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

Marissa Shipman edited this page 2 months ago

By Leah Douglas

Aug 7 (Reuters) - The U.S. Environmental Protection Agency has actually launched investigations into the supply chains of a minimum of two eco-friendly fuel producers in the middle of industry concerns that some might be using deceptive feedstocks for biodiesel to protect financially rewarding federal government subsidies.

EPA spokesperson Jeffrey Landis informed Reuters that the agency has actually introduced audits over the previous year, however declined to recognize the business targeted since the investigations are ongoing.

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 been installing that some products identified as used cooking oil are actually cheaper and less sustainable virgin palm oil, a product that is related to logging and other environmental damage.

The issue entered focus following a surge in utilized cooking oil exports from Asia in the last few years that experts have actually said involves unrealistically high volumes relative to the quantity of cooking oil used and recuperated in the region. The European Union is likewise investigating feedstocks over the scams issues.

The EPA audits started after the agency upgraded domestic supply-chain accounting requirements in July 2023 for producers looking for to earn credits under the RFS, he stated.

"EPA has actually conducted audits of eco-friendly fuel manufacturers because July 2023 which includes, amongst other things, an examination of the places that used cooking oil utilized in renewable fuel production was collected," he said. "These examinations, however, are continuous and we are unable to talk about continuous enforcement examinations."

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

"The Biden administration has actually developed vigorous standards to verify, not just trust, American producers, and it is essential that the same examination is applied to imported feedstocks," six U.S. senators, led by Roger Marshall and Sherrod Brown, composed in a June 20 letter to federal agencies.

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