By Leah Douglas
Aug 7 (Reuters) - The U.S. Environmental Protection Agency has actually released investigations into the supply chains of a minimum of two eco-friendly fuel manufacturers amid market concerns that some may be utilizing fraudulent feedstocks for biodiesel to protect lucrative government aids.
EPA spokesperson Jeffrey Landis told Reuters that the company has actually launched audits over the previous year, but decreased to identify the companies targeted since the examinations are continuous.
The production of biodiesel from sustainable ingredients, like utilized cooking oil, can make refiners a multitude of state and federal ecological and environment aids, including tradable credits under a program administered by the EPA called the Renewable Fuel Standard. But have actually been installing that some supplies labeled as utilized cooking oil are actually less expensive and less sustainable virgin palm oil, a product that is connected with logging and other ecological damage.
The issue came into focus following a rise in used cooking oil exports from Asia in recent years that analysts have actually stated includes unrealistically high volumes relative to the amount of cooking oil used and recovered in the region. The European Union is likewise examining feedstocks over the scams issues.
The EPA audits began after the firm updated domestic supply-chain accounting requirements in July 2023 for eco-friendly fuel producers seeking to make credits under the RFS, he said.
"EPA has actually carried out audits of eco-friendly fuel producers since July 2023 that includes, to name a few things, an assessment of the places that utilized cooking oil utilized in eco-friendly fuel production was collected," he said. "These investigations, however, are ongoing and we are not able to talk about ongoing enforcement examinations."
U.S. senators from farm states have actually called for more oversight of biofuel feedstocks, saying federal firms need to be as strenuous in validating imports as they are auditing domestic supply chains.
"The Biden administration has actually produced vigorous requirements to confirm, not just trust, American producers, and it is imperative that the very same analysis is applied to imported feedstocks," six 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 prompted the administration to exclude 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' used Cooking Oil Supply
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