Kern Oil and Refining Co. Case Settlement
Kern Oil and Refining Co. Case Settles for $90,000
In August 2015, Kern Oil and Refining Co. agreed to pay $90,000 in penalties to resolve reporting violations of the Low Carbon Fuel Standard (LCFS) Regulation. Under LCFS, all regulated parties must report transportation fuel transactions and credit transfers to CARB. Between 2013 and 2015, Kern Oil & Refining Co. reported production of renewable diesel from tallow under Fuel Pathway Code RNWD003. The violation was discovered during a routine audit conducted by CARB Enforcement staff. During the onsite audit, CARB determined that some production batches were made using corn oil – a different feedstock than was required by the Fuel Pathway. 15,838 credits corresponding to the ineligible batches were removed from Kern Oil & Refining Co.'s account along with this settlement.