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United States District Court for the Southern District of Florida
July 25, 2012, Decided; July 25, 2012, Entered on Docket
Case No. 2:12-cv-14125-KMM
ORDER GRANTING IN PART AND DENYING IN PART DEFENDANT'S MOTION TO DISMISS
THIS CAUSE came before the Court upon Defendant OceanConnect LLC's Motion to Dismiss (ECF No. 7). Plaintiff filed a Response (ECF No. 12), Defendant filed a Reply (ECF No. 13), and Plaintiff filed a Sur-Reply (ECF No. 16). UPON CONSIDERATION of Defendant's Motion, Plaintiff's Complaint (ECF No. 1), the Response, Reply, Sur-Reply, supplemental [*2] authority provided by the Parties (ECF Nos. 19, 21, 23), the pertinent portions of the record, and being otherwise fully advised in the premises, this Court enters the following Order.
This is an action for breach of contract pursuant to this Court's diversity jurisdiction. Plaintiff George E. Warren Corp. is a Massachusetts corporation with its principal place of business in Vero Beach, Florida. Plaintiff is a company that "blends, imports, markets, and distributes gasoline and other fuels in the United States." Compl., ¶ 3. Defendant OceanConnect LLC is a Delaware limited liability company with its principal place of business in New York. Defendant is a brokerage firm that trades energy-related products.
A. The Clean Air Act and the Environmental Protection Agency
In 2005 and 2007 Congress amended the Clean Air Act ("CAA") to encourage the use of renewable fuels in the United States. Accordingly, the CAA requires the United States Environmental Protection Agency ("EPA") to "promulgate regulations to ensure that gasoline sold or introduced into commerce [*3] in the United States . . . contains the applicable volume of renewable fuel" specified for a particular year. 42 U.S.C. § 7545(o)(2)(A)(i). To effectuate this directive, the EPA established the "Renewable Fuel Standard Program" (the "RFS Program"), which requires refiners, blenders, and importers of gasoline and diesel fuel (collectively, "regulated entities")—such as Plaintiff—to satisfy a "Renewable Volume Obligation" ("RVO") each year. See 40 C.F.R., pt. 80, subpart M. "The RVO corresponds to a particular quantity of renewable fuel, which is determined based on [a regulated entity's] total annual gasoline and diesel production." Compl., ¶ 11; see also 40 C.F.R., part 80, subpart M.
A regulated entity can satisfy its annual RVO in two ways: (1) by producing the required amount of renewable fuel, or (2) by purchasing renewable fuel credits on a secondary market. The latter option is made possible by the CAA, which requires the EPA to generate an appropriate amount of credits anytime a regulated entity "refines, blends, or imports gasoline that contains a quantity of renewable fuel that is greater than the quantity required" by the entity's own RVO. 42 U.S.C. § 7545(o)(5)(A)(i). These [*4] credits are identified by a 38-digit serial number referred to as a "Renewable Identification Number" ("RIN") and may be used or transferred by the regulated entity that generated the underlying credit. Id. § 7545(o)(5)(B).
Full case includes Shepard's, Headnotes, Legal Analytics from Lex Machina, and more.
2012 U.S. Dist. LEXIS 183977 *
GEORGE E. WARREN CORP., a Massachusetts corporation, Plaintiff, vs. OCEANCONNECT LLC, a Delaware limited liability company, Defendant.
Subsequent History: Related proceeding at Vinmar Overseas, Ltd. v. OceanConnect, LLC, 2012 U.S. Dist. LEXIS 117068 (S.D. Tex., Aug. 20, 2012)
Motion granted by, Dismissed by, in part George E. Warren Corp. v. OceanConnect, LLC, 2012 U.S. Dist. LEXIS 192242 (S.D. Fla., Dec. 14, 2012)
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