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By Stephanie Kelly and Jarrett Renshaw NEW YORK (Reuters) – The U.S. Environmental Protection Agency is expected to issue on Friday biofuel blending mandates for the year 2022 that are lower than a number proposed in December, and mandates for the year 2021 that are above the proposed number, according to two sources familiar with discussions. The EPA is expected to set 2022 volume mandates at 20.63 billion gallons and retroactive volume mandates for 2021 at 18.84 billion gallons, the sources said. The EPA is also expected to deny pending petitions from small refiners asking to be exempted fro…