By Leah Douglas
Aug 7 (Reuters) - The U.S. Epa has introduced investigations into the supply chains of at least two eco-friendly fuel producers in the middle of market issues that some may be using deceptive feedstocks for biodiesel to secure rewarding government subsidies.
EPA representative Jeffrey Landis told Reuters that the firm has actually released audits over the previous year, but decreased to recognize the business targeted because the investigations are ongoing.
The production of biodiesel from sustainable components, like used cooking oil, can make refiners a variety of state and and climate subsidies, consisting of tradable credits under a program administered by the EPA called the Renewable Fuel Standard. But fears have been installing that some products labeled as used cooking oil are in fact more affordable and less sustainable virgin palm oil, a product that is related to deforestation and other environmental damage.
The problem entered focus following a surge in used cooking oil exports from Asia over the last few years that analysts have actually said includes unrealistically high volumes relative to the quantity of cooking oil utilized and recuperated in the area. The European Union is also examining feedstocks over the fraud concerns.
The EPA audits began after the company updated domestic supply-chain accounting requirements in July 2023 for eco-friendly fuel producers seeking to make credits under the RFS, he stated.
"EPA has carried out audits of sustainable fuel producers since July 2023 that includes, amongst other things, an evaluation of the locations that utilized cooking oil used in renewable fuel production was gathered," he said. "These examinations, however, are ongoing and we are not able to go over continuous enforcement investigations."
U.S. senators from farm states have actually required more oversight of biofuel feedstocks, saying federal agencies should be as extensive in confirming imports as they are auditing domestic supply chains.
"The Biden administration has created energetic standards to validate, not just trust, American producers, and it is necessary that the same analysis is applied to imported feedstocks," 6 U.S. senators, led by Roger Marshall and Sherrod Brown, wrote in a June 20 letter to federal agencies.
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
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