Chemoil Corporation, RIN Credit Scam, California 2024

Chemoil Corporation, a San Francisco-based fuel seller, has agreed to pay a $27 million civil penalty and retire over $71 million in renewable fuel credits (RINs) to settle allegations of violating the Renewable Fuel Standard (RFS) program.

The U.S. Environmental Protection Agency (EPA) and the federal government claim that Chemoil exported at least 48.5 million gallons of biodiesel from 2011 to 2013, but failed to retire the more than 72 million RINs generated for the exported fuel.

RINs are credits created when a company produces or imports renewable fuel, and can be traded or sold to refiners and fuel importers or exporters to help them comply with the RFS program requirements.

The RFS program requires exporters to retire RINs for renewable fuel like biodiesel, because the fuel exported is no longer available for blending into the United States’ fossil fuel supply and cannot be used to meet the renewable fuel volume mandate established by Congress.

“Congress adopted the Renewable Fuel Standards program to achieve significant greenhouse gas emissions reductions, reduce the nation’s dependence on foreign oil, and grow our domestic renewable energy industry,” said Assistant Attorney John C. Cruden for the Environment and Natural Resources Division.

“This settlement delivers on the greenhouse gas emissions reduction goals that Congress envisioned for the Renewable Fuel Standard,” said Assistant Administrator Cynthia Giles for EPA’s Office of Enforcement and Compliance Assurance.

The proposed settlement, lodged in the U.S. District Court for the Northern District of California, is subject to a 30-day public comment period and final court approval.

For more information on the settlement and to submit a comment, visit: https://www.epa.gov/enforcement/chemoil-corporation-renewable-fuel-

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