The following is a list of the oversight results by the Office of Inspector General regarding The Department's programs, grants, and projects funded under the Recovery Act.
In February 2009, the President signed the American Recovery and Reinvestment Act of
2009 (Recovery Act) into law. Part of the Recovery Act's purpose, relevant to the
Department of Energy (Department), was to invest in environmental protection.
Accordingly, the Department's Oak Ridge Office of Environmental Management (EM)
received $216 million of Recovery Act funds to perform environmental cleanup activities at
the National Nuclear Security Administration's (NNSA) Y-12 National Security Complex
(Y-12). These funds were allocated to seven projects addressing material disposition,
deactivation and demolition, and remediation. Y-12 is managed and operated by Babcox
&Wilcox Y-12 Technical Services, LLC (B&W Y-12). The NNSA Y-12 Site Office (Site
Office) is responsible for overseeing B&W Y-12, including its management of these
projects.
Due to the importance of the Recovery Act's investment in environmental protection, we
initiated this audit to determine whether Y-12 is effectively managing its environmental
cleanup activities funded by the Recovery Act. During the audit we reviewed three of
Y-12's seven EM Recovery Act funded projects, which accounted for $164 million of the
$216 million total funding. As of August 2010, Y-12 had awarded 428 subcontracts with a
total value of $39 million to support the three projects we reviewed. We analyzed nine of
these subcontracts valued at a total of $10 million.
2009 (Recovery Act) into law. Part of the Recovery Act's purpose, relevant to the
Department of Energy (Department), was to invest in environmental protection.
Accordingly, the Department's Oak Ridge Office of Environmental Management (EM)
received $216 million of Recovery Act funds to perform environmental cleanup activities at
the National Nuclear Security Administration's (NNSA) Y-12 National Security Complex
(Y-12). These funds were allocated to seven projects addressing material disposition,
deactivation and demolition, and remediation. Y-12 is managed and operated by Babcox
&Wilcox Y-12 Technical Services, LLC (B&W Y-12). The NNSA Y-12 Site Office (Site
Office) is responsible for overseeing B&W Y-12, including its management of these
projects.
Due to the importance of the Recovery Act's investment in environmental protection, we
initiated this audit to determine whether Y-12 is effectively managing its environmental
cleanup activities funded by the Recovery Act. During the audit we reviewed three of
Y-12's seven EM Recovery Act funded projects, which accounted for $164 million of the
$216 million total funding. As of August 2010, Y-12 had awarded 428 subcontracts with a
total value of $39 million to support the three projects we reviewed. We analyzed nine of
these subcontracts valued at a total of $10 million.
Management Alert on the State Energy Efficient Appliance Rebate Program
The Department of Energy's Weatherization Assistance Program under the American Recovery and Reinvestment Act for the City of Phoenix – Agreed-Upon Procedures
Management of the Plutonium Finishing Plant Closure Project
The Department of Energy's (Department) Richland Operations Office (Richland) awarded a contract, effective October 1, 2008, to CH2M HILL Plateau Remediation Company (CHPRC) to remediate the Hanford Site's Central Plateau. Part of the contract's scope includes completion of the Plutonium Finishing Plant (PFP) Closure Project – a major decontamination and demolition project of an industrial complex consisting of more than 60 buildings. CHPRC's contract included expectations to:
Provide safe and compliant storage of special nuclear material at PFP until it has been removed from the PFP complex;
Operate and maintain the PFP facilities and associated waste sites, structures, systems and equipment in a safe, compliant and energy-efficient manner;
Maintain radiological and access control to ensure personnel safety;
Remove special nuclear material from PFP and transport it to an assigned location;
Demolish PFP complex facilities to slab-on-grade condition; and,
Prepare, package, and disposition waste streams, as required.
Provide safe and compliant storage of special nuclear material at PFP until it has been removed from the PFP complex;
Operate and maintain the PFP facilities and associated waste sites, structures, systems and equipment in a safe, compliant and energy-efficient manner;
Maintain radiological and access control to ensure personnel safety;
Remove special nuclear material from PFP and transport it to an assigned location;
Demolish PFP complex facilities to slab-on-grade condition; and,
Prepare, package, and disposition waste streams, as required.
Selected Aspects of the Commonwealth of Pennsylvania's Efforts to Implement the American Recovery and Reinvestment Act Weatherization Assistance Program
The Department of Energy's (Department) Weatherization Assistance Program (Weatherization
Program) received $5 billion under the American Recovery and Reinvestment Act of 2009
(Recovery Act) to improve the energy efficiency of residences owned or occupied by low
income persons. Subsequently, the Department awarded a 3 year Weatherization Program grant
of $252 million to the Commonwealth of Pennsylvania (Pennsylvania). This grant provided
about a 10 fold increase over the $25.4 million in funds available to Pennsylvania for
weatherization in Fiscal Year (FY) 2009.
Program) received $5 billion under the American Recovery and Reinvestment Act of 2009
(Recovery Act) to improve the energy efficiency of residences owned or occupied by low
income persons. Subsequently, the Department awarded a 3 year Weatherization Program grant
of $252 million to the Commonwealth of Pennsylvania (Pennsylvania). This grant provided
about a 10 fold increase over the $25.4 million in funds available to Pennsylvania for
weatherization in Fiscal Year (FY) 2009.
The State of Illinois Weatherization Assistance Program
Management Controls over the Department of Energy's American Recovery and Reinvestment Act – Michigan State Energy Program
The Department of Energy's (Department) Office of Energy Efficiency and Renewable Energy
(EERE) provides grants to states, territories and the District of Columbia (states) to support their
energy priorities through the State Energy Program (SEP). Traditionally, SEP received $40 to
$50 million in annual appropriations. The American Recovery and Reinvestment Act of 2009
(Recovery Act) expanded the SEP by authorizing an additional $3.1 billion to states using the
existing distribution formula. EERE awarded the grants after reviewing state plans summarizing
activities for achieving SEP Recovery Act objectives, including preserving/creating jobs; saving
energy; increasing renewable energy sources; and, reducing greenhouse gas emissions. States
are encouraged to use these funds not only to support current energy projects but also to aid
sustainable programs that will provide lasting benefits. EERE program guidance emphasizes
that states are responsible for administering the SEP within each state, and requires each state to
implement sound internal controls over the use of Recovery Act funds.
(EERE) provides grants to states, territories and the District of Columbia (states) to support their
energy priorities through the State Energy Program (SEP). Traditionally, SEP received $40 to
$50 million in annual appropriations. The American Recovery and Reinvestment Act of 2009
(Recovery Act) expanded the SEP by authorizing an additional $3.1 billion to states using the
existing distribution formula. EERE awarded the grants after reviewing state plans summarizing
activities for achieving SEP Recovery Act objectives, including preserving/creating jobs; saving
energy; increasing renewable energy sources; and, reducing greenhouse gas emissions. States
are encouraged to use these funds not only to support current energy projects but also to aid
sustainable programs that will provide lasting benefits. EERE program guidance emphasizes
that states are responsible for administering the SEP within each state, and requires each state to
implement sound internal controls over the use of Recovery Act funds.