<DOC>
[108th Congress House Hearings]
[From the U.S. Government Printing Office via GPO Access]
[DOCID: f:88432.wais]


 
A REVIEW OF DEPARTMENT OF ENERGY'S RADIOACTIVE HIGH-LEVEL WASTE CLEANUP 
                                PROGRAMS
=======================================================================

                                HEARING

                               before the

                            SUBCOMMITTEE ON
                      OVERSIGHT AND INVESTIGATIONS

                                 of the

                    COMMITTEE ON ENERGY AND COMMERCE
                        HOUSE OF REPRESENTATIVES

                      ONE HUNDRED EIGHTH CONGRESS

                             FIRST SESSION

                               __________

                             JULY 17, 2003

                               __________

                           Serial No. 108-42

                               __________

       Printed for the use of the Committee on Energy and Commerce







 Available via the World Wide Web: http://www.access.gpo.gov/congress/
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                    COMMITTEE ON ENERGY AND COMMERCE

               W.J. ``BILLY'' TAUZIN, Louisiana, Chairman

MICHAEL BILIRAKIS, Florida           JOHN D. DINGELL, Michigan
JOE BARTON, Texas                      Ranking Member
FRED UPTON, Michigan                 HENRY A. WAXMAN, California
CLIFF STEARNS, Florida               EDWARD J. MARKEY, Massachusetts
PAUL E. GILLMOR, Ohio                RALPH M. HALL, Texas
JAMES C. GREENWOOD, Pennsylvania     RICK BOUCHER, Virginia
CHRISTOPHER COX, California          EDOLPHUS TOWNS, New York
NATHAN DEAL, Georgia                 FRANK PALLONE, Jr., New Jersey
RICHARD BURR, North Carolina         SHERROD BROWN, Ohio
  Vice Chairman                      BART GORDON, Tennessee
ED WHITFIELD, Kentucky               PETER DEUTSCH, Florida
CHARLIE NORWOOD, Georgia             BOBBY L. RUSH, Illinois
BARBARA CUBIN, Wyoming               ANNA G. ESHOO, California
JOHN SHIMKUS, Illinois               BART STUPAK, Michigan
HEATHER WILSON, New Mexico           ELIOT L. ENGEL, New York
JOHN B. SHADEGG, Arizona             ALBERT R. WYNN, Maryland
CHARLES W. ``CHIP'' PICKERING,       GENE GREEN, Texas
Mississippi                          KAREN McCARTHY, Missouri
VITO FOSSELLA, New York              TED STRICKLAND, Ohio
ROY BLUNT, Missouri                  DIANA DeGETTE, Colorado
STEVE BUYER, Indiana                 LOIS CAPPS, California
GEORGE RADANOVICH, California        MICHAEL F. DOYLE, Pennsylvania
CHARLES F. BASS, New Hampshire       CHRISTOPHER JOHN, Louisiana
JOSEPH R. PITTS, Pennsylvania        TOM ALLEN, Maine
MARY BONO, California                JIM DAVIS, Florida
GREG WALDEN, Oregon                  JAN SCHAKOWSKY, Illinois
LEE TERRY, Nebraska                  HILDA L. SOLIS, California
ERNIE FLETCHER, Kentucky
MIKE FERGUSON, New Jersey
MIKE ROGERS, Michigan
DARRELL E. ISSA, California
C.L. ``BUTCH'' OTTER, Idaho

                   Dan R. Brouillette, Staff Director
                   James D. Barnette, General Counsel
      Reid P.F. Stuntz, Minority Staff Director and Chief Counsel

                                 ______

              Subcommittee on Oversight and Investigations

               JAMES C. GREENWOOD, Pennsylvania, Chairman

MICHAEL BILIRAKIS, Florida           PETER DEUTSCH, Florida
CLIFF STEARNS, Florida                 Ranking Member
RICHARD BURR, North Carolina         DIANA DeGETTE, Colorado
CHARLES F. BASS, New Hampshire       JIM DAVIS, Florida
GREG WALDEN, Oregon                  JAN SCHAKOWSKY, Illinois
  Vice Chairman                      HENRY A. WAXMAN, California
MIKE FERGUSON, New Jersey            BOBBY L. RUSH, Illinois
MIKE ROGERS, Michigan                JOHN D. DINGELL, Michigan,
W.J. ``BILLY'' TAUZIN, Louisiana       (Ex Officio)
  (Ex Officio)

                                  (ii)















                            C O N T E N T S

                               __________
                                                                   Page

Testimony of:
    Nazzaro, Robin M., Director for Natural Resources and 
      Environment, General Accounting Office.....................    11
    Roberson, Jessie H., Assistant Secretary for Environmental 
      Management, Department of Energy...........................     5
    Wilson, David E., Jr., Assistant Chief, Bureau of Land and 
      Waste Management, South Carolina State Department of Health 
      and Environmental Control..................................    42
    Wilson, Michael A., Program Director, Nuclear and Mixed Waste 
      Program, Washington State Department of Ecology............    39
Additional material submitted for the record:
    Natural Resources Defense Council, prepared statement of.....    52

                                 (iii)















A REVIEW OF DEPARTMENT OF ENERGY'S RADIOACTIVE HIGH-LEVEL WASTE CLEANUP 
                                PROGRAMS

                              ----------                              


                        THURSDAY, JULY 17, 2003

                  House of Representatives,
                  Committee on Energy and Commerce,
              Subcommittee on Oversight and Investigations,
                                                    Washington, DC.
    The subcommittee met, pursuant to notice, at 9:35 a.m., in 
room 223, Rayburn House Office Building, Hon. James C. 
Greenwood (chairman) presiding.
    Members present: Representatives Greenwood, Walden, 
Deutsch, DeGette, and Rush.
    Staff present: Dwight Cates, majority professional staff 
member; Peter Kielty, legislative clerk; Sue Sheridan, minority 
counsel; and Bruce Harris, minority professional staff member.
    Mr. Greenwood. The committee will come to order. Welcome 
everyone. Good morning. The Chair recognizes himself for the 
purpose of making an opening statement.
    Today the subcommittee will continue its ongoing oversight 
of the Department of Energy's environmental management program. 
Last year the subcommittee held a hearing on the EM program's 
accelerating cleanup initiative. Today we are following up with 
a hearing to review DOE's progress on accelerating the cleanup 
of high-level radioactive waste.
    The Department currently estimates that $230 billion, that 
is billion with a B, will be spent over the next 70 years to 
clean up the contamination that remains from nuclear weapons 
production during the cold war.
    By far, the disposal of high level radioactive wastes 
represent the most expensive cleanup responsibilities for the 
Department, accounting for $105 billion of the estimated $230 
billion in cleanup costs.
    Although the cleanup program will span 70 years, near-term 
decisions made by the EM program as to which technologies to 
deploy and what facilities to design and construct will 
effectively commit tens of billions in taxpayer funds for high-
level waste activities at the Hanford Site, the Savannah River 
Site, and the Idaho site.
    These decisions will impact the programs for decades to 
come, and it is important for this subcommittee to actively 
review some of these decisions at the front end before the 
billions are committed.
    Unfortunately, the subcommittee's hearing record over the 
last 9 years reflects a questionable track record with respect 
to DOE's management of large scale cleanup projects. In 1997 
this subcommittee exposed the problems at the Pit 9 cleanup 
project at the Idaho site, where hundreds of millions of 
dollars were spent to construct facilities that were later 
determined to be useless for cleaning up the wastes.
    Similarly, in 1998, the subcommittee held a hearing that 
was critical of DOE's far flung plan to privatize the cleanup 
of high level waste at the Hanford Site, using a complicated 
and unworkable financial arrangement with a contractor that 
couldn't do the job.
    DOE wisely abandoned that effort, but not before several 
years and hundreds of millions of dollars were wasted on the 
project. Although DOE's track record leads me to be skeptical, 
it is not my intention today to embarrass the Department for 
mistakes it has made in the past. I believe the EM program has 
worked hard over the past 2 years to rein in the pattern of 
mismanagement we have come to know during the past decade.
    Under the leadership of Secretary Abraham and Assistant 
Secretary Jesse Roberson, there is a new sense of a commitment 
to achieve real progress with site cleanup. DOE's high-level 
waste problem is complicated, challenging and expensive. It is 
critical that Congress is confident that the decisions made by 
the EM program will not set us on another path of cost 
overruns, failed technologies and billions in taxpayer funds 
wasted on facilities that are constructed and then later 
determined to be useless.
    I look forward to the testimony of Assistant Secretary 
Roberson, as well as that of Robin Nazzaro, of the General 
Accounting Office. GAO has written a report on DOE's high level 
waste program at my request. And I also look forward to the 
testimony from Representatives from the State of Washington 
where Hanford is located, and from the State of South Carolina 
where Savannah River is located, to get their views on DOE's 
high-level waste program.
    I thank all of these witnesses for appearing before us 
today, and with that I will recognize the ranking member for an 
opening statement.
    Mr. Deutsch. Thank you, Mr. Chairman. I would like to 
submit a statement for the record.
    Mr. Greenwood. Without objection that will be the order.
    [The prepared statement of Hon. Peter Deutsch follows:]
Prepared Statement of Hon. Peter Deutsch, a Representative in Congress 
                       from the State of Florida
    Thank you, Mr. Chairman, for holding this hearing and also for 
requesting the General Accounting Office to look at the Department of 
Energy's latest efforts to reduce the cost of treating and disposing of 
the nuclear waste that resulted from this nation's nuclear weapons 
program--a $100 billion-plus program for just the high-level waste 
alone.
    This Committee have been investigating attempts by the Department 
to reduce costs and streamline these clean-ups for more than a decade. 
Each time, the Department has promised--but failed to achieve--quicker, 
cheaper clean-ups. Three of them come to mind. The first is Pit 9, a 
fixed-price contract to clean up low-level waste in Idaho that was 
eventually abandoned. At the Subcommittee's hearings in 1997, the 
project was described as being ``littered with broken promises, massive 
schedule delays, fines, adversarial relationships, technical and 
management failures.'' It was a project in which the contractor was 
designing and building the project simultaneously without determining 
if the design would work. The unfinished treatment building still 
litters the site.
    The second is the In-Tank Precipitator that was supposed to clean 
up high-level waste at the Savannah River Plant. After $1 billion in 
expenditures over a decade, it was determined that it didn't work. GAO 
looked at that project for this Committee also and found that one of 
the key reasons for this tremendous waste of money was that the 
contractor began building the project before the design was complete--
and before anyone knew it was going to work. This contractor tried to 
drain more money from the Department, but its efforts finally failed.
    The third project involved a ``privatization'' effort at Hanford to 
clean up the same underground tanks that we are talking about today. 
BNFL was going to take this technically challenging effort on with the 
backing of private investors, even though no one knew exactly how to 
clean up the waste. Not surprisingly, the private investors wanted 
quite a premium to take on that risk. Preliminary demonstration 
projects were eliminated with the result that no one knew if the 
technology would work. Once again, the project failed, and BNFL walked 
away.
    The Department's latest approach may be the most creative because 
it relies on separating out 90 percent of the high-level waste, 
redefining it as low-activity waste and treating it on site. Aside from 
the potential legal problems, I have immediate concerns that the 
technology will not be fully tested until the separation facility is 
built. And, again, the estimated cost savings are highly questionable. 
GAO recommends that DOE address ``management weaknesses,'' but the 
Department, like most others, is cutting managers, not adding them.
    Mr. Chairman, this entire scenario reminds me of line from the 
Peter, Paul and Mary song, ``When will they ever learn? When will they 
ever learn?'' It appears that not a single lesson about how to do 
effective and efficient clean-ups has yet to be learned by the DOE.
    I am pleased to have our witnesses here today before us, so that 
this committee can explore how the Department of Energy intends to 
interpret a new US District Court ruling on reclassification, as well 
as its efforts to address responsible management of nuclear waste clean 
up.

    [Additional statements submitted for the record follow:]
 Prepared Statement of Hon. W.J. ``Billy'' Tauzin, Chairman, Committee 
                         on Energy and Commerce
    Mr. Chairman, thank you for holding this important hearing.
    Over the past few years, the Energy and Commerce Committee has 
focused its attention on the nuclear waste disposal problems at 
commercial nuclear power plants. In the 107th Congress, I was pleased 
to lead the House effort to pass the Yucca Mountain siting resolution. 
As you know, we passed that resolution overwhelmingly in both the House 
and the Senate.
    This hearing is important because we also need to focus our 
attention on nuclear waste disposal problems at the Department of 
Energy. The Department's weapons production activities helped us win 
the Cold War. Now, the radioactive high-level wastes stored at Hanford, 
Savannah River, and Idaho must be dealt with.
    The States and local communities where DOE's nuclear waste sites 
are located should expect Congress and the Department to do everything 
we can to reduce the risks of environmental contamination, and dispose 
of these wastes in a manner that fully protects human health and the 
environment.
    However, DOE's effort to clean-up high-level wastes is not just a 
matter for the benefit of States and local communities surrounding 
these sites. It is a matter of national significance when we commit 
tens of billions of dollars in Federal taxpayer funds to construct and 
operate facilities to clean up these wastes. I expect DOE and the 
States will utilize a balanced approach that maximizes risk reduction 
while fully considering the cost of different disposal options.
    This Subcommittee has demonstrated an ongoing commitment to 
ensuring that the billions of dollars in taxpayer funds spent by DOE's 
Office of Environmental Management are spent on actual cleanup. 
However, too often this Subcommittee has been in the position of 
investigating major cleanup projects after they have failed, and after 
hundreds of millions of dollars in taxpayer funds have been wasted.
    I hope the Subcommittee will closely follow DOE's efforts to clean 
up its high-level wastes to ensure they are disposed of safely, and to 
hold the Department accountable if it begins to head down the path of 
more cost increases and schedule delays. High-level waste disposal is 
expensive, and if DOE makes the same management mistakes it has made on 
other cleanup projects in the past, the cost in terms of time, money, 
and safety will be enormous.
    I thank the Chairman, and I yield back.
                                 ______
                                 
    Prepared Statement of Hon. John D. Dingell, a Representative in 
                  Congress from the State of Michigan
    Mr. Chairman, I commend you for holding this hearing today. 
Unfortunately, we are here once again on the all-too-familiar topic of 
the Department of Energy's (DOE) management of its high-level nuclear 
waste cleanup efforts.
    The question of how to properly dispose of the Nation's nuclear 
waste, both commercial- and defense-related, is a political thicket 
that has ensnared this country since the dawn of the nuclear age. On 
the commercial front, we have made progress, but it has been hard 
fought over several years. We finally have a repository site at Yucca 
Mountain and there seems to be a firm commitment this year from the 
House appropriators to allocate the necessary funding for its 
construction. While we must remain vigilant on this front to ensure 
that America's ratepayers get the service for which they have already 
paid, I am encouraged by our progress thus far.
    Disposal of our defense-related waste is another matter indeed. 
Storage of such waste is primarily concentrated at three facilities in 
Hanford, Washington; Savannah River, South Carolina; and Idaho Falls, 
Idaho. DOE's record at these facilities is less than impressive. Much 
of this waste is stored in tanks that have well exceeded their design 
life and have leaked unknown amounts of highly radioactive and toxic 
waste into the ground and potentially the groundwater.
    Today the Subcommittee is presented with yet another report from 
the General Accounting Office (GAO) outlining concerns with the 
planning and management of DOE's high-level nuclear waste program.
    We learn from the GAO that the Department's latest scheme to save 
money and speed cleanup of this waste is bedeviled on two crucial 
fronts: legal and technical.
    On the legal front, DOE's formula for magically transforming high-
level waste into low-level or ``incidental'' waste was determined to be 
a violation of the Nuclear Waste Policy Act and thus deemed invalid by 
the Federal District Court in Idaho. How will DOE respond? Will the 
decision be appealed? Will the Department request a legislative change 
in the Nuclear Waste Policy Act and what would the implications be if 
the Act were re-opened?
    On the technical front, the GAO finds that the Department is 
engaged in its familiar cart-before-the-horse approach on cleanup where 
DOE plans to employ technology without first doing the necessary 
testing to ensure that it will work. I note that we have been down this 
road before at the Savannah River site to the tune of $500 million in 
wasted taxpayer money and additional delays.
    With that background I cast a skeptical eye towards the 
Department's competence in dealing with this issue and hope that 
today's hearing will find some recommendations to improve this badly 
mismanaged program.

    Mr. Greenwood. And we welcome our first panel, Ms. Robin M. 
Nazzaro, director for natural resources and environment at the 
General Accounting Office and Ms. Jessie Roberson, assistant 
secretary for environmental management, Department of Energy.
    And, I am told that Ms. Roberson will go first.
    Ms. Roberson. Thank you, sir.
    Mr. Greenwood. I think you are both aware that this is an 
oversight hearing, and we take testimony under oath. Do either 
of you have any problems giving your testimony under oath? It 
is also my duty to inform you that pursuant to the rules of the 
Committee and the House, that you have the right to be 
presented by counsel. Do you wish to be represented by counsel? 
I didn't think so. Okay. If you would both stand and raise your 
right hands.
    [Witnesses sworn.]
    Mr. Greenwood. Okay. You are under oath. And, Ms. Roberson, 
you are recognized for your opening statement. Welcome. Thank 
you.

   TESTIMONY OF JESSIE H. ROBERSON, ASSISTANT SECRETARY FOR 
 ENVIRONMENTAL MANAGEMENT, DEPARTMENT OF ENERGY; AND ROBIN M. 
   NAZZARO, DIRECTOR FOR NATURAL RESOURCES AND ENVIRONMENT, 
                   GENERAL ACCOUNTING OFFICE

    Ms. Roberson. Good morning, Chairman Greenwood and members 
of the subcommittee. I appreciate the opportunity to be here 
today to discuss the Department's efforts to address high-level 
waste cleanup, and our reaction to the GAO's report on this 
subject. We are making progress with our high-level waste 
program. We have produced over 1,300 canisters of solidified 
glass waste at the Savannah River Site, over 25 percent of the 
total projected.
    We have poured 275 canisters of solidified glass waste at 
the West Valley Demonstration Project, and are in the 
construction phase of the Waste Treatment Plant at our Hanford 
Site. However, as DOE made clear in the EM Top to Bottom 
Review, the cleanup of high-level waste is the single largest 
component in the cleanup program.
    Since initiating implementation of the Top to Bottom 
Review, we have taken very specific and focused actions. And I 
believe we are moving the environmental management program in 
the right direction. We have taken strong and direct actions, 
including developing performance management plans which 
identified the strategies and initiatives to accelerate risk 
reduction in accordance with end States.
    We have developed resource-loaded baselines to provide the 
specificity needed to implement those strategies laid out in 
the performance management plans. We are producing life cycle 
cost estimates of implementing those plans to provide the 
certainty needed to support the budgets that we request to 
carry out our work, and most importantly, we are accelerating 
actions on the ground even today.
    Some specific accomplishments since issuing the Top to 
Bottom Review at Savannah River. We have reduced the high-level 
waste volume by over 1 million gallons, and have poured over 
250 canisters since the Top to Bottom was issued.
    We have replaced the melter unit at the Defense Waste 
Processing Facility. We did that in record time and under 
budget. We have developed and are using an improved glass frit, 
as well as increasing the amount of waste poured in each 
container, reducing the number of containers by about 20 
percent at Savannah River.
    At the Office of River Protection, we have reduced the 
overall tank farm volume by 3 million gallons. We have reduced 
the amount of pumpable liquid in single-shell tanks by over 1 
million gallons, and currently at that site, we have less than 
100,000 gallons in single-shell tanks and are on schedule to 
complete that removal from single-shell tanks by April 2004. We 
have removed all liquids from Tank C-106, and are in the 
process of removing all sludges from that tank a year ahead of 
schedule.
    At Idaho, we have reduced overall tank farm volume to under 
1 million gallons total, the lowest volume since the 1950's. We 
have emptied five pillar and panel tanks, cleaned and flushed 
two of those tanks, which are now ready for closure, and we 
have emptied three spent fuel pools at Idaho.
    On the topic of potential savings, while there are 
different approaches to reporting costs, as stated in the GAO 
report, the cost savings we project under the most conservative 
approach of constant year dollars are significant; an estimated 
$20 billion for the high-level waste program alone. These 
savings are derived using the same methodology used in the 
independent financial audit of the Department's environmental 
liabilities cost estimate.
    I do not take lightly my responsibility to participate in 
making important decisions or providing important input to the 
Departmental decisions regarding public health and safety, and 
committing Federal funds. For example, I do not agree with the 
GAO finding that we did not adequately reevaluate low-activity 
waste treatment and disposal options at Hanford. In March 2003, 
I commissioned a study to evaluate various technologies for 
optimal treatment and disposal of low-activity waste. The study 
considered both the baseline approach as well as over 10 
variations to that approach. It pointed us to some specific 
supplemental technologies to focus further development on, 
which we are pursuing.
    Last, the GAO recommended that the Department explore 
alternative strategies for dealing with an adverse legal 
decision regarding one of the Department's orders for 
implementing its Atomic Energy Act responsibilities. We do 
agree with the GAO's recommendation on that point.
    Accelerating the high-level waste program is the single 
most significant component of the environmental cleanup 
program. It makes the greatest impact on the safety and 
environmental profile of this program. It carries the greatest 
financial risk and is a preeminent step to fulfilling our soil 
and groundwater remediation at the sites where we have high-
level waste stored in tanks.
    Dating back to the early 1980's, DOE's approach in this 
program has been premised on the assumption that DOE has the 
authority to manage and dispose of the tank waste in a manner 
consistent with the risks they present. We would take the 
appropriate steps to reduce the radioactivity of these wastes, 
including residual waste, treating them so they can be safely 
disposed of without requiring the isolation of a deep geologic 
repository.
    This approach is consistent with a risk-based strategy in 
that only wastes requiring geologic isolation based upon risk 
to the public and environment, are disposed of in a high-level 
waste geologic repository.
    Much of the Department's tank waste resulted from spent 
nuclear fuel reprocessing activities that were performed to 
produce nuclear materials primarily for defense purposes. While 
the untreated wastes remained in our storage tanks, DOE 
conservatively managed them as high-level waste. Once the waste 
is retrieved from the tanks, DOE intended to separate the waste 
into a low-activity fraction for treatment and disposal as low-
level waste in some cases transuranic waste, and a high-
radioactivity fraction for treatment and disposal in a high-
level waste geologic repository.
    With this approach, DOE would employ treatment methods and 
dispose of low-activity tank waste as low-level waste. In fact, 
this approach has a long-standing technical and regulatory 
basis with the Nuclear Regulatory Commission from which our 
process was derived. Additionally there is international 
support for such an approach. The International Atomic Energy 
Agency has proposed a waste classification system in which the 
degree of geologic isolation of radioactive waste is based on 
risk rather than exclusively on the source of the waste.
    Similarly, a recent publication by the National Council on 
Radiation Protection and Measurement proposed a unified waste 
classification system for both radioactive and hazardous wastes 
based on the risks they pose. As the GAO report states, our 
authority to make these determinations was challenged by 
several organizations in the District Court of Idaho in early 
2002.
    The recent court decision in the Idaho District Court could 
significantly hinder our ability to implement the accelerated 
cleanup program. I support the GAO recommendation in this 
regard, that Congress clarify its intent concerning the 
Department's authority under the Atomic Energy Act to manage 
the waste from its reprocessing activities.
    The Department would seek from Congress the reaffirmation 
that the Nuclear Waste Policy Act does not mandate that the 
Department dispose of defense high-level waste in a geologic 
repository constructed under the Nuclear Waste Policy Act, and 
that the Department has the authority to determine which wastes 
from reprocessing do not require permanent disposal in a 
repository designed for spent nuclear file and high-level 
waste.
    Accelerating cleanup by almost 20 years and saving over $20 
billion in the high-level waste program will protect public 
health and is a wise investment for our children's future. 
Thank you, sir.
    [The prepared statement of Jessie H. Roberson follows:]
  Prepared Statement of Jessie H. Roberson , Assistant Secretary for 
          Environmental Management, U.S. Department of Energy
    Mr. Chairman and Members of the Subcommittee, I am pleased to be 
here today to discuss the Department of Energy's actions in response to 
the General Accounting Office Report, Challenges to Achieving Potential 
Savings in DOE's High-Level Waste Cleanup Program (GAO-03-593). I 
appreciate the opportunity to describe our efforts to address the 
largest-cost component of the Environmental Management program and the 
challenges and opportunities that lie before us.
    In 1996, the Department achieved two very important milestones in 
its high-level waste program. It began immobilizing high-level waste 
into a safer, stable waste form at its West Valley Demonstration 
Project in western New York and at the Defense Waste Processing 
Facility at the Savannah River Site (SRS) in South Carolina, for 
ultimate disposal in a geologic repository. I am pleased to report that 
we have produced over 1,300 canisters of a solidified glass-waste 
product at the SRS (over 25 percent of the projected total number of 
canisters to be produced there), and we completed high-level waste 
treatment at the West Valley Demonstration Project site in New York, 
having poured 275 canisters of a solidified glass-waste product. We are 
also making good progress on construction of an extensive Waste 
Treatment Plant at our Hanford site, which will produce almost twice 
the number of solidified high-level waste canisters as the Savannah 
River plant. The foundations of the major facilities of the Hanford 
plant have been emplaced, and the building structures are visible.
    Despite these successes, significant challenges remain in this 
program. In August 2001, Secretary Abraham directed the Department to 
complete a Top-to-Bottom Review of its cleanup program. The review, 
released in February 2002, concluded that significant change in how the 
Department approached risk reduction and cleanup for its sites was 
required. Two years ago, as costs for the cleanup program continued to 
increase, including those at our high-level waste sites, we estimated 
that it could take over $300 billion and nearly 70 more years to 
complete cleanup 20 years longer than the actual operations of our 
oldest facilities and 25 times longer than the actual construction of 
our most complex facilities. We concluded that a fundamental change to 
how we approached, managed, and performed the entire cleanup program 
was required. Last year EM started the effort to reform this massive 
program with an accelerated cleanup program.
    Since the completion of the Review, the estimated cost to complete 
the cleanup program has decreased by approximately $20 billion in the 
high-level waste program alone, with an attendant reduction in 
schedules of approximately 20 years.
    In early July 2003, a significant challenge to safe and effective 
remediation of the Department's spent nuclear fuel reprocessing wastes 
became reality when the U.S. District Court for the District of Idaho 
invalidated certain provisions of the Department's Order for safely 
managing radioactive waste. These provisions are consistent with the 
approach DOE and NRC, and their predecessor agencies, have followed for 
more than 20 years in meeting their Atomic Energy Act responsibilities 
for safely managing the radioactive wastes resulting from spent fuel 
reprocessing. The Department's provisions were consistent with managing 
wastes according to the health and environmental risks they pose. This 
ruling jeopardizes the Department's ability to provide safe and cost-
efficient, risk-based treatment and disposal of certain of our wastes. 
The GAO Report correctly identified the vulnerability caused by this 
litigation, which I will address in some detail later. I will begin by 
discussing the key GAO conclusions and recommendations from the GAO 
report.
               key gao report conclusions/recommendations
    In June 2002, the GAO notified the Secretary of their intent to 
conduct a review of the Department's high-level waste program, at the 
request of the Chairman of this Subcommittee. The GAO issued a draft 
report in early May 2003, and an exit briefing was conducted shortly 
thereafter. In early June 2003, the Department submitted its formal 
response to the draft report. I will address the Department's responses 
and corrective actions for each of the major conclusions and 
recommendations of the report.
    Predictions of Projected Savings in Site Performance Management 
Plans. As noted in the GAO report, the four sites that manage high-
level waste have each developed a Performance Management Plan, 
identifying key strategies, end states, program end dates, key 
milestones, and commitments to facilitate accelerated high-level waste 
cleanup and site closure. Each site developed its plan in collaboration 
with appropriate state and federal regulators. The GAO has expressed 
some concerns regarding projected savings estimates associated with the 
Performance Management Plans. I would like to address these concerns.
    First, the GAO noted that DOE baseline costs are not fully 
reliable. In this regard, some of the key reforms EM has implemented 
are work practices requiring development of baselines and adherence to 
a strict configuration control process for approval of any changes to 
these baselines. This approach has resulted in establishing baselines 
for a number of key, critical program elements, including costs and 
schedules. I have launched a Contract Management Advisory Council to 
review our contracts from a more corporate perspective. Our goal is to 
ensure that the lessons learned, both good and bad, from all our 
endeavors are institutionalized into our contracts and business 
practices, and that we suspend those contract philosophies that do not 
support accelerated risk reduction and cleanup of our sites. To 
complement this Council, I have initiated baseline validation reviews 
to assess the validity of baselines for all of our major projects. 
These validation reviews are ongoing, and validated baselines of 
cleanup activities at all of our closure sites, for example, are 
expected to be in place by October 2003.
    The GAO also criticized the Department's lack of a standard 
methodology for calculating potential savings. As the GAO notes in 
their report, DOE has recognized that it lacks standard methodologies 
for developing life-cycle cost baselines. One approach is to account 
for costs in constant-year dollars. As part of the EM environmental 
liability estimate used in the Department's Performance and 
Accountability Report and audited Financial Statement, constant-year 
dollars are used, and are based upon a roll-up of our Project Baseline 
Summaries accounts.
    The GAO also noted that our current savings estimates do not 
appropriately account for uncertainties. As part of the Department's 
Financial Audit process, we do calculate uncertainty. Additionally, I 
have initiated strict change control and monitoring of key elements to 
facilitate a high confidence level that the goals and direction of the 
accelerated cleanup initiative are being met. We are aggressively 
identifying all government-furnished services and items, and tracking 
them to ensure key programmatic risks are resolved.
    Full Testing of Waste Separations Technologies. The GAO criticized 
the lack of full testing for high-level waste separations technologies, 
including the absence of pre-construction integrated testing of 
separation steps at Hanford, in support of the design of the Waste 
Treatment Plant (WTP). The WTP contractor considered construction and 
operation of an integrated pilot plant using simulated waste. However, 
the information the pilot plant would provide would not be available in 
time to be incorporated into the plant design, unless plant design and 
construction were delayed several years. An alternate course was chosen 
with development and testing being conducted at one of our national 
laboratories, in which each unit operation is pilot-tested and the 
product and recycle streams produced are collected and process-tested 
in the receiving unit. This simulates the plant design in that the 
product from each unit operation will be collected in tanks and staged 
before being fed to the next unit operation. This testing will provide 
confidence that the process will function in an integrated manner. 
Further, when plant construction is completed, full-scale integrated 
tests will be conducted. Also, DOE and the commercial sector possess 
extensive experience with the planned unit operations that we believe 
offset some of the apparent need for full testing of waste separations 
technologies.
    Rigorous Analysis in Support of Key Decisions. The GAO noted a 
concern with the Department's lack of commitment to re-evaluate low-
activity waste treatment and disposal options at Hanford. We recently 
prepared a new internal study to evaluate various technologies for 
optimum treatment and disposal of low-activity waste. That study 
developed life-cycle analyses using the best available information and 
provided costs for each option. We analyzed and compared over a dozen 
combinations of low-activity waste treatment technologies. Many of the 
cases evaluated did not include the present vitrification system as a 
treatment component while others used it in combination with other 
approaches. The study concluded that the planned approach, which 
includes two low-activity waste vitrification melters, in combination 
with other supplemental technologies, would provide acceptable 
performance at the lowest life-cycle costs, if those supplemental 
technologies prove successful during ongoing testing with Hanford tank 
wastes.
    Corporate Projects and Improvements to EM Program. The GAO 
reiterated its concern that there were fundamental weaknesses in DOE's 
project management systems, and that no management team was focused on 
resolving these issues. I disagree. The Top-to-Bottom Review identified 
unfocused and inconsistent work planning processes as the principal 
contributors to EM's uncontrolled cost and schedule growth. To address 
this failing, I formed ten special corporate projects; each assigned a 
specific strategic objective. One of these is focused on high-level 
waste and is formulating corporate level initiatives to accelerate risk 
reduction in a much improved, more cost-effective manner. These project 
teams, using project management principles, are key to improving our 
work planning processes and instilling rigor into our internal 
management decisions. They are imbuing EM with a cadre of management 
and staff personnel with the discipline to perform the planning, 
analyses, and evaluations necessary to implement actions to accelerate 
risk reduction and completion of the EM program.
    Meaningful, lasting reform must be the result of leadership and 
commitment, but it must find its way into the very core of the 
organization to be sustained. Building a high-performing culture 
requires attracting and retaining talented people who deliver 
excellence in performance. Improving management efficiencies requires 
that organizations challenge, hold accountable, and reward top-
performing employees. This corporate initiative does just that. These 
ten teams will herald a new standard of performance, innovation, and 
greater results for the EM program. Our goal is not just to establish 
performance-based contracts but to solidify a performance-based program 
for all who choose to have a role. I am also restructuring the EM 
organization to further this effort.
    Fast-Track Construction of Hanford Waste Treatment Plant. The GAO 
expressed concern that the Department's design-build approach does not 
address risk. The WTP costs changed, in part, because of the 
Department's initiative to accelerate risk reduction and mission 
completion and to reduce overall costs. Rather than initially build a 
low-capacity plant followed by a second higher-capacity plant a decade 
later, which would not complete treatment until 2048, DOE has plans to 
build the first plant to be more capable. This would enable the first 
plant, along with supplemental low-activity waste treatment, to 
complete treatment of all the low-activity waste by 2028. To 
accommodate risk in the design-build approach the Department identified 
contingency for both costs and schedule. The Department estimated a 
budget for an 80 percent probability that the cost and schedule 
baseline will be attained (an approximate $500 million increase in 
total project cost). Other risk planning and mitigation actions had 
already reduced program and technical risks by 25 percent. The WTP 
contractor did review its close-coupled approach and lengthened design/
engineering schedules to allow more review cycle time and to mitigate 
the close coupling between design, procurement, and construction 
schedules. The result was that the Department incorporated a 6-month 
schedule contingency in a (WTP) schedule.
    Full Assessment of Potential Benefits of Initiatives to Reduce 
Cost. The GAO observed that there was no formal documentation of 
potential cost-reduction benefits of increasing waste loading in 
solidified glass waste canisters. The corporate High-Level Waste 
Project team, as well as both our Savannah River Site and the Office of 
River Protection at Hanford, have identified potential savings 
opportunities and have preliminarily quantified these savings. We 
continue to explore potential options at these sites to continue to 
overcome technical and operational barriers concerning increased 
canister waste loading, while not interfering with the process for 
submitting a License Application to the Nuclear Regulatory Commission 
for construction of the geologic repository at Yucca Mountain.
    Impact of Key Legal Challenge to Accelerated Cleanup Plans. A 
significant portion of the savings to be realized from accelerating the 
high-level waste program is premised on the assumption that DOE has the 
authority to manage and dispose of the tank wastes in a manner 
consistent with the risks they present. In particular, the Atomic 
Energy Commission, the Department of Energy, and the Nuclear Regulatory 
Commission have all been of the view that not all waste from 
reprocessing need be managed or disposed of as high level waste. It has 
further been both our view and that of the Nuclear Regulatory 
Commission that nothing in the Nuclear Waste Policy Act (NWPA), 
including the definition of ``high level waste,'' changed that state of 
affairs. Rather, we believe, and we feel the NRC believes, that if we 
take appropriate steps to reduce the radioactivity of the tank wastes, 
including residual wastes, and solidify and treat them so that they can 
safely be disposed of without requiring the degree of isolation that a 
deep geologic repository for commercial spent fuel would provide, that 
course is fully consistent with the NWPA. This approach is consistent 
with a risk-based strategy, so that those wastes requiring the greatest 
degree of isolation, based upon risk to the public and the environment, 
are disposed of in a high-level waste geologic repository. Much of the 
Department's tank wastes resulted from spent nuclear fuel reprocessing 
activities that were performed to produce nuclear materials, primarily 
for defense purposes. While the untreated wastes remained in our 
storage tanks, DOE conservatively managed them as high-level waste. 
Once the waste is retrieved from the tanks, we intended to follow a 
basic strategy developed during the early 1980's to separate the wastes 
into a low-radioactivity fraction for treatment and disposal as low-
level waste, and a high-radioactivity fraction for treatment and 
disposal in a high-level waste geologic repository. With this approach 
DOE could use safe and effective treatment methods and dispose of low 
activity tank waste as low-level waste. A number of our accelerated 
cleanup initiatives relied upon further refinements in the strategy for 
separating wastes into low-activity and high-activity fractions, 
particularly at Hanford and SRS.
    As the GAO report states, our authority to make these 
determinations was challenged by several organizations in the U.S. 
District Court of Idaho in early 2002. In early July, the Court granted 
the plaintiffs' motion for summary judgment and declared invalid 
certain provisions of DOE Order 435.1 that we used to make such 
determinations. Counsel from the Department are consulting with counsel 
from the Department of Justice regarding whether to appeal the 
decision. In the near-term, I am working with our Counsel and our sites 
to determine immediate impacts to our operations.
    The GAO recommended that the Department explore alternative 
strategies for dealing with an adverse legal decision. I support the 
GAO recommendation in this regard, that Congress clarify its intent 
concerning the Department's authority, under the Atomic Energy Act, to 
manage the waste from its reprocessing activities including 
implementation of an incidental waste policy.
    In particular, the Department believes it would be useful for 
Congress to reaffirm that the NWPA does not mandate that the Department 
dispose of defense high-level wastes in a geologic repository 
constructed under the Nuclear Waste Policy Act. Such an affirmation 
would not affect the Department's current plans for disposing of HLW at 
Yucca Mountain consistent with the NWPA's requirements for cost 
allocation and capacity limits. The Department also seeks explicit 
legislative reaffirmation that the Department has the authority to 
determine which wastes from reprocessing do not require permanent 
disposal in a repository designed for spent nuclear fuel and high-level 
waste.
                               conclusion
    As I have stated in previous testimony, we are realizing that for 
the first time, the goal of completing EM's mission is within our 
grasp. We have set into motion a reformed cleanup program--one designed 
and managed to achieve risk reduction not just risk management; to 
shift focus from process to product; and to instill the kind of urgency 
necessary to clean up and close down the nuclear legacy of the Cold War 
to protect human health and the environment.
    We are at a turning point for this program. We must not lessen our 
resolve. The recommendations provided by the GAO are important. We will 
be vigilant in ensuring we are taking the appropriate corrective 
actions.
    I ask for your support to continue this important work. The recent 
Court decision in the Idaho District Court will significantly hinder 
our ability to implement the accelerated program we have developed. 
Accelerating cleanup by almost 20 years and saving approximately $20 
billion in the high-level waste program will protect public health and 
safety and the environment and is a wise investment for our children's 
future.
    I look forward to working with Congress and others to achieve this 
goal. I will be happy to answer questions.

    Mr. Greenwood. Thank you very much for your testimony. It 
was very helpful.
    Ms. Nazzaro.

                  TESTIMONY OF ROBIN M. NAZZARO

    Ms. Nazzaro. Thank you, Mr. Chairman, and members of the 
subcommittee. I am pleased to be here today to discuss the 
Department of Energy's high-level waste cleanup program. DOE 
has about 94 million gallons of highly radioactive waste from 
the Nation's nuclear weapons program. This waste is currently 
in tanks at the Hanford and Savannah River Sites, and at the 
Idaho National Laboratory near Idaho Falls.
    In February of 2002, DOE began an initiative to reduce the 
program's nearly $105 billion estimated cost and 70-year 
timeframe to finish the disposal of this waste.
    Based on work included in our report being released by the 
subcommittee today, my testimony today focuses on the 
components of DOE's high-level waste and the process involved 
in preparing the waste for disposal, the status of DOE's 
initiative, the legal and technical challenges that DOE faces 
in implementing the initiative, and any further opportunities 
to reduce costs beyond those identified in DOE's current cost 
savings proposal or to improve program management.
    In summary, Mr. Chairman, DOE's high-level waste is a 
complex mixture of radioactive and hazardous components. A 
small portion of the radioactive components will remain 
dangerously radioactive for millions of years. However, the 
vast majority will lose much of their radioactivity more 
quickly. To prepare the waste for permanent disposal, DOE plans 
to separate much of the radioactive material from the other 
waste components.
    The initiative to accelerate the cleanup is still evolving. 
And while its savings estimates are changing accordingly, we 
have concerns about the reliability of the estimates. As of 
April 2003, DOE estimated it could shorten the waste cleanup 
schedule by 25 to 30 years and save up to $29 billion. To help 
achieve these schedule and cost reductions, DOE has identified 
alternative treatment and disposal strategies, such as 
disposing of the radioactive waste onsite, rather than moving 
it to an underground repository.
    However, DOE's savings estimates for these approaches may 
not be reliable or complete. For example, the savings analysis 
does not take into account all costs associated with 
alternative treatment strategies. Also, the estimate of savings 
does not compare costs on the basis of present value. At the 
DOE Savannah River Site, such an adjustment could lower the 
potential savings for accelerated waste processing by $2.5 
billion. Further, DOE faces significant legal and technical 
challenges that could limit the schedule and cost reductions. 
On the legal side, DOE's proposal depended heavily on the 
Agency's authority to apply a designation other than high-level 
waste to the low activity portion of the waste.
    As you know, the recent court ruling invalidated this 
process, putting the accelerated schedule and potential savings 
in jeopardy. On the technical side, DOE's proposals rely 
heavily on the successful application of waste separation 
methods that are still under development and will not be fully 
tested before being put into place.
    For example, at the Hanford Site, DOE intends to build the 
facility for separating the waste before fully testing the 
technologies on an integrated basis. Previously this approach 
at the Savannah River Site failed, resulting in significant 
cost increases and schedule delays. DOE is exploring additional 
cost savings beyond those identified in its current cost 
savings proposal. At the Hanford and Savannah River Sites, DOE 
is exploring options to increase the amount of waste that can 
be concentrated in the canisters destined for the permanent 
underground repository.
    DOE's data indicates that these proposals, if successful, 
could save billions of dollars. However, considerable 
evaluation of these proposals remains to be done and cost 
savings estimates have not yet been fully developed. DOE also 
has opportunities to improve the management of its cleanup 
program by addressing management weakness that we and others 
have identified in the past.
    Those weaknesses include, making key decisions without 
rigorous supporting analysis, incorporating technology into 
projects before being sufficiently tested, and pursuing a fast-
track approach whereby facility construction begins before 
completing sufficient design work. Although DOE has taken steps 
to improve program management, it does not appear that DOE's 
current management efforts will fully address these weaknesses.
    Our report makes several recommendations to DOE that we 
believe will help to manage or reduce the legal and technical 
risks to the program, avoid costly delays, and strengthen 
overall management. Before the court ruling, we recommended 
that DOE seek clarification from the Congress regarding the 
authority to determine that some waste can be treated and 
disposed of onsite. Since the court invalidated this process, 
one option DOE may want to consider is to ask the Congress to 
provide legislative authority for DOE to implement an 
incidental waste policy.
    Regarding our recommendations to reassess the approach for 
incorporating new waste separation technologies at the Hanford 
Site, and to ensure that high-level waste projects include 
rigorous analysis and follow best practices, DOE believes that 
its current practices are adequate. We disagree and continue to 
believe that the recommendations are warranted.
    Thank you, Mr. Chairman, and members of the subcommittee. 
That concludes my statement. I would be pleased to respond to 
any questions that you may have.
    [The prepared statement of Robin M. Nazzaro follows:]
Prepared Statement of Robin M. Nazzaro, Director, Natural Resources and 
              Environment, U.S. General Accounting Office
    Mr. Chairman and Members of the Subcommittee: We are pleased to be 
here today to discuss the Department of Energy's (DOE) high-level waste 
cleanup program. DOE has about 94 million gallons of highly radioactive 
nuclear waste from the nation's nuclear weapons program. This waste is 
currently in temporary storage at DOE sites in Washington, South 
Carolina, and Idaho. After investing more than 20 years and about $18 
billion, DOE acknowledged in February 2002 that the program to clean up 
its high-level waste was far behind schedule, far over budget, and in 
need of major change. In 2002, DOE began an initiative to reduce the 
program's nearly $105-billion estimated cost and 70-year time frame to 
finish permanent disposal of this waste. Our testimony, based on work 
included in the report being released by the Subcommittee 
today,<SUP>1</SUP> discusses (1) the components of DOE's high-level 
waste and the process involved in preparing the waste for disposal, (2) 
the status of DOE's accelerated cleanup initiative for high-level 
waste, (3) legal and technical challenges DOE faces in implementing the 
initiative, and (4) further opportunities to reduce costs beyond those 
identified in DOE's current cost-savings proposal or to improve program 
management.
---------------------------------------------------------------------------
    \1\ U.S. General Accounting Office, Nuclear Waste: Challenges to 
Achieving Potential Savings in DOE's High-Level Waste Cleanup Program, 
GAO-03-593 (Washington, D.C.: June 17, 2003).
---------------------------------------------------------------------------
    In summary, we found the following:

 DOE's high-level waste has many components, ranging from radioactive 
        isotopes and corrosive chemicals to the water in which much of 
        this material was initially discharged. The radioactive 
        components vary greatly; a small portion will remain 
        dangerously radioactive for millions of years, while the vast 
        majority will lose much of their radioactivity more quickly, so 
        that more than 90 percent of the current radioactivity will be 
        gone within 100 years. To prepare the waste for permanent 
        disposal, DOE plans to separate the waste into two waste 
        streams: one with high levels of radioactivity and the other 
        with lower concentrations of radioactivity. DOE expects that 
        this process will concentrate at least 90 percent of the 
        radioactivity into a volume that is significantly smaller than 
        the current total volume of waste. DOE plans to immobilize and 
        bury the highly radioactive portion in a permanent underground 
        repository. The remaining waste will be immobilized and 
        disposed of at the location where it is currently stored or at 
        some other location.
 DOE's initiative to accelerate the cleanup is evolving, and while its 
        savings estimates are changing accordingly, we have ongoing 
        concerns about the reliability of those estimates. As of April 
        2003, DOE estimated it could shorten the waste cleanup schedule 
        by 20-35 years and save up to $29 billion. To help achieve 
        these schedule and cost reductions, DOE has identified 
        alternative treatment and disposal strategies, such as 
        developing ways to permanently dispose of more of the 
        radioactive waste at current sites rather than moving it to the 
        planned underground repository. However, our assessment of 
        DOE's savings estimate indicates that it may not be reliable. 
        For example, the savings analysis does not take into account 
        all costs associated with alternative treatment strategies. 
        Also, the estimate of savings does not compare costs on the 
        basis of ``present value,'' where dollars to be saved in future 
        years are discounted to a common year to reflect the time value 
        of money. At DOE's Savannah River Site in South Carolina, such 
        an adjustment would lower the savings estimate for accelerated 
        waste processing by $2.6 billion--from $5.4 billion to $2.8 
        billion (in 2003 dollars).
 DOE faces significant legal and technical challenges to realize the 
        estimated savings. A key legal challenge involves DOE's 
        authority to apply a designation other than high-level waste to 
        some waste with relatively low concentrations of radioactivity, 
        so that this portion can be treated less expensively than 
        highly radioactive waste. A recent court ruling invalidated 
        this redesignation process, thus precluding DOE from proceeding 
        with this element of its accelerated initiative. If DOE cannot 
        meet its accelerated schedules, then potential savings are in 
        jeopardy. A key technical challenge is that DOE's approach 
        relies primarily on laboratory testing to confirm that 
        separating waste into high-level and low-activity portions will 
        be successful. At the Hanford Site in Washington State, DOE is 
        planning to construct full-scale facilities before fully 
        testing the technologies on an integrated basis--an approach 
        that has failed on another project in the past, resulting in 
        significant cost increases and schedule delays.
 DOE is exploring additional cost savings beyond those identified in 
        its current cost-saving proposals. The proposals that offer 
        significant potential are being developed by the Hanford and 
        Savannah River sites. These proposals call for increasing the 
        amount of waste that can be concentrated into the canisters 
        destined for the permanent underground repository. DOE's data 
        indicates that these proposals, if successful, could save 
        several billion dollars. Considerable evaluation of these 
        proposals remains to be done and cost-saving estimates have not 
        yet been fully developed, according to DOE officials. DOE also 
        has opportunities to improve its management of the cleanup 
        program by addressing management weaknesses that we and others 
        have identified in the past. Although DOE has--taken steps to 
        improve program management, we have continuing concerns about 
        management weaknesses in several areas. These include making 
        key decisions without rigorous supporting analysis, 
        incorporating technology into projects before it is 
        sufficiently tested, and pursuing a ``fast-track'' approach of 
        launching into facility construction before completing 
        sufficient design work. It does not appear that DOE's current 
        management efforts will fully address these weaknesses.
    Our report makes several recommendations to DOE that, if 
implemented, will help to manage or reduce legal and technical risks to 
the program, avoid costly delays, and strengthen overall program 
management. DOE agreed to consider our recommendation to seek 
clarification from the Congress regarding its authority to determine 
that some waste can be treated and disposed of as other than high-level 
waste. However, regarding our recommendations that the department 
conduct integrated pilot testing of its waste separation processes at 
Hanford, and take steps to improve the management of high-level waste 
projects, such as by conducting more rigorous analyses to support key 
project decisions, DOE believes that its current approach is adequate. 
We do not agree with DOE's views and continue to believe that all of 
our recommendations are warranted.
                               background
    DOE has a vast complex of sites across the nation dedicated to the 
nuclear weapons program. DOE largely ceased production of plutonium and 
enriched uranium by 1992, but the waste remains at the sites. Most of 
the tanks in which the waste is stored have already exceeded their 
design life. For example, many of Hanford's and Savannah River's tanks 
were built in the 1940s to 1960s and were designed to last 1040 years. 
Leaks from some of these tanks were first detected at Hanford in 1956 
and at Savannah River in 1959. Given the age and deteriorating 
condition of some of the tanks, there is concern that some of them will 
leak additional waste into the soil, where it may migrate to the water 
table and, in the case of the Hanford Site, to the Columbia River.
    Responsibility for the highlevel waste produced at DOE facilities 
is governed primarily by federal laws, including the Atomic Energy Act 
of 1954. These laws established responsibility for the regulatory 
control of radioactive materials including DOE's high-level waste and 
assigned the Nuclear Regulatory Commission (NRC) the function of 
licensing facilities that are expressly authorized for long-term 
storage of highlevel radioactive waste generated by DOE. In addition, 
the Nuclear Waste Policy Act of 1982 defined highlevel radioactive 
waste. Various other federal laws, including the Resource Conservation 
and Recovery Act of 1976, guide how DOE must carry out its cleanup 
program. The high-level waste cleanup program is under the leadership 
of the Assistant Secretary for Environmental Management. It involves 
consultation with a variety of stakeholders, including the 
Environmental Protection Agency, state environmental agencies where DOE 
sites are located, county and local governmental agencies, citizen 
groups, advisory groups, and Native American tribes.
doe's high-level waste is a complex mixture that requires a multi-step 
                    process to prepare for disposal
    The waste in the tanks at the Hanford and Savannah River sites and 
the Idaho National Laboratory near Idaho Falls is a complex mixture of 
radioactive and hazardous components. DOE's process for preparing it 
for disposal is designed to separate much of the radioactive material 
from other waste components.
Much of the Radioactivity Declines Relatively Quickly
    Nearly all the radioactivity in the waste originates from 
radionuclides with half-lives <SUP>2</SUP> of about 30 years or less. 
The relatively short half-lives of most of the radionuclides in the 
waste means that within 30 years, about 50 percent of the current 
radioactivity will have decayed away, and within 100 years this figure 
will rise to more than 90 percent. Figure 1 shows the pattern of decay, 
using 2002 to 2102 as the 100-year period. Extending the analysis 
beyond the 100-year period shown in the figure, in 300 years, 99.8 
percent of the radioactivity will have decayed, leaving 0.2 percent of 
the current radioactivity remaining.
---------------------------------------------------------------------------
    \2\ Each radioactive component, or radionuclide, in high-level 
waste loses its radioactivity at a rate that differs for each 
component. This rate of decay, which cannot be changed, is measured in 
``half-lives''--that is, the length of time required for half of the 
unstable atoms to decay and release their radiation.


[GRAPHIC NOT AVAILABLE IN TIFF FORMAT]

    Despite the relatively rapid decay of most of the current 
radioactivity, some radionuclides have half-lives in the hundreds of 
thousands of years and will remain dangerously radioactive for millions 
of years. Some of these long-lived radionuclides are potentially very 
mobile in the environment and therefore must remain permanently 
isolated. If these highly mobile radionuclides leak out or are released 
into the environment, they can contaminate the soil and water.
processing can concentrate the radioactivity into a much smaller volume 
                                of waste
    DOE plans to isolate the radioactive components and prepare the 
waste for disposal through a multi-step treatment process. DOE expects 
this process to concentrate at least 90 percent of the radioactivity 
into a much smaller volume that can be permanently isolated for at 
least 10,000 years in a geologic repository. The portion of the waste 
not sent to the geologic repository will have relatively small amounts 
of radioactivity and longlived radionuclides. Based on current disposal 
standards used by the NRC, if the radioactivity of this remaining waste 
is sufficiently low, it can be disposed of on site near the surface of 
the ground, using less complex and expensive techniques than those 
required for the highly radioactive portion. DOE plans to dispose of 
this waste on site in vaults or canisters, or at other designated 
disposal facilities.
    DOE has successfully applied this process in a demonstration 
project at the West Valley site in New York State. At West Valley, 
separation of the low-activity portion from the highlevel portion of 
the waste reduced by 90 percent the quantity of waste requiring 
permanent isolation and disposal at a geologic repository. The 
highlevel portion was stabilized in a glass material (vitrified) and 
remains stored at the site pending completion of the highlevel waste 
geologic repository and resolution of other issues associated with 
disposal costs.<SUP>3</SUP> The remaining low-activity portion was 
mixed with cement-forming materials, poured into drums where it 
solidified into grout (a cement-like material), and remains stored on 
site, awaiting shipment to an off-site disposal facility.
---------------------------------------------------------------------------
    \3\ At Savannah River, highlevel sludge from the tanks has also 
been stabilized in glass material and is currently stored on site 
pending completion of the geologic repository. As of August 30, 2002, 
Savannah River had produced 1,331 canisters of this stabilized waste.
---------------------------------------------------------------------------
   s initiative for accelerating cleanup is still evolving, with the 
                      extent of savings uncertain
    DOE's new initiative, implemented in 2002, attempts to address the 
schedule delays and increasing costs DOE has encountered in its efforts 
to treat and dispose of highlevel waste. This initiative is still 
evolving. As of April 2003, DOE had identified several strategies to 
help reduce the time needed to treat and dispose of the waste. Based on 
these strategies, DOE estimated that it could reduce the waste cleanup 
schedule by about 20 to 35 years at its high-level waste sites and save 
about $29 billion compared to the existing program 
baseline.<SUP>4</SUP> While some degree of savings is likely if the 
strategies are successfully implemented, the extent of the savings is 
still uncertain.
---------------------------------------------------------------------------
    \4\ Unless otherwise noted, all dollar estimates are as reported by 
DOE and are in current--dollars.
---------------------------------------------------------------------------
Initiative Centers on Ways to Speed Disposal and Save Money
    Many of DOE's proposals to speed cleanup and reduce environmental 
risk involve ways to do one or more of the following:

 Deal with some tank waste as low-level or transuranic <SUP>5</SUP> 
        waste, rather than as highlevel waste. Doing so would eliminate 
        the need to vitrify the waste for off-site disposal in the 
        geologic repository for highlevel waste.
---------------------------------------------------------------------------
    \5\ Low-level radioactive waste is defined as radioactive material 
that is not highlevel radioactive waste, spent nuclear fuel, 
transuranic waste, or certain by-product material (the tailings or 
wastes produced by the extraction or concentration or uranium or 
thorium from any ore processed primarily for its source material 
content). 42 U.S.C. 10101(16). Transuranic wastes come primarily from 
reprocessing of spent nuclear fuel and from fabrication of nuclear 
weapons. Transuranic waste is defined as waste with radionuclides with 
atomic numbers greater than 92 (that is, uranium) and having half-lives 
greater than 20 years in concentrations greater than 100 nanocuries per 
gram.
---------------------------------------------------------------------------
 Complete the waste treatment more quickly by using additional or 
        supplemental technologies. For example, DOE's Hanford Site is 
        considering using up to four supplemental technologies, in 
        addition to vitrification, to process its low-activity waste. 
        DOE believes these technologies are needed to help it meet a 
        schedule milestone date of 2028 agreed to with regulators to 
        complete waste processing. Without these technologies, DOE 
        believes waste treatment would not be completed before 2048.
 Segregate the waste more fully than initially planned and tailor 
        waste treatment to each of the waste types. By doing so, DOE 
        plans to apply less costly treatment methods to waste with 
        lower concentrations of radioactivity.
 Close waste storage tanks earlier than expected, thereby avoiding the 
        operating costs involved in maintaining the tanks and 
        monitoring the wastes.
    Table 1 summarizes the estimated cost savings for each DOE site if 
accelerated proposals for cleaning up high-level waste are successfully 
implemented.

         Table 1: DOE's Estimated Cost Savings from Proposals to Accelerate Cleanup of High-Level Waste
               Amounts are in billions of current dollars, fiscal year 2003 to the end of cleanup
----------------------------------------------------------------------------------------------------------------
                                                                      Current                        Estimated
                                                                     baseline       Accelerated    savings from
                              Site                                lifecycle cost  lifecycle cost    accelerated
                                                                     estimate        estimate       initiatives
----------------------------------------------------------------------------------------------------------------
Idaho National Laboratory.......................................          $10.07           $3.10           $6.97
Hanford.........................................................           56.19           41.67           14.52
Savannah River..................................................           18.82           11.49            7.33
Totals..........................................................          $85.08          $56.26          $28.82
----------------------------------------------------------------------------------------------------------------
Source: DOE.
Note: West Valley is not included in this table because high-level waste cleanup at the site was essentially
  completed in September 2002.

                  savings estimate may not be reliable
    Our review indicates that DOE's current estimate of $29 billion may 
not yet be reliable and that the actual amount to be saved if DOE 
successfully implements the alternative waste treatment and disposal 
strategies may be substantially different from what DOE is projecting. 
We have several concerns about the reliability and completeness of the 
estimate. These concerns include the accuracy of baseline cost 
estimates from which savings are calculated, whether all appropriate 
costs are included in the analysis, and whether the savings estimates 
properly reflect the timing of the savings or uncertainties.
Baseline Costs Are Not Fully Reliable
    DOE's current lifecycle cost baseline is used as the base cost from 
which potential savings associated with any improvements are measured. 
However, in recent years, we and others have raised concerns about the 
reliability of DOE's baseline cost estimates. In a 1999 report, we 
noted that DOE lacked a standard methodology for sites to use in 
developing their lifecycle cost baseline, raising a concern about the 
reliability of data used to develop these cost estimates.<SUP>6</SUP> 
DOE's Office of Inspector General also raised a concern in a 1999 
review of DOE project estimates, noting that several project cost 
estimates examined were not supported or complete. DOE acknowledged in 
its February 2002 review of the cleanup program that baseline cost 
estimates do not provide a reliable picture of project 
costs.<SUP>7</SUP>
---------------------------------------------------------------------------
    \6\ U.S. General Accounting Office, Nuclear Waste: DOE's 
Accelerated Cleanup Strategy Has Benefits but Faces Uncertainties, GAO/
RCED99129 (Washington, D.C.: Apr. 30, 1999).
    \7\ U.S. Department of Energy, A Review of the Environmental 
Management Program (Washington, D.C.: Feb. 4, 2002).
---------------------------------------------------------------------------
Estimates of Project Costs May Be Incomplete
    Some of DOE's savings may be based on incomplete estimates of the 
costs for the accelerated proposals. According to Office of Management 
and Budget (OMB) guidance on developing cost estimates, agencies should 
ensure that all appropriate costs are addressed in the estimate. 
However, DOE has not always done so. For example, the Idaho National 
Laboratory's estimated savings of up to $7 billion is based, in large 
part, on eliminating the need to build a vitrification facility to 
treat its waste. However, the waste may have to undergo an alternative 
treatment method before it can be accepted at a geological repository, 
and the Idaho National Laboratory is considering four different 
technologies for doing so. Nevertheless, DOE's current savings estimate 
reflects the potential cost of only one of those technologies. DOE has 
not yet developed the costs of using any of the other waste treatment 
approaches. DOE noted that the accelerated lifecycle estimate could 
likely change depending on which one of the technologies is selected 
and the associated costs of treating the waste are developed.
Savings Estimates Do Not Reflect Timing, Uncertainty, or Nonbudgetary 
        Impacts
    According to OMB guidance, agencies should ensure that the timing 
of when the savings will occur is accounted for, that uncertainties are 
recognized and quantified where possible, and that nonbudgetary 
impacts, such as a change in the level of risk to workers, are 
quantified, or at least described. We found problems in all three 
areas.

 Regarding the time value of money, applying OMB guidance would mean 
        that estimates of savings in DOE's accelerated plans should 
        reflect a comparison of its baseline cost estimate with the 
        alternative, expressed in a ``present value,'' where the 
        dollars are discounted to a common year to reflect the time 
        value of money. Instead, DOE's savings estimates generally 
        measure savings by comparing dollars in different years. For 
        example, the Savannah River Site estimates a savings of nearly 
        $5.4 billion by reducing by 8 years (from 2027 to 2019) the 
        time required to process its highlevel waste. Adjusting the 
        savings estimate to present value in 2003 results in a savings 
        of $2.8 billion in 2003 dollars.
 Regarding uncertainties, in contrast to OMB guidance, the DOE savings 
        estimates generally do not consider uncertainties. For example, 
        the savings projected in the Idaho National Laboratory's 
        accelerated plan reflect the proposal to no longer build the 
        vitrification facility and an associated reduction in 
        operations costs. However, the savings do not account for 
        uncertainties such as whether alternatives to vitrification 
        will succeed and at what cost. Rather than reflecting 
        uncertainties by providing a range of savings, DOE's savings 
        estimate is a single point estimate of $7 billion.
 Regarding nonbudgetary impacts, DOE's savings estimates generally do 
        not fully assess the value of potential nonbudgetary impacts, 
        such as a change in the level of risk to workers or potential 
        effects on the environment. OMB guidelines recommend 
        identification and, where possible, quantification of other 
        expected benefits and costs to society when evaluating 
        alternative plans. For example, the Idaho National Laboratory's 
        accelerated plan does not assess potential increases in 
        environmental risk, if any, from disposing of the waste without 
        stabilizing it into a vitrified form. By not assessing these 
        benefits and risks to workers and the environment, DOE leaves 
        unclear how important these risks and trade-offs are to 
        choosing an alternative treatment approach.
 key legal and technical challenges could limit potential savings from 
                  doe's accelerated cleanup initiative
    DOE faces significant legal and technical challenges in achieving 
the cost and schedule reductions proposed in its new initiative. On the 
legal side, DOE's proposals depend heavily on the agency's authority to 
apply a designation other than ``highlevel waste'' to the low-activity 
portion of the waste stream, so that this low-activity portion does not 
have to be disposed of more expensively as highlevel waste. The portion 
of DOE's order setting out criteria for making such determinations has 
been invalidated in a recent court ruling. On the technical side, DOE's 
proposals rest heavily on the successful application of waste 
separation methods that are still under development and will not be 
fully tested before being put in place. DOE's track record in this 
regard has not been strong; it has had to abandon past projects that 
were also based on promising--but not fully tested--technologies. 
Either or both of these challenges could limit the potential savings 
from DOE's accelerated cleanup initiative.
DOE's Accelerated Initiative Relies on a Process for Reclassifying 
        Waste That the Court Has Ruled Invalid
    DOE has traditionally managed all of the wastes in its tanks as 
highlevel waste because the waste resulted primarily from the 
reprocessing of spent nuclear fuel and contains significant amounts of 
radioactivity. However, by separating the waste into high-level and 
low-activity portions and managing the low-activity portion as 
something other than high-level waste, DOE could use less costly and 
less complicated treatment approaches. DOE has developed guidelines for 
deciding when waste in the tanks should not be considered highlevel 
waste. In 1999, under Order 435.1, DOE formalized its process for 
determining which waste is incidental to reprocessing (``incidental 
waste''), not high level waste, and therefore will not be sent to a 
geological repository for highlevel waste disposal. This process 
provides a basis for DOE to treat and dispose of some portion of its 
wastes less expensively as low-level or transuranic wastes.
    DOE's ability to define some waste as incidental to reprocessing, 
and to then follow a different set of treatment and disposal 
requirements for that waste, is central to its overall strategy for 
addressing its tank waste. For example, DOE planned to use its 
incidental waste process to manage about 90 percent of its 54 million 
gallons of tank waste at the Hanford Site as low-level waste, rather 
than process it through a highlevel waste vitrification facility. Using 
that approach, most of the waste would be eligible for treatment and 
disposal on site. Such an approach would save billions compared to 
treating all of the waste as highlevel waste and sending it for 
disposal in a highlevel waste geologic repository.
    A recent court ruling precludes DOE from reclassifying some of its 
waste as other than high-level waste. In March 2002, the Natural 
Resources Defense Council and others filed a lawsuit challenging DOE's 
authority to manage its wastes through its incidental waste 
process.<SUP>8</SUP> The plaintiffs alleged that DOE arbitrarily 
established the incidental waste determination process without proper 
regard for the law or properly establishing a justification for this 
process. A primary concern of the plaintiffs was that DOE would use its 
incidental waste process to permanently leave intensely radioactive 
waste sediments in the tanks with only minimal treatment. The lawsuit 
alleged that DOE's incidental waste process improperly allows DOE to 
reclassify high-level waste as incidental waste that does not need to 
be treated in the same way as high-level waste. According to the 
plaintiffs, the Nuclear Waste Policy Act defines all waste originating 
from a given source--that is, from reprocessing of spent nuclear fuel--
as highlevel waste and requires that such waste be managed as highlevel 
waste, yet DOE has chosen to differentiate its wastes according to the 
level of radioactivity and manage them accordingly. In a July 3, 2003 
ruling on the lawsuit, the court agreed with the plaintiffs, stating 
that the portion of DOE's Order 435.1 setting out its incidental waste 
determination process violates the Nuclear Waste Policy Act and thus is 
invalid.
---------------------------------------------------------------------------
    \8\ Natural Resources Defense Council, Inc. v. Abraham, No. 01-CV-
413 (D. Idaho, filed Mar. 5, 2002). The lawsuit was originally filed in 
January 2000 in the 9th Circuit Court of Appeals and was subsequently 
transferred to the federal district court in Idaho. The other parties 
to the lawsuit are the Snake River Alliance, the Confederated Tribes 
and Bands of the Yakama Nation, and the Shoshone Bannock Tribes. In 
addition, the states of Washington, Idaho, Oregon and South Carolina 
are participating as amicus curiae.
---------------------------------------------------------------------------
    The court's ruling could seriously hinder DOE's efforts to 
implement its accelerated treatment and disposal strategies. Under the 
ruling, DOE's incidental waste determinations cannot be implemented. 
Since the start of the lawsuit, DOE had not implemented any of its 
approved incidental waste determinations and had not yet decided 
whether to defer or proceed with its pending incidental waste 
determinations--such as those for closing tanks at the Savannah River 
Site and Idaho National Laboratory.
    If DOE appeals the court ruling, a lengthy legal process could 
follow. A lengthy legal process will also likely delay treatment plans 
for this waste and delay closing tanks on an accelerated schedule. For 
example, the Idaho National Laboratory planned to begin closing tanks 
in the spring of 2003, pending approval of an incidental waste 
determination that would allow DOE to close the tanks by managing tank 
waste residuals as low-level waste.<SUP>9</SUP> A DOE official at the 
Idaho National Laboratory told us that while a delay of several months 
would not immediately threaten schedule dates, a delay beyond 24 months 
would seriously affect the site's ability to meet its accelerated 2012 
date to close all of the tanks.
---------------------------------------------------------------------------
    \9\ Tank closure at the Idaho National Laboratory is also pending 
completion of its National Environmental Policy Act--process.
---------------------------------------------------------------------------
    If the court's ruling invalidating DOE's incidental waste 
determination process is upheld, DOE may need to find an alternative 
that would allow it to treat waste with lower concentrations of 
radioactivity less expensively. Searching for such an alternative could 
delay progress at all three of DOE's highlevel waste sites that rely on 
incidental waste determinations. If DOE cannot meet its accelerated 
schedules, then potential savings are in jeopardy. At this point, the 
department does not appear to have a strategy to avoid the potential 
effects of challenges to its incidental waste determination authority, 
either from the current court ruling or future challenges. At the time 
of our report, DOE officials told us that they believed the department 
would prevail in the legal challenge. DOE believed it would be 
premature to explore alternative strategies to overcome potentially 
significant delays to the program that could result from a protracted 
legal conflict or from an adverse decision. Such strategies could range 
from exploring alternative approaches for establishing an incidental 
waste regulation to asking that the Congress provide legislative 
authority for DOE to implement an incidental waste policy.
Accelerated Initiative Also Relies on Waste Separation Approaches That 
        Will Not Be Fully Tested
    Like the ability to determine that some waste is incidental to 
reprocessing, the ability to separate the waste components is important 
to meet waste cleanup schedule and cost goals. If the waste is not 
separated, all of it--about 94 million gallons--may have to be treated 
as highlevel waste and disposed of in the geological repository. Doing 
so would require a much larger repository than currently planned, and 
drive up disposal costs by billions of dollars. Successful separation 
will substantially reduce the volume of waste needing disposal at the 
planned repository, as well as the time and cost required to prepare it 
for disposal, and allow less expensive methods to be used in treating 
and disposing of the remaining low-activity waste. The waste separation 
process is complicated, difficult, and unique in scope at each site. 
The waste differs among sites not only in volume but also in the way it 
has been generated, managed, and stored over the years.
    The challenge to successfully separate the waste is significant at 
the Hanford Site, where DOE intends to build a facility for separating 
the waste before fully testing the separation processes that will be 
used. The planned laboratory testing includes a combination of pilot-
scale testing of major individual processes and use of operational data 
for certain of those processes for which DOE officials said they had 
extensive experience. However, integrated testing will not be performed 
until full-scale facilities are constructed. DOE plans to fully test 
the processes for the first time during the operational tests of the 
newly constructed facilities.
    This approach does not fully reflect DOE guidance, which calls for 
ensuring that new or complex technology is mature before integrating it 
into a project. Specifically, DOE's Project Management Order 413.3 
requires DOE to assess the risks associated with technology at various 
phases of a project's development. For projects with significant 
technical uncertainties that could affect cost and schedule, corrective 
action plans to address these uncertainties are required before the 
projects can proceed. In addition, DOE's supplementary project 
management guidance suggests that technologies be developed to a 
reasonable level of maturity before a project progresses to full 
implementation to reduce risks and avoid cost increases and schedule 
delays. The guidance suggests that DOE avoid the risk of designing 
facilities concurrently with technology development.
    The laboratories working to develop Hanford's waste separation 
process have identified several technical uncertainties, which they are 
working to address. These uncertainties or critical technology risks 
include problems with separating waste solids through an elaborate 
filtration system, problems associated with mixing the waste during 
separation processes, and various problems associated with the low-
activity waste evaporator.
    Given these and other uncertainties, Hanford's construction 
contractor and outside experts have seen Hanford's approach as having 
high technical risk and have proposed integrated testing during project 
development. However, DOE and the construction contractor eventually 
decided not to construct an integrated pilot facility and instead to 
accept a higherrisk approach. DOE officials said they wanted to avoid 
increasing project costs and schedule delays, which they believe will 
result from building a testing facility. Instead, Hanford officials 
said that they will continue to conduct pilot-scale tests of major 
separation processes. DOE officials said they believe this testing will 
provide assurance that the separation processes will function in an 
integrated manner. After the full-scale treatment facilities are 
constructed, DOE plans to fully test and demonstrate the separation 
process during facility startup operations.
    The consequences of not adhering to sound technology development 
guidelines can be severe. At the Savannah River Site, for example, DOE 
invested nearly $500 million over nearly 15 years to develop a waste 
separation process, called in-tank precipitation, to treat Savannah 
River's highlevel waste. While laboratory tests of this process were 
viewed as successful, DOE did not adequately test the components until 
it started full-scale operations. DOE followed this approach, in part, 
because the technology was commercially available and considered 
``mature.'' However, when DOE started full-scale operations, major 
problems occurred. Benzene, a dangerously flammable byproduct, was 
produced in large quantities. Operations were stopped after DOE spent 
about $500 million because experts could not explain how or why benzene 
was being produced and could not determine how to economically 
reconfigure the facility to minimize it. Consequences of this 
technology failure included significant cost increases, schedule 
delays, a full-scale waste separation process that did not work, and a 
less-than-optimum waste treatment operation. Savannah River is now 
developing and implementing a new separation technology at an 
additional cost of about $1.8 billion and a delay of about 7 
years.<SUP>10</SUP>
---------------------------------------------------------------------------
    \10\ U.S. General Accounting Office, Nuclear Waste: Process to 
Remove Radioactive Waste From Savannah River Tanks Fails to Work, GAO/
RCED-99-69 (Washington, D.C.: Apr. 30, 1999).
---------------------------------------------------------------------------
    Subsequent assessments of the problems that developed at Savannah 
River found that DOE (1) relied on laboratory-scale tests to 
demonstrate separation processes, (2) believed that technical problems 
could be resolved later during facility construction and startup, and 
(3) decided to scale up the technology from lab tests to full-scale 
without the benefit of using additional testing facilities to confirm 
that processes would work at a larger scale. Officials at Hanford are 
following a similar approach. Several experts with whom we talked 
cautioned that if separation processes at Hanford do not work as 
planned, facilities will have to be retrofitted, and potential cost 
increases and schedule delays would be much greater than any associated 
with integrated process testing in a pilot facility.
     opportunities exist to explore additional cost savings and to 
                     strengthen program management
    In addition to the potential cost savings identified in the 
accelerated site cleanup plans, DOE continues to develop and evaluate 
other proposals to reduce costs but is still assessing them. Although 
the potential cost savings have not been fully developed, they could be 
in the range of several billion dollars, if the proposals are 
successfully implemented. At the Savannah River and Hanford sites, for 
example, DOE is identifying ways to increase the amount of waste that 
can be placed in its highlevel waste canisters to reduce treatment and 
disposal costs. DOE also has a number of initiatives under way to 
improve overall program management. However, we are concerned that the 
initiatives may not be adequate. In our examinations of problems that 
have plagued DOE's project management over the years, three 
contributing factors often emerged making key project decisions without 
rigorous analysis, incorporating new technology before it has received 
sufficient testing, and using a ``fast-track'' approach (concurrent 
design and construction) on complex projects. Ensuring that these 
weaknesses are addressed as part of its program management initiatives 
would further improve the management of the program and increase the 
chances for success.
DOE Is Considering Additional Potential Opportunities to Reduce Costs
    DOE is continuing to identify other proposals for reducing costs 
under its accelerated cleanup initiative. Among the proposals that DOE 
is considering, the ones that appear to offer significant cost savings 
opportunities would increase the amount of waste placed in each 
disposal canister. The amount of waste that can be placed into a 
canister depends on a complex set of factors, including the specific 
mix of radioactive material combined with other chemicals in the waste, 
such as chromium and sulfate, that affect the processing and quality of 
the immobilized product. These factors affect the percentage of waste 
than can be placed in each canister because they indicate the 
likelihood that radioactive constituents could move out of the 
immobilizing glass medium and into the environment. The greater the 
potential for the waste to become mobile, the lower the allowable 
percentage of waste and the higher the percentage of glass material 
that must be used.
    Savannah River officials believe they can increase the amount of 
waste loaded in each canister from 28 percent to about 35 percent, and 
for at least one waste batch, to nearly 50 percent. In June 2003, 
Savannah River began to implement this new process to increase the 
amount of waste in each canister. If successful, Savannah River's 
improved approach could reduce the number of canisters needed by about 
1,000 canisters and save about $2.7 billion, based on preliminary 
estimates. Other efforts to increase waste loading of the canisters are 
also under way that, if successful, may permit further cost savings of 
about $1.7 billion. The Hanford Site is also exploring ways to decrease 
the numbers of waste canisters that will be needed by using waste forms 
other than the standard borosilicate glass. This effort is in a very 
early stage of development and cost-savings estimates have not been 
fully developed.
     doe has opportunities to improve management of the program by 
              addressing previously identified weaknesses
    In addition to site-specific proposals for saving time and money, 
DOE is also undertaking management improvements using teams to study 
individual issues. Nine teams are currently in place, while other teams 
to address issues such as improving the environmental review process to 
better support decision making have not yet been formed. Each team has 
a disciplined management process to follow,<SUP>11</SUP> and even after 
the teams' work is completed, any implementation will take time. These 
efforts are in the early stages, and therefore it is unclear if they 
will correct the performance problems DOE and others have identified.
---------------------------------------------------------------------------
    \11\ Under DOE's project management principles, for example, teams 
must define project requirements, conduct preliminary risk assessments, 
and prepare a risk mitigation plan prior to developing a baseline cost 
estimate of proposed alternatives.
---------------------------------------------------------------------------
    We are concerned that these management reforms may not go far 
enough in addressing performance problems with the highlevel waste 
program. Our concerns stem from our review of initiatives under way in 
the management teams, our discussions with DOE officials, and our past 
and current work, as well as work by others inside and outside DOE. We 
have identified three recurring weaknesses in DOE's management of 
cleanup projects that we believe need to be addressed as part of DOE's 
overall review. These weaknesses cut across the various issues that the 
teams are working on and are often at the center of problems that have 
been identified. Two of these weaknesses have been raised earlier in 
this testimony--lack of rigor in the analysis supporting key decisions, 
and incorporating technology into projects before it is sufficiently 
mature. The final area of weakness involves using ``fast-track'' 
methods to begin construction of complex facilities before sufficient 
planning and design have taken place.
Key Decisions Not Always Supported by Rigorous Current Analysis
    DOE's project management guidance emphasizes the importance of 
rigorous and current analysis to support decision making during the 
development of DOE projects. Similarly, OMB guidance states that 
agencies should validate earlier planning decisions with updated 
information before finalizing decisions to construct facilities. This 
validation is particularly important where early cost comparisons are 
susceptible to uncertainties and change.
    DOE does not always follow this guidance, yet no DOE management 
team appears to be addressing this weakness. Proceeding without 
rigorous review has been a recurring cause of many of the problems we 
have identified in past DOE projects. For example, the decision at 
Hanford to construct a vitrification plant to treat Hanford's low-
activity waste has not been validated with updated information. 
Hanford's primary analysis justifying the cost of this approach was 
prepared in 1999 and was based on technical performance data, disposal 
assumptions, and cost data developed in the early to mid-1990s 
conditions that are no longer applicable. Subsequent analyses have 
continued to rely on this data. However, since that time conditions 
have changed, including the performance capabilities of alternative 
technologies such as grout, the relative cost of different 
technologies, and the amount of waste DOE intends to process through a 
vitrification facility.
    DOE officials disagree with our assessment of their analysis, 
stating that a comprehensive analysis was conducted in the spring of 
2003. However, DOE's highlevel waste project team agreed that the DOE 
officials at Hanford had not performed a current, rigorous analysis of 
low-activity waste treatment options including the use of grout as an 
alternative to vitrification, and the team encouraged the Hanford site 
to update its analysis based on current waste treatment and disposal 
assumptions. DOE officials at Hanford told us they do not plan to 
reassess the decision to construct a low-activity vitrification 
facility because their compliance agreement with the state of 
Washington calls for vitrification of this waste. They also stated that 
vitrification is a technology needed for destroying hazardous 
constituents in a portion of the waste.
New Technology Is Incorporated before It Is Sufficiently Mature
    Our work on Department of Defense acquisitions has documented a set 
of ``best practices'' used by industry for integrating new technology 
into major projects. We reported in July 1999 that the maturity of a 
technology at the start of a project is an important determinant of 
success.<SUP>12</SUP> As technology develops from preconceptual design 
through preliminary design and testing, the maturity of the technology 
increases and the risks associated with incorporating that technology 
into a project decrease. Waiting until technology is well-developed and 
tested before integrating it into a project will greatly increase the 
chances of meeting cost, schedule, and technical baselines. On the 
other hand, integrating technology that is not fully mature into a 
project greatly increases the risk of cost increases and schedule 
delays. According to industry experts, correcting problems after a 
project has begun can cost 10 times as much as resolving technology 
problems beforehand.
---------------------------------------------------------------------------
    \12\ U.S. General Accounting Office, Best Practices: Better 
Management of Technology Development Can Improve Weapon System 
Outcomes, GAO/NSIAD-99-162 (Washington, D.C.: July 30, 1999).
---------------------------------------------------------------------------
    DOE's project management guidance issued in October 2000 is 
consistent with these best practices. The guidance discusses technology 
development and sets out suggested steps to ensure that new technology 
is brought to a sufficient level of maturity at each decision point in 
a project. For example, during the conceptual design phase of a 
project, ``proof of concept'' testing should be performed before 
approval to proceed to the preliminary design phase. Furthermore, the 
guidance states that attempting to concurrently develop the technology 
and design the facility for a project poses ill-defined risks to the 
project.
    Nevertheless, as we discussed earlier, DOE sites continue to 
integrate immature technologies into their projects. For example, as 
discussed earlier, DOE is constructing a facility at the Hanford Site 
to separate highlevel waste components, although integrated testing of 
the many steps in the separations process has not occurred and will not 
occur until after the facility is completed. DOE, trying to keep the 
project on schedule and within budget, has decided the risks associated 
with this approach are acceptable. However, there are many projects for 
which this approach created schedule delays and unexpected costs. The 
continued reliance on this approach in the face of so many past 
problems is a signal of an area that needs careful attention as DOE 
proceeds with its management reform efforts. At present, no DOE 
management team is addressing this issue.
Facility Construction Starts before Design Is Sufficiently Developed
    Finally, we have concerns about DOE's practice of launching into 
construction of complex, one-of-a-kind facilities well before their 
final design is sufficiently developed, again in an effort to save time 
and money. Both DOE guidance and external reviews stress the importance 
of adequate upfront planning before beginning project construction. 
DOE's project management guidance identifies a series of well-defined 
steps before construction begins and suggests that complex projects 
with treatment processes that have never before been combined into a 
facility do not lend themselves to being expedited. However, DOE 
guidance does not explicitly prohibit a fast-track--or concurrent 
design and construction--approach to complex, one-of-a-kind projects, 
and DOE often follows this approach. For example, at the Hanford Site, 
DOE is concurrently designing and constructing facilities for the 
largest, most complex environmental cleanup job in the United States. 
Problems are already surfacing. Only 24 months after the contract was 
awarded, the project was 10 months behind schedule dates, construction 
activities have outpaced design work causing inefficient work 
sequencing, and DOE has withheld performance fee from the design/
construction contractor because of these problems.
    DOE experienced similar problems in concurrent design and 
construction activities on other waste treatment facilities. Both the 
spent nuclear fuel project at Hanford and the waste separations 
facility at the Savannah River Site encountered schedule delays and 
cost increases in part because the concurrent approach led to mistakes 
and rework, and required extra time and money to address the 
problems.<SUP>13</SUP> In its 2001 follow-up report on DOE project 
management, the National Research Council noted that inadequate pre-
construction planning and definition of project scope led to cost and 
schedule overruns on DOE's cleanup projects.<SUP>14</SUP> The Council 
reported that research studies suggest that inadequate project 
definition accounts for 50 percent of the cost increases for 
environmental remediation projects. Again, no DOE team is specifically 
examining the ``fast-track'' approach, yet it frequently contributed to 
past problems and DOE continues to use this approach.
---------------------------------------------------------------------------
    \13\ For a discussion of the problems associated with the fast 
track design/build approach on these projects, see U.S. General 
Accounting Office, Nuclear Waste: DOE's Hanford Spent Nuclear Fuel 
Storage Project Cost, Schedule, and Management Issues, GAO/RCED-99-267 
(Washington, D.C.: Sept. 20, 1999) and Nuclear Waste: Process to Remove 
Radioactive Waste From Savannah River Tanks Fails to Work, GAO-RCED-99-
69 (Washington, D.C.: Apr. 30, 1999).
    \14\ National Research Council, Progress in Improving Project 
Management at the Department of Energy (Washington, D.C.: Nov. 2001).
---------------------------------------------------------------------------
                              conclusions
    DOE's efforts to improve its highlevel waste cleanup program and to 
rein in the uncontrolled growth in project costs and schedules are 
important and necessary. The accelerated cleanup initiative represents 
at least the hope of treating and disposing of the waste in a more 
economical and timely way, although the actual savings are unknown at 
this time. Furthermore, specific components of this initiative face key 
legal and technical challenges. Much of the potential for success 
rested on DOE's ability to dispose of large quantities of waste with 
relatively low concentrations of radioactivity on site by applying its 
incidental waste process. Recently, a court ruled that the portion of 
DOE's order setting out its incidental waste determination process 
violates the Nuclear Waste Policy Act and is invalid. Thus, DOE is 
precluded from implementing this element of its accelerated initiative. 
Success in accelerating cleanup also rests on DOE's ability to obtain 
successful technical performance from its as-yet unproven waste 
separation processes. Any technical problems with these processes will 
likely result in costly delays. At DOE's Hanford Site, we believe the 
potential for such problems warrants reconsidering the need for more 
thorough testing of the processes, before completing construction of 
the full-scale waste separation facility.
    DOE's accelerated cleanup initiative should mark the beginning, not 
the end, of DOE's efforts to identify other opportunities to improve 
the program by accomplishing the work more quickly, more effectively, 
or at less cost. As DOE continues to pursue other management 
improvements, it should reassess certain aspects of its current 
management approach, including the quality of the analysis underlying 
key decisions, the adequacy of its approach to incorporating new 
technologies into projects, and the merits of a fast-track approach to 
designing and building complex nuclear facilities. Although the 
challenges are great, the opportunities for program improvements are 
even greater. Therefore, DOE must continue its efforts to clean up its 
highlevel waste while demonstrating tangible, measurable program 
improvements.
    In the report being released today, we made several recommendations 
to help DOE manage or reduce the legal and technical risks faced by the 
program as well as to strengthen DOE's overall program management. DOE 
agreed to consider seeking clarification from Congress regarding its 
authority to define some waste as incidental to reprocessing, if the 
legal challenge to its authority significantly affected DOE's ability 
to achieve savings under the accelerated initiative. Regarding our 
recommendations to conduct integrated pilot-scale testing of the 
separations facility at Hanford before construction is completed, and 
to make other management improvements to address the weaknesses I just 
discussed, DOE's position is that it has already taken appropriate 
steps to manage the technology risks and strengthen its management 
practices. We disagree and believe that implementing all of our 
recommendations would help reduce the risk of costly delays and improve 
overall management of DOE's entire high-level waste program.
    Thank you, Mr. Chairman and Members of the Subcommittee. That 
concludes my testimony. I would be pleased to respond to any questions 
that you may have.

    Mr. Greenwood. Thank you very much. I appreciate that.
    The Chair recognizes himself for 10 minutes for 
questioning. Let me start with you, Ms. Roberson.
    Other DOE sites and other countries have found grout to be 
the best solution for disposing of low activity waste, 
including at the Savannah River Site. So why has DOE agreed to 
vitrify low activity waste at Hanford?
    Ms. Roberson. Mr. Chairman, we are looking at a number of 
technology alternatives to stabilize material, and grout is 
still one of those that we are evaluating in conjunction with 
our regulators for some material.
    Mr. Greenwood. Well, then, is it not the case that DOE has 
agreed to vitrify low level activity waste at Hanford?
    Ms. Roberson. The DOE commitment that preceded this program 
was to--I think I am going to look to our site manager--to 
vitrify----
    Mr. Greenwood. If you would identify yourself and----
    Ms. Roberson. Right.
    Mr. Greenwood. Just so you know what your options are. If 
you would like to do it this way, if you would like the 
gentleman to identify himself, take the oath and take the 
microphone, we can do it that way. So it is your call.
    Ms. Roberson. I was pretty sure I knew the answer. But I 
wanted to check with him. Our commitment is to vitrify all of 
the high-level waste at Hanford. We are working with our 
regulators to look at alternative stabilization techniques, one 
of those being grout for some material. And we have a schedule 
and we are working through that with our regulators at Hanford.
    Mr. Greenwood. To whom did you make the commitment to 
vitrify the low level waste at Hanford?
    Ms. Roberson. This was a regulatory commitment that 
predated our accelerated cleanup agreement.
    Mr. Greenwood. So if you want to reverse directions and 
look for less expensive options, such as grout and I think you 
have indicated others, what would you have to do? Would you 
have to issue new regulations in order to do that?
    Ms. Roberson. No. What we would need to do is convince our 
regulators and the public that we have technically defensible 
and sound environmentally other options, and that is what we 
are working with them to do.
    Mr. Greenwood. Is there any reason to believe that using 
grout as an alternative to vitrifying the low level waste would 
not be safe and efficient.
    Ms. Roberson. I have no reason today to believe that that 
would not be a safe, environmentally protective option for some 
of the waste.
    Mr. Greenwood. Do you know what your timetable is to make 
that decision?
    Ms. Roberson. 2005. We are working through a testing 
program to develop our technical basis. Actual results of 
characterization of certain stabilized materials, using those 
techniques will be sometime in 2005.
    Mr. Greenwood. Okay. Under your accelerated initiative, DOE 
expects to save up to $20 billion at the Hanford Site. In 1996, 
DOE estimated total project costs at the Hanford vitrification 
plant would be $3.2 billion. Only 2 years later, in 1998, 
project costs increased to $4.2 billion just to design and 
construct the facilities.
    As of April 2003 costs increased another $1.6 billion to a 
total of $5.8 billion, and the project is 10 months behind 
schedule. How does DOE believe it can achieve savings given 
this track record of increasing project costs and schedule 
delays?
    Ms. Roberson. A large segment, Mr. Chairman, reflected in 
the cost increase is our accelerated strategy for disposition 
of the contents of waste in the tank farm. Previously, the 
strategy was multiple vitrification plants. We have relooked at 
our design. We have worked with our contractor. We have worked 
with our regulator and we believe that construction of one 
vitrification plant as we have laid out will meet our needs, 
and thus overall, is a cost savings to the program.
    Mr. Greenwood. So would I be right in characterizing this 
as a case where you are front-loading the costs, you are going 
to have larger costs in the earlier years to achieve lower 
costs over the life of the project?
    Ms. Roberson. That is exactly right. That is one element of 
the cost savings. That is not all of it, but it certainly is 
one element. And we have modified our designs such that our 
through-put can meet our needs and will not require 
construction, we believe of additional vitrification plants.
    Mr. Greenwood. Okay. In your testimony, you indicate that, 
``the recent court decision in the Idaho District Court will 
significantly hinder our ability to implement the accelerated 
cleanup program.'' You had estimated $20 billion in potential 
cost savings with the high-level waste program. Are these 
savings achievable if the Idaho District Court rulings stand?
    Ms. Roberson. Mr. Chairman, we are still--our legal staff 
is still trying to understand the potential impact of the Idaho 
District Court ruling. So I am not really prepared to explain 
the extent of the impact. But, clearly it could have a 
significant impact, not just at Hanford, but at our other sites 
as well too.
    Mr. Greenwood. Is the Department considering appealing that 
Idaho District Court ruling?
    Ms. Roberson. I think the Department is considering all 
options available to it. It simply hasn't made a decision yet.
    Mr. Greenwood. And has the Department asked Congress to 
clarify the law?
    Ms. Roberson. We are working with Congress in regard to 
clarifying the law. And we are in agreement with the GAO's 
recommendation in seeking that clarification.
    Mr. Greenwood. This committee has jurisdiction over that 
issue. And so with whom on this committee are you having 
discussions about new legislation?
    Ms. Roberson. I don't know if we have had the opportunity 
to talk with Dwight. I would need to check with our legal staff 
who have been in front of that.
    Mr. Greenwood. Well, you are welcome in my office any time 
to discuss changing the law.
    Ms. Roberson. Thank you, sir.
    Mr. Greenwood. Let me turn to Ms. Nazzaro for a moment. GAO 
has had concerns for several years about DOE's practice of 
using fast-track approaches on complex cleanup projects where 
facilities are designed and constructed simultaneously. In 
fact, this was the problem with the Pit 9 projects that this 
subcommittee investigated in 1997.
    Can you elaborate on why this fast track approach is risky 
for the Hanford vitrification facility?
    Ms. Nazzaro. Well, in general, what you are doing is you 
are going ahead and building a facility without fully testing 
the technologies that will be incorporated there. So certainly 
you run the risk of having to retrofit after the fact.
    This same process was used at the Savannah River Site and 
did result in further delays and additional costs.
    Mr. Greenwood. Well, in terms of testing and technology, 
are we inventing a wheel here? I mean, is this brand new 
technology that has not been tried and tested elsewhere, either 
in this country or other countries?
    Ms. Nazzaro. Each of these sites is unique as far as the 
make up of the waste and what they are going to do as far as 
their strategies for dealing with the waste. So, they are 
really one of a kind facilities.
    Mr. Greenwood. Ms. Roberson, why don't you respond to that. 
GAO has said that you are kind of building the airplane as you 
fly it along. What is your take on it?
    Ms. Roberson. Well, I agree with GAO if that is the 
approach that you employ, that certainly increases your risk in 
a project. I would like to make two points however. One is that 
there is a fundamental difference between the first of a kind 
separations process at Savannah River and the current Hanford 
separations process strategy.
    The Savannah River separations process was one that relied 
on both the technical approach not used in other government or 
commercial applications and reliance on the chemical agent not 
readily available in commercial scale quantities.
    Additionally, no extensive testing of that process using 
simulated waste was performed. The Hanford approach relies on 
various components. Evaporators, filters, ionic exchange units, 
that have successful operational history within DOE and the 
commercial industry.
    A pilot plant would do little to reduce process 
uncertainties such as actual filtration rates because of the 
wide range of Hanford tank waste requiring treatment. We are 
attempting to mitigate any risk for the Hanford separations 
process by performing tests at the Savannah River Technology 
Center in which each unit is pilot tested and the product and 
recycle streams produced are collected and process tested in 
the receiving unit.
    This simulates the plant design in that the products from 
each unit operation will be collected in tanks and staged 
before being fed to the next unit operation. Thus, we believe 
that we have--that we are achieving integrated testing of our 
operation before we are too far down the road in construction.
    Also, in April 2003, with the majority of the design done, 
as I talked about earlier, we integrated our accelerated 
strategy with our project design. We also evaluated our risk at 
that point and we believe we eliminated a significant number of 
the technical risks that had been standing, which is in 
conjunction with our project management process. So, we believe 
that we are taking the necessary actions to mitigate risk in 
this project which would exist in any project.
    Mr. Greenwood. One final quick question for this round. 
This committee has found that the Department of Energy, in 
employing contractors, has frequently found that both 
Department employees and contractor employees are given credit 
cards. And there has been massive abuse by those credit cards 
by DOE employees and DOE contractor employees. Do you know if 
in this program, you have examined the utilization of credit 
cards and checked your system to see whether in fact you are 
subject to that kind of abuse?
    Ms. Roberson. I believe last fall, following concerns 
raised, not necessarily in Department of Energy, the Department 
of Energy undertook a fairly extensive evaluation of credit 
card usage across the Department. And, as I recall, the results 
for the environmental management program and its contractors 
was pretty good, in that the management controls in place were 
effective.
    Mr. Greenwood. My time has expired. The gentleman from 
Florida.
    Mr. Deutsch. Thank you, Mr. Chairman. Ms. Roberson, with 
regard to DOE's plan to test separation technology at Hanford 
after the full facility has been constructed, the GAO finds 
that, and I quote, this approach does not fully reflect DOE's 
guidance, which calls for ensuring that newer complex 
technology is mature before integrating it into a project. Is 
that an accurate statement?
    Ms. Roberson. As I stated earlier, the Department does 
disagree with that characterization. And we believe that we are 
undertaking an integrated testing approach. We are not building 
a pilot plant, but we are conducting integrated testing at the 
Savannah River Technology Center.
    We also believe that the components of this process do have 
commercial success to buildupon, and are not first of a kind.
    Mr. Deutsch. Okay. Why would the Department stray from its 
own project guidelines?
    Ms. Roberson. I don't believe that we are straying from our 
own project guidance.
    Mr. Deutsch. Can you comment on that, Ms. Nazzaro?
    Ms. Nazzaro. Yes. Our interpretation of what they are doing 
is they are simulating integration, they are not fully 
integrating. So until you have a full integration, you still 
have a fairly high level of risk.
    Mr. Deutsch. All right. According to the GAO, both in the 
report and in testimony, DOE should conduct integrated pilot 
scale testing at the separation facility at Hanford before 
completing full scale construction. GAO believes that while DOE 
has experience with individual separation technologies, a 
thorough understanding of the integrated process is necessary.
    DOE responds that this is--that it has adequate experience 
with the technologies involved, the technologies are mature, 
and that pilot testing of individual components in the 
laboratory is adequate to mitigate any risk. Is this an 
accurate summary of both GAO and DOE's position on this point?
    Ms. Roberson. Yes, for DOE.
    Ms. Nazzaro. Yes, it is. And we have a number of expert 
endorsements behind that statement.
    Mr. Deutsch. Okay. Now, moving on to an example in the GAO 
report, we find that situation of Savannah River's experience 
with the waste separation technology called in-tank 
precipitation. In that case, GAO found that after $500 million, 
15 years successful lab tests and the use of supposed-to-be 
mature technology, the project was a bust. It took an 
additional $1.8 billion and 7 years to address the problem.
    Ms. Roberson, I assume before this debacle at Savannah 
River began, that DOE felt it was on safe ground, relying on a 
process that looks very similar to what you envision for 
Hanford; is that correct?
    Ms. Roberson. Well, Congressman Deutsch, I wasn't in the 
Department at that time. But we certainly have tried to learn 
those lessons that resulted from that experience as well as 
others. And we have done that by making sure that we integrated 
our expertise, people resources, capability, and experience in 
the design and construction and review of the vitrification 
plant at Hanford.
    Mr. Deutsch. So now that the DOE has experience with the 
similar project that went horribly, you know, poorly, it 
doesn't stand that DOE has learned from its mistakes. The GAO 
finds that the DOE is pursuing a similar strategy at Hanford, 
and that several experts with whom we have talked caution that 
if the separation processes at Hanford do not work as planned, 
facilities will have to be retrofitted and potential cost 
increases and schedule delays will be much greater than any 
associated with integrated processing testing at a pilot 
facility.
    Ms. Roberson, given all that has happened at Savannah River 
with enormous cost overruns and delays, combined with the GAO 
findings, how can DOE possibly justify not conducting 
integrated pilot scale testing?
    Ms. Roberson. We believe we are conducting integrated 
testing of the operational components of this system. We 
believe that that is adequate to mitigate the risk of past 
experience.
    Mr. Deutsch. I mean, again the distinction that Ms. Nazzaro 
talked about, the simulated testing, Ms. Nazzaro, in your 
report, you state that numerous experts have proposed 
constructing and operating an integrated pilot scale facility; 
is that correct?
    Ms. Nazzaro. Yes. And contractors themselves also endorsed 
that process.
    Mr. Deutsch. Can you list some of those experts that you 
consulted?
    Ms. Nazzaro. I just wanted to check whether I could mention 
their names, sir, that we have cleared them, this with them. We 
had Milton Levenson, who is a retired vice president of 
Bechtel. He is also a member of the Board of Radioactive Waste 
Management of the National Research Council.
    Allen Croff is a division director of chemical technology 
at Oak Ridge National Laboratory and a consultant to the 
Committee on Remediation of Buried and Tank Wastes. Ed Lahoda, 
who is a consulting engineer with Westinghouse Science and 
Technology Department in Pittsburgh, and is a member of the 
Committee on Long-Term Research Needs for high-level waste at 
the Department of Energy sites of the Board of Radioactive 
Waste Management.
    Greg Chopin, a Distinguished Lawton Professor of Chemistry 
who is retired; also a member of the Board on Radioactive Waste 
Management. Martin Steindler, director of the Chemical 
Technology Division at Argonne National Laboratory, also a 
member of the Board on Radioactive Waste Management, and Roy 
Gephart, a senior program manager of Chemical Structure and 
Group Dynamics at the Environmental Molecular Science 
Laboratory at the Pacific Northwest National Laboratory.
    We also had within our employ George Hinman, Doctor of 
Science in Physics, and Professor Emeritus at Washington State 
University.
    Mr. Deutsch. You state that the DOE officials at Hanford 
acknowledge that the pilot facility could be included in the 
project without extending the project schedule; is that 
correct?
    Ms. Nazzaro. Yes. That is correct. The original intent was 
to do it in project development.
    Mr. Deutsch. Ms. Roberson, you can, no doubt, understand 
the skepticism that some members of the subcommittee may have 
given the Department's track record on this issue. We all want 
this waste disposed of in the safest, most efficient manner. 
And this report raises serious concerns about DOE's ability to 
achieve this result. I hope you will give serious consideration 
to the GAO's recommendation regarding pilot testing and 
management practices. I yield back.
    Mr. Walden [presiding]. The gentleman yields back his time. 
The Chair would yield himself the appropriate 10 minutes.
    Ms. Roberson, I noted that as I have had a chance to look 
through the GAO audit, and I would admit I haven't had a lot of 
time yet since it has just come out, but that there seems to be 
a continuing issue about management weaknesses that has been 
identified for some time in prior audits. And the GAO indicates 
that those weaknesses would seem to be continuing in 
management. They are concerned. I think I am characterizing 
that correctly.
    Can you speak to what your view of that is and what--how 
you think those management weaknesses need to be addressed?
    Ms. Roberson. Yes. Yes, sir, I would be glad to. I guess 
quite frankly there are a number of points that I would like to 
make; one specific to this project. As I stated earlier, for 
the River Protection Project, we have taken the time to really 
look closely at our approach, the schedule for design and 
construction, and the April 2003 baseline that has been 
provided to Congress, takes into consideration lessons learned 
from previous projects, and really following very closely our 
project management order and guidance in the Department of 
Energy.
    And we made adjustments to our design and construction 
schedule to ensure that our confidence was high, that our risks 
were mitigated in that process. And it is probably one of the 
few projects that we have organized in a way that has an 80 
percent confidence of success, which is the recommended level 
of confidence, both financial and operational for a DOE 
project.
    So I think that we have taken the technical and operational 
challenges very seriously--management in general. We have, 
since the Secretary issued the Top to Bottom Review, I mean, 
the Department itself acknowledged that reform of this program 
was essential.
    Mr. Walden. And well overdue.
    Ms. Roberson. And well overdue. And for the last year and a 
half, every action we have taken has been in support and 
centered on the premise that those reforms were not just going 
to be ideas or policies or statements, but actual 
implementation.
    I suspect that the GAO and others will continue until they 
see the hard results. That is why, in my opening statement, I 
think it is always important to put before people what actual 
risk reduction environmental protection is occurring at our 
sites on the ground. I could probably sit here and talk until I 
am blue, but the only thing that is going to matter are the 
actual results that we accomplish. And this is my experience at 
other projects in the Department as well.
    Mr. Walden. Good. I would commend the Department for the 
changes that have taken place. I live in a little town of Hood 
River, Oregon. It is about 150 miles downstream in the Columbia 
River from the Hanford. I have lived near the Hood River nearly 
all of my life. I must tell you there have been times where 
what we have been told about what was happening at Hanford 
hasn't turned out to be exactly truthful.
    There are many people in my community who remain skeptical, 
even with the changes, about what is going on there, and 
remain, I think, in many ways, justifiably concerned about the 
fact that this highly radioactive material is sitting in tanks 
that have been leaking or burping, and that what is leaking may 
be headed right into the Columbia River at some point if we 
don't get this cleaned up.
    And so obviously I have a personal and deep concern about 
making sure this is done right and right the first time, and 
that the proper testing is done to make sure it works.
    Now, in the testimony from the folks from Washington State, 
I don't know if you have had a chance to read it or not----
    Ms. Roberson. I have not.
    Mr. Walden. But they commend the changes that have taken 
place at DOE. But they do raise an issue about an incentive 
program of paying a million dollars a tank to close smaller low 
risk tanks, that they don't agree with that concept, that we 
may not be actually targeting what we need most, which is to, I 
think, deal with the higher waste. It is not necessarily a true 
measure.
    They contend a wiser choice would be investing in treatment 
and retrieval capabilities that will optimize risk reduction.
    Can you explain to me why you think paying a million 
dollars per tank to close smaller low risk tanks is the best 
use of funds?
    Ms. Roberson. Well, I can't say that I know the exact 
amount of the incentive fee. But for discussion purposes, using 
a million is fine.
    Mr. Walden. Sure.
    Ms. Roberson. I would say that we consider completing our 
work in the tank farm to be the most important element, and 
that all of the waste in the tanks, removal, remediation 
following removal is the important element. And we are 
starting--the way our program is designed, we start at both 
ends. We are building a vitrification plant that is designed to 
handle the high-level waste. On the other side, we are also 
removing waste from single-shell tanks. And so our strategy for 
accelerating cleanup of the tank farm is to work both ends at 
the same time. We think that is a reasonable approach supported 
by science and engineering capability.
    Mr. Walden. Ms. Nazzaro, would you comment on that issue?
    Ms. Nazzaro. Yes. I would like to actually take a moment to 
commend Ms. Roberson as well as the Department of Energy. 
Because we agree that the steps that they are taking are 
appropriate steps and they are good steps and they are good 
first steps.
    Our point in making--in reiterating our concerns as far as 
the program management is that maybe they haven't gone far 
enough, and that we would like to see them, you know, keep 
pushing in this direction, particularly in the areas of 
rigorous analysis before making key project decisions, 
sufficiently testing new technologies and evaluating the 
appropriateness of this concurrent design-build strategy.
    Mr. Walden. That is pretty strong language in your report.
    Ms. Nazzaro. Right. These are things that we have been 
supporting for some time. And we do see that DOE is taking 
first steps to move in these directions. We just don't think 
they are there yet and we would like to see more being done.
    Mr. Walden. Ms. Roberson, do you disagree with that?
    Ms. Roberson. No. I would say that we have problems to 
solve. Until those problems are solved, solutions implemented 
and done, we continue to have challenges, management 
challenges. I don't foresee a time that won't be the case.
    Some of the other things that we are doing that are also 
pointed out in the GAO report, which we appreciate, and will 
continue to emphasize is, we have developed a specific project 
team for helping us to validate and improve our strategy for 
cleanup of high-level waste. We have formed 10 teams across the 
complex. And those teams are producing results that we believe 
will further improve our ability to achieve the results that we 
have laid out. There will continue to be challenges until the 
problems are solved. There is no doubt in my mind. And that 
will continue to be a management challenge until that occurs.
    Mr. Walden. In the GAO recommendations, it indicates here 
that you disagree with the need to conduct integrated testing 
of the Hanford waste separation technology. You just don't 
think that is----
    Ms. Roberson. We do not believe that it is necessary to 
build a pilot-scale plant.
    Mr. Walden. Because you can use best practices?
    Ms. Roberson. Because--you can call it simulated. We are 
doing testing of the operational components of the plant and 
integrating the results of those.
    Mr. Walden. I guess the biggest challenge that people like 
me have in the job is sorting out when one certified smart 
person and team says you should do it, and another group says, 
we are doing it and it will be fine. How do we know, and there 
is so much on the line in terms of public health and public tax 
dollars here, I mean, right across the river in my district, we 
are also building a facility to destroy one of the Nation's 
stockpiles s of chemical weapons.
    And, I mean, there has been enormous testing that has gone 
on and in other facilities around the country, around the 
world. And, you know, they have incorporated in using those 
actual facilities, what--the lessons learned in the design of 
this facility. It hasn't just been simulated. How do I know 
that your simulated tests are going to do the job?
    Ms. Roberson. Well, we believe that it will do the job 
based upon the results. But the components of the systems that 
we are testing also have commercial success behind them. They 
aren't one of a kind, or first of a kind.
    Mr. Walden. Ms. Nazzaro, do you care to comment on that, 
because that is the heart of the matter here.
    Ms. Nazzaro. We would agree that certain components have 
been utilized in the past. Our issue is with the integration, 
will they work together? We are not saying it won't work. But 
we are saying if you want to minimize risk, this isn't a good 
strategy, it has not been successful in the past.
    Mr. Walden. That is the troubling part in your report, is 
that you indicate that has been tried in the past, it has not 
worked. And we are going down perhaps the same path.
    Ms. Nazzaro. Correct.
    Mr. Walden. What is at risk here?
    Ms. Nazzaro. Well, the whole acceleration of the program is 
at risk, whether you will achieve the savings, and not in terms 
of just dollars, but also in time. Because if you have to 
retrofit, you are going to certainly have to spend more time 
and you are going to incur more dollars, more cost.
    Mr. Walden. And where this has happened before, what kind 
of cost and time delays have you seen?
    Ms. Nazzaro. I don't have the exact specifics on--at 
Savannah River, I was told that the initial cost was $500 
million and the cost to redo is estimated at $1.8 billion.
    Mr. Walden. Okay. My time has expired. The gentlewoman from 
Colorado.
    Ms. DeGette. Thank you, Mr. Chairman. I think it is very 
important that this subcommittee is continuing our vigorous 
oversight efforts over the Department of Energy's cleanup 
efforts for radioactive high-level waste. And the chairman is 
back just in time for me to thank him for holding this hearing.
    This is a huge budget, as we just heard, with the 
environmental management program spending over $7 billion each 
year cleaning up the hazardous waste created during the cold 
war years for weapons production activities. These radioactive 
materials have inherent risks for the workers and for the 
people who are transporting these materials. We are talking 
about a cleanup program that is projected to stretch decades 
into the future, 70 years by most accounts.
    I am hoping that Mr. Greenwood and I will not be here in 70 
years continuing to have oversight over this program. But, I 
think it is critically important that we continue our vigorous 
oversight activities, especially in view of the recent U.S. 
District Court decision in Idaho which granted the petition for 
summary judgment filed by the Natural Resources Defense 
Council.
    And as a former lawyer myself, what struck me was that the 
court granted the motion on summary judgment. So it seems clear 
to me that they thought that there was no big issue of fact 
here, and what they were really deciding was, the authority of 
DOE, under the Atomic Energy Act, as a matter of law. And that 
is kind of the direction I want to go in my questions a little 
bit.
    I first want to ask Ms. Roberson, in your testimony, you 
say that Congress should enact legislation to reaffirm its 
intent regarding DOE's authority to make determinations about 
disposal of reprocessed waste. My first question is whether I 
am correct in understanding that the Department is asking 
Congress to essentially reverse the decision of the U.S. 
District Court in Idaho. Is that really the Agency's intent?
    Ms. Roberson. No, that is not the Agency's intent.
    Ms. DeGette. What is the intent or the hope?
    Ms. Roberson. What the Department is asking, and GAO 
recommended is that Congress clarify its intent. The judge's 
ruling is based upon its understanding and interpretation of 
what Congress intended.
    Ms. DeGette. But that would have the effect, if Congress 
passed additional legislation, of reversing the Court's 
decision.
    Ms. Roberson. If that is what Congress intended. If--I am 
sorry.
    Ms. DeGette. No. My next question is, do you have specific 
legislative language that you can give to us. Because as you 
well know, and as your people well know, this is a very murky 
area and requires very clear drafting.
    Ms. Roberson. We are prepared to work with the committee 
staff and provide recommended language.
    Ms. DeGette. Okay. I would ask unanimous consent if they 
could provide us that recommended language. What kind of 
timeframe are you looking at, Ms. Roberson?
    Ms. Roberson. That we could provide you recommended 
language?
    Ms. DeGette. Yes. I don't want to ask you to do something 
in a timeframe that is unreasonable.
    Ms. Roberson. I believe--I would like to check with our 
general counsel, but certainly within a week we could do that.
    Ms. DeGette. Great. That would be great. I would ask 
unanimous consent then that the Department provide both staffs 
with this language within 30 days.
    Ms. Roberson. Okay. Thank you.
    [The material appears at pg. 69.]
    Ms. DeGette. The next question I have for you, Ms. 
Roberson, in your testimony you respond to some of GAO's 
concerns by saying that you do calculate uncertainty. Could you 
expand on this declaration a little bit for me?
    Ms. Roberson. Okay. That the specific reference then to--
involves some disagreement as to what the calculated savings 
are. The methodology that we use to calculate our savings is 
the same methodology used in the annual independent 
environmental liability cost estimate for the Department.
    Ms. DeGette. How do you do that? What factors enter into 
that?
    Ms. Roberson. They are actual baseline reviews that are 
conducted to validate the cost estimate that we believe applies 
to the work. And there is also a model for calculating 
uncertainty. And so there is an uncertainty estimate that is an 
element of the cost estimate for the program.
    Ms. DeGette. That is a mathematical model that the 
Department uses?
    Ms. Roberson. Yes.
    Ms. DeGette. Okay. Can you give me some examples of how you 
would calculate that uncertainty?
    Ms. Roberson. I can. Well, we obviously base our cost 
savings on resource-loaded schedules that reflect inflation. 
For example, a dollars worth of work today will cost a dollar 
escalated by 10 years of inflation if the same work is 
performed in 2013.
    Ms. DeGette. I am a little confused, because I guess I am 
not understanding how that is calculating uncertainty. Maybe we 
are not understanding each other.
    Ms. Roberson. There is a model used to calculate 
uncertainty that is reviewed independently by the auditors who 
perform the Department's environmental liability cost estimate. 
And that is the same model that applies to this work, to 
calculate the uncertainty.
    Ms. DeGette. Okay. And that model that you are using was 
developed in what context?
    Ms. Roberson. Well, I am--I would actually like to have our 
CFO to help me respond to that. I could follow up. I am just 
not savvy enough in that skill area.
    Ms. DeGette. If we could ask, Mr. Chairman, I would ask 
unanimous consent that the Department supplement us with that 
information about what that model is, and what factors go into 
that model. That would be very helpful.
    [The following was received for the record:]

    There is uncertainty associated with the development of life-cycle 
cost estimates for completing the Environmental Management (EM) cleanup 
program. The major factors contributing to the uncertainty include 
incomplete knowledge of the types and quantities of contamination, the 
degree of innovation required to remediate the problems, and the fact 
that many problems addressed by the EM program are complex and ``one of 
a kind'' situations.
    In 1999, EM developed a statistical model to aid in the calculation 
of cost uncertainties in the life-cycle cost of the EM program. The 
model is based primarily on a study on the cost of environmental 
restoration projects undertaken in the 1990s. This study found that the 
cost uncertainty range for environmental projects could range from -50 
to +175 percent compared to the original cost estimate. For example, if 
the initial cost estimate for a project was $1,000, the cost range for 
the completed project would be $500 to $2,750. In addition, the study 
found that there are three major factors that affect cost uncertainty 
for environmental projects--project definition (i.e., how well the 
project and what needs to be accomplished is understood and defined at 
the time of the cost estimate), the complexity of the project, and the 
degree of innovation required for the project. The study also found 
that project definition contributes 50 percent to the uncertainty 
range, complexity 22 percent, and innovation 28 percent.
    Based on the results of this study, EM developed a system whereby 
each EM project is rated by the Field Project Manager on a scale of 1 
to 5 (where 5 equals maximum uncertainty and I equals minimal 
uncertainty) for the three uncertainty factors (project definition, 
complexity, and innovation). Using these uncertainty scores, a high- 
and low-cost range is calculated for each project. These project cost 
ranges are then loaded into a Monte Carlo probabilistic simulation 
computer program and a cost uncertainty profile is developed for the EM 
program as a whole. The mid-point of the uncertainty profile (the most 
probable cost) is taken as the uncertainty contingency for the EM 
program.
    EM has used this model in calculating its environmental liability 
since 1999 and the results have been used for the Department's audited 
financial statements.

    Ms. DeGette. Let me ask both you and Ms. Nazzaro about 
whether the DOE had a backup plan in place to deal with the now 
very real possibility that the courts would find the agency 
lacked the authority to move forward with its plans.
    Ms. Roberson.
    Ms. Roberson. Let me just clarify two things.
    One, the Department is still trying to understand what the 
implications of the ruling of the judge in the Idaho District 
Court is and what its impact would be on our program.
    Second, the court ruling invalidated a section of our DOE 
435 waste management order, and that section applies to waste 
incidental to reprocessing--process that is captured in that 
order. The DOE 435 Order captured longstanding processes to 
remove waste from the tanks, treat those wastes and then 
characterize waste streams according to radioactivity, the 
heatload and isotopic composition. We are trying to understand 
what the implications of that ruling are.
    Ms. DeGette. Here is the thing that is puzzling me. If you 
are trying to understand the implications of the ruling, how is 
it Congress is then supposed to go back in and clarify the 
language of the statute, if you don't even know what the 
implications of the ruling are. How can we meaningfully fix the 
problem?
    Ms. Roberson. Let me just say simply, the ruling 
invalidated a portion of our order. And what we would have to 
do to understand the implications of this is make sure we 
understand what Congress intended. And if the ruling is 
accurate in what Congress intended, then we would need to 
develop a different process under the law. The laws are still 
our guiding requirement.
    Ms. DeGette. I understand, but it seems to me that you 
folks should get an understanding of the ruling before you come 
back in and have us adjust what our intent is as to what this 
should do.
    Ms. Nazzaro, let me have you answer my question. I am about 
out of time. And my question was: Did the DOE have a backup 
plan in place to deal with the possibility that the courts 
might find that the agency lacked the authority to move 
forward?
    Ms. Nazzaro. I would say no, and that was part of our 
concern that because of this lawsuit, it certainly could 
jeopardize the cost savings as well as the acceleration of the 
program. And that's why at the time prior to the court ruling, 
we suggested they seek clarification.
    Now that the court ruling has been made, we're saying that 
there may be another option and that option would be for DOE to 
ask Congress to provide legislative authority to implement an 
incidental waste policy. That would be different than what we 
had originally recommended, and we're not making a judgment as 
to the validity of the court ruling. We're just saying, let 
that stand and where do you go from here?
    Ms. DeGette. Thanks to both--Ms. Roberson.
    Ms. Roberson. Might I clarify? The DOE 435 order was a 
cataloging of waste management practices in the Department. 
There were no new waste management practices generated either 
in the WIR process or other parts of that order. It was a 
cataloging of those practices over the last 20 years.
    So we haven't generated any new requirement, any new 
policy, any new process. It is, indeed, the basis for how the 
Department has managed these wastes and how it believed it 
would manage them going forward.
    Ms. DeGette. Thank you. Thank you for clarifying your 
answer.
    Mr. Greenwood. The Chair thanks the gentlelady.
    The Chair has a couple more questions, and we'll take as 
much time to answer these questions and then yield similar 
amounts of time to other members if they choose it.
    Ms. Roberson, in the written testimony of David Wilson from 
the South Carolina Department of Health and Environmental 
Control, he raises concerns that DOE has proposed to directly 
dispose of approximately 20 million curies of high-level 
radioactive waste at the Savannah River Site. The question is 
can we store these wastes at Savannah safely?
    Ms. Roberson. What the Site has proposed and is working on 
with our regulators and parties in the community is strategy to 
stabilize materials appropriately through a salt processing 
operation.
    Mr. Greenwood. What kind of processing?
    Ms. Roberson. Salt processing. We are working with our 
regulators. It clearly requires regulatory approval, but we do 
believe we can do it safely or we would not have proposed it.
    Mr. Greenwood. If you do that, do you have an estimate of 
the cost savings you achieve as compared to disposing at Yucca 
Mountain? I assume that's why you're doing it.
    Ms. Roberson. We're doing it because we think it is 
environmentally safe and safe for the workers. The cost impact 
to Yucca Mountain, obviously, the more material that must be 
dispositioned for Yucca Mountain will have an impact on that 
operation, but I can't estimate what the impact would be.
    Mr. Greenwood. Counsel and I are having a conversation as 
well, and I would ask each of you to respond to this, what is 
the impact of the court ruling in Idaho on, for instance, your 
ability to dispose of the waste at Savannah or the implications 
apply to all three sites?
    Ms. Roberson. I have asked this question and our lawyers 
have asked me not to respond to that until they can make a 
determination as to its far-reaching impact, if any.
    Mr. Greenwood. That is understandable.
    Ms. Nazzaro your testimony points out that DOE's incidental 
waste designation process was invalidated by Idaho District 
Court as we've been discussing. What do you consider to be 
DOE's alternative for dealing with the high-level waste if the 
court ruling stands and it is not turned over on appeal and if 
Congress were not to clarify the issue? If they had to live 
with it, what would their options be?
    Ms. Nazzaro. We are suggesting another option and that 
option is that Congress could actually legislate authority to 
DOE to implement an incidental waste policy. If they didn't, we 
are back to square one, because their whole accelerated 
program, whole clean-up program is based on the separation.
    Mr. Greenwood. This is a very important question for us. So 
what I want to understand is if the court ruling stands, if it 
has the implications that we seem to think that it does and if 
Congress does nothing, then what becomes of this material? What 
alternatives exist?
    Ms. Nazzaro. It seems that it all has to be treated as 
high-level waste and would have to be processed and prepared to 
go to a permanent repository.
    Mr. Greenwood. It would have to be vitrified and it would 
have to be taken to Yucca Mountain.
    Ms. Nazzaro. Or to some repository. Yucca Mountain doesn't 
have the capacity to handle all of the wastes that they have. 
One of my predecessors said that if we had to dispose of all 
the wastes at Hanford, we would have to build another Hanford. 
There is so much waste. There is not enough room at Yucca 
Mountain.
    Mr. Greenwood. And so the point is, given the realities of 
Yucca Mountain and how extraordinarily contentious politically, 
legally and how difficult scientifically, technologically, it 
has been to try to prepare Yucca Mountain, you would need to go 
through a similar process. So we're talking probably decades, 
if at all, before you could find an alternative. So it seems to 
me that is an option that should not even be under 
consideration because it is unrealistic.
    So the options are really, as I understand them, either the 
court decision is reversed, or Congress has to go back in and 
make that clarification so the interpretation then falls the 
way the Department thinks it was to begin with, and that is 
they can dispose of it in the way they intended it to.
    Ms. Nazzaro. Correct. We have been supportive of the whole 
separation theory, and we believe it is a prudent strategy 
because, as you say, Yucca Mountain can't handle it, and the 
cost would be prohibitive.
    Mr. Greenwood. Either one of you can respond to this, but 
the court did not determine that disposing of the materials 
onsite or disposing of them as the Department had planned to 
was necessarily unsafe. It just interpreted the law in such a 
way as to require the more onerous methodology; is that 
correct?
    Ms. Nazzaro. Yes.
    Ms. Roberson. That is one of the questions we would want 
clarification on as to whether the court ruling implies that 
everything--and let me just say that people tend to focus on 
the liquid in the tanks. But the WIR process, the waste 
incidental to the reprocessing process in our order applies to 
tank residuals and tank farm components. It would mean the 
tanks would need to be cut up and dispositioned; personal 
protective equipment that workers wore when handling. It is not 
just about liquids in the tank.
    Mr. Greenwood. Am I correct in saying that the court did 
not find as a fact, didn't have expert testimony from witnesses 
who said what the Department is doing unsafe, it is 
environmentally unacceptable, it's risky. It wasn't that the 
court determined that this process was wrong and unsafe, the 
court looked at the Federal law and said, we think the law 
intentionally or inadvertently requires the Department to take 
these extraordinary methods.
    Ms. Nazzaro. The law did not differentiate as far as what 
the waste was. It just basically said that the law states--if 
it is high-level waste, it needs to be sent to a permanent 
repository.
    Mr. Greenwood. Did witnesses come to the court and testify 
that it was environmentally imperative to do it this way?
    Ms. Nazzaro. No. It was a summary judgment as was discussed 
earlier.
    Mr. Greenwood. The gentlelady from Colorado is an attorney.
    Ms. Roberson. Not being a lawyer, but my laymans definition 
may be helpful. In reading the judge's ruling, what I 
understand the judge to say is that the judge ruled that our 
process was not compliant with the law, I think simply put. 
That what we represented as congressional intent was not what 
the intent was.
    Mr. Greenwood. Who brought this case to court?
    Ms. Roberson. Natural Resources Defense Council and others.
    Mr. Greenwood. One might assume that they would be in 
opposition to Congress changing the law.
    Ms. Roberson. Likely.
    Mr. Greenwood. The Chair yields the balance of his time and 
would yield.
    Ms. DeGette. Thank you, Mr. Chairman.
    My understanding of what happened in this lawsuit in the 
U.S. District Court in Idaho, is that the plaintiff was the 
Natural Resources Defense Council. They filed a law suit. And 
what they argued was that under the terms of the Nuclear Waste 
Policy Act that if you are going to categorize waste as high-
level waste, then it has to be sent to that kind of facility 
and it is going to supersede any other actions. And what the 
Department is now asking us to do is to clarify the language to 
determine what their authority is. Would that be accurate?
    Ms. Roberson. That's correct.
    Ms. DeGette. And my point is, before we can figure out--and 
I sort of agree with you, it may not make sense to categorize 
everything as one way. It may be the way that the statute was 
written, but we need to be very careful as we go in to start to 
rewrite the statute, or try to revisit what legislative intent 
was, to make sure that we write it in the appropriate way. And 
I think that that's where the GAO has helped, and I think that 
that is also where the Department needs to provide us with some 
pretty clear language. So in that vein, Mr. Chairman, I ask 
unanimous consent if committee staff could, after this hearing, 
propose some additional legal questions in writing to the 
Department's general counsel and have those responded to within 
2 weeks?
    Mr. Greenwood. Without objection, the staff will be so 
instructed.
    Ms. DeGette. And thank you very much, Mr. Chairman, and I 
yield back.
    Mr. Greenwood. Ms. Roberson and Ms. Nazzaro, thank you for 
your testimony. You are excused.
    And that brings our second panel forward, and I would ask 
Mr. Michael Wilson the Program Director of Nuclear and Mixed 
Waste Program at Washington State Department of Ecology and Mr. 
David Wilson the Assistant Chief of the Bureau of Land and 
Waste Management at South Carolina State Department of Health 
and Environmental Control. If you gentlemen, Messrs. Wilson, 
would step forward. We take testimony under oath here. Do 
either of you object to that? You are both entitled to be 
represented by counsel. Do you wish to? Raise your right hand.
    [Witnesses sworn.]
    Mr. Greenwood. You are under oath, and we will start with 
Michael Wilson. You have 10 minutes, sir.

 TESTIMONY OF MICHAEL A. WILSON, PROGRAM DIRECTOR, NUCLEAR AND 
 MIXED WASTE PROGRAM, WASHINGTON STATE DEPARTMENT OF ECOLOGY; 
 AND DAVID E. WILSON, JR., ASSISTANT CHIEF, BUREAU OF LAND AND 
WASTE MANAGEMENT, SOUTH CAROLINA STATE DEPARTMENT OF HEALTH AND 
                     ENVIRONMENTAL CONTROL

    Mr. Michael Wilson. Thank you Mr. Chairman and members of 
the committee. My name is Mike Wilson and I manage the Nuclear 
Waste Program for the Washington State Department of Ecology.
    At Hanford over 53 million gallons of highly radioactive, 
highly toxic waste produced in the manufacture of plutonium for 
the Nation's nuclear defense sits in 177 aging tanks. At least 
1 million gallons of these deadly wastes have already leaked 
into the environment. Some of that waste has reached the 
groundwater and is heading toward the Columbia River just a few 
miles away. With that as a backdrop, I am here today to commend 
the Department of Energy for significant achievements toward 
our goal of reducing tank waste risk. The Hanford Waste 
Treatment Plant is under construction and authorized for 
completion. The Department of Energy, the administration and 
the Congress have all risen to the challenge and we're 
grateful. Moreover, during the last several years, there has 
been a significant culture shift within the Department of 
Energy. They are now moving aggressively to retrieve and treat 
the waste rather than baby-sitting an aging, costly storage 
system. For more than 15 years, the State of Washington has 
pressed hard for real, lasting risk reduction in the tank 
farms. And so I especially commend Assistant Secretary Roberson 
for their focus on accelerating real risk reduction. A key 
aspect of this change is the use of performance-based 
contracting. We support aggressive use of incentives to 
motivate real, appropriate achievement.
    I would like to briefly address three issues related to 
speeding the clean up and reducing costs. First retrieval and 
treatment. We believe that the tank waste can and will be 
separated into a highly radioactive portion and a low-activity 
fraction. The high-level waste will be vitrified and sent to a 
deep geologic repository and the low-activity fraction, perhaps 
as much as 90 percent of the total volume, appropriately 
treated and returned to shallow burial at Hanford in 
perpetuity. To be acceptable to the State and to the people of 
the Northwest, this low-activity waste must be isolated from 
the environment for as long as it remains hazardous. That's why 
we have supported vitrification for the low-activity waste, an 
impervious durable waste form that will not end up in our air, 
soil, groundwater or the Columbia River.
    And I want to make one thing very clear. Leaving large 
quantities of untreated waste in tanks is not acceptable to the 
State of Washington. That is not real risk reduction and, at 
best, it is only risk deferral. And if I might take a little 
aside here because of the questions raised around the NRDC 
lawsuit. We entered that lawsuit as friends of the court for 
two purposes. One is that we felt that over the last several 
years, the Department of Energy has looked at leaving large 
quantities of waste in tanks, simply looking inside and waving 
a wand over them and declaring them either too hard to get out, 
or too expensive and declaring those no longer high-level 
wastes. That was one of our concerns.
    The other concern on the other side was that as a result of 
the NRDC suit, we would lose the ability through the 
pretreatment process to separate the waste into high-level and 
low-activity fractions and send only that waste to the 
repository that was declared to be high-level waste. That was 
another of our concerns, that we would lose that ability.
    Second, optimizing treatment capabilities. We won't see 
significant permanent risk reduction until the treatment plant 
comes online in 2011. Whether that reduction will be 
accelerated or gradual, less or more expensive, depends on 
critical decisions and investments in the next few years. We 
are pleased that the Department of Energy decided to include a 
second high-activity waster melt in the treatment plant. It 
means that once treatment starts, a larger volume of the more 
dangerous tank waste can be treated sooner, resulting in faster 
risk reduction and substantial life cycle cost savings. 
However, these benefits can only be achieved if enough low-
activity waste can be treated at the same time. This means 
investing in additional treatment capacity for the low-activity 
waste now so it can be available at the time treatment begins. 
This may be in the form of additional treatment plant 
vitrification capacity, or an alternative technology that meets 
comparable waste form standard for shallow land disposal at 
Hanford.
    And third, closure is the end, not the beginning. It will 
be important to properly close tanks and tank farms to prevent 
long-term risk from the remaining contamination. But until 
waste is retrieved and treated, closing tanks can only provide 
marginal fiscal relief and little, if any, risk reduction. 
While focusing on the near-term closure of tanks, most of the 
tank waste, including the high-hazard waste, will remain in a 
mobile form in failing tanks waiting for treatment. To us, 
progress means risk reduction. Counting the number of tanks 
closed is a false measure of progress and a false economy. The 
only true measure of progress is the amount of tank waste 
treated and sent to appropriate disposal. And it is the only 
way to ultimately reduce the cost of tank farm management. We 
do not agree that paying incentives to close small or low-risk 
tanks makes sense at this time. A wiser choice would be 
investing in retrieval and treatment capabilities that will 
optimize risk reduction. We are working with the Department of 
Energy to define the closure process. It is important that we 
maintain our focus on the primary objective which is retrieve, 
treat and properly dispose of the waste.
    Thank you for your attention, and I would be happy to 
answer questions.
    [The prepared statement of Michael A. Wilson follows:]
    Prepared Statement of Michael A. Wilson, Manager, Nuclear Waste 
            Program, Washington State Department of Ecology
    Mr. Chairman: For more than 15 years the State of Washington has 
pressed hard for real, lasting reduction of both short- and long-term 
risks posed by Hanford's 177 underground tanks.
    At Hanford, over fifty-three million gallons of highly radioactive, 
highly toxic waste--produced in the manufacture of Plutonium for the 
nation's nuclear defense--sits in aging tanks buried less than six feet 
below the ground.
    At least one million gallons of these deadly wastes have already 
leaked into the environment. Some of that waste has reached the ground 
water and is heading toward the only salmon spawning beds still left in 
the Columbia River--just a few miles away.
    With that as the backdrop, I am here today to commend the 
Department of Energy for significant achievements toward our goal of 
reducing tank waste risk. The Hanford Waste Treatment Plant is under 
construction and fully authorized for completion. The Department of 
Energy, the Administration and the Congress have all risen to the 
challenge, and we are grateful.
    Moreover, during the last several years, there has been a 
significant ``culture shift'' within the Department of Energy. They are 
now moving aggressively to retrieve and treat the waste, rather than 
``baby sitting'' an aging, failing, costly storage system. I especially 
commend Assistant Secretary Roberson for her focus on accelerating real 
risk reduction.
    A key aspect of this change is the use of performance-based 
contracting. We support aggressive use of incentives to motivate real 
achievement.
    To speed the cleanup of Hanford's tanks and to reduce costs, there 
are three things that must be addressed:

1. Retrieving the waste from tanks and treating it.
2. Timing our investments to make the best use of the Waste Treatment 
        Plant.
3. Putting tank closure in proper perspective.
1. Retrieval and treatment:
    We believe that the tank waste can and will be separated into a 
highly-radioactive portion and a low-activity fraction. The high level 
waste to be vitrified and sent to a deep geologic repository and the 
low activity fraction, after appropriate treatment, returned to shallow 
burial at Hanford, in perpetuity.
    To be acceptable to the state and to the people of the Northwest, 
this low-activity waste must be isolated from the environment for as 
long as it remains hazardous. That's why we have supported 
vitrification for the low-activity waste--an impervious, durable waste 
form that will not wind up in our air, soil, groundwater or the 
Columbia River.
    I want to make one thing very clear. Leaving large quantities of 
untreated waste in the tanks is not acceptable to the State of 
Washington. That is not real risk reduction--at best, it is only risk 
deferral.
2. Timing is crucial to optimal performance and savings
    We won't see significant, permanent reductions in risk until the 
treatment plant comes on-line in 2011. Whether that reduction will be 
accelerated or gradual, less or more expensive, depends on critical 
decisions and investments in the next few years.
    We in Washington are very pleased that USDOE decided to include a 
second high-activity waste melter in the treatment plant. It means 
that, once treatment starts, a larger volume of the more dangerous tank 
waste can be treated sooner, resulting in a steeper reduction in risk 
and substantial life-cycle cost savings.
    However, these benefits can be achieved only if enough low-activity 
waste--perhaps 90 percent of the total volume--can be treated at the 
same time. In turn, this will require investing in additional treatment 
capacity for the low-activity waste to be available in, or shortly 
after 2011.
    This additional capacity may be in the form of an additional low-
activity vitrification capacity, or a supplemental technology that must 
produce a comparably stable waste form for shallow-land disposal at 
Hanford.
    This means investing in this additional treatment capacity in the 
fairly near term--even as the WTP is being built.
    Meanwhile, the more modern double-shell tanks have been filled to 
near capacity. And that will soon constrain our ability to continue 
emptying the old single-shell tanks. This bottleneck will ease only 
when the treatment plant comes on-line. Delay may mean the construction 
of additional tanks. Not as an alternative to treatment but as a 
necessary addition to the treatment and storage system.
3. Closure is the end, not the beginning
    It will be important to properly close tanks and tank farms to 
prevent long-term risk from Hanford's legacy of contamination. But 
until waste is retrieved and treated, closing tanks can provide only 
marginal fiscal relief--and little if any risk reduction.
    While focusing on near term closure of tanks most of the tank 
waste, including the high-hazard waste, will remain in a mobile form, 
in aging tanks and facilities awaiting treatment. We feel that progress 
is risk reduction. Counting the number of tanks closed is a false 
measure of progress and false economy. The only true measure of 
progress is the amount of tank waste treated and sent to appropriate 
disposal and the only way to ultimately reduce the cost of tank farm 
management.
    We do not agree that paying incentives of $1 million per tank to 
close small or low risk tanks makes sense at this time. A wiser choice 
would be investing in retrieval and treatment capabilities that will 
optimize risk reduction.
    We are currently working closely with the Office of River 
Protection to define standards and processes for tank closure. This is 
appropriate and timely work. But we never lose our focus on the primary 
objective: retrieve, treat and properly dispose of the waste.

    Mr. Greenwood. Mr. Wilson.

                TESTIMONY OF DAVID E. WILSON, JR.

    Mr. David Wilson. Mr. Chairman, members of the committee, 
good morning.
    My name is David Wilson, and I am the Assistant Chief for 
the Bureau of Land and Waste Management at the South Carolina 
Department of Health and Environmental Control. Thank you for 
the invitation to testify at this hearing concerning the 
Department of Energy's management of high-level radioactive 
waste stored at the Savannah River Site located in South 
Carolina.
    First, I would like to tell you why this is such an 
important issue to our State. The Savannah River Site began 
operation in 1950. During the peak production years of 
operation, activities included the operation of five nuclear 
reactors, two chemical separations areas, fuel fabrication and 
heavy water production. The high-level radioactive waste 
generated is stored in a series of 51 tanks ranging in size 
from 750,000 gallons to 1.3 million gallons in capacity. These 
tanks contain a total of 37 million gallons of highly 
radioactive waste with a cumulative content of over 400 million 
curies. This storage activity presents the single most 
potentially hazardous condition to the environment and the 
people of South Carolina.
    Over the years DOE has worked with the State to develop and 
implement plans to remove this dangerous waste from the storage 
tanks and transform it into a waste form that is more stable 
and suitable for shipment to a national repository for ultimate 
disposal. This has included the construction and operation of a 
vitrification facility to convert the liquid high-level 
radioactive waste into a glass matrix. This process has been 
successful, and so far approximately 30 million curies of waste 
has been processed which has allowed for the closure of two of 
the original 51 storage tanks. Most recently, the Department of 
Energy conducted a top-to-bottom review of environmental 
management activities across its national complex. The result 
of this review has been the development of site-specific 
performance management plans that outline how many activities 
can be accelerated to reduce risk and associated costs.
    In general, we have agreed with this concept as evidenced 
by a letter of intent to work with the Department on this 
initiative that was signed on May 8, 2002. We have also signed 
a letter of support for the Savannah River Site Performance 
Management Plan on May 22, 2003 with one very important 
exception. That exception deals directly with the management of 
high-level radioactive waste. As part of the acceleration and 
cost reduction, the Department of Energy has proposed to 
directly dispose of approximately 20 million curies of high-
level radioactive waste at the Savannah River Site. This is a 
significant change from previous decisions made by the 
Department of Energy to only leave residual amounts of high-
level radioactive waste onsite. This proposal was made in 
accordance with DOE Order 435.1. The Department of Energy has 
determined that this waste is no longer high-level radioactive 
waste and does not have to be ultimately dispositioned at a 
national repository as mandated by the Nuclear Waste Policy 
Act.
    As you are aware, a recent Federal Court ruling found that 
DOE Order 435.1 violated the Nuclear Waste Policy Act and 
declared portions of the order invalid. We, of course, believe 
this decision directly impacts any proposal by the Department 
of Energy to dispose, onsite, a portion of the high-level 
radioactive waste stored at the Savannah River Site. While we 
do not believe that it is either technically or economically 
feasible to send every curie of high-level radioactive waste to 
a national repository, any proposal to manage residuals of this 
waste onsite must be subject to full public debate and 
deliberation prior to any final decision. This debate and 
deliberation must address what is the acceptable amount of 
residuals to be managed onsite, how the long-term stewardship 
issues will be addressed, and the current direction from 
Congress that all waste of this nature must be permanently 
dispositioned at a national repository.
    Again, thank you for the opportunity to provide these 
comments, and I look forward to answering any questions you may 
have.
    [The prepared statement of David E. Wilson, Jr. follows:]
  Prepared Statement of David E. Wilson, Jr., Assistant Bureau Chief, 
  Land and Waste Management, South Carolina Department of Health and 
                         Environmental Control
    Mr. Chairman, members of the committee, good morning. My name is 
David Wilson and I am the Assistant Chief for the Bureau of Land and 
Waste Management at the South Carolina Department of Health and 
Environmental Control. Thank you for the invitation to testify at this 
hearing concerning the Department of Energy's management of high-level 
radioactive waste stored at the Savannah River Site located in South 
Carolina.
    First, I would like to tell you why this is such an important issue 
to our state. The Savannah River Site began operation in 1950. During 
the peak production years of operation, activities included the 
operation of five nuclear reactors, two chemical separation areas, fuel 
fabrication and heavy water production. The high-level radioactive 
waste generated is stored in a series of fifty-one tanks ranging in 
size from seven hundred and fifty thousand gallons to one point three 
million gallons in capacity. These tanks contain a total of thirty 
seven million gallons of highly radioactive waste with a cumulative 
content of over four hundred million curies. This storage activity 
presents the single most potentially hazardous condition to the 
environment and the people of South Carolina.
    Over the years, DOE has worked with the state to develop and 
implement plans to remove this dangerous waste from the storage tanks 
and transform it into a waste form that is more stable and suitable for 
shipment to a national repository for ultimate disposal. This has 
included the construction and operation of a vitrification facility to 
convert the liquid high-level radioactive waste into a glass matrix. 
This process has been successful and so far approximately thirty 
million curies of waste have been processed which has allowed for the 
closure of two of the original fifty-one storage tanks.
    Most recently, the Department of Energy has conducted a top to 
bottom review of all management activities across its national complex. 
The result of this review has been the development of site specific 
performance management plans that outline how many activities can be 
accelerated to reduce risk and associated cost. In general, we have 
agreed with this concept as evidenced by a letter of intent to work the 
Department on this initiative that was signed on May 8th, 2002. We have 
also signed a letter of support for the Savannah River Site Performance 
Management Plan on May 22nd, 2003 with one very important exception.
    That exception deals directly with the management of high-level 
radioactive waste. As part of acceleration and cost reduction, the 
Department of Energy has proposed to directly dispose of approximately 
twenty million curies of high-level radioactive waste at the Savannah 
River Site. This is a significant change from previous decisions made 
by the Department of Energy to only leave residual amounts of high-
level radioactive waste on site. This proposal was made in accordance 
with DOE Order 435.1 through which Department of Energy has determined 
that this waste is no longer high-level radioactive waste and does not 
have to be ultimately dispositioned at a national repository as 
mandated by the Nuclear Waste Policy Act.
    As you are aware, a recent Federal District Court Ruling found that 
DOE Order 435.1 violated the Nuclear Waste Policy Act and declared the 
Order invalid. We, of course, believe this decision directly impacts 
any proposal by the Department of Energy to dispose, on-site, a portion 
of the high-level radioactive waste stored at the Savannah River Site. 
While we do not believe it is either technically or economically 
feasible to send every curie of high-level radioactive waste to a 
national repository, any proposal to permanently manage residuals of 
this waste on-site must be subject to full public debate and 
deliberation prior to any final decision. This debate and deliberation 
must address what is the acceptable amount of residuals to be managed 
on-site, how the long-term stewardship issues will be addressed, and 
the current direction from Congress that all waste of this nature must 
be permanently dispositioned at a national repository.
    Again, thank you for the opportunity to provide these comments. I 
look forward to answering any questions you may have.

    Mr. Greenwood. Thank you.
    The Chair recognizes himself for 10 minutes for 
questioning.
    Let me ask both of you. You were here during the previous 
discussion when we talked about the need to clarify the law, 
and it appears to me that it is probable that Congress will try 
to do just that. So my question is: What would your admonitions 
be to Congress with regard to clarifying the law? Do you 
support the idea of clarifying the law so that this waste--I 
think your testimony seemed to indicate that, but I would like 
you to focus on that.
    Mr. Michael Wilson. First of all, I think there is 
potentially a lot of jumping the gun going on in not yet fully 
interpreting the court decision. As I said, we had two reasons 
for going into the case as friends of the court. And we felt 
that a lot of the information and a lot of the resulting 
decision contained a lot of information that we had supplied to 
the judge.
    In our initial look, and I will make the usual statement 
here that I am not an attorney either and my attorneys, 
however, last week said that they felt there was enough room in 
this decision with their initial read that we can continue on 
our way with the intended course at Hanford. My admonition 
might be that rather than seek clarification from Congress, 
that first we seek clarification from the court. And go from 
there. We have not yet had a full meeting of the parties after 
the decision, and to my knowledge that's not going to take 
place until Monday. So the parties have yet to get--I mean the 
plaintiffs and friends have not yet gotten together to 
determine what the real meaning of the decision is among 
themselves.
    Mr. Greenwood. Clearly, the State of Washington is not 
trying to achieve the result that all of this waste has to be 
stored as high-level waste.
    Mr. Michael Wilson. Absolutely not.
    Mr. Greenwood. What is your understanding of the other 
plaintiffs? The Environmental Defense Fund want to achieve--the 
NRDC want to achieve that?
    Mr. Michael Wilson. I am not the Attorney General for the 
State, and I didn't represent the State of Washington. I wasn't 
part of the talks and so forth that went on as part of that. 
I'd rather not characterize their position myself and as to the 
other States, we have at least one of them here.
    Mr. Greenwood. But you do agree that your intention--you 
don't think that's how this thing should wind up.
    Mr. Michael Wilson. Our purpose in being in there was to 
protect our interests. And our interests were sort of on both 
sides of the issue. One is to prevent the Department of Energy 
from making wholesale declarations that waste could remain in 
tanks without being treated. And second, that we are able to 
carry on the proposed plan at Hanford, which is to separate the 
waste and send what would be the high-activity fraction to the 
repository. And we have long accepted the fact that a majority 
of this waste will be appropriately treated and stored at 
Hanford or disposed of.
    Mr. Greenwood. And that's the position of South Carolina as 
well?
    Mr. David Wilson. I'll agree with many of the comments that 
my colleague from the State of Washington has made. We too 
signed on as a friend of the court during the lawsuit for many 
of the same reasons. And I'll tell you that, as we move forward 
through this, either as reinterpretation of the Court's 
decision and clarifying that, or as Congress looks at this 
issue, the matter most important to the State of South Carolina 
is that the State be involved in the decisionmaking process. 
For us, that was the basic problem with Order 435.1, was that 
it left to the discretion solely of DOE in making those 
determinations without specific involvement from the States.
    Mr. Greenwood. Has this been a hot political issue, for 
instance, in gubernatorial races and State legislative races 
and congressional races?
    Mr. David Wilson. We're relatively new in a Governor's 
administration, so there are a lot of State budget issues that 
are high on the agenda at this point. But certainly this does 
receive attention.
    Mr. Greenwood. Hotter than radioactive waste?
    Mr. Mike Wilson, you framed your testimony with a statement 
in the beginning that some of the Hanford tank wastes have 
reached the groundwater and are heading toward the only salmon 
spawning beds left in the Columbia River. Is there scientific 
evidence that the Hanford tank waste has already harmed 
wildlife?
    Mr. Michael Wilson. Not to my knowledge that the tank waste 
has gotten that far. We have other wastes from the reactor 
areas that have entered the actual salmon spawning beds in 
what's called the Hanford Reach, which is the last free flowing 
stretch of the Columbia River that flows by and through the 
Hanford Reservation.
    Mr. Greenwood. Is the Department of Energy doing everything 
in its power to manage that?
    Mr. Michael Wilson. Lots of things being done in that area. 
This is particularly--not even a radioactive waste issue. It's 
a chemical or heavy metal problem with chromium that's entering 
the river. And there's lots of work being done right now to try 
to prevent that.
    Mr. Greenwood. You've heard DOE testify that it hopes to 
save billions with proposed changes in the way it treats and 
disposes of its high-level wastes. Do you have any concerns 
about these new accelerated initiatives, either of you?
    Mr. Michael Wilson. I'll just restate that I think the 
contracting method--last year at this time when I was here, I 
think I praised their new contracting methods also, and we've 
seen good results from that. I did raise the issue specific to 
giving incentives to contractors for the right thing. We've 
seen that given incentives, the contractors work toward those 
incentives. It is a psychological theory that when you give 
incentives, you get what you incentivize. So you have to be 
careful that you are putting the incentives on the right issue. 
And the issue that was raised earlier about closing tanks gives 
us some concern. They have put incentives on closing up to or 
around 26 tanks between now and 2006. Our concern is that 
Hanford has yet to close one tank, and we are in the process of 
talking about the process for doing that, that perhaps it's a 
little bit much to ask to close up to 26 tanks, and perhaps 
that those incentives could be placed elsewhere.
    Mr. Greenwood. Again, to you, Mr. Wilson of Washington. As 
you know, Hanford is building a vitrification facility to treat 
its low-activity waste fraction. However, other DOE sites in 
other countries have found grout to be a more economical 
solution to disposing of their low-activity waste. GAO has 
pointed out that DOE has not done a rigorous analysis to 
determine whether grout is a better and more economical 
alternative that allows safe disposal and meets scheduled 
dates. What are your States' concerns about using treatment 
technology such as grout other than vitrification to treat 
Hanford's low-level waste fraction?
    Mr. Michael Wilson. Well, several things. We have got a 
plant underway that is building vitrification capacity for low-
activity waste. We are in a position here in a number of areas 
of trying to balance our frustration with a decade of delay and 
in not pushing the Department of Energy to do something stupid. 
We have had a decade of experience with grout. In one of the 
earlier permutations of the treatment plant, we looked at grout 
and found that grout was an inadequate waste form to maintain 
the integrity of the waste over a long enough period of time. 
And as I mentioned, we are fully----
    Mr. Greenwood. When you say you found, what sort of 
scientific expertise was brought to bear to come to that 
conclusion?
    Mr. Michael Wilson. I have to get back with you on that. 
There were a number of radionuclides that weren't adequately 
maintained over a period of time.
    Mr. Greenwood. Would you submit to the committee that 
supporting documentation?
    Mr. Michael Wilson. Certainly. It goes back to earlier 
environmental impact statements and so forth over a long period 
of time. So we are not--so we have a vitrification plant under 
construction to deal with the low-activity waste. At the same 
time, we are working with the Department of Energy to look at 
alternative technologies, additional technologies for dealing 
with the low-activity waste should that--and should those prove 
to be as effective as glass in maintaining the integrity of the 
waste over a long enough period of time, we're open to looking 
at those also. I know there are some new grout formulations and 
also some different vitrification technologies now that look 
like they hold some promise.
    [The following was received for the record:]
         History of Grout as Waste Form for Hanford Tank Waste
                              white paper
                 washington state department of ecology
    A series of decisions resulted in Department of Energy (USDOE) and 
Washington State moving away from grout for immobilizing Low Activity 
(after pretreatment separations) portion of Hanford Tank Waste in the 
early 1990s.
    The decision to move from grout to vitrification for low activity 
waste was based on: technical risk and land use considerations, and on 
strong public resistance to what was perceived as a risky approach that 
could not be corrected once set in motion.

1) Technical: There were questions raised about the ability of the 
        grout formulation to solidify. Although grout has been used 
        around the world in treating low level waste, it was always 
        done in small containers; or in the case of Savannah River, a 
        series of relatively small pours. Hanford was going to use a 
        single pour of approximately 1.4 million gallons (approximately 
        1 million gallons of waste and 400,000 gallons of grout 
        formers). Whether a continuous pour could set up uniformly was 
        not clear. Several experts raised questions regarding the heat 
        of hydration, which might be affected by heat generated by 
        radioactive decay. If the grout might not set (solidify), then 
        the construction of very expensive grout vaults, capable of 
        holding liquid grout, would be required. This approach put a 
        high reliance on the engineered barriers in the short term when 
        the waste was liquid and in the long term for the long lived 
        radionuclides. Questions were also raised about the safe 
        retrieval of the grout once it was poured, should retrieval be 
        needed in the future.
2) Long Term Performance Assessment or Risk: USDOE's performance 
        assessment order required the long term performance assessment 
        for grout to be modeled based on the maximum contaminant 
        concentration for each constituent (presumably at a point of 
        compliance or at significant receptor(s)). This analysis 
        resulted in identification of three constituents that would 
        ultimately violate drinking water standards. The three 
        constituents (nitrate, Iodine-129, and Technetium-99) violated 
        drinking water standards before and after the 10,000 year 
        timeframe (Performance Assessment of Grouted Double Shell Tank 
        Waste Disposal at Hanford, 1995, WHC-SD-WM-EE-004 Rev. 1). In 
        combination this analysis raised the issue of technical 
        acceptability of grout as a long term waste form.
3) Land Use: Grout as a final waste form increases the volume to be 
        disposed significantly. The original grout program projected 44 
        vaults to contain the low activity portion of waste from 
        Hanford's 28 double shell tanks. In formulating the grout 
        program, USDOE assumed that the waste in the single shell tanks 
        would not have to be retrieved or treated. In 1993, when single 
        shell tank wastes were added to the retrieval and treatment 
        schedule, the number of vaults grew from 44 up to 200. This 
        meant the land consumed by grout disposal vaults would impact 
        large undisturbed areas. This land use impact became a major 
        concern for the Tribes, regional interest groups, and local 
        governments. These undisturbed areas represented significant 
        shrub steppe habitat and/or areas for future missions and 
        industrial development.
    Based on these concerns, the Hanford Waste Task Force (1993), a 
stakeholder advisory group, concluded (in Appendix F of the report) 
that ``Grout doesn't adequately protect public, workers and 
environment'' and that ``reduction of waste volume was an issue for 
grout'' since grout increases final waste form volume significantly. 
Recognizing this broad-based public concern about grout, and the 
potential for low activity waste vitrification at costs that appeared 
not greatly different from those for grout on a grand scale, Washington 
State opted for vitrification in negotiating a new set of milestones 
for tank waste treatment. In return, Washington State agreed to USDOE's 
desire to delay construction of the Hanford Waste Vitrification Plant 
(HWVP) for technical and budgetary reasons.
    In the early 1990s, USDOE's budgetary and scheduling assumptions 
made the costs of a grout program and to a low activity waste 
vitrification facility seem comparable. A recent (2003) report from 
Office of River Protection--USDOE to USDOE-HQ compared the cost of 
various options including an all vitrification option and an all grout 
option. This 2003 report shows that an all vitrification option is the 
most cost effective approach and that an all grout option would be one 
of the most costly approaches because of project impact costs 
associated with changing project direction and mitigating nitrate and 
Technetium impacts (Assessment of Low Activity Waste Treatment And 
Disposal Scenarios for the River Protection Project, Holton, L.K., et. 
al., April 14, 2003).
    Based on technical issues, cost, schedule, land use, and public 
concern, USDOE and the State of Washington agreed to a new baseline 
that replaced grout with vitrification for the low activity portion of 
Hanford tank waste. In return, USDOE was given a longer time (which was 
further extended in order to accommodate subsequent privatization 
initiatives) to begin treating Hanford's tank waste.
    More recently (2001-2003), Washington State has agreed to consider 
other waste forms to supplement the production of the Waste Treatment 
Plant (which includes the Low Activity Vitrification facility) in order 
to help move the end of treatment date closer to 2028 compared to 
2050s. This agreement has been based on the condition that any new 
waste form will need to perform as well as vitrified glass. That is, 
the waste form, which will remain near the land surface and the 
Columbia River in perpetuity, must contain the waste for as long as it 
is hazardous to human health and the environment, must be in some 
manner retrievable or correctable in the event of failure, and must not 
greatly multiply the volume of waste, and thus the land area required 
for disposal. Currently USDOE is evaluating three technologies that may 
augment the Waste Treatment Plant including Steam Reforming, 
Containerized Grout, and Bulk Vitrification. The State of Washington is 
engaged in the evaluation, and will carefully assess the results in 
terms of the previously stated criteria.

    Mr. Greenwood. Okay. My time has expired. The gentlelady 
from Colorado.
    Ms. DeGette. Thank you, Mr. Chairman.
    Mr. Michael Wilson, as I understood your testimony and also 
I think this was true of South Carolina, both of your States 
entered as an amicus curiae for the plaintiff--really a friend 
of the court brief that you filed. But what I heard you saying 
was the reason you entered in this suit--and this is to clarify 
a question that the chairman asked, too. It is not that you 
think that all of this waste should be characterized the same 
and sent to Yucca Mountain or similar facility, correct?
    Mr. Michael Wilson. That's correct.
    Ms. DeGette. What you were really concerned about, as you 
said, was that you wanted to make sure that the DOE did not--
you said two things you wanted to make sure that the DOE didn't 
mischaracterize the high-level waste and leave it lying around 
in tanks.
    Mr. Michael Wilson. That they don't go through some 
simplified internal process that doesn't include a treatment of 
the waste and declare it no longer high-level waste, so it 
could stay potentially in the tanks at Hanford.
    Ms. DeGette. And Mr. David Wilson, was that a similar 
concern that South Carolina had?
    Mr. David Wilson. I think that characterizes it very well.
    Ms. DeGette. Mr. Chairman, I was given a little sheet by 
the Natural Resources Defense Council. What they said is that 
they were hoping to have some testimony and sort of a statement 
by them. I ask unanimous consent to put that and also the court 
decision----
    Mr. Greenwood. Only reserve the right to reject just to 
give counsel an opportunity to look at that document.
    Ms. DeGette. It is a one-page statement of what their 
rationale for the lawsuit was. And I think the record would be 
complete if we put it in there. So we will give you a copy of 
it. This is the only copy I have. What they are saying in here 
is that what they were concerned about in the lawsuit is that 
they didn't want the DOE to reclassify high-level radioactive 
waste as incidental waste, which is the same concern you guys 
are expressing. You are both nodding. Would that be your 
understanding as well?
    Mr. Michael Wilson. Yes.
    Mr. David Wilson. Yes.
    Ms. DeGette. And so, I guess what I'm--I think we are kind 
of agreeing here which is that we don't want the DOE 
mischaracterizing high-level waste as low-level, so they don't 
have to treat it appropriately. But at the same time, we don't 
think that the law should mandate that once some of the waste 
is high-level everything has to be characterized that way and 
sent off to the facility. Would that be your understanding?
    Mr. David Wilson. Yes. Even though we agree as to how the 
waste is characterized, there is still the issue of how much 
remains onsite, because you can have quite a significant amount 
of quantities of radioactivity that is going to have to be 
managed for a very long time onsite. And, of course, that's a 
very big concern for us.
    Ms. DeGette. So you want to make sure that whatever statute 
that Congress enacts does not give the DOE the authority, the 
other direction to just leave high-level waste onsite. You want 
it correctly disposed of.
    Mr. David Wilson. That's correct.
    Mr. Michael Wilson. You use the word characterize, and I 
think one of our concerns is not just characterizing, but it's 
the treatment of the high-level waste. So once it is treated to 
remove the significant radionuclides, that that which is 
remaining could then be characterized as low-activity or some 
other kind of waste.
    Ms. DeGette. Now, this court decision, as I understand it, 
came out on July 2 of this month. Is that correct?
    Mr. Michael Wilson. I have heard that.
    Ms. DeGette. And you say the parties are planning to meet 
to talk about what the court decision meant and what next steps 
people might be taking. Is that right?
    Mr. Michael Wilson. As far as I know, there's a conference 
call.
    Ms. DeGette. Is your Attorney General also working on this 
in South Carolina?
    Mr. David Wilson. We're doing it through our Department, 
but yes, they'll be involved.
    Ms. DeGette. Do you know when that meeting might be taking 
place?
    Mr. Michael Wilson. Next week.
    Ms. DeGette. I want to shift gears for 1 second and ask Mr. 
Wilson of Washington, you heard the GAO, voice concern over the 
fact that DOE does not plan to construct an integrated-pilot-
scale testing facility prior to a full-scale facility. I am 
wondering if Washington has a position on that.
    Mr. Michael Wilson. And I'm back to this balanced position 
that we find ourselves in as regulators. Because, again, for 10 
years there has been delay, delay, delay and again, we don't 
want to be in the position of forcing them to do something 
stupid. So to a certain extent and then again, we're not the 
experts in this field, but we are told pretty much what Ms. 
Roberson talked about this morning that--I mean these 
technologies have never been combined perhaps in this type of 
facility, that individually many of the technologies have been 
developed up to and including commercial scale. So as we 
understand it, they think that they can do the job and we're on 
board with that.
    Ms. DeGette. I mean, do you have any concern that some of 
the problems that they had at Savannah River with the Intake 
Precipitator Project might be repeated?
    Mr. Michael Wilson. I'm just not that familiar with the 
specific individual technologies. I'll go back to what Mr. 
Walden said earlier. He was referring to the nerve gas plant in 
his district across the river in Boardman. And those were 
technologies that were well-developed and what he didn't say 
was that when they started working there, they had problems 
also. I think in any large chemical processing plant of this 
nature, and nuclear facility of this nature, that come 2000 and 
whenever, when they throw the switch, it's not going to work 
perfectly the first time, and that's why they have a ramp-up 
period of that time, and they'll work through the problem.
    Ms. DeGette. That's why I think the GAO is concerned that 
maybe they should do a pilot-scale testing facility instead of 
just some lab tests. Because, of course, if they throw the 
switch and there's big problems like at Savannah River, it 
could delay the whole project for an indeterminate amount of 
time. Does that give you concern?
    Mr. Michael Wilson. At Hanford almost all the waste 
treatment facilities that have been constructed out there have 
been first or one-of-a-kind or at least limited-production 
kinds of facilities, and there have been problems, and they 
work through them. This is bigger and the most complex plan to 
date, and, again, we are relying to a large extent on the 
expertise in place.
    Ms. DeGette. Mr. Chairman, I would just conclude by, again, 
renewing--I guess counsel has now reviewed the NRDC testimony. 
Renewing my request for insertion of that testimony and the 
court decision in the record.
    Mr. Greenwood. The Chair thanks the gentlelady and the 
Chair withdraws his reservation and without objection the 
statement of the Natural Resources Defense Council dated July 
17, 2003 will be a part of the record.
    I would like to clarify. I think the gentlelady may have 
misspoke or was misadvised, the NRDC did not request to testify 
at this hearing.
    Ms. DeGette. I apologize. I didn't mean to insinuate.
    Mr. Greenwood. We would have been delighted to have them 
testify, and if there are legislative hearings on a rewrite of 
the law, we would certainly invite their testimony and 
expertise.
    Ms. DeGette. I think it would be very useful not just to 
have the NRDC and other parties, but also to have some of the 
attorneys involved both for the Department and for the parties 
after they have their meeting next week, because I think we 
need to work very, very carefully as we draft additional 
legislation to make sure that we address the concerns expressed 
by the States here, but also that we bring some rationality to 
the law.
    Mr. Greenwood. And, of course, I am sure there will be 
legislative hearings, and Mr. Barton will be making those 
decisions.
    The Chair thanks the witnesses for testifying and the 
hearing is adjourned.
    [Whereupon, at 11:15 a.m., the subcommittee was adjourned.]
    [Additional material submitted for the record follows:]



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