Would butanol need to be moved via truck, similar to ethanol, or could it be piped?
According to RR's post it might be able to be piped. It does not dissolve in water as readily as ethanol, in fact it separates spontaneously at concentrations above 7 %. Whether or not it can be piped depends on other factors, however. Does it absorb moisture from the atmosphere if exposed to it? Or could it be contaminated with water in other ways? If so, how much water does it eventually contain? How harmful would that water ratio be to a piping-based infrastructure? I've no idea if anyone knows the answer to those questions.
The claim is that it can be piped. It is not very hygroscopic. It will absorb some water, but is not completely soluble in water like ethanol, and therefore should be less corrosive. Even better options would be C5 or higher alcohols, because they are completely insoluble in water.

Interesting you mention that I was wondering why they don't do fermentation targeting a alcohol that's insoluble in water then the fermentation product separates and you don't poison your culture and you don't need distillation. Even with butanol if the fermentation culture can survive at its soluble concentration you would just have to decant the excess alcohol.

This seems the way to go to me since it solves lots of problems.

There is some discussion here.

http://www.greencarcongress.com/2006/08/dupont_bp_and_b.html

Butanol solubility is about 9ml/100ml or 9%v/v so if a culture can withstand that your looking at a residual of 9% of the production remaining in the culture which is not bad.