1 US EPA Says it is Auditing Biofuel Producers' Pre-owned Cooking Oil Supply

Dana Goldschmidt edited this page 2025-01-12 18:41:27 +08:00

By Leah Douglas

Aug 7 (Reuters) - The U.S. Environmental Protection Agency has actually introduced investigations into the supply chains of at least two eco-friendly fuel producers in the middle of market issues that some may be utilizing deceitful feedstocks for biodiesel to secure profitable federal government subsidies.

EPA representative Jeffrey Landis informed Reuters that the agency has actually launched audits over the past year, but decreased to determine the companies targeted due to the fact that the examinations are continuous.

The production of biodiesel from sustainable components, like utilized cooking oil, can earn refiners a slew of state and federal environmental and environment aids, consisting of tradable credits under a program administered by the EPA called the Renewable Fuel Standard. But fears have actually been mounting that some supplies identified as utilized cooking oil are really less expensive and less sustainable virgin palm oil, a product that is associated with deforestation and other ecological damage.

The problem came into focus following a rise in used cooking oil exports from Asia over the last few years that analysts have said involves unrealistically high volumes relative to the amount of cooking oil utilized and recuperated in the area. The European Union is also investigating feedstocks over the fraud issues.

The EPA audits started after the company upgraded domestic supply-chain accounting requirements in July 2023 for sustainable fuel producers looking for to under the RFS, he stated.

"EPA has conducted audits of sustainable fuel producers since July 2023 which includes, to name a few things, an assessment of the locations that used cooking oil utilized in eco-friendly fuel production was collected," he stated. "These examinations, nevertheless, are ongoing and we are unable to talk about continuous enforcement examinations."

U.S. senators from farm states have called for more oversight of biofuel feedstocks, stating federal firms must be as rigorous in confirming imports as they are auditing domestic supply chains.

"The Biden administration has actually created vigorous requirements to verify, not just trust, American producers, and it is essential that the very same examination is applied to imported feedstocks," 6 U.S. senators, led by Roger Marshall and Sherrod Brown, composed in a June 20 letter to federal companies.

Another letter from 15 senators to the Treasury Department on July 30 advised the administration to exclude imported feedstocks like UCO from an extra clean fuel tax credit program passed in the Inflation Reduction Act. (Reporting by Leah Douglas in Washington Editing by Richard Valdmanis and Matthew Lewis)