By Leah Douglas

Aug 7 (Reuters) - The U.S. Epa has introduced investigations into the supply chains of a minimum of 2 renewable fuel producers amidst industry concerns that some might be utilizing deceptive feedstocks for biodiesel to secure profitable federal government aids.

EPA representative Jeffrey Landis informed Reuters that the company has actually launched audits over the previous year, however declined to identify the companies targeted since the investigations are continuous.

The production of biodiesel from sustainable active ingredients, like used cooking oil, can make refiners a slew of state and federal environmental and climate subsidies, consisting of tradable credits under a program administered by the EPA called the Renewable Fuel Standard. But worries have actually been installing that some products labeled as used cooking oil are actually less expensive and less sustainable virgin palm oil, an item that is related to deforestation and other environmental damage.

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

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

"EPA has carried out audits of sustainable fuel producers since July 2023 which consists of, to name a few things, an examination of the places that utilized cooking oil used in renewable fuel production was collected," he stated. "These investigations, however, are continuous and we are unable to go over continuous enforcement examinations."

U.S. senators from farm states have called for more oversight of biofuel feedstocks, stating federal agencies ought to be as rigorous in verifying imports as they are auditing domestic supply chains.

"The Biden administration has actually developed vigorous standards to validate, not just trust, American producers, and it is essential that the very same examination is applied to imported feedstocks," six U.S. senators, led by Roger Marshall and Sherrod Brown, composed in a June 20 letter to federal agencies.

Another letter from 15 senators to the Treasury Department on July 30 urged the administration to omit 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)