UNITED STATES ENVIRONMENTAL PROTECTION AGENCY
WASHINGTON, D.C. 20460
OFFICE OF
ENFORCEMENT AND
COMPLIANCE ASSURANCE
DEC 1 8 2013
VIA CERTIFIED MAILRETURN RECEIPT REQUESTED
Imperial Petroleum, Inc.Attn: Jeffrey T. WilsonPresident and Registered Agent101 N.W. First StreetEvansville, IN 47708
e-Biofuels, LLCAttn: CraigDucey10568 Madison Brooks DriveHancock, IN 40464
e-Biofuels, LLCAttn: CraigDucey
Registered Agent
710 Norfleet Drive West
Middletown, IN 47356
Re: Notice of Violation of Renewable Fuel StandardsFile Number AED/MSEB # 8061
Dear Messrs. WilsonandDucey:
The United States Environmental Protection Agency (EPA or we) has commenced an investigation intoImperial Petroleum, Inc.'s (Imperial), and its wholly-owned subsidiary, e-Biofuels, LLC's (e-Biofuels),compliance with Section 211(o) of the Clean Air Act (CAA), and the renewable fuel standardregulations promulgated at 40 C.F.R. Part 80, Subpart M (RFS2 regulations).
The RFS2 regulations require refiners and importers (referred to as obligated parties), and exporters ofrenewablefuel toacquire sufficient Renewable Identification Numbers (RINs) to demonstrate
Internet Address (URL)■ http://www.epa.govRecycled/Recyclable• Printed with Vegetable Oil Based Inks on 100% Postconsumer. Process Chlorine Free Recycled Paper
compliance with their Renewable Volume Obligations (RVOs). The regulations include a credit tradingprogram to facilitate compliance with the renewable fuel standards. The credit trading program allows obligated parties and exporters of renewable fuel to comply with their RVOs throughthepurchase ofRINs.
Based upon the information available to the EPA as a result of its investigation, the EPA has determined that from at leastJuly1, 2010, through June 2, 2011,all of the RINs generated by e-Biofuels (CompanyID 4694 and Facility ID 82845), 33,573,595 RINs with a D-Code of4,are invalid. The EPA has determined that e-Biofuels was not the producer ofthefuel.Therefore, e-Biofuels violated 40 C.F.R.§ 80.1460(b)(l) by generating RINs without producing the requisite volume of renewable fuel and violated 40 C.F.R. § 80.1460(b)(2) by creating or transferring to another person RINs that are considered invalid under 40 C.F.R. § 80.1431. 40 C.F.R. § 80.1461(c) provides that "[a]ny parent corporation is liable for any violation of this subpart that is committed by any of its subsidiaries."Accordingly, this notice of violation (NOV) alleges that e-Biofuels and Imperial are liable for violationsarising from e-Biofuels' generation of invalid RINs.
The EPA issues this NOV pursuant to Sections 205 and 211of the CAA, 42 U.S.C.§§ 7524 and 7545,for the violations identified above. Sections 205 and 211of the CAA authorize the EPA to assess a civil penalty of up to $37,500 for every day for each violation, plus the economic benefit or savings resulting from each violation. 42 U.S.C. §§ 7524, 7545(d);see also40 C.F.R. §§ 19.4, 80.1461, 80.1463. In orderto determine an appropriate penalty for each violation, theEPAconsiders the gravity of the violation, the economic benefit or savings (if any) resulting from the violation, the size of your business, your history of compliance with the CAA, actions taken by you to remedy the violation and prevent future violations, the effect of the penalty on your ability to continue in business, and other matters as justice may require. 42 U.S.C. § 7524. This NOV does not create any rights or waive any of your obligations under the CAA, but rather is for the purpose of notifying you of the violations.
We are offering you an opportunity to confer with us about the violations alleged in this NOV. Theconference will give you an opportunity to present information onthealleged violations, any efforts youhave taken to comply, and the steps you will take to prevent future violations. By offering the opportunity for a conference, or participating in one, the EPA does not waive or limit its right to any remedy available to it under the CAA.
The EPA attorneys assigned tothismatter areTahani Rivers and JeffKodish.Tahani Rivers may bereached at (303) 312-7155, Rivers.Tahani@epa.gov, or at the following address:
Tahani Rivers, Attorney-Advisor U.S. Environmental Protection AgencyOECA/AED/Western Field Office (8MSU)1595Wynkoop StreetDenver, CO 80202-1129
JeffKodish may be reached at (303) 312-7153, Kodish.Jeff@epa.gov, or at the following address:
JeffKodish, Fuels Team Leader U.S. Environmental Protection AgencyOECA/AED/Westera Field Office (8MSU) 1595Wynkoop Street
Denver, CO 80202-1129
We appreciate your attention to this important matter.
Sincerely,
/s/ Phillip A. Brooks
Phillip A. Brooks
Director
Air Enforcement Division
cc: Christopher Thompson, Section Chief- AED Western Field Office JeffKodish, Fuels Team Leader-AED WesternFieldOffice
