After industry worries that some biodiesel producers may be using false feedstocks to obtain lucrative government subsidies, the U.S. Environmental Protection Agency has investigated at least two renewable fuel businesses’ supply chains.
Refineries can receive state and federal environmental and climate subsidies, including EPA Renewable Fuel Standard trading credits, for making biodiesel from sustainable feedstocks such as recycled cooking oil. However, concerns are growing that some used cooking oil is really cheaper and less sustainable than virgin palm oil, which deforests and harms the ecosystem.
Following a recent spike in wasted cooking oil exports from Asia, analysts say the volume is absurdly large compared to the quantity consumed and recovered in the region. Fraud allegations have prompted EU feedstock investigations.
He said EPA checks began in July 2023 after updating domestic supply-chain accounting standards for renewable fuel firms seeking RFS credits.
“EPA has conducted audits of renewable fuel producers since July 2023, which include, among other things, an evaluation of the locations where cooking oil used in renewable fuel production was collected,” he stated. “These investigations, however, are ongoing and we are not able to discuss ongoing enforcement investigations.”
Farm state senators want federal agencies to verify biofuel feedstock imports as thoroughly as domestic supply chains.
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