By Leah Douglas

Aug 7 (Reuters) - The U.S. Epa has actually introduced examinations into the supply chains of at least two renewable fuel producers amidst market concerns that some might be utilizing deceptive feedstocks for biodiesel to protect rewarding federal government aids.

EPA representative Jeffrey Landis told Reuters that the agency has released audits over the past year, however declined to determine the business targeted since the examinations are continuous.

The production of biodiesel from sustainable ingredients, like utilized cooking oil, can make refiners a variety of state and federal ecological 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 supplies labeled as used cooking oil are actually less expensive and less sustainable virgin palm oil, a product that is connected with deforestation and other ecological damage.

The problem came into focus following a rise in utilized cooking oil exports from Asia in the last few years that analysts have said involves unrealistically high volumes relative to the quantity of cooking oil used and recuperated in the region. The European Union is also investigating feedstocks over the scams concerns.

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

"EPA has carried out audits of eco-friendly fuel manufacturers because July 2023 that includes, to name a few things, an assessment of the locations that utilized cooking oil utilized in eco-friendly fuel production was gathered," he stated. "These investigations, however, are continuous and we are not able to discuss ongoing enforcement investigations."

U.S. senators from farm states have actually required more oversight of biofuel feedstocks, stating federal companies should be as strenuous in confirming imports as they are auditing domestic supply chains.

"The Biden administration has developed vigorous standards to confirm, not just trust, American manufacturers, and it is imperative that the very same scrutiny is applied 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 administration to leave out imported feedstocks like UCO from an extra tidy fuel tax credit program passed in the Inflation Reduction Act. (Reporting by Leah Douglas in Washington Editing by Richard Valdmanis and Matthew Lewis)