Utah biodiesel company hit with $3 million penalty

SALT LAKE CITY (AP) — Federal authorities say a Utah renewable energy company will pay a $3 million penalty to settle allegations that earned a profit claiming it produced biodiesel it didn’t make.

The U.S. Environmental Protection Agency said Thursday that Washakie Renewable Energy generated $2 million worth of renewable fuel credits by claiming it produced enough biodiesel in Plymouth to remove the equivalent of 30,000 tons of carbon dioxide from the atmosphere.

The EPA says the violations happened in 2010 and were discovered during an inspection of the facility.

Washakie says in a statement the violations were caused by a misinterpretation of the law and company officials reported them to the EPA. The company says it came to an amicable settlement with the agency.

Plymouth is located about 84 miles north of Salt Lake City in Box Elder County.

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