EPA's Biofuel Blending Exemptions Decision Looms Amid Rising Gas Prices
The US Environmental Protection Agency (EPA) must decide by August on biofuel blending exemptions for small refineries, a move that could have far-reaching implications for the renewable fuels market.
The EPA's decision comes as President Donald Trump pushes to contain gasoline prices in the United States. A clause in the federal program on renewable fuels allows small refineries to request temporary exemptions from biofuel blending obligations if they demonstrate disproportionate economic hardship.
Agricultural representatives and biofuel producers fear a wave of exemptions would hollow out the commitment made earlier this year on high blending volumes, depriving corn and soybean sectors of an outlet. The oil industry argues that the cost of compliance credits has risen sharply and justifies broader use of exemptions.