By Leah Douglas

Aug 7 (Reuters) - The U.S. Epa has actually released examinations into the supply chains of a minimum of two eco-friendly fuel manufacturers amid industry issues that some might be using deceitful feedstocks for biodiesel to secure profitable government aids.

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

The production of biodiesel from sustainable components, like utilized cooking oil, can earn refiners a variety of state and federal ecological and climate aids, including tradable credits under a program administered by the EPA called the Renewable Fuel Standard. But fears have actually been installing that some supplies labeled as utilized cooking oil are really more affordable and less sustainable virgin palm oil, a product that is associated with logging and other environmental damage.

The issue entered into focus following a surge in utilized cooking oil exports from Asia over the last few years that analysts have actually stated involves unrealistically high volumes relative to the amount of cooking oil utilized and recuperated in the area. The European Union is likewise examining feedstocks over the fraud issues.

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

“EPA has conducted audits of sustainable fuel producers since July 2023 that includes, amongst other things, an evaluation of the areas that used cooking oil used in eco-friendly fuel production was collected,” he said. “These investigations, nevertheless, are continuous and we are not able to discuss continuous enforcement examinations.”

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

“The Biden administration has produced vigorous requirements to verify, not just trust, American producers, and it is crucial that the very same examination is applied to imported feedstocks,” 6 U.S. senators, led by Roger Marshall and Sherrod Brown, wrote 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 extra clean fuel tax credit program passed in the Inflation Reduction Act. ( by Leah Douglas in Washington Editing by Richard Valdmanis and Matthew Lewis)