By Leah Douglas

Aug 7 (Reuters) - The U.S. Environmental Protection Agency has actually introduced examinations into the supply chains of a minimum of 2 renewable fuel producers amidst industry concerns that some might be using deceptive feedstocks for biodiesel to protect lucrative government subsidies.

EPA spokesperson Jeffrey Landis told Reuters that the company has released audits over the previous year, however decreased to determine the companies targeted since the examinations are ongoing.

The production of biodiesel from sustainable components, like used cooking oil, can make refiners a variety of state and federal environmental and environment 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 identified as utilized cooking oil are really more affordable and less sustainable virgin palm oil, an item that is related to 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 experts have actually stated includes unrealistically high volumes relative to the amount of cooking oil utilized and recuperated in the area. The European Union is likewise investigating feedstocks over the scams issues.

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

"EPA has performed audits of sustainable fuel producers given that July 2023 that includes, amongst other things, an evaluation of the places that utilized cooking oil utilized in renewable fuel production was gathered," he stated. "These examinations, however, are ongoing and we are not able to go over ongoing enforcement investigations."

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

"The Biden administration has actually developed vigorous standards to verify, not simply trust, American manufacturers, and it is imperative that the same examination is used to imported feedstocks," six 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 advised the administration to exclude imported feedstocks like UCO from an additional clean fuel tax credit program passed in the Inflation Reduction Act. (Reporting by Leah Douglas in Washington Editing by Richard Valdmanis and Matthew Lewis)