White House Pushes for Breakthrough on U.S. Refinery Waivers as Oil–Biofuel Tensions Peak

The White House held separate meetings with major U.S. oil refiners and biofuel producers this week as the Trump administration edges closer to a long-awaited decision on how to address billions of gallons of biofuel-blending requirements previously waived for small refineries. The conversations, confirmed by four sources, suggest an announcement may be imminent after delays caused by the government shutdown. At the center of the talks is a fiercely contested issue: whether larger refiners should compensate for the gallons waived under the U.S. Renewable Fuel Standard’s small refinery exemption program. Oil companies argue that federal blending mandates jeopardize refinery jobs, while farm-state advocates say the waivers have undercut demand for ethanol and other biofuels — hurting rural economies. The decision will carry significant implications for fuel prices, farm incomes, and national energy politics heading into next year. Participants also discussed ways to offer E15 gasoline — containing 15% ethanol — year-round. The administration may bundle this move with reforms to the waiver process in an attempt to satisfy both industries. The EPA recently cleared a backlog of more than 180 exemption requests and estimated that 2.18 billion RINs were waived from 2023 to 2025. Biofuel groups want those volumes restored; refiners strongly oppose it.