By Leah Douglas

Aug 7 (Reuters) - The U.S. Epa has introduced examinations into the supply chains of a minimum of two sustainable fuel producers in the middle of industry issues that some might be utilizing deceptive feedstocks for biodiesel to secure financially rewarding government aids.

EPA representative Jeffrey Landis told Reuters that the company has released audits over the previous year, but declined to recognize the business targeted since the investigations are continuous.

The production of biodiesel from sustainable active ingredients, like used cooking oil, can make refiners a multitude of state and federal environmental and environment subsidies, including tradable credits under a program administered by the EPA called the Renewable Fuel Standard. But worries have actually been installing that some materials labeled as used cooking oil are actually less expensive and less sustainable virgin palm oil, an item that is connected with deforestation and other ecological damage.

The concern came into focus following a surge in used cooking oil exports from Asia in the last few years that experts have actually stated involves unrealistically high volumes relative to the amount of cooking oil utilized and recovered in the region. The European Union is likewise examining feedstocks over the scams issues.

The EPA audits began after the firm upgraded domestic supply-chain accounting requirements in July 2023 for eco-friendly fuel manufacturers seeking to earn credits under the RFS, he said.

"EPA has actually carried out audits of renewable fuel producers because July 2023 that includes, amongst other things, an examination of the places that used cooking oil used in sustainable fuel production was gathered," he stated. "These investigations, however, are ongoing and we are unable to discuss ongoing enforcement examinations."

U.S. senators from farm states have called for more oversight of biofuel feedstocks, stating federal companies ought to be as extensive in verifying imports as they are auditing domestic supply chains.

"The Biden administration has produced energetic standards to validate, not simply trust, American manufacturers, and it is crucial that the very same examination is applied to imported feedstocks," six U.S. senators, led by Roger Marshall and Sherrod Brown, wrote in a June 20 letter to federal agencies.

Another letter from 15 senators to the Treasury Department on July 30 prompted the administration to exclude imported like UCO from an extra clean fuel tax credit program passed in the Inflation Reduction Act. (Reporting by Leah Douglas in Washington Editing by Richard Valdmanis and Matthew Lewis)