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

By Leah Douglas

Aug 7 (Reuters) - The U.S. Epa has actually released investigations into the supply chains of at least 2 sustainable fuel producers amid market issues that some might be using deceptive feedstocks for biodiesel to secure rewarding government subsidies.

EPA representative Jeffrey Landis told Reuters that the firm has released audits over the past year, but decreased to recognize the companies targeted since the examinations are continuous.

The production of biodiesel from sustainable ingredients, like utilized cooking oil, can earn refiners a slew 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 been installing that some materials labeled as utilized cooking oil are really cheaper and less sustainable virgin palm oil, an item that is associated with deforestation and other ecological damage.

The concern entered focus following a surge in used cooking oil exports from Asia recently that analysts have actually stated involves unrealistically high volumes relative to the quantity of cooking oil used and recovered in the area. The European Union is likewise investigating feedstocks over the fraud issues.

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

"EPA has carried out audits of renewable fuel producers considering that July 2023 that includes, amongst other things, an evaluation of the locations that used cooking oil used in eco-friendly fuel production was collected," he stated. "These investigations, however, are ongoing and we are unable to go over continuous enforcement examinations."

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

"The Biden administration has actually produced vigorous standards to validate, not simply trust, American manufacturers, and it is crucial that the exact same examination is applied 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 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 Editing by Richard Valdmanis and Matthew Lewis)

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