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Civil Enforcement of the Renewable Fuels Standard (RFS) Program

The Renewable Fuels Standard (RFS) program requires producers or importers of renewable fuel to generate fuel credits, known as Renewable Identification Numbers (RINs), in proportion to the amount and type of renewable fuel they produced or imported. The RFS Program also requires that non-renewable fuel refiners and importers, known as obligated parties, and renewable fuel exporters obtain valid RINs and retire those RINs each year by submitting them to the EPA. Congress adopted the RFS Program to reduce the nation’s dependence on foreign oil, help grow the nation’s renewable energy industry and achieve significant greenhouse gas emissions reductions. The EPA is charged with developing the RFS program and enforcing its requirements.

In order to protect the program’s integrity and maintain a level playing field for regulated companies, the EPA is pursuing enforcement actions against renewable fuel producers and importers that generated invalid RINs. The EPA has also implemented an Interim Enforcement Response Policy (PDF) (4pp, 634KB) for obligated parties or renewable fuel exporters who used the 2010 and 2011 RINs identified in the Notices of Violations (NOVs) set forth below:

In response to these NOVs, the EPA has entered the following administrative settlement agreements to resolve alleged civil violations arising from the use of invalid biomass-based diesel RINs.

Clean Green Fuels, LLC

On November 7, 2011, the EPA issued 24 NOVs to companies who retired invalid biomass-based diesel RINs to comply with their renewable volume obligations (RVOs). The RINs were generated by Clean Green Fuels, LLC, whose owner, Rodney R. Hailey, was charged on October 3, 2011, with wire fraud, money laundering, and violating the Clean Air Act. These charges arise from a scheme in which he and his company allegedly generated and sold over 32 million RINs, but neither produced nor imported any renewable fuel. The filing of criminal charges is not a finding of guilt; Mr. Hailey is presumed innocent until proven guilty in court.

Please see the following company names to view that company’s NOV.

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Absolute Fuels, LLC

The EPA issued Absolute Fuels, LLC (PDF) (2pp, 539K) a NOV on February 2, 2012. The NOV alleges the company generated over 48 million invalid biomass-based diesel RINs without producing any qualifying renewable fuel and transferred the majority of these invalid RINs to others.

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Green Diesel, LLC

The EPA issued Green Diesel, LLC (2pp, 539K) a NOV on April 30, 2012. The NOV alleges the company generated more than 60 million invalid biomass-based diesel RINs without producing any qualifying renewable fuel and transferred the majority of these invalid RINs to others.

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Frequently Asked Questions and Answers

Frequently asked questions and answers on Renewable Fuels Standard.

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Civil Enforcement | Cleanup Enforcement | Criminal Enforcement

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