The EM Strategic Planning Communication Tool
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1 The EM Strategic Planning Communication Tool Intergovernmental Meeting with the US Department of Energy December 12-14, 2012 Steve Trischman Office of Strategic Planning and Analysis Environmental Management 1
2 A Multi-Billion Dollar Gap Exists between EM Planned Costs and Available Funding Current Dollars (Millions) EM s projected costs generally reflect the cleanup actions required to meet regulatory deadlines and other key cleanup goals. $10,000 $9,000 $8,000 $7,000 $6,000 $5,000 TARGETRANGE Gap between projected cost and target is approximately $14 to $29 billion assuming availability of target as sites close. Projected Cost to Go: $174 - $209B A significant gap exists between EM s projected costs and the available funding expected over the next decade $4,000 $3,000 $2,000 $1,000 $0 Compliance baselines were built assuming higher funding targets and levels of performance than EM is currently experiencing. Anticipated funding levels may be below requirements level at many EM sites. 2
3 EM s Strategic Approach to the Problem Develop multiple options for each element of the program to meet lower potential performance and funding targets Develop a communication tool to allow those options to be combined in many various ways into complex-wide scenarios Make communication tool available to regulators to understand impacts of funding allocations that might impact their site, as well as others Work cooperatively with regulators to resolve regulatory issues 3
4 Reducing the Gap Requires Development of Alternatives to the Baseline Program $2,000,000 $1,800,000 $1,600,000 SNF (P) $1,400,000 $800,000 $1,200,000 $700,000 $1,000,000 $800,000 $600,000 $600,000 $500,000 $400,000 $200,000 $400,000 $0 $300,000 $200,000 $100,000 RWMC/ (M) Buried (M) $0 Static presentations of alternative scenarios are limited. It is not feasible to present the array of possible combinations of multiple options for individual elements of this complex program. A tool for exploring the various combinations is needed. SNM (M) INTEC/ SBW (P) (M) SNM (P) H-Canyon (M) (P) Calcine (P) INTEC/SBW (M) Tank (P) SNF (M) Tank (M) Buried (P) Soil & GW Remed (P) SNF Storage/Receipts (M) Support Activities (M) Current Environmental Liability Idaho Baseline ISFF (P) Baseline Fac D&D/Soil & GW Remed (P) LLW/MLLW & (P) Fac D&D (P) Soil & GW Remed (M) ISFF (M) LLW/MLLW & (M) SNF Storage/Receipts (P) Fac D&D (M) FY13 IPL Target (P): Progress FY13 IPL Min-Safe (M): Maintenance FY13 IPL Total (P): Progress (M): Maintenance/Min-Safe Fac D&D/Soil & GW Remed (M) LLW/MLLW & (P) SNF (P) SNM (P) H-Canyon (P) Tank (P) Fac D&D/Soil & GW Remed (M) LLW/MLLW & (M) SNF (M) SNM (M) H-Canyon (M) Tank (M) Support Activities (M) Replanned Alternative case for accommodating reduced performance and funding $2,000,000 $1,800,000 $1,600,000 SNF (P) $1,400,000 $800,000 $1,200,000 $700,000 $1,000,000 $800,000 $600,000 $600,000 $500,000 $400,000 $200,000 $400,000 $0 $300,000 $200,000 $100,000 RWMC/ (M) $0 (P) INTEC/ SBW (P) (M) SNM (M) Buried (M) SNM (P) SNF (M) H-Canyon (M) Tank (M) Tank (P) Support Activities (M) Buried (P) Soil & GW Remed (P) INTEC/SBW (M) Current Environmental Liability Idaho Replanned Replanned Calcine (P) SNF Storage/Receipts (M) Fac D&D/Soil & GW Remed (P) LLW/MLLW & (P) ISFF (P) Soil & GW Remed (M) SNF Storage/ Receipts (P) Fac LLW/MLLW D&D (P) & (M) ISFF (M) FY13 IPL Target (P): Progress FY13 IPL Min-Safe (M): Maintenance FY13 IPL Total (P): Progress (M): Maintenance/Min-Safe Fac D&D/Soil & GW Remed (M) LLW/MLLW & (P) SNF (P) SNM (P) H-Canyon (P) Tank (P) Fac D&D/Soil & GW Remed (M) LLW/MLLW & (M) SNF (M) SNM (M) H-Canyon (M) Tank (M) Support Activities (M) Replanned Fac D&D (M) 4
5 Current Dollars (Millions) Current Dollars (Millions) Current Dollars (Millions) Current Dollars (Millions) Multiple Site-Specific Strategic Options Developed to Support Dynamic Analysis 1,600 1,400 Option 1: Defer start to ,200 1, Calcine SNF Packaging/ Transfer/Swap 1,600 Base Case: 1,400 Calcine disposition from Liq Fac Closure 400 Soil/GW Progress 200 Buried RWMC/ INTEC/SBW 0 Pension Soil/GW Maintenance ISFF Fac D&D SNF Storage/Receipts Fee Support Activities 1, , Liq Fac Closure Calcine ISFF Buried Soil/GW Progress Fac D&D SNF Packaging/ Transfer/Swap RWMC/ INTEC/SBW Soil/GW Maintenance Support Fee SNF Storage/Receipts Activities 0 Pension Option 2: Defer start to 2027 with construction extended 2 years Liq Fac Closure 400 Soil/GW Progress 200 Buried RWMC/ 1,600 INTEC/SBW 0 Pension 1,400 Calcine SNF Storage/Receipts Fee Fac D&D Support Activities Soil/GW Maintenance Option 3: Defer start to 2016 with construction extended 14 years 1,200 1, Liq Fac Closure RWMC/ SNF Storage/ Receipts 0 Pension Calcine Soil/GW Progress Buried INTEC/SBW Fee Fac D&D Support Activities Soil/GW Maintenance 5
6 EM Strategic Planning Communication Tool 6
7 EM Strategic Planning Communication Tool 7
8 EM Strategic Planning Communication Tool 8
9 EM Strategic Planning Communication Tool A simple, yet robust framework for engaging stakeholders in a more comprehensive and constructive fashion A means of evaluating impacts of larger programmatic alternatives Based on program level planning data A prototype awaiting stakeholder feedback Is Is Not For evaluating incremental changes to the current program or budget development For decision making estimated costs do not reflect Departmental decisions For project evaluation or baseline management A means of judging costeffectiveness or viability of alternatives Based on detailed project level data 9
10 We Need Your Feedback Does the tool help communicate the challenge of meeting commitments across the entire program at a time of fiscal constraint? Easy to use? Results clearly presented? 10
11 Strategic Planning Path Forward Build from this prototype and underlying analyses to fully integrate planning across all sites Implement annual planning cycle to Estimate impact of various funding levels and alternative program priorities on life-cycle cost and schedule Review field initiatives Support budget development Support Department s Environmental Liability statement Develop portfolio of investment opportunities 11
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