The Trump administration last week said it will ensure at least 15 billion gallons of ethanol are blended into the nation’s fuel supply by reallocating gallons lost due to exemptions given to small refineries.

"We are going to guarantee that the 15 billion gallons of ethanol that is in the (Renewable Fuel Standard) statute is going to be what the farmers can depend on for ethanol," said Environmental Protection Agency (EPA) Administrator Andrew Wheeler.

The deal had been rumored to be in the works for weeks after Iowa Sens. Charles Grassley and Joni Ernst, Gov. Kim Reynolds and biofuel industry representatives met with President Donald Trump last month to offer a unified approach to address the growing concern over the waivers. Oil industry groups met with the president urging him to continue the waivers.

“Iowa Farm Bureau is...