PBF - White House announces biofuel mandates - consumers win bio-refiners lose

Under pressure from consumers and the oil lobby, Biden's EPA has retroactively reduced the 2020 biofuel blending obligation for refineries by nearly 15% Additionally, the 2021 obligation calls for 18.5b gallons of biofuel blending, compared to the original 2020 target of 20.1 billion gallons (and newly reduced 2020 obligation of 17.1b gallons) Given the lower overall blending quota, the EPA is reportedly unwilling to provide small refinery blending exemptions With small refineries from CVR Energy (NYSE:CVI), Delek (NYSE:DK) and PBF (NYSE:PBF) all developing in-house bio-fuel production capacity, the absence of refinery exemptions is likely to be less economically taxing than in the past However, a lower overall mandate paired with growing biofuel refining capacity is sure to put pressure on margins for pure-play bio refineries like Renewable Energy Group (NASDAQ:REGI), which fell 5% today as rumors of the release surfaced in the press The proposed standard should reduce fuel costs pressures

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White House announces biofuel mandates - consumers win, bio-refiners lose