Hanford Site Land Transfer

May 2015

Official Use Only

Official Use Only – Pre-decisional Internal Working Document Not Subject to FOIA 2

Community Land Transfer Request

• In 2011, Community Reuse Organization (CRO) Tri-City Development Council (TRIDEC) requested transfer of 1,341 acres near Hanford Site southern boundary for economic development purposes.

• TRIDEC amended original request to add 300 acres previously requested for lease by Energy Northwest, for total request of 1,641 acres.

Official Use Only – Pre-decisional Internal Working Document Not Subject to FOIA 3

Community Land Transfer – Details

• TRIDEC requested lands under Title 10, part 770 of the Code of Federal Regulations (10 CFR part 770) - Transfer of Real Property at Defense Nuclear Facilities for Economic Development–at less than fair market value and with indemnification.

• Probable uses of warehousing and distribution; research and development; technology manufacturing; food processing; and “back office” (i.e. business services).

• Ultimately, TRIDEC would like to transfer ownership to a private entity or to one of its public agency partners (City of Richland, Port of Benton and Benton County).

Official Use Only – Pre-decisional Internal Working Document Not Subject to FOIA 4

National Defense Authorization Act of 2015

• Signed into law December 19, 2014.

• Directs DOE to transfer all rights, title, and interest of the United States of 1,341-acre and 300-acre parcels (1,641 acres) to TRIDEC by September 30, 2015.

• Allows DOE and TRIDEC to mutually agree to adjust boundaries of identified parcels.

• Provides conditional authority for DOE to convey property at less than fair market value.

• Satisfies notifications to Congress otherwise required for the land transfer.

• Requires written notification to Congress of any terms or conditions on the land transfer and rationale.

Official Use Only – Pre-decisional Internal Working Document Not Subject to FOIA 5

1,641 Acres to be Transferred

• May be transferred at less than fair market value to TRIDEC, with “reinvestment” clause as required by legislation.

• The real property requires infrastructure improvements to make it economically viable to develop.

• Conveyance at less than fair market value may “further the public policy objectives of the laws governing the downsizing of defense nuclear facilities” (10 CFR 770)

• TRIDEC expressed interest in future transfer of lands excluded from current conveyance

Official Use Only – Pre-decisional Internal Working Document Not Subject to FOIA 6

Required Regulatory Processes

• National Environmental Policy Act.

• National Historic Preservation Act, Section 106.• Archaeological /Tribal resources

• Historical /Cultural resources

• DOE Order 458.1, Radiation Protection of the Public and the Environment.

• Comprehensive Environmental Response, Compensation and Liability Act, Section 120(h).

• Modifying Hanford Facility RCRA Permit legal description.

• 10 CFR 770, Transfer of Real Property at Defense Nuclear Facilities for Economic Development.

Official Use Only – Pre-decisional Internal Working Document Not Subject to FOIA 7

Deed Restriction Language

Language is likely to address:• Protection of archaeological and cultural resources.

• Future discoveries of archaeological and cultural resources.

• Future owner’s responsibility to consult with SHPO.

Draft deed restriction language:• DOE is in consultation with SHPO and ACHP to develop the deed restriction

language.

Official Use Only – Pre-decisional Internal Working Document Not Subject to FOIA 8

Draft Deed Restrictions

• MOA stipulations to mitigate adverse effect to the Richland Irrigation Canal.• Possible mitigation actions resulting from NEPA and NHPA processes.• Tribal preferential deed restriction.• Protection of archeological and cultural resources.• Existing utility easements for private entities (City of Richland, Cascade Natural Gas, etc.)

within transferred land:– Electrical, natural gas, irrigation, street lights, rail road.

• Easements for ongoing DOE operations within transferred land:– Electrical utility, groundwater wells, roads, meteorological tower, air monitor, rail

shipments.• Prevention of impacts to nearby/adjacent operations and activities:

– Laser Interferometer Gravitational Wave Observatory (LIGO) and Pacific Northwest National Laboratory (PNNL).

• Land use restrictions:– No groundwater use or discharges and depth limitation for excavations.

Official Use Only – Pre-decisional Internal Working Document Not Subject to FOIA 9

CERCLA Covenant/Indemnification

• TRIDEC will receive a deed covenant under CERCLA 120(h), which ensures the U.S. Government is liable for any response or corrective action found necessary after the date of property transfer. CERCLA 120(h)(3)(A)(ii) states:– (I) all remedial action necessary to protect human health and the environment with

respect to any such substance remaining on the property has been taken before the date of such transfer, and

– (II) any additional remedial action found to be necessary after the date of such transfer shall be conducted by the United States; and

– (III) a clause granting the United States access to the property in any case in which remedial action or corrective action is found to be necessary after the date of such transfer.

• TRIDEC requests further indemnification under 10 CFR 770, which provides indemnification for transferee against any claim for injury to person or property that results from the release or threatened release of a hazardous substance, pollutant or contaminant as a result of DOE (or predecessor agency) activities at the defense nuclear facility.

• DOE-HQ policy decision required on whether or not TRIDEC can receive further indemnification under 10 CFR 770 after the land is transferred on September 30, 2015.

Official Use Only – Pre-decisional Internal Working Document Not Subject to FOIA 10

EPA and Washington State Dept. of Ecology Roles

EPA:

• Ensure compliance with CERCLA 120(h) for transfer of federal property.

• Review and concur on DOE’s documentation that land has either been cleaned up or is uncontaminated.

• Review and concur on applicable deed covenants for compliance with CERCLA 120(h).

Washington State Department of Ecology:

• Ensure compliance with RCRA while facilitating removal of lands from the Hanford Facility permit.

• Evaluate DOE’s application and approve permit modification to change legal description of the Hanford Facility.

Official Use Only – Pre-decisional Internal Working Document Not Subject to FOIA 11

Risks and DOE-HQ Decisions

Risks:

• Hanford Facility RCRA permit modification will likely extend beyond September 30, 2015.

• NEPA does not end in a finding of no significant impact (FONSI) and results in additional time to complete an EIS document.

• NHPA Section 106 MOA and development of mitigating stipulations could extend beyond the schedule.

• Tribal Nations may write a letter to the Secretary of Energy objecting to the transfer and/or pursue legal recourse.

DOE-HQ Decisions:

• DOE-HQ policy decision on if NEPA and other regulatory processes are not completed by September 30, 2015, can the land be transferred per the NDAA language or can these processes be completed after transfer.

• DOE-HQ policy decision required on whether or not TRIDEC can receive further indemnification under 10 CFR 770 after land is transferred on September 30, 2015.