By Leah Douglas

Aug 7 (Reuters) - The U.S. Epa has launched examinations into the supply chains of a minimum of 2 renewable fuel manufacturers amidst industry issues that some might be using fraudulent feedstocks for biodiesel to protect profitable government subsidies.

EPA spokesperson Jeffrey Landis informed Reuters that the company has launched audits over the previous year, however decreased to recognize the business targeted since the examinations are continuous.

The production of biodiesel from sustainable components, like utilized cooking oil, can make refiners a variety of state and federal environmental and climate aids, consisting of tradable credits under a program administered by the EPA called the Renewable Fuel Standard. But fears have actually been installing that some products labeled as utilized cooking oil are in fact cheaper and less sustainable virgin palm oil, a product that is connected with deforestation and other ecological damage.

The problem entered into focus following a surge in used cooking oil exports from Asia recently that analysts have 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 fraud issues.

The EPA audits began after the firm updated domestic supply-chain accounting requirements in July 2023 for sustainable fuel producers looking for to earn credits under the RFS, he stated.

"EPA has carried out audits of eco-friendly fuel manufacturers considering that July 2023 which consists of, to name a few things, an assessment of the locations that used cooking oil used in sustainable fuel production was collected," he stated. "These examinations, nevertheless, are ongoing and we are unable to discuss ongoing enforcement investigations."

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

"The Biden administration has actually created vigorous standards to verify, not simply trust, American producers, and it is necessary that the very same scrutiny is used 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 advised the administration to exclude 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)