[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[S. 2514 Public Print (PP)]

                             June 27, 2002

                    Ordered to be printed as passed

  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
107th CONGRESS
  2d Session
                                S. 2514

_______________________________________________________________________

                                 AN ACT


 
     To authorize appropriations for fiscal year 2003 for military 
activities of the Department of Defense, for military construction, and 
   for defense activities of the Department of Energy, to prescribe 
personnel strengths for such fiscal year for the Armed Forces, and for 
                            other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``National Defense Authorization Act 
for Fiscal Year 2003''.

SEC. 2. ORGANIZATION OF ACT INTO DIVISIONS; TABLE OF CONTENTS.

    (a) Divisions.--This Act is organized into three divisions as 
follows:
            (1) Division A--Department of Defense Authorizations.
            (2) Division B--Military Construction Authorizations.
            (3) Division C--Department of Energy National Security 
        Authorizations and Other Authorizations.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title.
Sec. 2. Organization of Act into divisions; table of contents.
Sec. 3. Congressional defense committees defined.
            DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATIONS

                          TITLE I--PROCUREMENT

              Subtitle A--Authorization of Appropriations

Sec. 101. Army.
Sec. 102. Navy and Marine Corps.
Sec. 103. Air Force.
Sec. 104. Defense-wide activities.
Sec. 105. Defense Inspector General.
Sec. 106. Chemical agents and munitions destruction, defense.
Sec. 107. Defense health programs.
                       Subtitle B--Army Programs

Sec. 111. Pilot program on sales of manufactured articles and services 
                            of certain Army industrial facilities 
                            without regard to availability from 
                            domestic sources.
                       Subtitle C--Navy Programs

Sec. 121. Integrated bridge system.
Sec. 122. Extension of multiyear procurement authority for DDG-51 class 
                            destroyers.
Sec. 123. Maintenance of scope of cruiser conversion of Ticonderoga 
                            class AEGIS cruisers.
Sec. 124. Marine Corps live fire range improvements.
                     Subtitle D--Air Force Programs

Sec. 131. C-130J aircraft program.
Sec. 132. Pathfinder programs.
Sec. 133. Oversight of acquisition for defense space programs.
Sec. 134. Leasing of tanker aircraft.
Sec. 135. Compass Call program.
Sec. 136. Sense of Congress regarding assured access to space.
Sec. 137. Mobile emergency broadband system.
         TITLE II--RESEARCH, DEVELOPMENT, TEST, AND EVALUATION

              Subtitle A--Authorization of Appropriations

Sec. 201. Authorization of appropriations.
Sec. 202. Amount for science and technology.
Sec. 203. Defense health programs.
    Subtitle B--Program Requirements, Restrictions, and Limitations

Sec. 211. Basic seismic research program for support of national 
                            requirements for monitoring nuclear 
                            explosions.
Sec. 212. Advanced SEAL Delivery System.
Sec. 213. Army experimentation program regarding design of the 
                            objective force.
Sec. 214. Reallocation of amount available for indirect fire programs.
Sec. 215. Laser welding and cutting demonstration.
Sec. 216. Analysis of emerging threats.
Sec. 217. Prohibition on transfer of Medical Free Electron Laser 
                            program.
Sec. 218. Demonstration of renewable energy use.
Sec. 219A. Radar power technology for the Army.
Sec. 219B. Critical infrastructure protection.
Sec. 219C. Theater Aerospace Command and Control Simulation Facility 
                            upgrades.
Sec. 219D. DDG optimized manning initiative.
Sec. 219E. Agroterrorist attacks.
Sec. 219F. Very high speed support vessel for the Army.
Sec. 219G. Full-scale high-speed permanent magnet generator.
Sec. 219H. Aviation-shipboard information technology initiative.
Sec. 219I. Aerospace Relay Mirror System (ARMS) Demonstration.
Sec. 219J. Littoral ship program.
                  Subtitle C--Missile Defense Programs

Sec. 221. Annual operational assessments and reviews of ballistic 
                            missile defense program.
Sec. 222. Report on Midcourse Defense program.
Sec. 223. Report on Air-based Boost program.
Sec. 224. Report on Theater High Altitude Area Defense program.
Sec. 225. References to new name for Ballistic Missile Defense 
                            Organization.
Sec. 226. Limitation on use of funds for nuclear armed interceptors.
Sec. 227. Reports on flight testing of Ground-based Midcourse national 
                            missile defense system.
   Subtitle D--Improved Management of Department of Defense Test and 
                         Evaluation Facilities

Sec. 231. Department of Defense Test and Evaluation Resource 
                            Enterprise.
Sec. 232. Transfer of testing funds from program accounts to 
                            infrastructure accounts.
Sec. 233. Increased investment in test and evaluation facilities.
Sec. 234. Uniform financial management system for Department of Defense 
                            test and evaluation facilities.
Sec. 235. Test and evaluation workforce improvements.
Sec. 236. Compliance with testing requirements.
Sec. 237. Report on implementation of Defense Science Board 
                            recommendations.
                       Subtitle E--Other Matters

Sec. 241. Pilot programs for revitalizing Department of Defense 
                            laboratories.
Sec. 242. Technology transition initiative.
Sec. 243. Encouragement of small businesses and nontraditional defense 
                            contractors to submit proposals potentially 
                            beneficial for combating terrorism.
Sec. 244. Vehicle fuel cell program.
Sec. 245. Defense nanotechnology research and development program.
Sec. 246. Activities and assessment of the Defense Experimental Program 
                            to Stimulate Competitive Research.
Sec. 247. Four-year extension of authority of DARPA to award prizes for 
                            advanced technology achievements.
                  TITLE III--OPERATION AND MAINTENANCE

              Subtitle A--Authorization of Appropriations

Sec. 301. Operation and maintenance funding.
Sec. 302. Working capital funds.
Sec. 303. Armed Forces Retirement Home.
Sec. 304. Range Enhancement Initiative Fund.
Sec. 305. Navy Pilot Human Resources Call Center, Cutler, Maine.
Sec. 306. National Army Museum, Fort Belvoir, Virginia.
Sec. 307. Disposal of obsolete vessels of the National Defense Reserve 
                            Fleet.
                  Subtitle B--Environmental Provisions

Sec. 311. Enhancement of authority on cooperative agreements for 
                            environmental purposes.
Sec. 312. Modification of authority to carry out construction projects 
                            for environmental responses.
Sec. 313. Increased procurement of environmentally preferable products.
Sec. 314. Cleanup of unexploded ordnance on Kaho'olawe Island, Hawaii.
               Subtitle C--Defense Dependents' Education

Sec. 331. Assistance to local educational agencies that benefit 
                            dependents of members of the Armed Forces 
                            and Department of Defense civilian 
                            employees.
Sec. 332. Impact aid for children with severe disabilities.
Sec. 333. Options for funding dependent summer school programs.
Sec. 334. Comptroller General study of adequacy of compensation 
                            provided for teachers in the Department of 
                            Defense Overseas Dependents' Schools.
                       Subtitle D--Other Matters

Sec. 341. Use of humanitarian and civic assistance funds for reserve 
                            component members of Special Operations 
                            Command engaged in activities relating to 
                            clearance of landmines.
Sec. 342. Calculation of five-year period of limitation for Navy-Marine 
                            Corps Intranet contract.
Sec. 343. Reimbursement for reserve component intelligence support.
Sec. 344. Rebate agreements under the special supplemental food 
                            program.
Sec. 345. Logistics support and services for weapon systems 
                            contractors.
Sec. 346. Continuation of Arsenal support program initiative.
Sec. 347. Two-year extension of authority of the Secretary of Defense 
                            to engage in commercial activities as 
                            security for intelligence collection 
                            activities abroad.
Sec. 348. Installation and connection policy and procedures regarding 
                            Defense Switch Network.
Sec. 349. Engineering study and environmental analysis of road 
                            modifications in vicinity of Fort Belvoir, 
                            Virginia.
Sec. 350. Extension of work safety demonstration program.
Sec. 351. Lift support for mine warfare ships and other vessels.
Sec. 352. Navy data conversion activities.
              TITLE IV--MILITARY PERSONNEL AUTHORIZATIONS

                       Subtitle A--Active Forces

Sec. 401. End strengths for active forces.
Sec. 402. Authority to increase strength and grade limitations to 
                            account for reserve component members on 
                            active duty in support of a contingency 
                            operation.
Sec. 403. Increased allowance for number of Marine Corps general 
                            officers on active duty in grades above 
                            major general.
Sec. 404. Increase in authorized strengths for Marine Corps officers on 
                            active duty in the grade of colonel.
                       Subtitle B--Reserve Forces

Sec. 411. End strengths for Selected Reserve.
Sec. 412. End strengths for Reserves on active duty in support of the 
                            reserves.
Sec. 413. End strengths for military technicians (dual status).
Sec. 414. Fiscal year 2003 limitations on non-dual status technicians.
              Subtitle C--Authorization of Appropriations

Sec. 421. Authorization of appropriations for military personnel.
                   TITLE V--MILITARY PERSONNEL POLICY

                  Subtitle A--Officer Personnel Policy

Sec. 501. Extension of certain requirements and exclusions applicable 
                            to service of general and flag officers on 
                            active duty in certain joint duty 
                            assignments.
Sec. 502. Extension of authority to waive requirement for significant 
                            joint duty experience for appointment as a 
                            chief of a reserve component or a National 
                            Guard director.
Sec. 503. Repeal of limitation on authority to grant certain officers a 
                            waiver of required sequence for joint 
                            professional military education and joint 
                            duty assignment.
Sec. 504. Extension of temporary authority for recall of retired 
                            aviators.
Sec. 505. Increased grade for heads of nurse corps.
Sec. 506. Reinstatement of authority to reduce service requirement for 
                            retirement in grades above O-4.
             Subtitle B--Reserve Component Personnel Policy

Sec. 511. Time for commencement of initial period of active duty for 
                            training upon enlistment in reserve 
                            component.
Sec. 512. Authority for limited extension of medical deferment of 
                            mandatory retirement or separation of 
                            reserve component officer.
Sec. 513. Repeal of prohibition on use of Air Force Reserve AGR 
                            personnel for Air Force base security 
                            functions.
                   Subtitle C--Education and Training

Sec. 521. Increase in authorized strengths for the service academies.
           Subtitle D--Decorations, Awards, and Commendations

Sec. 531. Waiver of time limitations for award of certain decorations 
                            to certain persons.
Sec. 532. Korea Defense Service Medal.
                  Subtitle E--National Call to Service

Sec. 541. Enlistment incentives for pursuit of skills to facilitate 
                            national service.
Sec. 542. Military recruiter access to institutions of higher 
                            education.
                       Subtitle F--Other Matters

Sec. 551. Biennial surveys on racial, ethnic, and gender issues.
Sec. 552. Leave required to be taken pending review of a recommendation 
                            for removal by a board of inquiry.
Sec. 553. Stipend for participation in funeral honors details.
Sec. 554. Wear of abayas by female members of the Armed Forces in Saudi 
                            Arabia.
          TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS

                     Subtitle A--Pay and Allowances

Sec. 601. Increase in basic pay for fiscal year 2003.
Sec. 602. Rate of basic allowance for subsistence for enlisted 
                            personnel occupying single Government 
                            quarters without adequate availability of 
                            meals.
Sec. 603. Basic allowance for housing in cases of low-cost or no-cost 
                            moves.
Sec. 604. Temporary authority for higher rates of partial basic 
                            allowance for housing for certain members 
                            assigned to housing under alternative 
                            authority for acquisition and improvement 
                            of military housing.
           Subtitle B--Bonuses and Special and Incentive Pays

Sec. 611. One-year extension of certain bonus and special pay 
                            authorities for reserve forces.
Sec. 612. One-year extension of certain bonus and special pay 
                            authorities for certain health care 
                            professionals.
Sec. 613. One-year extension of special pay and bonus authorities for 
                            nuclear officers.
Sec. 614. One-year extension of other bonus and special pay 
                            authorities.
Sec. 615. Increased maximum amount payable as multiyear retention bonus 
                            for medical officers of the Armed Forces.
Sec. 616. Increased maximum amount payable as incentive special pay for 
                            medical officers of the Armed Forces.
Sec. 617. Assignment incentive pay.
Sec. 618. Increased maximum amounts for prior service enlistment bonus.
            Subtitle C--Travel and Transportation Allowances

Sec. 631. Deferral of travel in connection with leave between 
                            consecutive overseas tours.
Sec. 632. Transportation of motor vehicles for members reported 
                            missing.
Sec. 633. Destinations authorized for Government paid transportation of 
                            enlisted personnel for rest and 
                            recuperation upon extending duty at 
                            designated overseas locations.
Sec. 634. Vehicle storage in lieu of transportation to certain areas of 
                            the United States outside continental 
                            United States.
          Subtitle D--Retirement and Survivor Benefit Matters

Sec. 641. Payment of retired pay and compensation to disabled military 
                            retirees.
Sec. 642. Increased retired pay for enlisted Reserves credited with 
                            extraordinary heroism.
Sec. 643. Expanded scope of authority to waive time limitations on 
                            claims for military personnel benefits.
                       Subtitle E--Other Matters

Sec. 651. Additional authority to provide assistance for families of 
                            members of the Armed Forces.
Sec. 652. Time limitation for use of Montgomery GI Bill entitlement by 
                            members of the Selected Reserve.
Sec. 653. Status of obligation to refund educational assistance upon 
                            failure to participate satisfactorily in 
                            Selected Reserve.
Sec. 654. Prohibition on acceptance of honoraria by personnel at 
                            certain Department of Defense schools.
Sec. 655. Rate of educational assistance under Montgomery GI Bill of 
                            dependents transferred entitlement by 
                            members of the Armed Forces with critical 
                            skills.
Sec. 656. Payment of interest on student loans.
Sec. 657. Modification of amount of back pay for members of Navy and 
                            Marine Corps selected for promotion while 
                            interned as prisoners of war during World 
                            War II to take into account changes in 
                            Consumer Price Index.
                         TITLE VII--HEALTH CARE

Sec. 701. Eligibility of surviving dependents for TRICARE dental 
                            program benefits after discontinuance of 
                            former enrollment.
Sec. 702. Advance authorization for inpatient mental health services.
Sec. 703. Continued TRICARE eligibility of dependents residing at 
                            remote locations after departure of 
                            sponsors for unaccompanied assignments.
Sec. 704. Approval of medicare providers as TRICARE providers.
Sec. 705. Claims information.
Sec. 706. Department of Defense Medicare-Eligible Retiree Health Care 
                            Fund.
Sec. 707. Technical corrections relating to transitional health care 
                            for members separated from active duty.
Sec. 708. Extension of temporary authority for entering into personal 
                            services contracts for the performance of 
                            health care responsibilities for the Armed 
                            Forces at locations other than military 
                            medical treatment facilities.
Sec. 709. Restoration of previous policy regarding restrictions on use 
                            of Department of Defense medical 
                            facilities.
Sec. 710. Health care under TRICARE for TRICARE beneficiaries receiving 
                            medical care as veterans from the 
                            Department of Veterans Affairs.
  TITLE VIII--ACQUISITION POLICY, ACQUISITION MANAGEMENT, AND RELATED 
                                MATTERS

             Subtitle A--Major Defense Acquisition Programs

Sec. 801. Buy-to-budget acquisition of end items.
Sec. 802. Report to Congress on incremental acquisition of major 
                            systems.
Sec. 803. Pilot program for spiral development of major systems.
Sec. 804. Improvement of software acquisition processes.
Sec. 805. Independent technology readiness assessments.
Sec. 806. Timing of certification in connection with waiver of 
                            survivability and lethality testing 
                            requirements.
              Subtitle B--Procurement Policy Improvements

Sec. 811. Performance goals for contracting for services.
Sec. 812. Grants of exceptions to cost or pricing data certification 
                            requirements and waivers of cost accounting 
                            standards.
Sec. 813. Extension of requirement for annual report on defense 
                            commercial pricing management improvement.
Sec. 814. Internal controls on the use of purchase cards.
Sec. 815. Assessment regarding fees paid for acquisitions under other 
                            agencies' contracts.
Sec. 816. Pilot program for transition to follow-on contracts for 
                            certain prototype projects.
Sec. 817. Waiver authority for domestic source or content requirements.
                       Subtitle C--Other Matters

Sec. 821. Extension of the applicability of certain personnel 
                            demonstration project exceptions to an 
                            acquisition workforce demonstration 
                            project.
Sec. 822. Moratorium on reduction of the defense acquisition and 
                            support workforce.
Sec. 823. Extension of contract goal for small disadvantaged businesses 
                            and certain institutions of higher 
                            education.
Sec. 824. Mentor-Protege Program eligibility for HUBZone small business 
                            concerns and small business concerns owned 
                            and controlled by service-disabled 
                            veterans.
Sec. 825. Repeal of requirements for certain reviews by the Comptroller 
                            General.
Sec. 826. Multiyear procurement authority for purchase of dinitrogen 
                            tetroxide, hydrazine, and hydrazine-related 
                            products.
Sec. 827. Multiyear procurement authority for environmental services 
                            for military installations.
Sec. 828. Increased maximum amount of assistance for tribal 
                            organizations or economic enterprises 
                            carrying out procurement technical 
                            assistance programs in two or more service 
                            areas.
Sec. 829. Authority for nonprofit organizations to self-certify 
                            eligibility for treatment as qualified 
                            organizations employing severely disabled 
                            under Mentor-Protege Program.
Sec. 830. Report on effects of Army Contracting Agency.
      TITLE IX--DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT

Sec. 901. Time for submittal of report on Quadrennial Defense Review.
Sec. 902. Increased number of Deputy Commandants authorized for the 
                            Marine Corps.
Sec. 903. Base operating support for Fisher Houses.
Sec. 904. Prevention and mitigation of corrosion.
Sec. 905. Western Hemisphere Institute for Security Cooperation.
Sec. 906. Veterinary Corps of the Army.
Sec. 907. Under Secretary of Defense for Intelligence.
                      TITLE X--GENERAL PROVISIONS

                     Subtitle A--Financial Matters

Sec. 1001. Transfer authority.
Sec. 1002. Reallocation of authorizations of appropriations from 
                            ballistic missile defense to shipbuilding.
Sec. 1003. Authorization of appropriations for continued operations for 
                            the war on terrorism.
Sec. 1004. Authorization of emergency supplemental appropriations for 
                            fiscal year 2002.
Sec. 1005. United States contribution to NATO common-funded budgets in 
                            fiscal year 2003.
Sec. 1006. Development and implementation of financial management 
                            enterprise architecture.
Sec. 1007. Departmental accountable officials in the Department of 
                            Defense.
Sec. 1008. Department-wide procedures for establishing and liquidating 
                            personal pecuniary liability.
Sec. 1009. Travel card program integrity.
Sec. 1010. Clearance of certain transactions recorded in Treasury 
                            suspense accounts and resolution of certain 
                            check issuance discrepancies.
Sec. 1011. Additional amount for ballistic missile defense or combating 
                            terrorism in accordance with national 
                            security priorities of the President.
Sec. 1012. Availability of amounts for Oregon Army National Guard for 
                            Search and Rescue and Medical Evacuation 
                            missions in adverse weather conditions.
                Subtitle B--Naval Vessels and Shipyards

Sec. 1021. Number of Navy surface combatants in active and reserve 
                            service.
Sec. 1022. Plan for fielding the 155-millimeter gun on a surface 
                            combatant.
Sec. 1023. Report on initiatives to increase operational days of Navy 
                            ships.
Sec. 1024. Annual long-range plan for the construction of ships for the 
                            Navy.
                   Subtitle C--Reporting Requirements

Sec. 1031. Repeal and modification of various reporting requirements 
                            applicable with respect to the Department 
                            of Defense.
Sec. 1032. Annual report on weapons to defeat hardened and deeply 
                            buried targets.
Sec. 1033. Revision of date of annual report on counterproliferation 
                            activities and programs.
Sec. 1034. Quadrennial quality of life review.
Sec. 1035. Reports on efforts to resolve whereabouts and status of 
                            Captain Michael Scott Speicher, United 
                            States Navy.
Sec. 1036. Report on efforts to ensure adequacy of fire fighting staffs 
                            at military installations.
Sec. 1037. Report on designation of certain Louisiana highway as 
                            defense access road.
Sec. 1038. Plan for five-year program for enhancement of measurement 
                            and signatures intelligence capabilities.
Sec. 1039. Report on volunteer services of members of the reserve 
                            components in emergency response to the 
                            terrorist attacks of September 11, 2001.
Sec. 1040. Biannual reports on contributions to proliferation of 
                            weapons of mass destruction and delivery 
                            systems by countries of proliferation 
                            concern.
                      Subtitle D--Homeland Defense

Sec. 1041. Homeland security activities of the National Guard.
Sec. 1042. Conditions for use of full-time Reserves to perform duties 
                            relating to defense against weapons of mass 
                            destruction.
Sec. 1043. Weapon of mass destruction defined for purposes of the 
                            authority for use of Reserves to perform 
                            duties relating to defense against weapons 
                            of mass destruction.
Sec. 1044. Report on Department of Defense homeland defense activities.
Sec. 1045. Strategy for improving preparedness of military 
                            installations for incidents involving 
                            weapons of mass destruction.
                       Subtitle E--Other Matters

Sec. 1061. Continued applicability of expiring Governmentwide 
                            information security requirements to the 
                            Department of Defense.
Sec. 1062. Acceptance of voluntary services of proctors for 
                            administration of Armed Services Vocational 
                            Aptitude Battery.
Sec. 1063. Extension of authority for Secretary of Defense to sell 
                            aircraft and aircraft parts for use in 
                            responding to oil spills.
Sec. 1064. Amendments to Impact Aid program.
Sec. 1065. Disclosure of information on Shipboard Hazard and Defense 
                            project to Department of Veterans Affairs.
Sec. 1066. Transfer of historic DF-9E Panther aircraft to Women 
                            Airforce Service Pilots Museum.
Sec. 1067. Rewards for assistance in combating terrorism.
Sec. 1068. Provision of space and services to military welfare 
                            societies.
Sec. 1069. Commendation of military chaplains.
Sec. 1070. Grant of Federal charter to Korean War Veterans Association, 
                            Incorporated.
       TITLE XI--DEPARTMENT OF DEFENSE CIVILIAN PERSONNEL POLICY

Sec. 1101. Extension of authority to pay severance pay in a lump sum.
Sec. 1102. Extension of voluntary separation incentive pay authority.
Sec. 1103. Extension of cost-sharing authority for continued FEHBP 
                            coverage of certain persons after 
                            separation from employment.
Sec. 1104. Eligibility of nonappropriated funds employees to 
                            participate in the Federal employees long-
                            term care insurance program.
Sec. 1105. Increased maximum period of appointment under the 
                            experimental personnel program for 
                            scientific and technical personnel.
Sec. 1106. Qualification requirements for employment in Department of 
                            Defense professional accounting positions.
Sec. 1107. Housing benefits for unaccompanied teachers required to live 
                            at Guantanamo Bay Naval Station, Cuba.
              TITLE XII--MATTERS RELATING TO OTHER NATIONS

  Subtitle A--Cooperative Threat Reduction With States of the Former 
                              Soviet Union

Sec. 1201. Specification of Cooperative Threat Reduction programs and 
                            funds.
Sec. 1202. Funding allocations.
Sec. 1203. Authorization of use of Cooperative Threat Reduction funds 
                            for projects and activities outside the 
                            former Soviet Union.
Sec. 1204. Waiver of limitations on assistance under programs to 
                            facilitate cooperative threat reduction and 
                            nonproliferation.
Sec. 1205. Russian tactical nuclear weapons.
                       Subtitle B--Other Matters

Sec. 1211. Administrative support and services for coalition liaison 
                            officers.
Sec. 1212. Use of Warsaw Initiative funds for travel of officials from 
                            partner countries.
Sec. 1213. Support of United Nations-sponsored efforts to inspect and 
                            monitor Iraqi weapons activities.
Sec. 1214. Arctic and Western Pacific Environmental Cooperation 
                            Program.
Sec. 1215. Department of Defense HIV/AIDS prevention assistance 
                            program.
Sec. 1216. Monitoring implementation of the 1979 United States-China 
                            Agreement on Cooperation in Science and 
                            Technology.
            DIVISION B--MILITARY CONSTRUCTION AUTHORIZATIONS

Sec. 2001. Short title.
                            TITLE XXI--ARMY

Sec. 2101. Authorized Army construction and land acquisition projects.
Sec. 2102. Family housing.
Sec. 2103. Improvements to military family housing units.
Sec. 2104. Authorization of appropriations, Army.
Sec. 2105. Modification of authority to carry out certain fiscal year 
                            2002 projects.
Sec. 2106. Modification of authority to carry out certain fiscal year 
                            2000 project.
Sec. 2107. Modification of authority to carry out certain fiscal year 
                            1999 project.
Sec. 2108. Modification of authority to carry out certain fiscal year 
                            1997 project.
Sec. 2109. Modification of authority to carry out certain fiscal year 
                            2001 project.
Sec. 2110. Planning and design for anechoic chamber at White Sands 
                            Missile Range, New Mexico.
                            TITLE XXII--NAVY

Sec. 2201. Authorized Navy construction and land acquisition projects.
Sec. 2202. Family housing.
Sec. 2203. Improvements to military family housing units.
Sec. 2204. Authorization of appropriations, Navy.
Sec. 2205. Modification to carry out certain fiscal year 2002 projects.
                         TITLE XXIII--AIR FORCE

Sec. 2301. Authorized Air Force construction and land acquisition 
                            projects.
Sec. 2302. Family housing.
Sec. 2303. Improvements to military family housing units.
Sec. 2304. Authorization of appropriations, Air Force.
Sec. 2305. Authority for use of military construction funds for 
                            construction of public road near Aviano Air 
                            Base, Italy, closed for force protection 
                            purposes.
Sec. 2306. Additional project authorization for air traffic control 
                            facility at Dover Air Force Base, Delaware.
Sec. 2307. Availability of funds for consolidation of materials 
                            computational research facility at Wright-
                            Patterson Air Force Base, Ohio.
                      TITLE XXIV--DEFENSE AGENCIES

Sec. 2401. Authorized Defense Agencies construction and land 
                            acquisition projects.
Sec. 2402. Improvements to military family housing units.
Sec. 2403. Energy conservation projects.
Sec. 2404. Authorization of appropriations, Defense Agencies.
   TITLE XXV--NORTH ATLANTIC TREATY ORGANIZATION SECURITY INVESTMENT 
                                PROGRAM

Sec. 2501. Authorized NATO construction and land acquisition projects.
Sec. 2502. Authorization of appropriations, NATO.
            TITLE XXVI--GUARD AND RESERVE FORCES FACILITIES

Sec. 2601. Authorized guard and reserve construction and land 
                            acquisition projects.
Sec. 2602. Army National Guard Reserve Center, Lane County, Oregon.
Sec. 2603. Additional project authorization for Composite Support 
                            Facility for Illinois Air National Guard.
        TITLE XXVII--EXPIRATION AND EXTENSION OF AUTHORIZATIONS

Sec. 2701. Expiration of authorizations and amounts required to be 
                            specified by law.
Sec. 2702. Extension of authorizations of certain fiscal year 2000 
                            projects.
Sec. 2703. Extension of authorizations of certain fiscal year 1999 
                            projects.
Sec. 2704. Effective date.
                    TITLE XXVIII--GENERAL PROVISIONS

 Subtitle A--Military Construction Program and Military Family Housing 
                                Changes

Sec. 2801. Lease of military family housing in Korea.
Sec. 2802. Repeal of source requirements for family housing 
                            construction overseas.
Sec. 2803. Modification of lease authorities under alternative 
                            authority for acquisition and improvement 
                            of military housing.
        Subtitle B--Real Property and Facilities Administration

Sec. 2811. Agreements with private entities to enhance military 
                            training, testing, and operations.
Sec. 2812. Conveyance of surplus real property for natural resource 
                            conservation.
Sec. 2813. Modification of demonstration program on reduction in long-
                            term facility maintenance costs.
                      Subtitle C--Land Conveyances

Sec. 2821. Conveyance of certain lands in Alaska no longer required for 
                            National Guard purposes.
Sec. 2822. Land conveyance, Fort Campbell, Kentucky.
Sec. 2823. Modification of authority for land transfer and conveyance, 
                            Naval Security Group Activity, Winter 
                            Harbor, Maine.
Sec. 2824. Land conveyance, Westover Air Reserve Base, Massachusetts.
Sec. 2825. Land conveyance, Naval Station Newport, Rhode Island.
Sec. 2826. Land exchange, Buckley Air Force Base, Colorado.
Sec. 2827. Land acquisition, Boundary Channel Drive Site, Arlington, 
                            Virginia.
Sec. 2828. Land conveyances, Wendover Air Force Base Auxiliary Field, 
                            Nevada.
Sec. 2829. Land conveyance, Fort Hood, Texas.
Sec. 2830. Land conveyances, Engineer Proving Ground, Fort Belvoir, 
                            Virginia.
Sec. 2831. Master plan for use of Navy Annex, Arlington, Virginia.
Sec. 2832. Land conveyance, Sunflower Army Ammunition Plant, Kansas.
Sec. 2833. Land conveyance, Bluegrass Army Depot, Richmond, Kentucky.
                       Subtitle D--Other Matters

Sec. 2841. Transfer of funds for acquisition of replacement property 
                            for National Wildlife Refuge system lands 
                            in Nevada.
 DIVISION C--DEPARTMENT OF ENERGY NATIONAL SECURITY AUTHORIZATIONS AND 
                          OTHER AUTHORIZATIONS

      TITLE XXXI--DEPARTMENT OF ENERGY NATIONAL SECURITY PROGRAMS

         Subtitle A--National Security Programs Authorizations

Sec. 3101. National Nuclear Security Administration.
Sec. 3102. Defense environmental management.
Sec. 3103. Other defense activities.
Sec. 3104. Defense environmental management privatization.
Sec. 3105. Defense nuclear waste disposal.
                Subtitle B--Recurring General Provisions

Sec. 3121. Reprogramming.
Sec. 3122. Limits on minor construction projects.
Sec. 3123. Limits on construction projects.
Sec. 3124. Fund transfer authority.
Sec. 3125. Authority for conceptual and construction design.
Sec. 3126. Authority for emergency planning, design, and construction 
                            activities.
Sec. 3127. Funds available for all national security programs of the 
                            Department of Energy.
Sec. 3128. Availability of funds.
Sec. 3129. Transfer of defense environmental management funds.
Sec. 3130. Transfer of weapons activities funds.
   Subtitle C--Program Authorizations, Restrictions, and Limitations

Sec. 3131. Availability of funds for environmental management cleanup 
                            reform.
Sec. 3132. Robust Nuclear Earth Penetrator.
Sec. 3133. Database to track notification and resolution phases of 
                            Significant Finding Investigations.
Sec. 3134. Requirements for specific request for new or modified 
                            nuclear weapons.
Sec. 3135. Requirement for authorization by law for funds obligated or 
                            expended for Department of Energy national 
                            security activities.
Sec. 3136. Limitation on availability of funds for program to eliminate 
                            weapons grade plutonium production in 
                            Russia.
                   Subtitle D--Proliferation Matters

Sec. 3151. Administration of program to eliminate weapons grade 
                            plutonium production in Russia.
Sec. 3152. Repeal of requirement for reports on obligation of funds for 
                            programs on fissile materials in Russia.
Sec. 3153. Expansion of annual reports on status of nuclear materials 
                            protection, control, and accounting 
                            programs.
Sec. 3154. Testing of preparedness for emergencies involving nuclear, 
                            radiological, chemical, or biological 
                            weapons.
Sec. 3155. Program on research and technology for protection from 
                            nuclear or radiological terrorism.
Sec. 3156. Expansion of international materials protection, control, 
                            and accounting program.
Sec. 3157. Accelerated disposition of highly enriched uranium and 
                            plutonium.
Sec. 3158. Disposition of plutonium in Russia.
Sec. 3159. Strengthened international security for nuclear materials 
                            and safety and security of nuclear 
                            operations.
Sec. 3160. Export control programs.
Sec. 3161. Improvements to nuclear materials protection, control, and 
                            accounting program of the Russian 
                            Federation.
Sec. 3162. Comprehensive annual report to Congress on coordination and 
                            integration of all United States 
                            nonproliferation activities.
Sec. 3163. Utilization of Department of Energy national laboratories 
                            and sites in support of counterterrorism 
                            and homeland security activities.
                       Subtitle E--Other Matters

Sec. 3171. Indemnification of Department of Energy contractors.
Sec. 3172. Worker health and safety rules for Department of Energy 
                            facilities.
Sec. 3173. One-year extension of authority of Department of Energy to 
                            pay voluntary separation incentive 
                            payments.
Sec. 3174. Support for public education in the vicinity of Los Alamos 
                            National Laboratory, New Mexico.
Subtitle F--Disposition of Weapons-Usable Plutonium at Savannah River, 
                             South Carolina

Sec. 3181. Findings.
Sec. 3182. Disposition of weapons-usable plutonium at Savannah River 
                            Site.
Sec. 3183. Study of facilities for storage of plutonium and plutonium 
                            materials at Savannah River Site.
          TITLE XXXII--DEFENSE NUCLEAR FACILITIES SAFETY BOARD

Sec. 3201. Authorization.
Sec. 3202. Authorization of appropriations for the formerly used sites 
                            remedial action program of the Corps of 
                            Engineers.

SEC. 3. CONGRESSIONAL DEFENSE COMMITTEES DEFINED.

    For purposes of this Act, the term ``congressional defense 
committees'' means--
            (1) the Committee on Armed Services and the Committee on 
        Appropriations of the Senate; and
            (2) the Committee on Armed Services and the Committee on 
        Appropriations of the House of Representatives.

            DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATIONS

                          TITLE I--PROCUREMENT

              Subtitle A--Authorization of Appropriations

SEC. 101. ARMY.

    Funds are hereby authorized to be appropriated for fiscal year 2003 
for procurement for the Army as follows:
            (1) For aircraft, $2,144,386,000.
            (2) For missiles, $1,653,150,000.
            (3) For weapons and tracked combat vehicles, 
        $2,242,882,000.
            (4) For ammunition, $1,205,499,000.
            (5) For other procurement, $5,513,679,000.

SEC. 102. NAVY AND MARINE CORPS.

    (a) Navy.--Funds are hereby authorized to be appropriated for 
fiscal year 2003 for procurement for the Navy as follows:
            (1) For aircraft, $9,037,209,000.
            (2) For weapons, including missiles and torpedoes, 
        $2,505,820,000.
            (3) For shipbuilding and conversion, $8,624,160,000.
            (4) For other procurement, $4,515,500,000.
    (b) Marine Corps.--Funds are hereby authorized to be appropriated 
for fiscal year 2003 for procurement for the Marine Corps in the amount 
of $1,341,219,000.
    (c) Navy and Marine Corps Ammunition.--Funds are hereby authorized 
to be appropriated for fiscal year 2003 for procurement of ammunition 
for the Navy and the Marine Corps in the amount of $1,173,157,000.

SEC. 103. AIR FORCE.

    Funds are hereby authorized to be appropriated for fiscal year 2003 
for procurement for the Air Force as follows:
            (1) For aircraft, $12,613,605,000.
            (2) For ammunition, $1,275,864,000.
            (3) For missiles, $3,258,162,000.
            (4) For other procurement, $10,477,840,000.

SEC. 104. DEFENSE-WIDE ACTIVITIES.

    Funds are hereby authorized to be appropriated for fiscal year 2003 
for Defense-wide procurement in the amount of $3,054,943,000.

SEC. 105. DEFENSE INSPECTOR GENERAL.

    Funds are hereby authorized to be appropriated for fiscal year 2003 
for procurement for the Inspector General of the Department of Defense 
in the amount of $2,000,000.

SEC. 106. CHEMICAL AGENTS AND MUNITIONS DESTRUCTION, DEFENSE.

    There is hereby authorized to be appropriated for the Office of the 
Secretary of Defense for fiscal year 2003 the amount of $1,490,199,000 
for--
            (1) the destruction of lethal chemical agents and munitions 
        in accordance with section 1412 of the Department of Defense 
        Authorization Act, 1986 (50 U.S.C. 1521); and
            (2) the destruction of chemical warfare materiel of the 
        United States that is not covered by section 1412 of such Act.

SEC. 107. DEFENSE HEALTH PROGRAMS.

    Funds are hereby authorized to be appropriated for fiscal year 2003 
for the Department of Defense for procurement for carrying out health 
care programs, projects, and activities of the Department of Defense in 
the total amount of $278,742,000.

                       Subtitle B--Army Programs

SEC. 111. PILOT PROGRAM ON SALES OF MANUFACTURED ARTICLES AND SERVICES 
              OF CERTAIN ARMY INDUSTRIAL FACILITIES WITHOUT REGARD TO 
              AVAILABILITY FROM DOMESTIC SOURCES.

    (a) Extension of Program.--Subsection (a) of section 141 of the 
National Defense Authorization Act for Fiscal Year 1998 (Public Law 
105-85; 10 U.S.C. 4543 note) is amended by striking ``through 2002'' in 
the first sentence and inserting ``through 2004''.
    (b) Use of Overhead Funds Made Surplus by Sales.--Such section is 
further amended--
            (1) by redesignating subsection (c) as subsection (d); and
            (2) by inserting after subsection (b) the following new 
        subsection (c):
    ``(c) For each Army industrial facility participating in the pilot 
program that sells manufactured articles and services in a total amount 
in excess of $20,000,000 in any fiscal year, the amount equal to one-
half of one percent of such total amount shall be transferred from the 
sums in the Army Working Capital Fund for unutilized plant capacity to 
appropriations available for the following fiscal year for the 
demilitarization of conventional ammunition by the Army.''.
    (c) Update of Inspector General's Review.--The Inspector General of 
the Department of Defense shall review the experience under the pilot 
program carried out under section 141 of Public Law 105-85 and, not 
later than July 1, 2003, submit to Congress a report on the results of 
the review. The report shall contain the views, information, and 
recommendations called for under subsection (d) of such section (as 
redesignated by subsection (b)(1)). In carrying out the review and 
preparing the report, the Inspector General shall take into 
consideration the report submitted to Congress under such subsection 
(as so redesignated).

                       Subtitle C--Navy Programs

SEC. 121. INTEGRATED BRIDGE SYSTEM.

    (a) Amount for Program.--Of the amount authorized to be 
appropriated by section 102(a)(4), $5,000,000 shall be available for 
the procurement of the integrated bridge system in items less than 
$5,000,000.
    (b) Offsetting Reduction.--Of the total amount authorized to be 
appropriated by section 102(a)(4), the amount available for the 
integrated bridge system in Aegis support equipment is hereby reduced 
by $5,000,000.

SEC. 122. EXTENSION OF MULTIYEAR PROCUREMENT AUTHORITY FOR DDG-51 CLASS 
              DESTROYERS.

    Section 122(b) of the National Defense Authorization Act for Fiscal 
Year 1997 (Public Law 104-201; 110 Stat. 2446), as amended by section 
122 of Public Law 106-65 (113 Stat. 534) and section 122(a) of the 
Floyd D. Spence National Defense Authorization Act for Fiscal Year 2001 
(as enacted into law by Public Law 106-398; 114 Stat. 1654A-24), is 
further amended by striking ``October 1, 2005'' in the first sentence 
and inserting ``October 1, 2007''.

SEC. 123. MAINTENANCE OF SCOPE OF CRUISER CONVERSION OF TICONDEROGA 
              CLASS AEGIS CRUISERS.

    The Secretary of the Navy should maintain the scope of the cruiser 
conversion program for the Ticonderoga class of AEGIS cruisers such 
that the program--
            (1) covers all 27 Ticonderoga class AEGIS cruisers; and
            (2) modernizes the class of cruisers to include an 
        appropriate mix of upgrades to ships' capabilities for theater 
        missile defense, naval fire support, and air dominance.

SEC. 124. MARINE CORPS LIVE FIRE RANGE IMPROVEMENTS.

    (a) Increase in Authorization of Appropriations.--The amount 
authorized to be appropriated by section 102(b) for procurement for the 
Marine Corps is hereby increased by $1,900,000, with the amount of the 
increase to be allocated to Training Devices.
    (b) Availability.--(1) Of the amount authorized to be appropriated 
by section 102(b) for procurement for the Marine Corps, as increased by 
subsection (a), $1,900,000 shall be available as follows:
            (A) For upgrading live fire range target movers.
            (B) To bring live fire range radio controls into compliance 
        with Federal Communications Commission narrow band 
        requirements.
    (2) Amounts available under paragraph (1) for the purposes set 
forth in that paragraph are in addition to any other amounts available 
in this Act for such purposes.
    (c) Offsetting Reduction.--The amount authorized to be appropriated 
by section 103(1) for the C-17 interim contractor support is reduced by 
$1,900,000.

                     Subtitle D--Air Force Programs

SEC. 131. C-130J AIRCRAFT PROGRAM.

    (a) Multiyear Procurement Authority.--Beginning with the fiscal 
year 2003 program year, the Secretary of the Air Force may, in 
accordance with section 2306b of title 10, United States Code, enter 
into a multiyear contract for the procurement of C-130J aircraft and 
variants of the C-130J aircraft, subject to subsection (b), and except 
that, notwithstanding subsection (k) of such section, such a contract 
may be for a period of six program years.
    (b) Limitation.--The Secretary of the Air Force may not enter into 
a multiyear contract authorized by subsection (a) until the C-130J 
aircraft has been cleared for worldwide over-water capability.

SEC. 132. PATHFINDER PROGRAMS.

    (a) Spiral Development Plan for Selected Pathfinder Programs.--Not 
later than February 1, 2003, the Secretary of the Air Force shall--
            (1) identify among the pathfinder programs listed in 
        subsection (e) each pathfinder program that the Secretary shall 
        conduct as a spiral development program; and
            (2) submit to the Secretary of Defense for each pathfinder 
        program identified under paragraph (1) a spiral development 
        plan that meets the requirements of section 803(c).
    (b) Approval or Disapproval of Spiral Development Plans.--Not later 
than March 15, 2003, the Secretary of Defense shall--
            (1) review each spiral development plan submitted under 
        subsection (a)(2);
            (2) approve or disapprove the conduct as a spiral 
        development plan of the pathfinder program covered by each such 
        spiral development plan; and
            (3) submit to the congressional defense committees a copy 
        of each spiral development plan approved under paragraph (2).
    (c) Assessment of Pathfinder Programs Not Selected or Approved for 
Spiral Development.--Not later than March 15, 2003, each official of 
the Department of Defense specified in subsection (d) shall submit to 
the congressional defense committees the assessment required of such 
official under that subsection for the acquisition plan for each 
pathfinder program as follows:
            (1) Each pathfinder program that is not identified by the 
        Secretary of the Air Force under subsection (a)(1) as a program 
        that the Secretary shall conduct as a spiral development 
        program.
            (2) Each pathfinder program that is disapproved by the 
        Secretary of Defense for conduct as a spiral development 
        program under subsection (b)(2).
    (d) Officials and Required Assessments for Programs Outside Spiral 
Development.--The officials specified in this subsection, and the 
assessment required of such officials, are as follows:
            (1) The Director of Operational Test and Evaluation, who 
        shall assess the test contents of the acquisition plan for each 
        pathfinder program covered by subsection (c).
            (2) The Chairman of the Joint Requirements Oversight 
        Council, who shall assess the extent to which the acquisition 
        plan for each such pathfinder program addresses validated 
        military requirements.
            (3) The Under Secretary of Defense (Comptroller), in 
        coordination with the Under Secretary of Defense for 
        Acquisition, Technology, and Logistics, who shall conduct an 
        independent programmatic evaluation of the acquisition plan for 
        each such pathfinder program, including an analysis of the 
        total cost, schedule, and technical risk associated with 
        development of such program.
    (e) Pathfinder Programs.--The pathfinder programs listed in this 
subsection are the program as follows:
            (1) Space Based Radar.
            (2) Global Positioning System.
            (3) Global Hawk.
            (4) Combat Search and Rescue.
            (5) B-2 Radar.
            (6) Predator B.
            (7) B-1 Defensive System Upgrade.
            (8) Multi Mission Command and Control Constellation.
            (9) Unmanned Combat Air Vehicle.
            (10) Global Transportation Network.
            (11) C-5 Avionics Modernization Program.
            (12) Hunter/Killer.
            (13) Tanker/Lease.
            (14) Small Diameter Bomb.
            (15) KC-767.
            (16) AC-130 Gunship.

SEC. 133. OVERSIGHT OF ACQUISITION FOR DEFENSE SPACE PROGRAMS.

    (a) In General.--The Office of the Secretary of Defense shall 
maintain oversight of acquisition for defense space programs.
    (b) Report on Oversight.--(1) Not later than March 15, 2003, the 
Secretary of Defense shall submit to the congressional defense 
committees a detailed plan on how the Office of the Secretary of 
Defense shall provide oversight of acquisition for defense space 
programs.
    (2) The plan shall set forth the following:
            (A) The organizations in the Office of the Secretary of 
        Defense, and the Joint Staff organizations, to be involved in 
        oversight of acquisition for defense space programs.
            (B) The process for the review of defense space programs by 
        the organizations specified under subparagraph (A).
            (C) The process for the provision by such organizations of 
        technical, programmatic, scheduling, and budgetary advice on 
        defense space programs to the Deputy Secretary of Defense and 
        the Under Secretary of the Air Force.
            (D) The process for the development of independent cost 
        estimates for defense space programs, including the 
        organization responsible for developing such cost estimates and 
        when such cost estimates shall be required.
            (E) The process for the development of the budget for 
        acquisition for defense space programs.
            (F) The process for the resolution of issues regarding 
        acquisition for defense space programs that are raised by the 
        organizations specified under subparagraph (A).
    (c) Defense Space Program Defined.--In this section, the term 
``defense space program'' means any major defense acquisition program 
(as that term is defined in section 2430 of title 10, United States 
Code) for the acquisition of--
            (1) space-based assets, space launch assets, or user 
        equipment for such assets; or
            (2) earth-based or spaced-based assets dedicated primarily 
        to space surveillance or space control.

SEC. 134. LEASING OF TANKER AIRCRAFT.

    The Secretary of the Air Force shall not enter into any lease for 
tanker aircraft until the Secretary submits the report required by 
section 8159(c)(6) of the Department of Defense Appropriations Act, 
2002 (division A of Public Law 107-117; 115 Stat. 2284) and obtains 
authorization and appropriation of funds necessary to enter into a 
lease for such aircraft consistent with his publicly stated commitments 
to the Congress to do so.

SEC. 135. COMPASS CALL PROGRAM.

    Of the amount authorized to be appropriated by section 103(1), 
$12,700,000 shall be available for the Compass Call program within 
classified projects and not within the Defense Airborne Reconnaissance 
Program.

SEC. 136. SENSE OF CONGRESS REGARDING ASSURED ACCESS TO SPACE.

    (a) Findings.--Congress makes the following findings:
            (1) Assured access to space is a vital national security 
        interest of the United States.
            (2) The Evolved Expendable Launch Vehicle program of the 
        Department of Defense is a critical element of the Department's 
        plans for assuring United States access to space.
            (3) Significant contractions in the commercial space launch 
        marketplace have eroded the overall viability of the United 
        States space launch industrial base and could hamper the 
        ability of the Department of Defense to provide assured access 
        to space in the future.
            (4) The continuing viability of the United States space 
        launch industrial base is a critical element of any strategy to 
        ensure the long-term ability of the United States to assure 
        access to space.
            (5) The Under Secretary of the Air Force, as acquisition 
        executive for space programs in the Department of Defense, has 
        been authorized to develop a strategy to address United States 
        space launch and assured access to space requirements.
    (b) Sense of Congress.--It is the sense of Congress that the Under 
Secretary of the Air Force should--
            (1) evaluate all options for sustaining the United States 
        space launch industrial base;
            (2) develop an integrated, long-range, and adequately 
        funded plan for assuring United States access to space; and
            (3) submit to Congress a report on the plan at the earliest 
        opportunity practicable.

SEC. 137. MOBILE EMERGENCY BROADBAND SYSTEM.

    (a) Amount for Program.--Of the total amount authorized to be 
appropriated by section 103(4), $1,000,000 may be available for the 
procurement of technical communications-electronics equipment for the 
Mobile Emergency Broadband System.
    (b) Offsetting Reduction.--Of the total amount authorized to be 
appropriated by section 103(4), the amount available under such section 
for the Navy for other procurement for gun fire control equipment, SPQ-
9B solid state transmitter, is hereby reduced by $1,000,000.

         TITLE II--RESEARCH, DEVELOPMENT, TEST, AND EVALUATION

              Subtitle A--Authorization of Appropriations

SEC. 201. AUTHORIZATION OF APPROPRIATIONS.

    Funds are hereby authorized to be appropriated for fiscal year 2003 
for the use of the Department of Defense for research, development, 
test, and evaluation as follows:
            (1) For the Army, $7,297,033,000.
            (2) For the Navy, $12,927,135,000.
            (3) For the Air Force, $18,608,684,000.
            (4) For Defense-wide activities, $17,543,927,000, of which 
        $361,554,000 is authorized for the Director of Operational Test 
        and Evaluation.

SEC. 202. AMOUNT FOR SCIENCE AND TECHNOLOGY.

    (a) Amount for Projects.--Of the total amount authorized to be 
appropriated by section 201, $10,164,358,000 shall be available for 
science and technology projects.
    (b) Science and Technology Defined.--In this section, the term 
``science and technology project'' means work funded in program 
elements for defense research, development, test, and evaluation under 
Department of Defense budget activities 1, 2, or 3.

SEC. 203. DEFENSE HEALTH PROGRAMS.

    Funds are hereby authorized to be appropriated for fiscal year 2003 
for the Department of Defense for research, development, test, and 
evaluation for carrying out health care programs, projects, and 
activities of the Department of Defense in the total amount of 
$67,214,000.

    Subtitle B--Program Requirements, Restrictions, and Limitations

SEC. 211. BASIC SEISMIC RESEARCH PROGRAM FOR SUPPORT OF NATIONAL 
              REQUIREMENTS FOR MONITORING NUCLEAR EXPLOSIONS.

    (a) Management of Program.--(1) The Secretary of the Air Force 
shall manage the Department of Defense program of basic seismic 
research in support of national requirements for monitoring nuclear 
explosions. The Secretary shall manage the program in the manner 
necessary to support Air Force mission requirements relating to the 
national requirements.
    (2) The Secretary shall act through the Director of the Air Force 
Research Laboratory in carrying out paragraph (1).
    (c) Amount for Program.--Of the amount authorized to be 
appropriated by section 201(4), $20,000,000 shall be available for the 
program referred to in subsection (a).

SEC. 212. ADVANCED SEAL DELIVERY SYSTEM.

    To the extent provided in appropriations Acts, the Secretary of 
Defense may use for research, development, test, and evaluation for the 
Advanced SEAL Delivery System any funds that were authorized to be 
appropriated to the Department of Defense for fiscal year 2002 for the 
procurement of that system, were appropriated pursuant to such 
authorization of appropriations, and are no longer needed for that 
purpose.

SEC. 213. ARMY EXPERIMENTATION PROGRAM REGARDING DESIGN OF THE 
              OBJECTIVE FORCE.

    (a) Requirement for Report.--Not later than March 30, 2003, the 
Secretary of the Army shall submit to Congress a report on the 
experimentation program regarding design of the objective force that is 
required by subsection (g) of section 113 of the Floyd D. Spence 
National Defense Authorization Act for Fiscal Year 2001, as added by 
section 113 of the National Defense Authorization Act for Fiscal Year 
2002 (Public Law 107-107; 115 Stat. 1029).
    (b) Budget Display.--Amounts provided for the experimentation 
program in the budget for fiscal year 2004 that is submitted to 
Congress under section 1105(a) of title 31, United States Code, shall 
be displayed as a distinct program element in that budget and in the 
supporting documentation submitted to Congress by the Secretary of 
Defense.

SEC. 214. REALLOCATION OF AMOUNT AVAILABLE FOR INDIRECT FIRE PROGRAMS.

    (a) Reduction of Amount for Crusader.--Of the amount authorized to 
be appropriated by section 201(1) for the Army for research, 
development, test, and evaluation, the amount available for continued 
research and development of the Crusader artillery system is hereby 
reduced by $475,600,000.
    (b) Increase of Amount for Future Combat Systems.--Of the amount 
authorized to be appropriated by section 201(1) for the Army for 
research, development, test, and evaluation, the amount available for 
research and development for the Objective Force indirect fire systems 
is hereby increased by $475,600,000. The amount of the increase shall 
be available only for meeting the needs of the Army for indirect fire 
capabilities, and may not be used under the authority of this section 
until 30 days after the date on which the Secretary of Defense submits 
to the congressional defense committees the report required by 
subsection (d), together with a notification of the Secretary's plan to 
use such funds to meet the needs of the Army for indirect fire 
capabilities.
    (c) Use of Funds.--Subject to subsection (b), the Secretary of 
Defense may use the amount available under such subsection for any 
program for meeting the needs of the Army for indirect fire 
capabilities.
    (d) Reporting Requirement.--(1) Not later than 30 days after the 
date of the enactment of this Act, the Chief of Staff of the Army shall 
complete a review of the full range of Army programs that could provide 
improved indirect fire for the Army over the next 20 years and shall 
submit to the Secretary of Defense a report containing the 
recommendation of the Chief of Staff on which alternative for improving 
indirect fire for the Army is the best alternative for that purpose. 
The report shall also include information on each of the following 
funding matters:
            (A) The manner in which the amount available under 
        subsection (b) should be best invested to support the 
        improvement of indirect fire capabilities for the Army.
            (B) The manner in which the amount provided for indirect 
        fire programs of the Army in the future-years defense program 
        submitted to Congress with respect to the budget for fiscal 
        year 2003 under section 221 of title 10, United States Code, 
        should be best invested to support improved indirect fire for 
        the Army.
            (C) The manner in which the amounts described in 
        subparagraphs (A) and (B) should be best invested to support 
        the improvement of indirect fire capabilities for the Army in 
        the event of a termination of the Crusader artillery system 
        program.
            (D) The portion of the amount available under subsection 
        (b) that should be reserved for paying costs associated with a 
        termination of the Crusader artillery system program in the 
        event of such a termination.
    (2) The Secretary of Defense shall submit the report, together with 
any comments and recommendations that the Secretary considers 
appropriate, to the congressional defense committees.
    (e) Annual Updates.--(1) The Secretary shall submit to the 
congressional defense committees, at the same time that the President 
submits the budget for a fiscal year referred to in paragraph (4) to 
Congress under section 1105(a) of title 31, United States Code, a 
report on the investments proposed to be made in indirect fire programs 
for the Army.
    (2) If the Crusader artillery system program has been terminated by 
the time the annual report is submitted in conjunction with the budget 
for a fiscal year, the report shall--
            (A) identify the amount proposed for expenditure for the 
        Crusader artillery system program for that fiscal year in the 
        future-years defense program that was submitted to Congress in 
        2002 under section 221 of title 10, United States Code; and
            (B) specify--
                    (i) the manner in which the amount provided in that 
                budget would be expended for improved indirect fire 
                capabilities for the Army; and
                    (ii) the extent to which the expenditures in that 
                manner would improve indirect fire capabilities for the 
                Army.
    (3) The requirement to submit an annual report under paragraph (1) 
shall apply with respect to budgets for fiscal years 2004, 2005, 2006, 
2007, and 2008.

SEC. 215. LASER WELDING AND CUTTING DEMONSTRATION.

    (a) Amount for Program.--Of the total amount authorized to be 
appropriated by section 201(2) for research, development, test, and 
evaluation for the Navy, $6,000,000 shall be available for the laser 
welding and cutting demonstration in force protection applied research 
(PE 0602123N).
    (b) Offsetting Reduction.--Of the total amount authorized to be 
appropriated by section 201(2) for research, development, test, and 
evaluation for the Navy, the amount available for laser welding and 
cutting demonstration in surface ship and submarine HM&E advanced 
technology (PE 0603508N) is hereby reduced by $6,000,000.

SEC. 216. ANALYSIS OF EMERGING THREATS.

    (a) Increase in Authorization of Appropriations.--The amount 
authorized to be appropriated by section 201(2) for research, 
development, test, and evaluation for the Navy is hereby increased by 
$2,000,000 with the amount of the increase to be allocated to Marine 
Corps Advanced Technology Demonstration (ATD) (PE 0603640M).
    (b) Availability.--(1) Of the amount authorized to be appropriated 
by section 201(2) for research, development, test, and evaluation for 
the Navy, as increased by subsection (a), $2,000,000 may be available 
for analysis of emerging threats.
    (2) The amount available under paragraph (1) for analysis of 
emerging threats is in addition to any other amounts available under 
this Act for analysis of emerging threats.
    (c) Offset.--The amount authorized to be appropriated by section 
201(1) for research, development, test, and evaluation for the Army is 
hereby reduced by $2,000,000, with the amount of the reduction 
allocated as follows:
            (1) $1,000,000 may be allocated to Weapons and Munitions 
        Technology (PE 0602624A) and available for countermobility 
        systems.
            (2) $1,000,000 may be allocated to Warfighter Advanced 
        Technology (PE 0603001A) and available for Objective Force 
        Warrior technologies.

SEC. 217. PROHIBITION ON TRANSFER OF MEDICAL FREE ELECTRON LASER 
              PROGRAM.

    Notwithstanding any other provision of law, the Medical Free 
Electron Laser Program (PE 0602227D8Z) may not be transferred from the 
Department of Defense to the National Institutes of Health, or to any 
other department or agency of the Federal Government.

SEC. 218. DEMONSTRATION OF RENEWABLE ENERGY USE.

    Of the amount authorized to be appropriated by section 201(2), 
$2,500,000 shall be available for the demonstration of renewable energy 
use program within the program element for the Navy energy program and 
not within the program element for facilities improvement.

SEC. 219A. RADAR POWER TECHNOLOGY FOR THE ARMY.

    (a) Increase in Authorization of Appropriations.--The amount 
authorized to be appropriated by section 201(1) for the Department of 
Defense for research, development, test, and evaluation for the Army is 
hereby increased by $4,500,000, with the amount of the increase to be 
allocated to Army missile defense systems integration (DEM/VAL) (PE 
0603308A).
    (b) Availability for Radar Power Technology.--(1) Of the amount 
authorized to be appropriated by section 201(1) for the Department of 
Defense for research, development, test, and evaluation for the Army, 
as increased by subsection (a), $4,500,000 shall be available for radar 
power technology.
    (2) The amount available under paragraph (1) for radar power 
technology is in addition to any other amounts available under this Act 
for such technology.
    (c) Offset.--The amount authorized to be appropriated by section 
201(2) for research, development, test, and evaluation for the Navy is 
hereby reduced by $4,500,000, with the amount of the reduction to be 
allocated to common picture advanced technology (PE 0603235N).

SEC. 219B. CRITICAL INFRASTRUCTURE PROTECTION.

    (a) Amount for Program.--Of the amount authorized to be 
appropriated in section 201(4), $4,500,000 may be available for 
critical infrastructure protection (PE 35190D8Z).
    (b) Offset.--Of the amount authorized to be appropriated by section 
201(2), the amount for power projection advanced technology (PE 63114N) 
is hereby reduced by $4,500,000.

SEC. 219C. THEATER AEROSPACE COMMAND AND CONTROL SIMULATION FACILITY 
              UPGRADES.

    (a) Availability of Funds.--(1) The amount authorized to be 
appropriated by section 201(3) for the Air Force for wargaming and 
simulation centers (PE 0207605F) is increased by $2,500,000. The total 
amount of the increase may be available for Theater Aerospace Command 
and Control Simulation Facility (TACCSF) upgrades.
    (2) The amount available under paragraph (1) for Theater Aerospace 
Command and Control Simulation Facility upgrades is in addition to any 
other amounts available under this Act for such upgrades.
    (b) Offset.--The amount authorized to be appropriated by section 
201(2) for the Navy for Mine and Expeditionary Warfare Applied Research 
(PE 0602782N) is reduced by $2,500,000.

SEC. 219D. DDG OPTIMIZED MANNING INITIATIVE.

    (a) Increase in Authorization of Appropriations.--The amount 
authorized to be appropriated by section 201(2) for research, 
development, test, and evaluation for the Navy is hereby increased by 
$2,500,000, with the amount of the increase to be allocated to surface 
combatant combat system engineering (PE 0604307N).
    (b) Availability.--(1) Of the amount authorized to be appropriated 
by section 201(2) for research, development, test, and evaluation for 
the Navy, as increased by subsection (a), $2,500,000 may be available 
for the DDG optimized manning initiative.
    (2) The amount available under paragraph (1) for the initiative 
referred to in that paragraph is in addition to any other amounts 
available under this Act for that initiative.
    (c) Offset.--The amount authorized to be appropriated by section 
201(1) for research, development, test, and evaluation for artillery 
systems DEM/VAL (PE 0603854A), by $2,500,000.

SEC. 219E. AGROTERRORIST ATTACKS.

    (a) Availability.--(1) Of the amount authorized to be appropriated 
by section 201(4) for research, development, test, and evaluation, 
defense-wide, the amount available for basic research for the Chemical 
and Biological Defense Program (PE 0601384BP) is hereby increased by 
$1,000,000, with the amount of such increase to be available for 
research, analysis, and assessment of efforts to counter potential 
agroterrorist attacks.
    (2) The amount available under paragraph (1) for research, 
analysis, and assessment described in that paragraph is in addition to 
any other amounts available in this Act for such research, analysis, 
and assessment.
    (b) Offset.--Of the amount authorized to be appropriated by section 
201(4) for research, development, test, and evaluation, Defense-wide, 
the amount available for biological terrorism and agroterrorism risk 
assessment and prediction in the program element relating to the 
Chemical and Biological Defense Program (PE 0603384BP) is hereby 
reduced by $1,000,000.

SEC. 219F. VERY HIGH SPEED SUPPORT VESSEL FOR THE ARMY.

    (a) Increase in Authorization of Appropriations.--The amount 
authorized to be appropriated by section 201(1) for research, 
development, test, and evaluation for the Army is hereby increased by 
$5,500,000, with the amount of the increase to be allocated to 
logistics and engineering equipment-advanced development (PE 0603804A).
    (b) Availability.--(1) Of the amount authorized to be appropriated 
by section 201(1) for research, development, test, and evaluation for 
the Army, as increased by subsection (a), $5,500,000 may be available 
for development of a prototype composite hull design to meet the 
theater support vessel requirement.
    (2) The amount available under paragraph (1) for development of the 
hull design referred to in that paragraph is in addition to any other 
amounts available under this Act for development of that hull design.
    (c) Offset.--The amount authorized to be appropriated by section 
201(2) for research, development, test, and evaluation for the Navy is 
hereby decreased by $5,500,000, with the amount of the decrease to be 
allocated to submarine tactical warfare system (PE 0604562N) and 
amounts available under that program element for upgrades of combat 
control software to commercial architecture.

SEC. 219G. FULL-SCALE HIGH-SPEED PERMANENT MAGNET GENERATOR.

    (a) Increase in Authorization of Appropriations.--The amount 
authorized to be appropriated by section 201(2) for research, 
development, test, and evaluation for the Navy is hereby increased by 
$1,000,000, with the amount of the increase to be allocated to Force 
Protection Advanced Technology (PE 0603123N).
    (b) Availability.--(1) Of the amount authorized to be appropriated 
by section 201(2) for research, development, test, and evaluation for 
the Navy, as increased by subsection (a), $1,000,000 may be available 
for development and demonstration of a full-scale high-speed permanent 
magnet generator.
    (2) The amount available under paragraph (1) for development and 
demonstration of the generator described in that paragraph is in 
addition to any other amounts available in this Act for development and 
demonstration of that generator.
    (c) Offset.--The amount authorized to be appropriated by section 
201(1) for research, development, test, and evaluation for the Army is 
hereby reduced by $1,000,000, with the amount of the reduction to be 
allocated to Artillery Systems-Dem/Val (PE 0603854A).

SEC. 219H. AVIATION-SHIPBOARD INFORMATION TECHNOLOGY INITIATIVE.

    Of the amount authorized to be appropriated by section 201(2) for 
shipboard aviation systems, up to $8,200,000 may be used for the 
aviation-shipboard information technology initiative.

SEC. 219I. AEROSPACE RELAY MIRROR SYSTEM (ARMS) DEMONSTRATION.

    Of the amount authorized to be appropriated by section 201(3) for 
the Department of Defense for research, development, test, and 
evaluation for the Air Force, $6,000,000 may be available for the 
Aerospace Relay Mirror System (ARMS) Demonstration.

SEC. 219J. LITTORAL SHIP PROGRAM.

     (a) Amount for Program.--Of the amount authorized to be 
appropriated by section 201(2) for research and development, test and 
evaluation, Navy, $4,000,000 may be available for requirements 
development of a littoral ship in Ship Concept Advanced Design (PE 
0603563N).
     (b) Offsetting Reduction.--Of the total amount authorized to be 
appropriated by section 201(2) for research and development, test and 
evaluation, Navy, the amount available for FORCENET in Tactical Command 
System (PE 0604231N), is hereby reduced by an additional $4,000,000.

                  Subtitle C--Missile Defense Programs

SEC. 221. ANNUAL OPERATIONAL ASSESSMENTS AND REVIEWS OF BALLISTIC 
              MISSILE DEFENSE PROGRAM.

    (a) Annual Operational Assessment.--(1)(A) During the first quarter 
of each fiscal year, the Director of Operational Test and Evaluation 
shall conduct an operational assessment of the missile defense programs 
listed in paragraph (3).
    (B) The annual assessment shall include--
            (i) a detailed, quantitative evaluation of the potential 
        operational effectiveness, reliability, and suitability of the 
        system or systems under each program as the program exists 
        during the fiscal year of the assessment;
            (ii) an evaluation of the adequacy of testing through the 
        end of the previous fiscal year to measure and predict the 
        effectiveness of the systems; and
            (iii) a determination of the threats, or type of threats, 
        against which the systems would be expected to be effective and 
        those against which the systems would not be expected to be 
        effective.
    (C) The first assessment under this paragraph shall be conducted 
during fiscal year 2003.
    (2) Not later than January 15 of each year, the Director of 
Operational Test and Evaluation shall submit to the Secretary of 
Defense and the congressional defense committees a report on the 
assessment conducted during the preceding quarter-year. The report 
shall include the evaluation of the potential of the system or systems 
together with a discussion of the basis for the evaluation.
    (3) The requirement for an annual operational assessment under 
paragraph (1) shall apply to programs under the United States Missile 
Defense Agency as follows:
            (A) The Ground-based Midcourse Defense program.
            (B) The Sea-based Midcourse Defense program.
            (C) The Theater High Altitude Area Defense (THAAD) program.
            (D) The Air-based Boost program (formerly known as the 
        Airborne Laser Defense program).
    (b) Annual Requirements Reviews.--(1) During the first quarter of 
each fiscal year, the Joint Requirements Oversight Council established 
under section 181 of title 10, United States Code, shall review the 
cost, schedule, and performance criteria for the missile defense 
programs under the United States Missile Defense Agency and assess the 
validity of the criteria in relation to military requirements. The 
first review shall be carried out in fiscal year 2003.
    (2) Not later than January 15 of each year, the Chairman of the 
Joint Requirements Oversight Council shall submit to the Secretary of 
Defense and the congressional defense committees a report on the 
results of the review carried out under paragraph (1) during the 
preceding quarter-year.

SEC. 222. REPORT ON MIDCOURSE DEFENSE PROGRAM.

    (a) Requirement for Report.--Not later than January 15, 2003, the 
Secretary of Defense shall submit to the congressional defense 
committees a report on the Midcourse Defense program of the United 
States Missile Defense Agency. The report shall include the following 
information:
            (1) The development schedule, together with an estimate of 
        the annual costs through the completion of development.
            (2) The planned procurement schedule, together with the 
        Secretary's best estimates of the annual costs of, and number 
        of units to be procured under, the program through the 
        completion of the procurement.
            (3) The current program acquisition unit cost and the 
        history of acquisition unit costs from the date the program 
        (including its antecedent program) was first included in a 
        Selected Acquisition Report under section 2432 of title 10, 
        United States Code.
            (4) The current procurement unit cost, and the history of 
        procurement unit costs from the date the program (including any 
        antecedent program) was first included in a Selected 
        Acquisition Report under such section 2432.
            (5) The reasons for any changes in program acquisition 
        cost, program acquisition unit cost, procurement cost, or 
        procurement unit cost, and the reasons for any changes in 
        program schedule.
            (6) The major contracts under the program and the reasons 
        for any changes in cost or schedule variances under the 
        contracts.
            (7) The Test and Evaluation Master Plan developed for the 
        program in accordance with the requirements and guidance of 
        Department of Defense regulation 5000.2-R.
    (b) Segregation of Ground-Based and Sea-Based Efforts.--The report 
under subsection (a) shall separately display the schedules, cost 
estimates, cost histories, contracts, and test plans for--
            (1) the National Missile Defense/Ground-based Midcourse 
        Defense program; and
            (2) the Navy TheaterWide/Sea-based Midcourse Defense 
        program.

SEC. 223. REPORT ON AIR-BASED BOOST PROGRAM.

    Not later than January 15, 2003, the Secretary of Defense shall 
submit to the congressional defense committees a report on the Air-
based Boost program (formerly known as the Airborne Laser program). The 
report shall contain the following information:
            (1) The development schedule together with the estimated 
        annual costs of the program through the completion of 
        development.
            (2) The planned procurement schedule, together with the 
        Secretary's best estimates of the annual costs of, and number 
        of units to be procured under, the program through the 
        completion of the procurement.
            (3) The current program acquisition unit cost, and the 
        history of program acquisition unit costs from the date the 
        program (including any antecedent program) was first included 
        in a Selected Acquisition Report under section 2432 of title 
        10, United States Code.
            (4) The current procurement unit cost, and the history of 
        procurement unit costs from the date the program (including any 
        antecedent program) was first included in a Selected 
        Acquisition Report under such section 2432.
            (5) The reasons for any changes in program acquisition 
        cost, program acquisition unit cost, procurement cost, or 
        procurement unit cost, and the reasons for any changes in 
        program schedule.
            (6) The major contracts under the program and the reasons 
        for any changes in cost or schedule variances under the 
        contracts.
            (7) The Test and Evaluation Master Plan developed for the 
        program in accordance with the requirements and guidance of 
        Department of Defense regulation 5000.2-R.

SEC. 224. REPORT ON THEATER HIGH ALTITUDE AREA DEFENSE PROGRAM.

    (a) Requirement for Report.--Not later than January 15, 2003, the 
Secretary of Defense shall submit to the congressional defense 
committees a report on the Theater High Altitude Area Defense program. 
The report shall contain the following information:
            (1) The development schedule together with the estimated 
        annual costs of the program through the completion of 
        development.
            (2) The planned procurement schedule, together with the 
        Secretary's best estimates of the annual costs of, and number 
        of units to be procured under, the program through the 
        completion of the procurement.
            (3) The current program acquisition unit cost and the 
        history of program acquisition unit costs from the date the 
        program (including any antecedent program) was first included 
        in a Selected Acquisition Report under section 2432 of title 
        10, United States Code.
            (4) The current procurement unit cost, and the history of 
        procurement unit costs from the date the program (including any 
        antecedent program) was first included in a Selected 
        Acquisition Report under such section 2432.
            (5) The reasons for any changes in program acquisition 
        cost, program acquisition unit cost, procurement cost, or 
        procurement unit cost, and the reasons for any changes in 
        program schedule.
            (6) The major contracts under the program and the reasons 
        for any changes in cost or schedule variances under the 
        contracts.
            (7) The Test and Evaluation Master Plan developed for the 
        program in accordance with the requirements and guidance of 
        Department of Defense regulation 5000.2-R.
    (b) Funding Limitation.--Not more than 50 percent of the amount 
authorized to be appropriated by this Act for the United States Missile 
Defense Agency for the Theater High Altitude Area Defense program may 
be expended until the submission of the report required under 
subsection (a).

SEC. 225. REFERENCES TO NEW NAME FOR BALLISTIC MISSILE DEFENSE 
              ORGANIZATION.

    (a) Conforming Amendments.--The following provisions of law are 
amended by striking ``Ballistic Missile Defense Organization'' each 
place it appears and inserting ``United States Missile Defense 
Agency'':
            (1) Sections 223 and 224 of title 10, United States Code.
            (2) Sections 232, 233, and 235 of the National Defense 
        Authorization Act for Fiscal Year 2002 (Public Law 107-107).
    (b) Other References.--Any reference to the Ballistic Missile 
Defense Organization in any other provision of law or in any 
regulation, map, document, record, or other paper of the United States 
shall be considered to be a reference to the United States Missile 
Defense Agency.

SEC. 226. LIMITATION ON USE OF FUNDS FOR NUCLEAR ARMED INTERCEPTORS.

    None of the funds authorized to be appropriated by this or any 
other Act may be used for research, development, test, evaluation, 
procurement, or deployment of nuclear armed interceptors of a missile 
defense system.

SEC. 227. REPORTS ON FLIGHT TESTING OF GROUND-BASED MIDCOURSE NATIONAL 
              MISSILE DEFENSE SYSTEM.

    (a) Requirement.--The Director of the United States Missile Defense 
Agency shall submit to the congressional defense committees a report on 
each flight test of the Ground-based Midcourse national missile defense 
system. The report shall be submitted not later than 120 days after the 
date of the test.
    (b) Content.--A report on a flight test under subsection (a) shall 
include the following matters:
            (1) A thorough discussion of the content and objectives of 
        the test.
            (2) For each test objective, a statement regarding whether 
        the objective was achieved.
            (3) For any test objective not achieved--
                    (A) a thorough discussion describing the reasons 
                for not achieving the objective; and
                    (B) a discussion of any plans for future tests to 
                achieve the objective.
    (c) Format.--The reports required under subsection (a) shall be 
submitted in classified and unclassified form.

   Subtitle D--Improved Management of Department of Defense Test and 
                         Evaluation Facilities

SEC. 231. DEPARTMENT OF DEFENSE TEST AND EVALUATION RESOURCE 
              ENTERPRISE.

    (a) Establishment.--Section 139 of title 10, United States Code, is 
amended by adding at the end the following new subsection:
    ``(k)(1) There is a Test and Evaluation Resource Enterprise within 
the Department of Defense. The head of the Test and Evaluation Resource 
Enterprise shall report to the Director of Operational Test and 
Evaluation.
    ``(2)(A) The head of the Test and Evaluation Resource Enterprise 
shall manage all funds available to the Department of Defense for the 
support of investment in, operation and maintenance of, development of, 
and management of the test and evaluation facilities and resources of 
the Major Range and Test Facility Base. All such funds shall be 
transferred to and placed under the control of the head of the 
Department of Defense Test and Evaluation Resource Enterprise.
    ``(B) Subparagraph (A) shall not be construed to authorize the head 
of the Test and Evaluation Enterprise, nor to impair the authority of 
the Secretary of a military department, to manage the funds available 
to that military department for the support of investment in, operation 
and maintenance of, development of, and management of the training 
facilities and resources of the Major Range and Test Facility Base.
    ``(3) The head of the Test and Evaluation Resource Enterprise 
shall--
            ``(A) ensure that the planning for and execution of the 
        testing of a system within the Major Range and Test Facility 
        Base is performed by the activity of a military department that 
        is responsible for the testing;
            ``(B) ensure that the military department operating a 
        facility or resource within the Major Range and Test Facility 
        Base charges an organization using the facility or resource for 
        testing only the incremental cost of the operation of the 
        facility or resource that is attributable to the testing;
            ``(C) ensure that the military department operating a 
        facility or resource within the Major Range and Test Facility 
        Base comprehensively and consistently applies sound enterprise 
        management practices in the management of the facility or 
        resource;
            ``(D) make investments that are prudent for ensuring that 
        Department of Defense test and evaluation facilities and 
        resources are adequate to meet the current and future testing 
        requirements of Department of Defense programs;
            ``(E) ensure that there is in place a simplified financial 
        management and accounting system for Department of Defense test 
        and evaluation facilities and resources and that the system is 
        uniformly applied to the operation of such facilities and 
        resources throughout the Department; and
            ``(F) ensure that unnecessary costs of owning and operating 
        Department of Defense test and evaluation resources are not 
        incurred.
    ``(4) In this section, the term `Major Range and Test Facility 
Base' means the test and evaluation facilities and resources that are 
designated by the Director of Operational Test and Evaluation as 
facilities and resources comprising the Major Range and Test Facility 
Base.''.
    (b) Effective Date and Transition Requirements.--(1) The amendment 
made by paragraph (1) shall take effect one year after the date of the 
enactment of this Act.
    (2)(A) The Secretary of Defense shall develop a transition plan to 
ensure that the head of the Test and Evaluation Resource Enterprise is 
prepared to assume the responsibilities under subsection (k) of section 
139 of title 10, United States Code (as added by subsection (a)), on 
the effective date provided in paragraph (1).
    (B) Until the Test and Evaluation Resource Enterprise has been 
established, all investments of $500,000 or more in the Major Range and 
Test Facility Base of the Department of Defense shall be subject to the 
approval of the Director of Operational Test and Evaluation.
    (C) In this paragraph, the term ``Major Range and Test Facility 
Base'' has the meaning given that term in section 139(k)(4) of title 
10, United States Code, as added by subsection (a).

SEC. 232. TRANSFER OF TESTING FUNDS FROM PROGRAM ACCOUNTS TO 
              INFRASTRUCTURE ACCOUNTS.

    (a) Transfer of Funds.--Notwithstanding any other provision of this 
Act, amounts authorized to be appropriated by this title for 
demonstration and validation, engineering and manufacturing 
development, and operational systems development shall be transferred 
to the major test and evaluation investment programs of the military 
departments and to the Central Test and Evaluation Investment Program 
of the Department of Defense, as follows:
            (1) For transfer to the major test and evaluation 
        investment program of the Army, the amount equal to 0.625 
        percent of the total amount authorized to be appropriated by 
        this title for the Army for demonstration and validation, 
        engineering and manufacturing development, and operational 
        systems development.
            (2) For transfer to the major test and evaluation 
        investment program of the Navy, the amount equal to 0.625 
        percent of the total amount authorized to be appropriated by 
        this title for the Navy for demonstration and validation, 
        engineering and manufacturing development, and operational 
        systems development.
            (3) For transfer to the major test and evaluation 
        investment program of the Air Force, the amount equal to 0.625 
        percent of the total amount authorized to be appropriated by 
        this title for the Air Force for demonstration and validation, 
        engineering and manufacturing development, and operational 
        systems development.
            (4) For transfer to the Central Test and Evaluation 
        Investment Program of the Department of Defense, the amount 
        equal to 0.625 percent of the total amount authorized to be 
        appropriated by this title for Defense-wide demonstration and 
        validation, engineering and manufacturing development, and 
        operational systems development.
    (b) Institutional Funding of Test and Evaluation Facilities.--
(1)(A) Chapter 433 of title 10, United States Code, is amended by 
inserting after the table of sections at the beginning of such chapter 
the following new section:
``Sec. 4531. Test and evaluation: use of facilities
    ``(a) Charges for Use.--The Secretary of the Army may charge an 
entity for using a facility or resource of the Army within the Major 
Range and Test Facility Base for testing. The amount charged may not 
exceed the incremental cost to the Army of the use of the facility or 
resource by that user for the testing.
    ``(b) Institutional and Overhead Costs.--The institutional and 
overhead costs of a facility or resource of the Army that is within the 
Major Range and Test Facility Base shall be paid out of the major test 
and evaluation investment accounts of the Army, the Central Test and 
Evaluation Investment Program of the Department of Defense, and other 
appropriate appropriations made directly to the Army.
    ``(c) Major Range and Test Facility Base Defined.--In this section:
            ``(1) The term `Major Range and Test Facility Base' has the 
        meaning given the term in section 139(k)(4) of this title.
            ``(2) The term `institutional and overhead costs', with 
        respect to a facility or resource within the Major Range Test 
        and Facility Base--
                    ``(A) means the costs of maintaining, operating, 
                upgrading, and modernizing the facility or resource; 
                and
                    ``(B) does not include an incremental cost of 
                operating the facility or resource that is attributable 
                to the use of the facility or resource for testing 
                under a particular program.''.
    (B) The table of section at the beginning of such chapter is 
amended by inserting before the item relating to section 7522 the 
following new item:

``4531. Test and evaluation: use of facilities.''.
    (2)(A) Chapter 645 of title 10, United States Code, is amended by 
inserting after the table of sections at the beginning of such chapter 
the following new section:
``Sec. 7521. Test and evaluation: use of facilities
    ``(a) Charges for Use.--The Secretary of the Navy may charge an 
entity for using a facility or resource of the Navy within the Major 
Range and Test Facility Base for testing. The amount charged may not 
exceed the incremental cost to the Navy of the use of the facility or 
resource by that user for the testing.
    ``(b) Institutional and Overhead Costs.--The institutional and 
overhead costs of a facility or resource of the Navy that is within the 
Major Range and Test Facility Base shall be paid out of the major test 
and evaluation investment accounts of the Navy, the Central Test and 
Evaluation Investment Program of the Department of Defense, and other 
appropriate appropriations made directly to the Navy.
    ``(c) Major Range and Test Facility Base Defined.--In this section:
            ``(1) The term `Major Range and Test Facility Base' has the 
        meaning given the term in section 139(k)(4) of this title.
            ``(2) The term `institutional and overhead costs', with 
        respect to a facility or resource within the Major Range Test 
        and Facility Base--
                    ``(A) means the costs of maintaining, operating, 
                upgrading, and modernizing the facility or resource; 
                and
                    ``(B) does not include an incremental cost of 
                operating the facility or resource that is attributable 
                to the use of the facility or resource for testing 
                under a particular program.''.
    (B) The table of section at the beginning of such chapter is 
amended by inserting before the item relating to section 7522 the 
following new item:

``7521. Test and evaluation: use of facilities.''.
    (3)(A) Chapter 933 of title 10, United States Code, is amended by 
inserting after the table of sections at the beginning of such chapter 
the following new section:
``Sec. 9531. Test and evaluation: use of facilities
    ``(a) Charges for Use.--The Secretary of the Air Force may charge 
an entity for using a facility or resource of the Air Force within the 
Major Range and Test Facility Base for testing. The amount charged may 
not exceed the incremental cost to the Air Force of the use of the 
facility or resource by that user for the testing.
    ``(b) Institutional and Overhead Costs.--The institutional and 
overhead costs of a facility or resource of the Air Force that is 
within the Major Range and Test Facility Base shall be paid out of the 
major test and evaluation investment accounts of the Air Force, the 
Central Test and Evaluation Investment Program of the Department of 
Defense, and other appropriate appropriations made directly to the Air 
Force.
    ``(c) Major Range and Test Facility Base Defined.--In this section:
            ``(1) The term `Major Range and Test Facility Base' has the 
        meaning given the term in section 139(k)(4) of this title.
            ``(2) The term `institutional and overhead costs', with 
        respect to a facility or resource within the Major Range Test 
        and Facility Base--
                    ``(A) means the costs of maintaining, operating, 
                upgrading, and modernizing the facility or resource; 
                and
                    ``(B) does not include an incremental cost of 
                operating the facility or resource that is attributable 
                to the use of the facility or resource for testing 
                under a particular program.''.
    (B) The table of section at the beginning of such chapter is 
amended by inserting before the item relating to section 9532 the 
following new item:

``9531. Test and evaluation: use of facilities.''.
    (4) Not later than 30 days after the date of the enactment of this 
Act, the Under Secretary of Defense (Comptroller) shall review the 
funding policies of each military department to ensure that the 
Secretary of the military department has in place the policies 
necessary to comply with the Secretary's responsibilities under section 
4531, 7521, or 9531 of title 10, United States Code (as added by this 
subsection), as the case may be. The Under Secretary shall consult with 
the Director of Operational Test and Evaluation in carrying out the 
review.

SEC. 233. INCREASED INVESTMENT IN TEST AND EVALUATION FACILITIES.

    (a) Amount.--Of the amount authorized to be appropriated under 
section 201(4), $251,276,000 shall be available for the Central Test 
and Evaluation Investment Program of the Department of Defense.
    (b) Additional Available Funding.--In addition to the amount made 
available under subsection (a), amounts transferred pursuant to section 
232(a)(4) shall be available for the Central Test and Evaluation 
Investment Program of the Department of Defense.

SEC. 234. UNIFORM FINANCIAL MANAGEMENT SYSTEM FOR DEPARTMENT OF DEFENSE 
              TEST AND EVALUATION FACILITIES.

    (a) Requirement for System.--Not later than two years after the 
date of the enactment of this Act, the Secretary of Defense shall 
implement a single financial management and accounting system for all 
test and evaluation facilities of the Department of Defense.
    (b) System Features.--The financial management and accounting 
system shall be designed to achieve, at a minimum, the following 
functional objectives:
            (1) Enable managers within the Department of Defense to 
        compare the costs of conducting test and evaluation activities 
        in the various facilities of the military departments.
            (2) Enable the Secretary of Defense--
                    (A) to make prudent investment decisions; and
                    (B) to reduce the extent to which unnecessary costs 
                of owning and operating Department of Defense test and 
                evaluation facilities are incurred.
            (3) Enable the Department of Defense to track the total 
        cost of test and evaluation activities.
            (4) Comply with the financial management enterprise 
        architecture developed by the Secretary of Defense under 
        section 1006.

SEC. 235. TEST AND EVALUATION WORKFORCE IMPROVEMENTS.

    (a) Report on Capabilities.--Not later than March 15, 2003, the 
Under Secretary of Defense for Acquisition, Technology, and Logistics 
shall submit to Congress a report on the capabilities of the test and 
evaluation workforce of the Department of Defense. The Under Secretary 
shall consult with the Under Secretary of Defense for Personnel and 
Readiness and the Director of Operational Test and Evaluation in 
preparing the report.
    (b) Requirement for Plan.--(1) The report shall contain a plan for 
taking the actions necessary to ensure that the test and evaluation 
workforce of the Department of Defense is of sufficient size and has 
the expertise necessary to timely and accurately identify issues of 
military suitability and effectiveness of Department of Defense systems 
through testing of the systems.
    (2) The plan shall set forth objectives for the size, composition, 
and qualifications of the workforce, and shall specify the actions 
(including recruitment, retention, and training) and milestones for 
achieving the objectives.
    (c) Additional Matters.--The report shall also include the 
following matters:
            (1) An assessment of the changing size and demographics of 
        the test and evaluation workforce, including the impact of 
        anticipated retirements among the most experienced personnel 
        over the five-year period beginning with 2003, together with a 
        discussion of the management actions necessary to address the 
        changes.
            (2) An assessment of the anticipated workloads and 
        responsibilities of the test and evaluation workforce over the 
        ten-year period beginning with 2003, together with the number 
        and qualifications of military and civilian personnel necessary 
        to carry out such workloads and responsibilities.
            (3) The Secretary's specific plans for using the 
        demonstration authority provided in section 4308 of the 
        National Defense Authorization Act for Fiscal Year 1996 (Public 
        Law 104-106; 10 U.S.C. 1701 note) and other special personnel 
        management authorities of the Secretary to attract and retain 
        qualified personnel in the test and evaluation workforce.
            (4) Any recommended legislation or additional special 
        authority that the Secretary considers appropriate for 
        facilitating the recruitment and retention of qualified 
        personnel for the test and evaluation workforce.
            (5) Any other matters that are relevant to the capabilities 
        of the test and evaluation workforce.

SEC. 236. COMPLIANCE WITH TESTING REQUIREMENTS.

    (a) Annual OT&E Report.--Subsection (g) of section 139 of title 10, 
United States Code, is amended by inserting after the fourth sentence 
the following: ``The report for a fiscal year shall also include an 
assessment of the waivers of and deviations from requirements in test 
and evaluation master plans and other testing requirements that 
occurred during the fiscal year, any concerns raised by the waivers or 
deviations, and the actions that have been taken or are planned to be 
taken to address the concerns.''.
    (b) Reorganization of Provision.--Subsection (g) of such section, 
as amended by subsection (a), is further amended--
            (1) by inserting ``(1)'' after ``(g)'';
            (2) by designating the second sentence as paragraph (2);
            (3) by designating the third sentence as paragraph (3);
            (4) by designating the matter consisting of the fourth and 
        fifth sentences as paragraph (4);
            (5) by designating the sixth sentence as paragraph (5); and
            (6) by realigning paragraphs (2), (3), (4), and (5), as so 
        designated, two ems from the left margin.

SEC. 237. REPORT ON IMPLEMENTATION OF DEFENSE SCIENCE BOARD 
              RECOMMENDATIONS.

    (a) Requirement.--Not later than March 1, 2003, the Secretary of 
Defense shall submit to the congressional defense committees a report 
on the extent of the implementation of the recommendations set forth in 
the December 2000 Report of the Defense Science Board Task Force on 
Test and Evaluation Capabilities.
    (b) Content.--The report shall include the following:
            (1) For each recommendation that is being implemented or 
        that the Secretary plans to implement--
                    (A) a summary of all actions that have been taken 
                to implement the recommendation; and
                    (B) a schedule, with specific milestones, for 
                completing the implementation of the recommendation.
            (2) For each recommendation that the Secretary does not 
        plan to implement--
                    (A) the reasons for the decision not to implement 
                the recommendation; and
                    (B) a summary of any alternative actions the 
                Secretary plans to take to address the purposes 
                underlying the recommendation.
            (3) A summary of any additional actions the Secretary plans 
        to take to address concerns raised in the December 2000 Report 
        of the Defense Science Board Task Force on Test and Evaluation 
        Capabilities about the state of the test and evaluation 
        infrastructure of the Department of Defense.

                       Subtitle E--Other Matters

SEC. 241. PILOT PROGRAMS FOR REVITALIZING DEPARTMENT OF DEFENSE 
              LABORATORIES.

    (a) Additional Pilot Program.--(1) The Secretary of Defense may 
carry out a pilot program to demonstrate improved efficiency in the 
performance of research, development, test, and evaluation functions of 
the Department of Defense.
    (2) Under the pilot program, the Secretary of Defense shall provide 
the director of one science and technology laboratory, and the director 
of one test and evaluation laboratory, of each military department with 
authority for the following:
            (A) To use innovative methods of personnel management 
        appropriate for ensuring that the selected laboratories can--
                    (i) employ and retain a workforce appropriately 
                balanced between permanent and temporary personnel and 
                among workers with appropriate levels of skills and 
                experience; and
                    (ii) effectively shape workforces to ensure that 
                the workforces have the necessary sets of skills and 
                experience to fulfill their organizational missions.
            (B) To develop or expand innovative methods of entering 
        into and expanding cooperative relationships and arrangements 
        with private sector organizations, educational institutions 
        (including primary and secondary schools), and State and local 
        governments to facilitate the training of a future scientific 
        and technical workforce that will contribute significantly to 
        the accomplishment of organizational missions.
            (C) To develop or expand innovative methods of establishing 
        cooperative relationships and arrangements with private sector 
        organizations and educational institutions to promote the 
        establishment of the technological industrial base in areas 
        critical for Department of Defense technological requirements.
            (D) To waive any restrictions not required by law that 
        apply to the demonstration and implementation of methods for 
        achieving the objectives set forth in subparagraphs (A), (B), 
        and (C).
    (3) The Secretary may carry out the pilot program under this 
subsection at each selected laboratory for a period of three years 
beginning not later than March 1, 2003.
    (b) Relationship to Fiscal Years 1999 and 2000 Revitalization Pilot 
Programs.--The pilot program under this section is in addition to, but 
may be carried out in conjunction with, the fiscal years 1999 and 2000 
revitalization pilot programs.
    (c) Reports.--(1) Not later than January 1, 2003, the Secretary 
shall submit to Congress a report on the experience under the fiscal 
years 1999 and 2000 revitalization pilot programs in exercising the 
authorities provided for the administration of those programs. The 
report shall include a description of--
            (A) barriers to the exercise of the authorities that have 
        been encountered;
            (B) the proposed solutions for overcoming the barriers; and
            (C) the progress made in overcoming the barriers.
    (2) Not later than September 1, 2003, the Secretary of Defense 
shall submit to Congress a report on the implementation of the pilot 
program under subsection (a) and the fiscal years 1999 and 2000 
revitalization pilot programs. The report shall include, for each such 
pilot program, the following:
            (A) Each laboratory selected for the pilot program.
            (B) To the extent practicable, a description of the 
        innovative methods that are to be tested at each laboratory.
            (C) The criteria to be used for measuring the success of 
        each method to be tested.
    (3) Not later than 90 days after the expiration of the period for 
the participation of a laboratory in a pilot program referred to in 
paragraph (2), the Secretary of Defense shall submit to Congress a 
final report on the participation of that laboratory in the pilot 
program. The report shall include the following:
            (A) A description of the methods tested.
            (B) The results of the testing.
            (C) The lessons learned.
            (D) Any proposal for legislation that the Secretary 
        recommends on the basis of the experience at that laboratory 
        under the pilot program.
    (d) Extension of Authority for Other Revitalization Pilot 
Programs.--(1) Section 246(a)(4) of the Strom Thurmond National Defense 
Authorization Act for Fiscal Year 1999 (Public Law 105-261; 112 Stat. 
1956; 10 U.S.C. 2358 note) is amended by striking ``a period of three 
years'' and inserting ``up to six years''.
    (2) Section 245(a)(4) of the National Defense Authorization Act for 
Fiscal Year 2000 (Public Law 106-65; 113 Stat. 553; 10 U.S.C. 2358 
note) is amended by striking ``a period of three years'' and inserting 
``up to five years''.
    (e) Partnerships Under Pilot Program.--(1) The Secretary of Defense 
may authorize one or more laboratories and test centers participating 
in the pilot program under subsection (a) or in one of the fiscal years 
1999 and 2000 revitalization pilot programs to enter into a cooperative 
arrangement (in this subsection referred to as a ``public-private 
partnership'') with entities in the private sector and institutions of 
higher education for the performance of work.
    (2) A competitive process shall be used for the selection of 
entities outside the Government to participate in a public-private 
partnership.
    (3)(A) Not more than one public-private partnership may be 
established as a limited liability corporation.
    (B) An entity participating in a limited liability corporation as a 
party to a public-private partnership under the pilot program may 
contribute funds to the corporation, accept contribution of funds for 
the corporation, and provide materials, services, and use of facilities 
for research, technology, and infrastructure of the corporation, if it 
is determined under regulations prescribed by the Secretary of Defense 
that doing so will improve the efficiency of the performance of 
research, test, and evaluation functions of the Department of Defense.
    (f) Excepted Service Under Pilot Program.--(1) To facilitate 
recruitment of experts in science and engineering to improve the 
performance of research, test, and evaluation functions of the 
Department of Defense, the Secretary of Defense may--
            (A) designate a total of not more than 30 scientific, 
        engineering, and technology positions at the laboratories and 
        test centers participating in the pilot program under 
        subsection (a) or in any of the fiscal years 1999 and 2000 
        revitalization pilot programs as positions in the excepted 
        service (as defined in section 2103(a) of title 5, United 
        States Code);
            (B) appoint individuals to such positions; and
            (C) fix the compensation of such individuals.
    (2) The maximum rate of basic pay for a position in the excepted 
service pursuant to a designation made under paragraph (1) may not 
exceed the maximum rate of basic pay authorized for senior-level 
positions under section 5376 of title 5, United States Code, 
notwithstanding any provision of such title governing the rates of pay 
or classification of employees in the executive branch.
    (g) Fiscal Years 1999 and 2000 Revitalization Pilot Programs 
Defined.--In this section, the term ``fiscal years 1999 and 2000 
revitalization pilot programs'' means the pilot programs authorized 
by--
            (1) section 246 of the Strom Thurmond National Defense 
        Authorization Act for Fiscal Year 1999 (Public Law 105-261; 112 
        Stat. 1955; 10 U.S.C. 2358 note); and
            (2) section 245 of the National Defense Authorization Act 
        for Fiscal Year 2000 (Public Law 106-65; 113 Stat. 552; 10 
        U.S.C. 2358 note).

SEC. 242. TECHNOLOGY TRANSITION INITIATIVE.

    (a) Establishment and Conduct.--(1) Chapter 139 of title 10, United 
States Code, is amended by inserting after section 2359 the following 
new section:
``Sec. 2359a. Technology Transition Initiative
    ``(a) Requirement for Program.--The Secretary of Defense shall 
carry out a Technology Transition Initiative to facilitate the rapid 
transition of new technologies from science and technology programs of 
the Department of Defense into acquisition programs for the production 
of the technologies.
    ``(b) Objectives.--The objectives of the Initiative are as follows:
            ``(1) To accelerate the introduction of new technologies 
        into Department of Defense acquisition programs appropriate for 
        the technologies.
            ``(2) To successfully demonstrate new technologies in 
        relevant environments.
            ``(3) To ensure that new technologies are sufficiently 
        mature for production.
    ``(c) Management.--(1) The Secretary of Defense shall designate a 
senior official in the Office of the Secretary of Defense to manage the 
Initiative.
    ``(2) In administering the Initiative, the Initiative Manager 
shall--
            ``(A) report directly to the Under Secretary of Defense for 
        Acquisition, Technology, and Logistics; and
            ``(B) obtain advice and other assistance from the 
        Technology Transition Council established under subsection (e).
    ``(3) The Initiative Manager shall--
            ``(A) in consultation with the Technology Transition 
        Council established under subsection (e), identify promising 
        technologies that have been demonstrated in science and 
        technology programs of the Department of Defense;
            ``(B) develop a list of those technologies that have 
        promising potential for transition into acquisition programs of 
        the Department of Defense and transmit the list to the 
        acquisition executive of each military department and to 
        Congress;
            ``(C) identify potential sponsors in the Department of 
        Defense to undertake the transition of such technologies into 
        production;
            ``(D) work with the science and technology community and 
        the acquisition community to develop memoranda of agreement, 
        joint funding agreements, and other cooperative arrangements to 
        provide for the transition of the technologies into production; 
        and
            ``(E) provide funding support for selected projects under 
        subsection (d).
    ``(d) Jointly Funded Projects.--(1) The acquisition executive of 
each military department shall select technology projects of the 
military department to recommend for funding support under the 
Initiative and shall submit a list of the recommended projects, ranked 
in order of priority, to the Initiative Manager. The projects shall be 
selected, in a competitive process, on the basis of the highest 
potential benefits in areas of interest identified by the Secretary of 
that military department.
    ``(2) The Initiative Manager, in consultation with the Technology 
Transition Council established under subsection (e), shall select 
projects for funding support from among the projects on the lists 
submitted under paragraph (1). The Initiative Manager shall provide 
funds for each selected project. The total amount provided for a 
project shall be determined by agreement between the Initiative Manager 
and the acquisition executive of the military department concerned, but 
shall not be less than the amount equal to 50 percent of the total cost 
of the project.
    ``(3) The Initiative Manager shall not fund any one project under 
this subsection for more than 3 years.
    ``(4) The acquisition executive of the military department shall 
manage each project selected under paragraph (2) that is undertaken by 
the military department. Memoranda of agreement, joint funding 
agreements, and other cooperative arrangements between the science and 
technology community and the acquisition community shall be used in 
carrying out the project if the acquisition executive determines that 
it is appropriate to do so to achieve the objectives of the project.
    ``(e) Technology Transition Council.--(1) There is a Technology 
Transition Council in the Department of Defense. The Council is 
composed of the following members:
            ``(A) The science and technology executives of the military 
        departments and Defense Agencies.
            ``(B) The acquisition executives of the military 
        departments.
            ``(C) The members of the Joint Requirements Oversight 
        Council.
    ``(2) The Technology Transition Council shall provide advice and 
assistance to the Initiative Manager under this section.
    ``(f) Definitions.--In this section:
            ``(1) The term `acquisition executive', with respect to a 
        military department, means the official designated as the 
        senior procurement executive for that military department under 
        section 16(3) of the Office of Federal Procurement Policy Act 
        (41 U.S.C. 414(3)).
            ``(2) The term `Initiative' means the Technology Transition 
        Initiative carried out under this section.
            ``(3) The term `Initiative Manager' means the official 
        designated to manage the Initiative under subsection (c).''.
    (2) The table of sections at the beginning of such chapter is 
amended by inserting after the item relating to section 2395 the 
following new item:

``2359a. Technology Transition Initiative.''.
    (b) Authorization of Appropriations.--Of the amount authorized to 
be appropriated under section 201(4), $50,000,000 shall be available 
for the Technology Transition Initiative under section 2359a of title 
10, United States Code (as added by subsection (a)), and for other 
technology transition activities of the Department of Defense.

SEC. 243. ENCOURAGEMENT OF SMALL BUSINESSES AND NONTRADITIONAL DEFENSE 
              CONTRACTORS TO SUBMIT PROPOSALS POTENTIALLY BENEFICIAL 
              FOR COMBATING TERRORISM.

    (a) Establishment of Outreach Program.--During the 3-year period 
beginning on the date of the enactment of this Act, the Secretary of 
Defense shall carry out a program of outreach to small businesses and 
nontraditional defense contractors for the purpose set forth in 
subsection (b).
    (b) Purpose.--The purpose of the outreach program is to provide a 
process for reviewing and evaluating research activities of, and new 
technologies being developed by, small businesses and nontraditional 
defense contractors that have the potential for meeting a defense 
requirement or technology development goal of the Department of Defense 
that relates to the mission of the Department of Defense to combat 
terrorism.
    (c) Goals.--The goals of the outreach program are as follows:
            (1) To increase efforts within the Department of Defense to 
        survey and identify technologies being developed outside the 
        Department that have the potential described in subsection (b).
            (2) To provide the Under Secretary of Defense for 
        Acquisition, Technology, and Logistics with a source of expert 
        advice on new technologies for combating terrorism.
            (3) To increase efforts to educate nontraditional defense 
        contractors on Department of Defense acquisition processes, 
        including regulations, procedures, funding opportunities, 
        military needs and requirements, and technology transfer so as 
        to encourage such contractors to submit proposals regarding 
        research activities and technologies described in subsection 
        (b).
            (4) To increase efforts to provide timely response by the 
        Department of Defense to acquisition proposals (including 
        unsolicited proposals) submitted to the Department by small 
        businesses and by nontraditional defense contractors regarding 
        research activities and technologies described in subsection 
        (b), including through the use of electronic transactions to 
        facilitate the processing of proposals.
    (d) Review Panel.--(1) The Secretary shall appoint, under the 
outreach program, a panel for the review and evaluation of proposals 
described in subsection (c)(4).
    (2) The panel shall be composed of qualified personnel from the 
military departments, relevant Defense Agencies, industry, academia, 
and other private sector organizations.
    (3) The panel shall review and evaluate proposals that, as 
determined by the panel, may present a unique and valuable approach for 
meeting a defense requirement or technology development goal related to 
combating terrorism. In carrying out duties under this paragraph, the 
panel may act through representatives designated by the panel.
    (4) The panel shall--
            (A) within 60 days after receiving such a proposal, 
        transmit to the source of the proposal a notification regarding 
        whether the proposal has been selected for review by the panel;
            (B) to the maximum extent practicable, complete the review 
        of each selected proposal within 120 days after the proposal is 
        selected for review by the panel; and
            (C) after completing the review, transmit an evaluation of 
        the proposal to the source of the proposal.
    (5) The Secretary shall ensure that the panel, in reviewing and 
evaluating proposals under this subsection, has the authority to obtain 
assistance, to a reasonable extent, from the appropriate technical 
resources of the laboratories, research, development, and engineering 
centers, test and evaluation activities, and other elements of the 
Department of Defense.
    (6) If, after completing the review of a proposal, the panel 
determines that the proposal represents a unique and valuable approach 
to meeting a defense requirement or technology development goal related 
to combating terrorism, the panel shall submit that determination to 
the Under Secretary of Defense for Acquisition, Technology, and 
Logistics together with any recommendations that the panel considers 
appropriate regarding the proposal.
    (7) The Secretary of Defense shall ensure that there is no conflict 
of interest on the part of a member of the panel with respect to the 
review and evaluation of a proposal by the panel.
    (e) Definitions.--In this section:
            (1) The term ``nontraditional defense contractor'' means an 
        entity that has not, for at least one year prior to the date of 
        the enactment of this Act, entered into, or performed with 
        respect to, any contract described in paragraph (1) or (2) of 
        section 845(e) of the National Defense Authorization Act for 
        Fiscal Year 1994 (10 U.S.C. 2371 note).
            (2) The term ``small business'' means a business concern 
        that meets the applicable size standards prescribed pursuant to 
        section 3(a) of the Small Business Act (15 U.S.C. 632(a)).

SEC. 244. VEHICLE FUEL CELL PROGRAM.

    (a) Program.--The Secretary of Defense shall carry out a vehicle 
fuel cell technology development program in cooperation with the 
Secretary of Energy, the heads of other Federal agencies appropriate 
for participation in the program, and industry.
    (b) Goals and Objectives.--The goals and objectives of the program 
shall be as follows:
            (1) To identify and support technological advances that are 
        necessary for the development of fuel cell technology for use 
        in vehicles of types to be used by the Department of Defense.
            (2) To ensure that critical technology advances are shared 
        among the various fuel cell technology programs within the 
        Federal Government.
            (3) To ensure maximum leverage of Federal Government 
        funding for fuel cell technology development.
    (c) Content of Program.--The program shall include--
            (1) development of vehicle propulsion technologies and fuel 
        cell auxiliary power units, together with pilot demonstrations 
        of such technologies, as appropriate; and
            (2) development of technologies necessary to address 
        critical issues such as hydrogen storage and the need for a 
        hydrogen fuel infrastructure.
    (d) Cooperation With Industry.--(1) The Secretary shall include the 
automobile and truck manufacturing industry and its systems and 
component suppliers in the cooperative involvement of industry in the 
program.
    (2) The Secretary of Defense shall consider whether, in order to 
facilitate the cooperation of industry in the program, the Secretary 
and one or more companies in industry should enter into a cooperative 
agreement that establishes an entity to carry out activities required 
under subsection (c). An entity established by any such agreement shall 
be known as a defense industry fuel cell partnership.
    (3) The Secretary of Defense shall provide for industry to bear, in 
cash or in kind, at least one-half of the total cost of carrying out 
the program.
    (e) Amount for Program.--Of the amount authorized to be 
appropriated by section 201(4), $10,000,000 shall be available for the 
program required by this section.

SEC. 245. DEFENSE NANOTECHNOLOGY RESEARCH AND DEVELOPMENT PROGRAM.

    (a) Establishment.--The Secretary of Defense shall carry out a 
defense nanotechnology research and development program.
    (b) Purposes.--The purposes of the program are as follows:
            (1) To ensure United States global superiority in 
        nanotechnology necessary for meeting national security 
        requirements.
            (2) To coordinate all nanoscale research and development 
        within the Department of Defense, and to provide for 
        interagency cooperation and collaboration on nanoscale research 
        and development between the Department of Defense and other 
        departments and agencies of the United States that are involved 
        in nanoscale research and development.
            (3) To develop and manage a portfolio of fundamental and 
        applied nanoscience and engineering research initiatives that 
        is stable, consistent, and balanced across scientific 
        disciplines.
            (4) To accelerate the transition and deployment of 
        technologies and concepts derived from nanoscale research and 
        development into the Armed Forces, and to establish policies, 
        procedures, and standards for measuring the success of such 
        efforts.
            (5) To collect, synthesize, and disseminate critical 
        information on nanoscale research and development.
    (c) Administration.--In carrying out the program, the Secretary 
shall act through the Director of Defense Research and Engineering, who 
shall supervise the planning, management, and coordination of the 
program. The Director, in consultation with the Secretaries of the 
military departments and the heads of participating Defense Agencies 
and other departments and agencies of the United States, shall--
            (1) prescribe a set of long-term challenges and a set of 
        specific technical goals for the program;
            (2) develop a coordinated and integrated research and 
        investment plan for meeting the long-term challenges and 
        achieving the specific technical goals; and
            (3) develop memoranda of agreement, joint funding 
        agreements, and other cooperative arrangements necessary for 
        meeting the long-term challenges and achieving the specific 
        technical goals.
    (d) Annual Report.--Not later than March 1 of each of 2004, 2005, 
2006, and 2007, the Director of Defense Research and Engineering shall 
submit to the congressional defense committees a report on the program. 
The report shall contain the following matters:
            (1) A review of--
                    (A) the long-term challenges and specific goals of 
                the program; and
                    (B) the progress made toward meeting the challenges 
                and achieving the goals.
            (2) An assessment of current and proposed funding levels, 
        including the adequacy of such funding levels to support 
        program activities.
            (3) A review of the coordination of activities within the 
        Department of Defense and with other departments and agencies.
            (4) An assessment of the extent to which effective 
        technology transition paths have been established as a result 
        of activities under the program.
            (5) Recommendations for additional program activities to 
        meet emerging national security requirements.

SEC. 246. ACTIVITIES AND ASSESSMENT OF THE DEFENSE EXPERIMENTAL PROGRAM 
              TO STIMULATE COMPETITIVE RESEARCH.

    (a) Authorized Activities.--Subsection (c) of section 257 of the 
National Defense Authorization Act for Fiscal Year 1995 (Public Law 
103-337; 10 U.S.C. 2358 note), is amended--
            (1) in paragraph (1), by striking ``research grants'' and 
        inserting ``grants for research and instrumentation to support 
        such research''; and
            (2) by adding at the end the following new paragraph:
            ``(3) Any other activities that are determined necessary to 
        further the achievement of the objectives of the program.''.
    (b) Coordination.--Subsection (e) of such section is amended by 
adding at the end the following:
    ``(4) The Secretary shall contract with the National Research 
Council to assess the effectiveness of the Defense Experimental Program 
to Stimulate Competitive Research in achieving the program objectives 
set forth in subsection (b). The assessment provided to the Secretary 
shall include the following:
            ``(A) An assessment of the eligibility requirements of the 
        program and the relationship of such requirements to the 
        overall research base in the States, the stability of research 
        initiatives in the States, and the achievement of the program 
        objectives, together with any recommendations for modification 
        of the eligibility requirements.
            ``(B) An assessment of the program structure and the 
        effects of that structure on the development of a variety of 
        research activities in the States and the personnel available 
        to carry out such activities, together with any recommendations 
        for modification of program structure, funding levels, and 
        funding strategy.
            ``(C) An assessment of the past and ongoing activities of 
        the State planning committees in supporting the achievement of 
        the program objectives.
            ``(D) An assessment of the effects of the various 
        eligibility requirements of the various Federal programs to 
        stimulate competitive research on the ability of States to 
        develop niche research areas of expertise, exploit 
        opportunities for developing interdisciplinary research 
        initiatives, and achieve program objectives.''.

SEC. 247. FOUR-YEAR EXTENSION OF AUTHORITY OF DARPA TO AWARD PRIZES FOR 
              ADVANCED TECHNOLOGY ACHIEVEMENTS.

    (a) Extension.--Section 2374a(f) of title 10, United States Code, 
is amended by striking ``September 30, 2003'' and inserting ``September 
30, 2007''.
    (b) Report on Administration of Program.--(1) Not later than 
December 31, 2002, the Director of the Defense Advanced Research 
Projects Agency shall submit to the congressional defense committees a 
report on the proposal of the Director for the administration of the 
program to award prizes for advanced technology achievements under 
section 2374a of title 10, United States Code.
    (2) The report shall include the following:
            (A) A description of the proposed goals of the competition 
        under the program, including the technology areas to be 
        promoted by the competition and the relationship of such area 
        to military missions of the Department of Defense.
            (B) The proposed rules of the competition under the program 
        and a description of the proposed management of the 
        competition.
            (C) A description of the manner in which funds for cash 
        prizes under the program will be allocated within the accounts 
        of the Agency if a prize is awarded and claimed.
            (D) A statement of the reasons why the competition is a 
        preferable means of promoting basic, advanced, and applied 
        research, technology development, or prototype projects than 
        other means of promotion of such activities, including 
        contracts, grants, cooperative agreements, and other 
        transactions.

                  TITLE III--OPERATION AND MAINTENANCE

              Subtitle A--Authorization of Appropriations

SEC. 301. OPERATION AND MAINTENANCE FUNDING.

    (a) Authorization of Appropriations.--Funds are hereby authorized 
to be appropriated for fiscal year 2003 for the use of the Armed Forces 
and other activities and agencies of the Department of Defense for 
expenses, not otherwise provided for, for operation and maintenance, in 
amounts as follows:
            (1) For the Army, $24,180,742,000.
            (2) For the Navy, $29,368,961,000.
            (3) For the Marine Corps, $3,558,732,000.
            (4) For the Air Force, $27,445,764,000.
            (5) For Defense-wide activities, $14,492,266,000.
            (6) For the Army Reserve, $1,962,610,000.
            (7) For the Naval Reserve, $1,233,759,000.
            (8) For the Marine Corps Reserve, $190,532,000.
            (9) For the Air Force Reserve, $2,165,004,000.
            (10) For the Army National Guard, $4,506,267,000.
            (11) For the Air National Guard, $4,114,910,000.
            (12) For the Defense Inspector General, $155,165,000.
            (13) For the United States Court of Appeals for the Armed 
        Forces, $9,614,000.
            (14) For Environmental Restoration, Army, $395,900,000.
            (15) For Environmental Restoration, Navy, $256,948,000.
            (16) For Environmental Restoration, Air Force, 
        $389,773,000.
            (17) For Environmental Restoration, Defense-wide, 
        $23,498,000.
            (18) For Environmental Restoration, Formerly Used Defense 
        Sites, $252,102,000.
            (19) For Overseas Humanitarian, Disaster, and Civic Aid 
        programs, $58,400,000.
            (20) For Drug Interdiction and Counter-drug Activities, 
        Defense-wide, $873,907,000.
            (21) For the Kaho'olawe Island Conveyance, Remediation, and 
        Environmental Restoration Trust Fund, $25,000,000.
            (22) For Defense Health Program, $14,202,441,000.
            (23) For Cooperative Threat Reduction programs, 
        $416,700,000.
            (24) For Overseas Contingency Operations Transfer Fund, 
        $50,000,000.
            (25) For Support for International Sporting Competitions, 
        Defense, $19,000,000.
    (b) Adjustment.--The total amount authorized to be appropriated 
pursuant to subsection (a) is reduced by--
            (1) $159,790,000, which represents savings resulting from 
        reduced travel; and
            (2) $615,200,000, which represents savings resulting from 
        foreign currency fluctuations.

SEC. 302. WORKING CAPITAL FUNDS.

    Funds are hereby authorized to be appropriated for fiscal year 2003 
for the use of the Armed Forces and other activities and agencies of 
the Department of Defense for providing capital for working capital and 
revolving funds in amounts as follows:
            (1) For the Defense Working Capital Funds, $387,156,000.
            (2) For the National Defense Sealift Fund, $934,129,000.
            (3) For the Defense Commissary Agency Working Capital Fund, 
        $969,200,000.
            (4) For the Pentagon Reservation Maintenance Revolving 
        Fund, $328,000,000.

SEC. 303. ARMED FORCES RETIREMENT HOME.

    There is hereby authorized to be appropriated for fiscal year 2003 
from the Armed Forces Retirement Home Trust Fund the sum of $69,921,000 
for the operation of the Armed Forces Retirement Home, including the 
Armed Forces Retirement Home--Washington and the Armed Forces 
Retirement Home--Gulfport.

SEC. 304. RANGE ENHANCEMENT INITIATIVE FUND.

    (a) Availability of Funds.--Of the amount authorized to be 
appropriated by section 301(a)(5) for operation and maintenance for 
defense-wide activities, $20,000,000 shall be available for the Range 
Enhancement Initiative Fund for the purpose specified in subsection 
(b).
    (b) Purpose.--Subject to subsection (c), amounts authorized to be 
appropriated for the Range Enhancement Initiative Fund shall be 
available to the Secretary of Defense and the Secretaries of the 
military departments to purchase restrictive easements, including 
easements that implement agreements entered into under section 2697 of 
title 10, United States Code, as added by section 2811 of this Act.
    (c) Transfer of Amounts.--(1) Amounts in the Range Enhancement 
Initiative Fund shall, subject to applicable limitations in 
appropriations Acts, be made available to the Secretary of a military 
department under subsection (b) by transfer from the Fund to the 
applicable operation and maintenance account of the military 
department, including the operation and maintenance account for the 
active component, or for a reserve component, of the military 
department.
    (2) Authority to transfer amounts under paragraph (1) is in 
addition to any other authority to transfer funds under this Act.

SEC. 305. NAVY PILOT HUMAN RESOURCES CALL CENTER, CUTLER, MAINE.

    Of the amount authorized to be appropriated by section 301(a)(2) 
for operation and maintenance for the Navy, $1,500,000 may be available 
for the Navy Pilot Human Resources Call Center, Cutler, Maine.

SEC. 306. NATIONAL ARMY MUSEUM, FORT BELVOIR, VIRGINIA.

    (a) Activation Efforts.--The Secretary of the Army may carry out 
efforts to facilitate the commencement of development for the National 
Army Museum at Fort Belvoir, Virginia.
    (b) Funding.--(1) The amount authorized to be appropriated by 
section 301(a)(1) for operation and maintenance for the Army is hereby 
increased by $100,000.
    (2) Of the amount authorized to be appropriated by section 
301(a)(1) for operation and maintenance for the Army, as increased by 
paragraph (1), $100,000 shall be available to carry out the efforts 
authorized by subsection (a).
    (c) Offset.--The amount authorized to be appropriated by section 
201(1) for research, development, test, and evaluation for the Army is 
hereby reduced by $100,000.

SEC. 307. DISPOSAL OF OBSOLETE VESSELS OF THE NATIONAL DEFENSE RESERVE 
              FLEET.

    Of the amount authorized to be appropriated by section 301(a)(2) 
for operation and maintenance for the Navy, $20,000,000 may be 
available, without fiscal year limitation if so provided in 
appropriations Acts, for expenses related to the disposal of obsolete 
vessels in the Maritime Administration National Defense Reserve Fleet.

                  Subtitle B--Environmental Provisions

SEC. 311. ENHANCEMENT OF AUTHORITY ON COOPERATIVE AGREEMENTS FOR 
              ENVIRONMENTAL PURPOSES.

    Section 2701(d) of title 10, United States Code, is amended--
            (1) by redesignating paragraphs (2) and (3) as paragraphs 
        (3) and (4), respectively; and
            (2) by inserting after paragraph (1) the following new 
        paragraph (2):
            ``(2) Cross-fiscal year agreements.--An agreement with an 
        agency under paragraph (1) may be for a period that begins in 
        one fiscal year and ends in another fiscal year if (without 
        regard to any option to extend the period of the agreement) the 
        period of the agreement does not exceed two years.''.

SEC. 312. MODIFICATION OF AUTHORITY TO CARRY OUT CONSTRUCTION PROJECTS 
              FOR ENVIRONMENTAL RESPONSES.

    (a) Restatement and Modification of Authority.--(1) Chapter 160 of 
title 10, United States Code, is amended by adding at the end the 
following new section:
``Sec. 2711. Environmental restoration projects for environmental 
              responses
    ``(a) The Secretary of Defense or the Secretary of a military 
department may carry out an environmental restoration project if that 
Secretary determines that the project is necessary to carry out a 
response under this chapter or CERCLA.
    ``(b) Any construction, development, conversion, or extension of a 
structure or installation of equipment that is included in an 
environmental restoration project may not be considered military 
construction (as that term is defined in section 2801(a) of this 
title).
    ``(c) Funds authorized for deposit in an account established by 
section 2703(a) of this title shall be the only source of funds to 
conduct an environmental restoration project under this section.
    ``(d) In this section, the term `environmental restoration project' 
includes construction, development, conversion, or extension of a 
structure or installation of equipment in direct support of a 
response.''.
    (2) The table of sections at the beginning of that chapter is 
amended by adding at the end the following new item:

``2711. Environmental restoration projects for environmental 
                            responses.''.
    (b) Repeal of Superseded Provision.--(1) Section 2810 of title 10, 
United States Code, is repealed.
    (2) The table of sections at the beginning of chapter 169 of that 
title is amended by striking the item relating to section 2810.

SEC. 313. INCREASED PROCUREMENT OF ENVIRONMENTALLY PREFERABLE PRODUCTS.

    (a) Procurement Goals.--(1) The Secretary of Defense shall 
establish goals for the increased procurement by the Department of 
Defense of procurement items that are environmentally preferable or are 
made with recovered materials.
    (2) The goals established under paragraph (1) shall be consistent 
with the requirements of section 6002 of the Solid Waste Disposal Act 
(42 U.S.C. 6962).
    (3) In establishing goals under paragraph (1), the Secretary shall 
review the Comprehensive Procurement Guidelines and Guidance on 
Acquisition of Environmentally Preferable Products and Services 
developed pursuant to Executive Order 13101 and products identified as 
environmentally preferable in the Federal Logistics Information System.
    (4) In establishing goals under paragraph (1), the Secretary shall 
establish a procurement goal for each category of procurement items 
that is environmentally preferable or is made with recovered materials.
    (5) The goals established under paragraph (1) shall apply to 
Department purchases in each category of procurement items designated 
by the Secretary for purposes of paragraph (4), but shall not apply 
to--
            (A) products or services purchased by Department 
        contractors and subcontractors, even if such products or 
        services are incorporated into procurement items purchased by 
        the Department; or
            (B) credit card purchases or other local purchases that are 
        made outside the requisitioning process of the Department.
    (b) Assessment of Training and Education.--The Secretary shall 
assess the need to establish a program, or enhance existing programs, 
for training and educating Department of Defense procurement officials 
and contractors to ensure that they are aware of Department 
requirements, preferences, and goals for the procurement of items that 
are environmentally preferable or are made with recovered materials.
    (c) Tracking System.--The Secretary shall develop a tracking system 
to identify the extent to which the Department of Defense is procuring 
items that are environmentally preferable or are made with recovered 
materials. The tracking system shall separately track procurement of 
each category of procurement items for which a goal has been 
established under subsection (a)(4).
    (d) Initial Report.--Not later than 120 days after the date of the 
enactment of this Act, the Secretary shall submit to the congressional 
defense committees a report that sets forth--
            (1) the initial goals the Secretary plans to establish 
        under subsection (a); and
            (2) the findings of the Secretary as a result of the 
        assessment under subsection (b), together with any 
        recommendations of the Secretary as a result of the assessment.
    (e) Implementation.--Not later than 180 days after the date of the 
enactment of this Act, the Secretary shall--
            (1) establish an initial set of goals in accordance 
        subsection (a);
            (2) begin the implementation of any recommendations of the 
        Secretary under subsection (d)(2) as a result of the assessment 
        under subsection (b); and
            (3) implement the tracking system required by subsection 
        (c).
    (f) Annual Report.--Not later than March 1 of each year from 2004 
through 2007, the Secretary shall submit to Congress a report on the 
progress made in the implementation of this section. Each report 
shall--
            (1) identify each category of procurement items for which a 
        goal has been established under subsection (a) as of the end of 
        such year; and
            (2) provide information from the tracking system required 
        by subsection (b) that indicates the extent to which the 
        Department has met the goal for the category of procurement 
        items as of the end of such year.
    (g) Definitions.--In this section:
            (1) Environmentally preferable.--The term ``environmentally 
        preferable'', in the case of a procurement item, means that the 
        item has a lesser or reduced effect on human health and the 
        environment when compared with competing procurement items that 
        serve the same purpose. The comparison may be based upon 
        consideration of raw materials acquisition, production, 
        manufacturing, packaging, distribution, reuse, operation, 
        maintenance, or disposal of the procurement item, or other 
        appropriate matters.
            (2) Procurement item.--The term ``procurement item'' has 
        the meaning given that term in section 1004(16) of the Solid 
        Waste Disposal Act (40 U.S.C. 6903(16)).
            (3) Recovered materials.--The term ``recovered materials'' 
        means waste materials and by-products that have been recovered 
        or diverted from solid waste, but does not include materials 
        and by-products generated from, and commonly used within, an 
        original manufacturing process.

SEC. 314. CLEANUP OF UNEXPLODED ORDNANCE ON KAHO'OLAWE ISLAND, HAWAII.

    (a) Level of Cleanup Required.--The Secretary of the Navy shall 
continue activities for the clearance and removal of unexploded 
ordnance on the Island of Kaho'olawe, Hawaii, and related remediation 
activities, until the later of the following dates:
            (1) The date on which the Kaho'olawe Island access control 
        period expires.
            (2) The date on which the Secretary achieves each of the 
        following objectives:
                    (A) The inspection and assessment of all of 
                Kaho'olawe Island in accordance with current 
                procedures.
                    (B) The clearance of 75 percent of Kaho'olawe 
                Island to the degree specified in the Tier One 
                standards in the memorandum of understanding.
                    (C) The clearance of 25 percent of Kaho'olawe 
                Island to the degree specified in the Tier Two 
                standards in the memorandum of understanding.
    (b) Definitions.--In this section:
            (1) The term ``Kaho'olawe Island access control period'' 
        means the period for which the Secretary of the Navy is 
        authorized to retain the control of access to the Island of 
        Kaho'olawe, Hawaii, under title X of the Department of Defense 
        Appropriations Act, 1994 (Public Law 103-139; 107 Stat. 1480).
            (2) The term ``memorandum of understanding'' means the 
        Memorandum of Understanding Between the United States 
        Department of the Navy and the State of Hawaii Concerning the 
        Island of Kaho'olawe, Hawaii.

               Subtitle C--Defense Dependents' Education

SEC. 331. ASSISTANCE TO LOCAL EDUCATIONAL AGENCIES THAT BENEFIT 
              DEPENDENTS OF MEMBERS OF THE ARMED FORCES AND DEPARTMENT 
              OF DEFENSE CIVILIAN EMPLOYEES.

    (a) Continuation of Department of Defense Program for Fiscal Year 
2003.--Of the amount authorized to be appropriated pursuant to section 
301(a)(5) for operation and maintenance for Defense-wide activities, 
$30,000,000 shall be available only for the purpose of providing 
educational agencies assistance to local educational agencies.
    (b) Notification.--Not later than June 30, 2003, the Secretary of 
Defense shall notify each local educational agency that is eligible for 
assistance or a payment under subsection (a) for fiscal year 2003 of--
            (1) that agency's eligibility for the assistance or 
        payment; and
            (2) the amount of the assistance or payment for which that 
        agency is eligible.
    (c) Disbursement of Funds.--The Secretary of Defense shall disburse 
funds made available under subsection (a) not later than 30 days after 
the date on which notification to the eligible local educational 
agencies is provided pursuant to subsection (b).
    (d) Definitions.--In this section:
            (1) The term ``educational agencies assistance'' means 
        assistance authorized under section 386(b) of the National 
        Defense Authorization Act for Fiscal Year 1993 (Public Law 102-
        484; 20 U.S.C. 7703 note).
            (2) The term ``local educational agency'' has the meaning 
        given that term in section 8013(9) of the Elementary and 
        Secondary Education Act of 1965 (20 U.S.C. 7713(9)).

SEC. 332. IMPACT AID FOR CHILDREN WITH SEVERE DISABILITIES.

    Of the amount authorized to be appropriated pursuant to section 
301(a)(5) for operation and maintenance for Defense-wide activities, 
$5,000,000 shall be available for payments under section 363 of the 
Floyd D. Spence National Defense Authorization Act for Fiscal Year 2001 
(as enacted into law by Public Law 106-398; 114 Stat. 1654A-77; 20 
U.S.C. 7703a).

SEC. 333. OPTIONS FOR FUNDING DEPENDENT SUMMER SCHOOL PROGRAMS.

    Section 1402(d)(2) of the Defense Dependents' Education Act of 1978 
(20 U.S.C. 921(d)(2)) is amended to read as follows:
    ``(2) The Secretary shall provide any summer school program under 
this subsection on the same financial basis as programs offered during 
the regular school year, except that the Secretary may charge 
reasonable fees for all or portions of such summer school programs to 
the extent that the Secretary determines appropriate.''.

SEC. 334. COMPTROLLER GENERAL STUDY OF ADEQUACY OF COMPENSATION 
              PROVIDED FOR TEACHERS IN THE DEPARTMENT OF DEFENSE 
              OVERSEAS DEPENDENTS' SCHOOLS.

    (a) Additional Consideration for Study.--Subsection (b) of section 
354 of the National Defense Authorization Act for Fiscal Year 2002 
(Public Law 107-107; 115 Stat. 1064) is amended by inserting after 
paragraph (2) the following new paragraph:
            ``(3) Whether the process for setting teacher compensation 
        is efficient and cost effective.''.
    (b) Extension of Time for Reporting.--Subsection (c) of such 
section is amended by striking ``May 1, 2002'' and inserting ``December 
12, 2002''.

                       Subtitle D--Other Matters

SEC. 341. USE OF HUMANITARIAN AND CIVIC ASSISTANCE FUNDS FOR RESERVE 
              COMPONENT MEMBERS OF SPECIAL OPERATIONS COMMAND ENGAGED 
              IN ACTIVITIES RELATING TO CLEARANCE OF LANDMINES.

    Section 401(c) of title 10, United States Code, is amended by 
adding at the end the following new paragraph (5):
    ``(5) Up to 10 percent of the amount available for a fiscal year 
for activities described in subsection (e)(5) may be expended for the 
pay and allowances of reserve component members of the Special 
Operations Command performing duty in connection with training and 
activities related to the clearing of landmines for humanitarian 
purposes.''.

SEC. 342. CALCULATION OF FIVE-YEAR PERIOD OF LIMITATION FOR NAVY-MARINE 
              CORPS INTRANET CONTRACT.

    (a) Commencement of Period.--The five-year period of limitation 
that is applicable to the multiyear Navy-Marine Corps Intranet contract 
under section 2306c of title 10, United States Code, shall be deemed to 
have begun on the date on which the Under Secretary of Defense for 
Acquisition, Technology, and Logistics and the Chief Information 
Officer of the Department of Defense approved the ordering of 
additional workstations under such contract in accordance with 
subsection (c) of section 814 of the Floyd D. Spence National Defense 
Authorization Act for Fiscal Year 2001, as added by section 362(a) of 
the National Defense Authorization Act for Fiscal Year 2002 (Public Law 
107-107; 115 Stat. 1065).
    (b) Definition.--In this section, the term ``Navy-Marine Corps 
Intranet contract'' has the meaning given such term in section 
814(i)(1) of the Floyd D. Spence National Defense Authorization Act for 
Fiscal Year 2001 (as amended by section 362(c) of Public Law 107-107 
(115 Stat. 1067)).

SEC. 343. REIMBURSEMENT FOR RESERVE COMPONENT INTELLIGENCE SUPPORT.

    (a) Source of Funds.--Chapter 1003 of title 10, United States Code, 
is amended by adding at the end the following new section:
``Sec. 10115. Reimbursement for reserve component intelligence support
    ``(a) Authority.--Funds appropriated or otherwise made available to 
a military department, Defense Agency, or combatant command for 
operation and maintenance shall be available for the pay, allowances, 
and other costs that would be charged to appropriations for a reserve 
component for the performance of duties by members of that reserve 
component in providing intelligence or counterintelligence support to--
            ``(1) such military department, Defense Agency, or 
        combatant command; or
            ``(2) a joint intelligence activity, including any such 
        activity for which funds are authorized to be appropriated 
        within the National Foreign Intelligence Program, the Joint 
        Military Intelligence Program, or the Tactical Intelligence and 
        Related Activities aggregate (or any successor to such program 
        or aggregate).
    ``(b) Construction of Provision.--Nothing in this section shall be 
construed to authorize deviation from established reserve component 
personnel or training procedures.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by adding at the end the following new item:

``10115. Reimbursement for reserve component intelligence support.''.

SEC. 344. REBATE AGREEMENTS UNDER THE SPECIAL SUPPLEMENTAL FOOD 
              PROGRAM.

    (a) Applicability to Navy Exchange Markets.--Paragraph (1)(A) of 
section 1060a(e) of title 10, United States Code, is amended by 
inserting ``or Navy Exchange Markets'' after ``commissary stores''.
    (b) Increased Maximum Period of Agreement.--Paragraph (3) of such 
section 1060a(e) is amended by striking ``subsection may not exceed one 
year'' in the first sentence and inserting ``subsection, including any 
period of extension of the contract by modification of the contract, 
exercise of an option, or other cause, may not exceed three years''.

SEC. 345. LOGISTICS SUPPORT AND SERVICES FOR WEAPON SYSTEMS 
              CONTRACTORS.

    (a) Authority.--The Secretary of Defense may make available, in 
accordance with this section and the regulations prescribed under 
subsection (e), logistics support and logistics services to a 
contractor in support of the performance by the contractor of a 
contract for the construction, modification, or maintenance of a weapon 
system that is entered into by an official of the Department of 
Defense.
    (b) Support Contracts.--Any logistics support and logistics 
services that is to be provided under this section to a contractor in 
support of the performance of a contract shall be provided under a 
separate contract that is entered into by the Director of the Defense 
Logistics Agency with that contractor.
    (c) Scope of Support and Services.--The logistics support and 
logistics services that may be provided under this section in support 
of the performance of a contract described in subsection (a) are the 
distribution, disposal, and cataloging of materiel and repair parts 
necessary for the performance of that contract.
    (d) Limitations.--(1) The number of contracts described in 
subsection (a) for which the Secretary makes logistics support and 
logistics services available under the authority of this section may 
not exceed five contracts. The total amount of the estimated costs of 
all such contracts for which logistics support and logistics services 
are made available under this section may not exceed $100,000,000.
    (2) No contract entered into by the Director of the Defense 
Logistics Agency under subsection (b) may be for a period in excess of 
five years, including periods for which the contract is extended under 
options to extend the contract.
    (e) Regulations.--Before exercising the authority under this 
section, the Secretary of Defense shall prescribe in regulations such 
requirements, conditions, and restrictions as the Secretary determines 
appropriate to ensure that logistics support and logistics services are 
provided under this section only when it is in the best interests of 
the United States to do so. The regulations shall include, at a 
minimum, the following:
            (1) A requirement for the authority under this section to 
        be used only for providing logistics support and logistics 
        services in support of the performance of a contract that is 
        entered into using competitive procedures (as defined in 
        section 4 of the Office of Federal Procurement Policy Act (41 
        U.S.C. 403)).
            (2) A requirement for the solicitation of offers for a 
        contract described in subsection (a), for which logistics 
        support and logistics services are to be made available under 
        this section, to include--
                    (A) a statement that the logistics support and 
                logistics services are to be made available under the 
                authority of this section to any contractor awarded the 
                contract, but only on a basis that does not require 
                acceptance of the support and services; and
                    (B) a description of the range of the logistics 
                support and logistics services that are to be made 
                available to the contractor.
            (3) A requirement for the rates charged a contractor for 
        logistics support and logistics services provided to a 
        contractor under this section to reflect the full cost to the 
        United States of the resources used in providing the support 
        and services, including the costs of resources used, but not 
        paid for, by the Department of Defense.
            (4) A requirement to credit to the General Fund of the 
        Treasury amounts received by the Department of Defense from a 
        contractor for the cost of logistics support and logistics 
        services provided to the contractor by the Department of 
        Defense under this section but not paid for out of funds 
        available to the Department of Defense.
            (5) With respect to a contract described in subsection (a) 
        that is being performed for a department or agency outside the 
        Department of Defense, a prohibition, in accordance with 
        applicable contracting procedures, on the imposition of any 
        charge on that department or agency for any effort of 
        Department of Defense personnel or the contractor to correct 
        deficiencies in the performance of such contract.
            (6) A prohibition on the imposition of any charge on a 
        contractor for any effort of the contractor to correct a 
        deficiency in the performance of logistics support and 
        logistics services provided to the contractor under this 
        section.
    (f) Relationship to Treaty Obligations.--The Secretary shall ensure 
that the exercise of authority under this section does not conflict 
with any obligation of the United States under any treaty or other 
international agreement.
    (g) Termination of Authority.--(1) The authority provided in this 
section shall expire on September 30, 2007, subject to paragraph (2).
    (2) The expiration of the authority under this section does not 
terminate--
            (A) any contract that was entered into by the Director of 
        the Defense Logistics Agency under subsection (b) before the 
        expiration of the authority or any obligation to provide 
        logistics support and logistics services under that contract; 
        or
            (B) any authority--
                    (i) to enter into a contract described in 
                subsection (a) for which a solicitation of offers was 
                issued in accordance with the regulations prescribed 
                pursuant to subsection (e)(2) before the date of the 
                expiration of the authority; or
                    (ii) to provide logistics support and logistics 
                services to the contractor with respect to that 
                contract in accordance with this section.

SEC. 346. CONTINUATION OF ARSENAL SUPPORT PROGRAM INITIATIVE.

    (a) Extension Through Fiscal Year 2004.--Subsection (a) of section 
343 of the Floyd D. Spence National Defense Authorization Act for 
Fiscal Year 2001 (as enacted into law by Public Law 106-398; 114 Stat. 
1654A-65) is amended by striking ``and 2002'' and inserting ``through 
2004''.
    (b) Reporting Requirements.--Subsection (g) of such section is 
amended--
            (1) in paragraph (1), by striking ``2002'' and inserting 
        ``2004''; and
            (2) in paragraph (2), by striking the first sentence and 
        inserting the following new sentence: ``Not later than July 1, 
        2003, the Secretary of the Army shall submit to the 
        congressional defense committees a report on the results of the 
        demonstration program since its implementation, including the 
        Secretary's views regarding the benefits of the program for 
        Army manufacturing arsenals and the Department of the Army and 
        the success of the program in achieving the purposes specified 
        in subsection (b).''.

SEC. 347. TWO-YEAR EXTENSION OF AUTHORITY OF THE SECRETARY OF DEFENSE 
              TO ENGAGE IN COMMERCIAL ACTIVITIES AS SECURITY FOR 
              INTELLIGENCE COLLECTION ACTIVITIES ABROAD.

    Section 431(a) of title 10, United States Code, is amended by 
striking ``December 31, 2002'' in the second sentence and inserting 
``December 31, 2004''.

SEC. 348. INSTALLATION AND CONNECTION POLICY AND PROCEDURES REGARDING 
              DEFENSE SWITCH NETWORK.

    (a) Establishment of Policy and Procedures.--Not later than 180 
days after the date of the enactment of this Act, the Secretary of 
Defense shall establish clear and uniform policy and procedures, 
applicable to the military departments and Defense Agencies, regarding 
the installation and connection of telecom switches to the Defense 
Switch Network.
    (b) Elements of Policy and Procedures.--The policy and procedures 
shall address at a minimum the following:
            (1) Clear interoperability and compatibility requirements 
        for procuring, certifying, installing, and connecting telecom 
        switches to the Defense Switch Network.
            (2) Current, complete, and enforceable testing, validation, 
        and certification procedures needed to ensure the 
        interoperability and compatibility requirements are satisfied.
    (c) Exceptions.--(1) The Secretary of Defense may specify certain 
circumstances in which--
            (A) the requirements for testing, validation, and 
        certification of telecom switches may be waived; or
            (B) interim authority for the installation and connection 
        of telecom switches to the Defense Switch Network may be 
        granted.
    (2) Only the Assistant Secretary of Defense for Command, Control, 
Communications, and Intelligence, after consultation with the Chairman 
of the Joint Chiefs of Staff, may approve a waiver or grant of interim 
authority under paragraph (1).
    (d) Inventory of Defense Switch Network.--The Secretary of Defense 
shall prepare and maintain an inventory of all telecom switches that, 
as of the date on which the Secretary issues the policy and 
procedures--
            (1) are installed or connected to the Defense Switch 
        Network; but
            (2) have not been tested, validated, and certified by the 
        Defense Information Systems Agency (Joint Interoperability Test 
        Center).
    (e) Interoperability Risks.--(1) The Secretary of Defense shall, on 
an ongoing basis--
            (A) identify and assess the interoperability risks that are 
        associated with the installation or connection of uncertified 
        switches to the Defense Switch Network and the maintenance of 
        such switches on the Defense Switch Network; and
            (B) develop and implement a plan to eliminate or mitigate 
        such risks as identified.
    (2) The Secretary shall initiate action under paragraph (1) upon 
completing the initial inventory of telecom switches required by 
subsection (d).
    (f) Telecom Switch Defined.--In this section, the term ``telecom 
switch'' means hardware or software designed to send and receive voice, 
data, or video signals across a network that provides customer voice, 
data, or video equipment access to the Defense Switch Network or public 
switched telecommunications networks.

SEC. 349. ENGINEERING STUDY AND ENVIRONMENTAL ANALYSIS OF ROAD 
              MODIFICATIONS IN VICINITY OF FORT BELVOIR, VIRGINIA.

    (a) Study and Analysis.--(1) The Secretary of the Army shall 
conduct a preliminary engineering study and environmental analysis to 
evaluate the feasibility of establishing a connector road between 
Richmond Highway (United States Route 1) and Telegraph Road in order to 
provide an alternative to Beulah Road (State Route 613) and Woodlawn 
Road (State Route 618) at Fort Belvoir, Virginia, which were closed as 
a force protection measure.
    (2) It is the sense of Congress that the study and analysis should 
consider as one alternative the extension of Old Mill Road between 
Richmond Highway and Telegraph Road.
    (b) Consultation.--The study required by subsection (a) shall be 
conducted in consultation with the Department of Transportation of the 
Commonwealth of Virginia and Fairfax County, Virginia.
    (c) Report.--The Secretary shall submit to Congress a summary 
report on the study and analysis required by subsection (a). The 
summary report shall be submitted together with the budget 
justification materials in support of the budget of the President for 
fiscal year 2006 that is submitted to Congress under section 1105(a) of 
title 31, United States Code.
    (d) Funding.--Of the amount authorized to be appropriated by 
section 301(a)(1) for the Army for operation and maintenance, 
$5,000,000 may be available for the study and analysis required by 
subsection (a).

SEC. 350. EXTENSION OF WORK SAFETY DEMONSTRATION PROGRAM.

    Section 1112 of the Floyd D. Spence National Defense Authorization 
Act for Fiscal Year 2001 (as enacted into law by Public Law 106-398; 
114 Stat. 1654A-313) is amended--
            (1) in subsection (d), by striking ``September 30, 2002'' 
        and inserting ``September 30, 2003''; and
            (2) in subsection (e)(2), by striking ``December 1, 2002'' 
        and inserting ``December 1, 2003''.

SEC. 351. LIFT SUPPORT FOR MINE WARFARE SHIPS AND OTHER VESSELS.

    (a) Amount.--Of the amount authorized to be appropriated by section 
302(2), $10,000,000 shall be available for implementing the 
recommendations resulting from the Navy's Non-Self Deployable 
Watercraft (NDSW) Study and the Joint Chiefs of Staff Focused Logistics 
Study, which are to determine the requirements of the Navy for 
providing lift support for mine warfare ships and other vessels.
    (b) Offsetting Reduction.--Of the amount authorized to be 
appropriated by section 302(2), the amount provided for the procurement 
of mine countermeasures ships cradles is hereby reduced by $10,000,000.

SEC. 352. NAVY DATA CONVERSION ACTIVITIES.

    (a) Amount for Activities.--The amount authorized to be 
appropriated by section 301(a)(2) is hereby increased by $1,500,000. 
The total amount of such increase may be available for the Navy Data 
Conversion and Management Laboratory to support data conversion 
activities for the Navy.
    (b) Offset.--The amount authorized to be appropriated by section 
301(a)(1) is hereby reduced by $1,500,000 to reflect a reduction in the 
utilities privatization efforts previously planned by the Army.

              TITLE IV--MILITARY PERSONNEL AUTHORIZATIONS

                       Subtitle A--Active Forces

SEC. 401. END STRENGTHS FOR ACTIVE FORCES.

    The Armed Forces are authorized strengths for active duty personnel 
as of September 30, 2003, as follows:
            (1) The Army, 485,000.
            (2) The Navy, 379,200.
            (3) The Marine Corps, 175,000.
            (4) The Air Force, 362,500.

SEC. 402. AUTHORITY TO INCREASE STRENGTH AND GRADE LIMITATIONS TO 
              ACCOUNT FOR RESERVE COMPONENT MEMBERS ON ACTIVE DUTY IN 
              SUPPORT OF A CONTINGENCY OPERATION.

    (a) Active Duty Strength.--Section 115(c)(1) of title 10, United 
States Code, is amended to read as follows:
            ``(1) increase the end strength authorized pursuant to 
        subsection (a)(1)(A) for a fiscal year for any of the armed 
        forces by--
                    ``(A) a number equal to not more than 2 percent of 
                that end strength;
                    ``(B) a number equal to the number of members of 
                the reserve components of that armed force on active 
                duty under section 12301(d) of this title in support of 
                a contingency operation in that fiscal year; or
                    ``(C) a number not greater than the sum of the 
                numbers authorized by subparagraphs (A) and (B).''.
    (b) Authorized Daily Average for Members in Pay Grades E-8 and E-9 
on Active Duty.--Section 517 of such title is amended by adding at the 
end the following new paragraph:
    ``(d) The Secretary of Defense may increase the authorized daily 
average number of enlisted members on active duty in an armed force in 
pay grades E-8 and E-9 in a fiscal year under subsection (a) by the 
number of enlisted members of reserve components of that armed force in 
pay grades E-8 and E-9, respectively, that are on active duty in that 
fiscal year under section 12301(d) of this title in support of a 
contingency operation.''.
    (c) Authorized Strengths for Commissioned Officers in Pay Grades O-
4, O-5, and O-6 on Active Duty.--Section 523 of such title is amended--
            (1) in subsection (a), by striking ``subsection (c)'' in 
        paragraphs (1) and (2) and inserting ``subsections (c) and 
        (e)''; and
            (2) by adding at the end the following new subsection:
    ``(e) The Secretary of Defense may increase the authorized total 
number of commissioned officers serving on active duty in the Army, 
Navy, Air Force, or Marine Corps in a grade referred to in subsection 
(c) at the end of any fiscal year under that subsection by the number 
of commissioned officers of reserve components of the Army, Navy, Air 
Force, or Marine Corps, respectively, that are then serving on active 
duty in that grade under section 12301(d) of this title in support of a 
contingency operation.''.
    (d) Authorized Strengths for General and Flag Officers on Active 
Duty.--Section 526(a) of such title is amended--
            (1) by redesignating paragraphs (1), (2), (3), and (4) as 
        subparagraphs (A), (B), (C), and (D), respectively;
            (2) by striking ``Limitations.--The'' and inserting 
        ``Limitations.--(1) Except as provided in paragraph (2), the''; 
        and
            (3) by adding at the end the following new paragraph (2):
    ``(2) The Secretary of Defense may increase the number of general 
and flag officers authorized to be on active duty in the Army, Navy, 
Air Force, or Marine Corps under paragraph (1) by the number of reserve 
general or flag officers of reserve components of the Army, Navy, Air 
Force, or Marine Corps, respectively, that are on active duty under 
section 12301(d) of this title in support of a contingency 
operation.''.

SEC. 403. INCREASED ALLOWANCE FOR NUMBER OF MARINE CORPS GENERAL 
              OFFICERS ON ACTIVE DUTY IN GRADES ABOVE MAJOR GENERAL.

    Section 525(b)(2)(B) of title 10, United States Code, is amended by 
striking ``16.2 percent'' and inserting ``17.5 percent''.

SEC. 404. INCREASE IN AUTHORIZED STRENGTHS FOR MARINE CORPS OFFICERS ON 
              ACTIVE DUTY IN THE GRADE OF COLONEL.

    The table in section 523(a)(1) of title 10, United States Code, is 
amended by striking the figures under the heading ``Colonel'' in the 
portion of the table relating to the Marine Corps and inserting the 
following:

         ``571
          632
          653
          673
          694
          715
          735''.

                       Subtitle B--Reserve Forces

SEC. 411. END STRENGTHS FOR SELECTED RESERVE.

    (a) In General.--The Armed Forces are authorized strengths for 
Selected Reserve personnel of the reserve components as of September 
30, 2003, as follows:
            (1) The Army National Guard of the United States, 350,000.
            (2) The Army Reserve, 205,000.
            (3) The Naval Reserve, 87,800.
            (4) The Marine Corps Reserve, 39,558.
            (5) The Air National Guard of the United States, 106,600.
            (6) The Air Force Reserve, 75,600.
            (7) The Coast Guard Reserve, 9,000.
    (b) Adjustments.--The end strengths prescribed by subsection (a) 
for the Selected Reserve of any reserve component shall be 
proportionately reduced by--
            (1) the total authorized strength of units organized to 
        serve as units of the Selected Reserve of such component which 
        are on active duty (other than for training) at the end of the 
        fiscal year; and
            (2) the total number of individual members not in units 
        organized to serve as units of the Selected Reserve of such 
        component who are on active duty (other than for training or 
        for unsatisfactory participation in training) without their 
        consent at the end of the fiscal year.
Whenever such units or such individual members are released from active 
duty during any fiscal year, the end strength prescribed for such 
fiscal year for the Selected Reserve of such reserve component shall be 
proportionately increased by the total authorized strengths of such 
units and by the total number of such individual members.

SEC. 412. END STRENGTHS FOR RESERVES ON ACTIVE DUTY IN SUPPORT OF THE 
              RESERVES.

    Within the end strengths prescribed in section 411(a), the reserve 
components of the Armed Forces are authorized, as of September 30, 
2003, the following number of Reserves to be serving on full-time 
active duty or full-time duty, in the case of members of the National 
Guard, for the purpose of organizing, administering, recruiting, 
instructing, or training the reserve components:
            (1) The Army National Guard of the United States, 24,492.
            (2) The Army Reserve, 13,888.
            (3) The Naval Reserve, 14,572.
            (4) The Marine Corps Reserve, 2,261.
            (5) The Air National Guard of the United States, 11,727.
            (6) The Air Force Reserve, 1,498.

SEC. 413. END STRENGTHS FOR MILITARY TECHNICIANS (DUAL STATUS).

    The minimum number of military technicians (dual status) as of the 
last day of fiscal year 2003 for the reserve components of the Army and 
the Air Force (notwithstanding section 129 of title 10, United States 
Code) shall be the following:
            (1) For the Army Reserve, 6,599.
            (2) For the Army National Guard of the United States, 
        24,102.
            (3) For the Air Force Reserve, 9,911.
            (4) For the Air National Guard of the United States, 
        22,495.

SEC. 414. FISCAL YEAR 2003 LIMITATIONS ON NON-DUAL STATUS TECHNICIANS.

    (a) Limitations.--(1) Within the limitation provided in section 
10217(c)(2) of title 10, United States Code, the number of non-dual 
status technicians employed by the National Guard as of September 30, 
2003, may not exceed the following:
            (A) For the Army National Guard of the United States, 
        1,600.
            (B) For the Air National Guard of the United States, 350.
    (2) The number of non-dual status technicians employed by the Army 
Reserve as of September 30, 2003, may not exceed 995.
    (3) The Air Force Reserve may not employ any person as a non-dual 
status technician during fiscal year 2003.
    (b) Non-Dual Status Technicians Defined.--In this section, the term 
``non-dual status technician'' has the meaning given the term in 
section 10217(a) of title 10, United States Code.

              Subtitle C--Authorization of Appropriations

SEC. 421. AUTHORIZATION OF APPROPRIATIONS FOR MILITARY PERSONNEL.

    There is hereby authorized to be appropriated to the Department of 
Defense for military personnel for fiscal year 2003 a total of 
$94,352,208,000. The authorization in the preceding sentence supersedes 
any other authorization of appropriations (definite or indefinite) for 
such purpose for fiscal year 2003.

                   TITLE V--MILITARY PERSONNEL POLICY

                  Subtitle A--Officer Personnel Policy

SEC. 501. EXTENSION OF CERTAIN REQUIREMENTS AND EXCLUSIONS APPLICABLE 
              TO SERVICE OF GENERAL AND FLAG OFFICERS ON ACTIVE DUTY IN 
              CERTAIN JOINT DUTY ASSIGNMENTS.

    (a) Recommendations for Assignment to Senior Joint Officer 
Positions.--Section 604(c) of title 10, United States Code, is amended 
by striking ``September 30, 2003'' and inserting ``December 31, 2003''.
    (b) Inapplicability of Grade Distribution Requirements.--Section 
525(b)(5)(C) of such title is amended by striking ``September 30, 
2003'' and inserting ``December 31, 2003''.
    (c) Exclusion From Strength Limitation.--Section 526(b)(3) of such 
title is amended by striking ``October 1, 2002'' and inserting 
``December 31, 2003''.

SEC. 502. EXTENSION OF AUTHORITY TO WAIVE REQUIREMENT FOR SIGNIFICANT 
              JOINT DUTY EXPERIENCE FOR APPOINTMENT AS A CHIEF OF A 
              RESERVE COMPONENT OR A NATIONAL GUARD DIRECTOR.

    (a) Chief of Army Reserve.--Section 3038(b)(4) of title 10, United 
States Code, is amended by striking ``October 1, 2003'' and inserting 
``December 31, 2003''.
    (b) Chief of Naval Reserve.--Section 5143(b)(4) of such title is 
amended by striking ``October 1, 2003'' and inserting ``December 31, 
2003''.
    (c) Commander, Marine Forces Reserve.--Section 5144(b)(4) of such 
title is amended by striking ``October 1, 2003'' and inserting 
``December 31, 2003''.
    (d) Chief of Air Force Reserve.--Section 8038(b)(4) of such title 
10, United States Code, is amended by striking ``October 1, 2003'' and 
inserting ``December 31, 2003''.
    (e) Directors of the National Guard.--Section 10506(a)(3)(D) of 
such title is amended by striking ``October 1, 2003'' and inserting 
``December 31, 2003''.

SEC. 503. REPEAL OF LIMITATION ON AUTHORITY TO GRANT CERTAIN OFFICERS A 
              WAIVER OF REQUIRED SEQUENCE FOR JOINT PROFESSIONAL 
              MILITARY EDUCATION AND JOINT DUTY ASSIGNMENT.

    Section 661(c)(3)(D) of title 10, United States Code, is amended by 
striking ``In the case of officers in grades below brigadier general'' 
and all that follows through ``selected for the joint specialty during 
that fiscal year.''.

SEC. 504. EXTENSION OF TEMPORARY AUTHORITY FOR RECALL OF RETIRED 
              AVIATORS.

    Section 501(e) of the National Defense Authorization Act for Fiscal 
Year 2000 (Public Law 106-65; 113 Stat. 589) is amended by striking 
``September 30, 2002'' and inserting ``September 30, 2008''.

SEC. 505. INCREASED GRADE FOR HEADS OF NURSE CORPS.

    (a) Army.--Section 3069(b) of title 10, United States Code, is 
amended by striking ``brigadier general'' in the second sentence and 
inserting ``major general''.
    (b) Navy.--The first sentence of section 5150(c) of such title is 
amended--
            (1) by inserting ``rear admiral (upper half) in the case of 
        an officer in the Nurse Corps or'' after ``for promotion to the 
        grade of''; and
            (2) by inserting ``in the case of an officer in the Medical 
        Service Corps'' after ``rear admiral (lower half)''.
    (c) Air Force.--Section 8069(b) of such title is amended by 
striking ``brigadier general'' in the second sentence and inserting 
``major general''.

SEC. 506. REINSTATEMENT OF AUTHORITY TO REDUCE SERVICE REQUIREMENT FOR 
              RETIREMENT IN GRADES ABOVE O-4.

    (a) Officers on Active Duty.--Subsection (a)(2)(A) of section 1370 
of title 10, United States Code, is amended--
            (1) by striking ``may authorize'' and all that follows and 
        inserting ``may, in the case of retirements effective during 
        the period beginning on September 1, 2002, and ending on 
        December 31, 2004, authorize--''; and
            (2) by adding at the end the following:
            ``(1) the Deputy Under Secretary of Defense for Personnel 
        and Readiness to reduce such 3-year period of required service 
        to a period not less than two years for retirements in grades 
        above colonel or, in the case of the Navy, captain; and
            ``(2) the Secretary of a military department or the 
        Assistant Secretary of a military department having 
        responsibility for manpower and reserve affairs to reduce such 
        3-year period to a period of required service not less than two 
        years for retirements in grades of lieutenant colonel and 
        colonel or, in the case of the Navy, commander and captain.''.
    (b) Reserve Officers.--Subsection (d)(5) of such section is 
amended--
            (1) in the first sentence--
                    (A) by striking ``may authorize'' and all that 
                follows and inserting ``may, in the case of retirements 
                effective during the period beginning on September 1, 
                2002, and ending on December 31, 2004, authorize--''; 
                and
                    (B) by adding at the end the following:
            ``(A) the Deputy Under Secretary of Defense for Personnel 
        and Readiness to reduce such 3-year period of required service 
        to a period not less than two years for retirements in grades 
        above colonel or, in the case of the Navy, captain; and
            ``(B) the Secretary of a military department or the 
        Assistant Secretary of a military department having 
        responsibility for manpower and reserve affairs to reduce such 
        3-year period of required service to a period not less than two 
        years for retirements in grades of lieutenant colonel and 
        colonel or, in the case of the Navy, commander and captain.'';
            (2) by designating the second sentence as paragraph (6) and 
        realigning such paragraph, as so redesignated 2 ems from the 
        left margin; and
            (3) in paragraph (6), as so redesignated, by striking 
        ``this paragraph'' and inserting ``paragraph (5)''.
    (c) Advance Notice to the President and Congress.--Such section is 
further amended by adding at the end the following new subsection:
    ``(e) Advance Notice to Congress.--(1) The Secretary of Defense 
shall notify the Committees on Armed Services of the Senate and House 
of Representatives of--
            ``(A) an exercise of authority under paragraph (2)(A) of 
        subsection (a) to reduce the 3-year minimum period of required 
        service on active duty in a grade in the case of an officer to 
        whom such paragraph applies before the officer is retired in 
        such grade under such subsection without having satisfied that 
        3-year service requirement; and
            ``(B) an exercise of authority under paragraph (5) of 
        subsection (d) to reduce the 3-year minimum period of service 
        in grade required under paragraph (3)(A) of such subsection in 
        the case of an officer to whom such paragraph applies before 
        the officer is credited with satisfactory service in such grade 
        under subsection (d) without having satisfied that 3-year 
        service requirement.
    ``(2) The requirement for a notification under paragraph (1) is 
satisfied in the case of an officer to whom subsection (c) applies if 
the notification is included in the certification submitted with 
respect to such officer under paragraph (1) of such subsection.
    ``(3) The notification requirement under paragraph (1) does not 
apply to an officer being retired in the grade of lieutenant colonel or 
colonel or, in the case of the Navy, commander or captain.''.

             Subtitle B--Reserve Component Personnel Policy

SEC. 511. TIME FOR COMMENCEMENT OF INITIAL PERIOD OF ACTIVE DUTY FOR 
              TRAINING UPON ENLISTMENT IN RESERVE COMPONENT.

    Section 12103(d) of title 10, United States Code, is amended by 
striking ``270 days'' in the second sentence and inserting ``one 
year''.

SEC. 512. AUTHORITY FOR LIMITED EXTENSION OF MEDICAL DEFERMENT OF 
              MANDATORY RETIREMENT OR SEPARATION OF RESERVE COMPONENT 
              OFFICER.

    (a) Authority.--Chapter 1407 of title 10, United States Code, is 
amended by adding at the end the following new section:
``Sec. 14519. Deferment of retirement or separation for medical reasons
    ``(a) Authority.--If, in the case of an officer required to be 
retired or separated under this chapter or chapter 1409 of this title, 
the Secretary concerned determines that the evaluation of the physical 
condition of the officer and determination of the officer's entitlement 
to retirement or separation for physical disability require 
hospitalization or medical observation and that such hospitalization or 
medical observation cannot be completed with confidence in a manner 
consistent with the officer's well being before the date on which the 
officer would otherwise be required to retire or be separated, the 
Secretary may defer the retirement or separation of the officer.
    ``(b) Period of Deferment.--A deferral of retirement or separation 
under subsection (a) may not extend for more than 30 days after the 
completion of the evaluation requiring hospitalization or medical 
observation.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by adding at the end the following new item:

``14519. Deferment of retirement or separation for medical reasons.''.

SEC. 513. REPEAL OF PROHIBITION ON USE OF AIR FORCE RESERVE AGR 
              PERSONNEL FOR AIR FORCE BASE SECURITY FUNCTIONS.

    (a) Repeal.--Section 12551 of title 10, United States Code, is 
repealed.
    (b) Clerical Amendment.--The table of sections at the beginning of 
chapter 1215 of such title is amended by striking the item relating to 
section 12551.

                   Subtitle C--Education and Training

SEC. 521. INCREASE IN AUTHORIZED STRENGTHS FOR THE SERVICE ACADEMIES.

    (a) United States Military Academy.--Section 4342 of title 10, 
United States Code, is amended--
            (1) in subsection (a), by striking ``4,000'' in the first 
        sentence and inserting ``4,400''; and
            (2) in subsection (i), by striking ``variance in that 
        limitation'' and inserting ``variance above that limitation''.
    (b) United States Naval Academy.--Section 6954 of title 10, United 
States Code, is amended--
            (1) in subsection (a), by striking ``4,000'' in the first 
        sentence and inserting ``4,400'; and
            (2) in subsection (g), by striking ``variance in that 
        limitation'' and inserting ``variance above that limitation''.
    (c) United States Air Force Academy.--Section 9342 of title 10, 
United States Code, is amended--
            (1) in subsection (a), by striking ``4,000'' in the first 
        sentence and inserting ``4,400''; and
            (2) in subsection (i), by striking ``variance in that 
        limitation'' and inserting ``variance above that limitation''.

           Subtitle D--Decorations, Awards, and Commendations

SEC. 531. WAIVER OF TIME LIMITATIONS FOR AWARD OF CERTAIN DECORATIONS 
              TO CERTAIN PERSONS.

    (a) Waiver.--Any limitation established by law or policy for the 
time within which a recommendation for the award of a military 
decoration or award must be submitted shall not apply to awards of 
decorations described in this section, the award of each such 
decoration having been determined by the Secretary concerned to be 
warranted in accordance with section 1130 of title 10, United States 
Code.
    (b) Distinguished-Service Cross of the Army.--Subsection (a) 
applies to the award of the Distinguished-Service Cross of the Army as 
follows:
            (1) To Henry Johnson of Albany, New York, for extraordinary 
        heroism in France during the period of May 13 to 15, 1918, 
        while serving as a member of the Army.
            (2) To Hilliard Carter of Jackson, Mississippi, for 
        extraordinary heroism in actions near Troung Loung, Republic of 
        Vietnam, on September 28, 1966, while serving as a member of 
        the Army.
            (3) To Albert C. Welch of Highland Ranch, Colorado, for 
        extraordinary heroism in actions in Ong Thanh, Binh Long 
        Province, Republic of Vietnam, on October 17, 1967, while 
        serving as a member of the Army.
    (c) Distinguished Flying Cross of the Navy.--Subsection (a) applies 
to the award of the Distinguished Flying Cross of the Navy as follows:
            (1) To Eduguardo Coppola of Falls Church, Virginia, for 
        extraordinary achievement while participating in aerial flight 
        during World War II, while serving as a member of the Navy.
            (2) To James Hoisington, Jr., of Stillman Valley, Illinois, 
        for extraordinary achievement while participating in aerial 
        flight during World War II, while serving as a member of the 
        Navy.
            (3) To William M. Melvin of Lawrenceburg, Tennessee, for 
        extraordinary achievement while participating in aerial flight 
        during World War II, while serving as a member of the Navy.
            (4) To Vincent Urbank of Tom River, New Jersey, for 
        extraordinary achievement while participating in aerial flight 
        during World War II, while serving as a member of the Navy.

SEC. 532. KOREA DEFENSE SERVICE MEDAL.

    (a) Findings.--Congress makes the following findings:
            (1) More than 40,000 members of the United States Armed 
        Forces have served on the Korean Peninsula each year since the 
        signing of the cease-fire agreement in July 1953 ending the 
        Korean War.
            (2) An estimated 1,200 members of the United States Armed 
        Forces died as a direct result of their service in Korea since 
        the cease-fire agreement in July 1953.
    (b) Army.--(1) Chapter 357 of title 10, United States Code, is 
amended by adding at the end the following new section:
``Sec. 3755. Korea Defense Service Medal
    ``(a) The Secretary of the Army shall issue a campaign medal, to be 
known as the Korea Defense Service Medal, to each person who while a 
member of the Army served in the Republic of Korea or the waters 
adjacent thereto during the KDSM eligibility period and met the service 
requirements for the award of that medal prescribed under subsection 
(c).
    ``(b) In this section, the term `KDSM eligibility period' means the 
period beginning on July 28, 1954, and ending on such date after the 
date of the enactment of this section as may be determined by the 
Secretary of Defense to be appropriate for terminating eligibility for 
the Korea Defense Service Medal.
    ``(c) The Secretary of the Army shall prescribe service 
requirements for eligibility for the Korea Defense Service Medal. Those 
requirements shall not be more stringent than the service requirements 
for award of the Armed Forces Expeditionary Medal for instances in 
which the award of that medal is authorized.''.
    (2) The table of sections at the beginning of such chapter is 
amended by adding at the end the following new item:

``3755. Korea Defense Service Medal.''.
    (c) Navy and Marine Corps.--(1) Chapter 567 of title 10, United 
States Code, is amended by adding at the end the following new section:
``Sec. 6257. Korea Defense Service Medal
    ``(a) The Secretary of the Navy shall issue a campaign medal, to be 
known as the Korea Defense Service Medal, to each person who while a 
member of the Navy or Marine Corps served in the Republic of Korea or 
the waters adjacent thereto during the KDSM eligibility period and met 
the service requirements for the award of that medal prescribed under 
subsection (c).
    ``(b) In this section, the term `KDSM eligibility period' means the 
period beginning on July 28, 1954, and ending on such date after the 
date of the enactment of this section as may be determined by the 
Secretary of Defense to be appropriate for terminating eligibility for 
the Korea Defense Service Medal.
    ``(c) The Secretary of the Navy shall prescribe service 
requirements for eligibility for the Korea Defense Service Medal. Those 
requirements shall not be more stringent than the service requirements 
for award of the Armed Forces Expeditionary Medal for instances in 
which the award of that medal is authorized.''.
    (2) The table of sections at the beginning of such chapter is 
amended by adding at the end the following new item:

``6257. Korea Defense Service Medal.''.
    (d) Air Force.--(1) Chapter 857 of title 10, United States Code, is 
amended by adding at the end the following new section:
``Sec. 8755. Korea Defense Service Medal
    ``(a) The Secretary of the Air Force shall issue a campaign medal, 
to be known as the Korea Defense Service Medal, to each person who 
while a member of the Air Force served in the Republic of Korea or the 
waters adjacent thereto during the KDSM eligibility period and met the 
service requirements for the award of that medal prescribed under 
subsection (c).
    ``(b) In this section, the term `KDSM eligibility period' means the 
period beginning on July 28, 1954, and ending on such date after the 
date of the enactment of this section as may be determined by the 
Secretary of Defense to be appropriate for terminating eligibility for 
the Korea Defense Service Medal.
    ``(c) The Secretary of the Air Force shall prescribe service 
requirements for eligibility for the Korea Defense Service Medal. Those 
requirements shall not be more stringent than the service requirements 
for award of the Armed Forces Expeditionary Medal for instances in 
which the award of that medal is authorized.''.
    (2) The table of sections at the beginning of such chapter is 
amended by adding at the end the following new item:

``8755. Korea Defense Service Medal.''.
    (e) Award for Service Before Date of Enactment.--The Secretary of 
the military department concerned shall take appropriate steps to 
provide in a timely manner for the issuance of the Korea Defense 
Service Medal, upon application therefor, to persons whose eligibility 
for that medal is by reason of service in the Republic of Korea or the 
waters adjacent thereto before the date of the enactment of this Act.

                  Subtitle E--National Call to Service

SEC. 541. ENLISTMENT INCENTIVES FOR PURSUIT OF SKILLS TO FACILITATE 
              NATIONAL SERVICE.

    (a) Authority.--(1) Chapter 5 of title 37, United States Code, is 
amended by adding at the end the following new section:
``Sec. 326. Enlistment incentives for pursuit of skills to facilitate 
              national service
    ``(a) Incentives Authorized.--The Secretary of Defense may carry 
out a program in accordance with the provisions of this section under 
which program a National Call to Service participant described in 
subsection (b) shall be entitled to an incentive specified in 
subsection (d).
    ``(b) National Call to Service Participant.--In this section, the 
term `National Call to Service participant' means a person who first 
enlists in the armed forces pursuant to a written agreement (prescribed 
by the Secretary of the military department concerned) under which 
agreement the person shall--
            ``(1) upon completion of initial entry training (as 
        prescribed by the Secretary of Defense), serve on active duty 
        in the armed forces in a military occupational specialty 
        designated by the Secretary of Defense under subsection (c) for 
        a period of 15 months; and
            ``(2) upon completion of such service on active duty, and 
        without a break in service, serve the minimum period of 
        obligated service specified in the agreement under this 
        section--
                    ``(A) on active duty in the armed forces;
                    ``(B) in the Selected Reserve;
                    ``(C) in the Individual Ready Reserve;
                    ``(D) in the Peace Corps, Americorps, or another 
                national service program jointly designated by the 
                Secretary of Defense and the head of such program for 
                purposes of this section; or
                    ``(E) in any combination of service referred to in 
                subparagraphs (A) through (D) that is approved by the 
                Secretary of the military department concerned pursuant 
                to regulations prescribed by the Secretary of Defense.
    ``(c) Designated Military Occupational Specialties.--The Secretary 
of Defense shall designate military occupational specialties for 
purposes of subsection (b)(1). Such military occupational specialties 
shall be military occupational specialties that will facilitate, as 
determined by the Secretary, pursuit of national service by National 
Call to Service participants during and after their completion of duty 
or service under an agreement under subsection (b).
    ``(d) Incentives.--The incentives specified in this subsection are 
as follows:
            ``(1) Payment of a bonus in the amount of $5,000.
            ``(2) Payment of outstanding principal and interest on 
        qualifying student loans of the National Call to Service 
        participant in an amount not to exceed $18,000.
            ``(3) Entitlement to an allowance for educational 
        assistance at the monthly rate equal to the monthly rate 
        payable for basic educational assistance allowances under 
        section 3015(a)(1) of title 38 for a total of 12 months.
            ``(4) Entitlement to an allowance for educational 
        assistance at the monthly rate equal to \2/3\ of the monthly 
        rate payable for basic educational assistance allowances under 
        section 3015(b)(1) of title 38 for a total of 36 months.
    ``(e) Election of Incentives.--A National Call to Service 
participant shall elect in the agreement under subsection (b) which 
incentive under subsection (d) to receive. An election under this 
subsection is irrevocable.
    ``(f) Payment of Bonus Amounts.--(1) Payment to a National Call to 
Service participant of the bonus elected by the National Call to 
Service participant under subsection (d)(1) shall be made in such time 
and manner as the Secretary of Defense shall prescribe.
    ``(2)(A) Payment of outstanding principal and interest on the 
qualifying student loans of a National Call to Service participant, as 
elected under subsection (d)(2), shall be made in such time and manner 
as the Secretary of Defense shall prescribe.
    ``(B) Payment under this paragraph of the outstanding principal and 
interest on the qualifying student loans of a National Call to Service 
participant shall be made to the holder of such student loans, as 
identified by the National Call to Service participant to the Secretary 
of the military department concerned for purposes of such payment.
    ``(3) Payment of a bonus or incentive in accordance with this 
subsection shall be made by the Secretary of the military department 
concerned.
    ``(g) Coordination With Montgomery GI Bill Benefits.--(1) A 
National Call to Service participant who elects an incentive under 
paragraph (3) or (4) of subsection (d) is not entitled to educational 
assistance under chapter 1606 of title 10 or basic educational 
assistance under subchapter II of chapter 30 of title 38.
    ``(2)(A) The Secretary of Defense shall, to the maximum extent 
practicable, administer the receipt by National Call to Service 
participants of incentives under paragraph (3) or (4) of subsection (d) 
as if such National Call to Service participants were, in receiving 
such incentives, receiving educational assistance for members of the 
Selected Reserve under chapter 1606 of title 10.
    ``(B) The Secretary of Defense shall, in consultation with the 
Secretary of Veterans Affairs, prescribe regulations for purposes of 
subparagraph (A). Such regulations shall, to the maximum extent 
practicable, take into account the administrative provisions of 
chapters 30 and 36 of title 38 that are specified in section 16136 of 
title 10.
    ``(3) Except as provided in paragraph (1), nothing in this section 
shall prohibit a National Call to Service participant who satisfies 
through service under subsection (b) the eligibility requirements for 
educational assistance under chapter 1606 of title 10 or basic 
educational assistance under chapter 30 of title 38 from an entitlement 
to such educational assistance under chapter 1606 of title 10 or basic 
educational assistance under chapter 30 of title 38, as the case may 
be.
    ``(h) Repayment.--(1) If a National Call to Service participant who 
has entered into an agreement under subsection (b) and received or 
benefited from an incentive under subsection (d)(1) or (d)(2) fails to 
complete the total period of service specified in such agreement, the 
National Call to Service participant shall refund to the United States 
the amount that bears the same ratio to the amount of the incentive as 
the uncompleted part of such service bears to the total period of such 
service.
    ``(2) Subject to paragraph (3), an obligation to reimburse the 
United States imposed under paragraph (1) is for all purposes a debt 
owed to the United States.
    ``(3) The Secretary concerned may waive, in whole or in part, a 
reimbursement required under paragraph (1) if the Secretary concerned 
determines that recovery would be against equity and good conscience or 
would be contrary to the best interests of the United States.
    ``(4) A discharge in bankruptcy under title 11 that is entered into 
less than 5 years after the termination of an agreement entered into 
under subsection (b) does not discharge the person signing the 
agreement from a debt arising under the agreement or under paragraph 
(1).
    ``(i) Funding.--Amounts for payment of incentives under subsection 
(d), including payment of allowances for educational assistance under 
that subsection, shall be derived from amounts available to the 
Secretary of the military department concerned for payment of pay, 
allowances, and other expenses of the members of the armed force 
concerned.
    ``(j) Regulations.--The Secretary of Defense and the Secretaries of 
the military departments shall prescribe regulations for purposes of 
the program under this section.
    ``(k) Definitions.--In this section:
            ``(1) The term `Americorps' means the Americorps program 
        carried out under subtitle C of title I of the National and 
        Community Service Act of 1990 (42 U.S.C. 12571 et seq.).
            ``(2) The term `qualifying student loan' means a loan, the 
        proceeds of which were used to pay the cost of attendance (as 
        defined in section 472 of the Higher Education Act of 1965 (20 
        U.S.C. 1087ll) at an institution of higher education (as 
        defined in section 101 of the Higher Education Act of 1965 (20 
        U.S.C. 1001).
            ``(3) The term `Secretary of a military department' 
        includes the Secretary of Transportation, with respect to 
        matters concerning the Coast Guard when it is not operating as 
        a service in the Navy.''.
    (2) The table of sections at the beginning of that chapter is 
amended by inserting after the item relating to section 325 the 
following new item:

``326. Enlistment incentives for pursuit of skills to facilitate 
                            national service.''.
    (b) Effective Date.--The amendments made by subsection (a) shall 
take effect on October 1, 2002. No individual entering into an 
enlistment before that date may participate in the program under 
section 326 of title 37, United States Code, as added by that 
subsection.

SEC. 542. MILITARY RECRUITER ACCESS TO INSTITUTIONS OF HIGHER 
              EDUCATION.

    (a) Access to Institutions of Higher Education.--Section 503 of 
title 10, United States Code, is amended--
            (1) by redesignating subsection (d) as subsection (e); and
            (2) by inserting after subsection (c) the following new 
        subsection (d):
    ``(d) Access to Institutions of Higher Education.--(1) Each 
institution of higher education receiving assistance under the Higher 
Education Act of 1965 (20 U.S.C. 1001 et seq.)--
            ``(A) shall provide to military recruiters the same access 
        to students at the institution as is provided generally to 
        prospective employers of those students; and
            ``(B) shall, upon a request made by military recruiters for 
        military recruiting purposes, provide access to the names, 
        addresses, and telephone listings of students at the 
        institution, notwithstanding section 444(a)(5)(B) of the 
        General Education Provisions Act (20 U.S.C. 1232g(a)(5)(B)).
    ``(2) An institution of higher education may not release a 
student's name, address, and telephone listing under paragraph (1)(B) 
without the prior written consent of the student or the parent of the 
student (in the case of a student under the age of 18) if the student, 
or a parent of the student, as appropriate, has submitted a request to 
the institution of higher education that the student's information not 
be released for a purpose covered by that subparagraph without prior 
written consent. Each institution of higher education shall notify 
students and parents of the rights provided under the preceding 
sentence.
    ``(3) In this subsection, the term `institution of higher 
education' has the meaning given the term in section 101 of the Higher 
Education Act of 1965 (20 U.S.C. 1001).''.
    (b) Notification.--The Secretary of Education shall provide to 
institutions of higher education notice of the provisions of subsection 
(d) of section 503 of title 10, United States Code, as amended by 
subsection (a) of this section. Such notice shall be provided not later 
than 120 days after the date of the enactment of this Act, and shall be 
provided in consultation with the Secretary of Defense.

                       Subtitle F--Other Matters

SEC. 551. BIENNIAL SURVEYS ON RACIAL, ETHNIC, AND GENDER ISSUES.

    (a) Division of Annual Survey Into Two Biennial Surveys.--Section 
481 of title 10, United States Code, is amended to read as follows:
``Sec. 481. Racial, ethnic, and gender issues: biennial surveys
    ``(a) In General.--The Secretary of Defense shall carry out two 
separate biennial surveys in accordance with this section to identify 
and assess racial, ethnic, and gender issues and discrimination among 
members of the armed forces serving on active duty and the extent (if 
any) of activity among such members that may be seen as so-called `hate 
group' activity.
    ``(b) Biennial Survey on Racial and Ethnic Issues.--One of the 
surveys conducted every two years under this section shall solicit 
information on racial and ethnic issues and the climate in the armed 
forces for forming professional relationships among members of the 
armed forces of the various racial and ethnic groups. The information 
solicited shall include the following:
            ``(1) Indicators of positive and negative trends for 
        professional and personal relationships among members of all 
        racial and ethnic groups.
            ``(2) The effectiveness of Department of Defense policies 
        designed to improve relationships among all racial and ethnic 
        groups.
            ``(3) The effectiveness of current processes for complaints 
        on and investigations into racial and ethnic discrimination.
    ``(c) Biennial Survey on Gender Issues.--One of the surveys 
conducted every two years under this section shall solicit information 
on gender issues, including issues relating to gender-based harassment 
and discrimination, and the climate in the armed forces for forming 
professional relationships between male and female members of the armed 
forces. The information solicited shall include the following:
            ``(1) Indicators of positive and negative trends for 
        professional and personal relationships between male and female 
        members of the armed forces.
            ``(2) The effectiveness of Department of Defense policies 
        designed to improve professional relationships between male and 
        female members of the armed forces.
            ``(3) The effectiveness of current processes for complaints 
        on and investigations into gender-based discrimination.
    ``(d) Surveys To Alternate Every Year.--The biennial survey under 
subsection (b) shall be conducted in odd-numbered years. The biennial 
survey under subsection (c) shall be conducted in even-numbered years.
    ``(e) Implementing Entity.--The Secretary shall carry out the 
biennial surveys through entities in the Department of Defense as 
follows:
            ``(1) The biennial review under subsection (b), through the 
        Armed Forces Survey on Racial and Ethnic Issues.
            ``(2) The biennial review under subsection (c), through the 
        Armed Forces Survey on Gender Issues.
    ``(f) Reports to Congress.--Upon the completion of a biennial 
survey under this section, the Secretary shall submit to Congress a 
report containing the results of the survey.
    ``(g) Inapplicability to Coast Guard.--The requirements for surveys 
under this section do not apply to the Coast Guard.''.
    (b) Clerical Amendment.--The item relating to such section in the 
table of sections at the beginning of chapter 23 of such title is 
amended to read as follows:

``481. Racial, ethnic, and gender issues: biennial surveys.''.

SEC. 552. LEAVE REQUIRED TO BE TAKEN PENDING REVIEW OF A RECOMMENDATION 
              FOR REMOVAL BY A BOARD OF INQUIRY.

    (a) Requirement.--Section 1182(c) of title 10, United States Code, 
is amended--
            (1) by inserting ``(1)'' after ``(c)''; and
            (2) by adding at the end the following new paragraph:
    ``(2) Under regulations prescribed by the Secretary concerned, an 
officer referred to in paragraph (1) may be required to take leave 
pending the completion of the action under this chapter in the case of 
that officer. The officer may be required to begin such leave at any 
time following the officer's receipt of the report of the board of 
inquiry, including the board's recommendation for removal from active 
duty, and the expiration of any period allowed for submission by the 
officer of a rebuttal to that report. The leave may be continued until 
the date on which action by the Secretary concerned under this chapter 
is completed in the case of the officer or may be terminated at any 
earlier time.''.
    (b) Payment for Mandatory Excess Leave Upon Disapproval of Certain 
Involuntary Separation Recommendations.--Chapter 40 of such title is 
amended by inserting after section 707 the following new section:
``Sec. 707a. Payment upon disapproval of certain board of inquiry 
              recommendations for excess leave required to be taken
    ``(a) An officer--
            ``(1) who is required to take leave under section 
        1182(c)(2) of this title, any period of which is charged as 
        excess leave under section 706(a) of this title, and
            ``(2) whose recommendation for removal from active duty in 
        a report of a board of inquiry is not approved by the Secretary 
        concerned under section 1184 of this title,
shall be paid, as provided in subsection (b), for the period of leave 
charged as excess leave.
    ``(b)(1) An officer entitled to be paid under this section shall be 
deemed, for purposes of this section, to have accrued pay and 
allowances for each day of leave required to be taken under section 
1182(c)(2) of this title that is charged as excess leave (except any 
day of accrued leave for which the officer has been paid under section 
706(b)(1) of this title and which has been charged as excess leave).
    ``(2) The officer shall be paid the amount of pay and allowances 
that is deemed to have accrued to the officer under paragraph (1), 
reduced by the total amount of his income from wages, salaries, tips, 
other personal service income, unemployment compensation, and public 
assistance benefits from any Government agency during the period the 
officer is deemed to have accrued pay and allowances. Except as 
provided in paragraph (3), such payment shall be made within 60 days 
after the date on which the Secretary concerned decides not to remove 
the officer from active duty.
    ``(3) If an officer is entitled to be paid under this section, but 
fails to provide sufficient information in a timely manner regarding 
the officer's income when such information is requested under 
regulations prescribed under subsection (c), the period of time 
prescribed in paragraph (2) shall be extended until 30 days after the 
date on which the member provides the information requested.
    ``(c) This section shall be administered under uniform regulations 
prescribed by the Secretaries concerned. The regulations may provide 
for the method of determining an officer's income during any period the 
officer is deemed to have accrued pay and allowances, including a 
requirement that the officer provide income tax returns and other 
documentation to verify the amount of the officer's income.''.
    (c) Conforming Amendments.--(1) Section 706 of such title is 
amended by inserting ``or 1182(c)(2)'' after ``section 876a'' in 
subsections (a), (b), and (c).
    (2) The heading for such section is amended to read as follows:
``Sec. 706. Administration of required leave''.
    (d) Clerical Amendments.--The table of sections at the beginning of 
chapter 40 of title 10, United States Code, is amended--
            (1) by striking the item relating to section 706 and 
        inserting the following:

``706. Administration of required leave.'';
        and
            (2) by inserting after the item relating to section 707 the 
        following new item:

``707a. Payment upon disapproval of certain board of inquiry 
                            recommendations for excess leave required 
                            to be taken.''.

SEC. 553. STIPEND FOR PARTICIPATION IN FUNERAL HONORS DETAILS.

    Section 1491(d) of title 10, United States Code, is amended--
            (1) by striking paragraph (1) and inserting the following:
            ``(A) For a participant in the funeral honors detail who is 
        a member or former member of the armed forces in a retired 
        status or is not a member of the armed forces (other than a 
        former member in a retired status) and not an employee of the 
        United States, either--
                    ``(i) transportation; or
                    ``(ii) a daily stipend prescribed annually by the 
                Secretary of Defense at a single rate that is designed 
                to defray the costs for transportation and other 
                expenses incurred by the participant in connection with 
                participation in the funeral honors detail.'';
            (2) by inserting ``(1)'' after ``(d) Support.--'';
            (3) by redesignating paragraph (2) as subparagraph (B);
            (4) in subparagraph (B), as so redesignated, by inserting 
        ``members of the armed forces in a retired status and'' after 
        ``training for''; and
            (5) by adding at the end the following:
    ``(2) A stipend paid under paragraph (1)(A) to a member or former 
member of the armed forces in a retired status shall be in addition to 
any other compensation to which the retired member may be entitled.''.

SEC. 554. WEAR OF ABAYAS BY FEMALE MEMBERS OF THE ARMED FORCES IN SAUDI 
              ARABIA.

    (a) Prohibitions Relating to Wear of Abayas.--No member of the 
Armed Forces having authority over a member of the Armed Forces and no 
officer or employee of the United States having authority over a member 
of the Armed Forces may--
            (1) require or encourage that member to wear the abaya 
        garment or any part of the abaya garment while the member is in 
        the Kingdom of Saudi Arabia pursuant to a permanent change of 
        station or orders for temporary duty; or
            (2) take any adverse action, whether formal or informal, 
        against the member for choosing not to wear the abaya garment 
        or any part of the abaya garment while the member is in the 
        Kingdom of Saudi Arabia pursuant to a permanent change of 
        station or orders for temporary duty.
    (b) Instruction.--(1) The Secretary of Defense shall provide each 
female member of the Armed Forces ordered to a permanent change of 
station or temporary duty in the Kingdom of Saudi Arabia with 
instructions regarding the prohibitions in subsection (a) immediately 
upon the arrival of the member at a United States military installation 
within the Kingdom of Saudi Arabia. The instructions shall be presented 
orally and in writing. The written instruction shall include the full 
text of this section.
    (2) In carrying out paragraph (1), the Secretary shall act through 
the Commander in Chief, United States Central Command and Joint Task 
Force Southwest Asia, and the commanders of the Army, Navy, Air Force, 
and Marine Corps components of the United States Central Command and 
Joint Task Force Southwest Asia.
    (c) Prohibition on Use of Funds for Procurement of Abayas.--Funds 
appropriated or otherwise made available to the Department of Defense 
may not be used to procure abayas for regular or routine issuance to 
members of the Armed Forces serving in the Kingdom of Saudi Arabia or 
for any personnel of contractors accompanying the Armed Forces in the 
Kingdom of Saudi Arabia in the performance of contracts entered into 
with such contractors by the United States.

          TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS

                     Subtitle A--Pay and Allowances

SEC. 601. INCREASE IN BASIC PAY FOR FISCAL YEAR 2003.

    (a) Waiver of Section 1009 Adjustment.--The adjustment to become 
effective during fiscal year 2003 required by section 1009 of title 37, 
United States Code, in the rates of monthly basic pay authorized 
members of the uniformed services shall not be made.
    (b) Increase in Basic Pay.--Effective on January 1, 2003, the rates 
of monthly basic pay for members of the uniformed services within each 
pay grade are as follows:

                        COMMISSIONED OFFICERS\1\
 Years of service computed under section 205 of title 37, United States
                                  Code
------------------------------------------------------------------------
    Pay Grade     2 or less    Over 2     Over 3     Over 4     Over 6
------------------------------------------------------------------------
O-10\2\.........      $0.00      $0.00      $0.00      $0.00       $0.00
O-9.............       0.00       0.00       0.00       0.00        0.00
O-8.............   7,474.50   7,719.30   7,881.60   7,927.20    8,129.40
O-7.............   6,210.90   6,499.20   6,633.00   6,739.20    6,930.90
O-6.............   4,603.20   5,057.10   5,388.90   5,388.90    5,409.60
O-5.............   3,837.60   4,323.00   4,622.40   4,678.50    4,864.80
O-4.............   3,311.10   3,832.80   4,088.70   4,145.70    4,383.00
O-3\3\..........   2,911.20   3,300.30   3,562.20   3,883.50    4,069.50
O-2\3\..........   2,515.20   2,864.70   3,299.40   3,410.70    3,481.20
O-1\3\..........   2,183.70   2,272.50   2,746.80   2,746.80    2,746.80
                 -------------------------------------------------------
                    Over 8    Over 10    Over 12    Over 14     Over 16
                 -------------------------------------------------------
O-10\2\.........      $0.00      $0.00      $0.00      $0.00       $0.00
O-9.............       0.00       0.00       0.00       0.00        0.00
O-8.............   8,468.70   8,547.30   8,868.90   8,961.30    9,238.20
O-7.............   7,120.80   7,340.40   7,559.40   7,779.00    8,468.70
O-6.............   5,641.20   5,672.10   5,672.10   5,994.60    6,564.30
O-5.............   4,977.00   5,222.70   5,403.00   5,635.50    5,991.90
O-4.............   4,637.70   4,954.50   5,201.40   5,372.70    5,471.10
O-3\3\..........   4,273.50   4,405.80   4,623.30   4,736.10    4,736.10
O-2\3\..........   3,481.20   3,481.20   3,481.20   3,481.20    3,481.20
O-1\3\..........   2,746.80   2,746.80   2,746.80   2,746.80    2,746.80
                 -------------------------------------------------------
                   Over 18    Over 20    Over 22    Over 24     Over 26
                 -------------------------------------------------------
O-10\2\.........      $0.00  $12,077.7  $12,137.1  $12,389.4  $12,829.20
                                     0          0          0
O-9.............       0.00  10,563.60  10,715.70  10,935.60   11,319.60
O-8.............   9,639.00  10,008.90  10,255.80  10,255.80   10,255.80
O-7.............   9,051.30   9,051.30   9,051.30   9,051.30    9,096.90
O-6.............   6,898.80   7,233.30   7,423.50   7,616.10    7,989.90
O-5.............   6,161.70   6,329.10   6,519.60   6,519.60    6,519.60
O-4.............   5,528.40   5,528.40   5,528.40   5,528.40    5,528.40
O-3\3\..........   4,736.10   4,736.10   4,736.10   4,736.10    4,736.10
O-2\3\..........   3,481.20   3,481.20   3,481.20   3,481.20    3,481.20
O-1\3\..........   2,746.80   2,746.80   2,746.80   2,746.80    2,746.80
------------------------------------------------------------------------
\1\Notwithstanding the basic pay rates specified in this table, the
  actual rate of basic pay for commissioned officers in pay grades O-7
  through O-10 may not exceed the rate of pay for level III of the
  Executive Schedule and the actual rate of basic pay for all other
  officers may not exceed the rate of pay for level V of the Executive
  Schedule.
\2\Subject to the preceding footnote, while serving as Chairman or Vice
  Chairman of the Joint Chiefs of Staff, Chief of Staff of the Army,
  Chief of Naval Operations, Chief of Staff of the Air Force, Commandant
  of the Marine Corps, or Commandant of the Coast Guard, the rate of
  basic pay for this grade is $14,155.50, regardless of cumulative years
  of service computed under section 205 of title 37, United States Code.
\3\This table does not apply to commissioned officers in pay grade O-1,
  O-2, or O-3 who have been credited with over 4 years of active duty
  service as an enlisted member or warrant officer.


  COMMISSIONED OFFICERS WITH OVER 4 YEARS OF ACTIVE DUTY SERVICE AS AN
                   ENLISTED MEMBER OR WARRANT OFFICER
 Years of service computed under section 205 of title 37, United States
                                  Code
------------------------------------------------------------------------
    Pay Grade     2 or less    Over 2     Over 3     Over 4     Over 6
------------------------------------------------------------------------
O-3E............      $0.00      $0.00      $0.00  $3,883.50   $4,069.50
O-2E............       0.00       0.00       0.00   3,410.70    3,481.20
O-1E............       0.00       0.00       0.00   2,746.80    2,933.70
                 -------------------------------------------------------
                    Over 8    Over 10    Over 12    Over 14     Over 16
                 -------------------------------------------------------
O-3E............  $4,273.50  $4,405.80  $4,623.30  $4,806.30   $4,911.00
O-2E............   3,591.90   3,778.80   3,923.40   4,031.10    4,031.10
O-1E............   3,042.00   3,152.70   3,261.60   3,410.70    3,410.70
                 -------------------------------------------------------
                   Over 18    Over 20    Over 22    Over 24     Over 26
                 -------------------------------------------------------
O-3E............  $5,054.40  $5,054.40  $5,054.40  $5,054.40   $5,054.40
O-2E............   4,031.10   4,031.10   4,031.10   4,031.10    4,031.10
O-1E............   3,410.70   3,410.70   3,410.70   3,410.70    3,410.70
------------------------------------------------------------------------


                           WARRANT OFFICERS\1\
 Years of service computed under section 205 of title 37, United States
                                  Code
------------------------------------------------------------------------
    Pay Grade      2 or less    Over 2     Over 3     Over 4     Over 6
------------------------------------------------------------------------
W-5..............      $0.00      $0.00      $0.00      $0.00      $0.00
W-4..............   3,008.10   3,236.10   3,329.10   3,420.60   3,578.10
W-3..............   2,747.10   2,862.00   2,979.30   3,017.70   3,141.00
W-2..............   2,416.50   2,554.50   2,675.10   2,763.00   2,838.30
W-1..............   2,133.90   2,308.50   2,425.50   2,501.10   2,662.50
                  ------------------------------------------------------
                     Over 8    Over 10    Over 12    Over 14    Over 16
                  ------------------------------------------------------
W-5..............      $0.00      $0.00      $0.00      $0.00      $0.00
W-4..............   3,733.50   3,891.00   4,044.60   4,203.60   4,356.00
W-3..............   3,281.70   3,467.40   3,580.50   3,771.90   3,915.60
W-2..............   2,993.10   3,148.50   3,264.00   3,376.50   3,453.90
W-1..............   2,782.20   2,888.40   3,006.90   3,085.20   3,203.40
                  ------------------------------------------------------
                    Over 18    Over 20    Over 22    Over 24    Over 26
                  ------------------------------------------------------
W-5..............      $0.00  $5,169.30  $5,346.60  $5,524.50  $5,703.30
W-4..............   4,512.00   4,664.40   4,822.50   4,978.20   5,137.50
W-3..............   4,058.40   4,201.50   4,266.30   4,407.00   4,548.00
W-2..............   3,579.90   3,705.90   3,831.00   3,957.30   3,957.30
W-1..............   3,320.70   3,409.50   3,409.50   3,409.50   3,409.50
------------------------------------------------------------------------
\1\Notwithstanding the basic pay rates specified in this table, the
  actual rate of basic pay for warrant officers may not exceed the rate
  of pay for level V of the Executive Schedule.


                           ENLISTED MEMBERS\1\
 Years of service computed under section 205 of title 37, United States
                                  Code
------------------------------------------------------------------------
    Pay Grade      2 or less    Over 2     Over 3     Over 4     Over 6
------------------------------------------------------------------------
E-9\2\...........      $0.00      $0.00      $0.00      $0.00      $0.00
E-8..............       0.00       0.00       0.00       0.00       0.00
E-7..............   2,068.50   2,257.80   2,343.90   2,428.20   2,516.40
E-6..............   1,770.60   1,947.60   2,033.70   2,117.10   2,204.10
E-5..............   1,625.40   1,733.70   1,817.40   1,903.50   2,037.00
E-4..............   1,502.70   1,579.80   1,665.30   1,749.30   1,824.00
E-3..............   1,356.90   1,442.10   1,528.80   1,528.80   1,528.80
E-2..............   1,290.00   1,290.00   1,290.00   1,290.00   1,290.00
E-1\3\...........   1,150.80   1,150.80   1,150.80   1,150.80   1,150.80
                  ------------------------------------------------------
                     Over 8    Over 10    Over 12    Over 14    Over 16
                  ------------------------------------------------------
E-9\2\...........      $0.00  $3,564.30  $3,645.00  $3,747.00  $3,867.00
E-8..............   2,975.40   3,061.20   3,141.30   3,237.60   3,342.00
E-7..............   2,667.90   2,753.40   2,838.30   2,990.40   3,066.30
E-6..............   2,400.90   2,477.40   2,562.30   2,636.70   2,663.10
E-5..............   2,151.90   2,236.80   2,283.30   2,283.30   2,283.30
E-4..............   1,824.00   1,824.00   1,824.00   1,824.00   1,824.00
E-3..............   1,528.80   1,528.80   1,528.80   1,528.80   1,528.80
E-2..............   1,290.00   1,290.00   1,290.00   1,290.00   1,290.00
E-1\3\...........   1,150.80   1,150.80   1,150.80   1,150.80   1,150.80
                  ------------------------------------------------------
                    Over 18    Over 20    Over 22    Over 24    Over 26
                  ------------------------------------------------------
E-9\2\...........  $3,987.30  $4,180.80  $4,344.30  $4,506.30  $4,757.40
E-8..............   3,530.10   3,625.50   3,787.50   3,877.50   4,099.20
E-7..............   3,138.60   3,182.70   3,331.50   3,427.80   3,671.40
E-6..............   2,709.60   2,709.60   2,709.60   2,709.60   2,709.60
E-5..............   2,283.30   2,283.30   2,283.30   2,283.30   2,283.30
E-4..............   1,824.00   1,824.00   1,824.00   1,824.00   1,824.00
E-3..............   1,528.80   1,528.80   1,528.80   1,528.80   1,528.80
E-2..............   1,290.00   1,290.00   1,290.00   1,290.00   1,290.00
E-1\3\...........   1,150.80   1,150.80   1,150.80   1,150.80   1,150.80
------------------------------------------------------------------------
\1\Notwithstanding the basic pay rates specified in this table, the
  actual rate of basic pay for enlisted members may not exceed the rate
  of pay for level V of the Executive Schedule.
\2\Subject to the preceding footnote, while serving as Sergeant Major of
  the Army, Master Chief Petty Officer of the Navy, Chief Master
  Sergeant of the Air Force, Sergeant Major of the Marine Corps, or
  Master Chief Petty Officer of the Coast Guard, the rate of basic pay
  for this grade is $5,732.70, regardless of cumulative years of service
  computed under section 205 of title 37, United States Code.
\3\In the case of members in pay grade E-1 who have served less than 4
  months on active duty, the rate of basic pay is $1,064.70.

SEC. 602. RATE OF BASIC ALLOWANCE FOR SUBSISTENCE FOR ENLISTED 
              PERSONNEL OCCUPYING SINGLE GOVERNMENT QUARTERS WITHOUT 
              ADEQUATE AVAILABILITY OF MEALS.

    (a) Authority To Pay Increased Rate.--Section 402(d) of title 37, 
United States Code, is amended to read as follows:
    ``(d) Special Rate for Enlisted Members Occupying Single Quarters 
Without Adequate Availability of Meals.--The Secretary of Defense, and 
the Secretary of Transportation with respect to the Coast Guard when it 
is not operating as a service in the Navy, may pay an enlisted member 
the basic allowance for subsistence under this section at a monthly 
rate that is twice the amount in effect under subsection (b)(2) while--
            ``(1) the member is assigned to single Government quarters 
        which have no adequate food storage or preparation facility in 
        the quarters; and
            ``(2) there is no Government messing facility serving those 
        quarters that is capable of making meals available to the 
        occupants of the quarters.''.
    (b) Effective Date.--Subsection (a) and the amendment made by such 
subsection shall take effect on October 1, 2002.

SEC. 603. BASIC ALLOWANCE FOR HOUSING IN CASES OF LOW-COST OR NO-COST 
              MOVES.

    Section 403 of title 37, United States Code, is amended--
            (1) by transferring paragraph (7) of subsection (b) to the 
        end of the section; and
            (2) in such paragraph--
                    (A) by striking ``(7)'' and all that follows 
                through ``circumstances of which make it necessary that 
                the member be'' and inserting ``(o) Treatment of Low-
                Cost and No-Cost Moves as Not Being Reassignments.--In 
                the case of a member who is assigned to duty at a 
                location or under circumstances that make it necessary 
                for the member to be''; and
                    (B) by inserting ``for the purposes of this 
                section'' after ``may be treated''.

SEC. 604. TEMPORARY AUTHORITY FOR HIGHER RATES OF PARTIAL BASIC 
              ALLOWANCE FOR HOUSING FOR CERTAIN MEMBERS ASSIGNED TO 
              HOUSING UNDER ALTERNATIVE AUTHORITY FOR ACQUISITION AND 
              IMPROVEMENT OF MILITARY HOUSING.

    (a) Authority.--The Secretary of Defense may prescribe and, under 
section 403(n) of title 37, United States Code, pay for members of the 
Armed Forces (without dependents) in privatized housing higher rates of 
partial basic allowance for housing than those that are authorized 
under paragraph (2) of such section 403(n).
    (b) Members in Privatized Housing.--For the purposes of this 
section, a member of the Armed Forces (without dependents) is a member 
of the Armed Forces (without dependents) in privatized housing while 
the member is assigned to housing that is acquired or constructed under 
the authority of subchapter IV of chapter 169 of title 10, United 
States Code.
    (c) Treatment of Housing as Government Quarters.--For purposes of 
section 403 of title 37, United States Code, a member of the Armed 
Forces (without dependents) in privatized housing shall be treated as 
residing in quarters of the United States or a housing facility under 
the jurisdiction of the Secretary of a military department while a 
higher rate of partial allowance for housing is paid for the member 
under this section.
    (d) Payment to Private Source.--The partial basic allowance for 
housing paid for a member at a higher rate under this section may be 
paid directly to the private sector source of the housing to whom the 
member is obligated to pay rent or other charge for residing in such 
housing if the private sector source credits the amount so paid against 
the amount owed by the member for the rent or other charge.
    (e) Termination of Authority.--Rates prescribed under subsection 
(a) may not be paid under the authority of this section in connection 
with contracts that are entered into after December 31, 2007, for the 
construction or acquisition of housing under the authority of 
subchapter IV of chapter 169 of title 10, United States Code.

           Subtitle B--Bonuses and Special and Incentive Pays

SEC. 611. ONE-YEAR EXTENSION OF CERTAIN BONUS AND SPECIAL PAY 
              AUTHORITIES FOR RESERVE FORCES.

    (a) Selected Reserve Reenlistment Bonus.--Section 308b(f) of title 
37, United States Code, is amended by striking ``December 31, 2002'' 
and inserting ``December 31, 2003''.
    (b) Selected Reserve Enlistment Bonus.--Section 308c(e) of such 
title is amended by striking ``December 31, 2002'' and inserting 
``December 31, 2003''.
    (c) Special Pay for Enlisted Members Assigned to Certain High 
Priority Units.--Section 308d(c) of such title is amended by striking 
``December 31, 2002'' and inserting ``December 31, 2003''.
    (d) Selected Reserve Affiliation Bonus.--Section 308e(e) of such 
title is amended by striking ``December 31, 2002'' and inserting 
``December 31, 2003''.
    (e) Ready Reserve Enlistment and Reenlistment Bonus.--Section 
308h(g) of such title is amended by striking ``December 31, 2002'' and 
inserting ``December 31, 2003''.
    (f) Prior Service Enlistment Bonus.--Section 308i(f) of such title 
is amended by striking ``December 31, 2002'' and inserting ``December 
31, 2003''.

SEC. 612. ONE-YEAR EXTENSION OF CERTAIN BONUS AND SPECIAL PAY 
              AUTHORITIES FOR CERTAIN HEALTH CARE PROFESSIONALS.

    (a) Nurse Officer Candidate Accession Program.--Section 2130a(a)(1) 
of title 10, United States Code, is amended by striking ``December 31, 
2002'' and inserting ``December 31, 2003''.
    (b) Repayment of Education Loans for Certain Health Professionals 
Who Serve in the Selected Reserve.--Section 16302(d) of such title is 
amended by striking ``January 1, 2003'' and inserting ``January 1, 
2004''.
    (c) Accession Bonus for Registered Nurses.--Section 302d(a)(1) of 
title 37, United States Code, is amended by striking ``December 31, 
2002'' and inserting ``December 31, 2003''.
    (d) Incentive Special Pay for Nurse Anesthetists.--Section 
302e(a)(1) of such title is amended by striking ``December 31, 2002'' 
and inserting ``December 31, 2003''.
    (e) Special Pay for Selected Reserve Health Professionals in 
Critically Short Wartime Specialties.--Section 302g(f) of such title is 
amended by striking ``December 31, 2002'' and inserting ``December 31, 
2003''.
    (f) Accession Bonus for Dental Officers.--Section 302h(a)(1) of 
such title is amended by striking ``December 31, 2002'' and inserting 
``December 31, 2003''.

SEC. 613. ONE-YEAR EXTENSION OF SPECIAL PAY AND BONUS AUTHORITIES FOR 
              NUCLEAR OFFICERS.

    (a) Special Pay for Nuclear-Qualified Officers Extending Period of 
Active Service.--Section 312(e) of title 37, United States Code, is 
amended by striking ``December 31, 2002'' and inserting ``December 31, 
2003''.
    (b) Nuclear Career Accession Bonus.--Section 312b(c) of such title 
is amended by striking ``December 31, 2002'' and inserting ``December 
31, 2003''.
    (c) Nuclear Career Annual Incentive Bonus.--Section 312c(d) of such 
title is amended by striking ``December 31, 2002'' and inserting 
``December 31, 2003''.

SEC. 614. ONE-YEAR EXTENSION OF OTHER BONUS AND SPECIAL PAY 
              AUTHORITIES.

    (a) Aviation Officer Retention Bonus.--Section 301b(a) of title 37, 
United States Code, is amended by striking ``December 31, 2002'' and 
inserting ``December 31, 2003''.
    (b) Reenlistment Bonus for Active Members.--Section 308(g) of such 
title is amended by striking ``December 31, 2002'' and inserting 
``December 31, 2003''.
    (c) Enlistment Bonus for Active Members.--Section 309(e) of such 
title is amended by striking ``December 31, 2002'' and inserting 
``December 31, 2003''.
    (d) Retention Bonus for Members With Critical Military Skills.--
Section 323(i) of such title is amended by striking ``December 31, 
2002'' and inserting ``December 31, 2003''.
    (e) Accession Bonus for New Officers in Critical Skills.--Section 
324(g) of such title is amended by striking ``December 31, 2002'' and 
inserting ``December 31, 2003''.

SEC. 615. INCREASED MAXIMUM AMOUNT PAYABLE AS MULTIYEAR RETENTION BONUS 
              FOR MEDICAL OFFICERS OF THE ARMED FORCES.

    Section 301d(a)(2) of title 37, United States Code, is amended by 
striking ``$14,000'' and inserting ``$25,000''.

SEC. 616. INCREASED MAXIMUM AMOUNT PAYABLE AS INCENTIVE SPECIAL PAY FOR 
              MEDICAL OFFICERS OF THE ARMED FORCES.

    Section 302(b)(1) of title 37, United States Code, is amended--
            (1) by striking ``fiscal year 1992, and'' in the second 
        sentence and inserting ``fiscal year 1992,''; and
            (2) by inserting before the period at the end of such 
        sentence the following: ``and before fiscal year 2003, and 
        $50,000 for any twelve-month period beginning after fiscal year 
        2002''.

SEC. 617. ASSIGNMENT INCENTIVE PAY.

    (a) Authority.--(1) Chapter 5 of title 37, United States Code, is 
amended by inserting after section 305a the following new section:
``Sec. 305b. Special pay: assignment incentive pay
    ``(a) Authority.--The Secretary concerned, with the concurrence of 
the Secretary of Defense, may pay monthly incentive pay under this 
section to a member of a uniformed service for a period that the member 
performs service, while entitled to basic pay, in an assignment that is 
designated by the Secretary concerned.
    ``(b) Maximum Rate.--The maximum monthly rate of incentive pay 
payable to a member under this section is $1,500.
    ``(c) Relationship to Other Pay and Allowances.--Incentive pay paid 
to a member under this section is in addition to any other pay and 
allowances to which the member is entitled.
    ``(d) Status Not Affected by Temporary Duty or Leave.--The service 
of a member in an assignment referred to in subsection (a) shall not be 
considered discontinued during any period that the member is not 
performing service in such assignment by reason of temporary duty 
performed by the member pursuant to orders or absence of the member for 
authorized leave.
    ``(e) Termination of Authority.--No assignment incentive pay may be 
paid under this section for months beginning more than three years 
after the date of the enactment of the National Defense Authorization 
Act for Fiscal Year 2003.''.
    (2) The table of sections at the beginning of such chapter is 
amended by inserting after the item relating to section 305a the 
following new item:

``305b. Special pay: assignment incentive pay.''.
    (b) Annual Report.--Not later than February 28 of each of 2004 and 
2005, the Secretary of Defense shall submit to the Committees on Armed 
Services of the Senate and the House of Representatives a report on the 
administration of the authority under section 305b of title 37, United 
States Code, as added by subsection (a). The report shall include an 
assessment of the utility of that authority.

SEC. 618. INCREASED MAXIMUM AMOUNTS FOR PRIOR SERVICE ENLISTMENT BONUS.

    Section 308i(b)(1) of title 37, United States Code, is amended--
            (1) in subparagraph (A), by striking ``$5,000'' and 
        inserting ``$8,000'';
            (2) in subparagraph (B), by striking ``$2,500'' and 
        inserting ``$4,000''; and
            (3) in subparagraph (C), by striking ``$2,000'' and 
        inserting ``$3,500''.

            Subtitle C--Travel and Transportation Allowances

SEC. 631. DEFERRAL OF TRAVEL IN CONNECTION WITH LEAVE BETWEEN 
              CONSECUTIVE OVERSEAS TOURS.

    (a) Date to Which Travel May Be Deferred.--Section 411b(a)(2) of 
title 37, United States Code, is amended by striking ``not more than 
one year'' in the first sentence and all that follows through 
``operation ends.'' in the second sentence and inserting the following: 
``the date on which the member departs the duty station in termination 
of the consecutive tour of duty at that duty station or reports to 
another duty station under the order involved, as the case may be.''.
    (b) Effective Date and Savings Provision.--(1) The amendment made 
by subsection (a) shall take effect on October 1, 2002.
    (2) Section 411b(a) of title 37, United States Code, as in effect 
on September 30, 2002, shall continue to apply with respect to travel 
described in subsection (a)(2) of such title (as in effect on such 
date) that commences before October 1, 2002.

SEC. 632. TRANSPORTATION OF MOTOR VEHICLES FOR MEMBERS REPORTED 
              MISSING.

    (a) Authority To Ship Two Motor Vehicles.--Subsection (a) of 
section 554 of title 37, United States Code, is amended by striking 
``one privately owned motor vehicle'' both places it appears and 
inserting ``two privately owned motor vehicles''.
    (b) Payments for Late Delivery.--Subsection (i) of such section is 
amended by adding at the end the following: ``In a case in which two 
motor vehicles of a member (or the dependent or dependents of a member) 
are transported at the expense of the United States, no reimbursement 
is payable under this subsection unless both motor vehicles do not 
arrive at the authorized destination of the vehicles by the designated 
delivery date.''.
    (c) Applicability.--The amendments made by subsection (a) shall 
apply with respect to members whose eligibility for benefits under 
section 554 of title 37, United States Code, commences on or after the 
date of the enactment of this Act.

SEC. 633. DESTINATIONS AUTHORIZED FOR GOVERNMENT PAID TRANSPORTATION OF 
              ENLISTED PERSONNEL FOR REST AND RECUPERATION UPON 
              EXTENDING DUTY AT DESIGNATED OVERSEAS LOCATIONS.

    Section 705(b)(2) of title 10, United States Code, is amended by 
inserting before the period at the end the following: ``, or to an 
alternative destination at a cost not to exceed the cost of the round-
trip transportation from the location of the extended tour of duty to 
such nearest port and return''.

SEC. 634. VEHICLE STORAGE IN LIEU OF TRANSPORTATION TO CERTAIN AREAS OF 
              THE UNITED STATES OUTSIDE CONTINENTAL UNITED STATES.

    Section 2634(b) of title 10, United States Code, is amended:
            (1) by redesignating paragraphs (2), (3), and (4) as 
        paragraphs (3), (4), and (5), respectively; and
            (2) by inserting after paragraph (1) the following new 
        paragraph (2):
    ``(2) In lieu of transportation authorized by this section, if a 
member is ordered to make a change of permanent station to Alaska, 
Hawaii, Puerto Rico, the Northern Mariana Islands, Guam, or any 
territory or possession of the United States and laws, regulations, or 
other restrictions preclude transportation of a motor vehicle described 
in subsection (a) to the new station, the member may elect to have the 
vehicle stored at the expense of the United States at a location 
approved by the Secretary concerned.''.

          Subtitle D--Retirement and Survivor Benefit Matters

SEC. 641. PAYMENT OF RETIRED PAY AND COMPENSATION TO DISABLED MILITARY 
              RETIREES.

    (a) In General.--Section 1414 of title 10, United States Code, is 
amended to read as follows:
``Sec. 1414. Members eligible for retired pay who have service-
              connected disabilities: payment of retired pay and 
              veterans' disability compensation
    ``(a) Payment of Both Retired Pay and Compensation.--Except as 
provided in subsection (b), a member or former member of the uniformed 
services who is entitled to retired pay (other than as specified in 
subsection (c)) and who is also entitled to veterans' disability 
compensation is entitled to be paid both without regard to sections 
5304 and 5305 of title 38.
    ``(b) Special Rule for Chapter 61 Career Retirees.--The retired pay 
of a member retired under chapter 61 of this title with 20 years or 
more of service otherwise creditable under section 1405 of this title 
at the time of the member's retirement is subject to reduction under 
sections 5304 and 5305 of title 38, but only to the extent that the 
amount of the member's retired pay under chapter 61 of this title 
exceeds the amount of retired pay to which the member would have been 
entitled under any other provision of law based upon the member's 
service in the uniformed services if the member had not been retired 
under chapter 61 of this title.
    ``(c) Exception.--Subsection (a) does not apply to a member retired 
under chapter 61 of this title with less than 20 years of service 
otherwise creditable under section 1405 of this title at the time of 
the member's retirement.
    ``(d) Definitions.--In this section:
            ``(1) The term `retired pay' includes retainer pay, 
        emergency officers' retirement pay, and naval pension.
            ``(2) The term `veterans' disability compensation' has the 
        meaning given the term `compensation' in section 101(13) of 
        title 38.''.
    (b) Repeal of Special Compensation Program.--Section 1413 of such 
title is repealed.
    (c) Conforming Amendment.--Section 641(d) of the National Defense 
Authorization Act for Fiscal Year 2002 (Public Law 107-107; 115 Stat. 
1150; 10 U.S.C. 1414 note) is repealed.
    (d) Clerical Amendments.--The table of sections at the beginning of 
chapter 71 of title 10, United States Code, is amended by striking the 
items relating to sections 1413 and 1414 and inserting the following 
new item:

``1414. Members eligible for retired pay who have service-connected 
                            disabilities: payment of retired pay and 
                            veterans' disability compensation.''.
    (e) Effective Date.--The amendments made by this section shall take 
effect on--
            (1) the first day of the first month that begins after the 
        date of the enactment of this Act; or
            (2) the first day of the fiscal year that begins in the 
        calendar year in which this Act is enacted, if later than the 
        date specified in paragraph (1).
    (f) Prohibition on Retroactive Benefits.--No benefits may be paid 
to any person by reason of section 1414 of title 10, United States 
Code, as amended by subsection (a), for any period before the effective 
date specified in subsection (e).

SEC. 642. INCREASED RETIRED PAY FOR ENLISTED RESERVES CREDITED WITH 
              EXTRAORDINARY HEROISM.

    (a) Authority.--Section 12739 of title 10, United States Code, is 
amended--
            (1) by redesignating subsections (b) and (c) as subsections 
        (c) and (d), respectively;
            (2) by inserting after subsection (a) the following new 
        subsection (b):
    ``(b) If an enlisted member retired under section 12731 of this 
title has been credited by the Secretary concerned with extraordinary 
heroism in the line of duty, the member's retired pay shall be 
increased by 10 percent of the amount determined under subsection (a). 
The Secretary's determination as to extraordinary heroism is conclusive 
for all purposes.''; and
            (3) in subsection (c), as redesignated by paragraph (1), by 
        striking ``amount computed under subsection (a),'' and 
        inserting ``total amount of the monthly retired pay computed 
        under subsections (a) and (b)''.
    (b) Effective Date.--The amendments made by subsection (a) shall 
take effect on October 1, 2002, and shall apply with respect to retired 
pay for months beginning on or after that date.

SEC. 643. EXPANDED SCOPE OF AUTHORITY TO WAIVE TIME LIMITATIONS ON 
              CLAIMS FOR MILITARY PERSONNEL BENEFITS.

    (a) Authority.--Section 3702(e)(1) of title 31, United States Code, 
is amended by striking ``a claim for pay, allowances, or payment for 
unused accrued leave under title 37 or a claim for retired pay under 
title 10'' and inserting ``a claim referred to in subsection 
(a)(1)(A)''.
    (b) Applicability.--The amendment made by subsection (a) shall 
apply with respect to claims presented to the Secretary of Defense 
under section 3702 of title 31, United States Code, on or after the 
date of the enactment of this Act.

                       Subtitle E--Other Matters

SEC. 651. ADDITIONAL AUTHORITY TO PROVIDE ASSISTANCE FOR FAMILIES OF 
              MEMBERS OF THE ARMED FORCES.

    (a) Authority.--(1) Subchapter I of chapter 88 of title 10, United 
States Code, is amended by adding at the end the following new section:
``Sec. 1788. Additional family assistance
    ``(a) Authority.--The Secretary of Defense may provide for the 
families of members of the armed forces serving on active duty, in 
addition to any other assistance available for such families, any 
assistance that the Secretary considers appropriate to ensure that the 
children of such members obtain needed child care, education, and other 
youth services.
    ``(b) Primary Purpose of Assistance.--The assistance authorized by 
this section should be directed primarily toward providing needed 
family support, including child care, education, and other youth 
services, for children of members of the Armed Forces who are deployed, 
assigned to duty, or ordered to active duty in connection with a 
contingency operation.''.
    (2) The table of sections at the beginning of such subchapter is 
amended by adding at the end the following new item:

``1788. Additional family assistance.''.
    (b) Effective Date.--Section 1788 of title 10, United States Code, 
as added by subsection (a), shall take effect on October 1, 2002.

SEC. 652. TIME LIMITATION FOR USE OF MONTGOMERY GI BILL ENTITLEMENT BY 
              MEMBERS OF THE SELECTED RESERVE.

    (a) Extension of Limitation Period.--Section 16133(a)(1) of title 
10, United States Code, is amended by striking ``10-year'' and 
inserting ``14-year''.
    (b) Effective Date and Applicability.--The amendment made by 
subsection (a) shall take effect on October 1, 2002, and shall apply 
with respect to periods of entitlement to educational assistance under 
chapter 1606 of title 10, United States Code, that begin on or after 
October 1, 1992.

SEC. 653. STATUS OF OBLIGATION TO REFUND EDUCATIONAL ASSISTANCE UPON 
              FAILURE TO PARTICIPATE SATISFACTORILY IN SELECTED 
              RESERVE.

    Section 16135 of title 10, United States Code, is amended by adding 
at the end the following new subsection:
    ``(c)(1) An obligation to pay a refund to the United States under 
subsection (a)(1)(B) in an amount determined under subsection (b) is, 
for all purposes, a debt owed to the United States.
    ``(2) A discharge in bankruptcy under title 11 that is entered for 
a person less than five years after the termination of the person's 
enlistment or other service described in subsection (a) does not 
discharge the person from a debt arising under this section with 
respect to that enlistment or other service.''.

SEC. 654. PROHIBITION ON ACCEPTANCE OF HONORARIA BY PERSONNEL AT 
              CERTAIN DEPARTMENT OF DEFENSE SCHOOLS.

    (a) Repeal of Exemption.--Section 542 of the National Defense 
Authorization Act for Fiscal Year 1993 (Public Law 102-484; 106 Stat. 
2413; 10 U.S.C. prec. 2161 note) is repealed.
    (b) Effective Date and Applicability.--The amendment made by 
subsection (a) shall take effect on October 1, 2002, and shall apply 
with respect to appearances made, speeches presented, and articles 
published on or after that date.

SEC. 655. RATE OF EDUCATIONAL ASSISTANCE UNDER MONTGOMERY GI BILL OF 
              DEPENDENTS TRANSFERRED ENTITLEMENT BY MEMBERS OF THE 
              ARMED FORCES WITH CRITICAL SKILLS.

    (a) Clarification.--Section 3020(h) of title 38, United States 
Code, is amended--
            (1) in paragraph (2)--
                    (A) by striking ``paragraphs (4) and (5)'' and 
                inserting ``paragraphs (5) and (6)''; and
                    (B) by striking ``and at the same rate'';
            (2) by redesignating paragraphs (3) through (6) as 
        paragraphs (4) through (7), respectively; and
            (3) by inserting after paragraph (2) the following new 
        paragraph (3):
    ``(3)(A) Subject to subparagraph (B), the monthly rate of 
educational assistance payable to a dependent to whom entitlement is 
transferred under this section shall be the monthly amount payable 
under sections 3015 and 3022 of this title to the individual making the 
transfer.
    ``(B) The monthly rate of assistance payable to a dependent under 
subparagraph (A) shall be subject to the provisions of section 3032 of 
this title, except that the provisions of subsection (a)(1) of that 
section shall not apply even if the individual making the transfer to 
the dependent under this section is on active duty during all or any 
part of enrollment period of the dependent in which such entitlement is 
used.''.
    (b) Effective Date.--The amendments made by subsection (a) shall 
take effect as if included in the enactment of the National Defense 
Authorization Act for Fiscal Year 2002 (Public Law 107-107), to which 
such amendments relate.

SEC. 656. PAYMENT OF INTEREST ON STUDENT LOANS.

    (a) Authority.--(1) Chapter 109 of title 10, United States Code, is 
amended by adding at the end the following new section:
``Sec. 2174. Interest payment program: members on active duty
    ``(a) Authority.--(1) The Secretary concerned may pay in accordance 
with this section the interest and any special allowances that accrue 
on one or more student loans of an eligible member of the armed forces.
    ``(2) The Secretary of a military department may exercise the 
authority under paragraph (1) only if approved by the Secretary of 
Defense and subject to such requirements, conditions, and restrictions 
as the Secretary of Defense may prescribe.
    ``(b) Eligible Personnel.--A member of the armed forces is eligible 
for the benefit under subsection (a) while the member--
            ``(1) is serving on active duty in fulfillment of the 
        member's first enlistment in the armed forces or, in the case 
        of an officer, is serving on active duty and has not completed 
        more than three years of service on active duty;
            ``(2) is the debtor on one or more unpaid loans described 
        in subsection (c); and
            ``(3) is not in default on any such loan.
    ``(c) Student Loans.--The authority to make payments under 
subsection (a) may be exercised with respect to the following loans:
            ``(1) A loan made, insured, or guaranteed under part B of 
        title IV of the Higher Education Act of 1965 (20 U.S.C. 1071 et 
        seq.).
            ``(2) A loan made under part D of such title (20 U.S.C. 
        1087a et seq.).
            ``(3) A loan made under part E of such title (20 U.S.C. 
        1087aa et seq.).
    ``(d) Maximum Benefit.--The months for which interest and any 
special allowance may be paid on behalf of a member of the armed forces 
under this section are any 36 consecutive months during which the 
member is eligible under subsection (b).
    ``(e) Funds for Payments.--Appropriations available for the pay and 
allowances of military personnel shall be available for payments under 
this section.
    ``(f) Coordination.--(1) The Secretary of Defense and, with respect 
to the Coast Guard when it is not operating as a service in the Navy, 
the Secretary of Transportation shall consult with the Secretary of 
Education regarding the administration of the authority under this 
section.
    ``(2) The Secretary concerned shall transfer to the Secretary of 
Education the funds necessary--
            ``(A) to pay interest and special allowances on student 
        loans under this section (in accordance with sections 428(o) 
        and 464(j) of the Higher Education Act of 1965 (20 U.S.C. 
        1078(o) and 1087dd(j)); and
            ``(B) to reimburse the Secretary of Education for any 
        reasonable administrative costs incurred by the Secretary in 
        coordinating the program under this section with the 
        administration of the student loan programs under parts B, D, 
        and E of title IV of the Higher Education Act of 1965.
    ``(g) Special Allowance Defined.--In this section, the term 
`special allowance' means a special allowance that is payable under 
section 438 of the Higher Education Act of 1965 (20 U.S.C. 1087-1).''.
    (2) The table of sections at the beginning of such chapter is 
amended by adding at the end the following new item:

``2174. Interest payment program: members on active duty.''.
    (b) Federal Family Education Loans and Direct Loans.--(1) 
Subsection (c)(3) of section 428 of the Higher Education Act of 1965 
(20 U.S.C. 1078) is amended--
            (A) in clause (i) of subparagraph (A)--
                    (i) by striking ``or'' at the end of subclause 
                (II);
                    (ii) by inserting ``or'' at the end of subclause 
                (III); and
                    (iii) by adding at the end the following new 
                subclause:
                                    ``(IV) is eligible for interest 
                                payments to be made on such loan for 
                                service in the Armed Forces under 
                                section 2174 of title 10, United States 
                                Code, and, pursuant to that 
                                eligibility, the interest is being paid 
                                on such loan under subsection (o);'';
            (B) in clause (ii)(II) of subparagraph (A), by inserting 
        ``or (i)(IV)'' after ``clause (i)(II)''; and
            (C) by striking subparagraph (C) and inserting the 
        following:
                    ``(C) shall contain provisions that specify that--
                            ``(i) the form of forbearance granted by 
                        the lender pursuant to this paragraph, other 
                        than subparagraph (A)(i)(IV), shall be 
                        temporary cessation of payments, unless the 
                        borrower selects forbearance in the form of an 
                        extension of time for making payments, or 
                        smaller payments than were previously 
                        scheduled; and
                            ``(ii) the form of forbearance granted by 
                        the lender pursuant to subparagraph (A)(i)(IV) 
                        shall be the temporary cessation of all 
                        payments on the loan other than payments of 
                        interest on the loan, and payments of any 
                        special allowance payable with respect to the 
                        loan under section 438 of this Act, that are 
                        made under subsection (o); and''.
    (2) Section 428 of such Act is further amended by adding at the end 
the following new subsection:
    ``(o) Armed Forces Student Loan Interest Payment Program.--
            ``(1) Authority.--Using funds received by transfer to the 
        Secretary under section 2174 of title 10, United States Code, 
        for the payment of interest and any special allowance on a loan 
        to a member of the Armed Forces that is made, insured, or 
        guaranteed under this part, the Secretary shall pay the 
        interest and special allowance on such loan as due for a period 
        not in excess of 36 consecutive months. The Secretary may not 
        pay interest or any special allowance on such a loan out of any 
        funds other than funds that have been so transferred.
            ``(2) Forbearance.--During the period in which the 
        Secretary is making payments on a loan under paragraph (1), the 
        lender shall grant the borrower forbearance in accordance with 
        the guaranty agreement under subsection (c)(3)(A)(i)(IV).
            ``(3) Special allowance defined.--For the purposes of this 
        subsection, the term `special allowance', means a special 
        allowance that is payable with respect to a loan under section 
        438 of this Act.''.
    (c) Federal Perkins Loans.--Section 464 of the Higher Education Act 
of 1965 (20 U.S.C. 1087dd) is amended--
            (1) in subsection (e)--
                    (A) by striking ``or'' at the end of paragraph (1);
                    (B) by striking the period at the end of paragraph 
                (2) and inserting ``; or''; and
                    (C) by adding at the end the following new 
                paragraph:
            ``(3) the borrower is eligible for interest payments to be 
        made on such loan for service in the Armed Forces under section 
        2174 of title 10, United States Code, and, pursuant to that 
        eligibility, the interest on such loan is being paid under 
        subsection (j), except that the form of a forbearance under 
        this paragraph shall be a temporary cessation of all payments 
        on the loan other than payments of interest on the loan that 
        are made under subsection (j).''; and
            (2) by adding at the end the following new subsection:
    ``(j) Armed Forces Student Loan Interest Payment Program.--
            ``(1) Authority.--Using funds received by transfer to the 
        Secretary under section 2174 of title 10, United States Code, 
        for the payment of interest on a loan made under this part to a 
        member of the Armed Forces, the Secretary shall pay the 
        interest on the loan as due for a period not in excess of 36 
        consecutive months. The Secretary may not pay interest on such 
        a loan out of any funds other than funds that have been so 
        transferred.
            ``(2) Forbearance.--During the period in which the 
        Secretary is making payments on a loan under paragraph (1), the 
        institution of higher education shall grant the borrower 
        forbearance in accordance with subsection (e)(3).''.
    (d) Effective Date.--The amendments made by this section shall 
apply with respect to interest, and any special allowance under section 
438 of the Higher Education Act of 1965, that accrue for months 
beginning on or after October 1, 2003, on student loans described in 
subsection (c) of section 2174 of title 10, United States Code (as 
added by subsection (a)), that were made before, on, or after such date 
to members of the Armed Forces who are on active duty (as defined in 
section 101(d) of title 10, United States Code) on or after that date.

SEC. 657. MODIFICATION OF AMOUNT OF BACK PAY FOR MEMBERS OF NAVY AND 
              MARINE CORPS SELECTED FOR PROMOTION WHILE INTERNED AS 
              PRISONERS OF WAR DURING WORLD WAR II TO TAKE INTO ACCOUNT 
              CHANGES IN CONSUMER PRICE INDEX.

    (a) Modification.--Section 667(c) of the Floyd D. Spence National 
Defense Authorization Act for Fiscal Year 2001 (as enacted into law by 
Public Law 106-398; 114 Stat. 1654A-170) is amended by adding at the 
end the following new paragraph:
    ``(3) The amount determined for a person under paragraph (1) shall 
be increased to reflect increases in cost of living since the basic pay 
referred to in paragraph (1)(B) was paid to or for that person, 
calculated on the basis of the Consumer Price Index (all items--United 
States city average) published monthly by the Bureau of Labor 
Statistics.''.
    (b) Recalculation of Previous Payments.--In the case of any payment 
of back pay made to or for a person under section 667 of the Floyd D. 
Spence National Defense Authorization Act for Fiscal Year 2001 before 
the date of the enactment of this Act, the Secretary of the Navy 
shall--
            (1) recalculate the amount of back pay to which the person 
        is entitled by reason of the amendment made by subsection (a); 
        and
            (2) if the amount of back pay, as so recalculated, exceeds 
        the amount of back pay so paid, pay the person, or the 
        surviving spouse of the person, an amount equal to the excess.

                         TITLE VII--HEALTH CARE

SEC. 701. ELIGIBILITY OF SURVIVING DEPENDENTS FOR TRICARE DENTAL 
              PROGRAM BENEFITS AFTER DISCONTINUANCE OF FORMER 
              ENROLLMENT.

    Section 1076a(k)(2) of title 10, United States Code, is amended by 
striking ``if the dependent is enrolled on the date of the death of the 
members in a dental benefits plan established under subsection (a)'' 
and inserting ``if, on the date of the death of the member, the 
dependent is enrolled in a dental benefits plan established under 
subsection (a) or is not enrolled in such a plan by reason of a 
discontinuance of a former enrollment under subsection (f)''.

SEC. 702. ADVANCE AUTHORIZATION FOR INPATIENT MENTAL HEALTH SERVICES.

    Section 1079(i)(3) of title 10, United States Code, is amended--
            (1) by inserting ``(A)'' after ``(3)'';
            (2) by striking ``Except in the case of an emergency,'' and 
        inserting ``Except as provided in subparagraphs (B) and (C),''; 
        and
            (3) by adding at the end the following new subparagraph:
    ``(B) Preadmission authorization for inpatient mental health 
services is not required under subparagraph (A) in the case of an 
emergency.
    ``(C) Preadmission authorization for inpatient mental health 
services is not required under subparagraph (A) in a case in which any 
benefits are payable for such services under part A of title XVIII of 
the Social Security Act (42 U.S.C. 1395c et seq.). The Secretary shall 
require, however, advance authorization for the continued provision of 
the inpatient mental health services after benefits cease to be payable 
for such services under part A of such title in such case.''.

SEC. 703. CONTINUED TRICARE ELIGIBILITY OF DEPENDENTS RESIDING AT 
              REMOTE LOCATIONS AFTER DEPARTURE OF SPONSORS FOR 
              UNACCOMPANIED ASSIGNMENTS.

    Section 1079(p) of title 10, United States Code, is amended--
            (1) in paragraph (1), by striking ``dependents referred to 
        in subsection (a) of a member of the uniformed services 
        referred to in section 1074(c)(3) of this title who are 
        residing with the member'' and inserting ``dependents described 
        in paragraph (3)'';
            (2) by redesignating paragraph (3) as paragraph (4); and
            (3) by inserting after paragraph (2), the following new 
        paragraph (3):
    ``(3) This subsection applies with respect to a dependent referred 
to in subsection (a) who--
            ``(A) is a dependent of a member of the uniformed services 
        referred to in section 1074(c)(3) of this title and is residing 
        with the member; or
            ``(B) is a dependent of a member who, after having served 
        in a duty assignment described in section 1074(c)(3) of this 
        title, has relocated without the dependent pursuant to orders 
        for a permanent change of duty station from a remote location 
        described in subparagraph (B)(ii) of such section where the 
        member and the dependent resided together while the member 
        served in such assignment, if the orders do not authorize 
        dependents to accompany the member to the new duty station at 
        the expense of the United States and the dependent continues to 
        reside at the same remote location.''.

SEC. 704. APPROVAL OF MEDICARE PROVIDERS AS TRICARE PROVIDERS.

    Section 1079 of title 10, United States Code, is amended by adding 
at the end the following new subsection:
    ``(q) A physician or other health care practitioner who is eligible 
to receive reimbursement for services provided under the Medicare 
Program under title XVIII of the Social Security Act (42 U.S.C. 1395 et 
seq.) shall be considered approved to provide medical care under this 
section and section 1086 of this title.''.

SEC. 705. CLAIMS INFORMATION.

    (a) Correspondence to Medicare Claims Information Requirements.--
Section 1095c of title 10, United States Code, is amended by adding at 
the end the following new subsection:
    ``(d) Correspondence to Medicare Claims Information Requirements.--
The Secretary of Defense, in consultation with the other administering 
Secretaries, shall limit the requirements for information in support of 
claims for payment for health care items and services provided under 
the TRICARE program so that the information required under the program 
is substantially the same as the information that would be required for 
claims for reimbursement for those items and services under title XVIII 
of the Social Security Act (42 U.S.C. 1395 et seq.).''.
    (b) Applicability.--The Secretary of Defense, in consultation with 
the other administering Secretaries referred to in section 1072(3) of 
title 10, United States Code, shall apply the limitations required 
under subsection (d) of section 1095c of such title (as added by 
subsection (a)) with respect to contracts entered into under the 
TRICARE program on or after October 1, 2002.

SEC. 706. DEPARTMENT OF DEFENSE MEDICARE-ELIGIBLE RETIREE HEALTH CARE 
              FUND.

    (a) Source of Funds for Monthly Accrual Payments Into the Fund.--
Section 1116(c) of title 10, United States Code, is amended by striking 
``health care programs'' and inserting ``pay of members''.
    (b) Mandatory Participation of Other Uniformed Services.--Section 
1111(c) of such title is amended--
            (1) in the first sentence, by striking ``may enter into an 
        agreement with any other administering Secretary'' and 
        inserting ``shall enter into an agreement with each other 
        administering Secretary''; and
            (2) in the second sentence, by striking ``Any such'' and 
        inserting ``The''.

SEC. 707. TECHNICAL CORRECTIONS RELATING TO TRANSITIONAL HEALTH CARE 
              FOR MEMBERS SEPARATED FROM ACTIVE DUTY.

    (a) Continued Applicability to Dependents.--Subsection (a)(1) of 
section 736 of the National Defense Authorization Act for Fiscal Year 
2002 (Public Law 107-107; 115 Stat. 1172) is amended to read as 
follows:
            ``(1) in paragraph (1), by striking `paragraph (2), a 
        member' and all that follows through `of the member),' and 
        inserting `paragraph (3), a member of the armed forces who is 
        separated from active duty as described in paragraph (2) (and 
        the dependents of the member)';''.
    (b) Clarification Regarding the Coast Guard.--Subsection (b)(2) of 
such section is amended to read as follows:
            ``(2) in subsection (e)--
                    ``(A) by striking the first sentence; and
                    ``(B) by striking `the Coast Guard' in the second 
                sentence and inserting `the members of the Coast Guard 
                and their dependents'.''.
    (c) Effective Date.--The amendments made by this section shall take 
effect as of December 28, 2001, and as if included in the National 
Defense Authorization Act for Fiscal Year 2002 as enacted.

SEC. 708. EXTENSION OF TEMPORARY AUTHORITY FOR ENTERING INTO PERSONAL 
              SERVICES CONTRACTS FOR THE PERFORMANCE OF HEALTH CARE 
              RESPONSIBILITIES FOR THE ARMED FORCES AT LOCATIONS OTHER 
              THAN MILITARY MEDICAL TREATMENT FACILITIES.

    Section 1091(a)(2) of title 10, United States Code, is amended by 
striking ``December 31, 2002'' and inserting ``December 31, 2003''.

SEC. 709. RESTORATION OF PREVIOUS POLICY REGARDING RESTRICTIONS ON USE 
              OF DEPARTMENT OF DEFENSE MEDICAL FACILITIES.

    Section 1093 of title 10, United States Code, is amended--
            (1) by striking subsection (b); and
            (2) in subsection (a), by striking ``Restriction on Use of 
        Funds.--''.

SEC. 710. HEALTH CARE UNDER TRICARE FOR TRICARE BENEFICIARIES RECEIVING 
              MEDICAL CARE AS VETERANS FROM THE DEPARTMENT OF VETERANS 
              AFFAIRS.

    Section 1097 of title 10, United States Code, is amended by adding 
at the end the following new subsection:
    ``(f) Persons Receiving Medical Care From the Department of 
Veterans Affairs.--A covered beneficiary who is enrolled in and seeks 
care under the TRICARE program may not be denied such care on the 
ground that the covered beneficiary is receiving health care from the 
Department of Veterans Affairs on an ongoing basis if the Department of 
Veterans Affairs cannot provide the covered beneficiary with the 
particular care sought by the covered beneficiary within the maximum 
period provided in the access to care standards that are applicable to 
that particular care under TRICARE program policy.''.

  TITLE VIII--ACQUISITION POLICY, ACQUISITION MANAGEMENT, AND RELATED 
                                MATTERS

             Subtitle A--Major Defense Acquisition Programs

SEC. 801. BUY-TO-BUDGET ACQUISITION OF END ITEMS.

    (a) Authority.--(1) Chapter 131 of title 10, United States Code, is 
amended by adding at the end the following new section:
``Sec. 2228. Buy-to-budget acquisition: end items
    ``(a) Authority To Acquire Additional End Items.--Using funds 
available to the Department of Defense for the acquisition of an end 
item, the head of agency making the acquisition may acquire a higher 
quantity of the end item than the quantity specified for the end item 
in a law providing for the funding of that acquisition if that head of 
an agency makes each of the following findings:
            ``(1) The agency has an established requirement for the end 
        item that is expected to remain substantially unchanged 
        throughout the period of the acquisition.
            ``(2) It is possible to acquire the higher quantity of the 
        end item without additional funding because of production 
        efficiencies or other cost reductions.
            ``(3) The amount of the funds used for the acquisition of 
        the higher quantity of the end item will not exceed the amount 
        provided under that law for the acquisition of the end item.
            ``(4) The amount so provided is sufficient to ensure that 
        each unit of the end item acquired within the higher quantity 
        is fully funded as a complete end item.
    ``(b) Regulations.--The Secretary of Defense shall prescribe 
regulations for the administration of this section. The regulations 
shall include, at a minimum, the following:
            ``(1) The level of approval within the Department of 
        Defense that is required for a decision to acquire a higher 
        quantity of an end item under subsection (a).
            ``(2) Authority to exceed by up to 10 percent the quantity 
        of an end item approved in a justification and approval of the 
        use of procedures other than competitive procedures for the 
        acquisition of the end item under section 2304 of this title, 
        but only to the extent necessary to acquire a quantity of the 
        end item permitted in the exercise of authority under 
        subsection (a).
    ``(c) Notification of Congress.--The head of an agency is not 
required to notify Congress in advance regarding a decision under the 
authority of this section to acquire a higher quantity of an end item 
than is specified in a law described in subsection (a), but shall 
notify the congressional defense committees of the decision not later 
than 30 days after the date of the decision.
    ``(d) Waiver by Other Law.--A provision of law may not be construed 
as prohibiting the acquisition of a higher quantity of an end item 
under this section unless that provision of law--
            ``(1) specifically refers to this section; and
            ``(2) specifically states that the acquisition of the 
        higher quantity of the end item is prohibited notwithstanding 
        the authority provided in this section.
    ``(e) Definitions.--(1) For the purposes of this section, a 
quantity of an end item shall be considered specified in a law if the 
quantity is specified either in a provision of that law or in any 
related representation that is set forth separately in a table, chart, 
or explanatory text included in a joint explanatory statement or 
governing committee report accompanying the law.
    ``(2) In this section:
                    ``(A) The term `congressional defense committees' 
                means--
                            ``(i) the Committee on Armed Services and 
                        the Committee on Appropriations of the Senate; 
                        and
                            ``(ii) the Committee on Armed Services and 
                        the Committee on Appropriations of the House of 
                        Representatives.
                    ``(B) The term `head of an agency' means the 
                Secretary of Defense, the Secretary of the Army, the 
                Secretary of the Navy, and the Secretary of the Air 
                Force.''.
    (2) The table of sections at the beginning of such chapter is 
amended by adding at the end the following new item:

``2228. Buy-to-budget acquisition: end items.''.
    (b) Time for Issuance of Final Regulations.--The Secretary of 
Defense shall issue the final regulations under section 2228(b) of 
title 10, United States Code (as added by subsection (a)), not later 
than 120 days after the date of the enactment of this Act.

SEC. 802. REPORT TO CONGRESS ON INCREMENTAL ACQUISITION OF MAJOR 
              SYSTEMS.

    (a) Report Required.--Not later than 120 days after the date of the 
enactment of this Act, the Secretary of Defense shall submit to the 
congressional defense committees a report on the approach that the 
Secretary plans to take to applying the requirements of chapter 144 of 
title 10, United States Code, sections 139, 181, 2366, 2399, and 2400 
of such title, Department of Defense Directive 5000.1, Department of 
Defense Instruction 5000.2, and Chairman of the Joint Chiefs of Staff 
Instruction 3170.01B, and other provisions of law and regulations 
applicable to incremental acquisition programs.
    (b) Content of Report.--The report shall, at a minimum, address the 
following matters:
            (1) The manner in which the Secretary plans to establish 
        and approve, for each increment of an incremental acquisition 
        program--
                    (A) operational requirements; and
                    (B) cost and schedule goals.
            (2) The manner in which the Secretary plans, for each 
        increment of an incremental acquisition program--
                    (A) to meet requirements for operational testing 
                and live fire testing;
                    (B) to monitor cost and schedule performance; and
                    (C) to comply with laws requiring reports to 
                Congress on results testing and on cost and schedule 
                performance.
            (3) The manner in which the Secretary plans to ensure that 
        each increment of an incremental acquisition program is 
        designed--
                    (A) to achieve interoperability within and among 
                United States forces and United States coalition 
                partners; and
                    (B) to optimize total system performance and 
                minimize total ownership costs by giving appropriate 
                consideration to--
                            (i) logistics planning;
                            (ii) manpower, personnel, and training;
                            (iii) human, environmental, safety, 
                        occupational health, accessibility, 
                        survivability, operational continuity, and 
                        security factors;
                            (iv) protection of critical program 
                        information; and
                            (v) spectrum management.
    (c) Definitions.--In this section:
            (1) The term ``incremental acquisition program'' means an 
        acquisition program that is to be conducted in discrete phases 
        or blocks, with each phase or block consisting of the planned 
        production and acquisition of one or more units of a major 
        system.
            (2) The term ``increment'' refers to one of the discrete 
        phases or blocks of an incremental acquisition program.
            (3) The term ``major system'' has the meaning given such 
        term in section 2302(5) of title 10, United States Code.

SEC. 803. PILOT PROGRAM FOR SPIRAL DEVELOPMENT OF MAJOR SYSTEMS.

    (a) Authority.--The Secretary of Defense is authorized to conduct a 
pilot program for the spiral development of major systems and to 
designate research and development programs of the military departments 
and Defense Agencies to participate in the pilot program.
    (b) Designation of Participating Programs.--(1) A research and 
development program for a major system of a military department or 
Defense Agency may be conducted as a spiral development program only if 
the Secretary of Defense approves a spiral development plan submitted 
by the Secretary of that military department or head of that Defense 
Agency, as the case may be, and designates the program as a participant 
in the pilot program under this section.
    (2) The Secretary of Defense shall submit a copy of each spiral 
development plan approved under this section to the congressional 
defense committees.
    (c) Spiral Development Plans.--A spiral development plan for a 
participating program shall, at a minimum, include the following 
matters:
            (1) A rationale for dividing the program into separate 
        spirals, together with a preliminary identification of the 
        spirals to be included.
            (2) A program strategy, including overall cost, schedule, 
        and performance goals for the total program.
            (3) Specific cost, schedule, and performance parameters, 
        including measurable exit criteria, for the first spiral to be 
        conducted.
            (4) A testing plan to ensure that performance goals, 
        parameters, and exit criteria are met.
            (5) An appropriate limitation on the number of prototype 
        units that may be produced under the program.
            (6) Specific performance parameters, including measurable 
        exit criteria, that must be met before the program proceeds 
        into production of units in excess of the limitation on the 
        number of prototype units.
    (d) Guidance.--Not later than 120 days after the date of the 
enactment of this Act, the Secretary of Defense shall issue guidance 
for the implementation of the spiral development pilot program 
authorized by this section. The guidance shall, at a minimum, include 
the following matters:
            (1) A process for the development, review, and approval of 
        each spiral development plan submitted by the Secretary of a 
        military department or head of a Defense Agency.
            (2) A process for establishing and approving specific cost, 
        schedule, and performance parameters, including measurable exit 
        criteria, for spirals to be conducted after the first spiral.
            (3) Appropriate planning, testing, reporting, oversight, 
        and other requirements to ensure that the spiral development 
        program--
                    (A) satisfies realistic and clearly-defined 
                performance standards, cost objectives, and schedule 
                parameters (including measurable exit criteria for each 
                spiral);
                    (B) achieve interoperability within and among 
                United States forces and United States coalition 
                partners; and
                    (C) optimize total system performance and minimize 
                total ownership costs by giving appropriate 
                consideration to--
                            (i) logistics planning;
                            (ii) manpower, personnel, and training;
                            (iii) human, environmental, safety, 
                        occupational health, accessibility, 
                        survivability, operational continuity, and 
                        security factors;
                            (iv) protection of critical program 
                        information; and
                            (v) spectrum management.
            (4) A process for independent validation of the 
        satisfaction of exit criteria and other relevant requirements.
            (5) A process for operational testing of fieldable 
        prototypes to be conducted before or in conjunction with the 
        fielding of the prototypes.
    (e) Reporting Requirement.--The Secretary shall submit to Congress 
at the end of each quarter of a fiscal year a status report on each 
research and development program that is a participant in the pilot 
program. The report shall contain information on unit costs that is 
similar to the information on unit costs under major defense 
acquisition programs that is required to be provided to Congress under 
chapter 144 of title 10, United States Code, except that the 
information on unit costs shall address projected prototype costs 
instead of production costs.
    (f) Applicability of Existing Law.--Nothing in this section shall 
be construed to exempt any program of the Department of Defense from 
the application of any provision of chapter 144 of title 10, United 
States Code, section 139, 181, 2366, 2399, or 2400 of such title, or 
any requirement under Department of Defense Directive 5000.1, 
Department of Defense Instruction 5000.2, or Chairman of the Joint 
Chiefs of Staff Instruction 3170.01B in accordance with the terms of 
such provision or requirement.
    (g) Termination of Program Participation.--The conduct of a 
participating program as a spiral development program under the pilot 
program shall terminate when the decision is made for the participating 
program to proceed into the production of units in excess of the number 
of prototype units permitted under the limitation provided in spiral 
development plan for the program pursuant to subsection (c)(5).
    (h) Termination of Pilot Program.--(1) The authority to conduct a 
pilot program under this section shall terminate three years after the 
date of the enactment of this Act.
    (2) The termination of the pilot program shall not terminate the 
authority of the Secretary of a military department or head of a 
Defense Agency to continue to conduct, as a spiral development program, 
any research and development program that was designated to participate 
in the pilot program before the date on which the pilot program 
terminates. In the continued conduct of such a research and development 
program as a spiral development program on and after such date, the 
spiral development plan approved for the program, the guidance issued 
under subsection (d), and subsections (e), (f), and (g) shall continue 
to apply.
    (i) Definitions.--In this section:
            (1) The term ``spiral development program'' means a 
        research and development program that--
                    (A) is conducted in discrete phases or blocks, each 
                of which will result in the development of fieldable 
                prototypes; and
                    (B) will not proceed into acquisition until 
                specific performance parameters, including measurable 
                exit criteria, have been met.
            (2) The term ``spiral'' means one of the discrete phases or 
        blocks of a spiral development program.
            (3) The term ``major system'' has the meaning given such 
        term in section 2302(5) of title 10, United States Code.
            (4) The term ``participating program'' means a research and 
        development program that is designated to participate in the 
        pilot program under subsection (b).

SEC. 804. IMPROVEMENT OF SOFTWARE ACQUISITION PROCESSES.

    (a) Establishment of Programs.--(1) The Secretary of each military 
department shall establish a program to improve the software 
acquisition processes of that military department.
    (2) The head of each Defense Agency that manages a major defense 
acquisition program with a substantial software component shall 
establish a program to improve the software acquisition processes of 
that Defense Agency.
    (3) The programs required by this subsection shall be established 
not later than 120 days after the date of the enactment of this Act.
    (b) Program Requirements.--A program to improve software 
acquisition processes under this section shall, at a minimum, include 
the following:
            (1) A documented process for software acquisition planning, 
        requirements development and management, project management and 
        oversight, and risk management.
            (2) Efforts to develop systems for performance measurement 
        and continual process improvement.
            (3) A system for ensuring that each program office with 
        substantial software responsibilities implements and adheres to 
        established processes and requirements.
    (c) Department of Defense Guidance.--The Assistant Secretary of 
Defense for Command, Control, Communications, and Intelligence, in 
consultation with the Under Secretary of Defense for Acquisition, 
Technology, and Logistics, shall--
            (1) prescribe uniformly applicable guidance for the 
        administration of all of the programs established under 
        subsection (a) and take such actions as are necessary to ensure 
        that the military departments and Defense Agencies comply with 
        the guidance; and
            (2) assist the Secretaries of the military departments and 
        the heads of the Defense Agencies to carry out such programs 
        effectively by identifying, and serving as a clearinghouse for 
        information regarding, best practices in software acquisition 
        processes in both the public and private sectors.
    (d) Definitions.--In this section:
            (1) The term ``Defense Agency'' has the meaning given the 
        term in section 101(a)(11) of title 10, United States Code.
            (2) The term ``major defense acquisition program'' has the 
        meaning given the term in section 2430 of title 10, United 
        States Code.

SEC. 805. INDEPENDENT TECHNOLOGY READINESS ASSESSMENTS.

    Section 804(b) of the National Defense Authorization Act for Fiscal 
Year 2002 (Public Law 107-107; 115 Stat. 1180) is amended--
            (1) by striking ``and'' at the end of paragraph (1);
            (2) by striking the period at the end of paragraph (2) and 
        inserting ``; and''; and
            (3) by adding at the end the following new paragraph:
            ``(3) identify each case in which an authoritative decision 
        has been made within the Department of Defense not to conduct 
        an independent technology readiness assessment for a critical 
        technology on a major defense acquisition program and explain 
        the reasons for the decision.''.

SEC. 806. TIMING OF CERTIFICATION IN CONNECTION WITH WAIVER OF 
              SURVIVABILITY AND LETHALITY TESTING REQUIREMENTS.

    (a) Certification for Expedited Programs.--Paragraph (1) of 
subsection (c) of section 2366 of title 10, United States Code, is 
amended to read as follows:
    ``(1) The Secretary of Defense may waive the application of the 
survivability and lethality tests of this section to a covered system, 
munitions program, missile program, or covered product improvement 
program if the Secretary determines that live-fire testing of such 
system or program would be unreasonably expensive and impractical and 
submits a certification of that determination to Congress--
            ``(A) before Milestone B approval for the system or 
        program; or
            ``(B) in the case of a system or program initiated at--
                    ``(i) Milestone B, as soon as is practicable after 
                the Milestone B approval; or
                    ``(ii) Milestone C, as soon as is practicable after 
                the Milestone C approval.''.
    (b) Definitions.--Subsection (e) of such section is amended by 
adding at the end the following new paragraphs:
            ``(8) The term `Milestone B approval' means a decision to 
        enter into system development and demonstration pursuant to 
        guidance prescribed by the Secretary of Defense for the 
        management of Department of Defense acquisition programs.
            ``(9) The term `Milestone C approval' means a decision to 
        enter into production and deployment pursuant to guidance 
        prescribed by the Secretary of Defense for the management of 
        Department of Defense acquisition programs.''.

              Subtitle B--Procurement Policy Improvements

SEC. 811. PERFORMANCE GOALS FOR CONTRACTING FOR SERVICES.

    (a) Individual Purchases of Services.--Subsection (a) of section 
802 of the National Defense Authorization Act for Fiscal Year 2002 
(Public Law 107-107; 10 U.S.C. 2330 note) is amended by adding at the 
end the following new paragraphs:
    ``(3) To support the attainment of the goals established in 
paragraph (2), the Department of Defense shall have the following 
goals:
            ``(A) To increase, as a percentage of all of the individual 
        purchases of services made by or for the Department of Defense 
        under multiple award contracts for a fiscal year (calculated on 
        the basis of dollar value), the volume of the individual 
        purchases of services that are made on a competitive basis and 
        involve the receipt of two or more offers from qualified 
        contractors to a percentage as follows:
                    ``(i) For fiscal year 2003, a percentage not less 
                than 50 percent.
                    ``(ii) For fiscal year 2004, a percentage not less 
                than 60 percent.
                    ``(iii) For fiscal year 2011, a percentage not less 
                than 80 percent.
            ``(B) To increase, as a percentage of all of the individual 
        purchases of services made by or for the Department of Defense 
        under multiple award contracts for a fiscal year (calculated on 
        the basis of dollar value), the use of performance-based 
        purchasing specifying firm fixed prices for the specific tasks 
        to be performed to a percentage as follows:
                    ``(i) For fiscal year 2003, a percentage not less 
                than 30 percent.
                    ``(ii) For fiscal year 2004, a percentage not less 
                than 40 percent.
                    ``(iii) For fiscal year 2005, a percentage not less 
                than 50 percent.
                    ``(iv) For fiscal year 2011, a percentage not less 
                than 80 percent.''.
    (b) Extension and Revision of Reporting Requirement.--Subsection 
(b) of such section is amended--
            (1) by striking ``March 1, 2006'', and inserting ``March 1, 
        2011''; and
            (2) by adding at the end the following new paragraphs:
            ``(6) Regarding the individual purchases of services that 
        were made by or for the Department of Defense under multiple 
        award contracts in the fiscal year preceding the fiscal year in 
        which the report is required to be submitted, information 
        (determined using the data collection system established under 
        section 2330a of title 10, United States Code) as follows:
                    ``(A) The percentage (calculated on the basis of 
                dollar value) of such purchases that are purchases that 
                were made on a competitive basis and involved receipt 
                of two or more offers from qualified contractors.
                    ``(B) The percentage (calculated on the basis of 
                dollar value) of such purchases that are performance-
                based purchases specifying firm fixed prices for the 
                specific tasks to be performed.''.
    (c) Definitions.--Such section is further amended by adding at the 
end the following new subsection:
    ``(c) Definitions.--In this section:
            ``(1) The term `individual purchase' means a task order, 
        delivery order, or other purchase.
            ``(2) The term `multiple award contract' means--
                    ``(A) a contract that is entered into by the 
                Administrator of General Services under the multiple 
                award schedule program referred to in section 
                2302(2)(C) of title 10, United States Code;
                    ``(B) a multiple award task order contract that is 
                entered into under the authority of sections 2304a 
                through 2304d of title 10, United States Code, or 
                sections 303H through 303K of the Federal Property and 
                Administrative Services Act of 1949 (41 U.S.C. 253h 
                through 253k); and
                    ``(C) any other indefinite delivery, indefinite 
                quantity contract that is entered into by the head of a 
                Federal agency with two or more sources pursuant to the 
                same solicitation.''.

SEC. 812. GRANTS OF EXCEPTIONS TO COST OR PRICING DATA CERTIFICATION 
              REQUIREMENTS AND WAIVERS OF COST ACCOUNTING STANDARDS.

    (a) Guidance for Exceptions in Exceptional Circumstances.--(1) Not 
later than 60 days after the date of the enactment of this Act, the 
Secretary of Defense shall issue guidance on the circumstances under 
which it is appropriate to grant--
            (A) an exception pursuant to section 2306a(b)(1)(C) of 
        title 10, United States Code, relating to submittal of 
        certified contract cost and pricing data; or
            (B) a waiver pursuant to section 26(f)(5)(B) of the Office 
        of Federal Procurement Policy Act (41 U.S.C. 422(f)(5)(B)), 
        relating to the applicability of cost accounting standards to 
        contracts and subcontracts.
    (2) The guidance shall, at a minimum, include a limitation that a 
grant of an exception or waiver referred to in paragraph (1) is 
appropriate with respect to a contract or subcontract, or (in the case 
of submittal of certified cost and pricing data) a modification, only 
upon a determination that the property or services cannot be obtained 
under the contract, subcontract, or modification, as the case may be, 
without the grant of the exception or waiver.
    (b) Semiannual Report.--(1) The Secretary of Defense shall transmit 
to the congressional defense committees promptly after the end of each 
half of a fiscal year a report on the exceptions to cost or pricing 
data certification requirements and the waivers of applicability of 
cost accounting standards that, in cases described in paragraph (2), 
were granted during that half of the fiscal year.
    (2) The report for a half of a fiscal year shall include an 
explanation of--
            (A) each decision by the head of a procuring activity 
        within the Department of Defense to exercise the authority 
        under subparagraph (B) or (C) of subsection (b)(1) of section 
        2306a of title 10, United States Code, to grant an exception to 
        the requirements of such section in the case of a contract, 
        subcontract, or contract or subcontract modification that is 
        expected to have a price of $15,000,000 or more; and
            (B) each decision by the Secretary of Defense or the head 
        of an agency within the Department of Defense to exercise the 
        authority under subsection (f)(5)(B) of section 26 of the 
        Office of Federal Procurement Policy Act to waive the 
        applicability of the cost accounting standards under such 
        section in the case of a contract or subcontract that is 
        expected to have a value of $15,000,000 or more.
    (c) Advance Notification of Congress.--(1) The Secretary of Defense 
shall transmit to the congressional defense committees an advance 
notification of--
            (A) any decision by the head of a procuring activity within 
        the Department of Defense to exercise the authority under 
        subsection (b)(1)(C) of section 2306a of title 10, United 
        States Code, to grant an exception to the requirements of such 
        section in the case of a contract, subcontract, or contract or 
        subcontract modification that is expected to have a price of 
        $75,000,000 or more; or
            (B) any decision by the Secretary of Defense or the head of 
        an agency within the Department of Defense to exercise the 
        authority under subsection (f)(5)(B) of section 26 of the 
        Office of Federal Procurement Policy Act to waive the 
        applicability of the cost accounting standards under such 
        section to a contract or subcontract that is expected to have a 
        value of $75,000,000 or more.
    (2) The notification under paragraph (1) regarding a decision to 
grant an exception or waiver shall be transmitted not later than 10 
days before the exception or waiver is granted.
    (d) Contents of Reports and Notifications.--A report pursuant to 
subsection (b) and a notification pursuant to subsection (c) shall 
include, for each grant of an exception or waiver, the following 
matters:
            (1) A discussion of the justification for the grant of the 
        exception or waiver, including at a minimum--
                    (A) in the case of an exception granted pursuant to 
                section 2306a(b)(1)(B) of title 10, United States Code, 
                an explanation of the basis for the determination that 
                the products or services to be purchased are commercial 
                items; and
                    (B) in the case of an exception granted pursuant to 
                section 2306a(b)(1)(C) of such title, or a waiver 
                granted pursuant to section 26(f)(5)(B) of the Office 
                of Federal Procurement Policy Act, an explanation of 
                the basis for the determination that it would not have 
                been possible to obtain the products or services from 
                the offeror without the grant of the exception or 
                waiver.
            (2) A description of the specific steps taken or to be 
        taken within the Department of Defense to ensure that the price 
        of each contract, subcontract, or modification covered by the 
        report or notification, as the case may be, is fair and 
        reasonable.
    (e) Effective Date.--The requirements of this section shall apply 
to each exception or waiver that is granted under a provision of law 
referred to in subsection (a) on or after the date on which the 
guidance required by that subsection (a) is issued.

SEC. 813. EXTENSION OF REQUIREMENT FOR ANNUAL REPORT ON DEFENSE 
              COMMERCIAL PRICING MANAGEMENT IMPROVEMENT.

    Section 803(c)(4) of the Strom Thurmond National Defense 
Authorization Act for Fiscal Year 1999 (Public Law 105-261; 112 Stat. 
2082; 10 U.S.C. 2306a note) is amended by striking ``2000, 2001, and 
2002,'' and inserting ``2000 through 2006,''.

SEC. 814. INTERNAL CONTROLS ON THE USE OF PURCHASE CARDS.

    (a) Requirement for Enhanced Internal Controls.--Not later than 120 
days after the date of the enactment of this Act, the Secretary of 
Defense shall take action to ensure that appropriate internal controls 
for the use of purchase cards issued by the Federal Government to 
Department of Defense personnel are in place throughout the Department 
of Defense. At a minimum, the internal controls shall include the 
following:
            (1) A requirement that the receipt and acceptance, and the 
        documentation of the receipt and acceptance, of the property or 
        services purchased on a purchase card be verified by a 
        Department of Defense official who is independent of the 
        purchaser.
            (2) A requirement that the monthly purchase card statements 
        of purchases on a purchase card be reviewed and certified for 
        accuracy by an official of the Department of Defense who is 
        independent of the purchaser.
            (3) Specific policies limiting the number of purchase cards 
        issued, with the objective of significantly reducing the number 
        of cardholders.
            (4) Specific policies on credit limits authorized for 
        cardholders, with the objective of minimizing financial risk to 
        the Federal Government.
            (5) Specific criteria for identifying employees eligible to 
        be issued purchase cards, with the objective of ensuring the 
        integrity of cardholders.
            (6) Accounting procedures that ensure that purchase card 
        transactions are properly recorded in Department of Defense 
        accounting records.
            (7) Requirements for regular internal review of purchase 
        card statements to identify--
                    (A) potentially fraudulent, improper, and abusive 
                purchases;
                    (B) any patterns of improper cardholder 
                transactions, such as purchases of prohibited items; 
                and
                    (C) categories of purchases that should be made 
                through other mechanisms to better aggregate purchases 
                and negotiate lower prices.
    (b) Training.--The Secretary of Defense shall ensure that all 
Department of Defense purchase cardholders are aware of the enhanced 
internal controls instituted pursuant to subsection (a).
    (c) Comptroller General Review.--Not later than March 1, 2003, the 
Comptroller General shall--
            (1) review the actions that have been taken within the 
        Department of Defense to comply with the requirements of this 
        section; and
            (2) submit a report on the actions reviewed to the 
        congressional defense committees.

SEC. 815. ASSESSMENT REGARDING FEES PAID FOR ACQUISITIONS UNDER OTHER 
              AGENCIES' CONTRACTS.

    (a) Requirement for Assessment and Report.--Not later than March 1, 
2003, the Secretary of Defense shall carry out an assessment to 
determine the total amount paid by the Department of Defense as fees 
for the acquisition of property and services by the Department of 
Defense under contracts between other departments and agencies of the 
Federal Government and the sources of the property and services in each 
of fiscal years 2000, 2001, and 2002, and submit a report on the 
results of the assessment to Congress.
    (b) Content of Report.--The report shall include the Secretary's 
views on what, if any, actions should be taken within the Department of 
Defense to reduce the total amount of the annual expenditures on fees 
described in subsection (a) and to use the amounts saved for other 
authorized purposes.

SEC. 816. PILOT PROGRAM FOR TRANSITION TO FOLLOW-ON CONTRACTS FOR 
              CERTAIN PROTOTYPE PROJECTS.

    Section 845 of the National Defense Authorization Act for Fiscal 
Year 1994 (10 U.S.C. 2371 note) is amended by--
            (1) redesignating subsections (e), (f), and (g) as 
        subsections (f), (g), and (h), respectively; and
            (2) inserting after subsection (d) the following new 
        subsection (e):
    ``(e) Pilot Program for Transition to Follow-on Contracts.--(1) The 
Secretary of Defense is authorized to carry out a pilot program for 
follow-on contracting for the production of items or processes that are 
developed by nontraditional defense contractors under prototype 
projects carried out under this section.
    ``(2) Under the pilot program--
            ``(A) a qualifying contract for the procurement of such an 
        item or process, or a qualifying subcontract under a contract 
        for the procurement of such an item or process, may be treated 
        as a contract or subcontract, respectively, for the procurement 
        of commercial items, as defined in section 4(12) of the Office 
        of Federal Procurement Policy Act (41 U.S.C. 403(12)); and
            ``(B) the item or process may be treated as an item or 
        process, respectively, that is developed in part with Federal 
        funds and in part at private expense for the purposes of 
        section 2320 of title 10, United States Code.
    ``(3) For the purposes of the pilot program, a qualifying contract 
or subcontract is a contract or subcontract, respectively, with a 
nontraditional defense contractor that--
            ``(A) does not exceed $20,000,000; and
            ``(B) is either--
                    ``(i) a firm, fixed-price contract or subcontract; 
                or
                    ``(ii) a fixed-price contract or subcontract with 
                economic price adjustment.
    ``(4) The authority to conduct a pilot program under this 
subsection shall terminate on September 30, 2005. The termination of 
the authority shall not affect the validity of contracts or 
subcontracts that are awarded or modified during the period of the 
pilot program, without regard to whether the contracts or subcontracts 
are performed during the period.''.

SEC. 817. WAIVER AUTHORITY FOR DOMESTIC SOURCE OR CONTENT REQUIREMENTS.

    (a) Authority.--Subchapter V of chapter 148 of title 10, United 
States Code, is amended by adding at the end the following new section:
``Sec. 2539c. Waiver of domestic source or content requirements
    ``(a) Authority.--Except as provided in subsection (f), the 
Secretary of Defense may waive the application of any domestic source 
requirement or domestic content requirement referred to in subsection 
(b) and thereby authorize the procurement of items that are grown, 
reprocessed, reused, produced, or manufactured--
            ``(1) in a foreign country that has a reciprocal defense 
        procurement memorandum of understanding or agreement with the 
        United States;
            ``(2) in a foreign country that has a reciprocal defense 
        procurement memorandum of understanding or agreement with the 
        United States substantially from components and materials 
        grown, reprocessed, reused, produced, or manufactured in the 
        United States or any foreign country that has a reciprocal 
        defense procurement memorandum of understanding or agreement 
        with the United States; or
            ``(3) in the United States substantially from components 
        and materials grown, reprocessed, reused, produced, or 
        manufactured in the United States or any foreign country that 
        has a reciprocal defense procurement memorandum of 
        understanding or agreement with the United States.
    ``(b) Covered Requirements.--For purposes of this section:
            ``(1) A domestic source requirement is any requirement 
        under law that the Department of Defense satisfy its 
        requirements for an item by procuring an item that is grown, 
        reprocessed, reused, produced, or manufactured in the United 
        States or by a manufacturer that is a part of the national 
        technology and industrial base (as defined in section 2500(1) 
        of this title).
            ``(2) A domestic content requirement is any requirement 
        under law that the Department of Defense satisfy its 
        requirements for an item by procuring an item produced or 
        manufactured partly or wholly from components and materials 
        grown, reprocessed, reused, produced, or manufactured in the 
        United States.
    ``(c) Applicability.--The authority of the Secretary to waive the 
application of a domestic source or content requirements under 
subsection (a) applies to the procurement of items for which the 
Secretary of Defense determines that--
            ``(1) application of the requirement would impede the 
        reciprocal procurement of defense items under a memorandum of 
        understanding providing for reciprocal procurement of defense 
        items between a foreign country and the United States in 
        accordance with section 2531 of this title; and
            ``(2) such country does not discriminate against defense 
        items produced in the United States to a greater degree than 
        the United States discriminates against defense items produced 
        in that country.
    ``(d) Limitation on Delegation.--The authority of the Secretary to 
waive the application of domestic source or content requirements under 
subsection (a) may not be delegated to any officer or employee other 
than the Under Secretary of Defense for Acquisition, Technology and 
Logistics.
    ``(e) Consultations.--The Secretary may grant a waiver of the 
application of a domestic source or content requirement under 
subsection (a) only after consultation with the United States Trade 
Representative, the Secretary of Commerce, and the Secretary of State.
    ``(f) Laws Not Waivable.--The Secretary of Defense may not exercise 
the authority under subsection (a) to waive any domestic source or 
content requirement contained in any of the following laws:
            ``(1) The Small Business Act (15 U.S.C. 631 et seq.).
            ``(2) The Javits-Wagner-O'Day Act (41 U.S.C. et seq.).
            ``(3) Sections 7309 and 7310 of this title.
            ``(4) Section 2533a of this title.
    ``(g) Relationship to Other Waiver Authority.--The authority under 
subsection (a) to waive a domestic source requirement or domestic 
content requirement is in addition to any other authority to waive such 
requirement.
    ``(h) Construction With Respect to Later Enacted Laws.--This 
section may not be construed as being inapplicable to a domestic source 
requirement or domestic content requirement that is set forth in a law 
enacted after the enactment of this section solely on the basis of the 
later enactment.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such subchapter is amended by inserting after the item relating to 
section 2539b the following new item:

``2539c. Waiver of domestic source or content requirements.''.

                       Subtitle C--Other Matters

SEC. 821. EXTENSION OF THE APPLICABILITY OF CERTAIN PERSONNEL 
              DEMONSTRATION PROJECT EXCEPTIONS TO AN ACQUISITION 
              WORKFORCE DEMONSTRATION PROJECT.

    Section 4308(b)(3)(B) of the National Defense Authorization Act for 
Fiscal Year 1996 (Public Law 104-106; 10 U.S.C. 1701 note) is amended 
to read as follows:
                    ``(B) commences before November 18, 2007.''.

SEC. 822. MORATORIUM ON REDUCTION OF THE DEFENSE ACQUISITION AND 
              SUPPORT WORKFORCE.

    (a) Prohibition.--Notwithstanding any other provision of law, the 
defense acquisition and support workforce may not be reduced, during 
fiscal years 2003, 2004, and 2005, below the level of that workforce as 
of September 30, 2002, determined on the basis of full-time equivalent 
positions.
    (b) Waiver Authority.--The Secretary of Defense may waive the 
prohibition in subsection (a) and reduce the level of the defense 
acquisition and support workforce upon submitting to Congress the 
Secretary's certification that the defense acquisition and support 
workforce, at the level to which reduced, will be able efficiently and 
effectively to perform the workloads that are required of that 
workforce consistent with the cost-effective management of the defense 
acquisition system to obtain best value equipment and with ensuring 
military readiness.
    (c) Defense Acquisition and Support Workforce Defined.--In this 
section, the term ``defense acquisition and support workforce'' means 
Armed Forces and civilian personnel who are assigned to, or are 
employed in, an organization of the Department of Defense that is--
            (1) an acquisition organization specified in Department of 
        Defense Instruction 5000.58, dated January 14, 1992; or
            (2) an organization not so specified that has acquisition 
        as its predominant mission, as determined by the Secretary of 
        Defense.

SEC. 823. EXTENSION OF CONTRACT GOAL FOR SMALL DISADVANTAGED BUSINESSES 
              AND CERTAIN INSTITUTIONS OF HIGHER EDUCATION.

    Section 2323(k) of title 10, United States Code, is amended by 
striking ``2003'' both places it appears and inserting ``2006''.

SEC. 824. MENTOR-PROTEGE PROGRAM ELIGIBILITY FOR HUBZONE SMALL BUSINESS 
              CONCERNS AND SMALL BUSINESS CONCERNS OWNED AND CONTROLLED 
              BY SERVICE-DISABLED VETERANS.

    Section 831(m)(2) of the National Defense Authorization Act for 
Fiscal Year 1991 (10 U.S.C. 2302 note), is amended--
            (1) by striking ``or'' at the end of subparagraph (D);
            (2) by striking the period at the end of subparagraph (E) 
        and inserting a semicolon; and
            (3) by adding at the end the following new subparagraphs:
                    ``(F) a qualified HUBZone small business concern, 
                within the meaning of section 3(p)(5) of the Small 
                Business Act (15 U.S.C. 632(p)(5)); or
                    ``(G) a small business concern owned and controlled 
                by service-disabled veterans, as defined in section 
                3(q)(2) of the Small Business Act (15 U.S.C. 
                632(q)(2)).''.

SEC. 825. REPEAL OF REQUIREMENTS FOR CERTAIN REVIEWS BY THE COMPTROLLER 
              GENERAL.

    The following provisions of the National Defense Authorization Act 
for Fiscal Year 1996 (Public Law 104-106) are repealed:
            (1) Section 912(d) (110 Stat. 410; 10 U.S.C. 2216 note), 
        relating to Comptroller General reviews of the administration 
        of the Defense Modernization Account.
            (2) Section 5312(e) (110 Stat. 695; 40 U.S.C. 1492), 
        relating to Comptroller General monitoring of a pilot program 
        for solutions-based contracting for acquisition of information 
        technology.
            (3) Section 5401(c)(3) (110 Stat. 697; 40 U.S.C. 1501), 
        relating to a Comptroller General review and report regarding a 
        pilot program to test streamlined procedures for the 
        procurement of information technology products and services 
        available for ordering through multiple award schedules.

SEC. 826. MULTIYEAR PROCUREMENT AUTHORITY FOR PURCHASE OF DINITROGEN 
              TETROXIDE, HYDRAZINE, AND HYDRAZINE-RELATED PRODUCTS.

    (a) In General.--Chapter 141 of title 10, United States Code, is 
amended by inserting after section 2410n the following new section:
``Sec. 2410o. Multiyear procurement authority: purchase of dinitrogen 
              tetroxide, hydrazine, and hydrazine-related products
    ``(a) Ten-Year Contract Period.--The Secretary of Defense may enter 
into a contract for a period of up to 10 years for the purchase of 
dinitrogen tetroxide, hydrazine, and hydrazine-related products for the 
support of a United States national security program or a United States 
space program.
    ``(b) Extensions.--A contract entered into for more than one year 
under the authority of subsection (a) may be extended for a total of 
not more than 10 years pursuant to any option or options set forth in 
the contract.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
chapter 141 is amended by adding at the end the following item:

``2410o. Multiyear procurement authority: purchase of dinitrogen 
                            tetroxide, hydrazine, and hydrazine-related 
                            products.''.

SEC. 827. MULTIYEAR PROCUREMENT AUTHORITY FOR ENVIRONMENTAL SERVICES 
              FOR MILITARY INSTALLATIONS.

    (a) Authority.--Subsection (b) of section 2306c of title 10, United 
States Code, is amended by adding at the end the following new 
paragraph:
            ``(5) Environmental remediation services for--
                    ``(A) an active military installation;
                    ``(B) a military installation being closed or 
                realigned under a base closure law; or
                    ``(C) a site formerly used by the Department of 
                Defense.''.
    (b) Definitions.--Such section is further amended by adding at the 
end the following new subsection:
    ``(g) Additional Definitions.--In this section:
            ``(1) The term `base closure law' has the meaning given 
        such term in section 2667(h)(2) of this title.
            ``(2) The term `military installation' has the meaning 
        given such term in section 2801(c)(2) of this title.''.

SEC. 828. INCREASED MAXIMUM AMOUNT OF ASSISTANCE FOR TRIBAL 
              ORGANIZATIONS OR ECONOMIC ENTERPRISES CARRYING OUT 
              PROCUREMENT TECHNICAL ASSISTANCE PROGRAMS IN TWO OR MORE 
              SERVICE AREAS.

    Section 2414(a)(4) of title 10, United States Code, is amended by 
striking ``$300,000'' and inserting ``$600,000''.

SEC. 829. AUTHORITY FOR NONPROFIT ORGANIZATIONS TO SELF-CERTIFY 
              ELIGIBILITY FOR TREATMENT AS QUALIFIED ORGANIZATIONS 
              EMPLOYING SEVERELY DISABLED UNDER MENTOR-PROTEGE PROGRAM.

    Section 831 of the National Defense Authorization Act for Fiscal 
Year 1991 (10 U.S.C. 2302 note) is amended by adding at the end the 
following new subsection:
    ``(n) Self-Certification of Nonprofit Organizations as Qualified 
Organizations Employing the Severely Disabled.--(1) The Secretary of 
Defense may, in accordance with such requirements as the Secretary may 
establish, permit a business entity operating on a non-profit basis to 
self-certify its eligibility for treatment as a qualified organization 
employing the severely disabled under subsection (m)(2)(D).
    ``(2) The Secretary shall treat any entity described in paragraph 
(1) that submits a self-certification under that paragraph as a 
qualified organization employing the severely disabled until the 
Secretary receives evidence, if any, that such entity is not described 
by paragraph (1) or does not merit treatment as a qualified 
organization employing the severely disabled in accordance with 
applicable provisions of subsection (m).
    ``(3) Paragraphs (1) and (2) shall cease to be effective on the 
effective date of regulations prescribed by the Small Business 
Administration under this section setting forth a process for the 
certification of business entities as eligible for treatment as a 
qualified organization employing the severely disabled under subsection 
(m)(2)(D).''.

SEC. 830. REPORT ON EFFECTS OF ARMY CONTRACTING AGENCY.

    (a) In general.--The Secretary of the Army shall submit a report on 
the effects of the establishment of an Army Contracting Agency on small 
business participation in Army procurements during the first year of 
operation of such an agency to--
            (1) the Committee on Armed Services of the House of 
        Representatives;
            (2) the Committee on Armed Services of the Senate;
            (3) the Committee on Small Business of the House of 
        Representatives; and
            (4) the Committee on Small Business and Entrepreneurship of 
        the Senate.
    (b) Content.--The report required under subsection (a) shall 
include, in detail--
            (1) the justification for the establishment of an Army 
        Contracting Agency;
            (2) the impact of the creation of an Army Contracting 
        Agency on--
                    (A) Army compliance with--
                            (i) Department of Defense Directive 4205.1;
                            (ii) section 15(g) of the Small Business 
                        Act (15 U.S.C. 644(g)); and
                            (iii) section 15(k) of the Small Business 
                        Act (15 U.S.C. 644(k));
                    (B) small business participation in Army 
                procurement of products and services for affected Army 
                installations, including--
                            (i) the impact on small businesses located 
                        near Army installations, including--
                                    (I) the increase or decrease in the 
                                total value of Army prime contracting 
                                with local small businesses; and
                                    (II) the opportunities for small 
                                business owners to meet and interact 
                                with Army procurement personnel; and
                            (ii) any change or projected change in the 
                        use of consolidated contracts and bundled 
                        contracts; and
            (3) a description of the Army's plan to address any 
        negative impact on small business participation in Army 
        procurement, to the extent such impact is identified in the 
        report.
    (c) Time for Submission.--The report under this section shall be 
due 15 months after the date of the establishment of the Army 
Contracting Agency.

      TITLE IX--DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT

SEC. 901. TIME FOR SUBMITTAL OF REPORT ON QUADRENNIAL DEFENSE REVIEW.

    Section 118(d) of title 10, United States Code, is amended by 
striking ``not later than September 30 of the year in which the review 
is conducted'' in the second sentence and inserting ``in the year 
following the year in which the review is conducted, but not later than 
the date on which the President submits the budget for the next fiscal 
year to Congress under section 1105(a) of title 31''.

SEC. 902. INCREASED NUMBER OF DEPUTY COMMANDANTS AUTHORIZED FOR THE 
              MARINE CORPS.

    Section 5045 of title 10, United States Code, is amended by 
striking ``five'' and inserting ``six''.

SEC. 903. BASE OPERATING SUPPORT FOR FISHER HOUSES.

    (a) Expansion of Requirement To Include Army and Air Force.--
Section 2493(f) of title 10, United States Code, is amended to read as 
follows:
    ``(f) Base Operating Support.--The Secretary of the military 
department concerned shall provide base operating support for Fisher 
Houses associated with health care facilities of that military 
department.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
take effect on October 1, 2002.

SEC. 904. PREVENTION AND MITIGATION OF CORROSION.

    (a) Establishment.--Not later than 120 days after the date of the 
enactment of this Act, the Secretary of Defense shall designate an 
officer or employee of the Department of Defense as the senior official 
responsible (after the Secretary of Defense and the Under Secretary of 
Defense for Acquisition, Technology, and Logistics) for the prevention 
and mitigation of corrosion of the military equipment and 
infrastructure of the Department. The designated official shall report 
directly to the Under Secretary of Defense for Acquisition, Technology, 
and Logistics.
    (b) Duties.--The official designated under subsection (a) shall 
direct and coordinate initiatives throughout the Department of Defense 
to prevent and mitigate corrosion of the military equipment and 
infrastructure of the Department, including efforts to facilitate the 
prevention and mitigation of corrosion through--
            (1) development and recommendation of policy guidance on 
        the prevention and mitigation of corrosion which the Secretary 
        of Defense shall issue;
            (2) review of the annual budget proposed for the prevention 
        and mitigation of corrosion by the Secretary of each military 
        department and submittal of recommendations regarding the 
        proposed budget to the Secretary of Defense;
            (3) direction and coordination of the efforts within the 
        Department of Defense to prevent or mitigate corrosion during--
                    (A) the design, acquisition, and maintenance of 
                military equipment; and
                    (B) the design, construction, and maintenance of 
                infrastructure; and
            (4) monitoring of acquisition practices--
                    (A) to ensure that the use of corrosion prevention 
                technologies and the application of corrosion 
                prevention treatments are fully considered during 
                research and development in the acquisition process; 
                and
                    (B) to ensure that, to the extent determined 
                appropriate in each acquisition program, such 
                technologies and treatments are incorporated into the 
                program, particularly during the engineering and design 
                phases of the acquisition process.
    (c) Interim Report.--When the President submits the budget for 
fiscal year 2004 to Congress pursuant to section 1105(a) of title 31, 
United States Code, the Secretary of Defense shall submit to Congress a 
report regarding the actions taken under this section. The report shall 
include the following matters:
            (1) The organizational structure for the personnel carrying 
        out the responsibilities of the official designated under 
        subsection (a) with respect to the prevention and mitigation of 
        corrosion.
            (2) An outline and milestones for developing a long-term 
        corrosion prevention and mitigation strategy.
    (d) Long-Term Strategy.--(1) Not later than one year after the date 
of the enactment of this Act, the Secretary of Defense shall submit to 
Congress a long-term strategy to reduce corrosion and the effects of 
corrosion on the military equipment and infrastructure of the 
Department of Defense.
    (2) The strategy shall provide for the following actions:
            (A) Expanding the emphasis on corrosion prevention and 
        mitigation to include coverage of infrastructure.
            (B) Applying uniformly throughout the Department of Defense 
        requirements and criteria for the testing and certification of 
        new technologies for the prevention of corrosion.
            (C) Implementing programs, including programs supporting 
        databases, to foster the collection and analysis of--
                    (i) data useful for determining the extent of the 
                effects of corrosion on the maintenance and readiness 
                of military equipment and infrastructure; and
                    (ii) data on the costs associated with the 
                prevention and mitigation of corrosion.
            (D) Implementing programs, including supporting databases, 
        to ensure that a focused and coordinated approach is taken 
        throughout the Department of Defense to collect, review, 
        validate, and distribute information on proven methods and 
        products that are relevant to the prevention of corrosion of 
        military equipment and infrastructure.
            (E) Implementing a program to identify specific funding in 
        future budgets for the total life cycle costs of the prevention 
        and mitigation of corrosion.
            (F) Establishing a coordinated research and development 
        program for the prevention and mitigation of corrosion for new 
        and existing military equipment and infrastructure that 
        includes a plan to transition new corrosion prevention 
        technologies into operational systems.
    (3) The strategy shall also include, for the actions provided for 
pursuant to paragraph (2), the following:
            (A) Policy guidance.
            (B) Performance measures and milestones.
            (C) An assessment of the necessary program management 
        resources and necessary financial resources.
    (e) GAO Reviews.--The Comptroller General shall monitor the 
implementation of the long-term strategy required under subsection (d) 
and, not later than 18 months after the date of the enactment of this 
Act, submit to Congress an assessment of the extent to which the 
strategy has been implemented.
    (f) Definitions.--In this section:
            (1) The term ``corrosion'' means the deterioration of a 
        substance or its properties due to a reaction with its 
        environment.
            (2) The term ``military equipment'' includes all air, land, 
        and sea weapon systems, weapon platforms, vehicles, and 
        munitions of the Department of Defense, and the components of 
        such items.
            (3) The term ``infrastructure'' includes all buildings, 
        structures, airfields, port facilities, surface and 
        subterranean utility systems, heating and cooling systems, fuel 
        tanks, pavements, and bridges.
    (g) Termination.--This section shall cease to be effective on the 
date that is five years after the date of the enactment of this Act.

SEC. 905. WESTERN HEMISPHERE INSTITUTE FOR SECURITY COOPERATION.

    (a) Authority To Accept Foreign Gifts and Donations.--Section 2166 
of title 10, United States Code, is amended--
            (1) by redesignating subsections (f), (g), and (h), as 
        subsections (g), (h), and (i), respectively; and
            (2) by inserting after subsection (e) the following new 
        subsection (f):
    ``(f) Authority To Accept Foreign Gifts and Donations.--(1) The 
Secretary of Defense may, on behalf of the Institute, accept foreign 
gifts or donations in order to defray the costs of, or enhance the 
operation of, the Institute.
    ``(2) Funds received by the Secretary under paragraph (1) shall be 
credited to appropriations available for the Department of Defense for 
the Institute. Funds so credited shall be merged with the 
appropriations to which credited and shall be available for the 
Institute for the same purposes and same period as the appropriations 
with which merged.
    ``(3) The Secretary of Defense shall notify Congress if the total 
amount of money accepted under paragraph (1) exceeds $1,000,000 in any 
fiscal year. Any such notice shall list each of the contributors of 
such money and the amount of each contribution in such fiscal year.
    ``(4) For the purposes of this subsection, a foreign gift or 
donation is a gift or donation of funds, materials (including research 
materials), property, or services (including lecture services and 
faculty services) from a foreign government, a foundation or other 
charitable organization in a foreign country, or an individual in a 
foreign country.''.
    (b) Content of Annual Report to Congress.--Subsection (i) of such 
section, as redesignated by subsection (a)(1), is amended by inserting 
after the first sentence the following: ``The report shall include a 
copy of the latest report of the Board of Visitors received by the 
Secretary under subsection (e)(5), together with any comments of the 
Secretary on the Board's report.''.

SEC. 906. VETERINARY CORPS OF THE ARMY.

    (a) Composition and Administration.--(1) Chapter 307 of title 10, 
United States Code, is amended by inserting after section 3070 the 
following new section 3071:
``Sec. 3071. Veterinary Corps: composition; Chief and assistant chief; 
              appointment; grade
    ``(a) Composition.--The Veterinary Corps consists of the Chief and 
assistant chief of that corps and other officers in grades prescribed 
by the Secretary of the Army.
    ``(b) Chief.--The Secretary of the Army shall appoint the Chief 
from the officers of the Regular Army in that corps whose regular grade 
is above lieutenant colonel and who are recommended by the Surgeon 
General. An appointee who holds a lower regular grade may be appointed 
in the regular grade of brigadier general. The Chief serves during the 
pleasure of the Secretary, but not for more than four years, and may 
not be reappointed to the same position.
    ``(c) Assistant Chief.--The Surgeon General shall appoint the 
assistant chief from the officers of the Regular Army in that corps 
whose regular grade is above lieutenant colonel. The assistant chief 
serves during the pleasure of the Surgeon General, but not for more 
than four years and may not be reappointed to the same position.''.
    (2) The table of sections at the beginning of such chapter is 
amended by inserting after the item relating to section 3070 the 
following new item:

``3071. Veterinary Corps: composition; Chief and assistant chief; 
                            appointment; grade.''.
    (b) Effective Date.--Section 3071 of title 10, United States Code, 
as added by subsection (a), shall take effect on October 1, 2002.

SEC. 907. UNDER SECRETARY OF DEFENSE FOR INTELLIGENCE.

    (a) Establishment of Position.--Chapter 4 of title 10, United 
States Code, is amended--
            (1) by transferring section 137 within such chapter to 
        appear following section 138;
            (2) by redesignating sections 137 and 139 as sections 139 
        and 139a, respectively; and
            (3) by inserting after section 136a the following new 
        section 137:
``Sec. 137. Under Secretary of Defense for Intelligence
    ``(a) There is an Under Secretary of Defense for Intelligence, 
appointed from civilian life by the President, by and with the advice 
and consent of the Senate.
    ``(b) Subject to the authority, direction, and control of the 
Secretary of Defense, the Under Secretary of Defense for Intelligence 
shall perform such duties and exercise such powers as the Secretary of 
Defense may prescribe in the area of intelligence.
    ``(c) The Under Secretary of Defense for Personnel and Readiness 
takes precedence in the Department of Defense after the Under Secretary 
of Defense for Personnel and Readiness.''.
    (b) Conforming Amendments.--(1) Section 131 of such title is 
amended--
            (A) by striking paragraphs (2), (3), (4), and (5), and 
        inserting the following:
            ``(2) The Under Secretaries of Defense, as follows:
                    ``(A) The Under Secretary of Defense for 
                Acquisition, Technology, and Logistics.
                    ``(B) The Under Secretary of Defense for Policy.
                    ``(C) The Under Secretary of Defense (Comptroller).
                    ``(D) The Under Secretary of Defense for Personnel 
                and Readiness.
                    ``(E) The Under Secretary of Defense for 
                Intelligence.''; and
            (B) by redesignating paragraphs (6), (7), (8), (9), (10), 
        and (11) as paragraphs (3), (4), (5), (6), (7), and (8), 
        respectively.
    (2) The table of sections at the beginning of chapter 4 of such 
title is amended--
            (A) by striking the item relating to section 137 and 
        inserting the following:

``137. Under Secretary of Defense for Intelligence.'';
        and
            (B) by striking the item relating to section 139 and 
        inserting the following:

``139. Director of Research and Engineering.
``139a. Director of Operational Test and Evaluation.''.
    (c) Executive Level III.--Section 5314 of title 5, United States 
Code, is amended by inserting after ``Under Secretary of Defense for 
Personnel and Readiness.'' the following:
            ``Under Secretary of Defense for Intelligence.''.

                      TITLE X--GENERAL PROVISIONS

                     Subtitle A--Financial Matters

SEC. 1001. TRANSFER AUTHORITY.

    (a) Authority To Transfer Authorizations.--(1) Upon determination 
by the Secretary of Defense that such action is necessary in the 
national interest, the Secretary may transfer amounts of authorizations 
made available to the Department of Defense in this division for fiscal 
year 2003 between any such authorizations for that fiscal year (or any 
subdivisions thereof). Amounts of authorizations so transferred shall 
be merged with and be available for the same purposes as the 
authorization to which transferred.
    (2) The total amount of authorizations that the Secretary may 
transfer under the authority of this section may not exceed 
$2,500,000,000.
    (b) Limitations.--The authority provided by this section to 
transfer authorizations--
            (1) may only be used to provide authority for items that 
        have a higher priority than the items from which authority is 
        transferred; and
            (2) may not be used to provide authority for an item that 
        has been denied authorization by Congress.
    (c) Effect on Authorization Amounts.--A transfer made from one 
account to another under the authority of this section shall be deemed 
to increase the amount authorized for the account to which the amount 
is transferred by an amount equal to the amount transferred.
    (d) Notice to Congress.--The Secretary shall promptly notify 
Congress of each transfer made under subsection (a).

SEC. 1002. REALLOCATION OF AUTHORIZATIONS OF APPROPRIATIONS FROM 
              BALLISTIC MISSILE DEFENSE TO SHIPBUILDING.

    (a) Amount.--Notwithstanding any other provision of this Act, the 
total amount authorized to be appropriated under section 201(4) is 
hereby reduced by $690,000,000, and the amount authorized to be 
appropriated under section 102(a)(3) is hereby increased by 
$690,000,000.
    (b) Source of Reduction.--The total amount of the reduction in the 
amount authorized to be appropriated under section 201(4) shall be 
derived from the amount provided under that section for ballistic 
missile defense for research, development, test, and evaluation.
    (c) Allocation of Increase.--Of the additional amount authorized to 
be appropriated under section 102(a)(3) pursuant to subsection (a)--
            (1) $415,000,000 shall be available for advance procurement 
        of a Virginia class submarine;
            (2) $125,000,000 shall be available for advance procurement 
        of a DDG-51 class destroyer; and
            (3) $150,000,000 shall be available for advance procurement 
        of an LPD-17 class amphibious transport dock.

SEC. 1003. AUTHORIZATION OF APPROPRIATIONS FOR CONTINUED OPERATIONS FOR 
              THE WAR ON TERRORISM.

    (a) Amount.--(1) In addition to the amounts authorized to be 
appropriated under divisions A and B, funds are hereby authorized to be 
appropriated for fiscal year 2003 (subject to subsection (b)) in the 
total amount of $10,000,000,000 for the conduct of operations in 
continuation of the war on terrorism in accordance with the 
Authorization for Use of Military Force (Public Law 107-40; 50 U.S.C. 
1541 note).
    (2) The amount authorized to be appropriated under paragraph (1) 
shall be available for increased operating costs, transportation costs, 
costs of humanitarian efforts, costs of special pays, costs of enhanced 
intelligence efforts, increased personnel costs for members of the 
reserve components ordered to active duty under a provision of law 
referred to in section 101(a)(13)(B) of title 10, United States Code, 
and other costs related to operations referred to in paragraph (1).
    (b) Authorization Contingent on Budget Request.--The authorization 
of appropriations in subsection (a) shall be effective only to the 
extent of the amount provided in a budget request for the appropriation 
of funds for purposes set forth in subsection (a) that is submitted by 
the President to Congress after the date of the enactment of this Act 
and--
            (1) includes a designation of the requested amount as being 
        essential to respond to or protect against acts or threatened 
        acts of terrorism; and
            (2) specifies a proposed allocation and plan for the use of 
        the appropriation for purposes set forth in subsection (a).

SEC. 1004. AUTHORIZATION OF EMERGENCY SUPPLEMENTAL APPROPRIATIONS FOR 
              FISCAL YEAR 2002.

    Amounts authorized to be appropriated to the Department of Defense 
for fiscal year 2002 in the National Defense Authorization Act for 
Fiscal Year 2002 (Public Law 107-107) are hereby adjusted, with respect 
to any such authorized amount, by the amount by which appropriations 
pursuant to such authorization were increased (by a supplemental 
appropriation) or decreased (by a rescission), or both, in any law 
making supplemental appropriations for fiscal year 2002 that is enacted 
during the 107th Congress, second session.

SEC. 1005. UNITED STATES CONTRIBUTION TO NATO COMMON-FUNDED BUDGETS IN 
              FISCAL YEAR 2003.

    (a) Fiscal Year 2003 Limitation.--The total amount contributed by 
the Secretary of Defense in fiscal year 2003 for the common-funded 
budgets of NATO may be any amount up to, but not in excess of, the 
amount specified in subsection (b) (rather than the maximum amount that 
would otherwise be applicable to those contributions under the fiscal 
year 1998 baseline limitation).
    (b) Total Amount.--The amount of the limitation applicable under 
subsection (a) is the sum of the following:
            (1) The amounts of unexpended balances, as of the end of 
        fiscal year 2002, of funds appropriated for fiscal years before 
        fiscal year 2003 for payments for those budgets.
            (2) The amount specified in subsection (c)(1).
            (3) The amount specified in subsection (c)(2).
            (4) The total amount of the contributions authorized to be 
        made under section 2501.
    (c) Authorized Amounts.--Amounts authorized to be appropriated by 
titles II and III of this Act are available for contributions for the 
common-funded budgets of NATO as follows:
            (1) Of the amount provided in section 201(1), $750,000 for 
        the Civil Budget.
            (2) Of the amount provided in section 301(a)(1), 
        $205,623,000 for the Military Budget.
    (d) Definitions.--For purposes of this section:
            (1) Common-funded budgets of nato.--The term ``common-
        funded budgets of NATO'' means the Military Budget, the 
        Security Investment Program, and the Civil Budget of the North 
        Atlantic Treaty Organization (and any successor or additional 
        account or program of NATO).
            (2) Fiscal year 1998 baseline limitation.--The term 
        ``fiscal year 1998 baseline limitation'' means the maximum 
        annual amount of Department of Defense contributions for 
        common-funded budgets of NATO that is set forth as the annual 
        limitation in section 3(2)(C)(ii) of the resolution of the 
        Senate giving the advice and consent of the Senate to the 
        ratification of the Protocols to the North Atlantic Treaty of 
        1949 on the Accession of Poland, Hungary, and the Czech 
        Republic (as defined in section 4(7) of that resolution), 
        approved by the Senate on April 30, 1998.

SEC. 1006. DEVELOPMENT AND IMPLEMENTATION OF FINANCIAL MANAGEMENT 
              ENTERPRISE ARCHITECTURE.

    (a) Requirement for Enterprise Architecture and Transition Plan.--
Not later than March 15, 2003, the Secretary of Defense shall develop a 
proposed financial management enterprise architecture for all 
budgetary, accounting, finance, and data feeder systems of the 
Department of Defense, together with a transition plan for implementing 
the proposed enterprise architecture.
    (b) Composition of Architecture.--The proposed financial management 
enterprise architecture developed under subsection (a) shall describe a 
system that, at a minimum--
            (1) includes data standards and system interface 
        requirements that are to apply uniformly throughout the 
        Department of Defense;
            (2) enables the Department of Defense--
                    (A) to comply with Federal accounting, financial 
                management, and reporting requirements;
                    (B) to routinely produce timely, accurate, and 
                useful financial information for management purposes;
                    (C) to integrate budget, accounting, and program 
                information and systems; and
                    (D) to provide for the systematic measurement of 
                performance, including the ability to produce timely, 
                relevant, and reliable cost information.
    (c) Composition of Transition Plan.--The transition plan developed 
under subsection (a) shall contain specific time-phased milestones for 
modifying or eliminating existing systems and for acquiring new systems 
necessary to implement the proposed enterprise architecture.
    (d) Expenditures for Implementation.--The Secretary of Defense may 
not obligate more than $1,000,000 for a defense financial system 
improvement on or after the enterprise architecture approval date 
unless the Financial Management Modernization Executive Committee 
determines that the defense financial system improvement is consistent 
with the proposed enterprise architecture and transition plan.
    (e) Expenditures Pending Architecture Approval.--The Secretary of 
Defense may not obligate more than $1,000,000 for a defense financial 
system improvement during the enterprise architecture pre-approval 
period unless the Financial Management Modernization Executive 
Committee determines that the defense financial system improvement is 
necessary--
            (1) to achieve a critical national security capability or 
        address a critical requirement in an area such as safety or 
        security; or
            (2) to prevent a significant adverse effect (in terms of a 
        technical matter, cost, or schedule) on a project that is 
        needed to achieve an essential capability, taking into 
        consideration in the determination the alternative solutions 
        for preventing the adverse effect.
    (f) Comptroller General Review.--Not later than March 1 of each of 
2003, 2004, and 2005, the Comptroller General shall submit to the 
congressional defense committees a report on defense financial 
management system improvements that have been undertaken during the 
previous year. The report shall include the Comptroller General's 
assessment of the extent to which the improvements comply with the 
requirements of this section.
    (g) Definitions.--In this section:
            (1) The term ``defense financial system improvement''--
                    (A) means the acquisition of a new budgetary, 
                accounting, finance, or data feeder system for the 
                Department of Defense, or a modification of an existing 
                budgetary, accounting, finance, or data feeder system 
                of the Department of Defense; and
                    (B) does not include routine maintenance and 
                operation of any such system.
            (2) The term ``enterprise architecture approval date'' 
        means the date on which the Secretary of Defense approves a 
        proposed financial management enterprise architecture and a 
        transition plan that satisfy the requirements of this section.
            (3) The term ``enterprise architecture pre-approval 
        period'' means the period beginning on the date of the 
        enactment of this Act and ending on the day before the 
        enterprise architecture approval date.
            (4) The term ``feeder system'' means a data feeder system 
        within the meaning of section 2222(c)(2) of title 10, United 
        States Code.
            (5) The term ``Financial Management Modernization Executive 
        Committee'' means the Financial Management Modernization 
        Executive Committee established pursuant to section 185 of 
        title 10, United States Code.

SEC. 1007. DEPARTMENTAL ACCOUNTABLE OFFICIALS IN THE DEPARTMENT OF 
              DEFENSE.

    (a) Designation and Accountability.--Chapter 165 of title 10, 
United States Code, is amended by inserting after section 2773 the 
following new section:
``Sec. 2773a. Departmental accountable officials
    ``(a) Designation.--The Secretary of Defense may designate, in 
writing, as a departmental accountable official any employee of the 
Department of Defense or any member of the armed forces who--
            ``(1) has a duty to provide a certifying official of the 
        Department of Defense with information, data, or services 
        directly relied upon by the certifying official in the 
        certification of vouchers for payment; and
            ``(1) is not otherwise accountable under subtitle III of 
        title 31 or any other provision of law for payments made on the 
        basis of the vouchers.
    ``(b) Pecuniary Liability.--(1) The Secretary of Defense may, in a 
designation of a departmental accountable official under subsection 
(a), subject that official to pecuniary liability, in the same manner 
and to the same extent as an official accountable under subtitle III of 
title 31, for an illegal, improper, or incorrect payment made pursuant 
to a voucher certified by a certifying official of the Department of 
Defense on the basis of information, data, or services that--
            ``(A) the departmental accountable official provides to the 
        certifying official in the performance of a duty described in 
        subsection (a)(1); and
            ``(B) the certifying official directly relies upon in 
        certifying the voucher.
    ``(2) Any pecuniary liability imposed on a departmental accountable 
official under this subsection for a loss to the United States 
resulting from an illegal, improper, or incorrect payment shall be 
joint and several with that of any other employee or employees of the 
United States or member or members of the uniformed services who are 
pecuniarily liable for the loss.
    ``(c) Relief From Pecuniary Liability.--The Secretary of Defense 
shall relieve a departmental accountable official from pecuniary 
liability imposed under subsection (b) in the case of a payment if the 
Secretary determines that the payment was not a result of fault or 
negligence on the part of the departmental accountable official.
    ``(d) Certifying Official Defined.--In this section, the term 
`certifying official' means an employee who has the responsibilities 
specified in section 3528(a) of title 31.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by inserting after the item relating to section 
2773 the following new item:

        ``2773a. Departmental accountable officials.''.

SEC. 1008. DEPARTMENT-WIDE PROCEDURES FOR ESTABLISHING AND LIQUIDATING 
              PERSONAL PECUNIARY LIABILITY.

    (a) Report of Survey Procedures.--(1) Chapter 165 of title 10, 
United States Code, is amended by inserting after section 2786 the 
following new section:
``Sec. 2787. Reports of survey
    ``(a) Regulations.--Under regulations prescribed pursuant to 
subsection (c), any officer of the armed forces or any civilian 
employee of the Department of Defense designated in accordance with the 
regulations may act upon reports of survey and vouchers pertaining to 
the loss, spoilage, unserviceability, unsuitability, or destruction of, 
or damage to, property of the United States under the control of the 
Department of Defense.
    ``(b) Finality of Action.--(1) Action taken under subsection (a) is 
final except as provided in paragraph (2).
    ``(2) An action holding a person pecuniarily liable for loss, 
spoilage, destruction, or damage is not final until approved by a 
person designated to do so by the Secretary of a military department, 
commander of a combatant command, or Director of a Defense Agency, as 
the case may be, who has jurisdiction of the person held pecuniarily 
liable. The person designated to provide final approval shall be an 
officer of an armed force, or a civilian employee, under the 
jurisdiction of the official making the designation.
    ``(c) Regulations.--The Secretary of Defense shall prescribe 
regulations to carry out this section.''.
    (2) The table of sections at the beginning of chapter 165 of such 
title is amended by inserting after the item relating to section 2786 
the following new item:

``2787. Reports of survey.''.
    (b) Damage or Repair of Arms and Equipment.--Section 1007(e) of 
title 37, United States Code, is amended by striking ``Army or the Air 
Force'' and inserting ``Army, Navy, Air Force, or Marine Corps''.
    (c) Repeal of Superseded Provisions.--(1) Sections 4835 and 9835 of 
title 10, United States Code, are repealed.
    (2) The tables of sections at the beginning of chapters 453 and 953 
of such title are amended by striking the items relating to sections 
4835 and 9835, respectively.

SEC. 1009. TRAVEL CARD PROGRAM INTEGRITY.

    (a) Authority.--Section 2784 of title 10, United States Code, is 
amended by adding at the end the following new subsections:
    ``(d) Disbursement of Allowances Directly to Creditors.--(1) The 
Secretary of Defense may require that any part of the travel or 
transportation allowances of an employee of the Department of Defense 
or a member of the armed forces be disbursed directly to the issuer of 
a Defense travel card if the amount is disbursed to the issuer in 
payment of amounts of expenses of official travel that are charged by 
the employee or member on the Defense travel card.
    ``(2) For the purposes of this subsection, the travel and 
transportation allowances referred to in paragraph (1) are amounts to 
which an employee of the Department of Defense is entitled under 
section 5702 of title 5 and or a member of the armed forces is entitled 
section 404 of title 37.
    ``(e) Offsets for Delinquent Travel Card Charges.--(1) The 
Secretary of Defense may require that there be deducted and withheld 
from any pay payable to an employee of the Department of Defense or a 
member of the armed forces any amount that is owed by the employee or 
member to a creditor by reason of one or more charges of expenses of 
official travel of the employee or member on a Defense travel card 
issued by the creditor if the employee or member--
            ``(A) is delinquent in the payment of such amount under the 
        terms of the contract under which the card is issued; and
            ``(B) does not dispute the amount of the delinquency.
    ``(2) The amount deducted and withheld from pay under paragraph (1) 
with respect to a debt owed a creditor as described in that paragraph 
shall be disbursed to the creditor to reduce the amount of the debt.
    ``(3) The amount of pay deducted and withheld from the pay owed to 
an employee or member with respect to a pay period under paragraph (1) 
may not exceed 15 percent of the disposable pay of the employee or 
member for that pay period, except that a higher amount may be deducted 
and withheld with the written consent of the employee or member.
    ``(4) The Secretary of Defense shall prescribe procedures for 
deducting and withholding amounts from pay under this subsection. The 
procedures shall be substantially equivalent to the procedures under 
section 3716 of title 31.
    ``(f) Under Secretary of Defense (Comptroller).--The Secretary of 
Defense shall act through the Under Secretary of Defense (Comptroller) 
in carrying out this section.
    ``(g) Definitions.--In this section:
            ``(1) The term `Defense travel card' means a charge or 
        credit card that--
                    ``(A) is issued to an employee of the Department of 
                Defense or a member of the armed forces under a 
                contract entered into by the Department of Defense and 
                the issuer of the card; and
                    ``(B) is to be used for charging expenses incurred 
                by the employee or member in connection with official 
                travel.
            ``(2) The term `disposable pay', with respect to a pay 
        period, means the amount equal to the excess of the amount of 
        basic pay payable for the pay period over the total of the 
        amounts deducted and withheld from such pay.''.
    (b) Conforming Amendment.--Subsection (a) of such section is 
amended by striking ``, acting through the Under Secretary of Defense 
(Comptroller),''.

SEC. 1010. CLEARANCE OF CERTAIN TRANSACTIONS RECORDED IN TREASURY 
              SUSPENSE ACCOUNTS AND RESOLUTION OF CERTAIN CHECK 
              ISSUANCE DISCREPANCIES.

    (a) Clearing of Suspense Accounts.--(1) In the case of any 
transaction that was entered into by or on behalf of the Department of 
Defense before March 1, 2001, that is recorded in the Department of 
Treasury Budget Clearing Account (Suspense) designated as account 
F3875, the Unavailable Check Cancellations and Overpayments (Suspense) 
designated as account F3880, or an Undistributed Intergovernmental 
Payments account designated as account F3885, and for which no 
appropriation for the Department of Defense has been identified--
            (A) any undistributed collection credited to such account 
        in such case shall be deposited to the miscellaneous receipts 
        of the Treasury; and
            (B) subject to paragraph (2), any undistributed 
        disbursement recorded in such account in such case shall be 
        canceled.
    (2) An undistributed disbursement may not be canceled under 
paragraph (1) until the Secretary of Defense has made a written 
determination that the appropriate official or officials of the 
Department of Defense have attempted without success to locate the 
documentation necessary to demonstrate which appropriation should be 
charged and further efforts are not in the best interests of the United 
States.
    (b) Resolution of Check Issuance Discrepancies.--(1) In the case of 
any check drawn on the Treasury that was issued by or on behalf of the 
Department of Defense before October 31, 1998, for which the Secretary 
of the Treasury has reported to the Department of Defense a discrepancy 
between the amount paid and the amount of the check as transmitted to 
the Department of Treasury, and for which no specific appropriation for 
the Department of Defense can be identified as being associated with 
the check, the discrepancy shall be canceled, subject to paragraph (2).
    (2) A discrepancy may not be canceled under paragraph (1) until the 
Secretary of Defense has made a written determination that the 
appropriate official or officials of the Department of Defense have 
attempted without success to locate the documentation necessary to 
demonstrate which appropriation should be charged and further efforts 
are not in the best interests of the United States.
    (c) Consultation.--The Secretary of Defense shall consult the 
Secretary of the Treasury in the exercise of the authority granted by 
subsections (a) and (b).
    (d) Duration of Authority.--(1) A particular undistributed 
disbursement may not be canceled under subsection (a) more than 30 days 
after the date of the written determination made by the Secretary of 
Defense under such subsection regarding that undistributed 
disbursement.
    (2) A particular discrepancy may not be canceled under subsection 
(b) more than 30 days after the date of the written determination made 
by the Secretary of Defense under such subsection regarding that 
discrepancy.
    (3) No authority may be exercised under this section after the date 
that is two years after the date of the enactment of this Act.

SEC. 1011. ADDITIONAL AMOUNT FOR BALLISTIC MISSILE DEFENSE OR COMBATING 
              TERRORISM IN ACCORDANCE WITH NATIONAL SECURITY PRIORITIES 
              OF THE PRESIDENT.

    (a) Authorization of Appropriations.--In addition to other amounts 
authorized to be appropriated by other provisions of this division, 
there is hereby authorized to be appropriated for the Department of 
Defense for fiscal year 2003, $814,300,000 for whichever of the 
following purposes the President determines that the additional amount 
is necessary in the national security interests of the United States:
            (1) Research, development, test, and evaluation for 
        ballistic missile defense programs of the Department of 
        Defense.
            (2) Activities of the Department of Defense for combating 
        terrorism at home and abroad.
    (b) Offset.--The total amount authorized to be appropriated under 
the other provisions of this division is hereby reduced by $814,300,000 
to reflect the amounts that the Secretary determines unnecessary by 
reason of a revision of assumptions regarding inflation that are 
applied as a result of the midsession review of the budget conducted by 
the Office of Management and Budget during the spring and early summer 
of 2002.
    (c) Priority for Allocating Funds.--In the expenditure of 
additional funds made available by a lower rate of inflation, the top 
priority shall be the use of such funds for Department of Defense 
activities for protecting the American people at home and abroad by 
combating terrorism at home and abroad.

SEC. 1012. AVAILABILITY OF AMOUNTS FOR OREGON ARMY NATIONAL GUARD FOR 
              SEARCH AND RESCUE AND MEDICAL EVACUATION MISSIONS IN 
              ADVERSE WEATHER CONDITIONS.

    (a) Increase in Authorization of Appropriations for Army 
Procurement.--The amount authorized to be appropriated by section 
101(1) for procurement for the Army for aircraft is hereby increased by 
$3,000,000.
    (b) Availability.--Of the amount authorized to be appropriated by 
section 101(1) for procurement for the Army for aircraft, as increased 
by subsection (a), $3,000,000 shall be available for the upgrade of 
three UH-60L Blackhawk helicopters of the Oregon Army National Guard to 
the capabilities of UH-60Q Search and Rescue model helicopters, 
including Star Safire FLIR, Breeze-Eastern External Rescue Hoist, and 
Air Methods COTS Medical Systems upgrades, in order to improve the 
utility of such UH-60L Blackhawk helicopters in search and rescue and 
medical evacuation missions in adverse weather conditions.
    (c) Increase in Authorization of Appropriations for Military 
Personnel.--The amount authorized to be appropriated by section 421 for 
military personnel is hereby increased by $1,800,000.
    (d) Availability.--Of the amount authorized to be appropriated by 
section 421 for military personnel, as increased by subsection (d), 
$1,800,000 shall be available for up to 26 additional personnel for the 
Oregon Army National Guard.
    (e) Offset.--The amount authorized to be appropriated by section 
301(a)(1) for operation and maintenance for the Army is hereby reduced 
by $4,800,000, with the amount of the reduction to be allocated to Base 
Operations Support (Servicewide Support).

                Subtitle B--Naval Vessels and Shipyards

SEC. 1021. NUMBER OF NAVY SURFACE COMBATANTS IN ACTIVE AND RESERVE 
              SERVICE.

    (a) Contingent Requirement for Report.--If, on the date of the 
enactment of this Act, the total number of Navy ships comprising the 
force of surface combatants is less than 116, the Secretary of the Navy 
shall submit a report on the size of that force to the Committees on 
Armed Services of the Senate and the House of Representatives. The 
report shall be submitted not later than 90 days after such date and 
shall include a risk assessment for such force that is based on the 
same assumptions as those that were applied in the QDR 2001 current 
force risk assessment.
    (b) Limitation on Reduction.--The force of surface combatants may 
not be reduced at any time after the date of the enactment of this Act 
from a number of ships (whether above, equal to, or below 116) to a 
number of ships below 116 before the date that is 90 days after the 
date on which the Secretary of the Navy submits to the committees 
referred to in subsection (a) a written notification of the reduction. 
The notification shall include the following information:
            (1) The schedule for the reduction.
            (2) The number of ships that are to comprise the reduced 
        force of surface combatants.
            (3) A risk assessment for the reduced force that is based 
        on the same assumptions as those that were applied in the QDR 
        2001 current force risk assessment.
    (c) Preservation of Surge Capability.--Whenever the total number of 
Navy ships comprising the force of surface combatants is less than 116, 
the Secretary of the Navy shall maintain on the Naval Vessel Register a 
sufficient number of surface combatant ships to enable the Navy to 
regain a total force of 116 surface combatant ships in active and 
reserve service in the Navy within 120 days after the President decides 
to increase the force of surface combatants.
    (d) Definitions.--In this section:
            (1) The term ``force of surface combatants'' means the 
        surface combatant ships in active and reserve service in the 
        Navy.
            (2) The term ``QDR 2001 current force risk assessment'' 
        means the risk assessment associated with a force of 116 
        surface combatant ships in active and reserve service in the 
        Navy that is set forth in the report on the quadrennial defense 
        review submitted to Congress on September 30, 2001, under 
        section 118 of title 10, United States Code.

SEC. 1022. PLAN FOR FIELDING THE 155-MILLIMETER GUN ON A SURFACE 
              COMBATANT.

    (a) Requirement for Plan.--The Secretary of the Navy shall submit 
to Congress a plan for fielding the 155-millimeter gun on one surface 
combatant ship in active service in the Navy. The Secretary shall 
submit the plan at the same time that the President submits the budget 
for fiscal year 2004 to Congress under section 1105(a) of title 31, 
United States Code.
    (b) Fielding on Expedited Schedule.--The plan shall provide for 
fielding the 155-millimeter gun on an expedited schedule that is 
consistent with the achievement of safety of operation and fire support 
capabilities meeting the fire support requirements of the Marine Corps, 
but not later than October 1, 2006.

SEC. 1023. REPORT ON INITIATIVES TO INCREASE OPERATIONAL DAYS OF NAVY 
              SHIPS.

    (a) Requirement for Report on Initiatives.--(1) The Under Secretary 
of Defense for Acquisition, Technology, and Logistics shall submit to 
the Committees on Armed Services of the Senate and the House of 
Representatives a report on Department of Defense initiatives to 
increase the number of operational days of Navy ships as described in 
subsection (b).
    (2) The report shall cover the ongoing Department of Defense 
initiatives as well as potential initiatives that are under 
consideration within the Department of Defense.
    (b) Initiatives Within Limits of Existing Fleet and Deployment 
Policy.--The Under Secretary shall, in the report, assess the 
feasibility and identify the projected effects of conducting 
initiatives that have the potential to increase the number of 
operational days of Navy ships available to the commanders-in-chief of 
the regional unified combatant commands without increasing the number 
of Navy ships and without increasing the routine lengths of deployments 
of Navy ships above six months.
    (c) Required Focus Areas.--The report shall, at a minimum, address 
the following four focus areas:
            (1) Assignment of additional ships, including submarines, 
        to home ports closer to the areas of operation for the ships 
        (known as ``forward homeporting'').
            (2) Assignment of ships to remain in a forward area of 
        operations, together with rotation of crews for each ship so 
        assigned.
            (3) Retention of ships for use until the end of the full 
        service life, together with investment of the funds necessary 
        to support retention to that extent.
            (4) Prepositioning of additional ships with, under normal 
        circumstances, small crews in a forward area of operations.
    (d) Time for Submittal.--The report shall be submitted at the same 
time that the President submits the budget for fiscal year 2004 to 
Congress under section 1105(a) of title 31, United States Code.

SEC. 1024. ANNUAL LONG-RANGE PLAN FOR THE CONSTRUCTION OF SHIPS FOR THE 
              NAVY.

    (a) Findings.--Congress makes the following findings:
            (1) Navy ships provide a forward presence for the United 
        States that is a key to the national defense of the United 
        States.
            (2) The Navy has demonstrated that its ships contribute 
        significantly to homeland defense.
            (3) The Navy's ship recapitalization plan is inadequate to 
        maintain the ship force structure that is described as the 
        current force in the 2001 Quadrennial Defense Review.
            (4) The Navy is decommissioning ships as much as 10 years 
        earlier than the projected ship life upon which ship 
        replacement rates are based.
            (5) The current force was assessed in the 2001 Quadrennial 
        Defense Review as having moderate to high risk, depending on 
        the scenario considered.
    (b) Annual Ship Construction Plan.--(1) Chapter 9 of title 10, 
United States Code, is amended by adding at the end the following new 
section:
``Sec. 231. Annual ship construction plan
    ``(a) Annual Ship Construction Plan.--The Secretary of Defense 
shall include in the defense budget materials for each fiscal year a 
plan for the construction of combatant and support ships for the Navy 
that--
            ``(1) supports the National Security Strategy; or
            ``(2) if there is no National Security Strategy in effect, 
        supports the ship force structure called for in the report of 
        the latest Quadrennial Defense Review.
    ``(b) Content.--The ship construction plan included in the defense 
budget materials for a fiscal year shall provide in detail for the 
construction of combatant and support ships for the Navy over the 30 
consecutive fiscal years beginning with the fiscal year covered by the 
defense budget materials and shall include the following matters:
            ``(1) A description of the necessary ship force structure 
        of the Navy.
            ``(2) The estimated levels of funding necessary to carry 
        out the plan, together with a discussion of the procurement 
        strategies on which such estimated funding levels are based.
            ``(3) A certification by the Secretary of Defense that both 
        the budget for the fiscal year covered by the defense budget 
        materials and the future-years defense program submitted to 
        Congress in relation to such budget under section 221 of this 
        title provide for funding ship construction for the Navy at a 
        level that is sufficient for the procurement of the ships 
        provided for in the plan on schedule.
            ``(4) If the budget for the fiscal year provides for 
        funding ship construction at a level that is not sufficient for 
        the recapitalization of the force of Navy ships at the annual 
        rate necessary to sustain the force, an assessment (coordinated 
        with the commanders of the combatant commands in advance) that 
        describes and discusses the risks associated with the reduced 
        force structure that will result from funding ship construction 
        at such insufficient level.
    ``(c) Definitions.--In this section:
            ``(1) The term `budget', with respect to a fiscal year, 
        means the budget for such fiscal year that is submitted to 
        Congress by the President under section 1105(a) of title 31.
            ``(2) The term `defense budget materials', with respect to 
        a fiscal year, means the materials submitted to Congress by the 
        Secretary of Defense in support of the budget for such fiscal 
        year.
            ``(3) The term `Quadrennial Defense Review' means the 
        Quadrennial Defense Review that is carried out under section 
        118 of this title.''.
    (2) The table of sections at the beginning of such chapter is 
amended by adding at the end the following new item:

``231. Annual ship construction plan.''.

                   Subtitle C--Reporting Requirements

SEC. 1031. REPEAL AND MODIFICATION OF VARIOUS REPORTING REQUIREMENTS 
              APPLICABLE WITH RESPECT TO THE DEPARTMENT OF DEFENSE.

    (a) Provisions of Title 10.--Title 10, United States Code, is 
amended as follows:
            (1)(A) Section 183 is repealed.
            (B) The table of sections at the beginning of chapter 7 is 
        amended by striking the item relating to section 183.
            (2)(A) Sections 226 and 230 are repealed.
            (B) The table of sections at the beginning of chapter 9 is 
        amended by striking the items relating to sections 226 and 230.
            (3) Effective two years after the date of the enactment of 
        this Act--
                    (A) section 483 is repealed; and
                    (B) the table of sections at the beginning of 
                chapter 23 is amended by striking the item relating to 
                section 483.
            (4) Section 526 is amended by striking subsection (c).
            (5) Section 721(d) is amended--
                    (A) by striking paragraph (2); and
                    (B) by striking ``(1)'' before ``If an officer''.
            (6) Section 1095(g) is amended--
                    (A) by striking paragraph (2); and
                    (B) by striking ``(1)'' after ``(g)''.
            (7) Section 1798 is amended by striking subsection (d).
            (8) Section 1799 is amended by striking subsection (d).
            (9) Section 2220 is amended--
                    (A) by striking subsections (b) and (c);
                    (B) by striking ``(1)'' after ``Establishment of 
                Goals.--''; and
                    (C) by striking ``(2) The'' and inserting ``(b) 
                Evaluation of Cost Goals.--The''.
            (10) Section 2350a(g) is amended by striking paragraph (4).
            (11) Section 2350f is amended by striking subsection (c).
            (12) Section 2350k is amended by striking subsection (d).
            (13) Section 2367(d) is amended by striking ``Effort.--(1) 
        In the'' and all that follows through ``(2) After the close 
        of'' and inserting ``Effort.--After the close of''.
            (14) Section 2391 is amended by striking subsection (c).
            (15) Section 2486(b)(12) is amended by striking ``, except 
        that'' and all that follows and inserting the following: ``, 
        except that the Secretary shall notify Congress of any addition 
        of, or change in, a merchandise category under this 
        paragraph.''.
            (16) Section 2492 is amended by striking subsection (c) and 
        inserting the following:
    ``(c) Notification of Conditions Necessitating Restrictions.--The 
Secretary of Defense shall notify Congress of any change proposed or 
made to any of the host nation laws or any of the treaty obligations of 
the United States, and any changed conditions within host nations, if 
the change would necessitate the use of quantity or other restrictions 
on purchases in commissary and exchange stores located outside the 
United States.''.
            (17)(A) Section 2504 is repealed.
            (B) The table of sections at the beginning of subchapter II 
        of chapter 148 is amended by striking the item relating to 
        section 2504.
            (18) Section 2506--
                    (A) is amended by striking subsection (b); and
                    (B) by striking ``(a) Departmental Guidance.--''.
            (19) Section 2537(a) is amended by striking ``$100,000'' 
        and inserting ``$10,000,000''.
            (20) Section 2611 is amended by striking subsection (e).
            (21) Section 2667(d) is amended by striking paragraph (3).
            (22) Section 2813 is amended by striking subsection (c).
            (23) Section 2827 is amended--
                    (A) by striking subsection (b); and
                    (B) by striking ``(a) Subject to subsection (b), 
                the Secretary'' and inserting ``The Secretary''.
            (24) Section 2867 is amended by striking subsection (c).
            (25) Section 4416 is amended by striking subsection (f).
            (26) Section 5721(f) is amended--
                    (A) by striking paragraph (2); and
                    (B) by striking ``(1)'' after the subsection 
                heading.
    (b) National Defense Authorization Act for Fiscal Year 1995.--
Section 553(b) of the National Defense Authorization Act for Fiscal 
Year 1995 (Public Law 103-337; 108 Stat. 2772; 10 U.S.C. 4331 note) is 
amended by striking the last sentence.
    (c) Ballistic Missile Defense Act of 1995.--Section 234 of the 
Ballistic Missile Defense Act of 1995 (subtitle C of title II of Public 
Law 104-106; 10 U.S.C. 2431 note) is amended by striking subsection 
(f).

SEC. 1032. ANNUAL REPORT ON WEAPONS TO DEFEAT HARDENED AND DEEPLY 
              BURIED TARGETS.

    (a) Annual Report.--Not later than April 1, 2003, and each year 
thereafter, the Secretary of Defense, Secretary of Energy, and Director 
of Central Intelligence shall jointly submit to the congressional 
defense committees a report on the research and development activities 
undertaken by their respective agencies during the preceding fiscal 
year to develop a weapon to defeat hardened and deeply buried targets.
    (b) Report Elements.--The report for a fiscal year under subsection 
(a) shall--
            (1) include a discussion of the integration and 
        interoperability of the various programs to develop a weapon 
        referred to in that subsection that were undertaken during such 
        fiscal year, including a discussion of the relevance of such 
        programs to applicable decisions of the Joint Requirements 
        Oversight Council; and
            (2) set forth separately a description of the research and 
        development activities, if any, to develop a weapon referred to 
        in that subsection that were undertaken during such fiscal year 
        by each military department, the Department of Energy, and the 
        Central Intelligence Agency.

SEC. 1033. REVISION OF DATE OF ANNUAL REPORT ON COUNTERPROLIFERATION 
              ACTIVITIES AND PROGRAMS.

    Section 1503(a) of the National Defense Authorization Act for 
Fiscal Year 1995 (22 U.S.C. 2751 note) is amended by striking 
``February 1 of each year'' and inserting ``May 1 each year''.

SEC. 1034. QUADRENNIAL QUALITY OF LIFE REVIEW.

    (a) Requirement for Review.--Chapter 23 of title 10, United States 
Code, is amended by adding at the end the following new section:
``Sec. 488. Quadrennial quality of life review
    ``(a) Review Required.--(1) The Secretary of Defense shall every 
four years, two years after the submission of the quadrennial defense 
review to Congress under section 118 of this title, conduct a 
comprehensive examination of the quality of life of the members of the 
armed forces (to be known as the `quadrennial quality of life review'). 
The review shall include examination of the programs, projects, and 
activities of the Department of Defense, including the morale, welfare, 
and recreation activities.
    ``(2) The quadrennial review shall be designed to result in 
determinations, and to foster policies and actions, that reflect the 
priority given the quality of life of members of the armed forces as a 
primary concern of the Department of Defense leadership.
    ``(b) Conduct of Review.--Each quadrennial quality of life review 
shall be conducted so as--
            ``(1) to assess quality of life priorities and issues 
        consistent with the most recent National Security Strategy 
        prescribed by the President pursuant to section 108 of the 
        National Security Act of 1947 (50 U.S.C. 404a);
            ``(2) to identify actions that are needed in order to 
        provide members of the armed forces with the quality of life 
        reasonably necessary to encourage the successful execution of 
        the full range of missions that the members are called on to 
        perform under the national security strategy;
            ``(3) to provide a full accounting of the backlog of 
        installations in need of maintenance and repair, to determine 
        how the disrepair affects performance and quality of life of 
        members and their families, and to identify the budget plan 
        that would be required to provide the resources necessary to 
        remedy the backlog of maintenance and repair; and
            ``(4) to identify other actions that have the potential for 
        improving the quality of life of the members of the armed 
        forces.
    ``(c) Considerations.--Among the matters considered by the 
Secretary in conducting the quadrennial review, the Secretary shall 
include the following matters:
            ``(1) Infrastructure.
            ``(2) Military construction.
            ``(3) Physical conditions at military installations and 
        other Department of Defense facilities.
            ``(4) Budget plans.
            ``(5) Adequacy of medical care for members of the armed 
        forces and their dependents.
            ``(6) Adequacy of housing and the basic allowance for 
        housing and basic allowance for subsistence.
            ``(7) Housing-related utility costs.
            ``(8) Educational opportunities and costs.
            ``(9) Length of deployments.
            ``(10) Rates of pay, and pay differentials between the pay 
        of members and the pay of civilians.
            ``(11) Retention and recruiting efforts.
            ``(12) Workplace safety.
            ``(13) Support services for spouses and children.
            ``(14) Other elements of Department of Defense programs and 
        Federal Government policies and programs that affect the 
        quality of life of members.
    ``(d) Submission of QQLR to Congressional Committees.--The 
Secretary shall submit a report on each quadrennial quality of life 
review to the Committees on Armed Services of the Senate and the House 
of Representatives. The report shall be submitted not later than 
September 30 of the year in which the review is conducted. The report 
shall include the following:
            ``(1) The results of the review, including a comprehensive 
        discussion of how the quality of life of members of the armed 
        forces affects the national security strategy of the United 
        States.
            ``(2) The long-term quality of life problems of the armed 
        forces, together with proposed solutions.
            ``(3) The short-term quality of life problems of the armed 
        forces, together with proposed solutions.
            ``(4) The assumptions used in the review.
            ``(5) The effects of quality of life problems on the morale 
        of the members of the armed forces.
            ``(6) The quality of life problems that affect the morale 
        of members of the reserve components in particular, together 
        with solutions.
            ``(7) The effects of quality of life problems on military 
        preparedness and readiness.
            ``(8) The appropriate ratio of--
                    ``(A) the total amount expended by the Department 
                of Defense in a fiscal year for programs, projects, and 
                activities designed to improve the quality of life of 
                members of the armed forces, to
                    ``(B) the total amount expended by the Department 
                of Defense in the fiscal year.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by adding at the end the following new item:

``488. Quadrennial quality of life review.''.

SEC. 1035. REPORTS ON EFFORTS TO RESOLVE WHEREABOUTS AND STATUS OF 
              CAPTAIN MICHAEL SCOTT SPEICHER, UNITED STATES NAVY.

    (a) Reports.-- Not later than 60 days after the date of the 
enactment of this Act, and every 90 days thereafter, the Secretary of 
Defense shall, in consultation with the Secretary of State and the 
Director of Central Intelligence, submit to Congress a report on the 
efforts of the United States Government to determine the whereabouts 
and status of Captain Michael Scott Speicher, United States Navy.
    (b) Period Covered by Reports.--The first report under subsection 
(a) shall cover efforts described in that subsection preceding the date 
of the report, and each subsequent report shall cover efforts described 
in that subsection during the 90-day period ending on the date of such 
report.
    (c) Report Elements.--Each report under subsection (a) shall 
describe, for the period covered by such report--
            (1) all direct and indirect contacts with the Government of 
        Iraq, or any successor government, regarding the whereabouts 
        and status of Michael Scott Speicher;
            (2) any request made to the government of another country, 
        including the intelligence service of such country, for 
        assistance in resolving the whereabouts and status of Michael 
        Scott Speicher, including the response to such request;
            (3) each current lead on the whereabouts and status of 
        Michael Scott Speicher, including an assessment of the utility 
        of such lead in resolving the whereabouts and status of Michael 
        Scott Speicher; and
            (4) any cooperation with nongovernmental organizations or 
        international organizations in resolving the whereabouts and 
        status of Michael Scott Speicher, including the results of such 
        cooperation.
    (d) Form of Reports.--Each report under subsection (a) shall be 
submitted in classified form, but may include an unclassified summary.

SEC. 1036. REPORT ON EFFORTS TO ENSURE ADEQUACY OF FIRE FIGHTING STAFFS 
              AT MILITARY INSTALLATIONS.

    Not later than Mary 31, 2003, the Secretary of Defense shall submit 
to Congress a report on the actions being undertaken to ensure that the 
fire fighting staffs at military installations are adequate under 
applicable Department of Defense regulations.

SEC. 1037. REPORT ON DESIGNATION OF CERTAIN LOUISIANA HIGHWAY AS 
              DEFENSE ACCESS ROAD.

    Not later than March 1, 2003, the Secretary of the Army shall 
submit to the congressional defense committees a report containing the 
results of a study on the advisability of designating Louisiana Highway 
28 between Alexandria, Louisiana, and Leesville, Louisiana, a road 
providing access to the Joint Readiness Training Center, Louisiana, and 
to Fort Polk, Louisiana, as a defense access road for purposes of 
section 210 of title 23, United States Code.

SEC. 1038. PLAN FOR FIVE-YEAR PROGRAM FOR ENHANCEMENT OF MEASUREMENT 
              AND SIGNATURES INTELLIGENCE CAPABILITIES.

    (a) Finding.--Congress finds that the national interest will be 
served by the rapid exploitation of basic research on sensors for 
purposes of enhancing the measurement and signatures intelligence 
(MASINT) capabilities of the Federal Government.
    (b) Plan for Program.--(1) Not later than March 30, 2003, the 
Director of the Central Measurement and Signatures Intelligence Office 
shall submit to Congress a plan for a five-year program of research 
intended to provide for the incorporation of the results of basic 
research on sensors into the measurement and signatures intelligence 
systems fielded by the Federal Government, including the review and 
assessment of basic research on sensors for that purpose.
    (2) Activities under the plan shall be carried out by a consortium 
consisting of such governmental and non-governmental entities as the 
Director considers appropriate for purposes of incorporating the 
broadest practicable range of sensor capabilities into the systems 
referred to in paragraph (1). The consortium may include national 
laboratories, universities, and private sector entities.
    (3) The plan shall include a proposal for the funding of activities 
under the plan, including cost-sharing by non-governmental participants 
in the consortium under paragraph (2).

SEC. 1039. REPORT ON VOLUNTEER SERVICES OF MEMBERS OF THE RESERVE 
              COMPONENTS IN EMERGENCY RESPONSE TO THE TERRORIST ATTACKS 
              OF SEPTEMBER 11, 2001.

    (a) Requirement for Report.--Not later than 90 days after the date 
of the enactment of this Act, the Secretary of Defense shall submit to 
the Committees on Armed Services of the Senate and the House of 
Representatives a report on volunteer services described in subsection 
(b) that were provided by members of the National Guard and other 
reserve components of the Armed Forces, while not in a duty status 
pursuant to orders, during the period of September 11 through 14, 2001. 
The report shall include a discussion of any personnel actions that the 
Secretary considers appropriate for the members regarding the 
performance of such services.
    (b) Covered Services.--The volunteer services referred to in 
subsection (a) are as follows:
            (1) Volunteer services provided in the vicinity of the site 
        of the World Trade Center, New York, New York, in support of 
        emergency response to the terrorist attack on the World Trade 
        Center on September 11, 2001.
            (2) Volunteer services provided in the vicinity of the 
        Pentagon in support of emergency response to the terrorist 
        attack on the Pentagon on September 11, 2001.

SEC. 1040. BIANNUAL REPORTS ON CONTRIBUTIONS TO PROLIFERATION OF 
              WEAPONS OF MASS DESTRUCTION AND DELIVERY SYSTEMS BY 
              COUNTRIES OF PROLIFERATION CONCERN.

    (a) Reports.--Not later than six months after the date of the 
enactment of this Act, and every six months thereafter, the President 
shall submit to Congress a report identifying each foreign person that, 
during the six-month period ending on the date of such report, made a 
material contribution to the development by a country of proliferation 
concern of--
            (1) nuclear, biological, or chemical weapons; or
            (2) ballistic or cruise missile systems.
    (b) Form of Submittal.--(1) A report under subsection (a) may be 
submitted in classified form, whether in whole or in part, if the 
President determines that submittal in that form is advisable.
    (2) Any portion of a report under subsection (a) that is submitted 
in classified form shall be accompanied by an unclassified summary of 
such portion.
    (c) Definitions.--In this section:
            (1) The term ``foreign person'' means--
                    (A) a natural person that is an alien;
                    (B) a corporation, business association, 
                partnership, society, trust, or any other 
                nongovernmental entity, organization, or group that is 
                organized under the laws of a foreign country or has 
                its principal place of business in a foreign country;
                    (C) any foreign governmental entity operating as a 
                business enterprise; and
                    (D) any successor, subunit, or subsidiary of any 
                entity described in subparagraph (B) or (C).
            (2) The term ``country of proliferation concern'' means any 
        country identified by the Director of Central Intelligence as 
        having engaged in the acquisition of dual-use and other 
        technology useful for the development or production of weapons 
        of mass destruction (including nuclear, chemical, and 
        biological weapons) and advanced conventional munitions in the 
        most current report under section 721 of the Combatting 
        Proliferation of Weapons of Mass Destruction Act of 1996 (title 
        VII of Public Law 104-293; 50 U.S.C. 2366), or any successor 
        report on the acquisition by foreign countries of dual-use and 
        other technology useful for the development or production of 
        weapons of mass destruction.

                      Subtitle D--Homeland Defense

SEC. 1041. HOMELAND SECURITY ACTIVITIES OF THE NATIONAL GUARD.

    (a) Authority.--Chapter 1 of title 32, United States Code, is 
amended by adding at the end the following new section:
``Sec. 116. Homeland security activities
    ``(a) Use of Personnel Performing Full-Time National Guard Duty.--
The Governor of a State may, upon the request by the head of a Federal 
law enforcement agency and with the concurrence of the Secretary of 
Defense, order any personnel of the National Guard of the State to 
perform full-time National Guard duty under section 502(f) of this 
title for the purpose of carrying out homeland security activities, as 
described in subsection (b).
    ``(b) Purpose and Duration.--(1) The purpose for the use of 
personnel of the National Guard of a State under this section is to 
temporarily provide trained and disciplined personnel to a Federal law 
enforcement agency to assist that agency in carrying out homeland 
security activities until that agency is able to recruit and train a 
sufficient force of Federal employees to perform the homeland security 
activities.
    ``(2) The duration of the use of the National Guard of a State 
under this section shall be limited to a period of 179 days. The 
Governor of the State may, with the concurrence of the Secretary of 
Defense, extend the period one time for an additional 90 days to meet 
extraordinary circumstances.
    ``(c) Relationship to Required Training.--A member of the National 
Guard serving on full-time National Guard duty under orders authorized 
under subsection (a) shall participate in the training required under 
section 502(a) of this title in addition to the duty performed for the 
purpose authorized under that subsection. The pay, allowances, and 
other benefits of the member while participating in the training shall 
be the same as those to which the member is entitled while performing 
duty for the purpose of carrying out homeland security activities. The 
member is not entitled to additional pay, allowances, or other benefits 
for participation in training required under section 502(a)(1) of this 
title.
    ``(d) Readiness.--To ensure that the use of units and personnel of 
the National Guard of a State for homeland security activities does not 
degrade the training and readiness of such units and personnel, the 
following requirements shall apply in determining the homeland security 
activities that units and personnel of the National Guard of a State 
may perform:
            ``(1) The performance of the activities may not adversely 
        affect the quality of that training or otherwise interfere with 
        the ability of a member or unit of the National Guard to 
        perform the military functions of the member or unit.
            ``(2) National Guard personnel will not degrade their 
        military skills as a result of performing the activities.
            ``(3) The performance of the activities will not result in 
        a significant increase in the cost of training.
            ``(4) In the case of homeland security performed by a unit 
        organized to serve as a unit, the activities will support valid 
        unit training requirements.
    ``(e) Payment of Costs.--(1) The Secretary of Defense shall provide 
funds to the Governor of a State to pay costs of the use of personnel 
of the National Guard of the State for the performance of homeland 
security activities under this section. Such funds shall be used for 
the following costs:
            ``(A) The pay, allowances, clothing, subsistence, 
        gratuities, travel, and related expenses (including all 
        associated training expenses, as determined by the Secretary), 
        as authorized by State law, of personnel of the National Guard 
        of that State used, while not in Federal service, for the 
        purpose of homeland security activities.
            ``(B) The operation and maintenance of the equipment and 
        facilities of the National Guard of that State used for the 
        purpose of homeland security activities.
    ``(2) The Secretary of Defense shall require the head of a law 
enforcement agency receiving support from the National Guard of a State 
in the performance of homeland security activities under this section 
to reimburse the Department of Defense for the payments made to the 
State for such support under paragraph (1).
    ``(f) Memorandum of Agreement.--The Secretary of Defense and the 
Governor of a State shall enter into a memorandum of agreement with the 
head of each Federal law enforcement agency to which the personnel of 
the National Guard of that State are to provide support in the 
performance of homeland security activities under this section. The 
memorandum of agreement shall--
            ``(1) specify how personnel of the National Guard are to be 
        used in homeland security activities;
            ``(2) include a certification by the Adjutant General of 
        the State that those activities are to be performed at a time 
        when the personnel are not in Federal service;
            ``(3) include a certification by the Adjutant General of 
        the State that--
                    ``(A) participation by National Guard personnel in 
                those activities is service in addition to training 
                required under section 502 of this title; and
                    ``(B) the requirements of subsection (d) of this 
                section will be satisfied;
            ``(4) include a certification by the Attorney General of 
        the State (or, in the case of a State with no position of 
        Attorney General, a civilian official of the State equivalent 
        to a State attorney general), that the use of the National 
        Guard of the State for the activities provided for under the 
        memorandum of agreement is authorized by, and is consistent 
        with, State law;
            ``(5) include a certification by the Governor of the State 
        or a civilian law enforcement official of the State designated 
        by the Governor that the activities provided for under the 
        memorandum of agreement serve a State law enforcement purpose; 
        and
            ``(6) include a certification by the head of the Federal 
        law enforcement agency that the agency will have a plan to 
        ensure that the agency's requirement for National Guard support 
        ends not later than 179 days after the commencement of the 
        support.
    ``(g) Exclusion From End-Strength Computation.--Notwithstanding any 
other provision of law, members of the National Guard on active duty or 
full-time National Guard duty for the purposes of administering (or 
during fiscal year 2003 otherwise implementing) this section shall not 
be counted toward the annual end strength authorized for reserves on 
active duty in support of the reserve components of the armed forces or 
toward the strengths authorized in sections 12011 and 12012 of title 
10.
    ``(h) Annual Report.--The Secretary of Defense shall submit to 
Congress an annual report regarding any assistance provided and 
activities carried out under this section during the preceding fiscal 
year. The report shall include the following:
            ``(1) The number of members of the National Guard excluded 
        under subsection (g) from the computation of end strengths.
            ``(2) A description of the homeland security activities 
        conducted with funds provided under this section.
            ``(3) An accounting of the amount of funds provided to each 
        State.
            ``(4) A description of the effect on military training and 
        readiness of using units and personnel of the National Guard to 
        perform homeland security activities under this section.
    ``(i) Statutory Construction.--Nothing in this section shall be 
construed as a limitation on the authority of any unit of the National 
Guard of a State, when such unit is not in Federal service, to perform 
law enforcement functions authorized to be performed by the National 
Guard by the laws of the State concerned.
    ``(j) Definitions.--For purposes of this section:
            ``(1) The term `Governor of a State' means, in the case of 
        the District of Columbia, the Commanding General of the 
        National Guard of the District of Columbia.
            ``(2) The term `State' means each of the several States, 
        the District of Columbia, the Commonwealth of Puerto Rico, or a 
        territory or possession of the United States.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such section is amended by adding at the end the following new item:

``116. Homeland security activities.''.

SEC. 1042. CONDITIONS FOR USE OF FULL-TIME RESERVES TO PERFORM DUTIES 
              RELATING TO DEFENSE AGAINST WEAPONS OF MASS DESTRUCTION.

    Section 12310(c)(3) of title 10, United States Code, is amended by 
striking ``only--'' and all that follows through ``(B) while assigned'' 
and inserting ``only while assigned''.

SEC. 1043. WEAPON OF MASS DESTRUCTION DEFINED FOR PURPOSES OF THE 
              AUTHORITY FOR USE OF RESERVES TO PERFORM DUTIES RELATING 
              TO DEFENSE AGAINST WEAPONS OF MASS DESTRUCTION.

    (a) Weapon of Mass Destruction Redefined.--Section 12304(i)(2) of 
title 10, United States Code, is amended to read as follows:
            ``(2) The term `weapon of mass destruction' means--
                    ``(A) any weapon that is designed or, through its 
                use, is intended to cause death or serious bodily 
                injury through the release, dissemination, or impact of 
                toxic or poisonous chemicals or their precursors;
                    ``(B) any weapon that involves a disease organism;
                    ``(C) any weapon that is designed to release 
                radiation or radioactivity at a level dangerous to 
                human life; and
                    ``(D) any large conventional explosive that is 
                designed to produce catastrophic loss of life or 
                property.''.
    (b) Conforming Amendment.--Section 12310(c)(1) of such title is 
amended by striking ``section 1403 of the Defense Against Weapons of 
Mass Destruction Act of 1996 (50 U.S.C. 2302(1))'' and inserting 
``section 12304(i)(2) of this title''.

SEC. 1044. REPORT ON DEPARTMENT OF DEFENSE HOMELAND DEFENSE ACTIVITIES.

    (a) Report Required.--Not later than February 1, 2003, the 
Secretary of Defense shall submit to the congressional defense 
committees a report on what actions of the Department of Defense would 
be necessary to carry out the Secretary's expressed intent--
            (1) to place new emphasis on the unique operational demands 
        associated with the defense of the United States homeland; and
            (2) to restore the mission of defense of the United States 
        to the position of being the primary mission of the Department 
        of Defense.
    (b) Content of the Report.--The report shall contain, in accordance 
with the other provisions of this section, the following matters:
            (1) Homeland defense campaign plan.--A homeland defense 
        campaign plan.
            (2) Intelligence.--A discussion of the relationship 
        between--
                    (A) the intelligence capabilities of--
                            (i) the Department of Defense; and
                            (ii) other departments and agencies of the 
                        United States; and
                    (B) the performance of the homeland defense 
                mission.
            (3) Threat and vulnerability assessment.--A compliance-
        based national threat and vulnerability assessment.
            (4) Training and exercising.--A discussion of the 
        Department of Defense plans for training and exercising for the 
        performance of the homeland defense mission.
            (5) Bioterrorism initiative.--An evaluation of the need for 
        a Department of Defense bioterrorism initiative to improve the 
        ability of the department to counter bioterror threats and to 
        assist other agencies to improve the national ability to 
        counter bioterror threats.
            (6) Chemical biological incident response teams.--An 
        evaluation of the need for and feasibility of developing and 
        fielding Department of Defense regional chemical biological 
        incident response teams.
            (7) Other matters.--Any other matters that the Secretary of 
        Defense considers relevant regarding the efforts necessary to 
        carry out the intent referred to in subsection (a).
    (c) Homeland Defense Campaign Plan.--
            (1) Organization, planning, and interoperability.--
                    (A) In general.--The homeland defense campaign plan 
                under subsection (b)(1) shall contain a discussion of 
                the organization and planning of the Department of 
                Defense for homeland defense, including the 
                expectations for interoperability of the Department of 
                Defense with other departments and agencies of the 
                Federal Government and with State and local 
                governments.
                    (B) Content.--The plan shall include the following 
                matters:
                            (i) The duties, definitions, missions, 
                        goals, and objectives of organizations in the 
                        Department of Defense that apply homeland 
                        defense, together with an organizational 
                        assessment with respect to the performance of 
                        the homeland defense mission and a discussion 
                        of any plans for making functional realignments 
                        of organizations, authorities, and 
                        responsibilities for carrying out that mission.
                            (ii) The relationships among the leaders of 
                        the organizations (including the Secretary of 
                        Defense, the Joint Chiefs of Staff, the 
                        Commander in Chief of United States Northern 
                        Command, the Commanders in Chief of the other 
                        regional unified combatant commands, and the 
                        reserve components) in the performance of such 
                        duties.
                            (iii) The reviews, evaluations, and 
                        standards that are established or are to be 
                        established for determining and ensuring the 
                        readiness of the organizations to perform such 
                        duties.
            (2) Response to attack on critical infrastructure.--
                    (A) In general.--The homeland defense campaign plan 
                shall contain an outline of the duties and capabilities 
                of the Department of Defense for responding to an 
                attack on critical infrastructure of the United States, 
                including responding to an attack on critical 
                infrastructure of the department, by means of a weapon 
                of mass destruction or a CBRNE weapon or by a cyber 
                means.
                    (B) Various attack scenarios.--The outline shall 
                specify, for each major category of attack by a means 
                described in subparagraph (A), the variations in the 
                duties, responses, and capabilities of the various 
                Department of Defense organizations that result from 
                the variations in the means of the attack.
                    (C) Deficiencies.--The outline shall identify any 
                deficiencies in capabilities and set forth a plan for 
                rectifying any such deficiencies.
                    (D) Legal impediments.--The outline shall identify 
                and discuss each impediment in law to the effective 
                performance of the homeland defense mission.
            (3) Roles and responsibilities in interagency process.--
                    (A) In general.--The homeland defense campaign plan 
                shall contain a discussion of the roles and 
                responsibilities of the Department of Defense in the 
                interagency process of policymaking and planning for 
                homeland defense.
                    (B) Integration with state and local activities.--
                The homeland defense campaign plan shall include a 
                discussion of Department of Defense plans to integrate 
                Department of Defense homeland defense activities with 
                the homeland defense activities of other departments 
                and agencies of the United States and the homeland 
                defense activities of State and local governments, 
                particularly with regard to issues relating to CBRNE 
                and cyber attacks.
    (d) Intelligence Capabilities.--The discussion of the relationship 
between the intelligence capabilities and the performance of the 
homeland defense mission under subsection (b)(2) shall include the 
following matters:
            (1) Roles and missions.--The roles and missions of the 
        Department of Defense for the employment of the intelligence 
        capabilities of the department in homeland defense.
            (2) Interagency relationships.--A discussion of the 
        relationship between the Department of Defense and the other 
        departments and agencies of the United States that have duties 
        for collecting or analyzing intelligence in relation to 
        homeland defense, particularly in light of the conflicting 
        demands of duties relating to the collection and analysis of 
        domestic intelligence and duties relating to the collection and 
        analysis of foreign intelligence.
            (3) Intelligence-related changes.--Any changes that are 
        necessary in the Department of Defense in order to provide 
        effective intelligence support for the performance of homeland 
        defense missions, with respect to--
                    (A) the preparation of threat assessments and other 
                warning products by the Department of Defense;
                    (B) collection of terrorism-related intelligence 
                through human intelligence sources, signals 
                intelligence sources, and other intelligence sources; 
                and
                    (C) intelligence policy, capabilities, and 
                practices.
            (4) Legal impediments.--Any impediments in law to the 
        effective performance of intelligence missions in support of 
        homeland defense.
    (e) Threat and Vulnerability Assessment.--
            (1) Content.--The compliance-based national threat and 
        vulnerability assessment under subsection (b)(3) shall include 
        a discussion of the following matters:
                    (A) Critical facilities.--The threat of terrorist 
                attack on critical facilities, programs, and systems of 
                the United States, together with the capabilities of 
                the Department of Defense to deter and respond to any 
                such attack.
                    (B) DoD vulnerability.--The vulnerability of 
                installations, facilities, and personnel of the 
                Department of Defense to attack by persons using 
                weapons of mass destruction, CBRNE weapons, or cyber 
                means.
                    (C) Balanced survivability assessment.--Plans to 
                conduct a balanced survivability assessment for use in 
                determining the vulnerabilities of targets referred to 
                in subparagraphs (A) and (B).
                    (D) Process.--Plans, including timelines and 
                milestones, necessary to develop a process for 
                conducting compliance-based vulnerability assessments 
                for critical infrastructure, together with the 
                standards to be used for ensuring that the process is 
                executable.
            (2) Definition of compliance-based.--In subsection (b)(3) 
        and paragraph (1)(D) of this subsection, the term ``compliance-
        based'', with respect to an assessment, means that the 
        assessment is conducted under policies and procedures that 
        require correction of each deficiency identified in the 
        assessment to a standard set forth in Department of Defense 
        Instruction 2000.16 or another applicable Department of Defense 
        instruction, directive, or policy.
    (f) Training and Exercising.--The discussion of the Department of 
Defense plans for training and exercising for the performance of the 
homeland defense mission under subsection (b)(4) shall contain the 
following matters:
            (1) Military education.--The plans for the training and 
        education of members of the Armed Forces specifically for 
        performance of homeland defense missions, including any 
        anticipated changes in the curriculum in--
                    (A) the National Defense University, the war 
                colleges of the Armed Forces, graduate education 
                programs, and other senior military schools and 
                education programs; and
                    (B) the Reserve Officers' Training Corps program, 
                officer candidate schools, enlisted and officer basic 
                and advanced individual training programs, and other 
                entry level military education and training programs.
            (2) Exercises.--The plans for using exercises and 
        simulation in the training of all components of the Armed 
        Forces, including--
                    (A) plans for integrated training with departments 
                and agencies of the United States outside the 
                Department of Defense and with agencies of State and 
                local governments; and
                    (B) plans for developing an opposing force that, 
                for the purpose of developing potential scenarios of 
                terrorist attacks on targets inside the United States, 
                simulates a terrorist group having the capability to 
                engage in such attacks.
    (g) Bioterrorism Initiative.--The evaluation of the need for a 
Department of Defense bioterrorism initiative under subsection (b)(5) 
shall include a discussion that identifies and evaluates options for 
potential action in such an initiative, as follows:
            (1) Planning, training, exercise, evaluation, and 
        funding.--Options for--
                    (A) refining the plans of the Department of Defense 
                for biodefense to include participation of other 
                departments and agencies of the United States and State 
                and local governments;
                    (B) increasing biodefense training, exercises, and 
                readiness evaluations by the Department of Defense, 
                including training, exercises, and evaluations that 
                include participation of other departments and agencies 
                of the United States and State and local governments;
                    (C) increasing Department of Defense funding for 
                biodefense; and
                    (D) integrating other departments and agencies of 
                the United States and State and local governments into 
                the plans, training, exercises, evaluations, and 
                resourcing.
            (2) Disease surveillance.--Options for the Department of 
        Defense to develop an integrated disease surveillance detection 
        system and to improve systems for communicating information and 
        warnings of the incidence of disease to recipients within the 
        Department of Defense and to other departments and agencies of 
        the United States and State and local governments.
            (3) Emergency management standard.--Options for broadening 
        the scope of the Revised Emergency Management Standard of the 
        Joint Commission on Accreditation of Healthcare Organizations 
        by including the broad and active participation of Federal, 
        State, and local governmental agencies that are expected to 
        respond in any event of a CBRNE or cyber attack.
            (4) Laboratory response network.--Options for the 
        Department of Defense--
                    (A) to participate in the laboratory response 
                network for bioterrorism; and
                    (B) to increase the capacity of Department of 
                Defense laboratories rated by the Secretary of Defense 
                as level D laboratories to facilitate participation in 
                the network.
    (h) Chemical Biological Incident Response Teams.--The evaluation of 
the need for and feasibility of developing and fielding Department of 
Defense regional chemical biological incident response teams under 
subsection (b)(6) shall include a discussion and evaluation of the 
following options:
            (1) Regional teams.--Options for the Department of Defense, 
        using the chemical biological incident response force as a 
        model, to develop, equip, train, and provide transportation for 
        five United States based, strategically located, regional 
        chemical biological incident response teams.
            (2) Resourcing.--Options and preferred methods for 
        providing the resources and personnel necessary for developing 
        and fielding any such teams.
    (i) Definitions.--In this section:
            (1) CBRNE.--The term ``CBRNE'' means chemical, biological, 
        radiological, nuclear, or explosive.
            (2) Weapon of mass destruction.--The term ``weapon of mass 
        destruction'' has the meaning given such term in section 1403 
        of the Defense Against Weapons of Mass Destruction Act of 1996 
        (50 U.S.C. 2302).

SEC. 1045. STRATEGY FOR IMPROVING PREPAREDNESS OF MILITARY 
              INSTALLATIONS FOR INCIDENTS INVOLVING WEAPONS OF MASS 
              DESTRUCTION.

    (a) Comprehensive Plan.--The Secretary of Defense shall develop a 
comprehensive plan for improving the preparedness of military 
installations for preventing and responding to incidents involving use 
or threat of use of weapons of mass destruction.
    (b) Content.--The comprehensive plan shall set forth the following:
            (1) A strategy that--
                    (A) identifies--
                            (i) long-term goals and objectives;
                            (ii) resource requirements; and
                            (iii) factors beyond the control of the 
                        Secretary that could impede the achievement of 
                        the goals and objectives; and
                    (B) includes a discussion of--
                            (i) the extent to which local, regional, or 
                        national military response capabilities are to 
                        be developed and used; and
                            (ii) how the Secretary will coordinate 
                        these capabilities with local, regional, or 
                        national civilian capabilities.
            (2) A performance plan that--
                    (A) provides a reasonable schedule, with 
                milestones, for achieving the goals and objectives of 
                the strategy;
                    (B) performance criteria for measuring progress in 
                achieving the goals and objectives;
                    (C) a description of the process, together with a 
                discussion of the resources, necessary to achieve the 
                goals and objectives;
                    (D) a description of the process for evaluating 
                results.
    (c) Submittal to Congress.--The Secretary shall submit the 
comprehensive plan to the Committees on Armed Services of the Senate 
and the House of Representatives not later than 180 days after the date 
of the enactment of this Act.
    (d) Comptroller General Review and Report.--Not later than 60 days 
after the Secretary submits the comprehensive plan to Congress under 
subsection (c), the Comptroller General shall review the plan and 
submit an assessment of the plan to the committees referred to in that 
subsection.
    (e) Annual Report.--(1) In each of 2004, 2005, and 2006, the 
Secretary of Defense shall include a report on the comprehensive plan 
in the materials that the Secretary submits to Congress in support of 
the budget submitted by the President such year pursuant to section 
1105(a) of title 31, United States Code.
    (2) The report shall include--
            (A) a discussion of any revision that the Secretary has 
        made in the comprehensive plan since the last report; and
            (B) an assessment of the progress made in achieving the 
        goals and objectives of the strategy set forth in the plan.
    (3) No report is required under this subsection after the Secretary 
submits under this subsection a report containing a declaration that 
the goals and objectives set forth in the strategy have been achieved.

                       Subtitle E--Other Matters

SEC. 1061. CONTINUED APPLICABILITY OF EXPIRING GOVERNMENTWIDE 
              INFORMATION SECURITY REQUIREMENTS TO THE DEPARTMENT OF 
              DEFENSE.

    (a) In General.--Chapter 131 of title 10, United States Code, is 
amended by inserting after section 2224 the following new section:
``Sec. 2224a. Information security: continued applicability of expiring 
              Governmentwide requirements to the Department of Defense
    ``(a) In General.--The provisions of subchapter II of chapter 35 of 
title 44 shall continue to apply with respect to the Department of 
Defense, notwithstanding the expiration of authority under section 3536 
of such title.
    ``(b) Responsibilities.--In administering the provisions of 
subchapter II of chapter 35 of title 44 with respect to the Department 
of Defense after the expiration of authority under section 3536 of such 
title, the Secretary of Defense shall perform the duties set forth in 
that subchapter for the Director of the Office of Management and 
Budget.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by inserting after the item relating to section 
2224 the following new item:

``2224a. Information security: continued applicability of expiring 
                            Governmentwide requirements to the 
                            Department of Defense.''.

SEC. 1062. ACCEPTANCE OF VOLUNTARY SERVICES OF PROCTORS FOR 
              ADMINISTRATION OF ARMED SERVICES VOCATIONAL APTITUDE 
              BATTERY.

    Section 1588(a) of title 10, United States Code, is amended by 
adding at the end the following new paragraph:
            ``(6) Voluntary services as a proctor for the 
        administration of the Armed Services Vocational Aptitude 
        Battery.''.

SEC. 1063. EXTENSION OF AUTHORITY FOR SECRETARY OF DEFENSE TO SELL 
              AIRCRAFT AND AIRCRAFT PARTS FOR USE IN RESPONDING TO OIL 
              SPILLS.

    (a) Four-Year Extension.--Subsection (a)(1) of section 740 of the 
Wendell H. Ford Aviation Investment and Reform Act for the 21st Century 
(Public Law 106-181; 114 Stat. 173; 10 U.S.C. 2576 note) is amended by 
striking ``September 30, 2002'' and inserting ``September 30, 2006''.
    (b) Additional Report.--Subsection (f) of such section is amended 
by striking ``March 31, 2002'' and inserting ``March 31, 2006''.

SEC. 1064. AMENDMENTS TO IMPACT AID PROGRAM.

    (a) Eligibility for Heavily Impacted Local Educational Agencies 
Affected by Privatization of Military Housing.--Section 8003(b)(2) of 
the Elementary and Secondary Education Act of 1965 (20 U.S.C. 
7703(b)(2)) is amended by adding at the end the following:
                    ``(H) Eligibility for heavily impacted local 
                educational agencies affected by privatization of 
                military housing.--
                            ``(i) In general.--For any fiscal year 
                        beginning with fiscal year 2003, a heavily 
                        impacted local educational agency that received 
                        a basic support payment under subparagraph (A) 
                        for the prior fiscal year, but is ineligible 
                        for such payment for the current fiscal year 
                        under subparagraph (B) or (C), as the case may 
                        be, by reason of the conversion of military 
                        housing units to private housing described in 
                        clause (ii), shall be deemed to meet the 
                        eligibility requirements under subparagraph (B) 
                        or (C), as the case may be, for the period 
                        during which the housing units are undergoing 
                        such conversion, and shall be paid under the 
                        same provisions of subparagraph (D) or (E) as 
                        the agency was paid in the prior fiscal year.
                            ``(ii) Conversion of military housing units 
                        to private housing described.--For purposes of 
                        clause (i), `conversion of military housing 
                        units to private housing' means the conversion 
                        of military housing units to private housing 
                        units pursuant to subchapter IV of chapter 169 
                        of title 10, United States Code, or pursuant to 
                        any other related provision of law.''.
    (b) Coterminous Military School Districts.--Section 8003(a) of the 
Elementary and Secondary Education Act of 1965 (20 U.S.C. 7703(a)) is 
amended by adding at the end the following:
            ``(6) Coterminous military school districts.--For purposes 
        of computing the amount of a payment for a local educational 
        agency for children described in paragraph (1)(D)(i), the 
        Secretary shall consider such children to be children described 
        in paragraph (1)(B) if the agency is a local educational agency 
        whose boundaries are the same as a Federal military 
        installation.''.

SEC. 1065. DISCLOSURE OF INFORMATION ON SHIPBOARD HAZARD AND DEFENSE 
              PROJECT TO DEPARTMENT OF VETERANS AFFAIRS.

    (a) Plan for Disclosure of Information.--Not later than 90 days 
after the date of the enactment of this Act, the Secretary of Defense 
shall submit to Congress and the Secretary of Veterans Affairs a 
comprehensive plan for the review, declassification, and submittal to 
the Department of Veterans Affairs of all medical records and 
information of the Department of Defense on the Shipboard Hazard and 
Defense (SHAD) project of the Navy that are relevant to the provision 
of benefits by the Secretary of Veterans Affairs to members of the 
Armed Forces who participated in that project.
    (b) Plan Requirements.--(1) The records and information covered by 
the plan under subsection (a) shall be the records and information 
necessary to permit the identification of members of the Armed Forces 
who were or may have been exposed to chemical or biological agents as a 
result of the Shipboard Hazard and Defense project.
    (2) The plan shall provide for completion of all activities 
contemplated by the plan not later than one year after the date of the 
enactment of this Act.
    (c) Reports on Implementation.--(1) Not later than 90 days after 
the date of the enactment of this Act, and every 90 days thereafter 
until completion of all activities contemplated by the plan under 
subsection (a), the Secretary of Defense shall submit to Congress and 
the Secretary of Veterans Affairs a report on progress in the 
implementation of the plan during the 90-day period ending on the date 
of such report.
    (2) Each report under paragraph (1) shall include, for the period 
covered by such report--
            (A) the number of records reviewed;
            (B) each test, if any, under the Shipboard Hazard and 
        Defense project identified during such review;
            (C) for each test so identified--
                    (i) the test name;
                    (ii) the test objective;
                    (iii) the chemical or biological agent or agents 
                involved; and
                    (iv) the number of members of the Armed Forces, and 
                civilian personnel, potentially effected by such test; 
                and
            (D) the extent of submittal of records and information to 
        the Secretary of Veterans Affairs under this section.

SEC. 1066. TRANSFER OF HISTORIC DF-9E PANTHER AIRCRAFT TO WOMEN 
              AIRFORCE SERVICE PILOTS MUSEUM.

    (a) Authority to Convey.--The Secretary of the Navy may convey, 
without consideration, to the Women Airforce Service Pilots Museum in 
Quartzsite, Arizona (in this section referred to as the ``W.A.S.P. 
museum''), all right, title, and interest of the United States in and 
to a DF-9E Panther aircraft (Bureau Number 125316). The conveyance 
shall be made by means of a conditional deed of gift.
    (b) Condition of Aircraft.--The aircraft shall be conveyed under 
subsection (a) in ``as is'' condition. The Secretary is not required to 
repair or alter the condition of the aircraft before conveying 
ownership of the aircraft.
    (c) Reverter Upon Breach of Conditions.--The Secretary shall 
include in the instrument of conveyance of the aircraft under 
subsection (a)--
            (1) a condition that the W.A.S.P. museum not convey any 
        ownership interest in, or transfer possession of, the aircraft 
        to any other party without the prior approval of the Secretary; 
        and
            (2) a condition that if the Secretary determines at any 
        time that the W.A.S.P. museum has conveyed an ownership 
        interest in, or transferred possession of, the aircraft to any 
        other party without the prior approval of the Secretary, all 
        right, title, and interest in and to the aircraft, including 
        any repair or alteration of the aircraft, shall revert to the 
        United States, and the United States shall have the right of 
        immediate possession of the aircraft.
    (d) Conveyance at No Cost to the United States.--The conveyance of 
the aircraft under subsection (a) shall be made at no cost to the 
United States. Any costs associated with the conveyance, costs of 
determining compliance with subsection (b), and costs of operation and 
maintenance of the aircraft conveyed shall be borne by the W.A.S.P. 
museum.
    (e) Additional Terms and Conditions.--The Secretary may require 
such additional terms and conditions in connection with a conveyance 
under this section as the Secretary considers appropriate to protect 
the interests of the United States.

SEC. 1067. REWARDS FOR ASSISTANCE IN COMBATING TERRORISM.

    (a) Authority.--Chapter 3 of title 10, United States Code, is 
amended by inserting after section 127a the following new section:
``Sec. 127b. Rewards for assistance in combating terrorism
    ``(a) Authority.--The Secretary of Defense may pay a monetary 
reward to a person for providing United States personnel with 
information or nonlethal assistance that is beneficial to--
            ``(1) an operation of the armed forces conducted outside 
        the United States against international terrorism; or
            ``(2) force protection of the armed forces.
    ``(b) Maximum Amount.--The amount of a reward paid to a recipient 
under this section may not exceed $200,000.
    ``(c) Delegation to Commander of Combatant Command.--(1) The 
Secretary of Defense may delegate to the commander of a combatant 
command authority to pay a reward under this section in an amount not 
in excess of $50,000.
    ``(2) A commander to whom authority to pay rewards is delegated 
under paragraph (1) may further delegate authority to pay a reward 
under this section in an amount not in excess of $2,500.
    ``(c) Coordination.--(1) The Secretary of Defense, in consultation 
with the Secretary of State and the Attorney General, shall prescribe 
policies and procedures for offering and paying rewards under this 
section, and otherwise for administering the authority under this 
section, that ensure that the payment of a reward under this section 
does not duplicate or interfere with the payment of a reward authorized 
by the Secretary of State or the Attorney General.
    ``(2) The Secretary of Defense shall coordinate with the Secretary 
of State regarding any payment of a reward in excess of $100,000 under 
this section.
    ``(d) Persons Not Eligible.--The following persons are not eligible 
to receive an award under this section:
            ``(1) A citizen of the United States.
            ``(2) An employee of the United States.
            ``(3) An employee of a contractor of the United States.
    ``(e) Annual Report.--(1) Not later than 60 days after the end of 
each fiscal year, the Secretary of Defense shall submit to the 
Committees on Armed Services and the Committees on Appropriations of 
the Senate and the House of Representatives a report on the 
administration of the rewards program during that fiscal year.
    ``(2) The report for a fiscal year shall include information on the 
total amount expended during that fiscal year to carry out this 
section, including--
            ``(A) a specification of the amount, if any, expended to 
        publicize the availability of rewards; and
            ``(B) with respect to each award paid during that fiscal 
        year--
                    ``(i) the amount of the reward;
                    ``(ii) the recipient of the reward; and
                    ``(iii) a description of the information or 
                assistance for which the reward was paid, together with 
                an assessment of the significance of the information or 
                assistance.
    ``(3) The Secretary may submit the report in classified form if the 
Secretary determines that it is necessary to do so.
    ``(f) Determinations by the Secretary.--A determination by the 
Secretary under this section shall be final and conclusive and shall 
not be subject to judicial review.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by inserting after the item relating to section 
127a the following new item:

        ``127b. Rewards for assistance in combating terrorism.''.

SEC. 1068. PROVISION OF SPACE AND SERVICES TO MILITARY WELFARE 
              SOCIETIES.

    (a) Authority To Provide Space and Services.--Chapter 152 of title 
10, United States Code, is amended by adding at the end the following 
new section:
``Sec. 2566. Space and services: provision to military welfare 
              societies
    ``(a) Authority To Provide Space and Services.--The Secretary of a 
military department may provide, without charge, space and services 
under the jurisdiction of that Secretary to a military welfare society.
    ``(b) Definitions.--In this section:
            ``(1) The term `military welfare society' means the 
        following:
                    ``(A) The Army Emergency Relief Society.
                    ``(B) The Navy-Marine Corps Relief Society.
                    ``(C) The Air Force Aid Society, Inc.
            ``(2) The term `services' includes lighting, heating, 
        cooling, electricity, office furniture, office machines and 
        equipment, telephone and other information technology services 
        (including installation of lines and equipment, connectivity, 
        and other associated services), and security systems (including 
        installation and other associated expenses).''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by adding at the end the following new item:

``2566. Space and services: provision to military welfare societies.''.

SEC. 1069. COMMENDATION OF MILITARY CHAPLAINS.

    (a) Findings.--Congress finds the following:
            (1) Military chaplains have served with those who fought 
        for the cause of freedom since the founding of the Nation.
            (2) Military chaplains and religious support personnel of 
        the Armed Forces have served with distinction as uniformed 
        members of the Armed Forces in support of the Nation's defense 
        missions during every conflict in the history of the United 
        States.
            (3) 400 United States military chaplains have died in 
        combat, some as a result of direct fire while ministering to 
        fallen Americans, while others made the ultimate sacrifice as a 
        prisoner of war.
            (4) Military chaplains currently serve in humanitarian 
        operations, rotational deployments, and in the war on 
        terrorism.
            (5) Religious organizations make up the very fabric of 
        religious diversity and represent unparalleled levels of 
        freedom of conscience, speech, and worship that set the United 
        States apart from any other nation on Earth.
            (6) Religious organizations have richly blessed the 
        uniformed services by sending clergy to comfort and encourage 
        all persons of faith in the Armed Forces.
            (7) During the sinking of the USS Dorchester in February 
        1943 during World War II, four chaplains (Reverend Fox, 
        Reverend Poling, Father Washington, and Rabbi Goode) gave their 
        lives so that others might live.
            (8) All military chaplains aid and assist members of the 
        Armed Forces and their family members with the challenging 
        issues of today's world.
            (9) The current war against terrorism has brought to the 
        shores of the United States new threats and concerns that 
        strike at the beliefs and emotions of Americans.
            (10) Military chaplains must, as never before, deal with 
        the spiritual well-being of the members of the Armed Forces and 
        their families.
    (b) Commendation.--Congress, on behalf of the Nation, expresses its 
appreciation for the outstanding contribution that all military 
chaplains make to the members of the Armed Forces and their families.
    (c) Presidential Proclamation.--The President is authorized and 
requested to issue a proclamation calling on the people of the United 
States to recognize the distinguished service of the Nation's military 
chaplains.

SEC. 1070. GRANT OF FEDERAL CHARTER TO KOREAN WAR VETERANS ASSOCIATION, 
              INCORPORATED.

    (a) Grant of Charter.--Part B of subtitle II of title 36, United 
States Code, is amended--
            (1) by striking the following:

                   ``CHAPTER 1201--[RESERVED]''; and

            (2) by inserting the following:

     ``CHAPTER 1201--KOREAN WAR VETERANS ASSOCIATION, INCORPORATED

``Sec.
``120101. Organization.
``120102. Purposes.
``120103. Membership.
``120104. Governing body.
``120105. Powers.
``120106. Restrictions.
``120107. Duty to maintain corporate and tax-exempt status.
``120108. Records and inspection.
``120109. Service of process.
``120110. Liability for acts of officers and agents.
``120111. Annual report.
``Sec. 120101. Organization
    ``(a) Federal Charter.--Korean War Veterans Association, 
Incorporated (in this chapter, the `corporation'), incorporated in the 
State of New York, is a federally chartered corporation.
    ``(b) Expiration of Charter.--If the corporation does not comply 
with the provisions of this chapter, the charter granted by subsection 
(a) expires.
``Sec. 120102. Purposes
    ``The purposes of the corporation are as provided in its articles 
of incorporation and include--
            ``(1) organizing, promoting, and maintaining for benevolent 
        and charitable purposes an association of persons who have seen 
        honorable service in the Armed Forces during the Korean War, 
        and of certain other persons;
            ``(2) providing a means of contact and communication among 
        members of the corporation;
            ``(3) promoting the establishment of, and establishing, war 
        and other memorials commemorative of persons who served in the 
        Armed Forces during the Korean War; and
            ``(4) aiding needy members of the corporation, their wives 
        and children, and the widows and children of persons who were 
        members of the corporation at the time of their death.
``Sec. 120103. Membership
    ``Eligibility for membership in the corporation, and the rights and 
privileges of members of the corporation, are as provided in the bylaws 
of the corporation.
``Sec. 120104. Governing body
    ``(a) Board of Directors.--The board of directors of the 
corporation, and the responsibilities of the board of directors, are as 
provided in the articles of incorporation of the corporation.
    ``(b) Officers.--The officers of the corporation, and the election 
of the officers of the corporation, are as provided in the articles of 
incorporation.
``Sec. 120105. Powers
    ``The corporation has only the powers provided in its bylaws and 
articles of incorporation filed in each State in which it is 
incorporated.
``Sec. 120106. Restrictions
    ``(a) Stock and Dividends.--The corporation may not issue stock or 
declare or pay a dividend.
    ``(b) Political Activities.--The corporation, or a director or 
officer of the corporation as such, may not contribute to, support, or 
participate in any political activity or in any manner attempt to 
influence legislation.
    ``(c) Loan.--The corporation may not make a loan to a director, 
officer, or employee of the corporation.
    ``(d) Claim of Governmental Approval or Authority.--The corporation 
may not claim congressional approval, or the authority of the United 
States, for any of its activities.
``Sec. 120107. Duty to maintain corporate and tax-exempt status
    ``(a) Corporate Status.--The corporation shall maintain its status 
as a corporation incorporated under the laws of the State of New York.
    ``(b) Tax-Exempt Status.--The corporation shall maintain its status 
as an organization exempt from taxation under the Internal Revenue Code 
of 1986 (26 U.S.C. 1 et seq.).
``Sec. 120108. Records and inspection
    ``(a) Records.--The corporation shall keep--
            ``(1) correct and complete records of account;
            ``(2) minutes of the proceedings of its members, board of 
        directors, and committees having any of the authority of its 
        board of directors; and
            ``(3) at its principal office, a record of the names and 
        addresses of its members entitled to vote on matters relating 
        to the corporation.
    ``(b) Inspection.--A member entitled to vote on matters relating to 
the corporation, or an agent or attorney of the member, may inspect the 
records of the corporation for any proper purpose, at any reasonable 
time.
``Sec. 120109. Service of process
    ``The corporation shall have a designated agent in the District of 
Columbia to receive service of process for the corporation. Notice to 
or service on the agent is notice to or service on the Corporation.
``Sec. 120110. Liability for acts of officers and agents
    ``The corporation is liable for the acts of its officers and agents 
acting within the scope of their authority.
``Sec. 120111. Annual report
    ``The corporation shall submit an annual report to Congress on the 
activities of the corporation during the preceding fiscal year. The 
report shall be submitted at the same time as the report of the audit 
required by section 10101 of this title. The report may not be printed 
as a public document.''.
    (b) Clerical Amendment.--The table of chapters at the beginning of 
subtitle II of title 36, United States Code, is amended by striking the 
item relating to chapter 1201 and inserting the following new item:

``1201. Korean War Veterans Association, Incorporated.......  120101''.

       TITLE XI--DEPARTMENT OF DEFENSE CIVILIAN PERSONNEL POLICY

SEC. 1101. EXTENSION OF AUTHORITY TO PAY SEVERANCE PAY IN A LUMP SUM.

    Section 5595(i)(4) of title 5, United States Code, is amended by 
striking ``October 1, 2003'' and inserting ``October 1, 2006''.

SEC. 1102. EXTENSION OF VOLUNTARY SEPARATION INCENTIVE PAY AUTHORITY.

    Section 5597(e) of title 5, United States Code, is amended by 
striking ``September 30, 2003'' and inserting ``September 30, 2006''.

SEC. 1103. EXTENSION OF COST-SHARING AUTHORITY FOR CONTINUED FEHBP 
              COVERAGE OF CERTAIN PERSONS AFTER SEPARATION FROM 
              EMPLOYMENT.

    Section 8905a(d)(4)(B) of title 5, United States Code, is amended--
            (1) by striking ``October 1, 2003'' both places it appears 
        and inserting ``October 1, 2006''; and
            (2) by striking ``February 1, 2004'' in clause (ii) and 
        inserting ``February 1, 2007''.

SEC. 1104. ELIGIBILITY OF NONAPPROPRIATED FUNDS EMPLOYEES TO 
              PARTICIPATE IN THE FEDERAL EMPLOYEES LONG-TERM CARE 
              INSURANCE PROGRAM.

    Section 9001(1) of title 5, United States Code, is amended--
            (1) by striking ``and'' at the end of subparagraph (B);
            (2) by striking the comma at the end of subparagraph (C) 
        and inserting ``; and''; and
            (3) by inserting after subparagraph (C) the following new 
        subparagraph:
                    ``(D) an employee paid from nonappropriated funds 
                referred to in section 2105(c) of this title;''.

SEC. 1105. INCREASED MAXIMUM PERIOD OF APPOINTMENT UNDER THE 
              EXPERIMENTAL PERSONNEL PROGRAM FOR SCIENTIFIC AND 
              TECHNICAL PERSONNEL.

    Section 1101(c)(1) of the Strom Thurmond National Defense 
Authorization Act for Fiscal Year 1999 (Public Law 105-261; 112 Stat. 
2140; 5 U.S.C. 3104 note) is amended by striking ``4 years'' and 
inserting ``5 years''.

SEC. 1106. QUALIFICATION REQUIREMENTS FOR EMPLOYMENT IN DEPARTMENT OF 
              DEFENSE PROFESSIONAL ACCOUNTING POSITIONS.

    (a) Professional Certification.--The Secretary of Defense may 
prescribe regulations that require a person employed in a professional 
accounting position within the Department of Defense to be a certified 
public accountant and that apply the requirement to all such positions 
or to selected positions, as the Secretary considers appropriate.
    (b) Waivers and Exemptions.--(1) The Secretary may include in the 
regulations imposing a requirement under subsection (a), as the 
Secretary considers appropriate--
            (A) any exemption from the requirement; and
            (B) authority to waive the requirement.
    (2) The Secretary shall include in the regulations an exemption for 
persons employed in positions covered by the requirement before the 
date of the enactment of this Act.
    (c) Exclusive Authority.--No requirement imposed under subsection 
(a), and no waiver or exemption provided in the regulations pursuant to 
subsection (b), shall be subject to review or approval by the Office of 
Personnel Management.
    (d) Definition.--For the purposes of this section, the term 
``professional accounting position'' means a position in the GS-510, 
GS-511, or GS-505 series for which professional accounting duties are 
prescribed.
    (e) Effective Date.--This section shall take effect 120 days after 
the date of the enactment of this Act.

SEC. 1107. HOUSING BENEFITS FOR UNACCOMPANIED TEACHERS REQUIRED TO LIVE 
              AT GUANTANAMO BAY NAVAL STATION, CUBA.

    Section 7(b) of the Defense Department Overseas Teachers Pay and 
Personnel Practices Act (20 U.S.C. 905(b)) is amended--
            (1) by inserting ``(1)'' after ``(b)''; and
            (2) by adding at the end the following new paragraph:
    ``(2)(A) A teacher assigned to teach at Guantanamo Bay Naval 
Station, Cuba, who is not accompanied at such station by any 
dependent--
            ``(i) shall be offered for lease any available military 
        family housing at such station that is suitable for occupancy 
        by the teacher and is not needed to house members of the armed 
        forces and dependents accompanying them or other civilian 
        personnel and any dependents accompanying them; and
            ``(ii) for any period for which such housing is leased to 
        the teacher, shall receive a quarters allowance in the amount 
        determined under paragraph (1).
    ``(B) A teacher is entitled to the quarters allowance in accordance 
with subparagraph (A)(ii) without regard to whether other Government 
furnished quarters are available for occupancy by the teacher without 
charge to the teacher.''.

              TITLE XII--MATTERS RELATING TO OTHER NATIONS

  Subtitle A--Cooperative Threat Reduction With States of the Former 
                              Soviet Union

SEC. 1201. SPECIFICATION OF COOPERATIVE THREAT REDUCTION PROGRAMS AND 
              FUNDS.

    (a) Specification of CTR Programs.--For purposes of section 301 and 
other provisions of this Act, Cooperative Threat Reduction programs are 
the programs specified in section 1501(b) of the National Defense 
Authorization Act for Fiscal Year 1997 (Public Law 104-201; 110 Stat. 
2731; 50 U.S.C. 2362 note).
    (b) Fiscal Year 2003 Cooperative Threat Reduction Funds Defined.--
As used in this title, the term ``fiscal year 2003 Cooperative Threat 
Reduction funds'' means the funds appropriated pursuant to the 
authorization of appropriations in section 301 for Cooperative Threat 
Reduction programs.
    (c) Availability of Funds.--Funds appropriated pursuant to the 
authorization of appropriations in section 301 for Cooperative Threat 
Reduction programs shall be available for obligation for three fiscal 
years.

SEC. 1202. FUNDING ALLOCATIONS.

    (a) Funding for Specific Purposes.--Of the $416,700,000 authorized 
to be appropriated to the Department of Defense for fiscal year 2003 in 
section 301(a)(23) for Cooperative Threat Reduction programs, not more 
than the following amounts may be obligated for the purposes specified:
            (1) For strategic offensive arms elimination in Russia, 
        $70,500,000.
            (2) For strategic nuclear arms elimination in Ukraine, 
        $6,500,000.
            (3) For weapons of mass destruction infrastructure 
        elimination in Ukraine, $8,800,000.
            (4) For weapons of mass destruction infrastructure 
        elimination in Kazakhstan, $9,000,000.
            (5) For weapons transportation security in Russia, 
        $19,700,000.
            (6) For weapons storage security in Russia, $40,000,000.
            (7) For weapons of mass destruction proliferation 
        prevention in the former Soviet Union, $40,000,000.
            (8) For biological weapons proliferation prevention 
        activities in the former Soviet Union, $55,000,000.
            (9) For chemical weapons destruction in Russia, 
        $133,600,000.
            (10) For activities designated as Other Assessments/
        Administrative Support, $14,700,000.
            (11) For defense and military contacts, $18,900,000.
    (b) Report on Obligation or Expenditure of Funds for Other 
Purposes.--No fiscal year 2003 Cooperative Threat Reduction funds may 
be obligated or expended for a purpose other than a purpose listed in 
paragraphs (1) through (11) of subsection (a) until 30 days after the 
date that the Secretary of Defense submits to Congress a report on the 
purpose for which the funds will be obligated or expended and the 
amount of funds to be obligated or expended. Nothing in the preceding 
sentence shall be construed as authorizing the obligation or 
expenditure of fiscal year 2003 Cooperative Threat Reduction funds for 
a purpose for which the obligation or expenditure of such funds is 
specifically prohibited under this title or any other provision of law.
    (c) Limited Authority To Vary Individual Amounts.--(1) Subject to 
paragraph (2), in any case in which the Secretary of Defense determines 
that it is necessary to do so in the national interest, the Secretary 
may obligate amounts appropriated for fiscal year 2003 for a purpose 
listed in any of the paragraphs in subsection (a) in excess of the 
amount specifically authorized for such purpose.
    (2) An obligation of funds for a purpose stated in any of the 
paragraphs in subsection (a) in excess of the specific amount 
authorized for such purpose may be made using the authority provided in 
paragraph (1) only after--
            (A) the Secretary submits to Congress notification of the 
        intent to do so together with a complete discussion of the 
        justification for doing so; and
            (B) 15 days have elapsed following the date of the 
        notification.

SEC. 1203. AUTHORIZATION OF USE OF COOPERATIVE THREAT REDUCTION FUNDS 
              FOR PROJECTS AND ACTIVITIES OUTSIDE THE FORMER SOVIET 
              UNION.

    (a) Cooperative Threat Reduction Programs and Funds.--For purposes 
of this section:
            (1) Cooperative Threat Reduction programs are--
                    (A) the programs specified in section 1501(b) of 
                the National Defense Authorization Act for Fiscal Year 
                1997 (Public Law 104-201; 110 Stat. 2731; 50 U.S.C. 
                2362 note); and
                    (B) any other similar programs, as designated by 
                the Secretary of Defense, to address critical emerging 
                proliferation threats in the states of the former 
                Soviet Union that jeopardize United States national 
                security.
            (2) Cooperative Threat Reduction funds, for a fiscal year, 
        are the funds authorized to be appropriated for Cooperative 
        Threat Reduction programs for that fiscal year.
    (b) Authorization of Use of CTR Funds for Threat Reduction 
Activities Outside the Former Soviet Union.--(1) Notwithstanding any 
other provision of law and subject to the succeeding provisions of this 
section, the Secretary of Defense may obligate and expend Cooperative 
Threat Reduction funds for fiscal year 2003, or Cooperative Threat 
Reduction funds for a fiscal year before fiscal year 2003 that remain 
available for obligation as of the date of the enactment of this Act, 
for proliferation threat reduction projects and activities outside the 
states of the former Soviet Union if the Secretary determines that such 
projects and activities will--
            (A) assist the United States in the resolution of critical 
        emerging proliferation threats; or
            (B) permit the United States to take advantage of 
        opportunities to achieve long-standing United States 
        nonproliferation goals.
    (2) The amount that may be obligated under paragraph (1) in any 
fiscal year for projects and activities described in that paragraph may 
not exceed $50,000,000.
    (c) Authorized Uses of Funds.--The authority under subsection (b) 
to obligate and expend Cooperative Threat Reduction funds for a project 
or activity includes authority to provide equipment, goods, and 
services for the project or activity, but does not include authority to 
provide cash directly to the project or activity.
    (d) Source and Replacement of Funds Used.--(1) The Secretary shall, 
to the maximum extent practicable, ensure that funds for projects and 
activities under subsection (b) are derived from funds that would 
otherwise be obligated for a range of Cooperative Threat Reduction 
programs, so that no particular Cooperative Threat Reduction program is 
the exclusive or predominant source of funds for such projects and 
activities.
    (2) If the Secretary obligates Cooperative Threat Reduction funds 
under subsection (b) in a fiscal year, the first budget of the 
President that is submitted under section 1105(a) of title 31, United 
States Code, after such fiscal year shall set forth, in addition to any 
other amounts requested for Cooperative Threat Reduction programs in 
the fiscal year covered by such budget, a request for Cooperative 
Threat Reduction funds in the fiscal year covered by such budget in an 
amount equal to the amount so obligated. The request shall also set 
forth the Cooperative Threat Reduction program or programs for which 
such funds would otherwise have been obligated, but for obligation 
under subsection (b).
    (3) Amounts authorized to be appropriated pursuant to a request 
under paragraph (2) shall be available for the Cooperative Threat 
Reduction program or programs set forth in the request under the second 
sentence of that paragraph.
    (e) Limitation on Obligation of Funds.--Except as provided in 
subsection (f), the Secretary may not obligate and expend Cooperative 
Threat Reduction funds for a project or activity under subsection (b) 
until 30 days after the date on which the Secretary submits to the 
congressional defense committees a report on the purpose for which the 
funds will be obligated and expended, and the amount of the funds to be 
obligated and expended.
    (f) Exception.--(1) The Secretary may obligate and expend 
Cooperative Threat Reduction funds for a project or activity under 
subsection (b) without regard to subsection (e) if the Secretary 
determines that a critical emerging proliferation threat warrants 
immediate obligation and expenditure of such funds.
    (2) Not later than 72 hours after first obligating funds for a 
project or activity under paragraph (1), the Secretary shall submit to 
the congressional defense committees a report containing a detailed 
justification for the obligation of funds. The report on a project or 
activity shall include the following:
            (A) A description of the critical emerging proliferation 
        threat to be addressed, or the long-standing United States 
        nonproliferation goal to be achieved, by the project or 
        activity.
            (B) A description of the agreement, if any, under which the 
        funds will be used, including whether or not the agreement 
        provides that the funds will not be used for purposes contrary 
        to the national security interests of the United States.
            (C) A description of the contracting process, if any, that 
        will be used in the implementation of the project or activity.
            (D) An analysis of the effect of the obligation of funds 
        for the project or activity on ongoing Cooperative Threat 
        Reduction programs.
            (E) An analysis of the need for additional or follow-up 
        threat reduction assistance, including whether or not the need 
        for such assistance justifies the establishment of a new 
        cooperative threat reduction program or programs to account for 
        such assistance.
            (F) A description of the mechanisms to be used by the 
        Secretary to assure that proper audits and examinations of the 
        project or activity are carried out.
    (g) Report on Establishment of New Cooperative Threat Reduction 
Programs.--(1) If the Secretary employs the authority in subsection (b) 
in any two fiscal years, the Secretary shall submit to Congress a 
report on the advisability of establishing one or more new cooperative 
threat reduction programs to account for projects and activities funded 
using such authority.
    (2) The report required by paragraph (1) shall be submitted along 
with the budget justification materials in support of the Department of 
Defense budget (as submitted with the budget of the President under 
section 1105(a) of title 31, United States Code) in the first budget 
submitted after the end of the two consecutive fiscal years referred to 
in that paragraph.

SEC. 1204. WAIVER OF LIMITATIONS ON ASSISTANCE UNDER PROGRAMS TO 
              FACILITATE COOPERATIVE THREAT REDUCTION AND 
              NONPROLIFERATION.

    (a) Assistance Under Cooperative Threat Reduction Act of 1993.--
Section 1203 of the Cooperative Threat Reduction Act of 1993 (title XII 
of Public Law 103-160; 107 Stat. 1778; 22 U.S.C. 5952) is amended by 
adding at the end the following new subsection:
    ``(e) Waiver of Restrictions.--(1) The restrictions in subsection 
(d) shall cease to apply to a state for a year if the President submits 
to the Speaker of the House of Representative and the President pro 
tempore of the Senate a written certification that the waiver of such 
restrictions in such year is important to the national security 
interests of the United States, together with a report containing the 
following:
            ``(A) A description of the activity or activities that 
        prevent the President from certifying that the state is 
        committed to the matters set forth in subsection (d) in such 
        year as otherwise provided for in that subsection.
            ``(B) A description of the strategy, plan, or policy of the 
        President for promoting the commitment of the state to such 
        matters, notwithstanding the waiver.
    ``(2) The matter included in the report under paragraph (1) shall 
be submitted in unclassified form, but may include a classified 
annex.''.
    (b) Administration of Restrictions on Assistance.--Subsection (d) 
of that section is amended--
            (1) by striking ``any year'' and inserting ``any fiscal 
        year''; and
            (2) by striking ``that year'' and inserting ``such fiscal 
        year''.
    (c) Eligibility Requirements under FREEDOM Support Act.--Section 
502 of the FREEDOM Support Act (Public Law 102-511; 106 Stat. 3338; 22 
U.S.C. 5852) is amended--
            (1) by striking ``Funds'' and inserting ``(a) 
        Eligibility.--Except as provided in subsection (b), funds''; 
        and
            (2) by adding at the end the following new subsection:
    ``(b) Waiver of Eligibility Requirements.--(1) Funds may be 
obligated for a fiscal year under subsection (a) for assistance or 
other programs and activities for an independent state of the former 
Soviet Union that does not meet one or more of the requirements for 
eligibility under paragraphs (1) through (4) of that subsection if the 
President certifies in writing to the Congress that the waiver of such 
requirements in such fiscal year is important to the national security 
interests of the United States.
    ``(2) At the time of the exercise of the authority in paragraph (1) 
with respect to an independent state of the former Soviet Union for a 
fiscal year, the President shall submit to the congressional defense 
committees a report on the following:
            ``(A) A description of the activity or activities that 
        prevent the President from certifying that the state is 
        committed to each matter in subsection (a) in such fiscal year 
        to which the waiver under paragraph (1) applies.
            ``(B) A description of the strategy, plan, or policy of the 
        President for promoting the commitment of the state to each 
        such matter, notwithstanding the waiver.
    ``(3) In this subsection, the term `congressional defense 
committees' means--
            ``(A) the Committee on Armed Services and the Committee on 
        Appropriations of the Senate; and
            ``(B) the Committee on Armed Services and the Committee on 
        Appropriations of the House of Representatives.''.
    (d) Effective Date.--The amendments made by this section shall take 
effect on October 1, 2002.

SEC. 1205. RUSSIAN TACTICAL NUCLEAR WEAPONS.

    (a) Findings.--The Congress makes the following findings:
            (1) Al Qaeda and other terrorist organizations, in addition 
        to rogue states, are known to be working to acquire weapons of 
        mass destruction, and particularly nuclear warheads.
            (2) The largest and least secure potential source of 
        nuclear warheads for terrorists or rogue states is Russia's 
        arsenal of nonstrategic or ``tactical'' nuclear warheads, which 
        according to unclassified estimates numbers from 7,000 to 
        12,000 warheads. Security at Russian nuclear weapon storage 
        sites is insufficient, and tactical nuclear warheads are more 
        vulnerable to terrorist or rogue state acquisition due to their 
        smaller size, greater portability, and greater numbers compared 
        to Russian strategic nuclear weapons.
            (3) Russia's tactical nuclear warheads were not covered by 
        the START treaties or the recent Moscow Treaty. Russia is not 
        legally bound to reduce its tactical nuclear stockpile and the 
        United States has no inspection rights regarding Russia's 
        tactical nuclear arsenal.
    (b) Sense of the Senate.--(1) One of the most likely nuclear weapon 
attack scenarios against the United States would involve detonation of 
a stolen Russian tactical nuclear warhead smuggled into the country.
    (2) It is a top national security priority of the United States to 
accelerate efforts to account for, secure, and reduce Russia's 
stockpile of tactical nuclear warheads and associated fissile material.
    (3) This imminent threat warrants a special nonproliferation 
initiative.
    (c) Report.--Not later than 30 days after enactment of this Act, 
the President shall report to Congress on efforts to reduce the 
particular threats associated with Russia's tactical nuclear arsenal 
and the outlines of a special initiative related to reducing the threat 
from Russia's tactical nuclear stockpile.

                       Subtitle B--Other Matters

SEC. 1211. ADMINISTRATIVE SUPPORT AND SERVICES FOR COALITION LIAISON 
              OFFICERS.

    (a) Authority.--Chapter 6 of title 10, United States Code, is 
amended by adding at the end the following new section:
``Sec. 169. Administrative support and services for coalition liaison 
              officers
    ``(a) Authority.--The Secretary of Defense may provide 
administrative services and support for the performance of duties by 
any liaison officer of another nation involved in a coalition while the 
liaison officer is assigned temporarily to the headquarters of a 
combatant command, component command, or subordinate operational 
command of the United States in connection with the planning for or 
conduct of a coalition operation.
    ``(b) Travel, Subsistence, and Other Expenses.--The Secretary may 
pay the travel, subsistence, and similar personal expenses of a liaison 
officer of a developing country in connection with the assignment of 
that liaison officer to the headquarters of a combatant command as 
described in subsection (a) if the assignment is requested by the 
commander of the combatant command.
    ``(c) Reimbursement.--To the extent that the Secretary determines 
appropriate, the Secretary may provide the services and support 
authorized under subsections (a) and (b) with or without reimbursement 
from (or on behalf of) the recipients.
    ``(d) Definitions.--In this section:
            ``(1) The term `administrative services and support' 
        includes base or installation support services, office space, 
        utilities, copying services, fire and police protection, and 
        computer support.
            ``(2) The term `coalition' means an ad hoc arrangement 
        between or among the United States and one or more other 
        nations for common action.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter 6 is amended by adding at the end the following new item:

``169. Administrative support and services for coalition liaison 
                            officers.''.

SEC. 1212. USE OF WARSAW INITIATIVE FUNDS FOR TRAVEL OF OFFICIALS FROM 
              PARTNER COUNTRIES.

    Section 1051(b) of title 10, United States Code, is amended--
            (1) in paragraph (1), by striking ``paragraph (2)'' and 
        inserting ``paragraphs (2) and (3)'';
            (2) by redesignating paragraph (3) as paragraph (4); and
            (3) by inserting after paragraph (2) the following new 
        paragraph (3):
    ``(3) In the case of defense personnel of a country that is 
participating in the Partnership for Peace program of the North 
Atlantic Treaty Organization (NATO), expenses authorized to be paid 
under subsection (a) may be paid in connection with travel of personnel 
to the territory of any of the countries participating in the 
Partnership for Peace program or of any of the NATO member 
countries.''.

SEC. 1213. SUPPORT OF UNITED NATIONS-SPONSORED EFFORTS TO INSPECT AND 
              MONITOR IRAQI WEAPONS ACTIVITIES.

    (a) Limitation on Amount of Assistance in Fiscal Year 2003.--The 
total amount of the assistance for fiscal year 2003 that is provided by 
the Secretary of Defense under section 1505 of the Weapons of Mass 
Destruction Control Act of 1992 (22 U.S.C. 5859a) as activities of the 
Department of Defense in support of activities under that Act may not 
exceed $15,000,000.
    (b) Extension of Authority To Provide Assistance.--Subsection (f) 
of section 1505 of the Weapons of Mass Destruction Control Act of 1992 
(22 U.S.C. 5859a) is amended by striking ``2002'' and inserting 
``2003''.

SEC. 1214. ARCTIC AND WESTERN PACIFIC ENVIRONMENTAL COOPERATION 
              PROGRAM.

    (a) In General.--(1) Subchapter II of chapter 138 of title 10, 
United States Code, is amended by adding at the end the following new 
section:
``Sec. 2350m. Arctic and Western Pacific Environmental Cooperation 
              Program
    ``(a) Authority To Conduct Program.--The Secretary of Defense may, 
with the concurrence of the Secretary of State, conduct on a 
cooperative basis with countries located in the Arctic and Western 
Pacific regions a program of environmental activities provided for in 
subsection (b) in such regions. The program shall be known as the 
`Arctic and Western Pacific Environmental Cooperation Program'.
    ``(b) Program Activities.--(1) Except as provided in paragraph (2), 
activities under the program under subsection (a) may include 
cooperation and assistance on environmental matters in the Arctic and 
Western Pacific regions among elements of the Department of Defense and 
the military departments or agencies of countries located in such 
regions.
    ``(2) Activities under the program may not include activities 
relating to the following:
            ``(A) The conduct of any peacekeeping exercise or other 
        peacekeeping-related activity with the Russian Federation.
            ``(B) The provision of housing.
            ``(C) The provision of assistance to promote environmental 
        restoration.
            ``(D) The provision of assistance to promote job 
        retraining.
    ``(c) Limitation on Funding for Projects Other than Radiological 
Projects.--Not more than 20 percent of the amount made available for 
the program under subsection (a) in any fiscal year may be available 
for projects under the program other than projects on radiological 
matters.
    ``(d) Annual Report.--(1) Not later than March 1, 2003, and each 
year thereafter, the Secretary of Defense shall submit to Congress a 
report on activities under the program under subsection (a) during the 
preceding fiscal year.
    ``(2) The report on the program for a fiscal year under paragraph 
(1) shall include the following:
            ``(A) A description of the activities carried out under the 
        program during that fiscal year, including a separate 
        description of each project under the program.
            ``(B) A statement of the amounts obligated and expended for 
        the program during that fiscal year, set forth in aggregate and 
        by project.
            ``(C) A statement of the life cycle costs of each project, 
        including the life cycle costs of such project as of the end of 
        that fiscal year and an estimate of the total life cycle costs 
        of such project upon completion of such project.
            ``(D) A statement of the participants in the activities 
        carried out under the program during that fiscal year, 
        including the elements of the Department of Defense and the 
        military departments or agencies of other countries.
            ``(E) A description of the contributions of the military 
        departments and agencies of other countries to the activities 
        carried out under the program during that fiscal year, 
        including any financial or other contributions to such 
        activities.''.
    (2) The table of sections at the beginning of that subchapter is 
amended by adding at the end the following new item:

``2350m. Arctic and Western Pacific Environmental Cooperation 
                            Program.''.
    (b) Repeal of Superseded Authority on Arctic Military Cooperation 
Program.--Section 327 of the Strom Thurmond National Defense 
Authorization Act for Fiscal Year 1999 (Public Law 105-261; 112 Stat. 
1965) is repealed.

SEC. 1215. DEPARTMENT OF DEFENSE HIV/AIDS PREVENTION ASSISTANCE 
              PROGRAM.

    (a) Expansion of Program.--The Secretary of Defense is authorized 
to expand, in accordance with this section, the Department of Defense 
program of HIV/AIDS prevention educational activities undertaken in 
connection with the conduct of United States military training, 
exercises, and humanitarian assistance in sub-Saharan African 
countries.
    (b) Eligible Countries.--The Secretary may carry out the program in 
all eligible countries. A country shall be eligible for activities 
under the program if the country--
            (1) is a country suffering a public health crisis (as 
        defined in subsection (e)); and
            (2) participates in the military-to-military contacts 
        program of the Department of Defense.
    (c) Program Activities.--The Secretary shall provide for the 
activities under the program--
            (1) to focus, to the extent possible, on military units 
        that participate in peace keeping operations; and
            (2) to include HIV/AIDS-related voluntary counseling and 
        testing and HIV/AIDS-related surveillance.
    (d) Authorization of Appropriations.--
            (1) In general.--Of the amount authorized to be 
        appropriated by section 301(a)(22) to the Department of Defense 
        for operation and maintenance of the Defense Health Program, 
        $30,000,000 may be available for carrying out the program 
        described in subsection (a) as expanded pursuant to this 
        section.
            (2) Availability of funds.--Amounts appropriated pursuant 
        to paragraph (1) are authorized to remain available until 
        expended.
    (e) Country Suffering a Public Health Crisis Defined.--In this 
section, the term ``country suffering a public health crisis'' means a 
country that has rapidly rising rates of incidence of HIV/AIDS or in 
which HIV/AIDS is causing significant family, community, or societal 
disruption.

SEC. 1216. MONITORING IMPLEMENTATION OF THE 1979 UNITED STATES-CHINA 
              AGREEMENT ON COOPERATION IN SCIENCE AND TECHNOLOGY.

    (a) Responsibilities of the Office of Science and Technology 
Cooperation.--The Office of Science and Technology Cooperation of the 
Department of State shall monitor the implementation of the 1979 United 
States-China Agreement on Cooperation in Science and Technology and its 
protocols (in this section referred to as the ``Agreement''), and keep 
a systematic account of the protocols thereto. The Office shall 
coordinate the activities of all agencies of the United States 
Government that carry out cooperative activities under the Agreement.
    (b) Guidelines.--The Secretary of State shall ensure that all 
activities conducted under the Agreement and its protocols comply with 
applicable laws and regulations concerning the transfer of militarily 
sensitive and dual-use technologies.
    (c) Reporting Requirement.--
            (1) In general.--Not later than April 1, 2004, and every 
        two years thereafter, the Secretary of State, shall submit a 
        report to Congress, in both classified and unclassified form, 
        on the implementation of the Agreement and activities 
        thereunder.
            (2) Report elements.--Each report under this subsection 
        shall provide an evaluation of the benefits of the Agreement to 
        the Chinese economy, military, and defense industrial base and 
        shall include the following:
                    (A) An accounting of all activities conducted under 
                the Agreement since the previous report, and a 
                projection of activities to be undertaken in the next 
                two years.
                    (B) An estimate of the costs to the United States 
                to administer the Agreement within the period covered 
                by the report.
                    (C) An assessment of how the Agreement has 
                influenced the policies of the People's Republic of 
                China toward scientific and technological cooperation 
                with the United States.
                    (D) An analysis of the involvement of Chinese 
                nuclear weapons and military missile specialists in the 
                activities of the Joint Commission.
                    (E) A determination of the extent to which the 
                activities conducted under the Agreement have enhanced 
                the military and industrial base of the People's 
                Republic of China, and an assessment of the impact of 
                projected activities for the next two years, including 
                transfers of technology, on China's economic and 
                military capabilities.
                    (F) Any recommendations on improving the monitoring 
                of the activities of the Commission by the Secretaries 
                of Defense and State.
            (3) Consultation prior to submission of reports.--The 
        Secretary of State shall prepare the report in consultation 
        with the Secretaries of Commerce, Defense, and Energy, the 
        Directors of the National Science Foundation and the Federal 
        Bureau of Investigation, and the intelligence community.

            DIVISION B--MILITARY CONSTRUCTION AUTHORIZATIONS

SEC. 2001. SHORT TITLE.

    This division may be cited as the ``Military Construction 
Authorization Act for Fiscal Year 2003''.

                            TITLE XXI--ARMY

SEC. 2101. AUTHORIZED ARMY CONSTRUCTION AND LAND ACQUISITION PROJECTS.

    (a) Inside the United States.--Using amounts appropriated pursuant 
to the authorization of appropriations in section 2104(a)(1), the 
Secretary of the Army may acquire real property and carry out military 
construction projects for the installations and locations inside the 
United States, and in the amounts, set forth in the following table:


                                         Army: Inside the United States
----------------------------------------------------------------------------------------------------------------
                      State                                 Installation or location                 Amount
----------------------------------------------------------------------------------------------------------------
Alabama.........................................  Anniston Army Depot........................         $1,900,000
                                                  Fort Rucker................................         $6,550,000
Alaska..........................................  Fort Richardson............................        $15,000,000
                                                  Fort Wainwright............................       $111,010,000
Arkansas........................................  Pine Bluff Arsenal.........................        $18,937,000
Colorado........................................  Fort Carson................................         $1,100,000
District of Columbia............................  Walter Reed Army Medical Center............        $17,500,000
Georgia.........................................  Fort Benning...............................        $74,250,000
                                                  Fort Stewart/Hunter Army Air Field.........        $26,000,000
Hawaii..........................................  Schofield Barracks.........................       $191,000,000
Kansas..........................................  Fort Leavenworth...........................         $3,150,000
                                                  Fort Riley.................................        $74,000,000
Kentucky........................................  Blue Grass Army Depot......................         $5,500,000
                                                  Fort Campbell..............................        $99,000,000
                                                  Fort Knox..................................         $6,800,000
Louisiana.......................................  Fort Polk..................................        $31,000,000
Maryland........................................  Fort Detrick...............................        $19,700,000
Missouri........................................  Fort Leonard Wood..........................        $15,500,000
New York........................................  Fort Drum..................................         $1,500,000
North Carolina..................................  Fort Bragg.................................        $85,500,000
Oklahoma........................................  Fort Sill..................................        $35,000,000
Pennsylvania....................................  Letterkenny Army Depot.....................         $1,550,000
Texas...........................................  Fort Hood..................................        $69,000,000
Washington......................................  Fort Lewis.................................        $53,000,000
                                                                                              ------------------
                                                      Total..................................       $964,697,000
----------------------------------------------------------------------------------------------------------------

    (b) Outside the United States.--Using amounts appropriated pursuant 
to the authorization of appropriations in section 2104(a)(2), the 
Secretary of the Army may acquire real property and carry out military 
construction projects for the installations and locations outside the 
United States, and in the amounts, set forth in the following table:


                     Army: Outside the United States
------------------------------------------------------------------------
                                     Installation or
            Country                      location             Amount
------------------------------------------------------------------------
Belgium........................  Chievres Air Base......     $13,600,000
Germany........................  Area Support Group,         $17,200,000
                                  Bamberg.
                                 Darmstadt..............      $3,500,000
                                 Grafenwoehr............     $69,866,000
                                 Heidelberg.............      $8,300,000
                                 Landstuhl..............      $2,400,000
                                 Mannheim...............     $43,350,000
                                 Schweinfurt............      $2,000,000
Italy..........................  Vicenza................     $34,700,000
Korea..........................  Camp Carroll...........     $20,000,000
                                 Camp Castle............      $6,800,000
                                 Camp Hovey.............     $25,000,000
                                 Camp Humphreys.........     $36,000,000
                                 Camp Tango.............     $12,600,000
                                 Camp Henry.............     $10,200,000
                                 K16 Airfield...........     $40,000,000
Qatar..........................  Qatar..................      $8,600,000
                                                         ---------------
                                 Total..................    $354,116,000
------------------------------------------------------------------------

    (c) Unspecified Worldwide.--Using the amounts appropriated pursuant 
to the authorization of appropriations in section 2104(a)(3), the 
Secretary of the Army may acquire real property and carry out military 
construction projects for the installation and location, and in the 
amount, set forth in the following table:


                       Army: Unspecified Worldwide
------------------------------------------------------------------------
            Location                   Installation           Amount
------------------------------------------------------------------------
Unspecified Worldwide..........  Unspecified Worldwide..      $4,000,000
------------------------------------------------------------------------

SEC. 2102. FAMILY HOUSING.

    (a) Construction and Acquisition.--Using amounts appropriated 
pursuant to the authorization of appropriations in section 
2104(a)(6)(A), the Secretary of the Army may construct or acquire 
family housing units (including land acquisition and supporting 
facilities) at the installations, for the purposes, and in the amounts 
set forth in the following table:


                                              Army: Family Housing
----------------------------------------------------------------------------------------------------------------
           State or Country              Installation or location             Purpose                 Amount
----------------------------------------------------------------------------------------------------------------
Alaska................................  Fort Wainwright..........  38 Units.....................     $17,752,000
Arizona...............................  Yuma Proving Ground......  33 Units.....................      $6,100,000
Germany...............................  Stuttgart................  1 Units......................        $990,000
Korea.................................  Yongsan..................  10 Units.....................      $3,100,000
                                                                                                 ---------------
                                            Total:...............                                    $27,942,000
----------------------------------------------------------------------------------------------------------------

    (b) Planning and Design.--Using amounts appropriated pursuant to 
the authorization of appropriations in section 2104(a)(6)(A), the 
Secretary of the Army may carry out architectural and engineering 
services and construction design activities with respect to the 
construction or improvement of family housing units in an amount not to 
exceed $15,653,000.

SEC. 2103. IMPROVEMENTS TO MILITARY FAMILY HOUSING UNITS.

    Subject to section 2825 of title 10, United States Code, and using 
amounts appropriated pursuant to the authorization of appropriations in 
section 2104(a)(6)(A), the Secretary of the Army may improve existing 
military family housing units in an amount not to exceed $239,751,000.

SEC. 2104. AUTHORIZATION OF APPROPRIATIONS, ARMY.

    (a) In General.--Funds are hereby authorized to be appropriated for 
fiscal years beginning after September 30, 2002, for military 
construction, land acquisition, and military family housing functions 
of the Department of the Army in the total amount of $3,007,345,000 as 
follows:
            (1) For military construction projects inside the United 
        States authorized by section 2101(a), $758,497,000.
            (2) For military construction projects outside the United 
        States authorized by section 2101(b), $354,116,000.
            (3) For military construction projects at unspecified 
        worldwide locations authorized by section 2101(c), $4,000,000.
            (4) For unspecified minor construction projects authorized 
        by section 2805 of title 10, United States Code, $20,500,000.
            (5) For architectural and engineering services and 
        construction design under section 2807 of title 10, United 
        States Code, $148,864,000.
            (6) For military family housing functions:
                    (A) For construction and acquisition, planning and 
                design and improvement of military family housing and 
                facilities, $283,346,000.
                    (B) For support of military family housing 
                (including the functions described in section 2833 of 
                title 10, United States Code), $1,122,274,000.
            (7) For the construction of phase 4 of an ammunition 
        demilitarization facility at Pueblo Chemical Activity, 
        Colorado, authorized by section 2401(a) of the Military 
        Construction Authorization Act for Fiscal Year 1997 (division B 
        of Public Law 104-201; 110 Stat. 2775), as amended by section 
        2406 of the Military Construction Authorization Act for Fiscal 
        Year 2000 (division B of Public Law 106-65; 113 Stat. 839) and 
        section 2108 of this Act, $38,000,000.
            (8) For the construction of phase 5 of an ammunition 
        demilitarization facility at Newport Army Depot, Indiana, 
        authorized by section 2401(a) of the Military Construction 
        Authorization Act for Fiscal Year 1999 (division B of Public 
        Law 105-261; 112 Stat. 2193), $61,494,000.
            (9) For the construction of phase 5 of an ammunition 
        demilitarization facility at Aberdeen Proving Ground, Maryland, 
        authorized by section 2401(a) of the Military Construction 
        Authorization Act for Fiscal Year 1999, as amended by section 
        2406 of the Military Construction Authorization Act for Fiscal 
        Year 2002 (division B of Public Law 107-107; 115 Stat. 1299), 
        $30,600,000.
            (10) For the construction of phase 3 of an ammunition 
        demilitarization facility at Blue Grass Army Depot, Kentucky, 
        authorized by section 2401(a) of the Military Construction 
        Authorization Act for Fiscal Year 2000 (113 Stat. 835), as 
        amended by section 2405 of the Military Construction 
        Authorization Act for Fiscal Year 2002 (115 Stat. 1298) and 
        section 2106 of this Act, $10,300,000.
            (11) For the construction of phase 3 of an ammunition 
        demilitarization support facility at Blue Grass Army Depot, 
        Kentucky, authorized by section 2401(a) of the Military 
        Construction Authorization Act for Fiscal Year 2000, 
        $8,300,000.
            (12) For the construction of phase 2 of Saddle Access Road, 
        Pohakoula Training Facility, Hawaii, authorized by section 
        2101(a) of the Military Construction Authorization Act for 
        Fiscal Year 2001 (division B of the Floyd D. Spence National 
        Defense Authorization Act for Fiscal Year 2001, as enacted into 
        law by Public Law 106-398; 114 Stat. 1654A-389), $13,000,000.
            (13) For the construction of phase 3 of a barracks complex, 
        Butner Road, at Fort Bragg, North Carolina, authorized by 
        section 2101(a) of the Military Construction Authorization Act 
        for Fiscal Year 2001, $50,000,000.
            (14) For the construction of phase 2 of a barracks complex, 
        D Street, at Fort Richardson, Alaska, authorized by section 
        2101(a) of the Military Construction Authorization Act for 
        Fiscal Year 2002 (115 Stat. 1280), $21,000,000.
            (15) For the construction of phase 2 of a barracks complex, 
        Nelson Boulevard, at Fort Carson, Colorado, authorized by 
        section 2101(a) of the Military Construction Authorization Act 
        for Fiscal Year 2002, as amended by section 2105 of this Act, 
        $42,000,000.
            (16) For the construction of phase 2 of a basic combat 
        trainee complex at Fort Jackson, South Carolina, authorized by 
        section 2101(a) of the Military Construction Authorization Act 
        for Fiscal Year 2002, as amended by section 2105 of this Act, 
        $39,000,000.
            (17) For the construction of phase 2 of a barracks complex, 
        17th and B Streets at Fort Lewis, Washington, authorized by 
        section 2101(a) of the Military Construction Authorization Act 
        for Fiscal Year 2002, $50,000,000.
    (b) Limitation on Total Cost of Construction Projects.--
Notwithstanding the cost variations authorized by section 2853 of title 
10, United States Code, and any other cost variation authorized by law, 
the total cost of all projects carried out under section 2101 of this 
Act may not exceed--
            (1) the total amount authorized to be appropriated under 
        paragraphs (1), (2), and (3) of subsection (a);
            (2) $18,000,000 (the balance of the amount authorized under 
        section 2101(a) for construction of a barracks complex, Main 
        Post, at Fort Benning, Georgia);
            (3) $100,000,000 (the balance of the amount authorized 
        under section 2101(a) for construction of a barracks complex, 
        Capron Avenue, at Schofield Barracks, Hawaii);
            (4) $13,200,000 (the balance of the amount authorized under 
        section 2101(a) for construction of a combined arms collective 
        training facility at Fort Riley, Kansas);
            (5) $50,000,000 (the balance of the amount authorized under 
        section 2101(a) for construction of a barracks complex, Range 
        Road, at Fort Campbell, Kentucky); and
            (6) $25,000,000 (the balance of the amount authorized under 
        section 2101(a) for construction of a consolidated maintenance 
        complex at Fort Sill, Oklahoma).
    (c) Adjustment.--The total amount authorized to be appropriated 
pursuant to paragraphs (1) through (17) of subsection (a) is the sum of 
the amounts authorized to be appropriated in such paragraphs, reduced 
by--
            (1) $18,596,000, which represents savings resulting from 
        adjustments to foreign currency exchange rates for military 
        construction, military family housing construction, and 
        military family housing support outside the United States; and
            (2) $29,350,000, which represents adjustments for the 
        accounting of civilian personnel benefits.

SEC. 2105. MODIFICATION OF AUTHORITY TO CARRY OUT CERTAIN FISCAL YEAR 
              2002 PROJECTS.

    (a) Modification.--The table in section 2101(a) of the Military 
Construction Authorization Act for Fiscal Year 2002 (division B of 
Public Law 107-107; 115 Stat. 1281) is amended--
            (1) in the item relating to Fort Carson, Colorado, by 
        striking ``$66,000,000'' in the amount column and inserting 
        ``$67,000,000''; and
            (2) in the item relating to Fort Jackson, South Carolina, 
        by striking ``$65,650,000'' in the amount column and inserting 
        ``$68,650,000''.
    (b) Conforming Amendments.--Section 2104(b) of that Act (115 Stat. 
1284) is amended--
            (1) in paragraph (3), by striking ``$41,000,000'' and 
        inserting ``$42,000,000''; and
            (2) in paragraph (4), by striking ``$36,000,000'' and 
        inserting ``$39,000,000''.

SEC. 2106. MODIFICATION OF AUTHORITY TO CARRY OUT CERTAIN FISCAL YEAR 
              2000 PROJECT.

    (a) Modification.--The table in section 2401(a) of the Military 
Construction Authorization Act for Fiscal Year 2000 (division B of 
Public Law 106-65; 113 Stat. 835), as amended by section 2405 of the 
Military Construction Authorization Act for Fiscal Year 2002 (division 
B of Public Law 107-107; 115 Stat. 1298), is further amended--
            (1) under the agency heading relating to Chemical 
        Demilitarization, in the item relating to Blue Grass Army 
        Depot, Kentucky, by striking ``$254,030,000'' in the amount 
        column and inserting ``$290,325,000''; and
            (2) by striking the amount identified as the total in the 
        amount column and inserting ``$748,245,000''.
    (b) Conforming Amendment.--Section 2405(b)(3) of that Act (113 
Stat. 839), as so amended, is further amended by striking 
``$231,230,000'' and inserting ``$267,525,000''.

SEC. 2107. MODIFICATION OF AUTHORITY TO CARRY OUT CERTAIN FISCAL YEAR 
              1999 PROJECT.

    (a) Modification.--The table in section 2401(a) of the Military 
Construction Authorization Act for Fiscal Year 1999 (division B of 
Public Law 105-261; 112 Stat. 2193) is amended--
            (1) under the agency heading relating to Chemical 
        Demilitarization, in the item relating to Newport Army Depot, 
        Indiana, by striking ``$191,550,000'' in the amount column and 
        inserting ``$293,853,000''; and
            (2) by striking the amount identified as the total in the 
        amount column and inserting ``$829,919,000''.
    (b) Conforming Amendment.--Section 2404(b)(2) of that Act (112 
Stat. 2196) is amended by striking ``$162,050,000'' and inserting 
``$264,353,000''.

SEC. 2108. MODIFICATION OF AUTHORITY TO CARRY OUT CERTAIN FISCAL YEAR 
              1997 PROJECT.

    (a) Modification.--The table in section 2401(a) of the Military 
Construction Authorization Act for Fiscal Year 1997 (division B of 
Public Law 104-201; 110 Stat. 2775), as amended by section 2406 of the 
Military Construction Authorization Act for Fiscal Year 2000 (division 
B of Public Law 106-65; 113 Stat. 839), is further amended--
            (1) under the agency heading relating to Chemical 
        Demilitarization Program, in the item relating to Pueblo 
        Chemical Activity, Colorado, by striking ``$203,500,000'' in 
        the amount column and inserting ``$261,000,000''; and
            (2) by striking the amount identified as the total in the 
        amount column and inserting ``$607,454,000''.
    (b) Conforming Amendment.--Section 2406(b)(2) of that Act (110 
Stat. 2779), as so amended, is further amended by striking 
``$203,500,000'' and inserting ``$261,000,000''.

SEC. 2109. MODIFICATION OF AUTHORITY TO CARRY OUT CERTAIN FISCAL YEAR 
              2001 PROJECT.

    The table in section 2101(b) of the Military Construction 
Authorization Act for Fiscal Year 2001 (division B of the Floyd D. 
Spence National Defense Authorization Act for Fiscal Year 2001, as 
enacted into law by Public Law 106-398; 114 Stat. 1654A-390) is amended 
by striking ``Camp Page'' in the installation or location column and 
inserting ``Camp Stanley''.

SEC. 2110. PLANNING AND DESIGN FOR ANECHOIC CHAMBER AT WHITE SANDS 
              MISSILE RANGE, NEW MEXICO.

    (a) Planning and Design.--The amount authorized to be appropriated 
by section 2104(a)(5), for planning and design for military 
construction for the Army is hereby increased by $3,000,000, with the 
amount of the increase to be available for planning and design for an 
anechoic chamber at White Sands Missile Range, New Mexico.
    (b) Offset.--The amount authorized to be appropriated by section 
301(a)(1) for the Army for operation and maintenance is hereby reduced 
by $3,000,000, with the amount of the reduction to be allocated to Base 
Operations Support (Servicewide Support).

                            TITLE XXII--NAVY

SEC. 2201. AUTHORIZED NAVY CONSTRUCTION AND LAND ACQUISITION PROJECTS.

    (a) Inside the United States.--Using amounts appropriated pursuant 
to the authorization of appropriations in section 2204(a)(1), the 
Secretary of the Navy may acquire real property and carry out military 
construction projects for the installations and locations inside the 
United States, and in the amounts, set forth in the following table:


                     Navy: Inside the United States
------------------------------------------------------------------------
                                     Installation or
             State                       location             Amount
------------------------------------------------------------------------
Arizona........................  Marine Corps Air             $3,000,000
                                  Station, Yuma.
California.....................  Marine Corps Air             $8,700,000
                                  Station, Miramar.
                                 Marine Corps Air Ground     $25,770,000
                                  Combat Center,
                                  Twentynine Palms.
                                 Marine Corps Base, Camp    $104,200,000
                                  Pendleton.
                                 Naval Air Station,          $35,855,000
                                  Lemoore.
                                 Naval Air Station, San       $6,150,000
                                  Diego.
                                 Naval Air Warfare            $6,760,000
                                  Center, Point Mugu.
                                 Naval Construction           $6,957,000
                                  Battalion Center, Port
                                  Hueneme.
                                 Naval PostGraduate           $2,020,000
                                  School, Monterey.
                                 Naval Station, San          $12,210,000
                                  Diego.
Connecticut....................  Naval Submarine Base,        $7,880,000
                                  New London.
District of Columbia...........  Marine Corps Base,           $3,700,000
                                  Washington.
                                 Naval District,              $2,690,000
                                  Washington.
Florida........................  Eglin Air Force Base...      $6,350,000
                                 Naval Air Station,           $6,770,000
                                  Jacksonville.
                                 Naval Air Station,           $1,900,000
                                  Mayport.
                                 Naval Air Station,             $990,000
                                  Pensacola.
                                 Panama City............     $10,700,000
Georgia........................  Naval Submarine Base,        $1,580,000
                                  Kings Bay.
Hawaii.........................  Ford Island............     $19,400,000
                                 Marine Corps Base,           $9,500,000
                                  Hawaii.
                                 Naval Station, Pearl        $14,690,000
                                  Harbor.
Illinois.......................  Naval Training Center,      $93,190,000
                                  Great Lakes.
Maine..........................  Naval Air Station,           $9,830,000
                                  Brunswick.
                                 Naval Shipyard,             $15,200,000
                                  Portsmouth.
Maryland.......................  Andrews Air Force Base.      $9,680,000
                                 Naval Surface Warfare       $12,900,000
                                  Center, Carderock
                                  Division.
Mississippi....................  Naval Air Station,           $2,850,000
                                  Meridian.
                                 Naval Construction           $5,460,000
                                  Battalion Center,
                                  Gulfport.
                                 Naval Station,              $25,305,000
                                  Pascagoula.
New Jersey.....................  Naval Air Warfare            $5,200,000
                                  Center, Lakehurst.
                                 Naval Weapons Station,       $5,600,000
                                  Earle.
North Carolina.................  Camp LeJeune...........      $5,370,000
                                 Marine Corps Air             $6,040,000
                                  Station, Cherry Point.
                                 Marine Corps Air             $6,920,000
                                  Station, New River.
Rhode Island...................  Naval Station, Newport.      $9,030,000
South Carolina.................  Marine Corps Air            $13,700,000
                                  Station, Beaufort.
                                 Marine Corps Recruit        $10,490,000
                                  Depot, Parris Island.
                                 Naval Weapons Station,       $5,740,000
                                  Charleston.
Texas..........................  Naval Air Station,           $6,210,000
                                  Kingsville.
                                 Naval Station,               $5,480,000
                                  Ingleside.
Virginia.......................  Marine Corps Combat         $19,554,000
                                  Development Command,
                                  Quantico.
                                 Naval Amphibious Base,       $9,770,000
                                  Little Creek.
                                 Naval Air Station,           $2,260,000
                                  Norfolk.
                                 Naval Air Station,          $16,490,000
                                  Oceana.
                                 Naval Ship Yard,            $36,470,000
                                  Norfolk.
                                 Naval Station, Norfolk.    $168,965,000
                                 Naval Surface Warfare       $15,830,000
                                  Center, Dahlgren.
                                 Naval Weapons Station,      $15,020,000
                                  Yorktown.
Washington.....................  Naval Air Station,          $17,580,000
                                  Whidbey Island.
                                 Naval Magazine, Port         $4,030,000
                                  Hadlock.
                                 Naval Shipyard, Puget       $54,132,000
                                  Sound.
                                 Naval Station,              $45,870,000
                                  Bremerton.
                                 Naval Submarine Base,       $22,310,000
                                  Bangor.
                                 Strategic Weapons            $7,340,000
                                  Facility, Bangor.
Various Locations..............  Host Nation                  $1,000,000
                                  Infrastructure.
                                                         ---------------
                                     Total..............    $988,588,000
------------------------------------------------------------------------

    (b) Outside the United States.--Using amounts appropriated pursuant 
to the authorization of appropriations in section 2204(a)(2), the 
Secretary of the Navy may acquire real property and carry out military 
construction projects for the locations outside the United States, and 
in the amounts, set forth in the following table:


                     Navy: Outside the United States
------------------------------------------------------------------------
                                     Installation or
            Country                      location             Amount
------------------------------------------------------------------------
Bahrain........................  Naval Support Activity,     $25,970,000
                                  Bahrain.
Cuba...........................  Naval Station,               $4,280,000
                                  Guantanamo.
Diego Garcia...................  Diego Garcia, Naval         $11,090,000
                                  Support Facility.
Greece.........................  Naval Support Activity,     $14,800,000
                                  Joint Headquarters
                                  Command, Larissa.
Guam...........................  Commander, United           $13,400,000
                                  States Naval Forces,
                                  Guam.
Iceland........................  Naval Air Station,          $14,920,000
                                  Keflavik.
Italy..........................  Naval Air Station,          $66,960,000
                                  Sigonella.
Spain..........................  Joint Headquarters           $2,890,000
                                  Command, Madrid.
                                 Naval Station, Rota....     $18,700,000
                                                         ---------------
                                     Total..............    $173,010,000
------------------------------------------------------------------------

SEC. 2202. FAMILY HOUSING.

    (a) Construction and Acquisition.--Using amounts appropriated 
pursuant to the authorization of appropriations in section 
2204(a)(5)(A), the Secretary of the Navy may construct or acquire 
family housing units (including land acquisition and supporting 
facilities) at the installations, for the purposes, and in the amounts 
set forth in the following table:


                                              Navy: Family Housing
----------------------------------------------------------------------------------------------------------------
           State or Country              Installation or location             Purpose                 Amount
----------------------------------------------------------------------------------------------------------------
California............................  Naval Air Station,         178 Units....................     $40,981,000
                                         Lemoore.
                                        Twentynine Palms.........  76 Units.....................     $19,425,000
Connecticut...........................  Naval Submarine Base, New  100 Units....................     $24,415,000
                                         London.
Florida...............................  Naval Station, Mayport...  1 Unit.......................        $329,000
Hawaii................................  Marine Corps Base,         65 Units.....................     $24,797,000
                                         Kaneohe Bay.
Mississippi...........................  Naval Air Station,         56 Units.....................      $9,755,000
                                         Meridian.
North Carolina........................  Marine Corps Base, Camp    317 Units....................     $43,650,000
                                         LeJeune.
Virginia..............................  Marine Corps Base,         290 Units....................     $41,843,000
                                         Quantico.
Greece................................  Naval Support Activity     2 Units......................      $1,232,000
                                         Joint Headquarters
                                         Command, Larissa.
 United Kingdom.......................  Joint Maritime Facility,   62 Units.....................     $18,524,000
                                         St. Mawgan.
                                                                                                 ---------------
                                                                       Total....................    $224,951,000
----------------------------------------------------------------------------------------------------------------

    (b) Planning and Design.--Using amounts appropriated pursuant to 
the authorization of appropriation in section 2204(a)(5)(A), the 
Secretary of the Navy may carry out architectural and engineering 
services and construction design activities with respect to the 
construction or improvement of military family housing units in an 
amount not to exceed $11,281,000.

SEC. 2203. IMPROVEMENTS TO MILITARY FAMILY HOUSING UNITS.

    Subject to section 2825 of title 10, United States Code, and using 
amounts appropriated pursuant to the authorization of appropriations in 
section 2204(a)(5)(A), the Secretary of the Navy may improve existing 
military family housing units in an amount not to exceed $139,468,000.

SEC. 2204. AUTHORIZATION OF APPROPRIATIONS, NAVY.

    (a) In General.--Funds are hereby authorized to be appropriated for 
fiscal years beginning after September 30, 2002, for military 
construction, land acquisition, and military family housing functions 
of the Department of the Navy in the total amount of $2,478,174,000, as 
follows:
            (1) For military construction projects inside the United 
        States authorized by section 2201(a), $932,123,000.
            (2) For military construction projects outside the United 
        States authorized by section 2201(b), $170,440,000.
            (3) For unspecified minor construction projects authorized 
        by section 2805 of title 10, United States Code, $23,262,000.
            (4) For architectural and engineering services and 
        construction design under section 2807 of title 10, United 
        States Code, $87,803,000.
            (5) For military family housing functions:
                    (A) For construction and acquisition, planning and 
                design, and improvement of military family housing and 
                facilities, $375,700,000.
                    (B) For support of military family housing 
                (including functions described in section 2833 of title 
                10, United States Code), $867,788,000.
            (6) For replacement of a pier at Naval Station, Norfolk, 
        Virginia, authorized in section 2201(a) of the Military 
        Construction Authorization Act for Fiscal Year 2002 (division B 
        of Public Law 107-107; 115 Stat. 1287), as amended by section 
        2205 of this Act, $33,520,000.
    (b) Limitation on Total Cost of Construction Projects.--
Notwithstanding the cost variations authorized by section 2853 of title 
10, United States Code, and any other cost variation authorized by law, 
the total cost of all projects carried out under section 2201 of this 
Act may not exceed--
            (1) the total amount authorized to be appropriated under 
        paragraphs (1) and (2) of subsection (a):
            (2) $8,345,000 (the balance of the amount authorized under 
        section 2201(a) for a bachelors enlisted quarters shipboard 
        ashore, Naval Station, Pascagoula, Mississippi);
            (3) $48,120,000 (the balance of the amount authorized under 
        section 2201(a) for a bachelors enlisted quarters shipboard 
        ashore, Naval Station, Norfolk, Virginia); and
            (4) $2,570,000 (the balance of the amount authorized under 
        section 2201(b) for a quality of life support facility, Naval 
        Air Station Sigonella, Italy).
    (c) Adjustment.--The total amount authorized to be appropriated 
pursuant to paragraphs (1) through (6) of subsection (a) is the sum of 
the amounts authorized to be appropriated in such paragraphs, reduced 
by--
            (1) $3,992,000, which represents savings resulting from 
        adjustments to foreign currency exchange rates for military 
        construction, military family housing construction, and 
        military family housing support outside the United States; and
            (2) $10,470,000, which represents adjustments for the 
        accounting of civilian personnel benefits.

SEC. 2205. MODIFICATION TO CARRY OUT CERTAIN FISCAL YEAR 2002 PROJECTS.

    (a) Military Construction Project at Naval Station, Norfolk, 
Virginia.--The table in section 2201(a) of the Military Construction 
Authorization Act for Fiscal Year 2002 (division B of Public Law 107-
107; 115 Stat. 1286) is amended--
            (1) in the item relating to Naval Station, Norfolk, 
        Virginia, by striking ``$139,270,000'' in the amount column and 
        inserting ``$139,550,000''; and
            (2) by striking the amount identified as the total in the 
        amount column and inserting ``$1,059,030,000''.
    (b) Conforming Amendment.--Section 2204(b)(2) of that Act (115 
Stat. 1289) is amended by striking ``$33,240,000'' and inserting 
``$33,520,000''.
    (c) Military Family Housing at Quantico, Virginia.--The table in 
section 2202(a) of that Act (115 Stat. 1287) is amended in the item 
relating to Marine Corps Combat Development Command, Quantico, 
Virginia, by striking ``60 Units'' in the purpose column and inserting 
``39 Units''.

                         TITLE XXIII--AIR FORCE

SEC. 2301. AUTHORIZED AIR FORCE CONSTRUCTION AND LAND ACQUISITION 
              PROJECTS.

    (a) Inside the United States.--Using amounts appropriated pursuant 
to the authorization of appropriations in section 2304(a)(1), the 
Secretary of the Air Force may acquire real property and carry out 
military construction projects for the installations and locations 
inside the United States, and in the amounts, set forth in the 
following table:


                   Air Force: Inside the United States
------------------------------------------------------------------------
                                     Installation or
             State                       location             Amount
------------------------------------------------------------------------
Alaska.........................  Clear Air Force Station     $14,400,000
                                 Eielson Air Force Base.     $41,100,000
Arizona........................  Davis-Monthan Air Force     $19,270,000
                                  Base.
Arkansas.......................  Little Rock Air Force       $25,600,000
                                  Base.
California.....................  Beale Air Force Base...     $11,740,000
                                 Travis Air Force Base..     $23,900,000
                                 Vandenberg Air Force        $10,500,000
                                  Base.
Colorado.......................  Buckley Air Force Base.     $17,700,000
                                 Peterson Air Force Base      $5,500,000
                                 Schriever Air Force          $5,700,000
                                  Base.
                                 United States Air Force      $4,200,000
                                  Academy.
District of Columbia...........  Bolling Air Force Base.      $5,000,000
Florida........................  Eglin Air Force Base...      $4,250,000
                                 Hurlburt Field.........     $15,000,000
                                 MacDill Air Force Base.      $7,000,000
Georgia........................  Robins Air Force Base..      $5,400,000
                                 Warner-Robins Air Force     $24,000,000
                                  Base.
Hawaii.........................  Hickam Air Force Base..      $1,350,000
Louisiana......................  Barksdale Air Force         $22,900,000
                                  Base.
Maryland.......................  Andrews Air Force Base.      $9,600,000
Massachusetts..................  Fourth Cliff, Scituate.      $9,500,000
                                 Hanscom Air Force Base.      $7,700,000
Mississippi....................  Keesler Air Force Base.     $22,000,000
Nebraska.......................  Offutt Air Force Base..     $11,000,000
Nevada.........................  Nellis Air Force Base..     $56,850,000
New Jersey.....................  McGuire Air Force Base.     $24,631,000
New Mexico.....................  Cannon Air Force Base..      $4,650,000
                                 Holloman Air Force Base      $4,650,000
                                 Kirtland Air Force Base     $21,900,000
North Carolina.................  Pope Air Force Base....      $9,700,000
                                 Seymour Johnson Air         $10,600,000
                                  Force Base.
North Dakota...................  Minot Air Force Base...     $18,000,000
Ohio...........................  Wright-Patterson Air        $35,400,000
                                  Force Base.
Oklahoma.......................  Altus Air Force Base...     $14,800,000
                                 Vance Air Force Base...      $4,800,000
South Carolina.................  Shaw Air Force Base....      $6,500,000
South Dakota...................  Ellsworth Air Force         $13,200,000
                                  Base.
Texas..........................  Goodfellow Air Force        $10,600,000
                                  Base.
                                 Lackland Air Force Base     $41,500,000
                                 Sheppard Air Force Base     $16,000,000
Utah...........................  Hill Air Force Base....     $16,500,000
Virginia.......................  Langley Air Force Base.     $71,940,000
Wyoming........................  F.E. Warren Air Force       $15,000,000
                                  Base.
                                                         ---------------
                                 Total..................    $721,531,000
------------------------------------------------------------------------

    (b) Outside the United States.--Using amounts appropriated pursuant 
to the authorization of appropriations in section 2304(a)(2), the 
Secretary of the Air Force may acquire real property and carry out 
military construction projects for the installations and locations 
outside the United States, and in the amounts, set forth in the 
following table:


                  Air Force: Outside the United States
------------------------------------------------------------------------
                                     Installation or
            Country                      location             Amount
------------------------------------------------------------------------
Germany........................  Ramstein Air Base......     $71,783,000
Guam...........................  Andersen Air Force Base     $31,000,000
Italy..........................  Aviano Air Base........      $6,600,000
Japan..........................  Kadena Air Base........      $6,000,000
Korea..........................  Osan Air Base..........     $15,100,000
Spain..........................  Naval Station, Rota....     $31,818,000
Turkey.........................  Incirlik Air Base......      $1,550,000
United Kingdom.................  Diego Garcia...........     $17,100,000
                                 Royal Air Force,            $19,000,000
                                  Fairford.
                                 Royal Air Force,            $13,400,000
                                  Lakenheath.
Wake Island....................  Wake Island............     $24,900,000
                                                         ---------------
                                     Total..............    $238,251,000
------------------------------------------------------------------------

    (c) Unspecified Worldwide.--Using the amounts appropriated pursuant 
to the authorization of appropriations in section 2304(a)(3), the 
Secretary of the Air Force may acquire real property and carry out 
military construction projects for the installation and location, and 
in the amount, set forth in the following table:


                    Air Force: Unspecified Worldwide
------------------------------------------------------------------------
            Location                   Installation           Amount
------------------------------------------------------------------------
Unspecified Worldwide..........  Classified Locations...     $24,993,000
------------------------------------------------------------------------

SEC. 2302. FAMILY HOUSING.

    (a) Construction and Acquisition.--Using amounts appropriated 
pursuant to the authorization of appropriations in section 
2304(a)(6)(A), the Secretary of the Air Force may construct or acquire 
family housing units (including land acquisition and supporting 
facilities) at the installations, for the purposes, and in the amounts 
set forth in the following table:


                                            Air Force: Family Housing
----------------------------------------------------------------------------------------------------------------
           State or Country              Installation or location             Purpose                 Amount
----------------------------------------------------------------------------------------------------------------
Arizona...............................  Luke Air Force Base......  140 Units....................     $18,954,000
California............................  Travis Air Force Base....  110 Units....................     $24,320,000
Colorado..............................  Peterson Air Force Base..  2 Units......................        $959,000
                                        United States Air Force    71 Units.....................     $12,424,000
                                         Academy.
Delaware..............................  Dover Air Force Base.....  112 Units....................     $19,615,000
Florida...............................  Eglin Air Force Base.....  Housing Office...............        $597,000
                                        Eglin Air Force Base.....  134 Units....................     $15,906,000
                                        MacDill Air Force Base...  96 Units.....................     $18,086,000
Hawaii................................  Hickam Air Force Base....  96 Units.....................     $29,050,000
Idaho.................................  Mountain Home Air Force    95 Units.....................     $24,392,000
                                         Base.
Kansas................................  McConnell Air Force Base.  Housing Maintenance Facility.      $1,514,000
Maryland..............................  Andrews Air Force Base...  53 Units.....................      $9,838,000
                                        Andrews Air Force Base...  52 Units.....................      $8,807,000
Mississippi...........................  Columbus Air Force Base..  Housing Office...............        $412,000
                                        Keesler Air Force Base...  117 Units....................     $16,605,000
Missouri..............................  Whiteman Air Force Base..  22 Units.....................      $3,977,000
Montana...............................  Malmstrom Air Force Base.  18 Units.....................      $4,717,000
New Mexico............................  Holloman Air Force Base..  101 Units....................     $20,161,000
North Carolina........................  Pope Air Force Base......  Housing Maintenance Facility.        $991,000
                                        Seymour Johnson Air Force  126 Units....................     $18,615,000
                                         Base.
North Dakota..........................  Grand Forks Air Force      150 Units....................     $30,140,000
                                         Base.
                                        Minot Air Force Base.....  112 Units....................     $21,428,000
                                        Minot Air Force Base.....  102 Units....................     $20,315,000
Oklahoma..............................  Vance Air Force Base.....  59 Units.....................     $11,423,000
South Dakota..........................  Ellsworth Air Force Base.  Housing Maintenance Facility.        $447,000
                                        Ellsworth Air Force Base.  22 Units.....................      $4,794,000
Texas.................................  Dyess Air Force Base.....  85 Units.....................     $14,824,000
                                        Randolph Air Force Base..  Housing Maintenance Facility.        $447,000
                                        Randolph Air Force Base..  112 Units....................     $14,311,000
Virginia..............................  Langley Air Force Base...  Housing Office...............      $1,193,000
Germany...............................  Ramstein Air Force Base..  19 Units.....................      $8,534,000
Korea.................................  Osan Air Base............  113 Units....................     $35,705,000
                                        Osan Air Base............  Housing Supply Warehouse.....        $834,000
United Kingdom........................  Royal Air Force            Housing Office and                 $2,203,000
                                         Lakenheath.                Maintenance Facility.
                                                                                                 ---------------
                                        Total....................                                   $416,438,000
----------------------------------------------------------------------------------------------------------------

    (b) Planning and Design.--Using amounts appropriated pursuant to 
the authorization of appropriations in section 2304(a)(6)(A), the 
Secretary of the Air Force may carry out architectural and engineering 
services and construction design activities with respect to the 
construction or improvement of military family housing units in an 
amount not to exceed $34,188,000.

SEC. 2303. IMPROVEMENTS TO MILITARY FAMILY HOUSING UNITS.

    Subject to section 2825 of title 10, Unites States Code, and using 
amounts appropriated pursuant to the authorization of appropriations in 
section 2304(a)(6)(A), the Secretary of the Air Force may improve 
existing military family housing units in an amount not to exceed 
$226,068,000.

SEC. 2304. AUTHORIZATION OF APPROPRIATIONS, AIR FORCE.

    (a) In General.--Funds are hereby authorized to be appropriated for 
fiscal years beginning after September 30, 2002, for military 
construction, land acquisition, and military family housing functions 
of the Department of the Air Force in the total amount of 
$2,597,272,000, as follows:
            (1) For military construction projects inside the United 
        States authorized by section 2301(a), $709,431,000.
            (2) For military construction projects outside the United 
        States authorized by section 2301(b), $238,251,000.
            (3) For the military construction projects at unspecified 
        worldwide locations authorized by section 2301(c), $24,993,000.
            (4) For unspecified minor construction projects authorized 
        by section 2805 of title 10, United States Code, $11,500,000.
            (5) For architectural and engineering services and 
        construction design under section 2807 of title 10, United 
        States Code, $81,416,000.
            (6) For military housing functions:
                    (A) For construction and acquisition, planning and 
                design, and improvement of military family housing and 
                facilities, $676,694,000.
                    (B) For support of military family housing 
                (including functions described in section 2833 of title 
                10, United States Code), $874,050,000.
    (b) Limitation on Total Cost of Construction Projects.--
Notwithstanding the cost variations authorized by section 2853 of title 
10, United States Code, and any other cost variation authorized by law, 
the total cost of all projects carried out under section 2301 of this 
Act may not exceed--
            (1) the total amount authorized to be appropriated under 
        paragraphs (1), (2) and (3) of subsection (a);
            (2) $7,100,000 (the balance of the amount authorized under 
        section 2301(a) for construction of a consolidated base 
        engineer complex at Altus Air Force Base, Oklahoma); and
            (3) $5,000,000 (the balance of the amount authorized under 
        section 2301(a) for construction of a storm drainage system at 
        F.E. Warren Air Force Base, Wyoming).
    (c) Adjustment.--The total amount authorized to be appropriated 
pursuant to paragraphs (1) through (6) of subsection (a) is the sum of 
the amounts authorized to be appropriated in such paragraphs, reduced 
by $19,063,000, which represents savings resulting from adjustments to 
foreign currency exchange rates for military construction, military 
family housing construction, and military family housing support 
outside the United States.

SEC. 2305. AUTHORITY FOR USE OF MILITARY CONSTRUCTION FUNDS FOR 
              CONSTRUCTION OF PUBLIC ROAD NEAR AVIANO AIR BASE, ITALY, 
              CLOSED FOR FORCE PROTECTION PURPOSES.

    (a) Authority To Use Funds.--The Secretary of the Air Force may, 
using amounts authorized to be appropriated by section 2301(b), carry 
out a project to provide a public road, and associated improvements, to 
replace a public road adjacent to Aviano Air Base, Italy, that has been 
closed for force protection purposes.
    (b) Scope of Authority.--(1) The authority of the Secretary to 
carry out the project referred to in subsection (a) shall include 
authority as follows:
            (A) To acquire property for the project for transfer to a 
        host nation authority.
            (B) To provide funds to a host nation authority to acquire 
        property for the project.
            (C) To make a contribution to a host nation authority for 
        purposes of carrying out the project.
            (D) To provide vehicle and pedestrian access to landowners 
        effected by the project.
    (2) The acquisition of property using authority in subparagraph (A) 
or (B) of paragraph (1) may be made regardless of whether or not 
ownership of such property will vest in the United States.
    (c) Inapplicability of Certain Real Property Management 
Requirement.--Section 2672(a)(1)(B) of title 10, United States Code, 
shall not apply with respect to any acquisition of interests in land 
for purposes of the project authorized by subsection (a).

SEC. 2306. ADDITIONAL PROJECT AUTHORIZATION FOR AIR TRAFFIC CONTROL 
              FACILITY AT DOVER AIR FORCE BASE, DELAWARE.

    (a) Project Authorized.--In addition to the projects authorized by 
section 2301(a), the Secretary of the Air Force may carry out carry out 
a military construction project, including land acquisition relating 
thereto, for construction of a new air traffic control facility at 
Dover Air Force Base, Delaware, in the amount of $7,500,000.
    (b) Authorization of Appropriations.--The amount authorized to be 
appropriated by section 2304(a), and by paragraph (1) of that section, 
is hereby increased by $7,500,000.
    (c) Offset.--The amount authorized to be appropriated by section 
301(a)(10) for operation and maintenance for the Army National Guard is 
hereby reduced by $7,500,000, with the amount of the reduction to be 
allocated to the Classified Network Program.

SEC. 2307. AVAILABILITY OF FUNDS FOR CONSOLIDATION OF MATERIALS 
              COMPUTATIONAL RESEARCH FACILITY AT WRIGHT-PATTERSON AIR 
              FORCE BASE, OHIO.

    (a) Availability.--Of the amount authorized to be appropriated by 
section 2304(a), and paragraph (1) of that section, for the Air Force 
and available for military construction projects at Wright-Patterson 
Air Force Base, Ohio, $15,200,000 may be available for a military 
construction project for consolidation of the materials computational 
research facility at Wright-Patterson Air Force Base (PNZHTV033301A).
    (b) Offset.--(1) The amount authorized to be appropriated by 
section 301(a)(4) for the Air Force for operation and maintenance is 
hereby reduced by $2,800,000, with the amount of the reduction to be 
allocated to Recruiting and Advertising.
    (2) Of the amount authorized to be appropriated by section 2304(a), 
and paragraph (1) of that section, for the Air Force and available for 
military construction projects at Wright-Patterson Air Force Base--
            (A) the amount available for a dormitory is hereby reduced 
        by $10,400,000; and
            (B) the amount available for construction of a Fully 
        Contained Small Arms Range Complex is hereby reduced by 
        $2,000,000.

                      TITLE XXIV--DEFENSE AGENCIES

SEC. 2401. AUTHORIZED DEFENSE AGENCIES CONSTRUCTION AND LAND 
              ACQUISITION PROJECTS.

    (a) Inside the United States.--Using amounts appropriated pursuant 
to the authorization of appropriations in section 2404(a)(1), the 
Secretary of Defense may acquire real property and carry out military 
construction projects for the installations and locations inside the 
United States, and in the amounts, set forth in the following table:


               Defense Agencies: Inside the United States
------------------------------------------------------------------------
                                     Installation or
             Agency                      location             Amount
------------------------------------------------------------------------
Missile Defense Agency.........  Kauai, Hawaii..........     $23,400,000
Defense Intelligence Agency....  Bolling Air Force Base,    $121,958,000
                                  District of Columbia.
Defense Logistics Agency.......  Defense Supply Center,       $5,021,000
                                  Columbus, Ohio.
                                 Defense Supply Center,       $5,500,000
                                  Richmond, Virginia....
                                 Naval Air Station, New       $9,500,000
                                  Orleans, Louisiana....
                                 Travis Air Force Base,      $16,000,000
                                  California............
Defense Threat Reduction Agency  Fort Belvoir, Virginia.     $76,388,000
Department of Defense            Fort Bragg, North            $2,036,000
 Dependents Schools.              Carolina.
                                 Fort Jackson, South          $2,506,000
                                  Carolina..............
                                 Marine Corps Base, Camp     $12,138,000
                                  LeJeune, North
                                  Carolina..............
                                 Marine Corps Base,           $1,418,000
                                  Quantico, Virginia....
                                 United States Military       $4,347,000
                                  Academy, West Point,
                                  New York..............
Joint Chiefs of Staff..........  Conus Various..........     $25,000,000
National Security Agency.......  Fort Meade, Maryland...      $4,484,000
Special Operations Command.....  Fort Bragg, North           $30,800,000
                                  Carolina.
                                 Hurlburt Field, Florida     $11,100,000
                                 Naval Amphibious Base,      $14,300,000
                                  Little Creek, Virginia
                                 Stennis Space Center,        $5,000,000
                                  Mississippi...........
TRICARE Management Activity....  Elmendorf Air Force         $10,400,000
                                  Base, Alaska.
                                 Hickam Air Force Base,       $2,700,000
                                  Hawaii................
Washington Headquarters          Arlington, Virginia....     $18,000,000
 Services.
                                 Washington Headquarters      $2,500,000
                                  Services, District of
                                  Columbia.
                                                         ---------------
                                     Total..............    $404,496,000
------------------------------------------------------------------------

    (b) Outside the United States.--Using amounts appropriated pursuant 
to the authorization of appropriations in section 2404(a)(2), the 
Secretary of Defense may acquire real property and carry out military 
construction projects for the installations and locations outside the 
United States, and in the amounts, set forth in the following table:


               Defense Agencies: Outside the United States
------------------------------------------------------------------------
                                     Installation or
             Agency                      location             Amount
------------------------------------------------------------------------
Defense Logistics Agency.......  Andersen Air Force          $17,586,000
                                  Base, Guam.
                                 Lajes Field, Azores,        $19,000,000
                                  Portugal..............
                                 Naval Forces Marianas        $6,000,000
                                  Islands, Guam.........
                                 Naval Station, Rota,        $23,400,000
                                  Spain.................
                                 Royal Air Force,            $17,000,000
                                  Fairford, United
                                  Kingdom...............
                                 Yokota Air Base, Japan.     $23,000,000
Department of Defense            Kaiserslautern, Germany        $957,000
 Dependents Schools.
                                 Lajes Field, Azores,         $1,192,000
                                  Portugal..............
                                 Seoul, Korea...........     $31,683,000
                                 Mons, Belgium..........      $1,573,000
                                 Spangdahlem Air Base,          $997,000
                                  Germany...............
                                 Vicenza, Italy.........      $2,117,000
TRICARE Management Activity....  Naval Support Activity,     $41,449,000
                                  Naples, Italy.
                                 Spangdahlem Air Base,       $39,629,000
                                  Germany...............
                                                         ---------------
                                     Total..............    $225,583,000
------------------------------------------------------------------------

SEC. 2402. IMPROVEMENTS TO MILITARY FAMILY HOUSING UNITS.

    Subject to section 2825 of title 10, United States Code, and using 
amounts appropriated pursuant to the authorization of appropriations in 
section 2404(a)(8)(A), the Secretary of Defense may improve existing 
military family housing units in an amount not to exceed $5,480,000.

SEC. 2403. ENERGY CONSERVATION PROJECTS.

    Using amounts appropriated pursuant to the authorization of 
appropriations in section 2404(a)(4), the Secretary of Defense may 
carry out energy conservation projects under section 2865 of title 10, 
United States Code, in the amount of $50,531,000.

SEC. 2404. AUTHORIZATION OF APPROPRIATIONS, DEFENSE AGENCIES.

    (a) In General.--Funds are hereby authorized to be appropriated for 
fiscal years beginning after September 30, 2002, for military 
construction, land acquisition, and military family housing functions 
of the Department of Defense (other than the military departments) in 
the total amount of $1,316,972,000, as follows:
            (1) For military construction projects inside the United 
        States authorized by section 2401(a), $367,896,000.
            (2) For military construction projects outside the United 
        States authorized by section 2401(b), $225,583,000.
            (3) For unspecified minor construction projects under 
        section 2805 of title 10, United States Code, $16,293,000.
            (4) For contingency construction projects of the Secretary 
        of Defense under section 2804 of title 10, United States Code, 
        $10,000,000.
            (5) For architectural and engineering services and 
        construction design under section 2807 of title 10, United 
        States Code, $44,232,000.
            (6) For energy conservation projects authorized by section 
        2403 of this Act, $50,531,000.
            (7) For base closure and realignment activities as 
        authorized by the Defense Base Closure and Realignment Act of 
        1990 (part A of title XXIX of Public Law 101-510; 10 U.S.C. 
        2687 note), $545,138,000.
            (8) For military family housing functions:
                    (A) For improvement of military family housing and 
                facilities, $5,480,000.
                    (B) For support of military family housing 
                (including functions described in section 2833 of title 
                10, United States Code), $42,432,000.
                    (C) For credit to the Department of Defense Family 
                Housing Improvement Fund established by section 
                2883(a)(1) of title 10, United States Code, $2,000,000.
            (9) For payment of a claim against the Hospital Replacement 
        project at Elmendorf Air Force Base, Alaska, $10,400,000.
    (b) Limitation on Total Cost of Construction Projects.--
Notwithstanding the cost variations authorized by section 2853 of title 
10, United States Code, and any other cost variation authorized by law, 
the total cost of all projects carried out under section 2401 of this 
Act may not exceed--
            (1) the total amount authorized to be appropriated under 
        paragraphs (1) and (2) of subsection (a); and
            (2) $26,200,000 (the balance of the amount authorized under 
        section 2401(a) for the construction of the Defense Threat 
        Reduction Center, Fort Belvoir, Virginia).
    (c) Adjustment.--The total amount authorized to be appropriated 
pursuant to paragraphs (1) through (9) of subsection (a) is the sum of 
the amounts authorized to be appropriated in such paragraphs, reduced 
by--
            (1) $2,976,000, which represents savings resulting from 
        adjustments to foreign currency exchange rates for military 
        construction, military family housing construction, and 
        military family housing support outside the United States; and
            (2) $37,000, which represents adjustments for the 
        accounting of civilian personnel benefits.

   TITLE XXV--NORTH ATLANTIC TREATY ORGANIZATION SECURITY INVESTMENT 
                                PROGRAM

SEC. 2501. AUTHORIZED NATO CONSTRUCTION AND LAND ACQUISITION PROJECTS.

    The Secretary of Defense may make contributions for the North 
Atlantic Treaty Organization Security Investment program as provided in 
section 2806 of title 10, United States Code, in an amount not to 
exceed the sum of the amount authorized to be appropriated for this 
purpose in section 2502 and the amount collected from the North 
Atlantic Treaty Organization as a result of construction previously 
financed by the United States.

SEC. 2502. AUTHORIZATION OF APPROPRIATIONS, NATO.

    Funds are hereby authorized to be appropriated for fiscal years 
beginning after September 30, 2002, for contributions by the Secretary 
of Defense under section 2806 of title 10, United States Code, for the 
share of the United States of the cost of projects for the North 
Atlantic Treaty Organization Security Investment program authorized by 
section 2501, in the amount of $168,200,000.

            TITLE XXVI--GUARD AND RESERVE FORCES FACILITIES

SEC. 2601. AUTHORIZED GUARD AND RESERVE CONSTRUCTION AND LAND 
              ACQUISITION PROJECTS.

    There are authorized to be appropriated for fiscal years beginning 
after September 30, 2002, for the costs of acquisition, architectural 
and engineering services, and construction of facilities for the Guard 
and Reserve Forces, and for contributions there for, under chapter 1803 
of title 10, United States Code (including the cost of acquisition of 
land for those facilities), the following amounts:
            (1) For the Department of the Army--
                    (A) for the Army National Guard of the United 
                States, $186,588,000; and
                    (B) for the Army Reserve, $62,992,000.
            (2) For the Department of the Navy, for the Naval and 
        Marine Corps Reserve, $58,671,000.
            (3) For the Department of the Air Force--
                    (A) for the Air National Guard of the United 
                States, $212,459,000; and
                    (B) for the Air Force Reserve, $59,883,000.

SEC. 2602. ARMY NATIONAL GUARD RESERVE CENTER, LANE COUNTY, OREGON.

    (a) Increase in Authorization of Appropriations.--The amount 
authorized to be appropriated by section 2601(1)(A) for the Army 
National Guard of the United States is hereby increased by $9,000,000.
    (b) Availability.--(1) Of the amount authorized to be appropriated 
by section 2601(1)(A) for the Army National Guard of the United States, 
as increased by subsection (a), $9,000,000 may be available for a 
military construction project for a Reserve Center in Lane County, 
Oregon.
    (2) The amount available under paragraph (1) for the military 
construction project referred to in that paragraph is in addition to 
any other amounts available under this Act for that project.
    (c) Offset.--(1) The amount authorized to be appropriated by 
section 201(2) for research, development, test, and evaluation for the 
Navy is hereby reduced by $2,500,000, with the amount of the reduction 
to be allocated to Warfighter Sustainment Advanced Technology (PE 
0603236N).
    (2) The amount authorized to be appropriated by section 301(a)(6) 
for operation and maintenance for the Army Reserve is hereby reduced by 
$6,000,000, with the amount of the reduction to be allocated to the 
Enhanced Secure Communications Program.

SEC. 2603. ADDITIONAL PROJECT AUTHORIZATION FOR COMPOSITE SUPPORT 
              FACILITY FOR ILLINOIS AIR NATIONAL GUARD.

    (a) Increase in Authorization of Appropriations.--The amount 
authorized to be appropriated by section 2601(3)(A) for the Air 
National Guard is hereby increased by $10,000,000.
    (b) Availability.--Of the amount authorized to be appropriated by 
section 2601(3)(A) for the Air National Guard, as increased by 
subsection (a), $10,000,000 may be available for a military 
construction project for a Composite Support Facility for the 183rd 
Fighter Wing of the Illinois Air National Guard.
    (c) Offset.--The amount authorized to be appropriated by section 
301(a)(5) for operation and maintenance, defense-wide, is hereby 
reduced by $10,000,000, with the amount of the reduction to be 
allocated to amounts available for the Information Operations Program.

        TITLE XXVII--EXPIRATION AND EXTENSION OF AUTHORIZATIONS

SEC. 2701. EXPIRATION OF AUTHORIZATIONS AND AMOUNTS REQUIRED TO BE 
              SPECIFIED BY LAW.

    (a) Expiration of Authorizations After Three Years.--Except as 
provided in subsection (b), all authorizations contained in titles XXI 
through XXVI for military construction projects, land acquisition, 
family housing projects and facilities, and contributions to the North 
Atlantic Treaty Organization Security Investment program (and 
authorizations of appropriations therefor) shall expire on the later 
of--
            (1) October 1, 2005; or
            (2) the date of the enactment of an Act authorizing funds 
        for military construction for fiscal year 2006.
    (b) Exception.--Subsection (a) shall not apply to authorizations 
for military construction projects, land acquisition, family housing 
projects, and facilities, and contributions to the North Atlantic 
Treaty Organization Security Investment program (and authorizations of 
appropriations therefor) for which appropriated funds have been 
obligated before the later of--
            (1) October 1, 2005; or
            (2) the date of the enactment of an Act authorized funds 
        for fiscal year 2005 for military construction projects, land 
        acquisition, family housing projects and facilities, and 
        contributions to the North Atlantic Treaty Organization 
        Security Investment program.

SEC. 2702. EXTENSION OF AUTHORIZATIONS OF CERTAIN FISCAL YEAR 2000 
              PROJECTS.

    (a) Extension of Certain Projects.--Notwithstanding section 2701 of 
the Military Construction Authorization Act for Fiscal Year 2000 
(division B of Public Law 106-65; 113 Stat. 841), authorizations set 
forth in the tables in subsection (b), as provided in section 2302 or 
2601 of that Act, shall remain in effect until October 1, 2003, or the 
date of the enactment of an Act authorizing funds for military 
construction for fiscal year 2004, whichever is later.
    (b) Tables.--The tables referred to in subsection (a) are as 
follows:


                               Air Force: Extension of 2000 Project Authorization
----------------------------------------------------------------------------------------------------------------
                 State                   Installation or location             Project                 Amount
----------------------------------------------------------------------------------------------------------------
Oklahoma..............................  Tinker Air Force Base....  Replace Family Housing (41         $6,000,000
                                                                    Units).
Texas.................................  Lackland Air Force Base..  Dormitory....................      $5,300,000
----------------------------------------------------------------------------------------------------------------



                          Army National Guard: Extension of 2000 Project Authorization
----------------------------------------------------------------------------------------------------------------
                 State                   Installation or location             Project                 Amount
----------------------------------------------------------------------------------------------------------------
Virginia..............................  Fort Pickett.............  Multi-Purpose Range Complex-      $13,500,000
                                                                    Heavy.
----------------------------------------------------------------------------------------------------------------

SEC. 2703. EXTENSION OF AUTHORIZATIONS OF CERTAIN FISCAL YEAR 1999 
              PROJECTS.

    (a) Extension.--Notwithstanding section 2701 of the Military 
Construction Authorization Act for Fiscal Year 1999 (division B of 
Public Law 105-261; 112 Stat. 2199), authorizations set forth in the 
table in subsection (b), as provided in section 2302 of that Act and 
extended by section 2702 of the Military Construction Authorization Act 
for Fiscal Year 2002 (division B of Public Law 107-107; 115 Stat. 
1301), shall remain in effect until October 1, 2003, or the date of the 
enactment of an Act authorizing funds for military construction for 
fiscal year 2004, whichever is later.
    (b) Table.--The table referred to in subsection (a) is as follows:


                               Air Force: Extension of 1999 Project Authorizations
----------------------------------------------------------------------------------------------------------------
                 State                   Installation or location             Project                 Amount
----------------------------------------------------------------------------------------------------------------
Delaware..............................  Dover Air Force Base.....  Replace Family Housing (55         $8,988,000
                                                                    Units).
Florida...............................  Patrick Air Force Base...  Replace Family Housing (46         $9,692,000
                                                                    Units).
New Mexico............................  Kirtland Air Force Base..  Replace Family Housing (37         $6,400,000
                                                                    Units).
Ohio..................................  Wright-Patterson Air       Replace Family Housing (40         $5,600,000
                                         Force Base.                Units).
----------------------------------------------------------------------------------------------------------------

SEC. 2704. EFFECTIVE DATE.

    Titles XXI, XXII, XXIII, XXIV, XXV, XXVI, and XXVII of this Act 
shall take effect on the later of--
            (1) October 1, 2002; or
            (2) the date of the enactment of this Act.

                    TITLE XXVIII--GENERAL PROVISIONS

 Subtitle A--Military Construction Program and Military Family Housing 
                                Changes

SEC. 2801. LEASE OF MILITARY FAMILY HOUSING IN KOREA.

    (a) Increase in Number of Units Authorized for Lease at Current 
Maximum Amount.--Paragraph (3) of section 2828(e) of title 10, United 
States Code, is amended by striking ``800 units'' and inserting ``1,175 
units''.
    (b) Authority To Lease Additional Number of Units at Increased 
Maximum Amount.--That section is further amended--
            (1) by redesignating paragraphs (4) and (5) as paragraphs 
        (5) and (6), respectively;
            (2) by inserting after paragraph (3) the following new 
        paragraph (4):
    ``(4) In addition to the units of family housing referred to in 
paragraph (1) for which the maximum lease amount is $25,000 per unit 
per year, the Secretary of the Army may lease not more than 2,400 units 
of family housing in Korea subject to a maximum lease amount of $35,000 
per unit per year.'';
            (3) in paragraph (5), as so redesignated, by striking ``and 
        (3)'' and inserting ``(3), and (4)''; and
            (4) in paragraph (6), as so redesignated, by striking 
        ``53,000'' and inserting ``55,775''.

SEC. 2802. REPEAL OF SOURCE REQUIREMENTS FOR FAMILY HOUSING 
              CONSTRUCTION OVERSEAS.

    Section 803 of the Military Construction Authorization Act, 1984 
(Public Law 98-115; 10 U.S.C. 2821 note) is repealed.

SEC. 2803. MODIFICATION OF LEASE AUTHORITIES UNDER ALTERNATIVE 
              AUTHORITY FOR ACQUISITION AND IMPROVEMENT OF MILITARY 
              HOUSING.

    (a) Leasing of Housing.--Subsection (a) of section 2874 of title 
10, United States Code, is amended to read as follows:
    ``(a) Lease Authorized.--(1) The Secretary concerned may enter into 
contracts for the lease of housing units that the Secretary determines 
are suitable for use as military family housing or military 
unaccompanied housing.
    ``(2) The Secretary concerned shall utilize housing units leased 
under paragraph (1) as military family housing or military 
unaccompanied housing, as appropriate.''.
    (b) Repeal of Interim Lease Authority.--Section 2879 of such title 
is repealed.
    (c) Conforming and Clerical Amendments.--(1) The heading for 
section 2874 of such title is amended to read as follows:
``Sec. 2874. Leasing of housing''.
    (2) The table of sections at the beginning of subchapter IV of 
chapter 169 of such title is amended--
            (A) by striking the item relating to section 2874 and 
        inserting the following new item:

``2874. Leasing of housing.'';
        and
            (B) by striking the item relating to section 2879.

        Subtitle B--Real Property and Facilities Administration

SEC. 2811. AGREEMENTS WITH PRIVATE ENTITIES TO ENHANCE MILITARY 
              TRAINING, TESTING, AND OPERATIONS.

    (a) In General.--Chapter 159 of title 10, United States Code, is 
amended by inserting after section 2696 the following new section:
``Sec. 2697. Agreements with private entities to enhance military 
              training, testing, and operations
    ``(a) Agreements With Private Entities Authorized.--The Secretary 
of Defense or the Secretary of a military department may enter into an 
agreement with a private entity described in subsection (b) to address 
the use or development of real property in the vicinity of an 
installation under the jurisdiction of such Secretary for purposes of--
            ``(1) limiting any development or use of such property that 
        would otherwise be incompatible with the mission of such 
        installation; or
            ``(2) preserving habitat on such property in a manner that 
        is compatible with both--
                    ``(A) current or anticipated environmental 
                requirements that would or might otherwise restrict, 
                impede, or otherwise interfere, whether directly or 
                indirectly, with current or anticipated military 
                training, testing, or operations on such installation; 
                and
                    ``(B) current or anticipated military training, 
                testing, or operations on such installation.
    ``(b) Covered Private Entities.--A private entity described in this 
subsection is any private entity that has as its stated principal 
organizational purpose or goal the conservation, restoration, or 
preservation of land and natural resources, or a similar purpose or 
goal.
    ``(c) Inapplicability of Certain Contract Requirements.--Chapter 63 
of title 31 shall not apply to any agreement entered into under this 
section.
    ``(d) Acquisition and Acceptance of Property and Interests.--(1) 
Subject to the provisions of this subsection, an agreement with a 
private entity under this section--
            ``(A) may provide for the private entity to acquire all 
        right, title, and interest in and to any real property, or any 
        lesser interest therein, as may be appropriate for purposes of 
        this section; and
            ``(B) shall provide for the private entity to transfer to 
        the United States, upon the request of the United States, any 
        property or interest so acquired.
    ``(2) Property or interests may not be acquired pursuant to an 
agreement under this section unless the owner of such property or 
interests, as the case may be, consents to the acquisition.
    ``(3) An agreement under this section providing for the acquisition 
of property or interests under paragraph (1)(A) shall provide for the 
sharing by the United States and the private entity concerned of the 
costs of the acquisition of such property or interests.
    ``(4) The Secretary concerned shall identify any property or 
interests to be acquired pursuant to an agreement under this section. 
Such property or interests shall be limited to the minimum property or 
interests necessary to ensure that the property concerned is developed 
and used in a manner appropriate for purposes of this section.
    ``(5) The Secretary concerned may accept on behalf of the United 
States any property or interest to be transferred to the United States 
under paragraph (1)(B).
    ``(6) The Secretary concerned may, for purposes of the acceptance 
of property or interests under this subsection, accept an appraisal or 
title documents prepared or adopted by a non-Federal entity as 
satisfying the applicable requirements of section 301 of the Uniform 
Relocation Assistance and Real Property Acquisition Policies Act of 
1970 (42 U.S.C. 4651) or section 355 of the Revised Statutes (40 U.S.C. 
255) if the Secretary finds that such appraisal or title documents 
substantially comply with such requirements.
    ``(e) Additional Terms and Conditions.--The Secretary concerned may 
require such additional terms and conditions in an agreement under this 
section as such Secretary considers appropriate to protect the 
interests of the United States.
    ``(f) Funding.--(1) Except as provided in paragraph (2), amounts 
authorized to be appropriated to the Range Enhancement Initiative Fund 
of the Department of Defense are available for purposes of any 
agreement under this section.
    ``(2) In the case of an installation operated primarily with funds 
authorized to be appropriated for research, development, test, and 
evaluation, funds authorized to be appropriated for the Department of 
Defense, or the military department concerned, for research, 
development, test, and evaluation are available for purposes of an 
agreement under this section with respect to such installation.
    ``(3) Amounts in the Fund that are made available for an agreement 
of a military department under this section shall be made available by 
transfer from the Fund to the applicable operation and maintenance 
account of the military department, including the operation and 
maintenance account for the active component, or for a reserve 
component, of the military department.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by inserting after the item relating to section 
2696 the following new item:

``2697. Agreements with private entities to enhance military training, 
                            testing, and operations.''.

SEC. 2812. CONVEYANCE OF SURPLUS REAL PROPERTY FOR NATURAL RESOURCE 
              CONSERVATION.

    (a) In General.--(1) Chapter 159 of title 10, United States Code, 
as amended by section 2811 of this Act, is further amended by inserting 
after section 2697 the following new section:
``Sec. 2698. Conveyance of surplus real property for natural resource 
              conservation
    ``(a) Authority To Convey.--Subject to subsection (c), the 
Secretary of a military department may, in the sole discretion of such 
Secretary, convey to any State or local government or instrumentality 
thereof, or private entity that has as its primary purpose or goal the 
conservation of open space or natural resources on real property, all 
right, title, and interest of the United States in and to any real 
property, including any improvements thereon, under the jurisdiction of 
such Secretary that is described in subsection (b).
    ``(b) Covered Real Property.--Real property described in this 
subsection is any property that--
            ``(1) is suitable, as determined by the Secretary 
        concerned, for use for the conservation of open space or 
        natural resources;
            ``(2) is surplus property for purposes of title II of the 
        Federal Property and Administrative Services Act of 1949 (40 
        U.S.C. 471 et seq.); and
            ``(3) has been available for public benefit conveyance 
        under that title for a sufficient time, as determined by the 
        Secretary concerned in consultation with the Administrator of 
        General Services, to permit potential claimants to seek public 
        benefit conveyance of such property, but without the submittal 
        during that time of a request for such conveyance.
    ``(c) Conditions of Conveyance.--Real property may not be conveyed 
under this section unless the conveyee of such property agrees that 
such property--
            ``(1) shall be used and maintained for the conservation of 
        open space or natural resources in perpetuity, unless otherwise 
        provided for under subsection (e); and
            ``(2) may be subsequently conveyed only if--
                    ``(A) the Secretary concerned approves in writing 
                such subsequent conveyance;
                    ``(B) the Secretary concerned notifies the 
                appropriate committees of Congress of the subsequent 
                conveyance not later than 21 days before the subsequent 
                conveyance; and
                    ``(C) after such subsequent conveyance, shall be 
                used and maintained for the conservation of open space 
                or natural resources in perpetuity, unless otherwise 
                provided for under subsection (e).
    ``(d) Use for Incidental Production of Revenue.--Real property 
conveyed under this section may be used for the incidental production 
of revenue, as determined by the Secretary concerned, if such 
production of revenue is compatible with the use of such property for 
the conservation of open space or natural resources, as so determined.
    ``(e) Reversion.--If the Secretary concerned determines at any time 
that real property conveyed under this section is not being used and 
maintained in accordance with the agreement of the conveyee under 
subsection (c), all right, title, and interest in and to such real 
property, including any improvements thereon, shall revert to the 
United States, and the United States shall have the right of immediate 
entry thereon.
    ``(f) Property Under Base Closure Laws.--The Secretary concerned 
may not make a conveyance under this section of any real property to be 
disposed of under a base closure law in a manner that is inconsistent 
with the requirements and conditions of such base closure law.
    ``(g) Additional Terms and Conditions.--The Secretary concerned may 
establish such additional terms and conditions in connection with a 
conveyance of real property under this section as such Secretary 
considers appropriate to protect the interests of the United States.
    ``(h) Definitions.--In this section:
            ``(1) The term `appropriate committees of Congress' has the 
        meaning given that term in section 2801(c)(4) of this title.
            ``(2) The term `State' includes the District of Columbia, 
        the Commonwealth of Puerto Rico, the Commonwealth of the 
        Northern Marianas, and the territories and possessions of the 
        United States.
            ``(3) The term `base closure law' means the following:
                    ``(A) Section 2687 of this title.
                    ``(B) Title II of the Defense Authorization 
                Amendments and Base Closure and Realignment Act of 1988 
                (10 U.S.C. 2687 note).
                    ``(C) The Defense Base Closure and Realignment Act 
                of 1990 (part A of title XXIX of Public Law 101-510; 10 
                U.S.C. 2687 note).
                    ``(D) Any other similar authority for the closure 
                or realignment of military installations that is 
                enacted after the date of the enactment of the National 
                Defense Authorization Act for Fiscal Year 2003.''.
    (2) The table of sections at the beginning of chapter 159 of that 
title, as amended by section 2811 of this Act, is further amended by 
inserting after the item relating to section 2687 the following new 
item:

``2698. Conveyance of surplus real property for natural resource 
                            conservation.''.
    (b) Acceptance of Funds to Cover Administrative Expenses.--Section 
2695(b) of that title is amended by adding at the end the following new 
paragraph:
            ``(5) The conveyance of real property under section 2698 of 
        this title.''.
    (c) Agreements With Private Entities.--Section 2701(d) of that 
title is amended--
            (1) in paragraph (1), by striking ``with any State or local 
        government agency, or with any Indian tribe,'' and inserting 
        ``any State or local government agency, any Indian tribe, or, 
        for purposes under section 2697 or 2698 of this title, with any 
        private entity''; and
            (2) by striking paragraph (4), as redesignated by section 
        311(1) of this Act, and inserting the following new paragraph 
        (4):
            ``(4) Definitions.--In this subsection:
                    ``(A) The term `Indian tribe' has the meaning given 
                such term in section 101(36) of Comprehensive 
                Environmental Response, Compensation, and Liability Act 
                of 1980 (42 U.S.C. 9601(36)).
                    ``(B) The term `private entity' means any private 
                entity that has as its stated principal organizational 
                purpose or goal the conservation, restoration, or 
                preservation of land and natural resources, or a 
                similar purpose or goal.''.

SEC. 2813. MODIFICATION OF DEMONSTRATION PROGRAM ON REDUCTION IN LONG-
              TERM FACILITY MAINTENANCE COSTS.

    (a) Administrator of Program.--Subsection (a) of section 2814 of 
the Military Construction Authorization Act for Fiscal Year 2002 
(division B of Public Law 107-107; 115 Stat. 1310; 10 U.S.C. 2809 note) 
is amended by striking ``Secretary of the Army'' and inserting 
``Secretary of Defense or the Secretary of a military department''.
    (b) Contracts.--Subsection (b) of that section is amended to read 
as follows:
    ``(b) Contracts.--(1) Not more than 12 contracts may contain 
requirements referred to in subsection (a) for the purpose of the 
demonstration program.
    ``(2) Except as provided in paragraph (3), the demonstration 
program may only cover contracts entered into on or after the date of 
the enactment of the National Defense Authorization Act for Fiscal Year 
2003.
    ``(3) The Secretary of the Army shall treat any contract containing 
requirements referred to in subsection (a) that was entered into under 
the authority in that subsection during the period beginning on 
December 28, 2001, and ending on the date of the enactment of the 
National Defense Authorization Act for Fiscal Year 2003 as a contract 
for the purpose of the demonstration program under that subsection.''.
    (c) Reporting Requirements.--Subsection (d) of that section is 
amended by striking ``Secretary of the Army'' and inserting ``Secretary 
of Defense''.
    (d) Funding.--(1) Subsection (f) of that section is amended by 
striking ``the Army'' and inserting ``the military departments or 
defense-wide''.
    (2) The amendment made by paragraph (1) shall not affect the 
availability for the purpose of the demonstration program under section 
2814 of the Military Construction Authorization Act for Fiscal Year 
2002, as amended by this section, of any amounts authorized to be 
appropriated before the date of the enactment of this Act for the Army 
for military construction that have been obligated for the 
demonstration program, but not expended, as of that date.

                      Subtitle C--Land Conveyances

SEC. 2821. CONVEYANCE OF CERTAIN LANDS IN ALASKA NO LONGER REQUIRED FOR 
              NATIONAL GUARD PURPOSES.

    (a) Conveyance Authorized.--The Secretary of the Army may convey to 
the State of Alaska, or any governmental entity, Native Corporation, or 
Indian tribe within the State of Alaska, all right, title, and interest 
of the United States in and to any parcel of real property, including 
any improvements thereon, described in subsection (b) that the 
Secretary considers appropriate in the public interest.
    (b) Covered Property.--Real property described in this subsection 
is any property located in the State of Alaska that, as determined by 
the Secretary--
            (1) is currently under the jurisdiction of the Department 
        of the Army;
            (2) before December 2, 1980, was under the jurisdiction of 
        the Department of the Army for use of the Alaska National 
        Guard;
            (3) is located in a unit of the National Wildlife Refuge 
        System designated in the Alaska National Interest Lands 
        Conservation Act (94 Stat. 2371; 16 U.S.C. 1301 note);
            (4) is excess to the needs of the Alaska National Guard and 
        the Department of Defense; and
            (5) is in such condition that--
                    (A) the anticipated cost to the United States of 
                retaining such property exceeds the value of such 
                property; or
                    (B) such property is unsuitable for retention by 
                the United States.
    (c) Consideration.--(1) The conveyance of real property under this 
section shall, at the election of the Secretary, be for no 
consideration or for consideration in an amount determined by the 
Secretary to be appropriate under the circumstances.
    (2) If consideration is received under paragraph (1) for property 
conveyed under subsection (a), the Secretary may use the amounts 
received, to the extent provided in appropriations Acts, to pay for--
            (A) the cost of a survey described in subsection (d) with 
        respect to such property;
            (B) the cost of carrying out any environmental assessment, 
        study, or analysis, and any remediation, that may be required 
        under Federal law, or is considered appropriate by the 
        Secretary, in connection with such property or the conveyance 
        of such property; and
            (C) any other costs incurred by the Secretary in conveying 
        such property.
    (d) Description of Property.--The exact acreage and legal 
description of any real property to be conveyed under subsection (a) 
shall be determined by a survey satisfactory to the Secretary.
    (e) Additional Terms and Conditions.--The Secretary may require 
such additional terms and conditions in connection with a conveyance of 
real property under this section as the Secretary considers appropriate 
to protect the interests of the United States.
    (f) Definitions.--In this section:
            (1) The term ``Indian tribe'' has the meaning given such 
        term in section 102 of the Federally Recognized Indian Tribe 
        List Act of 1994 (Public Law 103-454; 108 Stat. 4791; 25 U.S.C. 
        479a).
            (2) The term ``Native Corporation'' has the meaning given 
        such term in section 3 of the Alaska Native Claims Settlement 
        Act (43 U.S.C. 1602).

SEC. 2822. LAND CONVEYANCE, FORT CAMPBELL, KENTUCKY.

    (a) Conveyance Authorized.--The Secretary of the Army may convey, 
without consideration, to the City of Hopkinsville, Kentucky (in this 
section referred to as the ``City''), all right, title, and interest of 
the United States in and to a parcel of real property at Fort Campbell, 
Kentucky, consisting of approximately 50 acres and containing an 
abandoned railroad spur for the purpose of permitting the City to use 
the property for storm water management, recreation, transportation, 
and other public purposes.
    (b) Reimbursement of Transaction Costs.--(1) The City shall 
reimburse the Secretary for any costs incurred by the Secretary in 
carrying out the conveyance authorized by subsection (a).
    (2) Any reimbursement for costs that is received under paragraph 
(1) shall be credited to the fund or account providing funds for such 
costs. Amounts so credited shall be merged with amounts in such fund or 
account, and shall be available for the same purposes, and subject to 
the same conditions and limitations, as amounts in such fund or 
account.
    (c) Description of Property.--The acreage of the real property to 
be conveyed under subsection (a) has been determined by the Secretary 
through a legal description outlining such acreage. No further survey 
of the property is required before conveyance under that subsection.
    (d) Additional Terms and Conditions.--The Secretary may require 
such additional terms and conditions in connection with the conveyance 
under subsection (a) as the Secretary considers appropriate to protect 
the interests of the United States.

SEC. 2823. MODIFICATION OF AUTHORITY FOR LAND TRANSFER AND CONVEYANCE, 
              NAVAL SECURITY GROUP ACTIVITY, WINTER HARBOR, MAINE.

    (a) Modification of Conveyance Authority for Corea and Winter 
Harbor Properties.--Section 2845 of the Military Construction 
Authorization Act for Fiscal Year 2002 (division B of Public Law 107-
107; 115 Stat. 1319) is amended--
            (1) by striking subsection (b) and inserting the following 
        new subsection (b):
    ``(b) Conveyance and Transfer of Corea and Winter Harbor Properties 
Authorized.--(1) The Secretary of the Navy may convey, without 
consideration, to the State of Maine, any political subdivision of the 
State of Maine, or any tax-supported agency in the State of Maine, all 
right, title, and interest of the United States in and to parcels of 
real property, including any improvements thereon and appurtenances 
thereto, comprising the former facilities of the Naval Security Group 
Activity, Winter Harbor, Maine, as follows:
            ``(A) The parcel consisting of approximately 50 acres known 
        as the Corea Operations Site.
            ``(B) Three parcels consisting of approximately 23 acres 
        and comprising family housing facilities.
    ``(2) The Secretary of the Navy may transfer to the administrative 
jurisdiction of the Secretary of the Interior a parcel of real property 
consisting of approximately 404 acres at the former Naval Security 
Group Activity, which is the balance of the real property comprising 
the Corea Operations Site.
    ``(3) The Secretary of the Interior shall administer the property 
transferred under paragraph (2) as part of the National Wildlife Refuge 
System.''; and
            (2) in subsections (c), (d), (e), (f), (g), and (h), by 
        striking ``subsection (b)'' each place it appears and inserting 
        ``subsection (b)(1)''.
    (b) Exemption of Modified Conveyances from Federal Screening 
Requirement.--That section is further amended--
            (1) by redesignating subsections (g) and (h) as subsections 
        (h) and (i), respectively; and
            (2) by inserting after subsection (f) the following new 
        subsection (g):
    ``(g) Exemption of Certain Conveyances From Federal Screening.--Any 
conveyance authorized by subsection (b)(1) of this section, as amended 
by section 2823 of the National Defense Authorization Act for Fiscal 
Year 2003, is exempt from the requirement to screen the property 
concerned for further Federal use pursuant to section 2696 of title 10, 
United States Code.''.

SEC. 2824. LAND CONVEYANCE, WESTOVER AIR RESERVE BASE, MASSACHUSETTS.

    (a) Conveyance Authorized.--The Secretary of the Navy may convey, 
without consideration, to the City of Chicopee, Massachusetts (in this 
section referred to as the ``City''), all right, title, and interest of 
the United States in and to a parcel of real property, including 133 
housing units and other improvements thereon, consisting of 
approximately 30.38 acres located at Westover Air Reserve Base in 
Chicopee, Massachusetts, for the purpose of permitting the City to use 
the property for economic development and other public purposes.
    (b) Administrative Expenses.--(1) The Secretary may require the 
City to reimburse the Secretary for the costs incurred by the Secretary 
to carry out the conveyance under subsection (a), including survey 
costs, costs related to environmental documentation (other than the 
environmental baseline survey), and other administrative costs related 
to the conveyance.
    (2) Section 2695(c) of title 10, United States Code, shall apply to 
any amount received under this subsection.
    (c) Description of Property.--The exact acreage and legal 
description of the real property to be conveyed under subsection (a) 
shall be determined by a survey satisfactory to the Secretary.
    (d) Additional Terms and Conditions.--The Secretary may require 
such additional terms and conditions in connection with the conveyance 
under subsection (a) as the Secretary considers appropriate to protect 
the interests of the United States.

SEC. 2825. LAND CONVEYANCE, NAVAL STATION NEWPORT, RHODE ISLAND.

    (a) Conveyance Authorized.--The Secretary of the Navy may convey to 
the State of Rhode Island, or any political subdivision thereof, any or 
all right, title, and interest of the United States in and to a parcel 
of real property, together with improvements thereon, consisting of 
approximately 34 acres located in Melville, Rhode Island, and known as 
the Melville Marina site.
    (b) Consideration.--(1) As consideration for the conveyance of real 
property under subsection (a), the conveyee shall pay the United States 
an amount equal to the fair market value of the real property, as 
determined by the Secretary based on an appraisal of the real property 
acceptable to the Secretary.
    (2) Any consideration received under paragraph (1) shall be 
deposited in the account established under section 204(h) of the 
Federal Property and Administrative Services Act of 1949 (40 U.S.C. 
485(h)), and shall be available as provided for in that section.
    (c) Reimbursement of Transaction Costs.--(1) The Secretary may 
require the conveyee of the real property under subsection (a) to 
reimburse the Secretary for any costs incurred by the Secretary in 
carrying out the conveyance.
    (2) Any reimbursement for costs that is received under paragraph 
(1) shall be credited to the fund or account providing funds for such 
costs. Amounts so credited shall be merged with amounts in such fund or 
account, and shall be available for the same purposes, and subject to 
the same conditions and limitations, as amounts in such fund or 
account.
    (d) Description of Property.--The exact acreage and legal 
description of the real property to be conveyed under subsection (a) 
shall be determined by a survey satisfactory to the Secretary.
    (e) Additional Terms and Conditions.--The Secretary may require 
such additional terms and conditions in connection with the conveyance 
under subsection (a) as the Secretary considers appropriate to protect 
the interests of the United States.

SEC. 2826. LAND EXCHANGE, BUCKLEY AIR FORCE BASE, COLORADO.

    (a) Exchange Authorized.--Subject to subsection (b), the Secretary 
of the Air Force may convey to the State of Colorado (in this section 
referred to as the ``State'') all right, title, and interest of the 
United States in and to a parcel of real property, including 
improvements thereon, consisting of all or part of the Watkins 
Communications Site in Arapahoe County, Colorado.
    (b) Limitation.--The Secretary of the Air Force may carry out the 
conveyance authorized by subsection (a) only with the concurrence of 
the Secretary of Defense.
    (c) Consideration.--(1) As consideration for the conveyance 
authorized by subsection (a) the State shall convey to the United 
States of all right, title, and interest of the State in and to a 
parcel of real property, including improvements thereon, consisting of 
approximately 41 acres that is owned by the State and is contiguous to 
Buckley Air Force Base, Colorado.
    (2) The Secretary shall have jurisdiction over the real property 
conveyed under paragraph (1).
    (3) Upon conveyance to the United States under paragraph (1), the 
real property conveyed under that paragraph is withdrawn from all forms 
of appropriation under the general land laws, including the mining laws 
and mineral and geothermal leasing laws.
    (d) Description of Property.--The exact acreage and legal 
description of the parcels of real property to be conveyed under this 
section shall be determined by surveys satisfactory to the Secretary.
    (e) Additional Terms and Conditions.--The Secretary may require 
such additional terms and conditions in connection with the conveyances 
under authorized by this section as the Secretary considers appropriate 
to protect the interests of the United States.

SEC. 2827. LAND ACQUISITION, BOUNDARY CHANNEL DRIVE SITE, ARLINGTON, 
              VIRGINIA.

    (a) Acquisition Authorized.--The Secretary of Defense may, using 
amounts authorized to be appropriated to be appropriated by section 
2401, acquire all right, title, and interest in and to a parcel of real 
property, including any improvements thereon, in Arlington County, 
Virginia, consisting of approximately 7.2 acres and known as the 
Boundary Channel Drive Site. The parcel is located southeast of 
Interstate Route 395 at the end of Boundary Channel Drive and was most 
recently occupied by the Twin Bridges Marriott.
    (b) Inclusion in Pentagon Reservation.--Upon its acquisition under 
subsection (a), the parcel acquired under that subsection shall be 
included in the Pentagon Reservation, as that term is defined in 
section 2674(f)(1) of title 10, United States Code.
    (c) Description of Property.--The exact acreage and legal 
description of the real property to be acquired under subsection (a) 
shall be determined by a survey satisfactory to the Secretary.
    (d) Terms and Conditions.--The Secretary may require such terms and 
conditions in connection with the acquisition under this section as the 
Secretary considers appropriate to protect the interests of the United 
States.

SEC. 2828. LAND CONVEYANCES, WENDOVER AIR FORCE BASE AUXILIARY FIELD, 
              NEVADA.

    (a) Conveyances Authorized to West Wendover, Nevada.--(1) The 
Secretary of the Interior may convey, without consideration, to the 
City of West Wendover, Nevada, all right, title, and interest of the 
United States in and to the following:
            (A) The lands at Wendover Air Force Base Auxiliary Field, 
        Nevada, identified in Easement No. AFMC-HL-2-00-334 that are 
        determined by the Secretary of the Air Force to be no longer 
        required.
            (B) The lands at Wendover Air Force Base Auxiliary Field 
        identified for disposition on the map entitled ``West Wendover, 
        Nevada-Excess'', dated January 5, 2001, that are determined by 
        the Secretary of the Air Force to be no longer required.
    (2) The purposes of the conveyances under this subsection are--
            (A) to permit the establishment and maintenance of runway 
        protection zones; and
            (B) to provide for the development of an industrial park 
        and related infrastructure.
    (3) The map referred to in paragraph (1)(B) shall be on file and 
available for public inspection in the offices of the Director of the 
Bureau of Land Management and the Elko District Office of the Bureau of 
Land Management.
    (b) Conveyance Authorized to Tooele County, Utah.--(1) The 
Secretary of the Interior may convey, without consideration, to Tooele 
County, Utah, all right, title, and interest of the United States in 
and to the lands at Wendover Air Force Base Auxiliary Field identified 
in Easement No. AFMC-HL-2-00-318 that are determined by the Secretary 
of the Air Force to be no longer required.
    (2) The purpose of the conveyance under this subsection is to 
permit the establishment and maintenance of runway protection zones and 
an aircraft accident potential protection zone as necessitated by 
continued military aircraft operations at the Utah Test and Training 
Range.
    (c) Management of Conveyed Lands.--The lands conveyed under 
subsections (a) and (b) shall be managed by the City of West Wendover, 
Nevada, City of Wendover, Utah, Tooele County, Utah, and Elko County, 
Nevada--
            (1) in accordance with the provisions of an Interlocal 
        Memorandum of Agreement entered into between the Cities of West 
        Wendover, Nevada, and Wendover, Utah, Tooele County, Utah, and 
        Elko County, Nevada, providing for the coordinated management 
        and development of the lands for the economic benefit of both 
        communities; and
            (2) in a manner that is consistent with such provisions of 
        the easements referred to subsections (a) and (b) that, as 
        jointly determined by the Secretary of the Air Force and 
        Secretary of the Interior, remain applicable and relevant to 
        the operation and management of the lands following conveyance 
        and are consistent with the provisions of this section.
    (d) Additional Terms and Conditions.--The Secretary of the Air 
Force and the Secretary of the Interior may jointly require such 
additional terms and conditions in connection with the conveyances 
required by subsections (a) and (b) as the Secretaries consider 
appropriate to protect the interests of the United States.

SEC. 2829. LAND CONVEYANCE, FORT HOOD, TEXAS.

    (a) Conveyance Authorized.--The Secretary of the Army may convey, 
without consideration, to the Veterans Land Board of the State of Texas 
(in this section referred to as the ``Board''), all right, title, and 
interest of the United States in and to a parcel of real property, 
including any improvements thereon, consisting of approximately 174 
acres at Fort Hood, Texas, for the purpose of permitting the Board to 
establish a State-run cemetery for veterans.
    (b) Reversionary Interest.--(1) If at the end of the five-year 
period beginning on the date of the conveyance authorized by subsection 
(a), the Secretary determines that the property conveyed under that 
subsection is not being used for the purpose specified in that 
subsection, all right, title, and interest in and to the property, 
including any improvements thereon, shall revert to the United States, 
and the United States shall have the right of immediate entry thereon.
    (2) Any determination of the Secretary under this subsection shall 
be made on the record after an opportunity for a hearing.
    (c) Description of Property.--The exact acreage and legal 
description of the real property to be conveyed under subsection (a) 
shall be determined by a survey satisfactory to the Secretary. The cost 
of the survey shall be borne by the Board.
    (d) Additional Terms and Conditions.--The Secretary may require 
such additional terms and conditions in connection with the conveyance 
under subsection (a) as the Secretary considers appropriate to protect 
the interests of the United States.

SEC. 2830. LAND CONVEYANCES, ENGINEER PROVING GROUND, FORT BELVOIR, 
              VIRGINIA.

    (a) Conveyance to Fairfax County, Virginia, Authorized.--(1) The 
Secretary of the Army may convey, without consideration, to Fairfax 
County, Virginia, all right, title, and interest of the United States 
in and to a parcel of real property, including any improvements 
thereon, consisting of approximately 135 acres, located in the 
northwest portion of the Engineer Proving Ground (EPG) at Fort Belvoir, 
Virginia, in order to permit the County to use such property for park 
and recreational purposes.
    (2) The parcel of real property authorized to be conveyed by 
paragraph (1) is generally described as that portion of the Engineer 
Proving Ground located west of Accotink Creek, east of the Fairfax 
County Parkway, and north of Cissna Road to the northern boundary, but 
excludes a parcel of land consisting of approximately 15 acres located 
in the southeast corner of such portion of the Engineer Proving Ground.
    (3) The land excluded under paragraph (2) from the parcel of real 
property authorized to be conveyed by paragraph (1) shall be reserved 
for an access road to be constructed in the future.
    (b) Conveyance of Balance of Property Authorized.--The Secretary 
may convey to any competitively selected grantee all right, title, and 
interest of the United States in and to the real property, including 
any improvements thereon, at the Engineering Proving Ground, not 
conveyed under the authority in subsection (a).
    (c) Consideration.--(1) As consideration for the conveyance 
authorized by subsection (b), the grantee shall provide the United 
States, whether by cash payment, in-kind contribution, or a combination 
thereof, an amount that is not less than the fair market value, as 
determined by the Secretary, of the property conveyed under that 
subsection.
    (2) In-kind consideration under paragraph (1) may include the 
maintenance, improvement, alteration, repair, remodeling, restoration 
(including environmental restoration), or construction of facilities 
for the Department of the Army at Fort Belvoir or at any other site or 
sites designated by the Secretary.
    (3) If in-kind consideration under paragraph (1) includes the 
construction of facilities, the grantee shall also convey to the United 
States--
            (A) title to such facilities, free of all liens and other 
        encumbrances; and
            (B) if the United States does not have fee simple title to 
        the land underlying such facilities, convey to the United 
        States all right, title, and interest in and to such lands not 
        held by the United States.
    (4) The Secretary shall deposit any cash received as consideration 
under this subsection in the special account established pursuant to 
section 204(h) of the Federal Property and Administrative Services Act 
of 1949 (40 U.S.C. 485(h)).
    (d) Repeal of Superseded Authority.--Section 2821 of the Military 
Construction Authorization Act for Fiscal Years 1990 and 1991 (division 
B of Public Law 101-189; 103 Stat. 1658), as amended by section 2854 of 
the Military Construction Authorization Act for Fiscal Year 1996 
(division B of Public Law 104-106; 110 Stat. 568), is repealed.
    (e) Description of Property.--The exact acreage and legal 
description of the real property to be conveyed under subsections (a) 
and (b) shall be determined by surveys satisfactory to the Secretary. 
The cost of each such survey shall be borne by the grantee.
    (f) Additional Terms and Conditions.--The Secretary may require 
such additional terms and conditions in connection with the conveyances 
under subsections (a) and (b) as the Secretary considers appropriate to 
protect the interests of the United States.

SEC. 2831. MASTER PLAN FOR USE OF NAVY ANNEX, ARLINGTON, VIRGINIA.

    (a) Repeal of Commission on National Military Museum.--Title XXIX 
of the Military Construction Authorization Act for Fiscal Year 2000 
(division B of Public Law 106-65; 113 Stat. 880; 10 U.S.C. 111 note) is 
repealed.
    (b) Modification of Authority for Transfer from Navy Annex.--
Section 2881 of the Military Construction Authorization Act for Fiscal 
Year 2000 (113 Stat. 879) is amended--
            (1) in subsection (b)(2), as amended by section 2863(f) of 
        the Military Construction Authorization Act for Fiscal Year 
        2002 (division B of Public Law 107-107; 115 Stat. 1332), by 
        striking ``as a 
        site--'' and all that follows and inserting ``as a site for 
        such other memorials or museums that the Secretary considers 
        compatible with Arlington National Cemetery and the Air Force 
        Memorial.''; and
            (2) in subsection (d)--
                    (A) in paragraph (2), by striking ``the 
                recommendation (if any) of the Commission on the 
                National Military Museum to use a portion of the Navy 
                Annex property as the site for the National Military 
                Museum'', and inserting ``the use of the acres reserved 
                under (b)(2) as a memorial or museum''; and
                    (B) in paragraph (4), by striking ``the date on 
                which the Commission on the National Military Museum 
                submits to Congress its report under section 2903'' and 
                inserting ``the date of the enactment of the National 
                Defense Authorization Act for Fiscal Year 2003''.
    (c) Construction of Amendments.--The amendments made by subsections 
(a) and (b) may not be construed to delay the establishment of the 
United States Air Force Memorial authorized by section 2863 of the 
Military Construction Authorization Act for Fiscal Year 2002 (115 Stat. 
1330).

SEC. 2832. LAND CONVEYANCE, SUNFLOWER ARMY AMMUNITION PLANT, KANSAS.

    (a) Conveyance Authorized.--The Secretary of the Army or the 
Administrator of General Services may convey, without consideration, to 
the Johnson County Park and Recreation District, Kansas (in this 
section referred to as the ``District''), all right, title, and 
interest of the United States in and to a parcel of real property, 
including any improvements thereon, in the State of Kansas consisting 
of approximately 2,000 acres, a portion of the Sunflower Army 
Ammunition Plant. The purpose of the conveyance is to permit the 
District to use the parcel for public recreational purposes.
    (b) Description of Property.--The exact acreage, location, and 
legal description of the real property to be conveyed under subsection 
(a) shall be determined by a survey satisfactory to the official making 
the conveyance. The cost of such legal description, survey, or both 
shall be borne by the District.
    (c) Additional Terms and Conditions.--The official making the 
conveyance of real property under subsection (a) may require such 
additional terms and conditions in connection with the conveyance as 
that official considers appropriate to protect the interests of the 
United States.
    (d) Effective Date.--This section shall take effect on January 31, 
2003.

SEC. 2833. LAND CONVEYANCE, BLUEGRASS ARMY DEPOT, RICHMOND, KENTUCKY.

    (a) Conveyance Authorized.--(1) The Secretary of the Army may 
convey, without consideration, to Madison County, Kentucky (in this 
section referred to as the ``County''), all right, title, and interest 
of the United States in and to a parcel of real property, including any 
improvements thereon, consisting of approximately 10 acres at the 
Bluegrass Army Depot, Richmond, Kentucky, for the purpose of 
facilitating the construction of a veterans' center on the parcel by 
the State of Kentucky.
    (2) The Secretary may not make the conveyance authorized by this 
subsection unless the Secretary determines that the State of Kentucky 
has appropriated adequate funds for the construction of the veterans' 
center.
    (b) Reversionary Interest.--If the Secretary determines that the 
real property conveyed under subsection (a) ceases to be utilized for 
the sole purpose of a veterans' center or that reasonable progress is 
not demonstrated in constructing the center and initiating services to 
veterans, all right, title, and interest in and to the property shall 
revert to the United States, and the United States shall have the right 
of immediate entry onto the property. Any determination under this 
subsection shall be made on the record after an opportunity for a 
hearing.
    (c) Administrative Expenses.--The Secretary shall apply section 
2695 of title 10, United States Code, to the conveyance authorized by 
subsection (a).
    (d) Description of Property.--The exact acreage and legal 
description of the real property to be conveyed under subsection (a) 
shall be determined by a survey satisfactory to the Secretary. The cost 
of the survey shall be borne by the County.
    (e) Additional Terms and Conditions.--The Secretary may require 
such additional terms and conditions in connection with the conveyance 
under subsection (a) as the Secretary considers appropriate to protect 
the interests of the United States.

                       Subtitle D--Other Matters

SEC. 2841. TRANSFER OF FUNDS FOR ACQUISITION OF REPLACEMENT PROPERTY 
              FOR NATIONAL WILDLIFE REFUGE SYSTEM LANDS IN NEVADA.

    (a) Transfer of Funds Authorized.--(1) The Secretary of the Air 
Force may, using amounts authorized to be appropriated by section 
2304(a), transfer to the United States Fish and Wildlife Service 
$15,000,000 to fulfill the obligations of the Air Force under section 
3011(b)(5)(F) of the Military Lands Withdrawal Act of 1999 (title XXX 
of Public Law 106-65; 113 Stat. 889).
    (2) Upon receipt by the Service of the funds transferred under 
paragraph (1), the obligations of the Air Force referred to in that 
paragraph shall be considered fulfilled.
    (b) Contribution to Foundation.--(1) The United States Fish and 
Wildlife Service may grant funds received by the Service under 
subsection (a) in a lump sum to the National Fish and Wildlife 
Foundation for use in accomplishing the purposes of section 
3011(b)(5)(F) of the Military Lands Withdrawal Act of 1999.
    (2) Funds received by the Foundation under paragraph (1) shall be 
subject to the provisions of the National Fish and Wildlife Foundation 
Establishment Act (16 U.S.C. 3701 et seq.), other than section 10(a) of 
that Act (16 U.S.C. 3709(a)).

 DIVISION C--DEPARTMENT OF ENERGY NATIONAL SECURITY AUTHORIZATIONS AND 
                          OTHER AUTHORIZATIONS

      TITLE XXXI--DEPARTMENT OF ENERGY NATIONAL SECURITY PROGRAMS

         Subtitle A--National Security Programs Authorizations

SEC. 3101. NATIONAL NUCLEAR SECURITY ADMINISTRATION.

    Funds are hereby authorized to be appropriated to the Department of 
Energy for fiscal year 2003 for the activities of the National Nuclear 
Security Administration in carrying out programs necessary for national 
security in the amount of $8,160,043,000, to be allocated as follows:
            (1) Weapons activities.--For weapons activities, 
        $5,988,188,000, to be allocated as follows:
                    (A) For directed stockpile work, $1,218,967,000.
                    (B) For campaigns, $2,090,528,000, to be allocated 
                as follows:
                            (i) For operation and maintenance, 
                        $1,740,983,000.
                            (ii) For construction, $349,545,000, to be 
                        allocated as follows:
                                    Project 01-D-101, distributed 
                                information systems laboratory, Sandia 
                                National Laboratories, Livermore, 
                                California, $13,305,000.
                                    Project 00-D-103, terascale 
                                simulation facility, Lawrence Livermore 
                                National Laboratory, Livermore, 
                                California, $35,030,000.
                                    Project 00-D-107, joint 
                                computational engineering laboratory, 
                                Sandia National Laboratories, 
                                Albuquerque, New Mexico, $7,000,000.
                                    Project 98-D-125, tritium 
                                extraction facility, Savannah River 
                                Plant, Aiken, South Carolina, 
                                $70,165,000.
                                    Project 96-D-111, national ignition 
                                facility (NIF), Lawrence Livermore 
                                National Laboratory, Livermore, 
                                California, $224,045,000.
                    (C) For readiness in technical base and facilities, 
                $1,735,129,000, to be allocated as follows:
                            (i) For operation and maintenance, 
                        $1,464,783,000.
                            (ii) For plant projects (including 
                        maintenance, restoration, planning, 
                        construction, acquisition, modification of 
                        facilities, and the continuation of projects 
                        authorized in prior years, and land acquisition 
                        related thereto), $270,346,000, to be allocated 
                        as follows:
                                    Project 03-D-101, Sandia 
                                underground reactor facility (SURF), 
                                Sandia National Laboratory, Livermore, 
                                California, $2,000,000.
                                    Project 03-D-103, project 
                                engineering and design (PED), various 
                                locations, $17,839,000.
                                    Project 03-D-121, gas transfer 
                                capacity expansion, Kansas City Plant, 
                                Kansas City, Missouri, $4,000,000.
                                    Project 03-D-122, purification 
                                prototype facility, Y-12 Plant, Oak 
                                Ridge, Tennessee, $20,800,000.
                                    Project 03-D-123, special nuclear 
                                material component requalification 
                                facility, Pantex Plant, Amarillo, 
                                Texas, $3,000,000
                                    Project 02-D-103, project 
                                engineering and design (PED), various 
                                locations, $24,945,000.
                                    Project 02-D-105, engineering 
                                technology complex upgrade, Lawrence 
                                Livermore National Laboratory, 
                                Livermore, California, $10,000,000.
                                    Project 02-D-107, electrical power 
                                systems safety communications and bus 
                                upgrades, Nevada Test Site, Nevada, 
                                $7,500,000.
                                    Project 01-D-103, project 
                                engineering and design (PED), various 
                                locations, $6,164,000.
                                    Project 01-D-107, Atlas relocation, 
                                Nevada Test Site, Nevada, $4,123,000.
                                    Project 01-D-108, microsystems and 
                                engineering sciences applications 
                                (MESA), Sandia National Laboratories, 
                                Albuquerque, New Mexico, $75,000,000.
                                    Project 01-D-124, HEU storage 
                                facility, Y-12 Plant, Oak Ridge, 
                                Tennessee, $25,000,000.
                                    Project 01-D-126, weapons 
                                evaluation test laboratory, Pantex 
                                Plant, Amarillo, Texas, $8,650,000.
                                    Project 01-D-800, sensitive 
                                compartmented information facility, 
                                Lawrence Livermore National Laboratory, 
                                Livermore, California, $9,611,000.
                                    Project 99-D-103, isotope sciences 
                                facilities, Lawrence Livermore National 
                                Laboratory, Livermore, California, 
                                $4,011,000.
                                    Project 99-D-104, protection of 
                                real property (roof reconstruction, 
                                phase II), Lawrence Livermore National 
                                Laboratory, Livermore, California, 
                                $5,915,000.
                                    Project 99-D-127, stockpile 
                                management restructuring initiative, 
                                Kansas City Plant, Kansas City, 
                                Missouri, $29,900,000.
                                    Project 99-D-128, stockpile 
                                management restructuring initiative, 
                                Pantex Plant, Amarillo, Texas, 
                                $407,000.
                                    Project 98-D-123, stockpile 
                                management restructuring initiative, 
                                tritium facility modernization and 
                                consolidation, Savannah River Plant, 
                                Aiken, South Carolina, $10,481,000.
                                    Project 96-D-102, stockpile 
                                stewardship facilities revitalization, 
                                Phase VI, various locations, 
                                $1,000,000.
                    (C) For secure transportation asset, $157,083,000, 
                to be allocated as follows:
                            (i) For operation and maintenance, 
                        $102,578,000.
                            (ii) For program direction, $54,505,000.
                    (D) For safeguards and security, $574,954,000, to 
                be allocated as follows:
                            (i) For operation and maintenance, 
                        $566,054,000.
                            (ii) For plant projects (including 
                        maintenance, restoration, planning, 
                        construction, acquisition, modification of 
                        facilities, and the continuation of projects 
                        authorized in prior years, and land acquisition 
                        related thereto), $8,900,000, to be allocated 
                        as follows:
                                    Project 99-D-132, stockpile 
                                management restructuring initiative, 
                                nuclear material safeguards and 
                                security upgrades project, Los Alamos 
                                National Laboratory, Los Alamos, New 
                                Mexico, $8,900,000.
                    (E) For facilities and infrastructure, 
                $242,512,000.
            (2) Defense nuclear nonproliferation.--For defense nuclear 
        nonproliferation activities, $1,129,130,000, to be allocated as 
        follows:
                    (A) For operation and maintenance, $1,037,130,000, 
                to be allocated as follows:
                            (i) For nonproliferation and verification 
                        research and development, $298,907,000.
                            (ii) For nonproliferation programs, 
                        $446,223,000.
                            (iii) For fissile materials, $292,000,000.
                    (B) For plant projects (including maintenance, 
                restoration, planning, construction, acquisition, 
                modification of facilities, and the continuation of 
                projects authorized in prior years, and land 
                acquisition related thereto), $156,000,000, to be 
                allocated as follows:
                            Project 01-D-407, highly enriched uranium 
                        blend-down, Savannah River Site, Aiken, South 
                        Carolina, $30,000,000.
                            Project 99-D-141, pit disassembly and 
                        conversion facility, Savannah River Site, 
                        Aiken, South Carolina, $33,000,000.
                            Project 99-D-143, mixed oxide fuel 
                        fabrication facility, Savannah River Site, 
                        Aiken, South Carolina, $93,000,000.
            (3) Naval reactors.--For naval reactors, $707,020,000, to 
        be allocated as follows:
                    (A) For naval reactors development, $682,590,000, 
                to be allocated as follows:
                            (i) For operation and maintenance, 
                        $671,290,000.
                            (ii) For plant projects (including 
                        maintenance, restoration, planning, 
                        construction, acquisition, modification of 
                        facilities, and the continuation of projects 
                        authorized in prior years, and land acquisition 
                        related thereto), $11,300,000, to be allocated 
                        as follows:
                                    Project 03-D-201, cleanroom 
                                technology facility, Bettis Atomic 
                                Power Laboratory, West Mifflin, 
                                Pennsylvania, $7,200,000.
                                    Project 01-D-200, major office 
                                replacement building, Schenectady, New 
                                York, $2,100,000.
                                    Project 90-N-102, expended core 
                                facility dry cell project, Naval 
                                Reactors Facility, Idaho, $2,000,000.
                    (B) For program direction, $24,430,000.
            (4) Office of administrator for nuclear security.--For the 
        Office of the Administrator for Nuclear Security, and for 
        program direction for the National Nuclear Security 
        Administration (other than for naval reactors and secure 
        transportation asset), $335,705,000.

SEC. 3102. DEFENSE ENVIRONMENTAL MANAGEMENT.

    Funds are hereby authorized to be appropriated to the Department of 
Energy for fiscal year 2003 for environmental management activities in 
carrying out programs necessary for national security in the amount of 
$6,710,774,000, to be allocated as follows:
            (1) Closure projects.--For closure projects carried out in 
        accordance with section 3143 of the National Defense 
        Authorization Act for Fiscal Year 1997 (Public Law 104-201; 110 
        Stat. 2836; 42 U.S.C. 7277n), $1,109,314,000.
            (2) Site/project completion.--For site completion and 
        project completion in carrying out environmental management 
        activities necessary for national security programs, 
        $793,950,000, to be allocated as follows:
                    (A) For operation and maintenance, $779,706,000.
                    (B) For plant projects (including maintenance, 
                restoration, planning, construction, acquisition, 
                modification of facilities, and the continuation of 
                projects authorized in prior years, and land 
                acquisition related thereto), $14,244,000, to be 
                allocated as follows:
                            Project 02-D-402, Intec cathodic protection 
                        system expansion, Idaho National Engineering 
                        and Environmental Laboratory, Idaho Falls, 
                        Idaho, $1,119,000.
                            Project 02-D-420, plutonium stabilization 
                        and packaging, Savannah River Site, Aiken, 
                        South Carolina, $2,000,000.
                            Project 01-D-414, project engineering and 
                        design (PED), various locations, $5,125,000.
                            Project 86-D-103, decontamination and waste 
                        treatment facility, Lawrence Livermore National 
                        Laboratory, Livermore, California, $6,000,000.
            (3) Post-2006 completion.--For post-2006 completion in 
        carrying out environmental restoration and waste management 
        activities necessary for national security programs, 
        $2,617,199,000, to be allocated as follows:
                    (A) For operation and maintenance, $1,704,341,000.
                    (B) For plant projects (including maintenance, 
                restoration, planning, construction, acquisition, 
                modification of facilities, and the continuation of 
                projects authorized in prior years, and land 
                acquisition related thereto), $14,870,000, to be 
                allocated as follows:
                            Project 93-D-187, high-level waste removal 
                        from filled waste tanks, Savannah River Site, 
                        Aiken, South Carolina, $14,870,000.
                    (C) For the Office of River Protection in carrying 
                out environmental restoration and waste management 
                activities necessary for national security programs, 
                $897,988,000, to be allocated as follows:
                            (i) For operation and maintenance, 
                        $226,256,000.
                            (ii) For plant projects (including 
                        maintenance, restoration, planning, 
                        construction, acquisition, modification of 
                        facilities, and the continuation of projects 
                        authorized in prior years, and land acquisition 
                        related thereto), $671,732,000, to be allocated 
                        as follows:
                                    Project 03-D-403, immobilized high-
                                level waste interim storage facility, 
                                Richland, Washington, $6,363,000.
                                    Project 01-D-416, waste treatment 
                                and immobilization plant, Richland, 
                                Washington, $619,000,000.
                                    Project 97-D-402, tank farm 
                                restoration and safe operations, 
                                Richland, Washington, $25,424,000.
                                    Project 94-D-407, initial tank 
                                retrieval systems, Richland, 
                                Washington, $20,945,000.
            (4) Science and technology development.--For science and 
        technology development in carrying out environmental management 
        activities necessary for national security programs, 
        $92,000,000.
            (5) Excess facilities.--For excess facilities in carrying 
        out environmental management activities necessary for national 
        security programs, $1,300,000.
            (6) Safeguards and security.--For safeguards and security 
        in carrying out environmental management activities necessary 
        for national security programs, $278,260,000.
            (7) Uranium enrichment decontamination and decommissioning 
        fund.--For contribution to the Uranium Enrichment 
        Decontamination and Decommissioning Fund under chapter 28 of 
        the Atomic Energy Act of 1954 (42 U.S.C. 2297g et seq.), 
        $441,000,000.
            (8) Environmental management cleanup reform.--For 
        accelerated environmental restoration and waste management 
        activities, $1,000,000,000.
            (9) Program direction.--For program direction in carrying 
        out environmental restoration and waste management activities 
        necessary for national security programs, $396,098,000.

SEC. 3103. OTHER DEFENSE ACTIVITIES.

    Funds are hereby authorized to be appropriated to the Department of 
Energy for fiscal year 2003 for other defense activities in carrying 
out programs necessary for national security in the amount of 
$489,883,000, to be allocated as follows:
            (1) Intelligence.--For intelligence, $43,559,000.
            (2) Counterintelligence.--For counterintelligence, 
        $48,083,000.
            (3) Office of security.--For the Office of Security for 
        security, $252,218,000, to be allocated as follows:
                    (A) For nuclear safeguards and security, 
                $156,102,000.
                    (B) For security investigations, $45,870,000.
                    (C) For program direction, $50,246,000.
            (4) Independent oversight and performance assurance.--For 
        independent oversight and performance assurance, $22,615,000.
            (5) Office of environment, safety, and health.--For the 
        Office of Environment, Safety, and Health, $104,910,000, to be 
        allocated as follows:
                    (A) For environment, safety, and health (defense), 
                $86,892,000.
                    (B) For program direction, $18,018,000.
            (6) Worker and community transition assistance.--For worker 
        and community transition assistance, $25,774,000, to be 
        allocated as follows:
                    (A) For worker and community transition, 
                $22,965,000.
                    (B) For program direction, $2,809,000.
            (7) Office of hearings and appeals.--For the Office of 
        Hearings and Appeals, $3,136,000.

SEC. 3104. DEFENSE ENVIRONMENTAL MANAGEMENT PRIVATIZATION.

    Funds are hereby authorized to be appropriated to the Department of 
Energy for fiscal year 2003 for privatization initiatives in carrying 
out environmental restoration and waste management activities necessary 
for national security programs in the amount of $158,399,000, to be 
allocated as follows:
            Project 98-PVT-2, spent nuclear fuel dry storage, Idaho 
        Falls, Idaho, $53,399,000.
            Project 97-PVT-2, advanced mixed waste treatment project, 
        Idaho Falls, Idaho, $105,000,000.

SEC. 3105. DEFENSE NUCLEAR WASTE DISPOSAL.

    Funds are hereby authorized to be appropriated to the Department of 
Energy for fiscal year 2003 for payment to the Nuclear Waste Fund 
established in section 302(c) of the Nuclear Waste Policy Act of 1982 
(42 U.S.C. 10222(c)) in the amount of $215,000,000.

                Subtitle B--Recurring General Provisions

SEC. 3121. REPROGRAMMING.

    (a) In General.--Until the Secretary of Energy submits to the 
congressional defense committees the report referred to in subsection 
(b) and a period of 30 days has elapsed after the date on which such 
committees receive the report, the Secretary may not use amounts 
appropriated pursuant to this title for any program--
            (1) in amounts that exceed, in a fiscal year--
                    (A) 115 percent of the amount authorized for that 
                program by this title; or
                    (B) $5,000,000 more than the amount authorized for 
                that program by this title; or
            (2) which has not been presented to, or requested of, 
        Congress.
    (b) Report.--(1) The report referred to in subsection (a) is a 
report containing a full and complete statement of the action proposed 
to be taken and the facts and circumstances relied upon in support of 
the proposed action.
    (2) In the computation of the 30-day period under subsection (a), 
there shall be excluded any day on which either House of Congress is 
not in session because of an adjournment of more than 3 days to a day 
certain.
    (c) Limitations.--(1) In no event may the total amount of funds 
obligated pursuant to this title exceed the total amount authorized to 
be appropriated by this title.
    (2) Funds appropriated pursuant to this title may not be used for 
an item for which Congress has specifically denied funds.

SEC. 3122. LIMITS ON MINOR CONSTRUCTION PROJECTS.

    (a) Authority.--The Secretary of Energy may carry out any minor 
construction project using operation and maintenance funds, or 
facilities and infrastructure funds, authorized by this title.
    (b) Annual Report.--The Secretary shall submit to the congressional 
defense committees on an annual basis a report on each exercise of the 
authority in subsection (a) during the preceding year. Each report 
shall provide a brief description of each minor construction project 
covered by the report.
    (c) Cost Variation Reports to Congressional Committees.--If, at any 
time during the construction of any minor construction project 
authorized by this title, the estimated cost of the project is revised 
and the revised cost of the project exceeds $5,000,000, the Secretary 
shall immediately submit to the congressional defense committees a 
report explaining the reasons for the cost variation.
    (d) Minor Construction Project Defined.--In this section, the term 
``minor construction project'' means any plant project not specifically 
authorized by law if the approved total estimated cost of the plant 
project does not exceed $5,000,000.

SEC. 3123. LIMITS ON CONSTRUCTION PROJECTS.

    (a) In General.--(1) Except as provided in paragraph (2), 
construction on a construction project may not be started or additional 
obligations incurred in connection with the project above the total 
estimated cost, whenever the current estimated cost of the construction 
project, authorized by section 3101, 3102, or 3103, or which is in 
support of national security programs of the Department of Energy and 
was authorized by any previous Act, exceeds by more than 25 percent the 
higher of--
            (A) the amount authorized for the project; or
            (B) the amount of the total estimated cost for the project 
        as shown in the most recent budget justification data submitted 
        to Congress.
    (2) An action described in paragraph (1) may be taken if--
            (A) the Secretary of Energy has submitted to the 
        congressional defense committees a report on the actions and 
        the circumstances making such action necessary; and
            (B) a period of 30 days has elapsed after the date on which 
        the report is received by the committees.
    (b) Exception.--Subsection (a) does not apply to a construction 
project with a current estimated cost of less than $5,000,000.

SEC. 3124. FUND TRANSFER AUTHORITY.

    (a) Transfer to Other Federal Agencies.--The Secretary of Energy 
may transfer funds authorized to be appropriated to the Department of 
Energy pursuant to this title to other Federal agencies for the 
performance of work for which the funds were authorized. Funds so 
transferred may be merged with and be available for the same purposes 
and for the same time period as the authorizations of the Federal 
agency to which the amounts are transferred.
    (b) Transfer Within Department of Energy.--(1) Subject to paragraph 
(2), the Secretary of Energy may transfer funds authorized to be 
appropriated to the Department of Energy pursuant to this title between 
any such authorizations. Amounts of authorizations so transferred may 
be merged with and be available for the same purposes and for the same 
period as the authorization to which the amounts are transferred.
    (2) Not more than 5 percent of any such authorization may be 
transferred between authorizations under paragraph (1). No such 
authorization may be increased or decreased by more than 5 percent by a 
transfer under such paragraph.
    (c) Limitations.--The authority provided by this subsection to 
transfer authorizations--
            (1) may be used only to provide funds for items relating to 
        activities necessary for national security programs that have a 
        higher priority than the items from which the funds are 
        transferred; and
            (2) may not be used to provide funds for an item for which 
        Congress has specifically denied funds.
    (d) Notice to Congress.--The Secretary of Energy shall promptly 
notify the Committees on Armed Services of the Senate and House of 
Representatives of any transfer of funds to or from authorizations 
under this title.

SEC. 3125. AUTHORITY FOR CONCEPTUAL AND CONSTRUCTION DESIGN.

    (a) Requirement of Conceptual Design.--(1) Subject to paragraph (2) 
and except as provided in paragraph (3), before submitting to Congress 
a request for funds for a construction project that is in support of a 
national security program of the Department of Energy, the Secretary of 
Energy shall complete a conceptual design for that project.
    (2) If the estimated cost of completing a conceptual design for a 
construction project exceeds $3,000,000, the Secretary shall submit to 
Congress a request for funds for the conceptual design before 
submitting a request for funds for the construction project.
    (3) The requirement in paragraph (1) does not apply to a request 
for funds--
            (A) for a minor construction project the total estimated 
        cost of which is less than $5,000,000; or
            (B) for emergency planning, design, and construction 
        activities under section 3126.
    (b) Authority for Construction Design.--(1) Within the amounts 
authorized by this title, the Secretary of Energy may carry out 
construction design (including architectural and engineering services) 
in connection with any proposed construction project if the total 
estimated cost for such design does not exceed $600,000.
    (2) If the total estimated cost for construction design in 
connection with any construction project exceeds $600,000, funds for 
that design must be specifically authorized by law.

SEC. 3126. AUTHORITY FOR EMERGENCY PLANNING, DESIGN, AND CONSTRUCTION 
              ACTIVITIES.

    (a) Authority.--The Secretary of Energy may use any funds available 
to the Department of Energy pursuant to an authorization in this title, 
including funds authorized to be appropriated for advance planning, 
engineering, and construction design, and for plant projects, under 
sections 3101, 3102, 3103, and 3104 to perform planning, design, and 
construction activities for any Department of Energy national security 
program construction project that, as determined by the Secretary, must 
proceed expeditiously in order to protect public health and safety, to 
meet the needs of national defense, or to protect property.
    (b) Limitation.--The Secretary may not exercise the authority under 
subsection (a) in the case of any construction project until the 
Secretary has submitted to the congressional defense committees a 
report on the activities that the Secretary intends to carry out under 
this section and the circumstances making those activities necessary.
    (c) Specific Authority.--The requirement of section 3125(b)(2) does 
not apply to emergency planning, design, and construction activities 
conducted under this section.

SEC. 3127. FUNDS AVAILABLE FOR ALL NATIONAL SECURITY PROGRAMS OF THE 
              DEPARTMENT OF ENERGY.

    Subject to the provisions of appropriation Acts and section 3121, 
amounts appropriated pursuant to this title for management and support 
activities and for general plant projects are available for use, when 
necessary, in connection with all national security programs of the 
Department of Energy.

SEC. 3128. AVAILABILITY OF FUNDS.

    (a) In General.--Except as provided in subsection (b), when so 
specified in an appropriations Act, amounts appropriated for operation 
and maintenance or for plant projects may remain available until 
expended.
    (b) Exception for Program Direction Funds.--Amounts appropriated 
for program direction pursuant to an authorization of appropriations in 
subtitle A shall remain available to be expended only until the end of 
fiscal year 2004.

SEC. 3129. TRANSFER OF DEFENSE ENVIRONMENTAL MANAGEMENT FUNDS.

    (a) Transfer Authority for Defense Environmental Management 
Funds.--The Secretary of Energy shall provide the manager of each field 
office of the Department of Energy with the authority to transfer 
defense environmental management funds from a program or project under 
the jurisdiction of that office to another such program or project.
    (b) Limitations.--(1) Not more than three transfers may be made to 
or from any program or project under subsection (a) in a fiscal year.
    (2) The amount transferred to or from a program or project in any 
one transfer under subsection (a) may not exceed $5,000,000.
    (3) A transfer may not be carried out by a manager of a field 
office under subsection (a) unless the manager determines that the 
transfer is necessary--
            (A) to address a risk to health, safety, or the 
        environment; or
            (B) to assure the most efficient use of defense 
        environmental management funds at the field office.
    (4) Funds transferred pursuant to subsection (a) may not be used 
for an item for which Congress has specifically denied funds or for a 
new program or project that has not been authorized by Congress.
    (c) Exemption From Reprogramming Requirements.--The requirements of 
section 3121 shall not apply to transfers of funds pursuant to 
subsection (a).
    (d) Notification.--The Secretary, acting through the Assistant 
Secretary of Energy for Environmental Management, shall notify Congress 
of any transfer of funds pursuant to subsection (a) not later than 30 
days after such transfer occurs.
    (e) Definitions.--In this section:
            (1) The term ``program or project'' means, with respect to 
        a field office of the Department of Energy, any of the 
        following:
                    (A) A program referred to or a project listed in 
                paragraph (2) or (3) of section 3102.
                    (B) A program or project not described in 
                subparagraph (A) that is for environmental restoration 
                or waste management activities necessary for national 
                security programs of the Department, that is being 
                carried out by that office, and for which defense 
                environmental management funds have been authorized and 
                appropriated before the date of the enactment of this 
                Act.
            (2) The term ``defense environmental management funds'' 
        means funds appropriated to the Department of Energy pursuant 
        to an authorization for carrying out environmental restoration 
        and waste management activities necessary for national security 
        programs.
    (f) Duration of Authority.--The managers of the field offices of 
the Department may exercise the authority provided under subsection (a) 
during the period beginning on October 1, 2002, and ending on September 
30, 2003.

SEC. 3130. TRANSFER OF WEAPONS ACTIVITIES FUNDS.

    (a) Transfer Authority for Weapons Activities Funds.--The Secretary 
of Energy shall provide the manager of each field office of the 
Department of Energy with the authority to transfer weapons activities 
funds from a program or project under the jurisdiction of that office 
to another such program or project.
    (b) Limitations.--(1) Not more than three transfers may be made to 
or from any program or project under subsection (a) in a fiscal year.
    (2) The amount transferred to or from a program or project in any 
one transfer under subsection (a) may not exceed $5,000,000.
    (3) A transfer may not be carried out by a manager of a field 
office under subsection (a) unless the manager determines that the 
transfer--
            (A) is necessary to address a risk to health, safety, or 
        the environment; or
            (B) will result in cost savings and efficiencies.
    (4) A transfer may not be carried out by a manager of a field 
office under subsection (a) to cover a cost overrun or scheduling delay 
for any program or project.
    (5) Funds transferred pursuant to subsection (a) may not be used 
for an item for which Congress has specifically denied funds or for a 
new program or project that has not been authorized by Congress.
    (c) Exemption From Reprogramming Requirements.--The requirements of 
section 3121 shall not apply to transfers of funds pursuant to 
subsection (a).
    (d) Notification.--The Secretary, acting through the Administrator 
for Nuclear Security, shall notify Congress of any transfer of funds 
pursuant to subsection (a) not later than 30 days after such transfer 
occurs.
    (e) Definitions.--In this section:
            (1) The term ``program or project'' means, with respect to 
        a field office of the Department of Energy, any of the 
        following:
                    (A) A program referred to or a project listed in 
                section 3101(1).
                    (B) A program or project not described in 
                subparagraph (A) that is for weapons activities 
                necessary for national security programs of the 
                Department, that is being carried out by that office, 
                and for which weapons activities funds have been 
                authorized and appropriated before the date of the 
                enactment of this Act.
            (2) The term ``weapons activities funds'' means funds 
        appropriated to the Department of Energy pursuant to an 
        authorization for carrying out weapons activities necessary for 
        national security programs.
    (f) Duration of Authority.--The managers of the field offices of 
the Department may exercise the authority provided under subsection (a) 
during the period beginning on October 1, 2002, and ending on September 
30, 2003.

   Subtitle C--Program Authorizations, Restrictions, and Limitations

SEC. 3131. AVAILABILITY OF FUNDS FOR ENVIRONMENTAL MANAGEMENT CLEANUP 
              REFORM.

    (a) Limitation on Availability for Environmental Management Cleanup 
Reform.--None of the funds authorized to be appropriated by section 
3102(8) for the Department of Energy for environmental management 
cleanup reform may be obligated or expended until the Secretary of 
Energy--
            (1) publishes in the Federal Register, and submits to the 
        congressional defense committees, a report setting forth 
        criteria established by the Secretary--
                    (A) for selecting the projects that will receive 
                funding using such funds; and
                    (B) for setting priorities among the projects 
                selected under subparagraph (A); or
            (2) notifies the congressional defense committees that the 
        criteria described by paragraph (1) will not be established.
    (b) Requirements Regarding Establishment of Criteria.--Before 
establishing criteria, if any, under subsection (a)(1), the Secretary 
shall publish a proposal for such criteria in the Federal Register, and 
shall provide a period of 45 days for public notice and comment on the 
proposal.
    (c) Availability of Funds if Criteria Are Not Established.--(1) If 
the Secretary exercises the authority under subsection (a)(2), the 
Secretary shall reallocate the funds referred to in subsection (a) 
among sites that received funds during fiscal year 2002 for defense 
environmental restoration and waste management activities under section 
3102 of the National Defense Authorization Act for Fiscal Year 2002 
(Public Law 107-197; 115 Stat. 1358).
    (2) The amount of funds referred to in subsection (a) that are 
allocated under paragraph (1) to a site described in that paragraph 
shall bear the same ratio to the amount of funds referred to in 
subsection (a) as the amount of funds received by such site during 
fiscal year 2002 under section 3102 of the National Defense 
Authorization Act for Fiscal Year 2002 bears to the total amount of 
funds made available to all sites during fiscal year 2002 under that 
section.
    (3) No funds allocated under paragraph (1) may be obligated or 
expended until 30 days after the Secretary submits to the congressional 
defense committee a list of the projects at each site allocated funds 
under that paragraph, and the amount of such funds to be provided to 
each such project at each such site.
    (4) Funds referred to in subsection (a) may not be obligated or 
expended for any site that was not funded in fiscal year 2002 from 
amounts available to the Department of Energy under title XXXI of the 
National Defense Authorization Act for Fiscal Year 2002.

SEC. 3132. ROBUST NUCLEAR EARTH PENETRATOR.

    Not later than February 3, 2003, the Secretary of Defense shall, in 
consultation with the Secretary of Energy, submit to the congressional 
defense committees a report on the Robust Nuclear Earth Penetrator 
(RNEP). The report shall set forth--
            (1) the military requirements for the Robust Nuclear Earth 
        Penetrator;
            (2) the nuclear weapons employment policy regarding the 
        Robust Nuclear Earth Penetrator;
            (3) a detailed description of the categories or types of 
        targets that the Robust Nuclear Earth Penetrator is designed to 
        hold at risk; and
            (4) an assessment of the ability of conventional weapons to 
        address the same categories and types of targets described 
        under paragraph (3).

SEC. 3133. DATABASE TO TRACK NOTIFICATION AND RESOLUTION PHASES OF 
              SIGNIFICANT FINDING INVESTIGATIONS.

    (a) Availability of Funds for Database.--Amounts authorized to be 
appropriated by section 3101(1) for the National Nuclear Security 
Administration for weapons activities shall be available to the Deputy 
Administrator for Nuclear Security for Defense Programs for the 
development and implementation of a database for all national security 
laboratories to track the notification and resolution phases of 
Significant Finding Investigations (SFIs). The purpose of the database 
is to facilitate the monitoring of the progress and accountability of 
the national security laboratories in Significant Finding 
Investigations.
    (b) Implementation Deadline.--The database required by subsection 
(a) shall be implemented not later than September 30, 2003.
    (c) National Security Laboratory Defined.--In this section, the 
term ``national security laboratory'' has the meaning given that term 
in section 3281(1) of the National Nuclear Security Administration Act 
(title XXXII of Public Law 106-65; 113 Stat. 968; 50 U.S.C. 2471(1)).

SEC. 3134. REQUIREMENTS FOR SPECIFIC REQUEST FOR NEW OR MODIFIED 
              NUCLEAR WEAPONS.

    (a) Requirement for Request for Funds for Development.--(1) In any 
fiscal year after fiscal year 2002 in which the Secretary of Energy 
plans to carry out activities described in paragraph (2) relating to 
the development of a new nuclear weapon or modified nuclear weapon, the 
Secretary shall specifically request funds for such activities in the 
budget of the President for that fiscal year under section 1105(a) of 
title 31, United States Code.
    (2) The activities described in this paragraph are as follows:
            (A) The conduct, or provision for conduct, of research and 
        development which could lead to the production of a new nuclear 
        weapon by the United States.
            (B) The conduct, or provision for conduct, of engineering 
        or manufacturing to carry out the production of a new nuclear 
        weapon by the United States.
            (C) The conduct, or provision for conduct, of research and 
        development which could lead to the production of a modified 
        nuclear weapon by the United States.
            (D) The conduct, or provision for conduct, of engineering 
        or manufacturing to carry out the production of a modified 
        nuclear weapon by the United States.
    (b) Budget Request Format.--The Secretary shall include in a 
request for funds under subsection (a) the following:
            (1) In the case of funds for activities described in 
        subparagraph (A) or (C) of subsection (a)(2), a dedicated line 
        item for each such activity for a new nuclear weapon or 
        modified nuclear weapons that is in phase 1 or 2A or phase 6.1 
        or 6.2A, as the case may be, of the nuclear weapons acquisition 
        process.
            (2) In the case of funds for activities described in 
        subparagraph (B) or (D) of subsection (a)(2), a dedicated line 
        item for each such activity for a new nuclear weapon or 
        modified nuclear weapon that is in phase 3 or higher or phase 
        6.3 or higher, as the case may be, of the nuclear weapons 
        acquisition process.
    (c) Exception.--Subsections (a) shall not apply to funds for 
purposes of conducting, or providing for the conduct of, research and 
development, or manufacturing and engineering, determined by the 
Secretary to be necessary--
            (1) for the nuclear weapons life extension program;
            (2) to modify an existing nuclear weapon solely to address 
        safety or reliability concerns; or
            (3) to address proliferation concerns.
    (d) Construction With Prohibition on Research and Development on 
Low-Yield Nuclear Weapons.--Nothing in this section may be construed to 
modify, repeal, or in any way affect the provisions of section 3136 of 
the National Defense Authorization Act for Fiscal Year 1994 (Public Law 
103-160; 107 Stat. 1946; 42 U.S.C. 2121 note), relating to prohibitions 
on research and development on low-yield nuclear weapons.
    (e) Definitions.--In this section:
            (1) The term ``life extension program'' means the program 
        to repair or replace non-nuclear components, or to modify the 
        pit or canned subassembly, of nuclear weapons in the nuclear 
        weapons stockpile on the date of the enactment of this Act in 
        order to assure that such nuclear weapons retain the ability to 
        meet the military requirements applicable to such nuclear 
        weapons when first placed in the nuclear weapons stockpile.
            (2) The term ``modified nuclear weapon'' means a nuclear 
        weapon that contains a pit or canned subassembly, either of 
        which--
                    (A) is in the nuclear weapons stockpile as of the 
                date of the enactment of this Act; and
                    (B) is being modified in order to meet a military 
                requirement that is other than the military 
                requirements applicable to such nuclear weapon when 
                first placed in the nuclear weapons stockpile.
            (3) The term ``new nuclear weapon'' means a nuclear weapon 
        that contains a pit or canned subassembly, either of which is 
        neither--
                    (A) in the nuclear weapons stockpile on the date of 
                the enactment of this Act; nor
                    (B) in production as of that date.

SEC. 3135. REQUIREMENT FOR AUTHORIZATION BY LAW FOR FUNDS OBLIGATED OR 
              EXPENDED FOR DEPARTMENT OF ENERGY NATIONAL SECURITY 
              ACTIVITIES.

    Section 660 of the Department of Energy Organization Act (42 U.S.C. 
7270) is amended--
            (1) by inserting ``(a)'' before ``Appropriations''; and
            (2) by adding at the end the following new subsection:
    ``(b)(1) No funds for the Department may be obligated or expended 
for--
            ``(A) national security programs and activities of the 
        Department; or
            ``(B) activities under the Atomic Energy Act of 1954 (42 
        U.S.C. 2012 et seq.);
unless funds therefor have been specifically authorized by law.
    ``(2) Nothing in paragraph (1) may be construed to preclude the 
requirement under subsection (a), or under any other provision of law, 
for an authorization of appropriations for programs and activities of 
the Department (other than programs and activities covered by that 
paragraph) as a condition to the obligation and expenditure of funds 
for programs and activities of the Department (other than programs and 
activities covered by that paragraph).''.

SEC. 3136. LIMITATION ON AVAILABILITY OF FUNDS FOR PROGRAM TO ELIMINATE 
              WEAPONS GRADE PLUTONIUM PRODUCTION IN RUSSIA.

    (a) Limitation.--Of the amounts authorized to be appropriated by 
this title for the program to eliminate weapons grade plutonium 
production, the Administrator for Nuclear Security may not obligate or 
expend more than $100,000,000 for that program until 30 days after the 
date on which the Administrator submits to the congressional defense 
committees a copy of an agreement entered into between the United 
States Government and the Government of the Russian Federation to shut 
down the three plutonium-producing reactors in Russia.
    (b) Agreement Elements.--The agreement under subsection (a)--
            (1) shall contain--
                    (A) a commitment to shut down the three plutonium-
                producing reactors;
                    (B) the date on which each such reactor will be 
                shut down;
                    (C) a schedule and milestones for each such reactor 
                to complete the shut down of such reactor by the date 
                specified under subparagraph (B);
                    (D) an arrangement for access to sites and 
                facilities necessary to meet such schedules and 
                milestones; and
                    (E) an arrangement for audit and examination 
                procedures in order to evaluate progress in meeting 
                such schedules and milestones; and
            (2) may include cost sharing arrangements.

                   Subtitle D--Proliferation Matters

SEC. 3151. ADMINISTRATION OF PROGRAM TO ELIMINATE WEAPONS GRADE 
              PLUTONIUM PRODUCTION IN RUSSIA.

    (a) Transfer of Program to Department of Energy.--The program to 
eliminate weapons grade plutonium production in Russia shall be 
transferred from the Department of Defense to the Department of Energy.
    (b) Transfer of Associated Funds.--(1) Notwithstanding any 
restriction or limitation in law on the availability of Cooperative 
Threat Reduction funds specified in paragraph (2), the Cooperative 
Threat Reduction funds specified in that paragraph that are available 
for the program referred to in subsection (a) shall be transferred from 
the Department of Defense to the Department of Energy.
    (2) The Cooperative Threat Reduction funds specified in this 
paragraph are the following:
            (A) Fiscal year 2002 Cooperative Threat Reduction funds, as 
        specified in section 1301(b) of the National Defense 
        Authorization Act for Fiscal Year 2002 (Public Law 107-107; 115 
        Stat. 1254; 22 U.S.C. 5952 note).
            (B) Fiscal year 2001 Cooperative Threat Reduction funds, as 
        specified in section 1301(b) of the Floyd D. Spence National 
        Defense Authorization Act for Fiscal Year 2001 (as enacted into 
        law by Public Law 106-398; 114 Stat. 1654A-339).
            (C) Fiscal year 2000 Cooperative Threat Reduction funds, as 
        specified in section 1301(b) of the National Defense 
        Authorization Act for Fiscal Year 2000 (Public Law 106-65; 113 
        Stat. 792; 22 U.S.C. 5952 note).
    (c) Availability of Transferred Funds.--(1) Notwithstanding any 
restriction or limitation in law on the availability of Cooperative 
Threat Reduction funds specified in subsection (b)(2), the Cooperative 
Threat Reduction funds transferred under subsection (b) for the program 
referred to in subsection (a) shall be available for activities as 
follows:
            (A) To design and construct, refurbish, or both, fossil 
        fuel energy plants in Russia that provide alternative sources 
        of energy to the energy plants in Russia that produce weapons 
        grade plutonium.
            (B) To carry out limited safety upgrades of not more than 
        three energy plants in Russia that produce weapons grade 
        plutonium in order to permit the shutdown of such energy plants 
        and eliminate the production of weapons grade plutonium in such 
        energy plants.
    (2) Amounts available under paragraph (1) for activities referred 
to in that paragraph shall remain available for such activities until 
expended.

SEC. 3152. REPEAL OF REQUIREMENT FOR REPORTS ON OBLIGATION OF FUNDS FOR 
              PROGRAMS ON FISSILE MATERIALS IN RUSSIA.

    Section 3131 of the National Defense Authorization Act for Fiscal 
Year 1996 (Public Law 104-106; 110 Stat. 617; 22 U.S.C. 5952 note) is 
amended--
            (1) in subsection (a), by striking ``(a) Authority.--''; 
        and
            (2) by striking subsection (b).

SEC. 3153. EXPANSION OF ANNUAL REPORTS ON STATUS OF NUCLEAR MATERIALS 
              PROTECTION, CONTROL, AND ACCOUNTING PROGRAMS.

    (a) Covered Programs.--Subsection (a) of section 3171 of the Floyd 
D. Spence National Defense Authorization Act for Fiscal Year 2001 (as 
enacted into law by Public Law 106-398; 114 Stat. 1654A-475) is amended 
by striking ``Russia that'' and inserting ``countries where such 
materials''.
    (b) Report Contents.--Subsection (b) of that section is amended--
            (1) in paragraph (1) by inserting ``in each country covered 
        by subsection (a)'' after ``locations,'';
            (2) in paragraph (2), by striking ``in Russia'' and 
        inserting ``in each such country'';
            (3) in paragraph (3), by inserting ``in each such country'' 
        after ``subsection (a)''; and
            (4) in paragraph (5), by striking ``by total amount and by 
        amount per fiscal year'' and inserting ``by total amount per 
        country and by amount per fiscal year per country''.

SEC. 3154. TESTING OF PREPAREDNESS FOR EMERGENCIES INVOLVING NUCLEAR, 
              RADIOLOGICAL, CHEMICAL, OR BIOLOGICAL WEAPONS.

    (a) Extension of Testing.--Section 1415 of the Defense Against 
Weapons of Mass Destruction Act of 1996 (title XIV of Public Law 104-
201; 110 Stat. 2720; 50 U.S.C. 2315) is amended--
            (1) in subsection (a)(2), by striking ``of five successive 
        fiscal years beginning with fiscal year 1997'' and inserting 
        ``of fiscal years 1997 through 2013''; and
            (2) in subsection (b)(2), by striking ``of five successive 
        fiscal years beginning with fiscal year 1997'' and inserting 
        ``of fiscal years 1997 through 2013''.
    (b) Construction of Extension With Designation of Attorney General 
as Lead Official.--The amendment made by subsection (a) may not be 
construed as modifying the designation of the President entitled 
``Designation of the Attorney General as the Lead Official for the 
Emergency Response Assistance Program Under Sections 1412 and 1415 of 
the National Defense Authorization Act for Fiscal Year 1997'', dated 
April 6, 2000, designating the Attorney General to assume programmatic 
and funding responsibilities for the Emergency Response Assistance 
Program under sections 1412 and 1415 of the Defense Against Weapons of 
Mass Destruction Act of 1996.

SEC. 3155. PROGRAM ON RESEARCH AND TECHNOLOGY FOR PROTECTION FROM 
              NUCLEAR OR RADIOLOGICAL TERRORISM.

    (a) Program Required.--(1) The Administrator for Nuclear Security 
shall carry out a program on research and technology for protection 
from nuclear or radiological terrorism, including technology for the 
detection (particularly as border crossings and ports of entry), 
identification, assessment, control, disposition, consequence 
management, and consequence mitigation of the dispersal of radiological 
materials or of nuclear terrorism.
    (2) The Administrator shall carry out the program as part of the 
support of the Administrator for homeland security and counterterrorism 
within the National Nuclear Security Administration
    (b) Program Elements.--In carrying out the program required by 
subsection (a), the Administrator shall--
            (1) provide for the development of technologies to respond 
        to threats or incidents involving nuclear or radiological 
        terrorism in the United States;
            (2) demonstrate applications of the technologies developed 
        under paragraph (1), including joint demonstrations with the 
        Office of Homeland Security and other appropriate Federal 
        agencies;
            (3) provide, where feasible, for the development in 
        cooperation with the Russian Federation of technologies to 
        respond to nuclear or radiological terrorism in the former 
        states of the Soviet Union, including the demonstration of 
        technologies so developed;
            (4) provide, where feasible, assistance to other countries 
        on matters relating to nuclear or radiological terrorism, 
        including--
                    (A) the provision of technology and assistance on 
                means of addressing nuclear or radiological incidents;
                    (B) the provision of assistance in developing means 
                for the safe disposal of radioactive materials;
                    (C) in coordination with the Nuclear Regulatory 
                Commission, the provision of assistance in developing 
                the regulatory framework for licensing and developing 
                programs for the protection and control of radioactive 
                sources; and
                    (D) the provision of assistance in evaluating the 
                radiological sources identified as not under current 
                accounting programs in the report of the Inspector 
                General of the Department of Energy entitled 
                ``Accounting for Sealed Sources of Nuclear Material 
                Provided to Foreign Countries'', and in identifying and 
                controlling radiological sources that represent 
                significant risks; and
            (5) in coordination with the Office of Environment, Safety, 
        and Health of the Department of Energy, the Department of 
        Commerce, and the International Atomic Energy Agency, develop 
        consistent criteria for screening international transfers of 
        radiological materials.
    (c) Requirements for International Elements of Program.--(1) In 
carrying out activities in accordance with paragraphs (3) and (4) of 
subsection (b), the Administrator shall consult with--
            (A) the Secretary of Defense, Secretary of State, and 
        Secretary of Commerce; and
            (B) the International Atomic Energy Agency.
    (2) The Administrator shall encourage joint leadership between the 
United States and the Russian Federation of activities on the 
development of technologies under subsection (b)(4).
    (d) Incorporation of Results in Emergency Response Assistance 
Program.--To the maximum extent practicable, the technologies and 
information developed under the program required by subsection (a) 
shall be incorporated into the program on responses to emergencies 
involving nuclear and radiological weapons carried out under section 
1415 of the Defense Against Weapons of Mass Destruction Act of 1996 
(title XIV of Public Law 104-201; 50 U.S.C. 2315).
    (e) Amount for Activities.--Of the amount authorized to be 
appropriated by section 3101(2) for the Department of Energy for the 
National Nuclear Security Administration for defense nuclear 
nonproliferation and available for the development of a new generation 
of radiation detectors for homeland defense, up to $15,000,000 shall be 
available for carrying out this section.

SEC. 3156. EXPANSION OF INTERNATIONAL MATERIALS PROTECTION, CONTROL, 
              AND ACCOUNTING PROGRAM.

    (a) Expansion of Program to Additional Countries Authorized.--The 
Secretary of Energy may expand the International Materials Protection, 
Control, and Accounting (MPC&A) program of the Department of Energy to 
encompass countries outside the Russian Federation and the independent 
states of the former Soviet Union.
    (b) Notice to Congress of Use of Funds for Additional Countries.--
Not later than 30 days after the Secretary obligates funds for the 
International Materials Protection, Control, and Accounting program, as 
expanded under subsection (a), for activities in or with respect to a 
country outside the Russian Federation and the independent states of 
the former Soviet Union, the Secretary shall submit to Congress a 
notice of the obligation of such funds for such activities.
    (c) Assistance to Department of State for Nuclear Materials 
Security Programs.--(1) As part of the International Materials 
Protection, Control, and Accounting program, the Secretary of Energy 
may provide technical assistance to the Secretary of State in the 
efforts of the Secretary of State to assist other nuclear weapons 
states to review and improve their nuclear materials security programs.
    (2) The technical assistance provided under paragraph (1) may 
include the sharing of technology or methodologies to the states 
referred to in that paragraph. Any such sharing shall--
            (A) be consistent with the treaty obligations of the United 
        States; and
            (B) take into account the sovereignty of the state 
        concerned and its weapons programs, as well the sensitivity of 
        any information involved regarding United States weapons or 
        weapons systems.
    (3) The Secretary of Energy may include the Russian Federation in 
activities under paragraph (1) if the Secretary determines that the 
experience of the Russian Federation under the International Materials 
Protection, Control, and Accounting program with the Russian Federation 
would make the participation of the Russian Federation in such 
activities useful in providing technical assistance under that 
paragraph.
    (d) Plan for Accelerated Conversion or Return of Weapons-Usable 
Nuclear Materials.--(1) The Secretary shall develop a plan to 
accelerate the conversion or return to the country of origin of all 
weapons-usable nuclear materials located in research reactors and other 
facilities outside the country of origin.
    (2) The plan under paragraph (1) for nuclear materials of origin in 
the Soviet Union shall be developed in consultation with the Russian 
Federation.
    (3) As part of the plan under paragraph (1), the Secretary shall 
identify the funding and schedules required to assist the research 
reactors and facilities referred to in that paragraph in upgrading 
their materials protection, control, and accounting procedures until 
the weapons-usable nuclear materials in such reactors and facilities 
are converted or returned in accordance with that paragraph.
    (4) The provision of assistance under paragraph (3) shall be 
closely coordinated with ongoing efforts of the International Atomic 
Energy Agency for the same purpose.
    (e) Radiological Dispersal Device Materials Protection, Control, 
and Accounting.--(1) The Secretary shall establish within the 
International Materials Protection, Control, and Accounting program a 
program on the protection, control, and accounting of materials usable 
in radiological dispersal devices.
    (2) The program under paragraph (1) shall include--
            (A) an identification of vulnerabilities regarding 
        radiological materials worldwide;
            (B) the mitigation of vulnerabilities so identified through 
        appropriate security enhancements; and
            (C) an acceleration of efforts to recover and control 
        diffused radiation sources and `orphaned'' radiological sources 
        that are of sufficient strength to represent a significant 
        risk.
    (3) The program under paragraph (1) shall be known as the 
Radiological Dispersal Device Materials Protection, Control, and 
Accounting program.
    (f) Study of Program To Secure Certain Radiological Materials.--(1) 
The Secretary, acting through the Administrator for Nuclear Security, 
shall require the Office of International Materials Protection, 
Control, and Accounting of the Department of Energy to conduct a study 
to determine the feasibility and advisability of developing a program 
to secure radiological materials outside the United States that pose a 
threat to the national security of the United States.
    (2) The study under paragraph (1) shall include the following:
            (A) An identification of the categories of radiological 
        materials that are covered by that paragraph, including an 
        order of priority for securing each category of such 
        radiological materials.
            (B) An estimate of the number of sites at which such 
        radiological materials are present.
            (C) An assessment of the effort required to secure such 
        radiological materials at such sites, including--
                    (i) a description of the security upgrades, if any, 
                that are required at such sites;
                    (ii) an assessment of the costs of securing such 
                radiological materials at such sites;
                    (iii) a description of any cost-sharing 
                arrangements to defray such costs;
                    (iv) a description of any legal impediments to such 
                effort, including a description of means of overcoming 
                such impediments; and
                    (v) a description of the coordination required for 
                such effort among appropriate United States Government 
                entities (including the Nuclear Regulatory Commission), 
                participating countries, and international bodies 
                (including the International Atomic Energy Agency).
            (D) A description of the pilot project undertaken in 
        Russia.
    (3) In identifying categories of radiological materials under 
paragraph (2)(A), the Secretary shall take into account matters 
relating to specific activity, half-life, radiation type and energy, 
attainability, difficulty of handling, and toxicity, and such other 
matters as the Secretary considers appropriate.
    (4) Not later than one year after the date of the enactment of this 
Act, the Secretary shall submit to Congress a report on the study 
conducted under this subsection. The report shall include the matters 
specified under paragraph (2) and such other matters, including 
recommendations, as the Secretary considers appropriate as a result of 
the study.
    (5) In this subsection, the term ``radiological material'' means 
any radioactive material, other than plutonium (Pu) or uranium enriched 
above 20 percent uranium-235.
    (g) Amendment of Convention on Physical Protection of Nuclear 
Material.--(1) It is the sense of Congress that the President should 
encourage amendment of the Convention on the Physical Protection of 
Nuclear Materials in order to provide that the Convention shall--
            (A) apply to both the domestic and international use and 
        transport of nuclear materials;
            (B) incorporate fundamental practices for the physical 
        protection of such materials; and
            (C) address protection against sabotage involving nuclear 
        materials.
    (2) In this subsection, the term ``Convention on the Physical 
Protection of Nuclear Materials'' means the Convention on the Physical 
Protection of Nuclear Materials, With Annex, done at Vienna on October 
26, 1979.
    (h) Amount for Activities.--Of the amount authorized to be 
appropriated by section 3102(2) for the Department of Energy for the 
National Nuclear Security Administration for defense nuclear 
nonproliferation, up to $5,000,000 shall be available for carrying out 
this section.

SEC. 3157. ACCELERATED DISPOSITION OF HIGHLY ENRICHED URANIUM AND 
              PLUTONIUM.

    (a) Sense of Congress on Program To Secure Stockpiles of Highly 
Enriched Uranium and Plutonium.--(1) It is the sense of Congress that 
the Secretary of Energy, in consultation with the Secretary of State 
and Secretary of Defense, should develop a comprehensive program of 
activities to encourage all countries with nuclear materials to adhere 
to, or to adopt standards equivalent to, the International Atomic 
Energy Agency standard on The Physical Protection of Nuclear Material 
and Nuclear Facilities (INFCIRC/225/Rev.4), relating to the security of 
stockpiles of highly enriched uranium (HEU) and plutonium (Pu).
    (2) To the maximum extent practicable, the program should be 
developed in consultation with the Russian Federation, other Group of 8 
countries, and other allies of the United States.
    (3) Activities under the program should include specific, targeted 
incentives intended to encourage countries that cannot undertake the 
expense of conforming to the standard referred to in paragraph (1) to 
relinquish their highly enriched uranium (HEU) or plutonium (Pu), 
including incentives in which a country, group of countries, or 
international body--
            (A) purchase such materials and provide for their security 
        (including by removal to another location);
            (B) undertake the costs of decommissioning facilities that 
        house such materials;
            (C) in the case of research reactors, convert such reactors 
        to low-enriched uranium reactors; or
            (D) upgrade the security of facilities that house such 
        materials in order to meet stringent security standards that 
        are established for purposes of the program based upon agreed 
        best practices.
    (b) Program on Accelerated Disposition of HEU Authorized.--(1) The 
Secretary of Energy may carry out a program to pursue with the Russian 
Federation, and any other nation that possesses highly enriched 
uranium, options for blending such uranium so that the concentration of 
U-235 in such uranium is below 20 percent.
    (2) The options pursued under paragraph (1) shall include expansion 
of the Material Consolidation and Conversion program of the Department 
of Energy to include--
            (A) additional facilities for the blending of highly 
        enriched uranium; and
            (B) additional centralized secure storage facilities for 
        highly enriched uranium designated for blending.
    (c) Incentives Regarding Highly Enriched Uranium in Russia.--As 
part of the options pursued under subsection (b) with the Russian 
Federation, the Secretary may provide financial and other incentives 
for the removal of all highly enriched uranium from any particular 
facility in the Russian Federation if the Secretary determines that 
such incentives will facilitate the consolidation of highly enriched 
uranium in the Russian Federation to the best-secured facilities.
    (d) Construction With HEU Disposition Agreement.--Nothing in this 
section may be construed as terminating, modifying, or otherwise 
effecting requirements for the disposition of highly enriched uranium 
under the Agreement Between the Government of the United States of 
America and the Government of the Russian Federation Concerning the 
Disposition of Highly Enriched Uranium Extracted from Nuclear Weapons, 
signed at Washington on February 18, 1993.
    (e) Priority in Blending Activities.--In pursuing options under 
this section, the Secretary shall give priority to the blending of 
highly enriched uranium from weapons, though highly enriched uranium 
from sources other than weapons may also be blended.
    (f) Transfer of Highly Enriched Uranium and Plutonium to United 
States.--(1) As part of the program under subsection (b), the Secretary 
may, upon the request of any nation--
            (A) purchase highly enriched uranium or weapons grade 
        plutonium from the nation at a price determined by the 
        Secretary;
            (B) transport any uranium or plutonium so purchased to the 
        United States; and
            (C) store any uranium or plutonium so transported in the 
        United States.
    (2) The Secretary is not required to blend any highly enriched 
uranium purchased under paragraph (1)(A) in order to reduce the 
concentration of U-235 in such uranium to below 20 percent. Amounts 
authorized to be appropriated by subsection (m) may not be used for 
purposes of blending such uranium.
    (g) Transfer of Highly Enriched Uranium to Russia.--(1) As part of 
the program under subsection (b), the Secretary may encourage nations 
with highly enriched uranium to transfer such uranium to the Russian 
Federation for disposition under this section.
    (2) The Secretary may pay any nation that transfers highly enriched 
uranium to the Russian Federation under this subsection an amount 
determined appropriate by the Secretary.
    (3) The Secretary may bear the cost of any blending and storage of 
uranium transferred to the Russian Federation under this subsection, 
including any costs of blending and storage under a contract under 
subsection (h). Any site selected for such storage shall have undergone 
complete materials protection, control, and accounting upgrades before 
the commencement of such storage.
    (h) Contracts for Blending and Storage of Highly Enriched Uranium 
in Russia.--(1) As part of the program under subsection (b), the 
Secretary may enter into one or more contracts with the Russian 
Federation--
            (A) to blend in the Russian Federation highly enriched 
        uranium of the Russian Federation and highly enriched uranium 
        transferred to the Russian Federation under subsection (g); or
            (B) to store in the Russian Federation highly enriched 
        uranium before blending or the blended material.
    (2) Any site selected for the storage of uranium or blended 
material under paragraph (1)(B) shall have undergone complete materials 
protection, control, and accounting upgrades before the commencement of 
such storage.
    (i) Limitation on Release for Sale of Blended Uranium.--Uranium 
blended under this section may not be released for sale until the 
earlier of--
            (1) January 1, 2014; or
            (2) the date on which the Secretary certifies that such 
        uranium can be absorbed into the global market without undue 
        disruption to the uranium mining industry in the United States.
    (j) Proceeds of Sale of Uranium Blended by Russia.--Upon the sale 
by the Russian Federation of uranium blended under this section by the 
Russian Federation, the Secretary may elect to receive from the 
proceeds of such sale an amount not to exceed 75 percent of the costs 
incurred by the Department of Energy under subsections (c), (g), and 
(h).
    (k) Report on Status of Program.--Not later than July 1, 2003, the 
Secretary shall submit to Congress a report on the status of the 
program carried out under the authority in subsection (b). The report 
shall include--
            (1) a description of international interest in the program;
            (2) schedules and operational details of the program; and
            (3) recommendations for future funding for the program.
    (l) Highly Enriched Uranium Defined.--In this section, the term 
``highly enriched uranium'' means uranium with a concentration of U-235 
of 20 percent or more.
    (m) Amount for Activities.--Of the amount to be appropriated by 
section 3102(2) for the Department of Energy for the National Nuclear 
Security Administration for defense nuclear nonproliferation, up to 
$40,000,000 shall be available for carrying out this section.

SEC. 3158. DISPOSITION OF PLUTONIUM IN RUSSIA.

    (a) Negotiations With Russian Federation.--(1) The Secretary of 
Energy is encouraged to continue to support the Secretary of State in 
negotiations with the Ministry of Atomic Energy of the Russian 
Federation to finalize the plutonium disposition program of the Russian 
Federation (as established under the agreement described in subsection 
(b)).
    (2) As part of the negotiations, the Secretary of Energy may 
consider providing additional funds to the Ministry of Atomic Energy in 
order to reach a successful agreement.
    (3) If such an agreement, meeting the requirements in subsection 
(c), is reached with the Ministry of Atomic Energy, which requires 
additional funds for the Russian work, the Secretary shall either seek 
authority to use funds available for another purpose, or request 
supplemental appropriations, for such work.
    (b) Agreement.--The agreement referred to in subsection (a) is the 
Agreement Between the Government of the United States of America and 
the Government of the Russian Federation Concerning the Management and 
Disposition of Plutonium Designated As No Longer Required For Defense 
Purposes and Related Cooperation, signed August 29, 2000, and September 
1, 2000.
    (c) Requirement for Disposition Program.-- The plutonium 
disposition program under subsection (a)--
            (1) shall include transparent verifiable steps;
            (2) shall proceed at a rate approximately equivalent to the 
        rate of the United States program for the disposition of 
        plutonium;
            (3) shall provide for cost-sharing among a variety of 
        countries;
            (4) shall provide for contributions by the Russian 
        Federation;
            (5) shall include steps over the near term to provide high 
        confidence that the schedules for the disposition of plutonium 
        of the Russian Federation will be achieved; and
            (6) may include research on more speculative long-term 
        options for the future disposition of the plutonium of the 
        Russian Federation in addition to the near-term steps under 
        paragraph (5).

SEC. 3159. STRENGTHENED INTERNATIONAL SECURITY FOR NUCLEAR MATERIALS 
              AND SAFETY AND SECURITY OF NUCLEAR OPERATIONS.

    (a) Report on Options for International Program To Strengthen 
Security and Safety.--(1) Not later than 270 days after the date of the 
enactment of this Act, the Secretary of Energy shall submit to Congress 
a report on options for an international program to develop 
strengthened security for all nuclear materials and safety and security 
for current nuclear operations.
    (2) The Secretary shall consult with the Office of Nuclear Energy 
Science and Technology of the Department of Energy in the development 
of options for purposes of the report.
    (3) In evaluating options for purposes of the report, the Secretary 
shall consult with the Nuclear Regulatory Commission and the 
International Atomic Energy Agency on the feasibility and advisability 
of actions to reduce the risks associated with terrorist attacks on 
nuclear power plants outside the United States.
    (4) Each option for an international program under paragraph (1) 
may provide that the program is jointly led by the United States, the 
Russian Federation, and the International Atomic Energy Agency.
    (5) The Secretary shall include with the report on options for an 
international program under paragraph (1) a description and assessment 
of various management alternatives for the international program. If 
any option requires Federal funding or legislation to implement, the 
report shall also include recommendations for such funding or 
legislation, as the case may be.
    (b) Joint Programs With Russia on Proliferation Resistant Nuclear 
Energy Technologies.--The Director of the Office of Nuclear Energy 
Science and Technology Energy shall, in coordination with the 
Secretary, pursue with the Ministry of Atomic Energy of the Russian 
Federation joint programs between the United States and the Russian 
Federation on the development of proliferation resistant nuclear energy 
technologies, including advanced fuel cycles.
    (c) Participation of International Technical Experts.--In 
developing options under subsection (a), the Secretary shall, in 
consultation with the Nuclear Regulatory Commission, the Russian 
Federation, and the International Atomic Energy Agency, convene and 
consult with an appropriate group of international technical experts on 
the development of various options for technologies to provide 
strengthened security for nuclear materials and safety and security for 
current nuclear operations, including the implementation of such 
options.
    (d) Assistance Regarding Hostile Insiders and Aircraft Impacts.--
(1) The Secretary may, utilizing appropriate expertise of the 
Department of Energy and the Nuclear Regulatory Commission, provide 
assistance to nuclear facilities abroad on the interdiction of hostile 
insiders at such facilities in order to prevent incidents arising from 
the disablement of the vital systems of such facilities.
    (2) The Secretary may carry out a joint program with the Russian 
Federation and other countries to address and mitigate concerns on the 
impact of aircraft with nuclear facilities in such countries.
    (e) Assistance to IAEA in Strengthening International Nuclear 
Safety and Security.--The Secretary may expand and accelerate the 
programs of the Department of Energy to support the International 
Atomic Energy Agency in strengthening international nuclear safety and 
security.
    (f) Amount for Activities.--Of the amount authorized to be 
appropriated by section 3102(2) for the Department of Energy for the 
National Nuclear Security Administration for defense nuclear 
nonproliferation, up to $35,000,000 shall be available for carrying out 
this section as follows:
            (1) For activities under subsections (a) through (d), 
        $20,000,000, of which--
                    (A) $5,000,000 shall be available for sabotage 
                protection for nuclear power plants and other nuclear 
                facilities abroad; and
                    (B) $10,000,000 shall be available for development 
                of proliferation resistant nuclear energy technologies 
                under subsection (b).
            (2) For activities under subsection (e), $15,000,000.

SEC. 3160. EXPORT CONTROL PROGRAMS.

    (a) Authority To Pursue Options for Strengthening Export Control 
Programs.--The Secretary of Energy may pursue in the former Soviet 
Union and other regions of concern, principally in South Asia, the 
Middle East, and the Far East, options for accelerating programs that 
assist countries in such regions in improving their domestic export 
control programs for materials, technologies, and expertise relevant to 
the construction or use of a nuclear or radiological dispersal device.
    (b) Amount for Activities.--Of the amount authorized to be 
appropriated by section 3102(2) for the Department of Energy for the 
National Nuclear Security Administration for defense nuclear 
nonproliferation, up to $5,000,000 shall be available for carrying out 
this section.

SEC. 3161. IMPROVEMENTS TO NUCLEAR MATERIALS PROTECTION, CONTROL, AND 
              ACCOUNTING PROGRAM OF THE RUSSIAN FEDERATION.

    (a) Revised Focus for Program.--(1) The Secretary of Energy shall 
work cooperatively with the Russian Federation to update and improve 
the Joint Action Plan for the Materials Protection, Control, and 
Accounting programs of the Department and the Russian Federation 
Ministry of Atomic Energy.
    (2) The updated plan shall shift the focus of the upgrades of the 
nuclear materials protection, control, and accounting program of the 
Russian Federation in order to assist the Russian Federation in 
achieving, as soon as practicable but not later than January 1, 2012, a 
sustainable nuclear materials protection, control, and accounting 
system for the nuclear materials of the Russian Federation that is 
supported solely by the Russian Federation.
    (b) Pace of Program.--The Secretary shall work with the Russian 
Federation, including applicable institutes in Russia, to pursue 
acceleration of the nuclear materials protection, control, and 
accounting programs at nuclear defense facilities in the Russian 
Federation.
    (c) Transparency of Program.--The Secretary shall work with the 
Russian Federation to identify various alternatives to provide the 
United States adequate transparency in the nuclear materials 
protection, control, and accounting program of the Russian Federation 
to assure that such program is meeting applicable goals for nuclear 
materials protection, control, and accounting.
    (d) Sense of Congress.--In furtherance of the activities required 
under this section, it is the sense of Congress the Secretary should--
            (1) enhance the partnership with the Russian Ministry of 
        Atomic Energy in order to increase the pace and effectiveness 
        of nuclear materials accounting and security activities at 
        facilities in the Russian Federation, including serial 
        production enterprises; and
            (2) clearly identify the assistance required by the Russian 
        Federation, the contributions anticipated from the Russian 
        Federation, and the transparency milestones that can be used to 
        assess progress in meeting the requirements of this section.

SEC. 3162. COMPREHENSIVE ANNUAL REPORT TO CONGRESS ON COORDINATION AND 
              INTEGRATION OF ALL UNITED STATES NONPROLIFERATION 
              ACTIVITIES.

    Section 1205 of the National Defense Authorization Act for Fiscal 
Year 2002 (Public Law 107-107; 115 Stat. 1247) is amended by adding at 
the end the following new subsection:
    ``(d) Annual Report on Implementation of Plan.--(1) Not later than 
January 31, 2003, and each year thereafter, the President shall submit 
to Congress a report on the implementation of the plan required by 
subsection (a) during the preceding year.
    ``(2) Each report under paragraph (1) shall include--
            ``(A) a discussion of progress made during the year covered 
        by such report in the matters of the plan required by 
        subsection (a);
            ``(B) a discussion of consultations with foreign nations, 
        and in particular the Russian Federation, during such year on 
        joint programs to implement the plan;
            ``(C) a discussion of cooperation, coordination, and 
        integration during such year in the implementation of the plan 
        among the various departments and agencies of the United States 
        Government, as well as private entities that share objectives 
        similar to the objectives of the plan; and
            ``(D) any recommendations that the President considers 
        appropriate regarding modifications to law or regulations, or 
        to the administration or organization of any Federal department 
        or agency, in order to improve the effectiveness of any 
        programs carried out during such year in the implementation of 
        the plan.''.

SEC. 3163. UTILIZATION OF DEPARTMENT OF ENERGY NATIONAL LABORATORIES 
              AND SITES IN SUPPORT OF COUNTERTERRORISM AND HOMELAND 
              SECURITY ACTIVITIES.

    (a) Agencies as Joint Sponsors of Laboratories for Work on 
Activities.--Each department or agency of the Federal Government, or of 
a State or local government, that carries out work on counterterrorism 
and homeland security activities at a Department of Energy national 
laboratory may be a joint sponsor, under a multiple agency sponsorship 
arrangement with the Department, of such laboratory in the performance 
of such work.
    (b) Agencies as Joint Sponsors of Sites for Work on Activities.--
Each department or agency of the Federal Government, or of a State or 
local government, that carries out work on counterterrorism and 
homeland security activities at a Department of Energy site may be a 
joint sponsor of such site in the performance of such work as if such 
site were a federally funded research and development center and such 
work were performed under a multiple agency sponsorship arrangement 
with the Department.
    (c) Primary Sponsorship.--The Department of Energy shall be the 
primary sponsor under a multiple agency sponsorship arrangement 
required under subsection (a) or (b).
    (d) Work.--(1) The Administrator for Nuclear Security shall act as 
the lead agent in coordinating the formation and performance of a joint 
sponsorship agreement between a requesting agency and a Department of 
Energy national laboratory or site for work on counterterrorism and 
homeland security.
    (2) A request for work may not be submitted to a national 
laboratory or site under this section unless approved in advance by the 
Administrator.
    (3) Any work performed by a national laboratory or site under this 
section shall comply with the policy on the use of federally funded 
research and development centers under section 35.017(a)(4) of the 
Federal Acquisition Regulation.
    (4) The Administrator shall ensure that the work of a national 
laboratory or site requested under this section is performed 
expeditiously and to the satisfaction of the head of the department or 
agency submitting the request.
    (e) Funding.--(1) Subject to paragraph (2), a joint sponsor of a 
Department of Energy national laboratory or site under this section 
shall provide funds for work of such national laboratory or site, as 
the case may be, under this section under the same terms and conditions 
as apply to the primary sponsor of such national laboratory under 
section 303(b)(1)(C) of the Federal Property and Administrative 
Services Act of 1949 (41 U.S.C. 253(b)(1)(C)) or of such site to the 
extent such section applies to such site as a federally funded research 
and development center by reason of subsection (b).
    (2) The total amount of funds provided a national laboratory or 
site in a fiscal year under this subsection by joint sponsors other 
than the Department of Energy shall not exceed an amount equal to 25 
percent of the total funds provided such national laboratory or site, 
as the case may be, in such fiscal year from all sources.

                       Subtitle E--Other Matters

SEC. 3171. INDEMNIFICATION OF DEPARTMENT OF ENERGY CONTRACTORS.

    Section 170d.(1)(A) of the Atomic Energy Act of 1954 (42 U.S.C. 
2210(d)(1)(A)) is amended by striking ``until August 1, 2002,'' and 
inserting ``until August 1, 2012''.

SEC. 3172. WORKER HEALTH AND SAFETY RULES FOR DEPARTMENT OF ENERGY 
              FACILITIES.

    The Atomic Energy Act of 1954 is amended by inserting after section 
234B (42 U.S.C. 2282b) the following:

``SEC. 234C. WORKER HEALTH AND SAFETY RULES FOR DEPARTMENT OF ENERGY 
              NUCLEAR FACILITIES.

    ``(a) Persons Subject to Penalty.--
            ``(1) Civil penalty.--
                    ``(A) In general.--A person (or any subcontractor 
                or supplier of the person) who has entered into an 
                agreement of indemnification under section 2210(d) (or 
                any subcontractor or supplier of the person) that 
                violates (or is the employer of a person that violates) 
                Department of Energy Order No. 440.1A (1998), or any 
                rule or regulation relating to industrial or 
                construction health and safety promulgated by the 
                Secretary of Energy (referred to in this section as the 
                ``Secretary'') after public notice and opportunity for 
                comment under section 553 of title 5, United States 
                Code (commonly known as the `Administrative Procedure 
                Act'), shall be subject to a civil penalty of not more 
                than $100,000 for each such violation.
                    ``(B) Continuing violations.--If any violation 
                under this subsection is a continuing violation, each 
                day of the violation shall constitute a separate 
                violation for the purpose of computing the civil 
                penalty under subparagraph (A).
            ``(2) Regulations.--
                    ``(A) In general.--Not later than 270 days after 
                the date of enactment of this section, the Secretary 
                shall promulgate regulations for industrial and 
                construction health and safety that incorporate the 
                provisions and requirements contained in Department of 
                Energy Order No. 440.1A (1998).
                    ``(B) Effective date.--The regulations promulgated 
                under subparagraph (A) shall take effect on the date 
                that is 1 year after the promulgation date of the 
                regulations.
            ``(3) Variances or exemptions.--
                    ``(A) In general.--The Secretary may provide in the 
                regulations promulgated under paragraph (2) a procedure 
                for granting variances or exemptions to the extent 
                necessary to avoid serious impairment of the national 
                security of the United States.
                    ``(B) Determination.--In determining whether to 
                provide a variance or exemption under subparagraph (A), 
                the Secretary of Energy shall assess--
                            ``(i) the impact on national security of 
                        not providing a variance or exemption; and
                            ``(ii) the benefits or detriments to worker 
                        health and safety of providing a variance or 
                        exemption.
                    ``(C) Procedure.--Before granting a variance or 
                exemption, the Secretary of Energy shall--
                            ``(i) notify affected employees;
                            ``(ii) provide an opportunity for a hearing 
                        on the record; and
                            ``(iii) notify Congress of any 
                        determination to grant a variance at least 60 
                        days before the proposed effective date of the 
                        variance or exemption.
            ``(4) Applicability.--This subsection does not apply to any 
        facility that is a component of, or any activity conducted 
        under, the Naval Nuclear Propulsion Program.
            ``(5) Enforcement guidance on structures to be disposed 
        of.--
                    ``(A) In general.--In enforcing the regulations 
                under paragraph (2), the Secretary of Energy shall, on 
                a case-by-case basis, evaluate whether a building, 
                facility, structure, or improvement of the Department 
                of Energy that is permanently closed and that is 
                expected to be demolished, or title to which is 
                expected to be transferred to another entity for reuse, 
                should undergo major retrofitting to comply with 
                specific general industry standards.
                    ``(B) No effect on health and safety enforcement.--
                This subsection does not diminish or otherwise affect--
                            ``(i) the enforcement of any worker health 
                        and safety regulations under this section with 
                        respect to the surveillance and maintenance or 
                        decontamination, decommissioning, or demolition 
                        of buildings, facilities, structures, or 
                        improvements; or
                            ``(ii) the application of any other law 
                        (including regulations), order, or contractual 
                        obligation.
    ``(b) Contract Penalties.--
            ``(1) In general.--The Secretary shall include in each 
        contract with a contractor of the Department provisions that 
        provide an appropriate reduction in the fees or amounts paid to 
        the contractor under the contract in the event of a violation 
        by the contractor or contractor employee of any regulation or 
        order relating to industrial or construction health and safety.
            ``(2) Contents.--The provisions shall specify various 
        degrees of violations and the amount of the reduction 
        attributable to each degree of violation.
    ``(c) Powers and Limitations.--The powers and limitations 
applicable to the assessment of civil penalties under section 234A, 
except for subsection (d) of that section, shall apply to the 
assessment of civil penalties under this section.
    ``(d) Total Amount of Penalties.--In the case of an entity 
described in subsection (d) of section 234A, the total amount of civil 
penalties under subsection (a) or under subsection (a) of section 234B 
in a fiscal year may not exceed the total amount of fees paid by the 
Department of Energy to that entity in that fiscal year.''.

SEC. 3173. ONE-YEAR EXTENSION OF AUTHORITY OF DEPARTMENT OF ENERGY TO 
              PAY VOLUNTARY SEPARATION INCENTIVE PAYMENTS.

    (a) In General.--Section 3161(a) of the National Defense 
Authorization Act for Fiscal Year 2000 (Public Law 106-65; 5 U.S.C. 
5597 note) is amended by striking ``January 1, 2004'' and inserting 
``January 1, 2005''.
    (b) Construction.--The amendment made by subsection (a) may be 
superseded by another provision of law that takes effect after the date 
of the enactment of this Act, and before January 1, 2004, establishing 
a uniform system for providing voluntary separation incentives 
(including a system for requiring approval of plans by the Office of 
Management and Budget) for employees of the Federal Government.

SEC. 3174. SUPPORT FOR PUBLIC EDUCATION IN THE VICINITY OF LOS ALAMOS 
              NATIONAL LABORATORY, NEW MEXICO.

    (a) Support for Fiscal Year 2003.--From amounts authorized to be 
appropriated to the Secretary of Energy by this title, $6,900,000 shall 
be available for payment by the Secretary for fiscal year 2003 to the 
Los Alamos National Laboratory Foundation, a not-for-profit foundation 
chartered in accordance with section 3167(a) of the National Defense 
Authorization Act for Fiscal Year 1998 (Public Law 105-85; 111 Stat. 
2052).
    (b) Use of Funds.--The foundation referred to in subsection (a) 
shall--
            (1) utilize funds provided under this section as a 
        contribution to the endowment fund for the foundation; and
            (2) use the income generated from investments in the 
        endowment fund that are attributable to the payment made under 
        this section to fund programs to support the educational needs 
        of children in the public schools in the vicinity of Los Alamos 
        National Laboratory, New Mexico.
    (c) Repeal of Superseded Authority and Modification of Authority To 
Extend Contract.--(1) Subsection (b) of section 3136 of the National 
Defense Authorization Act for Fiscal Year 2002 (Public Law 107-107; 115 
Stat. 1368) is amended to read as follows:
    ``(b) Support for Fiscal Years 2003 through 2013.--Subject to the 
availability of appropriations, the Secretary may provide for a 
contract extension through fiscal year 2013 similar to the contract 
extension referred to in subsection (a)(2).''.
    (2) The amendment made by paragraph (1) shall take effect on 
October 1, 2002.

Subtitle F--Disposition of Weapons-Usable Plutonium at Savannah River, 
                             South Carolina

SEC. 3181. FINDINGS.

    Congress makes the following findings:
            (1) In September 2000, the United States and the Russian 
        Federation signed a Plutonium Management and Disposition 
        Agreement by which each agreed to dispose of 34 metric tons of 
        weapons-grade plutonium.
            (2) The agreement with Russia is a significant step toward 
        safeguarding nuclear materials and preventing their diversion 
        to rogue states and terrorists.
            (3) The Department of Energy plans to dispose of 34 metric 
        tons of weapons-grade plutonium in the United States before the 
        end of 2019 by converting the plutonium to a mixed-oxide fuel 
        to be used in commercial nuclear power reactors.
            (4) The Department has formulated a plan for implementing 
        the agreement with Russia through construction of a mixed-oxide 
        fuel fabrication facility, the so-called MOX facility, and a 
        pit disassembly and conversion facility at the Savannah River 
        Site, Aiken, South Carolina.
            (5) The United States and the State of South Carolina have 
        a compelling interest in the safe, proper, and efficient 
        operation of the plutonium disposition facilities at the 
        Savannah River Site. The MOX facility will also be economically 
        beneficial to the State of South Carolina, and that economic 
        benefit will not be fully realized unless the MOX facility is 
        built.
            (6) The State of South Carolina desires to ensure that all 
        plutonium transferred to the State of South Carolina is stored 
        safely; that the full benefits of the MOX facility are realized 
        as soon as possible; and, specifically, that all defense 
        plutonium or defense plutonium materials transferred to the 
        Savannah River Site either be processed or be removed 
        expeditiously.

SEC. 3182. DISPOSITION OF WEAPONS-USABLE PLUTONIUM AT SAVANNAH RIVER 
              SITE.

    (a) Plan for Construction and Operation of MOX Facility.--(1) Not 
later than February 1, 2003, the Secretary of Energy shall submit to 
Congress a plan for the construction and operation of the MOX facility 
at the Savannah River Site, Aiken, South Carolina.
    (2) The plan under paragraph (1) shall include--
            (A) a schedule for construction and operations so as to 
        achieve, as of January 1, 2009, and thereafter, the MOX 
        production objective, and to produce 1 metric ton of mixed 
        oxide fuel by December 31, 2009; and
            (B) a schedule of operations of the MOX facility designed 
        so that 34 metric tons of defense plutonium and defense 
        plutonium materials at the Savannah River Site will be 
        processed into mixed oxide fuel by January 1, 2019.
    (3)(A) Not later than February 15 each year, beginning in 2004 and 
continuing for as long as the MOX facility is in use, the Secretary 
shall submit to Congress a report on the implementation of the plan 
required by paragraph (1).
    (B) Each report under subparagraph (A) for years before 2010 shall 
include--
            (i) an assessment of compliance with the schedules included 
        with the plan under paragraph (2); and
            (ii) a certification by the Secretary whether or not the 
        MOX production objective can be met by January 2009.
    (C) Each report under subparagraph (A) for years after 2009 shall--
            (i) address whether the MOX production objective has been 
        met; and
            (ii) assess progress toward meeting the obligations of the 
        United States under the Plutonium Management and Disposition 
        Agreement.
    (D) For years after 2017, each report under subparagraph (A) shall 
also include an assessment of compliance with the MOX production 
objective and, if not in compliance, the plan of the Secretary for 
achieving one of the following:
            (i) Compliance with such objective.
            (ii) Removal of all remaining defense plutonium and defense 
        plutonium materials from the State of South Carolina.
    (b) Corrective Actions.--(1) If a report under subsection (a)(3) 
indicates that construction or operation of the MOX facility is behind 
the applicable schedule under subsection (a)(2) by 12 months or more, 
the Secretary shall submit to Congress, not later than August 15 of the 
year in which such report is submitted, a plan for corrective actions 
to be implemented by the Secretary to ensure that the MOX facility 
project is capable of meeting the MOX production objective by January 
1, 2009.
    (2) If a plan is submitted under paragraph (1) in any year after 
2008, the plan shall include corrective actions to be implemented by 
the Secretary to ensure that the MOX production objective is met.
    (3) Any plan for corrective actions under paragraph (1) or (2) 
shall include established milestones under such plan for achieving 
compliance with the MOX production objective.
    (4) If, before January 1, 2009, the Secretary determines that there 
is a substantial and material risk that the MOX production objective 
will not be achieved by 2009 because of a failure to achieve milestones 
set forth in the most recent corrective action plan under this 
subsection, the Secretary shall suspend further transfers of defense 
plutonium and defense plutonium materials to be processed by the MOX 
facility until such risk is addressed and the Secretary certifies that 
the MOX production objective can be met by 2009.
    (5) If, after January 1, 2009, the Secretary determines that the 
MOX production objective has not been achieved because of a failure to 
achieve milestones set forth in the most recent corrective action plan 
under this subsection, the Secretary shall suspend further transfers of 
defense plutonium and defense plutonium materials to be processed by 
the MOX facility until the Secretary certifies that the MOX production 
objective can be met by 2009.
    (6)(A) Upon making a determination under paragraph (4) or (5), the 
Secretary shall submit to Congress a report on the options for removing 
from the State of South Carolina an amount of defense plutonium or 
defense plutonium materials equal to the amount of defense plutonium or 
defense plutonium materials transferred to the State of South Carolina 
after April 15, 2002.
    (B) Each report under subparagraph (A) shall include an analysis of 
each option set forth in the report, including the cost and schedule 
for implementation of such option, and any requirements under the 
National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.) 
relating to consideration or selection of such option.
    (C) Upon submittal of a report under paragraph (A), the Secretary 
shall commence any analysis that may be required under the National 
Environmental Policy Act of 1969 in order to select among the options 
set forth in the report.
    (c) Contingent Requirement for Removal of Plutonium and Materials 
From Savannah River Site.--If the MOX production objective is not 
achieved as of January 1, 2009, the Secretary shall, consistent with 
the National Environmental Policy Act of 1969 and other applicable 
laws, remove from the State of South Carolina, for storage or disposal 
elsewhere--
            (1) not later than January 1, 2011, not less than 1 metric 
        ton of defense plutonium or defense plutonium materials; and
            (2) not later than January 1, 2017, an amount of defense 
        plutonium or defense plutonium materials equal to the amount of 
        defense plutonium or defense plutonium materials transferred to 
        the Savannah River Site between April 15, 2002 and January 1, 
        2017, but not processed by the MOX facility.
    (d) Economic and Impact Assistance.--(1) If the MOX production 
objective is not achieved as of January 1, 2011, the Secretary shall 
pay to the State of South Carolina each year beginning on or after that 
date through 2016 for economic and impact assistance an amount equal to 
$1,000,000 per day until the later of--
            (A) the passage of 100 days in such year;
            (B) the MOX production objective is achieved in such year; 
        or
            (C) the Secretary has removed from the State of South 
        Carolina in such year at least 1 metric ton of defense 
        plutonium or defense plutonium materials.
    (2)(A) If the MOX production objective is not achieved as of 
January 1, 2017, the Secretary shall pay to the State of South Carolina 
each year beginning on or after that date through 2024 for economic and 
impact assistance an amount equal to $1,000,000 per day until the later 
of--
            (i) the passage of 100 days in such year;
            (ii) the MOX production objective is achieved in such year; 
        or
            (iii) the Secretary has removed from the State of South 
        Carolina an amount of defense plutonium or defense plutonium 
        materials equal to the amount of defense plutonium or defense 
        plutonium materials transferred to the Savannah River Site 
        between April 15, 2002 and January 1, 2017, but not processed 
        by the MOX facility.
    (B) Nothing in this paragraph may be construed to terminate, 
supersede, or otherwise affect any other requirements of this section.
    (3) The Secretary shall make payments, if any, under this 
subsection, from amounts authorized to be appropriated to the 
Department of Energy.
    (4) If the State of South Carolina obtains an injunction that 
prohibits the Department from taking any action necessary for the 
Department to meet any deadline specified by this subsection, that 
deadline shall be extended for a period of time equal to the period of 
time during which the injunction is in effect.
    (e) Failure To Complete Planned Disposition Program.--If on July 1 
each year beginning in 2020 and continuing for as long as the MOX 
facility is in use, less than 34 metric tons of defense plutonium or 
defense plutonium materials have been processed by the MOX facility, 
the Secretary shall submit to Congress a plan for--
            (1) completing the processing of 34 metric tons of defense 
        plutonium and defense plutonium material by the MOX facility; 
        or
            (2) removing from the State of South Carolina an amount of 
        defense plutonium or defense plutonium materials equal to the 
        amount of defense plutonium or defense plutonium materials 
        transferred to the Savannah River Site after April 15, 2002, 
        but not processed by the MOX facility.
    (f) Removal of Mixed-Oxide Fuel Upon Completion of Operations of 
MOX Facility.--If, one year after the date on which operation of the 
MOX facility permanently ceases any mixed-oxide fuel remains at the 
Savannah River Site, the Secretary shall submit to Congress--
            (1) a report on when such fuel will be transferred for use 
        in commercial nuclear reactors; or
            (2) a plan for removing such fuel from the State of South 
        Carolina.
    (g) Definitions.--In this section:
            (1) MOX production objective.--The term ``MOX production 
        objective'' means production at the MOX facility of mixed-oxide 
        fuel from defense plutonium and defense plutonium materials at 
        an average rate equivalent to not less than one metric ton of 
        mixed-oxide fuel per year. The average rate shall be determined 
        by measuring production at the MOX facility from the date the 
        facility is declared operational to the Nuclear Regulatory 
        Commission through the date of assessment.
            (2) MOX facility.--The term ``MOX facility'' means the 
        mixed-oxide fuel fabrication facility at the Savannah River 
        Site, Aiken, South Carolina.
            (3) Defense plutonium; defense plutonium materials.--The 
        terms ``defense-plutonium'' and ``defense plutonium materials'' 
        mean weapons-usable plutonium.

SEC. 3183. STUDY OF FACILITIES FOR STORAGE OF PLUTONIUM AND PLUTONIUM 
              MATERIALS AT SAVANNAH RIVER SITE.

    (a) Study.--The Defense Nuclear Facilities Safety Board shall 
conduct a study of the adequacy of K-Area Materials Storage facility 
(KAMS), and related support facilities such as Building 235-F, at the 
Savannah River Site, Aiken, South Carolina, for the storage of defense 
plutonium and defense plutonium materials in connection with the 
disposition program provided in section 3182 and in connection with the 
amended Record of Decision of the Department of Energy for fissile 
materials disposition.
    (b) Report.--Not later than one year after the date of enactment of 
this Act, the Defense Nuclear Facilities Safety Board shall submit to 
Congress and the Secretary of Energy a report on the study conducted 
under subsection (a).
    (c) Report Elements.--The report under subsection (b) shall--
            (1) address--
                    (A) the suitability of KAMS and related support 
                facilities for monitoring and observing any defense 
                plutonium or defense plutonium materials stored in 
                KAMS;
                    (B) the adequacy of the provisions made by the 
                Department for remote monitoring of such defense 
                plutonium and defense plutonium materials by way of 
                sensors and for handling of retrieval of such defense 
                plutonium and defense plutonium materials; and
                    (C) the adequacy of KAMS should such defense 
                plutonium and defense plutonium materials continue to 
                be stored at KAMS after 2019; and
            (2) include such recommendations as the Defense Nuclear 
        Facilities Safety Board considers appropriate to enhance the 
        safety, reliability, and functionality of KAMS.
    (d) Reports on Actions on Recommendations.--Not later than 6 months 
after the date on which the report under subsection (b) is submitted to 
Congress, and every year thereafter, the Secretary and the Board shall 
each submit to Congress a report on the actions taken by the Secretary 
in response to the recommendations, if any, included in the report.

          TITLE XXXII--DEFENSE NUCLEAR FACILITIES SAFETY BOARD

SEC. 3201. AUTHORIZATION.

    There are authorized to be appropriated for fiscal year 2003, 
$19,494,000 for the operation of the Defense Nuclear Facilities Safety 
Board under chapter 21 of the Atomic Energy Act of 1954 (42 U.S.C. 2286 
et seq.).

SEC. 3202. AUTHORIZATION OF APPROPRIATIONS FOR THE FORMERLY USED SITES 
              REMEDIAL ACTION PROGRAM OF THE CORPS OF ENGINEERS.

    There is hereby authorized to be appropriated for fiscal year 2003 
for the Department of the Army, $140,000,000 for the formerly used 
sites remedial action program of the Corps of Engineers.

            Passed the Senate June 27, 2002.

            Attest:

                                                             Secretary.
107th CONGRESS

  2d Session

                                S. 2514

_______________________________________________________________________

                                 AN ACT

     To authorize appropriations for fiscal year 2003 for military 
activities of the Department of Defense, for military construction, and 
   for defense activities of the Department of Energy, to prescribe 
personnel strengths for such fiscal year for the Armed Forces, and for 
                            other purposes.

_______________________________________________________________________

                             June 27, 2002

                    Ordered to be printed as passed