The Trump administration is poised to approve expanded biofuel waivers for U.S. oil refiners, with a decision expected as early as Monday, according to sources familiar with the matter. The move would cover roughly 1.8 billion renewable fuel credits for the latest year, nearly double the volume the Environmental Protection Agency (EPA) had initially planned to exempt.
The waivers, which apply to small refineries seeking relief from biofuel blending requirements under the Renewable Fuel Standard (RFS), are part of a broader effort to ease upward pressure on gasoline prices. The administration has faced growing political pressure to address fuel costs amid rising tensions with Iran, while balancing concerns from farmers who argue that exemptions reduce demand for their crops.
In addition to the waivers, the EPA is considering adding approximately 500 million renewable fuel credits—or potentially more—by reopening the 2027 biofuel quotas. This adjustment would offset economic harm to farmers by increasing blending obligations for larger refiners. The EPA had previously stated it would finalize decisions on pending exemption requests by the end of August.
Major oil companies, including Marathon Petroleum and Chevron, have facilities among the applicants for waivers. The RFS system, established by Congress, mandates that refiners and fuel importers blend specified volumes of renewable fuels into gasoline and diesel or purchase renewable identification numbers (RINs) to comply. Small refineries can seek exemptions if compliance would cause disproportionate economic hardship.
The decision comes ahead of November’s congressional elections, adding a layer of political sensitivity to the policy move. Analysts note that while the waivers may provide short-term relief for refiners and consumers, they could further strain relations with agricultural stakeholders ahead of the vote.
