Trump Administration Plans to Double Biofuel Refinery Exemptions
President Donald Trump is expected to double small refinery exemptions to lower gasoline prices, sparking backlash from farm-state lawmakers and biofuel producers.
The Donald Trump administration is expected to approve a significant expansion of the small refinery exemption program as early as Monday or Tuesday. The move aims to lower fuel production costs and ease upward pressure on gasoline prices, which have surged during the U.S. conflict with Iran, while supporting Republicans ahead of the November midterm elections.
Officials are considering doubling exemptions from approximately 950-990 million credits to 1.8 billion. These exemptions allow oil refineries to opt out of the Renewable Fuel Standard, which requires blending renewable fuels into transportation supplies or purchasing compliance credits. To mitigate the impact on the Farm Belt, the administration discussed increasing 2027 biofuel quotas by roughly 500 million gallons.
Agricultural and biofuel groups have strongly opposed the plan. Grant Kimberly of the Iowa Biodiesel Board warned that the move could destroy 500 million gallons of biomass-based diesel demand and cost soybean farmers roughly $1 billion in lost revenue. Senator Joni Ernst criticized the proposal as a handout to oil companies that would crush demand for corn and soybeans.
