Pacific Ethanol (PEIX) Resuming Operations At Stockton Due To EPA E15 Ruling & Incentives

Pacific Ethanol (PEIX) is moving in pre-market trading on news the company plans to resume ethanol production at its Stockton, California facility and expects to begin in December.  The move comes as a result of two big decisions – the approval in the California state budget to provide funding for the California Ethanol Producer Incentive Program which provides payments to ethanol producers during times when the margins are unfavorable (I’d sure love that in my business!) and (2) the recent approval by the EPA of E15 gasoline for use in 2007 and newer vehicles.

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"Resuming production at the Stockton facility allows us to help meet the growing demand for high-value California-produced ethanol," stated Neil Koehler, PEI’s president and CEO. "As market conditions continue to improve, we also aim to resume operations at the 40 million gallon per year facility in Madera, California."

Shares of PEIX are up about 6% in pre-market trading and this news may be the news to push the stock through resistance of the 200 day moving average. 

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