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FY 1985 funding will be used to train new and current contractor employees on reactor operation by simulation of real-life situations, to conduct nondestructive testing of reactor internals, to improve reactor coolant instrumentation and computerization, to develop lessons-learned studies, and to produce engineering safety studies.

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CONSTRUCTION PROJECTS

(Chart 27) I have already discussed most of our new construction projects as they relate to major issues. Our request also includes an important new project for a uranium nitrate to oxide conversion facility at Savannah River. This project will replace deteriorating equipment and facilities at our Oak Ridge Y-12 Plant,

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and will

prevent operational interruptions.

(Chart 28) Our request includes second year funding for the three new projects requested as part of the FY 1984 supplemental. These projects are 84-D-134, Safeguards and Security Improvements, at Savannah River; 84-D-136, Enriched Uranium Conversion Facility Modifications, at Oak Ridge; and 84-D-137, Facility Security

Systems Upgrade, at Idaho.

(Chart 29) Our FY 1985 request includes final year funding for

82-D-201, Special Plutonium Recovery Facilities, at Savannah River.

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MATERIALS PRODUCTION HIGHLIGHTS

(Chart 30) In summary, the major elements of our proposed

FY 1985 Materials Production budget are directed towards meeting the Nuclear Weapons Stockpile Memorandum requirements and achieving enhanced safety, security, and environmental protection. We plan to:

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Continue in FY 1985 the base production activities ongoing in FY 1984,

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I would now like to turn to the Defense Waste and Byproducts Management Program. This program provides for the management of

radioactive waste generated primarily by the Department's defense activities in support of the production of nuclear materials and weapons, the nuclear Navy and other R&D activities of the Department. It includes the development of technologies and facilities for storage and disposal of high-level, transuranic, and low-level wastes, and for utilization of byproducts.

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The goal of the Defense Waste and Byproducts Management program is to manage defense nuclear waste routinely, safely, and effectively. This goal includes the disposal of the backlog of stored defense waste located at the sites shown on Chart 31. next chart (Chart 32) shows the volume of waste that has been generated from over 30 years of nuclear material production activities. Although we are continuing to generate high-level waste, our volumetric inventory remains relatively constant due to our waste concentration efforts. In addition, we are continuing to add about 5,500 cubic meters of transuranic waste each year.

In June 1983 the President submitted to you the Defense Waste Management Plan which reflects our plans for permanent disposal of high-level and transuranic waste in response to Public Law 97-90. It shows a reasonable and affordable way to meet this goal through the implementation of the policy shown on Chart 33. By careful evaluation of risks and benefits, and through technological improvements, we feel the costs to implement the program are reasonable. We will continue to dispose of low-level waste on the sites where it is generated.

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Our FY 1985 budget is consistent with the policies contained in the Defense Waste Management Plan. With very few exceptions, we are maintaining the schedules reflected in the plan. As I discuss each major area of the plan, I will point out the exceptions. activities in FY 1986 and beyond will be evaluated annually, during the normal budget cycle, in terms of their scope, timing, need, and relative ranking compared to other

Departmental priorities. I will describe our overall plans for disposing of defense high-level waste and transuranic waste through the year 2015.

HIGH-LEVEL WASTE

High level waste is, in general, that highly radioactive waste that originates as a liquid from our defense fuel reprocessing sites at Savannah River, Idaho, and Hanford. Our first objective is to end interim storage of high-level waste in tanks and bins and achieve permanent disposal by immobilizing and preparing high-level waste for shipment to a geologic repository. Our schedule for accomplishing this task is shown on Chart 34.

Construction

We are right on schedule with regard to construction of the Defense Waste Processing Facility at Savannah River. began in October 1983 and we expect to complete it in 1988 and begin operations in 1989. With regard to Hanford, our original schedule was somewhat ambitious. Because of the need to firm up the requirements and planning for the immobilization plant at that site, construction originally planned for 1985 is not expected to begin until at least FY 1987. We are spending the interim time planning in order to minimize the processes and costs of the facility. With regard to Idaho, the newly completed Waste Calcining Facility, which processes liquid waste to a granular form, continues to operate exceptionally well. The granular waste or calcine is stored in stainless steel bins and represents a very safe interim storage approach pending ultimate disposal of waste from that site in the early part of the twenty-first century.

With regard to the permanent disposal of defense high-level waste in a geologic repository, the Nuclear Waste Policy Act of 1982,

P.L. 97-425, directed the President to evaluate by January 1985 the use of commercial waste disposal capacity for defense high-level waste. The Act requires the President to evaluate cost efficiency, health and safety, regulatory, transportation, public acceptability, and national security factors. Unless the evaluation concludes that national security and other considerations necessitate a dedicated defense waste repository, the Secretary of Energy is directed to proceed with arrangements for disposing of defense waste in the same repository used for commercial waste. Preparation of the study to support the evaluation is underway.

TRANSURANIC WASTE

Transuranic waste is that waste that contains the long-lived radioactive elements beyond uranium in the periodic table. The principal element in such waste is plutonium.

The objectives of our plan with regard to transuranic waste are to end interim storage and achieve permanent disposal. Newly generated and stored defense transuranic waste will be certified for compliance. with waste acceptance criteria for the planned repository and sent to the Waste Isolation Pilot Plant in New Mexico after processing (if necessary) and environmental documentation. After 5 years of

operational experience, a decision will be made to leave or retrieve the transuranic waste. Our schedule for permanent disposal of defense transuranic waste is shown on Chart 35. We are on schedule with all activities shown on this chart. We

expect to be certifying waste at all sites by the end of FY 1984. Our pilot facilities at Idaho are continuing on schedule and within cost estimates. The construction of the Waste Isolation Pilot Plant is proceeding extremely well, and we now expect to complete this facility by December 1986, 1 year sooner than previously anticipated.

COSTS

This next chart (Chart 36) shows the estimated annual costs for disposing of defense high-level and transuranic wastes. The costs peak at about $450 million in the mid-1980's due to the

construction costs for the Defense Waste Processing Facility and the Waste Isolation Pilot Plant (WIPP). These costs will be eventually offset by a reduction in the costs of safely maintaining the radioactive wastes in their current form. In addition, the immobilized waste, sealed deep in an underground repository at the end of this period, will present no hazard to or his environment.

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I will now describe some recent accomplishments, our plans for FY 1985, and provide support for our request for FY 1985 funding. (See Chart 37.)

INTERIM WASTE OPERATIONS

The principal objective of this program is the ongoing management of existing and newly generated waste from naval reactors and production operations, pending implementation of permanent disposal operations. During fiscal years 1984 and 1985, the transfer of high-level waste from old tanks to new tanks will continue at the Hanford Reservation. An additional 17 tanks will be isolated from the environment in FY 1984 and 11 in FY 1985 for

a total of 74 out of 149. This program will be completed in FY 1989 as scheduled.

The solidification and encapsulation of an additional 100 strontium capsules from high-level waste will be completed in

FY 1984, and we expect to complete encapsulation of the backlog of strontium by the third quarter of FY 1985 (a total of 600 capsules planned) for safer storage and potential beneficial use. Encapsulation of the entire backlog of cesium (1,575 capsules) was completed in FY 1983. Also at Hanford, construction of the eight double shell tanks (begun in 1983) will be completed 9 months ahead of schedule (first quarter of FY 1986) assuring that adequate storage space is available for PUREX waste. Construction of the Waste Handling and Isolation Facility will continue which includes a portable grout facility to solidify low level liquid waste for shallow land disposal thus saving tank space.

The Savannah River waste transfer program is scheduled for

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