EPA Cracks Down on Questionable Biodiesel Supply Chains
Investigation Launched
By Leah Douglas
The U.S. Environmental Protection Agency (EPA) is diving into the supply chains of at least two renewable fuel producers. The buzz in the industry suggests some might be pulling a fast one, using questionable feedstocks for biodiesel to cash in on hefty government subsidies. Yikes!
Keeping Secrets
Ongoing Audits
EPA spokesperson Jeffrey Landis shared with reporters that the audits have been underway for the past year but kept mum about which companies are in the hot seat. After all, these investigations are still rolling along, and they want to keep their cards close to their chest.
The Biodiesel Buzz
Green Energy Gone Wrong?
Producing biodiesel from goodies like used cooking oil can earn refiners a treasure trove of state and federal incentives, including tradable credits through the EPA’s Renewable Fuel Standard. But there’s growing concern that some so-called used cooking oil is really sneaky, cheaper virgin palm oil. And we all know how that can lead to deforestation and other eco-trouble!
Asia’s Oil Exports Under Scrutiny
Rising Exports Raise Eyebrows
All this chatter came after a spike in used cooking oil exports from Asia, which experts say looks downright suspicious given the wildly high volumes. Even the European Union is tightening its grip and taking a closer look at these feedstocks due to fraud fears.
New Accounting Rules
EPA’s Updated Standards
The EPA kicked off these audits after it updated its domestic supply-chain accounting rules last July. Landis mentioned that they’re checking out where that used cooking oil is actually coming from in the renewable fuel production process. But he made it clear: the investigations are still ongoing and can’t be fully discussed just yet.
Calls for Equal Scrutiny
Senators Demand Action
U.S. senators from farm states are raising their voices for more thorough oversight of biofuel feedstocks. They believe federal agencies ought to put as much effort into verifying imports as they do in checking domestic supply chains. Fair is fair, right?
Letter to the Treasury
Advocating for Change
In a June letter, six senators led by Roger Marshall and Sherrod Brown emphasized the need for rigorous standards to ensure that American producers can be trusted. In another push, 15 senators sent a letter to the Treasury on July 30, asking to keep imported feedstocks, like used cooking oil, out of new clean fuel tax credits from the Inflation Reduction Act.
