By Leah Douglas
Aug 7 (Reuters) - The U.S. Environmental Protection Agency has released examinations into the supply chains of at least two renewable fuel manufacturers amidst industry concerns that some may be utilizing fraudulent feedstocks for biodiesel to secure lucrative federal government subsidies.
EPA representative Jeffrey Landis told Reuters that the firm has launched audits over the past year, however declined to recognize the business targeted because the examinations are ongoing.
The production of biodiesel from sustainable ingredients, like utilized cooking oil, can earn refiners a slew 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 mounting that some materials labeled as used cooking oil are in fact less expensive and less sustainable virgin palm oil, a product that is related to deforestation 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 actually stated includes unrealistically high volumes relative to the quantity of cooking oil used and recovered in the area. The European Union is also examining feedstocks over the scams concerns.
The EPA audits began after the firm upgraded domestic supply-chain accounting requirements in July 2023 for eco-friendly fuel producers seeking to make credits under the RFS, he stated.
"EPA has actually carried out audits of eco-friendly fuel producers because July 2023 that includes, to name a few things, an assessment of the locations that utilized cooking oil utilized in sustainable fuel production was collected," he stated. "These examinations, however, are continuous and we are unable to discuss continuous enforcement investigations."
U.S. senators from farm states have required more oversight of biofuel feedstocks, saying federal firms must be as rigorous in confirming imports as they are auditing domestic supply chains.
"The Biden administration has actually produced vigorous standards to verify, not simply trust, American manufacturers, and it is crucial that the exact 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 firms.
Another letter from 15 senators to the Treasury Department on July 30 advised the administration to omit imported feedstocks like UCO from an additional clean fuel tax credit program passed in the Inflation Reduction Act. ( by Leah Douglas in Washington Editing by Richard Valdmanis and Matthew Lewis)
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US EPA Says it is Auditing Biofuel Producers' used Cooking Oil Supply
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