U.S. EPA pauses biofuel deal over oil states' demands, impeachment probe - sources

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U.S. EPA pauses biofuel deal over oil states' demands, impeachment probe - sources
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The U.S. Environmental Protection Agency has temporarily halted work on a biofue...

NEW YORK/WASHINGTON - The U.S. Environmental Protection Agency has temporarily halted work on a biofuels policy adjustment to help farmers as it awaits direction from the White House, four sources familiar with the matter told Reuters, raising the risk a proposal will not be ready in time to implement next year.

“EPA will continue to consult with our federal partners on the best path forward to ensure stability in the Renewable Fuel Standard,” an EPA spokesperson said. “The president will always seek to engage with stakeholders to achieve wins for the agriculture and energy sectors.”In September, Trump had met with biofuel officials, farm- and oil-state senators and oil refining executives to hash out the details of a “giant package” related to ethanol that he had promised to farmers in August.

The agriculture industry has said the waivers cut ethanol demand, hurting growers already suffering from lost foreign markets due to the U.S. trade war with China. The oil industry says the exemptions protect refining jobs and have no impact on the amount of ethanol that plants use. “That’s why everything has come to a grinding halt,” one of the sources said. “And then the impeachment inquiry happened and now the EPA is on hold for more guidance from the White House,” the source said.

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