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

more+
less-
more+
less-

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.

Written by:

Published In:

EPA

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

Don't miss a thing! Build a custom news brief:

Read fresh new writing on compliance, cybersecurity, Dodd-Frank, whistleblowers, social media, hiring & firing, patent reform, the NLRB, Obamacare, the SEC…

…or whatever matters the most to you. Follow authors, firms, and topics on JD Supra.

Create your news brief now - it's free and easy »

All the intelligence you need, in one easy email:

Great! Your first step to building an email digest of JD Supra authors and topics. Log in with LinkedIn so we can start sending your digest...

Sign up for your custom alerts now, using LinkedIn ›

* 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.
×
Loading...
×
×