Why Should Nuke Guarantees Cost Less than Student Loans?
The Department of Energy (DOE) wants to give the Southern Company a nuclear power loan guarantee at better interest rates than you can get on a student loan. And unlike a home mortgage, there may be no down payment.
The terms DOE is offering the builders of the Vogtle atomic reactors have only become partially public through a Freedom of Information Act lawsuit filed by the Southern Alliance for Clean Energy (SACE).
We still may not know all the details.
SACE has challenged the $8.33 billion loan guarantee package announced by President Obama in 2010.
The documents show the DOE has intended to charge Southern a credit subsidy fee of 1 to 1.5 percent, far below the rates you would be required to pay for buying a house or financing an education.
On a package 15 times bigger than what the federal government gave the failed solar company Solyndra, Southern would be required to pay somewhere between $17 million and $52 million. Advocates argue the fee is so low that it fails to adequately take into account the financial risks of the project. Numerous financial experts have estimated the likely fail rate for new nuclear construction to be at 50 percent or greater.
Furthermore, since a primary lender would be the Federal Financing Bank, the taxpayer is directly on the hook. Guaranteed borrowings are not supposed to exceed 70 percent of the project's projected costs, but it's unclear what those costs will actually turn out to be, as the public has been given no firm price tag on the project.
There is apparently no cash down payment being required of Southern as it seems the loan is designed to be secured with the value of the reactors themselves, whatever that turns out to be. In the unlikely event they are finished, liability from any catastrophe will revert to the public once a small private fund is exhausted.
Southern wanted the terms of the DOE offer kept secret, and we still don't know everything about it. But in March, a federal circuit court judge ordered that the public had a right to know at least some of the details.
Apparently no final documents have actually been signed between Southern and the DOE. The Office of Management & Budget has reportedly balked at offering the nuke builder such generous terms. Southern has reportedly balked at paying even a tiny credit fee.
Construction at the Vogtle site has already brought on delays focused on the use of sub-standard concrete and rebar steel. The projected price tag—whatever it may be—has risen as much as $900 million in less than a year.
Southern and its Vogtle partners are in dispute with Westinghouse and the Shaw Company, two of the reactors' primary contractors. Georgia ratepayers have already been stuck with $1.4 billion in advance payments being charged to their electric bills. Far more overruns are on their way.
The Vogtle project is running somewhat parallel with two reactors being built at V.C. Summer in South Carolina, where $1.4 billion was already spent by the end of 2011. Delays are mounting and cost overruns are also apparently in the hundreds of millions.
Southern and Summer's builders both claim they can finance these projects without federal guarantees. But exactly how they would do that remains unclear.
Two older reactors now licensed at the Vogtle site were originally promised to cost $150 million each, but came in at $8.9 billion for the pair. The project's environmental permits are being challenged in court over claims the Nuclear Regulatory Commission failed to account for safety lessons from the Fukushima disaster.
The terms of the guarantees are now apparently being scrutinized by the Office of Management & Budget, which reports to a White House that may be gun-shy over new construction guarantees due to bad publicity from the Solyndra fiasco.
The Nuclear Information & Resource Service has already facilitated more than 10,500 e-mails sent directly to DOE Secretary Chu.
You might ask: why should the builders of nuclear power reactors get better terms than students struggling to pay for college or working families trying to buy a home?
At least the home buyers can get private liability insurance, which the nuke builders can't.
If mounting grassroots opposition can stop this package, it's possible no new reactors will ever be built in the U.S.
So send the OMB and DOE a copy of your mortgage or student loan statement.
Demand that before they finance any more nukes, they drop your own payment to 1 percent, just like they're offering the reactor pushers. Also demand the right to buy a home without a down payment.
See how far you get, and then make sure Vogtle goes no farther.
By Melissa Gaskill
Two decades ago scientists and volunteers along the Virginia coast started tossing seagrass seeds into barren seaside lagoons. Disease and an intense hurricane had wiped out the plants in the 1930s, and no nearby meadows could serve as a naturally dispersing source of seeds to bring them back.
Restored seagrass beds in Virginia now provide habitat for hundreds of thousands of scallops. Bob Orth, Virginia Institute of Marine Science / CC BY 2.0<p>The paper is part of a growing trend of evidence suggesting seagrass meadows can be easier to restore than other coastal habitats.</p><p>Successful seagrass-restoration methods include <a href="https://www.sciencedirect.com/science/article/abs/pii/S0304377099000078?via%3Dihub" target="_blank">transplanting shoots</a>, <a href="https://onlinelibrary.wiley.com/doi/10.1111/j.1061-2971.2004.00314.x" target="_blank" rel="noopener noreferrer">mechanized planting</a> and, more recently, <a href="https://www.nature.com/articles/s41467-020-17438-4" target="_blank" rel="noopener noreferrer">biodegradable mats</a>. Removing threats, proximity to donor seagrass beds, planting techniques, project size and site selection all play roles in a restoration effort's success.</p><p>Human assistance isn't always necessary, though. In areas where some beds remain, seagrass can even recover on its own when stressors are reduced or removed. For example, seagrass began to recover when Tampa Bay improved its water quality by reducing nitrogen loads from runoff by roughly 90%.</p><p>But more and more, seagrass meadows struggle to hang on.</p><p>The marine flowering plants have declined globally since the 1930s and currently disappear at a rate equivalent to a football field every 30 minutes, according to the <a href="https://www.unep.org/resources/report/out-blue-value-seagrasses-environment-and-people" target="_blank" rel="noopener noreferrer">United Nations Environment Programme</a>. And research published in 2018 found the rate of decline is <a href="https://agupubs.onlinelibrary.wiley.com/doi/full/10.1029/2018GB005941" target="_blank" rel="noopener noreferrer">accelerating</a> in many regions.</p><p>The causes of decline vary and overlap, depending on the region. They include thermal stress from climate change; human activities such as dredging, anchoring and coastal infrastructure; and intentional removal in tourist areas. In addition, increased runoff from land carries sediment that clouds the water, blocking sunlight the plants need for photosynthesis. Runoff can also carry contaminants and nutrients from fertilizer that disrupt habitats and cause algal blooms.</p><p>All that damage comes with a cost.</p>
The Value of Seagrass<p>As with ecosystems like rainforests and <a href="https://therevelator.org/mangroves-climate-change/" target="_blank">mangroves</a>, loss of seagrass increases carbon dioxide emissions. And that spells trouble not just for certain habitats but for the whole planet.</p><p>Although seagrass covers at most 0.2% of the seabed, it <a href="https://www.unenvironment.org/news-and-stories/story/seagrass-secret-weapon-fight-against-global-heating" target="_blank">accounts for 10%</a> of the ocean's capacity to store carbon and soils, and these meadows store carbon dioxide an estimated 30 times faster than most terrestrial forests. Slow decomposition rates in seagrass sediments contribute to their <a href="https://www.researchgate.net/publication/238506081_Assessing_the_capacity_of_seagrass_meadows_for_carbon_burial_Current_limitations_and_future_strategies" target="_blank" rel="noopener noreferrer">high carbon burial rates</a>. In Australia, according to <a href="https://onlinelibrary.wiley.com/doi/10.1111/gcb.15204" target="_blank" rel="noopener noreferrer">research</a> by scientists at Edith Cowan University, loss of seagrass meadows since the 1950s has increased carbon dioxide emissions by an amount equivalent to 5 million cars a year. The United Nations Environment Programme reports that a 29% decline in seagrass in Chesapeake Bay between 1991 and 2006 resulted in an estimated loss of up to 1.8 million tons of carbon.</p>
Eelgrass in the river delta at Prince William Sound, Alaska. Alaska ShoreZone Program NOAA / NMFS / AKFSC; Courtesy of Mandy Lindeberg / NOAA / NMFS / AKFSC<p>Seagrasses also protect costal habitats. A healthy meadow slows wave energy, reduces erosion and lowers the risk of flooding. In Morro Bay, California, a 90% decline in the seagrass species known as eelgrass caused extensive erosion, according to a <a href="https://www.sciencedirect.com/science/article/abs/pii/S0272771420303528?via%3Dihub" target="_blank" rel="noopener noreferrer">paper</a> from researchers at California Polytechnic State University.</p><p>"Right away, we noticed big patterns in sediment loss or erosion," said lead author Ryan Walter. "Many studies have shown this on individual eelgrass beds, but very few studies looked at it on a systemwide scale."</p><p>In the tropics, seagrass's natural protection can reduce the need for expensive and often-environmentally unfriendly <a href="https://www.nioz.nl/en/news/zeegras-spaart-stranden-en-geld" target="_blank" rel="noopener noreferrer">beach nourishments</a> regularly conducted in tourism areas.</p><p>Seagrass ecosystems improve water quality and clarity, filtering particles out of the water column and preventing resuspension of sediment. This role could be even more important in the future. By producing oxygen through photosynthesis, meadows could help offset decreased oxygen levels caused by warmer water temperatures (oxygen is less soluble in warm than in cold water).</p><p>The meadows also provide vital habitat for a wide variety of marine life, including fish, sea turtles, birds, marine mammals such as manatees, invertebrates and algae. They provide nursery habitat for <a href="https://wedocs.unep.org/bitstream/handle/20.500.11822/32636/seagrass.pdf?sequence=1&isAllowed=y" target="_blank" rel="noopener noreferrer">roughly 20%</a> of the world's largest fisheries — an <a href="https://www.floridamuseum.ufl.edu/science/seagrass-meadows-harbor-wildlife-for-centuries/" target="_blank" rel="noopener noreferrer">estimated 70%</a> of fish habitats in Florida alone.</p><p>Conversely, their disappearance can contribute to die-offs of marine life. The loss of more than 20 square miles of seagrass in Florida's Biscayne Bay may have helped set the stage for a widespread <a href="https://www.wlrn.org/2020-08-14/the-seagrass-died-that-may-have-triggered-a-widespread-fish-kill-in-biscayne-bay" target="_blank">fish kill</a> in summer 2020. Lack of grasses to produce oxygen left the basin more vulnerable when temperatures rose and oxygen levels dropped as a result, says Florida International University professor Piero Gardinali.</p>
Damaged Systems, a Changing Climate<p>Governments and conservationists around the world have already put a lot of effort into coastal restoration efforts. And that's helped some seagrass populations.</p><p>Where stressors remain, though, restoration grows more complicated. <a href="https://www.rug.nl/research/portal/en/publications/the-future-of-seagrass-ecosystem-services-in-a-changing-world(3a8c56db-7bed-4c9e-ac7f-c72453e2a102).html" target="_blank">Research</a> published this September found that only 37% of seagrass restorations have survived. Newly restored meadows remain vulnerable to the original stressors that depleted them, as well as to storms — and <a href="https://www.ecowatch.com/tag/climate-crisis">climate change</a>.</p>
Seagrass in Dry Tortugas National Park, Florida. Alicia Wellman / Florida Fish and Wildlife / CC BY-NC-ND 2.0<p>In Chesapeake Bay a cold-water species of seagrass is currently hitting its heat limit, especially in summer, according to Alexander Challen Hyman of University of Florida's School of Natural Resources and Environment. As waters continue to warm due to climate change, the species likely will disappear there.</p><p>Climate-driven sea-level rise complicates the problem as well. Seagrasses thrive at specific depths — too shallow and they dry out or are eaten, too deep and there isn't enough light for photosynthesis.</p>
But There’s Good News, Too<p>Luckily, left to its own devices, a seagrass meadow can flourish for hundreds of years, according to a <a href="https://royalsocietypublishing.org/doi/10.1098/rspb.2019.1861" target="_blank" rel="noopener noreferrer">paper</a> published last year by Hyman and other researchers from the University of Florida. The researchers arrived at their conclusion by looking at shells of living mollusks and fossil shells to estimate the ages of meadows in Florida's Big Bend region on the Gulf Coast.</p><p>That area has extensive, relatively pristine seagrass meadows. "Our motivation was to understand the past history of these systems, and shells store a lot of history," said co-author Michal Kowalewski.</p><p>A high degree of similarity between living and dead shells indicates a stable area, while a mismatch suggests an area shifted from seagrass to barren sand. The researchers found that long-term accumulations of shells resembled living ones, suggesting that the seagrass habitats have been stable over time.</p><p>That stability allows biodiversity to thrive, creating conditions where specialist species can survive and flourish, according to Hyman.</p><p>Discovering the long-term stability of seagrass meadows has implications for choosing restoration sites, Kowalewski notes.</p><p>"There must be reasons they thrive in one place, while a mile away they don't and fossil data says they probably never did," he said. "If we remove a seagrass patch, we cannot hope to plant it somewhere else. It's not just the seagrass that is special. The location at which it's found is special, too."</p><p>A better approach is conserving these habitats in the first place, but we're not doing enough of that right now. The UN reports that marine protected areas safeguard just 26% of recorded seagrass meadows, compared with 40% of coral reefs and 43% of mangroves.</p>
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