White House Weighs Rule on Biofuel Exemptions and Refiners’ Obligations

The White House is reviewing a draft rule that could reshape the Renewable Fuel Standard by deciding whether to reallocate biofuel blending volumes recently exempted for small refineries.

The stakes are high: farmers depend on stable ethanol and biodiesel demand to support corn and soybean markets, while refiners seek relief from costly blending mandates. Last month, the EPA granted more than 140 exemptions from a backlog of applications, raising concerns among biofuel producers that overall blending targets would be undermined. The new proposal, covering 2023 and beyond, includes a preferred option and alternatives for redistributing those exempted gallons.

Its outcome will determine billions of gallons of U.S. biofuel demand and the balance between agricultural and oil industry interests.