By Leah Douglas

Aug 7 (Reuters) - The U.S. Epa has actually released examinations into the supply chains of a minimum of two sustainable fuel producers amid industry concerns that some may be using deceitful feedstocks for biodiesel to protect rewarding federal government aids.

EPA spokesperson Jeffrey Landis told Reuters that the company has introduced audits over the previous year, however declined to identify the companies targeted due to the fact that the examinations are continuous.

The production of biodiesel from sustainable ingredients, like used cooking oil, can make refiners a slew of state and federal environmental and climate subsidies, consisting of tradable credits under a program administered by the EPA called the Renewable Fuel Standard. But worries have been installing that some supplies identified as used cooking oil are in fact more affordable and less sustainable virgin palm oil, a product that is related to logging and other environmental damage.

The concern entered into focus following a surge in utilized cooking oil exports from Asia recently that experts have stated involves unrealistically high volumes relative to the amount of cooking oil utilized and recuperated in the area. The European Union is likewise examining feedstocks over the fraud issues.

The EPA audits started after the company upgraded domestic supply-chain accounting requirements in July 2023 for renewable fuel producers looking for to earn credits under the RFS, he said.

"EPA has actually conducted audits of eco-friendly fuel manufacturers considering that July 2023 which includes, among other things, an evaluation of the locations that used cooking oil utilized in renewable fuel production was collected," he said. "These examinations, nevertheless, are ongoing and we are unable to go over ongoing enforcement investigations."

U.S. senators from farm states have actually called for more oversight of biofuel feedstocks, saying federal agencies should be as rigorous in confirming imports as they are auditing domestic supply chains.

"The Biden administration has actually produced energetic standards to verify, not just trust, American manufacturers, and it is necessary that the exact same scrutiny is used to imported feedstocks," 6 U.S. senators, led by Roger Marshall and Sherrod Brown, composed in a June 20 letter to federal firms.

Another letter from 15 senators to the Treasury Department on July 30 prompted the administration to leave out imported feedstocks 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)