EPA v. GRC Fuels

Case summary

This case involves the use by GRC Fuels Inc., ( GRC ) of invalid Renewable Identification Numbers (RINs) to meet its renewable volume obligation (RVO) under the Renewable Fuel Standards (RFS), promulgated under the Clean Air Act (CAA). The (RFS) program requires producers or importers of renewable fuel to generate fuel credits, known as RINs, in proportion to the amount and type of renewable fuel they produced or imported. The RFS Program also requires that non-renewable fuel refiners and importers, known as obligated parties, and renewable fuel exporters obtain valid RINs and retire those RINs each year by submitting them to the EPA. Congress adopted the RFS Program to reduce the nation's dependence on foreign oil, help grow the nation's renewable energy industry and achieve significant greenhouse gas emissions reductions. The EPA is charged with developing the RFS program and enforcing its requirements. EPA published in 2012 and 2013 Interim Enforcement Response Policies which cap penalties for qualifying use violations in connection with invalid 2010, 2011, and 2012 biomass-based diesel RINs at $350,000. The EPA calculated GRC's penalty in accordance with the IERPs. Because GRC's penalty is de minimis, GRC was not required to pay a penalty to resolve the violations. GRC did remove the invalid RINs from all applicable RFS2 annual compliance reports, replaced the invalid RINs that were needed to meet its RVO, and resubmitted corrected reports to EPA. For more information, see the RFS webpage at http://www2.epa.gov/enforcement/civil-enforcement-renewable-fuel-standard-program.

Defendants (1)

• GRC Fuels Inc. (SB)Named in settlement

Facilities (1)

• GRC FUELS

  61 CONKLIN ROAD, WALTON, NY, 13856

  Registry ID: 110067441904

Statutes cited

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

Enforcement conclusions (1)

• GRC Fuelsentered 2015-11-18

  Primary law: CAA

Timeline (3 milestones)

• 2015-11-18Enforcement Action Closed
• 2015-11-18Final Order Issued
• 2016-03-18Enforcement Action Data Entered