A coalition of U.S. farm and biofuel organizations has urged the Trump administration to reject any expansion of small refinery exemptions, citing risks to renewable fuel markets and agricultural demand.
The groups, including the Renewable Fuels Association, Growth Energy and the National Farmers Union, sent a letter to President Donald Trump on Thursday opposing a potential increase in waivers that could total between 990 million and 1.8 billion credits. The proposed expansion is under consideration as part of efforts to lower gasoline prices amid heightened geopolitical tensions, though the administration has not finalized its approach.
The coalition argued that a surge in exemptions would weaken the Renewable Fuel Standard’s demand signal, citing a projected 500 million-gallon increase in biofuel quotas for 2027 to offset lost volumes. They warned that such a move would decimate biofuel markets and reduce demand for corn and soybean oil, directly impacting the Farm Belt ahead of the November midterm elections.
Senator Joni Ernst of Iowa, a key agricultural state, criticized the proposal as a subsidy for refiners. "You don’t lower gas prices by taking American-made biofuel off the market," she said in a statement. "These exemptions will crush demand for corn and soybeans while padding the pockets of refiners already making record profits."
Biofuel credit prices, known as RINs, have already fallen on expectations of weaker demand. The Environmental Protection Agency set renewable volume obligations for 2026 and 2027 in a March rule, but the administration is weighing whether to restore lost gallons through future quotas or other mechanisms. A decision is expected by the end of August, though sources indicate the final contours remain unresolved.
The White House has stated it will prioritize consumer interests, farmers and energy supply chains in its ruling, leaving the outcome uncertain for biofuel producers and agricultural markets.
