Exclusive-US biofuel plan would reallocate half or less of waived blending quotas, sources say

By Jarrett Renshaw

(Reuters) -The White House is considering a plan that would require large oil refineries to cover around half or less of the biofuel blending requirements recently waived for smaller facilities, according to three sources familiar with the matter.

The proposal submitted by the Environmental Protection Agency and now under review by the White House would require large refiners to cover a range of about 50% or less of the 1.1 billion gallons of the renewable fuel exempted last month for small plants, according to the sources.

That could mean roughly 550 million gallons of lost demand, potentially increasing the supply of renewable fuel credits and putting downward pressure on their price.

The plan, if adopted, would likely frustrate biofuel producers and farm-state law