By Leah Douglas

Aug 7 (Reuters) - The U.S. Epa has actually introduced examinations into the supply chains of a minimum of 2 sustainable fuel producers in the middle of industry issues that some may be utilizing deceptive feedstocks for biodiesel to secure profitable federal government aids.

EPA representative Jeffrey Landis told Reuters that the agency has actually launched audits over the past year, however decreased to identify the business targeted because the investigations are continuous.

The production of biodiesel from sustainable ingredients, like used cooking oil, can earn refiners a multitude of state and federal ecological and environment subsidies, including tradable credits under a program administered by the EPA called the Renewable Fuel Standard. But worries have been installing that some products labeled as used cooking oil are in fact more affordable and less sustainable virgin palm oil, an item that is related to logging and other environmental damage.

The problem came into focus following a rise in used cooking oil exports from Asia in the last few years that experts have actually said includes unrealistically high volumes relative to the quantity of cooking oil used and recuperated in the area. The European Union is likewise examining feedstocks over the fraud concerns.

The EPA audits started after the agency upgraded domestic supply-chain accounting requirements in July 2023 for renewable fuel manufacturers seeking to make credits under the RFS, he said.

"EPA has actually carried out audits of sustainable fuel producers considering that July 2023 that includes, to name a few things, an assessment of the places that used cooking oil utilized in renewable fuel production was gathered," he said. "These investigations, nevertheless, are continuous and we are not able to talk about continuous enforcement examinations."

U.S. senators from farm states have required more oversight of biofuel feedstocks, saying federal firms need to be as rigorous in confirming imports as they are auditing domestic supply chains.

"The Biden administration has actually developed vigorous standards to validate, not just trust, American producers, and it is essential that the very same examination is used to imported feedstocks," 6 U.S. senators, led by Roger Marshall and Sherrod Brown, composed in a June 20 letter to federal companies.

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