Reallocation plan aims to offset impact on biofuel demand.

The Trump administration is pledging to reallocate higher than expected Renewable Fuel Standard exemptions granted last week by the Environmental Protection Agency (EPA), muting the market impact of a move that farm groups said would otherwise decimate biofuel demand. 

The EPA issued small refinery exemptions (SREs) totaling 1.76 billion in RINs, the equivalent of 1.76 billion gallons of ethanol. One RIN is equal to one ethanol-equivalent gallon of renewable fuel. Biofuels that have a higher energy density than ethanol, such as biodiesel and renewable...