Obama's Economic Recovery Plan Is Green & Blue

The Center sincerely hopes President Obama will get his Green Economic Recovery Plan signed into law early in his administration. He wants to create 2.5 million new jobs by 2011 by employing people to rebuild roads, bridges and to build wind farms, solar panels, high mileage low and no emission cars, and other alternative technologies. The Center looks forward to helping him get it done.

We hope President Obama will aim some of that recovery money at replacing the drinking water lines in our older cities. We will also be recommending that he separate the Combined Sewer Overflow wastewater/stormwater systems in the older cities too. Such a retrofit would truly clean our rivers, particularly in the cities. Such 'blue' jobs will complement the green jobs President Obama seems to be dedicated to producing.

Calvert Cliff's 3rd Nuclear Reactor Proposal Under Siege

As if the cost of a new reactor in a downturning economy and Warren Buffet's speculation are not enough, now the Southern Maryland Citizens Alliance for Renewable Energy Solutions, Public Citizen and others are stepping up their attacks on plans for another nuclear plant. Calvert Cliff's nuclear power plant, sitting beautifully and powerfully along the shoreline of the Chesapeake Bay, has never been a lightning rod for antinulear activity. It sailed right through relicensing several years ago without any trouble. Now this coalition of antinuclear environmental groups is filing legal challenges to stop the construction of a third reactor.

The Center is pronuclear and has supported Calvert Cliff's at Nuclear Regulatory Commission (NRC) hearings. This does not endear us to the environmental movement in Maryland. However, we do not care because we are right and they are wrong, particularly if they believe global warming is the most serious environmental threat facing the world today. If traditional environmentalist are successful in shutting down all coal and nuclear plants (and maybe natural gas plants too), then America will face blackouts and will become a third world country. If the public and policymakers are bamboozled into believing that wind, solar and conservation can replace 90 percent of the current methods for producing electricity in America, then we pity them at election time when ratepayers have experienced blackouts and super high priced electricity. We love and promote wind, solar and efficiency, but they simply cannot carry the entire American electrical load.

Democrats Should Not Retreat on Offshore Oil Drilling Ban

House Majority Leader Steny Hoyer, left, recently told reporters at the National Press Club that Democrats will not work to reinstate the 26-year ban on oil drilling off the east and west coasts and off the coast of Florida. The Center strongly disagrees with this approach and we strongly suggest that the Democrats should show a backbone in this area. Our coasts are too precious to risk for the sake of our nation's oil addiction.

The congressional drilling moratorium was first enacted in 1982 and had been renewed annually until Democrats decided not to seek another extension when it ran out in October of this year. Congress was reacting to $4 per gallon gasoline and following President Bush's lead in not renewing the Executive Branch moratorium on offshore oil drilling. The lifting of the ban allows oil and gas leasing on most of the outer continental shelf from three miles to 200 miles.

The Center supports the lifting of the moratorium on expanded oil shale development in the West. The Center supports coal and oil shale liquefaction.

Henry Waxman Topples Seniority & John Dingell

The House Democratic Caucus ignored seniority to make Representative Henry Waxman (D-Calif.) the new head of the House Energy and Commerce Committee, defeating current chairman Rep. John Dingell (D-Mich.) on a vote of 137-122 . This has to leave a bad taste in the mouth of Dingell, who at 82, acquiesed to increase automobile fuel economy standards last year. Maybe it is just a case of internal weakness and external attack. The auto companies coming to Washington, D.C. with cup in hand

probably did not help Dingell. The vote was still very close. But those private jets combined with a request for a $25 billion loan probably angered some members who would have normally voted for Dingell.

The Energy and Commerce Committee has jurisdiction over health care, energy issues and telecommunications policy. Some felt that Dingell would be less friendly to the Obama agenda than Waxman. Waxman is clearly more aggressive on the environmental agenda items and will now be the point man on new energy legislation in the incoming 111th Congress.

Senator Lieberman Booted From Environment & Public Works

Senator Joseph, right, had to pay a price for campaigning against Barack Obama, left. He retained his chairmanship of the Homeland Security and Governmental Affairs Committee, but the Senate Democratic Caucus booted him from the Environment and Public Works Committee.

Senator Lieberman has been a legislative global warming leader for years. He has introduced the McCain-Lieberman Climate Stewardship Act of 2003 (S. 139) and McCain Lieberman Climate Stewardship and Innovation Act (S. 1151-2005) and Warner-Lieberman (S. 280-2007) climate change bills over the the past five years.

Senator Lieberman is an Independent and has been a pivotal vote in the Senate. He is still important to the Senate Democrats in upcoming votes in the 111th Congress.

Big 3 Auto Makers Want ANOTHER $25 Billion

As Congress considers a $25 billion bail-out for the auto industry, President Bush signed a $630 billion spending bill in September that included a $25 billion loan to the auto industry to help carmakers improve overall Corporate Average Fuel Economy (CAFE--vehicle fuel efficiency) standards to 35 miles per gallon by 2020, as authorized in the Energy Independence and Security Actof 2007.

The American auto companies are in such distress that they cannot wait the year-and-a half through the regulatory promulgation process before money becomes available. They need it now or just as soon at the government can get it to them. The Center is opposing all bailouts. Let the market work.

Maryland InterCounty Connector Clears Legal Hurdle

The Maryland State Highway Administration (SHA) and Environmental Defense, a national environmental group, have reached an agreement that clears the way for the ICC to continue without any further legal challenges. The ICC will link the I-270/I-370 corridor in Montgomery County with the I-95/US 1 corridor in Prince George's County starting in 2010. The terms of the agreement:

SHA will provide up to $1 million to retrofit diesel school buses in Montgomery County with exhaust systems that reduce emissions, and will work with the school system to develop a program to reduce idling.

SHA will also sponsor a three-year study that involves installing air quality monitors along a major highway selected for its similar characteristics to the ICC and I-95. The value is about $1 million.

In return, Environmental Defense Fund has withdrew its appeal of a U.S. District Court ruling from November 2007 where a judge ruled "there is no legal or equitable basis to prevent the InterCounty Connector from moving forward." The appeal is thought to be the final legal roadblock for the ICC. (WTOPNews)

Environmentalists Want To Shut Down ALL Coal Plants?

Coal and nuclear fuel 70 percent of America's electricity production. Mainstream environmental groups want to shut them down and replace them with wind, solar and conservation. We support wind, solar, efficiency and conservation too, but they cannot replace coal and nuclear power. Carbon dioxide mitigation and 316(b) are being used as weapons to close these facilities. Note the latest:

The U.S. EPA's Environmental Appeals Board (EAB) made a decision on Nov 13th that could stop the construction of up to 100 new coal-fired power plants around the U.S. In July 2007, the EPA issued a permit for a proposed Bonanza coal-fired power plant in Utah. Lawyers for the Sierra Club, Western Resource Advocates, and Environmental Defense filed a request that the permit be overturned because it did not require any controls on carbon dioxide pollution. Mainstream environmental groups noted the Supreme Court's April 2007 decision in Massachusetts v. EPA, which found that the EPA has the authority to regulate greenhouse gases under the Clean Air Act.

The EAB ruled that the Bush administration failed to offer a good reason for not regulating greenhouse-gas emissions from the proposed Bonanza plant. The board remanded the permit request to the regional EPA office in Denver, saying it should reconsider whether the best available pollution controls for CO2 should be required, and stressing that it must adequately explain its decision. The Obama EPA will now have to determine how to treat greenhouse-gas emissions under the Clean Air Act. Ultimately, Congress will need to write climate change legislation to regulate carbon dioxide. EPA will only conclude that there is no Best Available Control Technology. (Grist)

Treasury Secretary Paulson Changes Direction of TARP

Treasury Secretary Henry Paulson has angered Congress by retreating from the plan he sold to them in October to use the $700 billion to buy so-called 'toxic assets' --i.e., mortgage backed securities. The Troubled Asset Relief Program (TARP) will now be used to try to free up consumer credit. Treasury and the Federal Reserve are now developing a lending facility that will use TARP to provide investment dolars to investors to encourage them to buy securities backed by credit cards, auto loans or mortgages. It is hoped that such liquidity will increase the availability of student loans, auto loans and credit cards. Of course this program will not start until after Paulson completes the capital purchase program (American Express and GE are in line now). Paulson opposes using TARP for the auto industry, believing it is intended for financial institutions.

For good or bad only $60 billion remains from the $350 billion initially authorized by Congress. Paulson, or President Obama's Treasury secretary, will have to make the case for the second $350 billion draw. Paulson is unapologetic about his change in direction. Unfortunately, foreclosures are increasing and the Dow Jone Industrial Average keeps dropping.

Renegotiating Overdue Mortgages

The Treasury Department is trying to figure out how to assist Fannie Mae and Freddie Mac in assisting mortgage banks to assist subprime mortgage holders and others in distress who are behind on their payments. The Treasury Department abandoned its initial strategy of purchasing mortgage backed securities, which is one of the ways Fannie and Freddie made money. The crisis is getting worse so fast that Treasury Paulson has risked the wrath of Congress (and they are REALLY angry) changed his strategy and is now try to direct relief directly to mortgage holders. Maybe folk will stop calling themselves 'homeowners' if they hold mortgages. Mortgages holders in trouble have quite a gauntlet to maneuver to get relief.

Mortgage holders qualify for assistance if they live in the home, are 90 days or more behind in their payments or are in foreclosure and you own less than 10 percent equity. Fannie and Freddie, starting December 15 are then working with mortgage holder lender institutions to extend loan terms (30 years to 40), lower interest rates and push back principal payments interest free. The servicer will work with you to try to reduce your payment to no more than 38 percent of your gross income. Of courese, there is no getting around making your mortgage payments.

Fannie Mae and Freddie Mac own or guarantee 31 million U.S. mortgages, or nearly 6 of every 10. According to the Mortgage Bankers Association, 9 percent of mortgages borrowers (approx 4 million loan holders), are behind on their payments or in foreclosure at the end of June.

The U.S. Department of Housing and Urban Development (HUD) is updating the Real Estate Settlement Procedures Act of 1974 (RESPA), which established federal rules for home purchase transactions. The new rules will help consumers compare terms on mortgage loans offered by different lenders and limit big differences. Many people do not read guidelines or what they are signing when closing mortgage loans. Folks are simply going to have to start reading their loan documents or be held responsible for what they are signing.

CALL: Hope Now (888 995-HOPE) or your servicer.

President Barack Obama and Nuclear Power

Senator Barack Obama was mildly pro nuclear. Presidential candidate Barack Obama believed nuclear power should 'be on the table.' But he was caught on video saying "I am not a proponent of nuclear power." What will President Obama's position be as president? Our guess is that it will be similar to his past positions. He will support nuclear power and challenge the industry to solve the nuclear waste issue. Yet it will be up to him to get Yucca Mountain, the mandated repository for spent nuclear waste, opened sooner than the current projected opening date (2017). He will be in charge of the U.S. Department of Energy, which has authority under the Nuclear Waste Policy Act of 1982 to operate the facility. He will also be in charge of the licensing agency, the Nuclear Regulatory Commission. We suggest that President Obama should establish a separate Nuclear Waste Management Agency to manage this complex area.

Once the nuclear waste issue is under control, President Obama could embark upon a program to accelerate nuclear power plant construction in order to supply the electricity we need while simultaneously mitigating global warming. Clean nuclear power will also produce tens of thousands of green collar construction jobs.

Roughneck Rig Workers and White Collar Engineers

Industry analysts estimate that experienced "roughneck," offshore oil rig workers can make $100,000 a year and top white collar engineers can make up to $500,000 a year.

Al Gore Issues 5-Part Climate Change Plan

Al Gore's five-part plan to produce 100 percent of America's electricity from carbon-free sources within 10 years while moving toward solutions to the climate and economic crises and creating millions of new jobs:

First, incentives for the construction of concentrated solar thermal plants in the Southwestern deserts, wind farms in the corridor stretching from Texas to the Dakotas and advanced plants in geothermal hot spots that could produce large amounts of electricity.

Second, planning and construction of a unified national smart grid for the transport of renewable electricity from the rural places where it is mostly generated to the cities where it is mostly used. New high-voltage, low-loss underground lines can be designed with “smart” features that provide consumers with sophisticated information and easy-to-use tools for conserving electricity, eliminating inefficiency and reducing their energy bills. The cost of this modern grid — $400 billion over 10 years — pales in comparison with the annual loss to American business of $120 billion due to the cascading failures that are endemic to our current balkanized and antiquated electricity lines.

Third, help America’s automobile industry (not only the Big Three but the innovative new startup companies as well) to convert quickly to plug-in hybrids that can run on the renewable electricity that will be available as the rest of this plan matures. In combination with the unified grid, a nationwide fleet of plug-in hybrids would also help to solve the problem of electricity storage.

Fourth, embark on a nationwide effort to retrofit buildings with better insulation and energy-efficient windows and lighting. Approximately 40 percent of carbon dioxide emissions in the United States come from buildings. This initiative should be coupled with the proposal in Congress to help Americans who are burdened by mortgages that exceed the value of their homes.

Fifth, the U.S. should lead the way by putting a price on carbon here at home, and by leading the world’s efforts to replace the Kyoto treaty next year in Copenhagen with a more effective treaty that caps global carbon dioxide emissions and encourages nations to invest together in efficient ways to reduce global warming pollution quickly, including by sharply reducing deforestation.

The New York Times

T. Boone Pickens Wind Farm Project In Trouble

T. Boone Pickens is delaying the plan for his Mesa Power company to build the Pampa Wind Project in Texas. It was being billed as the world's largest wind farm project. Pickens spent $57 million on television during the general presidential election campaign on commercials publicizing how his plan could help the U.S. wean itself off oil imports by using wind energy to reduce natural gas use in power plants and divert it for use in vehicles. Pickens plans looked very attractive when oil was around $150 per barrel during the summer of 2008, but it is less than half that amount going into the winter months. Moreover, although renewables tax credits were extended in the financial bailout bill, the renewables industry depends on equity and credit just like other industries to complete projects. The current financial climate works against financing large capital cost projects.

Pickens planned to finance the project with 30 percent equity and 70 percent debt and the debt part is now problematic for the project considering the Wall Street meltdown. The project was to build 667 wind turbines using General Electric tirbines capable of generating 1,000 megawatts of electricity, enough to power more than one million homes. The first phase of the project, projected to cost $2 billion, was supposed to come online in early 2011. Pickens also blames the falling price of natural gas for the delay (or cancellation) of his project.

Bush Administration's Late Game Endangered Species Regs

The Bush administration is proposing changes to the Endangered Species Act regulations that would allow federal agencies to dispense with the advice of U.S. Fish & Wildlife Service biologists about whether projects pose potential harm to federally protected species. This could weaken Endangered Species Act protections by removing preventative measures which eliminate conflict early in the planning process. The Bush Administration is making the changes before the Obama administration is sworn in.

Every administration adopts regulations at the end of their term that they think should be on the books. The regs just get reversed when the new administration comes in if it is the opposing party. President-elect Obama opposes the Bush endangered species plan and will reverse it.

Center Participates in Nuclear Regulatory Commission Meeting

Center President Norris McDonald participated in the Oct 30 meeting between the U.S. Nuclear Regulatory Commission (NRC) and companies applying for new licenses (called 'Combined Operating Licenses) to build nuclear power plants. The companies include Ameren, Constellation, French firms Areva and Electricity de France. Those companies, excluding Ameren, comprise a consortium called 'Unistar.' Other members include Bechtel, Alstrom and Accenture. The all day meeting was held at NRC's Rockville, Maryland headquarters.

The NRC gave a presentation on the European Pressurized Reactor (also called Evolutionary Power Reactor) and the Combined Operating License Review Status for the following proposed plant site locations: Nine Mile Point (NY), Bell Bend (PA), Callaway (MO) and Calvert Cliffs (MD). McDonald has visited each site except for Bell Bend. Unistar provided a detailed powerpoint presentation and handout for the meeting.

McDonald asked about the status of the ownership of the Constellation Energy Group. Although it has been publicly announced that Warren Buffet's company is purchasing Constellation, France's Electricite de France/Areva are challenging the purchase along with Constellation stockholders because of their higher bid for the company. He also asked about the implications of possibly having to build cooling towers under Section 316(b) of the Clean Water Act. The Center is supporting the purchase by the French firm because we are more confident in their motivation to build.

[Photo: Norris McDonald at NRC Headquarters at left and Callaway nuclear power plant west of St. Louis, Missouri at right]

Center Opposes Warren Buffet Purchase of Constellation

We oppose the pending purchase of Constellation Energy Group by MidAmerican Energy Holding Co/Berkshire Hathaway, Inc (Warren Buffet) . We oppose it because we believe the purchase could lead to the closure of Calvert Cliffs nuclear power plant. Our assessment is that Mr. Buffet will not build a new nuclear plant at the site. Warren Buffet decided against building a reactor in Idaho due to economic reasons and we believe he would make the same decision in Maryland. The plant would cost more than he is proposing to pay for the company. Although the consortium called Unistar, of which Constellation is the lead company, is proceeding with licensing and reactor certification plans at the Nuclear Regulatory Commission, it is probably more for Constellation's Nine Mile Point proposal for a new reactor than Calvert Cliffs.

Another potential problem is the cooling water intake structure (CWIS) issue. Without getting into too many of the details, the Environmental Protection Agency (EPA) could rule that plants such as Calvert Cliffs are required to build cooling towers as 'best technology available.' We are certain that Mr. Buffet would not make such an investment and if required to do it, he would probably close the facility. This would be a tragic loss to air quality in Maryland and to the global fight to mitigate global warming.

We support the Electricite de France/Kohlberg Kravis Roberts & Company (KKR) purchase of Constellation because we believe they would build the new plant and build cooling towers if required to do so. The motivation is to get a foothold into the American market with their new reactor design. Moreover, their bid for Constellation was higher than Mr. Buffet's bid and there is stockholder litigation to take the higher priced stock offer. For the reasons listed above, we encourage the Constellation board of directors and the stockholders to reject Mr. Buffet's offer and accept EdF's offer.

Plans for 3rd Reactor at Calvert Cliffs Probably Dead

Plans for 3rd Reactor at Calvert Cliffs Looking Better

China National Offshore Oil Corp Buys Shandong Haihua Co Ltd

Shandong Haihua Co Ltd has been taken over by China National Offshore Oil Corp refinery unit (CNOOC). The deal is subject to regulatory approval. Shandong Haihua Group produces soda, ethyl acetate, methylene chloride and potassium sulfate. They are based in the eastern province of Shandong.

Shandong Haihua Group had signed a memorandum of understanding to set up a joint venture with US buyout firm Carlyle in June last year. The deal fell through due to a failure to reach agreement on major issues. This was one month after our Center visited Shandong Haihua Group and they requested us to find a buyer.

Source: Forbes

Price of Benchmark Steel Product: Hot Rolled Steel

The price of the benchmark steel product, hot-rolled steel, is $780 a metric ton on global markets. That is down from $1,000 a metric ton earlier this year but still above the $650 it costs for most steelmakers to make a metric ton of steel. (The Wall Street Journal, 10/8/08)

United States and India Commercial Nuclear Power Deal

The U.S. Congress on October 1, 2008, gave final approval to an H.R. 7081 United States-India Nuclear Cooperation Approval and Nonproliferation Enhancement Act, which facilitates nuclear cooperation between the United States and India [House Vote]. This bill passed in the House of Representatives by roll call vote on Sep 27. The vote was held under a suspension of the rules to cut debate short and pass the bill, needing a two-thirds majority. The totals were 298 Ayes, 117 Nays, 18 Present/Not Voting. This bill passed in the Senate by roll call vote on Oct 1. The totals were 86 Ayes, 13 Nays, 1 Present/Not Voting. President Bush signed the bill into law on October 8, a week after the bill was ratified by the U.S. Congress.

First introduced in the joint statement released by President Bush and Indian Prime Minister Manmohan Singh on July 18, 2005, the deal lifts a three-decade U.S. moratorium on nuclear trade with India. Center President Norris McDonald attended a White House South Lawn ceremony welcoming Singh (see photo at right).

It provides U.S. assistance to India's civilian nuclear energy program, and expands U.S.-India cooperation in energy and satellite technology. Although India is not a signatory to the Nuclear Nonproliferation Treaty (NPT), India has maintained strict controls on its nuclear technology and has not shared it with any other country. Under the U.S. Atomic Energy Act, which regulates the trade of nuclear material, congressional approval was needed to pass the exemptions to U.S. laws required for the nuclear deal to be implemented. Article I of the treaty says nations that possess nuclear weapons agree not to help states that do not possess weapons to acquire them. In 1968, India refused to sign the NPT, claiming it was biased. In 1974, India tested its first nuclear bomb, showing it could develop nuclear weapons with technology transferred for peaceful purposes. As a result, the United States isolated India for twenty-five years, refusing nuclear cooperation and trying to convince other countries to do the same.

The details of the deal include the following:

India agrees to allow inspectors from the International Atomic Energy Association (IAEA), the United Nations' nuclear watchdog group, access to its civilian nuclear program. By March 2006, India promised to place 14 of its 22 power reactors under IAEA safeguards permanently. India has promised that all future civilian thermal and breeder reactors shall be placed under IAEA safeguards permanently. India retains the sole right to determine such reactors as civilian, which means that India will not be constrained in any way in building future nuclear facilities, whether civilian or military. Military facilities-and stockpiles of nuclear fuel that India has produced up to now-will be exempt from inspections or safeguards.

India agrees to continue its moratorium on nuclear weapons testing.

India agrees to prevent the spread of enrichment and reprocessing technologies to states that don't possess them and to support international nonproliferation efforts.

U.S. companies will be allowed to build nuclear reactors in India and provide nuclear fuel for its civilian energy program. (An approval by the Nuclear Suppliers Group lifting the ban on India has also cleared the way for other countries to make nuclear fuel and technology sales to India.)

Source: Council on Foreign Relations

Congress Passes Financial System Bailout Bill

The Senate passed its financial system bailout bill (H.R. 1424) 74 to 25 on Wednesday, October 1, 2008 and the House passed the bill 263 to 171 on Friday, October 3, 2008. President Bush signed it the same day.

The financial system bailout bill includes:

Purchase of up to $700 billion in troubled Mortgage Backed Securities

$250 available immediately

$100 billion at president's discretion

$350 billion subject to congressional review

Requirements for executive pay limits

Creation of several layers of oversight

An increase in Federal Deposit Insurance Corporation coverage of bank deposits from $100,000 to $250,000, as well as extensions of tax credits [see below] and a freeze on the expansion of the Alternative Minimum Tax added an extra $140 billion to the original $700 billion price tag.

They put the Senate version of the renewables tax package, which includes wind, solar and plug-in electric cars, in the bill (H.R. 7060). Efforts to take away tax benefits from oil and gas companies and use them as offsets for renewables have repeatedly failed.

[Text of H.R. 1424]

EPA Issues Final Yucca Mountain Radiation Standards

EPA has established radiation standards for the proposed spent nuclearfuel and high-level radioactive waste disposal facility at Yucca Mountain, Nevada. EPA is required to set standards consistent with the findings and recommendations of the National Academy of Sciences (NAS) and satisfy a July 2004 court decision to extend the standards' duration. The YuccaMountain standards are in line with approaches used in the international radioactive waste management community. The final standards will:

· Retain the dose limit of 15 millirem per year for the first 10,000 years after disposal;

· Establish a dose limit of 100 millirem annual exposure per year between 10,000 years and 1 million years;

· Require the Department of Energy (DOE) to consider the effects of climate change, earthquakes, volcanoes, and corrosion of the waste packages to safely contain the waste during the 1 million-year period; and

· Be consistent with the recommendations of the NAS by establishing a radiological protection standard for this facility at the time of peak dose up to 1 million years after disposal.

Human exposure to radiation varies from natural sources, such as radon and ultraviolet radiation from the sun, and other sources, such asmedical X-rays. The average annual radiation exposure from bothnaturally occurring and man made sources for a person living in the United States has been estimated to be 360 millirem per year. EPA, DOE and the Nuclear Regulatory Commission perform different functions related to Yucca Mountain. Learn more about this action and the roles of the three federal agencies.

Mergers & Acquisitions

J.P. Morgan Chase has purchased Washington Mutual (WaMu).

Wells Fargo has purchased Wachovia.

MidAmerican Energy [or Electricity de France] is purchasing Constellation. (10/1/08)

Electricite de France purchased British Energy.

All of this just in September.

S.C. Closes Low-Level Nuclear Waste Storage Site

A South Carolina state law closed the Barnwell, South Carolina low-level nuclear waste site. Now nuclear waste is piling up at locations for hospitals to research institutions around the country. The law that ended nearly all disposal of radioactive material at the site took effect on July 1, 2008 and now 36 states have no place to ship their low-level waste.

This sort of situation is why the Center created and cochairs the Nuclear Fuels Reprocessing Coalition (NFRC) to amend the Nuclear Waste Policy Act of 1982 to establish the U.S. Nuclear Waste Management Agency (NWMA) to manage all Federal and civilian spent nuclear fuel and high-level radioactive waste management programs currently under the control of the U.S. Department of Energy. NWMA would also establish and operate low-level radioactive waste receipt, supplementary segregation, treatment and burial or monitored/retrievable storage facilities on a fee basis.

The S.C. Department of Health and Environmental Control (DHEC) carries out the responsibilities of managing the storage of low-level nuclear waste as delegated by the U.S. Nuclear Regulatory Commission as an Agreement State. DHEC:

Regulates the Barnwell low-level radioactive waste disposal facility.
Regulates the transportation of radioactive waste into and within South Carolina
Licenses facilities that process and transport radioactive waste
Provides technical assistance to other areas of DHEC, industry, and government agencies, such as oversight of the Savannah River Site
Provides technical assistance in regulating air emissions of radionuclides at federal facilities
Conducts engineering reviews of waste processes and containment systems
Provides oversight of radiological decommissioning at state and federal facilities
Regulates facilities that manufacture products containing radioactive material

Rhode Island's Offshore Wind Farm: Deepwater Wind

Rhode Island Governor Donald L. Carcieri today announced that Deepwater Wind was chosen as the successful developer to construct a wind energy project off the shores of Rhode Island that will provide 1.3 million megawatt hours per year of renewable energy -- 15 percent of all electricity used in the state. It is expected that the project will cost in excess of $1 billion to construct -- all from private investment sources. Deepwater Wind was established to develop utility-scale offshore wind projects in the northeastern part of the United States. The company's major investors are FirstWind, a major developer of on-shore wind projects in the United States, D.E. Shaw & Co., a capital investment firm with deep experience in the energy sector, and Ospraie Management, a leading asset management firm with a focus on alternative energy markets.

Rhode Island has a goal of providing at least 15 percent of all electricity in the state by using renewable energy. Deepwater Wind has pledged a significant private investment in Rhode Island of approximately $1.5 billion with the construction of a regional manufacturing facility in Quonset, and creating up to 800 direct jobs, with annual wages of $60 million. The Quonset facility will manufacture support structures upon which the turbine and its tower are based and will serve the entire northeast.

The exact location of the wind project will be determined from the results of the Special Area Management Plan (SAMP) permitting process led by the Rhode Island Coastal Resources Management Council in partnership with URI's Graduate School of Oceanography.

The state and Deepwater Wind will now enter a 90-day period to negotiate a

formal development agreement. The final agreement will include the total commitment to Rhode Island made by Deepwater Wind, including the establishment of a manufacturing headquarters in the State and the reimbursement of the cost of the SAMP to the Renewable Energy Fund.

First Wind, based in Newton, Massachusetts, is a leading developer of onshore wind projects in the United States. First Wind's portfolio of wind energy projects includes 5,507 MW of capacity of which 92 MW were operating and 182 MW were under construction. Their projects now in operation include projects done in cooperation with government regulators and the community in environmentally sensitive areas of Hawaii, New York, and Maine.

D.E. Shaw, based in New York, New York, is a global investment and technology development firm with more than 1,300 employees; approximately $39 billion in aggregate investment capital; and offices in North America, Europe and Asia. Source: Office of the Governor, Amy Kempe, 401-222-8290

Light Emitting Diode: Successor To Compact Fluorescents?

Light Emitting Diodes (LEDs) use 85% electricity than other incandescent light bulbs and 50% less in than compact fluorescent light (CFL) bulbs. They cost more than CFLs because they are still relatively new with limited production. Just as with CFLs, the more they are produced and purchased, the more the price will come down.

Philips Light, part of Netherlands-based Royal Philips Electronics has invested in purchasing LED manufacturing companies. Cree Inc based in Durham, North Carolina also produces LEDs.

Another environmental advantage of LEDs is that they do not contain mercury like CFLs. LEDs consist of a small semiconductor that emits photons when electricity is applied. You probably recognize them as indicator lights on small appliances and stereo equipment. The LED lasts 30 times longer than incandescent light bulbs and five times longer than CFLs. Source: The Wall Street Journal, 9/15/08

Is 'Mark-to-Market' Similar To 'Check Kiting?'

In accounting and finance, mark to market is the act of assigning a value to a position held in a financial instrument based on the current market price for that instrument or similar instruments. For example, the final value of a futures contract that expires in 9 months will not be known until it expires. If it is marked to market, for accounting purposes it is assigned the value that it would fetch in the open market currently.

Example: If an investor owns 100 shares of a stock purchased for $40 per share, and that stock now trades at $60, the "mark-to-market" value of the shares is equal to (100 shares × $60), or $6,000, whereas the book value might only equal $4,000. [Source: Wikipedia]

This accounting method is also being held responsible for some of the financial crisis. Doesn't Mark-to-Market sound just like having 40 dollars in your checking account, but you will have twenty more dollars in there in two weeks but you go ahead and write a check for $60 to cover a bill right now? I think the American public understands what is going on. That extra $20 dollars did not come in and the check bounced.

The Wall Street Journal Describes the Past Two Weeks

The financial crisis paper of record describes the actions of the federal government in the last two weeks to free market private enterprise:

1) Nationalized Fannie Mae and Freddie Mac and flooded the mortgage market with taxpayer funds to keep it going [fired their chief executives (Herb Allison replacing Daniel Mudd at Fannie and David Moffet replacing Richard Syron at Freddie) and run by the Federal Housing Finance Agency].

2) Crafted a deal to seize the nation's largest insurer, American International Group Inc, fired its chief executive and moved to sell it off in pieces [The Federal Reserve gave AIG an $85 billion rescue loan in exchange for an 80% ownership stake in the company].

3) Extended government insurance beyond bank deposits to $3.4 trillion in money-market mutual funds for a year.

4) Banned, for 799 financial stocks, a practice at the heart of stock trading, the short-selling in which investors seek to profit from falling stock prices.

5) Allowed or encouraged the collapse or sale of two of the four remaining, free-standing investment banks: Lehman Brothers and Merrill Lynch.

6) Asked Congress by next week to agree to stick taxpayers with hundreds of billions of dollars of illiquid assets from financial institutions so those institutions can raise capital and resume lending.

The WSJ on its Sept 20-21, 2008 Opinion page gives us a cautionary warning:

"As for insuring money-fund deposits, this too carries substantial taxpayer risk. The Treasury money-fund protection is unlimited, while insurance on bank deposits stops at $100,000. As word of this disparity spreads, millions of Americans will figure out that they should drop their bank savings account and get into a higher-yielding (and now also protected) money fund. Even if Treasury levels this playing field, money funds will have the advantage because of their higher return. Fund managers may also be encouraged to take greater risk, knowing that they have
Uncle Sam's guarantee."

Contagion: Toxic Stocks, Toxic Securities, Toxic Paper

Blue chip securities are not what they used to be. Now many are being described as 'toxic.' The stock market environment is clearly contaminated. Emergency mitigation is being contemplated by Congress, which is considering making the Treasury Department the financial markets EPA. Wall Street is on Congress' Superfund List and is being scheduled for clean up. Let's hope there is less litigation that in EPA's real Superfund Program. Of course, this toxic paper from money market funds is needed to keep factories open so that people can keep their jobs. This money market paper was supposed to be available to maintain confidence in the financial markets, particularly banks borrowing from banks. Unfortunately when this commercial paper became toxic, the Fed, which is supposed to be the lender of last resort, has become the bailout lender of first resort. Now Treasury wants to buy up these bad loans and assets from troubled companies and could auction them off at some point in the future.

Now the Treasury Department wants Congress to approve a $700 billion blanket bailout power so that the Treasury Department can buy illiquid asets from American financial institutions in order to stabilize markets. This comprehensive approach quickly replaced the one-at-a time rescues of the previous weeks. Unfortunately, before this legislation could be approved quickly, Congress, particularly the House, is very reluctant to give the Treasury Department this much money and that much power. They will probably approve something that has them looking over Treasury's shoulder and maybe even needing Congressional approval for purchases over a certain amount. Plus, seeing that it is an election year, many members want a special funding mechanism that would help homeowners in trouble with their mortgage payments. Such assistance, combined with fixes, such as the Federal Housing Finance Agency running both Fannie Mae and Freddie Mac, will get our economy back on track. In a perfect world, maybe recession can even be avoided.

Black September, Black Wednesday, Black Bear

Wednesday, September 17, 2008 will be known as 'Black Wednesday' even though the stock market hit bottom on Thursday. Black Wednesday symbolized the temporary failure of top flight capitalism in America. As with collosal failures in many businesses and markets, greed was at the core of this meltdown. Speculators and short sellers are two of the primary culprits. Greedy home purchasers and unscrupulous mortgage bankers are right up there with them. We add speculators to the list because of their manipulation of the oil market at the worst possible time. Maybe they already picked the bones of the housing market and needed a commodity to manipulate. They speculated before Black Wednesday and now they are coming back for more. The price of oil rose by $25 in one day a week after Black Wednesday.

Short selling is the selling of a security (stock) that the seller does not own. The stock is borrowed. Short sellers assume that they will be able to buy the stock at a lower amount than the price at which they sold short. They make money by basically buying low and selling high, pocketing the difference between the lowered stock price and the higher price of the borrowed stock when it is returned. Selling short is the opposite of going long because short sellers make money if the stock goes down in price. Doesn't it sound like a racket? It also begs for insider trading. One might know that a stock price is going to drop by studying a company, but if one has inside information that the company is in trouble, it would be very easy to profit from short selling. Clearly something is wrong with the practice because the Securities and Exchange Commission (SEC) has banned short selling of 799 stocks for ten days, which will probably be extended for 30 days. Some think this is catering to CEOs who don't want investors betting on their stock falling. Maybe when the markets stablize, short selling can return, but there should be more oversight because of its inherent structure that can be abused.

More on Selling Short, Wiki: To profit from a stock price going down, short sellers can borrow a stock and sell it, expecting that it will be cheaper to repurchase in the future. When the seller decides that the time is right (or when the lender recalls the shares), the seller buys back the shares in order to return them to the lender. The process generally relies on the fact that securities are fungible, so that the shares returned do not need to be the same shares as were originally borrowed. The short seller borrows from their broker, who usually in turn has borrowed the shares from some other investor who is holding his shares long; the broker itself seldom actually purchases the shares to lend to the short seller. The lender of the shares does not lose the right to sell the shares.