The Idaho National Engineering and Environmental Laboratory (Laboratory) stores nearly 65,000 cubic meters of waste generated on site or brought to the State of Idaho (Idaho) from Department of Energy (DOE) sites across the country. Because Idaho was concerned that the State might become a "de facto" permanent repository, the Governor of Idaho sought and received an injunction from the Federal courts which prohibited future waste shipments to Idaho. The injunction also affected the Navy's shipment of spent nuclear fuel into the Laboratory. Due to concerns about the injunction's impact, DOE and the Navy negotiated with Idaho and signed the Idaho Settlement Agreement (Agreement) on October 17, 1995. The purpose of our audit was to determine whether it is in the best interest of the Government to defer processing the 3,100 cubic meters of waste until the new Treatment Facility can do so.