Defense Environment Alert

an exclusive biweekly report on defense policies for cleanup, compliance and pollution prevention

Vol. 15, No. 4

February 20, 2007

DOD FUNDING CUTS COULD UNDERMINE CHEM DEMIL TARGETS, ACTIVIST SAYS

Defense Department plans to zero out funds for the department's Cooperative Threat Reduction (CTR) chemical demilitarization program, which seeks to destroy chemical weapons in Russia, could hamper Russia's efforts to meet a 2012 international treaty deadline. The action could reinforce Russian fears that such funding decisions may help provide cover for the United States' own delays in meeting its treaty obligations, an environmentalist familiar with the project says.

According to DOD's budget request for fiscal year 2008, the department is not seeking new funds for the CTR chemical demilitarization-Russia program, despite unfinished work on a key $1 billion-plus demilitarization project it was funding, according to the environmentalist. The CTR program tries to stem the proliferation threat from Soviet-legacy weapons of mass destruction, including its chemical weapons stockpile.

The decision could further delay Russia's effort to comply with a 2012 deadline for destroying chemical weapons as required by the Chemical Weapons Convention (CWC), the source says. The funding cuts will "clearly delay Russia from finishing facility construction," the source says.

Russia is further behind than the United States in meeting that deadline, but, unlike the United States, it has not conceded it will miss the final destruction date. It could also underscore growing trouble in US-Russian relations, suggesting that the two countries are unable to cooperate even on issues of significant global importance, the source says.

In another sign of trouble on that front, Russian President Vladimir Putin earlier this month publicly criticized the United States' foreign policy, charging that the U.S. has created the "world of one master, one sovereign," in which "nobody feels secure anymore." He said that the U.S. policy leads to an arms race and the "almost uncontained use of force ... is plunging the world into an abyss of permanent conflicts."

Through FY07, the CTR program has put $1.039 billion toward construction of a major nerve agent destruction facility in Shchuch'ye, Russia, to destroy one of its largest chemical weapons stockpiles, according to the environmental source. While the CTR program estimated several years ago that the construction project would cost $1.039 billion, estimates have now increased another $400 million to $500 million, but DOD appears to be capping the program at previously estimated levels, the source says.

"FY 2007 funding will complete DoD's assistance for the Chemical Weapons Destruction Facility," the budget document says. In FY07, the CTR program funded chemical weapons destruction in Russia at $42.7 million, and in FY06 at $108.5 million. It lists no funding for the program in its FY08 and FY09 budget estimates. The budget document is available on InsideEPA.com. See page 2 for details.

The installation of equipment at the Shchuch'ye facility has suffered delays after the U.S. program rejected bids from contractors it believes priced the work at cost levels considered too high, according to the environmentalist and a Government Accountability Office report issued last year. These recent disagreements have delayed the construction schedule by two years, the source says. The budget document says the existing FY07 funds will "Complete equipment installation assistance; Complete systemization of installed [Chemical Weapons Destruction Facility (CWDF)] equipment; Complete training program for CWDF operating personnel; Facilitate Transfer of Custody of facility to Russia; and Provide for technical support services and contractor administrative and advisory support."

The environmental source notes that there has been much "finger pointing" between Russia and the United States over delays and costs with the program. However, the source says the dilemma over the project poses a "question of homeland security for us" because it leaves chemical weapons in place in one of the largest chemical weapons stockpiles in the world, which is located in a volatile region. This source is hopeful that the Democratic-led Congress will look into the issue.

The budget document signals that the CTR program may point its resources to efforts with the most cooperative partner countries. It says that as part of the program's plan to be effective, it must receive cooperation from other countries it is aiding. "Thus, if a country is not cooperative in developing or implementing a CTR threat reduction project, the law permits the CTR Program to shift its resources to another country or to another CTR program area after notification to Congress."

Congressional staff could not be reached for comment on the CTR budget decision.

Defense Department spokespersons did not respond by press time to questions on the issue.

Meanwhile, the U.S. chemical weapons demilitarization budget request for FY08 tops out at nearly $1.5 billion, excluding military construction costs, according to a DOD budget document on chemical agents and munitions destruction for FY08 and FY09 released earlier this month. That is up from the FY07 budget of $1.272 billion.

The $1.456 billion for the program in FY08 would break out as: $1.198 billion for operations and maintenance; $36.426 million for procurement, which would remain available until 2010; and $221.212 million for research, development, test and evaluation (RDT&E). Of these RDT&E funds, $211.190 million would go to the Assembled Chemical Weapons Alternatives (ACWA) program, for funding through 2009. And at least $124.618 million would go to the Chemical Stockpile Emergency Preparedness Program, which is a joint effort between the Army and the Department of Homeland Security to ensure that communities near chemical weapons stockpile sites are protected in the case of an accidental release of agent. DOD recently signaled budget constraints were forcing the department to stretch out the cost and schedule for destruction of chemical weapons at its two ACWA sites, but that schedules at the remaining five stockpile sites were not being revised due to the budget constraints (Defense Environment Alert, Jan. 23, pl4).

The budget document also lists budget estimates for FY09. The overall budget number for chemical demilitarization in FY09, excluding military construction, is estimated at $1.434 billion. This would break down into: $1.160 billion for operation and maintenance, of which at least $114.951 million would go to CSEPP; $209.561 million for research and development; and $64.509 million for procurement.

The budget document also contains a program assessment, labeling the chemical demilitarization program's performance as "adequate." It says that all CWC treaty milestones have been reached so far, that it has "an excellent safety record," and has goals aimed at destroying the entire U.S. chemical weapons stockpile as close as possible to 2012. The United States, however, has conceded it will not make the 2012 deadline, and citing budget constraints, recently released information indicating its last stockpile site will not be fully destroyed until 2023.

The budget document lists three actions it is taking to improve the program's performance. A citizen activist who closely follows the program says these actions - speeding disposal of secondary waste by looking to off-site treatment and other alternatives, taking risk management measures, and putting in place performance measures - are not new.