White House seeks wider refinery waivers to curb fuel prices
White House urges EPA to grant more small refinery biofuel waivers to ease pump prices, risking backlash from agricultural states.
The White House has asked the Environmental Protection Agency (EPA) to expand the number of small refinery waivers from biofuel blending mandates beyond what the agency initially projected, according to two administration officials. The move is part of a broader effort to lower gasoline prices, which have remained above $4 a gallon despite other measures such as releasing emergency oil stockpiles and waiving summer anti-smog rules.
The request, made in recent meetings, is being driven by senior White House adviser Stephen Miller, members of the Energy Dominance Council, and other policy advisers concerned about high energy costs. The EPA is currently reviewing 34 waiver requests and had projected approving enough to cover around one billion RINs (renewable identification numbers) this year. A decision is expected by the end of the month.
Industry representatives briefed on the matter expect the EPA to ultimately approve between 1.2 and 1.8 billion RINs in Small Refinery Exemptions. That would significantly cut into the record 2026 biofuel blending mandate of 26.81 billion RINs. The EPA says it is not being directed by the White House on specific waiver decisions and that no final determinations have been made.
The push revives a contentious issue from the first Trump administration, when expanded exemptions angered agricultural interests in the Farm Belt. Refiners argue that blending obligations raise operating costs and pump prices, while biofuel advocates say ethanol adds cheaper supply and lowers fuel costs.
On Tuesday, the attorneys general of Iowa, South Dakota, and Missouri wrote to EPA Administrator Lee Zeldin urging rejection of broad waivers, citing strong refining industry earnings as evidence against financial hardship claims. Senator Chuck Grassley of Iowa also voiced opposition on social media, saying exemptions would only help refiners making record profits.
The prospect of large-scale exemptions has already affected markets, with RIN prices falling to their lowest level in over four months on Monday. The American Soybean Association estimates that high exemptions could eliminate around 500 million gallons of biodiesel and renewable diesel demand, costing soybean farmers about $1 billion in lost revenue.