Funding Long-Term Stewardship James D. Werner, Director of Long-Term Stewardship Office of Environmental Management U.S. Department of Energy Resources for the Future Workshop Long-Term Stewardship at Contaminated Sites: Innovative Funding and Oversight December 7, 2000

1 Please see Attachment G for site list

2 Where Have We Been? Total estimated cost for EM (~$200 billion) does not include cleanup to “unrestricted use” DOE/EM spent nearly $60 billion from 1989 to present Acknowledged need for long-term stewardship Assistant Secretary Huntoon identified long-term stewardship as Strategic Priority Congress recognizes federal government responsible for long-term stewardship National Research Council Report on LTS (see Attachment E)

3 Expected Annual Cost for LTS is Approximately $100 million * Billions of Dollars Long-term Stewardship Costs Projected Outyear DOE Environmental Management Costs Budget Targets Long-Term Stewardship Rough Cost Estimates from the NDAA Report *As of 2070

4 Key Challenges for Effective LTS Incorporating long-term stewardship considerations into cleanup decisions Ensuring continued effectiveness of long-term stewardship through multiple changes in property ownership Ensuring open access to information about residual hazards Ensuring reliable and sufficient funding Maintaining continued partnerships with state, local, and Tribal governments Developing mechanisms and technologies to promote the sustainability of long-term stewardship Designing and building the concept of “stewardship prevention” into planning for new construction and operation

5 Potential Funding Mechanisms Annual Congressional Appropriations –Proposed LTS budget submitted to OMB Long-term Stewardship Fund(s)/Escrow Account* –Annual funding provided from trust fund/escrow account income or escrow account principal –Could be created at national, state, site level Fees from DOE Commercial Activities/Sales of Assets* –Receipt from asset sales/fees for services would be collected in LTS fund Public-Private Partnerships* –Private entities lease site assets at below-market rates in return for funding LTS * May require new legal authority to establish and operate

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13 Examples of Federal Trust Funds Nuclear Waste Fund (42 U.S.C. § 10222) Federal Old Age and Survivors Insurance Trust Fund (42 USC § 401(a)) Federal Disability Insurance Trust Fund (42 U.S.C. § 401(b)) Black Lung Disability Trust Fund (26 USC § 9501) Aquatic Resources Trust Fund (26 USC § 9504) Harbor Maintenance Trust Fund (26 USC § 9505) Inland Waterways Trust Fund (26 USC § 9506) Airport and Airways Trust Fund (26 USC § 9502) Highway Trust Fund (26 USC § 9503) Vaccine Injury Compensation Trust Fund (26 USC § 9510) Leaking Underground Storage Tank Trust Fund (26 USC § 9508) Hazardous Substance Superfund (26 USC § 9507); uses of fund (42 USC § 9611) Oil Spill Liability Trust Fund (26 USC § 9509) Attachment A

14 Congressional Report on Long-Term Stewardship Requirements The FY 2000 National Defense Authorization Act requires the development of a Long-term Stewardship Report that: –Identifies sites or portions of sites where environmental restoration, waste disposal, and facility stabilization will be completed by 2006 without unrestricted land use –Includes sufficient detail to undertake the necessary management and stewardship responsibilities including cost, scope, and schedule Status Information necessary for the Congressional Report must be compiled by DOE Headquarters from Field Office staff Draft data call/guidance issued - December 1999 Data call/guidance issued - February Initial data from field staff to HQ - April Pre-concurrence draft - June Concurrence draft - July Final Report expected to be delivered to Congress in December, 2000 Will provide initial scope of existing and projected site-by-site long-term stewardship activities. Attachment B

15 Long-Term Stewardship (LTS) Study for PEIS Settlement Requirements Address national and cross-cutting institutional and programmatic issues, not site-specific issues Follow CEQ/DOE NEPA process for public involvement, but not a NEPA document Status 120-day public scoping period from October 6, 1999 to February 3, 2000 Scoping workshops in TN, NV, OH and ID Draft Study released October 31, day public comment period; Public hearing in Washington, D.C. on November 30, 2000 Final Study following public comment period Major Topics: Hazard Management Managing Real Property Information Management Funding & Financial Management Environmental & Socioeconomic Issues Sustainability Will not determine policies Will provide research and analytical support for policy development process. Attachment C

16 Other Current Tasks Database of sites with past involvement in nuclear weapons related activities New National Academy of Sciences study on buried transuranic waste National Academy of Sciences study of long-term institutional management released in October, 2000 Strategic plan for long-term stewardship DOE policy for long-term stewardship responsibility at sites with expected non-EM mission Web page ( DOE staff working group — headquarters and field staff $6.25 million Citizen Monitoring and Technical Assessment Fund pursuant to PEIS lawsuit settlement Case studies and workshops conducted by Energy Communities Alliance, Environmental Law Institute, National Association of Attorneys General, and National Governors Association Analysis of funding mechanisms options by Resources For the Future Attachment D

17 National Research Council Report* “[S]tewardship is a pervasive concept and not simply a set of measures to be implemented once remediation is complete” “[E]ffectiveness of cleanup is reliant upon the effectiveness of three measures: contamination reduction, contaminant isolation, and stewardship measures” “The [NRC] Committee... finds that much regarding DOE’s intended reliance on long-term stewardship is at this point problematic.” *Long-term Institutional Management of U.S. Department of Energy Legacy Waste Sites. National Academy of Sciences, National Research Council, August 2000 Attachment E

18 National Research Council Report (ctd.) Recommended five strategic objectives for an effective LTS program: –Plan for uncertainty –Plan for fallibility –Develop appropriate incentive structures –Undertake scientific, technical, and social research and development –Implement an iterative strategy that allows adaptation to changing conditions or unexpected outcomes Attachment F

19 Attachment G