Charles T. Drevna, President, AFPM has responded to the EPA’s announcement that it is issuing notices of violations to the obligated parties that unknowingly purchased more than 33.5 million invalid RINs from e-biofuels.
Drevna’s statement
‘EPA unfortunately continues to hold obligated parties responsible for illegal activities perpetrated by biodiesel producers such as e-biofuels. Following the EPA’s initial imposition of penalties against obligated parties who innocently relied upon buying government mandated quantities of biodiesel from EPA registered producers on an EPA controlled trading system, the industry developed due diligence programs designed to reduce the risk of purchasing fraudulent RINs. In the absence of an EPA approved affirmative defence tied to reasonable due diligence standards, the industry remains unfairly exposed to a system that actually penalises the victim of fraud rather than focusing on the perpetrator of the crime. This most recent indictment increases the total number of invalid RINs to over 170 million. We still, however, do not know the full scope of the fraudulent activities within the biodiesel industry except to recognise that it is extensive, pervasive and unfortunately not quantifiable since EPA does not provide details about its ongoing investigations. Add today’s announcement to the long list of problems created by an unworkable Renewable Fuel Standard as further proof that Congress should consider repeal or significant reform in 2014.’
Adapted from a press release by Claira Lloyd.