real-time news and commentary for investors
Thursday, Oct 10
Report: EPA may cut ethanol mandate next year
- Renewable energy firms tumble and oil refiners rise on reports that the EPA is considering scaling back legal requirements on the use of ethanol next year amid complaints from refiners that statutory mandates would exceed their ability to blend it into fuels without putting engines at risk.
- One proposal the agency is considering would mandate 15.22B gallons of renewable fuels in 2014 instead of the 18.15B established by a 2007 law, Bloomberg reports; the agency may call for the use of 13B gallons of conventional corn-based ethanol and 1.28B gallons of biodiesel.
- Oil industry proponents say escalating requirements of ethanol to be added would force them to sell fuel blends exceeding 10% or export gasoline, i.e. "hitting the blend wall."
- Ethanol/biofuels stocks slide: PEIX -5.8%, REGI -3.1%, GPRE -3.5%.
- Earlier: refiners rise.
- ETF: FUE.