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1 US EPA Says it is Auditing Biofuel Producers' Pre-owned Cooking Oil Supply
Katherin Wildman edited this page 2025-01-11 04:44:44 +01:00


By Leah Douglas

Aug 7 (Reuters) - The U.S. Epa has actually launched investigations into the supply chains of a minimum of two eco-friendly fuel producers amid industry concerns that some may be using deceitful feedstocks for biodiesel to protect lucrative federal government subsidies.

EPA spokesperson Jeffrey Landis told Reuters that the firm has launched audits over the past year, but declined to identify the business targeted because the examinations are ongoing.

The production of biodiesel from sustainable active ingredients, like utilized cooking oil, can make refiners a multitude of state and federal ecological and climate aids, including tradable credits under a program administered by the EPA called the Renewable Fuel Standard. But fears have actually been mounting that some materials labeled as used cooking oil are actually less expensive and less sustainable virgin palm oil, a product that is associated with logging and other ecological damage.

The problem entered focus following a rise in utilized cooking oil exports from Asia in recent years that analysts have actually stated involves unrealistically high volumes relative to the quantity of cooking oil used and recovered in the region. The European Union is likewise investigating feedstocks over the fraud concerns.

The EPA audits began after the company upgraded domestic supply-chain accounting requirements in July 2023 for sustainable fuel manufacturers seeking to make credits under the RFS, he said.

"EPA has carried out audits of eco-friendly fuel producers considering that July 2023 that includes, amongst other things, an assessment of the areas that utilized cooking oil used in renewable fuel production was gathered," he said. "These examinations, nevertheless, are ongoing and we are not able to go over continuous enforcement examinations."

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

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

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