EPA Discovers More RIN Fraud

The U.S. Environmental Protection Agency said it has invalidated 33.5 million renewable-fuel credits sold by an Indiana company for biofuel it didn’t produce, the fourth time the agency has alleged fraud in the program, Bloomberg News reported.

The filing follows fraud charges filed against the former owners of the Indiana-based E-Biofuels LLC in September. The U.S. Justice Department accused them of falsely claiming its products qualified under government incentives for renewable fuels. At today’s value of about 40 cents each for biodiesel, the invalidated RINs would have been worth about $13.4 million

EPA's action may further roil the market for credits used by refiners such as Valero Corp. and Exxon Mobil Corp. to meet government renewable-fuel requirements, according to Bloomberg. Under U.S. law, refiners such as Exxon and Valero must blend ethanol or other biofuels into their fuels. EPA rules allow refiners to buy credits from other producers to fulfill their obligations in lieu of making the fuel themselves.

Before this latest action, the agency had said three companies produced a total of 140 million fraudulent Renewable Identification Numbers, or RINs. 

Mindy Long's photo

Mindy Long

Before launching a full-time freelance career, Long edited NATSO's Stop Watch magazine. Prior to that Long worked as a staff reporter for Transport Topics, a weekly trade newspaper, covering freight transportation, fuel and environmental issues. In addition to covering the transportation sector, Long has written, reported and edited for a variety of media outlets. She was the Washington correspondent for WCAX-TV (CBS) in Burlington, Vt., a criminal court reporter in Chicago and a freelance copy editor for Kiplinger’s Personal Finance magazine in Washington D.C. Long hold a master’s degree from Northwestern University’s Medill School of Journalism in Evanston, Ill., and a bachelor’s degree in Communications from Westminster College in Salt Lake City.More
Source:
NATSO News Weekly (NNW)

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