In victory for oil industry, EPA proposes lower renewable fuel quotas

|By:, SA News Editor

The EPA is proposing a range of 15B-15.52B gallons of renewable fuel in 2014, nearly 3B fewer gallons of biofuel to be blended into gasoline than mandated by the original 2007 law.

The new proposal angers farm groups, corn ethanol producers and supporters of biodiesel, but it's a victory for oil companies, which have long argued that if the content of ethanol in motor fuel exceeded 10% - i.e., the "blend wall" - it might damage cars, motorcycles and lawn mowers.

The administration also is setting a 2B-2.5B gallon target range for all advanced biofuels (earlier).

Among the biggest movers: PEIX +13%, ADM -2.9%.

Refiners: VLO +0.8%, HFC -0.4%, PSX -0.5%, TSO -0.3%.

ETF: CORN -1.2%.