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US EPA Says it is Auditing Biofuel Producers' used Cooking Oil Supply
Melvina Holte edited this page 2025-01-12 06:12:54 -05:00


By Leah Douglas

Aug 7 (Reuters) - The U.S. Environmental Protection Agency has launched examinations into the supply chains of at least 2 eco-friendly fuel producers amidst market issues that some might be utilizing fraudulent feedstocks for biodiesel to secure rewarding government subsidies.

EPA spokesperson Jeffrey Landis told Reuters that the firm has actually introduced audits over the past year, but decreased to determine the companies targeted because the examinations are ongoing.

The production of biodiesel from sustainable components, like used cooking oil, can earn refiners a multitude of state and federal ecological and environment aids, including tradable credits under a program administered by the EPA called the Renewable Fuel Standard. But fears have been installing that some supplies identified as used cooking oil are really less expensive and less sustainable virgin palm oil, a product that is related to deforestation and other environmental damage.

The issue entered focus following a surge in utilized cooking oil exports from Asia recently that experts have stated includes unrealistically high volumes relative to the amount of cooking oil utilized and recuperated in the area. The European Union is likewise examining feedstocks over the fraud issues.

The EPA audits began after the agency updated domestic supply-chain accounting requirements in July 2023 for sustainable fuel producers looking for to earn credits under the RFS, he stated.

"EPA has carried out audits of renewable fuel producers given that July 2023 that includes, among other things, an assessment of the locations that used cooking oil utilized in eco-friendly fuel production was collected," he said. "These examinations, however, are ongoing and we are unable to go over ongoing enforcement investigations."

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

"The Biden administration has created vigorous requirements to verify, not simply trust, American producers, and it is vital that the very 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 agencies.

Another letter from 15 senators to the Treasury Department on July 30 urged the administration to omit 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 and Matthew Lewis)