Paducah Uranium Plant Asset Utilization Task Force

1. Paducah Uranium Plant Asset Utilization Task Force ...preparing for the future

2. Paducah Uranium Plant Asset Utilization (PUPAU) Task Force

3. Paducah Uranium Plant Asset Utilization (PUPAU) Task Force Economic Impact of the Paducah Gaseous Diffusion Plant The USEC Regional Annual Economic Impact by county - $140.7 M* McCracken County $84,300,000 Ballard County $14,200,000 Graves County $12,600,000 Massac County $ 8,500,000 Marshall County $ 8,500,000 All Others $12,600,000 *Includes: payroll, charitable contributions, business memberships, procurement dollars, and tax payments.

4. Paducah Uranium Plant Asset Utilization (PUPAU) Task Force Mission: Provide community consensus to our local elected officials on strategic optimization of the national assets of the Paducah Gaseous Diffusion Plant and promote the development and use of those assets for the benefit of our country, state, and community. Membership: Co-chaired by McCracken County Judge Executive and Paducah Mayor, the task force consists of Jim Zumwalt, Paducah City Manager, Doug Harnice, Deputy Judge Executive,Jimmie Hodges, former Department of Energy (DOE) Site Manager; Howard Pulley, former Paducah Gaseous Diffusion Plant (PGDP) General Manager; Steve Penrod, current United States Enrichment Corporation (USEC) General Manager; Charlie Martin, Director Field Services USEC; Jennifer Beck-Walker, Executive Director, Purchase Area Development Office; Ray Dailey, Director of Environmental Affairs, New Page; Clyde Elrod, Private Sector; Rob Ervin, President of the USW Local 550; and Jeff Parsley, TVA Shawnee Steam Plant Manager Focus: The Task Force will concentrate on three areas of asset utilization for the facility: 1. Optimization of the existing operational, cleanup, and recreational activities at the site. 2. Explore and promote new missions, for the site, both short and long term that will fully utilize site assets. 3. Mobilize at the national, state, and community level support for the task force’s strategic and tactical recommendations.

5. Paducah Uranium PlantAsset Utilization (PUPAU) Task Force EXISTING OPERATIONAL ACTIVITIES • The Paducah Gaseous Diffusion Plant (PGDP) is a vital component of Kentucky’s economy and has supported the nation’s national security and energy independence goals for more than fifty years. Any plan to re-enrich the depleted uranium hexafluoride (DUF6) stored at the Paducah site must, as a pre-condition, require that the work be conducted at Paducah. Any tails re-enrichment plan should extend the employment of the 1,100 employees at the PGDP for several years beyond the projected closure date. • The Task Force supports Congressman Ed Whitfield’s bill, proposed last fall, that DOE would enter into a sole-source contract with the existing operator to re-enrich the tails at Paducah prior to sale and/or disposition.

6. Paducah Uranium PlantAsset Utilization (PUPAU) Task Force CLEAN UP • To assist in replacing the loss of these 1,100 jobs, it is imperative that this site be prepared for the safe use by future businesses and that efforts be continued to protect surrounding residents from the adverse effects of the facility’s legacy wastes. • The Task Force supports the continued allocation of adequate funding in FY 2009 for cleanup. For FY 2008 Paducah took a $20 million reduction in clean up funds in the President’s $96 million budget proposal. The Task Force supports the work the Congressional Delegation in fighting to restore the FY2008 Cleanup funds for the Paducah site, especially Senator McConnell’s efforts throughout the process.

7. Paducah Uranium PlantAsset Utilization (PUPAU) Task Force CLEAN UP • For more than fifty years, Paducah has supported operations and now cleanup of the site. The community has stored the by-products of that cleanup, such as the 9700 tons of volumetrically contaminated nickel on site for decades. Reclamation of the nickel will bring more jobs to the area in the face of layoffs at the Paducah plant. • The Task Force supports the efforts of the DOE solicitation for the deposition of the nickel ingots at Paducah and the local Citizen’s Advisory Board’s (CAB) position that allows DOE to provide land/facilities on the DOE PGDP reservation for processing the nickel to a useful final product form. • If this position is determined not viable by DOE, the Task Force requests an investment of some reciprocal value in return for the removal of this community resource and the jobs created by the reclamation of this resource at another location.

8. Paducah Uranium PlantAsset Utilization (PUPAU) Task Force Paducah Uranium PlantAsset Utilization (PUPAU) Task Force ...target for the future • EXPLORE NEW MISSIONS • Achieving energy independence from foreign oil is vital to both our country’s security and our national economy. • One step of many in achieving energy independence is increasing the portion of the United State’s electric power that comes from nuclear power plants above the current 20 percent. • The core GNEP concept remains valid; when a used fuel rod is removed from a nuclear power plant, we only get energy from less than 5% of the fuel in nuclear fuel and recycling can get the energy from the remaining 95% rather than throwing that energy away.

9. Paducah Uranium PlantAsset Utilization (PUPAU) Task Force Paducah Uranium PlantAsset Utilization (PUPAU) Task Force ...target for the future • EXPLORE NEW MISSIONS • This issue is particularly pertinent to Paducah, since the PGDP was on the short list of proposed sites for the reprocessing facility. Setting aside the potential benefits for Paducah, the United States must increase its capacity for nuclear power production, including reprocessing of spent nuclear fuel. That should be part of a broader energy strategy that also includes increasing domestic oil production, clean coal technologies, alternative energy sources and conservation to wean the country off foreign oil. • France and other countries that are already recycling uranium from nuclear fuel rods have demonstrated that recycling plants have positive economics and can be operated safely.

10. Paducah Uranium PlantAsset Utilization (PUPAU) Task Force Paducah Uranium PlantAsset Utilization (PUPAU) Task Force ...target for the future • EXPLORE NEW MISSIONS • The Federally owned land at the PGDP and the plant’s trained workforce make Paducah/McCracken County an attractive site for a nuclear power plant or a fuel rod recycling plant. • The impact of having a multi-billion dollar fuel rod recycling plant which could replace the PGDP when it is closed would be important to the community.

11. Q&A

12. Paducah Uranium PlantAsset Utilization (PUPAU) Task Force • REASONS TO LOCATE IN PADUCAH • Support from the Governor’s Office, and the Kentucky Congressional Delegation • Community driven leadership – PUPAU Task Force – Co-chaired by Paducah Mayor and McCracken County Judge Executive • Paducah’s Centralized Location – land, water, and air transportation modes significantly reduces transportation costs. • PGDP has 1100 trained nuclear workers with one of the best safety records in the DOE complex. • Commonwealth training services may include: Occupational skills training and retraining, job readiness training, and required customized training. .

13. Paducah Uranium PlantAsset Utilization (PUPAU) Task Force • REASONS TO LOCATE IN PADUCAH • Community Development Block Grant (CDBG) up to $2,000,000, Economic Development Administration Assistance of up to $1,000,000. EDA can be used for infrastructure improvements. CDBG can be used for infrastructure, building, or equipment. • Kentucky Industrial Development Act –tax credits for up to 100% of its capital investment for up to 10 years on land, buildings, site development, building fixtures, and equipment • TVA Economic Development Loan Fund –up to $2 million. The EDLF is for fixed asset purposes such as plant expansion, and equipment purchases. • Industrial Revenue Bonds – IRBs issued by state and local governments in Kentucky can be used to finance manufacturing projects and their warehousing areas, major transportation, and processing projects. .