Nearly three dozen conservatives – including longtime allies of President Donald Trump – are pushing the House to overturn biofuel-blending quotas imposed by his administration, arguing they are stoking consumer costs before an election set to hinge on economic concerns.
The US mandates compelling refiners to mix ethanol and other biofuels into gasoline and diesel over the next two years are “a regressive tax on American workers, businesses and families,” the group said in a letter being sent to members of Congress Thursday.
Prominent conservative leaders joining the effort include Unleash Prosperity Chairman Stephen Moore and Grover Norquist, the president of Americans for Tax Reform. Jerry Simmons, president of the Domestic Energy Producers Alliance chaired by billionaire oilman and longtime Trump supporter Harold Hamm, also signed on to the missive.
The effort takes aim at record-setting renewable fuel quotas for 2026 and 2027 that were finalized by Trump’s Environmental Protection Agency in March. While the targets have drawn praise from corn and soybean farmers as well as biofuel producers for helping foster demand, they’ve been blasted by some small- and mid-size refiners who say they’re overly aggressive and will drive up costs.
The current quotas represent the “largest, most expensive RFS mandate in history and the single most expensive regulation of President Trump’s second term,” the letter says, citing the EPA’s estimate of at least $20 billion in annual costs. “At a time when inflation remains a primary concern for constituents, Congress should look to provide relief at the pump, not entrench bureaucratically imposed mandates that inflate fuel costs.”
Cost-of-living concerns loom as a key issue ahead of the November midterm elections that will determine whether the Republican Party maintains control of the House and Senate, after the war in Iran resulted in the near closure of the Strait of Hormuz, driving up fuel prices.
Trump has signaled his concern for higher gasoline costs, arguing in a social media post early Wednesday that fuel prices aren’t falling fast enough, despite increased crude flows through the strait as well as dropping oil prices.
Some refiners have already seized on high fuel prices during the war to urge the Trump administration to dial back the Renewable Fuel Standard targets, warning energy companies may have to curb gasoline production and will be forced to dip into reserve compliance credits to fulfill the quotas. Some have estimated that the cost of those compliance credits could add as much as 36 cents to each gallon of gasoline.
“For American workers, businesses and families already strained by inflation and high gas prices, this is the last thing they need,” Tom Pyle, president of the American Energy Alliance that spearheaded the effort, told Bloomberg.
Thursday’s letter intensifies the pressure campaign against Trump on an issue that divides some of his core constituencies in the oil and agriculture sectors. The conservatives are pushing lawmakers to support a congressional resolution that would effectively block the Trump-era targets. The measure was advanced by Representative Scott Perry, a Pennsylvania Republican.
Opponents, including some large oil refiners and biofuel producers, argue the targets are within reach and say they can boost output, helping winnow American dependence on fossil fuels. They also say farmers, who have been hit by high costs of inputs such as fuel and fertilizer, need expanded biofuels markets to create demand for their swelling crops.
What do you think? We’d love to hear from you, join the conversation on the
The is a new social experience created for you and all energy professionals to Speak Up about our industry, share knowledge, connect with peers and industry insiders and engage in a professional community that will empower your career in energy.
