By Leah Douglas
Aug 7 (Reuters) - The U.S. Environmental Protection Agency has actually introduced examinations into the supply chains of a minimum of 2 sustainable fuel producers in the middle of market concerns that some might be using deceitful feedstocks for biodiesel to secure financially rewarding government subsidies.
EPA representative Jeffrey Landis told Reuters that the company has introduced audits over the past year, however decreased to identify the business targeted because the examinations are ongoing.
The production of biodiesel from sustainable ingredients, like used cooking oil, can make refiners a multitude of state and federal ecological and climate subsidies, including tradable credits under a program administered by the EPA called the Renewable Fuel Standard. But worries have actually been mounting that some supplies labeled as utilized cooking oil are in fact less expensive and less sustainable virgin palm oil, a product that is associated with deforestation and other ecological damage.
The concern entered into focus following a rise in used cooking oil exports from Asia over the last few years that analysts have actually stated involves unrealistically high volumes relative to the quantity of cooking oil used and recuperated in the region. The European Union is likewise investigating feedstocks over the scams concerns.
The EPA audits began after the company upgraded domestic supply-chain accounting requirements in July 2023 for eco-friendly fuel producers seeking to earn credits under the RFS, he said.
"EPA has actually conducted audits of eco-friendly fuel producers since July 2023 which includes, to name a few things, an assessment of the locations that utilized cooking oil used in eco-friendly fuel production was collected," he stated. "These investigations, nevertheless, are ongoing and we are not able to talk about continuous enforcement investigations."
U.S. from farm states have required more oversight of biofuel feedstocks, stating federal companies must be as extensive in verifying imports as they are auditing domestic supply chains.
"The Biden administration has developed vigorous requirements to validate, not just trust, American producers, and it is vital that the exact same examination is applied 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 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' used Cooking Oil Supply
Lolita Worsham edited this page 2025-01-18 01:11:34 +00:00