Republicans to Investigate EPA Handling of Renewable-Fuel Rules

The House Energy and Commerce Committee said it will investigate the actions of the Environmental Protection Agency in combating fraud in the renewable-fuels program.

The EPA discovered that fuel credits, which can be traded, are being fraudulently sold, the committee said in a statement. The EPA’s handling of the fraud -- telling buyers of the credits to replace the certificates -- has made the situation worse, according to panel chairman Fred Upton, a Michigan Republican.

“The renewable-fuels marketplace is in turmoil,” Upton and Kentucky Republican Ed Whitfield said in a letter to the EPA today which was released by the committee via e-mail. “The costs of this turmoil ultimately will be borne by consumers.”

Congress established standards under the Energy Policy Act of 2005 to encourage the blending of renewable fuels into the motor vehicle fuel supply. The EPA sets levels for mandatory purchases of certain renewable fuels.

To contact the reporter on this story: Mark Drajem in Washington at mdrajem@bloomberg.net

To contact the editor responsible for this story: Jon Morgan at jmorgan97@bloomberg.net

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