The real threat is actually blends that use a small amount of biodiesel mixed with rock diesel. These can be burned in any engine, and there is so little food oil (animal and vegetable) compared to the demand for liquid fuel, that this practice can easily lead to the kind of effects you describe.
How safe are the fumes to be burned around cities? Remember when we found out lead in gas was unsafe to be inhaled from exhaust pipes?
Either way the tetraethyl lead situation was completely different. It was very clear early on that the stuff was extremely toxic. Lead was already known to be toxic, and workers at the refineries were dying left and right due to exposure.
Biodiesel is meant to be used in standard diesel engines and is thus distinct from the vegetable and waste oils...