Trump White House urges new talks on biofuels policy

The Trump administration has urged oil and biofuel producers to negotiate a compromise on the future of US biofuels policy, aiming to prevent the political clashes that defined his first term, Reuters reported.
The oil industry and biofuel producers have long competed for a share of the multibillion-dollar US gasoline market, frequently clashing over the Renewable Fuel Standard (RFS) — a federal programme requiring billions of gallons of ethanol and other biofuels to be blended into the nation’s fuel supply, Reuters added.
Following the White House directive, at least two meetings have taken place, including one last week hosted by the American Petroleum Institute (API).

Participants, including API’s vice president of downstream policy, Will Hupman, discussed key issues such as future biofuel blending mandates, exemptions for small refineries, and biofuel tax policies.
Any agreement between the two industries could influence the Trump administration’s approach to biofuels policy moving forward.
The range discussed was between 4.75 billion and 5.5 billion gallons, with some wanting higher volumes in 2026 and others pushing for a more gradual rise, the three sources said.
Blending mandates for ethanol, meanwhile, have capped out at 15 billion gallons, and the parties saw little growth prospect due to plateauing demand for gasoline, the sources said.
The groups were also split over small refinery exemptions to the RFS, one of the most controversial and divisive issues, the sources said.
In Trump's first administration, the EPA approved a record number of such exemptions, letting small refiners sidestep their blending obligations, and triggering political backlash from his Republican allies in the Farm Belt who said it punished farmers.