Environmental Liabilities: Naval Reactors’ Disposition Partnership on Track to Save Billions

What GAO Found

The Department of Energy's (DOE) Office of Naval Reactors (Naval Reactors) is responsible for cleaning up contamination at four DOE-owned sites impacted by its operations: one each in Idaho and Pennsylvania, and two in New York. Cleanup involves decontamination and decommissioning of excess facilities-including naval nuclear propulsion prototypes-and remediation of contaminated soil. Estimated costs for these cleanup activities are reported as federal environmental liabilities.

Demolition of the Submarine First Generation Westinghouse (S1W) Nuclear Propulsion Prototype Facility at the DOE Office of Naval Reactors Site in Idaho

In 2019, Naval Reactors partnered with DOE's Office of Environmental Management (EM) to conduct large-scale decontamination and decommissioning on its behalf. Naval Reactors estimated its environmental liabilities for the inventory of work planned for completion under the partnership would be $5.8 billion in 2025 dollars. EM estimates it can complete the work for approximately $1 billion-a potential $4.8 billion in cost savings if all planned work is completed. Naval Reactors officials attribute the majority of these potential cost savings to EM's nationwide network of experienced contractors.

Naval Reactors and EM initially established a target date of 2050 to complete all work under the partnership but recently accelerated the target date to 2035. Naval Reactors planning documents indicate potential funding shortfalls for EM work under this accelerated timeline, which could present challenges to completing all planned work by 2035. However, EM work completed to date indicates the partnership is on track to save billions, even if all planned work is not completed. Naval Reactors officials said the agency is prioritizing its remaining decontamination and decommissioning work to address its most contaminated assets first, thereby limiting exposure risk to the public and the environment.

Why GAO Did This Study

Since 2017, the federal government's environmental liability has been on GAO's High Risk List of programs and operations that are vulnerable to waste, fraud, abuse, and mismanagement, or are in need of transformation. In fiscal year 2025, Naval Reactors had an estimated $6.5 billion in environmental liabilities for cleanup of contaminated facilities and the environment at the four DOE-owned sites.

Senate Report 118-188 includes a provision for GAO to evaluate Naval Reactors' plans for cleanup of legacy or excess contaminated facilities. This report focuses on Naval Reactors' cleanup at DOE-owned sites, including the impact on related environmental liabilities.

GAO assessed documents related to Naval Reactors' cleanup plans and cost estimates. GAO visited three of the four DOE-owned sites to better understand contamination and cleanup efforts at those locations. GAO also interviewed Naval Reactors headquarters officials responsible for developing and implementing the agency's decontamination and decommissioning strategy, as well as officials at each of the sites visited.

For more information, contact Nathan Anderson at [email protected].