By Leah Douglas

Aug 7 (Reuters) - The U.S. Epa has actually released examinations into the supply chains of at least 2 sustainable fuel producers amid industry issues that some might be using deceitful feedstocks for biodiesel to secure rewarding government aids.

EPA representative Jeffrey Landis informed Reuters that the company has actually released audits over the past year, however decreased to recognize the companies targeted due to the fact that the investigations are ongoing.

The production of biodiesel from sustainable active ingredients, like used cooking oil, can earn refiners a multitude of state and federal ecological and climate subsidies, including tradable credits under a program administered by the EPA called the Renewable Fuel Standard. But fears have been mounting that some products labeled as used cooking oil are really cheaper and less sustainable virgin palm oil, an item that is related to logging and other ecological damage.

The concern entered into focus following a rise in utilized cooking oil exports from Asia recently that analysts have said involves unrealistically high volumes relative to the quantity of cooking oil used and in the region. The European Union is likewise examining feedstocks over the scams issues.

The EPA audits began 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 conducted audits of renewable fuel producers since July 2023 which includes, to name a few things, an examination of the locations that utilized cooking oil used in sustainable fuel production was collected," he said. "These examinations, however, are continuous and we are unable to discuss ongoing enforcement examinations."

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

"The Biden administration has actually created vigorous requirements to verify, not just trust, American producers, and it is crucial that the same scrutiny is used to imported feedstocks," six U.S. senators, led by Roger Marshall and Sherrod Brown, wrote in a June 20 letter to federal firms.

Another letter from 15 senators to the Treasury Department on July 30 advised the administration to leave out imported feedstocks like UCO from an extra clean fuel tax credit program passed in the Inflation Reduction Act. (Reporting by Leah Douglas in Washington Editing by Richard Valdmanis and Matthew Lewis)