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

Michale Wentcher edited this page 2025-01-18 06:05:35 +01:00

By Leah Douglas

Aug 7 (Reuters) - The U.S. Epa has launched investigations into the supply chains of a minimum of 2 renewable fuel manufacturers amid industry issues that some may be utilizing fraudulent feedstocks for biodiesel to secure financially rewarding federal government aids.

EPA representative Jeffrey Landis told Reuters that the agency has released audits over the past year, however declined to determine the business targeted due to the fact that the investigations are ongoing.

The production of biodiesel from sustainable ingredients, like utilized cooking oil, can make refiners a variety 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 installing that some products labeled as used cooking oil are in fact more affordable and less sustainable virgin palm oil, an item that is related to logging and other ecological damage.

The problem entered into focus following a surge in used cooking oil exports from Asia in recent years that have said includes unrealistically high volumes relative to the quantity of cooking oil used and recuperated in the area. The European Union is likewise examining feedstocks over the scams issues.

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

"EPA has actually conducted audits of renewable fuel manufacturers given that July 2023 which consists of, to name a few things, an examination of the areas that utilized cooking oil utilized in eco-friendly fuel production was collected," he stated. "These examinations, however, are ongoing and we are unable to discuss ongoing enforcement investigations."

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

"The Biden administration has produced vigorous standards to confirm, not simply trust, American producers, and it is essential that the very same examination is used to imported feedstocks," 6 U.S. senators, led by Roger Marshall and Sherrod Brown, composed in a June 20 letter to federal companies.

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