By Leah Douglas

Aug 7 (Reuters) - The U.S. Epa has released examinations into the supply chains of a minimum of two eco-friendly fuel manufacturers amidst industry issues that some might be utilizing deceitful feedstocks for biodiesel to protect lucrative federal government subsidies.

EPA representative Jeffrey Landis informed Reuters that the agency has actually introduced audits over the previous year, however decreased to determine the companies targeted due to the fact that the examinations are ongoing.

The production of biodiesel from sustainable components, like utilized 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 labeled as used cooking oil are actually more affordable and less sustainable virgin palm oil, an item that is connected with deforestation and other ecological damage.

The concern entered into focus following a surge in used cooking oil exports from Asia in recent years that analysts have actually stated includes unrealistically high volumes relative to the amount of cooking oil used and recovered in the region. The European Union is also examining feedstocks over the scams issues.

The EPA audits started after the company updated domestic supply-chain accounting requirements in July 2023 for renewable fuel manufacturers looking for to make credits under the RFS, he said.

"EPA has actually performed audits of eco-friendly fuel manufacturers considering that July 2023 that includes, amongst other things, an examination of the areas that used cooking oil utilized in eco-friendly fuel production was gathered," he said. "These examinations, however, are ongoing and we are not able to talk about continuous enforcement examinations."

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

"The Biden administration has actually produced vigorous standards to validate, not just trust, American producers, and it is essential that the same examination is applied to imported feedstocks," 6 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 prompted the administration to leave out imported feedstocks like UCO from an additional tidy fuel tax credit program passed in the Inflation Reduction Act. (Reporting by Leah Douglas in Washington Editing by Richard Valdmanis and Matthew Lewis)