Study finds RFS2 will result high compliance costs for producers

Ethanol Producer Magazine October 2009
By Erin Voegele
Report posted Sept. 24, 2009, at 5:55 p.m. CST

A new study recently 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) is likely to result in high-up front and recurring compliance costs for ethanol producers. The study, titled “Compliance Costs Associated with the Proposed Rulemaking for the Renewable Fuels Standard,” was completed by Informa Economics.

In May the EPA released its proposed rule for the RFS2, which lays out the agency’s strategy for achieving the renewable fuel mandates and compliance standards established by the Energy Independence and Security Act of 2007 (EISA). EISA ultimately requires the use of 36 billion gallons of renewable fuel by 2022.

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