SAN FRANCISCO (CBS/AP) — A company has agreed to pay $27 million in a settlement over violations of biofuel exports.
The U.S. Justice Department and Environmental Protection Agency on Thursday announced the settlement with Chemoil, which sells renewable fuel, diesel and oil products from San Francisco. The civil penalty is the largest under the EPA’s fuels program.
The agencies said Chemoil exported at least 48 million gallons of biodiesel from 2011 to 2013, but failed to follow EPA rules.
Under federal law, companies have to retire renewable fuel credits when exporting fuel. The credits are generated when a company makes or imports renewable fuel and can be traded or sold.
Federal officials said Chemoil held on to more than 72 million renewable fuel credits for exported fuel.
A message to Chemoil was not immediately returned.
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