Shareholders Press Big Oil for Risk Information

  • The major risks with tar sand include dealing with pollution, and with lawsuits from native tribes that live near the oil sands.(Photo courtesy of the US DOE)

Several investors’ groups want four major oil companies to reveal the risks of getting oil from Canadian tar sands. Rebecca Williams reports shareholders will be considering this at BP’s general meeting this week:

Transcript

Several investors’ groups want four major oil companies to reveal the risks of getting oil from Canadian tar sands. Rebecca Williams reports shareholders will be considering this at BP’s general meeting this week:

Tar sands are kind of like they sound: they’re sand or clay soaked in oil. Canada’s tar sands are the second largest oil reserves in the world, so oil companies are all over them. But it’s a dirtier source of oil.

Several investors groups have filed shareholder resolutions with BP, Conoco-Phillips, Shell, and Exxon-Mobil. They want companies to reveal the risks to stockholders of getting oil from tar sands.

Emily Stone is with Green Century Capital Management.

“We want these companies to be more forthright about what they see as the big risks and how they’re mitigating those risks.”

She says risks include dealing with pollution… and lawsuits from native tribes that live near the oil sands.

BP did not want to be recorded for this story. But in a statement to shareholders, BP told them to vote no. BP says Canada’s oil sands are a proven and secure source of oil.

For The Environment Report, I’m Rebecca Williams.

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Nuclear Loans Guaranteed

  • If all goes according to plan, the nuclear reactors will go up in six to seven years and cost around 14 billion dollars. (Photo courtesy of the National Renewable Energy Laboratory)

The Obama Administration
announced that it will back
the cost of constructing two
new nuclear reactors. Mark
Brush reports, if they’re
constructed, they’ll be the
first reactors built in the
country in nearly three decades:

Transcript

The Obama Administration
announced that it will back
the cost of constructing two
new nuclear reactors. Mark
Brush reports, if they’re
constructed, they’ll be the
first reactors built in the
country in nearly three decades:

The Southern Company plans to build the reactors in Georgia. They say, if all goes well, they’ll go up in six to seven years and cost around 14 billion dollars.


Investors have seen nuclear energy as a risky bet. But now that the President says the government will guarantee the loans, Wall Street might be enticed back to nuclear energy.

And then there’s the question of safety. President Obama’s Energy Secretary is Steven Chu. He says these new generation reactors are safe.

“We expect that the newer generation reactors will be ideally completely passively safe. Which means that, uh, you don’t actually need to control the reactor. If you lose control of it, it will not melt down.”

Some environmentalists say nuclear energy is not worth the costs – and there’s still no permanent place to store nuclear waste that’s radioactive for thousands of years.

For The Environment Report, I’m Mark Brush.

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Going Renewable Voluntarily

  • Researchers say some companies bought renewable power because customers pushed them to. (Photo courtesy of the National Renewable Energy Laboratory)

The market for renewable solar
and wind power is growing quickly.
Most people assume that growth
has been mandated by government.
But Shawn Allee found
a report that challenges that:

Transcript

The market for renewable solar
and wind power is growing quickly.
Most people assume that growth
has been mandated by government.
But Shawn Allee found
a report that challenges that:

The report’s from the Center for Resource Solutions, an advocacy group.

Orrin Cook was a co-author. He totaled up growth in sales of wind, solar and other renewable energy between 2003 and 2008. He compared how much growth came from government mandates and how much was bought voluntarily. Cook says the voluntary market grew a tad faster.

“States requiring renewable energy and federal government requiring renewable energy is really just part of that equation. Another part is businesses and individuals buying renewable energy when they don’t have to.”

Cook says this voluntary renewable energy market grew because some companies have eco-minded managers. But he says companies also bought renewable power because customers pushed them to.

Cook looked at federal figures that came out before the financial crisis.

For The Environment Report, I’m Shawn Allee.

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Going ‘All-In’ on Goat Farming

  • Anderson and Abbe Turner are in the midst of adding a creamery to their goat farm so they can make cheeses. (Photo courtesy of Lucky Penny Farms)

A lot of companies have been slowing
down and cutting back because of the
economy. But tough times aren’t
stopping some new businesses in the
midst of the ‘local food movement’
from moving forward. More than a
year ago, Julie Grant spoke with the
owners of a goat cheese farm. She
visited them again this year. Now,
they’re opening a new creamery, despite
lots of economic obstacles:

Transcript

A lot of companies have been slowing
down and cutting back because of the
economy. But tough times aren’t
stopping some new businesses in the
midst of the ‘local food movement’
from moving forward. More than a
year ago, Julie Grant spoke with the
owners of a goat cheese farm. She
visited them again this year. Now,
they’re opening a new creamery, despite
lots of economic obstacles:

Abbe Turner just quit her day job. She’s had a good-paying
university job – with benefits – for many years. But today
she’s waiting for the delivery of a $5,000 dollar pasteurizer.

“There we go. There’s my pasteurizer.” (cheering)

The truck arrives with a six foot round stainless steel tank.

“I never thought I’d be so excited by a 3,000 pound hunk of
metal in my entire life. But…” (laughter)

Abbe and her husband, Anderson Turner, started dreaming
of goat cheeses three years ago. This big hunk of steel will
help them finally to get their creamery off the ground.

“The pasteurizer will allow us to make cheese in small
batches, artisan cheeses. We’ll do some cheves in the
pasteurizer, some tommes and probably a goat gouda.”

The Turner’s dream started after they bought a few goats for
their hobby farm. They made a little cheese for the family.
And they liked it. So they kept getting more and more goats.

Now they have more than 160 Nubians, La Manchas, and
Alpines. Abbe and Anderson had been getting up before
dawn every morning to milk them. By hand. Then they
would get their 3 kids ready for school and head off to their
full-time day jobs.

The Turners wanted to automate milking, to make things
easier and faster. They even had a group of 23 investors
chipping in to renovate their barn into a milking parlor. But
that was last fall.

“Unfortunately, with the stock market crash, the calls kept
coming in. ‘Hi. We really believe in what you’re doing.
Unfortunately, I’m watching my investments tank and a goat
cheese operation is not something I can write a check for
right now.’”

Some people thought it would be smart to forget about
starting a new creamery in the midst of a recession. Matt
Ord used to sell the Turners feed for their goats. But he had
to shut down his family business when the economy
crashed. Now he’s working with Abbe to build her goat farm
and creamery – even though he’s not convinced it’s the right
time for this kind of venture.

“She’s nuts. But I hope everything goes good for her, I really
do. She’s got a lot of patience and a lot of nerve starting this
business right now. It’s a very scary time. And I know
things are very tough for everybody.”

Abbe likes to think of her family as bold, rather than nuts.
And most of her investors have come back on board since
last year.

Her husband Anderson Turner is glad she’s starting full-time
to get the creamery off the ground instead of waiting for the
economy to turn around.

“I can’t think negatively about opportunity. My time is now.
My opportunities are now, my life is now. So, this is the
cards I’m dealt with. I’ve got to deal. So, let’s go.”

The Turners believe that the local food trend is just getting
off the ground, and that support for local foods will more than
compensate for the tanked economy. They say restaurants
have already put in orders to buy their cheeses.

Now all they have to do is start making it.

For The Environment Report, I’m Julie Grant.

Related Links

The Candidates on Nuclear Power

  • The two presidential candidates square off on their views about nuclear power (Photo courtesy of the Commission on Presidential Debates)

Both major party candidates for
president are promising a much greener
energy plan than the current administration.
But there are big differences in the ways
each would go about it. In the first part
of our series on shifting the nation’s
energy policy, Julie Grant takes a look
at the candidates’ views on nuclear power:

Thanks to the Public Radio Exchange for providing the audio for this piece.

Transcript

Both major party candidates for
president are promising a much greener
energy plan than the current administration.
But there are big differences in the ways
each would go about it. In the first part
of our series on shifting the nation’s
energy policy, Julie Grant takes a look
at the candidates’ views on nuclear power:

John McCain and Barack Obama both claim to take climate change, and our role in creating it,
seriously. When asked during the second presidential debate about their plans to stem climate
change during their first two years in office, McCain offered ‘straight talk’.

“What’s the best way of fixing it? Nuclear power.”

More nuclear power is the centerpiece of Senator McCain’s energy policy. He’s told audiences
about the power of nuclear to reduce greenhouse gas emissions.

“Here we have a known, proven energy source that requires exactly zero emissions.”

And he says the 104 nuclear reactors currently operating in the U.S. make a big difference.

“These reactors alone spare the atmosphere from about 700 million metric tons of carbon dioxide
that would otherwise be released every year. That’s the annual equivalent to nearly all the
emissions of all the cars we drive in America.”

John McCain wants to build 45 new nuclear reactors in the U.S.

Barack Obama, meanwhile, has focused more on renewable energy sources – wind, solar, and
on energy efficiency. But he says he’s not opposed to nuclear power.

“I favor nuclear power as one component of our overall energy mix.”

Senator Obama doesn’t have any plans to build new nuclear power plants. Obama doesn’t think
nuclear is he best option. It’s expensive. And he insists its operation and waste disposal must be
safe.

Senator McCain sees Obama’s use of ‘safe’ as a code word.

“Senator Obama will tell you, as the extreme environmentalists do, that it has to be safe. Look
we’ve sailed navy ships around the world for 60 years with nuclear power plants on them. We
can store and reprocess spent nuclear fuel, senator Obama, no problem.”

But safety and radioactive nuclear waste are still unsettled issues for many people.

Andrew Hoffman is professor of sustainable business at the University of Michigan. If the country
is serious about reducing greenhouse gas emissions, he says it has to consider nuclear power.
But Hoffman says the issue of radioactive waste has to be resolved.

“And I think this is an area that the government has to step in. We have nuclear waste being
stored at facilities all over the country. That’s just not a smart way to handle this.”

The economics of nuclear are also uncertain. Lots of power companies lost their shirts back in
the 1970s, building nuclear plants.

Travis Miller is a stock analyst with the firm Morningstar.

“The financing costs are extreme. There is quite a bit of risk building new nuclear plants. They
take many years to build, cost billions of dollars to build, and without some kind of backing, I think
there are
Plenty of people in the utility industry who still remember those days when they did get in trouble
with these very expensive, risky project.”

Senator McCain says government subsidies should help build new nuclear power plants. But
Andy Hoffman at the University of Michigan says people and investors will still have concerns.

“The government can just sort of announce, we’re going to support nuclear, but there are other
things that have to come into play to make investments attractive to investors so that they’ll want
to do it.”

Hoffman says the government will have to persuade the American people nuclear power offers
more benefits than problems.

For The Environment Report, I’m Julie Grant.

Related Links

Investors Wary of Diesel From Coal

  • (Photo courtesy of the US Geological Survey)

The price of gasoline and diesel fuel from
foreign oil is making people think about other ways
to fill up. Lester Graham reports the coal industry
is pushing the idea of making diesel out of coal
from the US:

Transcript

The price of gasoline and diesel fuel from
foreign oil is making people think about other ways
to fill up. Lester Graham reports the coal industry
is pushing the idea of making diesel out of coal
from the US:

The technology to make diesel fuel out of coal has been around for a while. Germany
used it in World War II.

Recently, researchers at Rutgers and the University of North Carolina developed a
more efficient way to convert coal to diesel.

So, what’s stopping coal-to-diesel? Money and risk.

Coal to diesel is feasible – if the price of oil is above $50 a barrel. Oil is around $143 a
barrel right now. So, the money is good.

Phil Gonet is president of the Illinois Coal Association. He says now investors want
some government assistance.

“That guarantees that investors will at least get their money back if OPEC starts to play
around with the world price of oil.”

And make diesel from foreign oil cheaper than diesel from domestic coal.

For The Environment Report, this is Lester Graham.

Related Links

Investors Driving Up Food Prices?

  • Congress is investigating whether investors are inflating the prices of food and gas for profit (Photo courtesy of the USDA)

The price of food is going up and some
members of Congress want to know why. The Senate
recently held hearings on whether investors in
the commodities market are artificially inflating
prices. Mark Brush has more:

Transcript

The price of food is going up and some
members of Congress want to know why. The Senate
recently held hearings on whether investors in
the commodities market are artificially inflating
prices. Mark Brush has more:

Big investors are moving money out of stocks and other investments and into
commodities.

In the last five years, the amount of money in commodities markets has
increased 20 fold. And there’s a theory that these investors are driving up food and gas
prices.

Timothy Wood says that’s not so. He’s the editor of ResourceInvestor.com.

Instead, he
says you’re paying more mostly because the dollar is worth a lot less these days. He also
says Congressional mandates to turn corn into fuel are driving up corn prices.

“When corn is so much a part of the American food chain, and the global food chain, it is
just a complete and utter farce that this has gone and been legislated.”

Wood says Congress should let the markets sort themselves out. But some members of
Congress wonder if big investors in commodities are getting rich at the expense of
families.

For The Environment Report, I’m Mark Brush.

Related Links

Rethinking Water Runoff Design

  • Rainwater that falls on paved areas is diverted into drains and gutters. If the rainfall is heavy enough, the diverted water can cause flash flooding in nearby rivers and streams. (Photo by Michele L.)

Some planning experts are worried that the rapid development in cities and suburbs is paving over too much land and keeping water from replenishing aquifers below ground. The Great Lakes Radio Consortium’s Lester Graham
reports:

Transcript

Some planning experts are worried that the rapid development in cities and suburbs is
paving over too much land and keeping water from replenishing aquifers below ground.
The Great Lakes Radio Consortium’s Lester Graham reports:


In nature… when it rains… the water slowly soaks into the ground and makes its way
through the soil and rock to eventually be stored as groundwater. Some of it makes its
way underground to be stored in aquifers. And some of it slowly seeps through the rock
for a while and then resurfaces as springs to feed streams during times when there’s not a
lot of rain. It’s a natural storage system and a lot of cities rely on that water.


But when we build buildings and houses and parking lots and roads, a lot of the land
where the rain used to soak into the ground is covered up. Instead the rainwater runs off
the hard surfaces and rushes to stormwater gutters and ditches and then overloads creeks
and rivers. Even where there are big expansive lawns in the suburbs… the rain doesn’t
penetrate the ground in the same way it does in the wild. The grass on lawns has shallow
roots and the surface below is compact… where naturally-occurring plants have deep
roots that help the water on its way into the earth.


Don Chen is the Executive Director of the organization Smart Growth America. His
group tries to persuade communities to avoid urban sprawl by building clustering houses
and business districts closer together and leave more natural open space.


“With denser development you have a much lower impact per household in terms of
polluted runoff.”


Chen says the rain washes across driveways and parking lots, washing engine oil, and
exhaust pollutants straight into streams and rivers instead of letting the water filter across
green space.


Besides washing pollutants into the lakes and streams… the sheer volume of water that
can’t soak into the ground and instead streams across concrete and asphalt and through
pipes can cause creeks to rise and rise quickly.


Andi Cooper is with Conservation Design Forum in Chicago. Her firm designs
landscapes to better handle water…


“Flooding is a big deal. It’s costly. That’s where we start talking about economics. We
spend billions and billions of dollars each year in flood damage control.”


Design firms such as Cooper’s are trying to get developers and city planners to think
about all that water that used to soak into the ground, filtering and being cleaned up a bit
by the natural processes.


Smart Growth America’s Don Chen says those natural processes are called infiltration….
and Smart Growth helps infiltration…


“And the primary way in which it does is to preserve open space to allow for natural
infiltration of water into the land so that there’s not as much pavement and hard surfaces
for water to bounce off of and then create polluted runoff.”


People such as Chen and Cooper are bumping up against a couple of centuries or more of
engineering tradition. Engineers and architects have almost always tried to get water
away from their creations as fast and as far as possible. Trying to slow down the water…
and giving it room to soak into the ground is a relatively new concept.


The U.S. Environmental Protection Agency is trying to get communities to give the idea
some consideration. Geoff Anderson is the Acting Chief of Staff for the EPA’s Office of
Policy, Economics and Innovation.


“Anything you can do to keep that water on site and have it act more like it does in its
natural setting, anything you can do to sort of keep that recharge mechanism working,
that’s helpful.”


The EPA does not require that kind of design. It leaves that to local governments and the
private sector. The Conservation Design Forum’s Andi Cooper says sometimes getting
companies to think about treating water as a resource instead of a nuisance is a hard
sell…


“You know, this is risky. People tell us this is risky. ‘I don’t want to do this; it’s not the
norm.’ It’s becoming less risky over time because there are more and more
demonstrations to point to and say ‘Look, this is great. It’s working.’ ”


But… corporate officials are hesitant. Why take a chance on something new? They fear
if something goes wrong the boss will be ticked off every time there’s a heavy rain.
Cooper says, though, it works… and… reminds them that investors like companies that
are not just economically savvy… but also have an environmental conscience.


“A lot of companies are game. They’re open. If we can present our case that yes, it
works; no, it’s not risky; it is the ethical thing to do; it is aesthetically pleasing; there are
studies out there that show you can retain your employees, you can increase their
productivity if you give them open spaces to walk with paths and make it an enjoyable
place to come to work everyday.”


So… doing the right thing for the environment… employees… and making investors
happy… make Wall Street risk takers willing to risk new engineering to help nature
handle some of the rain and get it back into the aquifers and springs that we all value.


For the GLRC… this is Lester Graham.

Related Links

RETHINKING WATER RUNOFF DESIGN (Short Version)

  • Rainwater that falls on paved areas is diverted into drains and gutters. If the rainfall is heavy enough, the diverted water can cause flash flooding in nearby rivers and streams. (Photo by Michele L.)

An Environmental Protection Agency official wants local governments to take a broader view when making land use plans for their communities. The Great Lakes Radio Consortium’s Lester Graham reports:

Transcript

An Environmental Protection Agency official wants local governments to take a broader view
when making land use plans for their communities. The Great Lakes Radio Consortium’s Lester
Graham reports:


Often planners don’t look past their own city borders when making decisions. Geoff Anderson
wants that to change. He’s the Acting Chief of Staff for the EPA’s Office of Policy, Economics
and Innovation. Anderson says city officials often look at land use planning one site at a time
instead of looking at how their decisions will affect the entire area…


“The two scales are very important and I think in many cases too much is paid to the site level
and not enough is given to the sort of broader regional or community context.”


Anderson says that’s especially important when planning for stormwater drainage. He says too
many communities think about getting the water to the nearest stream quickly without thinking
about how that rushing water might affect flooding downstream.


For the GLRC, this is Lester Graham.

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