During the Cold War, the United States and the Soviet Union built a total of 27 nuclear reactors to produce weapons-grade plutonium for nuclear weapons. Although all nuclear reactors produce plutonium as a byproduct of their operation, plutonium production reactors are specifically designed to produce a concentrated isotope of plutonium that is more readily used in nuclear weapons. (See app. III for additional information about the plutonium production nuclear fuel cycle.) The United States constructed 14 plutonium production reactors of which only one, the N-reactor at Hanford, Washington, produced electricity in addition to weapons-grade plutonium. This reactor was shut down in 1987 for safety upgrades following the Chernobyl accident and never resumed operation. The United States had shut down all of its plutonium production reactors by 1989. The Soviet Union built 13 plutonium production reactors, and all but 3 have been shut down. (For a time line showing the history of these reactors and efforts to bring about their closure, see app. IV.) The three remaining reactors began operating between 1964 and 1968, and U.S. and Russian nuclear experts told us that these reactors are among the most dangerous in the world due to their age and poor design. In addition, the reactors lack safety features such as a containment structure, which is generally a steel- lined concrete, dome-like structure that serves as a barrier to the release of radioactive material during an accident. The lack of containment presents a greater risk for the two reactors at Seversk because, unlike the reactor at Zheleznogorsk, which is located inside a mountain, the Seversk reactors are above ground. Figure 1 shows the location of the Russian reactors. According to Russian officials in Seversk, the two reactors currently provide about 70 percent of the heat and electricity for the city’s residents. However, the reactors have the capacity to produce more heat and electricity than is needed to meet the demands of Seversk’s residents, and both heat and electricity have been sold to the nearby city of Tomsk since 1973. Officials in Zheleznogorsk told us that the reactor there provides 60 percent of the city’s heat and 98 percent of its electricity. The amounts of replacement heat and electricity that the United States and Russia agreed to in the March 2003 reactor shutdown agreement are less than what is currently provided by the reactors, but Russian officials from both cities told us the agreed upon amounts would be sufficient to meet their needs once the reactors are shut down. Commissioned in the mid-1960s, the three reactors have continued to operate although, according to Russian officials, they were originally designed to have an operating life of 20 years. Officials from Russia’s nuclear regulatory agency, Gosatomnadzor, told us that since the 1960s, there have been at least three serious accidents and several minor incidents at one of the Seversk reactors. For example, in 1966, a coolant pipe ruptured, resulting in the release of contaminants into the atmosphere near the reactor site. Subsequently, the same reactor experienced a partial meltdown that damaged part of the core. Finally, in 1999, the reactor experienced another serious incident when spent fuel was ejected onto the top of the reactor. Since the program was transferred from DOD to DOE in December 2002, DOE (1) has developed an overall program plan to manage the construction of the fossil fuel plants, (2) has selected two U.S. contractors to oversee work on the replacement fossil fuel plants, and (3) is working with its U.S. contractors to review design and construction plans for the plants. DOE plans to complete refurbishment of the plant in Seversk by 2008 and construction of the plant in Zheleznogorsk by 2011. However, U.S. and Russian officials expressed concern that the large number of U.S. and Russian organizations, 17, involved in the overall management of the program makes coordination difficult and has led to delays. Additionally, DOE and U.S. contractor officials told us that the primary Russian contractor, Rosatomstroi, has not previously worked with U.S. contractors on large-scale construction projects and currently lacks enough staff to effectively implement its part of the program, overseeing the Russian subcontractors, which could lead to delays. DOE has developed an overall management plan for its program that (1) emphasizes detailed project planning, (2) seeks to identify project risks, and (3) develops alternative strategies to reduce risks. The program management elements in DOE’s plan are detailed in DOE order 413.3, which the department uses for construction projects and the acquisition of capital assets in the United States. Under DOE order 413.3, the program will move through five critical decision points, the major stages of design and construction, upon the approval of DOE’s Deputy Secretary. These critical decisions are formal determinations that allow the project to proceed to the next phase and commit additional resources. Critical decisions are required during the planning and execution of a project, for example, before beginning conceptual design, before starting construction, and when beginning operations. (For more detailed information about DOE’s management plan, see app. V.) DOE has also selected two U.S. contractors to oversee work on the two plants. In mid-2003, DOE awarded contracts to (1) Washington Group International (WGI) to oversee Russia’s refurbishment of an existing fossil fuel plant at Seversk and (2) Raytheon Technical Services (Raytheon) to oversee Russia’s construction of a new fossil fuel plant at Zheleznogorsk. These contracts cover the preliminary design phase of the projects. DOE plans to evaluate the performance of both contractors at the conclusion of the preliminary design phase. According to DOE, an extension or new contract would be required to cover the final design phase, construction, and closeout phases. In addition, DOE employs the National Energy Technology Laboratory, a DOE national laboratory that has historically focused on the development of advanced technologies related to coal and natural gas, to accomplish various management support tasks. Finally, DOE, together with its contractors, is reviewing the detailed design and construction plans that Russian subcontractors are developing for the fossil fuel plants at Seversk and Zheleznogorsk. At Seversk, DOE plans to refurbish an existing fossil fuel plant, which was built in 1953. To meet the heat and electricity production levels specified in the March 2003 agreement, DOE plans to replace one boiler (boilers burn coal to produce heat and steam); upgrade the plant’s 12 existing boilers to improve their efficiency and performance; and replace three turbine-generators, which use the steam produced by the boilers to generate electricity. (See app. VI for more information about the operation of coal-fired power plants.) In addition, DOE plans to improve the infrastructure at the plant by, among other things, enhancing the coal-handling system and improving the plant’s water chemistry system. DOE plans to complete the refurbishment of the fossil fuel plant at Seversk by 2008. At Zheleznogorsk, DOE plans to construct a new fossil fuel power plant that is powered by coal to meet the heat and electricity production levels specified in the March 2003 agreement. This new plant is scheduled for completion in 2011. Since the plants are being built to Russian standards, DOE plans to use Russian environmental, safety, and health standards in the construction of the fossil fuel plants rather than U.S. standards. However, in addition to satisfying all Russian regulations, DOE’s contractors are responsible for identifying potential environmental concerns resulting from emissions at the plants and comparing the Russian environmental standards with applicable international standards. We identified 17 U.S. and Russian organizations that are participating in the program. In total, these organizations have a variety of roles and responsibilities, including setting policy and direction, providing technical assistance, and managing and overseeing the program. In addition, there are numerous Russian subcontractors who will be responsible for supplying, manufacturing, or installing equipment for the replacement fossil fuel plants. Specifically, in addition to DOE, the U.S. organizations participating in the program include the following: The National Nuclear Security Administration, a separately organized agency within DOE that oversees the program; Washington Group International is DOE’s primary integrating contractor for refurbishing the Seversk replacement fossil fuel plant; Raytheon Technical Services is DOE’s primary integrating contractor for building the Zheleznogorsk plant. Raytheon has subcontracted some of its work to the U.S. construction firm Fluor; The National Energy Technology Laboratory performs various management support tasks for DOE and has two primary subcontractors, Energy and Environmental Solutions and Concurrent Technologies Corporation, which provide management support to DOE’s program. Additionally, Concurrent Technologies Corporation subcontracts some work on the program to Parsons; and PNNL had been the lead contractor for DOE’s planned Nuclear Safety Upgrades Project. Though this project was cancelled in February 2004, PNNL will still have limited participation in developing a reactor shutdown plan.