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Funding Long-Term Stewardship. James D. Werner, Director of Long-Term Stewardship Office of Environmental Management U.S. Department of Energy. Resources for the Future Workshop Long-Term Stewardship at Contaminated Sites: Innovative Funding and Oversight December 7, 2000.

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Funding long term stewardship

Funding Long-Term Stewardship

James D. Werner, Director of Long-Term Stewardship

Office of Environmental Management

U.S. Department of Energy

Resources for the Future Workshop

Long-Term Stewardship at Contaminated Sites: Innovative Funding and Oversight

December 7, 2000

Where have we been
Where Have We Been?

  • Total estimated cost for EM (~$200 billion) does not include cleanup to “unrestricted use”

  • DOE/EM spent nearly $60 billion from 1989 to present

  • Acknowledged need for long-term stewardship

  • Assistant Secretary Huntoon identified long-term stewardship as Strategic Priority

  • Congress recognizes federal government responsible for long-term stewardship

  • National Research Council Report on LTS (see Attachment E)

Expected annual cost for lts is approximately 100 million
Expected Annual Cost for LTS is Approximately $100 million *


2000-2006 Budget Targets

Long-term Stewardship


Projected Outyear

DOE Environmental

Management Costs



Billions of Dollars



2007-2070 Long-Term

Stewardship Rough Cost

Estimates from the NDAA Report






















*As of 2070

Key challenges for effective lts
Key Challenges for Effective LTS

  • Incorporating long-term stewardship considerations into cleanup decisions

  • Ensuring continued effectiveness of long-term stewardship through multiple changes in property ownership

  • Ensuring open access to information about residual hazards

  • Ensuring reliable and sufficient funding

  • Maintaining continued partnerships with state, local, and Tribal governments

  • Developing mechanisms and technologies to promote the sustainability of long-term stewardship

  • Designing and building the concept of “stewardship prevention” into planning for new construction and operation

Potential funding mechanisms
Potential Funding Mechanisms

  • Annual Congressional Appropriations

    • Proposed LTS budget submitted to OMB

  • Long-term Stewardship Fund(s)/Escrow Account*

    • Annual funding provided from trust fund/escrow account income or escrow account principal

    • Could be created at national, state, site level

  • Fees from DOE Commercial Activities/Sales of Assets*

    • Receipt from asset sales/fees for services would be collected in LTS fund

  • Public-Private Partnerships*

    • Private entities lease site assets at below-market rates in return for funding LTS

* May require new legal authority to establish and operate

Examples of federal trust funds

Attachment A

Examples of Federal Trust Funds

  • Nuclear Waste Fund (42 U.S.C. § 10222)

  • Federal Old Age and Survivors Insurance Trust Fund (42 USC § 401(a))

  • Federal Disability Insurance Trust Fund (42 U.S.C. § 401(b))

  • Black Lung Disability Trust Fund (26 USC § 9501)

  • Aquatic Resources Trust Fund (26 USC § 9504)

  • Harbor Maintenance Trust Fund (26 USC § 9505)

  • Inland Waterways Trust Fund (26 USC § 9506)

  • Airport and Airways Trust Fund (26 USC § 9502)

  • Highway Trust Fund (26 USC § 9503)

  • Vaccine Injury Compensation Trust Fund (26 USC § 9510)

  • Leaking Underground Storage Tank Trust Fund (26 USC § 9508)

  • Hazardous Substance Superfund (26 USC § 9507); uses of fund (42 USC § 9611)

  • Oil Spill Liability Trust Fund (26 USC § 9509)

Attachment B

Congressional Report on Long-Term Stewardship


  • The FY 2000 National Defense Authorization Act requires the development of a Long-term Stewardship Report that:

    • Identifies sites or portions of sites where environmental restoration, waste disposal, and facility stabilization will be completed by 2006 without unrestricted land use

    • Includes sufficient detail to undertake the necessary management and stewardship responsibilities including cost, scope, and schedule


  • Information necessary for the Congressional Report must be compiled by DOE Headquarters from Field Office staff

  • Draft data call/guidance issued - December 1999

  • Data call/guidance issued - February

  • Initial data from field staff to HQ - April

  • Pre-concurrence draft - June

  • Concurrence draft - July

  • Final Report expected to be delivered to Congress in December, 2000

Will provide initial scope of existing and projected site-by-site long-term stewardship activities.

Attachment C

Long-Term Stewardship (LTS) Studyfor PEIS Settlement


  • Address national and cross-cutting institutional and programmatic issues,not site-specific issues

  • Follow CEQ/DOE NEPA process for public involvement, but not a NEPA document


  • 120-day public scoping period from October 6, 1999 to February 3, 2000

  • Scoping workshops in TN, NV, OH and ID

  • Draft Study released October 31, 2000

  • 45-day public comment period; Public hearing in Washington, D.C. on November 30, 2000

  • Final Study following public comment period

Major Topics:

  • Hazard Management

  • Managing Real Property

  • Information Management

  • Funding & Financial Management

  • Environmental & Socioeconomic Issues

  • Sustainability

Will not determine policiesWill provide research and analytical support for policy development process.

Attachment D

Other Current Tasks

  • Database of sites with past involvement in nuclear weapons related activities

  • New National Academy of Sciences study on buried transuranic waste

  • National Academy of Sciences study of long-term institutional management released in October, 2000

  • Strategic plan for long-term stewardship

  • DOE policy for long-term stewardship responsibility at sites with expected non-EM mission

  • Web page (

  • DOE staff working group — headquarters and field staff

  • $6.25 million Citizen Monitoring and Technical Assessment Fund pursuant to PEIS lawsuit settlement

  • Case studies and workshops conducted by Energy Communities Alliance, Environmental Law Institute, National Association of Attorneys General, and National Governors Association

  • Analysis of funding mechanisms options by Resources For the Future

National research council report

Attachment E

National Research Council Report*

  • “[S]tewardship is a pervasive concept and not simply a set of measures to be implemented once remediation is complete”

  • “[E]ffectiveness of cleanup is reliant upon the effectiveness of three measures: contamination reduction, contaminant isolation, and stewardship measures”

  • “The [NRC] Committee . . . finds that much regarding DOE’s intended reliance on long-term stewardship is at this point problematic.”

*Long-term Institutional Management of U.S. Department of Energy Legacy Waste Sites.

National Academy of Sciences, National Research Council, August 2000

National research council report ctd

Attachment F

National Research Council Report (ctd.)

  • Recommended five strategic objectives for an effective LTS program:

    • Plan for uncertainty

    • Plan for fallibility

    • Develop appropriate incentive structures

    • Undertake scientific, technical, and social research and development

    • Implement an iterative strategy that allows adaptation to changing conditions or unexpected outcomes