By Leah Douglas
Aug 7 (Reuters) - The U.S. Environmental Protection Agency has actually released examinations into the supply chains of a minimum of 2 renewable fuel manufacturers amid market concerns that some may be utilizing deceptive feedstocks for biodiesel to protect profitable government aids.
EPA representative Jeffrey Landis informed Reuters that the firm has released audits over the past year, however declined to determine the companies targeted because the examinations are ongoing.
The production of biodiesel from sustainable active ingredients, like used cooking oil, can make refiners a variety of state and federal ecological and climate aids, including tradable credits under a program administered by the EPA called the Renewable Fuel Standard. But fears have actually been installing that some supplies labeled as oil are in fact less expensive and less sustainable virgin palm oil, a product that is connected with deforestation and other environmental damage.
The issue entered focus following a rise in used cooking oil exports from Asia in recent years that experts have stated includes unrealistically high volumes relative to the amount of cooking oil used and recovered in the area. The European Union is also examining feedstocks over the fraud concerns.
The EPA audits started after the firm upgraded domestic supply-chain accounting requirements in July 2023 for eco-friendly fuel manufacturers looking for to make credits under the RFS, he stated.
"EPA has actually conducted audits of sustainable fuel producers given that July 2023 which consists of, among other things, an evaluation of the places that utilized cooking oil utilized in sustainable fuel production was gathered," he stated. "These investigations, nevertheless, are ongoing and we are not able to go over ongoing enforcement investigations."
U.S. senators from farm states have actually called for more oversight of biofuel feedstocks, stating federal firms should be as strenuous in verifying imports as they are auditing domestic supply chains.
"The Biden administration has actually created energetic requirements to verify, not simply trust, American manufacturers, and it is imperative that the very 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 companies.
Another letter from 15 senators to the Treasury Department on July 30 urged the administration to omit 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)
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US EPA Says it is Auditing Biofuel Producers' used Cooking Oil Supply
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