US expected to approve expanded biofuel waivers as early as Monday, sources say

The Trump administration anticipates approving additional exemptions for U.S. oil refiners from biofuel blending mandates as early as Monday, according to sources familiar with the matter. This move aims to alleviate upward pressure on gas prices, as refiners seek to lower their fuel production costs. However, the proposal has sparked disagreement between farm-state lawmakers and refiners.

The former expressed concerns that the waivers would diminish the demand for their crops, while the latter argues that the mandates impose steep costs when compliance credits are expensive. The Environmental Protection Agency is expected to grant waivers to over 1.8 billion renewable fuel credits for a group of small refineries, roughly double the number initially planned for the year.

The EPA is also considering reopening the 2027 biofuel quotas and adding around 500 million additional renewable fuel credits to offset the impact on farmers. This decision is part of a broader White House effort to manage the surge in gasoline prices during the U.S. conflict with Iran, while avoiding political backlash from farmers ahead of the November congressional elections.