DOD’s Latest Report to Congress Captures More-Comprehensive Environmental Cleanup Cost Information, but Omits Emerging Contaminants’ Cleanup Costs

DOD has captured and reported more-comprehensive cost information in  its environmental cost reporting for installations closed under BRAC;  however, DOD has not reported to Congress that the cleanup of  emerging contaminants could significantly increase the total cost of  environmental cleanup at installations closed by the BRAC process. For example, we reported in  2007 that the costs for environmental cleanup for installations closed  under the 2005 BRAC round were not complete partly because DOD  excluded the cleanup costs for contaminants released on DOD property  after 1986 and munitions released on DOD property after 2002. In its annual report to Congress, DOD reported that it spent $609.6  million to clean up properties closed under BRAC in fiscal year 2015. DOD Has Made Progress in Transferring Excess Property, but Information on Successful Mitigation Strategies Is Not Widely Available

DOD has used a variety of methods since our 2007 report to continue to  make progress in transfers of unneeded BRAC property. At the same  time, installation officials stated that challenges remain, including unique  situations that will require more time to overcome, and others that are  more widespread, such as navigating multiple regulatory agencies or  dealing with emerging contaminants. Regarding only the 2005 BRAC round, DOD reported that it had  transferred about 66 percent (60,224 out of 90,914 acres) of its unneeded  property as of September 30, 2015. When an installation is closed under BRAC, the  unneeded property is reported as excess. Officials Identified Challenges That Impede Progress, but DOD Does Not Have a Method for Installation Officials to Share Lessons Learned on Successful Mitigation Strategies

Installation officials and local redevelopment authority representatives  involved in the cleanup, transfer, and reuse of the property identified  challenges that continue to impede the environmental cleanup and  transfer process. Installation officials we spoke with stated that they periodically reach out  to officials at other installations informally, even across services, for help  in learning how to expedite or resolve these challenges as well as others,  but there is no formal mechanism, such as a web-based database, within  DOD to capture this type of information. Without a repository or method to record and share lessons  learned, installation personnel charged with implementing cleanup efforts  are missing opportunities to share lessons learned about how various  locations have successfully addressed cleanup challenges and may  therefore be at risk of duplicating errors made in the past by others who  faced the same kind of cleanup issues. Environmental cleanup is costly,  and DOD estimates that it will need about $3.4 billion in addition to the  approximately $11.5 billion it has already spent to manage and complete  environmental cleanup of installations closed under all BRAC rounds. Without including such information in its annual report,  DOD has not provided Congress full visibility over the expected increase  in costs and the necessary information to make more-informed funding  decisions. Recommendations for Executive Action

To provide Congress with better visibility over the costs for the  environmental cleanup of properties from all BRAC rounds to inform  future funding decisions, we recommend that the Secretary of Defense  direct the Secretaries of the military departments to include in future  annual reports to Congress that environmental cleanup costs will increase  due to the cleanup of perfluorinated compounds and other emerging  contaminants, and to include best estimates of these costs as additional  information becomes available. In its  written comments, DOD concurred with our recommendations. Appendix I: Scope and Methodology

To determine the extent to which the Department of Defense (DOD) has  made progress in capturing and reporting environmental cleanup costs at  installations closed under all prior Base Realignment and Closure (BRAC)  rounds, we collected cost data from the Office of the Deputy Assistant  Secretary of Defense for Environment, Safety, and Occupational Health’s  Knowledge-Based Corporate Reporting System as of September 30,  2015. Military Base Realignments and Closures: Estimated Costs Have  Increased While Savings Estimates Have Decreased Since Fiscal Year  2009.
Why GAO Did This Study

The environmental cleanup of bases closed under the BRAC process has historically been an impediment to the expeditious transfer of unneeded property to other federal and nonfederal parties. While DOD is obligated to ensure that former installation property is cleaned up to a level that is protective of human health and the environment, the cleanup process can delay redevelopment in communities affected by the BRAC process.
The House Report accompanying the fiscal year 2016 Military Construction, Veterans Affairs, and Related Agencies Appropriations Bill includes a provision for GAO to update its 2007 report on the environmental cleanup and transfer of installations closed under BRAC. This report addresses the extent to which DOD has made progress in: (1) capturing and reporting environmental cleanup costs at installations closed under BRAC and (2) transferring excess property and mitigating any challenges. GAO reviewed DOD guidance, cost data, and property transfer data; visited installations selected from among those with the highest cleanup costs, as well as other factors; and interviewed DOD and service officials.

What GAO Found

The Department of Defense (DOD) has captured and reported more comprehensive cost information in its environmental cost reporting for installations closed under the Base Realignment and Closure (BRAC) process since GAO last reported on the issue in 2007. For example, GAO reported in 2007 that the costs DOD reported for environmental cleanup for installations closed under the 2005 BRAC round were not complete; however, since fiscal year 2009, DOD's annual reports to Congress on environmental cleanup have included cleanup costs for all identified munitions and contaminants. For example, DOD estimated as of September 30, 2015, that it will need about $3.4 billion to complete environmental cleanup for installations closed under all BRAC rounds, in addition to the approximately $11.5 billion it has already spent. Despite this improvement in reporting, DOD has not reported to Congress in its annual report that the removal of certain emerging contaminants (i.e., contaminants that have a reasonable possible pathway to enter the environment, present a potential unacceptable human health or environmental risk, and do not have regulatory standards based on peer-reviewed science) will be significant. Without DOD including in its annual report to Congress its best estimate of these increased costs, Congress will not have visibility into the significant costs and efforts associated with the cleanup of emerging contaminants on BRAC installations and therefore will not have the necessary information to make more informed funding decisions.
DOD has used a variety of methods since GAO's 2007 report to continue to make progress in transfers of unneeded BRAC property. For example, as of September 30, 2015, DOD reported that it had transferred about 85 percent of its unneeded property identified in all BRAC rounds (see figure below). Despite this progress, installation officials stated that they continue to face challenges, such as navigating multiple regulatory agencies or disposing of radiological contamination, that increased the time it takes to clean up and transfer property. Installation officials GAO spoke with stated that they periodically reach out to officials at other installations, and across services, for help in learning how to expedite or resolve challenges, but there is no formal mechanism within DOD to capture and share this type of information. Installation officials further stated that a system to capture lessons learned would assist them in this effort. Without a mechanism to record and share lessons learned, installation personnel charged with implementing cleanup efforts are missing opportunities to share information and could duplicate errors made in the past.

What GAO Recommends

GAO recommends that (1) DOD include in future reports to Congress that the cleanup of emerging contaminants will increase cleanup costs, and estimate such costs, and (2) share best practices on mitigating cleanup and property transfer challenges. DOD concurred with GAO's recommendations.