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US EPA Says it is Auditing Biofuel Producers' Secondhand Cooking Oil Supply
Rebecca Froggatt edited this page 2025-01-15 22:36:46 +08:00


By Leah Douglas

Aug 7 (Reuters) - The U.S. Environmental Protection Agency has launched investigations into the supply chains of a minimum of 2 eco-friendly fuel manufacturers in the middle of market concerns that some may be utilizing deceitful feedstocks for biodiesel to protect financially rewarding federal government subsidies.

EPA spokesperson Jeffrey Landis informed Reuters that the company has launched audits over the past year, but declined to recognize the companies targeted due to the fact that the examinations are continuous.

The production of biodiesel from sustainable ingredients, like utilized cooking oil, can earn refiners a variety of state and federal ecological and climate aids, including tradable credits under a program administered by the EPA called the Renewable Fuel Standard. But worries have actually been installing that some products identified as utilized cooking oil are in fact cheaper and less sustainable virgin palm oil, a product that is connected with logging and other ecological damage.

The problem came into focus following a rise in utilized cooking oil exports from Asia in current years that experts have actually said includes unrealistically high volumes relative to the amount of cooking oil used and recovered in the region. The European Union is also investigating feedstocks over the fraud concerns.

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

"EPA has conducted audits of renewable fuel producers given that July 2023 which consists of, among other things, an examination of the places that utilized cooking oil utilized in renewable fuel production was gathered," he said. "These investigations, however, are ongoing and we are unable to go over continuous enforcement examinations."

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

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

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