White House Urges EPA to Expand Refinery Biofuel Waivers to Lower Gas Prices

The White House is pushing the Environmental Protection Agency (EPA) to increase the number of waivers granted to small oil refineries, exempting them from requirements to blend biofuels into their fuel supply, according to two administration officials. The move is part of a broader administration effort to combat gasoline prices that remain stubbornly above $4 a gallon.

The Push for More Exemptions

Under federal law, refiners must blend billions of gallons of biofuels like corn-based ethanol into the nation's gasoline and diesel or purchase blending credits, known as Renewable Identification Numbers (RINs). Small refineries can apply for exemptions if they can demonstrate financial hardship from these obligations.

The EPA is currently reviewing 34 such requests and had projected waiving obligations equivalent to about one billion RINs. However, administration sources told Reuters that senior officials, including adviser Stephen Miller, are urging the agency to approve a significantly higher volume. Industry representatives briefed on the matter expect the final number of waived RINs to be between 1.2 and 1.8 billion.

Political Stakes and Market Impact

The effort to expand the waiver program reflects administration concerns over high energy costs as a potential political liability ahead of the November midterm elections. Refiners argue that the blending mandates increase their operating costs, which are then passed on to consumers at the pump.

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News of the potential expansion has already impacted the market for blending credits. RIN prices fell to their lowest level in more than four months on Monday. The EPA stated it is not being directed by the White House on specific waiver approvals and that no final decisions have been made.

Backlash from the Farm Belt

The proposal has ignited a backlash from agricultural interests, reviving a contentious battle that pits the oil industry against the nation's farmers. Biofuel advocates argue that ethanol increases the total fuel supply, thereby lowering prices, and that refinery profits undermine claims of financial hardship.

• The attorneys general of Iowa, South Dakota, and Missouri sent a letter to the EPA urging it to reject the waiver requests.
• Senator Chuck Grassley of Iowa posted on X, formerly Twitter, that granting exemptions would only help petroleum refiners that are already making record profits.
• The American Soybean Association warned that large-scale exemptions could eliminate demand for 500 million gallons of biodiesel and cost soybean farmers an estimated $1 billion in lost revenue.