department of defense agency financial report fiscal year 2012

Department of Defense Agency Financial Report for FY 2012
Environmental Liabilities and Disposal Liabilities Dollars in Millions
As of September 30 2012 2011
Environmental Disposal for Military Equipment/Weapons Programs
Nuclear Powered Military Equipment/Spent Nuclear Fuel $ 14,055.9 $ 13,637.3
Non-Nuclear Powered Military Equipment 36.4 36.4
Other Weapons Systems 146.0 161.0
Chemical Weapons Disposal Program
Chemical Demilitarization – Chemical Materials Agency (CMA) $ 3,691.1 $ 4,592.0
CAMD Demilitarization – Assembled Chemical Weapons Alternatives
(ACWA)
6,539.1 6,510.4
Total Environmental Liabilities $ 62,602.6 $ 64,823.1
Other Accrued Environmental Liabilities, Non-Base Realignment and Closure (BRAC), Other
primarily consists of remediation related to Formerly Utilized Sites Remedial Action Program
(FUSRAP). The Department is responsible for FUSRAP, which remediates radiological
contamination from the Department of Energy’s U.S. Atomic Energy and Weapons Program.
The unrecognized portion of the estimated total clean-up costs associated with General
Property, Plant, and Equipment (PP&E) is $3.2 billion for FY 2012. Not all components of the
Department are able to compile the necessary information for this disclosure, thus the
amount reported may not accurately reflect the Department’s total unrecognized costs
associated with General PP&E. The Department is implementing procedures to address
these deficiencies.
OTHER DISCLOSURES
Types of Environmental Liabilities and Disposal Liabilities Identified
The Department has clean up requirements for the Defense Environmental Restoration
Program (DERP) sites at active installations, Base Realignment and Closure installations,
Formerly Used Defense Sites, sites at active installations that are not covered by DERP,
weapon systems programs, and chemical weapons disposal programs. The weapons
systems program consists of chemical weapons disposal, nuclear powered aircraft carriers,
nuclear powered submarines, and other nuclear ships. All cleanup efforts are performed 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 weapon systems, and environmental costs related to BRAC actions that have taken
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Financial Information