By Leah Douglas
Aug 7 (Reuters) - The U.S. Epa has actually launched examinations into the supply chains of at least two eco-friendly fuel producers amidst market issues that some may be using deceitful feedstocks for biodiesel to secure lucrative federal government subsidies.
EPA spokesperson Jeffrey Landis informed Reuters that the firm has actually released audits over the previous year, but decreased to determine the business targeted since the investigations are .
The production of biodiesel from sustainable components, like utilized cooking oil, can make refiners a variety of state and federal environmental and environment aids, consisting of tradable credits under a program administered by the EPA called the Renewable Fuel Standard. But fears have actually been installing that some products identified as utilized cooking oil are in fact cheaper and less sustainable virgin palm oil, an item that is connected with deforestation and other ecological damage.
The issue entered focus following a rise in used cooking oil exports from Asia in the last few years that analysts have said includes unrealistically high volumes relative to the quantity of cooking oil utilized and recovered in the region. The European Union is also investigating feedstocks over the scams concerns.
The EPA audits started after the company upgraded 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 performed audits of sustainable fuel manufacturers since July 2023 which consists of, to name a few things, an evaluation of the areas that utilized cooking oil utilized in eco-friendly fuel production was collected," he said. "These investigations, however, are continuous and we are not able to go over ongoing enforcement investigations."
U.S. senators from farm states have required more oversight of biofuel feedstocks, stating federal companies must be as rigorous in validating imports as they are auditing domestic supply chains.
"The Biden administration has actually created energetic requirements to verify, not just trust, American producers, and it is necessary that the exact same examination is used 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 urged 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
Marcelino Hardy edited this page 2025-01-12 01:06:04 +08:00