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US EPA Says it is Auditing Biofuel Producers' used Cooking Oil Supply

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1 US EPA Says it is Auditing Biofuel Producers' used Cooking Oil Supply

Arianne Cuper edited this page 6 months ago

By Leah Douglas

Aug 7 (Reuters) - The U.S. Epa has actually introduced investigations into the supply chains of at least 2 eco-friendly fuel producers amidst industry concerns that some may be using deceitful feedstocks for biodiesel to secure lucrative government aids.

EPA spokesperson Jeffrey Landis told Reuters that the company has launched audits over the previous year, but decreased to determine the companies targeted since the investigations are continuous.

The production of biodiesel from sustainable active ingredients, like used cooking oil, can make refiners a multitude of state and federal environmental and climate subsidies, consisting of tradable credits under a program administered by the EPA called the Renewable Fuel Standard. But fears have actually been mounting that some materials labeled as utilized cooking oil are actually less expensive and less sustainable virgin palm oil, a product that is related to deforestation and other environmental damage.

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

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

"EPA has actually conducted audits of sustainable fuel manufacturers because July 2023 that includes, among other things, an examination of the places that used cooking oil utilized in sustainable fuel production was collected," he said. "These investigations, nevertheless, are continuous and we are not able to talk about 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 created energetic requirements to confirm, not just trust, American manufacturers, and it is imperative that the exact same examination is applied to imported feedstocks," six U.S. senators, led by Roger Marshall and Sherrod Brown, wrote in a June 20 letter to federal companies.

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