By Leah Douglas
Aug 7 (Reuters) - The U.S. Environmental Protection Agency has released examinations into the supply chains of at least 2 eco-friendly fuel manufacturers amidst industry issues that some may be utilizing deceptive feedstocks for biodiesel to protect profitable federal government subsidies.
EPA representative Jeffrey Landis informed Reuters that the agency has launched audits over the previous year, however declined to recognize the companies targeted due to the fact that the examinations are ongoing.
The production of biodiesel from sustainable components, like utilized 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 been mounting that some products identified as used cooking oil are really less expensive and less sustainable virgin palm oil, a product that is associated with deforestation and other environmental damage.
The issue entered focus following a rise in utilized cooking oil exports from Asia in recent years that experts have stated includes unrealistically high volumes relative to the amount of cooking oil utilized and recuperated in the area. The European Union is also examining feedstocks over the scams concerns.
The EPA audits began after the company upgraded domestic supply-chain accounting requirements in July 2023 for producers looking for to earn credits under the RFS, he said.
"EPA has actually conducted audits of sustainable fuel producers because July 2023 which includes, to name a few things, an assessment of the places that used cooking oil utilized in renewable fuel production was gathered," he said. "These examinations, nevertheless, are continuous and we are unable to talk about ongoing enforcement investigations."
U.S. senators from farm states have required more oversight of biofuel feedstocks, saying federal agencies should be as rigorous in confirming imports as they are auditing domestic supply chains.
"The Biden administration has produced energetic requirements to validate, not just trust, American manufacturers, and it is essential that the very same analysis is applied 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)
1
US EPA Says it is Auditing Biofuel Producers' Pre owned Cooking Oil Supply
Margarita Wirth edited this page 3 months ago