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

Aug 7 (Reuters) - The U.S. Environmental Protection Agency has introduced examinations into the supply chains of a minimum of two eco-friendly fuel manufacturers amid industry issues that some might be using fraudulent feedstocks for biodiesel to protect rewarding federal government aids.

EPA representative Jeffrey Landis told Reuters that the firm has actually launched audits over the past year, however declined to determine the business targeted because the examinations are continuous.

The production of from sustainable ingredients, like used cooking oil, can make refiners a slew of state and federal ecological and climate aids, consisting of tradable credits under a program administered by the EPA called the Renewable Fuel Standard. But worries have actually been mounting that some products labeled as utilized cooking oil are in fact more affordable and less sustainable virgin palm oil, a product that is connected with logging and other ecological damage.

The concern entered into focus following a surge in utilized cooking oil exports from Asia over the last few years that analysts have actually stated involves unrealistically high volumes relative to the amount of cooking oil utilized and recuperated in the region. The European Union is also examining feedstocks over the fraud concerns.

The EPA audits started after the company upgraded domestic supply-chain accounting requirements in July 2023 for eco-friendly fuel producers looking for to earn credits under the RFS, he stated.

"EPA has carried out audits of sustainable fuel producers given that July 2023 which consists of, amongst other things, an examination of the areas that used cooking oil used in sustainable fuel production was gathered," he said. "These examinations, nevertheless, are ongoing and we are not able to go over ongoing enforcement examinations."

U.S. senators from farm states have actually required more oversight of biofuel feedstocks, saying federal agencies must be as extensive in validating imports as they are auditing domestic supply chains.

"The Biden administration has produced vigorous requirements to verify, not just trust, American producers, and it is vital that the 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 exclude imported feedstocks like UCO from an additional tidy fuel tax credit program passed in the Inflation Reduction Act. (Reporting by Leah Douglas in Washington Editing by Richard Valdmanis and Matthew Lewis)