By Leah Douglas

Aug 7 (Reuters) - The U.S. Epa has introduced investigations into the supply chains of a minimum of 2 sustainable fuel manufacturers amid industry concerns that some may be using deceptive feedstocks for biodiesel to secure rewarding government subsidies.

EPA representative Jeffrey Landis informed Reuters that the company has actually released audits over the previous year, however decreased to identify the companies targeted since the investigations are continuous.

The production of biodiesel from sustainable active ingredients, like used cooking oil, can make refiners a multitude of state and federal environmental and climate subsidies, including tradable credits under a program administered by the EPA called the Renewable Fuel Standard. But fears have been installing that some supplies labeled as used cooking oil are really more affordable and less sustainable virgin palm oil, an item that is connected with deforestation and other ecological damage.

The issue came into focus following a surge in used cooking oil exports from Asia in the last few years that analysts have said includes unrealistically high volumes relative to the quantity of cooking oil used and recovered in the area. The European Union is also investigating feedstocks over the scams issues.

The EPA audits started after the company updated 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 producers considering that July 2023 that includes, amongst other things, an assessment of the locations that utilized cooking oil utilized in eco-friendly fuel production was gathered," he said. "These examinations, nevertheless, are continuous and we are unable to talk about ongoing enforcement examinations."

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

"The Biden administration has created energetic standards to verify, not just trust, American manufacturers, and it is necessary that the exact same analysis is used 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 urged the administration to leave out like UCO from an extra tidy fuel tax credit program passed in the Inflation Reduction Act. (Reporting by Leah Douglas in Washington Editing by Richard Valdmanis and Matthew Lewis)