By Leah Douglas
Aug 7 (Reuters) - The U.S. Epa has actually introduced investigations into the supply chains of at least 2 eco-friendly fuel manufacturers amidst industry concerns that some may be utilizing fraudulent feedstocks for biodiesel to secure financially rewarding federal government aids.
EPA spokesperson Jeffrey Landis informed Reuters that the agency has introduced audits over the previous year, but decreased to identify the business targeted due to the fact that the investigations are ongoing.
The production of biodiesel from sustainable ingredients, like utilized cooking oil, can earn 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 worries have been mounting that some materials labeled as utilized cooking oil are in fact more affordable and less sustainable virgin palm oil, an item that is connected with logging and other environmental damage.
The problem entered into focus following a surge in utilized cooking oil exports from Asia in the last few years that analysts have actually said involves unrealistically high volumes relative to the amount of cooking oil utilized and recuperated in the region. The European Union is also over the scams concerns.
The EPA audits started after the agency upgraded domestic supply-chain accounting requirements in July 2023 for sustainable fuel manufacturers seeking to earn credits under the RFS, he said.
"EPA has performed audits of sustainable fuel manufacturers because July 2023 that includes, to name a few things, an evaluation of the locations that used cooking oil utilized in eco-friendly fuel production was gathered," he said. "These investigations, however, are continuous and we are unable to discuss continuous enforcement investigations."
U.S. senators from farm states have actually required more oversight of biofuel feedstocks, saying federal companies need to be as rigorous in confirming imports as they are auditing domestic supply chains.
"The Biden administration has developed vigorous requirements to confirm, not simply trust, American manufacturers, and it is imperative that the exact 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 exclude imported feedstocks like UCO from an extra clean 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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