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US EPA Says it is Auditing Biofuel Producers' Pre owned Cooking Oil Supply
Blaine Mooring edited this page 2025-01-11 17:21:30 -06:00


By Leah Douglas

Aug 7 (Reuters) - The U.S. Epa has launched investigations into the supply chains of a minimum of 2 eco-friendly fuel producers amidst market issues that some might be utilizing deceitful feedstocks for biodiesel to protect lucrative government subsidies.

EPA spokesperson Jeffrey Landis informed Reuters that the agency has actually released audits over the past year, however declined to recognize the business targeted since the investigations are ongoing.

The production of biodiesel from sustainable active ingredients, like used cooking oil, can make refiners a slew of state and federal ecological and climate aids, consisting of tradable credits under a program administered by the EPA called the Standard. But worries have been installing that some supplies labeled as utilized cooking oil are actually less expensive and less sustainable virgin palm oil, an item that is connected with logging and other ecological damage.

The concern entered focus following a rise in utilized cooking oil exports from Asia recently that experts have said includes unrealistically high volumes relative to the quantity of cooking oil used and recovered in the area. The European Union is likewise examining feedstocks over the fraud concerns.

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

"EPA has actually conducted audits of sustainable fuel producers considering that July 2023 that includes, among other things, an assessment of the areas that used cooking oil used in eco-friendly fuel production was gathered," he stated. "These investigations, nevertheless, are continuous and we are unable to discuss ongoing enforcement investigations."

U.S. senators from farm states have actually required more oversight of biofuel feedstocks, saying federal agencies ought to be as strenuous in verifying imports as they are auditing domestic supply chains.

"The Biden administration has created vigorous requirements to validate, not just trust, American manufacturers, and it is imperative that the exact 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 prompted the administration to leave out imported feedstocks like UCO from an additional tidy fuel tax credit program passed in the Inflation Reduction Act. (Reporting by Leah Douglas in Washington Editing by Richard Valdmanis and Matthew Lewis)