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

Derek Bruce edited this page 2025-01-17 23:07:49 +00:00

By Leah Douglas

Aug 7 (Reuters) - The U.S. Epa has released investigations into the supply chains of at least two renewable fuel manufacturers amidst industry issues that some may be using fraudulent feedstocks for biodiesel to secure rewarding government aids.

EPA representative Jeffrey Landis informed Reuters that the firm has introduced audits over the past year, but decreased to recognize the companies targeted since the examinations are continuous.

The production of biodiesel from components, like utilized cooking oil, can earn refiners a variety of state and federal ecological and environment subsidies, including tradable credits under a program administered by the EPA called the Renewable Fuel Standard. But fears have been installing that some products labeled as utilized cooking oil are actually cheaper and less sustainable virgin palm oil, a product that is related to deforestation and other environmental damage.

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

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

"EPA has actually carried out audits of sustainable fuel manufacturers given that July 2023 which includes, to name a few things, an evaluation of the locations that utilized cooking oil used in renewable fuel production was collected," he said. "These examinations, nevertheless, are ongoing and we are unable to discuss ongoing enforcement examinations."

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

"The Biden administration has produced vigorous standards to validate, not simply trust, American manufacturers, and it is vital that the very same examination is applied to imported feedstocks," six 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 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)