EPA Pursuit of Renewable Energy Fraud Should Bring Stability Back to Market

Over the last year, the Department of Justice and the Environmental Protection Agency’s Office of Criminal Enforcement have been paying close attention to allegations of fraud in EPA’s renewable fuel standard (RFS) program. Before then, EPA seemed largely unaware of several large schemes that defrauded companies that believed they were purchasing legitimate renewable diesel fuel when in fact they were purchasing “phantom” fuel.

To help remedy this problem, EPA recently proposed rules outlining a quality assurance program (QAP) for purchases of renewable diesel fuel.¹See 22 DER A-21, 2/1/13. Taken together, EPA’s current enforcement actions and rule changes ...