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September 29, 2016

Posted  October 24, 2016

Chemoil Corporation agreed to retire 65 million renewable fuel credits to resolve alleged violations of the Renewable Fuel Standard program.  The current market value of the credits — along with an additional 7.7 million renewable identification numbers already retired by Chemoil in the lead up to this settlement — is more than $71 million.  Chemoil also will pay a $27 million civil penalty under the settlement, the largest in the history of the EPA’s fuel programs.  The RFS program requires exporters to retire RINs for renewable fuel like biodiesel, because the fuel exported is no longer available for blending into United States’ fossil fuel supply and, for that reason, cannot be used to meet the renewable fuel volume mandate established by Congress.  If exporters fail to retire the appropriate number and type of RINs associated with the exported fuel, it artificially inflates the volume of renewable fuel available for blending in this country and the number of RINs available to meet the renewable fuel volume mandate.  According to the government, ensuring exporters comply with the regulations for RIN retirement is critical to the proper functioning and integrity of the RFS program.  DOJ

Tagged in: Environmental Fraud, Tax Credit and Deduction Fraud,