By Leah Douglas
Aug 7 (Reuters) - The U.S. Environmental Protection Agency has actually released investigations into the supply chains of at least 2 renewable fuel manufacturers amidst market issues that some might be using deceptive feedstocks for biodiesel to secure financially rewarding government aids.
EPA spokesperson Jeffrey Landis told Reuters that the firm has launched audits over the past year, however declined to recognize the companies targeted because the examinations are ongoing.
The production of biodiesel from sustainable active ingredients, like utilized cooking oil, can earn refiners a variety of state and federal environmental and environment subsidies, consisting of tradable credits under a program administered by the EPA called the Renewable Fuel Standard. But fears have actually been installing that some products identified as used cooking oil are actually cheaper and less sustainable virgin palm oil, a product that is related to deforestation and other environmental damage.
The concern came into focus following a surge in utilized cooking oil exports from Asia over the last few years that experts have actually said involves unrealistically high volumes relative to the amount of cooking oil used and in the region. The European Union is likewise examining feedstocks over the fraud issues.
The EPA audits began after the firm upgraded domestic supply-chain accounting requirements in July 2023 for sustainable fuel producers looking for to earn credits under the RFS, he said.
"EPA has conducted audits of eco-friendly fuel producers given that July 2023 which includes, among other things, an examination of the areas that utilized cooking oil used in renewable fuel production was collected," he said. "These examinations, nevertheless, are ongoing and we are unable to discuss ongoing enforcement examinations."
U.S. senators from farm states have required more oversight of biofuel feedstocks, stating federal companies should be as rigorous in validating imports as they are auditing domestic supply chains.
"The Biden administration has actually produced vigorous standards to validate, not just trust, American manufacturers, and it is essential 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 companies.
Another letter from 15 senators to the Treasury Department on July 30 urged 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
Roland Gagner edited this page 2025-01-13 06:41:12 +00:00