Refiners and importers of gasoline and diesel are required to have Renewable Identification Numbers (RINs) to prove they're in compliance with the Renewable Fuel Standards (RFS) program. This program obligates refiners and importers to use a specified amount of biofuel in gasoline blends. An RIN is assigned to each gallon of biofuel, so refiners and importers have verification of their compliance with the RFS. There has been quite a bit of fraud in the RIN system lately, and some industry experts think there will be more prosecution to come.
Matthew Veazey of Downstream Today reports, "In early October, the EPA and the U.S. Justice Department reached a $6 million settlement with an Iowa biodiesel producer to resolve allegations that it generated more than 36 million invalid credits." He adds, "Also last month, owners of an Indiana biofuels plant pleaded guilty to a $60 million-plus scheme to fraudulently produce biofuel credits."
To read more, and listen to an audio clip, see the article from Downstream Today.
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