1 US EPA Says it is Auditing Biofuel Producers' used Cooking Oil Supply
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By Leah Douglas

Aug 7 (Reuters) - The U.S. Epa has launched investigations into the supply chains of a minimum of two eco-friendly fuel producers in the middle of market issues that some might be using deceptive feedstocks for biodiesel to secure profitable government subsidies.

EPA representative Jeffrey Landis informed Reuters that the firm has launched audits over the past year, however decreased to identify the companies targeted due to the fact that the examinations are ongoing.

The production of biodiesel from sustainable components, like utilized cooking oil, can earn refiners a multitude 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 utilized cooking oil are in fact more affordable and less sustainable virgin palm oil, an item that is associated with deforestation and other ecological damage.

The issue came into focus following a rise in used cooking oil exports from Asia recently that experts have said includes unrealistically high volumes relative to the amount of cooking oil used and recovered in the region. The European Union is also examining feedstocks over the fraud issues.

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

"EPA has actually performed audits of sustainable fuel manufacturers considering that July 2023 which includes, amongst other things, an examination of the areas that used cooking oil utilized in eco-friendly fuel production was collected," he stated. "These examinations, however, are ongoing and we are unable to discuss ongoing enforcement investigations."

U.S. senators from farm states have called for more oversight of biofuel feedstocks, stating federal companies must be as rigorous in verifying imports as they are auditing domestic supply chains.

"The Biden administration has developed vigorous requirements to verify, not simply trust, American manufacturers, and it is crucial that the exact same scrutiny 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 prompted the administration to leave out imported feedstocks like UCO from an fuel tax credit program passed in the Inflation Reduction Act. (Reporting by Leah Douglas in Washington Editing by Richard Valdmanis and Matthew Lewis)