By Leah Douglas

Aug 7 (Reuters) - The U.S. Epa has actually introduced examinations into the supply chains of at least two eco-friendly fuel manufacturers in the middle of industry concerns that some might be using deceptive feedstocks for biodiesel to protect profitable government aids.

EPA spokesperson Jeffrey Landis told Reuters that the company has actually introduced audits over the past year, but decreased to recognize 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 climate subsidies, including tradable credits under a program administered by the EPA called the Renewable Fuel Standard. But worries have actually been installing that some materials labeled as used cooking oil are in fact less expensive and less sustainable virgin palm oil, an item that is connected with deforestation and other environmental damage.

The issue entered into focus following a rise in used cooking oil exports from Asia over the last few years that experts have actually unrealistically high volumes relative to the amount of cooking oil utilized and recovered in the region. The European Union is likewise investigating feedstocks over the fraud concerns.

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

"EPA has actually carried out audits of renewable fuel manufacturers given that July 2023 that includes, to name a few things, an assessment of the areas that utilized cooking oil used in sustainable fuel production was gathered," he stated. "These examinations, nevertheless, are continuous and we are unable to go over ongoing enforcement investigations."

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

"The Biden administration has actually created vigorous standards to confirm, not just trust, American manufacturers, and it is vital that the exact same examination is used to imported feedstocks," six 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)