WASHINGTON, Oct. 6, 2016 - EPA and the Department of Justice filed a complaint Tuesday against NGL Crude Logistics LLC and Western Dubuque Biodiesel LLC as well as announcing a settlement with Western Dubuque to address alleged violations of the Renewable Fuel Standard.
The complaint, filed in the U.S. District Court for the Northern District of Iowa in Cedar Rapids, alleges that NGL, which purchased the equity interests of Gavilon LLC in 2013, entered into a series of transactions with Western Dubuque in 2011 that resulted in the generation of approximately 36 million invalid renewable identification numbers, or RINs. RINs are credits created when a company produces qualifying renewable fuel and can be traded or sold to refineries and importers to use for compliance with renewable fuel production requirements.
Western Dubuque owns and operates a 30 million gallon
biodiesel plant in Farley, Iowa. NGL is an energy service company that transports
fuel and other products.
NGL is not a part of this settlement. EPA and Justice have
filed a lawsuit against NGL, and will ask the court to require NGL to retire 36
million biomass-based diesel RINs to offset the harm caused by its alleged
violations, and to pay a substantial civil penalty.
The settlement with Western Dubuque is subject to a 30-day public comment period and final court approval.
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