
PT Sinergi Oleo Nusantara
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Founded Date August 27, 2021
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US EPA Says it is Auditing Biofuel Producers’ Secondhand Cooking Oil Supply
By Leah Douglas
Aug 7 (Reuters) – The U.S. Epa has launched investigations into the supply chains of at least 2 sustainable fuel producers amid industry issues that some might be utilizing deceptive feedstocks for biodiesel to secure financially rewarding federal government subsidies.
EPA spokesperson Jeffrey Landis informed Reuters that the company has actually introduced audits over the previous year, however declined to determine the companies targeted due to the fact that the investigations are ongoing.
The production of biodiesel from sustainable components, like used cooking oil, can make refiners a multitude of state and federal environmental and environment subsidies, consisting of tradable credits under a program administered by the EPA called the Renewable Fuel Standard. But worries have actually been mounting that some products identified as used cooking oil are in fact cheaper and less sustainable virgin palm oil, a product that is associated with deforestation and other ecological damage.
The concern entered into focus following a surge in utilized cooking oil exports from Asia in the last few years that analysts have stated includes unrealistically high volumes relative to the amount of cooking oil used and recovered in the area. The European Union is likewise investigating feedstocks over the scams issues.
The EPA audits began after the company updated domestic supply-chain accounting requirements in July 2023 for sustainable fuel manufacturers seeking to make credits under the RFS, he said.
“EPA has carried out audits of sustainable fuel manufacturers since July 2023 which consists of, to name a few things, an evaluation of the areas that utilized cooking oil used in sustainable fuel production was collected,” he stated. “These investigations, however, are continuous and we are not able to talk about ongoing enforcement investigations.”
U.S. senators from farm states have called for more oversight of biofuel feedstocks, stating federal firms must be as strenuous in validating imports as they are auditing domestic supply chains.
“The Biden administration has produced vigorous standards to validate, not simply trust, American producers, and it is crucial that the same examination is used to imported feedstocks,” six U.S. senators, led by Roger Marshall and Sherrod Brown, wrote in a June 20 letter to federal companies.
Another letter from 15 senators to the Treasury Department on July 30 advised the administration to leave out 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)