Colonial Required to Pay over $2.8M to Settle CAA Breaches
4/10 4:43 PM
Colonial Required to Pay over $2.8M to Settle CAA Breaches OAKHURST, N.J. (DTN) --- The U.S. Environmental Protection Agency and Department of Justice reached a settlement with Colonial Industries Inc. requiring the company to pay a civil penalty of more than $2.8 million and spend an estimated $12.2 million to offset the impacts of the company's alleged failure to meet obligations under the Clean Air Act's Renewable Fuel Standard program and gasoline volatility standards. According to today's announcement, between 2013 and 2019, Colonial excluded certain fuel it supplied to marine vessels from its renewable volume obligations calculations in violation of the RFS regulations. Fuel intended for use only in oceangoing vessels is not required to be included in renewable volume obligation calculations. But not all marine vessels are oceangoing, and volumes supplied to non-oceangoing vessels must be included in such calculations. Colonial's actions resulted in less renewable fuel being used in lieu of gasoline and diesel fuel. Under the RFS program, refiners or importers of gasoline or diesel fuel are required to either blend renewable fuels into transportation fuel or purchase credits known as Renewable Identification Numbers to meet their renewable volume obligations. Between 2013 and 2019, Colonial failed to purchase and retire enough RINs. The settlement requires Colonial to purchase and retire over nine million RINs within two years at an estimated cost of approximately $12.2 million. The RIN purchase and retirements is estimated to result in over 18,300 metric tons of carbon dioxide equivalent reductions which equates to powering 2,386 homes' energy use or 4,355 gasoline cars for a year. Colonial also sold over a million gallons of gasoline that failed to meet the applicable volatility standard which is intended to reduce evaporative emissions during the summer season from gasoline. The proposed settlement, lodged in the U.S. District Court for the Southern District of Georgia, is subject to a 30-day public comment period and final court approval. Colonial Group, one of the largest privately held companies in the United States, has a diverse portfolio including wholesale petroleum marketing and terminal storage. (c) Copyright 2024 DTN, LLC. All rights reserved.
 
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