By Leah Douglas

Aug 7 (Reuters) - The U.S. Epa has introduced investigations into the supply chains of a minimum of 2 eco-friendly fuel producers in the middle of industry concerns that some may be utilizing deceptive feedstocks for biodiesel to protect financially rewarding government aids.

EPA representative Jeffrey Landis told Reuters that the agency has actually released audits over the past year, but declined to determine the business targeted due to the fact that the investigations are ongoing.

The production of biodiesel from sustainable active ingredients, like used cooking oil, can make refiners a slew of state and federal environmental and climate aids, including tradable credits under a program administered by the EPA called the Renewable Fuel Standard. But worries have been mounting that some materials labeled as used cooking oil are actually cheaper and less sustainable virgin palm oil, a product that is related to deforestation and other ecological damage.

The concern entered focus following a surge in utilized cooking oil exports from Asia recently that experts have stated involves unrealistically high volumes relative to the quantity of cooking oil used and recovered in the region. The European Union is also examining feedstocks over the scams issues.

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

"EPA has actually carried out audits of renewable fuel producers since July 2023 which includes, to name a few things, an evaluation of the areas that used cooking oil used in eco-friendly fuel production was gathered," he stated. "These investigations, nevertheless, are continuous and we are not able to talk about continuous enforcement investigations."

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

"The Biden administration has created energetic requirements to confirm, not just trust, American producers, and it is essential that the very same examination is used to imported feedstocks," six U.S. senators, led by Roger Marshall and Sherrod Brown, composed 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 imported feedstocks like UCO from an additional clean fuel tax credit program passed in the Inflation Reduction Act. (Reporting by Leah Douglas in Washington Editing by Richard Valdmanis and Matthew Lewis)