By Leah Douglas
Aug 7 (Reuters) - The U.S. Environmental Protection Agency has actually released examinations into the supply chains of a minimum of two renewable fuel producers in the middle of industry concerns that some might be utilizing deceptive feedstocks for biodiesel to secure rewarding government subsidies.
EPA spokesperson Jeffrey Landis informed Reuters that the company has introduced audits over the previous year, however decreased to determine the business targeted since the examinations are continuous.
The production of biodiesel from sustainable ingredients, like used cooking oil, can make refiners a slew of state and federal environmental and environment aids, consisting of tradable credits under a program by the EPA called the Renewable Fuel Standard. But fears have been installing that some supplies identified as utilized cooking oil are actually less expensive 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 utilized cooking oil exports from Asia in current years that analysts have actually stated involves unrealistically high volumes relative to the quantity of cooking oil utilized and recovered in the region. The European Union is also examining feedstocks over the scams issues.
The EPA audits began after the firm updated domestic supply-chain accounting requirements in July 2023 for sustainable fuel producers seeking to make credits under the RFS, he said.
"EPA has actually conducted audits of sustainable fuel producers considering that July 2023 which includes, among other things, an assessment of the places that used cooking oil utilized in sustainable fuel production was gathered," he stated. "These examinations, however, are ongoing and we are unable to talk about ongoing enforcement investigations."
U.S. senators from farm states have required more oversight of biofuel feedstocks, saying federal companies need to be as extensive in confirming imports as they are auditing domestic supply chains.
"The Biden administration has actually created vigorous requirements to verify, not just trust, American manufacturers, and it is vital that the exact same examination is used to imported feedstocks," 6 U.S. senators, led by Roger Marshall and Sherrod Brown, composed in a June 20 letter to federal firms.
Another letter from 15 senators to the Treasury Department on July 30 advised the administration to leave out 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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