US Lawmakers Renew Push to Halt Flow of Fake Used Cooked Oil

(Bloomberg) -- US lawmakers are ratcheting up pressure on the Environmental Protection Agency to stem the flow of suspected fake foreign used cooking oil 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 seen by Bloomberg.

Historic levels of the oil, or UCO, have been flooding into the US and cutting into demand for US-grown ingredients, such as soybean oil, that are essential for making renewable fuels. There is widespread suspicion some of the imported products are being blended with virgin vegetable oils like palm, which is linked to deforestation in Southeast Asia. 

The push by the lawmakers comes as the biofuel industry awaits US government guidance on a new “clean” fuel tax credit set to take effect next month. 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. Donald Trump’s victory in November is adding to the uncertainty as the president-elect vows to clamp down on China with new tariffs. 

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 US has imported a record 3.2 billion pounds of UCO from January to August, the lawmakers wrote, citing US Census Bureau data. “This is enough product to displace approximately 270 million bushels of soybeans,” according to the senators.

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.  

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