Hanford Site Land Transfer May 2015 Official Use Only

Community Land Transfer Request In 2011, Community Reuse Organization (CRO) Tri-City Development Council (TRIDEC) requested transfer of 1,341 acres near Hanford Site southern boundary for economic development purposes. TRIDEC amended original request to add 300 acres previously requested for lease by Energy Northwest, for total request of 1,641 acres. TRIDEC coordinated with Energy Northwest (EN) to amend their original request. The original request for the 300 acres was for a proposed solar project by EN Starting in 2011 Consulted with GSA and HQ to determine if GSA could do the cultural, NEPA and conveyance Consulted with four Tribes to notify them of the request Characterized property for mission needs and operations (PNSO/LIGO) and constraints that could affect the conveyance Analyzed and determined a need for larger study area (4413 to 2460 acres) in order to identify 1641 acres for conveyance Placed contracts to began regulatory processes required for land transfer Official Use Only – Pre-decisional Internal Working Document Not Subject to FOIA

Community Land Transfer – Details TRIDEC requested lands under Title 10, part 770 of the Code of Federal Regulations (10 CFR part 770) - Transfer of Real Property at Defense Nuclear Facilities for Economic Development–at less than fair market value and with indemnification. Probable uses of warehousing and distribution; research and development; technology manufacturing; food processing; and “back office” (i.e. business services). Ultimately, TRIDEC would like to transfer ownership to a private entity or to one of its public agency partners (City of Richland, Port of Benton and Benton County). TRIDEC is the Community Reuse Organization (CRO) CROs were authorized by Congress in 1993 to represent communities adversely affected by DOE workforce restructuring at defense nuclear facilities, with the goal of transitioning such communities away from economic dependence on the federal government to reliance on private industry Official Use Only – Pre-decisional Internal Working Document Not Subject to FOIA

National Defense Authorization Act of 2015 Signed into law December 19, 2014. Directs DOE to transfer all rights, title, and interest of the United States of 1,341- acre and 300-acre parcels (1,641 acres) to TRIDEC by September 30, 2015. Allows DOE and TRIDEC to mutually agree to adjust boundaries of identified parcels. Provides conditional authority for DOE to convey property at less than fair market value. Satisfies notifications to Congress otherwise required for the land transfer. Requires written notification to Congress of any terms or conditions on the land transfer and rationale. HQ assistance needed: Questions regarding NDAA have not been addressed EA review should be (letter) approved at RL Interpretation of NDAA legislation questions: Appropriate authority to use for land transfer, e.g. Atomic Energy Act, 10 CFR 770, or simply the new law - NDAA? Does DOE have authority to provide indemnification outside of 10 CFR 770? Are NEPA, NEPA and the other regulatory processes still applicable? Can DOE use realty instruments other than transfer of title, e.g. easement, etc.? Assuming NEPA and other regulatory processes still apply, what is the effect on DOE if they are not completed by the date required by the legislation? Can 10 CFR 770 be applied after the land is transferred? Official Use Only – Pre-decisional Internal Working Document Not Subject to FOIA

1,641 Acres to be Transferred May be transferred at less than fair market value to TRIDEC, with “reinvestment” clause as required by legislation. The real property requires infrastructure improvements to make it economically viable to develop. Conveyance at less than fair market value may “further the public policy objectives of the laws governing the downsizing of defense nuclear facilities” (10 CFR 770) TRIDEC expressed interest in future transfer of lands excluded from current conveyance Infrastructure upgrades – In the northern portion of the property, roads, sewer, water, etc. have not been identified. Land that will not be transferred under the NDAA: Due to NDAA deadline, Horn Rapid Landfill, Homestead Site, and PTA Firing Range 10 are not part of the transfer due to regulatory processes (NHPA, CERCLA, RCRA), which cannot be completed by 9/30/15 Horn Rapids Landfill – presence of fly ash which is considered Technically Enhanced Normally Occurring Radioactive Material (TENORM) and which is regulated under DOE Order 458.1. Homestead/WIDS 600-393 – old battery site and European Homestead. Patrol Training Academy Land (Range 10) – Land is currently an operating facility, has not been evaluated under RCRA and was not included in CERCLA Operable Unit or ROD. Cost estimate to relocate the range and cleanup the land is being prepared. It must be demonstrated that land has no further remedial action, and it must be removed from Hanford Site RCRA Permit legal description with Ecology. TRIDEC has advised that their partners believe these land parcels should be transferred in the future as these are in the City’s Urban Growth Boundary and most of this land was in their original request. Official Use Only – Pre-decisional Internal Working Document Not Subject to FOIA

Required Regulatory Processes National Environmental Policy Act. National Historic Preservation Act, Section 106. Archaeological /Tribal resources Historical /Cultural resources DOE Order 458.1, Radiation Protection of the Public and the Environment. Comprehensive Environmental Response, Compensation and Liability Act, Section 120(h). Modifying Hanford Facility RCRA Permit legal description. 10 CFR 770, Transfer of Real Property at Defense Nuclear Facilities for Economic Development. Current Status of Regulatory Processes NEPA and NHPA LATA providing draft EA, CCR and MOA to RL for Subject Matter Expert Review RL sharing draft EA with HQ for review. Workshop scheduled March 16-20 with HQ/RL to revise Draft EA, CRR and MOA for 30-day calendar public review (April 2015). DOE Order 458.1, Radiation Protection of the Public and the Environment MSA completed all surveying work on Feb. 25; working on completing final report and Independent Verification (July 2015) Comprehensive Environmental Response, Compensation and Liability Act, Section 120(h) RL/MSA compiling existing cleanup documentation to EPA and Ecology for review (March 2015) Modifying Hanford Facility RCRA Permit legal description Ecology indicated that this was a straight forward process as a Class 1 Prime (90-day process) to change the legal description 10 CFR 770, Transfer of Real Property at Defense Nuclear Facilities for Economic Development Awaiting reply from Nisha Kumar (GC-56) to answer clarifying questions; confirmation on indemnification authority is critical; also working topics with HQ-MA. Official Use Only – Pre-decisional Internal Working Document Not Subject to FOIA

Deed Restriction Language Language is likely to address: Protection of archaeological and cultural resources. Future discoveries of archaeological and cultural resources. Future owner’s responsibility to consult with SHPO. Draft deed restriction language: DOE is in consultation with SHPO and ACHP to develop the deed restriction language. The Archeological and Resources Quitclaim Deed Restriction is standard language used in Oak Ridge deeds. The plan is to have the same language for RL’s land transfer. Official Use Only – Pre-decisional Internal Working Document Not Subject to FOIA

Draft Deed Restrictions MOA stipulations to mitigate adverse effect to the Richland Irrigation Canal. Possible mitigation actions resulting from NEPA and NHPA processes. Tribal preferential deed restriction. Protection of archeological and cultural resources. Existing utility easements for private entities (City of Richland, Cascade Natural Gas, etc.) within transferred land: Electrical, natural gas, irrigation, street lights, rail road. Easements for ongoing DOE operations within transferred land: Electrical utility, groundwater wells, roads, meteorological tower, air monitor, rail shipments. Prevention of impacts to nearby/adjacent operations and activities: Laser Interferometer Gravitational Wave Observatory (LIGO) and Pacific Northwest National Laboratory (PNNL). Land use restrictions: No groundwater use or discharges and depth limitation for excavations. NEPA Process: Process my identify other potential cultural properties which may require possible mitigation. Official Use Only – Pre-decisional Internal Working Document Not Subject to FOIA

CERCLA Covenant/Indemnification TRIDEC will receive a deed covenant under CERCLA 120(h), which ensures the U.S. Government is liable for any response or corrective action found necessary after the date of property transfer. CERCLA 120(h)(3)(A)(ii) states: (I) all remedial action necessary to protect human health and the environment with respect to any such substance remaining on the property has been taken before the date of such transfer, and (II) any additional remedial action found to be necessary after the date of such transfer shall be conducted by the United States; and (III) a clause granting the United States access to the property in any case in which remedial action or corrective action is found to be necessary after the date of such transfer. TRIDEC requests further indemnification under 10 CFR 770, which provides indemnification for transferee against any claim for injury to person or property that results from the release or threatened release of a hazardous substance, pollutant or contaminant as a result of DOE (or predecessor agency) activities at the defense nuclear facility. DOE-HQ policy decision required on whether or not TRIDEC can receive further indemnification under 10 CFR 770 after the land is transferred on September 30, 2015. Why provide indemnification? WIDS sites: 600-386 – Classified as “Accepted” (wet cell battery remnants partially buried and some potential related staining) – Interim closed out 600-22 – Classified as “No action” (‘dummy bomb’ target site) 600-366 – Classified as “Not accepted” (PNNL geophysical project - subsurface feature containing nine buried inert objects and two acoustic boreholes) 600-235 – Classified as “No action” (buried lead-sheathed telephone cable, remedial action not required unless cable is disturbed) (A classification status indicating an assessment has been made that a WIDS site is not a waste management unit and is not within the scope of Tri-Party Agreement Action Plan, Section 3.1. This classification requires lead regulatory agency approval.) Remediation of the 600-393 waste site (a small battery site) located adjacent to the land. Remediation of the 618-10 and 618-11 highly contaminated waste sites, located two and five miles north and upwind of the land, respectively. Future remediation of contaminated 300 Area facilities (324 and 325 buildings) located in close proximity to the land. Possible future remediation of the Horn Rapids Landfill (asbestos and other domestic waste material) located adjacent to the land. Groundwater contamination resulting from legacy waste remains a concern as an encumbrance on the lands. Official Use Only – Pre-decisional Internal Working Document Not Subject to FOIA

EPA and Washington State Dept. of Ecology Roles Ensure compliance with CERCLA 120(h) for transfer of federal property. Review and concur on DOE’s documentation that land has either been cleaned up or is uncontaminated. Review and concur on applicable deed covenants for compliance with CERCLA 120(h). Washington State Department of Ecology: Ensure compliance with RCRA while facilitating removal of lands from the Hanford Facility permit. Evaluate DOE’s application and approve permit modification to change legal description of the Hanford Facility. Official Use Only – Pre-decisional Internal Working Document Not Subject to FOIA

Risks and DOE-HQ Decisions Hanford Facility RCRA permit modification will likely extend beyond September 30, 2015. NEPA does not end in a finding of no significant impact (FONSI) and results in additional time to complete an EIS document. NHPA Section 106 MOA and development of mitigating stipulations could extend beyond the schedule. Tribal Nations may write a letter to the Secretary of Energy objecting to the transfer and/or pursue legal recourse. DOE-HQ Decisions: DOE-HQ policy decision on if NEPA and other regulatory processes are not completed by September 30, 2015, can the land be transferred per the NDAA language or can these processes be completed after transfer. DOE-HQ policy decision required on whether or not TRIDEC can receive further indemnification under 10 CFR 770 after land is transferred on September 30, 2015. Official Use Only – Pre-decisional Internal Working Document Not Subject to FOIA