Oil Companies Serve Up Bio-Diesel

  • Tom Torre (pictured) is Chief Operating Officer at Metro Fuel Oil. (Photo by Brad Linder)

For years, environmental activists have been demonstrating that you don’t need gasoline to fuel a
car. Some people have been retrofitting cars with diesel engines that can be powered by
restaurant grease. But with the price of oil soaring in recent years bio-diesel’s been getting more
popular. Brad Linder reports that it’s moving from a fuel for hobbyists to an energy alternative
that’s even getting the attention of oil companies:

Transcript

For years, environmental activists have been demonstrating that you don’t need gasoline to fuel a
car. Some people have been retrofitting cars with diesel engines that can be powered by
restaurant grease. But with the price of oil soaring in recent years bio-diesel’s been getting more
popular. Brad Linder reports that it’s moving from a fuel for hobbyists to an energy alternative
that’s even getting the attention of oil companies:


From a distance, Metro Fuel Oil in Brooklyn, New York looks like an over-sized gas station. And
in a way, that’s what it is. Truckers pull up to a series of pumps, grab a hose and load their tanks
with oil. It’ll be distributed to heating oil and diesel customers throughout the area.


Tom Torre is Metro’s chief operating officer. He says starting next year, some of those trucks
will be topping off with a blend of oil and vegetable-based bio-diesel:


“Kind of like if you’ve ever seen a Sunoco gas station where they had the different octanes you
can buy, same thing with the bio. It’d be B5, B10, B20, B15s, whatever they might utilize.”


In other words, you can get a blend… For example, B20 is 80% diesel and 20% bio-diesel.


For more than six decades, Metro has provided oil to residential and commercial customers. A
few years ago, Metro began importing processed bio-diesel from nearby states to fuel its own
fleet of 40 trucks.


But next year, the oil company plans start taking in raw vegetable oil and processing it on-site.
Metro’s planned 110 million gallon bio-diesel processing facility will be one of the largest in the
country.


Torre says Metro doesn’t expect to get out of the oil business anytime soon. But the company
does see a future for domestically-produced fuels like corn-based ethanol and vegetable-based
bio-diesel:


“And it’s good for the economy as well. I mean, you know, the numbers are astounding as to
how much we spend a day, billions of dollars a day, that are being spent on foreign imported oils that are going back to the Arabs where… and
nothing against the Arabs, don’t get me wrong, but it’s money flowing out of the United States.”


When the processing plant opens, Metro will be able convert large quantities of soybean, palm,
and rapeseed oil into fuel. With a few modifications, the facility could also process restaurant
grease:


“I’ve been here, with the company, for 25, 26 years. Most exciting thing that’s happened in at
least the last 20, 25 years. We’re looking to push this thing going forward. And with our
association as well, the New York Oil Heat Association, to say, listen guys. We’d better start
thinking about this. We’d better be forward thinkers. Otherwise we’re going to be left behind.”


But as more and more facilities like Metro’s pop up around the country, what happens to the
nation’s food supply? Bill Holmberg heads the biomass division of the American Council on
Renewable Energy. As the demand for vegetable-based fuels rises, he says so could the price of
foods based on corn and soybeans.


“I think there will be an increase in price in those. But I think they’re beginning to level off now,
I think people are beginning to realize that you can find other resources to make those diesel- type
fuels.”


Holmberg says if you make bio-diesel out of soybean oil, there’ll be less soybeans available for
food processing. But that’s not the case if you use restaurant grease. And researchers are looking
at ways to cultivate algae as a fast-growing source of vegetable oil for bio-diesel.


If the economic impact of bio-diesel remains unclear, Holmberg says there’s no question it’s
more environmentally friendly than petroleum. Bio-diesel emits far less carbon monoxide, sulfur,
and particulate matter than petroleum-based diesel.


The U.S. bio-diesel industry is still young. Last year, it processed less than 300 million gallons
of fuel, which is just a drop in the 40 billion gallon transportation diesel market. Holmberg says
even large facilities like Metro’s aren’t going to change that overnight:


“We, in the world of bio-fuels, ethanol, and bio-diesel and other forms of bio-fuels, will be
making a major contribution if we just do not increase the amount of fuels used in the
transportation sector, which we’re doing now. If we can just keep that number steady for a few
more years, we’re providing a real service to the United States.”


Holmberg hopes that ten years from now, facilities will be in place to actually reduce the amount
of petroleum used. He says that could be from a combination of ethanol, bio-diesel, gas electric
hybrid vehicles, and other technologies that are just in their infancy.


Metro’s Tom Torre doesn’t think the oil industry is going away anytime soon. But he says the
company’s willing to invest 15 million dollars in its new processing plant to help the
environment and to get in on a growing industry.


It doesn’t hurt that Metro can sell bio-diesel for almost the same price as oil. The federal
government provides a tax incentive for bio-diesel producers like Metro, and the state of New
York offers a tax credit to residents who purchase bio-diesel. Currently, that means it’s cheaper
to heat your house with a bio-diesel blend than with 100% petroleum-based heating oil.


Without those incentives, Torre says Metro would still be opening a processing facility — just a
much smaller one:


“It would definitely not have been a 110 million gallon plant. You know, we could have started it
off with 5 million gallons, let’s say, and just utilize it for people that really wanted to be green.
But when we took a hard look at it and saw that it could be competitive, especially last year as
the price of petroleum just soared, is when we really started to say you know what? Instead of
doing the 5 million, let’s just go right to the 110 million.”


Metro’s new bio-diesel processing plant – one of the biggest in the country – is scheduled to open
next fall.


For the Environment Report, I’m Brad Linder.

Related Links

Feds Take Utility Company to Court

The U.S. Justice Department is suing several utility companies in the Midwest and South. The charge is that they didn’t install state of the art pollution controls when they renovated their power plants, a violation of the federal Clean Air Act. The first case is being heard in a federal courtroom in Columbus, Ohio. The Great Lakes Radio Consortium’s Bill Cohen reports:

Transcript

The U.S. Justice Department is suing several utility companies in the Midwest and South. The
charge is that they didn’t install state of the art pollution controls when they renovated their power
plants, a violation of the federal Clean Air Act. The first case is being heard in a federal
courtroom in Columbus, Ohio. The Great Lakes Radio Consortium’s Bill Cohen reports:


About a decade ago, First Energy corporation fixed up a power plant built in 1959 in
Steubenville, Ohio, but it didn’t put in the latest high-tech scrubbers. The company insisted it was
just routine maintenance, so the requirement for top of the line pollution controls didn’t apply.
The justice department disagreed and sued, and states in the Northeast are cheering. They say
soot and smog from the Great Lakes region travel hundreds of miles to New England.
Environmental activists like Jack Shaner say maybe the pollution travels, maybe it doesn’t, but
either way, a crackdown is needed.


“Study after study have shown it’s the folks that live in the shadow of these power plants within a
hundred miles or so that bear the brunt of it. That’s why it’s particularly important for Ohio and
for the Midwest to clean up these power plants. If it helps New England, God bless ’em, but we
gotta start in our own backyard here first.”


President Bush is reportedly pushing for changes, so that state of the art pollution controls
couldn’t be required so often.


For the Great Lakes Radio Consortium, I’m Bill Cohen.

Wetlands Policy Leaves Some High and Dry?

The U.S. Environmental Protection Agency and Army Corps of Engineers recently announced plans to change their policies on enforcing the Clean Water Act on some wetlands. The move is in response to a Supreme Court decision that puts limits on the federal government’s jurisdiction over wetlands. Some environmental advocates are concerned the move will put millions of acres of wetlands in jeopardy. The Great Lakes Radio Consortium’s Jonathan Ahl reports:

Transcript

The U.S. Environmental Protection Agency and Army Corps of Engineers recently announced
plans to change their policies on enforcing the Clean Water Act on some wetlands. The move is
in response to a Supreme Court decision that puts limits on the federal government’s jurisdiction
over wetlands. Some environmental advocates are concerned the move will put millions of acres
of wetlands in jeopardy. The Great Lakes Radio Consortium’s Jonathan Ahl reports:


More than ten years ago, 23 suburbs in the Chicago area wanted to convert an old stone quarry
into a landfill to combat a shortage of space to put trash. But in the 25 years since the quarry was
abandoned, it filled with water and became home to birds, fish and plants.


The federal government called the site a
wetland and blocked the landfill project citing the Clean Water Act. The Corps said the old
quarry was now an important part of the environment because it provided plant and wildlife
habitats and protected the surrounding area from floods. The communities sued the Army Corps
of Engineers over the issue.


The U.S. Supreme Court ruled in 2001 that the federal government
can’t enforce the Clean Water Act on bodies of water that were isolated and not part of a larger
water system. The five to four decision of the court put that responsibility in the hands of the
states. The U.S. EPA and Army Corps of Engineers recently released plans to abide by those
rules.


Cameron Davis is with the Lake Michigan Federation, an advocacy group focusing on
environmental issues in the Great Lakes region. He says the federal government is backing
down too quickly:


“Well, I think what we’re seeing is another example of the administration scaling back the federal
environmental protections. Especially at the time when the states simply are not well equipped to
be able to pick up where those federal protections leave off. In an ideal world, the type of
proposal we are seeing would have been done in coordination with the states. It would
have been done in a way that will not leave wetlands out to dry.”


Davis says the Supreme Court decision only specifically relates to one case, and the federal
government was too quick to expand those thoughts to other wetlands. Davis says a longer
review process of exactly which wetlands the federal government can regulate would provide
better policy and more clarity on the issue. But the EPA says it is not sidestepping its
responsibility. Ben Grumbles is with the EPA’s Office of Water. He says the agency is doing
what it feels it has to do to comply with the Supreme Court decision.


“It’s our intent to take the interpretation that is the most reasonable and the most defensible one
that is also consistent with our mission of protecting wetlands and watersheds. We are fully
committed to protecting wetlands and watersheds to the full extent under the Clean Water Act
and the Supreme Court decision.”


Grumbles says while the EPA and Army Corps of Engineers are planning to abide by the high
court ruling, it will also be working with states to help them protect wetlands that fall outside of
the federal governments newly-defined jurisdiction. Grumbles also says the EPA is taking public
comment so it can better define what makes a body of water an isolated wetland. While the EPA
and advocacy groups have differing opinions of how to interpret the Supreme Court decision, the
legal debate might not be over.


Chris Shafer is a law professor at the Thomas Cooley Law
School in Lansing, Michigan. He says the high court made a mistake by
assuming isolated wetlands are not the responsibility of the federal government:


“I think the court also made a giant leap of logic by saying that, ‘Well, it’s not really a major issue
in terms of wetland protection because the states will take over this responsibility.’ That’s just
laughable because the states are not likely to take over wetland protection. It’s very
controversial, it’s very difficult, it’s very expensive.”


Shafer says the Supreme Court decision is so narrowly focused on such a small area of the law,
that clarification from Congress would remove any doubt as to where the federal government
could assert its authority in wetland issues. Right now there are no plans for such legislation, and
observers say it’s doubtful that a Republican-controlled Congress and the current administration
would address the issue. Environmental activists say in the mean time, they will turn their focus
to state legislatures to encourage them to pass laws to preserve these wetlands no longer protected
by the federal government.


For the Great Lakes Radio Consortium, I’m Jonathan Ahl.

Superfund Sites Without Funds

The Inspector General of the U.S. Environmental Protection Agency says the EPA didn’t fund clean up for seven toxic waste sites this fiscal year. As the Great Lakes Radio Consortium’s Annie Macdowell reports, two of the seven sites are here in the Midwest:

Transcript

The Inspector General of the U.S. Environmental Protection Agency says the EPA didn’t fund clean-up for seven toxic waste sites this fiscal year. As the Great Lakes Radio Consortium’s Annie MacDowell reports, two of the seven sites are here in the Midwest:


A tax on chemical and oil companies expired in 1995.
The tax was used to fund clean ups at some of the country’s most polluted sites.
Now most of the funding comes from tax payers.
Clean-up on two Midwest sites was pushed back – the Jennison Wright Corporation in Illinois and Continental Steel in Indiana.
Hazardous chemicals are seeping into the ground water at these two sites.
Bill Muno, the Regional Superfund Director at the EPA, says to clean up more sites each year, Congress would have to increase Superfund appropriations.


“There isn’t enough money in that annual appropriation to cover all the work that needs to be done each year.”


Muno says the EPA Inspector General’s report shows there were more sites in line for funding that were delayed under the Bush Administration.
But he adds that tests show the sites are not an immediate threat to public health.


For the Great Lakes Radio Consortium, I’m Annie MacDowell.

Enviros Oppose Channel Expansion Study

A coalition of environmental groups and others doesn’t want the Army Corps of Engineers to even study the idea of widening and deepening channels for larger ships on the Great Lakes. The Great Lakes Radio Consortium’s Lester Graham reports:

Transcript

A coalition of environmental groups and others doesn’t want the
Army Corps of Engineers to even study the idea of widening
and deepening channels for larger ships on the Great Lakes.
The Great Lakes Radio Consortium’s Lester Graham reports:


Great Lakes United represents organizations across the Great Lakes region who oppose
opening up the lakes to larger cargo vessels. The U.S. Army Corps of Engineers is
considering a 20-million dollar study to see if expanding channels makes economic sense
for shipping. Jennifer Nalbone is with Great Lakes United. She says it would be a waste
of money and time.


“Why spend five years to investigate what previous studies of the Great Lakes navigation
system have already told us, that expanding shipping capacity costs too much and gives
us too little.”


Nalbone says any economic benefit of expanding the channels could be offset by hurting
other economies such as tourism and fishing. Nalbone indicates Great Lakes United
doesn’t trust that the Army Corps of Engineers will give those industries and the
environment proper consideration.


For the Great Lakes Radio Consortium, this is Lester Graham.

GROUPS RALLY FOR ‘CAR FREE DAYS’

Cities around the world are taking part in a special celebration this month…promoting the idea of life without automobiles. The Great Lakes Radio Consortium’s Jerome Vaughn has more on what’s known as “World Car Free Days”:

Transcript

Cities around the world are taking part in a special celebration this
Month, promoting the idea of life without automobiles. The Great Lakes
Radio Consortium’s Jerome Vaughn has more on what’s known as World
Car-Free Days:


Alternative transportation advocates environmentalists and bicycle
enthusiasts are pulling together over the next couple of weeks to get
more people thinking about the benefits of life without cars.


Events celebrating the idea will be held throughout North America this
week. Some cities, like Chicago, are expected to have critical mass
bike rides where hundreds of bicyclists will purposely slow car traffic
on major streets by riding in unison. About a thousand riders took
part in Chicago’s last such event in late August. Other events in the
Great Lakes region are scheduled to take place in Madison, Wisconsin
and Hamilton, Ontario.


This week also marks the 10th anniversary of the first ever critical
mass ride…held in San Francisco in 1992.


Street parties, public gift exchanges and theatre performances are also
planned for locations around the United States and the rest of the
world.


For the Great Lakes Radio Consortium, I’m Jerome Vaughn.

Battle Over the Humbug Marsh

Environmentalists and housing developers are engaged in a battle
over a 400 acre piece of land. Humbug Marsh is one of the last
undeveloped sites on the Detroit River – the international border
between the U.S. and Canada, and a river recently designated as an
American Heritage River. The Great Lakes Radio Consortium’s Marisa
Helms reports: