Farm and Biofuel Groups Urge Trump to Reject Expansion of Refinery Waivers

A coalition of U.S. farm and biofuel groups is urging President Donald Trump to reject a reported plan to significantly expand exemptions from the nation's biofuel blending mandates. In a letter to the president, the groups warned that a surge in waivers for small oil refineries would undercut demand for American crops and weaken the rural economy.

Opposition to Proposed Waivers

The letter, whose signatories include the Renewable Fuels Association, Growth Energy, and the National Farmers Union, argues that granting exemptions far beyond established levels would be detrimental. The groups warned the move would "decimate the demand signal" for renewable fuels that was set by the Environmental Protection Agency's (EPA) most recent Renewable Volume Obligations (RVOs) for 2026 and 2027.

"The consequences would be severe and immediate," the coalition stated, projecting that excess exemptions could trigger a collapse in biofuel markets, reduce demand for corn and soybean oil, and further strain agricultural communities.

White House Reportedly Weighing Expansion

The White House is backing a plan to roughly double the volume of exemptions, from about 950 million credits to as many as 1.8 billion, according to a Reuters report citing people familiar with the matter. The reported motivation is to lower gasoline prices ahead of the November midterm elections. A final decision on the matter is expected before the end of August.

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The U.S. Renewable Fuel Standard (RFS) requires refiners to blend biofuels like ethanol into the nation's fuel supply or purchase compliance credits known as Renewable Identification Numbers (RINs). The law allows for small-refinery exemptions (SREs) in cases of "disproportionate economic hardship."

Market and Political Fallout

The prospect of expanded waivers has already pushed prices for RINs sharply lower, as traders anticipate weaker demand for biofuels. The policy has also drawn criticism from within the Republican party. Senator Joni Ernst of Iowa called the potential expansion "a handout to Big Oil falsely marketed as relief at the pump."

"These exemptions will crush demand for corn and soybeans while padding the pockets of refiners already making record profits," Ernst said in a statement to Reuters. The White House deferred questions on the matter to the EPA, which did not immediately respond to requests for comment.