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Special Report: Can Detroit Airport Experiment Help Aviation Biodiesel, Local Economy Take Off?

One mile south of Detroit Metropolitan Airport, a field of oriental mustard seed plants is part of an aviation-biodiesel experiment.

ROMULUS, Mich. – The runways at Detroit Metropolitan Airport rank as some of the nation’s busiest, handling some 452,000 takeoffs and landings each year along with more than 32 million passengers.

The land adjacent to them, on the other hand, sits mostly unused. Other than creating a buffer for noise-prevention and security reasons, that land has little useful value.

Officials at Detroit Metro and three other Michigan airports are hoping to change that. They’ve partnered with a Michigan State University researcher to grow oriental mustard seed and other plants on that property. Those plants will be harvested and processed into aviation-grade biodiesel that’s then used at the facility.

The project is believed to be the first of its kind in the Midwest, and it’s attracting attention from airlines, government agencies and even a former high-profile Ford Motor Company executive.

In the short term, it’s an experiment to see whether researchers can create an alternate fuel source grown in close proximity to airport users. In the long term, officials believe the biofuel industry in general and aviation-grade biodiesel in particular can make a significant economic impact in Michigan.

“It is going to take a concerted effort by farmers, by industry, by airlines and engineers and developers in order to see this all come to fruition,” said Dennis Pennington, a bioenergy educator from the MSU Extension leading the project, which is funded by a $476,000 state grant. Continue reading

Midwest Memo: Biden Touts Jobs Bill in Michigan, Rahm Emanuel Promises to Face Chicago’s ‘Sacred Cows’

Three stories making news across the Midwest today:

1. Biden champions jobs bill. Vice President Joe Biden made two stops in Michigan on Wednesday, touting President Obama’s $447 billion jobs bill. In a visit to Flint, Biden noted the city’s rise in murders, rapes and fires that occurred as police and fire staffing levels dropped. “That is a witch’s brew,” Biden tells Businessweek. “That is a mixture for a cancer in the city.” Later, during a stop in Grand Rapids, the vice president said economists believe the American Jobs Act would create 2 million jobs next year. Flint Mayor Dayne Walling said federal funding recently helped the city hire six police officers, but more are needed.

2. Chicago budget proposal chops services. On Wednesday, Chicago Mayor Rahm Emanuel unveiled a budget that called for taxes on tourists and suburbanites, close three police stations, streamline garbage collection, cut library hours and double water bills for the average household by 2015, according to the Chicago Tribune. “I’ve taken on a tremendous amount of political sacred cows,” Emanuel said  during a presentation to the City Council. “Not once, not twice, not three times, not four times, but multiple times across the budget.”

3. Hydrofracking permits soar in Ohio. The pace of permits being issued for hydrofracking in Ohio has quickened. The Columbus Dispatch reports today that 27 permits were issued for drilling in the Utica Shale formation underneath Ohio from July to September – more than half the total number issued since 2009. Meanwhile, Democrats in the state House said yesterday they would seek a moratorium on hydrofracking in the state until the U.S. Environmental Protection Agency completes a study on the controversial drilling’s effects on air and water.

Midwest Memo: Ford Reaches Agreement With UAW, Wisconsin Aims to be Energy Industry Leader, Coal at Crossroads

Three stories making news across the Midwest today:

1. UAW and Ford reach tentative deal. The United Auto Workers union has reached a tentative agreement with Ford Motor Co., announced Tuesday, that calls for $6,000 in signing bonuses and the creation of 5,750 new jobs at plants in the United States. Workers could vote on the agreement by the end of the week. “The American auto industry is on its way back,” UAW President Bob King said in a statement, adding the jobs will be added by the end of 2012. Crucial to the deal was consensus on entry-level wages of approximately $17 per hour. The tentative agreement means that Chrysler is the only automaker of the Big Three without a deal.

2. Coal at a crossroads. Coal produces nearly half the electricity used in the United States, but benefits associated with coal are outweighed by pollution and health problems that cause more economic harm than good, according to a recent study from the American Economic Review. Our partner station Ideastream begins a multi-part series today examining the economic impact of coal and its future in the Midwest. First up in the series: the natural gas boom has given coal added competition. Coal’s share of the nation’s electricity production was at its lowest level in more than 30 years through the first quarter of 2011.

3. Wisconsin announces microgrid project. On Monday, Wisconsin officials announced a new project that aims to make the state a national center for energy microgrids, according to the Milwaukee Journal Sentinel. By using energy storage devices and battery systems, microgrid “energy islands” maximize the use of energy from renewable sources, according to the newspaper, and could help if main power grids are disrupted. Several Milwaukee-area companies and the state’s four largest engineering schools are among the participants in the project.

Midwest Memo: Ford and White House Clash Over Ad, Critics Charge Ohio Has Grown Too Cozy With Industry

Three stories making news across the Midwest today:

1. Ford stops controversial ad campaign. Ford has curtailed an ad campaign that featured an indirect rebuke of the federal bailout of the auto industry. The Detroit News reports the White House had “questions” about the marketing campaign, which featured a “real person” explaining his decision to buy a Ford instead of a car from a company bailed out by the government – a shot at rivals General Motors and Chrysler. “This thing is highly charged,” a source tells the newspaper. Ford “never meant it to be an attack on the policy.”

2. Ways to close Chicago’s budget gap. Chicago’s City Hall watchdog agency has proposed more than $2.8 billion in spending cuts and revenue increases, according to our partner station WBEZ. Ideas include a city income tax, tolls on Lake Shore Drive and privatizing trash collection, among others. The proposal from Inspector General Joe Ferguson includes 63 ideas to help Chicago contend with a projected $635 million deficit in 2012. Among the more controversial cuts is the possibility of laying off more than 700 firefighters and more than 300 police officers to save $190 million.

3. Critics: Ohio too cozy with industry. When the state of Ohio decided to set air-pollution standards on shale-gas wells earlier this year, the Ohio Environmental Protection Agency sought advice from Chesapeake Energy, a drilling company. That’s one example of a too-cozy relationship between Ohio officials and industry, critics charge. Their concerns have mounted as gas-shale has boomed. “These agencies have an open-door policy with industry that they don’t with the public,” Teresa Mills, director of an environmental advocacy group tells The Columbus Dispatch.

Midwest Memo: Illinois Budget Deficit May Grow, Groupon IPO In Flux, Ohio’s Shale-Gas Boom

Three stories making news across the Midwest today:

1. Illinois’ deficit may grow. Despite budget cuts and tax increases, the state of Illinois’ budget deficit will reach $5 billion next year, according to a report released today by a government watchdog group. The Civic Federation says added pension and debt costs are causing an increase from this year’s $4.6 billion figure. “In spite of a tax increase, we’re actually losing ground under this budget,” said Laurence Msall, president of the non-partisan budgetary think tank, tells the Chicago Sun-Times.

2. Groupon IPO still uncertain. U.S. regulators are scrutinizing documents related to Groupon’s upcoming IPO more thoroughly than expected, which is delaying the offering. The Wall Street Journal reported Sunday that the Chicago-based daily deals company remains committed to the offering, but the timing is still unclear. On Friday, Groupon amended its offering documents to report reduced revenue from 2010 to $312.9 million from $713.4 million, the newspaper reported.

3. Fracking fuels Ohio boom. State regulators and industry officials may be debating the practice of hydrofracking, but across Ohio, the shale-gas boom is already taking off. Energy company workers are clogging courthouse hallways across eastern Ohio to research documents that determine who owns property, according to The Columbus Dispatch. “I’m told that, even back in the coal days of the 1950s and 1960s, it was never as busy as this,” the Harrison County recorder tells the newspaper.

Midwest Memo: UAW Talks Continue, Ohio Eyes Energy Jobs, Wisconsin Median Income Plummets

Three stories making news across the Midwest today:

1. Ohio eyes energy jobs. Ohio Gov. John Kasich hosted an energy summit Wednesday on the Ohio State University campus that brought together members of the oil and gas industries, utilities officials and environmentalists. The Plain Dealer reports there was widespread enthusiasm over the prospect of Chesapeake Energy Corp. investing $200 billion in Ohio that could bring more than 200,000 jobs. Kasich held some skepticism. “I want to make sure we are steady in this,” he told the newspaper. “I don’t want to get ahead of the curve.”

2. Ford next in UAW talks. While United Auto Workers began to vote today on a four-year deal reached last week with General Motors, the UAW has shifted its focus to negotiations with Ford. The only U.S. automakers that avoided bankruptcy in 2009, Ford workers will likely expect more lucrative terms than the ones reached in the GM deal. Reuters reports there’s some resentment among UAW Ford workers over the $26.5 million compensation package Chief Executive Alan Mulally received, one that UAW president Bob King called “morally wrong.”

3. Wisconsin median income plummets. Adjusted for inflation, median household income in Wisconsin plunged 14.5 percent between 1999 and 2010, according to U.S. Census Bureau Data released today. The Milwaukee Journal Sentinel reports the median household income dropped, when adjusted, from $57,316 to $49,001 last year. “The middle class is taking a beating,” Timothy Smeeding, director of the Institute for Research on Poverty at the University of Wisconsin-Madison, tells the newspaper. “We were manufacturing our pants off. But times are changing.”