The Trump administration is trying to repair relations with Farm Belt producers of ethanol and its main feedstock, corn, after a policy change allowing nearly a quarter of the nation’s oil refiners to mix less ethanol into their gasoline has been met with resistance from officeholders and trade groups representing farmers.
The administration recently granted hardship exemptions to 31 of the nation’s 135 petroleum refineries from ethanol-blending rules but has had to deal with reportedly rising political discontent in the affected parts of the country. Current law requires refiners to blend biofuels into the nation’s gasoline inventory or purchase compliance credits to subsidize refiners who can. Refiners say biofuel mandates are onerous and have lobbied against them. The exemptions save the oil industry compliance costs.
