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Yucca's demise to cost Nevada

Job losses will add to economic woes

The Obama administration and the state's congressional delegation have vowed to financially bleed the decades-old Yucca Mountain nuclear waste project, but doing so probably will cramp Southern Nevada's already hurting economy.

That's the observation of University of Nevada, Las Vegas economics professor Keith Schwer. He directs The Center for Business and Economic Research at the university and co-authored a 2003 report on the project's economic impact in the state.


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  • "Obviously if you close all of that down, you're not going to have those direct dollars coming into Nevada," Schwer said Thursday. "That translates into an adverse economic impact."

    Money trickling into Southern Nevada from the Department of Energy's spending on salaries, office space, subcontractors and equipment amounts to a fraction -- roughly 2 percent -- of what is generated from the tourism and gaming industries. Nevertheless, shutting down the project is not helping the sagging economy and housing market recover, Schwer said.

    And laying off workers, such as the 500 project employees who lost their jobs this year because of DOE funding cutbacks, acts as a negative multiplier in the economic equation by contributing to unemployment and increasing home vacancies.

    If scientists, engineers and support staff leave the area in search of new jobs, they take with them the money they would otherwise be spending in the Las Vegas Valley on everything from groceries to new cars.

    "That is the fundamental point," Schwer said.

    Nevada officials who have strategized against the Yucca project have said they are sympathetic to job losses.

    But the cause of killing the repository, which they see as deeply flawed and dangerous, is bigger than the workers, who they said should not be surprised the end finally might be near.

    Senate Majority Leader Harry Reid on Jan. 14 declared, "Yucca Mountain is not a jobs program."

    In a later interview, Bruce Breslow, the new executive director of the Nevada Agency for Nuclear Projects, said Yucca Mountain is "going to be a nuclear cemetery," and not a boon for high-paying jobs in science and university programs.

    The Yucca work force has been halved in the past three years, from about 2,750 to 1,400, according to DOE. About 1,120 work in Nevada, with most of the remainder in Washington.

    From 1983 through last year, DOE spent $6.4 billion to study Yucca Mountain as the national site for entombing 77,000 tons of spent nuclear fuel from commercial power reactors and highly radioactive defense waste. Most of that was spent in Southern Nevada to administer the project, drill a 5-mile exploratory tunnel in the mountain, pay salaries and conduct research.

    In all, $10.6 billion was spent nationwide on the nuclear waste program during those years. About $7 billion of that came from a fund by nuclear utility ratepayers and about $3.5 billion from separate Defense Department appropriations to pay for storage of the military's nuclear waste.

    In 2000 alone, the Yucca Mountain Project contributed $195.7 million to the state's economy and accounted for 3,650 jobs, according to the center's 2003 report.

    That means another $131 million in disposable income was stimulating the state's economy. The figure and its multiple effects on the economy increased until studies were completed and the program was scaled back last year while DOE submitted its license application to the Nuclear Regulatory Commission for constructing the repository.

    In the last year of George W. Bush's administration, DOE sought $494 million for the whole nuclear waste program but only $386 million was approved under a continuing resolution.

    After Barack Obama became president on Jan. 20, Congress later approved only $288.4 million for the project through the end of the fiscal year on Sept. 30, primarily so DOE can answer questions about the license application for nuclear regulators. Most of that money, about 80 percent, will be spent in Nevada. The NRC's licensing board can take up to four years to review the application before the commission decides on granting a license.

    For comparison, Schwer estimates the Yucca Mountain Project's economic potential amounts to less than $24 million per month, while in February, Clark County gaming revenue was $710 million, down 17 percent from a year ago.

    "We're talking about millions, not billions, each year."

    Contact reporter Keith Rogers at krogers @reviewjournal.com or 702-383-0308.

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    Report abuse

    "Nuclear Blackmail" versus "Emotional Blackmail" wrote on April 21, 2009 12:56 PM: @HeHateMe:

    It is difficult to debate this issue with someone in your position. I therefore say the following with all due respect and sympathy for whatever you are suffering.

    You are wrong to equate the 900-plus atomic tests conducted at the Nevada Test Site with what is being proposed at Yucca Mountain. You can use your own experience, and what you have apparently suffered, to argue against nuclear energy generally, but that argument (if reasonably conducted) comes with a price. The fact remains that "the genie has been let out of the bottle," and even if you are right to suggest that nuclear energy should be utterly abandoned, based on what happened to you and others, you must still address -- in good faith -- the difficult problem of what we do with the waste we have already produced, for better or for ill.

    Second, you are wrong to give the Yucca Mountain Project a political affiliation, as if all Democrats are or should be against it, and all Republicans are or should be for it. The fact is, I am a die-hard Democrat and there are many like me who support the Project; conversely, there are many Republicans, in this state and others, who oppose the Project. Bringing politics into the equation in the manner you have is frankly undignified and unworthy of the argument you are trying to advance.

    Finally, I reserve the right to disagree with you and to express my opinion as I see fit. I can sympathize with you and listen respectfully to your argument, even going so far as to consider it seriously. I refuse, however, much in the way the State has refused to succumb to "Nuclear Blackmail," to let this issue be decided on the basis of "Emotional Blackmail," at the expense of examining the facts.


    Report abuse

    How do you tell... wrote on April 21, 2009 12:41 PM: ...an Opponent of the Yucca Mountain Project from a Supporter of the Project?

    The Opponent, more often than not, will fit the classic definition of prejudice: that is, he or she will have “judged in advance” of learning the “facts of the case.” Your garden-variety PATRICK, for instance, probably didn’t study the facts and then conclude that the Project was a bad idea. Rather, PATRICK probably had a visceral, reflexive reaction to the mere suggestion of a nuclear waste repository (the default Greenie position), much in the manner that certain animals will react with fear to their own reflection in a pool, and since then he has assiduously repressed or ignored any evidence that runs counter to his “gut reaction.” He has, of course, vigorously and hungrily pursued any opinions or (alleged) facts that accord with his gut reaction, which incidentally dovetails nicely with his obvious idolatry of Harry Reid. But he remains willfully impervious to anything that calls his prejudice into question. I think Orwell coined a term for that pathology....

    The Supporter of the Project, by contrast, typically employs a different method. He or she may be neutral, a skeptic, or even an advocate on the “gut reaction” level, but will almost always SUPPORT their position with FACTS and EVIDENCE (another sense of the term “supporter”).

    A Supporter, for example, may learn that Dr. Amory Lovins has written a compelling economic analysis against the use of nuclear power. This Supporter, at the very least, will then have the courtesy to argue the evidence (does Lovins’ data include new, ostensibly cheaper nuclear plant designs and licensing processes? Is his assumption about public acceptance of severe efficiency restrictions warranted?). And in the end, the Supporter may be forced to concede valid points and readjust his/her opinion.


    Report abuse

    A Challenge to All... wrote on April 21, 2009 11:49 AM: Hey, all of you bloggers, here's a challenge.

    I defy you to find a single fact or piece of evidence provided by the loudest and yet least-informed habitual blogger in these Yucca Mountain threads...

    Yup, you guessed it... PATRICK!

    Compare, for example, Patrick's exchange with Lori Messinger, and you will find that Patrick suffers from a FATAL CONFUSION between assertions without proof ("Nuclear cannot compete on an economic basis with nearly every other source of energy") and actual evidence or facts.

    In fact, the biggest irony of all is that propagandist buffons such as our friend Patrick actually pass for "informed citizens" in this debate, which is also to say that Nevadans of his stripe don't do much for improving our State's dubious image with respect to political (or scientific) sophistication.

    So, because Patrick and his ilk refuse to acknowledge facts, while at the same time asserting possession of them (as if simply asserting something made it true), here's a little math challenge:

    If an example solar array, such as the nifty array at Nellis AFB, produces 14 megawatts of electricity at a facility construction cost of $100 million, and with a footprint (land use) of 140 acres, what is the ratio of production to cost to land use?

    Moreover, if the Palo Verde nuclear plant 50 miles outside Phoenix generates about 3,200 megawatts at a facility construction cost of $5.9 billion, and with a footprint (land use) of 4,000 acres, what is the ratio of production to cost to land use?

    More importantly, if these two methods represent (more or less) the state of their respective industries, which is cheaper? And what magnitude of improvement in one will be required to make it cheaper than the other?

    Good luck, Patrick!


    Report abuse

    Jay wrote on April 20, 2009 09:55 PM: I was sad to here what happened to Yucca even though I am an Obama supporter. I believe nuclear power would have been good for American like it is for France. To say it is not environmentally friendly is in the eyes of the beholder. All I know is we keep putting fossil fuels and polluting the air we breath and it would have made better since to put the waste in Yucca. I am sure the environmentalists love to hike the trails in this wonderful desert formation called Yucca that is 115 degrees during the summer but I think there are a lot more areas that I would rather be in. As for the waste I think man has learned from the mistakes of the past with new technologies but you guys in Vegas are right if its not gaming we don't want it and so I hope you sit on your laurels with your 11% unemployment rate and think what if we had brought another industry in and made a difference for the planet instead of just thinking well I don't want it in my backyard even though it would have been the right decision. To bad so sad!!!


    Report abuse

    HeHateMe wrote on April 20, 2009 07:53 PM: Lori, et.al.
    You weren't here when they were doing the nuclear thing up north. I was. I wake up every morning almost 50 years later because of the nuclear fallout. I am suffering from an incurable cancer because your free energy. I will die because of your safe energy. Keep the dump. Send it to Arizona with your disposed loser. Send it to Texas with your disposed leader. By taking money, it makes you only a pro. It means you are for sale. If it takes you $1 or $1000, it still makes you for sale. My family and I are NOT for sale.


    Report abuse

    Fair and Balanced Fred wrote on April 20, 2009 07:12 PM: Why do the Republicons hate Southern Nevada, hate Obama, and hate America?

    The Republicons are not your friend.


    Report abuse

    Fair and Balanced Fred wrote on April 20, 2009 05:44 PM: Yucca was wildly unpopular here in Southern Nevada. Reid represents his constituents -- what part of that don't the Republicons understand?

    Why do the Republicons hate Southern Nevada?


    Report abuse

    Keep your trash wrote on April 20, 2009 04:22 PM: If Nuclear Waste is so safe why not find a way to store it in the state in which it was created? You made it...you keep it.
    It was so easy to shove this trash on Nevada being such a small state with little political influence.
    Maybe once the garbage got here and was secure it would be OK. But one incident in a major city during its travels would create more havoc than the citizens should be forced to bear.
    There are technologies available to "step-down" the rods used in other facilities until the radioactive level is much lower, and thus safer. But the US is a "use once throw it away" socioty and has little intrest in such an approach.
    There are those that would rather plunder the planet now so that they will die with a clear conscience and not worry about the devastation left for future generations. To those people I say shame on you!


    Report abuse

    voltron wrote on April 20, 2009 04:16 PM: Department of Energy's spending on salaries, office space, subcontractors and equipment amounts to a fraction -- roughly 2 percent -- of what is generated from the tourism and gaming industries. Stick to what Nevada knows! Gaming! NOT - 77,000 tons of spent nuclear fuel! (77,000 TONS) This is ridiculous and if don’t think so then you are just plain dumb.


    Report abuse

    John LV wrote on April 20, 2009 02:58 PM: Patrick: You are just like so many of Yucca's opponents: You try to divert attention to red herrings rather than provide honest facts about what this project would have meant to our economy.

    This project would have been safer for Southern Nevada than the risk of a comet hitting the Stratosphere and destroying the whole city.

    The entire oppostion to Yucca was always full of misinformation and legal smoke and mirrors.

    We could really use the jobs here right now. Your timing (and Harry's, etc.) could not have been worse nor had a more negative impact on Las Vegas. Thanks for the making Las Vegas worse off for no reason. Your lies and misinformation have hurt us all.

    John


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