The Congressional Budget Office and Government Accountability Office both have already projected a 50% or greater failure rate for loan guarantees for new nuclear reactors. And there is no denying that the failure rate for renewable energy projects is going to be above zero, possibly above 20%. While it's fine for taxpayers to take some risk for new energy technologies, it's not fine to bet hundreds of billions of our dollars on new energy projects or take risks of 50% or more, especially on such capital intensive projects as new nuclear reactors, which are now projected to cost some $10 billion or more each.

And, for the skeptics out there, let's face facts: the nuclear power industry is the one most in need of this money. Why? Because there is no private capital available to support construction of new nuclear reactors.  It's that simple--private investors simply won't take that risk. If Bank of America or Citigroup have been thinking for the past few years that nuclear reactors are too risky but subprime mortgages aren't, then I have to think a 50% projected failure rate might be too low. Admittedly, these are somewhat hard times for new renewable energy facilities as well, but until last October money was flowing freely to them, and as the recovery begins, private investment will begin flowing to them again. But private money won't flow to nuclear power under any circumstances without the taxpayers taking the risk.

The reality is that the nuclear industry has already asked for $122 Billion in taxpayer-backed loan guarantees (most of which would actually be taxpayer-funded as well, through the Federal Financing Bank). And that would cover only about 20 reactors. Getting to the GOP's dream of 100 new reactors by mid-century (outlined by Sen. Lamar Alexander, R-Tenn, in the GOP Saturday radio address a couple weeks ago), would cost at least five times that amount--and that's before the cost overruns start rolling in. For comparison, a Department of Energy study of 75 existing reactors found an average cost overrun of 207%. If that level holds true for a new generation of reactors, we'd be looking at trillions of taxpayer dollars at risk.

AND WHAT CAN YOU DO?
Yes, I believe in supporting renewable energy and energy efficiency with taxpayer dollars--but limited taxpayer dollars. The potential for unlimited taxpayer loan guarantees for any technology offers the potential for economy-killing failure, for misdirection of money, for rampant corruption.

Have our Congressmembers learned nothing from the debacle of the banking, mortgage and various other crises? Apparently not.