Proposed feedstock tracking rule raises costs, international issues

By | November 11, 2009
A study commissioned by the National Corn Growers Association found that the U.S. EPA's proposed rule for the second stage of the renewable fuel standard (RFS2) would likely result in increased costs for ethanol producers. The requirement for producers to track the origins of their plant's feedstocks would be especially costly for producers, according to the study, because it would require hiring additional employees and/or installing verification software.

Caribbean producers have also expressed concerns related to the feedstock tracking requirements. The Caribbean Basin Ethanol Producers Group filed a comment with the EPA stating that if the rule is finalized as proposed it would shut down the Caribbean dehydration industry because it is impossible to verify what type of land each load of ethanol was derived from.

The EPA is scheduled to issue its final rule on RFS2 by Dec. 1, although it will likely delay its rule until late-2010.