White House Debates Biofuel Quota Exemptions

President Donald Trump has objected to a ruling earlier this month that waives biofuel quotas for 31 U.S. refineries, Bloomberg News reports.

The quotas, which were ordered by Congress in 2007, require petroleum refiners to blend 10% biofuel into the gasoline they make. The program, administered by the Environmental Protection Agency, seeks to promote clean air, reduce dependency on foreign oil and support corn farmers whose produce is used to make ethanol.

The original law granted automatic exemptions to 59 small refiners. EPA has been reviewing applications for waivers from dozens of other refineries for whom the quotas still apply.

EPA’s decision on Aug. 9 to grant 31 new exemptions prompted Sen. Chuck Grassley (R-Iowa) to declare that the Trump administration had “screwed” the state’s farmers.

Sources tell Bloomberg that Trump asked during a lengthy meeting on Monday if some of the new waivers could be rescinded. He was told it may not be possible to reverse the EPA ruling, so the discussion turned to other options to boost demand for ethanol. 

Bloomberg says the White House suggested that environmental credits be strengthened for manufacturers that make flex-fuel cars and trucks, and that government agencies be ordered to use more such vehicles.