1 US EPA Says it is Auditing Biofuel Producers' used Cooking Oil Supply
Aaron Fulcher edited this page 7 days ago


By Leah Douglas

Aug 7 (Reuters) - The U.S. Environmental Protection Agency has actually released investigations into the supply chains of a minimum of 2 sustainable fuel manufacturers in the middle of market concerns that some might be using fraudulent feedstocks for biodiesel to protect profitable federal government subsidies.

EPA spokesperson Jeffrey Landis informed Reuters that the company has introduced audits over the past year, but decreased to determine the companies targeted due to the fact that the investigations are continuous.

The production of biodiesel from sustainable active ingredients, like utilized cooking oil, can earn refiners a slew of state and federal ecological and environment aids, consisting of tradable credits under a program administered by the EPA called the Renewable Fuel Standard. But worries have actually been mounting that some materials labeled as used cooking oil are actually cheaper and less sustainable virgin palm oil, a product that is related to logging and other ecological damage.

The issue entered focus following a surge in utilized cooking oil exports from Asia in the last few years that analysts have said involves unrealistically high volumes relative to the quantity of cooking oil utilized and recovered in the region. The European Union is also examining feedstocks over the fraud issues.

The EPA audits began after the agency upgraded domestic supply-chain accounting requirements in July 2023 for renewable fuel manufacturers looking for to earn credits under the RFS, he said.

"EPA has actually performed audits of eco-friendly fuel producers given that July 2023 that includes, to name a few things, an assessment of the areas that used cooking oil used in eco-friendly fuel production was gathered," he said. "These examinations, however, are ongoing and we are not able to discuss ongoing enforcement investigations."

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

"The Biden administration has produced energetic requirements to confirm, not just trust, American producers, and it is crucial that the same examination is used to imported feedstocks," six U.S. senators, led by Roger Marshall and Sherrod Brown, wrote 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 fuel tax credit program passed in the Inflation Reduction Act. (Reporting by Leah Douglas in Washington Editing by Richard Valdmanis and Matthew Lewis)