Trump Administration Considers Doubling Small Refinery Exemptions Amid Election Year Price Pressure
The White House is reportedly considering expanding small refinery exemptions to help lower gasoline prices ahead of midterm elections. The plan would grant waivers for about 1.8 billion renewable fuel credits, doubling the current exemption level of around 950 million credits.
Opponents argue that increasing exemptions would hurt rural economies by reducing demand for corn and soybeans. A coalition of U.S. farm and biofuel groups has urged President Trump to reject the proposed expansion, warning that it would decimate the demand signal created by the Environmental Protection Agency's March rule setting renewable volume obligations.
The Renewable Fuels Association, Growth Energy, and the National Farmers Union are among those urging the administration to keep exemptions in line with EPA-projected volumes. They argue that granting excessive waivers could cause biofuel markets to collapse, further weakening rural economies.
U.S. Sen. Joni Ernst has criticized the potential expansion of small refinery exemptions, calling it 'a handout to Big Oil falsely marketed as relief at the pump.'