Department Of Defense Agency Financial Report 2007 - Section 2: Financial Information Page 55
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82Section 2: Financial Information
Department of Defense Agency Financial Report 2007
7
Environmental Disclosures – Line B represents the amount of changes in total cleanup costs due to changes in laws,
regulations, and/or technology. Not all components of the Department disclose changes in total cleanup costs due to
changes in laws, regulations, and/or technology. The Department is implementing procedures to address this deficiency.
Environmental Disclosures – Line C represents the portion of changes in estimated costs due to changes in laws and
technology that is related to prior periods. Not all components of the Department disclose the amount of change in estimates
for costs due to changes in laws and technology relating to prior periods. The Department is implementing procedures to
address this deficiency.
Other Disclosures
Types of Environmental Liabilities and Disposal Liabilities Identified
The Department has cleanup requirements for DERP sites at active installations, BRAC installations, Formerly Used Defense
Sites, sites at active installations that are not covered by DERP, weapons systems programs, and chemical weapons disposal
programs. The weapons systems programs consists of chemical weapons disposal, nuclear powered aircraft carriers,
nuclear powered submarines, and other nuclear ships. All cleanup is done in coordination with regulatory agencies, other
responsible parties, and current property owners.
Applicable Laws and Regulations for Cleanup Requirements
The Department is required to clean up contamination resulting from past waste disposal practices, leaks, spills, and other
past activity that created a public health or environmental risk. The Department accomplishes this effort in coordination
with regulatory agencies and, if applicable, other responsible parties and current property owners. The Department is also
required to recognize closure and post-closure costs for its General PP&E and environmental corrective action costs for
current operations. Each of the Department’s major reporting entities is responsible for tracking and reporting all required
environmental information related to environmental restoration costs, other accrued environmental costs, disposal costs of
weapons systems, and environmental costs related to BRAC actions that have taken place.
The Department follows the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) and the
Superfund Amendment and Reauthorization Act to clean up DERP-eligible contamination. Contamination clean up that
is not eligible for DERP is performed in accordance with the Resource Conservation and Recovery Act (RCRA) or other
applicable federal or state laws. The CERCLA and RCRA require the Department to clean up contamination in coordination
with regulatory agencies, current owners of property damaged by the Department, and third parties that have a partial
responsibility for the environmental restoration. Failure to comply with agreements and legal mandates will put the
Department at risk of incurring fines and penalties.
The cleanup requirements for nuclear-powered aircraft carriers, submarines, and other nuclear ships are based on laws that
affect the Department’s conduct of environmental policy and regulations. The Atomic Energy Act of 1954, as amended,
assures the proper management of source, special nuclear, and byproduct materiel. As in all cases with nuclear power,
the Department coordinates actions with the Department of Energy. The Nuclear Waste Policy Act of 1982 requires all
owners and generators of high-level nuclear waste and spent nuclear fuel to pay their respective shares of the full cost of
the program. Finally, the Low Level Radioactive Waste Policy Amendments Act of 1986 provides for the safe and efficient
management of low-level radioactive waste.
The Chemical Weapons Disposal Program is based on FY 1986 National Defense Authorization Act (PL 99-145, as amended
by subsequent acts) that directed the Department to destroy the unitary chemical stockpile by April 29, 2004. The current
guidelines for destruction are based on the Chemical Weapons Convention Treaty. The United States ratified the Treaty in
April 1997, requiring the stockpile of chemical weapons to be destroyed by April 2007, according to the terms outlined. The
Army, as Executive Agent within the Department, provides policy, direction, and oversight for both the Chemical Stockpile
Program and the Nonstockpile Chemical Materiel Project. As such, the Army is responsible for the safe and economical
disposal of the U.S. stockpile of lethal and incapacitating chemical warfare agents and munitions.
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