FUELS
By Stephen Bennett
QAp for Confidence
EPA rule targets RINs fraud
S
cammers trading in fraudulent renewable fuel
identification numbers stole millions. A new
EPA rule is designed to make sure that doesn't
happen again.
In an effort to put a stop to trading in
fraudulent RINs that came to light in spectacular crimi-
nal cases over the past few years, the Environmental
Protection Agency in July issued a rule designed to help
verify the validity of the fuel credits.
The rule provides for a voluntary quality assurance
program, which would vouch for the credibility of the
fuel credits under the Renewable Fuel Standard.
"We believe the EPA did a good job of strengthening
the audit requirements in the rule and streamlining the
QAP program, so that there are clear lines of responsi-
bility and all stakeholders can have confidence in RIN
markets," said Ben Evans, director of public affairs
and federal communications for the National Biodiesel
Board, a trade group. "It is a good rule that is in line with
the private-sector protections that have already been put
in place since these isolated criminal cases came to light
several years ago. Together, this new rule and the private-
sector programs offer significant new safeguards against
RIN fraud and should ensure that it remains a thing of
the past."
The rule was released on July 2 to provide protection
for downstream RINs owners, with a significant focus
on protecting "obligated parties," according to Jeff Hove
of the RINAlliance. Obligated parties consist of refiners,
importers and fuel reformulators that are required to
meet the RFS mandates on renewable fuel usage each year.
Obligated parties may achieve mandate levels via wet gal-
lon purchases and/or through the purchasing of RINs.
RINAlliance represents almost 200 blenders, nation-
wide, that track RIN activity and RIN marketing events
through the RINAlliance system of record and sell RINs
to obligated parties. RINAlliance provides its clients
with EPA-required quarterly reporting, attestations and
RIN aggregating/marketing via annual contracts with
obligated parties. The RINAlliance program manages 1.5
billion RINs annually with a focus on RFS compliance
and maximizing profits for its blenders.
18 AUGUST 2014 | FUEL OIL NEWS | www.fueloilnews.com
Photo courtesy National Biodiesel Board.
