WASHINGTON (Reuters) – The Obama administration proposed on Friday slashing federal requirements for U.S. biofuel use in 2014, bowing to pressure from the petroleum industry and attempting to prevent a projected fuel crunch next year. The move was seen as a clear win for oil refiners and a loss for biofuel producers. It followed a prolonged lobbying blitz on both sides of the issue. The plan follows the Environmental Protection Agency’s warnings that the country was approaching a point where the so-called renewable fuel standard (RFS) would require the use of more ethanol than can be blended into gasoline at the 10 percent level that dominates the U.S. fueling infrastructure. Refiners have said this “blend wall,” if left in place, would force them to export more fuel or produce less gasoline, leading to shortages and higher prices at the pump. In response, the EPA proposed to cut overall use […]