EPA’s investigation into used cooking oil (UCO) imports is directly related to biofuel tax incentives and compliance with the Renewable Fuel Standard (RFS) program. In July 2023, EPA started audits and inspections of renewable fuel producers’ supply chains to verify the authenticity and legitimacy of UCO feedstocks used in biofuel production. The investigations are still ongoing and EPA is unable to discuss details of ongoing enforcement investigations. If fraudulent practices are discovered, it could impact the eligibility of certain biofuels for tax incentives and RFS credit. There are calls for more visibility into the UCO supply chain and clarity on how the EPA ensures imported UCO is not blended with palm oil, especially relative to several deforestation programs in Europe. Market sources say imported UCOs would still be price competitive even without tapping biofuel tax incentives.
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