For any calendar year for which the projected volume of cellulosic biofuel production is less than the applicable volume of cellulosic biofuel set forth in Clean Air Act (CAA) section 211(o)(2)(B)(III), EPA must reduce the required volume of cellulosic biofuel for that year to the projected volume, and must provide obligated parties the opportunity to purchase cellulosic waiver credits. The price of these credits is determined using a formula specified in the CAA. Credits cannot not be traded or banked for future use. They must be used to meet the cellulosic biofuel standard for the year that they are offered.

For price per credit, see https://www.epa.gov/renewable-fuel-standard/cellulosic-waiver-credits-under-renewable-fuel-standard-program

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