Colonial Oil to pay $2.8M fine and retired $12.2M in RINs for defying RFS

In Georgia, the Justice Department and the Environmental Protection Agency (EPA) reached a settlement with Colonial Oil Industries Inc. that will require the company to pay a civil penalty of more than $2.8 million and spend an estimated $12.2 million to offset the detrimental human health and environmental impacts of Colonial’s alleged failure to meet obligations under the Clean Air Act’s Renewable Fuel Standard (RFS) program and gasoline volatility standards.

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 ocean-going vessels is not required to be included in renewable volume obligation calculations. But not all marine vessels are ocean-going vessels, and volumes supplied to other marine vessels must be included in such calculations. Colonial’s actions resulted in less renewable fuel being used in lieu of gasoline and diesel fuel, causing increased greenhouse gas emissions.