Federal Facilities Task Force Meeting, June 21-22, 2005 EM BUDGET UPDATE Mark Frei, DAS Business Operations Safe for the Workers, Protective of the Environment, and Respectful of the Taxpayer

2 $6.559 $5.0 $5.5 $6.0 $6.5 $7.0 $7.5 FY 2002FY 2003FY 2004FY 2005FY 2006 $7.054 $6.753 Budget (Comparable FY06 Dollars in Billions) On Course to Meet Our Objectives $6.505 The investments have resulted in accelerated risk reduction, site closures, and a payoff for all Americans. $6.307 FY 2001 $6.023

3 EM’s Five Appropriation Accounts 2

4 EM FY 2006 Budget Structure $6,505 Net Request* ($ in millions) 2006 Accelerated Completions ($1,017) 2012 Accelerated Completions ($1,291) 2035 Accelerated Completions ($1,830) Technology Development & Deployment ($21) Safeguards & Security ($287) Defense Site Acceleration Completion Appropriatio n Non-Closure Environmental Activities ($87) Community & Regulatory Support ($62) Federal Contribution to the Uranium Enrichment Decontamination & Decommissioning Fund ($451) Program Direction ($231) Defense Environmental Services Appropriation* 2006 Accelerated Completions ($15) 2012 Accelerated Completions ($129) 2035 Accelerated Completions ($28) Non-Defense Site Acceleration Completion Appropriation Non-Closure Environmental Activities ($46) Community & Regulatory Support ($0.09) Environmental Cleanup Projects ($46) Non-Defense Environmental Services Appropriation Decontamination & Decommissioning Activities Uranium/Thorium Reimbursement ($20) Uranium Enrichment Decontamination and Decommissioning Fund Appropriation ($5,184)($380) ($172)($178)($591) ($571) * Appropriation amount reflects UE D&D Fund Deposit (offset) of $451M SBW ($15) PED ($9) WTP ($626) SWPF ($70) GWSF ($7) IHLW ($7) PED ($4) DUF 6 ($86)

5 Potential New EM Budget Structure $6,505 Net Request* ($ in millions) Control Points – Color Code Represents Lowest Level of Control Operating Expense Controls for Select Sites Construction Line Item Controls Sites/Programs – All Operating Expenses RF - $602 OH - $407 * Appropriation amount reflects UE D&D Fund Deposit (offset) of $451M

6 Potential New EM Budget Structure $6,505 Net Request* ($ in millions) UE D&D APPROPRIATION ($591) U/Th ($20) D&D Fund ($571) ANL - $11 BNL - $34 ID - $5 CBC - $45 Operating Expense Controls for Select Sites Construction Line Item Controls Sites/Programs – All Operating Expenses Control Points – Color Code Represents Lowest Level of Control * Appropriation amount reflects UE D&D Fund Deposit (offset) of $451M

7 Budget Request: $6,505M Legend: Over $1 billion$300 million to $1 billion$50 million to $300 millionLess than $50 million California * Nevada * Kentucky New York* Washington South Carolina Idaho Colorado New Mexico * Tennessee * Ohio Utah Illinois EM Program FY 2006 Budget Request * EM transferring waste management and/or cleanup responsibilities to NNSA Missouri * Texas *

8 Safe for the Workers, Protective of the Environment, and Respectful of the Taxpayer Environmental Management Funding ($ in thousands) Office a FY 2004 Comp. Approps. FY 2005 Comp. Approps. FY 2006 Congressional Request Carlsbad , , ,538 Chicago ,486 46,826 47,996 Idaho , , ,411 Oak Ridge , , ,597 Portsmouth/Paducah Project Office , , ,779 Ohio , , ,700 Richland ,050 1,036, ,371 River Protection ,125,502 1,094, ,885 Rocky Flats , , ,030 Savannah River ,404,087 1,495,203 1,412,125 Los Alamos Site Office , , ,699 Nevada Site Office ,715 7,490 2,846 Headquarters Operations , , ,829 Technology Development & Deployment ,358 59,726 21,389 Consolidated Business Center ,084 54,986 76,281 D&D Fund Deposit , , ,000 Subtotal, EM ,412,300 7,545,444 6,956,476 Offset (659,430) (491,804) (451,000) Total, EM ,752,870 7,053,640 6,505,476 a Site distribution includes funding for Program Direction, Spent Nuclear Fuel/High-Level Waste Long-Term Storage, Safeguards and Security; and excludes Technology Development and Deployment activities.

9 EM Corporate Performance Measures Protective of the Environment Safe for the Workers, Protective of the Environment, and Respectful of the Taxpayer

10 Continue to Improve Safety and Performance Seek New Opportunities to Reduce Risk and Complete Cleanup Address Our Challenges We Must Stay True to the Strategy Safe for the Workers, Protective of the Environment, and Respectful of the Taxpayer