Remaining EM cleanup over $392 bn: breaking down costs in the complex
ECA Staff | 5/25/2022
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Earlier this month, the Government Accountability Office (GAO) released an insightful report reviewing and summarizing the status and performance of the Department of Energy (DOE) Office of Environmental Management’s (EM) largest projects and operations. In total, EM has over $392
billion* to go before cleanup of the nation’s former weapons complex is complete.
The report quotes figures for various costs associated with EM projects and operations, including life-cycle costs, environmental liability, and project costs.
Life-cycle cost
Life-cycle costs, as described in the report, include the scope, cost, and schedule profiles for the work activities required to complete EM’s mission at specific sites, including costs that have already been incurred. Also included in this estimate is a Risk Management Plan and a risk register.
The report provides life-cycle cost estimates for the then-16 active EM sites; work at Brookhaven National Laboratory has since been completed. The total estimated life-cycle cost of the now-15 active sites is over $525 billion.
The greatest contributor to the EM complex life-cycle cost is the Hanford Site, which represents $312 billion of the total. Cleanup is not scheduled to be completed at the site until 2078 to 2082.
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Environmental liability
In the report, environmental liability is EM’s estimate of the probable costs for the future cleanup of legacy defense waste for a given site. The estimate largely reflects estimates of future costs to clean up legacy radioactive tank waste and contaminated facilities and soil. The environmental liability for each site includes only the remaining costs for future work. The current total of environmental liabilities at the 15 active sites is $392 billion.
Broadly, DOE’s liability is based on:
- Estimate updates,
- Schedule slippage,
- Changes in assumptions,
- Plan changes,
- Funding shortfalls,
- New scope, and
- Non‐monetary loss contingencies, among other things.
In recent years, EM’s environmental liability has seen an increase. A 2019 GAO report addressed key factors in this growing figure, which include:
- Contract and project management problems;
- Regulator changes;
- Accidents, work stoppages, or disruptions;
- Technical challenges;
- Scope, cost, or schedule changes; and
- Repository uncertainty.
Project cost
Project cost estimates quoted in the 2022 GAO report are baseline costs for capital asset projects established at critical decision 2 (CD-2) (project performance baseline approved) and the current project cost estimate. The costs added for risks reflect the amount added to the project baseline to account for both contractor and EM controlled risks. All other project costs include costs for performing the work, EM administrative costs, and contractor award
fee.
According to EM data, as of December 2020, EM was actively managing 23 capital asset projects. Of these 23 projects, 15 had reached at least the CD-1 milestone (alternative selection and cost range approved) and had an estimated total project cost of $100 million or greater, with total project costs ranging from $127 million to $16.8 billion. The total project cost estimate for these 15 projects ranges from $20.11 billion to $20.36
billion, depending on the final cost estimates for two projects that have not started work at Oak Ridge.
ECA encourages all members to review the full report. Additional information from the report, including site-specific details, will also soon be available in a forthcoming cleanup guide resource on the ECA webpage.
*Note: ECA under-reported costs of remaining cleanup in a previous publication. The figure reported here has been updated accordingly.
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SAVE OUR DATES
September 21-23, 2022
NEW VENUE: CRYSTAL GATEWAY MARRIOTT IN ARLINGTON, VA!
We are pleased to host the 2022 National Cleanup Workshop at the Crystal Gateway Marriott in Arlington, VA. Join us to discuss a new era of cleanup success. Hear from senior DOE officials, local government officials, and industry leaders about DOE's cleanup priorities, the future of the workforce, and more.
Additional information on registration and hotel room blocks will be available in the coming weeks. We look forward to seeing you in September!
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SAVE OUR DATES
August 3-5, 2022
Salt Lake City Marriott University Park
Recognizing the opportunity to address goals shared broadly among U.S. Department of Energy program offices and in frontline communities across the federal nuclear complex, the Energy Communities Alliance will host the ECA Forum: Hosting New Nuclear Development on August 3-5,
2022 at the Salt Lake City Marriott University Park.
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DOE extends deadline for $6 bn Civil Nuclear Credit Program
DOE-NE + ECA Staff | 5/18/2022
On Wednesday, the U.S. Department of Energy (DOE) extended the deadline for applications and sealed bid submissions under the $6 billion Civil Nuclear Credit (CNC) Program. The announcement comes after requests from two trade groups - Edison Electric Institute and Nuclear Energy Institute - for more time for their members to consider applying for funds under the new federal program to stop nuclear generators from shutting down.
With the extension announced, owners or operators of the nation’s nuclear reactors most at risk of premature closure due to economic hardship now have 47 more days to submit applications. Applications for certification and sealed bids for credits for the first CNC award cycle must now be submitted no later than 11:59 p.m. Mountain Time on July 5, 2022.
The first CNC award cycle is open to owners or operators of U.S. nuclear reactors that have already announced publicly that the reactor is projected to close prior to September 30, 2026, due to economic factors. This ensures that the first award cycle is available to the reactors most at risk of imminent closure. DOE published guidance on how to apply in April 2022.
DOE is simultaneously developing the second award cycle under the CNC program, which will be open to more reactors. The next opportunity to apply will be available in the first quarter of Fiscal Year 2023.
The CNC program supports the continued operation of U.S. nuclear reactors, the nation’s largest source of clean, emissions-free electricity. This essential investment, made possible by President Biden’s Bipartisan Infrastructure Law, will help avoid premature retirements of reactors across the country due to financial hardship, preserve thousands of good-paying clean energy jobs to sustain local economies and protect our supply of carbon-free electricity generation.
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MANHATTAN PROJECT NATIONAL HISTORICAL PARK
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Read about DOE's High Level Waste Interpretation
Have questions about DOE’s recent high-level waste (HLW) interpretation? Download ECA’s Key Points and FAQs on the issue to better understand what ECA believes are the potential benefits of implementation.
Interested in learning more? Read the ECA report “Making Informed Decisions on DOE's Proposed High Level Waste Definition” at www.energyca.org/publications
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Read the latest edition of the ECA Bulletin, a regular newsletter providing a detailed brief of ECA activities, legislative news, and major events from across the DOE complex. Have suggestions for future editions? Email [email protected].
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Learn More about Cleanup Sites with ECA's DOE Site Profiles
ECA's new site profiles detail DOE's 13 active Environmental Management cleanup sites and national laboratories, highlighting their history, missions, and priorities. The profiles are a key source for media, stakeholders, and the public to learn more about DOE site activities, contractors, advisory boards, and their surrounding local governments.
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