By Jarrett Renshaw
(Reuters) -The White House this week held separate meetings with oil refiners and biofuel producers as it seeks to resolve a long-running dispute over billions of gallons of U.S. biofuel-blending requirements that were waived for small refineries, according to four sources familiar with the discussions.
The discussions signal the Trump administration is nearing a decision on whether larger refiners must make up for any of the waived gallons, a decision originally expected by the end of October but delayed by the government shutdown.
The outreach underscores the administration’s effort to balance the competing demands of two politically powerful constituencies — the oil industry, which says federal blending mandates threaten refinery jobs, and the farm belt, which argues the waivers have eroded demand for corn-based ethanol and other biofuels. The outcome could influence fuel prices, farm incomes and broader energy politics heading into next year.
The meetings, which included trade groups representing the largest U.S. refiners and biofuel companies, also touched on ways to make gasoline containing 15% ethanol, known as E15, available year-round. The administration could package that move with reforms to the small refinery waiver program to win support from both industries, the sources said.
The White House did not immediately respond to a request for comment.
Under the U.S. Renewable Fuel Standard, refiners must blend billions of gallons of biofuels into the nation’s fuel supply each year or buy compliance credits, known as RINs, from others that do. The law allows small refiners to apply for waivers, known as small refinery exemptions, if they can demonstrate economic hardship.
The Environmental Protection Agency has cleared a backlog of more than 180 small refinery exemption requests dating back to 2016 — a sweeping move that required the agency to propose a method to account for waived obligations. The EPA proposal said the agency will have waived blending obligations worth 2.18 billion RINs from 2023 through 2025.
Biofuel groups want non-exempt refiners to make up for the full 2.18 billion RINs to prevent reduced demand for renewable fuels, while refiners oppose reallocation, saying it would raise regulatory costs.
“We appreciate the administration’s leadership in bringing stakeholders together to advance a practical solution on E15 and small refinery exemption reform,” a spokesperson for the American Petroleum Institute said.
(Reporting by Jarrett Renshaw; Editing by Lisa Shumaker)
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