EPA v. Washakie

Case summary

This case addresses allegations that Utah-based Washakie Renewable Energy, LLC violated the Clean Air Act by generating more than 7.2 million invalid renewable fuel credits worth more than $2 million. From January to October of 2010, Washakie generated more than 7.2 million Renewable Identification Numbers, or RINs, and reported to EPA that it produced biodiesel associated with those RINs at its Plymouth, Utah facility. During that time, however, Washakie did not produce any biodiesel at the Plymouth facility. The biodiesel associated with the 7.2 million RINs would have accounted for a reduction of emissions equivalent to more than 30,000 metric tons of carbon dioxide. Washakie has purchased and retired from the market an equivalent number of RINs, which achieved this reduction of emissions. Renewable fuel producers and importers generate RINs for each gallon of renewable fuel in the U.S. market that meets greenhouse gas emissions reduction standards established under the Renewable Fuel Standard. Washakie will pay a $3 million penalty under the settlement. This is the first case under the second Renewable Fuels Standards in which, as a part of a settlement, EPA secured the replacement of invalid RINs by the producer of those RINs. Because Washakie purchased and retired an equal amount of RINs to the number identified as invalid and used for compliance purposes, EPA does not plan to request that the obligated parties who used the invalid RINs replace them. This reduces the burden on the parties that purchased and used the RINs for compliance purposes. EPA initially discovered these violations during an EPA inspection of the Washakie facility in Plymouth, Utah in 2010, and uncovered additional information concerning the violations in Washakie?s response to information requests and additional investigative work by the agency. EPA is responsible for developing and implementing regulations to ensure that transportation fuel sold in the United States contains a minimum volume of renewable fuel. The Renewable Fuel Standard program ? created under the Energy Policy Act of 2005 ? was developed in collaboration with refiners, renewable fuel producers, and many other stakeholders. It was expanded and strengthened under the Energy Independence and Security Act of 2007, which was designed to encourage the blending of renewable fuels into the United States' motor vehicle fuel supply, and reduce U.S. dependence on foreign oil, help grow the renewable energy industry, and achieve greenhouse gas reductions. To read the settlement, or for more information about the case, visit: http://www2.epa.gov/enforcement/washakie-renewable-energy-llc-clean-air-act-settlement. For more information on the Renewable Fuel Standards, visit: http://www.epa.gov/oms/fuels/renewablefuels/.

Defendants (1)

• Washakie Renewable Energy, LLCNamed in complaintNamed in settlement

Facilities (1)

• WASHAKIE RENEWABLE ENERGY LLC

  7950 WEST 24000 NORTH, PLYMOUTH, UT, 84330

  Registry ID: 110043464667

Statutes cited

• CAA 211 — Regulation of Fuels - Motor Vehicle and Engine Fuels

Enforcement conclusions (1)

• Washakieentered 2015-05-04

  Primary law: CAA

  Federal penalty: $3,000,000

Timeline (6 milestones)

• 2011-09-16Referred To Dept Of Justice
• 2011-09-26Enforcement Action Data Entered
• 2015-03-19Final Order Lodged
• 2015-03-19Complaint Filed With Court
• 2015-05-04Final Order Entered
• 2016-04-29Enforcement Action Closed