...preparing for the future

Commonwealth of Kentucky

The Jackson Purchase

Paducah Gaseous Diffusion Plant

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Economic Impact of the Paducah Gaseous Economic Impact of the Paducah Gaseous Diffusion PlantDiffusion Plant

The USEC Regional Annual Economic The USEC Regional Annual Economic Impact by county - $140.7 M*Impact by county - $140.7 M*

McCracken CountyMcCracken County $84,300,000$84,300,000

Ballard CountyBallard County $14,200,000$14,200,000

Graves CountyGraves County $12,600,000$12,600,000

Massac CountyMassac County $ 8,500,000$ 8,500,000

Marshall CountyMarshall County $ 8,500,000$ 8,500,000

All OthersAll Others $12,600,000$12,600,000

**Includes: payroll, charitable contributions, business Includes: payroll, charitable contributions, business memberships, procurement dollars, and tax memberships, procurement dollars, and tax payments.payments.

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.

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.

CLEAN UPCLEAN UPTo assist in replacing the loss of these 1,100 To assist in replacing the loss of these 1,100 jobs, it is imperative that this site be prepared jobs, it is imperative that this site be prepared for the safe use by future businesses and that for the safe use by future businesses and that efforts be continued to protect surrounding efforts be continued to protect surrounding residents from the adverse effects of the residents from the adverse effects of the facility’s legacy wastes.facility’s legacy wastes.

The Task Force supports the continued The Task Force supports the continued allocation of adequate funding in FY 2009 for allocation of adequate funding in FY 2009 for cleanup. For FY 2008 Paducah took a $20 cleanup. For FY 2008 Paducah took a $20 million reduction in clean up funds in the million reduction in clean up funds in the President’s $96 million budget proposal. The President’s $96 million budget proposal. The Task Force supports the work the Congressional Task Force supports the work the Congressional Delegation in fighting to restore the FY2008 Delegation in fighting to restore the FY2008 Cleanup funds for the Paducah site, especially Cleanup funds for the Paducah site, especially Senator McConnell’s efforts throughout the Senator McConnell’s efforts throughout the process.process.

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

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.

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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.

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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.

...target for the future

Q&A

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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.

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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.