Ag Groups Warn Trump Against SREs That Could Undermine Renewable Fuel Standard
Agribusiness and biofuel groups have written to President Trump warning against issuing more small refinery exemptions (SREs) that could undermine the Renewable Fuel Standard. The move would reduce blending volumes, destroying the biofuel demand that has helped restore the rural economy and lower fuel costs for drivers.
The groups claim that excessive SREs would be a 'terrible, unforced error' and would cause significant losses to farmers, who stand to lose $1 billion if soybean prices plummet. The industry is currently benefiting from increased demand and higher RIN prices, which have driven up the value of American corn and soybean oil.
According to analysts, issuing 1.8 billion RINs for SREs in 2025 would be a dramatic increase over the initial estimate of 991 million. This could lead to a shortage of compliance credits, forcing refiners to produce less fuel and tightening supplies even further, driving up gas prices.
The groups argue that RIN prices do not drive gas prices and point out that higher mandates and reallocated exempted volumes could leave the market without enough compliance credits to meet EPA requirements. They also claim that excessive SREs would undermine the gains made in rural communities ahead of key congressional elections in November.