1. DOE’s “New” National Strategy for Waste Management Christine Gelles Director, Commercial Disposition Options, EM-12 Office of Environmental Management Federal Facilities Task Force Meeting

2. Office of Environmental Management Safe for the Workers, Protective of the Environment, and Respectful of the Taxpayer “A decade ago, environmental cleanup was a ‘boutique industry.’ Today, it’s a cost of doing business.” - Former Under Secretary of Energy Robert Card

3. Office of Environmental Management Safe for the Workers, Protective of the Environment, and Respectful of the Taxpayer  EM’s “Sweet 16”  Programmatic Waste Management Environmental Impact Statement -- a decade old  1 st five years – planning, scoping  2 nd five years – analysis, negotiation, coordination  3 rd five years – decisions, wide-spread implementation, reform  Today – refining strategy, significant results Getting to this point…

4. Office of Environmental Management Safe for the Workers, Protective of the Environment, and Respectful of the Taxpayer Along the way…  Budgets grew…and peaked in FY 2005 (~$7.1B)  Strategies matured  Technical, acquisition, project planning  Priorities identified  Risk reduction, safety, acceleration  Significant results achieved  Team diversified  Increased use of commercial services

5. Office of Environmental Management Safe for the Workers, Protective of the Environment, and Respectful of the Taxpayer  Curtailed corporate life-cycle waste projections  Obstacles to disposition paths  Legal challenges to waste management policy  Technical issues  Contract protests  Ambitious goals  Unsuccessful realignment proposals  Programmatic vulnerabilities  Key stakeholder concerns Growing pains?

6. Office of Environmental Management Safe for the Workers, Protective of the Environment, and Respectful of the Taxpayer EM Project overview  EM project is well defined with controlled scope, cost and schedule — Complete cleanup by 2035, at a cost of ~$142B.  EM budget reflects significant progress to close major sites by 2006. — FY 2005 Comparable Appropriation -- $7.054B — FY 2006 Congressional Budget Request -- $6.505B  Scope includes remediation and processing of approximately: – 25 tons of plutonium – 108 tons of plutonium residues – 88 million gallons of radioactive liquid waste – 2,500 tons of spent nuclear fuel – 137,000 cubic meters of transuranic waste – 1.3 million cubic meters of low-level waste – 324 nuclear facilities, 3,300 industrial facilities, hundreds of radiological facilities

7. Office of Environmental Management Safe for the Workers, Protective of the Environment, and Respectful of the Taxpayer  Ensuring disposition paths are identified for all EM waste and materials  Providing and coordinating disposition resources  Optimizing operations of DOE’s waste management facilities  Improving EM’s transportation infrastructure and ensuring all shipments are completed safely and compliantly  Responding to dynamic circumstances  Addressing “gridlock” Transportation logistics and waste disposition are key to the success of the EM Project

8. Office of Environmental Management Safe for the Workers, Protective of the Environment, and Respectful of the Taxpayer EM’s transportation efforts are significant  In FY 2004, we completed approximately 20,000 shipments of radioactive waste and material — Most were LLW (~15,000) & MLLW (~1,500) — Include both Highway (~18,600) & Rail (~1,400)  In FY 2005, potential for 40,000 shipments

9. A complex network… Shipment lines do not portray actual transportation routes. This map is not inclusive of all past or planned shipments. DOE Generator Site (no on-site disposal facility)DOE Offsite Radioactive Waste Disposal Facility (NTS and Hanford are also generator sites and dispose of some waste onsite) DOE Offsite Radioactive Waste Treatment Facility Commercial Radioactive Waste Disposal Facility (Note: Envirocare also treats waste) DOE Onsite Radioactive Waste Disposal Facility Waste Isolation Pilot Plant Nevada Test Site Lawrence Livermore Hanford Yucca Mtn (proposed) Envirocare Rocky Flats Idaho National Lab Waste Control Specialists Savannah River Los Alamos West Valley Brookhaven Oak Ridge Paducah Portsmouth Mound Fernald To Nevada Test Site To Envirocare To Yucca Mtn To Hanford Transuranic Waste Disposal ShipmentLow-Level Waste/Mixed Low-Level Waste Disposal ShipmentSpent Nuclear Fuel/High-Level Waste Disposal Shipment Commercial Radioactive Waste Treatment Facility Permafix To Oak Ridge Treatment Low-Level Waste/Mixed Low-Level Waste Treatment Shipment Permafix Pacific EcoSolutions Argonne Transuranic Waste Processing/Storage ShipmentSpent Nuclear Fuel Storage, Treatment, or Repackaging Shipment Columbus To Waste Isolation Pilot Plant To Permafix From Naval Reactor sites located in several states Stanford Linear Accelerator Princeton Fermi

10. Major DOE Radioactive Waste Transfers (includes commercial facilities) Waste exports from DOE Generator Sites are shown in the incoming shipment boxes for the treatment and disposal facilities. This map is not inclusive of all past or planned shipments. Incoming Waste Shipment Outgoing Waste Shipment EXHIBIT B Lawrence Livermore National Lab (LLNL) Stanford Linear Accelerator Lab (SLAC) Waste Isolation Pilot Plant (WIPP) Nevada Test Site (NTS) Hanford MLLW/LLW from ANL-E, BNL, Fermi, Hanford, INL, Naval Reactor Sites, Paducah, Portsmouth, PPPL, RF, SLAC, and SR for disposal [Naval Reactor sites are located in several states and are not shown on map] TRU from Columbus for processing/storage SNF and HLW to Yucca Mtn for disposal SNF to INL for storage TRU to WIPP for disposal MLLW to PEcoS, Permafix, and OR for treatment SNF from Hanford, OR, and WV, and D/FRR for storage, treatment, or repackaging M/LLW from INL for disposal HLW, SNF, and D/FRR to Yucca Mtn for disposal TRU to WIPP for disposal MLLW/LLW to Envirocare, Hanford, and NTS for disposal MLLW to PEcoS, Permafix, and OR for treatment Yucca Mtn (proposed) HLW and SNF from Hanford, INL, SR, and WV, and D/FRR for disposal Envirocare MLLW/LLW from ANL-E, BNL, Columbus, Fermi, Fernald, INL, LANL, LLNL, Mound, Paducah, Portsmouth, OR, RF, SLAC, SR, and WV for treatment and/or disposal Rocky Flats (RF) Idaho National Lab (INL) MLLW to OR for treatment TRU to WIPP for disposal MLLW/LLW from ANL-E, Fernald, INL, LANL, LLNL, Mound, NTS, Paducah, Portsmouth, PPPL, OR, RF, SR, and WV for disposal TRU from ANL-E. BNL, Hanford, INL, LANL, LLNL, NTS, OR, RF, SR, and WV for disposal Waste Control Specialists MLLW from RF for treatment SNF from OR and D/FRR for storage, treatment, or repackaging TRU from Mound for processing/storage LLW from SR and Naval Reactors for disposal HLW and SNF to Yucca Mtn for disposal TRU to WIPP for disposal MLLW/LLW to Envirocare, Hanford, and NTS for disposal MLLW to OR for treatment Savannah River (SR) Los Alamos National Lab (LANL) West Valley (WV) Brookhaven National Lab (BNL) MLLW from Fernald, Hanford, INL, LLNL, NTS, OR, Paducah, Portsmouth, RF, and SR for treatment MLLW/LLW from OR for disposal SNF to INL and SR for storage, treatment, or repackaging TRU to WIPP for disposal MLLW/LLW to Envirocare and NTS, for disposal Oak Ridge (OR) Paducah Portsmouth Mound Fernald Argonne National Lab-East (ANL-E) Pacific EcoSolutions (PEcoS) MLLW from Hanford, INL, and RF for treatment MLLW from INL and RF for treatment Permafix MLLW from Hanford, INL, LLNL, RF, and SR for treatment DOE Generator Site (no on-site disposal facility)DOE Off-site Radioactive Waste Disposal Facility (NTS and Hanford are also generator sites and dispose of some waste on-site) DOE Off-site Waste Treatment Facility DOE On-site Radioactive Waste Disposal Facility Low-Level Waste (LLW) Mixed Low-Level Waste (MLLW) High-Level Waste (HLW) Spent Nuclear Fuel (SNF)Domestic/Foreign Research Reactor Fuel (D/FRR) Transuranic Waste (TRU) Commercial Radioactive Waste Treatment Facility Commercial Radioactive Waste Disposal Facility (Note: Envirocare also treats waste) Columbus Princeton Plasma Physics Lab (PPPL) Fermi National Accelerator Lab

11. Office of Environmental Management Safe for the Workers, Protective of the Environment, and Respectful of the Taxpayer DOE’s Waste Disposal Facility Configuration Hanford Pantex Plant Rocky Flats Brookhaven Knolls Princeton (PPPL) Savannah River Oak Ridge ITRI General Atomics ETEC Sandia SLAC LBNL LEHR LLNL Ames RMI ANL-E Fermi Portsmouth Paducah Mound BCL Bettis Kansas City ANL-W NTS INL CERCLA Disposal Facility Fernald Regional Disposal Facility DOE Generator Site (no on-site disposal facility) LLW Operations Disposal Facility MLLW Operations Disposal Facility MLLW Operations Disposal Facility (currently on-site waste only) Legend Waste Isolation Pilot Plant (WIPP) LANL Sandia WIPP West Valley

12. Office of Environmental Management Safe for the Workers, Protective of the Environment, and Respectful of the Taxpayer Key lessons to date…  Circumstances will change – flexibility is a must  Seeking alternate strategies for wastes planned for disposal at Hanford pending resolution of litigation  Alternate strategy for Fernald silo wastes, managed as 11e.(2) by-product material  Re-evaluation of planned closure of the TSCA Incinerator at Oak Ridge  Get back to basics  Core project management – clear scope and realistic schedule goals  Incentivize performance  Pursue economies of scale  Seek and preserve alternatives

13. Office of Environmental Management Safe for the Workers, Protective of the Environment, and Respectful of the Taxpayer The “new” strategy for waste management  Document the complex-wide program in formal schedules  Integrate sites’ baselines  Identify interfaces  Gap analysis  Cost analysis  Target problem waste streams (“orphans”)  Resume corporate life-cycle waste data system  Provide corporate treatment opportunities  Complete broad spectrum  Pursue new acquisition

14. Office of Environmental Management Safe for the Workers, Protective of the Environment, and Respectful of the Taxpayer Integration is our organizational mandate  Developing national strategies – business cases – for transportation and waste disposition  Integrating sites’ parallel efforts to accelerate cleanup  Enabling and improving on baseline plans Deputy Asst. Secretary for Logistics and Waste Disposition Enhancements Frank Marcinowski Transportation Dennis Ashworth Federal Disposition Options Cynthia Anderson Commercial Disposition Options Christine Gelles HLW, SNF, SNM, TRU GTCC, LLW, MLLW, 11e2 Most wastes/materials

15. Office of Environmental Management Safe for the Workers, Protective of the Environment, and Respectful of the Taxpayer Additional Detail

16. Office of Environmental Management Safe for the Workers, Protective of the Environment, and Respectful of the Taxpayer Current DOE/EM Waste Management Policy  LLW and MLLW:  If practical, disposal on the site at which it is generated  If on site disposal not available, at another DOE disposal facility  At commercial disposal facilities if compliant, cost effective, and in best interest of the Department  TRU waste:  If defense, disposed at Waste Isolation Pilot Plant, New Mexico  If non-defense, safe storage awaiting future disposition  HLW and SNF  Stabilization, if necessary, and safe storage until geologic disposal is available

17. Office of Environmental Management Safe for the Workers, Protective of the Environment, and Respectful of the Taxpayer  Multiple onsite disposal cells (mostly CERCLA) for site-specific remediation wastes  Two regional LLW disposal facilities – Hanford and Nevada Test Site (NTS)  Planned: Two regional MLLW disposal facilities  Hanford currently limited to onsite MLLW  NTS has submitted application for RCRA Part B Permit  National repository for defense TRU waste – WIPP (Carlsbad, NM)  TSCA Incinerator (Oak Ridge, TN)  However, EM also disposes of large volumes of LLW and MLLW at commercial facilities EM’s Waste Management Assets

18. Office of Environmental Management Safe for the Workers, Protective of the Environment, and Respectful of the Taxpayer Use of commercial capabilities allows optimization of resources and supports acceleration efforts  Treatment and packaging  Certification to disposal criteria  Interim storage  Disposal  Transfer for future release and disposal  Support for accelerated site closure In many cases, the resolution of waste issue requires cooperation among multiple vendors and sites

19. Office of Environmental Management Safe for the Workers, Protective of the Environment, and Respectful of the Taxpayer  EM senior management monitors transportation activity and events closely  EM Office of Transportation established and deployed to institutionalize transportation safety oTransportation Risk Reduction oLegislative & Regulatory Compliance oSite Support & Logistics oEmergency Preparedness & Outreach  In FY 2004, we completed approximately 23,000 shipments of radioactive waste and material — Shipment numbers significantly increased as site cleanup and closure continue — Utilized both highway and rail shipments Transportation safety is critical….

20. Office of Environmental Management Safe for the Workers, Protective of the Environment, and Respectful of the Taxpayer  Significantly increased volumes of waste disposed  Worked off vast majority of stored legacy waste  Resolved large quantities of “orphan wastes” at closure sites  Took steps to fully implement DOE’s complex-wide waste management policies and strategies Over the last several years, we’ve made tremendous progress in waste management

21. Office of Environmental Management Safe for the Workers, Protective of the Environment, and Respectful of the Taxpayer  In FY04, EM had 23 reported off-site incidents. — Most significant incident was the release of radioactive material onto road surfaces at Oak Ridge — Other areas of concern -- load securement and shipping paper violations  FY04 Incident Rate = 23/2.0 = 11.5 Incidents/10,000 Shipments  In FY05 year-to-date, EM has had 9 reported incidents representing a ~30% reduction from the same period in FY04. — Transportation Incident Review -- Management review of corrective actions and sharing of lessons learned among sites Transportation safety is critical

22. Office of Environmental Management Safe for the Workers, Protective of the Environment, and Respectful of the Taxpayer There will be significant developments in 2005  National strategy for LLW/MLLW disposition — Workshop in May 2005  Complex-wide treatment acquisition — Broad Spectrum contract expires mid-2005 — Seeking commercial alternatives to TSCAI  Initiation of NEPA for greater-than-class C waste disposition  Re-evaluation of commercial waste disposal needs and the Low- Level Radioactive Waste Policy Act — Maintaining delicate balance between Federal and private sectors

23. Office of Environmental Management Safe for the Workers, Protective of the Environment, and Respectful of the Taxpayer EM’s Top to Bottom Review  Secretary of Energy concerned by EM program’s lack of focus and the uncontrolled cost and schedule required to complete the cleanup mission  Top to Bottom Review (Feb 2002) concluded significant opportunities existed to accelerate risk reduction and better focus resources on cleanup  Top to Bottom Review became a mandate for significant changes within the program  Strategic plans to accelerate risk reduction and cleanup (Site “Accelerated Cleanup Plans”)  Project controls and validated baselines  Aggressive contract reform  Realignment of resources and refined mission focus  Reorganization