By Leah Douglas
Aug 7 (Reuters) - The U.S. Epa has actually introduced investigations into the supply chains of at least 2 sustainable fuel manufacturers amid industry concerns that some might be using deceitful feedstocks for biodiesel to protect rewarding federal government aids.
EPA representative Jeffrey Landis informed Reuters that the agency has actually released audits over the past year, but declined to determine the companies targeted since the examinations are ongoing.
The production of biodiesel from sustainable components, like used cooking oil, can earn refiners a multitude of state and federal environmental and environment aids, consisting of tradable credits under a program administered by the EPA called the Renewable Fuel Standard. But fears have actually been installing that some supplies labeled as utilized cooking oil are actually less expensive and less sustainable virgin palm oil, an item that is associated with deforestation and other environmental damage.
The problem entered into focus following a rise in utilized cooking oil exports from Asia in recent years that analysts have actually said includes unrealistically high volumes relative to the amount of cooking oil used and recovered in the area. The is also examining feedstocks over the fraud concerns.
The EPA audits started after the agency updated domestic supply-chain accounting requirements in July 2023 for eco-friendly fuel producers looking for to earn credits under the RFS, he stated.
"EPA has actually performed audits of renewable fuel manufacturers given that July 2023 which consists of, to name a few things, an evaluation of the areas that used cooking oil utilized in renewable fuel production was gathered," he stated. "These investigations, nevertheless, are continuous and we are unable to talk about ongoing enforcement examinations."
U.S. senators from farm states have actually required more oversight of biofuel feedstocks, saying federal agencies should be as strenuous in validating imports as they are auditing domestic supply chains.
"The Biden administration has actually produced vigorous requirements to verify, not just trust, American producers, and it is vital that the very same scrutiny is applied to imported feedstocks," 6 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 urged the administration to omit 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' Pre owned Cooking Oil Supply
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