DOE’s environmental liability grows 2%, report says

The Department of Energy’s environmental and disposal liabilities grew by $11 billion to $545 billion at the end of fiscal 2024, according to a December financial report.

That is up about 2% from $534 billion at the end of fiscal 2023, according to DOE’s annual financial report released Dec. 12.

“The increase is primarily due to modifications of liability estimates driven by changes in technical approach, scope of activities, regulatory and legal changes, and inflation adjustments,” according to the report. “In addition, the department’s contingent liability increased for spent nuclear fuel this fiscal year.”

The DOE report, audited by accounting firm KPMG, cited “a material weakness for internal controls related to financial reporting over environmental liability estimates” at the Portsmouth Paducah Project Office. The auditor wants to see this cleaned up during fiscal 2025.

At the Paducah Site, the state of Kentucky has said it wants a “tolling” agreement with DOE that could extend the statute of limitations for state claims for damage to natural resources like groundwater, according to the report. 

Kentucky had not sought such an arrangement as of Sept. 30, 2024. “It is possible that DOE will be liable for some natural resource damages at this site,” according to the report. “DOE is unable to prepare an estimate of such damages and has not included a provision for damages in the consolidated financial statement.”

As of October 2024, DOE had still not fully implemented all recommendations made by the Government Accountability Office in a December 2019 report calling for better cost controls at the former uranium enrichment plants.

DOE’s total liabilities for fiscal 2024 were $704 billion, compared with $685 billion for fiscal 2023, an increase of $19 billion, or 3%. The $11-billion rise in environmental cleanup-related liability accounted for the biggest chunk of the increase.