As such, disposal is one of the last steps in the  D&D process. 2). The remaining facilities were disposed  of through other mechanisms such as transfer to federal entities or sale to  local governments. EM Transferred by Sale a Limited Number of Uncontaminated Facilities and Land Parcels for Reuse

EM completed 21 property disposals through the process of transfer by  sale from 2003 through 2013, at no cost and with the provision of  indemnification. According to EM officials, from 2003 through 2013,  13 facilities totaling more than 331,000 square feet were transferred by  sale from the Oak Ridge Reservation in Oak Ridge, Tennessee to the  CRO or local government for economic development. None of  the facilities, which had been used for a variety of purposes including  office buildings and a warehouse, was contaminated and as a result did  not require D&D. Data Limitations and an Unclear Policy Impede DOE’s Ability to Effectively Manage Its Decentralized Property Disposal Process

		DOE Does Not have Timely and Complete Data to Oversee Its Property Disposal Process

Limitations in its data on facilities that are undergoing or have completed  D&D may impede DOE’s ability to effectively manage its real property  assets, including their disposal. DOE and EM each maintain a database  that contains information on facilities that are undergoing or have  completed D&D. However, neither system collects all the information  DOE would need to effectively manage this subgroup of its real property  portfolio. The Order also states that excess real properties that are appropriate for  economic development transfer must be identified and disposed of;  however, the policy is unclear as it does not identify who is responsible  for these tasks or when they should identify such properties. By not taking a proactive approach to identifying and transferring property  that is suitable for economic development purposes, DOE may forgo  opportunities to reduce its overall footprint and achieve efficiencies in the  disposal process. DOE Has Taken Some Actions to Address Property Disposal Challenges

		Stakeholders Cited Renovation Costs, Security Restrictions, and Lengthy Processes as Challenges That Limit Property Disposals

DOE officials at headquarters and the site level, CRO representatives,  and local government officials we interviewed identified several  challenges to disposing of EM properties. According to DOE officials at headquarters and all seven of the  selected sites, as well as all nine stakeholders we interviewed, facility  characteristics limit the reuse potential for some EM facilities. Specifically, many of these facilities were built for a unique purpose  and their construction makes reuse for other purposes difficult. Facilities require significant renovation prior to reuse. Selling or leasing properties within the boundaries of secure sites may  pose security concerns. Similarly, as part of  a reindustrialization program at ETTP, EM transferred by sale 13 facilities  and 8 land parcels to the CRO for economic development. For DOE, those challenges are  compounded by the fact that some of its excess properties have been  contaminated as a result of their use in supporting the development of  nuclear weapons and nuclear energy research. DOE’s ability to manage  the disposal of these properties is impeded by its reliance on data that are  not always timely or complete. Recommendations for Executive Action

To help DOE make more informed decisions regarding its management  and disposal of real property held by EM, we recommend that the  Secretary of Energy take the following actions:
DOE should take steps to ensure that its real property data systems  provide timely and complete data on the status and major milestones  of facilities undergoing D&D at a level of detail that supports sound  decision making. With regard to our recommendation that DOE develop and document an  approach to property transfer consistent with its policy to identify and  transfer properties appropriate for economic development purposes, DOE  responded that it will issue a policy memorandum that will (1) assign  responsibility for identifying such properties and (2) include the timeframe  and manner of identification and any resulting notification. Appendix I: Objectives, Scope, and Methodology

Our objectives were to (1) describe the number and characteristics of  facilities for which the Department of Energy’s (DOE) Office of  Environmental Management (EM) completed the deactivation and  decommissioning (D&D) process from 2003 through 2013, (2) assess  DOE’s management of the disposal of properties that were EM’s  responsibility, and (3) identify the challenges DOE faced in disposing of  these properties and actions it has taken to address those challenges. We did  not assess or examine DOE’s management of the D&D process itself in  this report. To assess DOE’s management of the disposal of properties that were  EM’s responsibility, we analyzed DOE’s policies and guidance related to  real property management and interviewed officials at headquarters and  at the site level about the disposal of these properties in practice.
Why GAO Did This Study

Disposing of properties that are excess to DOE's current and future needs is complicated because many are contaminated as a result of their use supporting nuclear weapons development and nuclear energy research. As part of this disposal, DOE's EM oversees the environmental cleanup and for facilities, their D&D. GAO was asked to examine DOE's management of the disposal of these types of properties.
This report (1) describes the facilities for which EM completed D&D from 2003 through 2013, (2) assesses DOE's management of the disposal of EM properties, and (3) identifies challenges DOE faced in disposing of these properties and actions taken to address those challenges. GAO analyzed DOE data, reviewed relevant policies and guidance on real property management, and interviewed DOE officials at headquarters and at seven DOE sites selected to represent a variety of sizes, locations, and experiences with property disposal. GAO also interviewed stakeholders from CROs and local governments.

What GAO Found

From 2003 through 2013, the Department of Energy's (DOE) Office of Environmental Management (EM)—the office responsible for the deactivation and decommissioning (D&D) of the agency's contaminated facilities—disposed of nearly 2,000 facilities across 19 sites in 13 states, according to EM data. The majority of these facilities were disposed of through demolition because of their contamination levels. During this time, EM also disposed of a limited number of uncontaminated facilities and land parcels through transfer by sale. EM transferred by sale 21 properties—13 facilities and 8 land parcels—at the Oak Ridge Reservation in Oak Ridge, Tennessee to a community reuse organization (CRO)—an organization whose purpose is to facilitate the reuse of unneeded DOE properties—and the local government.
DOE's ability to manage its decentralized property-disposal process is impeded by data limitations and an unclear policy. DOE and EM each maintain a database that contains information on facilities that are undergoing or have completed D&D. However, neither system collects all the information DOE officials would need to effectively manage this subgroup of its real property portfolio, such as when D&D of a facility started or was completed. In addition, DOE's database, which serves as the agency's source of information on all real property holdings, is not always timely or complete, a shortcoming that limits the value to officials as a source of information for decision making. Furthermore, although DOE's policy requires that excess real properties appropriate for transfer for economic development purposes be identified and disposed of, it does not identify what entity is responsible for these tasks or when it should identify such properties. As a result, almost none of the officials GAO interviewed at headquarters and at the site-level was proactively or systematically identifying or disposing of these properties. Consequently, DOE may be forgoing opportunities to reduce its overall footprint and achieve efficiencies in the disposal process.
DOE officials at headquarters and the selected sites as well as stakeholders—representatives of CROs and local governments—identified several challenges to disposing of EM properties for reuse, including:
Facilities' characteristics, such as unique construction for a specific purpose, can limit reuse potential.
Facilities may require significant renovation prior to reuse due to their age and condition.
Properties located within the boundaries of secure sites may pose security concerns, making selling or leasing properties difficult.
Property disposal processes are lengthy and may limit reuse.
EM and DOE have taken some actions, such as instituting more flexible cleanup processes, to accelerate D&D and to develop strategies to improve the property disposal process. In addition, at one site, EM transferred properties by sale to the CRO and reported using the cost savings to direct additional funds to D&D, a step that in turn, accelerated the cleanup of the remaining facilities. DOE also established a task force in 2011 that provided sites an opportunity to share information about ways to improve property disposal processes and timelines.

What GAO Recommends

GAO recommends that DOE (1) take steps to ensure its data systems provide timely and complete data that support sound decision making and (2) develop and document an approach to property transfer—including roles and responsibilities—consistent with DOE's policy to identify and transfer properties for economic development purposes. DOE concurred with GAO's recommendations and identified steps it plans to take to implement them.