September 2014Published Article

Building or Buying a Biofuel Plant? Think PSM

Ethanol Producer Magazine

A company that is constructing a new ethanol or other biofuel facility, or that is acquiring an existing facility, must identify compliance with the Process Safety Management standard as a primary aspect of its due diligence. Failure to require this documentation as part of the purchase of an existing facility, or as part of the contract to build or add on to a biofuel facility, could be a very costly oversight. Rebuilding a PSM program in a biofuel facility that is already operational is a daunting and expensive task.

The PSM standard is by far the most frequently cited standard in the industry code, *NAICS 325193 (Ethyl Alcohol Manufacturing). It is also the most complicated Occupational Safety and Health Administration standard that exists.

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