Chevron Fined $1M, Forced to Retire $3.6M in Biofuel Credits for Clean Air Act Violations
WASHINGTON – Chevron U.S.A. Inc. has agreed to pay a $1 million civil penalty and retire more than 2 million renewable fuel credits valued at approximately $3.6 million to resolve violations of the Clean Air Act’s Renewable Fuel Standard (RFS) program, the Justice Department announced Wednesday.
The settlement stems from Chevron’s disclosure in June 2023 that between January and August 2022, the company invalidly generated over 2.2 million advanced biofuel production credits, known as Renewable Identification Numbers (RINs), on renewable diesel that had already been used for RIN generation and then sold those credits to third parties.
Under the RFS program, renewable fuel producers may generate RINs only once per volume of renewable fuel to prevent double counting. Refiners and importers must acquire and retire a specific number of RINs each year based on the amount of petroleum fuel they produce or import. Chevron operates as both a renewable fuel producer and an obligated party.
“Today’s action demonstrates the Administration’s commitment to the Renewable Fuel Standard program by ensuring that Renewable Identification Numbers generated and traded represent actual renewable fuel gallons produced,” said Principal Deputy Assistant Attorney General Adam Gustafson of the Justice Department’s Environment and Natural Resources Division. “The benefits that flow from the Renewable Fuel Standard program to rural American communities depend on the integrity of program credits.”
Prior to finalizing the settlement, Chevron retired valid RINs to offset the invalidly generated credits, a remediation valued at roughly $3.6 million. The company will also pay a civil penalty of just over $1 million.
The RFS program is a national policy requiring a certain volume of renewable fuel to replace or reduce fossil fuel in transportation fuel, home heating oil, or jet fuel.