A mortgage program through Fannie Mae can help people buy older
homes and make them more energy efficient with one loan. (Photo by Lester
Graham)
Winter is here, and homeowners are preparing for another
round of expensive home heating bills. The U.S. Energy Department
says depending on the fuel you use, home heating costs will rise between
nine percent and 30 percent this winter over last. The high cost of energy
has prompted at least one family to go deeper into debt to save on energy
costs in the future. The Great Lakes Radio Consortium’s Erin Toner has
more:
Transcript
As homeowners face another winter of rising heating bills, one loan officer in the
region
is promoting energy efficiency when people shop for a mortgage. The Great Lakes Radio
Consortium’s Erin Toner reports:
The government and government-chartered companies such as Fannie Mae offer Energy
Efficient Mortgages. But relatively few homeowners take advantage of them. Under the
program, new or existing homes are inspected and rated for energy efficiency. The
homeowners decide which energy-efficient improvements to do, and then roll the cost of
them into their mortgage.
Joel Wiese is a loan officer. He recently closed one of the few non-governmental
energy
efficient mortgages in the Great Lakes region.
“When you start looking at the total housing expense, utilities on top of the rest
of what
you’re doing, you’re basically going to spend less money than you normally would.
Because you’re reducing your utilities. Even though you’re increasing your mortgage
slightly, you’re reducing your utilities significantly. It’s a win-win.”
Wiese says there haven’t been more energy efficient mortgages in the region because
few
realtors, loan officers and lenders know how to use the program.
For the Great Lakes Radio Consortium, I’m Erin Toner.
Because mobile homes can be transported they're not taxed the way permanent homes are. They're taxed like vehicles (when they're bought and sold). Mobile home owners pay a small tax for the small plot of land they sit on. (Photo by Chris McCarus)
Some officials are saying mobile home owners don't pay their fair share of taxes. Mobile home advocates disagree. (Photo by Chris McCarus)
Mobile home parks like this one in mid-Michigan offer a housing option for low income families. (Photo by Chris McCarus)
People who live in mobile homes might be seeing their property taxes going up. Some government officials say it’s an attempt to tax for the services used and to discourage mobile home parks from sprawling across former farm fields. But others wonder if higher taxes aren’t a form of discrimination against this kind of affordable housing. The Great Lakes Radio Consortium’s Chris McCarus reports:
Transcript
People who live in mobile homes might be seeing their property taxes going up. Some government officials say it’s an attempt to tax for the services used and to discourage mobile home parks from sprawling across former farm fields. But others wonder if higher taxes aren’t a form of discrimination against this kind of affordable housing. The Great Lakes Radio Consortium’s Chris McCarus reports:
(sound of expressway traffic)
The Capital Crossings mobile home park sits on rolling farmland near an Interstate highway. The residents of the 15 homes have moved here either to retire or to make the 30 minute daily commute to nearby Lansing, Michigan. And more mobile homes are being pulled in.
(sound of construction)
Workers are building porches and attaching the skirting between the ground and the house. It’s supposed to show permanence, like a foundation. But mobile homes are not permanent. And mobile homes are not taxed the same way as other houses. They’re taxed like vehicles. Taxed when they’re purchased. Taxed when they’re sold. Still there are no property taxes on the homes. Only on the tiny lots on which they sit.
Some government officials say the $3 a month that these park residents have been paying for property taxes don’t cover the costs of police and fire protection or other government services. They want a tax hike to give local governments more money. Dave Morris is a farmer and the local township supervisor.
“We all have to pay our fair share for services such as sheriff, ambulance, fire department as well as schools. Schools is a big issue of course. And they aren’t paying their share. That’s all.”
But advocates for affordable housing say hiking taxes on mobile home residents is more likely just an attempt to discourage that kind of housing. They say zoning mobile homes out of existence has been tried, but taxing them out is a new idea. Higher taxes will likely lead to mobile home parks closing.”
John McIlwain is with the Urban Land Institute. He says as mobile home parks become more expensive to operate, their owners will sell off to subdivision or big box store developers.
“The numbers are going to be so attractive that the people who own mobile home parks are going to be much more interested in selling the land to a housing developer than in continuing to run the mobile home park. So in time the parks are probably going to disappear on their own anyway and trying to raise the taxes on them specifically is simply going to make that day come earlier.”
In Michigan there is a proposal to raise the taxes on mobile home sites four times higher. State Senator Valde Garcia says the $3 a month that mobile home park owners pay for each home site is not nearly enough.
“What we are trying to do is really change the tax structure so it’s fair to everyone. The system hasn’t changed in 45 years. It’s time we do so but we need to do it in a gradual manner.”
Senator Garcia’s colleagues in the state house have voted to raise the tax to $12 a month. He’d like to raise it to at least $40 a month. The mobile home park industry has hired a public relations firm to produce a video criticizing the tax increase.
“Site built homes pay sales tax only the materials used in their homes and don’t pay tax on resale. Manufactured home owners pay sales tax on materials, labor, transportation profit of a home and they pay sales tax every time a home is resold. ”
The two sides don’t agree on the math. Tim Dewitt of the Michigan Manufactured Housing Association says $3 a month sounds low because it doesn’t show hidden costs. The biggest cost comes when park owners have to pay the higher commercial property tax instead of the lower homestead tax. Dewitt says the park owners then pass the tax to the home owners whose average family income is only about $28,000 a year.
“That’s our worst fear. It could put people who could least afford any type of tax increase into a tough position.”
15 million people live in mobile home parks around the country. And different local governments have tried to find ways to increase taxes on mobile home parks. But Michigan is one of the first states to propose hiking taxes this much. State Senator Garcia says he is not trying to hurt the mobile home industry or make life harder for mobile home park residents. He dismisses the idea that he’s being pressured by wealthier constituents who don’t like to see the mobile home parks being developed.
John McIlwain of the Urban Land Institute says a bias against mobile home parks is part of the mentality that leads to sprawl. When people from the city and the suburbs move a little further into rural areas they want the look and feel of suburbia.
“The mobile home parks are no longer things that they want to see. And so they find ways to discourage those mobile home parks. The ones that are there try to see if they can be purchased, turned into stick built housing or otherwise discourage them and encourage them to move on elsewhere.”
But often the people who move in also want the shopping centers, restaurants and conveniences they once had instead of the mobile home parks.
For the Great Lakes Radio Consortium, I’m Chris McCarus.
A former farm field in Central Ohio ready for development. It's an increasingly common sight in this area. This land is right next door to a dairy. Worried about his new neighbors, the farmer is planning to sell. (Photo by Tamara Keith)
Some farmers opt to sell their land to developers because they can get much more money for the land than they ever could farming. Others retire and their children are not interested in farming. (Photo by Lester Graham)
Jackson's farm. Jackson has optioned this 216 acre plot of land for development. As soon as the developer gets clearance to build, this farm will be no more.
(Photo by Tamara Keith)
In the Great Lakes region, farmland is rapidly being developed into homes, office parks and shopping centers. Nationally, farmland is lost at a rate of more than 9-thousand acres a day. But in order for this development to happen, someone has to sell their land. In the first of a two-part series on farmers and the decisions they make about their land, the Great Lakes Radio Consortium’s Tamara Keith introduces us to some farmers who have made the difficult choice to sell:
Transcript
In the Great Lakes region, farmland is rapidly being developed into homes, office parks
and shopping centers. Nationally, farmland is lost at a rate of more than nine-thousand
acres a day. But in order for this development to happen, someone has to sell their
land. Tamara Keith introduces us to some farmers who have made that difficult choice:
At a busy intersection in a newly suburban area, a red barn and white house sit back
off the road. Lush green pasture land hugs the old farm buildings. But the days are
numbered for this bucolic scene.
(sound of construction)
Across the street dozens of condos are under construction… and farmer Roy Jackson has
put this 216-acre farm in Central Ohio under option for development. As soon as the
developer gets approval to build, Jackson’s farm will be no more.
“I’m a third generation farmer and you put your roots down and to see your land be
developed is something I have seen coming, but to actually see it happen across the
road; it’s a sad thing, but it’s progress.”
Sitting on his front porch, Jackson looks our on a neighborhood where once there were farms.
Jackson: “At one point we farmed over 1500 acres and now we’re down to about 300.”
Keith: “What happened?”
Jackson: “We’ve lost a lot of it to development. In the estate of my mom and dad
we had to sell that to settle the estate and that was part of it as well.”
Like many in agriculture, Jackson didn’t own all the land he farmed. He was leasing
it and when the owner decided to sell for development, Jackson was out of luck. Now
he says there’s not enough land left to farm profitably.
“I have a son that wants to farm with me and to do it here, there just isn’t enough
land to sustain two families and make a living for both.”
So, he’s found a big piece of land down in Kentucky, in an area where land is still
plentiful and development pressures are distant. He’s leasing it with an option to buy.
Soon Jackson and his son will have the cattle ranch they’ve been planning for years.
It just won’t be in the state where his family has farmed for three generations.
(sound of heavy machinery)
Workers operate backhoes to grade the ground in an open field that will eventually
be home to some seven-thousand people in a new development. Retired farmer and
agriculture educator Dick Hummel recently sold a portion of this land, allowing
the project to move forward.
“I had some people critical of me because I was going to sell farmland, but on
the other hand, I really didn’t. I traded. You just have to accept that in this
community because that’s what’s going to happen. That’s what has happened. Plus
the fact, it’s been pretty tough farming and this has given a lot of farmers a
chance to sell some land for some excellent prices.”
Hummel sold about 100 acres of farmland and bought some new land – 77 acres –
farther out in the country. His father had bought what Hummel calls the “home farm”
in 1935, and that family history weighed heavily on Hummel when he was deciding what
to do.
“It was harder to decide to sell that land because it had been in my family for many
generations than it was the agricultural part.”
His father bought the land for 100 dollars an acre and Hummel was able to sell it
for a whole lot more. Asked why he sold, Hummel’s answer is simple.
“The offer. I hadn’t thought about selling at all. I didn’t even know that they
would want any of this particular land ’till all at once there were others that
were selling for a price. I heard about that, and first thing I knew, a heck of
a lot of land in this area was selling. So you compare notes as to prices, et
cetera and so forth, and that’s how it happens.”
Hummel says he wasn’t pressured to sell. He’s well past retirement age, and
he says it was the right decision personally. And such is the case for most
farmers who sell their land for development, says Sara Nikolich, Ohio director
with American Farmland Trust.
“You’ve got acres of farmland that can be sold for 20, 30,000 dollars an acre at times.
For a lot of farmers that’s their retirement they’re sitting on, and when you have
development surrounding you and you don’t have any public policy to promote agriculture
and perhaps you don’t have any heirs, you don’t have any options available to you other
than development.”
And so, the personal decisions of individual farmers are transforming some of the
nation’s rural landscape into suburban landscapes.
For the Great Lakes Radio Consortium, I’m Tamara Keith.
A neighbor feeds Sir Herman, a calf at Beaver Creek Ranch. Herman is a Scottish Highland bull. Highland cattle are raised in the Midwest for their lean meat. (MPR Photo/Cynthia Johnson)
Kirk Bratrud's Boathouse Restaurant offers Scottish Highland beef. He is working with local farmers to boost the supply. (MPR Photo/Stephanie
Hemphill)
Nearly 1,000 cheeses made from grass-based sheep's milk are aging in the round concrete cave at Love Tree Farm. (MPR Photo/Cynthia
Johnson)
Organic food has become so popular, it’s hard to keep up with demand. For organic farmers, that booming market is a mixed blessing. When they can’t supply as much as the customers want, it puts pressure on the farmers. Some farmers are trying creative ways to fill the demand. The Great Lakes Radio Consortium’s Stephanie Hemphill reports:
Transcript
Organic food has become so popular, it’s hard to keep up with demand. For organic farmers, that booming market is a mixed blessing. When they can’t supply as much as the customers want, it puts pressure on the farmers. Some farmers are trying creative ways to fill the demand. The Great Lakes Radio Consortium’s Stephanie Hemphill reports:
About a year ago, chef Kirk Bratrud and his family built a small restaurant near the harbor in Superior, Wisconsin. It’s called The Boathouse, and it features fresh-caught fish, local vegetables, and — Scottish Highland beef.
“It’s a very lean but tender piece of meat, it has a slightly peppery flavor, something approaching elk but more like beef.”
Bratrud says his customers love Scottish Highland beef.
“Our problem with beef however is that we wish more of it was available.”
He has to take it off the menu when he runs out. It’s hard to find, and the only way he can get it at all is because three farmers in the area raise it. One of them is Doug Anderson, owner of Beaver Creek Ranch. He says Highlands offer plenty of advantages to a farmer.
“There is no waste in the animal, as the fat is on the back of the animal rather than a heavy marbling. And our animals are not grained at all. We don’t even have a feedlot. When we’re ready to take an animal to processing, it will just be picked out of the herd, put in a trailer, and go for processing.”
The animals graze in pastures. They don’t need the antibiotics that are routinely fed to animals in feedlots. Anderson has nearly 50 Highlands. The herd is growing, but it takes time to raise cattle. About 20 steers are ready for market each year.
When he started selling to The Boathouse in Superior, he realized there was a bigger market out there than he could supply. He’s recruiting his neighbors to help out. Three nearby farmers have bought brood cows and bulls. Anderson says when their animals are ready to butcher, he’ll put them in touch with The Boathouse and his other markets.
Three miles away, another organic farm has a different specialty – aged cheese made from sheep milk. Mary and David Falk milk about 100 sheep, and make about four dozen cheeses a week. The aging cave is a concrete silo, built into a hillside.
(sound of door opening)
Inside, it’s dark and cool. Nearly a thousand cheeses are resting on cedar planks. Mary Falk enjoys the different molds growing on the rinds of the cheese.
“We’ve got a gold mold, there’s a mauve colored mold, there’s a blue mold, there’s a soft green. So each one of those little molds adds a a hint of flavor and complexity to the cheese.”
The Falks used to sell their Love Tree cheeses to restaurants in New York and San Francisco. But after September 11th, the orders dropped off suddenly, and the Falks found new customers at a local farmer’s market. Now, they don’t have enough cheese to satisfy their local retail customers AND supply restaurants and cheese shops.
To boost her production, Mary Falk tried buying sheep milk from other farmers, but it didn’t taste the same as milk from the flock on her Love Tree Farm. So she tried to recruit farmers to buy some of her sheep and sell her the milk. A couple of neighbors tried it, but quit after awhile.
Her latest idea is what she calls the Love Tree Farm extended label program.
“What Love Tree is known for is our grass-based milk. And if somebody is making a high quality cheese on their farm, we are willing to put that into our market for them. We would put the Lovetree label on their cheese, like “Love Tree introducing Johnny Smith.”
Falk says it would give customers a chance to learn about new cheeses from a name they trust, and it would give new farmers access to an established market.
It takes time and ingenuity to match producers and consumers. But more and more people want organic food. Farmers who’ve been successful are trying to recruit other farmers to join them in the organic producers movement… an effort that can be profitable and easier on the environment.
For the Great Lakes Radio Consortium, I’m Stephanie Hemphill.
Heavy cleanup crews from the Genesee County Land Bank use chain saws, wood chippers, tractors and brute force to move piles of debris on the lot of an abandoned house on the north side of Flint, Michigan. (Photo by Chris McCarus)
Up until three years ago, rundown homes and abandoned lots were multiplying in the city. With the creation of the Land Bank, some people believe the city's image is beginning to turn around for the better. (Photo by Chris McCarus)
A next door neighbor to the abandoned house visits the cleanup crew. She has had to bear the eyesore and health risk next door for several years. The Land Bank currently has custody of about 2,800 properties like this in and around Flint. (Photo by Chris McCarus)
One community is fighting its problems of abandoned lands and unpaid property taxes. Those problems have led to a decaying inner city and increased suburban sprawl. The new tool the community is using is called a “land bank.” It uses a unique approach to try to fix up properties that otherwise often would be left to deteriorate. The Great Lakes Radio Consortium’s Chris McCarus reports:
Transcript
One community is fighting its problems of abandoned lands and unpaid property taxes.
They’ve led to a decaying inner city and increased suburban sprawl. The new tool the
community is using is called a “land bank.” It uses a unique approach to try to fix up
properties that otherwise often would be left to deteriorate. The Great Lakes Radio
Consortium’s Chris McCarus reports:
(sound of work crews operating wood chipper)
Cleanup crews are sending downed branches through a wood chipper on a vacant lot.
They’re also removing tires, used diapers, car seats, sinks, old clothes and dead animal carcasses.
The workers are from the Genesee County Land Bank in Flint, Michigan. They’re trying to
make abandoned property useful again. Dan Kildee is the Genesee County Treasurer and the brains
behind the land bank. He thinks this new approach can recover unpaid property tax money and help
improve the Flint Metro area.
“The community gets to make a judgment on what we think we should do with this land. We get
to take a deep breath.”
Empty lots and rundown homes have been multiplying for a generation. That’s left the city of
Flint in a terrible economic state. But the land bank is beginning to change things.
Until just three years ago, Michigan was like most other states. No one had come up with
a solution. The state would auction off a city’s tax liens. Then conflict between the tax
lien buyer and the property owner could go on for up to seven years. In the meantime,
properties were left to neglect and often vandalized.
Under this new program, the treasurer’s office forecloses on a property and hands it over
to the land bank, which acts as the property manager. The land bank might then demolish
a house; it might throw out the owner and let a tenant buy it; or it might auction it off
to the highest bidder. A private investor can’t just buy a tax lien. He has to buy the
property along with it and take care of it.
The land bank is financed in two main ways: through fees on back taxes and through sales
of the few nicer homes or buildings the land bank acquires that bring in relatively big
profits. Treasurer Dan Kildee says it makes sense to take that revenue to fix up old
properties and sell them to people who deserve them.
“There is no system in the United States that pulls together these tools. Both the
ability to quickly assemble property into single ownership of the county, the tools
to manage it and the financing tools to develop that property.”
The land bank program hopes to change the perception of Flint. As thousands of abandoned
homes, stores and vacant lots become eyesores, people and their money go other places,
usually to build more sprawling suburbs. The perception that people are abandoning the
inner city then speeds up that abandonment. Many people who can afford to leave the city do.
And those who can’t afford to move are left behind.
According to data gathered by the research group Public Sector Consultants, Flint has the
state’s highest unemployment and crime rates and the lowest student test scores.
Art Potter is the land bank’s director. He thinks the downward spiral can be stopped.
When it is, those folks in the central city won’t have to suffer for still living there.
“Even though the City of Flint has lost 70,000 people in the last 30 years, the people who
are still here deserve to have a nice environment to live in. So our immediate goal is to
get control and to clean these properties now.”
Urban planning experts are watching the land bank approach. Michigan State
University’s Rex LaMore says Flint is typical of Midwestern cities whose manufacturing
base has shrunk. Private owners large and small have left unproductive property behind.
As the land bank steps in, LaMore says it’s likely to succeed and become an example that
other municipalities can follow.
“They can begin to maybe envision a city of the 21st century that will be different than
the cities of the 20th century or the 19th century that we see around the United States.
A city that reflects a more livable environment. So its an exciting opportunity. I think
we have the vision; the challenge is can we generate the resources? And the land bank model
does provide some opportunity to do that.”
But the land bank is meeting obstacles. For example, the new mayor of Flint who took over
in July canceled the city’s existing contracts. A conservative businessman, the mayor is
suspicious of the city’s past deals. They included one with the land bank to demolish 57
homes. This has slowed the land bank’s progress. Its officials are disappointed but they’re
still working with the mayor to get the money released.
(sound of kids chatting, then lawn mower starts up)
The weeds grow rampant in a neighborhood with broken up pavement and sometimes
no houses on an entire block. It’s open and in an odd way, peaceful. Like a
century-old farm. It’s as if the land has expelled the people who invaded with their bricks,
steel and concrete.
In the middle of all the vacant lots, Katherine Alymo sees possibilities.
“I’ve bought a number of properties in the auctions from the land bank and also got a side
lot acquisition from them for my house. My driveway wasn’t attached to my house when I
bought it. And it was this huge long process to try to get it from them. But they sold it
to me for a dollar. Finally.”
And since then, she’s hired people to fix the floors, paint walls and mow the lawns.
She’s also finding buyers for her properties who want to invest in the city as she has.
Together, they say they needed some help and the land bank is making that possible.
For the Great Lakes Radio Consortium, I’m Chris McCarus.
Several environmental and sporting groups are criticizing the Bush administration’s plan to reduce mercury from power plants. They say it protects utilities at the expense of public health and the tourism industry. The Great Lakes Radio Consortium’s Stephanie Hemphill reports:
Transcript
Several environmental and sporting groups are criticizing the Bush administration’s plan
to reduce mercury from power plants. They say it protects utilities at the expense of
public health and the tourism industry. The Great Lakes Radio Consortium’s Stephanie
Hemphill reports:
The Bush plan calls for reducing mercury emissions from power plants by allowing
emissions trading – plants could buy and sell vouchers allowing mercury pollution.
Mercury is a concern because children who eat a lot of mercury-contaminated fish are at
risk of nerve damage and learning disabilities. Environmental groups say mercury should
be regulated more strictly, to protect people’s health.
They also say people might not fish as much because of concerns about mercury and they
suggest that might hurt tourism.
The Wisconsin Wildlife Federation’s George Meyer fishes with his teenage daughter.
“We actually reduce the amount of fish we catch and bring home because she and our
other children can’t eat as much fish because of these mercury health advisories.”
But the environmentalists concede they’re making a guess about mercury’s impact on
fishing and tourism. So far, in most states the number of fishing licenses issued has not
changed significantly.
For the Great Lakes Radio Consortium, I’m Stephanie Hemphill.
A company in the Great Lakes region wants to convert trash into fuel. You might have heard of plants that burn garbage to create energy. But this plant is different. This plant would convert organic trash into ethanol. The Great Lakes Radio Consortium’s Julie Grant reports:
Transcript
A company in the Great Lakes region wants to convert trash into fuel. You might have
heard of plants that burn garbage to create energy. But this plant is different. This plant
would convert organic trash into ethanol. The Great Lakes Radio Consortium’s Julie
Grant reports:
The walls of Genahol, Inc., are covered with pictures of Donald Bogner’s wife and
children. Bogner is a ruddy-looking man with a friendly attitude. He’s the kind of guy
who likes to get things done. He started Genahol seven years ago, with the idea that he
could turn paper, leaves, and grass clippings into fuel.
“The green waste is such a problem, because, what do you do with it? Well, you chop it
up, you mix manure with it, you package it, and sooner or later you finally say, hey, I
can’t sell this stuff.”
Bogner says Genahol can make fuel out nearly any plant material. A lot of green waste
winds up in landfills. But Bogner patented a new kind of process. It converts green and
paper waste to sugar, distills the sugar into alcohol and transforms the alcohol into
ethanol. Until now, ethanol has usually been made from corn or other grains. Bogner
says they’ve been surprised by how many products they can re-use to make ethanol.
Anything from stale beer, to old perfume, or factory-rejected candy…
“You just can’t imagine the volume when you start talking about Christmas candy canes.
And a bad batch of candy canes may be three million candy canes that a producer has to
destroy because they came out wrong in a batch or whatever. So, you know, three
million candy canes (laughs).”
If a Genahol facility is built, Bogner says it could convert anywhere from one hundred to
one-thousand tons of waste per day and make up to three million gallons of ethanol a
year. As long as the selling price of ethanol remains over a dollar a gallon, Bogner says
Genahol can make money. But he needs a deal. He needs a city that’s willing to let him
sort through the trash. It should be an easy sell, he says, because cities could save landfill
space and get a cut of the profits from ethanol sales.
“The hardest sell right now is that we cannot right now take them to a facility and show
them ethanol coming out of a spigot.”
And that’s the problem not only with Genahol, but with other companies that want to
convert waste to ethanol. Their ideas are theoretical. But Bogner says things are about to
change for Genahol. He’s negotiating a contract with the Solid Waste Authority of
Central Ohio, known as SWACO. It is in charge of trash in Columbus and owns one of
the largest public landfills in the country. Executive Director Mike Long is interested in
Bogner’s ideas.
“We are always looking for new methods, cost effective methods to reduce, reuse and
recycle the waste stream to reduce reliance on landfills. That is our primary purpose at
SWACO, to reduce reliance on landfills.”
SWACO already diverts yard wastes and paper from the trash stream, but there hasn’t
been much of a market for those products. That’s why Long says contracting with
Genahol makes sense.
“It’s being approached on, I think, a very conservative point of view, small scale pilot
project. Trying to minimize the risk to SWACO and the public from a financial point of
view.”
It might be a bit of a risk. SWACO and other trash managers got burned in the mid-
1990s by waste-to-energy facilities. Some plants were forced to close because they
emitted too much pollution. Genahol’s Don Bogner says the only emissions from his
plant will be carbon dioxide, which he plans to capture and sell for industrial use.
Bogner and SWACO are negotiating one of the first deals in the nation for a trash-to-
ethanol plant. Many entrepreneurs trying to sell similar ideas are having a tough time
making a deal. Monte Shaw, an ethanol industry spokesperson, says these companies
should hang on a little longer.
“It’s always harder to be first. It’s always harder to convince investors, and banks, and
government agencies, that this is going to work. ”
The government is considering tax breaks and financial assistance to encourage new
ethanol plants. One reason the government is interested is to cut dependence on foreign
oil. Another reason, is ethanol is a good replacement for MTBE in gasoline. MTBE has
been used to reduce ozone pollution, but the chemical has contaminated water supplies
and the government wants to phase it out. Don Bogner expects the move from MTBE to
increase demand for ethanol. He’s wondering if that means Genahol will be able to turn a
profit.
“That’s what my wife asks me, are we going to make money this year?”
For the Great Lakes Radio Consortium, I’m Julie Grant in Kent.
A company in the Great Lakes region wants to convert trash into fuel. This could be one of the first plants in the nation to convert organic trash into ethanol. The Great Lakes Radio Consortium’s Julie Grant reports:
Transcript
A company in the Great Lakes region wants to convert trash into fuel. This could be one
of the first plants in the nation to convert organic trash into ethanol. The Great Lakes
Radio Consortium’s Julie Grant reports:
The president of Genahol, Inc., says his facilities can make fuel out of nearly any plant
material. A lot of paper, leaves, and grass clippings wind up in landfills. But Donald
Bogner patented a new kind of process. It converts green waste to sugar, distills the
sugar into alcohol and transforms the alcohol into ethanol. Ethanol is usually made from
corn or other grains. Bogner says Genahol reuses other people’s trash.
“Genahol actually receives payment for its materials. Rather than going out and having
to pay a dollar fifty to two fifty a bushel for corn or something, we actually get paid on a
tonnage basis. So it can be very, very profitable.”
No Genahol facility has yet been built. Bogner and the Solid Waste Authority of Central
Ohio are negotiating one of the first deals in the nation for a trash-to-ethanol plant.
For
the Great Lakes Radio Consortium, I’m Julie Grant in Kent.
A mortgage program through Fannie Mae can help people buy older homes and make them more energy efficient with one loan. (Photo by Lester Graham)
