The EPA is cracking down on fraud in the marketplace for renewable energy credits, putting the nation's fuel refiners on notice and underscoring the need for them to exercise greater due diligence.
The program, initiated in 2009, responds to a government mandate that fuel producers blend a prescribed amount of biofuels, including ethanol, into their products. Producers receive a credit for every gallon of biodiesel they create using animal fat and vegetable oil. These credits can be sold to refiners to offset the mandate.
For more than a year, the EPA has aggressively prosecuted fraud in the program, including counterfeit paperwork and sham companies selling shares of non-existent fuel. It isn't just the fraudsters who should be concerned; companies that buy bogus credits also face fines.
In this week's podcast, we talk to EPA Attorney Jeff Kodish and Doug Parker, director of the EPA's Criminal Investigation Division, about the program, fraud investigations, the due-diligence expected of buyers, and what fuel companies can do to protect themselves.
Listen to the podcast. (13 min., 12 MB)
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