1. Charleston Naval Complex Using Brownfield Tools at a BRAC Installation Using Brownfield Tools at a BRAC Installation David Criswell P.E. Navy BRAC Program Management Office-Southeast David Criswell P.E. Navy BRAC Program Management Office-Southeast

2. Charleston Naval Complex Brownfield Tools Used at Charleston Naval Complex (CNC) Interim Leasing (reuse vs environmental) Interim Leasing (reuse vs environmental) FPIEC FPIEC Early Transfer without Privatization Early Transfer without Privatization Voluntary Cleanup Contract Voluntary Cleanup Contract Property Sales Property Sales Brownfield Tools Used at Charleston Naval Complex (CNC) Interim Leasing (reuse vs environmental) Interim Leasing (reuse vs environmental) FPIEC FPIEC Early Transfer without Privatization Early Transfer without Privatization Voluntary Cleanup Contract Voluntary Cleanup Contract Property Sales Property Sales

3. Charleston Naval Complex 100-year old shipyard and Naval Station 100-year old shipyard and Naval Station Slated for closure by the Base Realignment and Closure (BRAC) commission in 1993. Slated for closure by the Base Realignment and Closure (BRAC) commission in 1993. Four Major Commands Closed Four Major Commands Closed 100-year old shipyard and Naval Station 100-year old shipyard and Naval Station Slated for closure by the Base Realignment and Closure (BRAC) commission in 1993. Slated for closure by the Base Realignment and Closure (BRAC) commission in 1993. Four Major Commands Closed Four Major Commands Closed  Naval Station  Fleet and Mine Warfare Training Center  Naval Station  Fleet and Mine Warfare Training Center  Shipyard  Fleet and Industrial Supply Center  Shipyard  Fleet and Industrial Supply Center Operations on the complex ceased on 01 April 1996 Operations on the complex ceased on 01 April 1996

4. Charleston Naval Complex

5. Loss of Jobs Loss of Jobs ♦ 8,722 military ♦ 6,272 civilian 1,600 acres, 3 miles on Cooper River 1,600 acres, 3 miles on Cooper River June 1994 - Charleston Naval Complex Redevelopment Authority (RDA) June 1994 - Charleston Naval Complex Redevelopment Authority (RDA) Findings Of Suitability to Lease (FOSL) completed for 600 facilities in 1996-1999 Findings Of Suitability to Lease (FOSL) completed for 600 facilities in 1996-1999 Loss of Jobs Loss of Jobs ♦ 8,722 military ♦ 6,272 civilian 1,600 acres, 3 miles on Cooper River 1,600 acres, 3 miles on Cooper River June 1994 - Charleston Naval Complex Redevelopment Authority (RDA) June 1994 - Charleston Naval Complex Redevelopment Authority (RDA) Findings Of Suitability to Lease (FOSL) completed for 600 facilities in 1996-1999 Findings Of Suitability to Lease (FOSL) completed for 600 facilities in 1996-1999

6. Interim Leasing CMMC - 30 year sublease from RDA  Detyens Shipyard & Metal Trades, Inc.  100 + buildings - almost 1.9 million sf  Three dry docks “Incubator” for more than 20 marine-related repair and manufacturing support companies “Incubator” for more than 20 marine-related repair and manufacturing support companies CMMC to buy property for $9 million from RDA CMMC to buy property for $9 million from RDA Employs 1,500 workers Employs 1,500 workers CMMC - 30 year sublease from RDA  Detyens Shipyard & Metal Trades, Inc.  100 + buildings - almost 1.9 million sf  Three dry docks “Incubator” for more than 20 marine-related repair and manufacturing support companies “Incubator” for more than 20 marine-related repair and manufacturing support companies CMMC to buy property for $9 million from RDA CMMC to buy property for $9 million from RDA Employs 1,500 workers Employs 1,500 workers

7. State Ports Authority Busiest container port in SE and Gulf Busiest container port in SE and Gulf Ranks 6 th in US Ranks 6 th in US Long-term lease - breakbulk terminal Long-term lease - breakbulk terminal Sub-leased to Charleston International Ports Sub-leased to Charleston International Ports SC Legislature directed the RDA to transfer the southern half (minus Federal Enclave) of CNC to State Ports Authority SC Legislature directed the RDA to transfer the southern half (minus Federal Enclave) of CNC to State Ports Authority Busiest container port in SE and Gulf Busiest container port in SE and Gulf Ranks 6 th in US Ranks 6 th in US Long-term lease - breakbulk terminal Long-term lease - breakbulk terminal Sub-leased to Charleston International Ports Sub-leased to Charleston International Ports SC Legislature directed the RDA to transfer the southern half (minus Federal Enclave) of CNC to State Ports Authority SC Legislature directed the RDA to transfer the southern half (minus Federal Enclave) of CNC to State Ports Authority

8. Charleston Naval Complex Fixed Price, Indemnified Environmental Restoration Contract (FPIEC) Reduced remediation cost & financially capped environmental liability Reduced remediation cost & financially capped environmental liability Provides rapid, fixed and adequate funding Provides rapid, fixed and adequate funding Accelerate the cleanup and redevelopment Accelerate the cleanup and redevelopment Provides opportunity for innovative remediation alternatives and private sector innovation Provides opportunity for innovative remediation alternatives and private sector innovation Fixed Price, Indemnified Environmental Restoration Contract (FPIEC) Reduced remediation cost & financially capped environmental liability Reduced remediation cost & financially capped environmental liability Provides rapid, fixed and adequate funding Provides rapid, fixed and adequate funding Accelerate the cleanup and redevelopment Accelerate the cleanup and redevelopment Provides opportunity for innovative remediation alternatives and private sector innovation Provides opportunity for innovative remediation alternatives and private sector innovation

9. FPIEC Goals Competitive award (less than CTC) Competitive award (less than CTC) Divest property as quickly as possible Divest property as quickly as possible Reduce asset management costs (Caretaker) Reduce asset management costs (Caretaker) Cap environmental liabilities Cap environmental liabilities Fund all liabilities within current budgets Fund all liabilities within current budgets Competitive award (less than CTC) Competitive award (less than CTC) Divest property as quickly as possible Divest property as quickly as possible Reduce asset management costs (Caretaker) Reduce asset management costs (Caretaker) Cap environmental liabilities Cap environmental liabilities Fund all liabilities within current budgets Fund all liabilities within current budgets

10. FPIEC Challenges Site Not Fully Characterized Site Not Fully Characterized RCRA Permit RCRA Permit Review of Existing RFI Documentation Review of Existing RFI Documentation Remedies Not Selected or Approved Remedies Not Selected or Approved No precedence in contract type No precedence in contract type No experience with insurance products No experience with insurance products RDA liability concerns RDA liability concerns Site Not Fully Characterized Site Not Fully Characterized RCRA Permit RCRA Permit Review of Existing RFI Documentation Review of Existing RFI Documentation Remedies Not Selected or Approved Remedies Not Selected or Approved No precedence in contract type No precedence in contract type No experience with insurance products No experience with insurance products RDA liability concerns RDA liability concerns

11. FPIEC Scope Conduct investigations, remedial planning, and remedial action to close 132 RCRA Sites and 70 UST Sites Conduct investigations, remedial planning, and remedial action to close 132 RCRA Sites and 70 UST Sites Complete LBP abatement and asbestos surveys Complete LBP abatement and asbestos surveys Prepare property transfer documentation (FOST) Prepare property transfer documentation (FOST) O&M of remedial systems during contract period of performance (PoP, 20 years) O&M of remedial systems during contract period of performance (PoP, 20 years) Liability for newly discovered sites during PoP Liability for newly discovered sites during PoP Provide indemnification Provide indemnification Conduct investigations, remedial planning, and remedial action to close 132 RCRA Sites and 70 UST Sites Conduct investigations, remedial planning, and remedial action to close 132 RCRA Sites and 70 UST Sites Complete LBP abatement and asbestos surveys Complete LBP abatement and asbestos surveys Prepare property transfer documentation (FOST) Prepare property transfer documentation (FOST) O&M of remedial systems during contract period of performance (PoP, 20 years) O&M of remedial systems during contract period of performance (PoP, 20 years) Liability for newly discovered sites during PoP Liability for newly discovered sites during PoP Provide indemnification Provide indemnification

12. FPIEC Terms CH2M-Hill, 20 years, $28.8 million CH2M-Hill, 20 years, $28.8 million Indemnity, backed by insurance and pledged assets, to cover costs of up to $65 million over 20 years. Indemnity, backed by insurance and pledged assets, to cover costs of up to $65 million over 20 years. Outcome Based Outcome Based  Make Property Ready for Transfer  Close sites (RCRA Part B permit) Pay for Completion, Not Progress Pay for Completion, Not Progress CH2M-Hill, 20 years, $28.8 million CH2M-Hill, 20 years, $28.8 million Indemnity, backed by insurance and pledged assets, to cover costs of up to $65 million over 20 years. Indemnity, backed by insurance and pledged assets, to cover costs of up to $65 million over 20 years. Outcome Based Outcome Based  Make Property Ready for Transfer  Close sites (RCRA Part B permit) Pay for Completion, Not Progress Pay for Completion, Not Progress

13. FPIEC Progress All of the original 132 contract sites have achieved a NFA or NFA w/LUC status except for the following: All of the original 132 contract sites have achieved a NFA or NFA w/LUC status except for the following: 12 sites have Regulatory approval for MNA with LTM 12 sites have Regulatory approval for MNA with LTM 7 other sites require LTM and/or other corrective measures 7 other sites require LTM and/or other corrective measures 11 of 16 new sites with NFA status 11 of 16 new sites with NFA status All of the original 132 contract sites have achieved a NFA or NFA w/LUC status except for the following: All of the original 132 contract sites have achieved a NFA or NFA w/LUC status except for the following: 12 sites have Regulatory approval for MNA with LTM 12 sites have Regulatory approval for MNA with LTM 7 other sites require LTM and/or other corrective measures 7 other sites require LTM and/or other corrective measures 11 of 16 new sites with NFA status 11 of 16 new sites with NFA status

14. Early Transfer 225 acres transferred FED-to-FED 225 acres transferred FED-to-FED 700 acres via FOST 700 acres via FOST September 2003 Navy submitted CDR to Governor Sanford for Early Transfer September 2003 Navy submitted CDR to Governor Sanford for Early Transfer Conveyance of all remaining parcels at CNC Conveyance of all remaining parcels at CNC  440 acres  Shipyard area and SPA property Navy retains cleanup and RCRA Permit (no privatization) Navy retains cleanup and RCRA Permit (no privatization) 225 acres transferred FED-to-FED 225 acres transferred FED-to-FED 700 acres via FOST 700 acres via FOST September 2003 Navy submitted CDR to Governor Sanford for Early Transfer September 2003 Navy submitted CDR to Governor Sanford for Early Transfer Conveyance of all remaining parcels at CNC Conveyance of all remaining parcels at CNC  440 acres  Shipyard area and SPA property Navy retains cleanup and RCRA Permit (no privatization) Navy retains cleanup and RCRA Permit (no privatization)

15. Early Transfer Enabled RDA to take title and transfer land Enabled RDA to take title and transfer land Facilitated sale of shipyard to CMMC Facilitated sale of shipyard to CMMC Facilitated transfer to City of North Charleston and sale to Noisette Company Facilitated transfer to City of North Charleston and sale to Noisette Company  340 acre sustainable, mixed-use urban hub  Redevelop the adjacent 2,600 acres of private residential neighborhoods, private commercial structures, and municipal property Facilitated Voluntary Cleanup Contract Facilitated Voluntary Cleanup Contract Enabled RDA to take title and transfer land Enabled RDA to take title and transfer land Facilitated sale of shipyard to CMMC Facilitated sale of shipyard to CMMC Facilitated transfer to City of North Charleston and sale to Noisette Company Facilitated transfer to City of North Charleston and sale to Noisette Company  340 acre sustainable, mixed-use urban hub  Redevelop the adjacent 2,600 acres of private residential neighborhoods, private commercial structures, and municipal property Facilitated Voluntary Cleanup Contract Facilitated Voluntary Cleanup Contract

16. Early Transfer Early Transfer without privatization NTC Orlando, FL (3) 2002/2004 NOSL Louisville, KY2003 NWIRP Toledo, OH2003 NAS Memphis, TN1999 NWIRP Bristol, TN1999 FISC Oakland, CA1999 NTC San Diego, CA2000 FISC Alameda Annex, CA2000 Naval Complex Long Beach, CA2001 Early Transfer without privatization NTC Orlando, FL (3) 2002/2004 NOSL Louisville, KY2003 NWIRP Toledo, OH2003 NAS Memphis, TN1999 NWIRP Bristol, TN1999 FISC Oakland, CA1999 NTC San Diego, CA2000 FISC Alameda Annex, CA2000 Naval Complex Long Beach, CA2001

17. Voluntary Cleanup Contract Between new owners and SCDHEC Between new owners and SCDHEC Provides Contribution Protection Provides Contribution Protection Provides Third Party Liability Protection Provides Third Party Liability Protection Land Use Control Management Land Use Control Management Perform required LUC inspections Perform required LUC inspections Correct LUC deficiencies Correct LUC deficiencies Notification and reporting to SCDHEC and Navy Notification and reporting to SCDHEC and Navy LUC mod/termination process LUC mod/termination process IMWP for Interim LUCs or CMI final WP IMWP for Interim LUCs or CMI final WP Between new owners and SCDHEC Between new owners and SCDHEC Provides Contribution Protection Provides Contribution Protection Provides Third Party Liability Protection Provides Third Party Liability Protection Land Use Control Management Land Use Control Management Perform required LUC inspections Perform required LUC inspections Correct LUC deficiencies Correct LUC deficiencies Notification and reporting to SCDHEC and Navy Notification and reporting to SCDHEC and Navy LUC mod/termination process LUC mod/termination process IMWP for Interim LUCs or CMI final WP IMWP for Interim LUCs or CMI final WP

18. Property Sales Chicora Tank Farm 23.9-acre former bulk-fuel storage area in blighted part of North Charleston 23.9-acre former bulk-fuel storage area in blighted part of North Charleston Six 1-2 million gallon tanks Six 1-2 million gallon tanks Petroleum contamination – MOA with SCDHEC Petroleum contamination – MOA with SCDHEC Thought to have little real estate value ($100,000) Thought to have little real estate value ($100,000) Site ultimately sold for $1.4 million Site ultimately sold for $1.4 million 23.9-acre former bulk-fuel storage area in blighted part of North Charleston 23.9-acre former bulk-fuel storage area in blighted part of North Charleston Six 1-2 million gallon tanks Six 1-2 million gallon tanks Petroleum contamination – MOA with SCDHEC Petroleum contamination – MOA with SCDHEC Thought to have little real estate value ($100,000) Thought to have little real estate value ($100,000) Site ultimately sold for $1.4 million Site ultimately sold for $1.4 million

19. Recovery from BRAC 16,000 military & civilian federal employees   SPAWAR   Charleston AFB   Navy Nuclear Power Training School   Naval Weapons Station On the former CNC   Federal Law Enforcement Training Center   NOAA   US COAST GUARD   Defense Finance Accounting Service 16,000 military & civilian federal employees   SPAWAR   Charleston AFB   Navy Nuclear Power Training School   Naval Weapons Station On the former CNC   Federal Law Enforcement Training Center   NOAA   US COAST GUARD   Defense Finance Accounting Service

20. Recovery from BRAC Since officially closing in 1996, the partnership of the local, state, and federal stakeholders has created 5,400 jobs with $265 million in payroll   CMMC   State Ports Authority   Noisette Company   Academic Magnet High School   H.L. Hunley Museum and Laboratory - Clemson Since officially closing in 1996, the partnership of the local, state, and federal stakeholders has created 5,400 jobs with $265 million in payroll   CMMC   State Ports Authority   Noisette Company   Academic Magnet High School   H.L. Hunley Museum and Laboratory - Clemson