[House Hearing, 116 Congress] [From the U.S. Government Publishing Office] DOE'S MOUNTING CLEANUP COSTS: BILLIONS IN ENVIRONMENTAL LIABILITY AND GROWING ======================================================================= HEARING BEFORE THE SUBCOMMITTEE ON OVERSIGHT AND INVESTIGATIONS OF THE COMMITTEE ON ENERGY AND COMMERCE HOUSE OF REPRESENTATIVES ONE HUNDRED SIXTEENTH CONGRESS FIRST SESSION __________ MAY 1, 2019 __________ Serial No. 116-29 [GRAPHIC NOT AVAILABLE IN TIFF FORMAT] Printed for the use of the Committee on Energy and Commerce govinfo.gov/committee/house-energy energycommerce.house.gov __________ U.S. GOVERNMENT PUBLISHING OFFICE 39-903 PDF WASHINGTON : 2020 -------------------------------------------------------------------------------------- COMMITTEE ON ENERGY AND COMMERCE FRANK PALLONE, Jr., New Jersey Chairman BOBBY L. RUSH, Illinois GREG WALDEN, Oregon ANNA G. ESHOO, California Ranking Member ELIOT L. ENGEL, New York FRED UPTON, Michigan DIANA DeGETTE, Colorado JOHN SHIMKUS, Illinois MIKE DOYLE, Pennsylvania MICHAEL C. BURGESS, Texas JAN SCHAKOWSKY, Illinois STEVE SCALISE, Louisiana G. K. BUTTERFIELD, North Carolina ROBERT E. LATTA, Ohio DORIS O. MATSUI, California CATHY McMORRIS RODGERS, Washington KATHY CASTOR, Florida BRETT GUTHRIE, Kentucky JOHN P. SARBANES, Maryland PETE OLSON, Texas JERRY McNERNEY, California DAVID B. McKINLEY, West Virginia PETER WELCH, Vermont ADAM KINZINGER, Illinois BEN RAY LUJAN, New Mexico H. MORGAN GRIFFITH, Virginia PAUL TONKO, New York GUS M. BILIRAKIS, Florida YVETTE D. CLARKE, New York, Vice BILL JOHNSON, Ohio Chair BILLY LONG, Missouri DAVID LOEBSACK, Iowa LARRY BUCSHON, Indiana KURT SCHRADER, Oregon BILL FLORES, Texas JOSEPH P. KENNEDY III, SUSAN W. BROOKS, Indiana Massachusetts MARKWAYNE MULLIN, Oklahoma TONY CARDENAS, California RICHARD HUDSON, North Carolina RAUL RUIZ, California TIM WALBERG, Michigan SCOTT H. PETERS, California EARL L. ``BUDDY'' CARTER, Georgia DEBBIE DINGELL, Michigan JEFF DUNCAN, South Carolina MARC A. VEASEY, Texas GREG GIANFORTE, Montana ANN M. KUSTER, New Hampshire ROBIN L. KELLY, Illinois NANETTE DIAZ BARRAGAN, California A. DONALD McEACHIN, Virginia LISA BLUNT ROCHESTER, Delaware DARREN SOTO, Florida TOM O'HALLERAN, Arizona ------ Professional Staff JEFFREY C. CARROLL, Staff Director TIFFANY GUARASCIO, Deputy Staff Director MIKE BLOOMQUIST, Minority Staff Director Subcommittee on Oversight and Investigations DIANA DeGETTE, Colorado Chair JAN SCHAKOWSKY, Illinois BRETT GUTHRIE, Kentucky JOSEPH P. KENNEDY III, Ranking Member Massachusetts, Vice Chair MICHAEL C. BURGESS, Texas RAUL RUIZ, California DAVID B. McKINLEY, West Virginia ANN M. KUSTER, New Hampshire H. MORGAN GRIFFITH, Virginia KATHY CASTOR, Florida SUSAN W. BROOKS, Indiana JOHN P. SARBANES, Maryland MARKWAYNE MULLIN, Oklahoma PAUL TONKO, New York JEFF DUNCAN, South Carolina YVETTE D. CLARKE, New York GREG WALDEN, Oregon (ex officio) SCOTT H. PETERS, California FRANK PALLONE, Jr., New Jersey (ex officio) C O N T E N T S ---------- Page Hon. Diana DeGette, a Representative in Congress from the State of Colorado, opening statement................................. 2 Prepared statement........................................... 3 Hon. Brett Guthrie, a Representative in Congress from the Commonwealth of Kentucky, opening statement.................... 4 Prepared statement........................................... 6 Hon. Frank Pallone, Jr., a Representative in Congress from the State of New Jersey, opening statement......................... 7 Prepared statement........................................... 8 Hon. Greg Walden, a Representative in Congress from the State of Oregon, opening statement...................................... 9 Prepared statement........................................... 11 Witnesses Anne White, Assistant Secretary, Office of Environmental Management, Department of Energy............................... 13 Prepared statement........................................... 16 Answers to submitted questions............................... 70 David C. Trimble, Director, Natural Resources and Environment, Government Accountability Office............................... 19 Prepared statement........................................... 21 Answers to submitted questions............................... 99 DOE'S MOUNTING CLEANUP COSTS: BILLIONS IN ENVIRONMENTAL LIABILITY AND GROWING ---------- WEDNESDAY, MAY 1, 2019 House of Representatives, Subcommittee on Oversight and Investigations, Committee on Energy and Commerce, Washington, DC. The subcommittee met, pursuant to call, at 10:29 a.m., in room 2322, Rayburn House Office Building, Hon. Diana DeGette (chair of the subcommittee) presiding. Members present: Representatives DeGette, Schakowsky, Kennedy, Ruiz, Kuster, Castor, Clarke, Pallone (ex officio), Guthrie (subcommittee ranking member), Burgess, Griffith, Brooks, Mullin, Duncan, and Walden (ex officio). Staff present: Mohammad Aslami, Counsel; Kevin Barstow, Chief Oversight Counsel; Chris Knauer, Oversight Staff Director; Jourdan Lewis, Policy Analyst; Perry Lusk, GAO Detailee; Jon Monger, Counsel; Elysa Montfort, Press Secretary; Meghan Mullon, Staff Assistant; Kaitlyn Peel, Digital Director; Nikki Roy, Policy Coordinator; Jen Barblan, Minority Chief Counsel, Oversight and Investigations; Margaret Tucker Fogarty, Minority Staff Assistant; Brittany Havens, Minority Professional Staff Member, Oversight and Investigations; Peter Kielty, Minority General Counsel; and Alan Slobodin, Minority Chief Investigative Counsel, Oversight and Investigations. Ms. DeGette. The Subcommittee on Oversight and Investigations will now come to order. Today, the Subcommittee on Oversight and Investigations is holding a hearing entitled, ``DOE's Mounting Cleanup Costs: Billions in Environmental Liability and Growing.'' The purpose of the hearing is to discuss the DOE's management of its environmental cleanup program and significant increases in environmental liabilities over the years. And I will note before we start that there is another hearing going on downstairs in the Energy and Commerce Committee. There is also a full committee markup going on in Natural Resources. So people will be coming in and out, but it doesn't mean that they are not paying attention. The Chair now recognizes herself for purposes of an opening statement. OPENING STATEMENT OF HON. DIANA DeGETTE, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF COLORADO Today, we continue the Subcommittee on Oversight and Investigations' longstanding efforts to oversee the Department of Energy's management of its environmental cleanup programs. Over the course of the Cold War, the United States developed an industrial complex to research, test, and produce nuclear power reactors and weapons. This effort left behind thousands of tons of radioactive waste, and contaminated soil and water at sites nationwide, and the United States Government is financially liable for cleaning it up. It now estimated that it will cost hundreds of billions of dollars to do so. The Department of Energy's Office of Environmental Management, or EM, is largely responsible for this difficult task. It does this by managing contractors and complex cleanup operations at sites across the United States. I know how important this work is because there is just one of these sites up the road from my district, the Rocky Flats Plant in Colorado. The good news is that over the prior decades, EM has successfully cleaned up Rocky Flats and many other sites. The bad news is that they have--there are 16 remaining sites which still need major work and are, arguably, the most challenging and costly to clean up. On top of that, the estimated cost to address these remaining sites is large and quickly growing. For example, according to GAO, EM's environmental liability grew by a total of $214 billion since just 2011 and, as of 2018, this figure had climbed to a staggering $377 billion. During this same period, EM spent $48 billion on cleanup efforts, which means that environmental liability is growing at a faster rate than DOE's spending and, possibly, even its ability to clean up these sites. The GAO has told the committee that this growing liability poses not only a financial risk to the taxpayer, but possibly to cleanup operations if corners are cut or important tasks are deferred to future dates due to costs. Over the last few decades, this committee, the GAO, and others have raised numerous concerns about DOE's management of these cleanups. Unfortunately, many of the same concerns and questions continue to this day. In 2017, and again this year, GAO included the Federal Government's environmental liabilities in its ``high risk'' list, which are those Federal programs that are most at risk to fraud, waste, or mismanagement. But this should come as no surprise. Over the years, GAO has raised numerous concerns about DOE's EM office. Even today, GAO will testify that DOE has not conducted a formal analysis to fully understand the root causes of why these environmental liabilities are growing each year by tens of billions of dollars. If they don't understand what is driving costs, it is difficult to believe how they can fully control them. The GAO will also report that EM is still failing to follow best program and best project practices, like having a regularly updated management plan and roadmap, having reliable life-cycle cost estimates and master schedules that are updated on a regular basis, and conducting risk management throughout the life of the program. Now, I appreciate that many of the challenges facing EM span several administrations and, further, that DOE has begun to make changes in how it is attempting to manage these sites. I also appreciate that Assistant Secretary White--and thank you for being here--will tell us today that she intends to implement many of the recommendations GAO and others have made in recent reports. But, you know, I have been on this committee a long time. We have many seen DOE make these promises before with regards to cleanup operations. And here we are talking again about a program that needs major management attention. So, Secretary White, we look forward to working with you to make sure that it actually happens this time. And finally, beyond the promises, I remain concerned that EM lacks sufficient staff, expertise, and resources--most importantly, resources--to accomplish the tasks that we will talk about today, including implementing the GAO's recommendation. To that end, the Trump administration's proposed budget cuts to EM will not make things any better, particularly when it comes to implementing some of the best practices that are being proposed. So, in conclusion, I am hoping EM can fully explain to Congress and the American people what is driving the continued increase in DOE's environmental liability but also whether the GAO believes any new DOE proposals will reverse this trend. Cleanup of these sites is critically important. We need to have it happen, and we can't be sitting here again in 5, 10, or 20 years hoping that it will. [The prepared statement of Ms. DeGette follows:] Prepared Statement of Hon. Diana DeGette Today, we continue the Subcommittee on Oversight and Investigations' long-standing efforts to oversee the Department of Energy's management of its environmental cleanup programs. Over the course of the Cold War, the United States developed an industrial complex to research, test, and produce nuclear power reactors and weapons. This effort left behind thousands of tons of radioactive waste, and contaminated soil and water at sites nationwide, and the United States Government is financially liable for cleaning it up. It now estimated that it will cost hundreds of billions of dollars to do so. The Department of Energy's Office of Environmental Management-or ``EM''-is largely responsible for this difficulttask. It does this by managing contractors and complex cleanup operations at sites across the United States. I know how important this work is because one site, the Rocky Flats Plant in Colorado, is just up the road from my district. The good news is that, over the prior decades, EM has successfully cleaned up Rocky Flats and many other sites. The bad news is that the remaining 16 sites-which still need major work-are arguably the most challenging and costly to cleanup. On top of that, the estimated cost to address these remaining sites is large and is quickly growing. For example, according to GAO, EM's environmental liability grew by a total of $214 billion since just 2011. And, as of 2018, this figure had climbed to a staggering $377 billion. During this same period, EM spent $48 billion on cleanup efforts, which means environmental liability is growing at a level that is outpacing DOE's spending and, possibly, its ability to cleanup these sites. GAO has told the committee that this growing liability poses not only a financial risk to the taxpayer, but possibly to cleanup operations if corners are cut or important tasks are deferred to future dates due to costs. Over the past several decades, this committee, GAO, and others have raised numerous concerns about DOE's management of these cleanups. Unfortunately, many of those same concerns and questions continue to this day. In 2017, and again this year, GAO included the Federal Government's environmental liabilities to its ``High-Risk'' list which are those Federal programs that are most at risk to fraud, waste, or mismanagement. But this should come as no surprise. Over the years, GAO has raised numerous concerns about DOE's EM office. Even today, GAO will testify that DOE has not conducted a formal analysis to fully understand the root causes of why these environmental liabilities are growing each year by tens of billions of dollars. If they don't understand what is driving costs, it's difficult to believe they can fully control them. GAO will also report that EM is still failing to follow best program and best project practices, like having a regularly updated management plan and roadmap; having reliable lifecycle cost estimates and master schedules that are updated on a regular basis; and conducting risk management throughout the life of the program. I appreciate that many of the challenges facing EM span several administrations and further that DOE has begun to make changes to how it is attempting to manage these sites. I also appreciate that Assistant Secretary White will tell us today that she intends to implement many of the recommendations GAO and others have made in recent reports. But many on this committee have seen DOE make these promises before with regards to cleanup operations. And yet we are again in this room talking about a program that again needs major management attention. Finally, beyond the promises, I remain concerned that EM lacks sufficient staff, expertise, and resources to accomplish some of the tasks it will talk about today including implementing the many recommendations GAO has made to improve this program. To that end, the Trump administration's proposed budget cuts to EM will not make things any better, particularly when it comes to implementing some of the best practices that are being proposed. So, in conclusion, I hope EM can fully explain to Congress and the American people what is driving the continued increase in DOE's environmental liability but also, whether GAO believes any new DOE proposals will reverse this trend. Cleaning up these sites is a critically important task of the Federal Government. Hundreds of billions of tax dollars are at stake. So too is the health and environment of the communities that surround these sites. This is an area we must get right, and I intend to have this committee continue paying attention to this important area. With that, I yield back. Ms. DeGette. And so with that, I yield back. I want to thank the witnesses for appearing, and I want to recognize the ranking member, Mr. Guthrie from Kentucky, for 5 minutes. OPENING STATEMENT OF HON. BRETT GUTHRIE, A REPRESENTATIVE IN CONGRESS FROM THE COMMONWEALTH OF KENTUCKY Mr. Guthrie. Thank you. Thank you, Chair DeGette, for holding this important hearing. Thanks to our witnesses for being here. The U.S. Department of Energy's Office of Environmental Management, which I will refer to as EM, was created in 1989 to clean up the radioactive legacy of the Cold War and was tasked with cleaning up 107 sites across the country. As part of this effort, EM is responsible for completing the safe cleanup of environmental legacy resulting from five decades of nuclear weapons development and Government-sponsored nuclear energy research. To date, DOE has completed a cleanup of 91 of its 107 sites with 16 sites remaining. While 85 percent of the original 107 sites have been cleaned up, the remaining 16 sites has been described to the committee as the most challenging sites. The EM still has a lot of work to do. This work has been ongoing for decades and will continue for decades to come with some of the current sites not estimated to be cleaned up until 2070 or 2075. One of the ways that EM's work is measured and estimated is through the amount of environmental liabilities, which is estimated cost to clean up areas where Federal activities have contaminated the environment. To develop its environmental liability estimates, EM uses the approved life cycle cost for all cleanup projects at each of its sites and adds any adjustments and accounts for any potential cost decreases. The United States Government's liability was $577 billion in fiscal year 2018 and was the third highest liability listed in the financial report of the United States Government. DOE is the driver of most of this liability, accounting for $494 billion due to its nuclear cleanup responsibilities. Most of DOE's liability, $377 billion out of $494 billion, lies with the cleanup costs associated with sites under the responsibility of EM. DOE's financial statement for the year 2018 showed a sharp increase in environmental liability, more than $110 billion. EM's environmental liability has grown annually and outpaced the agency's annual spending on cleanup activities. For example, fiscal year 2011 and fiscal year 2017's environmental liability grew almost $105 billion--between 2011 and 2017 grew almost $105 billion, from $163 billion to $268 billion. In the same period, EM spent approximately $40 billion. Similarly, in the past two fiscal years, environmental liability grew by $122 billion with DOE spending only $12 billion on cleanup activities. In 2017, GAO added the Federal Government's environmental liability to its high risk list and it remained on GAO's high risk list for 2019. Further, GAO has conducted additional work surrounding DOE's environmental liability including a report that was released in February as a result of what became a bipartisan request by this committee to examine the performance of EM's operational activities and the role of performance assessments in informing those activities. GAO's concern stems from the fact that while the number of sites to be cleaned up have decreased, the cleanup costs have increased and the timetable for completion keeps getting delayed. And as the timetable for cleanup completion is delayed, costs continue to go up, especially since about 40 percent of the money EM spends on cleanup costs goes toward minimum safe operations, or ``min-safe,'' costs to maintain the sites, including costs of power, staffing, and security. Additionally, according to GAO, DOE should conduct a root cause analysis to determine why the cleanup costs, especially the $110 billion increase, went up so much. GAO has also found that EM does not follow program management leading practices or project management best practices. GAO's concern is that DOE could be wasting billions of dollars and not implementing the cleanup program efficiently and effectively. Lastly, GAO reported that DOE does not have a strategy on how to make the cleanup program more efficient and effective. DOE recognizes the need to strengthen program management oversight accountability to ensure value for the American taxpayer. DOE and EM are working towards completion and closure of the mission. But we still have decades to go. In the meantime, it is critical that we understand what EM is doing and changing in order to clean up the remaining sites in a timely cost- effective manner. This mission is an important one, not just for the sake of completing cleanup but also to ensure that the environment and public health in the communities where the sites are located are protected. I look forward to hearing from Assistant Secretary White on ways DOE and EM plan to evaluate, strengthen, and clean up the mission and how EM plans to address GAO's concerns. I thank the witnesses for being here today, and I yield back. [The prepared statement of Mr. Guthrie follows:] Prepared Statement of Hon. Brett Guthrie Thank you, Chair DeGette, for holding this important hearing. The U.S. Department of Energy's Office of Environmental Management (EM) was created in 1989 to clean up the radioactive legacy of the Cold War and was tasked with cleaning up 107 sites across the country. As part of this effort, EM is responsible for completing the safe cleanup of environmental legacy resulting from five decades of nuclear weapons development and Government-sponsored nuclear energy research. To date, DOE has completed cleanup at 91 of its 107 sites, with 16 sites remaining. While 85 percent of the original 107 sites have been cleaned up, the remaining 16 sites have been described to the committee as the most challenging sites. EM still has a lot of work to do. This work has been ongoing for decades and will continue for decades to come, with some of the current sites not estimated to be cleaned up until 2070 or 2075. One of the ways that EM's work is measured and estimated is through the amount of environmental liabilities, which is the estimated cost to cleanup areas where Federal activities have contaminated the environment. To develop its environmental liability estimates, EM uses the approved life cycle costs for all cleanup projects at each of its sites and adds any adjustments and accounts for any potential cost decreases. The United States Government's environmental liability was $577 billion in Fiscal Year (FY) 2018 and was the third highest liability listed in the Financial Report of the United States Government. DOE is the driver of most of this liability, accounting for $494 billion, due to its nuclear cleanup responsibilities. Most of DOE's liability--$377 billion out of the $494 billion--lies with the cleanup costs associated with sites under the responsibility of the EM. DOE's financial statement for fiscal year 2018 showed a sharp increase in environmental liability--more than $110 billion. EM's environmental liability has grown annually and outpaced the agency's annual spending on cleanup activities. For example, between FY 2011 and FY 2017 EM's environmental liability grew almost $105 billion-from $163 billion to $268 billion. In that same period, EM spent approximately $40 billion. Similarly, in the past two fiscal years, the environmental liability grew by $122 billion, with DOE spending only $12 billion on cleanup activities. In 2017, GAO added the Federal Government's environmental liability to its high risk list, and it remained on GAO's high risk list for 2019. Further, GAO has conducted additional work surrounding DOE's environmental liability, including a report that was released in February as a result of what became a bipartisan request by this committee, which examined the performance of EM's operational activities and the role of performance assessments in informing those activities. GAO's concerns stem from the fact that while the number of sites to be cleaned up have decreased, the cleanup costs have increased and the timetable for completion keeps getting delayed. And, as the timetable for cleanup completion is delayed, costs continue to go up, especially since about 40 percent of the money EM spends on cleanup costs goes toward minimum safe operations, or ``min-safe'' costs to maintain the sites, including costs for power, staffing, and security. Additionally, according to GAO, DOE should conduct a root cause analysis to determine why the cleanup costs, especially the $110 billion increase, went up so much. GAO also found that EM does not follow program management leading practices or project management best practices. GAO's concern is that DOE could be wasting billions of dollars, and not implementing the cleanup program efficiently and effectively. Lastly, GAO reported that DOE does not have a strategy on how to make the cleanup program more efficient and effective. DOE recognizes the need to strengthen program management, oversight, and accountability to ensure value for the American taxpayer. DOE and EM are working towards completion and closure of the mission, but we still have decades to go. In the meantime, it is critical that we understand what EM is doing- and changing-in order to clean up the remaining sites in a timely and cost-effective manner. This mission is an important one, not just for the sake of completing cleanup, but also to ensure that the environment and public health in the communities where these sites are located are protected. I look forward to hearing from Assistant Secretary White on ways DOE and EM plan to evaluate and strengthen the cleanup mission and how EM plans to address GAO's concerns.I thank our witnesses for being here today. I yield back. Ms. DeGette. I thank the gentleman. The Chair now recognizes the chair of the full committee, Mr. Pallone, for 5 minutes for purposes of an opening statement. OPENING STATEMENT OF HON. FRANK PALLONE, Jr., A REPRESENTATIVE IN CONGRESS FROM THE STATE OF NEW JERSEY Mr. Pallone. Thank you, Madam Chair. Today, the committee continues its oversight of the DOE and the Office of Environmental Management's efforts to clean up the legacy nuclear waste sites remaining from the Cold War. Decades of producing materials for our country's nuclear weapons program has led to a massive and ongoing cleanup of nuclear and hazardous waste and these sites contain some of the most dangerous materials on earth and some of the costliest and technically challenging to clean up. Waste at these sites consists of millions of gallons of radioactive waste, thousands of tons of spent nuclear fuel and other nuclear material, as well as contaminated soil and water. And the consequences for not getting this right are enormous to the environment, to human health, and to the taxpayer. The U.S. Government is responsible for costs associated with cleaning up these contaminants at Federal sites and facilities, and the estimated cost of future environmental cleanup is referred to as ``environmental liability.'' DOE is currently responsible for over 80 percent of the Federal Government's total environmental liability, which includes ongoing DOE cleanup efforts at 16 sites around the country, and the costs associated with this effort are vast and rapidly growing. As of this year, it has climbed to a staggering $377 billion. And while one would expect that, over time, as more money is spent, that DOE's environmental liability would be decreasing. But just the opposite is occurring. Since 2011, DOE has seen environmental liabilities grow by over $200 billion while spending in the same period was $48 billion. So even though we are spending billions each year, environmental liabilities are growing at a level that is outpacing DOE's spending. In 2017 and again in 2019, the GAO included the Federal Government's environmental liabilities on its high risk list. GAO continues to find numerous management challenges with how DOE is managing the cleanup effort. For example, according to GAO, DOE has not conducted a root cause analysis to learn why the runaway growth in environmental liabilities has occurred, and that means DOE does not know with certainty why this number keeps climbing. And GAO has also found that the Department of Energy fails to follow program and project management leading practices, and this is all extremely concerning considering that the Department of Energy has also inconsistently reported on its cleanup status to Congress, and information that has been reported has often been incomplete or misleading. So the Department's recent budget materials for EM also do not reflect the funding EM anticipates is needed to meet its future cleanup responsibilities and I appreciate that Assistant Secretary White is taking positive steps which appear to reflect her understanding of the significant challenges facing the Department of Energy. But DOE needs to answer some key questions about how they are managing the cleanup program and this committee needs to know if EM is planning to make the changes that GAO says are necessary, what resources it needs to make these changes, and who is responsible for implementing these changes. So, finally, I want to say that the Department needs the money to do these cleanups, obviously. I don't understand how the Trump administration's proposed budget cuts to this office would help DOE accomplish this enormous mission. As we look forward to the difficult cleanup tasks ahead, this committee will continue to call on the Government Accounting Office to conduct its important work in this area and will continue to demand that the Department of Energy take tangible actions necessary to build a disciplined and effective cleanup program. So, Madam Chair, these are some of the most costly, dangerous, and difficult sites in the world to clean up, and so I appreciate what you are doing in having this hearing because we really have to get this right. I don't think anybody else wants my time so I will yield back, Madam Chair. Thank you. [The prepared statement of Mr. Pallone follows:] Prepared Statement of Hon. Frank Pallone, Jr. Today, the committee continues its oversight of the Department of Energy (DOE), and the Office of Environmental Management's (EM) efforts to clean up the legacy nuclear waste sites remaining from the Cold War. Decades of producing materials for our country's nuclear weapons program has led to a massive and ongoing cleanup of nuclear and hazardous waste. These sites contain some of the most dangerous materials on earth and some of the costliest and technically challenging to cleanup. Waste at these sites consists of millions of gallons of radioactive waste, thousands of tons of spent nuclear fuel and other nuclear material, as well as contaminated soil and water. The consequences for not getting this right are enormous-to the environment, human health, and the taxpayer. The U.S. Government is responsible for costs associated with cleaning up these contaminants at Federal sites and facilities, and the estimated cost of future environmental cleanup is referred to as environmental liability. DOE is currently responsible for over 80 percent of the Federal Government's total environmental liability, which includes ongoing DOE cleanup efforts at 16 sites around the country. The costs associated with this effort are vast and rapidly growing. As of this year, it has climbed to a staggering $377 billion. One would expect that over time, as more money is spent, DOE's environmental liability would be decreasing. But just the opposite is occurring. Since 2011, DOE has seen environmental liabilities grow by over $200 billion, while spending in the same period was $48 billion. So, even though we are spending billions each year, environmental liabilities are growing at a level that is outpacing DOE's spending. In 2017, and again in 2019, the Government Accountability Office included the Federal Government's environmental liabilities on its High Risk List. GAO continues to find numerous management challenges with how DOE is managing the cleanup effort. For example, according to GAO, DOE has not conducted a root cause analysis to learn why the runaway growth in environmental liabilities has occurred. That means DOE does not know with certainty why this number keeps climbing. GAO has also found that DOE fails to follow program and project management leading practices. This is all extremely concerning considering that DOE has also inconsistently reported on its cleanup status to Congress, and information that has been reported has been incomplete or misleading. DOE's recent budget materials for EM also do not reflect the funding EM anticipates is needed to meet its future cleanup responsibilities. I appreciate that Assistant Secretary White is taking positive steps which appear to reflect her understanding of the significant challenges facing DOE. But DOE needs to answer some key questions about how they are managing the cleanup program. This committee needs to know if EM is planning to make the changes GAO says are necessary, what resources it needs to make these changes, and who is responsible for implementing these changes. Finally, DOE needs money to do these cleanups- and I don't understand how the Trump administration's proposed budget cuts to this office would help DOE accomplish this enormous mission. As we look forward to the difficult cleanup tasks ahead, this committee will continue to call on GAO to conduct its important work in this area and will continue to demand the DOE take tangible actions necessary to build a disciplined and effective cleanup program. Madam Chair, these are some of the most costly, dangerous, and difficult sites in the world to cleanup. We must get this right. Ms. DeGette. The gentleman yields back. The Chair now recognizes the ranking member of the full committee, Mr. Walden, for 5 minutes for purposes of an opening statement. OPENING STATEMENT OF HON. GREG WALDEN, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF OREGON Mr. Walden. Well, thank you, Madam Chair, and I appreciate you holding this hearing about the growing environmental liabilities associated with the U.S. Department of Energy's nuclear waste cleanup and I can't help but--after my friend from New Jersey described the President's budget, and I disagree with it in some of these areas, at least the President put out a budget, unlike our Democrat majority that punted on the issue of a budget this time. This subject is of enormous importance to the Nation, especially for local communities near contaminated sites such as those at Hanford. We know all too well the issues that the Office of Environmental Management handles. The threat of potential environmental disaster and pollution persists in the minds of Oregonians and people throughout the Pacific Northwest. As you all know, we have 56 million gallons of Cold War-era toxic nuclear waste sitting in corroding and leaking metal tanks, some of which were built to last a whopping 20 years. It has been more than 20 years since World War II. Hanford is a worrisome neighbor for us and the Federal Government has not always been a trusted and reliable partner. It also presents a difficult and complex challenge with a scale that is difficult to appreciate on paper. The Hanford site itself is nearly half the size of Rhode Island--half the size of Rhode Island. In August of 2017, Secretary Perry and I went out to Hanford to get a firsthand look and an evaluation of the work being done there to clean up that site. Indeed, there is a lot of work going on. But there is plenty left to do, as you all know. But the end goal is to mobilize high-level nuclear waste into a glass material similar to this puck that they gave us out there. By the way, this is not actually nuclear waste. I would just point that out. It is not exactly radioactive. This difficult work must be done as safely and efficiently as possible and in a cost-effective way. Cleaning up the waste at Hanford and at other sites across the Nation is a top priority and under my leadership last Congress on this committee we made a bipartisan request that the U.S. Government Accountability Office, known as the GAO, examine this issue of performance management at the cleanup sites under the control of DOE's Environmental Management, or EM. EM is responsible for remediating the environmental contamination attributable to the Nation's nuclear weapons systems including the cleanup of liquid nuclear tank waste, stabilization, and packaging of nuclear materials and decommissioning--decontaminating closed nuclear facilities. The financial costs of DOE's environmental liabilities are high and we all know that. In total, DOE's EM liabilities are $377 billion with DOE's total environmental liabilities reaching almost $500 billion. These numbers increased by $110 billion between fiscal 2017 and 2018 due in large part to DOE recalculating the baseline costs for the Hanford site, and I understand that is the first time that's been done in basically a decade since 2009. A few months ago, GAO issued our requested report and we appreciate your work on this matter, and found accountability to be lacking in key areas such as whether or not cleanup performance is cost-efficient and effective, and according to your report, DOE and EM have not established classification requirements such that most cleanup activities would be treated as projects subject to more stringent requirements instead of operational activities. So as a result, there is greater risk to cost overruns and scheduled delays, and we have, obviously, seen both of those over the years at Hanford. DOE spends, roughly, $6 billion a year on cleanup. But we don't always have a clear visibility into what that means in terms of completing the mission. EM reports on the amount of nuclear cleanup completed each year but for that amount of money spent how many radioactive tanks should have been treated? How much soil and water should have been remediated? We don't have clear answers to these questions because, according to GAO, EM's performance measures for operations activities do not always provide a clear and reliable picture. Although EM has undertaken several studies to address the growing costs in its cleanup program, GAO found that EM had not conducted a formal root cause analysis to identify the causes for the growth in its environmental liability. So these issues and others have been acknowledged by the Department and Environmental Management and has proposed or is exploring changes to allow for quicker and more cost-effective cleanup of the remaining sites. EM is pursuing an end-state contracting model for several sites and using a multifaceted approach to address liabilities including the use of current cleanup technologies for waste, composition, and risk, updating key project life cycle estimates, and providing transparency when it comes to liability data. So I look forward to hearing more from the Department today on its actions and proposals and, ultimately, however to progress on the cleanup of the waste at Hanford and other sites requires a safe, secure, and permanent storage location for the waste. And while this hearing should help get the cleanup efforts on a better track, Yucca Mountain is the cornerstone of the Nation's nuclear waste disposal and we need to move forward again, this time in this Congress, again in a bipartisan way, to improve the performance and effectiveness of cleanup and build a durable solution at Yucca. This committee led on that effort under John Shimkus' leadership on the subcommittee and we passed the bill with 340 votes in the House. It is time to do it again and get the Senate to put it on the President's desk. With that, Madam Chair, I yield back. [The prepared statement of Mr. Walden follows:] Prepared Statement of Hon. Greg Walden Thank you, Chair DeGette. I appreciate you holding this hearing about the growing environmental liabilities associated with the U.S. Department of Energy's (DOE) nuclear waste cleanup. This subject is of enormous importance to the Nation, and especially for local communities near contaminated sites, such as those at Hanford. We know all too well the issues that the Office of Environmental Management (EM) handles. The threat of potential environmental disaster and pollution persists in the minds of Oregonians and people throughout the Pacific Northwest. With 56 million gallons of Cold War era toxic nuclear waste sitting in corroding and leaking metal tanks, some of which were built to last just 20 years, Hanford is a worrisome neighbor and the Federal Government has not always been a trusted and reliable partner. It also presents a difficult and complex challenge with a scale that's difficult to appreciate on paper. The Hanford site itself is nearly half the size of Rhode Island. In August of 2017, Secretary Perry and I went out to Hanford to get a firsthand look at the work being done to clean up the site. There is plenty left to do, but the end goal is to immobilize high-level nuclear waste into a glass material similar to this puck. This difficult work must be done as safely and efficiently as possible in a cost-effective way. Cleaning up the waste at Hanford and at other sites across the Nation is a top priority. Under my leadership last Congress, we made a bipartisan request that the U.S. Government Accountability Office (GAO) examine the issue of performance management at the cleanup sites under the control of DOE Environmental Management-or EM. EM is responsible for remediating the environmental contamination attributable to the Nation's nuclear weapons program, including the cleanup of liquid nuclear tank waste, stabilization, and packaging of nuclear materials, and decommissioning and decontaminating closed nuclear facilities. The financial costs of DOE's environmental liabilities are high--in total, DOE's EM liabilities are $377 billion, with DOE's total environmental liabilities reaching almost $500 billion. These numbers increased by $110 billion between fiscal year 2017 and 2018 due in large part to DOE recalculating the baseline costs for the Hanford site. A few months ago, GAO issued our requested report, and found accountability to be lacking in key areas such as whether cleanup performance is cost-efficient and effective. According to the GAO, DOE and EM have not established classification requirements such that most cleanup activities would be treated as projects, subject to more stringent requirements, instead of operational activities. As a result, there are greater risks to cost overruns and schedule delays. DOE spends roughly $6 billion a year on cleanup, but we don't always have clear visibility into what that means in terms of completing the mission. EM reports on the amount of nuclear cleanup completed each year, but for that amount of money spent, how many radioactive tanks should have been treated? How much soil and water should have been remediated? We don't have clear answers to these questions because, according to GAO, EM's performance measures for operations activities do not always provide a clear and reliable picture. Although EM has undertaken several studies to address the growing costs in its cleanup program, GAO found that EM had not conducted a formal root cause analysis to identify the causes for the growth in its environmental liabilities. These issues and others have been acknowledged by the Department, and EM has proposed or is exploring changes to allow for quicker and more cost-effective cleanup of the remaining sites. EM is pursuing an end-state contracting model for several sites, and using a multifaceted approach to addressing liabilities including the use of current cleanup technologies for waste composition and risk; updating key project lifecycle estimates; and providing transparency when it comes to liability data. I look forward to hearing more from the Department today on its actions and proposals. Ultimately, however, true progress on the cleanup of the waste at Hanford and other sites requires a safe, secure, and permanent storage location for the waste. While this hearing should help get the cleanup efforts on a better track, Yucca Mountain is the cornerstone of the Nation's nuclear waste disposal. We need to move forward in a bipartisan way to greatly improve the performance and effectiveness of the cleanup and build a durable solution at Yucca. I welcome today's witnesses and thank them for their attention to these important issues. Ms. DeGette. The gentleman yields back, and I thank him. And I agree. I think it is time for another trip out to look at Hanford and Yucca. I was there many, many years ago with Joe Barton when he was chair of this committee. So we should do it. I ask unanimous consent that the Members' written opening statements be made part of the record, and without objection, so ordered. I would now like to introduce our panel of witnesses for today's hearing: the Honorable Anne White, who is the Assistant Secretary, Office of Environmental Management, Department of Energy; David C. Trimble, Director, Natural Resources and Environment of the Government Accountability Office. Thank you both so much for being here today. And you are aware that the committee is holding an investigative hearing and when doing so has the practice of taking testimony under oath. Do either of you have any objections to testifying under oath? Ms. White. No. Mr. Trimble. No. Ms. DeGette. Let the record reflect the witnesses have responded no. The Chair then advises you that under the rules of the House and the rules of the committee you are entitled to be accompanied by counsel. Do either of you desire to be accompanied by counsel during your testimony today? Ms. White. No. Mr. Trimble. No. Ms. DeGette. Let the record reflect the witnesses have responded no. If you would, please rise and raise your right hand so you may be sworn in. [Witnesses sworn.] Ms. DeGette. You may be seated. Let the record reflect that the witnesses have responded affirmatively, and you are now under oath and subject to the penalties set forth in Title 18, Section 1001 of the United States Code. The Chair will now recognize the witnesses for a 5-minute summary of their written statements. In front of you is your microphone, that you have already found, and a series of lights. The light will turn yellow when you have a minute left and then red to indicate your time has come to an end. Ms. White, you are now recognized for 5 minutes. STATEMENTS OF ANNE WHITE, ASSISTANT SECRETARY, OFFICE OF ENVIRONMENTAL MANAGEMENT, DEPARTMENT OF ENERGY, AND DAVID C. TRIMBLE, DIRECTOR, NATURAL RESOURCES AND ENVIRONMENT, GOVERNMENT ACCOUNTABILITY OFFICE STATEMENT OF ANNE WHITE Ms. White. Thank you. Chair DeGette, Ranking Member Guthrie, and members of the subcommittee, thank you for the opportunity to be here. I appreciate the time your staff has spent with me over the past few months. We have had very constructive meetings. I look forward to discussing efforts underway to reduce the liabilities and enhance contracting approaches to propel the cleanup mission towards safe completion sooner and at a responsible cost to the American taxpayer. Madam Chair, the Government's nuclear defense programs played an integral role in ending World War II and the Cold War. Our Nation was unified in its effort to end those wars. That kind of resolve and unity of purpose is needed today as we address the resulting environmental legacy. From day one, Secretary Perry has made the cleanup mission a priority. EM has completed cleanup at major sites over the past 20 years and made significant progress at the remaining 16 sites. Rocky Flats, Fernald, and Mound were completed. Six of the nine reactors along the Columbia River at Hanford were cocooned. We treated 10 million gallons of tank waste and have poured 4,180 canisters of high-level waste glass at Savannah River Site. We remain committed to completing cleanup so that our host communities can envision a vibrant future with enduring and diverse economic opportunities. The Department also acknowledges that EM is the largest program of its kind in the world and represents one of the Government's top financial liabilities. The liability increases that are of concern to me and to this subcommittee did not accrue overnight. But understanding some of the causes enables EM to offer solutions now. We can continue to live in the past or we can choose to understand the past, make course corrections, and move forward with collaborative solutions. It is time to choose the latter. Our knowledge and technology have matured significantly over the years. We need to employ cleanup technologies that are reflective of the latest knowledge in the areas of waste composition and risks, lessons learned over decades of cleanup, and attainable end states to drive down costs of these liabilities. Those efforts start with truly getting to the bottom of what we are dealing with using accurate up-to-date information. EM just underwent an independent review of the remaining cleanup of the entire Hanford site and it is providing a new level of transparency when it comes to liability data. Having been on the contractor side of this program for 25 years I consider myself informed on the program's successes and its failures. I have become well acquainted with the numerous GAO reports that have provided EM with recommendations. Implementing the changes recommended in those reports is part of the challenge I agreed to take on once confirmed and I reiterate my pledge to personally review GAO recommendations and continue with development and refinement of plans that address those recommendations. I have established a team of experienced contract and project management experts across the DOE complex to undertake the transformational initiatives required to fulfil EM's mission. EM is making real progress in implementing a number of GAO recommendations. We are implementing a 10-year strategic planning options analysis to evaluate current approaches and other recently identified opportunities that could reduce risk and life cycle costs. With billions of dollars in procurements coming up at some of our largest sites over the next few years, EM has a significant opportunity to improve procurement processes, contract management, and oversight performance. One of our most transformative initiatives is a new end- state contracting model that will greatly enhance contract management. It will provide for better requirements definition, reduce risk by reducing task order time horizons and improve contract incentives to drive performance. Today, we face some important decisions about the trajectory of the cleanup mission. I view this as an opportunity to employ the most successful and sustainable EM program. Madam Chair, EM's greatest successes have historically been achieved through hard work of our leaders determined to get things done. I appreciate the support Congress has shown for the cleanup mission and I look forward to working with the subcommittee to deliver cost-conscious site completions that protect the public, worker safety, and the environment. Thank you. [The prepared statement of Ms. White follows:] [GRAPHICS NOT AVAILABLE IN TIFF FORMAT] Ms. DeGette. Thank you so much. Now it is time for Mr. Trimble to testify, 5 minutes. You are recognized. STATEMENT OF DAVID C. TRIMBLE Mr. Trimble. Chair DeGette, Ranking Member Guthrie, and members of the subcommittee, my testimony today will focus on DOE's large and growing environmental liability and GAO's recent work on longstanding management weaknesses at EM that have limited the effectiveness of the cleanup program. What is environmental liability? It is the estimated cost to clean up contamination from Government activities. This is challenging for DOE and EM as they are responsible for cleaning up radioactive and hazardous waste at sites across the country generated during weapons production from the Manhattan Project through the Cold War. This waste poses risks to both the public and the environment. EM must address contaminated soil and ground water, decommissioned contaminated buildings, and construct and operate facilities to treat millions of gallons of radioactive waste. These contaminated sites are often located near large rivers and ground water sources for nearby communities. Why does this issue deserve your attention now? In short, DOE's environmental liabilities are huge and have now reached a half a trillion dollars. Further, environmental liabilities are now the Federal Government's third-highest liability and DOE accounts for 85 percent of the total. In addition, this problem is getting worse as the growth and the liability is vastly outpacing the EM's ability to reduce it. As has been noted, over the last 7 years, EM spent $48 billion on cleanup. But the liability did not decrease. Instead, it increased by $214 billion. Further, we noted in our high risk report that DOE's liability numbers likely understate the true liability and will continue to grow. EM receives about $7 billion a year in funding each year and actually has fewer sites to clean up than it did in 2011. So why the runaway cost growth? Notably, over 40 percent of EM's budget does not go to cleanup activities but, rather, simply to maintain its sites. At several locations these overhead costs consume over half of the site's budget. Most concerning, though, is that EM has not done a root cause analysis to understand the factors driving this cost growth. GAO's recent work has focused on management of the EM cleanup program. Here are some of our key findings. EM does not have a nationwide cleanup strategy and relies primarily on individual sites to establish their own priorities, which do not always balance overall risks and costs. EM does not manage its work as an integrated program. A recent work compared DOE's cleanup policy to nine leading program management practices and found EM did not meet any of them. These practices include basic tools like having a program management plan, a schedule, and measuring program performance. We also found that EM does not follow most project management practices. Specifically, EM's policy did not meet nine of 12 leading practices reexamined. These practices include such things as identifying root causes of problems and developing a corrective action plan to address cost overruns. EM's shortcomings in project management are especially notable because of the project other parts of DOE have made in this area. Why the disconnect? EM does not classify the vast majority of its work as projects. This approach has allowed EM to avoid DOE's stricter requirements for project management. Our work has also found that the data EM uses to track and report on its cleanup work has significant limitations. This is important because bad performance data is similar to driving a car without working gauges on your dashboard. Notably, cleanup milestones for EM sites across the country are routinely changed when in danger of being missed. But these changes are not tracked or recorded. So why have the problems of EM's cleanup mission not received more attention? One reason is that EM has not consistently reported to Congress on its cleanup efforts. Under the 2011 defense bill, EM must annually report estimated cost and funding needs for future cleanup activities. EM's 2017 submission to Congress was only the second one since 2011, and it did not include a detailed list of planned cleanup actions or required funding. GAO is encouraged by the actions EM is reportedly planning to address our recommendations. Let me note that three of the criteria GAO uses in assessing progress in Federal high risk are particularly relevant to EM at this time. First, EM needs a comprehensive plan for the changes that need that be made. Second, EM needs to understand and address the staff skills needed to make and sustain these changes. And third, EM will need to monitor its progress against its plan to adapt and adjust as necessary. In closing, the actions EM needs to take involve significant cultural change at DOE headquarters, the sites, and the contractors. The scope of this effort will require sustained support from senior DOE leadership, Congress, as well as key stakeholders. Thank you again for the committee's commitment to oversight of this important issue. [The prepared statement of Mr. Trimble follows:] [GRAPHICS NOT AVAILABLE IN TIFF FORMAT] Ms. DeGette. Thank you, Mr. Trimble. It is now time for Members to ask you questions. The Chair recognizes herself for 5 minutes. I want to begin by getting a greater understanding of the challenges facing DOE's Environmental Management office in cleaning up these sites. Mr. Trimble, is it fair to say that the remaining sites where cleanup work remains are some of the most complex to clean up and will be the most costly? Mr. Trimble. Absolutely. The sites that are left are some of the biggest and scariest. Hanford and Savannah River, of course, pop to mind. Ms. DeGette. Yes. OK. You testified that in fiscal year 2011 the environmental liability facing EM was estimated to be $163 billion. Since then, that number has climbed each year and now the liability is estimated to be $377 billion. That's a $214 billion increase in just 7 years. Now, it is my understanding that EM has been unable to articulate to GAO why the environmental liability keeps growing at a rapid pace like that. Is that true? Mr. Trimble. Yes, that is true. Ms. DeGette. And it is also my understanding that EM's environmental liability could keep growing, and if that happens I was just saying to Mr. Guthrie increasing liability not only poses a threat to the taxpayer but to the environment because operations might need to be delayed or even deferred. So, very briefly, I just would like you to tell me would delaying work on the projects increase the risk to both the taxpayer and the environment? Mr. Trimble. Absolutely. Delays increase the overall cost of the work and when you delay the work it means those communities face the environmental risks for that much longer. Ms. DeGette. Now, in your testimony, Mr. Trimble, you describe how EM is facing a number of challenges about how it manages its environmental cleanup programs. For example, GAO found that EM is not following a number of best program and management practices. Is that correct? Mr. Trimble. Yes, that is correct. Ms. DeGette. And GAO also found that EM has not resolved longstanding management challenges and doesn't have a programwide cleanup strategy to this day to address increased cleanup costs. Is that right? Mr. Trimble. That is correct. Ms. DeGette. Now, I think you testified in your--in your statement that they really need to develop three things: a comprehensive plan, staff skills, and a way to monitor the progress and they also need cultural change over there. Is that, in essence, what needs to happen? Mr. Trimble. Yes. The scope of these changes are brought and significant, and when you make those kind of changes it invariably involves cultural change in the organization. Ms. DeGette. And so I turn to you, obviously, Secretary White, and want to ask you what is your position on those recommendations that GAO has made? Ms. White. So during my confirmation hearing I talked specifically about the recommendations and that I am looking forward to implementing them. Having been in the field for quite some time, there were cases where I said wow, GAO really has that right. So---- Ms. DeGette. Uh-huh. But what about in particular what Mr. Trimble says, the comprehensive plan, the staff skills, monitoring the progress and the cultural change? Ms. White. Absolutely. We are moving out on all of those recommendations. They are--we will respond to those with all concur and we have already begun to revise our program and project management policy--the cleanup policy to ensure it incorporates the best management practices pointed out by GAO. For the first time in the history of the program we have all of the sites' life cycle baselines loaded into one centralized system in headquarters so that we will be able to monitor progress and track changes and look at milestones and have meaningful metrics that are going to all us to more carefully monitor performance, very consistent with the GAO recommendations. Ms. DeGette. Thank you, and I guess I want to ask you, because--and I know more people are going to ask about this, but the budget constraints--are those going to impact your ability to implement these changes? Ms. White. So I don't believe so because the changes that we are making are going to be at headquarters mainly and it is going to involve, as we say, new kind of communication with the sites, and right now that is called program direction funding. We have plenty of funding to do so. Ms. DeGette. And what is your opinion about that, Mr. Trimble? Mr. Trimble. Well, we have not looked directly at the budget. My---- Ms. DeGette. Well, what about the other structural changes at the---- Mr. Trimble. Yes. What I would say is that I think part of the effort, given the scope of the changes that we are talking about, that the EM would benefit from a thorough analysis of the resources it needs to carry out these changes because if you implement program and project management best practices you need staff with different skills. Or the staff may be there. I am not sure. But you have to do that assessment and you either have to train or hire additional skills who are expert in these areas to actually successfully execute the change in direction. Ms. DeGette. Thank you, and thanks to both of you. The Chair now recognizes Mr. Guthrie for 5 minutes. Mr. Guthrie. Thank you. Thank you, Chair, for the recognition, and these are to Secretary White. Did the taxpayer get good value for the $6 billion EM, roughly, spent last fiscal year on nuclear waste cleanup? Ms. White. I think by and large, yes. We do struggle at Hanford because of the complexity and some of the costs associated with carrying out our work there. But I believe the taxpayer got good value for their money. Mr. Guthrie. OK. It leads---- Ms. White. We can do better, though. Mr. Guthrie. OK. This leads to my next question. So I think you might answer, but I was going to--are you implementing reforms to ensure that the taxpayer is getting good value for cleanup procedures and how will those reforms help better account for EM's performance for dollars spent? Ms. White. Yes. So one of the major things we are doing is our end-state contracting approach and very similar to Rocky Flats is--it takes that same kind of process but applies it to a smaller time period and not necessarily closure. And what that is going to allow us to do is that we have our preaward, we select and we are selecting based on personnel first because in my experience in the field it is having the right personnel, not necessarily the right company or group of companies. So that is our first criteria. Once we make the award then we are sitting down with the contractor and partnering to figure out, OK, what is the first task order going to look like. It could be 2 years of work. It could be 3 years of work. It will depend on the site. But what that does is, as one of my predecessors said, it allows us to chunk the work so that we can better manage it rather than having these 10-year periods of performance that can be very difficult to monitor and measure and look after. So this is going to put us on a much shorter time horizon which will allow us to better understand what exactly it is it we are buying and have the scope very well understood, and once that happens that is what allows us to really monitor progress and ensure that we are spending money effectively. So that is one of the biggest things. The other thing we are moving out on and have been looking at for a while is our existing contracts have performance evaluation measurements plans and they are developed at the site level. We have put together--these are called PEMPs--we have put together a PEMP review board and we are going to be looking very carefully at the PEMPs as they roll out, again, to ensure we are not just paying fee for contractors to show up and do their base work. We want to be paying contractors to really exceed and excel. So that is one of the things we are doing. Same thing with a fee determination board. We stood one up at headquarters so that we can be reviewing how a fee is getting paid to contractors and ensure some consistency because some fee determination officials are easier graders than others and so we want to just try and drive some consistency there about what our expectations are at the programmatic level. Mr. Guthrie. OK. Thank you. And while DOE's most recent financial statements have shown a sharp increase in environmental liability over the last fiscal year, DOE's liability has been increasing for years. For example, between 2011 and 2017, EM's liability grew $105 billion. Why does DOE's environmental liability keep going up? Ms. White. We are going to find that out. Mr. Guthrie. OK. Ms. White. We are in the process of doing a detailed root cause analysis to have a look. Most what we know intuitively, though, is that it is time. Time is money. So as the life cycle baselines kick out, the liability goes up. But we are going to do a much more detailed analysis than my spidey senses. Mr. Guthrie. OK. And, similarly, why do timetables for-- estimated timetables for cleanup keep getting delayed? Ms. White. So there are a lot of factors involved there, some of which is the regulatory agreements we have at these sites by and large are pretty old and we have learned a lot since we entered into these agreements, and industry commercial disposal options have opened up that were not necessarily accounted for previously. So that is some of it. Some of it is just not really being effective in holding the contractors accountable to complete the work scope. There are a number of factors. But putting together our program and project management policy I believe is going to address a lot of these concerns. Mr. Guthrie. I am going to switch to my last questions because I only have about 20 seconds. What can Congress do to support or assist? Ms. White. Just--you have been very supportive in terms of funding traditionally. So that would be good. Mr. Guthrie. OK. Thank you. Well, that completes my questions and I will yield back. Mr. Kennedy [presiding]. Chair thanks the gentleman. The gentlelady from Florida, Ms. Castor, is recognized for 5 minutes. Ms. Castor. Thank you, Mr. Chairman. The Office of Environmental Management, referred to as EM, is responsible for cleaning up our Nation's legacy nuclear weapons sites. Today, EM has completed cleanup at a number of sites. Sixteen sites, however, still need cleanup and these are probably the most challenging to address. GAO has published several reports that express serious concerns about EM's management of its nuclear waste sites. Mr. Trimble, you have testified that EM does not have a programwide strategy to appropriately address its vast and growing environmental liability, correct? Why not? Mr. Trimble. That--I mean, I think that is the key question. I think the answer is that for the longest time, and we are talking decades here, the EM program has largely been managed through a delegation of key decisions to the sites. In many ways, the EM program has operated as a confederation of sites rather than as a coherent program with a plan and clear direction. Ms. Castor. In fact, in a January 2019 report GAO discussed EM's lack of a programwide strategy, and here is what you said: ``Without a strategy that sets national priorities and describes how DOE will address its greatest risks, EM lacks assurance that it is making the most cost-effective cleanup decisions across its site.'' Will you put that in simple layman's terms? What does it mean that EM does not have a strategy and how is this affecting cleanup efforts? Mr. Trimble. Well, it means that key decisions regarding resources and how to address risk are made at the micro level at each site. So that collectively when you look at the EM budget their risk benefit analysis isn't being done. You will get inconsistent decisions regarding priorities and the deployment of resources across sites. You may be spending money at one site where there is a greater risk at another site. The other issues are you just--you end up being very inefficient in terms of tackling your most pressing environmental tasks. Ms. Castor. All right. GAO reported that EM, quote, ``does not collect or maintain reliable cost, schedule, or milestone data on its projects. Ms. White, without reliable cost, schedule, or milestone data, how can EM have a clear picture of whether it is effectively managing its environmental liabilities? Ms. White. That is a great point and that is, again, why we have moved out with a number of initiatives to incorporate GAO recommendations and that includes the program and project management policy which is going to gather the data, ensure that we have good sound cost estimating. That is going to be extremely important on our end-state contracting model because---- Ms. Castor. And I know you said don't go back and look at the past. But, I mean, that is irresponsible. A lack of reliable data makes it difficult to effectively manage---- Ms. White. And it has been--it has been that case for decades. So we are trying to change it. Ms. Castor. Yes. In fact, in your testimony you say the Department views this as an opportunity. The most successful EM is a program reflective of the latest scientific knowledge about ways to using the most up-to-date cost and schedule estimates and that incorporates lessons learned from the last 30 years of cleanup. But for decades EM has tried to develop overall strategies to better manage and prioritize risks. Those strategies have come and gone. But as we have heard today the problems persist. So I am going to ask this as simply as I possibly can. Do you have a plan and is your plan supported by the right staff and resources so that it will succeed in addressing these problems? Ms. White. Yes, we do have a plan. As I said, we are going to improve our program management and project management. Ms. Castor. And I hope getting a handle on the liabilities. For you to admit that you don't even have an understanding of the liabilities is very serious. Ms. White. And, again, at the recommendation of GAO we are doing a very detailed root cause analysis of what is driving that. Some of it is that scope gets added. Some of it is that we learn more about the work at hand. So it is a number of factors. But we are going to get to the bottom of that and as soon as we do I would love to come brief your staff. Ms. Castor. Well, if DOE is serious about cleaning up environmental hazards, the Department needs to manage its efforts professionally and effectively. It is long past time for DOE to get its act together and I look forward to hearing from the Department on the progress. Thank you, and I yield back. Mr. Kennedy. The Chair thanks the gentlelady. The Chair recognizes the ranking member of the full committee, Mr. Walden. Mr. Walden. Thank you very much, Mr. Chairman, and again I want to thank the work of the GAO and Secretary White. Thank you for stepping into this and trying to clean up this mess. As you say, it has been going on a long time, and we are making progress, but we know there is a lot more work to be done. It has been mentioned there was a sharp increase in environmental liability over the last fiscal year of more than $110 billion, growing from $384 billion to $494 billion. As I understand it, this was primarily due to an increase in the estimated costs of the cleanup at the Hanford site in Washington for which the life cycle costs had not been updated since 2009. Is that correct? Ms. White. That is correct. Mr. Walden. OK. And does DOE know what specifically made Hanford's life cycle costs increase so much over a 10-year period? Ms. White. It was largely due to expanded time that it is going to take, and as Mr. Trimble noted, there is a very high hotel cost that is associated with our sites--just keeping the lights on, if you will. So when you increase the time that costs drags along with you. So it is almost all driven by time. Mr. Walden. OK. So during the Obama administration they never updated this baseline cost is how I would look at this. According to information provided to the committee by DOE, Hanford accounts for about 64 percent of the Office of Environmental Management's fiscal year 2018 liability. What about Hanford makes it account for over half of EM's liability? Ms. White. It is one of our more complex sites. Mr. Walden. Sure is. Ms. White. Again, we entered into an agreement in 1989. That is a little bit cumbersome right now because things have changed. The other part of it is though we have made really good progress out there. PFP, for example, is moving forward. The K- Basin sludges are going to remove the radioactive material from one of the last reactors and many other things. The whole river corridor cleanup project was fairly successful. So progress is being made. Our real challenge there is the tank waste. Mr. Walden. Yes, it is, and I know when Secretary Perry made a commitment early on to go out and see it and I toured, as I said, the site with him and the National Lab, which does amazing work as well. It looked like they were finally getting the new equipment in place and installed where they could begin to deal with this cleanup and so I applaud the work that Secretary Perry and you are doing here to kind of finally get this in the right direction. The question I have too is how many other sites need to have their life cycle costs updated and should we expect cost increases when those are updated? Ms. White. So we have, as I said, loaded all the life cycle baselines into a centralized system for the first time in the history of the program. We are analyzing that data now. I would not expect to see anything like the increase that we saw on Hanford. Mr. Walden. OK. So this mission has been going on for decades. It will continue for decades, unfortunately, for sites like Hanford that are not estimated to be cleaned up until 2070 to 2075, I believe, is the latest estimate. While I want to ensure that this mission is completed safely there are environmental and safety concerns about the length of time it is estimated to take to clean up some of these sites. For example, it is my understanding some of the tanks at Hanford have already started to leak because the tanks weren't made to hold waste for this length of time. Isn't that correct? Ms. White. That is correct. Mr. Walden. We had leakers there, I know. What are--what are some of the risks of the mission taking longer than expected and what is EM doing to prevent these risks from harming the public or the environment? Ms. White. Yes. So some of the risks involve, of course, worker safety, first and foremost. The other part of the risk is, you know, for example, PUREX Tunnel 2--those kind of things. So---- Mr. Walden. And that is the one where the rail cars are underneath and---- Ms. White. Correct. Mr. Walden [continuing]. The roof collapsed and opened them up? Ms. White. Correct. And the other tunnel we just finished grouting that tunnel completely. So that was a big success and it takes some risk off the table. So there are things we can do to remediate risks as they arise. Mr. Walden. I know that the little piece of glass I have here that was what--eventually these will be long tubes of glassified nuclear waste. But I notice when recently they announced they had finished turning three gallons of this toxic sludge into glass, I believe, which meant only 56 million gallons left to go. So I mean, this--they are just starting up but I think that is correct, isn't it? Ms. White. Yes. The three gallons actually was sent offsite as part of the test bed initiative and disposed of in Texas. So we actually removed waste from the State of Washington. Mr. Walden. Well, that is good. For my friends in Texas, we are glad to send you some of our byproduct of saving the world. [Laughter.] Mr. Walden. Yes, so this is a message, and finally it is 10 seconds. I don't know if they can throw this slide up. But for those uninitiated, when you see the site of Hanford you see right next to it the Columbia River. Ms. White. Yes. Mr. Walden. The mighty Columbia River, and this is--and I know some of the geology tilts the other way. So they told us, you know, the odds of it ever leaking into the river are pretty slim. But, you know, we really don't want our salmon to glow at night and so we need to keep after this and I am glad you are on it and I am glad GAO is keeping an eye over your shoulder as well. So thank you, Mr. Chair, for your indulgence and thanks for the work you're doing. Ms. White. Absolutely. Thanks. Mr. Kennedy. The Chair thanks the ranking member, and I am grateful that you have that disc in your pocket. The Chair recognizes the gentlelady from Illinois, Ms. Schakowsky, for 5 minutes. Jan? Ms. Schakowsky. Thank you. Thank you, Mr. Acting Chair. I appreciate that. Ms. White, you have been there a short time. But you have been in the business and in the field as a contractor for a long time, right? Ms. White. That is correct. Twenty-five--over 25 years. Ms. Schakowsky. So you know that we are talking about a problem that has existed for the last 50 years, really, and I think there is good reason, including river contamination potentially, that we need to do more and that this is really long, long overdue--50 years of nuclear weapons production and energy research. I am glad we are having this hearing because I think a lot of people are not aware of this and yet we are talking about billions of dollars. Three hundred and seventy-seven billion dollars is what was spent. Is that the budget or the increase? That is the whole budget, right, for last year? Ms. White. That's the liability. Yes. Ms. Schakowsky. That is the liability? Ms. White. Right. Ms. Schakowsky. And it is the third greatest of the liabilities that we have in our agencies, right? Ms. White. That is right. Ms. Schakowsky. Yes. And it has been growing, even though the number of sites hasn't increased and so, really, the GAO has helped us try and figure out why, and let me first turn to Mr. Trimble here. Where is all that money going? I understand that half, sometimes 60 percent, is just going to keep the lights on at these places--not to remediate but to keep the lights on. Mr. Trimble. That is correct. There is a large amount of money that is basically called min safe--keep the facility operating if you have a closed facility. Make sure the roof doesn't collapse, to protect the workers. So about half of the money or 40 percent of the money is going to that work. I think the challenge in terms of seeing what you're getting for your money is without operating it as a program with a clear direction of where you want to be and where you expect to be, and without using project management skills to help you get there and measure your progress it is hard to tell what you are getting for the rest of your money. There is stuff being done. You are hearing buildings being closed or being remediated. But you don't know necessarily whether it should have been twice as much as they got done or they are getting great results and they are getting twice as much done with the same dollars, right, because they are not evaluating it against best practices. You don't know what you should be doing with the dollars you are spending. So it is hard to tell whether you are getting value and whether you are getting to where you need to go at the end of the day. Ms. Schakowsky. So the 2070 time line is that something that you projected? Who projected that it would be done by-- that seems unreasonable to me. Ms. White. That was a result of an independent review we had one. It was part of our TPA milestone. A tri-party agreement milestone requires us to update the life cycle baseline and we did that, and what some of it has to do with long time lines is maintenance on the facilities and having to have, as you say, the hotel load to keep the lights on as part of the funding profile. So there are a number of factors there, and we are actively looking at alternatives because of the life cycle baseline cost increase. Our project management order requires us to do an analysis of alternatives, which is underway now. Ms. Schakowsky. So you agree with the GAO findings, do you? Ms. White. I do. I do. We need to do better in program and project management and I think we can do better. In terms of the priorities across the various sites, unfortunately, CERCLA has a national priorities list and the sites are treated separately. However, in 2015, there was a omnibus risk report that came out that was actually required. It was a congressional report and it pointed out a number of opportunities to look at our work scope more in the way that Mr. Trimble would like us to. Ms. Schakowsky. When you were working as a contractor did you see these kinds of problems, inefficiencies, things that needed to be changed? Ms. White. There were times I did. There were times, though, when I also saw really absolutely amazing work get done by absolutely amazing people who were ready to innovate and roll up their sleeves and go. It has been more that than the inefficiencies and less than stellar cost behavior. Ms. Schakowsky. How do you explain to the taxpayers that while the number of sites has not changed that there has been this astonishing increase in the cost? Ms. White. Again, the latest increase is driven almost completely by Hanford. We are doing good work at our other sites and we are doing good work at Hanford, too. We are coalesced around the direct feed low-activity waste mission. It is going very well. So we are starting to pick up some speed and momentum and a little velocity. Ms. Schakowsky. So you are saying--am I out of time? Oh, I am sorry. I am out of time. That goes so fast. Ms. White. It does. Ms. Schakowsky. Doesn't it? Ms. White. It does. Ms. Schakowsky. OK. Ms. White. I will come and brief you---- Ms. Schakowsky. I hope you will start going real fast, too. [Laughter.] Ms. Schakowsky. I yield back. Sorry. Mr. Kennedy. Thank you. The Chair thanks the gentlelady. The Chair will recognize the gentlelady from Indiana, Mrs. Brooks, for 5 minutes. Mrs. Brooks. Thank you very much and I agree, our 5 minutes goes really fast. I want to talk--I want to start out with you, Mr. Trimble, with respect to the report from February of 2019 where GAO made seven recommendations and focused on the project contract management piece. Should most of the cleanup work be classified as operations activities or as projects? And that seems to be what part of your report talks about is a huge problem and difference. Mr. Trimble. Yes. I think what we say in that report is that large chunk of the work currently managed as operations activities are projects and what we noted in there is that other people, the experts--some of the project management experts in DOE headquarters felt the same way and raised these concerns to EM in 2015 and EM at that time did not yield there. Mrs. Brooks. And why does the classification as to what work they are doing make a difference between operations activities versus the project? Mr. Trimble. The main--the main reason is over the last 10 years DOE's management of contracts and projects has been on GAO's high risk list since 1990. It is another high risk area. For the last 10, 15 years we have done a lot of work in that area and DOE, to its credit, has made significant improvements to how it manages projects and what that means is they tighten up their requirements in something called Order 413. So on the weapons side, NNSA, where they are building large projects, they have tightened up those requirements and they have seen significant meaningful results as a result of those tighter requirements. By classifying it as an operations activity, you avoid those tighter requirements. They are not subject to all the improvements we have worked so hard over the last 10 years to make. Mrs. Brooks. Is there any cleanup activity or work that you think should still be classified as operational activity versus moving the cleanup over to the other category? Mr. Trimble. No. These decisions really need to be left to experts at DOE. What our recommendation is that EM needs to work with the project management experts at DOE headquarters to come up with a way of classifying this work appropriately. Mrs. Brooks. So, Assistant Secretary White, is that happening? Ms. White. Yes. So what we are doing is in our program and project management policy is all work is going to be covered by a strict gated process and it fits in nicely with our end-state contracting model because we will treat--say we have a 2- or 3- year task order. We are going to treat that as a gated process as a project that we are going to monitor and oversee. Mrs. Brooks. So it will be reclassified then as a project rather than operation activity? Ms. White. We--what we are going to do, again, is our program and project management policy follows all the GAO best management practices and we are going to use that. Within and underneath that we will also use 413.3. Mrs. Brooks. And does that satisfy you, Mr. Trimble, as to how the work will be classified? Mr. Trimble. Proof is in the pudding. We have not seen that. I think there is--our concern would still be the role for DOE headquarters and their office of project management and understanding those distinctions. One of the key areas of--that is involved in doing best practices for project management is having independent oversight meaning independent of the people either running that project or running the program. Mrs. Brooks. Right. Mr. Trimble. So that will be a key element of that. Mrs. Brooks. Has EM ever classified a cleanup work as a capital asset project? Ms. White. Yes. Yes. Mrs. Brooks. And which one was that? Ms. White. That I know off the top of my head was Main Plant demo out in New York. Mrs. Brooks. And why was that classification not continued for other cleanup projects? Ms. White. So 413 is a project management order that, to me, is most amenable to when you are building something. What our program and project management policy does, again, it incorporates all the best practices pointed out. It also includes a gated process which means we would work with the project management office--the overall DOE project management office--on all of these things. Mrs. Brooks. So are you--so are you now working with DOE project management office at the highest levels in a different way than you have been working than EM has been working with them for decades? Ms. White. Not--yes. So we have been--we work with them very routinely. So with our, again, a revised policy we are going to be working very closely with them. We have been working closely with a number of people in the building. We have some very good program and project management experts involved in helping us develop this policy. So I think we are in very good stead. Mrs. Brooks. Is EM operating under any kind of constraints to change the way these projects are managed as to whether or not they are projects versus operational activities? Ms. White. No. We don't have any constraints. The policy will be an EM policy. So I don't feel constrained. Mrs. Brooks. OK. Thank you. I yield. Mr. Kennedy. The Chair thanks the gentlelady. The Chair will recognize the gentlelady from New York, Ms. Clarke, for 5 minutes. Ms. Clarke. Thank you very much, Mr. Chairman. I thank you both for appearing before us today. Over many years, GAO has identified management concerns which encompass nearly all aspects of DOE's Office of Environmental Management called EM including its direction management ability to make effective decisions and to address the legacy of nuclear contamination from the Cold War. This we all know. So I want to drill down on this a bit, Mr. Trimble. What exactly does it mean that DOE's Environmental Management Office does not follow leading management practices? Mr. Trimble. Well, I think the easiest way to understand that is the leading practices both in program and project management are there to help you deliver your project or your deliverable on time and on budget. So when you are not following these practices, and these are practices that--these come from industry. They come from government. These aren't things GAO comes up with. These are standard things people do to succeed. So if you are not following any of these, it means your chance of success is probably none. You have to follow these if you want to deliver on time and on budget. Ms. Clarke. Mr. Trimble, you noted in a report just a few months ago that until EM reviews and revises its cleanup policy to include program management leading practices related to scope, cost, scheduled performance, and independent review, the EM program is at risk of continued uncontrolled changes to the program scope, exceeding its cost estimate and schedule, failing to meet its programmatic goals, and increasing DOE's environmental liabilities. Why is it important that EM change or revise its cleanup policy to follow best practices in addressing cleanup activities and why is it not doing it? Mr. Trimble. It is critical because without doing so you are never going to get a handle on that liability growth. To achieve the mission, to protect these communities, to protect the taxpayers' interests, you have to change course and embrace these best practices. I think the challenge in the past has been, as I mentioned, DOE writ large has been on our high risk for project and contract management since 1990 when we started that list and this has not been something culturally that comes naturally to DOE. Ms. Clarke. Mm-hmm. So would it be fair to say that EM's operations activities are still at risk of uncontrolled changes which could further balloon costs and add time to the already long schedules for cleaning up these sites? Mr. Trimble. I am encouraged by the changes we hear DOE is talking about. But until those are fully implemented, yes, absolutely. Ms. Clarke. Ms. White, I would think that if EM followed these best practices for program management and project management we might experience better outcomes. I understand that you are in the process of trying to adopt many of the recommendations made by GAO to implement these best practices. But what is your plan for adopting these recommended practices? What are your time lines for implementing them and do you have the resources to take on this challenge? Ms. White. So our program and project management policy is in the last throes of internal review. It'll then go out to the sites for their review and get reviewed by a number of stakeholders really because what this is it is a bit of a culture change. So we want to make sure we engage all of our stakeholders, if you will, and when I say that I mean the PM organization within DOE--project management organization--and, again, the sites. So that should be rolling out fairly shortly. The other thing I want---- Ms. Clarke. What does fairly shortly--I mean, has this process already begun? Ms. White. Oh, yes. We started revising the cleanup policy well before we even got the---- Ms. Clarke. But you are saying creating this culture of buy-in, essentially, right? Ms. White. Yes. So---- Ms. Clarke. What is that like? Ms. White. So basically because the sites are CERCLA sites by and large, they are on a national priority list and they are on a path. So by doing this program management policy it is going to be a bit of a change for kind of the relationship between the sites and headquarters. So that is one factor. The other thing---- Ms. Clarke. Yes. So the question I have is it is a change in culture, right, and oftentimes change is very difficult when people are hardwired on the way things used to be. How are you working at changing that culture and where are you in that process? Are you getting the buy-in that is required to expedite this? That is the important thing right now, right? Ms. White. I am getting the buy-in to expedite and get this rolling. The other thing is we got really good buy-in and a lot of excitement around our end-state contracting model, which is a huge change to the way we have been doing business. But, again, we have got a lot of really good energy around that and a lot of good cooperation. So I feel very pleased with the progress. Ms. Clarke. Mr. Trimble, what are your reactions to some of the ideas that Ms. White is laying out here today? Mr. Trimble. I am encouraged by their acceptance of our recommendations and some of the ideas I would--you know, my mother who, God bless her, is 97 now--always told me, ``I didn't raise you to be an optimist.'' [Laughter.] Mr. Trimble. Why I am at GAO, I suppose. But, you know, if you look back over these issues going back to--you know, GAO has been reporting on this--these--the challenges in the cleanup program since the 1970s. As I have said, the changes we are talking about are fundamental. The areas that I would caution or have questions in terms of some of the proposals is their end-state contracting. I don't know enough about what that actually means in practice of judge. It sounds great. Contracting has been a challenge for DOE so that is good. But contracting is not project management. Contracting supports management. And so you have to have management set up and then use contracting. Ms. Clarke. Thank you very much. I yield back, Mr. Chairman. Mr. Kennedy. The Chair thanks the gentlelady. The gentleman from Oklahoma is recognized. Mr. Mullin for 5 minutes. Mr. Mullin. Thank you, Mr. Chairman, and thanks for being here. Ms. White, I just want to talk a little bit more about the project management. It is something that I do and have done my whole life. I understand job sites. I understand the culture to which you're talking about. But I don't understand implementing best practices. As a general contractor, if I want to make changes on my job site, it is my job site. I am going to make changes because it is for the best of the project. It is not allowed--it is not even open for discussion. We are going to implement them because it is the way we move the project forward. Those that don't want to get on board they can find another job. It is just the way that it works. Construction works certain ways. And so when you're talking about cleanup sites, you're working off $377 billion and rising. Would that be fair? Ms. White. We hope not it is rising. Mr. Mullin. Well, it is. Mr. Trimble, $377 billion and rising. Would you agree? Mr. Trimble. Absolutely. Yes. Mr. Mullin. OK. So $377 billion and rising. Are you working off any type of budget? Ms. White. So we get usually around $6 billion plus per year. Mr. Mullin. So are these--are they going out to bid? Are you bidding these projects? Ms. White. Yes. So the way we are doing our---- Mr. Mullin. So if you're working off bids---- Ms. White. Yes. Mr. Mullin [continuing]. You have got a project. We know what needs to be accomplished on the project. We are bidding it out. How are we not working off a budget? Ms. White. So the way we have been doing contracting previously is it was a 10-year ordering period and, quite frankly---- Mr. Mullin. What do you mean 10-year ordering period? Ms. White. So it is a 10-year period of performance. So we---- Mr. Mullin. So they bid to work for 10 years? Ms. White. They bid--yes, 10 years. Mr. Mullin. Are they open bid? Are they bid a dollar amount? How is that bid out? Ms. White. They are open competition. Mr. Mullin. No, I mean--I mean, do they bid it saying, I am going to work for 10 years for X amount of dollars and I am going to have X amount of employees on there and this is equipment is going to be brought on? Ms. White. So, basically. But---- Mr. Mullin. What do you mean--and just help me understand. I am not trying to badger you. I am just saying, basically, it sounds like to me if you're doing a $377 bid and rising that you're not really bidding it out. You're getting a start price and there's a thousand change orders that's coming behind it each day. Ms. White. Yes. Yes, and that was---- Mr. Mullin. So why are we allowing change orders? Did they know the job? Did they know the scope of it before they went in? Ms. White. Not in many cases? Mr. Mullin. How did they not? We knew what needed to be done. And how long have we been on the site now? Ms. White. So, traditionally---- Mr. Mullin. Not traditionally. Ms. White. OK. Mr. Mullin. We know what needs to be done. I am not talking about the past. You're--we are looking forward. Ms. White. Yes. So looking--looking---- Mr. Mullin. The past are mistakes we can learn from. Ms. White. Looking forward, that's our end-state contracting model exactly, so that we will know exactly what-- -- Mr. Mullin. So why isn't that already implemented them? Ms. White. We are. We have RFPs on the street right now. Mr. Mullin. So we are going to go to project. We are not going to allow change orders because this happens all the time. The change orders was the sneaky way that you came into a job late at a low price and you used up---- Ms. White. We call it buy-in the job. Mr. Mullin. Right. And then so now you get jobs all the time and change orders aren't allowed. They will tell you right off the bat. Change orders are not allowed until the--unless the GC instructs change orders because, you know, every change order comes with another change order from everybody downstream. Ms. White. Right. Mr. Mullin. So that's how you get out of hand. So are these--are these bid by Federal contractors? Who are these bid by? Ms. White. So usually it is--a LLC is set up by a group of large contractors--Jacobs, Fluor, Bechtel. Mr. Mullin. So were they--that are Federal employees that's out there working on it? Ms. White. So we have oversight responsibility but we don't do the field work. Mr. Mullin. So who is the general contractor on the job sites? Ms. White. So the general contractor on the job site would be considered probably the president of the LLC. Mr. Mullin. And the LLC bids the project and then moves forward? Ms. White. Yes, under our end-state contracting model how it is going to work is we select people based on personnel first because, based on my experience in the field, that's the most important factor for a successful project. Mr. Mullin. Personnel--explain that one to me. Ms. White. So that's their key personnel. Who the company is bidding to be the president---- Mr. Mullin. Well, to me, anybody that's been on this job site should be fired. They are not doing their job right. So how are you basing it personnel? I am just giving you the facts of the matter. I am a business man and this is what I do for a living so I get it. I would keep no one there. If I am taking over a company that's failing, which these projects are failing because they are going way over budget and no end in sight, why would I keep the management intact? Ms. White. I am not saying we are. I am just telling you the way we are rolling out this contracting model and how it is different and how it is going to improve performance. Mr. Mullin. But I have questions when you're saying you're basing it on personnel. What personnel are you looking for? Because the model to which is being used isn't successful. It is kind of difficult for me to say that I am going to bid a job based on the personnel to which is coming forward. Ms. White. There's a number of factors. It is not the only factor. Mr. Mullin. It should be based on the--on the work that needs to be done and is the company capable of delivering it or not. Ms. White. Yes, and all of those factors are involved as well. Mr. Mullin. But you are saying you are--and I am not--I will wrap up in just a second. I just want to clarify what you're saying on here. You are saying you're basing the bid on personnel. Ms. White. No, I am not. Mr. Mullin. But that's what you said. Ms. White. There's three factors. It is personnel, it is work scope, and it is their organization. So there's a number of factors involved in the bidding process and the most important thing that is going to improve performance is the postaward negotiations which will limit or eliminate change orders. Mr. Mullin. Everything you said is why Federal contracts cost so much. When you're bidding a job, double it. You're still not going to come in on it. Thank you. I yield back. Mr. Kennedy. Chair thanks the gentleman. The Chair recognizes the gentlelady from New Hampshire, Ms. Kuster, for 5 minutes. Ms. Kuster. Thank you very much and thank you for being with us today. You know, I think the frustration you hear in a bipartisan way is that we are hired by the constituents to protect public safety and to protect the public dollars. These are hard-earned tax dollars, and it is our role to find that balance, and we want to work with you. But when you're talking hundreds of billions of dollars, I think it is important for us to have a plan and have a strategy and not just continue to come back and pour more money after-- good money after bad. And so I think that's what you are hearing from us. I noted in the GAO report that the Office of Environmental Management--and I am just going to quote here--lacks the information needed to evaluate overall project performance and assess whether it has sufficient staff or the right staff with the rights skills to carry out the cleanup mission. Now, you didn't create the problem and I appreciate you coming on to do your part to clean this up. Let me start, Mr. Trimble, with you. Does the Office of Environmental Management have sufficient capacity to appropriately handle the cleanup of our Nation's most hazardous sites at this time? Mr. Trimble. I think that is a key question and I would encourage Anne to--as they embark on these new initiatives to do an assessment of that. One, you know, we have talked about DOE headquarters having a project management office. You know, they can avail themselves of that office. But I would note that there is a robbing-Peter-to-pay-Paul aspect of what is going on, because in fact there was a Paul Bosco who moved from that office over to EM to support EM in this transformation. But that just tells you how thin the bench is, right---- Ms. Kuster. Right. Mr. Trimble [continuing]. Both at DOE headquarters and in the EM. So as they assess this, you know, Assistant Secretary-- you know, the efforts by the assistant secretary is great but you need the horses on your bench to carry out because there are a hundred other issues the assistant secretary has to manage and you need the resources to do that, and I think an assessment of that in terms of the skilled staff and the level of staffing is important. Ms. Kuster. And then let me ask you, Ms. White, the same question. Does your office have sufficient capacity to appropriately handle cleanup of our Nation's most hazardous sites and my understanding is we are down to a dozen or so but these are the most challenging sites. Ms. White. Yes. So we are having a look at that, especially within the context of some of our new approaches and innovations. So we are having a close look at that and that is something that is in process as we speak, and I also--we are required, EM, to have an advisory board. So ours is creatively called EM Advisory Board and we are also having them take a look at this issue for us. Ms. Kuster. And can I just ask, as the Oversight Subcommittee of our Energy and Commerce Committee if we can be considered part of your advisory board if you could report back to us on that assessment of staff and personnel whether you have the right people with the right skills. So here is my--another concern that I have. In March, DOE released its fiscal 2020 budget request. But this administration has proposed reducing the Office of Environmental Management budget to $6.5 billion, which is about 10 percent reduction below last year, 2019. This seems to me like we are headed in the wrong direction. How will cutting your budget by 10 percent help bring down the program's substantial environmental liability and help clean up these sites? Ms. White. So the budget request is adequate for what we need to get done for 2020 and I feel confident that the work scope we have planned will get accomplished within the current budget. Ms. Kuster. But how do we work through the backlog of sites and--look, I am not a nuclear engineer but I am a mom and a citizen and I can tell you that leaving it out there longer waiting for some type of sabotage, some type of accident, is not making our constituents across this country safer. So how is cutting your budget helping you to deal with the backlog of these sites? Ms. White. Again, the budget we requested is adequate for the scope we have planned. Is the scope we have planned going to bring down liabilities? Maybe it is not the right scope. So we are working very diligently, as I said, with our end- state contracting model to ensure we have a great understanding of our work scope and then stick to the plan. Have a plan, stick to the plan. Ms. Kuster. My time is up. But with your indulgence, Mr. Chair, could I ask Mr. Trimble's comment on that? Mr. Kennedy. Please. Mr. Trimble. Yes. The budget--I mean, I think the danger without trying to get a handle on the backlog of liability is important because at some point this growth and dynamic we are seeing starts to resemble an interest-only loan on your house, right, and you can't---- Ms. Kuster. Just what I was thinking of. We are not making progress. Mr. Trimble. You're not bringing down the principal. One observation regarding the budget and the--sort of connecting that to the lack of a sort of strategic plan here is if you have a longer-term plan you realize this mission continues to 2070, 2080, you will look out over that time and realize we have a challenge with cesium removal or a challenge with this. I need technology to answer that to lower our cost. You do that through technology development. What I noted in the budget is I think their--the amount for technology development was zeroed out, and this is important because there is currently a National Academy of Sciences that has been helping EM on the issue of technology development to help EM achieve its mission. So I think---- Ms. Kuster. But we are not going to move into the future with zero research and development. Mr. Trimble. It is a question. Ms. Kuster. Great. Thank you very much, and I yield back. Mr. Kennedy. Thank you. The Chair thanks the gentlelady and recognizes Mr. Duncan from South Carolina for 5 minutes. Mr. Duncan. Thank you. Thank you both for being here. And I am sitting here listening to the testimony and listening to the questions today, and I wonder how many Members of Congress--how many members of this committee--have actually been to Hanford, Washington, or to Savannah River Site or Idaho Flats or Oak Ridge, Tennessee. How many have actually taken the time to understand what we are talking about today? Because in the production of the Nation's atomic arsenal we use chemical separation facilities and there's only one chemical separation facility left in the Nation and that is H Canyon at Savannah River Site. Now, Savannah River Site is different than Hanford. Hanford is a closure site. That means we are going to close it down. We are going--we are going to clean up the property and, ultimately, it is going to be just a cleaned up site. Savannah River Site has continuing emissions for this Nation and H Canyon is vital. But when H Canyon is operating, there will be waste created that'll ultimately have to be taken out of these tank farms. What we are talking about are tank farms. Huge 800,000 gallon tanks and usually there are, what, 12, 15 in a tank farm? Fifteen 800,000 gallon tanks. Those tanks are bigger than the room we are sitting in right now. And so when the plutonium is created for our Nation's arsenal, when the stuff separated away to find the plutonium and use it, this stuff settles out in the tank farms, much like a septic tank where liquids flow, solids settle down, then the next set, more solids settle down. And so you've got all this stuff underground in carbon fiber--carbon steel tanks, rather. Some of these at Hanford are single-wall carbon steel tanks, which are starting to leak. Where does Hanford sit? It sits on the Columbia River. Where does Savannah River Site sit? It sits on the Savannah River. Where does Oak Ridge sit? On the Tennessee River. These are areas that are environmentally sensitive that could affect a lot of people and our Nation's environment had this waste leaked into the soil and ultimately got into the river system in the Columbia River with regard to Hanford. And so Savannah River Site, we have 35 million gallons came out of 43 tanks. That waste has been vitrified. That means it has been turned into glass. While it was still molten, it actually filled up ten-foot stainless steel canisters. These canisters still sit at Savannah River Site but they were destined to go to Yucca Mountain. But when we decided we were going to not use Yucca Mountain for its intended purposes, which was the law of the land, that waste--defense waste still sits at Savannah River Site along with plutonium that's got to go somewhere that came out of the nonproliferation. And so we have got all this waste. Let us go back to Hanford. Hanford is a cleanup site. They not only had tank farms, they also found a bunch of radioactive material all over the site that had to be taken care of. That waste has to go somewhere. And so there are challenges when you have an 800,000 gallon tank underground to get into that tank to get the waste out. When I was in Hanford in 2008 they were worried about the lid collapsing on the tank so they were going through 12- and 14- inch pipes into those tanks to try to clean it up. Now, we are talking about solids in there. We are talking about peanut butter paste like semi-solids. We are talking about salt waste. We are talking about liquids. Liquids are easy to pump out. But how are you going to--peanut butter type waste out from inside that tank? They were sticking robots into that tank operating to push that solid up--that semi-solid up to get it out of that tank. It was a challenge. That's where some of the costs comes from. Finally, they discovered they could cut into the tank and it has made it much easier to get into those 800,000 gallon tanks to get that waste out. But once that waste has come out at Hanford, it has got to be vitrified. It has got to be solidified so that it doesn't leak into the soil and, whatever capacity we decide to store it in as a nation, we can't have it continuing to leak into the ground. So they turn it to glass. Glass doesn't go anywhere. It doesn't leak into the ground. But these are costs. I am a fiscal hawk. I really believe we ought to look at every dollar this Nation spends. But I believe my constituents and people around the Nation would be OK with spending money to get the waste out of these tanks to keep it from leaking in the Savannah River, to keep it from leaking into the Columbia River or the Tennessee River or wherever it may be, versus a lot of money our Government spends on other things. Environmental Management, they spent $48.5 billion since 2011. If you go back, pass that for decades, you had stimulus money, ARA money trying to build vitrification facilities, high waste--liquid disposal sites at Hanford to deal with this waste. The liability is $377 billion. I will guarantee the liability will go up if that waste makes it to the river. It is already in the ground at Hanford in some places and having to be cleaned up. So this is a great hearing to talk about the environmental management of this waste that came out of our weapons programs in sites all over this country that are being cleaned up but also a reminder that we are going to continue making waste at Savannah River Site because it has ongoing missions and how we deal with that waste is something that we ought to continue talking about and I want to challenge every member of this committee--subcommittee and full committee--to take it upon yourselves to go to Hanford and understand what they are dealing with with 800,000 gallon underground tanks and tank farms. Multiple tanks, not just one. Go to Savannah River Site and understand what they are dealing with with underground tanks, what they are dealing with in H Canyon, its ongoing missions, and the waste that will be created then, because this isn't going away as our Nation continues to try to be safe in a global environment that we have. And so I thank the Department for what they do, and I am standing in your corner as a member of the Cleanup Caucus to try to help clean up this Nation, and I yield back. Ms. White. Thank you. Mr. Kennedy. The Chair thanks the gentleman and the Chair recognizes himself for 5 minutes for questions. I want to thank the witnesses for being here, for the work that you do, and for coming to try to address, as Mr. Duncan put it, some critical issues that our Government needs to address, and I think the question being how do we do so as expeditiously and as efficiently as we possibly can. So building off of a little bit of what Mr. Duncan indicated, since 2011 EM has spent over $45 billion to try to address the cleanup responsibilities. And yet, we seem no closer to cleaning up these sites or reducing the department's environmental liabilities. In fact, DOE reported that the environment liabilities managed by EM grew to $377 billion last year--$100 billion increase from the year before and more than double what it was in 2011. So I want take a few minutes to try to figure out what we have bought with all the money we are spending and how we can try to start to buy down some of that liability. Mr. Trimble, to begin with, how have the cleanup activities at--that EM has spent money on in recent years gotten us closer to actually cleaning up the sites and why are we spending more and yet seeing that liability continue to grow? Mr. Trimble. Well, there has been accomplishments with the money spent. I think there--you know, you can't deny the commitment and the professionalism of the folks in the field doing this work. I think the challenge, from our perspective, is should we have gotten more done with the same amount of money, and to answer that question you need to have used program and project management best practices because that is how you are able to measure and manage your work to achieve results and that is what we haven't seen. Mr. Kennedy. And do you expect that those will be adopted, going forward? Mr. Trimble. I am encouraged by the direction Assistant Secretary White is taking. I think, obviously, the proof is in the pudding. Ultimately, we will have to see how those get implemented. My concern, again, being sort of the doubting Thomas, is the scope of the changes we are talking about are fundamental. They involve more than just EM. They involve all of DOE and the commitment of senior leadership there. The changes we are talking about, you know, EM has had, what, I think about seven assistant secretaries since 2010 or so. You know, I am hoping Assistant Secretary White is there for another 10 years. I mean, it would be great to have that kind of continuity and commitment to this mission. But the danger has always been you have transition. The other thing is the EM as a mission within DOE has sort of been the neglected child that has been moved around multiple times within the organization. Even though its budget is bigger than--science has its own under sector. EM's budget, just its budget is bigger than science. You add in the liability, I don't know what--maybe NNSA is bigger but nobody's bigger. And yet, they are only at the assistant secretary level. Mr. Kennedy. And so I wanted to build off of a little bit of what you said. A significant portion of those cleanup dollars, some 30 to 60 percent for individual sites' budgets, according to testimony, is going to what's called minimum safety, or min-safe, work. What is min-safe work referring to and why should we be concerned about it? Mr. Trimble. Min-safe is--it is overhead. I don't mean to be dismissive of the need to do that overhead. You're talking about keeping the water running, the electricity, the guard force, keeping buildings from collapsing. The challenge there is that the percentage of min-safe is huge. As a total of the budget, it is 42 percent. Some--several sites it is over 50 percent. At one site, it is over 70 percent. So that means the dollars actually going to cleanup are a fraction of what is appropriate. Mr. Kennedy. So, Ms. White, kind of using that as--turn to you, how can we continue to make progress on the underlying-- building off of the testimony of Ms. Kuster as well about the interest-only mortgage--how can you continue to or how can we make progress on the underlying liabilities if such a large percentage of this is just simply going to min-safe work? Ms. White. Right. So that is actually kind of a pet peeve of mine. Some of my people could share that with you. So we are actually launching on a major initiative where we are looking at, OK, how are we defining min-safe, how are we looking at landlord services, and are we mixing some of those things up, which will allow us, I believe, to mine some money out of that min-safe bucket but still be absolutely and completely safe ops. So we are actually very excited about it. Mr. Kennedy. And GAO, I understand, has also reported that the department's estimates of environmental liabilities is likely to continue to grow as we have discussed. Recently, DOE issued a life cycle cost report for the Hanford site which said that cleanup could take until the year 2078, as we heard earlier, and cost as much as $677 billion, a figure that the secretary of energy called shocking. That is just one site and doesn't include the cleanup costs of the other 15 sites. So I think we can all agree that $677 billion is a big number. Do you believe that that estimate for the Hanford site is accurate and, if so, how much will EM liabilities grow next year as a result? Ms. White. So I believe it is accurate. I don't expect to see it to grow. One thing I do want to state is we are actually--EM is doing well on most of our sites. Our big challenge is the tank waste at Hanford and that's really what's been driving the liability increases all along. Mr. Kennedy. All right. One moment. I want to thank our witnesses for their participation at the hearing. I want to thank our colleagues as well for their questions. Clearly, it is an important area that we need to get right. And I remind Members that, pursuant to committee rules, they have 10 business days to submit additional questions for the record to be answered by witnesses who have appeared before the subcommittee. I ask the witnesses to agree to promptly respond to any such questions you should receive. And with that, the subcommittee is adjourned. Thank you very much. [Whereupon, at 12:03 p.m., the committee was adjourned.] [Material submitted for inclusion in the record follows:] [GRAPHICS NOT AVAILABLE IN TIFF FORMAT] [all]