U.S. EPA Audits Biofuel Producers Over Suspected Fraudulent Use of Cooking Oil

The U.S. Environmental Protection Agency (EPA) has launched audits targeting renewable fuel producers suspected of using fraudulent feedstocks, such as misrepresented used cooking oil, to qualify for government subsidies. The investigation, which has been ongoing for over a year, aims to ensure compliance with the Renewable Fuel Standard (RFS).

Concerns have risen that some producers might be substituting less sustainable materials, like virgin palm oil, which is linked to deforestation. This issue gained traction following a spike in used cooking oil exports from Asia, prompting scrutiny from both U.S. and European Union regulators.

In response, U.S. senators have called for stricter oversight of both domestic and imported feedstocks to prevent fraud in the biofuel industry. The Biden administration is also under pressure to exclude questionable feedstocks from clean fuel tax credit programs.