By Leah Douglas
Aug 7 (Reuters) - The U.S. Environmental Protection Agency has actually introduced examinations into the supply chains of at least 2 eco-friendly fuel manufacturers in the middle of market concerns that some may be utilizing deceptive feedstocks for biodiesel to protect rewarding government subsidies.
EPA spokesperson Jeffrey Landis informed Reuters that the firm has introduced audits over the past year, however declined to determine the business targeted because the investigations are continuous.
The production of biodiesel from sustainable active ingredients, like used cooking oil, can make refiners a variety of state and federal environmental and climate subsidies, including tradable credits under a program administered by the EPA called the Renewable Fuel . But fears have been mounting that some materials identified as utilized cooking oil are really more affordable and less sustainable virgin palm oil, a product that is related to deforestation and other ecological damage.
The problem entered into focus following a surge in used cooking oil exports from Asia recently that analysts have actually stated includes unrealistically high volumes relative to the amount of cooking oil utilized and recuperated in the region. The European Union is likewise examining feedstocks over the scams concerns.
The EPA audits began after the company updated domestic supply-chain accounting requirements in July 2023 for eco-friendly fuel manufacturers seeking to earn credits under the RFS, he stated.
"EPA has actually carried out audits of sustainable fuel producers since July 2023 that includes, to name a few things, an examination of the locations that utilized cooking oil utilized in eco-friendly fuel production was gathered," he said. "These examinations, however, are ongoing and we are not able to discuss continuous enforcement examinations."
U.S. senators from farm states have actually required more oversight of biofuel feedstocks, stating federal firms should be as strenuous in validating imports as they are auditing domestic supply chains.
"The Biden administration has developed vigorous requirements to confirm, not just trust, American manufacturers, and it is essential that the exact same examination 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 omit imported feedstocks like UCO from an extra 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
Gracie Scarbrough edited this page 3 months ago