The White House has directed U.S. environmental regulators to consider broader biofuel blending waivers for small oil refineries, aiming to reduce gasoline prices that remain above $4 per gallon.
Federal officials asked the Environmental Protection Agency (EPA) to allow refiners to blend fewer biofuels into gasoline and diesel than initially mandated, according to industry briefings. The move follows sustained pressure on retail fuel costs, which have been supported by disruptions in Middle East oil exports via the Strait of Hormuz amid tensions with Iran.
The EPA is currently reviewing 34 pending waiver requests from small refineries. Analysts expect the agency to approve between 1.2 billion and 1.8 billion Renewable Identification Numbers (RINs) in exemptions this year, up from the 1 billion initially projected. The total biofuel blending mandates for 2026 stand at a record 26.81 billion RINs.
High exemption levels could eliminate demand for up to 500 million gallons of biodiesel and renewable diesel, according to the American Soybean Association. The group estimates such exemptions would cost soybean farmers roughly $1 billion in lost revenue.
A coalition of attorneys general from Iowa, South Dakota, and Missouri urged the EPA to reject broad waiver requests, arguing refiners seek excessive concessions. Senator Chuck Grassley of Iowa also criticized potential waivers, stating they would primarily benefit refiners recording record profits.
The EPA has indicated it will issue a decision on the waiver requests by the end of the month. The White House’s push aligns with prior efforts to lower energy costs, including emergency oil stockpile releases and summer gasoline regulation waivers.
