2005 Federal Facilities Task Force Meeting, June 21-22, 2005

1. 2005 Federal Facilities Task Force Meeting, June 21-22, 2005 EM BUDGET UPDATE Mark Frei, DAS Business Operations Safe for the Workers, Protective of the Environment, and Respectful of the Taxpayer

2. Budget (Comparable FY06 Dollars in Billions) On Course to Meet Our Objectives The investments have resulted in accelerated risk reduction, site closures, and a payoff for all Americans. $7.5 $7.0 $6.5 $6.559 $6.307 $6.753 $7.054 $6.0 $6.505 $6.023 $5.5 $5.0 FY 2001 FY 2002 FY 2003 FY 2004 FY 2005 FY 2006

3. EM’s Five Appropriation Accounts 2

4. EM FY 2006 Budget Structure$6,505 Net Request*($ in millions) Defense Site Defense Non-Defense Site Non-Defense Uranium Enrichment Acceleration Completion Environmental Services Acceleration Completion Environmental Decontamination and Appropriation Appropriation* Appropriation Services Appropriation Decommissioning Fund ($5,184) ($380) Appropriation ($172) ($178) ($591) 2006 Accelerated Non-Closure 2006 Accelerated Non-Closure Decontamination & Environmental Activities ($87) Completions ($15) Environmental Activities ($46) Decommissioning Activities Completions ($1,017) DUF 6 ($86) ($571) Uranium/Thorium 2012 Accelerated Community & Regulatory 2012 Accelerated Community & Regulatory Reimbursement ($20) Completions ($1,291) Support ($62) Completions ($129) Support ($0.09) SBW ($15) PED ($9) WTP ($626) Federal Contribution 2035 Accelerated Environmental Cleanup to the Uranium Enrichment Completions ($28) Projects ($46) Decontamination & 2035 Accelerated Decommissioning Fund ($451) Completions ($1,830) SWPF ($70) GWSF ($7) IHLW ($7) PED ($4) Program Direction ($231) Technology Development & Deployment ($21) Safeguards & Security ($287) * Appropriation amount reflects UE D&D Fund Deposit (offset) of $451M

5. Sites/Programs – All Operating Expenses Operating Expense Controls for Select Sites Construction Line Item Controls Potential New EM Budget Structure$6,505 Net Request*($ in millions) RF - $602 OH - $407 Control Points – Color Code Represents Lowest Level of Control * Appropriation amount reflects UE D&D Fund Deposit (offset) of $451M

6. Sites/Programs – All Operating Expenses Operating Expense Controls for Select Sites Construction Line Item Controls Potential New EM Budget Structure$6,505 Net Request*($ in millions) Control Points – Color Code Represents Lowest Level of Control * Appropriation amount reflects UE D&D Fund Deposit (offset) of $451M

7. Washington SouthCarolina Legend: Over $1 billion $300 million to $1 billion $50 million to $300 million Less than $50 million EM Program FY 2006 Budget Request Budget Request: $6,505M New York* Idaho Nevada * Ohio Illinois Utah Colorado California * Kentucky Missouri * Tennessee * New Mexico * Texas * * EM transferring waste management and/or cleanup responsibilities to NNSA

8. Safe for the Workers, Protective of the Environment, and Respectful of the Taxpayer

9. Protective of the Environment EM Corporate Performance Measures Safe for the Workers, Protective of the Environment, and Respectful of the Taxpayer

10. We Must Stay True to the Strategy • Continue to Improve Safety and Performance • Seek New Opportunities to Reduce Risk and • Complete Cleanup • Address Our Challenges Safe for the Workers, Protective of the Environment, and Respectful of the Taxpayer