Biofuels: Boon or Bust?

by Steph Larsen

Biofuels are clearly getting a lot of attention lately, and some speculate that ethanol and biodiesel will bring much needed income and spur revitalization in rural communities. Ethanol might be good for the price of corn at the moment, but it looks like it’s not going to be helping residents of rural America as much as one might think. From the Omaha World Herald:

“The EPA on Thursday substantially relaxed air pollution standards for plants that manufacture ethanol for fuel, eliminating one of the major hurdles to plant size.

“The rule will allow plants to generate two-and-a-half times more of certain types of air pollution before they face regulation. Included are particulates, volatile organic compounds and sulfur dioxide. The change also exempts some emissions from being counted toward the limit.

“Critics condemned the change as unnecessarily increasing the risk to public health. Supporters say the change represents a more balanced, fair approach to regulation that allows industry to take advantage of the economies of scale.”

“Fair” by these new standards means that the people who live near ethanol plants are the ones who may suffer more problems with asthma and other diseases caused by increased air pollution. The rule change came about because plants making ethanol for food or alcohol could pollute 250 tons, while those making ethanol for fuel could pollute 100 tons. With this decision, the EPA is choosing to prioritize the interests of corporate ethanol producers by allowing plants to pollute at the higher level, at the expense of public health and the environment.

It’s true that biofuel companies have the potential to bring income into struggling communities, except that chance for revitalization is lost when those companies choose to relocate to urban centers. From the Des Moines Register:

“Biodiesel company Renewable Energy Group Inc. says it is considering a plan to relocate its corporate headquarters to Ames. ‘The company, now based in Ralston, in Carroll County, plans to relocate to central Iowa as part of plans to grow from its current 70 employees to 300 by 2010,’ said spokeswoman Alicia Clancy.”

“Clancy said Friday that a move would help in the company’s expansion plans, strengthen its ability to recruit workers and improve operational efficiency. Relocating to Ames would put the company closer to research partners at Iowa State University and business partners including the construction and engineering company Todd and Sargent.”

Ralston had a population of 98 in 2000, and estimates projected that number to decrease even further. 230 new jobs would certainly go a long way to encourage growth and attracting new residents to Carroll County, and their business partners in Ames are only 50 miles away, hardly far by Midwestern standards.

Biofuels could be a valuable asset for rural areas, but only if jobs and profits aren’t exported to urban centers. In addition to existing incentives for biofuel production, there should be incentives for local ownership in order to capture the full benefit for struggling communities.

2 Responses to “Biofuels: Boon or Bust?”

  1. Robert Egger
    April 17th, 2007 12:45

    Good post….thanks for providing such solid info.

  2. Mike G
    April 30th, 2007 13:20

    It will be interesting to see how Iowans feel about burning up the last five inches of their topsoil just so that people in Los Angeles can continue to spend half of their day sitting in an idling car on the freeway.

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