By Leah Douglas

Aug 7 (Reuters) - The U.S. Epa has actually released investigations into the supply chains of at least 2 sustainable fuel manufacturers in the middle of industry concerns that some might be using fraudulent feedstocks for biodiesel to secure rewarding government subsidies.

EPA spokesperson Jeffrey Landis told Reuters that the agency has actually launched audits over the previous year, but decreased to recognize the companies targeted because the examinations are ongoing.

The production of biodiesel from sustainable ingredients, like utilized cooking oil, can earn refiners a slew of state and federal ecological and climate aids, consisting of tradable credits under a program administered by the EPA called the Renewable Fuel Standard. But worries have actually been installing that some supplies labeled as used cooking oil are actually less expensive and less sustainable virgin palm oil, a product that is related to logging and other ecological damage.

The problem entered into focus following a rise in used cooking oil exports from Asia over the last few years that experts have actually stated includes unrealistically high volumes relative to the quantity of cooking oil used and recuperated in the region. The European Union is also investigating feedstocks over the scams concerns.

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

"EPA has actually performed audits of renewable fuel manufacturers since July 2023 which consists of, to name a few things, an examination of the areas that utilized cooking oil utilized in renewable fuel production was collected," he said. "These examinations, nevertheless, are continuous and we are unable to discuss ongoing enforcement investigations."

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

"The Biden administration has actually produced vigorous standards to validate, not just trust, American manufacturers, and it is crucial that the same scrutiny 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 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)