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.

Related Links

Financing Energy Efficiency

  • More than half the houses in the U.S. were built before 1970. (Photo courtesy of the National Renewable Energy Laborator)

Reducing your carbon footprint
by using less energy can cost
money. Efficient cars, energy
efficient homes, and energy-saving
appliances all take money. That’s
why some states are testing whether
homeowners would be willing
to borrow money to upgrade their
homes and, in turn, save a few
bucks in energy costs. In one
state, the plan is to get private
banks and credit unions to finance
energy efficiency. Peter Payette reports:

Transcript

Reducing your carbon footprint
by using less energy can cost
money. Efficient cars, energy
efficient homes, and energy-saving
appliances all take money. That’s
why some states are testing whether
homeowners would be willing
to borrow money to upgrade their
homes and, in turn, save a few
bucks in energy costs. In one
state, the plan is to get private
banks and credit unions to finance
energy efficiency. Peter Payette reports:

When you hear green building, you might think of a fancy new house with solar panels. But most homes are not new, so reducing the amount of energy communities use means doing something about old houses.

Max Strickland owns a business in Michigan that certifies green homes and buildings. He says more than half the houses in the U.S. were built before 1970.

“We had very little energy code requirements previous to that.”

But upgrades cost money that many homes owners don’t always have. And a lot of people saw whatever equity they had in their house disappear during the past couple of years.

Now, the State of Michigan is trying to help people find the money to make their homes more energy efficient. The program is called Michigan Saves. The state launched the pilot project in a rural area of the state. The pilot is a collaboration of a local credit union, an electric cooperative and a building supply company.
Borrowers will have their new payment tacked onto their monthly utility bill.

Trevor Williams is with Brown Lumber, the building supply company involved in the pilot. Williams says it’s likely most of the improvements will be in heating costs. He says to begin with, home owners will be encouraged to have an energy audit.

“The audit it would say things that need to be done, the top three things that are recommended. Furnace replacement, ceiling ducts and weatherizing the house those going to be the three most common items.”

But homeowners can also borrow money for new energy efficient appliances like refrigerators and hot water heaters. Sometimes loans like this are promoted as immediately paying for themselves. That is, it’s suggested the money you save on your utility bills will fully cover your new payment. That’s not necessarily the case.

Marc McKeller is with Members Credit Union which is financing the project. He says after a few years, people will be able to break even on the costs. Government tax incentives and other rebates will help that happen. But McKellar says people shouldn’t expect to take out a loan, retrofit their house and not have more to pay each month.

“The only way it could be was if a government was to give zero percent loans out and that they received tremendous rebates from the utilities and that they received a tremendous government credit.”


But, McKellar says it’s still a good deal. The interest rate for project’s loans will be a little bit better because the state is backing the loans.

And tight credit means not many banks are loaning people money to make their house energy efficient and not many people are putting money into a home that’s lost value because of the housing market bust. That’s one of the reasons they need to run a pilot project.

“They’re trying to determine through this study, how do you get a consumer to actually do this and what are the benefits?”

The directors of Michigan Saves hope to roll out a statewide program later this year. So far no banks have agreed to participate but there are other credit unions interested in the concept.

For The Environment Report, I’m Peter Payette.

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No Tax Credit for Biomass

  • Biomass power is produced from organic waste such as wood chips or grass. (Photo courtesy of the National Renewable Energy Laboratory)

When Congress approved production
tax credits for renewable energy,
not every industry got the same
treatment. Lester Graham reports
biomass power is not getting the
subsidies that other alternative
energy sources get:

Transcript

When Congress approved production
tax credits for renewable energy,
not every industry got the same
treatment. Lester Graham reports
biomass power is not getting the
subsidies that other alternative
energy sources get:

Biomass power – produced from organic waste such as wood chips, grass or stuff that would otherwise just be thrown away – got half the tax credit that wind and solar did. And, instead of the tax credit lasting ten years like the other renewable energy sectors, biomass power got five years.

Bob Cleaves is the president of the Biomass Power Association. He says that tax credit for biomass is now gone.

“And our industry, frankly, is in crisis at the moment because Congress has let expire existing production tax credits we were only given five years for and if those are not brought back to life, then I’m afraid we’re not going to be growing the baseline, we’re going to be losing the baseline.”

Cleaves says without the tax credit, some states will be at a disadvantage in meeting the federal government’s requirments for more electricity to come from renewable energy.

For The Environment Report, I’m Lester Graham.

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Money for Methane

  • Cows burp methane gas and their manure also emits methane. Methane is 21 times more potent than carbon dioxide. (Photo courtesy of the USDA)

The US Department of Agriculture
is planning to give dairy farmers
more money to cut some of their
greenhouse gas emissions. Rebecca
Williams has more:

Transcript

The US Department of Agriculture
is planning to give dairy farmers
more money to cut some of their
greenhouse gas emissions. Rebecca
Williams has more:

Cows are gassy. They burp methane gas and their manure also emits methane. Methane is 21 times more potent than carbon dioxide.

In Copenhagen, Ag Secretary Tom Vilsack promised to cut greenhouse gas emissions on farms. He said the government will be giving farmers more money for methane digesters. They’re machines that capture methane from manure.

Katie Feeney is with the environmental group Clean Air Council.

“If you can make it easy for them and cost effective for them to be sustainable, to reduce their emissions, then I foresee a lot more people participating in programs such as that.”

But some environmentalists say voluntary programs are not enough. They say big dairy farms should be regulated more.

Starting in the New Year, all kinds of businesses will have to report their greenhouse gas emissions. But there’s a big exception: large concentrated animal farms don’t have to.

For The Environment Report, I’m Rebecca Williams.

Related Links

Red Tape Behind Green Living

  • For simple weatherizing - insulation, weather stripping, windows - the tax credits apply to 30% of the cost of materials, not the labor. (Photo courtesy of the National Renewable Energy Laboratory)

Tax credits for making your home
more energy efficient got a lot
of early buzz. The promise of up
to 1500-dollars back for insulation
and windows or efficient furnaces
led to a flurry of advertising.
Tamara Keith looks
into what might be stopping people
from taking advantage of the tax
credits:

Transcript

Tax credits for making your home
more energy efficient got a lot
of early buzz. The promise of up
to 1500-dollars back for insulation
and windows or efficient furnaces
led to a flurry of advertising.
Tamara Keith looks
into what might be stopping people
from taking advantage of the tax
credits:

My husband and I recently bought an older house that could no doubt use
some weatherizing. So, I called up Reuven Walder at EcoBeco.

(sound of door opening, people saying hello)

He’s a home energy auditor. He identifies ways to make a home more
efficient.

“I joke around, I consider myself an energy efficiency social worker.”

And he’s been getting a lot of calls lately from people like me – looking
to take advantage of the tax credits.

“Let’s look around the house and you can point out some things that are
of concern to you.”

Walder has all these cool tools, like an infrared camera that can see where
the insulation isn’t doing its job. He finds plenty of trouble spots,
including one in the attic.

“And if you put your hand in this little pocket here you can feel nice
cool air.”

That’s not supposed to happen.

“I’ll be honest with you. When I find these kinds of things, it makes my
day, because we get to fix them.”

Well, not all the time. Walder says only about a third of the homeowners he
works with actually follow through on his recommendations.

“I have talked to numerous homeowners and their primary reason for not
doing it is money.”

He says the tax credits are a great shot in the arm, but, for many people,
it’s just not enough. Part of the problem is, for simple weatherizing –
insulation, weather stripping, windows – the tax credits apply to 30% of
the cost of materials, not the labor. And labor is actually the most
expensive part.

“Our economy is just so slow right now that people are just hesitant to
spend any amount of money because, regardless of the incentive, they’re
still going to have to spend a lot of money to make the improvement. It’s
not going to cover a significant portion of the cost.”

At this point, federal officials don’t know how many people have been
inspired by the stimulus package to do work on their homes. They won’t know
until everyone files their taxes in April.

“It’s definitely driving additional business.”

Matt Golden is president of Efficiency First – the national association for
the home performance retrofitting industry. But he isn’t totally sold on
the way the stimulus package is distributing the tax credits.

“The biggest incentives are for the most expensive fanciest equipment and
as you move towards the most cost effective stuff, you get much smaller,
incremental incentives.”

So, there’s big money for solar panels and geothermal heating systems. And
if you want to put in a tank-less hot water heater or a super efficient
furnace, here labor costs can be counted towards tax credits. Golden says
the smallest credits go to insulation and other simple steps.

“It’s actually kind of an impediment to the type of retrofitting projects
that have the biggest return on investment, bang for the buck and create
the most jobs.”

In my house, Walder estimates we need almost $6,000 worth of work. But,
because not all of it qualifies, I’ll only get $600 of it back from the
government – but we won’t see the money until tax season.

I’ll admit – it’s a lot more money with a lot less of a tax benefit than I
was expecting, and that’s probably what’s giving some homeowners pause.

For The Environment Report, I’m Tamara Keith.

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