By Leah Douglas
Aug 7 (Reuters) - The U.S. Environmental Protection Agency has launched investigations into the supply chains of a minimum of 2 renewable fuel producers amidst industry concerns that some may be using deceitful feedstocks for biodiesel to protect financially rewarding government aids.
EPA spokesperson Jeffrey Landis informed Reuters that the company has actually released audits over the past year, but declined to recognize the business targeted because the investigations are continuous.
The production of biodiesel from sustainable active ingredients, like utilized cooking oil, can make refiners a variety of state and federal environmental and environment subsidies, including tradable credits under a program administered by the EPA called the Renewable Fuel Standard. But fears have actually been installing that some materials identified as used cooking oil are really less expensive and less sustainable virgin palm oil, a product that is related to deforestation and other ecological damage.
The problem came into focus following a rise in utilized cooking oil exports from Asia over the last few years that analysts have actually said includes unrealistically high volumes relative to the quantity of cooking oil utilized and recovered in the area. The European Union is also examining feedstocks over the scams concerns.
The EPA audits began after the agency updated domestic supply-chain accounting requirements in July 2023 for renewable fuel manufacturers seeking to earn credits under the RFS, he stated.
"EPA has actually performed audits of renewable fuel producers considering that July 2023 which includes, to name a few things, an examination of the locations that used cooking oil used in eco-friendly fuel production was collected," he said. "These investigations, however, are ongoing and we are unable to go over ongoing enforcement examinations."
U.S. senators from farm states have required more oversight of biofuel feedstocks, saying federal companies should be as strenuous in verifying imports as they are auditing chains.
"The Biden administration has produced vigorous standards to confirm, not just trust, American producers, and it is vital that the very same examination 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 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)
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US EPA Says it is Auditing Biofuel Producers' Secondhand Cooking Oil Supply
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