I kind of forgot in my post, that the point I was trying to make about 
'heavy industrial' zoning in this town, was that the costs of renting a 
site zoned this way are far more expensive than the costs of rentring a 
light industrial site (I live (illegally) in what is actually a 
light-industrial zoned warehouse with a bunch of arty types and that kind 
of real estate is quite affordable for a small producer operation or any 
other small business). A 'heavy industrial' site is just completely out of 
the price range of a small producer just starting out, certainly out of the 
price range for say a volunteer-run user/producer coop .

Similarly it seems to me that the costs of insurance to cover either a 
small commercial producer operation or an amateur production co-op can be 
similarly prohibitive (we heard an estimate of 5,000 a year for insuring 
our amateur, all-volunteer coop, which is utterly, completely unaffordable 
for us, I don't have more firm figures than that yet) and on the biofuel 
list there was another small producer in Alabama who I believe was 
trying  to make fuel for the local schools or something, who couldn't find 
anyone to insure his operation AT ALL- and this was a guy working in 
cooperation with his town's authorities, setting up a sanctioned, official 
program! Of course the Brits maybe have it worse with the 'red tape' 
involving biofuels- individual drivers occasionally post stuff on lists 
about how their equivalent of liability and collision insurance (in the US 
that's the auto insurance that pays you off in the event of an accident) 
can be canceled/claims not paid, if they turn out to be driving a car with 
an unreported SVO modification- like the fuel the car was running on has 
anything to do with their problems not keeping the car between the lines on 
the road!).
anyway these are examples of ways that the cards are stacked against small 
producers (at least in some areas) and 'aboveboard' co-ops - that even 
without the major roadblock formerly caused by the NBB/EPA/health effects 
testing issue, there are all the obstacles that favor businesses with large 
amounts of investment and up-front capital to spend.

One of the beauties of biodiesel production is that you can make it using 
'$10 of parts and a broken cultivator blade' as Keith and Ed pointed out. 
This should lead to someone being able to grow their own business from 
scratch, with fairly minimal capital to start- but as is often the case, 
the business world is weighted against businesses who operate on that kind 
of low-budget mentality or practice- hence the (I think) requirements that 
would have forced that other bulk buying coop to buy a brand-new expensive 
doublewalled (that's the part I'm not 100% sure about) fuel storage tank 
when they already had a free one that would've been perfectly legal on a 
farm three miles from their proposed city location... and of course all of 
those regulations (except the British auto insurance idiocy I mentioned) 
all are enacted with employee safety and public safety and human health in 
mind.  'They' no doubt would consider the heavy industrial zoning 
requirement in Oakland to be due to impact on neighborhoods and on the 
immediate environment (which in Oakland, like anywhere else seems to 
translate into 'it's OK to stick the really polluting industries in 
predominantly-people-of-color-populated areas'). That zoning doesn't 
consider the difference between the impact of a small-producer biodiesel 
operation employing two or four people (my friend's situation I believe) 
and a Chevron refinery. I'm not completely sure what 'the deal' was with 
the Alabama producer who couldn't find ANY insurance at all for his 
business (but I've heard similar insurance horror stories in other fields) 
but that's probably due to the conservative nature (and bloodsucking! 
there. I've said it) of the insurance business- you have to have it for 
many operations, but insurance companies legally aren't obligated to 
provide it to anyone they don't want to (except in some cases like auto 
where there's been some government intervention for this). A dead-end 
situation in many cases...

mark


  

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Biofuels at Journey to Forever
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