Lawmakers in the United States are ratcheting up pressure on the Environmental Protection Agency (EPA) to stem the flow of suspected fake used cooking oil (UCO) imports that could be undermining American soybean farmers.
“We have significant concerns about the existing verification process,” six senators, including Iowa Republican Joni Ernst and Minnesota Democrat Amy Klobuchar, wrote in a letter to EPA Administrator Michael Regan.
Historic levels of the waste oil, commonly referred to as yellow grease or UCO, have been flooding into the US and cutting into demand for US-grown products, such as soybean oil, that are essential for making renewable fuels like biodiesel, renewable diesel, and sustainable aviation fuel (SAF). There is widespread suspicion that some of the imported cooking oil is being blended with virgin vegetable oils such as palm oil, which is linked to deforestation in Southeast Asia.
The push by the lawmakers comes as the advanced biofuel industry awaits US Treasury guidance on a new clean fuel production tax credit set to replace existing credits and take effect January 1, 2025. A bipartisan group of senators earlier this year urged Treasury Secretary Janet Yellen to ensure that only biofuels made with domestic ingredients can benefit from the incentive. The request is seen as an important protection for domestic feedstock providers and is thought to align with other stipulations in the Inflation Reduction Act, such as the requirement for all iron and steel to be produced in the US.
In their letter, the lawmakers urged the EPA to respond to a request sent in June asking how the agency intends to verify the authenticity of UCO, saying the current system isn’t working. The United Soybean Board, a group that represents America’s soybean farmers and their checkoff, simultaneously set out to establish an ASTM-approved process for detecting and verifying UCO content.
The US has imported a record 3.2 billion pounds of UCO from January to August, the lawmakers wrote, citing US Census Bureau data. As of data from mid-November, in 2024 alone the U.S. has already imported enough UCO to displace the oil from more than 332 million bushels of soybeans, which is equivalents to the entire soybean crop from the state of Minnesota.
Lawmakers asked the EPA to outline how it traces the origin of UCO imports, especially those coming from countries with “limited oversight” such as China, and if the agency plans to make any changes in how UCO shipments are verified.
Originally shared by Bloomberg, December 13, 2024. Title and article updated for purpose and clarity.
Notice: The Michigan Advanced Biofuels Coalition (MiABC) does not lobby or influence policy in any way. The policy interests of Michigan soybean farmers and biodiesel producers are supported by the Michigan Soybean Association and Clean Fuels Alliance America, respectively.