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Scam-Ridden U.S. Biofuel Program Targeted for Fix by EPA

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The Environmental Protection Agency is proposing rules to expand the use of renewable fuels and thwart scams in a program hit by fraud and facing increasing criticisms from U.S. refiners.

The EPA yesterday called for a mandate of 16.55 billion gallons for renewable fuels such as ethanol for this year, up 8.9 percent from 2012 and in line with a target set by Congress. Parties have 45 days to comment before a final mandate is set. The agency also issued rules aimed at preventing scams, after the EPA determined that three separate companies sold fraudulent Renewable Identification Numbers, or RINs, for fuel they never produced.