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US EPA Says it is Auditing Biofuel Producers' used Cooking Oil Supply
Consuelo Distefano edited this page 2025-01-17 14:43:46 -06:00


By Leah Douglas

Aug 7 (Reuters) - The U.S. Environmental Protection Agency has released investigations into the supply chains of a minimum of 2 sustainable fuel producers amid industry issues that some might be utilizing deceptive feedstocks for biodiesel to protect lucrative federal government subsidies.

EPA representative Jeffrey Landis informed Reuters that the agency has actually released audits over the past year, but decreased to identify the companies targeted because the investigations are ongoing.

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

The concern entered into focus following a surge in utilized cooking oil exports from Asia recently that experts have actually stated involves unrealistically high volumes relative to the amount of cooking oil used and recovered in the area. The European Union is likewise examining feedstocks over the fraud concerns.

The EPA audits started after the firm updated domestic requirements in July 2023 for renewable fuel producers seeking to make credits under the RFS, he stated.

"EPA has conducted audits of renewable fuel manufacturers since July 2023 which includes, to name a few things, an evaluation of the locations that used cooking oil utilized in renewable fuel production was gathered," he stated. "These examinations, nevertheless, are ongoing and we are unable to talk about ongoing enforcement examinations."

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

"The Biden administration has actually developed vigorous standards to confirm, not just trust, American manufacturers, and it is vital that the very 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 advised the administration to omit imported feedstocks like UCO from an additional clean fuel tax credit program passed in the Inflation Reduction Act. (Reporting by Leah Douglas in Washington Editing by Richard Valdmanis and Matthew Lewis)