EPA Proposes Revisions to the Renewable Fuel Program to Prevent Fraud and Protect Innocent Traders in Renewable Identification Numbers (“RINs”); Allows Limited Use of Program Immediately


Introduction -

In 2007, the Environmental Protection Agency (“EPA”) established a program for trading renewable fuel credits (called “Renewable Identification Numbers” or “RINs”) for companies that were unable to produce enough renewable fuel to meet standards imposed by the Clean Air Act. Problems arose because the program imposed strict liability on anyone who traded in these credits if the credits proved to be invalid. As it turned out, there was widespread fraud involving companies claiming to have produced renewable fuels and the accompanying credits, when, in fact, they had created false RINs and no fuel. Dozens of innocent traders were fined hundreds of thousands of dollars by the EPA, despite their lack of awareness, and the viability of the program was threatened. Last week, the EPA proposed a program intended to reduce the threat of fraud in this program, and to possibly limit the exposure of innocent traders. This alert describes this new proposal.

Summary of Proposal -

On February 21, 2013, the EPA issued and published in the Federal Register a 60-page Notice of Proposed Rulemaking (“Proposal”) that would create a Renewable Fuel Standard RIN Quality Assurance Program (“QAP”). The Proposal is “intended to reduce the incidence of invalidly generated RINs entering the market, provide reasonable assurance of replacement of invalidly generated RINs, and increase liquidity in the RIN market.”

Please see full alert below for more information.

LOADING PDF: If there are any problems, click here to download the file.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© K&L Gates LLP | Attorney Advertising

Written by:


K&L Gates LLP on:

Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:

Sign up to create your digest using LinkedIn*

*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
*With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name. Or, sign up using your email address.