The Herald Bulletin

Evening Update

Local Business

October 5, 2013

Biofuel equipment sold from company accused of historic fraud scheme

Former town official says he does not believe company planned to defraud anyone


Middletown Town Council president Betty Riley said she was shocked by the news.

“I can’t believe it happened right here under our nose,” she said. "When they left, they just shut down and walked away. We knew when they left; we did not know they weren’t making what they were supposed to be making.”

Like Traci L. Moyer on Facebook and follow her @moyyer on Twitter, or call 648-4250.

How RINs work The December 2007 Energy Independence and Security Act set mandated levels for 2008 through 2022 for various types of renewable fuels that are to be blended with U.S. gasoline and diesel fuel. Mandated levels of biofuels blending are scheduled to increase progressively each year until 2022. By that year, 35 billion gallons of ethanol and a billion gallons of biodiesel fuel are to be blended with U.S. motor fuel. At the current consumption rate, that would be equivalent to about 25 percent of U.S. gasoline use in volumetric terms. It is one thing to mandate how much biofuel should be blended in gasoline and diesel fuel, but quite another challenge to develop a mechanism for insuring that the desired level of blending will be achieved. Renewable Identification Numbers (RINs) are the mechanism for insuring that the prescribed levels of blending are reached. The U.S. Environmental Protection Agency (EPA) is responsible for overseeing and enforcing blending mandates and developing regulations for RINs. RINs can take on a value of their own at certain times, thus reflecting developments in the economics of blending biofuels with gasoline and diesel fuel. RINs are a complex mechanism for implementing the mandates. It is the method used to insure that the mandated amount of biofuels is actually blended into motor fuel. They are issued at the point of biofuels production or import. Source:

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