By Leah Douglas
Aug 7 (Reuters) - The U.S. Environmental Protection Agency has launched examinations into the supply chains of a minimum of two sustainable fuel manufacturers amid industry issues that some may be using deceitful feedstocks for biodiesel to secure lucrative federal government aids.
EPA representative Jeffrey Landis informed Reuters that the agency has actually introduced audits over the previous year, but decreased to recognize the companies targeted since the examinations are ongoing.
The production of biodiesel from sustainable components, like oil, can earn refiners a multitude of state and federal environmental and climate subsidies, including tradable credits under a program administered by the EPA called the Renewable Fuel Standard. But worries have been installing that some materials labeled as utilized cooking oil are in fact cheaper and less sustainable virgin palm oil, an item that is associated with deforestation and other environmental damage.
The problem came into focus following a rise in utilized cooking oil exports from Asia recently that experts have actually stated includes unrealistically high volumes relative to the quantity of cooking oil used and recuperated in the area. The European Union is also investigating feedstocks over the scams issues.
The EPA audits started after the firm upgraded domestic supply-chain accounting requirements in July 2023 for renewable fuel manufacturers looking for to earn credits under the RFS, he stated.
"EPA has actually carried out audits of eco-friendly fuel producers given that July 2023 which consists of, amongst other things, an assessment of the areas that utilized cooking oil utilized in eco-friendly fuel production was gathered," he stated. "These examinations, nevertheless, are ongoing and we are unable to talk about ongoing enforcement examinations."
U.S. senators from farm states have required more oversight of biofuel feedstocks, saying federal firms need to be as extensive in validating imports as they are auditing domestic supply chains.
"The Biden administration has actually created energetic requirements to confirm, not simply trust, American producers, and it is important 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 companies.
Another letter from 15 senators to the Treasury Department on July 30 prompted the administration to omit imported feedstocks like UCO from an extra tidy 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' Secondhand Cooking Oil Supply
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