Chevron has agreed to shell out a civil penalty after collecting millions of of invalid biofuel production credits in 2022.
The Justice Department announced Wednesday that it had struck a settlement agreement with Chevron USA, requiring the oil company to pay a $1 million fine for violating the Clean Air Act’s Renewable Fuel Standard Program. Prior to the settlement, the company had already surrendered about $3.6 million in biofuel production credits to offset its alleged violations, according to a news release.
“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,” Adam Gustafson, principal deputy assistant attorney general at DOJ’s Environment and Natural Resources Division, said in a statement.
Under the RFS, companies can generate credits, or RINs, on renewable fuel they produce for use in the United States. The program ensures that a certain volume of renewable fuel replaces fossil fuels used to power vehicles and aircraft and heat homes.
