Question. What were the costs to assess, study and close-out the 6,663 sites which required no remedial action?

Answer. The total costs incurred in conducting PAS, SIs and RI/ FSs at sites which have been closed out without any remedial action is estimated to be $138 million.

Question. Does DoD really believe that it can complete the Installation_Restoration Program by the year 2011 at a cost of $24.5 billion? Is it true that you paid a contractor $232,000 for this estimate, and then placed restrictions on the contractor so as not to predict a true estimate?

Answer. We believe that the $24.5 billion figure and 20 year program timeframe are reasonable and are our best projection at this time. Although the cost estimate report was prepared by a contractor, my office and the DoD components were heavily involved in developing the estimate. All assumptions were derived by consensus; we did not in any way pre-determine the final cost figure. The estimate was intended to be a long-range planning tool, not a programming or budgeting document.

Question. Has thought been given to establishing a multi-year account to fund DERP since most money is transferred to Services' O&M accounts (one-year) when more time may be needed and O&M is scored at a high outlay rate?

Answer. The Defense Environmental Restoration Program is currently funded with "no year" money from the Environmental Restoration, Defense appropriation. Additional flexibility in funding authority has not been needed.

NATIONAL DEFENSE STOCKPILE TRANSFER

Question. The fiscal year 1993 budget proposes to transfer $612 million to the Environmental Restoration, Defense appropriation. From where will these funds be transferred?

Answer. The National Defense Stockpile Transaction Fund. Question. By what mechanism will these funds be transferred? Answer. Approval has been requested in the Appropriations and Authorization Acts.

Question. Has legislation been submitted to effect such a transfer. If so, to whom and when?

Answer. Yes. In the normal DoD legislative proposals associated with the Appropriation and Authorization Act.

Question. Provide detailed information for the record on this $612 million transfer.

Answer. The detail is specified in Section 8055 of the President's Budget and corresponding language submitted for the Authorization Act.

Question. A new general provision (Section 8055) has been proposed which would: (1) provide the Department with authority to sell not to exceed $1 billion of material from the Stockpile in each fiscal year starting with FY 93; (2) provide the Department with authority to transfer the receipt from the sales to any appropriation to remain available for the same time and purpose as the appropriation to which transferred; (3) provide the Secretary of Defense the authority to impose a moratorium on the acquisition of new material; and (4) require that none of the unobligated balances

may be obligated or expended to finance any grant or contract to conduct research, development, test, and evaluation activities or develop or produce advanced materials, except as provided in advance in an appropriations act. How does Section 8055 interact with the transfer of $612 million?

Answer. The source (NDS) and authority for the transfer is documented in Section 8055. The $1 billion disposal authority requested is for sales and corresponds to the $612 million in actual cash that will be available for transfer during the fiscal year.

Question. What is the purpose behind this legislation?

Answer. The legislation seeks to reduce the unneccesary inventory in the National Defense Stockpile and to apply proceeds from the sale of this material support other DoD requirements.

Question. Explain the Department's strategy for the National Defense Stockpile.

Answer. The Department's strategy for the National Defense Stockpile (NDS) is to recommend to the Congress enactment of legislation that would authorize disposal of the almost $7 billion in inventories that are excess to requirements according to our 1992 NDS Requirements Report which we submitted to Congress. In addition, because it is highly likely that NDS requirements will decline further next year because of a continued reduction in national security threats related to the breakup of the Soviet Union, we are recommending a moratorium on NDS acquisitions until next year's NDS Requirement report is issued and reviewed by the Congress. Finally, as part of the Department's proposed National Defense Authorization bill, we have recommended reform and streamlining of the Strategic and Critical Materials Stock Piling Act, including elimination of the statutorily-mandated three year war scenario for NDS requirements planning.

Question. Provide for the record a justification to support each of these points. Explain how the Department will determine the appropriation(s) which will receive the receipts from sales.

Answer. The appropriations receiving receipts from sales will be determined in the budget process based upon the situation and requirements at that time. Authority for the transfer will be requested in the President's Budget for Congressional approval.

Question. Has legislation been submitted to the appropriate committees to effect these changes; or does the Department believe that this general provision is all that is required?

Answer. Appropriation and Authorization language has been proposed to allow the transfer of NDS funds. Additional legislation has been included in the DoD proposed amendments to the Strategic and Critical Stockpiling Act.

[CLERK'S NOTE.-End of questions submitted for the record.]