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through the designated registry associated with the Deliverable Product as 

defined in Appendix A. The delivery is processed between the Participants 

per the rules of the Clearing House in accordance with CFTC Regulation 

39.12(b)(7). The Deliverable Products are delivered between the 

Participants. Nodal Exchange does not take possession of the Deliverable 

Products at any time. 

3.5.2 All Participants have the ability to trade the expiring contracts until the 

end of the Last Trading Day in order to close out any open positions to 

avoid physical delivery obligations upon expiration. For positions that 

remain open at the end of the Last Trading Day, Participants will be 

required to physically deliver the Deliverable Product and to confirm to 

the Exchange that delivery has occurred. 

3.6 Additional Requirements for Participants engaging in the physical delivery of 

California Low Carbon Fuel Standard (“LCFS”), and Oregon Clean Fuels 

Program (“Oregon CFP”), and Washington Clean Fuels Program 

(“Washington CFP”) futures contracts 

3.6.1 The Exchange may establish such requirements and conditions for 

approval of eligible deliverers as it deems necessary. Participants wishing 

to engage in physical delivery of LCFS, or Oregon CFP, or Washington 

CFP, must meet the relevant eligibility criteria set forth below as well as 

those provided in the Participant Application to Physically Deliver on the 

respective contracts. (see 3.5.3 below).

Eligible Participants (i.e. Participant buyers and Participant sellers) must 

meet each criterion under items (a), through (d) and deliverers (i.e. 

Participants sellers) must meet the additional criteria provided under item 

(e). 

(a) Must be a Participant of Nodal Exchange in good standing, and; 

(b) Must have an active California LCFS Reporting Tool and Credit 

Bank & Transfer System (LRT) account, or an active Oregon CFP 

Online System account, or an active Washington Fuel Reporting 

System (WFRS) account. LRT, or Oregon CFP Online System, or 

WFRS account information must be on file with the Exchange, and; 

(c) Must not be subject to ongoing California Air Resources Board 

(CARB), or Oregon Department of Environmental Quality, or 

Washington Department of Ecology enforcement activities related 

to the generation or trade of LCFS, or Oregon CFP, or Washington 

CFP credits, and; 

(d) Must agree to the California LCFS, or Oregon CFP, or Washington 

CFP futures contracts post-delivery invalidation procedures as set 
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forth in the Participant Application to Physically Deliver California 

LCFS, and Oregon CFP, and Washington CFP Futures Contracts. 

(e) To participate in delivery, Participant sellers must meet the 

Exchange’s eligibility criteria as set forth in the Participant 

Application to Physically Deliver California LCFS, and Oregon 

CFP, and Washington CFP Futures Contracts. 

3.6.2 In addition to the Participant criteria set forth in Rules 3.3 and 3.4, each 

Participant who engages in the physical delivery of California LCFS, and 

Oregon CFP, and Washington CFP futures contracts must maintain the 

requirements set by the Exchange. 

3.6.3 Each Participant who engages in physical delivery of California LCFS,

and Oregon CFP, and Washington CFP futures contracts must complete 

the Participant Application to Physically Deliver California LCFS, and 

Oregon CFP, and Washington CFP Futures Contracts and subsequently be 

approved by the Exchange. 

3.6.4 Each Participant who meets the qualifications to engage in the physical 

delivery of LCFS, and Oregon CFP, and Washington CFP credits as a 

Participant seller consents that the Exchange may name the Participant on 

an eligible deliverer list, which may be made available to Participants in 

California LCFS, and Oregon CFP, and Washington CFP futures contracts 

upon request. The Exchange reserves the right to remove Participants from 

the eligible deliverer list at any time. Eligible deliverers will be reviewed 

as needed and at minimum at a frequency commensurate with delivery. 

Any Participant wishing to become an eligible deliverer may apply at any 

time. No additional eligible deliverers will be added to the list within the 

contract expiration month. 

3.6.5 A Participant seller who does not meet the requirements of Rule 3.65 will 

not be eligible to engage in physical delivery of California LCFS, and 

Oregon CFP, and Washington CFP futures contracts. A Participant seller 

not eligible to deliver LCFS, and Oregon CFP, and Washington CFP

futures contracts must ensure all of its expiration month positions in 

LCFS, and Oregon CFP, and Washington CFP futures contracts have been 

closed at the latest on the fifth business day before the first delivery day 

of the expiring contract. 

3.6.6 If a Participant fails to comply with Rule 3.65.5, Nodal Exchange may use 

any and all measures to close the positions, which are ineligible for 

delivery. This would occur without prior notification and at the expense 

of the Participant. 

3.7 Additional Requirements for Participants making or taking physical delivery 

of Renewable Identification Numbers (“RINs”)