Dept. of Justice cracks down on another multimillion dollar biofuel fraudster

Enlarge / Samples of biodiesel sit on a pump on March 22, 2013 in San Francisco, California. (credit: Justin Sullivan/Getty Images)

A company called NGL Crude Logistics reportedly generated and sold 36 million fraudulent renewable-energy credits by processing and re-processing the same barrels of biodiesel.

In a press release today, the Department of Justice said that it had reached a settlement with NGL over its fraudulent activity. NGL will be compelled to pay a $25 million fine and buy back $10 million in fraudulent credits.

Those credits are called Renewable Identification Numbers, or RINs. The Environmental Protection Agency (EPA) requires that fuel producers in the US either blend a certain amount of biofuel into their primary fossil-fuel-based product or, in certain cases, fuel producers can purchase RINs in lieu of that blending.

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