On October 4, 2016, the U.S. Environmental Protection Agency (EPA) and the U.S. Department of Justice (DOJ) announced a $6 million settlement with Western Dubuque Biodiesel, LLC, the owner and operator of a biodiesel plant, in a RIN fraud case.
Pursuant to the terms of the settlement released by EPA and DOJ, Western Dubuque agreed to pay a civil penalty of $6 million dollars for alleged violations of Section 211(o) of the Clean Air Act and the regulations promulgated thereunder. The enforcement case stems from a series of transactions in 2011 that resulted in the generation of more than 36 million allegedly invalid RINs.
The Western Dubuque settlement may be the tip of an iceberg. Participants in the RIN market can expect to see more RIN fraud prosecutions in the future.
Baker Botts' Aileen Hooks is available to comment.
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