1. EM-1 Office of Environmental Management Building the FY 2003 Budget u Transition budget to begin implementing the top-to-bottom review u Budget consists of two parts: – Base budget -- $5.9B for basic funding at each site – Cleanup Reform Appropriation -- $800M to “fast-track” clean up

2. EM-2 Office of Environmental Management Cleanup Funding in FY 2003 Office of Environmental Management Budget Authority Seeking “Greater” Risk Reduction... FY 2003 Request = $6,714 Million * Base budget request ** Cleanup Reform Appropriation ***The Administration is prepared to support up to an additional $300 million to the Cleanup Reform appropriation if such funds are required to successfully reach agreement with States. $6.0 $5.9 $5.8 $5.9 $6.3 $6.7 $5.9* 0.8 0.3 $0.0 $1.0 $2.0 $3.0 $4.0 $5.0 $6.0 $7.0 FY 1997FY 1998FY 1999FY 2000FY 2001FY 2002FY 2003 Request (Dollars in Billions) ** *** $6.7

3. EM-3 Office of Environmental Management Base Budget Request - - $5.9 Billion u Places priority on protecting human health and the environment. – Funds surveillance and maintenance activities. – Funds safeguards and security. u Maintains focus on closure sites: – Rocky Flats – Fernald – Mound u Maintains increased shipments to WIPP. u Continues progress in cleanup projects. u Sharpens the focus on physical cleanup projects.

4. EM-4 Office of Environmental Management Legend: Over $1 billion$300 million to $1 billion$50 million to $300 millionLess than $50 million Base Budget Request: $5,914 M 1/ Table only includes states with $50M or greater in EM funding. State FY 2003 EM Budget Request ($ Millions) Washington$1,585.8 South Carolina1,108.5 Colorado703.0 Ohio630.2 Idaho594.3 Tennessee412.5 New Mexico294.6 New York113.9 Kentucky 100.6 Nevada60.9 California64.5 EM Program FY 2003 Budget Request (Final State totals will not be available until negotiations with States are concluded and $800M in Cleanup Reform Appropriation funds are distributed.)

5. EM-5 Office of Environmental Management Fast Tracking Cleanup The New Cleanup Reform Appropriation u $800M to accelerate cleanup, reduce risk, and improve costs and schedules. u Available to sites when agreement reached with regulators on alternative or expedited cleanup approaches. u May mean more near-term resources for site than in previous years. u All sites eligible for funds.

6. EM-6 Office of Environmental Management Status of FY 2003 Request Safeguards and Security House Armed Services Committee Senate Armed Services Committee House and Senate Appropriations Committees