APPENDIX C

ES&H BUDGET PLAN AND RISK MANAGEMENT SUMMARY

FY99

INTRODUCTION

This plan was prepared in accordance with the FY99 guidance from EH (1/97) and ER (12/18/96). The process combined top-down guidance from the Department of Energy with bottom-up analysis and decision making by Fermilab ES&H professionals and line managers. This risk-based, resource-constrained management process is used by Fermilab to optimize available resources to manage ES&H risks. Using this approach, Laboratory management was able to determine that sufficient dollars are available under the current funding scenario to address all significant ES&H issues.

There are a total of eight ADSs associated with this plan: one core and seven compliance. This is less than a third of the number submitted last year. The reduction is primarily due to the combining of core activities into a single ADS as well as the closure of GPP-related ADSs. The consolidation of core activities was advised by the ER guidance.

Beginning in FY98, the funding source for Fermilabís waste management activities will be transferred from EM to ER. This is a year earlier than most of the DOE complex, and apparently stemmed from the Labís designation as a ìpilot.î Activities include routine waste collection, storage, and disposal as well as the evaluation and clean up of contaminated soil around the site. This will add nine FTEs and about $2M per year to plan costs.

RISK MANAGEMENT

This plan includes seven compliance ADSs to address a total of 585 net risk points. Most are associated with water protection or accelerator infrastructure.

Three ADSs primarily address some form of surface and/or groundwater protection: A97D0002 (Environmental restoration activities), A93D0086 (Monitoring well network), and A96D0004 (10 CFR 834 compliance). A97D0002 is an activity that will transfer from EM to ER in FY98 and involves investigation and/or remediation of soil contamination which presents a potental source of water contamination. Taken together, these three ADSs account for 358 of the net risk points.

Three accelerator infrastructure projects will address another 206 of the net risk points: A93D0084 (Accelerator Footprint fire protection upgrades), A93D0004 (Beam enclosure emergency lighting), and A94D0019 (Beams Division electrical compliance. The associated issues are relatively long-standing.

The single remaining ADS, A96D0002 (FCC fire protection projects), addresses noncompliance with an NFPA standard that is primarily directed toward property protection rather than ES&H.

All seven compliance ADSs are currently funded and in progress, and it is believed that they will adequately address associated risks. One ADS is scheduled for completion in FY98 (A93D0086), one in FY99 (A96D0002), one in FY00 (A94D0019), and three in FY02 (A97D0002, A93D0084, A96D0004). Completion of the final remaining ADS (A93D0004) may go beyond FY05.

Fermilab has no significant ES&H risks that will not be adequately addressed at the requested bugdet level. In particular, there are no unfunded or underfunded activities that are intended to address emerging issues or activities that represent good investments.

BUDGET ANALYSIS

This plan assumes that the mission of Fermilab will not change. Current information on funding for the Laboratory indicates that a flat funding profile, without inflationary increases, should be anticipated. Fermilab's projected total operating dollar budget from High Energy Physics (HEP) funds for FY97 through FY03 based on the FY98 Congressional Budget Request and the guidance in the FY99 Unified Field Budget Call is as follows:

Fiscal Year 97 98 99 00 01 02 03

Operating $M $164 $166 $166 $166 $166 $166 $166

Estimated costs for core activities have been developed based on input from line and budget organizations and compiled using OMB prescribed inflation factors.

All activities in this plan are designated as "direct-funded." This approach has the concurrence of DOE-FRMI, -CH, and -ER. As a single purpose laboratory, the determination of whether an ADS is funded from program funds or an indirect pool had often been unclear. In many instances, this requirement caused the Laboratory to develop duplicate ADSs for Lab-wide programs. This had created confusion for plan reviewers and did not properly represent the integrated nature of ES&H activities at Fermilab.

Also, in prior year submissions, the cost estimates of the direct funded ADSs included a charge for overhead. As the ADSs in the current plan include a mixture of activities from divisions and sections that were previously termed "direct" funded and "indirect" funded, it was determined that the inclusion of an overhead charge was inappropriate. All ES&H activities, whether previously contained in a direct funded ADS or an indirect funded ADS are included in this plan.

Beginning in FY98, the funding source for Fermilabís waste management activities will be transferred from EM to ER. Guidance in the Congressional Budget Request indicates that the total funding level will be $2.21M for FY98 inclusive of overhead. This is about $1.8M when overhead is removed. It was assumed that this level of funding will continue into future years, without inflationary increases, and is reflected in the Labwide fiscal year funding profile given above.

Cost estimates for the activities contained in the plan ( $M) are as follow:

Fiscal Year 97 98 99 00 01 02 03

Core $8.8 $10.5 $10.4 $10.8 $11.2 $11.6 $12.0

Upgrades $0.3 $1.4 $1.2 $ 1.0 $ 0.9 $ 0.6 $ 0.1

As part of the analysis of the plan, the Laboratory was instructed to determine the effect on ES&H activities of a 15% reduction in funding. It was assumed that a 15% reduction in operating funds would result in an equivalent reduction in the funds available for ES&H activities. If this were the case, there would not be sufficient funds to continue any upgrade activities, as well as some core ES&H activities, as they are currently structured. However, if this decrease in funding did occur, it is likely that significant changes would be made in the Laboratory's goals. At that time, core activities would be evaluated based on changes in mission and any necessary adjustments would be made.


PERFORMANCE SUMMARY

The following compliance/improvement ADSs have been closed out since submission of the ES&H Management Plan last year.

A93D0051 Secondary containment

A93D0058 Village sanitary sewer system upgrades

A94D0024 Labs 1 & 4 and Machine Shop fire protection project

A95D0003 Domestic water system backflow prevention

A95D0005 OSHA asbestos compliance

A95D0010 Traffic control and automatic gates

A95D0011 Wilson Hall Communications Center / EOC

A96D0001 Wilson Hall Ground Floor Training Center

A96D0003 ES&H performance initiatives

A96D0006 Monitoring well network - operating