EPA v. Tesoro

Case summary

This case involves the use by Tesoro Corporation, ( Tesoro ) of 158,672 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. Since Tesoro had already paid a civil penalty of $350,000 to resolve violations in connection with invalid 2010 and 2011 biomass-based diesel RINs, Tesoro was not required to pay any additional penalties. Tesoro 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)

• Tesoro CorporationNamed in complaintNamed in settlement

Facilities (1)

• TESORO

  19100 RIDGEWOOD PARKWAY, SAN ANTONIO, TX, 78259

  Registry ID: 110056958243

Statutes cited

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

Enforcement conclusions (1)

• Tesoroentered 2016-02-01

  Primary law: CAA

Timeline (3 milestones)

• 2016-02-01Final Order Issued
• 2016-02-01Enforcement Action Closed
• 2016-03-31Enforcement Action Data Entered