Chemoil agrees to pay $27 mil fine, retire 65 mil RINs for exported biodiesel

30.09.2016

Chemoil has agreed to pay a $27 million fine and retire 65 million renewable fuel credits to resolve alleged violations related to its biodiesel exports, the US Department of Justice and Environmental Protection Agency said Thursday.

The fine is the largest in the history of EPA's fuel programs.

The settlement stems from Chemoil exporting at least 48.5 million gallons of biodiesel over 2011-13 but failing to retire the more than 72 million renewable identification numbers, or RINs, generated for the exported fuel, the government said.

Refiners, importers and exporters use RINs to comply with EPA's biofuel blending mandates.

Chemoil retired 7.7 million additional RINs ahead of the settlement. The agencies put the current market value of the 72.7 million RINs at more than $71 million.

Platts assessed 2016 biodiesel RINs at $1.005/RIN Wednesday, up 3 cents week on week.

Exporters must retire RINs for biodiesel and other biofuels because the exported fuel is no longer available for blending into the US transportation fuel supply and cannot be used to meet EPA's Renewable Fuel Standard.

"Upholding this requirement is a key way EPA is working to maintain program integrity and a level playing field for companies that follow the law," said Cynthia Giles, assistant administrator for EPA's Office of Enforcement and Compliance Assurance.

EPA discovered the violations as a result of tips from other RFS participants, the government said.

The proposed settlement was made in the US District Court for the Northern District of California and is subject to a 30-day public comment period and final court approval.


platts

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