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

Leif Vest edited this page 2025-01-12 06:09:48 +08:00

By Leah Douglas

Aug 7 (Reuters) - The U.S. Environmental Protection Agency has actually launched investigations into the supply chains of a minimum of two sustainable fuel manufacturers amidst industry issues that some might be using deceitful feedstocks for biodiesel to secure lucrative federal government subsidies.

EPA spokesperson Jeffrey Landis informed Reuters that the company has launched audits over the previous year, however decreased to recognize the business targeted since the investigations are continuous.

The production of biodiesel from sustainable active ingredients, like oil, can make refiners a slew of state and federal environmental and climate aids, consisting of tradable credits under a program administered by the EPA called the Renewable Fuel Standard. But worries have actually been mounting that some materials labeled as utilized cooking oil are actually more affordable and less sustainable virgin palm oil, a product that is related to deforestation and other environmental damage.

The problem entered into focus following a surge in used cooking oil exports from Asia over the last few years that analysts have actually stated involves unrealistically high volumes relative to the amount of cooking oil used and recuperated in the region. The European Union is also examining feedstocks over the fraud issues.

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

"EPA has carried out audits of renewable fuel manufacturers since July 2023 which consists of, amongst other things, an evaluation of the places that utilized cooking oil used in renewable fuel production was collected," he said. "These investigations, however, are continuous and we are not able to discuss ongoing enforcement investigations."

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

"The Biden administration has developed vigorous requirements to verify, not simply trust, American producers, and it is crucial that the very same scrutiny is used to imported feedstocks," 6 U.S. senators, led by Roger Marshall and Sherrod Brown, composed in a June 20 letter to federal firms.

Another letter from 15 senators to the Treasury Department on July 30 urged the administration to exclude 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)