The Environmental Protection Agency (EPA) has been called upon to enhance its oversight of the Renewable Fuel Standard (RFS) program to prevent fraudulent activities and circumvention of program rules, according to a report from the EPA Office of Inspector General (OIG). The report highlighted vulnerabilities within the program, including the creation of 339 million counterfeit Renewable Identification Numbers (RINs) since the inception of the RFS in 2005, with a total estimated value of approximately $87 million.
OIG identified several weaknesses in the RFS program, including the allowance for companies to submit their transactions up to 30 days after they occur, the generation of surplus ID numbers by companies, insufficient verification of renewable fuel transactions among firms and a lack of assurance regarding the independence of human auditors. OIG stressed that until these issues are effectively addressed, EPA cannot reasonably ensure the RFS program is achieving its objectives of reducing greenhouse gas emissions, expanding the renewable fuels sector and decreasing dependence on imported oil.
OIG established four dummy companies capable of purchasing, selling and transferring RINs, underscoring the urgency of addressing the identified weaknesses. EPA acknowledged and agreed with all of the OIG’s findings.
