Utah biofuel manufacturer settles federal RIN civil charges

Washakie Renewable Energy LLC, a Utah biofuel and biochemical manufacturer, settled federal claims that it violated Renewable Fuels Standard provisions under the Clean Air Act, the US Department of Justice reported.

The company, which produces biodiesel from a plant in northeastern Box Elder County, agreed to pay a $3 million civil fine after retiring more than 7.2 million Renewable Identification Numbers by purchasing RINs from other parties, DOJ said.

It said Washakie generated the invalid RINs from January to October 2010 based on biodiesel production which did not actually occur at its plant or elsewhere. The company did not respond to OGJ’s request for a comment.

The US Environmental Protection Agency established RINs as credits for refiners and petroleum product importers to use when they could not obtain biofuels to meet quotas established under the 2007 Energy Independence and Security Act. These “obligated parties” are liable if transferred RINs are not valid, DOJ said.

DOJ filed a stipulation of settlement in the matter in US District Court for the District of Columbia. As is customary in such settlements, Washakie neither admitted nor denied any wrongdoing.

Contact Nick Snow at nicks@pennwell.com.

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