Projectizing an Operating Nuclear Facility

1. Projectizing an Operating Nuclear Facility Kim Hauer Director of Strategic Programs Savannah River Remediation LLC URS Washington Division November 11, 2009 SRR-LWP-2009-00015

2. Savannah River Site • Savannah River Site, located in South Carolina, was constructed in the early 1950s • Built to provide strategic materials for U.S. Department of Defense • 310 square miles of federally protected land • Produced nuclear material for national defense, research, medical and space programs • Dispositioning legacy waste generated from nuclear operations • Savannah River Remediation, a subsidiary of the URS Corporation, has managed liquid waste operations at the Savannah River Site since July 1, 2009

3. Savannah River Remediation • SRR program FY09 operating budget is $552 million • Liquid Waste program completion cost is $20.4 billion • Technical and Programmatic Risk Assessment contingency of $6.0 billion • SRR program completion date of 2032 • 1,786 employees • 5 major operating facilities • More than 15 active projects • Sole customer: U.S. Department of Energy • Multiple stakeholders Radioactive waste stored in SRS tanks poses the single greatest environmental risk in the State of South Carolina

4. A Safe Project Culture • Establish a “zero injury” expectation • Implement safety programs • Behavior-Based Safety (BBS) • Voluntary Protection Program (VPP) • Human Performance Improvement (HPI) • Time Out • Take 5 for Safety • Monitor employee performance • Reward safety excellence

5. Working Safely • 2,500 times each year employees are exposed to electrical hazards • 250,000 times each year employees are exposed to radiological hazards • 200 million gallons of liquid radioactive waste is transferred annually by employees Two Legacy of Stars Awards Eight VPP “Star of Excellence” Awards One Superior Star Award Cases Per 200,000 Hours SRR begins 7/1/09

6. SRR Commitments Double Sludge preparation rate and Sludge Feed quantity Triple quantity of HLW removed HLW Sludge Waste Removal HLW Sludge feed preparation Double canisters produced per year DWPF Canister Production Salt Removal and Separation (ARP/MCU) Salt Separation (ARP/MCU) HLW Tank Closure HLW Tank Cleaning Double Salt preparation and Salt processing rates 22 Waste Tanks Closed in 8 Years !!! LLW (Salt Stone) HLW Evaporators

7. Program Challenges • Pendulum-like budget swings • $30-50 million annual budget swings • Multiple regulators • Five regulators, all with differing expectations • Environmental risk • Single largest environmental risk in the southeastern United States • Degrading equipment and infrastructure • Over 50-year-old equipment and plant infrastructure • Competitive market • Ultra-competitive business market with an aging workforce • Highly political environment • Highly intense political environment subject to stakeholder and media scrutiny

8. DOE & Site Strategic Plans • Project Execution Plan Life-Cycle Liquid Waste Disposition System Plan (LLWD) (End-of-Program) Disposition Processing Plan (DPP) (5-7 years) Technology Development Risk Management Plan (RMP) LW Strategy Effluent Treatment Project Plan DWPF Recycle Management Plan Sludge Batch Plan Weekly Evaporator Operating Plans Facility P3 Schedules Facility P3 Schedules Facility P6™ Schedules Project Risk Assessments Tank Closure Sequencing Plan Key Assumptions Long Range Salt Sequencing Plan • Documents joint objectives of • DOE, SCDHEC, GNAC • Continue to store waste safely • Meet FFA commitments for Tank Closures • Support SWPF startup at rated capacity • Sustain Vitrification at DWPF • Treat organics and return Tank 48 to service • Minimize curies disposed at Saltstone • Defines curie limits for waste to Saltstone • from DDA, ARP/MCU, and SWPF Emergent Risks Mid Range Emergent Opportunities Emergent Risks Short Range Emergent Opportunities Facility Execution

9. DOE & Site Strategic Plans • Project Execution Plan Life-Cycle Liquid Waste Disposition System Plan (LLWD) (End-of-Program) Disposition Processing Plan (DPP) (5-7 years) Technology Development Risk Management Plan (RMP) LW Strategy Effluent Treatment Project Plan DWPF Recycle Management Plan Sludge Batch Plan Weekly Evaporator Operating Plans Facility P3 Schedules Facility P3 Schedules Facility P6™ Schedules Project Risk Assessments Tank Closure Sequencing Plan Key Assumptions Long Range • Documents jointly developed • key inputs and assumptions • for plan development such • as: • SWPF Startup date • SWPF processing rate • Federal Repository startup date and shipping rates • Canister fissile loading limitations • H-Canyon processing plan • Frequency of melter replacement • Schedule duration for Tank Closure documentation • DWPF canister waste loading and production rate • ARP/MCU processing rate • Tank 48 return to general service date Salt Sequencing Plan Emergent Risks Mid Range Emergent Opportunities Emergent Risks Short Range Emergent Opportunities Facility Execution

10. DOE & Site Strategic Plans • Project Execution Plan Life-Cycle Liquid Waste Disposition System Plan (LLWD) (End-of-Program) Disposition Processing Plan (DPP) (5-7 years) Technology Development Risk Management Plan (RMP) LW Strategy DWPF Recycle Management Plan Sludge Batch Plan Effluent Treatment Project Plan Weekly Evaporator Operating Plans Facility P3 Schedules Facility P3 Schedules Facility P6™ Schedules Project Risk Assessments Tank Closure Sequencing Plan Key Assumptions Long Range Salt Sequencing Plan Emergent Risks Mid Range Emergent Opportunities Emergent Risks Short Range Emergent Opportunities Facility Execution

11. DOE & Site Strategic Plans • Project Execution Plan Life-Cycle Liquid Waste Disposition System Plan (LLWD) (End-of-Program) Disposition Processing Plan (DPP) (5-7 years) Technology Development Risk Management Plan (RMP) LW Strategy DWPF Recycle Management Plan Sludge Batch Plan Effluent Treatment Project Plan Weekly Evaporator Operating Plans Facility P3 Schedules Facility P3 Schedules Facility P6™ Schedules Project Risk Assessments Tank Closure Sequencing Plan Key Assumptions Long Range Salt Sequencing Plan Emergent Risks Mid Range Emergent Opportunities Emergent Risks Short Range Emergent Opportunities Facility Execution

12. Waste Processing: Future High Volume Low Activity Stream Saltstone SWPF Tank Farms High-Capacity Salt Processing DWPF Federal Repository Sludge Processing Low Volume High Activity Tank Closure Legend: SWPF: Salt Waste Processing Facility; DWPF: Defense Waste Processing Facility

13. Interim Solution Interim Salt Disposition Project (ISDP): • - Use existing facilities to demonstrate the salt flowsheet • Enable vitrification and tank closure while SWPF is build and commissioned • Reduce SWPF risk through application of ISDP operating experience The first salt waste processing facility within the Department of Energy began operations at SRS in April 2008

14. Waste Processing: Now MCU ARP High Volume Low Activity Stream Interim Salt Processing Tank Farms Saltstone DWPF Federal Repository Sludge Processing Low Volume High Activity Tank Closure Legend: MCU: Modular Cesium Removal Unit; ARP: Actinide Removal Process; DWPF: Defense Waste Processing Facility

15. Mission Timeline DOE Directs New Technology Site Excavation Equipment Fabrication / Testing Site Selected Start D&R Foundation Setting Key Equipment Shielding Structure Jan 2004 Aug 2004 Nov / Dec 2004 Jan 2005 2005 2006 Transfer Lines Tank 50 Mods Saltstone Mods Complete 96H Cell D&R

16. Mission Timeline Start Up Complete Radiological Ops Initiated Cold Runs Complete Initiate Hot Operations Ready For Hot Operations Management Self Assessment Mar 2008 Feb /Mar 2007 Dec 2007 Jan / Mar 2008 Apr 2008 Jul 2007 Sep 2007 Operational Readiness Reviews CRC / Simulator Complete

17. Interim Salt Disposition • $150 million nuclear facility operations project • Prodigious scope (three separate subprojects integrated into one operating project) • Implemented first-of-a-kind in the world technology • Strong relationship with regulators • Stellar safety performance of 3 consecutive years and 1.1 million manhours with only one minor first aid case • Project completed under budget and 12 months ahead of schedule (Cost Performance Index of 1.10) • Construction Team of the Year Award earned for successful completion of MCU; several WSRC President’s Awards earned by employees for their contribution to integrated project’s design, construction and testing activities • Safely operated the process though hundreds of hours of operations with real waste • Providing valuable lessons learned information for SWPF Two of the subprojects, the Modular Caustic Side Solvent Extraction Unit [MCU] (above) and the Actinide Removal Process [ARP] (left), enable salt waste to be processed to support tank closure commitments

18. Lessons Learned • Maintain safety priority and focus throughout all phases of a project. • “Design to Build, Build to Test, Test to Assess, Assess to Operate” • Include early involvement / integration of critical groups and SME’s in projects and at subcontractors facility: • Safety, RCO, IH, Ops, Maintenance, Engineering, Procedures, Training, Testing…. • Provides early identification of issues • Constructability reviews • Bi-weekly DA/Engineering and Construction Interface meetings • Extensive use of 3D model and IPIC’s Technology (design phase through operational phase) significantly improves safety/ALARA and reduces risk • Closely monitor flow-down of quality requirements to sub-tier suppliers.

19. Lessons Learned • Use of a process simulator provides increased proficiency, testing and safety benefits • Use of a “War Room” concept to manage start-up through hot operations activities enables prompt response and priority to safety • Use of a “Management Control Plan” defines the management oversight expectations and controls to be used to ensure safe and effective start-up and operations emphasis on five strategic areas: • Equipment operability, Operator knowledge and performance, Procedure viability, Management oversight, Final management review and authorization.

20. Achieve organizational alignment through project management discipline Set, communicate, and consistently reinforce common core behavioral expectations Identify and exploit opportunities to achieve early programme progress Take-Aways