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.
DOJ Declares Global Operation ‘Custos Viridis’ Nets 337 Arrests, Seizes 127,000 Tons of Waste in Largest-Ever Environmental Crime Crackdown
WASHINGTON – A yearlong international law enforcement operation spanning five continents has resulted in 337 arrests, the seizure of more than 127,000 tons of waste, and the disruption of organized crime networks trafficking in illegal pollutants, the Justice Department announced Wednesday.
The operation, code-named Custos Viridis, ran from January to December 2025 and was led by Europol in partnership with 71 countries, including the United States. The Justice Department’s Environment and Natural Resources Division and the Environmental Protection Agency participated in what officials called the largest-ever global enforcement action focused exclusively on pollution and waste crime.
In the United States, authorities targeted individuals and criminal networks smuggling hydrofluorocarbons (HFCs) — potent greenhouse gases — and dangerous illegal pesticides across the southern border. The effort also combated illicit marijuana grows and the sale of banned pesticides nationwide.
U.S. actions led to 21 arrests, prison sentences totaling more than 21 months, 155 months of probation, and court-ordered restitution exceeding $4.2 million along with forfeitures of more than $2.2 million. Agents seized 1,484 pounds of HFCs and 40 pounds plus six gallons of illegal pesticides.
Globally, investigators conducted 1,048 inspections, leading to 337 arrests. Seizures included 127,149 tons of waste, 602 tons of polluting agents (including 398 tons of HFCs), 75 tons of plant protection products, 2.3 tons of mercury, and over $10 million in cash and bank accounts. Authorities also recovered 130 vehicles, heavy machinery, firearms, apartments, and companies.
Investigators estimate the illicit HFC trade alone generated between $17 million and $23 million in commercial value. Seized waste types — including hazardous materials, end-of-life vehicles, scrap metal, plastics, used solar panels, electronic waste, tires, and textiles — could yield illicit profits of at least $36 million.
The operation identified several organized crime networks trafficking waste from Europe to Africa, Asia, and Latin America, as well as networks involved in illegal gold mining using mercury and cyanide.
“The Justice Department’s Environment and Natural Resources Division was on the steering committee and helped design and plan the operation,” the department said. Other steering committee nations included Australia, Brazil, France, Italy, the Netherlands, Norway, South Africa, Spain, and the United Kingdom.
Trump Administration Sues California Over EV Mandate, Citing Higher Car Prices
WASHINGTON – The Trump administration filed a federal lawsuit Thursday against California, seeking to block the state’s electric vehicle mandate, which officials say unlawfully imposes state-specific mileage requirements on car manufacturers and would drive up vehicle prices for American families.
Attorney General Pamela Bondi and Transportation Secretary Sean P. Duffy announced the Justice Department action on behalf of the National Highway Traffic Safety Administration (NHTSA), arguing that federal law prohibits individual states from adopting their own fuel economy standards.
“Oppressive, expensive electric vehicle mandates drive up costs for American consumers and violate federal law,” Bondi said in a statement. “California is using unlawful policies from the last administration to create exorbitant costs for our citizens — this Department of Justice is proud to stand with President Trump and Secretary Duffy to bring litigation that will make life more affordable for American consumers.”
The lawsuit, filed in the U.S. District Court for the Eastern District of California, targets the California Air Resources Board and its executive officer. The Justice Department’s Environment and Natural Resources Division (ENRD) filed the complaint.
According to the administration, California’s scheme would force automakers to radically revamp production lines nationwide to meet standards more stringent than the national corporate average fuel economy (CAFE) standards adopted by NHTSA. Officials argue this would restrict consumer choice, undermine interstate commerce, and send car prices “through the roof.”
The legal challenge is part of President Trump’s personal “Freedom Means Affordable Cars” initiative, which the administration says will save the American people $109 billion over the next five years and save families $1,000 on the average cost of a new vehicle by resetting NHTSA’s CAFE standards.
“I was proud to stand alongside President Trump to unveil our plan to eliminate the Biden-Buttigieg EV mandate and allow auto manufacturers to produce cars American families actually want to buy at a more affordable price,” Duffy said. “But Gavin Newsom is determined to continue pushing Democrat’s radical EV fantasy – even if doing so is illegal.”
The lawsuit contends that California’s regulations are preempted under the Energy Policy and Conservation Act, which makes NHTSA the exclusive regulator of fuel economy in the United States.
“This lawsuit continues ENRD’s war on regulatory overreach by California that is set on undermining the national market for motor vehicles through unlawful state policies,” said Principal Deputy Assistant Attorney General Adam Gustafson of ENRD.
NHTSA Administrator Jonathan Morrison added that the litigation will help automakers design vehicles to meet “one federal fuel economy regulation,” calling it a correction to past administrations’ decisions to enable California to set its own backdoor fuel economy policies.
Read more about President Trump and Secretary Duffy’s “Freedom Means Affordable Cars” initiative HERE.
Read the United States’ complaint HERE.
The case number is 26-at-00450 in California CARB EDCA Complaint.pdf
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