This is the accessible text file for GAO report number GAO-08-840 
entitled 'Nuclear Material: DOE Needs to Take Action to Reduce Risks 
Before Processing Additional Nuclear Material at the Savannah River 
Site's H-Canyon' which was released on July 25, 2008.

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Report to the Subcommittee on Energy and Water Development, Committee 
on Appropriations, House of Representatives: 

United States Government Accountability Office: 
GAO: 

July 2008: 

Nuclear Material: 

DOE Needs to Take Action to Reduce Risks Before Processing Additional 
Nuclear Material at the Savannah River Site's H-Canyon: 

GAO-08-840: 

GAO Highlights: 

Highlights of GAO-08-840, a report to the Subcommittee on Energy and 
Water Development, Committee on Appropriations, House of 
Representatives. 

Why GAO Did This Study: 

During the Cold War, the Department of Energy (DOE) produced nuclear 
materials for nuclear weapons at its Savannah River Site (SRS) by 
dissolving highly radioactive spent nuclear fuel from reactors in a 
facility known as H-Canyon. DOE planned to end H-Canyon operations in 
2007 but now plans to continue H-Canyon operations until 2019 to 
process additional nuclear material. GAO was asked to (1) identify the 
types of nuclear materials DOE will process using H-Canyon and its 
associated costs of operation, (2) determine whether SRS's radioactive 
waste storage tanks and associated nuclear waste facilities are capable 
of handling the additional waste generated by H-Canyon, and (3) 
describe H-Canyon’s compliance with safety and environmental 
requirements. To conduct its work, GAO reviewed DOE’s plans to process 
nuclear material using H-Canyon and visited SRS to observe the canyon 
and associated radioactive waste treatment facilities. 

What GAO Found: 

DOE plans to process 23 metric tons of highly enriched uranium (HEU) 
and plutonium using H-Canyon; however, its cost estimate of $4.3 
billion to $4.6 billion to process these materials through 2019 does 
not include all associated costs. First, DOE may identify additional 
HEU and plutonium as suitable for processing using H-Canyon, which 
could delay H-Canyon’s planned 2019 shutdown and increase operational 
costs. Second, the estimate does not include the cost of storing and 
treating the waste generated by H-Canyon operations—approximately $253 
million according to DOE. 

SRS’s waste tanks are nearing capacity, and SRS cannot manage the 
projected waste from planned H-Canyon operations without critical 
enhancements. DOE is developing new technologies and building new 
facilities to meet these challenges. The most critical of these 
facilities—the Salt Waste Processing Facility—was originally scheduled 
to begin operating in 2009 but has been delayed twice and is now not 
projected to begin operations until as late as November 2013. If the 
facility is not completed on schedule, SRS will continue to face waste 
storage capacity challenges, which could affect the H-Canyon operating 
schedule. In addition, several potential events could significantly 
impede waste processing at SRS. For example, storage capacity could be 
reduced if critical equipment that reduces the amount of water volume 
in waste tanks malfunctions or if tank leaks develop. 

DOE has determined that H-Canyon is operating safely, and with minimal 
environmental impact, and DOE expects it will continue to do so in the 
future. However, DOE must complete further safety and environmental 
analyses prior to processing additional nuclear material using H-
Canyon. Some of these analyses have been delayed by as much as 2 years 
because SRS lacks sufficient technical staff to conduct them. If these 
delays persist, the processing of nuclear material using H-Canyon could 
be delayed. 

Photograph: H-Canyon at DOE’s Savannah River Site: 

[See PDF for image] 

Source: DOE. 

[End of figure] 

What GAO Recommends: 

GAO recommends that DOE (1) ensure that all of the HEU and plutonium 
that DOE identifies as suitable for processing using H-Canyon is 
included in the department’s plans, (2) develop a comprehensive cost 
estimate that includes all associated costs to operate the canyon, and 
(3) develop a plan to ensure sufficient staff are available to complete 
safety analyses in a timely manner. In its comments, DOE cited the 
actions that it is taking to address these recommendations. 

To view the full product, including the scope and methodology, click on 
[hyperlink, http://www.gao.gov/cgi-bin/getrpt?GAO-08-840]. For more 
information, contact Gene Aloise at (202) 512-3841 or aloisee@gao.gov. 

[End of section] 

Contents: 

Letter: 

Results in Brief: 

Background: 

DOE Has Not Determined the Complete Cost of Processing 23 Metric Tons 
of Highly Enriched Uranium and Plutonium in H-Canyon: 

More Radioactive Waste at SRS Will Be Generated as a Result of 
Continued H-Canyon Operations, Requiring Critical Technological 
Enhancements to the Site's Liquid Radioactive Waste Treatment System: 

DOE Has Taken Steps to Ensure the Continued Safe Operation of H-Canyon 
but Faces Challenges to Completing Safety and Environmental Analyses on 
Time: 

Conclusions: 

Recommendations for Executive Action: 

Agency Comments and Our Evaluation: 

Appendix I: Comments from the Department of Energy: 

Appendix II: GAO Contact and Staff Acknowledgments: 

Table: 

Table 1: Tank Farm Waste Sources: 

Figures: 

Figure 1: H-Canyon at DOE's Savannah River Site: 

Figure 2: Waste Components in SRS Storage Tanks as of March 2008: 

Figure 3: Breakdown of SRS Waste Tank Storage as of March 2008: 

Figure 4: Liquid Radioactive Waste Processing at SRS: 

Abbreviations: 

ARP/MCU: Actinide Removal Process/Modular Caustic-Side Solvent 
Extraction Unit: 

DDA: Deliquification, Dissolution, and Adjustment: 

DOE: Department of Energy: 

DWPF: Defense Waste Processing Facility: 

HEU: highly enriched uranium: 

LEU: low enriched uranium: 

NNSA: National Nuclear Security Administration: 

SRS: Savannah River Site: 

SWPF: Salt Waste Processing Facility: 

[End of section] 

United States Government Accountability Office: 
Washington, DC 20548: 

July 25, 2008: 

The Honorable Peter J. Visclosky: 
Chairman: 
The Honorable David L. Hobson: 
Ranking Member: 
Subcommittee on Energy and Water Development: 
Committee on Appropriations: 
House of Representatives: 

As demand for new nuclear weapons diminished following the end of the 
Cold War, the United States was faced with the need to dispose of 
nuclear materials left over from nuclear weapons production. When 
weapons were manufactured during the Cold War, the Department of 
Energy's (DOE) Savannah River Site (SRS) in South Carolina recovered 
nuclear materials, primarily highly enriched uranium (HEU) and 
plutonium for the U.S. nuclear weapons programs. It did so by 
dissolving highly radioactive spent nuclear fuel from the site's 
nuclear reactors in large, heavily shielded chemical separation 
facilities known as "canyons." These canyons used acids and other 
chemicals to extract HEU, plutonium, and other nuclear material from 
the fuel. Following the end of the Cold War, DOE began to use the two 
canyon facilities at SRS--F-Canyon and H-Canyon--to treat nuclear 
materials that were unstable and posed potential environmental, public 
safety, and health risks if left untreated. F-Canyon completed its 
mission in 2002 and has since shut down. As recently as 2004, DOE 
planned to end H-Canyon operations in 2007 following the completion of 
its mission. In 2006, however, DOE proposed continuing to operate H- 
Canyon until 2019 to process spent nuclear fuel from research reactors 
and enriched uranium and other materials from across DOE's nuclear 
weapons complex. DOE expects that processing these materials will cost 
several billion dollars. 

DOE's processing of this material in H-Canyon results in several 
potential benefits. First, it makes the material less usable in nuclear 
weapons and, therefore, may reduce associated security costs. For 
example, HEU recovered as a result of H-Canyon processing can be 
converted into low enriched uranium (LEU), which cannot be used in 
nuclear weapons but can be used as fuel in commercial nuclear power 
plants.[Footnote 1] Second, using H-Canyon allows DOE to further 
consolidate excess nuclear materials from multiple sites across the 
nuclear weapons complex and support the department's efforts to 
transform the complex into a smaller, safer, more secure, and more cost-
effective complex for the future. Third, using H-Canyon provides DOE 
with an opportunity to dispose of certain types of nuclear material 
that have no other currently defined means for permanent disposal. 
Specifically, certain nuclear materials at different DOE sites are in 
forms that cannot readily be disposed of at existing disposal 
locations. When these materials are processed in H-Canyon, the HEU is 
recovered, and the nuclear materials are converted into a form that can 
be permanently disposed of in the same way and in the same facilities 
as other radioactive waste at SRS. 

Although the Congress requires DOE to keep H-Canyon operating, 
continued operations present several potential challenges to the 
department.[Footnote 2] First, H-Canyon costs approximately $220 
million annually to operate in fiscal year 2006 dollars. Second, 
concerns have been raised about whether SRS's liquid radioactive waste 
storage tanks and treatment facilities have enough capacity for the 
additional waste generated by extended H-Canyon operations. Third, 
because H-Canyon processes highly radioactive materials, a catastrophic 
accident at H-Canyon could result in serious environmental, safety, and 
health consequences. H-Canyon is more than 50 years old and, therefore, 
has a higher risk of major equipment or other failures that could 
impair its operations. 

In this context, you asked that we (1) identify the types of nuclear 
materials DOE will process at H-Canyon and the associated costs of 
continuing H-Canyon operations through 2019, (2) determine whether 
SRS's radioactive waste storage tanks and associated nuclear waste 
facilities are capable of handling the additional waste generated from 
continued H-Canyon operations, and (3) describe H-Canyon compliance 
with current safety and environmental requirements. 

To identify the types of nuclear materials that DOE will process using 
H-Canyon and the potential costs, we reviewed DOE's nuclear material 
disposition plans for HEU and plutonium. We also reviewed DOE's project 
management guidance, which describes how DOE estimates costs, 
determines milestones, and monitors project performance. We also 
interviewed officials with DOE's Office of Environmental Management. In 
addition, we spoke with officials from the National Nuclear Security 
Administration (NNSA), a separately organized agency within DOE that is 
in charge of the day-to-day management of many of the nuclear materials 
the department plans to process in H-Canyon. We also interviewed two 
independent peer reviewers the department used to review its plans and 
officials with DOE's Office of Inspector General. To determine whether 
SRS's radioactive waste storage tanks and associated nuclear waste 
facilities are capable of handing additional waste, we reviewed SRS's 
waste management plans and risk management analyses, as well as 
business plans and integrated project management documents that outline 
the approach SRS officials use to meet canyon processing and waste 
management goals. We also visited SRS to observe H-Canyon and its 
supporting infrastructure, as well as the site's radioactive waste 
management facilities. To describe whether H-Canyon complies with 
safety and environmental requirements, we reviewed DOE regulations, 
orders, and guidance outlining the department's safety standards. We 
also examined safety analyses and implementation plans for safety 
improvements prepared by SRS officials. In addition, we reviewed 
reports prepared by, and interviewed officials with, the Defense 
Nuclear Facilities Safety Board (Safety Board), an independent federal 
agency established by the Congress in 1988 to provide advice and 
recommendations to the Secretary of Energy regarding public health and 
safety issues at DOE's defense nuclear facilities. 

We conducted this performance audit from October 2007 to July 2008 in 
accordance with generally accepted government auditing standards. These 
standards require that we plan and perform the audit to obtain 
sufficient, appropriate evidence to provide a reasonable basis for our 
findings and conclusions based on our audit objectives. We believe that 
the evidence obtained provides a reasonable basis for our findings and 
conclusions based on our audit objectives. 

Results in Brief: 

DOE plans to process 23 metric tons of HEU and plutonium at H-Canyon, 
but its cost estimate for processing this material does not include all 
associated costs. Nuclear materials included in DOE's plans consist of: 

* approximately 19,500 spent nuclear fuel assemblies containing about 
13.5 metric tons of HEU from domestic and foreign research and test 
reactors, 

* approximately 7.5 metric tons of various HEU materials currently 
stored at five DOE facilities across the nuclear weapons complex, and: 

* approximately 2 metric tons of plutonium. 

DOE estimates it will cost approximately $4.3 billion to $4.6 billion 
to process these materials through 2019. However, this estimate does 
not include several costs DOE expects will be associated with canyon 
operations. According to DOE and NNSA officials, more HEU and plutonium 
may be identified as suitable for processing using H-Canyon, which 
could delay its shutdown and increase its operational costs. In 
addition, the estimate does not include the cost of storing and 
treating the waste generated by H-Canyon operations through 2019-- 
approximately $253 million according to DOE. 

SRS's waste tank farms are nearing capacity, and SRS cannot manage the 
projected waste from planned H-Canyon operations through 2019 without 
critical enhancements. DOE is developing new technologies and building 
new facilities to meet these challenges. The most critical of these 
facilities--the Salt Waste Processing Facility (SWPF)--will provide the 
additional tank space needed to ensure continued SRS waste processing 
operations. The SWPF, originally scheduled to begin operating in 2009, 
has been delayed because of design concerns and is now projected to 
begin operation between September 2012 and November 2013. If the 
facility is not completed on schedule, SRS will continue to face waste 
storage capacity challenges, which could affect the H-Canyon operating 
schedule. Before the SWPF begins operating, SRS is working to optimize 
H-Canyon operations to minimize the canyon's impact on the waste 
storage tanks. For example, since 2007, SRS has reduced the amount of 
waste flowing into SRS's storage tanks from H-Canyon by approximately 
450,000 gallons. Despite these measures, several potential events or 
waste management risks could significantly impede waste processing at 
SRS. For example, storage capacity could be reduced if critical 
equipment that reduces the amount of water in the waste tanks 
malfunctions or if tank leaks develop. 

DOE has determined that H-Canyon is operating safely and with minimal 
environmental impact, and DOE expects it will continue to do so in the 
future. H-Canyon must comply with a variety of nuclear safety 
requirements to protect workers, the public, and the environment from 
any consequences associated with an accident at the facility. H-Canyon 
is routinely reviewed and inspected for compliance with these 
requirements. DOE has determined through safety and environmental 
reviews and inspections that H-Canyon can continue to operate without 
endangering the health and safety of the public, the workers, or the 
environment. According to DOE officials, H-Canyon continues to pass all 
required inspections. Furthermore, DOE officials point to the 
facility's history of operating for nearly 50 years with no serious 
radiation-related accidents. The department has also taken several 
steps to ensure the continued safe operations of the canyon, including 
installing new safety equipment and updating H-Canyon's standard 
operating procedures to comply with revised DOE regulations and safety 
standards. However, DOE must complete further safety and environmental 
analyses prior to processing additional nuclear material using H- 
Canyon. Some of these analyses have been delayed by as much as 2 years 
because SRS lacks sufficient technical staff to conduct them. If these 
delays persist, the processing of nuclear material using H-Canyon could 
be delayed. 

We are making a series of recommendations to DOE to develop a more 
complete, accurate estimate of all associated costs for processing the 
materials it expects H-Canyon to handle and to complete safety analyses 
in a timely manner to prevent delays in H-Canyon operations. We also 
provided DOE with a draft of this report for its review and comment. In 
its written comments, DOE cited the actions that are underway or that 
it plans to take to address the report's recommendations. 

Background: 

H-Canyon is one of two chemical separation facilities constructed at 
SRS during the early 1950s to recover HEU, plutonium, and other nuclear 
material from nuclear fuel irradiated in SRS reactors for the U.S. 
nuclear weapons program. (See fig. 1.) With the end of the Cold War, 
nuclear material processing at the canyons was phased out, but some 
nuclear materials that had been introduced into the processing line at 
the canyons were left in place when DOE decided to cease canyon 
operations in 1992. In response to studies conducted by the department 
and by the Safety Board showing the potentially significant health, 
safety, and environmental risks posed by these unstable materials, DOE 
returned F and H-Canyons to service, in 1995 and 1997, respectively, to 
address these risks. 

Figure 1: H-Canyon at DOE's Savannah River Site: 

[See PDF for image] 

Photograph of H-Canyon at DOE's Savannah River Site. 

Source: DOE. 

[End of figure] 

The end of nuclear weapons production also left a significant amount of 
nuclear materials at SRS and other DOE sites without a means of 
permanent disposal. Among these materials are spent nuclear fuel rods 
from domestic and foreign research and test reactors. DOE and its 
predecessor agencies provided nuclear fuel to these reactors. In some 
cases, this fuel contained HEU. Since 1996, DOE has had a program to 
return U.S.-origin HEU in foreign research reactor fuel to the United 
States. These spent fuel rods are currently stored at SRS in water- 
filled pools. The water both cools the fuel rods and provides shielding 
from the radiation that they emit. Since the 1990s, DOE has had three 
different strategies for disposing of this material. DOE initially 
planned to develop a new technology--known as "melt-and-dilute"--to 
convert the material into a form that would render it unusable in 
nuclear weapons. Because of budget shortfalls and risks associated with 
DOE research and development for this approach, DOE abandoned this 
effort in 2002. Next, DOE considered removing the rods from the pools, 
drying them, packaging them in storage containers, and storing the 
containers at SRS until they could be disposed of at DOE's planned 
permanent geological repository at Yucca Mountain. Now DOE plans to 
process this spent fuel in H-Canyon, which is consistent with legal 
requirements to keep the canyon operating. 

In addition, DOE has identified other nuclear materials that lack 
options for disposal but that could also be processed using H-Canyon. 
For example, DOE stores about 50 metric tons of plutonium that the 
United States no longer needs for nuclear weapons. The majority is in 
the form of pits (the spherical core of a nuclear weapon), clean metal, 
and oxides while the remainder is in nonpit forms such as contaminated 
metal, oxides, solutions, and residues remaining from the nuclear 
weapons production process.[Footnote 3] DOE plans to dispose of the 
surplus plutonium that is in pit, clean metal, and oxide forms by 
fabricating it into mixed uranium and plutonium oxide fuel that can be 
used in commercial nuclear power plants. This process will take place 
in a new Mixed-Oxide Fuel Fabrication Facility that is currently under 
construction at SRS. Some of DOE's nonpit plutonium, however, is not 
suitable to be converted into mixed-oxide fuel. Although final 
decisions have not been made, DOE's current plans call for some of this 
nonpit plutonium to be fabricated into mixed-oxide fuel and some to be 
prepared for permanent disposition through vitrification--a process 
that would stabilize the plutonium by mixing it with molten glass and 
then pouring it into small metal canisters where it hardens. The 
smaller canisters containing vitrified plutonium would then be placed 
into larger canisters, which would then be filled with radioactive 
waste. Plutonium vitrification would take place at another facility DOE 
plans to construct at SRS. A smaller amount of plutonium, however, is 
unsuitable to be processed using either of these methods because it 
does not meet the technical requirements of these facilities. DOE plans 
to process this plutonium using H-Canyon. 

The canyon operations produce radioactive waste that is stored in a 
series of underground tanks at SRS known as the F and H Area Tank 
Farms. In total, there are 51 tanks on these farms that contain 
approximately 36.5 million gallons of radioactive waste. Waste has been 
removed from 2 of these tanks, and the tanks have been operationally 
closed, leaving 49 tanks still in service. Radioactive waste generally 
comes in a variety of physical forms and layers inside the underground 
tanks, depending upon the physical and chemical properties of the waste 
components. As figure 2 shows, the waste in the tanks takes the 
following three main forms: 

* Sludge: The denser, water insoluble components of the waste generally 
settle to the bottom of the tank to form a thick layer known as sludge, 
which has the consistency of peanut butter. Although sludge is only 8 
percent of the total volume of the tank waste at SRS, it has about 46 
percent of the tanks' total radioactivity. 

* Saltcake: Above the sludge may be water-soluble components such as 
sodium salts that crystallize or solidify out of the waste solution to 
form a moist sandlike material called saltcake. 

* Salt supernate: Above or between the denser layers may be liquids 
comprising water and dissolved salts that is called supernate. This 
represents about 50 percent of both the total volume and total 
radioactivity in the tanks. 

Figure 2: Waste Components in SRS Storage Tanks as of March 2008: 

[See PDF for image] 

This figure contains two pie-charts depicting the following data: 

Percentage of total volume by waste type: 
Salt supernate: 49%; 
Saltcake: 43%; 
Sludge: 8%; 
Total: 36.5 million gallons. 

Percentage of total radioactivity by waste type: 
Salt supernate: 51%; 
Sludge: 46%; 
Saltcake: 3%; 
Total: 397 million curies. 

Source: DOE. 

Note: Radioactivity is measured in curies--the unit of measurement most 
commonly used in the United States. The corresponding international 
standard unit, the Bequerel (Bq) is the activity equal to one 
radioactive disintegration per second. One Bq=2.7 X 10-11 curies. 

[End of figure] 

SRS uses different methods to stabilize the waste and prepare it for 
permanent disposal. In the case of sludge, SRS stabilizes the material 
through vitrification at SRS's Defense Waste Processing Facility 
(DWPF). Canisters of vitrified radioactive waste produced at DWPF are 
stored at SRS for future disposition at DOE's planned permanent 
geological repository at Yucca Mountain, in Nevada. Sludge processing 
also produces significant amounts of low-radioactivity waste, called 
"DWPF recycle," that is returned to the SRS tank farms for storage. In 
fact, DWPF recycle makes up the largest portion of liquid waste added 
to the tank farms annually. 

Because of the large volumes of lower-radioactivity saltcake and salt 
supernate (known collectively as "salt waste") stored at SRS, glass 
vitrification of all of this waste without reducing its volume would 
produce too many canisters to be disposed of at the Yucca Mountain 
facility and would inappropriately use the facility to dispose of low- 
level waste. Therefore, SRS is constructing facilities to separate 
higher radioactivity waste from the remainder of the lower activity 
waste. One facility, the SWPF, will separate the higher radioactivity 
waste in the salt waste from the low radioactivity waste. In the 
interim, before the SWPF is constructed, DOE is using three interim 
processes to separate the lower-radioactivity waste. The higher- 
radioactivity waste will then be mixed with sludge for vitrification at 
the DWPF. The remaining low-radioactivity waste will be stabilized by 
combining it with cement at another SRS facility called the Saltstone 
Facility. This mixture, called grout, will then be permanently disposed 
of at SRS in a series of on-site vaults at the Saltstone Facility. 

DOE Has Not Determined the Complete Cost of Processing 23 Metric Tons 
of Highly Enriched Uranium and Plutonium in H-Canyon: 

DOE currently plans to process 23 metric tons of HEU and plutonium 
using H-Canyon, but, according to DOE and NNSA officials, it is likely 
that more HEU and plutonium will be identified as suitable for 
processing using the canyon. DOE has estimated that processing the 23 
metric tons of nuclear material in its current plans will cost 
approximately $4.3 billion to $4.6 billion through 2019. However, this 
cost estimate is incomplete. For example, the estimate does not include 
the costs of storing and treating the waste generated by H-Canyon 
operations. According to DOE officials, it will cost approximately $253 
million to process the liquid radioactive waste expected to be produced 
as a result of H-Canyon operations. 

DOE Is Likely to Identify Other Nuclear Material Needing Processing in 
H-Canyon, Making the Project More Costly and Possibly Delaying H- 
Canyon's Shutdown: 

DOE plans to process 23 metric tons of HEU and plutonium at H-Canyon. 
The following three categories of weapons-usable HEU and plutonium 
material are included in DOE's plans: 

* Approximately 19,500 spent nuclear fuel assemblies containing 13.5 
metric tons of weapons-usable HEU from domestic and foreign research 
and test reactors. This spent fuel consists of irradiated aluminum-clad 
HEU and LEU fuel, most of which is currently stored at either SRS or 
Idaho National Laboratory. 

* Approximately 7.5 metric tons of various weapons-usable HEU materials 
DOE had used for research and development that are currently stored at 
NNSA's Y-12 National Security Complex in Tennessee, Los Alamos National 
Laboratory in New Mexico, Lawrence Livermore National Laboratory in 
California, Sandia National Laboratory in New Mexico, and Idaho 
National Laboratory. 

* Approximately 2 metric tons of nonpit plutonium currently stored at 
SRS, some of which cannot be disposed of using either the Mixed-Oxide 
Fuel Fabrication Facility or the proposed plutonium vitrification 
facility. 

HEU recovered from H-Canyon will be blended with natural uranium to 
produce LEU that can be used as fuel in the Tennessee Valley 
Authority's commercial nuclear power plants. According to a 2007 DOE 
estimate, sale of this uranium to the Tennessee Valley Authority will 
provide $481 million in revenues to the U.S. Treasury. However, this 
estimate is subject to great variation because of volatility in the 
price of uranium. Plutonium processed in H-Canyon will not be 
recovered. Instead, it will be introduced into SRS's liquid radioactive 
waste management system. Processing this HEU and plutonium reduces the 
risks associated with storage of such materials at multiple sites, 
helps reduce storage and security costs, and furthers nuclear non- 
proliferation objectives. 

Beyond the 23 metric tons of HEU and plutonium DOE has identified for 
processing using H-Canyon, depending on future decisions, DOE and NNSA 
officials told us they may identify additional plutonium that is 
suitable to be processed using H-Canyon. Specifically, these additional 
materials are likely to include an extra 3 metric tons of plutonium 
that was going to be processed for final disposal at SRS's proposed 
plutonium vitrification facility, according to DOE and SRS officials. 
Although the addition of this plutonium to the H-Canyon processing plan 
is unlikely to delay the canyon's planned shutdown, it will increase 
the canyon's operational costs. According to DOE officials, if this 
plutonium is added, one of H-Canyon's processing lines --the HB-Line-- 
will have to continue operating beyond its currently planned shutdown 
date. DOE originally estimated to have completed HB-Line operations in 
2014. However, the HB-Line will need to continue operating until at 
least 2019 at a cost of approximately $60 million per year if H-Canyon 
were to be used to process additional plutonium beyond that already 
planned. DOE officials noted that the costs of operating HB-Line 
between 2014 and 2019 was included in their original $4.3 to $4.6 
billion cost estimate. However, they also acknowledged that between 
$240 and $300 million in H-Canyon costs could be saved by not 
processing this additional 3 metric tons of plutonium using H-Canyon. 

Other nuclear materials may be identified for processing using H- 
Canyon, further extending the canyon's operations. In October 2007, DOE 
authorized NNSA to review whether additional quantities of nuclear 
material from foreign countries could be recovered for disposition at 
DOE sites. For example, DOE and NNSA officials told us that more spent 
nuclear fuel, HEU materials, and plutonium still stored at foreign 
research and test reactors may be suitable for processing using H- 
Canyon. Specifically, NNSA has identified approximately 1,000 kilograms 
of HEU and approximately 50 kilograms of plutonium that potentially 
could be returned to the United States. If these materials are brought 
to the United States, DOE is considering adding them to the scope of 
materials included in the H-Canyon processing plan, which may delay the 
canyon's planned shutdown. In addition, according to DOE officials, 
other materials currently stored at DOE facilities might be added to 
DOE's plan. For example, DOE might add HEU and/or plutonium currently 
stored at DOE research facilities that are no longer in use. 

DOE's Estimate for Processing Nuclear Material Using H-Canyon Is 
Incomplete: 

DOE estimates that it will cost between approximately $4.3 billion and 
$4.6 billion to process 23 metric tons of HEU and plutonium using H- 
Canyon. However, DOE's cost estimate for processing nuclear material at 
H-Canyon does not include all of the costs associated with continued H- 
Canyon operations. Most notably, the cost of storing and treating the 
waste generated by H-Canyon operations is not included in DOE's 
estimate. 

H-Canyon produces up to approximately 300,000 gallons of liquid 
radioactive waste annually, which is added to SRS's tank farms for 
storage and must eventually be treated using SRS's liquid waste 
processing facilities. Processing this waste will increase the amount 
of time that the radioactive liquid waste facilities are required to 
operate, which increases the cost for SRS liquid waste system life 
cycle cost. Because DOE's estimate did not include these costs, we 
asked DOE to estimate the additional costs of storing and treating the 
waste generated by the department's plans to process 23 metric tons of 
HEU and plutonium using H-Canyon. In response, DOE estimated that it 
will cost approximately $253 million to store and treat the additional 
radioactive waste resulting from H-Canyon's operations through 2019. 
DOE estimated some of these costs to include: 

* approximately $40 million to store the additional radioactive waste 
produced by H-Canyon in the SRS tank farms; 

* approximately $25 million to operate the SWPF for the additional 6 
months DOE estimates will be necessary to separate higher and low 
radioactivity wastes in the additional salt waste that will be produced 
by H-Canyon; 

* approximately $140 million to treat the additional higher 
radioactivity waste using the DWPF;[Footnote 4] and: 

* approximately $30 million to treat and dispose of the additional low 
radioactivity waste at the Saltstone Facility.[Footnote 5] 

More Radioactive Waste at SRS Will Be Generated as a Result of 
Continued H-Canyon Operations, Requiring Critical Technological 
Enhancements to the Site's Liquid Radioactive Waste Treatment System: 

Although H-Canyon processing produces a relatively small portion of 
SRS's liquid radioactive wastes, SRS storage tanks are nearing capacity 
and do not currently have the space necessary to store all of the waste 
H-Canyon will produce through 2019. DOE must modify current facilities 
and develop new technologies to successfully store and treat all 
radioactive waste at SRS. Certain elements of DOE's SRS waste 
management plan, such as the construction of the SWPF, have faced 
delays. Furthermore, despite DOE efforts to monitor and mitigate risks, 
a number of events could potentially disrupt planned waste management 
activities at SRS. 

Continued H-Canyon Operations Will Add Waste to the SRS Tank Farms, 
Which Are Already Nearing Capacity: 

More than 140 million gallons of radioactive waste have been produced 
at SRS since canyon operations began in the 1950s. Fifty-one storage 
tanks were constructed at SRS to hold these waste products; 49 of these 
tanks remain in service, providing approximately 41 million gallons of 
storage capacity. Currently, approximately 36.5 million gallons of 
radioactive waste are stored in these tanks. Another 1.3 million 
gallons of space is kept open as contingency space for use during an 
emergency, and 1.9 million gallons remains available as space used to 
prepare waste for processing. As a result, only 1.3 million gallons of 
space remain as usable space for additional waste storage. Figure 3 
shows how tank space is used at SRS. 

Figure 3: Breakdown of SRS Waste Tank Storage as of March 2008: 

[See PDF for image] 

This figure is a pie-cart depicting the following data: 

Breakdown of SRS Waste Tank Storage as of March 2008 (millions of 
gallons): 
Salt supernate: 16.9 million; 
Saltcake: 16.6 million; 
Sludge: 3 million; 
Processing space: 1.9 million; 
Contingency space: 1.3 million; 
Usable space: 1.3 million. 

Source: DOE. 

[End of figure] 

Waste disposition activities must be meticulously planned and scheduled 
to maximize use of the small amount of available tank space. H-Canyon 
operations contribute up to 300,000 gallons of liquid radioactive waste 
annually to the tanks. In addition, approximately 1.5 million gallons 
of radioactive waste is added per year as a result of SRS waste 
processing activities to close waste storage tanks. Specifically, 
closing tanks requires the removal of radioactive waste stored in the 
tanks by adding water to redissolve saltcake or to prepare insoluble 
sludge for transfer to another tank or waste processing facility. 
Adding this water, however, reduces the amount of space available for 
additional liquid radioactive waste. Other salt removal operations 
result in another 1.5 million gallons of waste flowing into the tanks 
annually. Furthermore, the vitrification process used at DWPF produces 
the most significant annual inflows of waste to the tank farms; 
approximately 2 million gallons of DWPF recycle annually. Table 1 
details the annual liquid inflows to SRS's tank farms. 

Table 1: Tank Farm Waste Sources: 

Source: H-Canyon; 
Approximate annual volume: 0.3 million gallons. 

Source: Sludge washing; 
Approximate annual volume: 1 million gallons. 

Source: Salt removal activities; 
Approximate annual volume: 1.5 million gallons. 

Source: Tank closure activities; 
Approximate annual volume: 1.5 million gallons. 

Source: DWPF recycle; 
Approximate annual volume: 2 million gallons. 

Source: DOE. 

[End of table] 

More liquid radioactive waste is generated annually than SRS's tanks 
can store. However, because water makes up a portion of the liquid 
radioactive waste, SRS uses evaporators--heated tanks that evaporate 
water from waste material--to conserve tank space. Three evaporator 
systems are currently operating at SRS. One evaporator--the 2H 
evaporator--is used solely to reduce the quantity of DWPF recycle 
entering the tanks while two other evaporators--the 2F and 3H 
evaporators--are used for H-Canyon waste and other waste processing 
activities. Operation of these evaporators allows SRS to successfully 
manage the inflows of liquid radioactive waste in the limited space 
available in the tanks. 

DOE Must Modify Its Waste Management System to Deploy New Technologies 
in Order to Successfully Treat SRS's Liquid Radioactive Waste: 

DOE is taking a number of steps to ensure the availability of storage 
tank space for continued waste processing and H-Canyon operations. 
Critical among these initiatives is development of salt waste 
processing technologies that will significantly reduce the amount of 
salt waste stored in SRS tank farms. The most important of these is the 
SWPF. H-Canyon and waste management staff are also working to minimize 
the amount of liquid radioactive waste transferred to the tank farms by 
changing operating procedures and redirecting this waste. Nevertheless, 
DOE must continue to manage several potential risks to ensure 
uninterrupted H-Canyon and SRS waste management operations. 

DOE Has Developed Plans for Processing Salt Waste: 

DOE plans to process the majority of SRS's salt waste using the yet to 
be constructed SWPF. Before SWPF begins operations, however, two other 
facilities currently operate at SRS that provide interim salt waste 
processing capability. These facilities are intended to provide the 
necessary tank space to support H-Canyon operations, tank closure 
activities, and DWPF operations. Specifically, these interim facilities 
are the following: 

* The Deliquification, Dissolution, and Adjustment (DDA) facility, 
which began operation in March 2007 and had treated 1.35 million 
gallons of salt waste through April 2008. This technology mixes 
saltcake with low radioactivity waste and transfers it to the Saltstone 
Facility for processing into grout. According to DOE officials, the DDA 
facility will process another 800,000 gallons of waste before it 
completes its mission in 2009. 

* The Actinide Removal Process/Modular Caustic-Side Solvent Extraction 
Unit (ARP/MCU) is a small-scale version of the permanent SWPF, 
according to DOE officials. In May 2008, DOE began operating the ARP/ 
MCU. The facility will process approximately 1.2 million gallons of 
salt waste per year until SWPF becomes operational. 

In the long term, DOE describes SWPF as an essential capability to 
process salt waste at SRS and increase the amount of tank space 
available for continued operations. Using the same technology as the 
ARP/MCU facility, SWPF is expected to process 6 million gallons of salt 
waste each year when fully operational and, in total, treat 
approximately 90 percent of the salt waste at SRS. SWPF is expected to 
operate through 2030; however, this date may change based on 
adjustments in waste volumes. Figure 4 illustrates SRS's liquid 
radioactive waste processing system. 

Figure 4: Liquid Radioactive Waste Processing at SRS: 

[See PDF for image] 

This figure is an illustration of liquid radioactive waste processing 
at SRS, as follows: 

H-Canyon Facility: 

* H-Canyon waste goes to SRS tank farms; 
* Sludge goes from SRS tank farms to DWPF; 
* DWPF recycled material goes back to SRS tank farms; 
* DWPF sends vitrified high-level waste to high-level waste repository 
at Yucca Mountain (available no earlier than 2017); 
* SRA tank farms send Salt waste (high-activity waste) to DDA (2007-
2009); ARP/MCU (2008-2013); SWPF (2013-2030); 
* DDA, ARP/MCU, SWPF send low-activity waste to Saltstone facility; 
* Saltstone facility sends low-activity waste to Saltstone vaults. 

Source: DOE. 

[End of figure] 

Design of the SWPF facility began in January 2004, and the facility was 
originally scheduled for completion in 2009. However, the project has 
been delayed twice, substantially delaying its completion. In November 
2005, the Safety Board reviewed the plans for the facility and 
suggested that the SWPF be designed to meet more robust construction 
specifications than originally planned. To meet these more stringent 
specifications, the facility was redesigned, which resulted in 
extending the facility's completion date to 2011. More recently, a 
change in construction seismic standards forced another delay, 
resulting in a revised estimated completion date of between September 
2012 and November 2013. Additionally, DOE is in the process of 
preparing a existing waste storage tank that will be used to store 
materials being prepared for processing at SWPF. DOE is having 
challenges finding a contractor that can perform this work within 
budget. Failure to prepare this tank on schedule could negatively 
impact SRS waste management activities by reducing the volume of salt 
waste SWPF would be able to process when it begins operation. 

DOE Is Undertaking Initiatives to Minimize H-Canyon Waste: 

DOE is developing ways to reduce the amount of liquid radioactive waste 
that H-Canyon contributes to SRS's tank farms annually. For example, to 
neutralize the acidic waste from H-Canyon so that the waste will not 
corrode tank linings, DOE adds a material called "caustic" before the 
liquid waste is transferred to the tanks. Adding caustic, however, 
increases the volume of waste H-Canyon generates. DOE has determined a 
way to reduce the quantity of caustic added while still ensuring the 
waste does not cause corrosion in the tanks. This, in turn, has reduced 
the volume of waste H-Canyon contributes to the tank farms. In 
addition, piping changes at the canyon will allow the separation of 
high radioactivity and low radioactivity wastes, allowing the low 
radioactivity waste to bypass the tank farms altogether. Low 
radioactivity waste will be sent directly to SRS's Saltstone Production 
Facility for disposal rather than to the tank farm as has been done in 
the past. According to a DOE official, waste minimization efforts 
implemented at SRS have reduced high radioactivity waste production by 
450,000 gallons through April 2008. Finally, DOE plans to first process 
approximately 7.5 metric tons of HEU from other nuclear complex 
facilities and a portion of the approximately 2 metric tons of 
plutonium before processing the approximately 13.5 metric tons of spent 
nuclear fuel because the HEU materials and plutonium generate less 
radioactive waste than processing spent nuclear fuel. In 2010, once 
additional tank space is available through waste minimization 
activities and/or salt waste processing, DOE plans to start processing 
spent nuclear fuel at H-Canyon. 

DOE Could Still Face Delays in Waste Management Operations: 

Despite efforts to control the amount of liquid waste, DOE faces a 
number of potential obstacles that could reduce the tank space and 
potentially delay waste management operations. For example, 
insufficient tank space continues to be a high risk that DOE must 
monitor. As discussed, SRS uses evaporators to reduce the amount of 
water in the tanks to conserve tank space. SRS's 2007 Life-cycle Liquid 
Waste Disposition System Plan outlines how an unanticipated extended 
outage of certain evaporator systems could delay DWPF operations, tank 
closure activities, and H-Canyon operations.[Footnote 6] According to 
the risk management plan for SRS's liquid radioactive waste management 
system, the 2H evaporator system that reduces the amount of DWPF 
recycle in the tanks may encounter problems that could negatively 
affect tank space availability. The risk management plan indicates that 
malfunctions in this evaporator could delay waste processing activities 
for up to 1 year at a cost of $550 million. A similar risk has been 
noted for the 2F and 3H evaporators that support, among other things, H-
Canyon operations, but this risk has been deemed less likely to occur 
and to have less significant consequences for waste management 
operations. 

One of the highest risks that DOE must manage is the potential for tank 
leaks. While DOE considers a leak that will require the use of tank 
farm contingency space unlikely, 12 tanks without secondary containment 
have a history of leakage.[Footnote 7] Sufficient liquid waste has been 
removed from these tanks so that there are currently no active leak 
sites. Although DOE considers the likelihood of a new tank leak of high 
radioactivity waste to be low, the potentially severe impact of such a 
leak requires DOE to monitor it as a high risk. A tank leak would 
require DOE to use most of the available contingency space in the tank 
farm system and would complicate transfers necessary for future waste 
processing. If a leak occurred, waste management operations would cease 
immediately until the leak and its implications are understood, and new 
contingency space became available. Such a situation, though improbable 
because DOE has removed sufficient liquid waste from tanks without 
secondary containment, would likely result in a delay of approximately 
5 years to the liquid waste stabilization and disposition activities 
and cost approximately $2.25 billion, according to DOE's plans. 

DOE Has Taken Steps to Ensure the Continued Safe Operation of H-Canyon 
but Faces Challenges to Completing Safety and Environmental Analyses on 
Time: 

H-Canyon must comply with a variety of nuclear safety requirements to 
protect workers, the public, and the environment from any consequences 
associated with an accident at the facility. DOE has determined that H- 
Canyon complies with current safety standards, and the department has 
taken several steps to ensure the continued safe operations of the 
canyon. However, DOE must take several additional steps prior to 
processing additional nuclear material using H-Canyon, including 
completing required safety and environmental analyses. DOE is currently 
behind schedule in preparing some of these analyses and, if these 
delays persist, the processing of nuclear material using H-Canyon could 
be delayed. 

According to DOE and SRS Officials, H-Canyon Operations Comply with 
Current DOE Safety Standards: 

H-Canyon operations must comply with rigorous nuclear safety 
requirements established in Title 10 of the Code of Federal Regulations 
and associated DOE directives. These requirements address programs such 
as, among other things, protecting the public and workers from 
radiation, emergency response procedures, and fire protection in 
nuclear facilities. H-Canyon is routinely reviewed and inspected for 
compliance with these requirements. DOE has determined through this 
process that H-Canyon can continue to operate without endangering the 
health and safety of the public, the workers, or the environment. 
Furthermore, DOE officials point to the facility's history of operating 
for nearly 50 years with no serious radiation-related accidents. 

In addition, DOE continues to maintain and improve safety systems at H- 
Canyon. During the last decade, DOE has made some significant safety 
upgrades to the facility, including installing a new safety electrical 
system with backup diesel generators. DOE has also upgraded H-Canyon's 
ventilation system, which will better protect workers, the public, and 
the environment in the event of a release of radioactive material. 
Moreover, prior to processing any additional nuclear material using H- 
Canyon, DOE needed to ensure that H-Canyon's standard operating 
procedures were updated and complied with the relevant DOE regulations 
and safety standards for nuclear facilities. These updates were 
completed in 2007. 

Late Completion of Safety and Environmental Analyses Could Delay H- 
Canyon Operations: 

Federal regulations require DOE to prepare documented safety analyses 
that detail potential accident conditions that might lead to the 
release of radioactive or other hazardous materials. These analyses 
also identify safety systems and processes to protect workers, the 
public, and the environment from any adverse consequences of a release 
of this material. DOE developed a strategy in April 2007 for updating H-
Canyon's documented safety analyses to ensure that they comply with 
applicable regulations and DOE standards.[Footnote 8] This strategy 
established specific milestones for completing required analyses. While 
some analyses have been completed as scheduled so that SRS can continue 
processing some types of nuclear material using H-Canyon, DOE is behind 
schedule completing other required documented safety analyses. 
Specifically, an accident analysis that identifies the consequences of 
accidents involving the nuclear material DOE plans to process using H- 
Canyon, as well as another analysis--called a mitigated hazard 
analysis--that identifies the specific safety systems to prevent such 
accidents have been delayed. While these analyses were to be completed 
in September and November 2007, respectively, DOE now estimates the 
analyses will not be completed until fiscal year 2009. DOE officials 
attribute this delay to the limited technical staff available to 
conduct safety analyses at SRS. 

Delays completing these analyses could negatively affect H-Canyon 
operations. In particular, DOE has developed a stringent schedule for 
processing different types of nuclear material using H-Canyon. For 
example, completing the processing of spent nuclear fuel by 2019, as is 
currently scheduled, requires SRS to begin processing the fuel in 2010. 
If delays completing required safety analyses continue, SRS may have to 
delay beginning the processing of spent nuclear fuel beyond 2010 and, 
as a result, H-Canyon may have to operate beyond the planned 2019 
shutdown date to make up for the disruption in the processing schedule. 

In addition to completing required safety analyses, DOE must also 
update environmental analyses required by the National Environmental 
Policy Act. DOE previously issued environmental impact statements and 
records of decision regarding the spent nuclear fuel, HEU, and 
plutonium that the department now plans to process using H-Canyon. For 
example, in an environmental impact statement and record of decision 
that DOE issued in 2000, DOE decided to dispose of up to 33 metric tons 
of surplus plutonium as mixed-oxide fuel and approximately 17 metric 
tons of plutonium using an immobilization process.[Footnote 9] A 
subsequent 2002 decision cancelled DOE's plans to build an 
immobilization facility and left the department without a means for 
processing some of this plutonium into a form suitable for permanent 
disposition. In March 2007, DOE announced that it was preparing a 
supplemental environmental impact statement that would examine 
alternative plutonium disposition methods, including the disposal of 
some of the surplus plutonium using H-Canyon. Although DOE's March 2007 
announcement stated that a draft supplemental environmental impact 
statement was planned to be issued in January 2008, and the final 
supplemental environmental impact statement and associated record of 
decision would be issued in the summer of 2008, neither the draft nor 
the final supplemental environmental impact statement has been issued. 
DOE officials stated that the department will issue the draft 
supplemental environmental impact statement in September 2008 and the 
final supplemental environmental impact statement in 2009. 

DOE is engaged in a similar effort to update the environmental analyses 
prepared for permanently disposing of the department's surplus HEU and 
for the treatment, long-term storage, and eventual disposition of DOE's 
spent nuclear fuel. A supplemental analysis for processing and 
disposing of aluminum-clad spent nuclear fuel and other HEU materials 
using H-Canyon was completed in January 2008 and is undergoing review 
and concurrence. DOE expects to complete the reminder of its 
environmental analyses by the end of fiscal year 2008. 

Conclusions: 

DOE's plan to continue processing nuclear material using H-Canyon has 
several potential benefits, such as decreasing the amount of spent 
nuclear fuel to be disposed of at Yucca Mountain in the event that the 
repository eventually opens. To achieve these benefits, DOE will have 
to carefully manage the significant risks associated with the canyon's 
operation; namely, the generation of large quantities of additional 
radioactive waste that will further stress SRS's already strained waste 
processing capabilities. It is not currently possible to determine if 
DOE's plan to use H-Canyon to process nuclear material through 2019 is 
the most advantageous plan because DOE's cost estimate for operating H- 
Canyon is incomplete. Specifically, the estimate does not account for 
all the nuclear material that DOE now believes it may process using H- 
Canyon, and the estimate does not include costs such as those 
associated with storing and treating the waste generated as a result of 
H-Canyon operations. Without a comprehensive understanding of the 
inventory of materials suitable for H-Canyon processing, it is unclear 
whether DOE can complete nuclear material processing and successfully 
shut down H-Canyon by 2019 as the department currently plans. 
Furthermore, DOE has not developed a reliable estimate of the canyon's 
total life cycle costs, including the costs associated with treating 
the additional radioactive waste. 

H-Canyon has an established record of operating safely for five 
decades. However, continued operations of the canyon could be delayed 
if required safety analyses are not completed in a timely manner. While 
SRS has pledged to complete analyses in time to have operations proceed 
on schedule and has met some deadlines for the completion of these 
analyses, it has missed others by as much as 2 years. Other projects at 
SRS continue to compete for the necessary engineering expertise to 
complete these analyses. Further delays could cause the canyon's 
operations to be extended beyond its planned 2019 closure and result in 
increased costs. An unforeseen accident could also lead to significant, 
potentially catastrophic, consequences. It is therefore critical that 
DOE and SRS ensure that adequate resources are devoted to completing 
these required analyses before additional nuclear material is processed 
using H-Canyon. 

Recommendations for Executive Action: 

To ensure that DOE is effectively able to use H-Canyon's capabilities 
to process and dispose of nuclear material, we recommend that the 
Secretary of Energy take the following three actions: 

* Ensure that the efforts of NNSA and other offices within DOE to 
identify additional HEU, plutonium, and other nuclear materials that 
may be suitable for processing using H-Canyon are coordinated in order 
to make sure that these materials are included in SRS's processing 
plans and that any additional material added does not unduly delay H- 
Canyon's planned 2019 shutdown. 

* Develop a comprehensive cost estimate for continuing to operate H- 
Canyon that includes all waste treatment costs and contingency costs 
for any additional nuclear materials that will be included in the 
processing plans. 

* Direct SRS to develop a plan to ensure that sufficient technical 
staff are available to complete the required safety analyses in a 
timely manner so that H-Canyon operations can proceed on schedule. 

Agency Comments and Our Evaluation: 

We provided DOE with a draft of this report for its review and comment. 
In their written comments, DOE outlined the actions that are underway 
or that it plans to take to address the draft report's recommendations. 
The complete text of DOE's comments are presented in appendix I. DOE 
also provided technical clarifications, which we incorporated into the 
report as appropriate. 

To address the report's recommendations, DOE stated it will work 
closely with NNSA's recently established Office of Nuclear Material 
Integration to ensure that future decisions to process additional 
materials at H-Canyon are coordinated to minimize the impact to the 
canyon's planned shutdown. In addition, DOE stated that it would 
formally document the H-Canyon cost estimate that includes the 
resultant impact of planned H-Canyon operations to the SRS liquid waste 
system. Moreover, DOE stated that it has directed the contractor 
operating SRS to complete the required safety analyses to support 
scheduled H-Canyon operations and that the department will monitor the 
contractor's progress. 

In its comments, DOE stated that the draft report's title implied that 
certain actions are not being taken expeditiously to reduce nuclear 
risks. Contrary to DOE's assertion, we do not imply that the canyon is 
currently being operated unsafely. Our draft report detailed the 
actions DOE is taking to reduce the risks associated with continued H- 
Canyon operations. DOE also noted that the use of the term "nuclear 
waste" in the draft report's title was inaccurate because H-Canyon does 
not process nuclear waste. We used the term nuclear waste to refer to 
surplus spent nuclear fuel, HEU materials, and plutonium for 
simplicity. This is because--with the exception of uranium recovered 
from the spent nuclear fuel and HEU materials--all of the nuclear 
materials processed using H-Canyon will ultimately be permanently 
disposed of as nuclear waste. However, we acknowledge DOE's concern and 
have clarified the report's title accordingly. 

We are sending copies of this report to the appropriate congressional 
committees; the Secretary of Energy; and the Director, Office of 
Management and Budget. We also will make copies available to others 
upon request. In addition, the report will be available at no charge on 
the GAO Web site at [hyperlink, http://www.gao.gov]. 

If you or your staffs have any questions about this report, please 
contact me at (202) 512-3841 or aloisee@gao.gov. Contact points for our 
Offices of Congressional Relations and Public Affairs may be found on 
the last page of this report. GAO staff who made major contributions to 
this report are listed in appendix II. 

Signed by: 

Gene Aloise: 
Director, Natural Resources and Environment: 

[End of section] 

Appendix I: Comments from the Department of Energy: 

Department of Energy: 
Washington, DC 20585: 

July 11, 2008: 

Mr. Gene Aloise: 
Director, Natural Resources and Environment: 
Government Accountability Office: 
Washington, D.C. 20548: 

Dear Mr. Aloise: 

Thank you for your June 27, 2008, letter to the Secretary of Energy 
providing the draft report, "DOE Needs to Take Action to Reduce Risks 
Before Processing Additional Nuclear Waste at Savannah River Site's H-
Canyon," and requesting written comments from the Department of Energy 
(DOE). Your draft report contains three recommendations for executive 
action: 1) ensure that efforts by the National Nuclear Security 
Administration (NNSA) and other offices to identify additional 
materials for processing in H-Canyon are coordinated and do not unduly 
delay H-Canyon shutdown; 2) develop a comprehensive cost estimate for 
operating H-Canyon that includes all waste treatment costs and 
contingency costs for any additional materials that will be included in 
processing plans; and 3) direct the Savannah River Site (SRS) to 
develop a plan to ensure technical staff are available to complete 
required safety analyses to support scheduled H-Canyon operations. 

With respect to your first recommendation, DOE established the Nuclear 
Materials Disposition and Consolidation Coordination Committee (NMDCCC) 
to provide a forum to perform cross-cutting nuclear materials 
disposition and consolidation planning. The committee, which includes 
members from my office and NNSA, has been working to coordinate DOE 
activities associated with nuclear material consolidation and 
disposition, such as the ongoing surplus plutonium consolidation 
effort. The committee is expected to complete its agenda by the end of 
this year and its coordinating function will be transferred to the 
recently established Office of Nuclear Material Integration (ONMI) 
within NNSA. My staff will work with NNSA to ensure that the 
responsibilities of the newly established ONMI include continuing the 
coordination role that the NMDCCC has been performing. Close 
coordination within DOE, together with DOE Order 413.3 and its 
associated manual, will ensure future decisions to process additional 
materials, beyond the Enriched Uranium (EU) Disposition Project scope, 
will be coordinated to minimize impacts to H-Canyon disposition 
activities completion. 

In regard to your second recommendation, I have directed my staff to 
formally document the H-Canyon cost estimate provided to your audit 
team and congressional staff that implements the scope of the EU 
Disposition Project and the resultant impacts to the SRS liquid waste 
system. 

For your third recommendation, the Savannah River Operations Office 
(SR) Manager Jeffrey Allison, by letter dated July 2, 2008, directed 
the SRS contractor to upgrade the H-Canyon safety analyses to be 
consistent with the DOE-STD-3009 format and content supporting the 
schedule to maintain the facility's planned operations. Mr. Dae Chung, 
Deputy Assistant Secretary for Safety Management and Operations, and 
his staff will continue to follow the progress made by both the 
contractor and federal staff in the preparation and review of safety 
documentation to ensure completion of the required documentation to 
support approval and initiation of spent nuclear fuel processing. Spent 
nuclear fuel processing is scheduled to begin in 2010. 

At the recent Exit Conference with your staff, we provided comments on 
the bulk of the draft report, and although your draft report includes 
several revisions in response to those comments, we believe it contains 
some inaccuracies and misleading statements. For example, the title of 
the draft report, "DOE Needs to Take Action to Reduce Risks Before 
Processing Additional Nuclear Waste at Savannah River Site's H-Canyon, 
" implies certain actions are not being taken expeditiously to reduce 
nuclear risks. As you are aware, that is not a true statement and there 
has never been any dispute regarding the fact that H-Canyon is 
currently being safely operated and in compliance with all existing 
safety requirements. Additionally, and contrary to that statement, H-
Canyon does not process nuclear waste, and it is not permitted to do 
so. Enclosed is a mark-up of your draft report that contains our 
comments. We respectfully request they be considered as you finalize 
your report. 

If you have any questions, please contact me at (202) 586-5216 or Mr. 
Gary DeLeon, Director, Office of Nuclear Materials Disposition, at 
(301) 903-7668. 

Sincerely, 

Signed by: 

Deane P. Cochran, for: 

Ines R. Triay: 
Principal Deputy Assistant Secretary for Environmental Management: 

Enclosure: 

[End of section] 

Appendix II: GAO Contact and Staff Acknowledgments: 

GAO Contact: 

Gene Aloise, (202) 512-3841, or aloisee@gao.gov: 

Staff Acknowledgments: 

In addition to the individual named above, Ryan T. Coles, Assistant 
Director; Naba Barkakati; Don Cowan; Mehrzad Nadji; Omari Norman; Peter 
Ruedel; Rebecca Shea; Carol Herrnstadt Shulman; and Tom Twambly made 
key contributions to this report. 

[End of section] 

Footnotes: 

[1] HEU, which is used in some nuclear weapons, is uranium enriched in 
the isotope uranium-235 to 20 percent or greater. In contrast, LEU, 
which is used in commercial nuclear power reactors, contains less than 
20 percent uranium-235. 

[2] Under section 3137 of the Floyd D. Spence National Defense 
Authorization Act for Fiscal Year 2001 (Pub. L. No. 106-398) and 
section 3115 of the National Defense Authorization Act for Fiscal Year 
2004 (Pub. L. No. 108-136), DOE must continue operations and maintain a 
high state of readiness at H-Canyon as well as provide necessary 
technical staff to operate the facility. 

[3] The exact amount of plutonium in either pit or nonpit forms is 
considered classified information. 

[4] DOE estimates that operating H-Canyon through 2019 will add 297 
canisters to the approximately 6,300 vitrified high radioactivity waste 
canisters required to dispose of SRS's high radioactivity waste. 

[5] DOE estimates that operating H-Canyon through 2019 will add an 
additional two Saltstone Facility vaults to the 36 planned vaults 
required to dispose of SRS's low radioactivity waste. 

[6] DOE-SRS, SRS Liquid Waste Planning Process: Life-cycle Liquid Waste 
Disposition System Plan, Rev. 14. October 18, 2007. 

[7] Tanks that meet Environmental Protection Agency standards have a 
metal liner on the outer tank wall that is referred to as a secondary 
containment. Of the 49 tanks currently in service at SRS, 25 tanks have 
full secondary containment while the remaining 24 have only partial or 
no secondary containment. 

[8] Specifically, documented safety analyses must comply with 
requirements in Part 830 of Title 10 of the Code of Federal Regulations 
and DOE Standard 3009-94 "Preparation Guide for U.S. Department of 
Energy Nonreactor Nuclear Facility Documented Safety Analyses." 

[9] Immobilization involves mixing the plutonium with ceramics, placing 
the mixture in large canisters, and filling the canisters with 
vitrified high-level radioactive waste. 

[End of section] 

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E-mail: fraudnet@gao.gov: 
Automated answering system: (800) 424-5454 or (202) 512-7470: 

Congressional Relations: 

Ralph Dawn, Managing Director, dawnr@gao.gov: 
(202) 512-4400: 
U.S. Government Accountability Office: 
441 G Street NW, Room 7125: 
Washington, D.C. 20548: 

Public Affairs: 

Chuck Young, Managing Director, youngc1@gao.gov: 
(202) 512-4800: 
U.S. Government Accountability Office: 
441 G Street NW, Room 7149: 
Washington, D.C. 20548: