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

Helena Laster edited this page 2025-03-07 11:05:41 +00:00

By Leah Douglas

Aug 7 (Reuters) - The U.S. Epa has actually into the supply chains of at least 2 renewable fuel manufacturers amidst market issues that some might be utilizing fraudulent feedstocks for biodiesel to secure profitable federal government aids.

EPA spokesperson Jeffrey Landis informed Reuters that the company has released audits over the past year, however declined to determine the business targeted due to the fact that the examinations are continuous.

The production of biodiesel from sustainable components, like used cooking oil, can make refiners a multitude of state and federal environmental and environment subsidies, consisting of tradable credits under a program administered by the EPA called the Renewable Fuel Standard. But fears have been mounting that some materials identified as utilized cooking oil are actually cheaper and less sustainable virgin palm oil, an item that is related to logging and other environmental damage.

The issue entered into focus following a surge in utilized cooking oil exports from Asia over the last few years that analysts have said includes unrealistically high volumes relative to the quantity of cooking oil utilized and recuperated in the area. The European Union is likewise investigating feedstocks over the scams concerns.

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

"EPA has carried out audits of renewable fuel manufacturers since July 2023 which consists of, to name a few things, an evaluation of the locations that used cooking oil utilized in sustainable fuel production was collected," he stated. "These examinations, nevertheless, are continuous and we are not able to go over ongoing enforcement investigations."

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

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

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