Ethanol mandate should survive
The US renewable-fuel mandate should be immune from opposition from the livestock, oil and food industries even with elevated corn prices, says FBR, which sees a 60-vote majority in the Senate being unlikely to repeal.
It adds that ethanol opponents' hopes the EPA would waive the mandate face long odds as doing so would require evidence of "severe harm" to the economy from the mandate. FBR calls that "a difficult burden of proof."
It acknowledges, however, that industry could face long-term threats from other biofuels or a corn-supply shortfall caused by severe drought.
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(END) Dow Jones Newswires
September 22, 2011 09:42 ET (13:42 GMT)