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US EPA Says it is Auditing Biofuel Producers' Pre-owned Cooking Oil Supply
Melvina Holte edited this page 2025-01-16 05:16:02 -05:00


By Leah Douglas

Aug 7 (Reuters) - The U.S. Environmental Protection Agency has launched examinations into the supply chains of a minimum of 2 sustainable fuel manufacturers in the middle of industry issues that some may be using fraudulent feedstocks for biodiesel to secure profitable federal government subsidies.

EPA spokesperson Jeffrey Landis told Reuters that the agency has released audits over the previous year, but declined to identify the business targeted due to the fact that the investigations are continuous.

The production of biodiesel from sustainable ingredients, like used cooking oil, can earn refiners a slew of state and federal environmental and environment aids, consisting of tradable credits under a program administered by the EPA called the Renewable Fuel Standard. But fears have been mounting that some supplies identified as utilized cooking oil are in fact less expensive and less sustainable virgin palm oil, an item that is related to deforestation and other ecological damage.

The concern entered into focus following a rise in used cooking oil exports from Asia in the last few years that experts have said includes high volumes relative to the quantity of cooking oil utilized and recuperated in the region. The European Union is likewise examining feedstocks over the scams issues.

The EPA audits started after the company upgraded domestic supply-chain accounting requirements in July 2023 for eco-friendly fuel producers seeking to earn credits under the RFS, he stated.

"EPA has conducted audits of sustainable fuel manufacturers because July 2023 which consists of, among other things, an assessment of the locations that utilized cooking oil utilized in eco-friendly fuel production was collected," he stated. "These investigations, however, are continuous and we are unable to discuss continuous enforcement examinations."

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

"The Biden administration has produced energetic requirements to validate, not just trust, American producers, and it is imperative that the same scrutiny is used 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 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)