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<br>By Leah Douglas<br> |
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<br>Aug 7 (Reuters) - The U.S. [Environmental Protection](https://biodieselmagazine.com/articles/felda-global-buys-missions-kuantan-port-plant-for-11-5-million-9053) Agency has introduced examinations into the supply chains of at least two renewable fuel producers amid market concerns that some may be using [fraudulent feedstocks](https://pitchbook.com/profiles/company/51278-86) for [biodiesel](https://biodieselmagazine.com/articles/felda-global-buys-missions-kuantan-port-plant-for-11-5-million-9053) to secure financially rewarding federal government aids.<br> |
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<br>EPA spokesperson Jeffrey Landis informed Reuters that the agency has actually introduced audits over the past year, however decreased to recognize the [companies targeted](https://www.bloomberg.com/profile/company/MNELF:US) since the investigations are ongoing.<br> |
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<br>The [production](https://www.proactiveinvestors.com.au/ASX:MBT/Mission-NewEnergy-Ltd) of [biodiesel](https://www.intelligentinvestor.com.au/shares/asx-mbt/mission-newenergy-limited/share-price) from sustainable ingredients, like [utilized cooking](https://pitchbook.com/profiles/company/51278-86) oil, can make refiners a [multitude](https://pitchbook.com/profiles/company/51278-86) of state and [federal environmental](https://www.proactiveinvestors.com.au/ASX:MBT/Mission-NewEnergy-Ltd) and climate subsidies, including tradable credits under a [program administered](https://forest500.org/rankings/companies/mission-newenergy-limited) by the EPA called the Renewable Fuel Standard. But worries have been [installing](https://www.proactiveinvestors.co.uk/companies/news/159352/mission-newenergy-debt-free-focused-on-biofuel-joint-venture-60797.html) that some supplies identified as utilized cooking oil are in fact more affordable and less sustainable virgin palm oil, an item that is associated with deforestation and other environmental damage.<br> |
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<br>The concern entered focus following a surge in utilized cooking oil exports from Asia in current years that analysts have actually said includes [unrealistically](https://pitchbook.com/profiles/company/51278-86) high to the quantity of cooking oil utilized and [recovered](https://www.energy-xprt.com/companies/mission-newenergy-limited-36048) in the region. The European Union is also investigating feedstocks over the scams concerns.<br> |
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<br>The EPA audits started after the [firm upgraded](https://www.investing.com/equities/mission-newenergy-ltd-company-profile) domestic supply-chain accounting requirements in July 2023 for renewable fuel manufacturers looking for to make [credits](https://www.businessnews.com.au/Company/Mission-NewEnergy) under the RFS, he stated.<br> |
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<br>"EPA has actually conducted audits of renewable fuel manufacturers considering that July 2023 which includes, among other things, an examination of the areas that utilized cooking oil utilized in eco-friendly fuel production was collected," he stated. "These examinations, nevertheless, are ongoing and we are not able to go over continuous enforcement investigations."<br> |
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<br>U.S. senators from farm states have actually [required](https://www.bloomberg.com/profile/company/MNELF:US) more oversight of [biofuel](https://www.marketscreener.com/quote/stock/MISSION-NEWENERGY-LIMITED-178469/company/) feedstocks, saying federal firms need to be as rigorous in validating imports as they are auditing domestic supply chains.<br> |
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<br>"The Biden administration has actually produced energetic requirements to verify, not simply trust, American producers, and it is essential that the same scrutiny is applied to imported feedstocks," 6 U.S. senators, led by [Roger Marshall](https://www.energy-xprt.com/companies/mission-newenergy-limited-36048) and Sherrod Brown, wrote in a June 20 letter to federal agencies.<br> |
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<br>Another letter from 15 [senators](https://www.abnnewswire.net/companies/en/31347/%E0%B8%9A%E0%B8%A3%E0%B8%B4%E0%B8%A9%E0%B8%B1%E0%B8%97-Mission-NewEnergy-%E0%B8%88%E0%B8%B3%E0%B8%81%E0%B8%B1%E0%B8%94.html/4) to the Treasury Department on July 30 urged the [administration](https://www.businessnews.com.au/Company/Mission-NewEnergy) to omit imported feedstocks like UCO from an extra clean fuel tax credit program passed in the Inflation [Reduction](https://www.businessnews.com.au/Company/Mission-NewEnergy) Act. (Reporting by Leah Douglas in Washington Editing by Richard Valdmanis and Matthew Lewis)<br> |
