Commodities

US Lawmakers Push for Action Against Chinese Used Cooking Oil Imports Due to Fraud Concerns

A group of U.S. senators from agricultural states is advocating for stricter regulations on the rising imports of used cooking oil from China and other countries due to concerns that some of these shipments might be fraudulent.

In recent years, U.S. biofuels manufacturers have been increasingly purchasing used cooking oil to produce biodiesel, which can earn substantial federal and state climate subsidies. However, there are worries that certain shipments may contain virgin palm oil, which is associated with environmental issues such as deforestation.

The senators highlighted in a letter that U.S. imports of used cooking oil have surged from under 200 million pounds annually to more than 3 billion pounds in 2023, with over half of these imports coming from China.

While acknowledging that many legitimate businesses are using used cooking oil as a diverse feedstock in renewable fuel production—complying with strict verification and traceability standards—the senators expressed concerns about the lack of transparency in verifying imported used cooking oil.

The letter was sent to the Environmental Protection Agency, the Department of Agriculture, Customs and Border Protection, and the U.S. Trade Representative, requesting information on enforcement and verification practices regarding used cooking oil imports. It was signed by six senators from farming states, including Republicans Chuck Grassley, Joni Ernst, Roger Marshall, Deb Fischer, and Pete Ricketts, along with Democrat Sherrod Brown.

Biofuels producers can earn various federal and state subsidies for generating low-carbon fuels, including tradable credits known as RINs under the U.S. Renewable Fuels Standard, which is managed by the EPA. According to the senators, European imports of used cooking oil have sharply declined following increased scrutiny to prevent mislabeling.

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