By Leah Douglas

Aug 7 (Reuters) - The U.S. Epa has actually introduced examinations into the supply chains of a minimum of 2 eco-friendly fuel manufacturers amidst market concerns that some might be utilizing fraudulent feedstocks for biodiesel to secure financially rewarding federal government aids.

EPA spokesperson Jeffrey Landis informed Reuters that the company has released audits over the past year, however declined to identify the companies targeted due to the fact that the investigations are continuous.

The production of biodiesel from sustainable components, like used cooking oil, can make refiners a slew of state and federal ecological and environment subsidies, consisting of tradable credits under a program administered by the EPA called the Renewable Fuel Standard. But worries have been mounting that some supplies labeled as utilized cooking oil are in fact cheaper and less sustainable virgin palm oil, an item that is associated with deforestation and other ecological damage.

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

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

"EPA has carried out audits of renewable fuel manufacturers given that July 2023 that includes, to name a few things, an examination of the locations that used cooking oil used in eco-friendly fuel production was gathered," he stated. "These investigations, however, are ongoing and we are unable to discuss ongoing enforcement investigations."

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

"The Biden administration has actually developed energetic standards to confirm, not just trust, American manufacturers, and it is crucial that the 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 agencies.

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