By Leah Douglas

Aug 7 (Reuters) - The U.S. Environmental Protection Agency has introduced examinations into the supply chains of a minimum of two renewable fuel manufacturers amidst market issues that some may be utilizing deceitful feedstocks for biodiesel to secure lucrative federal government aids.

EPA representative Jeffrey Landis informed Reuters that the agency has actually released audits over the previous year, however declined to identify the companies targeted because the examinations are ongoing.

The production of biodiesel from sustainable components, like used cooking oil, can make refiners a multitude of state and federal environmental and environment subsidies, consisting of tradable credits under a program administered by the EPA called the Renewable Fuel Standard. But fears have actually been installing that some products identified as used cooking oil are in fact less expensive and less sustainable virgin palm oil, a product that is related to deforestation and other ecological damage.

The issue entered focus following a rise in used cooking oil exports from Asia over the last few years that analysts have actually stated includes unrealistically high volumes relative to the amount of cooking oil used and recuperated in the area. The European Union is also investigating feedstocks over the scams issues.

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

"EPA has carried out audits of sustainable fuel manufacturers considering that July 2023 which consists of, to name a few things, an assessment of the areas that utilized cooking oil utilized in renewable fuel production was gathered," he said. "These examinations, however, are continuous and we are unable to talk about ongoing enforcement examinations."

U.S. senators from farm states have called for more oversight of biofuel feedstocks, stating federal agencies need to be as strenuous in validating imports as they are auditing domestic supply chains.

"The Biden administration has actually developed energetic requirements to confirm, not just trust, American manufacturers, and it is imperative that the very same analysis is used to imported feedstocks," six 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 to exclude 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)