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Nuclear Waste is Fun: Solving the Problem of Decommissioning Vermont Yankee Chris Giuffre Jared Singer Jessie Fefer Trevor Michalak Diane Hannigan Jamie MacLeish ENVS 295: Environmental Modeling and Systems Thinking Lance Polya Date of Submission: May 2, 2011 Problem Statement Vermont Yankee, the nuclear power plant located in Vernon, will possibly be decommissioned in 2012 when its contract with the State of Vermont ends. There has been ongoing debate between various public and private stakeholders over whether decommissioning the power plant is the best option for Vernon and for greater Vermont. There has been extensive deliberation over what the future economic and social outcomes of Vernon and Vermont will be if Vermont Yankee is no longer in existence. The models we create will illustrate what economic and social problems arise when Vermont Yankee is no longer a functioning entity of Vernon. The municipality is split between the need to maintain jobs for 650 community members, to safeguard a healthy environment that is free of toxic contamination, and to generate municipal revenue to support schools and other public services. Policy decisions pertaining to the decommissioning process will have short- and long-term implications on Vernon's ability to recover from the loss, and will undoubtedly affect the local economy, the local citizens' standard of living, and the State of Vermont's commitment to a clean energy future. 1 Behavior Over Time Graphs 2 Causal Loop Diagram 3 Stock Flow Diagram without Policy 4 Documented Equations Without Policy 5 Documentation Continued… 6 Graphical Simulations 7 Title: Vermont Yankee Amusement Park & Public Job Program Description: Within our model, when Vermont Yankee is decommissioned in 2012, Windham County must deal with the economic impact of losing 950 jobs over nine years. These jobs include the positions at the Vermont Yankee nuclear power plant, as well as jobs within Windham County that are lost as a result of the succeeding economic downturn. The public sector will be responsible for providing immediate job creation in areas such as road construction and other infrastructure maintenance. To mitigate the negative effect on the stock of jobs and businesses over the long term, the Vermont Yankee nuclear power plant site will be transformed into an amusement park. With the creation of an amusement park, people once working at Vermont Yankee can find a new job at the park, and surrounding businesses once affected by the initial job loss, can be revived by a new tourism industry. 8 Stock Flow Diagram With Policy 9 Policy Equations: Graphical Simulation with Policy: 10 Sensitivity Simulation: Under our proposed policy of public sector job creation and the construction of a tourist attraction in the form of an amusement park on the site of the decommissioned Vermont Yankee power plant, we estimate employment opportunities created to initially be around 800. The sensitivity of this number was tested as follows, (with 100% job creation, as noted above, representing the whole of the estimated 800 jobs created.) As demonstrated by the graphs, it is clear that the number of jobs created by the amusement park will have a large effect on the number of jobs in relation to number of Vermont workers, due to the high percentage of employment of Vermont Yankee (and subsequently the amusement park) in Vernon. 11 Policy Implementation: Upon decommissioning Vermont Yankee, Windham County will allocate a portion of revenue earned from operation of the power plant to cover the expenses of a new public sector job force. Also, Entergy (the electric power company who owns the nuclear plant) must endow Vermont with approximately $40 million for site clean up. A portion of this money will be invested in purchasing amusement park infrastructure and outfitting Windham County for tourism. At the initial construction of the amusement park, 800 jobs were provided to the citizens of Windham County, and over the next six years, 100 jobs per year were provided to represent the subsequent economic growth that will occur from the new tourism industry. Policy Feasibility: This policy lacks some feasibility because of the environmental dangers of building an amusement park on a derelict nuclear power plant site. There has been evidence of radioactive contamination of groundwater sources within Windham County, as well as leaks of radioactive waste over recent years on the power plant site. This does pose some dangers to young children and pregnant women – a problem that may or not may not be able to be overlooked when building a successful amusement park for families. Also, we make a large assumption that the people who were once employed by Vermont Yankee would have the interest or expertise to work at an amusement park. Since many Vermont Yankee employees have been nuclear technicians for much of their life, they may be unsatisfied with a career in tourism. The same issue goes for the jobs created by the public sector. Many of the immediately available jobs would be blue-collar jobs with limited income. Nuclear power plant employees would probably be dissatisfied with the idea of earning far less per year than before. 12 Conclusion There are a few valuable lessons that we learned from this project. The first is that it is very difficult to model real world economic and energy systems. There are many variables to consider in pricing schemes and energy distribution – variables that operate on multiple time and spatial scales simultaneously. We changed our focus of the problem a few times throughout the semester and subsequently had to change our model. We originally began with the project topic of petroleum dependence in the United States. We then narrowed that down to Vermont’s dependence on VT Yankee’s nuclear energy. After some research on the topic area and analyzing system modeling dynamics we decided modeling the economic impact of VT Yankee’s decommission would be the best topic choice. The variables were tangible and the boundary was local enough to keep the model simple. When working with systems that contain more than two stocks, the modeling dynamics display an exponential increase in complexity. We found that it was also very difficult to match the STELLA model with the overarching causal loop diagrams. Making the mechanical dynamics of the STELLA model such as the stocks, flows, connectors and converters align with the relationship of the stock flow diagram had its challenges. It turned out that matching the model’s graphical simulation with what would logically happen in real life didn’t come on the first try. It became apparent that there were many ways to model one system; the variables you choose depend on what aspects of a system you want to communicate. Based on the nature of this project, we had to make some assumptions about how economic factors are interrelated, how they affect one another, and also estimate some associated numerical entries. Eventually we were able to change the system structure and identify the right equations to have a logical simulation of the economic problem at hand. It was very beneficial to apply the systems thinking and modeling skills to a topic that is prevalent in our local community. We were able to gain insight policy making in our country and how, given our current economic forces and constraints, some of the most practical policy initiatives don’t make the most subjective sense. No one in their right mind would build a theme park, where kids play and grow up, on a nuclear-reactive sight. However, given our modeled economic system, this policy makes the most sense. It is easy to see how our government can make such illogical policy solutions, given the systems they must work within. 13 Bibliography 1) Consensus Economic and Fiscal Impact Analysis Associated with the Future of the Vermont Yankee Power Plant. (2010, March 20). Economic and Policy Resources, pp. 1-12. Retrieved April 3, 2011, from http://www.leg.state.vt.us/ With the purpose of analyzing the situation with VY decommissioning, this article provided different scenarios with graphs that displayed the impact of each different policy initiative. This provided background information and examples regarding different policy options that we had when implementing our own policy. 2) Heaps, R. (2008, February 15). The Economic Impact of VY station on Windham County and Vermont. The Vermont Economy Newsletter, pp. 124. Retrieved April 6, 2011, from http://www.rpc.windham.vt.us/energy/petition/Heaps-Ex1.pdf This article provided specific information regarding the number of jobs supplied by VY. It also had specific population counts for Windham County and for Vermont as a whole. The article was a comparison of two different scenarios regarding VY decommissioning. One was VY decommissioning, and the other was the contract being renewed. 3) The VPR News Trail: Vermont Yankee (2011). Vermont Public Radio. http://www.vpr.net/episode/47694/ This series of news stories following the debates around the decommissioning of Vermont Yankee provided an overview of the economic and environmental issues at hand. News articles shed light on the opposing viewpoints of Windham County citizens, utility providers, environmentalists, and other stakeholders. These stories helped to guide which important and interesting variables to include in our model. 4)) US Census Bureau (2011). American Fact Finder. http://factfinder2.census.gov/ The US Census Bureau database was used to determine statistics related to the work force of Windham County, Vermont. Tables provided statistics of unemployment rates, work force population, and total county population among others. For simplicity, these numbers were rounded to the nearest thousand when entered into our model. 14 Appendix A Outside Evaluator: Gary Flomenhoft,Community Development & Applied Economics & Gund Institute of Ecological Economics [email protected] Gary is an energy alternatives guru. He teaches a handful of courses in the CDAE department on renewable energy and is a fellow at the Gund Institute of Ecological Economics. He often contributes to legislation relating to Vermont's energy portfolio and as extensive knowledge of the implications of economic and regulatory policies on the state's energy production and markets. 15 Appendix B: Complex Systems System resilience is an important characteristic of dynamic and complex systems. It is the system’s ability to come back from an interruption or devastation within the system. The interruption to the system in our model is considered to be the decommissioning of Vermont Yankee. Without VT Yankee, Windham County loses economic stability. As of now, there is no way for Windham County to escape economic devastation when VT Yankee is no longer in operation. This is because the economic system of the county is dependent on one, dominating feedback loop between job availability and economic vitality. The economic vitality of the county is dependent solely on the continued operation of the power plant. Without multiple balancing and reinforcing feedback loops in place to take over when one sector fails, the system becomes instable. This policy is designed to add resilience to Windham County when Vermont Yankee is decommissioned in 2012. The new policy is to create both permanent and temporary jobs within Windham County that will add to economic vitality and stability. Once this policy is implemented, if the government’s temporary job program fails, the economy should still thrive due to the amusement park, or vise versa. This policy clearly adds resilience to a currently non-resilient system. Another characteristic of complex systems is that of selforganization. This can be related to our model through looking at the temporary jobs that will be created through a government program. Through creating jobs such as road construction or building maintenance, the system will likely organize itself into creating more permanent jobs. This might happen after the new employees use their new knowledge to either create businesses of their own, or inspire permanent government funded positions. On a broader time horizon, implementing such a policy can help structure Windham County’s economy and society in a way that prepares them for future economic hardships. People will organize themselves into work groups to solve the problem of job loss, learn what solutions are successful and what are not, and thus build their own capacity. This self-organization will yield heightened resilience. It is also indicative of a societal system’s ability to change its environment to suit it needs. Since Vermont Yankee is no longer operating, Windham County must alter the physical landscape (i.e. build an amusement park) to replace the loss of jobs and also redefine the its goals as a community from producing nuclear power, to producing some other product or result. The problems that arise from the decommissioning of Vermont Yankee and the solutions that will follow are a result of this situation being both a sub-system of greater complex systems, and complex within itself. 16