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By Leah Douglas

Aug 7 (Reuters) - The U.S. Environmental Protection Agency has released investigations into the supply chains of at least 2 eco-friendly fuel manufacturers in the middle of industry issues that some may be utilizing deceptive feedstocks for biodiesel to secure profitable federal government subsidies.

EPA spokesperson Jeffrey Landis informed Reuters that the firm has actually launched audits over the past year, but declined to recognize the business targeted since 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 environment subsidies, consisting of tradable credits under a program administered by the EPA called the Renewable Fuel Standard. But fears have been installing that some products labeled as utilized cooking oil are really less expensive and less sustainable virgin palm oil, an item that is connected with logging and other ecological damage.

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

The EPA audits began after the firm upgraded domestic supply-chain accounting requirements in July 2023 for renewable fuel manufacturers seeking to earn credits under the RFS, he said.

"EPA has actually carried out audits of eco-friendly fuel producers since July 2023 that includes, to name a few things, an assessment of the locations that utilized cooking oil utilized in eco-friendly fuel production was collected," he said. "These investigations, 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, saying federal agencies should be as strenuous in verifying imports as they are auditing domestic supply chains.

"The Biden administration has actually produced energetic requirements to validate, not just trust, American producers, and it is crucial that the exact same analysis is used to imported feedstocks," six U.S. senators, led by Roger Marshall and Sherrod Brown, composed in a June 20 letter to .

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)