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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
Lane Tryon edited this page 2025-01-12 06:44:39 +00:00


By Leah Douglas

Aug 7 (Reuters) - The U.S. Environmental Protection Agency has into the supply chains of at least 2 eco-friendly fuel producers in the middle of industry issues that some might be utilizing fraudulent feedstocks for biodiesel to secure profitable government subsidies.

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

The production of biodiesel from sustainable ingredients, like utilized cooking oil, can earn refiners a variety 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 fears have actually been mounting that some materials identified as used cooking oil are really cheaper and less sustainable virgin palm oil, a product that is connected with logging and other ecological damage.

The concern entered into focus following a rise in utilized cooking oil exports from Asia over the last few years that analysts have actually stated involves unrealistically high volumes relative to the amount of cooking oil used and recuperated in the region. The European Union is likewise examining feedstocks over the fraud issues.

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

"EPA has actually conducted audits of eco-friendly fuel producers considering that July 2023 that includes, among other things, an examination of the areas that used cooking oil used in sustainable fuel production was collected," he said. "These examinations, nevertheless, are continuous and we are not able to discuss ongoing enforcement examinations."

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

"The Biden administration has developed energetic requirements to confirm, not just trust, American manufacturers, and it is essential that the same scrutiny is used to imported feedstocks," 6 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 urged the administration to exclude 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)