Ethanol regulations would bring higher costs

Feedstuffs
(9/22/2009)

A study commissioned by the National Corn Growers Association tallies the high cost of proposed regulations by the U.S. Environmental Protection Agency to implement the expanded Renewable Fuel Standard. The study found that the up-front cost to the ethanol industry for compliance with the new regulations could reach $30 million, with annually recurring compliance costs reaching up to $420 million.

Higher costs for ethanol producers mean increased costs for corn growers, said Steve Ruh, chairman of NCGA's Ethanol Committee.

"Paperwork has a price," Ruh said. "At a time of economic recession, the last thing any industry needs are new regulations – especially unneeded recurring reporting requirements – that can cost up to a half-billion dollars a year."

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