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

Summary
The White House is reportedly pressuring the EPA to grant more exemptions to small oil refineries from biofuel blending mandates, a move aimed at lowering pump prices that has drawn sharp criticism from agricultural groups.
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.
AdNews 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.
Read next
More on Commodities
European Gas Prices Climb on Low Storage and ECB Inflation Warnings
Wholesale natural gas prices in Europe and the UK rose on Wednesday, driven by critically low storage levels ahead of winter and warnings from the European Central Bank about energy-fueled inflation.

Equinor to Boost LNG Supply to 15 Million Tons by Early 2030s, Targeting Asian Demand
The Norwegian energy major plans to expand its liquefied natural gas portfolio to 10-15 million metric tons per year to meet growing demand in Europe and Asia, diversifying its supply sources with a significant focus on U.S. exports.

Japan Gas Association Endorses Government's Emergency LNG Pact with Malaysia's Petronas
The head of the Japan Gas Association has voiced support for a new government agreement with Malaysia's Petronas to secure emergency liquefied natural gas supplies, calling it a valuable step for the nation's energy security.

US Crude Stockpiles Decline Less Than Expected, Fuel Inventories Rise
U.S. crude oil inventories fell modestly for the week ending Sept. 11, missing analyst forecasts, while gasoline and distillate stockpiles posted surprise builds, according to the latest EIA data.