Trump Looks to ‘Thread the Needle’ With Farms, Oil on Biofuels

  • EPA issued proposal to allow higher ethanol blends on Tuesday
  • Agency moves to issue decisions on small-refinery exemptions
Photographer: Daniel Acker/Bloomberg
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U.S. biofuel policy moves this week show President Donald Trump’s delicate dance between two of his most vaunted constituencies: rust-belt voters and corn-belt farmers.

On Tuesday, the Environmental Protection Agency issued a long-awaited proposal, ordered by Trump as a gift to agriculture. It would allow year-round sale of gasoline with higher levels of corn-based ethanol, but also makes changes to associated credits as advocated by a segment of the oil-refining industry. On Thursday, the EPA waived five more refineries from 2017 biofuel-blending quotas, as oil leaders argue the mandate hurts gasoline makers.