Ethanol Loading Facilities Fuel Concerns

WASHINGTON -- The nation's move toward renewable fuels has fueled a booming business for ethanol producers. The industry said it is on track to produce a record 9 billion gallons this year. But some are warning the boom has created a new danger in communities across the country.

The concern centers around so-called ethanol transfer stations that are springing up around the country. It's where ethanol is pumped from rail cars into tanker trucks.

"We had no notification, it just suddenly appeared," homeowner Jennifer Johnson said.

This ethanol transfer station is practically in Johnson's backyard. There's an elementary school next door.

"I am concerned that it's not protected, potentially it may not be safe and I am concerned about the damage and danger to the community," Johnson said.

Experts said ethanol is highly flammable grain alcohol and because it can't be shipped by pipeline, the industry relies on trains and trucks to move it to fuel tank farms around the country.

Concerned citizens point to recent accidents involving ethanol shipments. Last year in Baltimore, a tanker truck filled with ethanol flipped over and burst into flames. And in 2006, a train carrying the fuel in Pennsylvania derailed, causing an explosion.

"The ethanol in these tank trucks is 95 percent pure. The ethanol mixed w/gas in your car is ten percent pure," said Mindy Lyle, with the Cameron Station Civic Association.

The ethanol industry said there's no cause for concern and the Federal Railroad Administration said there are strict regulations in place, like site inspections and other precautions that make this as safe as possible.

The International Association of Fire Chiefs said a tanker truck filled with ethanol is no more dangerous than one filled with gasoline. An ethanol emergency response coalition has been created to help address some of the concerns.

A bill working its way through Congress would require safety and environmental impact assessments before this type of operation is allow in a community.

Because these operations are conducted on railroad property and are part of interstate rail operations, city governments cannot regulate them. The rail industry believes such regulation isn't necessary.

Government watchdogs said no government agency is keeping track of where ethanol transfer stations are being located.

The American Ethanol Coalition said a couple of years ago there were only three or four of them. Now there are at least a dozen under construction.