Province of Québec.

Total Allowances Sold at Auction: Total allowances purchased, by vintage, in the Current Auction in metric tons.

Total Qualified Bids Divided by Total Allowances Available for Sale:

Total number of allowances (all vintages) included in all the qualified bids for the Current Auction allowances (regardless of bid price) divided by the total number of Current Auction allowances available in the auction.

Proportion of Allowances Purchased by Compliance Entities:

The total number of Current Auction allowances (by vintage) purchased in the Current Auction by Compliance Entities divided by the total number of Current Auction allowances sold in the Current Auction. A Compliance Entity is a Covered Entity or Opt-in Covered Entity as defined in California’s Cap-and-Trade Regulation, a Capped Participant as defined in Ontario’s Cap-and-Trade Regulation, or an Emitter as defined in Québec’s Cap-and-Trade Regulation.

Herfindahl–Hirschman Index (HHI): The HHI is a measure of the concentration of allowances purchased by winning bidders relative to the total sale of Current Auction allowances (regardless of vintage) in the auction. The percentage of allowances purchased by each winning bidder is squared and then summed across all winning bidders. The HHI can range up to 10,000, representing 100% of the current vintage allowances purchased by a single bidder (i.e.,100x100=10,000).


February 28, 2018

Qualified Bid Price Summary Statistics: Statistics are calculated from all the qualified bids for the Current Auction allowances (regardless of bid price). All price statistics are shown in USD and CAD.

Qualified Bids: The bids that remain after a qualified bidder’s submitted bids have been evaluated and reduced to meet all bidding limitations.

Auction Reserve Price: The minimum acceptable auction bid price for Current Auction allowances shown in both USD and CAD per metric ton.

Settlement Price: The Current Auction allowance price that resulted from the auction, in USD and CAD per metric ton.

Maximum Price: Highest qualified bid price.

Minimum Price: Lowest qualified bid price.

Mean Price: Average qualified bid price calculated as the sum of the qualified bid prices times the bid allowances at each qualified bid price divided by the sum of all qualified bid allowances.

Median Price: The price per metric ton calculated so that 50% of the qualified bid prices fall above and 50% fall below the median bid price.

Median Allowance Price: The price per metric ton calculated so that 50% of the qualified bid allowances fall above and 50% fall below the median allowance price.

Auction Exchange Rate (USD to CAD FX Rate):

The exchange rate in effect for the joint auction that is set the business day prior to the joint auction as the most recently available daily average exchange rate for USD and CAD as published by the Bank of Canada the day before the joint auction.


February 28, 2018

Advance Auction

The statistics presented in the report for the Advance Auction are computed in the same manner as the statistics computed for the Current Auction. No allowances are consigned by consigning entities to the Advance Auction.

APPENDIX 4

June 21, 2018

West Coast 30-Day Average Snapshot

Los Angeles CARBOB-R Basis (cts/gal)

Los Angeles CARB No. 2 Basis (cts/gal)

(Continued on Page 3)

Los Angeles Jet-Pipe LAX Basis (cts/gal)

SUBSCRIBER NOTICE: As part of our ongoing commitment to ensure our spot market assessments remain relevant, accurate and comprehensive, OPIS is declaring a two-week open-comment period on all of its spot-pricing methodologies. From Monday, June 18 to the close of business Friday, June 29, please direct comments about our spot methodologies to Energy- [email protected]. To review OPIS' existing methodology for its various products and reports, please visit www.opisnet.com/about/methodology.aspx. OPIS' editorial and management team will examine each comment and evaluate whether the feedback ought to result in an alteration, enhancement or clarification of our methodology. Although comments are welcome any time of the year, we will repeat our open-comment period every three months.

PNW GASOLINE RALLIES ON TALK OF PIPELINE DELAY6/21/2018- Oil prices moved in a somewhat chaotic tandem with headlines today and it was the OPEC rhetoric that dictated most of the action. Brent crude was driven sharply lower this afternoon when it was clear that all members of OPEC and the Russians had substantial differences to settle. A small bounce was seen after-hours across the complex but it was far from convincing. WTI was most influenced by a report this morning that talked of a larger- than-expected draw at Cushing that theoretically will show up in next week's EIA report. Very high refinery runs confirm the possibility of summer crude draws that might tighten U.S. markets even as production continues to ramp higher. August WTI managed to settle just 17cts/bbl below the Wednesday close at $65.54/bbl and it managed to tack on 30cts to this price in late afternoon action. Brent traded for under $73/bbl as NYMEX WTI settled, but it managed to rebound to $73.13/bbl as this column was going to press. Tomorrow may be an extraordinary day, given the wide range of options that OPEC, Russia and other producing delegates will have in Vienna. As NYMEX futures closed today, for

New York Mercantile Exchange at SettlementWTI Crude Oil ($/bbl)

Month Price ChangeAUG 65.54 -0.17SEP 64.86 -0.38OCT 64.19 -0.53

RBOB Unleaded (cts/gal)Month Price ChangeJUL 201.23 -1.12AUG 199.60 -1.52SEP 197.71 -1.77

ULSD (cts/gal)Month Price ChangeJUL 207.01 -3.70AUG 207.42 -3.65SEP 207.87 -3.67

Los Angeles Bay Area Pacific NorthwestPhysical Prices Basis Diff. Physical Prices Basis Diff. Physical Prices Basis Diff.

Snapshot of OPIS Mean West Coast Prompt Month Spot Pipeline Prices and Basis Differentials (cts/gal)

JET-WTG AVGB5AZRBOB-RAZRBOB-PCARB RFG-RCARB RFG-P

ProductULS No. 2CARB No. 2Sub-oct RegSub-oct PreCARBOB-R**CARBOB-P**JET **

Mean Change210.545 -2.165210.545 -2.165195.730 -2.120217.230 -2.120202.230 -2.120217.230 -2.120207.760 -2.950207.760 -3.010

-- -- -- --206.730 -2.120228.230 -2.120198.710 -1.560212.210 -1.560

Mean Change210.010 -3.700210.010 -3.700201.230 -1.120227.230 -1.120204.730 -1.120230.730 -1.120207.760 -2.950

-- -- -- ---- -- -- ---- -- -- ---- -- -- --

200.960 -0.660224.360 -0.660

Mean Change3.000 0.0003.000 0.0000.000 0.000

26.000 0.0003.500 0.000

29.500 0.0000.750 0.750-- -- -- ---- -- -- ---- -- -- ---- -- -- ---- -- -- ---- -- -- --

Mean Change22.500 -1.000

-- -- -- --11.500 3.00046.000 3.00011.500 3.00046.000 3.0004.750 0.750-- -- -- --

26.500 -1.000-- -- -- ---- -- -- ---- -- -- ---- -- -- --

233.510 -4.700-- -- -- ---- -- -- ---- -- -- ---- -- -- --

-- -- -- --

Mean Change229.510 -4.700

-- -- -- --212.730 1.880247.230 1.880212.730 1.880247.230 1.880211.760 -2.950

Full price display on page 2. Note: **L.A. Jet Fuel is JET-PipeLAX, Bay Area Jet Fuel is JET-Pipe, PNW CARBOB-R is Suboctane-Reg (FOB Seattle), PNW CARBOB-P is Sub-octane-Pre (FOB Seattle).

-- -- -- --5.500 -1.000

27.000 -1.000-- -- -- ---- -- -- --

Mean Change3.125 1.1253.125 1.125-5.500 -1.00016.000 -1.0001.000 -1.000

16.000 -1.0000.750 0.7500.750 0.690

L.A. 3-2-1 Crack Spread*Price ($/bbl) Change

12.72 0.79*Crack is based on midpoints for L.A. CARBOB Gasoline, CARB and ANS

© Copyright by Oil Price Information Service (OPIS) by IHS Markit, 2099 Gaither Road 5th Floor, Rockville, MD 20850. The OPIS West Coast Spot Market Report is published each business day. OPIS does not guarantee the accuracy of these prices. Reproduction of this report without permission is prohibited. To order copies or a limited copyright waiver, contact OPIS Customer Service at 888.301.2645 (U.S. only), +1 301.284.2000 or [email protected].

LA vs. SF CARBOB Differential Spread (cts/gal) LA vs. SF CARB Diesel Differential Spread (cts/gal)

Product Timing LowCARBOB-R 5.99 RVP JUL 203.10CARBOB-R 5.99 RVP AUG 201.71CARBOB-R 5.99 RVP SEP 200.51CARB No. 2 AUG 210.62JET-PipeLAX JUL 207.42JET-PipeLAX AUG 206.87

Mean Change203.225 -1.395202.210 -1.770201.010 -2.250211.120 -2.450207.920 -3.650207.370 -3.670

High203.35202.71201.51211.62208.42207.87

Low3.504.00

14.002.750.00-1.00

High3.755.00

15.003.751.000.00

Mean Change3.625 0.1254.500 0.000

14.500 0.0003.250 0.7500.500 0.000-0.500 0.000

Los Angeles Physical Forward Curve Prices Physical Prices Basis Differentials

*NOTE: L.A gasoline prices are WEST LINE, and S.F. gasoline prices are NORTH LINE-ZERO LINE. Las Vegas gasoline is represented by L.A. regular sub-octane and premium sub-octane. AZRBOB is the year around gasoline product for Arizona. Pacific Northwest gasoline and No.2 oil prices are FOB Portland Olympic Pipeline; PNW Jet Fuel is FOB Seattle Barge. CARB RFG-R and CARB RFG-P in L.A. and S.F. is not a fungible pipeline product, but a reflection of the value of blending CARBOB with 10% ethanol. Ethanol quotes on page 4 are for ethanol delivered rail car to West Coast locations.

OPIS West Coast Prompt Spot Pipeline Prices and Basis Differentials (cts/gal)

Product Timing LowULS NO. 2 JUL 210.42CARB No. 2 JUL 210.42JET-PipeLAX JUN 207.51Sub-Oct Reg 9.0 RVP JUN 194.73Sub-Oct Pre 9.0 RVP JUN 216.23AZRBOB-R 5.7 RVP JUN 205.73AZRBOB-P 5.7 RVP JUN 227.23CARBOB-R 5.99 RVP JUN 201.23CARBOB-P 5.99 RVP JUN 216.23CARB-RFG Reg JUN 197.71CARB-RFG Pre JUN 211.21

Mean Change210.545 -2.165210.545 -2.165207.760 -2.950195.730 -2.120217.230 -2.120206.730 -2.120228.230 -2.120202.230 -2.120217.230 -2.120198.710 -1.560212.210 -1.560

High210.67210.67208.01196.73218.23207.73229.23203.23218.23199.71213.21

Low3.003.000.50-6.5015.004.50

26.000.00

15.00-- ---- --

High3.253.251.00-4.5017.006.50

28.002.00

17.00-- ---- --

Mean Change Wt. Avg3.125 1.125 -- --3.125 1.125 210.5450.750 0.750 207.760-5.500 -1.000 -- --16.000 -1.000 -- --5.500 -1.000 -- --

27.000 -1.000 -- --1.000 -1.000 201.980

16.000 -1.000 -- ---- -- -- -- -- ---- -- -- -- -- --

Los Angeles Physical Prices Basis Differentials

Product Timing LowULS NO. 2 JUN 209.51CARB No. 2 JUN 209.51JET-Pipe JUN 207.51Sub-Oct Reg 7.8 RVP JUN 200.73Sub-Oct Pre 7.8 RVP JUN 226.73CARBOB-R 5.99 RVP JUN 204.23CARBOB-P 5.99 RVP JUN 230.23CARB-RFG Reg JUN 200.41CARB-RFG Pre JUN 223.81

Mean Change210.010 -3.700210.010 -3.700207.760 -2.950201.230 -1.120227.230 -1.120204.730 -1.120230.730 -1.120200.960 -0.660224.360 -0.660

High210.51210.51208.01201.73227.73205.23231.23201.51224.91

Low2.502.500.50-0.5025.503.00

29.00-- ---- --

High3.503.501.000.50

26.504.00

30.00-- ---- --

Mean Change Wt. Avg3.000 0.000 -- --3.000 0.000 210.0100.750 0.750 -- --0.000 0.000 -- --

26.000 0.000 -- --3.500 0.000 204.730

29.500 0.000 -- ---- -- -- -- -- ---- -- -- -- -- --

San Francisco Physical Prices Basis Differentials

Mean Change229.510 -4.700211.760 -2.950233.510 -4.700212.730 1.880247.230 1.880212.730 1.880247.230 1.880

High230.01212.01234.01214.23248.73214.23248.73

Low22.004.50

26.0010.0044.5010.0044.50

High23.005.00

27.0013.0047.5013.0047.50

Mean Change22.500 -1.0004.750 0.750

26.500 -1.00011.500 3.00046.000 3.00011.500 3.00046.000 3.000

Product Timing LowULS NO. 2 PMT JUN 229.01JET-Pipe PMT JUN 211.51B5 PMT JUN 233.01Sub-Oct Reg 7.8 RVP PMT JUN 211.23Sub-Oct Pre 7.8 RVP PMT JUN 245.73Sub-Oct Reg 9.0 (Seattle) PMT JUN 211.23Sub-Oct Pre 9.0 (Seattle) PMT JUN 245.73

Pacific Northwest Physical Prices Basis Differentials

2 of 7 @opis_westcoast | www.opisnet.com© OPIS, an IHS Markit company

OPIS West Coast Spot Market Report June 21, 2018

LocationThis Week

Last Week

Last Year

Week Change

Year Change

Gasoline 30,916 31,482 29,209 -566 1,707No. 2 Oil 12,581 12,558 12,577 23 4ULSD < 15ppm 11,454 11,403 11,505 51 -51Kerosene Jet 8,704 9,024 9,362 -320 -658Residual Fuel 4,964 4,505 4,774 459 190Crude Oil 56,515 56,754 56,232 -239 283Crude Input 2,620 2,655 2,385 -35 235

PADD 5 EIA Inventory - Week Ending 06/15

Note: Inventory levels are in thousands of barrels.

L.A. Paper Forward Curve Basis Differential (cts/gal)Product Timing LowCARBOB JUL

1.50

CARBOB AUG

2.50CARBOB Q3

5.00

CARBOB Q4

12.00CARB No. 2 JUL

1.75

CARB No. 2 AUG

2.00CARB No. 2 Q3

2.50

JET-PipeLAX JUL

0.00JET-PipeLAX AUG

-0.75

JET-PipeLAX Q3

-0.25

High2.503.506.00

13.002.753.003.501.000.250.75

Mean Change2.000 0.0003.000 0.0005.500 0.000

12.500 0.0002.250 0.0002.500 0.0003.000 0.0000.500 -0.125-0.250 -0.7500.250 0.000

example, there were some comments from the Iranian oil minister that cast doubt on a cohesive OPEC+ agreement. Diesel was a big loser during the formal session with July ULSD futures dropping 3.7cts/gal and settling at $2.0701/gal. August diesel settled 3.65cts/gal lower at $2.0742/gal. Both contracts rose about 0.75-0.8cts/gal in the 4 p.m. to 4:30 p.m. time frame. July RBOB settled at $2.0123/gal, losing 1.12cts/gal while August fell 1.52cts/gal to $1.996/gal. July added 0.46cts/gal after-hours, putting it at $2.0169/gal. Ethanol remained a very cheap component of finished motor fuel, with prices at some Midwestern hubs remaining shy of $1.40/gal. RINs had a robust recovery in the morning but fell back below 30cts in the afternoon for the 2018 vintage D6 category. --Tom Kloza, [email protected]

CARB GASOLINE STOCKS DIP TO 2018 LOW AT CALIF. REFINERIES: CEC Supplies of CARB gasoline at California refineries slid to a six-month low last week, according to a fresh round of data released this week by the California Energy Commission (CEC). For the week ending June 15, CARB RFG stocks dropped back 4.9%, to 6.301 million bbl, their lowest mark since mid-December, and third consecutive weekly drop. Year on year, however, supplies still maintained a healthy 21.8% lead above the same week in 2017. Regionally, stocks remained well above their five-year average in Northern California, while coming in around the midpoint of their five-year high-low band in Southern California. In terms of production, CARB gasoline output at Golden State refineries dropped below 1 million b/d for the first time in four weeks, off 5.2% to 972,000 b/d last week, although that was up 2.5% on the year. Gasoline blending component tallies fell as well, off just shy of 1% to 5.859 million bbl. Unlike CARB RFG, however, levels came in at 5.5% below where they were last year. Conventional gasoline supplies were tugged lower last week, down 15.1%, to 1.302 million bbl. Production levels shed 4%, to 149,000 b/d. Meantime, CARB distillate supplies were on the path downward with gasoline, dropping 11% last week to 2.269 million bbl, which was off 0.7% on the year, as output retreated 13.2%, to 244,000 b/d. Stocks of EPA and renewable diesel fell back 13.8%, to 1.134 million bbl, but that was still up a solid 27.8% year on year. Production was up 6.6%, to 109,000 b/d. Bucking the downward trend seen for supplies across the rest of the slate, stocks of jet fuel at California refineries jumped 13.9% last week, to 3.615 million bbl, a six-week high and some 21% above last year. Jet fuel production was up as well, adding on 15.2%, to 344,000 b/d. Notably, yesterday's Energy Information Administration report showed robust jet fuel imports into the West Coast/PADD5 region last week, with incoming cargoes up 31,000 b/d, to 147,000 b/d, their third-highest rate of 2018 and more than double the rate that was seen the year prior. --Kylee West, [email protected]

CHEVRON REPORTS FLARING AT RICHMOND REFINERY Chevron's 257,200-b/d Richmond, Calif., refinery was flaring yesterday afternoon, according to a filing with the California Emergency Management Agency (CalEMA). Flaring was ongoing at the time of the filing, around 3:45 p.m.


California CEC Inventory - Week Ending 06/15

LocationThis Week

Last Week

Last Year

Week Change

Year Change

CARB RFG 6,301 6,629 5,172 -328 1,129Non-Calif. Gasoline 1,302 1,534 1,218 -232 84

Gasoline Blend. Components 5,859 5,915 6,202 -56 -343

CARB-Diesel 2,269 2,550 2,284 -281 -15Other Diesel 1,134 1,316 887 -182 247Kerosene Jet 3,615 3,174 2,985 441 630Crude Oil 14,718 16,189 15,700 -1,471 -982Crude Input 12,529 12,885 11,104 -356 1,425Note: Inventory levels are in thousands of barrels.

PADD 5 EIA Gasoline Inventories - 12 Week Trend (thousand bbl)

PADD 5 EIA Distillate Inventories - 12 Week Trend (thousand bbl)




PT, the notification said, and had the potential to result in the release of sulfur dioxide emissions beyond the reportable quantity. No evacuations were necessary and the "facility continues to operate as normal," the filing noted. A Chevron spokesperson directed OPIS to a post on the company's Facebook page, which said that the flaring was due to "an upset at a processing unit," but did not specify the unit in question. The Richmond refinery provides fuel for 20% of cars on Northern California roads, and some 60% of planes at major airports in the Bay Area use jet fuel made there. --Kylee West, [email protected]

WEST COAST REFINED PRODUCTS LOGIC: L.A. CARBOB-R 5.99 RVP: June prompt was assessed at NYMEX July RBOB contract plus 1ct/gal, based on trades from Merc level to plus 2cts/gal. L.A. CARB No. 2: July prompt was assessed at the NYMEX August ULSD contract plus 3.125cts/gal, based on bids at plus 3cts/gal and offers at plus 3.25cts/gal. L.A. ULS No. 2: July prompt was assessed at the NYMEX August ULSD contract plus 3.125cts/gal, considering a flat relationship to L.A. CARB No. 2. L.A. JET-Pipe LAX: June prompt was assessed the NYMEX July ULSD contract plus 75pts/gal, based on trades from plus 50pts/gal to plus 1ct/gal. S.F. CARBOB-R 5.99 RVP: June prompt was assessed at the NYMEX July RBOB contract plus 3.5cts/gal, unchanged on the day, based on bids at Merc level and offers at plus 5cts/gal. S.F. CARB No. 2: June prompt was assessed at the NYMEX July ULSD contract plus 3cts/gal, unchanged on the day, with no bids or offers heard. PNW SUB-OCT Reg 7.8 RVP: June prompt was assessed at the NYMEX July RBOB contract plus 11.5cts/gal, based on trades from plus 10cts/gal and plus 13cts/gal. PNW ULS No. 2: June prompt was assessed at the NYMEX July ULSD contract at plus 22.5cts/gal, based on bids at plus 15cts/gal and offers at plus 23cts/gal.

WEST COAST REFINED PRODUCTS ANALYSIS: Pacific Northwest gasoline cash differentials leapt higher in Thursday's session, bolstered by talk of a shipping delay on the

WC/WTI-NYMEX/Atlantic Basin Crude Values ($/bbl)High73.6369.6364.07

Last73.3869.3863.82

Change-1.69-1.690.00

Product LowAlaska North Slope 73.13Line 63 69.13THUMS 63.57

High63.3266.2274.69

Last63.0765.5473.05

Change0.00-0.68-1.69

Product LowSJV 62.82WTI 64.34Brent 72.94

MarketDelivered LA BasisDelivered BakersfieldDelivered Bay Area

OPIS Spot NGL (cts/gal)Low81.6382.6374.63

High84.6384.6378.63

Low89.38

101.3889.38

High89.88

101.8889.88

Low89.38

101.3889.38

High89.88

101.8889.88

Propane N.Butane Butane Mix Isobutane N. GasolineLow

129.25-- --

129.25

High129.75

-- --129.75

Low-- --

154.00-- --

High-- --

156.38-- --

Date6/216/216/21

OPIS Spot FeedstocksProductLow Sulfur VGOHigh Sulfur VGOLight Cycle Oil

Low199.70195.70171.65

High201.70197.70173.65

Low-5.00-9.00

-38.90

High-3.00-7.00

-36.90

Low18.3516.652.50

High19.2017.503.25

Low10.508.80-- --

High11.359.65-- --

Range (cts/gal) Diff to 70/30 (cts/gal) Diff to WTI ($/bbl) Diff to ANS ($/bbl)

Today's Closing Singapore Prompt Jet Kerosene PricesMarketFOB Singapore ($/bbl)

Low84.16

High84.26

Mean84.21

Change-2.210

OPIS Ethanol Prices (cts/gal)Market TimingLA CI 79.90 PROMPTLA CI 79.90 ANYSF CI 79.90 PROMPTSF CI 79.90 ANYOregon CI 69.89 PROMPTWashington Eth. PROMPTPhoenix Eth. PROMPT

Low166.00166.00166.00166.00164.00157.50155.00

High168.00168.00168.00168.00166.00158.00158.00

Mean167.000167.000167.000167.000165.000157.750156.500

Change3.5003.5003.5003.500-1.000-1.2502.500

OPIS U.S. RIN Values (cts/RIN)Product YearCorn Ethanol 2017Corn Ethanol 2018Biodiesel 2017Biodiesel 2018Cellulosic 2017Cellulosic 2018Adv. Biofuel 2017Adv. Biofuel 2018

Low23.0028.0029.0050.50

220.00230.0027.0048.00

High27.0033.0033.0054.00

228.00238.0031.0052.00

Change6.2504.5002.0003.2502.0004.0002.0004.000

Mean25.00030.50031.00052.250

224.000234.00029.00050.000

U.S. West Coast Crude Oil Postings ($/bbl)LocationBuena VistaHunt. BeachKern RiverLong BeachMidway SunsetWilmingtonEffective Date

API PMTC26.0 70.7820.0 65.4213.0 62.4227.0 68.8713.0 65.9117.0 63.17

06/19

API MOBIL26.0 74.98-- -- -- ---- -- -- ---- -- -- --13.0 70.30-- -- -- --

06/20

API Chev26.0 74.93-- -- -- ---- -- -- ---- -- -- --13.0 70.38-- -- -- --

06/20LocationBuena VistaMidway SunsetEffective Date

API UNION 7626.0 73.2013.0 67.90

06/20

API STUSCO26.0 74.2013.0 69.65

06/20

OPIS California Low Carbon Fuel StandardProductCarbon Credit ($/MT)CI Pts Ethanol ($/CI)CI Pts Biodiesel ($/CI)Carbon CPG Diesel (cts/gal)Carbon CPG Dsl 95% (cts/gal) Carbon CPG Gasoline (cts/gal)Carbon CPG Gas 90% (cts/gal)

Low180.0000.014670.02270

8.648.21

13.4012.06

High185.0000.015080.02333

8.888.44

13.7812.40

Mean182.50000.0148750.023015

8.7608.325

13.59012.230

Change-0.5000

-0.000040-0.000065

-0.025-0.020-0.040-0.035



region's Olympic Pipeline, although the pipeline's operator said operations were normal. Trades for prompt June sub-octane were confirmed from 10cts/gal over the July RBOB futures contract this morning to plus 13cts/gal this afternoon, placing mean cash differentials up 3cts/gal from yesterday. That jump was enough to overturn futures losses, and outright prices ramped up 1.88cts/gal to $2.1273/gal on the day. "Olympic Pipeline delayed a day and a half, I heard," said one trader about the fundamentals behind stronger trading in the Pacific Northwest gasoline spot market. A spokesperson for BP, which operates the Olympic Pipeline system told OPIS that the pipeline was running and operating at normal rates, however. In California, despite the latest rounds of West Coast supply data from the California Energy Commission (CEC) and Energy Information Administration (EIA) showing a downturn in regional gasoline supplies last week, NYMEX premiums for Los Angeles CARBOB were pushed lower Thursday. June L.A. CARBOB traded today at parity to the July RBOB futures contract up to plus 2cts/gal, , with mean cash differentials down 1ct/gal from where they changed hands yesterday. Sources pointed out that although both the CEC and EIA showed regional gasoline supplies lower week on week in their latest reports, they also both continued to show stockpiles at ample annual surpluses, which traders appeared the be focusing on. Southern California refineries are also fairly healthy, with no upsets reported in recent weeks and planned seasonal maintenance having wrapped up, putting downward pressure on spot trading levels. In terms of outright prices, June L.A. CARBOB saw even steeper losses thanks to wilting futures, down 2.12cts/gal to $2.0223/gal by day's end. In the Bay Area, June San Francisco CARBOB was bid at "flat" to the July RBOB futures contract, and offered at plus 5cts/gal, leaving cash differentials at a 3.5ct/gal Merc premium, where they left off Wednesday. Cash prices followed futures 1.12cts/gal lower, to $2.0473/gal. June Los Angeles jet fuel was traded from 50pts/gal to 1ct/gal over the July ULSD futures contract, 75pts/gal stronger than yesterday's mean. Cash prices were still pulled lower by fading paper trade, off 2.95cts/gal, to $2.0776/gal. While Pacific Northwest ULSD for prompt June delivery didn't see any confirmed trades, cash differentials were pegged a penny lower, at 22.50cts/gal over the July ULSD futures contract based on bids at plus 15cts/gal and offers at plus 23cts/gal. Cash prices lost 4.70cts/gal to $2.2951/gal, but were still representing the most expensive ULSD in the country by a nearly 20ct/gal margin. Los Angeles CARB diesel rolled to July as prompt timing overnight, and today bids for prompt barrels were heard at 3cts/gal above August ULSD futures, with offers at plus 3.25cts/gal. That put cash differentials at plus 3.125cts/gal, 1.125ct/gal stronger than where June material left the board yesterday. Cash prices still unwound 2.165cts/gal, to $2.1055/gal. June San Francisco CARB diesel, which saw offers drop off precipitously in the final half-hour of yesterday's session, had a quiet session Thursday. With offers at plus 5.50cts/gal and no bids seen, diffs were steady at a 3ct/gal premium to the July Merc, as prices shadowed futures 3.70cts/gal lower, to just over $2.10/gal. --Kylee West, [email protected]

Legend

L.A. CARBOB-R

L.A. CARB No. 2

Basket of Racks

Retail Average

Today's Spot-to-Rack-to-Retail Snapshot

Change-0.012-0.004-0.021

Gasoline ($/gal) PriceBasket of Racks 2.332Retail Average 3.679L.A. CARBOB-R 2.022

Change-0.018-0.006-0.022

Diesel ($/gal) PriceBasket of Racks 2.356Retail Average 3.945L.A. CARB No. 2 2.105

30-Day Spot-to-Rack-to-Retail Trend

Gasoline

Diesel

Product PriceSummer CARB RFG-R 12.02Summer CARB RFG-M 11.99Summer CARB RFG-P 11.98CARB No.2 15.27B5 Biodiesel 14.51Propane 8.38LNG (cts/DGE) 10.91

Wk Avg11.98611.95611.94615.22814.4688.356

10.886

30-Day Avg11.96811.93911.92815.20714.4478.345

10.870

Prompt Calif. Cap-at-the-Rack Prices (cts/gal)

Mean14.92015.22014.91015.21014.89015.190

Vintage TimingPrevious Yr. PMT JUN '18Previous Yr. FWD DEC '18Current Yr. PMT JUN '18Current Yr. FWD DEC '18Next Yr. PMT JUN '18Next Yr. FWD DEC '18

High14.9315.2314.9215.2214.9015.20

Low14.9115.2114.9015.2014.8815.18

Calif. Carbon Allowance Assessments ($/mt)

NOTE: The methodology for the Rack-to-Retail Trend Snapshot can be found at: http://www.opisnet.com/about/methodology.aspx.



OPIS West Coast Spot Market Deal Log

Product Timing Differential Reference kbbl NotesCARBOB Regular 5.99 RVP Prompt JUN 0 Jul RBOB 25

CARBOB Regular 5.99 RVP Prompt JUN 0 Jul RBOB 25

CARBOB Regular 5.99 RVP Any JUL +3.75 Aug RBOB 25




CARBOB Regular 5.99 RVP Prompt JUN +1.00 Jul RBOB 25

CARBOB Regular 5.99 RVP Prompt JUN +2.00 Jul RBOB 25

AZ RBOB Unleaded Regular 5.7 Prompt JUN +4.50 CARBOB Regular 5.99

RVP

25 AZRBOB over LA CARBOB

Jet LAX Any JUL +0.50 Aug No2 25

Jet LAX Prompt JUN +0.50 Jul No2 25



Jet LAX Any JUL +0.50 Aug No2 25

Los Angeles

San FranciscoNo deals confirmed.

Pacific NorthwestProduct Timing Differential Reference kbbl NotesSub-Octane Unleaded 7.8 RVP Prompt PMT JUN +10.00 Jul RBOB 5

Sub-Octane Unleaded 7.8 RVP Prompt PMT JUN +12.00 Jul RBOB 10

Sub-Octane Unleaded 7.8 RVP Prompt PMT JUN +13.00 Jul RBOB 10

Los Angeles PaperProduct Timing Differential Reference kbbl NotesJet LAX Prompt JUL +0.50 Aug No2 25

Jet LAX Other AUG -0.25 Sep No2 45



Editors confirm and record deals done for gasoline and distillate products with a minimum pipeline size of 10,000 bbl in California and 5,000 bbl in the Pacific Northwest. As the majority of the market is done on an EFP basis, we follow deals as basis discounts or premiums to the New York Mercantile Exchange. We consider fixed-price deals only if they fall within the full-day differential range based off the NYMEX at settlement. Fixed price deals in California spot markets are converted to an EFP when reported and confirmed and then reapplied to the NYMEX settlement price. OPIS does publish "prompt" ranges, which are trades that reflect "any month / buyers option" transactions. "Buyers option" gives the buyer the choice of taking delivery in any of the four cycles in throughout the month. In Los Angeles, OPIS identifies the prompt Kinder Morgan cycle for timing clarity but ranges are buyer option/any month lifting. OPIS works with the Kinder Morgan Pipeline to determine the timing of the various cycles throughout the month. Typically, each month has four pumping cycles. In cases where it is close to the end of the months trading cycle, OPIS reserves the right to roll coverage forward to the more liquid month. For the Los Angeles market, OPIS follows the Kinder Morgan West Line, and in the Bay area the OPIS assessment is for the Kinder Morgan Zero Line. In the Pacific Northwest, prices are FOB Portland - Olympic Pipeline and jet fuel is FOB Seattle barge. For complete methodology, visit http://www.opisnet.com/about/methodology.aspx

U.S. West Coast Price Discovery Methodology

ANY QUESTIONS ABOUT THIS REPORT, CALL LISA STREET AT 832-679-7225. COVERAGE FOR WEEK OF 6/18: 6/18-6/19: LISA STREET; 6/20-6/22: KYLEE WEST

Global Head - Energy Analysis:Tom Kloza 732.730.2558 ICE IM: tkloza [email protected]

Director - Data, Pricing & Info:Ben Brockwell+1 732.730.2519ICE IM: [email protected]

VP - Content:Robert Gough+1 301.284.2138ICE IM: [email protected]

Director- Refined Products:Jennifer Brumback+1 727.202.6501ICE IM: [email protected]

Bridget Hunsucker +1 832.679.7163 ICE IM: bhunsucker1 [email protected]

Carbon Markets: Gulf Coast:Cory Wilchek+1 301.284.2110ICE IM: [email protected]

European Products:Paddy Gourlay(75) 95117236ICE IM: [email protected]

Andrew Atwal+1 301.284.1961ICE IM: [email protected]

Lisa Street+1 832.679.7225ICE IM: [email protected]

Managing Editor - West Coast and Carbon:

Midwest:Bayan Raji +1 832.679.7227ICE IM: braji1 [email protected]

Spencer Kelly+1 301.284.2022ICE IM: [email protected]

Ethanol/Biodiesel:

Jiwon Chung(65.63)373.519 ICE IM: jchung8 [email protected]

Asian Products:

Managing Editor - Northeast and Gulf Coast:Carly John+1 301.284.2114ICE IM: [email protected]

West Coast:Frank Tang+1 917.455.0926ICE IM: [email protected]

Kylee West +1 301.284.2108 ICE IM: kwest [email protected]

Northeast:Rachel Stroud-Goodrich+1 301.284.2190 ICE IM: rstroudgoodrich [email protected]

Market News Coverage:Denton CinquegranaEdgar AngBeth HeinsohnBrad AddingtonRajesh JoshiJeff BarberJordan Godwin



APPENDIX 5

CreditsFuel Type Units 2011Q1 Q2 Q3 Q4 2012Q1 Q2 Q3 Q4 2013Q1 Q2 Q3 Q4 2014Q1 Q2 Q3 Q4 2015Q1 Q2 Q3 Q4 2016Q1 Q2 Q3

Bio-CNG MT - - - - - - - - - 53 26,167 30,490 27,811 29,055 42,243 45,928 57,543 92,918 108,937 108,382 127,413 125,608 102,850

Bio-LNG MT 2,212 3,069 4,960 4,474 4,367 4,221 3,577 2,680 4,240 5,127 22,948 9,044 13,893 8,777 30,237 41,302 43,781 57,663 63,413 67,573 63,222 71,266 52,144

Fossil CNG MT 32,732 34,288 33,231 32,727 32,327 33,371 39,529 38,669 44,095 45,023 40,879 41,510 46,209 57,273 53,864 53,377 49,887 41,204 40,718 39,658 38,471 40,374 39,405

Fossil LNG MT 7,202 7,881 8,212 8,117 7,899 9,787 10,413 11,175 15,151 13,029 9,955 12,306 11,495 13,162 7,022 4,963 4,536 2,780 1,920 806 1,412 1,149 596

Hydrogen MT - - - - - - - - - - - - - - - - - - 50 24 33 28 1

Electricity - Onroad MT 459 1,293 2,455 3,536 4,519 5,560 7,294 9,611 15,051 19,516 25,039 34,347 41,753 51,092 59,366 69,119 73,708 78,072 91,036 94,924 125,196 132,740 142,262

Electricity - Offroad MT - - - - - - - - - - - - - - - - - - - - 82,350 84,452 84,421

Ethanol <65 MT 7,906 8,418 9,811 13,731 21,866 26,979 73,093 27,272 35,798 29,417 85,863 77,295 58,744 137,283 104,399 102,682 80,957 92,347 117,527 186,723 167,014 186,597 212,143

Ethanol 65-75 MT 12,874 12,778 31,617 34,976 9,447 12,596 72,356 74,463 85,589 48,437 132,135 29,506 22,168 18,960 20,559 21,845 3,513 871 3,247 32,697 506,443 549,405 605,984

Ethanol >75 MT 197,133 231,354 240,761 222,194 229,956 225,040 213,010 233,016 324,957 361,779 368,904 404,198 378,326 395,089 403,475 367,353 388,739 411,324 417,745 389,064 162,893 121,166 101,623

Biodiesel MT 12,300 21,555 22,424 27,988 35,382 41,919 34,052 37,994 47,386 123,072 130,475 265,737 169,218 183,308 154,934 210,540 195,615 287,973 364,501 365,821 322,607 392,318 470,922

Renewable Diesel MT 3,070 3,368 4,362 6,220 6,701 6,804 7,938 51,216 64,445 178,293 288,998 258,193 192,407 211,004 260,522 181,046 204,352 240,167 298,591 295,061 274,568 670,559 577,586

CARBOB MT - 553 1,245 184 163 927 2 - 2,510 2,663 68 488 1,062 1,844 837 17 3,285 266 2,158 1,459 831 9,181 17,351

Diesel MT 76 862 98 - 830 1,694 121 86 1,264 1,557 738 - 47 4,975 11,188 20 1,332 2,398 2,151 213 174 3,860 807

Project Type

Innovative Crude MT 845

Low Complexity/Low Energy Use Refinery

MT 37,942 38,215 38,997

Refinery Investment Credit

MT

Renewable Hydrogen Refinery Credit

MT

Administratively Adjusted Credits

MT (325) (348) (359) (19,696) 12,934 11,885 9,905 (13,137) 12,049 4,237 (11) (25,769) (1,842) (188) (382) (19,040) (4,284) (255) (1,001) (15,241) (882) (9,152) (17,519)

Total MT 275,639 325,071 358,817 334,451 366,391 380,783 471,290 473,045 652,535 832,203 1,132,158 1,137,345 961,291 1,111,634 1,148,264 1,079,152 1,102,964 1,307,728 1,510,993 1,567,164 1,909,687 2,417,766 2,430,418

Cummulative Bank 143,356 333,667 551,103 748,158 874,289 1,002,322 1,214,030 1,420,409 1,514,140 1,710,203 2,195,748 2,679,528 3,044,579 3,503,091 3,991,101 4,412,521 4,915,663 5,562,749 6,376,753 7,257,499 7,539,480 8,315,369 9,009,048

DeficitsFuel Type Units 2011Q1 Q2 Q3 Q4 2012Q1 Q2 Q3 Q4 2013Q1 Q2 Q3 Q4 2014Q1 Q2 Q3 Q4 2015Q1 Q2 Q3 Q4 2016Q1 Q2 Q3

Bio-CNG MT - - - - - - - - - - - - - - -

Bio-LNG MT - - - - - - - - - - - - - - - - - - - - - - -

Fossil CNG MT - - - - - - - - - - - - - - - - - - - - - - 11

Fossil LNG MT - - - - - - - - - - - - - - - - - - - - - - -

Hydrogen MT - - - - - - -

Electricity - Onroad MT - - - - - - - - - - - - - - - - - - - - - - -

Electricity - Offroad MT - - -

Ethanol <65 MT - - - - - - - - - - - 7,911 - 114 233 51 516 61 313 16,008 28,639 1,160 4,444

Ethanol 65-75 MT - - - - - - - - - 1,113 - 942 1,064 - 133 - 127 3 - - 3,443 12,474 32,879

Ethanol >75 MT 10,912 5,631 9,159 8,294 2,721 2,069 3,686 6,188 14,700 25,661 23,745 26,142 25,586 29,089 18,396 13,320 14,215 20,478 32,481 44,173 6,195 12,525 8,824

Biodiesel MT - 271 359 276 924 24 1 96 439 970 7,289 13,425 10,373 26,434 11,558 6,288 16,913 17,806 20,768 24,665 21,255 3,458 674

Renewable Diesel MT - - - - - - - - 48 128 7,700 4,743 232 - 399 162 298 1,416 1,823 1,155 8,060 1,189 93

CARBOB MT 95,253 98,992 100,463 99,485 186,996 192,643 193,200 202,006 437,209 483,643 486,650 488,597 455,882 480,051 496,025 516,229 463,914 500,975 514,683 488,172 1,347,800 1,373,035 1,415,623

Diesel MT 26,118 29,866 31,400 29,341 49,619 58,014 62,695 58,376 106,408 124,625 121,229 111,805 103,103 117,434 133,510 121,682 103,839 119,903 126,921 112,245 212,314 238,036 274,191

Total MT 132,283 134,760 141,381 137,396 240,260 252,750 259,582 266,666 558,804 636,140 646,613 653,565 596,240 653,122 660,254 657,732 599,822 660,642 696,989 686,418 1,627,706 1,641,877 1,736,739

Total VolumeFuel Type Unit 2011Q1 Q2 Q3 Q4 2012Q1 Q2 Q3 Q4 2013Q1 Q2 Q3 Q4 2014Q1 Q2 Q3 Q4 2015Q1 Q2 Q3 Q4 2016Q1 Q2 Q3

Bio-CNG dge - - - - - - - - - 7,057 2,581,062 2,991,956 2,721,301 2,872,577 4,603,224 5,242,459 6,712,019 10,178,847 11,654,608 12,063,341 14,114,208 14,362,989 15,018,681

Bio-LNG dge 236,835 328,532 530,962 478,928 468,876 453,202 384,063 287,824 439,275 612,128 2,546,125 1,052,125 1,639,132 1,064,074 4,714,630 5,841,140 5,923,238 6,985,481 7,473,917 8,307,511 7,365,131 8,462,020 8,055,031

Fossil CNG dge 12,882,107 13,284,682 13,100,333 12,816,759 12,797,724 13,185,688 15,819,989 15,375,874 15,442,500 15,804,549 14,516,004 14,958,965 16,677,906 20,212,717 19,745,523 19,375,567 18,259,642 15,138,256 15,055,919 14,647,691 12,925,468 13,298,188 13,399,693

Fossil LNG dge 4,873,272 5,280,822 5,590,548 5,575,898 5,700,917 6,766,131 7,146,246 7,770,974 9,049,261 7,133,604 5,511,333 6,737,719 6,364,147 7,378,353 4,195,237 2,980,243 2,596,102 1,654,703 1,302,595 496,127 760,255 605,486 538,326

Hydrogen gge - - - - - - - - - - - - - - - - - - 2,364 1,113 1,519 1,255 41

Electricity - Onroad gge 21,816 62,215 119,059 171,607 220,891 271,182 355,146 468,250 575,616 746,463 957,651 1,320,152 1,595,428 1,950,331 2,266,453 2,640,447 2,820,478 2,990,665 3,505,515 3,659,154 4,881,157 5,177,575 5,549,182

Electricity - Offroad gge - - - - - - - - - - - - - - - - - - - - 8,804,701 9,520,697 9,519,285

Ethanol <65 gal 2,705,490 2,880,741 3,357,486 4,699,117 7,533,361 9,294,798 16,703,192 9,395,869 11,497,145 9,448,077 26,956,570 21,828,420 19,277,677 41,294,315 36,352,506 35,963,633 28,064,075 32,413,548 40,064,634 56,256,011 50,171,587 60,881,376 68,542,888

Ethanol 65-75 gal 7,090,904 7,042,552 15,243,052 16,267,198 5,264,355 7,021,970 36,472,009 35,885,653 37,934,868 22,879,854 58,567,789 14,246,341 10,174,174 9,199,426 9,571,027 10,245,139 1,421,303 377,343 1,363,144 13,814,327 246,211,598 263,802,478 279,046,401

Ethanol >75 gal 346,146,902 377,927,936 370,271,893 336,520,737 357,494,627 358,600,620 312,843,923 317,987,817 319,375,839 325,718,270 304,339,530 326,086,265 321,334,268 314,187,595 346,607,917 330,646,430 342,983,907 357,708,903 342,544,994 282,213,601 118,007,434 72,543,882 56,482,040

Biodiesel gal 1,954,349 2,623,187 3,477,614 4,482,442 5,006,202 6,502,404 4,240,695 4,226,644 5,481,532 13,975,203 13,936,349 26,508,045 16,037,416 16,122,376 13,880,356 20,757,948 19,632,811 28,502,517 42,889,152 35,425,955 28,882,258 35,790,526 45,225,506

Renewable Diesel gal 325,266 356,935 462,226 659,061 712,233 723,231 843,696 6,535,747 8,182,191 23,562,582 40,409,392 44,784,857 25,871,987 26,668,165 36,487,197 23,817,520 27,058,770 40,776,364 51,165,569 46,155,232 43,663,408 75,711,296 63,846,512

CARBOB gal 3,187,578,208 3,294,107,893 3,320,247,258 3,323,012,827 3,189,895,483 3,273,254,068 3,298,505,633 3,449,039,221 2,991,042,519 3,298,305,567 3,336,711,067 3,347,165,477 3,118,899,568 3,279,279,406 3,395,731,910 3,539,912,317 3,158,733,458 3,433,573,365 3,514,621,395 3,337,634,199 3,435,633,723 3,478,700,777 3,566,483,826

Diesel gal 806,819,602 898,714,606 969,964,838 909,161,464 771,973,725 891,135,601 990,066,549 922,317,155 801,458,731 933,891,967 914,337,244 848,422,498 782,052,674 853,357,445 928,242,072 923,253,715 777,867,437 891,671,794 946,775,316 850,145,084 773,335,255 853,675,828 996,590,519

Ethanol CI Avg2011Q1 Q2 Q3 Q4 2012Q1 Q2 Q3 Q4 2013Q1 Q2 Q3 Q4 2014Q1 Q2 Q3 Q4 2015Q1 Q2 Q3 Q4 2016Q1 Q2 Q3

Ethanol 88.48 87.8 87 86.6 86.8 86.78 83.48 84.27 83.6 83.81 80.24 81.84 82.83 80.4 82.03 82.38 82.86 82.75 81.8 78.87 72.87 70.83 69.98

Biodiesel CI Avg

2011Q1 Q2 Q3 Q4 2012Q1 Q2 Q3 Q4 2013Q1 Q2 Q3 Q4 2014Q1 Q2 Q3 Q4 2015Q1 Q2 Q3 Q4 2016Q1 Q2 Q3

Biodiesel 44.57 30.14 44.16 45.45 39.68 43.15 30.58 23.16 29.14 27.78 26.97 21.59 18.52 19.91 15.16 19.04 24.88 21.9 33.51 20.7 17.25 13.83 17.53

Renewable Diesel CI Avg


Renewable Diesel 19.65 19.65 19.65 19.65 19.65 19.65 19.65 32.11 34.65 37.1 41.86 52.18 38.16 34.32 40.53 36.84 37.26 50.63 51.06 46.56 52.89 31.78 30.2

Bio-CNG CI Avg


Bio-CNG 32.15 14.82 15.85 15.99 16.58 22.07 24.73 25.91 21.34 19.63 22.25 23.76 25.86 39.95

Bio-LNG CI Avg


Bio-LNG 15.56 15.56 15.56 15.56 15.56 15.56 15.56 15.56 15.56 25.06 20.32 23.42 24.31 26 39.65 34.76 32.38 25.96 24.25 26.86 26.14 27.34 41.83

Estimated Petroleum Fuel Displaced

Unit Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3

Estimated Petroleum Fuel Displaced by Alternative Fuels Supported by LCFS

gge

272081361 296412229 298637862 277662760 287550865 294112710 288856701 293544957 302716667 320285638 363387769 364206745 326890428 343289336 373902147 358062252 357922528 396276796 422018170 386683676 460500096 497347056 500644826

2011 2012 2013 2014 2015

2011 2012 2013 2014 2015

2011 2012 2013 2014 2015

2011 2012 2013 2014 2015

2016

2011 2012 2013 2014 2015

2011 2012 2013 2014 2015

20162011 2012 2013 2014 2015

2016

20162011 2012 2013 2014 2015

2011 2012 2013 2014 2015

APPENDIX 6

Period 2009 2010(2) 2011 2012(3) 2013 January

February March

1,212,487,451

1,121,912,239 1,279,318,383

1,172,751,145

1,130,899,111 1,272,640,468

1,204,096,468

1,131,200,286 1,237,807,877

1,165,769,473

1,154,582,904 1,237,090,205

1,169,694,474

1,097,679,113 1,237,136,829

April

May

June

1,247,536,585

1,291,314,554

1,233,792,786

1,254,775,791

1,289,885,802

1,255,432,005

1,204,833,929

1,237,497,276

1,220,789,762

1,183,756,696

1,277,903,245

1,230,283,199

1,207,530,235

1,259,306,999

1,216,894,566

July

August

September

1,284,485,838

1,267,878,839

1,219,279,786

1,273,677,743

1,291,164,966

1,237,725,377

1,245,916,412

1,269,658,460

1,211,495,250

1,230,261,987

1,255,713,656

1,194,012,527

1,241,703,883

1,275,028,439

1,196,126,013 October

November

December

1,245,985,450

1,170,268,541

1,237,021,075

1,256,958,886

1,200,852,654

1,232,128,839

1,233,852,207

1,169,249,871

1,233,735,965

1,220,857,664

1,162,560,411

1,192,002,207

1,242,839,671

1,172,066,456

1,216,937,753

1st Quarter 2nd Quarter 3rd Quarter

4th Quarter

3,613,718,073 3,772,643,925 3,771,644,463

3,653,275,066

3,576,290,724 3,800,093,598 3,802,568,086

3,689,940,379

3,573,104,631 3,663,120,967 3,727,070,122

3,636,838,043

3,557,442,582 3,691,943,140 3,679,988,170

3,575,420,282

3,504,510,416 3,683,731,800 3,712,858,335

3,631,843,880 Total 14,811,281,527 14,868,892,787 14,600,133,763 14,504,794,174 14,532,944,431

(1) Fiscal Year

Period 2014

14,801,303,851

2015

14,728,734,063

2016

14,613,293,887

2017(4)

14,443,650,668

2018 January

February

March

1,174,580,507

1,107,924,666

1,246,115,090

1,216,497,576

1,148,447,060

1,287,581,812

1,221,372,599

1,224,425,194

1,300,298,942

1,228,865,654

1,161,081,695

1,343,199,458

1,234,194,559

1,184,216,689

April

May June

1,210,319,338

1,272,686,261 1,217,309,896

1,254,633,595

1,278,463,759 1,262,121,393

1,274,448,751

1,323,331,105 1,295,550,673

1,286,102,023

1,355,006,663 1,317,369,673

July August

September

1,250,901,273 1,285,170,048

1,222,879,913

1,279,082,202 1,315,596,270

1,264,298,745

1,331,548,556 1,363,294,300

1,288,772,790

1,335,680,621 1,314,831,466

1,298,211,568

October

November

December

1,271,773,798

1,194,414,902

1,248,556,730

1,303,962,044

1,224,602,888

1,270,061,496

1,318,576,424

1,251,416,220

1,294,921,318

1,338,314,040

1,239,653,352

1,361,209,707

1st Quarter

2nd Quarter 3rd Quarter 4th Quarter

3,528,620,263

3,700,315,495 3,758,951,234 3,714,745,430

3,652,526,448

3,795,218,747 3,858,977,217 3,798,626,428

3,746,096,735

3,893,330,529 3,983,615,646 3,864,913,962

3,733,146,807

3,958,478,359 3,948,723,655 3,939,177,099

2,418,411,248

0 0 0

Total 14,702,632,422 15,105,348,840 15,487,956,872 15,579,525,920 2,418,411,248 (1) Fiscal Year

Notes:

14,573,637,973 14,921,441,859 15,297,030,909 15,540,154,774 10,306,312,002

Above figures reported are net of BOE audit assessments, refunds, amended/late returns and State Controllers Office refunds. (1) Fiscal year reports year ending in column year. Example, FY09/10 is reported in the column for 2010. (2) The March 2010 figures include 12.1 million gallons in refunds.

(3) The May 2012 figures include 27.9 million gallons in audit assessments and amended returns.

(4) The August 2017 figures include 62.3 million gallons in refunds.

The December 2017 figures include 62.5 million gallons in audit assessments.

Net Taxable Gasoline Gallons (Including Aviation Gasoline)

APPENDIX 7

PERIOD 2009(2) 2010(3) 2011(4) 2012 2013 JANUARY 197,283,143 188,705,030 191,265,324 181,003,409 196,055,634 FEBRUARY 181,765,826 195,563,666 176,452,952 184,093,977 184,893,748 MARCH 240,173,563 234,903,120 218,708,007 231,409,056 240,932,088 APRIL MAY

219,920,756 209,471,285

204,318,970 205,110,704

210,355,533 213,094,669

197,559,932 228,146,495

208,511,279 232,587,197

JUNE 223,555,180 251,256,188 243,344,006 250,024,610 254,803,659 JULY 215,772,974 219,318,120 223,447,912 217,801,078 220,516,843 AUGUST 193,949,828 205,138,797 227,911,450 223,131,870 239,921,789 SEPTEMBER 244,412,169 244,810,944 261,926,745 237,216,063 255,249,242 OCTOBER 224,450,417 215,881,238 226,187,671 234,650,829 238,359,920 NOVEMBER 197,664,779 207,283,073 196,225,303 191,711,268 209,293,623 DECEMBER 231,720,029 218,365,238 233,614,553 226,797,044 259,180,630

1ST QTR. 619,222,532 619,171,816 586,426,283 596,506,442 621,881,470 2ND QTR 652,947,221 660,685,862 666,794,208 675,731,037 695,902,135 3RD QTR. 654,134,971 669,267,861 713,286,107 678,149,011 715,687,874 4TH QTR. 653,835,225 641,529,549 656,027,527 653,159,141 706,834,173

TOTAL 2,580,139,949 2,590,655,088 2,622,534,125 2,603,545,631 2,740,305,652 (1) Fiscal Year 2,587,827,874 2,564,017,901 2,641,551,113 2,649,091,757

PERIOD 2014(5) 2015(6) 2016(7) 2017(8) 2018 JANUARY 201,991,138 197,537,337 217,753,398 211,288,592 209,459,967 FEBRUARY 187,594,207 193,779,164 212,731,245 208,211,775 201,325,805 MARCH 231,193,811 263,113,370 267,381,356 300,872,658 APRIL MAY JUNE

214,171,368 231,099,276 253,209,845

220,397,637 220,949,857 257,066,137

248,059,116 216,937,963 273,005,811

238,088,542 252,965,840 309,004,483

JULY 242,734,702 240,176,558 251,724,789 250,097,283 AUGUST 239,718,243 246,344,768 269,281,410 270,761,991

SEPTEMBER 264,722,388 270,451,396 292,758,016 288,959,723 OCTOBER 246,623,042 246,699,175 254,148,157 269,839,821 NOVEMBER 209,521,386 218,883,579 234,619,758 219,193,257 DECEMBER 253,600,951 249,260,828 266,869,607 304,524,782

1ST QTR. 620,779,156 654,429,871 697,865,999 720,373,025 410,785,772 2ND QTR 3RD QTR.

698,480,489 747,175,333

698,413,631 756,972,722

738,002,890 813,764,215

800,058,865 809,818,997

0 0

4TH QTR. 709,745,379 714,843,582 755,637,522 793,557,860 0 TOTAL 2,776,180,357 2,824,659,806 3,005,270,626 3,123,808,747 410,785,772

(1) Fiscal Year 2,741,781,692 2,809,764,214 2,907,685,193 3,089,833,627 2,014,162,629

TAXABLE DIESEL GALLONS 10 YEAR REPORT NET OF REFUNDS

Notes: Above figures reported net of BOE audit assessments, refunds and amended/late returns. (1) Fiscal year reports year ending in column year. Example, FY 09/10 is reported in the column for 2010. (2) The June 2009 figures include 18.4 million gallons in refunds.

The July 2009 figures include 9.6 million gallons in refunds.

The August 2009 figures include a 19.3 million gallon non-recurring credit. (3) The February 2010 figures include 11.3 million gallons in billed assessments.

The March 2010 figures include 8.7 million gallons in refunds.

The May 2010 figures include 13.2 million gallons in refunds. (4) The March 2011 figures include 19.5 million gallons in refunds. (5) The March 2014 figures include 17.1 million gallons in refunds. (6) The March 2015 figures include a decrease of 11.7 million gallons in refunds, and an increase

of 23.9 million gallons reported by suppliers. (7) The August 2016 figures include an increase of 23.9 million gallons reported by suppliers.

The September 2016 figures include an increase of 21.3 million gallons reported by IFTA Fuel program.

The November 2016 figures include an increase of 17.2 million gallons reported by suppliers.

The December 2016 figures include an increase of 32.7 million gallons reported by IFTA Fuel program. (8) The March 2017 figures include an increase of 28.5 million and 4.3 million gallons reported by suppliers and IFTA Fuel program respectively.

The May 2017 figures include an increase of 31.1 million reported by suppliers and a decrease in refunds of 5.4 million gallons.

The June 2017 figures include an increase of 21. million and 7.7 million gallons reported by suppliers and IFTA Fuel program respectively.

The October 2017 figures include an increase of 18.1 million and 2.6 million gallons reported by suppliers and IFTA Fuel program respectively.

The December 2017 figures include an increase of 28 million and 42.3 million gallons reported by suppliers and IFTA Fuel program respectively

APPENDIX 8

WEEKLY REFINERY PRODUCTION AND STOCKS LEVELSWEEKLY FUELS WATCH REPORTAll Quantities in (000s of Barrels)

01/06/17 01/13/17 01/20/17 01/27/17 02/03/17 02/10/17

Crude Oil 12,070 11,725 11,588 10,607 11,208 10,196

Motor Gasoline

Other Finished 848 503 867 1,136 1,052 624Oxygenated 0 0 0 0 0 0Reformulated 6,952 6,602 6,866 6,405 6,246 6,637

Total Gasoline 7,800 7,105 7,733 7,541 7,298 7,261

Jet Fuel: Kerosene-Naphtha 2,053 1,886 2,010 1,996 2,109 1,942

Distillates

CARB-Diesel 2,107 1,667 1,776 1,554 1,886 1,129760 662 627 754 621 969

Total Distillate 2,867 2,329 2,403 2,308 2,507 2,098

Residual 313 664 567 673 585 565

Refinery StocksCrude Oil 14,943 14,580 15,130 14,301 15,321 16,935

Motor Gasoline

Other Finished 1,303 1,025 1,016 1,164 1,119 1,285Oxygenated 0 0 0 0 0 0Reformulated 6,166 6,350 6,627 6,217 6,326 6,324

Total Gasoline 7,469 7,375 7,643 7,381 7,445 7,609

Gasoline Blending Components 4,946 5,419 5,628 5,391 5,492 5,518

Jet Fuel: Kerosene-Naphtha 3,237 3,254 3,166 3,071 3,161 3,153

Distillates

CARB-Diesel 2,733 2,658 2,997 3,103 3,220 2,7691,356 1,215 1,269 1,007 1,285 1,565

Total Distillate 4,089 3,873 4,266 4,110 4,505 4,334

Residual 860 1,151 1,216 1,455 1,584 1,353

Other Diesel Fuel*

Refinery Input

Refinery Production

Other Diesel Fuel*

*Other diesel fuel includes only EPA diesel and Renewable diesel.

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