By Leah Douglas

Aug 7 (Reuters) - The U.S. Agency has released examinations into the supply chains of at least two renewable fuel manufacturers amid industry concerns that some might be using deceitful feedstocks for biodiesel to secure rewarding federal government aids.

EPA representative Jeffrey Landis informed Reuters that the firm has actually introduced audits over the past year, however declined to identify the companies targeted since the investigations are ongoing.

The production of biodiesel from sustainable active ingredients, like used cooking oil, can make refiners a slew 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 worries have been installing that some materials identified as used cooking oil are actually cheaper and less sustainable virgin palm oil, a product that is connected with deforestation and other environmental damage.

The concern entered into focus following a surge in used cooking oil exports from Asia over the last few years that analysts have stated includes 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 fraud issues.

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

"EPA has actually conducted audits of eco-friendly fuel manufacturers since July 2023 which includes, to name a few things, an assessment of the areas that utilized cooking oil used in renewable fuel production was collected," he stated. "These examinations, however, are continuous and we are unable to discuss continuous enforcement examinations."

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

"The Biden administration has actually created energetic requirements to verify, not simply trust, American manufacturers, and it is important that the exact same examination is used to imported feedstocks," 6 U.S. senators, led by Roger Marshall and Sherrod Brown, wrote 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 tidy fuel tax credit program passed in the Inflation Reduction Act. (Reporting by Leah Douglas in Washington Editing by Richard Valdmanis and Matthew Lewis)