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Weapons of Mass Destruction (WMD)

FY93 ATOMIC ENERGY DEFENSE REQUEST, 05/06/1992, Testimony

Basis Date:
19920706
Chairperson:
S. Nunn
Committee:
Senate Arms Services
Docfile Number:
T92AC142
Hearing Date:
19920506
DOE Lead Office:
DP SUB
Committee:
Armed
Hearing Subject:
FY93 ATOMIC ENERGY DEFENSE REQUEST
Witness Name:
Secretary Watkins
Hearing Text:

 STATEMENT OF ADMIRAL JAMES D. WATKINS
 SECRETARY OF ENERGY
 U.S. DEPARTMENT OF ENERGY
 BEFORE THE
 SENATE ARMED SERVICES COMMITTEE
 MAY 6, 1992
  
 MR. CHAIRMAN, MEMBERS OF THE COMMITTEE, I AM PLEASED TO APPEAR BEFORE
 YOU TODAY TO PRESENT AN OVERVIEW OF THE DEPARTMENT OF ENERGY'S FY 1993
 BUDGET REQUEST FOR THOSE NATIONAL SECURITY PROGRAMS FUNDED BY THE 050
 ATOMIC ENERGY DEFENSE ACTIVITIES ACCOUNT. PROGRAMS IN THIS CATEGORY ARE
 ADMINISTERED BY THE OFFICES OF DEFENSE PROGRAMS; NEW PRODUCTION
 REACTORS; ENVIRONMENTAL RESTORATION AND WASTE MANAGEMENT; ARMS
 CONTROL; THE NAVAL REACTORS PROGRAM UNDER THE OFFICE OF NUCLEAR ENERGY;
 SECURITY AFFAIRS; INTELLIGENCE; AND SECURITY EVALUATIONS UNDER THE
 ASSISTANT SECRETARY FOR ENVIRONMENT, SAFETY AND HEALTH.
                                BUDGET REQUEST
 OUR FY 1993 BUDGET REQUEST IS $12.1 BILLION, ABOUT A 2-PERCENT DECLINE
 FROM FY 1992 WHEN ADJUSTED FOR INFLATION. THE BUDGET EMPHASIZES
 MAINTAINING A REDUCED NUCLEAR WEAPONS STOCKPILE AND DOWNSIZING THE
 DEFENSE COMPLEX WHILE CONTINUING OUR COMMITMENT TO ENVIRONMENTAL
 RESTORATION AND WASTE MANAGEMENT ACTIVITIES. TO REFLECT CHANGES IN THE
 STRATEGIC ENVIRONMENT, THE DEPARTMENT WILL BE SUBMITTING A BUDGET
 AMENDMENT TO FURTHER REDUCE THE FY 1993 REQUEST FOR WEAPONS PRODUCTION.
 WITHIN THIS BUDGET, THERE IS A 24-PERCENT INCREASE FOR ENVIRONMENTAL
 RESTORATION AND WASTE MANAGEMENT TO SUPPORT OUR PRIORITY EFFORT ON
 ENVIRONMENTAL COMPLIANCE AND CLEANUP.
                            STRATEGIC OVERVIEW
 OVER THE PAST 3 YEARS, THE WORLD HAS UNDERGONE BREATHTAKING CHANGES.
 THE CHANGES INCLUDE THE END OF THE COLD WAR AND THE COLLAPSE OF THE
 SOVIET UNION; THE POTENTIAL SPREAD OF WEAPONS OF MASS DESTRUCTION TO
 CONFLICT-PRONE "THIRD WORLD" REGIONS; THE SIGNIFICANT REDUCTION IN THE
 NUMBER AND TYPES OF U.S. NUCLEAR WEAPONS, ACCELERATED BY THE
 PRESIDENT'S INITIATIVES IN HIS SPEECH OF SEPTEMBER 27, 1991, AND HIS
 STATE OF THE UNION ADDRESS ON JANUARY 28, 1992; CONTINUED EMPHASIS
 WITHIN THE NUCLEAR WEAPONS COMPLEX ON FULL COMPLIANCE WITH LAWS,
 REGULATIONS, AND ACCEPTED STANDARDS; AND SIGNIFICANT BUDGETARY
 CONSTRAINTS. THESE CHANGES HAVE OPENED UP OPPORTUNITIES AND CREATED
 CHALLENGES RIVALING THE GREATEST IN OUR HISTORY WITH THE RESULT THAT,
 FOR THE  FIRST TIME SINCE 1945, THE UNITED STATES IS NOT BUILDING ANY
 NUCLEAR WEAPONS.
 THESE CHANGES HAVE HAD A PROFOUND EFFECT ON THE MISSIONS AND PRIORITIES
 OF THE DEPARTMENT OF ENERGY. THE DIMINISHING STRATEGIC MILITARY THREAT
 TO THE UNITED STATES HAS ALREADY ALLOWED THE PRESIDENT TO MAKE
 SIGNIFICANT REDUCTIONS IN THE SIZE AND STRUCTURE OF OUR NUCLEAR
 DETERRENT. IF THE COMMONWEALTH OF INDEPENDENT STATES (CIS) RESPONDS TO
 HIS STATE OF THE UNION INITIATIVES, THERE WILL BE MORE. THIS, IN TURN,
 HAS ALLOWED US TO BEGIN TO SIGNIFICANTLY REDUCE AND RESTRUCTURE THE
 NUCLEAR WEAPONS COMPLEX, WHILE FOCUSING ON ENVIRONMENTAL CLEANUP. AT
 THE SAME TIME, THE REDUCED STRATEGIC THREAT REQUIRES US TO PAY GREATER
 ATTENTION TO OTHER ASPECTS OF NATIONAL SECURITY, SUCH AS THE GROWING
 THREAT OF PROLIFERATION OF WEAPONS OF MASS DESTRUCTION. BASED ON OUR
 EFFORTS  OVER THE LAST THREE YEARS AND THE PROGRESS WE HAVE MADE TO
 IMPROVE THE CULTURE, MANAGEMENT, AND OPERATIONS THROUGHOUT THE
 DEPARTMENT, I BELIEVE THE DOE IS NOW WELL POSITIONED TO ADDRESS THESE
 CHANGES, OPPORTUNITIES, AND CHALLENGES.
                     DEFENSE PROGRAMS MISSION AND PRIORITIES
 THE DEFENSE PROGRAMS MISSION IS TO PROVIDE AND MAINTAIN SAFE, SECURE,
 RELIABLE, AND SURVIVABLE NUCLEAR WEAPONS, AS REQUIRED BY THE DEPARTMENT
 OF DEFENSE AND APPROVED BY THE PRESIDENT, IN AN ENVIRONMENTALLY SOUND
 AND COST-EFFECTIVE MANNER. WITHIN THE FRAMEWORK OF THIS MISSION,
 EMPHASIS, AT LEAST IN THE NEAR TERM, WILL SHIFT TO ACTIVITIES RELATED
 TO WARHEAD RETIREMENT AND DISMANTLEMENT; RECONFIGURATION OF THE NUCLEAR
 WEAPONS COMPLEX; CONTINUING IMPROVEMENTS TO THE SAFETY AND SECURITY OF
 THE ENDURING WEAPONS STOCKPILE; NONPROLIFERATION OF NUCLEAR WEAPONS;
 PREPARATION FOR ULTIMATE DECONTAMINATION AND DECOMMISSIONING (D&D) OF
 EXCESS FACILITIES; AND THE TRANSFER OF TECHNOLOGY FROM THE WEAPONS
 COMPLEX TO THE COMMERCIAL SECTOR TO ENHANCE U.S. COMPETITIVENESS. AT
 THE SAME TIME, IN AN UNCERTAIN WORLD, WE MUST MAINTAIN NUCLEAR
 COMPETENCE IN OUR PRODUCTION COMPLEX AND NUCLEAR WEAPONS LABORATORIES
 AND WE MUST CONTINUE A MODEST NUMBER OF UNDERGROUND NUCLEAR TESTS TO
 ENSURE  THE INTEGRITY OF THE NATION'S NUCLEAR WEAPONS STOCKPILE.
                                    K-REACTOR
 SINCE AUGUST 1988, THE PRODUCTION REACTOR AT THE SAVANNAH RIVER SITE
 HAS BEEN IN EXTENDED OUTAGE WHILE WE HAVE ADDRESSED SAFETY CONCERNS.
 OUR OBJECTIVE WAS, AND IS, TO ENSURE WE CAN PROVIDE RELIABLE TRITIUM
 PRODUCTION CAPABILITY IN A MANNER THAT PROTECTS THE SAFETY AND HEALTH
 OF THE WORKERS, THE PUBLIC, AND THE ENVIRONMENT. AS DEFENSE SECRETARY
 CHENEY OUTLINED IN A RECENT LETTER TO THE CHAIRMEN OF THE HOUSE AND SENATE
 ARMED SERVICES COMMITTEES, IN THE INTEREST OF NATIONAL SECURITY, WE MUST
 HAVE IN PLACE A VIABLE PRODUCTION SOURCE OF TRITIUM UNTIL WE ARE ASSURED
 OF A NEW AND RELIABLE LONG-TERM TRITIUM PRODUCTION SOURCE IN THE FIRST
 DECADE OF THE NEXT CENTURY.
  
 ON DECEMBER 13, 1991, I AUTHORIZED RESTART OF THE K-REACTOR FOLLOWING
 AN EXTENSIVE 3-YEAR EFFORT TO SIGNIFICANTLY UPGRADE HARDWARE,
 PROCEDURES, AND PERSONNEL TRAINING. THE DEPARTMENT RESPONDED TO
 RECOMMENDATIONS FROM THE DEFENSE NUCLEAR FACILITIES SAFETY BOARD, WHICH
 CARRIED OUT EXTENSIVE REVIEWS AND MEETINGS, INCLUDING PUBLIC HEARINGS
 ON RESTART PREPARATION ACTIVITIES. ON DECEMBER 14, SAFETY EQUIPMENT
 TESTING BEGAN FOR THE K-REACTOR. WE DISCOVERED A PROBLEM WITH THE
 SAFETY RODS ON DECEMBER 16 AND HAD COMPLETED REPAIRING THOSE ANOMALIES
 BY DECEMBER 24.
 ON DECEMBER 24 WE DISCOVERED THAT ONE OF THE REACTORS' HEAT EXCHANGERS
 WAS LEAKING PRIMARY COOLANT WATER INTO THE SAVANNAH RIVER. APPROXIMATELY
 150 GALLONS (CONTAINING 6,000 CURIES) OF TRITIATED WATER ESCAPED FROM THE
 K-REACTOR PLANT. THE LEAK STARTED ON DECEMBER 22. THE RELEASE RESULTED
 FROM TECHNICAL FAILURE OF ONE OF THE TUBES IN ONE OF THE PLANT'S TWELVE
 HEAT EXCHANGERS. SUBSEQUENT INVESTIGATION DETERMINED THAT THE LEAK WAS
 CAUSED BY A SMALL HOLE IN THE SIDE OF ONE OF THE 9,000 STAINLESS STEEL
 TUBES IN THE FAILED HEAT EXCHANGER. OTHER TUBES SHOWED NO SPECIAL WEAR
 PROBLEMS.
 THE LEAK, WHILE NOT POSING ANY HEALTH HAZARD, NONETHELESS LED TO
 SEVERAL CORRECTIVE ACTIONS TO PREVENT A RECURRENCE OF SUCH A RELEASE.
 Wt HAVE REPLACED THREE HEAT EXCHANGERS, IMPROVED PROCEDURES AND
 TRAINING, AND INSTALLED IN-LINE TRITIUM MONITORING EQUIPMENT, THE
 DEVELOPMENT OF WHICH WAS UNDERWAY PRIOR TO THE LEAK.
 WE NOW SAMPLE WATER LEAVING THE PLANT EVERY TWO HOURS AT THE REACTOR
 SITE, WHEREAS WE HAD BEEN TESTING WATER SAMPLES TWICE A DAY AT A
 LABORATORY DISTANT FROM THE REACTOR SITE. WE ALSO HAVE COMPLETED AN
 INVESTIGATION INTO THE EVENT, AN ENVIRONMENTAL ANALYSIS, A
 METALLURGICAL EVALUATION OF THE HEAT EXCHANGER TUBE FAILURE, AND A
 TECHNICAL EVALUATION OF HEAT EXCHANGER INTEGRITY. RECENTLY, THE
 DEPARTMENT BRIEFED THE DEFENSE NUCLEAR FACILITIES SAFETY BOARD (DNFSB)
 ON THE STATUS OF K-REACTOR ACTIVITIES AND THESE REPORTS.
 AS I HAVE PREVIOUSLY ACKNOWLEDGED, WE MADE A MISTAKE IN HANDLING THIS
 INCIDENT. WE DID NOT DETECT THE LEAK SOON ENOUGH, DID NOT EFFECTIVELY
 HANDLE THE PUBLIC INFORMATION EXCHANGE WITH THE AREA COMMUNITIES, AND
 WE ALLOWED TOO LONG A PERIOD TO ELAPSE BEFORE LOCAL OFFICIALS WERE
 FULLY APPRISED OF ALL ASPECTS OF THIS EVENT. FORTUNATELY, THE RELEASE
 HAD NO ADVERSE EFFECTS ON THE ENVIRONMENT OR THE HEALTH OF THE CITIZENS
 OF THE AREA. IN FACT, THE INDIVIDUAL EXPOSURE WAS ESTIMATED TO BE LESS
 THAN 2 PERCENT OF THE ENVIRONMENTAL PROTECTION AGENCY DRINKING WATER
 STANDARD OF 4 MILLIREMS PER YEAR. TO HELP PRECLUDE RECURRENCE, WE HAVE
 PUT IN PLACE A MUCH MORE RAPID RESPONSE PROGRAM TO ENSURE REAL-TIME
 COMMUNICATION WITH ALL CONCERNED PARTIES:
 AS I HAVE STATED, I WILL NOT APPROVE THE RESTART OF THE K-REACTOR
 UNTIL ALL REVIEWS ARE COMPLETED AND THE NECESSARY CORRECTIVE ACTIONS
 ARE IMPLEMENTED. MEMBERS OF THIS COMMITTEE AND OTHER MEMBERS OF
 CONGRESS WILL BE NOTIFIED PRIOR TO RESTART OF THE REACTOR. THE
 DEPARTMENT WILL ALSO CONDUCT BRIEFINGS COORDINATED BY THE METRO AUGUSTA
 CHAMBER OF COMMERCE WITH CITIZENS OF THE SAVANNAH RIVER AREA PRIOR TO
 RESTART. I MUST EMPHASIZE THERE IS NO RUSH TO RESTART.
 ONCE ALL PARTIES ARE NOTIFIED, THE DEPARTMENT WILL PROCEED WITH THE
 POWER ASCENSION TEST PROGRAM, WHICH IS EXPECTED TO TAKE 2-3 MONTHS.
 COMPLETING THE POWER ASCENSION TEST NOW IS VITAL TO ENSURE THAT ALL
 MODIFICATION, TRAINING, AND PROCEDURE UPGRADES HAVE BEEN CORRECTLY
 IMPLEMENTED. THIS ALSO ALLOWS US TO IDENTIFY ANY ADDITIONAL
 MODIFICATIONS SO THAT WE CAN MAKE THEM DURING THE OUTAGE FOR TYING IN
 THE COOLING TOWER. FOLLOWING COMPLETION OF THE POWER ASCENSION TEST
 PROGRAM, THE REACTOR WILL BE SHUT DOWN TO REPLACE THE SAFETY RODS,
 REPLACE HEAT EXCHANGERS, AND TIE-IN THE COOLING TOWER.
 THE DECISION TO MOVE FORWARD WITH THE COOLING TOWER TIE-IN IMMEDIATELY
 AFTER THE RELATIVELY SHORT TEST PHASE DEMONSTRATES THE DEPARTMENT'S
 COMMITMENT TO MINIMIZE ENVIRONMENTAL IMPACTS FROM FACILITY OPERATION.
 THIS PLAN ALSO HELPS ENSURE THAT ALL SAFETY AND OPERATIONAL ISSUES ARE
 SATISFACTORILY IDENTIFIED AND RESOLVED PRIOR TO COMMENCING SUSTAINED
 REACTOR DEMONSTRATION. THE OUTAGE IS EXPECTED TO TAKE 7-8 MONTHS, AFTER
 WHICH WE PLAN TO RUN THE REACTOR (AT A 30-PERCENT POWER LEVEL) TO
 DEMONSTRATE ITS CAPABILITY TO PRODUCE TRITIUM. SUBSEQUENTLY, WE PLAN TO
 PLACE K-REACTOR IN A LOW-COST STANDBY MODE UNTIL WE ARE ASSURED OF HAVING
 IN PLACE A NEW AND RELIABLE LONG-TERM TRITIUM PRODUCTION SOURCE.
                               ROCKY FLATS PLANT
 FOLLOWING THE SUSPENSION OF PLUTONIUM OPERATIONS AT THE ROCKY FLATS
 PLANT (RFP) IN NOVEMBER 1989, AND CONCURRENT WITH THE CHANGE OF THE
 MANAGEMENT AND OPERATING CONTRACTOR, SIGNIFICANT EFFORTS WERE
 UNDERTAKEN TO IMPROVE MAINTENANCE, TESTING, AND OPERATION OF THE
 PLUTONIUM FACILITIES AT THE PLANT. THE DEPARTMENT HAD PLANNED
 SEQUENTIAL RESUMPTION OF PLUTONIUM OPERATIONS IN SIX BUILDINGS, LEADING
 TO PLUTONIUM PIT PRODUCTION FOR NEW WEAPONS BUILDS, AS SOON AS REQUIRED
 SAFETY IMPROVEMENTS WERE MADE AND DEMONSTRATED TO MY SATISFACTION AND
 TO THAT OF THE APPROPRIATE INTERNAL AND EXTERNAL OVERSIGHT
 AUTHORITIES.
 IN LIGHT OF THE PRESIDENT'S RECENT DECISION TO CANCEL NEW PRODUCTION OF
 THE W88 TRIDENT II WARHEAD, THERE ARE NOW NO DEPARTMENT OF DEFENSE
 REQUIREMENTS THAT WOULD REQUIRE DOE TO PRODUCE PLUTONIUM PITS.
 ACCORDINGLY, DOE IS BEGINNING THE TRANSITION OF THE RFP FROM NUCLEAR
 PRODUCTION ACTIVITIES TOWARD CLEANUP OF THE PLANT, LEADING TO ITS
 ULTIMATE DECONTAMINATION AND DECOMMISSIONING (D&D).
 ALTHOUGH PLUTONIUM PRODUCTION OPERATIONS HAVE BEEN SUSPENDED SINCE
 NOVEMBER 1989, A SUBSTANTIAL AMOUNT OF ACTIVITY HAS BEEN ONGOING AT THE
 RFP. PRODUCTION OF REQUIRED NONNUCLEAR COMPONENTS HAS CONTINUED AND
 ACCOUNTED FOR ABOUT 25 PERCENT OF THE TOTAL OPERATING EXPENDITURES OF
 $1.6 BILLION FOR FY 1990-1992. OF THE REMAINING $1.2 BILLION, OVER 90
 PERCENT OF THE EXPENDITURES HAVE BEEN FOR ENVIRONMENTAL COMPLIANCE AND
 CLEANUP ACTIVITIES, SECURITY OF MATERIALS, AND SAFETY IMPROVEMENTS. MOST
 OF THESE FUNDS WOULD HAVE BEEN REQUIRED EVEN IF NO PLUTONIUM PRODUCTION
 WORK HAD EVER BEEN PLANNED.
  
 IMPROVEMENTS HAVE BEEN COMPLETED IN BUILDING 559, AN ANALYTICAL LABORATORY
 THAT IS NEEDED FOR BOTH PRODUCTION SUPPORT AND WASTE MANAGEMENT FUNCTIONS.
 FOLLOWING CONFIRMATION OF THESE IMPROVEMENTS BY AN OPERATIONAL READINESS
 REVIEW (ORR), AND AFTER DETAILED ASSESSMENTS AND PUBLIC HEARINGS BY THE
 DNFSB, I AUTHORIZED RESUMPTION OF OPERATIONS IN THIS BUILDING ON FEBRUARY
 4, 1992. ON APRIL 16 WE ACHIEVED A SIGNIFICANT MILESTONE AT ROCKY FLATS
 OPERATIONS IN BUILDING 559. OPERATOR AND EQUIPMENT QUALIFICATION EXERCISES
 WITHOUT PLUTONIUM HAVE BEEN COMPLETED AND ACTUAL PLUTONIUM CHEMISTRY IS
 NOW BEING PERFORMED FOR FINAL QUALIFICATIONS UNDER CLOSELY SUPERVISED
 CONDITIONS. THE PLUTONIUM START-UP TEST PLAN SCHEDULES 7 WEEKS OF
 PLUTONIUM QUALIFICATION AND  PROFICIENCY OPERATIONS, INCLUDING DRILLS.
 THESE TEST OPERATIONS ARE BEING REVIEWED BY MEMBERS OF THE DEFENSE
 PROGRAMS OPERATIONAL READINESS REVIEW TEAM, WITH OVERSIGHT FROM THE
 OFFICES OF NUCLEAR SAFETY AND ENVIRONMENT, SAFETY AND HEALTH. ALSO
 OBSERVING THE OPERATIONS ARE DEFENSE NUCLEAR FACILITIES SAFETY BOARD
 REPRESENTATIVES. THIS BUILDING IS REQUIRED TO SUPPORT THE VARIOUS CLEAN-UP
 OPERATIONS AT THE RFP INTO THE FORESEEABLE FUTURE.
 SIMILAR IMPROVEMENTS ARE WELL UNDERWAY IN BUILDING 707, FORMERLY THE
 MAIN FABRICATION FACILITY. UPON COMPLETION OF THESE IMPROVEMENTS, THIS
 FACILITY WILL BE PLACED IN AN APPROPRIATE CONTINGENCY STATUS PENDING
 FINAL RESOLUTION OF THE COMPLEX RECONFIGURATION PLAN AND SCHEDULE. WE
 WILL BEGIN TO TRANSITION THE REMAINING PLUTONIUM FACILITIES TO A CONDITION
 SUITABLE FOR TURNOVER TO ENVIRONMENTAL RESTORATION AND WASTE MANAGEMENT.
 WE ARE ALSO ABOUT TO BEGIN OPERATIONAL IMPROVEMENTS IN,BUILDING 371. THIS
 BUILDING WILL THEN PLAY A CENTRAL ROLE IN THE DEPARTMENT'S PLANS FOR
 COMPLYING WITH THE STATE OF COLORADO'S REGULATIONS ON RESIDUES AND FOR THE
 D&D OF RFP.
 THE MANY IMPROVEMENTS THAT WERE MADE DURING THE MORE THAN TWO YEARS THAT
 PLUTONIUM PRODUCTION OPERATIONS WERE CURTAILED HAVE RESULTED IN
 SIGNIFICANT IMPROVEMENTS IN THE OPERATIONAL AND SAFETY CULTURE AT THE
 PLANT. MOREOVER, THE IMPROVEMENTS ARE AN INVESTMENT IN THE ULTIMATE
 CLEANUP EFFORT AND HAVE SET THE STAGE FOR A MORE EFFICIENT TRANSITION
 OF THE FACILITY TO D&D. IN ADDITION, THE PROCESS HAS BEEN A MODEL FOR
 DOE'S RENEWED COMMITMENT TO CONSTRUCTIVE INVOLVEMENT WITH OUTSIDE
 OVERSIGHT GROUPS, STATE AND LOCAL GOVERNMENTS, AND THE PUBLIC.
                STOCKPILE MAINTENANCE/SURVEILLANCE/DISMANTLEMENT
 WITH THE PRESIDENT'S BOLD INITIATIVES IN SEPTEMBER 1991 AND IN THE STATE
 OF THE UNION ADDRESS, THE UNITED STATES RETAINS A CREDIBLE NUCLEAR
 DETERRENT. HOWEVER, THE SMALLER STOCKPILE PROJECTED FOR THE NATION'S
 FUTURE WILL DEPEND EVEN MORE HEAVILY ON ADEQUATE SURVEILLANCE TO ASSURE
 ITS RELIABILITY BECAUSE THERE WILL BE FEWER WEAPONS AS WELL AS FEWER
 WEAPON TYPES.
 BOTH THE NUCLEAR AND NONNUCLEAR PRODUCTION PLANTS MUST MAINTAIN THEIR
 CAPABILITIES EVEN THOUGH THERE ARE NO CURRENT PLANS TO BUILD NEW
 NUCLEAR WEAPONS. THESE SKILLS ARE UNIQUE AND HAVE TAKEN YEARS TO
 DEVELOP TO THE HIGH LEVEL OF TECHNICAL EXCELLENCE AND SOPHISTICATION
 WHICH EXIST TODAY. THEY MUST BE PRESERVED NOT ONLY FOR NORMAL STOCKPILE
 SURVEILLANCE, EVALUATION, AND MAINTENANCE, BUT ALSO TO EFFECT NUCLEAR
 WEAPON REPAIRS WHICH CAN BE REQUIRED, AND INDEED HAVE BEEN REQUIRED, OVER
 THE YEARS IN OUR STOCKPILE. HAVING SAID THIS, I DO RECOGNIZE THAT WE
 CANNOT PROCEED ON A "BUSINESS-AS-USUAL" BASIS. WE MUST MAKE COST SAVINGS
 TO REFLECT REDUCED PRODUCTION, AND WE ARE DOING JUST THAT. WE ARE CARRYING
 OUT THIS PLANNING IN A CAREFUL AND THOUGHTFUL MANNER, BALANCING OUR
 OBLIGATIONS BOTH TO NATIONAL SECURITY AND TO THE U.S. TAXPAYERS. THIS
 IS REFLECTED BOTH IN THE PRESIDENT'S FY 1993 BUDGET REQUEST FOR DEFENSE
 PROGRAMS ACTIVITIES AS WELL AS IN AN AMENDMENT WHICH WILL SOON BE
 SUBMITTED TO THE CONGRESS.
 THE PRESIDENT'S INITIATIVES HAVE ALSO ACCELERATED THE RETIREMENT,
 DISMANTLEMENT, AND DISPOSAL OF A LARGE NUMBER OF WEAPONS IN THE
 NUCLEAR ARSENAL. THIS WILL PRESENT A CHALLENGE TO THE DEPARTMENT'S
 TRANSPORTATION FLEET, OUR LABORATORIES, AND TO THE DISASSEMBLY AND
 DISPOSAL OPERATIONS CONDUCTED AT THE PANTEX PLANT. THIS IS A CHALLENGE
 THAT THE DEPARTMENT IS UNIQUELY CAPABLE OF MEETING. WE PLAN TO UTILIZE
 THE SAME STORAGE AND HANDLING PROCEDURES AND SAFEGUARDS AND SECURITY
 PROCEDURES THAT HAVE BEEN SUCCESSFULLY USED TO DISASSEMBLE NEARLY
 50,000 WEAPONS OVER THE PAST 40 YEARS.
 IN THE NEAR-TERM, DISASSEMBLY AND DISPOSAL OPERATIONS REQUIRE US TO
 HOLD THE PLUTONIUM PITS FROM DISASSEMBLED WEAPONS AT PANTEX, A STAGING
 ACTIVITY THAT WE HAVE CONDUCTED ROUTINELY AT THE PLANT OVER THE MANY
 YEARS OF ITS OPERATION. THE DEPARTMENT IS PREPARING AN ENVIRONMENTAL
 ASSESSMENT (EA), TO BE ISSUED LATER THIS YEAR, TO COVER THE PLANT'S
 ANTICIPATED INTERIM PLUTONIUM STAGING ACTIVITIES UNTIL THE DECISIONS ON
 LONG-TERM DISPOSITION ARE MADE.
 DECISIONS ON LONG-TERM PLUTONIUM DISPOSITION WILL BE BASED ON THE
 WEAPONS COMPLEX RECONFIGURATION PROGRAMMATIC ENVIRONMENTAL IMPACT
 STATEMENT (PEIS), WHICH INCLUDES A PROCESS OF NEPA REVIEWS AND PUBLIC
 COMMENT PERIODS. THIS PROCESS HAS ALREADY INCLUDED TWO DAYS OF PUBLIC
 HEARINGS IN AMARILLO, INVOLVING TESTIMONY FROM STATE AND LOCAL
 OFFICIALS AND LOCAL CITIZENS. NO DECISION ON LONG-TERM STORAGE WILL BE
 MADE UNTIL THIS PUBLIC PROCESS IS COMPLETED AND I MAKE A RECORD OF
 DECISION FOLLOWING THE ISSUANCE OF THE FINAL PEIS.
                                  RECONFIGURATION
 SOON AFTER BECOMING SECRETARY IN EARLY 1989, 1 DIRECTED THAT THE
 DEPARTMENT'S PLANS FOR MODERNIZING THE WEAPONS COMPLEX BE REEVALUATED
 IN LIGHT OF THE CHANGING WORLD SITUATION. I PROVIDED ADDITIONAL
 GUIDANCE IN AUGUST 1990 THAT RESULTED IN PUBLICATION OF THE WEAPONS
 COMPLEX RECONFIGURATION STUDY IN FEBRUARY 1991. THIS STUDY CALLED FOR A
 RECONFIGURED WEAPONS COMPLEX THAT WOULD BE SMALLER, LESS DIVERSE, AND
 MORE ECONOMICAL BUT WOULD SAFELY AND .RELIABLY SUPPORT THE NUCLEAR
 DETERRENT STOCKPILE OBJECTIVES CONSISTENT WITH THE REALITIES OF THE
 EMERGING INTERNATIONAL ENVIRONMENT. IN FEBRUARY 1991, WORK BEGAN ON A
 PROGRAMMATIC ENVIRONMENTAL IMPACT STATEMENT (PEIS) TO ANALYZE A RANGE
 OF REASONABLE ALTERNATIVE CONFIGURATIONS FOR THE NEW COMPLEX--CALLED
 COMPLEX 21. THE DRAFT PEIS IS NOW SCHEDULED FOR RELEASE IN DECEMBER
 1992, FOLLOWED BY A FINAL PEIS AND RECORD OF DECISION (ROD) IN AUGUST
 1993.
                          NEW PRODUCTION REACTOR
 ON NOVEMBER 1, 1991, I ANNOUNCED THAT THE DEPARTMENT WOULD DEFER A
 DECISION ON THE NPR SITE AND TECHNOLOGY AND INCLUDE THE ENVIRONMENTAL
 ANALYSIS FOR THE NPR IN THE PEIS FOR RECONFIGURATION OF THE NUCLEAR
 WEAPONS COMPLEX. COMBINING THESE EFFORTS WILL PERMIT THE DEPARTMENT TO
 MAINTAIN BOTH REACTOR DESIGN TEAMS AT MINIMUM LEVELS WHILE ALLOWING
 TIME TO ADEQUATELY CONSIDER THE IMPACT OF THE CHANGES IN REQUIREMENTS
 RESULTING FROM THE PRESIDENT'S SEPTEMBER 27, 1991, AND STATE OF THE
 UNION INITIATIVES. THE ADDED TIME WILL ALLOW THE DEPARTMENT TO
 DEMONSTRATE THE TECHNICAL VIABILITY OF K-REACTOR, THE ONLY CURRENT
 PRODUCTION  SOURCE FOR TRITIUM, AND EXAMINE ALTERNATIVES FOR TRITIUM
 PRODUCTION, SUCH AS LINEAR ACCELERATORS, THAT SIMPLY WERE NOT POSSIBLE
 ON THE PREVIOUS SCHEDULE. AS A RESULT Of THIS DEFERMENT, THE FY 1992
 AND FY 1993 FUNDING FOR THE NPR PROGRAM HAS BEEN REDUCED AND A
 SIGNIFICANT PORTION OF THE SAVINGS WILL BE APPLIED TO NEEDED
 ENVIRONMENTAL RESTORATION AND CLEANUP ACTIVITIES.
                         NONNUCLEAR CONSOLIDATION PLAN
 WE ARE NOW PRESENTED WITH A UNIQUE OPPORTUNITY TO BEGIN THE TRANSITION
 THAT WE ALL DESIRE TO A SMALLER, LESS DIVERSE, AND MORE ECONOMICAL
 WEAPONS COMPLEX WITHOUT THE CONCURRENT PRESSURE TO SUSTAIN A LARGE NEW
 WEAPONS PRODUCTION WORKLOAD. WE PLAN TO BEGIN THIS PROCESS WITH THE
 CONSOLIDATION OF OUR NONNUCLEAR WEAPONS PRODUCTION ACTIVITIES.
 THE RECONFIGURATION STUDY, ISSUED IN FEBRUARY 1991, STATED THAT A
 PREFERRED OPTION WAS TO CONSOLIDATE AT A SINGLE SITE ALL NONNUCLEAR
 MANUFACTURING ACTIVITIES THAT CANNOT BE PRACTICALLY AND ECONOMICALLY
 PRIVATIZED.  FROM APRIL TO SEPTEMBER 1991, THE DEPARTMENT CONDUCTED A
 STUDY COMPARING SIX ALTERNATIVE CONSOLIDATION SITE CANDIDATES: THE
 KANSAS CITY PLANT (MISSOURI), THE MOUND PLANT (OHIO), THE PINELLAS
 PLANT (FLORIDA), THE ROCKY FLATS PLANT (COLORADO), THE OAK RIDGE Y-12
 PLANT (TENNESSEE), AND THE PANTEX PLANT (TEXAS). THE CANDIDATE SITES
 WERE EVALUATED AGAINST THE FOLLOWING FOUR CRITERIA FOR CONSOLIDATION:
 (1) ENVIRONMENTAL, SAFETY, AND HEALTH (ES&H) RISKS; (2) TECHNICAL RISKS
 TO THE WEAPONS PROGRAM; (3) CONSOLIDATION COSTS; AND (4) THE AMOUNT Of
 TIME NEEDED TO ACCOMPLISH CONSOLIDATION.
 ON THE BASIS OF THIS ANALYSIS, THE STUDY RECOMMENDED THAT KANSAS CITY
 BE DESIGNATED AS THE PREFERRED CONSOLIDATION SITE FOR MOST OF THE
 NONNUCLEAR MANUFACTURING ACTIVITIES ASSOCIATED WITH THE WEAPONS
 COMPLEX.
 INITIALLY, IT WAS INTENDED THAT ALTERNATIVES FOR CONSOLIDATION OF
 NONNUCLEAR MANUFACTURING ACTIVITIES WOULD BE ADDRESSED IN THE
 RECONFIGURATION PEIS. HOWEVER, THE PRESIDENT'S SEPTEMBER 27, 1991,
 INITIATIVE CANCELED SEVERAL NUCLEAR WEAPON PROGRAMS AND SIGNIFICANTLY
 REDUCED FUTURE PRODUCTION REQUIREMENTS. ALTHOUGH AN ENVIRONMENTAL
 ANALYSIS IS STILL REQUIRED PRIOR TO OUR FINAL DECISION, THE PRESIDENT'S
 ANNOUNCEMENT PROVIDED A WINDOW OF OPPORTUNITY TO ACCELERATE THE
 CONSOLIDATION OF THESE ACTIVITIES DURING A PERIOD OF VERY LOW
 PRODUCTION WITHOUT IMPACTING NATIONAL SECURITY, IN ORDER TO MORE
 QUICKLY ACHIEVE A SMALLER, MORE COST-EFFECTIVE NUCLEAR WEAPONS
 PRODUCTION  COMPLEX. ACCORDINGLY, I ANNOUNCED ON DECEMBER 16, 1991,
 THAT THE ENVIRONMENTAL IMPACTS ASSOCIATED WITH SUCH CONSOLIDATION WOULD
 BE ANALYZED IN A SEPARATE ENVIRONMENTAL ASSESSMENT (EA). SUCH AN
 ASSESSMENT IS CONDUCTED TO DETERMINE WHETHER THERE ARE ANY SIGNIFICANT
 ENVIRONMENTAL IMPACTS ASSOCIATED WITH A PROPOSED ACTION. IF THERE ARE NO
 SIGNIFICANT ENVIRONMENTAL IMPACTS IDENTIFIED IN THE EA, A FINDING OF NO
 SIGNIFICANT IMPACT IS ISSUED AND THE PROPOSED ACTION MAY PROCEED. THUS,
 THE PROPOSAL TO CONSOLIDATE MOST OF THE NONNUCLEAR MANUFACTURING
 ACTIVITIES AT THE KANSAS CITY SITE (THE PREFERRED ALTERNATIVE) AND
 TRANSFER SELECTED ADDITIONAL ACTIVITIES TO OTHER SITES, AS WELL AS AN
 ANALYSIS OF SEVERAL OTHER ALTERNATIVE LOCATIONS FOR CONSOLIDATION, WILL BE
 ADDRESSED IN AN EA SCHEDULED FOR COMPLETION BY THE END OF THE YEAR. I
 PLAN TO ANNOUNCE THE LOCATION FOR IMPLEMENTATION OF THE NONNUCLEAR
 CONSOLIDATION AT THAT TIME.
 FOLLOWING THE PRESIDENT'S SEPTEMBER 27, 1991, ANNOUNCEMENT AND THE
 STATE OF THE UNION ADDRESS, QUESTIONS WERE RAISED WITHIN THE DEPARTMENT
 AS TO WHETHER THE SIGNIFICANT REDUCTIONS IN THE NUCLEAR WEAPONS
 STOCKPILE RESULTING FROM THESE ANNOUNCEMENTS MIGHT AFFECT THE
 CONCLUSIONS IN THE NONNUCLEAR CONSOLIDATION PLAN, WHICH HAD BEEN
 COMPLETED SHORTLY BEFORE THE ANNOUNCEMENT. I ASKED THE AUTHORS OF THE
 STUDY TO REEXAMINE THE CONCLUSIONS IN THE STUDY IN LIGHT OF THESE
 SIGNIFICANT DEVELOPMENTS. ON MARCH 23, 1992, THE DEPARTMENT RELEASED
 THE NONNUCLEAR CONSOLIDATION PLAN, WITH AN ADDENDUM THAT UPDATED THE
 DOCUMENT TO TAKE THESE PRESIDENTIAL INITIATIVES INTO ACCOUNT. IT WAS
 DETERMINED THAT THE CONCLUSIONS REACHED IN THE ORIGINAL STUDY WERE NOT
 AFFECTED BY THE PRESIDENTIAL INITIATIVES. THE PROPOSED CONSOLIDATION
 PLAN  WILL BE FULLY OPEN TO PUBLIC COMMENT. BOTH STATE OFFICIALS AND
 THE PUBLIC WILL HAVE THE OPPORTUNITY TO REVIEW THE PLAN AND THE
 ENVIRONMENTAL ASSESSMENT AND SUBMIT COMMENTS BEFORE ANY FINAL DECISIONS
 ARE MADE. TO ENSURE THE DEPARTMENT'S DECISION CONSIDERS ALL OPTIONS, WE
 HAVE A STUDY UNDERWAY TO CONSIDER CONSOLIDATING ACTIVITIES AT TWO PLANTS.
 THE RESULTS WILL BE AVAILABLE PRIOR TO OUR FINAL DECISION THIS FALL.
                               WORKER RETRAINING
 AS THE DEFENSE COMPLEX IS DOWNSIZED, THE DEPARTMENT IS DEVELOPING A
 COMPREHENSIVE RETRAINING AND RELOCATION PROGRAM TO HELP RETRAIN WORKERS
 AS APPROPRIATE FOR NEW MISSIONS, SUCH AS ENVIRONMENTAL CLEANUP. WE ALSO
 WILL HELP RELOCATE WORKERS TO OTHER DOE AND CONTRACTOR ACTIVITIES IF
 AVAILABLE AND WILL WORK WITH STATE AND LOCAL OFFICIALS TO INCORPORATE
 WORKERS INTO LOCAL ECONOMIES WHENEVER POSSIBLE.
 AS THE WEAPONS PRODUCTION MISSION DIMINISHES AT SITES SUCH AS ROCKY
 FLATS, THE ENVIRONMENTAL RESTORATION AND WASTE MANAGEMENT MISSION AT
 THESE SITES IS EXPECTED TO STEADILY INCREASE TO REFLECT THE TRANSITION
 OF FACILITIES FROM AN OPERATING CONFIGURATION TO ONE WHERE THE FACILITY
 IS READY FOR DECONTAMINATION AND DECOMMISSIONING. OVER THE NEXT 6
 MONTHS, EACH AFFECTED SITE WILL BE CONDUCTING A TASK ANALYSIS WHICH
 INCLUDES IDENTIFICATION OF THE SKILL BASE NECESSARY FOR AN ORDERLY
 TRANSITION TO AN ENVIRONMENTAL RESTORATION AND WASTE MANAGEMENT
 MISSION.
 THE DEPARTMENT'S INTENTION IS, TO THE GREATEST EXTENT PRACTICAL, TO
 RETRAIN AND UTILIZE THE WORKFORCE TO CARRY OUT THIS NEW MISSION. FOR
 EXAMPLE, AT THE FERNALD PLANT IN OHIO, ALL BARGAINING UNIT EMPLOYEES
 WILL BE OFFERED EMPLOYMENT WITH THE NEW CONTRACTOR BEING ACQUIRED TO
 MANAGE THE CLEANUP AT COMPARABLE SALARY AND EMPLOYEE BENEFIT LEVELS.
 THE NEW CONTRACTOR WILL ALSO BE DIRECTED TO HIRE AS MANY SALARIED
 PERSONNEL AS IT CAN EFFECTIVELY EMPLOY. ADMINISTRATIVE AND SUPPORT
 PERSONNEL NOT PRESENTLY TRAINED TO PERFORM CLEANUP WORK AND WHO WILL NOT
 BE RETAINED BY THE NEW CONTRACTOR MUST BE AFFORDED THE OPPORTUNITY FOR
 RETRAINING. THIS WILL MAKE THESE WORKERS MORE KNOWLEDGEABLE IN REMEDIATION
 TECHNIQUES AND ENVIRONMENTAL REQUIREMENTS SO THAT THEY CAN NOT ONLY BE
 RECONSIDERED AS VACANCIES OCCUR BUT ALSO BECOME QUALIFIED FOR EMPLOYMENT
 WITH OTHER SPECIALIZED REMEDIATION COMPANIES WORKING ON GOVERNMENT OR
 COMMERCIAL SITES.
 HOWEVER, IN SOME INSTANCES, A PORTION OF THE WORKFORCE MAY NOT BE
 NEEDED. IN THOSE CASES, THE DEPARTMENT WILL WORK WITH STATE AND LOCAL
 ORGANIZATIONS TO IDENTIFY JOB SKILLS THAT MAY BE NEEDED WITHIN THE
 SURROUNDING AREA, INCLUDING OTHER DOE FACILITIES. IN PARALLEL WITH THIS
 EFFORT, THE DEPARTMENT INTENDS TO DEVELOP A DOE CONTRACTOR-WIDE VACANCY
 SYSTEM TO MATCH JOB SKILLS WITH JOB OPPORTUNITIES WITHIN THE ENTIRE DOE
 COMPLEX. FURTHERMORE, WE WILL WORK WITH OUR CONTRACTOR MANAGEMENT TO
 PROVIDE INCENTIVES FOR EARLY RETIREMENT AND FOR VOLUNTARY SEPARATIONS.
 WE WILL ALSO PROVIDE- OUTPLACEMENT ASSISTANCE, SUCH AS RESUME
 PREPARATION, COUNSELING, ASSISTANCE FOR JOB SEARCH, AND TUITION PAYMENT
 FOR RETRAINING. WE WILL COORDINATE WITH THE DEPARTMENT OF LABOR TO
 DRAW UPON FUNDING SET ASIDE FOR THESE PURPOSES. WE WILL ALSO COORDINATE
 WITH THE ECONOMIC DEVELOPMENT ADMINISTRATION TO HELP STATE AND LOCAL
 GOVERNMENTS OBTAIN ECONOMIC ADJUSTMENT PROGRAM GRANTS (WITH 25-PERCENT
 MATCH) FOR COMMUNITY IMPACT ASSISTANCE, DRAWING UPON FUNDING EARMARKED
 FOR DEFENSE-RELATED FACILITIES. THESE FUNDS MAY BE USED FOR A WIDE
 RANGE OF DEVELOPMENT ACTIVITIES INCLUDING MODIFICATION AND ALTERNATIVE
 USES OF FACILITIES, EXPANSION OF COMMUNITY BUSINESSES, AND CREATION OF
 OTHER NEW JOBS.
                CHANGING ROLES OF THE WEAPONS LABORATORIES
 THE WEAPONS LABORATORIES' DEFENSE RESEARCH AND DEVELOPMENT (R&D)
 ACTIVITIES HISTORICALLY HAVE PROVIDED THE PRIMARY SCIENTIFIC AND
 TECHNOLOGICAL UNDERPINNING FOR THE U.S. POLICY OF NUCLEAR DETERRENCE.
 THE LABORATORIES WERE ORIGINALLY CREATED TO DESIGN, DEVELOP, AND TEST
 NUCLEAR WEAPONS IN SUPPORT OF THE U.S. DEFENSE STRATEGY. AS THE NUCLEAR
 WEAPONS COMPLEX MATURED, THE ROLES OF THESE LABORATORIES BROADENED INTO
 ALL FACETS OF WEAPONS DESIGN, DEVELOPMENT, PRODUCTION SUPPORT,
 STOCKPILE MAINTENANCE, AND STOCKPILE IMPROVEMENT.
 NOW, THEIR MISSIONS ARE SHIFTING RAPIDLY. YET EVEN WITH THIS CHANGING
 SITUATION, AN IMPORTANT MISSION MUST BE TO MAINTAIN NUCLEAR COMPETENCE.
 WE NEED A VIABLE WEAPONS RESEARCH, DEVELOPMENT, AND TESTING PROGRAM TO
 ENSURE THE ABILITY TO DEAL EFFECTIVELY WITH MAJOR REDUCTIONS IN NUCLEAR
 WEAPONS, SUPPORT THE ENDURING STOCKPILE, AND ENSURE AGAINST
 TECHNOLOGICAL SURPRISE BY A POTENTIAL ADVERSARY. NUCLEAR COMPETENCE
 ALLOWS US TO PROVIDE FOR THE STOCKPILE, AND IT IS ALSO THE FOUNDATION
 FOR TECHNOLOGICAL LEADERSHIP FOR RECONFIGURATION ACTIVITIES.
 COMPETENCE WILL ENSURE US THE ABILITY TO DESIGN AND TEST NEW WEAPONS
 SYSTEMS IF THEY ARE NEEDED, PROVIDE THE RIGOROUS TECHNOLOGICAL BASE
 NEEDED FOR ENHANCED NONPROLIFERATION AND ARMS CONTROL ACTIVITIES, AND
 PROVIDE THE WELLSPRING FROM WHICH NEW TECHNOLOGICAL INITIATIVES FOR
 COMMERCIALIZATION MAY ARISE.
 WE HAVE ALREADY SHIFTED SUBSTANTIAL RESOURCES ABOUT $120 MILLION FOR FY
 1993 -- FROM WEAPONS DEVELOPMENT TO OTHER R&D ACTIVITIES. THE FUNDS WILL
 BE USED To ENHANCE THE LABORATORIES' R&D ACTIVITIES TO EMPHASIZE INTRINSIC
 SAFETY AND SECURITY OF NUCLEAR WARHEADS, BUILD-DOWN AND SURVIVABILITY OF
 THE NUCLEAR ARSENAL, ACCELERATED WARHEAD RETIREMENTS AND DISMANTLEMENTS)
 AND SUPPORT TO THE ENDURING STOCKPILE.
 IN ADDITION TO THE CORE MISSIONS, THE LABORATORIES WILL ASSIST IN
 DEVELOPING COST-EFFECTIVE PRODUCTION AND PROCESS DESIGNS FOR COMPLEX 21
 AND PROVIDE TECHNOLOGICAL LEADERSHIP OF RECONFIGURATION ACTIVITIES.
 THEY WILL PROVIDE LABORATORY SUPPORT FOR ENVIRONMENTAL RESTORATION AND
 WASTE MANAGEMENT PROGRAMS, WITH SPECIAL ATTENTION TO WASTE
 MINIMIZATION. IN CONJUNCTION WITH DOE'S OFFICE OF ARMS CONTROL AND
 NONPROLIFERATION, THE LABORATORIES WILL ALSO CARRY OUT ENHANCED
 NONPROLIFERATION AND ARMS CONTROL INITIATIVES INTEGRATING DOE FUNCTIONS
 IN POLICY, INTELLIGENCE, AND NUCLEAR TECHNOLOGIES. WE WILL CONTINUE TO
 CONSOLIDATE SOME FUNCTIONS AMONG LABORATORIES TO SUPPORT A SINGLE
 INTEGRATED NUCLEAR WEAPONS PROGRAM ACHIEVING MAXIMUM COST EFFECTIVENESS
 WHILE PRESERVING COMPETITION WHERE NECESSARY.
                                NUCLEAR TESTING
 RECENTLY A NUCLEAR TESTING MORATORIUM BILL (H.R. 3636) WAS INTRODUCED
 IN CONGRESS. IT HAS BEEN ASSERTED THAT THE MASSIVE CUTBACK IN STRATEGIC
 AND TACTICAL NUCLEAR FORCES, AS OUTLINED IN THE PRESIDENT'S SEPTEMBER
 27, 1991, SPEECH AND STATE OF THE UNION MESSAGE, CALLS INTO QUESTION
 THE NEED FOR FURTHER NUCLEAR TESTING. IT HAS ALSO BEEN ASSERTED THAT A
 NUCLEAR TESTING MORATORIUM WOULD CAUSE THIRD WORLD NATIONS WITH INTENTIONS
 TO DEVELOP NUCLEAR WEAPONS TO FOREGO THEIR EFFORTS. THE PRESIDENT'S
 INITIATIVES WILL GREATLY REDUCE THE OVERALL SIZE OF THE U.S. STOCKPILE,
 BUT WILL NOT OBVIATE THE NEED TO CONDUCT A MODEST NUMBER OF NUCLEAR
 TESTS. THE UNITED STATES HAS ALREADY SIGNIFICANTLY REDUCED ITS LEVEL OF
 NUCLEAR TESTING TO THE LOWEST POINT SINCE THE EARLY 1950s, WITH THE
 EXCEPTION OF THE 1958-61 TEST MORATORIUM.
 THE CREDIBILITY OF OUR DETERRENT IS DEPENDENT UPON UNDERGROUND NUCLEAR
 TESTING TO UNDERWRITE THE SAFETY, RELIABILITY, AND EFFECTIVENESS OF OUR
 NUCLEAR WEAPONS STOCKPILE AND DEMONSTRATE THE SURVIVABILITY OF OUR
 WEAPONS SYSTEMS. THERE HAVE BEEN OCCURRENCES IN MODERN U.S. NUCLEAR
 WEAPONS DESIGNS THAT HAVE REQUIRED NUCLEAR TESTS OF STOCKPILE WARHEADS
 TO RESOLVE PROBLEMS. FURTHERMORE, NUCLEAR TESTS HAVE UNCOVERED A NUMBER
 OF WEAPON SYSTEM VULNERABILITIES AND DEFICIENCIES WHICH COULD NOT BE
 PREDICTED ANALYTICALLY. A DRAMATIC EXAMPLE OF THIS INVOLVED A LOW
 TEMPERATURE EXTREME TEST OF THE WARHEAD FOR THE AIR-LAUNCHED CRUISE
 MISSILE. THE TEST RESULTS WERE A COMPLETE SURPRISE IN THAT THE WARHEAD
 EXPLODED WITH ONLY A FRACTION OF ITS DESIGN YIELD. THE WEAPON HAD BEEN
 TESTED EXTENSIVELY IN NONNUCLEAR HYDRODYNAMIC TESTS, EVEN AT THE LOW
 TEMPERATURE EXTREME, WITH NO INDICATION OF TROUBLE. A DESIGN CHANGE WAS
 MADE TO THE WARHEAD AND IT WAS TESTED SUCCESSFULLY A YEAR LATER.
 TESTING IS ALSO ESSENTIAL TO ENSURE THE SAFETY OF THE ENDURING
 STOCKPILE. THE DRELL PANEL ON NUCLEAR WEAPONS SAFETY RECOMMENDED THAT
 THE UNITED STATES STRIKE A NEW BALANCE BETWEEN "THE DESIRED MILITARY
 CHARACTERISTICS OF NUCLEAR WEAPONS AND REQUIREMENTS FOR ENHANCED
 SAFETY." TO DO SO, THE UNITED STATES SHOULD GIVE GREATER EMPHASIS TO
 DESIGNS THAT WOULD MAKE NUCLEAR WEAPONS "AS SAFE AS PRACTICALLY
 ACHIEVABLE." THERE ARE NO CURRENT PLANS TO "BUILD" NEW DESIGNS. HOWEVER,
 WE ARE PLANNING TO DEVELOP "PIT RE-USER TECHNOLOGY AND "SUP-ER-SAFE"
 WEAPONS DESIGNS AS THE MEANS TO ENSURE THE VIABILITY OF THE "ENDURING
 STOCKPILE." OUR EFFORTS WILL ENSURE THAT THIS ENDURING CAPABILITY IS
 MAINTAINED WITH MINIMAL CONSEQUENCES TO THE ENVIRONMENT AND WITH EVEN
 GREATER ASSURANCE OF SAFETY FOR THE U.S. PUBLIC. WE KNOW HOW TO DEVELOP
 SUCH "SUPER-SAFE" DESIGNS, BUT TO DO SO WILL REQUIRE NUCLEAR TESTING.
 AS ADDITIONAL EXAMPLES, THE DEVELOPMENT OF INSENSITIVE HIGH EXPLOSIVES
 (IHE) FOR USE IN OUR NUCLEAR WEAPONS REQUIRED A SUBSTANTIAL NUMBER OF
 TESTS THROUGHOUT THE 1970s. LIKEWISE, DEVELOPMENT OF FIRE RESISTANT
 PITS (FRP), A WARHEAD CAPABLE OF WITHSTANDING THE HEAT OF A FIRE
 WITHOUT DISPERSING PLUTONIUM, HAS BEEN GOING ON FOR THE PAST SEVERAL
 YEARS. SEVERAL NUCLEAR TESTS HAVE BEEN REQUIRED TO GET US TO THE POINT
 WHERE SPECIALLY DESIGNED NUCLEAR WEAPONS NOW ARE FIRE RESISTANT AGAINST
 CERTAIN TYPES OF ACCIDENT SCENARIOS. MORE TESTS ARE REQUIRED TO EXAMINE
 FURTHER APPLICATIONS OF FIRE RESISTANT PITS TO OTHER TYPES OF NUCLEAR
 WEAPONS.
 NUCLEAR WEAPONS ARE AMONG THE MOST COMPLEX ENGINEERING AND PHYSICS
 CHALLENGES AND AMONG THE MOST SERIOUS RESPONSIBILITIES MANKIND HAS
 CREATED. WHILE ADVANCES IN THREE-DIMENSIONAL COMPUTER MODELING HAVE
 MARKEDLY INCREASED OUR ABILITY TO UNDERSTAND AND PREDICT NUCLEAR
 WEAPONS AND SYSTEMS PERFORMANCE, UNDERGROUND NUCLEAR TESTING EXPERIENCE
 HAS SHOWN THAT COMPUTER MODELING, BY ITSELF, IS NOT SUFFICIENT TO
 PROVIDE FULL ASSURANCE OF WEAPONS RELIABILITY AND SAFETY. UNDERGROUND
 NUCLEAR TESTING IS ESSENTIAL TO PROVIDE THE REQUISITE ASSURANCE THAT THESE
 WEAPONS CAN FULFILL THEIR PURPOSE OF DETERRENCE SAFELY AND RELIABLY.
 THE UNITED STATES MUST CONTINUE TO TEST. WE TEST ONLY AS MUCH AS
 REQUIRED FOR OUR SECURITY. A HALT TO NUCLEAR TESTING WOULD NOT
 ELIMINATE NUCLEAR WEAPONS NOR WOULD IT INCREASE INTERNATIONAL SECURITY.
 SADDAM HUSSEIN WOULD HAVE PROCEEDED WITH HIS NUCLEAR WEAPONS
 DEVELOPMENT IRRESPECTIVE OF ANY U.S. DECISION TO STOP TESTING. A HALT
 IN TESTING WOULD ERODE U.S. CONFIDENCE IN OUR REMAINING NUCLEAR
 DETERRENT AND WOULD SEVERELY RESTRICT OUR ABILITY TO MAKE IMPROVEMENTS
 IN NUCLEAR WEAPON SAFETY.
                                TECHNOLOGY TRANSFER
 PRESIDENT BUSH HAS RECOGNIZED THE ECONOMIC SIGNIFICANCE OF TECHNOLOGY
 DEVELOPMENT IN THE UNITED STATES. IN ENDORSING THE "NATIONAL TECHNOLOGY
 THE PRESIDENT SAID THAT PROGRESS AND PROSPERITY ARE ACHIEVED BY
 INITIATIVE, "INVESTING IN THE TECHNOLOGIES OF TOMORROW ... WE NEED TO
 SHARE THE RESULTS, GET THE GREAT IDEAS GENERATED BY PUBLIC FUNDS OUT INTO
 THE PRIVATE SECTOR, OFF THE DRAWING BOARD AND ONTO STORE SHELVES.
 DOE'S WEAPONS LABORATORIES HAVE BEEN WORKING AT THE CUTTING EDGE OF
 ADVANCED TECHNOLOGIES NECESSARY TO MAINTAIN AMERICA'S NUCLEAR
 DETERRENT. THE SCIENCE AND ENGINEERING PRACTICED AT THE LABORATORIES
 AND PRODUCTION FACILITIES IS CONDUCTED BY SOME OF THE BEST SCIENTISTS
 AND ENGINEERS IN THE WORLD. THE MULTIDISCIPLINARY WEAPONS LABORATORIES
 AT LOS ALAMOS, LAWRENCE LIVERMORE, AND SANDIA ARE SYNONYMOUS WITH
 "LEADING EDGE" TECHNOLOGIES, WHICH HAVE BEEN RECOGNIZED BY THEIR PEERS VIA
 32 "R&D 100" AWARDS IN THE PAST THREE YEARS. THESE ACTIVITIES HAVE
 PRODUCED A RESERVOIR OF ENABLING TECHNOLOGIES WITHIN THE WEAPONS COMPLEX
 THAT ARE OF SIGNIFICANT VALUE TO THE PRIVATE SECTOR.
 I HAVE REQUESTED CONGRESSIONAL APPROVAL TO TRANSFER $50 MILLION FROM FY
 1992 SAVINGS IN THE DEFENSE PROGRAMS BUDGET TO DOUBLE SPENDING ON
 TECHNOLOGY COMMERCIALIZATION ACTIVITIES FOR PROMISING DUAL USE
 TECHNOLOGIES AT THE NATIONAL LABORATORIES AND TO FURTHER ENHANCE
 TECHNOLOGY PARTNERSHIPS WITH U.S. INDUSTRY. IN ADDITION, IN THE FY 1993
 BUDGET AMENDMENT WHICH YOU SHOULD BE RECEIVING SHORTLY WE HOPE TO
 INCREASE SIGNIFICANTLY THE $91 MILLION ALREADY REQUESTED FOR TECHNOLOGY
 COMMERCIALIZATION IN THE FY 1993 AEDA BUDGET.
 WITHIN DEFENSE PROGRAMS, 27 "DUAL-USE" TECHNOLOGY PARTNERSHIPS ARE
 ALREADY IN PLACE WITH OVER 30 COMPANIES AND 2 UNIVERSITIES.  MOST OF
 THESE PARTNERSHIPS WERE ENTERED INTO UNDER THE ADVANCED MANUFACTURING
 INITIATIVE (AMI). THE AMI FOCUSES ON COOPERATIVE RESOURCE-SHARED
 RESEARCH AND DEVELOPMENT BETWEEN DP LABORATORIES AND PRIVATE INDUSTRY
 IN ADVANCING MANUFACTURING TECHNOLOGIES. THE AMI HAS RESULTED IN AN
 INCREASING NUMBER OF PARTNERSHIPS WITH MUTUAL BENEFIT TO THE PUBLIC AND
 PRIVATE SECTORS.
 EXAMPLES OF THE DEPARTMENT'S RESEARCH AND DEVELOPMENT PARTNERSHIPS WITH
 THE PRIVATE SECTOR INCLUDE:
      o    ON APRIL 23, 1992, THE DEPARTMENT SIGNED WITH THE NATIONAL
           CENTER FOR MANUFACTURING SCIENCES (NCMS), WHICH REPRESENTS OVER
           120 SMALL, MEDIUM, AND LARGE AMERICAN COMPANIES, AN "UMBRELLA"
           COOPERATIVE RESEARCH AND DEVELOPMENT AGREEMENT (CRADA) TO ALLOW
           NCMS MEMBER COMPANIES TO ACCESS THE UNCLASSIFIED TECHNOLOGIES
           AND CAPABILITIES OF THE DOE DEFENSE COMPLEX UNDER FASTER, MORE
           STREAMLINED PROCEDURES AIMED AT JOINT PROGRAMS WITH MUTUAL
           BENEFIT TO DOE AND THE INDIVIDUAL COMPANIES.
      o    ADVANCED COMPUTER TECHNOLOGIES WILL BE GENERATED BY WORK
           CONDUCTED UNDER THE MODEL CRADA TAILORED TO THE COMPUTER
           INDUSTRY BY DOE AND THE COMPUTER SYSTEMS POLICY PROJECT (CSPP),
           AN AFFILIATION OF CHIEF EXECUTIVE OFFICERS OF TWELVE OF THE
           LARGEST AMERICAN COMPUTER COMPANIES. THE LETTER OF AGREEMENT
           WHICH CONTAINED THE MODEL CRADA WAS SIGNED ON MARCH 20.
           SUBSEQUENTLY 3 CRADAS WERE SIGNED ON MARCH 27 TO LAUNCH JOINT
           COMPUTER RESEARCH VENTURE BY LOS ALAMOS NATIONAL LABORATORY AND
           CRAY RESEARCH. THE GOALS OF THE THREE CRADAS ARE:
           -    TO DEVELOP A MORE ACCURATE OCEANIC-ATMOSPHERIC MODEL FOR
                STUDYING GLOBAL CLIMATE CHANGE.
           -    TO REDUCE THE COST OF DESIGNING AND DEVELOPING ADVANCED
                COMPUTER CHIPS BY DEVELOPING ADVANCED SOFTWARE TO SIMULATE
                ELECTROMAGNETIC WAVE EFFECTS IN ULTRAHIGH SPEED ELECTRONIC
                DEVICES.
           -    TO IMPROVE COMPUTATIONAL CHEMISTRY CAPABILITIES REQUIRED TO
                MEET INDUSTRIAL NEEDS TO MODEL LARGE PROTEIN MOLECULES
                CONTAINING MORE THAN 1,000 ATOMS. TODAY'S MODELING SYSTEMS
                LIMIT STUDIES OF MOLECULAR DYNAMICS TO MOLECULES OF A FEW
                HUNDRED ATOMS.
      -    COOPERATIVE R&D WITH MICROELECTRONICS AND MANUFACTURING IS THE
           DOE MICROELECTRONICS QUALITY/RELIABILITY CENTER (MQRC) AT SANDIA
           NATIONAL LABORATORY. THE MQRC FOCUSES ON ENSURING THE HIGHEST
           RELIABILITY IN DOMESTICALLY PRODUCED INTEGRATED CIRCUITS (ICS).
           THE CAPABILITIES OF THE MQRC COMPLEMENT THOSE OF INDUSTRY, AND
           ARE USED TO DEVELOP TECHNICAL RESOURCES. THAT DO NOT EXIST IN
           THE PRODUCT CYCLE, FROM R&D TO MANUFACTURING TO SATISFYING THE
           END-USER. THE MQRC, WHICH HAD FOUR CRADAS APPROVED IN 1991,
           RECEIVED A SPECIAL "AWARD FOR EXCELLENCE IN TECHNOLOGY TRANSFER"
           FROM THE FEDERAL LABORATORY CONSORTIUM FOR WORK PERFORMED IN
           1991. THE DEPARTMENT IS PROVIDING SUPPORT FOR A 3-YEAR PROGRAM
           TO DEVELOP A BROAD-BASED "WIN-WIN" PARTNERSHIP BETWEEN INDUSTRY
           AND DOE.
 MAKING EFFECTIVE USE OF CRADAS HAS BEEN A CHALLENGE FOR DOE, THE
 LABORATORIES, AND OUR INDUSTRIAL PARTNERS BECAUSE IT INVOLVES
 DOING BUSINESS UNDER TERMS AND CONDITIONS THAT, IN MANY INSTANCES, ARE
 UNFAMILIAR TO INDUSTRY. THUS, A MAJOR FOCUS FOR DOE THIS YEAR IS TO
 SHORTEN THE CRADA APPROVAL PROCESS. GREATER FAMILIARITY WITH CRADA
 APPROVAL PROCEDURES AND REQUIREMENTS, AS WELL AS NEW STREAMLINED
 APPROACHES, SUCH AS THE NCMS UMBRELLA CRADA, WILL HELP US SPEED UP THE
 PROCESS.
 I WOULD LIKE TO POINT OUT THAT INDUSTRY MUST DEFINE THE CRITICAL
 TECHNOLOGY, AREAS THAT ARE VITAL TO U.S. COMPETITIVENESS. DOE DOES NOT
 PRESUME TO DEFINE COMMERCIAL REQUIREMENTS. INSTEAD, A PROCESS HAS BEEN
 DEVELOPED THAT RELIES ON INDUSTRY TO DEFINE ITS COMMERCIAL AGENDA WHILE
 DOE CONCENTRATES ON TECHNICAL MISSION REQUIREMENTS. A COMMON THEME ACROSS
 ALL OF DOE'S COLLABORATIVE R&D IS "INDUSTRY PULL." THE STRATEGIC DIRECTION
 OF TECHNOLOGY COMMERCIALIZATION PROGRAMS IS DICTATED BY DEPARTMENTAL NEEDS
 AND PRIVATE SECTOR REQUIREMENTS FOR INCREASED COMPETITIVENESS.
                         WASTE ISOLATION PILOT PROJECT
 LAST OCTOBER, I DECLARED THE WASTE ISOLATION PILOT PLANT (WIPP) READY
 TO INITIATE A TEST PROGRAM WITH TRU WASTE. I MADE THIS DECISION
 FOLLOWING AN INTENSE 2-YEAR EFFORT TO COMPLETE EVERY TECHNICAL, SAFETY,
 AND REGULATORY PREREQUISITE. THE USE OF A LIMITED AMOUNT OF TRU WASTE
 FOR EXPERIMENTAL PURPOSES DURING THE TEST PROGRAM WILL ENABLE THE
 DEPARTMENT TO GATHER THE DATA IT NEEDS TO DEMONSTRATE WHETHER WIPP IS
 SUITABLE AS A PERMANENT DISPOSAL FACILITY-FOR TRU WASTES.
 BECAUSE OF A LAWSUIT FILED IMMEDIATELY AFTER MY ANNOUNCEMENT BY THE NEW
 MEXICO ATTORNEY GENERAL, WHICH WAS LATER JOINED BY SEVERAL
 ENVIRONMENTAL GROUPS, THE STATE OF TEXAS, AND THREE U.S. CONGRESSMEN, I
 VOLUNTARILY DELAYED SHIPMENTS OF TEST WASTE TO WIPP. IN JANUARY OF THIS
 YEAR, THE U.S. DISTRICT COURT FOR THE DISTRICT OF COLUMBIA RULED
 AGAINST DOE BY ISSUING A PERMANENT INJUNCTION THAT PERMANENTLY BARS
 WASTE SHIPMENTS TO WIPP. WE HAVE APPEALED THIS RULING AND, IN FACT,
 HAVE ORAL ARGUMENTS SCHEDULED IN THE U.S. COURT OF APPEALS FOR THE
 DISTRICT OF COLUMBIA CIRCUIT ON MAY 15.
 THIS COURT-ORDERED INJUNCTION, COUPLED WITH THE ABSENCE OF AN
 ACCEPTABLE LAND WITHDRAWAL BILL FROM THE HOUSE, HAVE PLACED THE WIPP
 PROJECT IN SERIOUS JEOPARDY. WITHOUT JUDICIAL OR LEGISLATIVE RELIEF TO
 ALLOW THE TEST PROGRAM TO PROCEED, I WILL BE FORCED IN THE VERY NEAR
 FUTURE TO PLACE WIPP INTO A STAND BY MODE, WHICH WILL LIKELY ADD AT LEAST
 2 MORE YEARS TO THE TIME NEEDED TO COMMENCE TESTING. ALL MOMENTUM WILL BE
 LOST AND MANY TALENTED SCIENTISTS AND ENGINEERS MAY ALSO BE LOST. AT BEST,
 IT WILL BE VERY DIFFICULT TO BEGIN REMOVING TRU WASTE FROM CURRENT
 ABOVE-GROUND STORAGE SITES. AT WORST, THE TRU WASTE CURRENTLY STORED AT
 MULTIPLE DOE SITES WOULD REMAIN THERE INDEFINITELY. HUNDREDS OF
 MILLIONS OF DOLLARS HAVE ALREADY BEEN SPENT ON WIPP, AND FURTHER DELAY
 MAY ADD ANYWHERE FROM $150 MILLION TO $1 BILLION TO THIS TOTAL.
 I URGE YOUR HELP IF WE ARE TO RESOLVE THE IMPEDIMENTS THAT ARE
 PREVENTING ME FROM PROCEEDING WITH THE WIPP PROJECT. I WOULD LIKE TO
 THANK THE SENATE FOR ITS PASSAGE OF S.1671, WIPP LAND WITHDRAWAL
 LEGISLATION, IN THE LAST SESSION.
                      ENVIRONMENTAL COMPLIANCE AND CLEANUP
 TURNING TO OUR ENVIRONMENTAL COMPLIANCE AND CLEANUP EFFORT, THE
 DEPARTMENT HAS MADE GREAT STRIDES IN PLANNING, RELEASING OUR THIRD
 ENVIRONMENTAL RESTORATION AND WASTE MANAGEMENT (EM) FIVE-YEAR PLAN AND
 WORKING ON OUR FOURTH PLAN. WE ARE ALSO PROVIDING EVER-INCREASING
 OPPORTUNITIES FOR STAKEHOLDER AND PUBLIC INVOLVEMENT IN PROGRAM
 PLANNING AND ACTIVITIES, BUT REALIZE WE HAVE TO WORK HARDER TO FULLY
 ACHIEVE OUR GOAL OF A NEW CULTURE OF OPENNESS, RESPONSIVENESS, AND
 ACCOUNTABILITY.
 IN THE WASTE MANAGEMENT AREA, WE HAVE COMPLETED ALL TECHNICAL
 PREREQUISITES TO BEGIN THE WASTE ISOLATION PILOT PLANT (WIPP) TEST
 PHASE. WE HAVE ALSO CONTINUED CHECKOUTS AT THE DEFENSE WASTE PROCESSING
 FACILITY AT THE SAVANNAH RIVER SITE AND WE HAVE STARTED OPERATIONS OF THE
 TSCA INCINERATOR AT OAK RIDGE. OVER 331,000 POUNDS OF LIQUID MIXED WASTE
 WERE SAFELY INC,ITERATED IN FY 1991, AND THE GOAL FOR FY 1992 IS 2.5
 MILLION POUNDS; A TOTAL OF 1.7 MILLION POUNDS HAS BEEN INCINERATED
 SINCE START OF OPERATIONS IN APRIL 1991.  WE HAVE MADE SUBSTANTIAL
 PROGRESS TOWARD THE RESOLUTION OF SAFETY ISSUES ASSOCIATED WITH THE
 STORAGE OF HIGH-LEVEL WASTE IN TANKS, PARTICULARLY AT THE HANFORD
 RESERVATION. IN ADDITION, THE CONDUCT AND DISCIPLINE OF OPERATIONS AT
 ALL WASTE MANAGEMENT FACILITIES HAVE BEEN IMPROVED THROUGH MANAGEMENT
 INITIATIVES.
 WHILE MUCH OF OUR ACTIVITY IN THE ENVIRONMENTAL RESTORATION AREA IS
 STILL IN THE ASSESSMENT AND CHARACTERIZATION PHASE, WE HAVE DONE SOME
 SIGNIFICANT REMEDIATION AND CLEANUP. IN FY 1991, WE COMPLETED SURFACE
 REMEDIATION OF URANIUM MILL TAILINGS SITES AT DURANGO, COLORADO, AND
 LOWMAN, IDAHO, AT A COST OF $9.2 MILLION, AND WE CONTINUED ACTIONS AT
 ROCKY FLATS RELATED TO REMOVAL AND SOLIDIFICATION OF POND SLUDGE
 CONTAMINATED WITH MIXED WASTE. WE COMPLETED THREE MAJOR SITE CLOSURES
 AT SAVANNAH RIVER AT A COST OF $10.5 MILLION. AND AT HANFORD, WE
 COMPLETED TWO EXPEDITED RESPONSE ACTIONS, INITIATED A THIRD, AND
 EXCAVATED 120 DRUMS CONTAINING CONTAMINANTS AND 7,000 CUBIC YARDS OF
 CONTAMINATED SOIL FROM UNLINED TRENCHES.
 A FEW HIGHLIGHTS OF FY 1992 TO DATE INCLUDE ROBOTIC PLOTTING AND
 BENTONITE CAPPING OF THE FERNALD K-65 SILOS AT A COST OF $5.0 MILLION
 -- A SAVINGS OF $15 MILLION, DUE TO THE TECHNOLOGY EMPLOYED; COMPLETING
 CONTAMINATED SEDIMENT CONTROL PROJECT IN WHITE OAK CREEK AT OAK RIDGE,
 BEGINNING FULL-SCALE CARBON TETRACHLORIDE VAPOR EXTRACTION AT HANFORD; AND
 ACHIEVING READINESS FOR OPERATION OF THE QUARRY WATER TREATMENT PLANT AT
 THE WELDON SPRING SITE.
 I WANT TO NOTE THE EXCELLENT PROGRESS WE ARE MAKING IN NEGOTIATING AND
 EXECUTING COMPLIANCE AGREEMENTS WITH FEDERAL AND STATE REGULATORS.
 SINCE 1979, 76 AGREEMENTS HAVE BEEN EXECUTED; ANOTHER 23 ARE CURRENTLY
 UNDER NEGOTIATION. WE HAVE MET 95 PERCENT OF THE MILESTONES IN OUR
 COMPLIANCE AGREEMENTS. (ALMOST ALL CASES WITHIN THE REMAINING 5 PERCENT
 INVOLVED OUR BEING LATE IN SUBMITTING A WRITTEN DOCUMENT.) WE DO TAKE
 OUR OBLIGATIONS UNDER COMPLIANCE AGREEMENTS VERY SERIOUSLY AND ARE
 ENDEAVORING TO MEET 100 PERCENT OF OUR MILESTONES.
 IN THE TRANSPORTATION MANAGEMENT PROGRAM, WE SUCCESSFULLY AND SAFELY
 PROVIDED PACKAGING AND TRANSPORTATION SERVICES FOR DOE SHIPPING
 CAMPAIGNS FOR THREE-MILE ISLAND, THE FOREIGN FUEL MOVEMENT PROJECT, THE
 CESIUM 137 RETRIEVAL PROGRAM, AND BNL SPENT FUEL, AND WE EXPECT TO
 RETURN $18 MILLION TO THE TREASURY BY LITIGATING DOE RAIL RATES THROUGH
 THE INTERSTATE COMMERCE COMMISSION. WE ALSO COMPLETED A MAJOR EMERGENCY
 PREPAREDNESS TRAINING EXERCISE AND WE INITIATED EMERGENCY MANAGEMENT
 TRAINING ACTIVITIES WITH HEADQUARTERS, FIELD OFFICES, STATE, TRIBAL,
 AND LOCAL GOVERNMENTS.
 IN THE TECHNOLOGY DEVELOPMENT AREA, THE DEPARTMENT HAS INITIATED
 NON-DESTRUCTIVE EVALUATION OF BURIED WASTE SITES USING INSTRUMENTED
 HELICOPTER FLYOVERS WITH INFRARED AND MAGNETIC IMAGING DEVICES;
 DEMONSTRATED INNOVATIVE IN SITU DIRECTIONAL DRILLING TECHNOLOGIES THAT
 USE HORIZONTAL WELLS AND ACHIEVE A FIVE-FOLD INCREASE IN EFFICIENCY OF
 REMEDIATION; AND DEVELOPED TECHNOLOGIES FOR IN SITU AIR STRIPPING OF TCES
 AT SAVANNAH RIVER. IN ADDITION, WE DEMONSTRATED SPRAY FORM CASTING WITHOUT
 GENERATION OF ACIDIC HEAVY-METAL WASTES, COMPLETED INTEGRATED ROBOTICS
 PLANNING, DEMONSTRATED AN AUTOMATED ANALYTICAL LABORATORY CAPABLE OF
 HANDLING MIXED WASTE, DEVELOPED REMOTE MAPPING FOR MITIGATING RADON
 RELEASES, AND DEVELOPED PROTOTYPE CLEANABLE STEEL HIGH EFFICIENCY
 PARTICULATE AIR FILTERS.
 IN THE EDUCATION AREA, THE NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL
 YEARS 1992 AND 1993 PROVIDES $10 MILLION FOR TRAINING AND EDUCATION OF
 PEOPLE ENGAGED IN HAZARDOUS SUBSTANCE OR EMERGENCY RESPONSE ACTIVITIES AT
 DOE FACILITIES AND PROVIDES $1 MILLION FOR CONDUCTING A SCHOLARSHIP AND
 FELLOWSHIP PROGRAM THAT WILL ATTRACT HIGH-QUALITY STUDENTS INTO OUR
 NATION'S UNIVERSITIES AND REQUIRE ONE YEAR OF OBLIGATED SERVICE WITH EM
 FOR EVERY YEAR OF EDUCATIONAL SUPPORT. WE RECENTLY ESTABLISHED THREE
 ACADEMIC PARTNERSHIPS THAT ALLOW US TO REACH 25 COLLEGES AND THOUSANDS OF
 COLLEGE AND PRECOLLEGE STUDENTS.
                              CHALLENGES FACING EM
 OUR GREATEST CHALLENGE AT PRESENT IS TO INITIATE A TEST PHASE WITH
 TRANSURANIC WASTE AT WIPP. BEYOND THAT, WE NEED TO ARRIVE, AS A NATION,
 AT A DEFINITION OF HOW CLEAN IS CLEAN. WE NEED TO ESTABLISH DE MINIMIS
 LEVELS FOR MATERIALS AND LAND USE. WE DO NOT KNOW IF WE CAN RECYCLE
 SOME OF OUR MATERIALS. WE DO KNOW THAT WE HAVE MORE THAN 7,000
 BUILDINGS AT 39 SITES AND OTHER AREAS WHERE WE HAVE STRUCTURAL STEEL,
 PIPING, CONCRETE, AND VALUABLE MATERIALS THAT CAN BE RECYCLED. BUT WE
 ARE UNABLE TO RECYCLE THEM UNTIL WE HAVE ESTABLISHED HOW CLEAN IS CLEAN.
 IT ALSO HAS TO BE RECOGNIZED THAT NOT ALL DOE SITES CAN BE RETURNED TO
 "GREEN FIELD" CONDITIONS; NOR WOULD IT BE COST-EFFECTIVE OR RATIONAL TO DO
 SO. WE ARE JUST BEGINNING TO ADDRESS LAND USE ISSUES AND RECOGNIZE THAT
 THESE ARE SOME OF THE MOST CRUCIAL -- AND POTENTIALLY CONTENTIOUS --
 ISSUES FACING DOE, AND, INDEED, THE NATION. IN ORDER TO GRAPPLE WITH THE
 MYRIAD OF COMPLEX ISSUES RELATED TO REGULATORY LIMITS, RISKS TO HUMAN
 HEALTH AND THE ENVIRONMENT, AND LAND USE PLANNING, WE NEED A
 NATIONAL-LEVEL DIALOGUE AMONG THE MANY PARTIES AFFECTED BY AND INTERESTED
 IN THIS ISSUE, INCLUDING MEMBERS OF THE CONGRESS. I HOPE THAT MEMBERS OF
 THIS COMMITTEE WILL ASSIST US IN RESOLVING SOME OF THESE ISSUES.
 ONE PARTICULAR ISSUE I WANT TO MENTION IS THE STORAGE, TREATMENT, AND
 DISPOSAL OF MIXED WASTE (WASTE THAT HAS BOTH RADIOACTIVE AND HAZARDOUS
 COMPONENTS). WE ARE CONCERNED ABOUT HOW MIXED WASTE RELATES TO
 COMPLIANCE PROVISIONS IN THE RESOURCE CONSERVATION AND RECOVERY ACT
 (RCRA), ESPECIALLY IN LIGHT OF THE FEDERAL FACILITIES COMPLIANCE
 LEGISLATION CURRENTLY BEFORE THE CONGRESS. WE FULLY SUPPORT THE
 OBJECTIVES OF THE SENATE AND HOUSE BILLS TO BRING FEDERAL FACILITIES
 INTO COMPLIANCE WITH APPLICABLE FEDERAL AND STATE ENVIRONMENTAL LAWS
 AND, IN PARTICULAR, RCRA. WE ALSO SUPPORT, IN PRINCIPLE, BEING SUBJECT
 TO FINES AND PENALTIES UNDER RCRA, WHEN WE MISS A VIABLE DEADLINE.
 HOWEVER  WE OBJECT TO BEING PENALIZED FOR FAILURE TO COMPLY WHEN
 COMPLIANCE IS, IN FACT, IMPOSSIBLE.
                                  ARMS CONTROL
 RECENT DRAMATIC CHANGES IN THE WORLD HAVE INCREASED THE IMPORTANCE OF
 BOTH ARMS CONTROL AND NON-PROLIFERATION ISSUES TO U.S. SECURITY. TO
 IMPROVE THE DEPARTMENT'S EFFECTIVENESS IN SUPPORTING U.S. AND
 INTERNATIONAL EFFORTS IN BOTH OF THESE AREAS I HAVE CONSOLIDATED THE
 DEPARTMENT'S ARMS CONTROL AND NON- PROLIFERATION ACTIVITIES WITHIN A NEW
 OFFICE OF ARMS CONTROL NON-PROLIFERATION (AN) UNDER THE SECRETARIAT.
 THIS WILL STRENGTHEN THE DEPARTMENT'S CAPABILITIES TO PLAY A MORE
 ACTIVE AND EFFECTIVE ROLE IN SUPPORTING TRADITIONAL ARMS CONTROL AND
 NUCLEAR NONPROLIFERATION ACTIVITIES AS WELL AS THE NEW APPROACHES
 NEEDED TO RESPOND TO THE DYNAMIC CHANGES THAT HAVE OCCURRED IN THE
 WORLD'S POLITICAL AND MILITARY ENVIRONMENT. THESE INCLUDE INITIATIVES,
 SUCH AS THOSE ARISING FROM THE PRESIDENT'S SEPTEMBER 27, 1991 NUCLEAR
 INITIATIVE AND THE RELATED SOVIET NUCLEAR THREAT REDUCTION ACT AS WELL
 AS FORMER SOVIET UNION RECIPROCAL UNILATERAL DECLARATIONS. THEY ALSO
 INCLUDE MAJOR U.S. AND INTERNATIONAL NON- PROLIFERATION EFFORTS ARISING
 FROM UN RESOLUTION 687 CONCERNING IRAQI WEAPONS OF MASS DESTRUCTION AND
 OTHER GLOBAL CHANGES.
 I EXPECT THIS NEW ORGANIZATION TO EXPAND DOE'S INVOLVEMENT IN ALL
 THESE ACTIVITIES AND TO EXTEND THE AVAILABILITY OF THE DEPARTMENT'S
 UNIQUE TECHNICAL AND ANALYTICAL RESOURCES, INCLUDING THE SPECIALIZED
 EXPERIENCE OF DOE'S HIGHLY REGARDED NATIONAL LABORATORIES, TO MEET THE
 RAPIDLY EVOLVING NEEDS OF THE GOVERNMENT. AMONG THESE GROWING NEEDS ARE
 SUPPORT FOR ARMS CONTROL AND NON- PROLIFERATION POLICYMAKING,
 NEGOTIATION, DETECTION AND VERIFICATION TECHNOLOGY RESEARCH AND
 DEVELOPMENT, COMPLIANCE DETERMINATION, AND IMPLEMENTATION SUPPORT FOR
 THE EXPANDING SLATE OF TREATIES AND AGREEMENTS.
 OF COURSE, THE MISSION OF THIS NEW OFFICE OF ARMS CONTROL AND NON-
 PROLIFERATION INCLUDES THE TRADITIONAL FUNCTIONS OF DIRECTING
 DEVELOPMENT AND COORDINATION OF DOE'S POLICIES, PLANS, AND PROCEDURES
 RELATING TO ARMS CONTROL AND NON-PROLIFERATION; MANAGING DOE'S
 SUPPORTING.RESEARCH AND DEVELOPMENT FOR VERIFICATION AND MONITORING OF
 ARMS CONTROL AND NON-PROLIFERATION TREATIES AND AGREEMENTS; INTEGRATING
 DOE'S POLICIES AND ACTIVITIES RELATED TO ARMS CONTROL AND
 NON-PROLIFERATION, INCLUDING COOPERATIVE PROGRAM COMPONENTS (NUCLEAR
 POWER, ISOTOPES IN INDUSTRY, MEDICINE, AGRICULTURE) OF THE NUCLEAR NON-
 PROLIFERATION TREATY (NPT); SERVING AS THE DOE FOCAL POINT FOR TECHNICAL
 SUPPORT TO OTHER GOVERNMENT AGENCIES ON ARMS CONTROL AND NON-PROLIFERATION
 MATTERS AND REPRESENTING DOE IN RELAYED INTERNATIONAL NEGOTIATIONS AND
 CONSULTATIONS. WHILE SUSTAINING THESE ESTABLISHED FUNCTIONS, DEPARTMENTAL
 CAPABILITIES ARE BEING ENLARGED AND EXPANDED TO COORDINATE THE
 DEPARTMENT'S EFFORTS IN SUPPORT OF U.S. ACTIVITIES IN RUSSIA AND OTHER
 STATES IN THE COMMONWEALTH OF INDEPENDENT STATES (CIS) IN A NUMBER OF
 CRITICAL AREAS (FOR EXAMPLE, SAFE, SECURE NUCLEAR WARHEAD DISMANTLEMENT,
 EMERGENCY RESPONSE CAPABILITIES, EXPORT CONTROLS, FISSILE MATERIALS
 ACCOUNTABILITY AND SAFEGUARDS) AND IN FULFILLING NEW UNITED
 NATIONS-MANDATED INSPECTIONS FOR AND DESTRUCTION OF IRAQI WEAPONS OF MASS
 DESTRUCTION AND RELATED PRODUCTION CAPABILITIES. THE DEPARTMENT IS ALSO
 PARTICIPATING IN DOMESTIC AND INTERNATIONAL DELIBERATIONS ON IMPROVED
 REGIMES FOR CONTROLLING THE SPREAD OF  MASS DESTRUCTION WEAPONS IN AN
 INCREASINGLY MULTIPOLAR AND TECHNICALLY ADVANCED WORLD.
 FUNDING TOTALING $204,346,000 IN THE AGGREGATE, WAS ORIGINALLY REQUESTED
 FOR THE FOUR MAJOR ARMS CONTROL AND NON-PROLIFERATION CATEGORIES
 (VERIFICATION AND. CONTROL TECHNOLOGY; EXPORT CONTROL; INTERNATIONAL
 SAFEGUARDS; AND NON- PROLIFERATION POLICY) IN THE FY 1993 BUDGET. THE BUSH
 ADMINISTRATION HAS INCREASED SPENDING IN THESE IMPORTANT AREAS BY 55
 PERCENT OVER THE PAST FOUR YEARS.
 HOWEVER, BECAUSE OF ADDED AND CRITICALLY IMPORTANT ACTIVITIES
 ASSOCIATED WITH SAFE, SECURE NUCLEAR WEAPON DISMANTLEMENT BY THE FORMER
 SOVIET UNION AND NON- PROLIFERATION AREAS, WE ARE PROPOSING THAT THE
 FORTHCOMING BUDGET AMENDMENT INCLUDE A REQUEST FOR ADDITIONAL FUNDS.
 BUILDING ON THE EXTENSIVE TECHNICAL EXPERTISE AND VERSATILITY OF ITS
 NATIONAL LABORATORIES, DOE HAS ESTABLISHED A SOLID PROGRAM OF
 TECHNOLOGY DEVELOPMENT AND ANALYTICAL STUDIES IN SUPPORT OF U.S. ARMS
 CONTROL AND NON-PROLIFERATION POLICY FORMULATION, TREATY VERIFICATION
 AND IMPLEMENTATION, AND R&D AND TECHNICAL SUPPORT FOR MONITORING AND
 COMPLIANCE ANALYSIS. AS ALREADY REVEALED IN THE TIMELY AND EFFECTIVE
 SUPPORT THAT DOE HAS PROVIDED FOR INTERNATIONAL ACTIVITIES IN IRAQ AND
 IN THE FORMER SOVIET UNION, CONSOLIDATION OF THESE PROGRAMS UNDER THE
 OFFICE OF ARMS CONTROL AND NON-PROLIFERATION WILL ENHANCE
 DOE'S CONTRIBUTIONS.
 IN RESPONSE TO HISTORIC CHANGES IN THE SECURITY ENVIRONMENT AND
 HEIGHTENED CONCERNS ABOUT PROLIFERATION, DOE HAS ADAPTED ITS
 ORGANIZATION AND PROGRAMS TO MEET EFFECTIVELY THE CHALLENGES PRESENTED
 BY THE NEW SITUATION. WE BELIEVE THAT THE PROGRAM WE HAVE PRESENTED
 PROVIDES AN EFFECTIVE BASIS FOR ADDRESSING THE CHALLENGES THAT LIE
 BEFORE US.
                                NAVAL REACTORS
 THE PROGRAM'S MISSION TO PROVIDE MILITARILY EFFECTIVE NAVAL NUCLEAR
 PROPULSION PLANTS AND ENSURE THEIR SAFE AND EFFECTIVE OPERATION
 CONTINUES, BUT HOW WE ACHIEVE THAT MISSION WILL CHANGE. THE CHALLENGE IS
 TO DOWNSIZE THE UNIQUE NAVAL NUCLEAR INDUSTRIAL BASE WHILE RETAINING THE
 CAPABILITY TO DEVELOP AND PRODUCE MILITARILY EFFECTIVE NUCLEAR PROPULSION
 PLANTS MEETING THE PROGRAM'S EXACTING STANDARDS.
 NUCLEAR POWERED SHIPS ACCOUNT FOR OVER 45 PERCENT OF THE NAVY'S
 COMBATANTS -- 139 SHIPS. THESE SHIPS HAVE ACCUMULATED 4,000 REACTOR
 YEARS OF OPERATION WITHOUT A REACTOR ACCIDENT OR RELEASE OF
 RADIOACTIVITY THAT HAS HAD AN ADVERSE EFFECT ON THE CREWS, THE PUBLIC,
 OR THE ENVIRONMENT.
 NAVAL REACTORS' SAFETY AND ENVIRONMENT RECORD IS A RESULT OF HARD
 WORK, DEDICATION, AND A SENSE OF PERSONAL RESPONSIBILITY FOR SAFETY,
 CONTROL OF RADIOACTIVITY, AND ENVIRONMENTAL PRESERVATION. THE FY 1993
 BUDGET REQUEST OF $807 MILLION SUPPORTS THEIR "CRADLE-TO-GRAVE"
 RESPONSIBILITY FOR NAVAL NUCLEAR PROPULSION. THIS REPRESENTS AN
 INCREASE OF FIVE PERCENT OVER FY 1992 SPENDING, NOT INCLUDING PURCHASES
 OF ENRICHED URANIUM.
                                SECURITY AFFAIRS
 OVER 67 PERCENT OF THE RECOMMENDATIONS OF THE SAFEGUARDS AND SECURITY
 TASK FORCE REPORT WHICH WAS APPROVED ON DECEMBER 14, 1990, HAVE BEEN
 IMPLEMENTED AND WE ARE DILIGENTLY WORKING ON THE REST. I WOULD LIKE TO
 MENTION A FEW OF THE RECOMMENDATIONS THAT HAVE BEEN IMPLEMENTED.
 SIGNIFICANT PROGRESS HAS BEEN MADE IN ESTABLISHING A SAFEGUARDS AND
 SECURITY PROFESSIONAL DEVELOPMENT PROGRAM. THIS PROGRAM WILL INCLUDE
 FORMAL TRAINING, SELF DEVELOPMENT AND INDIVIDUAL STUDY, ON-THE-JOB
 EXPERIENCE, AND PERFORMANCE RELATED OBJECTIVES. THE RESULT OF THIS PROGRAM
 WILL BE A MORE PROFESSIONAL AND EFFECTIVE SAFEGUARDS AND SECURITY
 WORKFORCE.
  
 AS A RESULT OF THE TASK FORCE RECOMMENDATIONS, WE HAVE IDENTIFIED A
 WIDE VARIETY OF SAFEGUARDS AND SECURITY ITEMS, SUCH AS HELICOPTERS,
 AMMUNITION, UNIFORMS, AND SECURITY FORCE EQUIPMENT, AS WELL AS NUMEROUS
 OTHER ITEMS FOR STANDARDIZATION THROUGH COMMON PROCUREMENT. THE CENTRAL
 TRAINING ACADEMY WILL BE THE FOCAL POINT FOR STANDARDIZATION OF ALL
 SAFEGUARDS AND SECURITY TRAINING TO ENSURE A WELL-TRAINED CADRE
 THROUGHOUT THE DOE COMPLEX.
 WHILE THESE ARE ONLY A FEW EXAMPLES OF RECENT SAFEGUARDS AND SECURITY
 ACTION, THEY ARE REPRESENTATIVE OF THE PROGRESS MADE IN THE LAST YEAR.
 THE OFFICE OF SECURITY AFFAIRS IS WORKING IN CLOSE COORDINATION WITH
 ALL THE PSOs TO ENSURE THAT, AS RECONFIGURATION DECISIONS ARE MADE, THE
 NECESSARY SAFEGUARDS AND SECURITY ADJUSTMENTS ARE CONSIDERED.
                                  INTELLIGENCE
 THE NATURE AND SCOPE OF THE DEPARTMENT'S INTELLIGENCE ACTIVITIES HAVE
 BEEN INFLUENCED BY A VARIETY OF INTERNATIONAL EVENTS AND TRENDS. RECENT
 EVENTS IN THE FORMER SOVIET REPUBLICS AND THE INCREASED EMPHASIS BEING
 PLACED ON MONITORING OF ACTIVITIES OF POTENTIAL PROLIFERANT NATIONS
 HAVE DRIVEN A REASSESSMENT OF THE DEPARTMENT'S TOP INTELLIGENCE
 REQUIREMENTS.
 ACCORDINGLY, PROLIFERATION INTELLIGENCE ACTIVITIES HAVE BEEN INCREASED
 TO STRENGTHEN THE INTELLIGENCE COMMUNITY'S ASSESSMENTS OF WORLDWIDE
 NUCLEAR PROLIFERATION AND THE DEPARTMENT'S ROLE IN EXPORT CONTROLS AND
 OTHER POLICY COUNTERMEASURES. EVENTS IN THE FORMER SOVIET REPUBLICS WILL
 CONTINUE TO BE MONITORED FOR IMPACT TO U.S. NATIONAL SECURITY WITH
 SPECIAL FOCUS ON THE SECURITY OF COMMONWEALTH OF INDEPENDENT STATES'
 NUCLEAR WEAPONS AND ISSUES RELATED TO THEIR DISMANTLEMENT.
                         OFFICE OF SECURITY EVALUATIONS
 OVER THE PAST SEVERAL YEARS, I HAVE SUPPORTED VIGOROUS OVERSIGHT
 PROGRAMS CONDUCTED BY THE OFFICE OF SECURITY EVALUATIONS, THE PROGRAM
 OFFICES, AND THE DEPARTMENT OF ENERGY FIELD OFFICES.
 WHILE SAFEGUARDS AND SECURITY REMAINS A PRIORITY ALONG WITH
 ENVIRONMENT, SAFETY, AND HEALTH ISSUES WITHIN THE DEPARTMENT, IT NO
 LONGER REPRESENTS THE SIGNIFICANT CONCERN OF THE PAST. THE OVERSIGHT OF
 THE PROGRAM IS EFFECTIVE AND BECOMING MORE SO. THIS IS FOCUSING
 MANAGEMENT ATTENTION ON CRITICAL AREAS, INCREASING THE EFFECTIVENESS OF
 MANAGEMENT ACTIONS. MY THRUST IN THE FUTURE WILL BE TO INCREASE THE
 COST EFFECTIVENESS OF THE SAFEGUARDS AND SECURITY PROGRAM WHILE
 MAINTAINING A COMPLETELY EFFECTIVE PROTECTION PROGRAM.
                                  CONCLUSION
 MR. CHAIRMAN, I BELIEVE THAT THE DEPARTMENT OF ENERGY'S FY 1993 ATOMIC
 ENERGY DEFENSE ACTIVITIES BUDGET REQUEST IS SOUND AND BALANCED AND
 PROVIDES STRONG SUPPORT TO OUR DEFENSE AND ENVIRONMENTAL CLEANUP
 MISSIONS. I LOOK FORWARD TO WORKING WITH CONGRESS TO ENACT THIS BUDGET.
 I WILL BE HAPPY TO ANSWER ANY QUESTIONS YOU MIGHT HAVE.
  
                     HISTORICAL PERSPECTIVE : PRE-1989
  
 Strategic Environment              Weapons Complex
 o   Cold War Ongoing               o    3 Reactors Shut Down for Safety
 o   INF Treaty in Force            o    NPR Program Accelerated
                                           2 Reactor/2 Sites
 o   START Talks Ongoing            o    Modernization Report Submitted
                                           to Congress (1/89)
  
                    HISTORICAL PERSPECTIVE: 1989-TODAY
 Strategic Environment                   Weapons Complex
 o   Berlin Wall Falls (11/89)           o    Pit Production and Pu
                                              Processing Suspended at Rocky
                                              flats (11/89)- Safety
                                              Upgrades Commence
                                         o    Plutonium Production
                                              Terminated Throughout Complex
                                              (1/90- Sufficient Inventory
                                         o    SRS Reactors Dedicated to
                                              Tritium Only (1/90)
                                         o    All Defense Production
                                              Terminated at Hanford and
                                              Fernald (10/90)
                                         o    Reconfiguration Study
                                              Published (2/91)
                                         o    NPR Downscoped form 2
                                              Reactors/2 Sites to 1
                                              Reactor/Site (2/91)
                                         o    SRS Reactors Cut from 3 to 1
                                              (2/91)
 o    START Treaty Signed (7/91)         o    Hanford N-Reactor Terminated
                                              as Tritium Backup (8/91)
 o    Soviet Coup Fails (8/91)           o    Separate NPR EIS Folded into
                                              Reconfiguration PEIS (10/91)
                                              - Initial Urgency Criteria No
                                              Longer Justified
 o    President Announces Arms
        Initiatives (9/91)               o    HEU Production Suspended at
                                              Portsmouth (11/91)
 o    Soviet Union Collapses (12/91)     o    Preferred Non-Nuclear
                                              Consolidation Plan Announced
                                              (12/91) - EA
 o    President Offers Further           o    Commence Transfer of Rocky
        Arms Initiatives (1/92)               Flats to D&D
                                              -  Startup of Lab Building
                                                 559 (2/92)
                                              -  Startup of Building 707
                                                 for Self Cleanup (Excepted
                                                 FY 93)
 **** NOTE DYNAMICS OF TRITIUM SUPPLY AND DEMAND CHART IS ATTACHED TO
      ORIGINAL DOCUMENT
 **** NOTE REVISED K REACTOR SCHEDULE CHART IS ATTACHED TO ORIGINAL
      DOCUMENT
  
              REMEDIAL ACTIONS TAKEN SINCE AUTHORIZED STARTUP
 o    Safety Rods
      -    Extensively Tested, Visually Examined, and Repaired
           Malfunctioning Rods
      Heat Exchanger Failure -- Tritium Leak
      -    Replaced 3 Heat Exchangers
      -    Improved Procedures and Training
      -    Completed an Environmental Analysis, and Incident
           Investigation, a Failure Analysis, and Evaluation of the
           Structural Integrity of the Heat Exchangers
      -    Instrumentation Alarms and Practices in Place to give Prompt
           Indication of Any Tritium Leak
                --   Installed In-line Tritium Monitoring Equipment
                --   Sample Water Leaving the Plant Every 2 Hours On-site
                     versus 2 Times a Day at an Off-site Laboratory
  
 **** NOTE DEPARTMENT OF ENERGY FY 1993 BUDGET TRENDS IS ATTACHED TO
      ORIGINAL DOCUMENT
 **** NOTE NUCLEAR PRODUCTION WORKFORCE (POST JANUARY 1992 STATE-OF-UNION
      ADDRESS) IS ATTACHED TO ORIGINAL DOCUMENT
  
 **** NOTE NON-NUCLEAR PRODUCTION WORKFORCE (POST JANUARY 1992 STATE-OF-THE
      UNION ADDRESS) IS ATTACHED TO THE ORIGINAL DOCUMENT
 **** NOTE ENVIRONMENTAL RESTORATION AND WASTE MANAGEMENT WORKFORCE IS
      ATTACHED TO ORIGINAL DOCUMENT
  
              WORKER RETRAINING/DOE ADJUSTMENT ASSISTANCE PLAN
 o    DOE has Developed a Transition and Adjustment Assistance Plan with
      Full Participation of State and Local Officials
 o    Objective: Minimize the Impact of Changes in the Weapons Complex on
      Workers and Communities
 o    Key Elements of Our Plan
      -    Employment of Displaced Workers on Cleanup Activities at the
           same site, Providing Retraining as Necessary
           --   Fernald ERMC Used as Model
      -    Recruitment and Placement at Other DOE Sites, with Priority
           Given to Sites within Surrounding Geographic Area
      -    Placement with a DOE Contractor at Another Site Receiving Any
           Portion of the Work
      -    Assistance in Other Outplacement Activities in Local Areas
           Through Efforts of the Current Contractor
      -    Use of the President's Economic Adjustment Assistant Program
           through Department of Defense and Coordination with the
           Department of Labor ($150M Set-aside
      -    Coordinate with Economic Development Administration to Ensure
           State and Local Government Entities Obtain Assistance (25%
           Match/50M Set-aside/SBA Involvement)
      -    Investigate Other Opportunities for Obtaining Assistance from
           Additional Sources
      -    A Recent Example is our Cooperation with Senator Brown and Local
           Leaders in Colorado in which the Department is Making Available
           $100,000 Plus an Additional $140,000 In-Kind Support in FY 92
      



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