DOE plans to permanently dispose of the high-level portion of the  separated waste in a geologic repository developed pursuant to the  Nuclear Waste Policy Act. 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. However, even the $29 billion estimate may  not be reliable. Adjusting the savings estimate to  present value in 2003 results in a savings of $2.8 billion in 2003 dollars. Key Legal and Technical Challenges Could Limit Potential Savings from DOE’s Accelerated Cleanup Initiative

DOE faces significant legal and technical challenges to 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 as high-level waste. DOE’s authority to make such  determinations is being challenged in court. At the Savannah River  and Hanford sites, for example, DOE is identifying ways to increase the  amount of waste that can be placed in its high-level waste canisters to  reduce treatment and disposal costs. DOE Is Considering Additional Potential Opportunities to Reduce Costs

DOE is continuing to identify other proposals for reducing costs under  its accelerated cleanup initiative. DOE Has Opportunities to Improve Management of the Program by Addressing Previously Identified Weaknesses

In addition to DOE’s efforts to identify site-specific proposals for saving  time and money, DOE is also undertaking management improvements  using teams to study individual issues. Furthermore, specific components of this initiative face key legal and  technical challenges. Much of the potential for success rests on DOE’s  continued ability to dispose of large quantities of waste with relatively low  concentrations of radioactivity on-site by applying its incidental waste  process. Any technical problems with these processes will  likely result in costly delays. Recommendations for Executive Action

To help ensure that DOE’s accelerated cleanup initiative is effective and  that cleanup of high-level waste proceeds in a timely and cost-effective  manner, we recommend that the Secretary of the Department of Energy    seek clarification from the Congress regarding DOE’s authority for  designating waste as incidental to reprocessing if the current challenge  becomes an extended legal process, in order to help DOE determine  what strategy it needs to move its initiative forward and realize  potential savings;  reassess the potential risks, costs, and benefits of constructing an  integrated pilot-scale waste separation facility at the Hanford site to more  fully test separation technologies before completing construction of a  full-scale facility; and    ensure that DOE’s high-level waste projects (1) include a current and  rigorous analysis of the risks, costs, and benefits associated with the  decisions being implemented, in accordance with OMB guidance;  (2) incorporate new technologies consistent with best practices and  DOE guidance so that risks and costs are more effectively managed; and  (3) are carefully evaluated as to the appropriateness of using a fast-track  approach to designing and constructing complex nuclear facilities, and  that the potential risks and costs associated with this approach are  explicitly identified and considered.
Why GAO Did This Study

The Department of Energy (DOE) oversees one of the largest cleanup programs in history--the treatment and disposal of 94 million gallons of highly radioactive nuclear waste from the nation's nuclear weapons program. This waste is 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 determine the status of this initiative, the legal and technical challenges DOE faces in implementing it, and any further opportunities to reduce costs or improve program management.

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 authority to decide that some waste with relatively low concentrations of radioactivity can be disposed of on site. This authority is being challenged in court, and a prolonged challenge or an adverse decision could seriously hamper DOE's ability to meet its accelerated schedules. 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 integrated testing of the separation technology--an approach that has failed on other projects in the past, resulting in significant cost increases and schedule delays. DOE is exploring proposals, such as increasing the amount of high-level waste in each disposal canister, which if successful could result in billions of dollars in additional savings. 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.