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By Leah Douglas
Aug 7 (Reuters) - The U.S. Agency has introduced investigations into the supply chains of at least two sustainable fuel manufacturers amidst market issues that some might be using deceitful feedstocks for biodiesel to protect profitable federal government aids.
EPA representative Jeffrey Landis told Reuters that the agency has actually released audits over the past year, however decreased to identify the business targeted since the examinations are ongoing.
The production of biodiesel from sustainable active ingredients, like used cooking oil, can earn refiners a multitude of state and federal ecological and climate aids, including tradable credits under a program administered by the EPA called the Renewable Fuel Standard. But worries have been mounting that some materials labeled as used cooking oil are in fact less expensive and less sustainable virgin palm oil, an item that is associated with logging and other ecological damage.
The problem came into focus following a surge in used cooking oil exports from Asia in recent years that experts have stated involves unrealistically high volumes relative to the quantity of cooking oil used and recovered in the region. The European Union is likewise investigating feedstocks over the fraud issues.
The EPA audits started after the agency upgraded domestic supply-chain accounting requirements in July 2023 for sustainable fuel producers looking for to make credits under the RFS, he said.
“EPA has conducted audits of renewable fuel manufacturers since July 2023 that includes, to name a few things, an assessment of the locations that used cooking oil utilized in eco-friendly fuel production was collected,” he said. “These examinations, however, are continuous and we are unable to discuss continuous enforcement examinations.”
U.S. senators from farm states have called for more oversight of biofuel feedstocks, stating federal firms should be as strenuous in confirming 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 imperative that the same examination 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 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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