US EPA Set to Approve Expanded Biofuel Waivers Amid Gas Price Fears

The US Environmental Protection Agency (EPA) is expected to approve expanded biofuel waivers as early as Monday, according to sources familiar with the matter. This move would allow small oil refineries to avoid blending renewable fuels into gasoline and diesel, which could put downward pressure on gas prices.

The Trump administration has been under pressure from farm-state lawmakers to limit the exemptions, but refiners have sought them as a way to lower fuel production costs. Farmers fear that the waivers would reduce demand for their crops, while refiners argue that compliance with biofuel mandates can impose steep costs when credits are expensive.

The EPA is considering issuing waivers covering more than 1.8 billion renewable fuel credits, which is roughly double the initial number it had planned to allow. This expansion is part of a broader White House effort to manage gasoline prices, which have surged due to the US conflict with Iran.