1. EM Budget--- Past/Present/Future Mark W. Frei U.S. Department of Energy October 14, 2005

2. 2 Past – Historic EM Funding FY 2001-2006 FY 2005 peak year The FY 2006 request is sufficient to deliver risk reduction and environmental cleanup that is safe for the workers, protective of the environment, and respectful of the taxpayer *Congressional Appropriations **Congressional Request ** $6.0B $6.3B $6.6B $6.8B $7.1B $6.5B *****

3. 2 Past – FY 2005 Appropriations Type of cleanup changes over time – as we resolve urgent risks, EM program will be comprised of lower risk remediation/D&D activities

4. 3 Present – Request vs. Marks Site EM FY 2006 Request House Mark Senate Mark Carlsbad212,629$ $ 230,629$ Idaho536,999 549,999 Oak Ridge469,481 485,581 498,068 Portsmouth/Paducah419,900 404,900 409,900 Richland795,830 862,123 795,830 River Protection928,306 1,051,918 962,699 Savannah River1,229,082 1,219,082 1,247,082 Post Closure1,008,589 1,038,589 1,008,589 NNSA & NV Off-Sites145,545 349,947 353,247 HQ52,600 32,600 All Other Sites166,972 156,972 166,972 Program Direction230,931 248,816 230,931 S&S287,223 TD&D21,389 56,389 D&D Fund451,000 EM Subtotal FY 2006 Budget6,956,476 7,379,768 7,281,158 UED Fund Offset(451,000) EM Total FY 2006 Budget6,505,476$ 6,928,768$ 6,830,158$

5. 4 Present – Potential Issues Good news: House/Senate marks both higher than EM request General Issue Proposed Site Transfers from EM to NNSA Site-Specific Issues Mound OU-1 Savannah River Pu Vit and 3013 CSSC strategy Idaho Sodium Bearing Waste strategy Portsmouth Tc-99, GCEP, Building X-7725 Portsmouth/Paducah DUF6 construction Moab Hanford FFTF

6. 5 Present – Budget Structure

7. 7 Future – Strategic Approach to FY 2007-2011 Budget Request Focus on risk reduction, cleanup and site closure in a safe, cost-effective manner in accordance with existing EM site baselines and projects Maintain environmentally compliant base program

8. 8 Given strategic approach, EM budget request includes funding to meet DOE commitments and reduce risks Conduct compliant and safe operations Fully establish the “disposition machine” for radioactive liquid tank waste, special nuclear materials, and spent nuclear fuel Dispose of transuranic waste and low-level waste D&D facilities no longer needed Continue to remediate the soil and groundwater contamination Fund post-closure benefits and liability requirements Finish several sites by 2011 Future – Out Year Priorities

9. 9 Future – Changing Landscape EM has successfully implemented an improved acquisition strategy and improved cleanup efficiency, BUT – some basic assumptions have not materialized ASSUMPTION: Successfully modify agreements with regulators, as appropriate, to support accelerated cleanup strategies Hanford PFP D&D delayed; accelerated transuranic (TRU) waste retrieval Limited retrieval of Idaho buried TRU waste Waste Incidental to Reprocessing (WIR) – 3116 implementation at Idaho and Savannah River; not at Hanford or West Valley Revised End State at Brookhaven ASSUMPTION: EM would not be subject to new regulation/ statutes/orders that would constrain accelerated cleanup strategies Increased Design Basis Threat (DBT) requirements Initiative 297 (Washington State Cleanup Priorities Act) Los Alamos National Laboratory Consent Order

10. 11 Future – Changing Landscape ASSUMPTION: No new mission requirements or responsibilities Plutonium Vitrification Facility at Savannah River Future liabilities scope D&D of Portsmouth and Paducah gaseous diffusion plants D&D of additional facilities at Oak Ridge D&D of additional Los Alamos facilities per Consent Order Funding for Long-Term Stewardship activities Increased funding for pensions, post-closure responsibilities Continued storage of High Level Waste and Spent Nuclear Fuel awaiting Yucca Mountain repository availability SEFOR reactor D&D (Energy Policy Act of 2005) GTCC Waste EIS (Energy Policy Act of 2005) Moab uranium mill tailings pile and vicinity properties remediation (September 2005 Record of Decision) Oak Ridge Building 3019 (U233) mission

11. 12 The Bottom Line With funding to date, EM has been successful in focusing on risk reduction and completing cleanup safely For the future, EM is working to secure the needed funding for our evolving mission scope – mindful of important other National priorities