	Background

DOE has a vast complex of sites across the nation dedicated to the nuclear  weapons program. DOE expects this  process to concentrate at least 90 percent of the radioactivity into a much  smaller volume that can be permanently isolated for at least 10,000 years  in a geologic repository. Based on current disposal standards used by the  NRC, if the radioactivity of this remaining waste is sufficiently low, it  can be disposed of on site near the surface of the ground, using less  complex and expensive techniques than those required for the highly  radioactive portion. DOE plans to dispose of this waste on site in vaults  or canisters, or at other designated disposal facilities. DOE’s Initiative for Accelerating Cleanup Is Still Evolving, with the Extent of Savings Uncertain

DOE’s new initiative, implemented in 2002, attempts to address the  schedule delays and increasing costs DOE has encountered in its efforts to  treat and dispose of high-level waste. Savings Estimate May Not Be Reliable

Our review indicates that DOE’s current estimate of $29 billion may not  yet be reliable and that the actual amount to be saved if DOE successfully  implements the alternative waste treatment and disposal strategies may be  substantially different from what DOE is projecting. Key Legal and Technical Challenges Could Limit Potential Savings from DOE’s Accelerated Cleanup Initiative

DOE faces significant legal and technical challenges in achieving the  cost and schedule reductions proposed in its new initiative. On the legal  side, DOE’s proposals depend heavily on the agency’s authority to apply  a designation other than “high-level waste” to the low-activity portion  of the waste stream, so that this low-activity portion does not have to  be disposed of more expensively as high-level waste. DOE’s Accelerated Initiative Relies on a Process for Reclassifying Waste That the Court Has Ruled Invalid

DOE has traditionally managed all of the wastes in its tanks as high-level  waste because the waste resulted primarily from the reprocessing of spent  nuclear fuel and contains significant amounts of radioactivity. The challenge to successfully separate the waste is significant at the  Hanford Site, where DOE intends to build a facility for separating the  waste before fully testing the separation processes that will be used. Opportunities Exist to Explore Additional Cost Savings and to Strengthen Program Management

In addition to the potential cost savings identified in the accelerated  site cleanup plans, DOE continues to develop and evaluate other proposals  to reduce costs but is still assessing them. DOE also has a  number of initiatives under way to improve overall program management. New Technology Is Incorporated before It Is Sufficiently Mature

Our work on Department of Defense acquisitions has documented a set of  “best practices” used by industry for integrating new technology into  major projects. Furthermore, specific components of this initiative face key legal and  technical challenges.
Why GAO Did This Study

The Department of Energy (DOE) oversees the treatment and disposal of 94 million gallons of highly radioactive nuclear waste from the nation's nuclear weapons program, currently at DOE sites in Washington, Idaho, and South Carolina. In 2002, DOE began an initiative to reduce the estimated $105-billion cost and 70-year time frame of this cleanup. GAO was asked to testify on the status of this initiative, the legal and technical challenges DOE faces in implementation, and any further opportunities to reduce costs or improve program management. GAO's testimony is based on a report (GAO-03-593) released at the hearing.

What GAO Found

DOE's initiative for reducing the costs and time required for cleanup of high-level wastes is still evolving. DOE's main strategy for treating high-level waste continues to include separating and concentrating much of the radioactivity into a smaller volume for disposal in a geologic repository. Under the initiative, DOE sites are evaluating other approaches, such as disposing of more waste on site. DOE's current savings estimate for these approaches is $29 billion, but the estimate may not be reliable or complete. For example, the savings estimate does not adequately reflect uncertainties or take into account the timing of when savings will be realized. DOE faces significant legal and technical challenges to realize these savings. A key legal challenge involves DOE's process for deciding that some waste with relatively low concentrations of radioactivity can be treated and disposed of on-site. A recent court ruling invalidated this process, putting the accelerated schedule and potential savings in jeopardy. A key technical challenge is that DOE's approach relies on laboratory testing to confirm separation of the waste into high-level and low-activity portions. At the Hanford Site in Washington State, DOE plans to build a facility before conducting integrated testing of the waste separation technology--an approach that failed on a prior major project. DOE is exploring proposals, such as increasing the amount of high-level waste in each disposal canister, that if successful could save billions of dollars more than the current $29 billion estimate. However, considerable evaluation remains to be done. DOE also has opportunities to improve program management by fully addressing recurring weaknesses GAO has identified in DOE's management of cleanup projects, including the practice of incorporating technology into projects before it is sufficiently tested.