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By Leah Douglas

Aug 7 (Reuters) - The U.S. Epa has actually released investigations into the supply chains of at least 2 sustainable fuel producers amidst market concerns that some might be using deceitful feedstocks for biodiesel to secure rewarding federal government subsidies.

Jeffrey Landis informed Reuters that the firm has actually introduced audits over the past year, but decreased to recognize the business targeted since the investigations are ongoing.

The production of biodiesel from sustainable ingredients, like used cooking oil, can make refiners a multitude of state and federal ecological and climate aids, consisting of tradable credits under a program administered by the EPA called the Renewable Fuel Standard. But worries have been mounting that some materials identified 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 problem entered into focus following a rise in used cooking oil exports from Asia in the last few years that experts have stated involves unrealistically high volumes relative to the quantity of cooking oil used and recuperated in the area. The European Union is likewise investigating feedstocks over the fraud issues.

The EPA audits started after the agency 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 carried out audits of renewable fuel producers since July 2023 that includes, among other things, an examination of the places that utilized cooking oil utilized in sustainable fuel production was collected," he stated. "These examinations, however, are continuous and we are not able to talk about continuous enforcement examinations."

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

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

Another letter from 15 senators to the Treasury Department on July 30 advised the administration to exclude 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)