By Leah Douglas

Aug 7 (Reuters) - The U.S. Epa has actually released investigations into the supply chains of at least two renewable fuel manufacturers amidst industry issues that some might be utilizing deceptive feedstocks for biodiesel to protect rewarding government aids.

EPA representative Jeffrey Landis informed Reuters that the agency has actually released audits over the previous year, but decreased to identify the business targeted since the examinations are ongoing.

The production of biodiesel from sustainable active ingredients, like used cooking oil, can make refiners a slew of state and federal environmental and environment aids, consisting of tradable credits under a program administered by the EPA called the Renewable Fuel Standard. But fears have been mounting that some materials identified as used cooking oil are actually more affordable and less sustainable virgin palm oil, a product that is connected with deforestation and other environmental damage.

The issue entered into focus following a surge in utilized cooking oil exports from Asia in the last few years that analysts have said involves unrealistically high volumes relative to the amount 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 updated 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 producers considering that July 2023 that includes, to name a few things, an assessment of the locations that used cooking oil used in sustainable fuel production was collected," he stated. "These investigations, however, are ongoing and we are not able to talk about ongoing enforcement examinations."

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

"The Biden administration has created energetic standards to confirm, not just trust, American producers, and it is important that the same analysis is applied 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 advised the administration to omit 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)