Bill would adjust U.S. ethanol mandate

Reuters
2:33pm EDT
WASHINGTON Wed Oct 5, 2011 2:33pm EDT

WASHINGTON (Reuters) - A House bill would require a reduction in the federal mandate to use ethanol whenever corn stocks begin to tighten.

The Environmental Protection Agency would be required to reduce the Renewable Fuels Standard if the projected corn stocks-to-use ratio is below 10 percent. EPA would forecast the ratio twice a year; on Aug 1, just before harvest begins, and by Nov 30, when the size of the harvest is clear.

If the August 1 estimate is below 10 percent, a reduction would take effect 30 days after an EPA announcement and be in effect for the rest of the calendar year.

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