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Page: US EPA Says it is Auditing Biofuel Producers' Pre-owned Cooking Oil Supply
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1 US EPA Says it is Auditing Biofuel Producers' Pre-owned Cooking Oil Supply
Gordon Duquette edited this page 2025-01-18 03:37:30 +00:00


By Leah Douglas

Aug 7 (Reuters) - The U.S. Environmental Protection Agency has actually introduced investigations into the supply chains of at least two eco-friendly amid market issues that some might be utilizing deceptive feedstocks for biodiesel to secure profitable federal government aids.

EPA spokesperson Jeffrey Landis informed Reuters that the agency has actually launched audits over the previous year, however declined to recognize the business targeted due to the fact that the investigations are continuous.

The production of biodiesel from sustainable active ingredients, like used cooking oil, can make refiners a variety 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 identified as used cooking oil are really more affordable and less sustainable virgin palm oil, a product that is associated with deforestation and other ecological damage.

The concern entered focus following a rise in used cooking oil exports from Asia in recent years that experts have actually stated includes unrealistically high volumes relative to the quantity of cooking oil utilized and recuperated in the area. The European Union is also investigating feedstocks over the fraud concerns.

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

"EPA has actually conducted audits of eco-friendly fuel producers given that July 2023 that includes, amongst other things, an evaluation of the areas that utilized cooking oil utilized in renewable fuel production was collected," he stated. "These examinations, nevertheless, are continuous and we are unable to talk about ongoing enforcement investigations."

U.S. senators from farm states have called for more oversight of biofuel feedstocks, saying federal companies need to be as strenuous in validating imports as they are auditing domestic supply chains.

"The Biden administration has actually developed vigorous requirements to validate, not just trust, American manufacturers, and it is crucial that the same scrutiny is used to imported feedstocks," 6 U.S. senators, led by Roger Marshall and Sherrod Brown, wrote in a June 20 letter to federal firms.

Another letter from 15 senators to the Treasury Department on July 30 prompted the administration to exclude 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)