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

By Leah Douglas

Aug 7 (Reuters) - The U.S. Epa has introduced investigations into the supply chains of a minimum of 2 renewable fuel producers in the middle of industry issues that some might be utilizing deceptive feedstocks for biodiesel to secure profitable government subsidies.

EPA representative Jeffrey Landis told Reuters that the company has actually released audits over the previous year, but declined to recognize the business targeted since the investigations are ongoing.

The production of biodiesel from sustainable active ingredients, like used oil, can make 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 fears have been mounting that some materials identified as used cooking oil are actually more affordable and less sustainable virgin palm oil, a product that is associated with deforestation and other environmental damage.

The problem entered focus following a surge in utilized cooking oil exports from Asia in the last few years that analysts have actually stated includes unrealistically high volumes relative to the quantity of cooking oil utilized and recuperated in the area. The European Union is also examining feedstocks over the fraud issues.

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

"EPA has actually performed audits of eco-friendly fuel producers since July 2023 which consists of, to name a few things, an examination of the locations that utilized cooking oil utilized in eco-friendly fuel production was gathered," he said. "These investigations, however, are ongoing and we are unable to talk about ongoing enforcement investigations."

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

"The Biden administration has developed vigorous standards to validate, not simply trust, American manufacturers, and it is important that the exact same analysis is used to imported feedstocks," six U.S. senators, led by Roger Marshall and Sherrod Brown, composed in a June 20 letter to federal firms.

Another letter from 15 senators to the Treasury Department on July 30 advised 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)