White House Pushes Broad Refinery Waivers Amid $4 Gas Prices
The White House is pushing federal regulators to consider expanding small-refinery exemptions from US biofuel blending requirements, according to Reuters. This move aims to ease gasoline and diesel costs that remain above $4 a gallon, but it could have severe consequences for US agriculture.
Corn growers, soybean farmers, and renewable fuel producers rely heavily on federal blending mandates to sustain domestic demand. The EPA is reviewing 34 requests for small-refinery exemptions and had projected waiving obligations equal to roughly 1 billion RINs. However, administration officials are reportedly pushing for a larger volume, with industry representatives expecting final exemptions could reach 1.2 billion to 1.8 billion RINs.
The political and economic pressure is intensifying. Refiners argue that biofuel mandates increase operating expenses and ultimately raise gasoline prices. Biofuel advocates dispute this claim, maintaining that ethanol can lower fuel costs by expanding supply with a competitively priced component.
Midwest officials are pushing back against the potential exemptions. The attorneys general of Iowa, South Dakota, and Missouri asked EPA Administrator Lee Zeldin to reject broad exemptions, arguing that strong refinery earnings weaken claims of economic hardship. Iowa Senator Chuck Grassley also warned against granting exemptions at near-record levels.