WASHINGTON - The E.P.A. (EPA) and the U.S. Department of Justice (DOJ) today announced a settlement with Utah-based Washakie Renewable Energy, LLC, that resolves allegations that the company generated in excess of 7.2 million invalid renewable fuel credits worth in excess of $2 million.
From January to October of 2010, Washakie generated in excess of 7.2 million Renewable Identification Numbers, or RINs, and reported to E.P.A. that it produced biodiesel associated with those RINs at its Plymouth, Utah facility. During that time, however, Washakie did not produce any biodiesel at the Plymouth facility. The biodiesel associated with the 7.2 million RINs would have accounted for a reduction of emissions equivalent to in excess of 30,000 metric tons of carbon dioxide. Washakie has purchased and retired from the market an equivalent number of RINs, which achieved this reduction of emissions.
Renewable fuel producers and importers generate RINs for each gallon of renewable fuel in the U.S. market that meets greenhouse gas emissions reduction requirements established under the Renewable Fuel Standard. Washakie will pay a $3 million penalty under the settlement, which was lodged today in the U.S. District Court for the District of Columbia.
"This case is another example of EPA's commitment to maintain the integrity of the Renewable Fuel Standard program," said Cynthia Giles, E.P.A. Assistant Administrator for Enforcement and Compliance Assurance. "Making sure producers are supporting their claims with production of actual renewable fuels is critical to reducing greenhouse gas emissions that are fueling climate change."
"The defendant made quite a profit by failing to adhere to the requirements of the Renewable Fuel Plan regulations," said Assistant Attorney General Cruden. "The penalty here sends the message that renewable fuel producers will be held accountable for meeting all legal requirements. The Department of Justice remains committed to taking the profit out of illegal activity."
This is the 1st case under the 2nd Renewable Fuels Requirements in which, as a part of a settlement, E.P.A. secured the replacement of invalid RINs by the producer of those RINs. Because Washakie purchased and retired an equal amount of RINs to the number identified as invalid and used for compliance purposes, E.P.A. does not project to request that the obligated parties who used the invalid RINs replace them. This reduces the burden on the parties that purchased and used the RINs for compliance purposes.
E.P.A. initially discovered these violations during an E.P.A. inspection of the Washakie facility in Plymouth, Utah in 2010, and uncovered additional information concerning the violations in Washakie's response to information requests and additional investigative work by the agency.
E.P.A. is responsible for developing and implementing regulations to ensure that transportation fuel sold in the U.S. contains a minimum volume of renewable fuel. The Renewable Fuel Standard Plan - created under the Energy Policy Act of 2005 - was developed in collaboration with refiners, renewable fuel producers, and many other stakeholders. It was expanded and strengthened under the Energy Independence and Security Act of 2007, which was designed to encourage the blending of renewable fuels into our nation's motor vehicle fuel supply, and reduce the nation's dependence on foreign oil, help grow the nation's renewable energy industry, and achieve greenhouse gas reductions.
To read the settlement, or for more information about the case, visit: To read the settlement, or for more information about the case, visit: http://www2.epa.gov/enforcement/washakie-renewable-energy-llc-clean-air-act-settlement.
For more information on the Renewable Fuel Standards, visit: http://www.epa.gov/oms/fuels/renewablefuels/.
