Farm, biofuel groups urge Trump to curb expanded refinery exemptions

The Renewable Fuel Standard (RFS) requires refiners and fuel importers to blend specified amounts of renewable fuel, such as ethanol and biodiesel, into the U.S. fuel supply or buy renewable identification numbers (RINs) to demonstrate compliance.

Small-refinery exemptions allow certain smaller refineries to avoid some or all of those obligations if they can demonstrate disproportionate economic hardship. When the administration grants exemptions, the exempted gallons are effectively removed from the market unless the obligation is later reallocated.

Senator Joni Ernst, a Republican from Iowa, has criticized the potential expansion of SREs, telling Reuters in a statement that it is "a handout to Big Oil falsely marketed as relief at the pump."

"You don't lower gas prices by taking American-made biofuel off the market, and these exemptions will crush demand for corn and soybeans while padding the pockets of refiners already making record profits. Farmers lose, consumers get nothing, and oil companies rake in the cash," Ernst said.