http://www.nytimes.com/2008/03/11/us/11biofuel.html?pagewanted=all


March 11, 2008
Pollution Is Called a Byproduct of a ŒClean¹ Fuel
By BRENDA GOODMAN

MOUNDVILLE, Ala. ‹ After residents of the Riverbend Farms subdivision
noticed that an oily, fetid substance had begun fouling the Black Warrior
River, which runs through their backyards, Mark Storey, a retired petroleum
plant worker, hopped into his boat to follow it upstream to its source.

It turned out to be an old chemical factory that had been converted into
Alabama¹s first biodiesel plant, a refinery that intended to turn soybean
oil into earth-friendly fuel.

³I¹m all for the plant,² Mr. Storey said. ³But I was really amazed that a
plant like that would produce anything that could get into the river without
taking the necessary precautions.²

But the oily sheen on the water returned again and again, and a laboratory
analysis of a sample taken in March 2007 revealed that the ribbon of oil and
grease being released by the plant ‹ it resembled Italian salad dressing ‹
was 450 times higher than permit levels typically allow, and that it had
drifted at least two miles downstream.

The spills, at the Alabama Biodiesel Corporation plant outside this city
about 17 miles from Tuscaloosa, are similar to others that have come from
biofuel plants in the Midwest. The discharges, which can be hazardous to
birds and fish, have many people scratching their heads over the seeming
incongruity of pollution from an industry that sells products with the
promise of blue skies and clear streams.

³Ironic, isn¹t it?² said Barbara Lynch, who supervises environmental
compliance inspectors for the Iowa Department of Natural Resources. ³This is
big business. There¹s a lot of money involved.²

Iowa leads the nation in biofuel production, with 42 ethanol and biodiesel
refineries in production and 18 more plants under construction, according to
the Renewable Fuels Association. In the summer of 2006, a Cargill biodiesel
plant in Iowa Falls improperly disposed of 135,000 gallons of liquid oil and
grease, which ran into a stream killing hundreds of fish.

According to the National Biodiesel Board, a trade group, biodiesel is
nontoxic, biodegradable and suitable for sensitive environments, but
scientists say that position understates its potential environmental impact.

³They¹re really considered nontoxic, as you would expect,² said Bruce P.
Hollebone, a researcher with Environment Canada in Ottawa and one of the
world¹s leading experts on the environmental impact of vegetable oil and
glycerin spills.

³You can eat the stuff, after all,² Mr. Hollebone said. ³But as with most
organic materials, oil and glycerin deplete the oxygen content of water very
quickly, and that will suffocate fish and other organisms. And for birds, a
vegetable oil spill is just as deadly as a crude oil spill.²

Other states have also felt the impact.

Leanne Tippett Mosby, a deputy division director of environmental quality
for the Missouri Department of Natural Resources, said she was warned a year
ago by colleagues in other states that biodiesel producers were dumping
glycerin, the main byproduct of biodiesel production, contaminated with
methanol, another waste product that is classified as hazardous.

Glycerin, an alcohol that is normally nontoxic, can be sold for secondary
uses, but it must be cleaned first, a process that is expensive and
complicated. Expanded production of biodiesel has flooded the market with
excess glycerin, making it less cost-effective to clean and sell.

Ms. Tippett Mosby did not have to wait long to see the problem. In October,
an anonymous caller reported that a tanker truck was dumping milky white
goop into Belle Fountain Ditch, one of the many man-made channels that drain
Missouri¹s Bootheel region. That substance turned out to be glycerin from a
biodiesel plant.

In January, a grand jury indicted a Missouri businessman in the discharge,
which killed at least 25,000 fish and wiped out the population of fat
pocketbook mussels, an endangered species.

Back in Alabama, Nelson Brooke of Black Warrior Riverkeeper, a nonprofit
organization dedicated to protecting and restoring the Black Warrior River
and its tributaries, received a report in September 2006 of a fish kill that
stretched 20 miles downstream from Moundville. Even though Mr. Brooke said
he found oil in the water around the dead fish, the state Department of
Environmental Management determined that natural, seasonal changes in oxygen
levels in the water could have been the culprit. The agency did not charge
Alabama Biodiesel.

In August, Black Warrior Riverkeeper, in a complaint filed in Federal
District Court, documented at least 24 occasions when oil was spotted in the
water near the plant.

Richard Campo, vice president of Alabama Biodiesel, did not respond to
requests for an interview, but Clay A. Tindal, a Tuscaloosa lawyer
representing the refinery, called the suit¹s claims ³sheer speculation,
conjecture, and unsupported bald allegations.² Mr. Tindal said that ³for
various reasons,² the plant was not now producing fuel.

The company has filed a motion to dismiss the complaint on the ground that
it has entered into a settlement agreement with state officials that
requires it to pay a $12,370 fine and to obtain proper discharge permits.

Don Scott, an engineer for the National Biodiesel Board, acknowledges that
some producers have had problems complying with environmental rules but says
those violations have been infrequent in an industry that nearly doubled in
size in one year, to 160 plants in the United States at the end of 2007 from
90 plants at the end of 2006.

Mr. Scott said that the board had been working with state and environmental
agencies to educate member companies and that the troubles were ³growing
pains.²

Ms. Lynch said some of the violations were the result of an industry that
was inexperienced in the manufacturing process and its wastes. But in other
instances, she said, companies are skirting the permit process to get their
plants up and running faster.

³Our fines are only so high,² Ms. Lynch said. ³It¹s build first, permit
second.²

In October 2005, the Alabama Department of Environmental Management informed
Alabama Biodiesel that it would need an individual pollution discharge
permit to operate, but the company never applied for one. The company
operated for more than a year without a permit and without facing any
penalties from state regulators, though inspectors documented unpermitted
discharges on two occasions.

For some, the troubles of the industry seem to outweigh its benefits.

³They¹re environmental Jimmy Swaggarts, in my opinion,² said Representative
Brian P. Bilbray, Republican of California, who spoke out against the $18
billion energy package recently passed by Congress that provides tax credits
for biofuels. ³What is being sold as green fuel just doesn¹t pencil out.²
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