White House Presses EPA to Expand Small Refinery Exemptions Amid Ongoing Fuel Price Concerns

The White House is pushing the Environmental Protection Agency (EPA) to expand the number of small refineries exempt from the federal biofuel blending program. This move aims to bring down prices at the pump, which have been a major concern ahead of the November midterm elections.

The current exemption volume under consideration is larger than the agency's initial projections, according to anonymous sources. Stephen Miller, senior adviser to the White House, is reportedly driving this effort.

The Renewable Fuel Standard (RFS) requires fuel refiners and importers to blend growing volumes of corn ethanol, biodiesel, and renewable diesel into gasoline and diesel sold in the US. Small refineries can apply for a temporary waiver if they demonstrate disproportionate economic hardship.

An expansion of exemptions would mechanically reduce demand for biofuels and lower the value of RINs, which are critical to soybean and corn growers' revenue. Oil refiners argue that the blending mandate raises their operating costs and increases the price of gasoline.