[Congressional Record Volume 147, Number 139 (Tuesday, October 16, 2001)]
[House]
[Pages H6831-H6872]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




 CONFERENCE REPORT ON H.R. 2904, MILITARY CONSTRUCTION APPROPRIATIONS 
                               ACT, 2002

  Mr. HOBSON submitted the following conference report and statement on 
the bill (H.R. 2904) making appropriations for military construction, 
family housing, and base realignment and closure for the Department of 
Defense for the fiscal year ending September 30, 2002, and for other 
purposes:

                  Conference Report (H. Rept. 107-246)

       The committee of conference on the disagreeing votes of the 
     two Houses on the amendment of the Senate to the bill (H.R. 
     2904) ``making appropriations for military construction, 
     family housing, and base realignment and closure for the 
     Department of Defense for the fiscal year ending September 
     30, 2002, and for other purposes,'' having met, after full 
     and free conference, have agreed to recommend and do 
     recommend to their respective Houses as follows:
       That the House recede from its disagreement to the 
     amendment of the Senate, and agree to the same with an 
     amendment, as follows:
       In lieu of the matter stricken and inserted by said 
     amendment, insert:
     That the following sums are appropriated, out of any money in 
     the Treasury not otherwise appropriated for military 
     construction, family housing, and base realignment and 
     closure functions administered by the Department of Defense, 
     for the fiscal year ending September 30, 2002, and for other 
     purposes, namely:

                      Military Construction, Army


                         (including rescission)

       For acquisition, construction, installation, and equipment 
     of temporary or permanent public works, military 
     installations, facilities, and real property for the Army as 
     currently authorized by law, including personnel in the Army 
     Corps of Engineers and other personal services necessary for 
     the purposes of this appropriation, and for construction and 
     operation of facilities in support of the functions of the 
     Commander in Chief, $1,778,256,000, to remain available until 
     September 30, 2006: Provided, That of this amount, not to 
     exceed $163,198,000 shall be available for study, planning, 
     design, architect and engineer services, and host nation 
     support, as authorized by law, unless the Secretary of 
     Defense determines that additional obligations are necessary 
     for such purposes and notifies the Committees on 
     Appropriations of both Houses of Congress of his 
     determination and the reasons therefor: Provided further, 
     That of the funds appropriated for ``Military Construction, 
     Army'' under Public Law 106-52, $36,400,000 are rescinded.

                      Military Construction, Navy


                         (including rescission)

       For acquisition, construction, installation, and equipment 
     of temporary or permanent public works, naval installations, 
     facilities, and real property for the Navy as currently 
     authorized by law, including personnel in the Naval 
     Facilities Engineering Command and other personal services 
     necessary for the purposes of this appropriation, 
     $1,144,221,000, to remain available until September 30, 2006: 
     Provided, That of this amount, not to exceed $34,152,000 
     shall be available for study, planning, design, architect and 
     engineer services, as authorized by law, unless the Secretary 
     of Defense determines that additional obligations are 
     necessary for such purposes and notifies the Committees on 
     Appropriations of both Houses of Congress of his 
     determination and the reasons therefor: Provided further, 
     That of the funds appropriated for ``Military Construction, 
     Navy'' under Public Law 106-246, $19,588,000 are rescinded.

                    Military Construction, Air Force


                         (including rescission)

       For acquisition, construction, installation, and equipment 
     of temporary or permanent public works, military 
     installations, facilities, and real property for the Air 
     Force as currently authorized by law, $1,194,880,000, to 
     remain available until September 30, 2006: Provided, That of 
     this amount, not to exceed $83,210,000 shall be available for 
     study, planning, design, architect and engineer services, as 
     authorized by law, unless the Secretary of Defense determines 
     that additional obligations are necessary for such purposes 
     and notifies the Committees on Appropriations of both Houses 
     of Congress of his determination and the reasons therefor: 
     Provided further, That of the funds appropriated for 
     ``Military Construction, Air Force'' under previous Military 
     Construction Appropriations Acts, $4,000,000 are rescinded.

                  Military Construction, Defense-wide


             (including transfer and rescissions of funds)

       For acquisition, construction, installation, and equipment 
     of temporary or permanent public works, installations, 
     facilities, and real property for activities and agencies of 
     the Department of Defense (other than the military 
     departments), as currently authorized by law, $840,558,000, 
     to remain available until September 30, 2006: Provided, That 
     such amounts of this appropriation as may be determined by 
     the Secretary of Defense may be transferred to such 
     appropriations of the Department of Defense available for 
     military construction or family housing as he may designate, 
     to be merged with and to be available for the same purposes, 
     and for the same time period, as the appropriation or fund to 
     which transferred: Provided further, That of the amount 
     appropriated, not to exceed $66,496,000 shall be available 
     for study, planning, design, architect and engineer services, 
     as authorized by law, unless the Secretary of Defense 
     determines that additional obligations are necessary for 
     such purposes and notifies the Committees on 
     Appropriations of both Houses of Congress of his 
     determination and the reasons therefor: Provided further, 
     That of the funds appropriated for ``Military 
     Construction, Defense-wide'' under Public Law 106-246, 
     $65,280,000 are rescinded: provided further; That of the 
     funds appropriated for ``Military Construction, Defense-
     wide'' under previous Military Construction Appropriations 
     Acts, $4,000,000 are rescinded.

               Military Construction, Army National Guard

       For construction, acquisition, expansion, rehabilitation, 
     and conversion of facilities for the training and 
     administration of the Army National Guard, and contributions 
     therefor, as authorized by chapter 1803 of title 10, United 
     States Code, and Military Construction Authorization Acts, 
     $405,565,000, to remain available until September 30, 2006.

               Military Construction, Air National Guard

       For construction, acquisition, expansion, rehabilitation, 
     and conversion of facilities for the training and 
     administration of the Air National Guard, and contributions 
     therefor, as authorized by chapter 1803 of title 10, United 
     States Code, and Military Construction Authorization Acts, 
     $253,386,000, to remain available until September 30, 2006.

                  Military Construction, Army Reserve

       For construction, acquisition, expansion, rehabilitation, 
     and conversion of facilities for the training and 
     administration of the Army Reserve as authorized by chapter 
     1803 of title 10, United States Code, and Military 
     Construction Authorization Acts, $167,019,000, to remain 
     available until September 30, 2006.

                  Military Construction, Naval Reserve


                         (including rescission)

       For construction, acquisition, expansion, rehabilitation, 
     and conversion of facilities for the training and 
     administration of the reserve components of the Navy and 
     Marine Corps as authorized by chapter 1803 of title 10, 
     United States Code, and Military Construction Authorization 
     Acts, $53,201,000, to remain available

[[Page H6832]]

     until September 30, 2006: Provided, That of the funds 
     appropriated for ``Military Construction, Naval Reserve'' 
     under Public Law 106-246, $925,000 are rescinded.

                Military Construction, Air Force Reserve

       For construction, acquisition, expansion, rehabilitation, 
     and conversion of facilities for the training and 
     administration of the Air Force Reserve as authorized by 
     chapter 1803 of title 10, United States Code, and Military 
     Construction Authorization Acts, $74,857,000, to remain 
     available until September 30, 2006.

     North Atlantic Treaty Organization Security Investment Program

       For the United States share of the cost of the North 
     Atlantic Treaty Organization Security Investment Program for 
     the acquisition and construction of military facilities and 
     installations (including international military headquarters) 
     and for related expenses for the collective defense of the 
     North Atlantic Treaty Area as authorized in Military 
     Construction Authorization Acts and section 2806 of title 10, 
     United States Code, $162,600,000, to remain available until 
     expended.

                   Family Housing Construction, Army

       For expenses of family housing for the Army for 
     construction, including acquisition, replacement, addition, 
     expansion, extension and alteration, as authorized by law, 
     $312,742,000, to remain available until September 30, 2006.

             Family Housing Operation and Maintenance, Army

       For expenses of family housing for the Army for operation 
     and maintenance, including debt payment, leasing, minor 
     construction, principal and interest charges, and insurance 
     premiums, as authorized by law, $1,089,573,000.

           Family Housing Construction, Navy and Marine Corps

       For expenses of family housing for the Navy and Marine 
     Corps for construction, including acquisition, replacement, 
     addition, expansion, extension and alteration, as authorized 
     by law, $331,780,000, to remain available until September 30, 
     2006.

    Family Housing Operation and Maintenance, Navy and Marine Corps

       For expenses of family housing for the Navy and Marine 
     Corps for operation and maintenance, including debt payment, 
     leasing, minor construction, principal and interest charges, 
     and insurance premiums, as authorized by law, $910,095,000.

                 Family Housing Construction, Air Force

       For expenses of family housing for the Air Force for 
     construction, including acquisition, replacement, addition, 
     expansion, extension and alteration, as authorized by law, 
     $550,703,000, to remain available until September 30, 2006.

          Family Housing Operation and Maintenance, Air Force

       For expenses of family housing for the Air Force for 
     operation and maintenance, including debt payment, leasing, 
     minor construction, principal and interest charges, and 
     insurance premiums, as authorized by law, $844,715,000.

                      Family Housing, Defense-wide

       For expenses of family housing for the activities and 
     agencies of the Department of Defense (other than the 
     military departments) for construction, including 
     acquisition, replacement, addition, expansion, extension and 
     alteration, and for operation and maintenance, leasing, and 
     minor construction, as authorized by law, as follows: for 
     Construction, $250,000 to remain available until September 
     30, 2006; for Operation and Maintenance, $43,762,000; in all 
     $44,012,000.

         Department of Defense Family Housing Improvement Fund

       For the Department of Defense Family Housing Improvement 
     Fund, $2,000,000, to remain available until expended, for 
     family housing initiatives undertaken pursuant to section 
     2883 of title 10, United States Code, providing alternative 
     means of acquiring and improving military family housing, and 
     supporting facilities.

                  Homeowners Assistance Fund, Defense

       For the Homeowners Assistance Fund established by section 
     1013 of the Demonstration Cities and Metropolitan Development 
     Act of 1966, as amended (42 U.S.C. 3374) $10,119,000, to 
     remain available until expended.

                  Base Realignment and Closure Account

       For deposit into the Department of Defense Base Closure 
     Account 1990 established by section 2906(a)(1) of the 
     Department of Defense Authorization Act, 1991 (Public Law 
     101-510), $632,713,000, to remain available until expended.

                           GENERAL PROVISIONS

       Sec. 101. None of the funds appropriated in Military 
     Construction Appropriations Acts shall be expended for 
     payments under a cost-plus-a-fixed-fee contract for 
     construction, where cost estimates exceed $25,000, to be 
     performed within the United States, except Alaska, without 
     the specific approval in writing of the Secretary of Defense 
     setting forth the reasons therefor.
       Sec. 102. Funds appropriated to the Department of Defense 
     for construction shall be available for hire of passenger 
     motor vehicles.
       Sec. 103. Funds appropriated to the Department of Defense 
     for construction may be used for advances to the Federal 
     Highway Administration, Department of Transportation, for the 
     construction of access roads as authorized by section 210 of 
     title 23, United States Code, when projects authorized 
     therein are certified as important to the national defense by 
     the Secretary of Defense.
       Sec. 104. None of the funds appropriated in this Act may be 
     used to begin construction of new bases inside the 
     continental United States for which specific appropriations 
     have not been made.
       Sec. 105. No part of the funds provided in Military 
     Construction Appropriations Acts shall be used for purchase 
     of land or land easements in excess of 100 percent of the 
     value as determined by the Army Corps of Engineers or the 
     Naval Facilities Engineering Command, except: (1) where there 
     is a determination of value by a Federal court; (2) purchases 
     negotiated by the Attorney General or his designee; (3) where 
     the estimated value is less than $25,000; or (4) as otherwise 
     determined by the Secretary of Defense to be in the public 
     interest.
       Sec. 106. None of the funds appropriated in Military 
     Construction Appropriations Acts shall be used to: (1) 
     acquire land; (2) provide for site preparation; or (3) 
     install utilities for any family housing, except housing for 
     which funds have been made available in annual Military 
     Construction Appropriations Acts.
       Sec. 107. None of the funds appropriated in Military 
     Construction Appropriations Acts for minor construction may 
     be used to transfer or relocate any activity from one base or 
     installation to another, without prior notification to the 
     Committees on Appropriations.
       Sec. 108. No part of the funds appropriated in Military 
     Construction Appropriations Acts may be used for the 
     procurement of steel for any construction project or activity 
     for which American steel producers, fabricators, and 
     manufacturers have been denied the opportunity to compete for 
     such steel procurement.
       Sec. 109. None of the funds available to the Department of 
     Defense for military construction or family housing during 
     the current fiscal year may be used to pay real property 
     taxes in any foreign nation.
       Sec. 110. None of the funds appropriated in Military 
     Construction Appropriations Acts may be used to initiate a 
     new installation overseas without prior notification to the 
     Committees on Appropriations.
       Sec. 111. None of the funds appropriated in Military 
     Construction Appropriations Acts may be obligated for 
     architect and engineer contracts estimated by the Government 
     to exceed $500,000 for projects to be accomplished in Japan, 
     in any NATO member country, or in countries bordering the 
     Arabian Sea, unless such contracts are awarded to United 
     States firms or United States firms in joint venture with 
     host nation firms.
       Sec. 112. None of the funds appropriated in Military 
     Construction Appropriations Acts for military construction in 
     the United States territories and possessions in the Pacific 
     and on Kwajalein Atoll, or in countries bordering the Arabian 
     Sea, may be used to award any contract estimated by the 
     Government to exceed $1,000,000 to a foreign contractor: 
     Provided, That this section shall not be applicable to 
     contract awards for which the lowest responsive and 
     responsible bid of a United States contractor exceeds the 
     lowest responsive and responsible bid of a foreign contractor 
     by greater than 20 percent: Provided further, That this 
     section shall not apply to contract awards for military 
     construction on Kwajalein Atoll for which the lowest 
     responsive and responsible bid is submitted by a Marshallese 
     contractor.
       Sec. 113. The Secretary of Defense is to inform the 
     appropriate committees of Congress, including the Committees 
     on Appropriations, of the plans and scope of any proposed 
     military exercise involving United States personnel 30 days 
     prior to its occurring, if amounts expended for construction, 
     either temporary or permanent, are anticipated to exceed 
     $100,000.
       Sec. 114. Not more than 20 percent of the appropriations in 
     Military Construction Appropriations Acts which are limited 
     for obligation during the current fiscal year shall be 
     obligated during the last 2 months of the fiscal year.


                          (transfer of funds)

       Sec. 115. Funds appropriated to the Department of Defense 
     for construction in prior years shall be available for 
     construction authorized for each such military department by 
     the authorizations enacted into law during the current 
     session of Congress.
       Sec. 116. For military construction or family housing 
     projects that are being completed with funds otherwise 
     expired or lapsed for obligation, expired or lapsed funds may 
     be used to pay the cost of associated supervision, 
     inspection, overhead, engineering and design on those 
     projects and on subsequent claims, if any.
       Sec. 117. Notwithstanding any other provision of law, any 
     funds appropriated to a military department or defense agency 
     for the construction of military projects may be obligated 
     for a military construction project or contract, or for any 
     portion of such a project or contract, at any time before the 
     end of the fourth fiscal year after the fiscal year for which 
     funds for such project were appropriated if the funds 
     obligated for such project: (1) are obligated from funds 
     available for military construction projects; and (2) do not 
     exceed the amount appropriated for such project, plus any 
     amount by which the cost of such project is increased 
     pursuant to law.


                          (transfer of funds)

       Sec. 118. During the 5-year period after appropriations 
     available to the Department of Defense for military 
     construction and family housing operation and maintenance and 
     construction have expired for obligation, upon a 
     determination that such appropriations will not be necessary 
     for the liquidation of obligations or for making authorized 
     adjustments to such appropriations for obligations incurred 
     during the period of availability of such appropriations, 
     unobligated balances of such appropriations may be 
     transferred into the appropriation ``Foreign Currency 
     Fluctuations, Construction, Defense'' to be merged with and 
     to be available for the same time period and for the same 
     purposes as the appropriation to which transferred.
       Sec. 119. The Secretary of Defense is to provide the 
     Committees on Appropriations of the Senate and the House of 
     Representatives with

[[Page H6833]]

     an annual report by February 15, containing details of the 
     specific actions proposed to be taken by the Department of 
     Defense during the current fiscal year to encourage other 
     member nations of the North Atlantic Treaty Organization, 
     Japan, Korea, and United States allies bordering the Arabian 
     Sea to assume a greater share of the common defense burden of 
     such nations and the United States.


                          (transfer of funds)

       Sec. 120. During the current fiscal year, in addition to 
     any other transfer authority available to the Department of 
     Defense, proceeds deposited to the Department of Defense Base 
     Closure Account established by section 207(a)(1) of the 
     Defense Authorization Amendments and Base Closure and 
     Realignment Act (Public Law 100-526) pursuant to section 
     207(a)(2)(C) of such Act, may be transferred to the account 
     established by section 2906(a)(1) of the Department of 
     Defense Authorization Act, 1991, to be merged with, and to be 
     available for the same purposes and the same time period as 
     that account.
       Sec. 121. (a) No funds appropriated pursuant to this Act 
     may be expended by an entity unless the entity agrees that in 
     expending the assistance the entity will comply with sections 
     2 through 4 of the Act of March 3, 1933 (41 U.S.C. 10a-10c, 
     popularly known as the ``Buy American Act'').
       (b) No funds made available under this Act shall be made 
     available to any person or entity who has been convicted of 
     violating the Act of March 3, 1933 (41 U.S.C. 10a-10c, 
     popularly known as the ``Buy American Act'').
       Sec. 122. (a) In the case of any equipment or products that 
     may be authorized to be purchased with financial assistance 
     provided under this Act, it is the sense of the Congress that 
     entities receiving such assistance should, in expending the 
     assistance, purchase only American-made equipment and 
     products.
       (b) In providing financial assistance under this Act, the 
     Secretary of the Treasury shall provide to each recipient of 
     the assistance a notice describing the statement made in 
     subsection (a) by the Congress.


                          (transfer of funds)

       Sec. 123. Subject to 30 days prior notification to the 
     Committees on Appropriations, such additional amounts as may 
     be determined by the Secretary of Defense may be transferred 
     to the Department of Defense Family Housing Improvement Fund 
     from amounts appropriated for construction in ``Family 
     Housing'' accounts, to be merged with and to be available for 
     the same purposes and for the same period of time as amounts 
     appropriated directly to the Fund: Provided, That 
     appropriations made available to the Fund shall be available 
     to cover the costs, as defined in section 502(5) of the 
     Congressional Budget Act of 1974, of direct loans or loan 
     guarantees issued by the Department of Defense pursuant to 
     the provisions of subchapter IV of chapter 169, title 10, 
     United States Code, pertaining to alternative means of 
     acquiring and improving military family housing and 
     supporting facilities.
       Sec. 124. None of the funds appropriated or made available 
     by this Act may be obligated for Partnership for Peace 
     Programs in the New Independent States of the former Soviet 
     Union.
       Sec. 125. (a) Not later than 60 days before issuing any 
     solicitation for a contract with the private sector for 
     military family housing the Secretary of the military 
     department concerned shall submit to the congressional 
     defense committees the notice described in subsection (b).
       (b)(1) A notice referred to in subsection (a) is a notice 
     of any guarantee (including the making of mortgage or rental 
     payments) proposed to be made by the Secretary to the private 
     party under the contract involved in the event of--
       (A) the closure or realignment of the installation for 
     which housing is provided under the contract;
       (B) a reduction in force of units stationed at such 
     installation; or
       (C) the extended deployment overseas of units stationed at 
     such installation.
       (2) Each notice under this subsection shall specify the 
     nature of the guarantee involved and assess the extent and 
     likelihood, if any, of the liability of the Federal 
     Government with respect to the guarantee.
       (c) In this section, the term ``congressional defense 
     committees'' means the following:
       (1) The Committee on Armed Services and the Military 
     Construction Subcommittee, Committee on Appropriations of the 
     Senate.
       (2) The Committee on Armed Services and the Military 
     Construction Subcommittee, Committee on Appropriations of the 
     House of Representatives.


                          (transfer of funds)

       Sec. 126. During the current fiscal year, in addition to 
     any other transfer authority available to the Department of 
     Defense, amounts may be transferred from the account 
     established by section 2906(a)(1) of the Department of 
     Defense Authorization Act, 1991, to the fund established by 
     section 1013(d) of the Demonstration Cities and Metropolitan 
     Development Act of 1966 (42 U.S.C. 3374) to pay for expenses 
     associated with the Homeowners Assistance Program. Any 
     amounts transferred shall be merged with and be available for 
     the same purposes and for the same time period as the fund to 
     which transferred.
       Sec. 127. Notwithstanding this or any other provision of 
     law, funds appropriated in Military Construction 
     Appropriations Acts for operations and maintenance of family 
     housing shall be the exclusive source of funds for repair and 
     maintenance of all family housing units, including general or 
     flag officer quarters: Provided, That not more than $35,000 
     per unit may be spent annually for the maintenance and repair 
     of any general or flag officer quarters without 30 days 
     advance prior notification to the appropriate committees of 
     Congress: Provided further, That the Under Secretary of 
     Defense (Comptroller) is to report annually to the Committees 
     on Appropriations all operations and maintenance expenditures 
     for each individual general or flag officer quarters for the 
     prior fiscal year.
       Sec. 128. In addition to the amounts provided in Public Law 
     107-20, of the funds appropriated under the heading 
     ``Military Construction, Air Force'' in this Act, $8,000,000 
     is to remain available until September 30, 2005: Provided, 
     That notwithstanding any other provision of law, such funds 
     may be obligated or expended to carry out planning and design 
     and military construction activities at the Masirah Island 
     Airfield in Oman, not otherwise authorized by law.
       Sec. 129. Not later than 90 days after the enactment of 
     this Act, the Secretary of Defense shall submit to the 
     congressional defense committees a master plan for the 
     environmental remediation of Hunters Point Naval Shipyard, 
     California. The plan shall identify an aggregate cost 
     estimate for the entire project as well as cost estimates for 
     individual parcels. The plan shall also include a detailed 
     cleanup schedule and an analysis of whether the Department is 
     meeting legal requirements and community commitments. 
     Following submission of the initial report, the Department 
     shall submit semi-annual progress reports to the 
     congressional defense committees.


                         (rescission of funds)

       Sec. 130. Of the funds available to the Secretary of 
     Defense in the ``Foreign Currency Fluctuations, Construction, 
     Defense'' account, $60,000,000 are rescinded.
       Sec. 131. (a) Requests for Funds for Environmental 
     Restoration at BRAC Sites in Future Fiscal Years.--In the 
     budget justification materials submitted to Congress in 
     support of the Department of Defense budget for any fiscal 
     year after fiscal year 2002, the amount requested for 
     environmental restoration, waste management, and 
     environmental compliance activities in such fiscal year with 
     respect to military installations approved for closure or 
     realignment under the base closure laws shall accurately 
     reflect the anticipated cost of such activities in such 
     fiscal year.
       (b) Base Closure Laws Defined.--In this section, the term 
     ``base closure laws'' means the following:
       (1) Section 2687 of title 10, United States Code.
       (2) 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).
       (3) Title II of the Defense Authorization Amendments and 
     Base Closure and Realignment Act (Public Law 100-526; 10 
     U.S.C. 2687 note).
       Sec. 132. (a) The total of the amounts appropriated by the 
     other provisions of this Act, other than the amounts 
     appropriated for the accounts specified in subsection (c), is 
     hereby reduced by 1.127 percent.
       (b) The total amount of the reduction computed under 
     subsection (a) shall be allocated proportionally among all of 
     the budget activities, activity groups, and subactivity 
     groups and among all of the accounts and all of the programs, 
     projects, and activities within each account, except for the 
     accounts specified in subsection (c).
       (c) No reduction shall be allocated under this section to 
     the Base Realignment and Closure Account, or to the North 
     Atlantic Treaty Organization Security Investment Program.
       This Act may be cited as the ``Military Construction 
     Appropriations Act, 2002''.
       And the Senate agree to the same.

     David L. Hobson,
     James T. Walsh,
     Dan Miller,
     Robert B. Aderholt,
     Kay Granger,
     Virgil Goode, Jr.,
     Joe Skeen,
     David Vitter,
     Bill Young,
     John W. Olver,
     Chet Edwards,
     Sam Farr,
     Allen Boyd,
     Norman Dicks,
     David Obey,
                                Managers on the Part of the House.

     Dianne Feinstein,
     Daniel K. Inouye,
     Tim Johnson,
     Mary Landrieu,
     Harry Reid,
     Robert C. Byrd,
     Kay Bailey Hutchison,
     Conrad Burns,
     Larry E. Craig
     Mike DeWine,
     Ted Stevens,
                               Managers on the Part of the Senate.

       JOINT EXPLANATORY STATEMENT OF THE COMMITTEE OF CONFERENCE

       The managers on the part of the House and the Senate at the 
     conference on the disagreeing votes of the two Houses on the 
     amendment of the Senate to the bill (H.R. 2904) making 
     appropriations for the Department of Defense for the fiscal 
     year ending September 30, 2002, and for other purposes, 
     submit the following joint statement to the House of 
     Representatives and the Senate in explanation of the effect 
     of the action agreed upon by the managers and recommended in 
     the accompanying conference report.
       The Senate deleted the entire House bill after the enacting 
     clause and inserted the Senate bill (S. 1460). The conference 
     agreement includes a revised bill.

                       Items of General Interest

       Matters Addressed by Only One Committee.--The language and 
     allocations set forth in House Report 107-207 and Senate 
     Report 107-

[[Page H6834]]

     68 should be complied with unless specifically addressed to 
     the contrary in the conference report and statement of the 
     managers. Report language included by the House which is not 
     changed by the report of the Senate or the conference, and 
     Senate report language which is not changed by the conference 
     is approved by the committee of conference. The statement of 
     the managers, while repeating some report language for 
     emphasis, does not intend to negate the language referred to 
     above unless expressly provided herein. In cases in which the 
     House or the Senate have directed the submission of a report 
     from the Department of Defense, such report is to be 
     submitted to both House and Senate Committees on 
     Appropriations.
       Financial Management.--The conferees agree that the 
     rescission of funds and general reductions included in the 
     conference agreement are based on prior year unobligated 
     balances and such factors as savings through favorable bids, 
     reduced overhead costs, downsizing or cancellation due to 
     force structure changes (if any), other administrative cost 
     reduction initiatives, revised economic assumptions, and 
     inflation re-estimates. The conferees direct that no project 
     for which funds were previously appropriated, or for which 
     funds are appropriated in this bill, may be canceled as a 
     result of the reductions included in the conference 
     agreement.
       Foreign Currency Fluctuations, Construction, Defense.--The 
     amounts available in the ``Foreign Currency Fluctuations, 
     Construction, Defense'' account exceed those necessary to 
     eliminate losses due to unfavorable fluctuations in foreign 
     currency exchange rates. Accordingly, the conferees include a 
     provision (Section 130) which rescinds $60,000,000 from this 
     account.
       Sustainment, Restoration, and Modernization: Reporting 
     Requirement.--The conferees agree to the following general 
     rules for repairing a facility under operation and 
     maintenance funding:
       Components of the facility may be repaired by replacement, 
     and such replacement can be up to current standards or code.
       Interior arrangements and restorations may be included as 
     repair, but additions, new facilities, and functional 
     conversions must be performed as military construction 
     projects.
       Such projects may be done concurrent with repair projects, 
     as long as the final conjunctively funded project is a 
     complete and usable facility.
       The appropriate Service Secretary shall notify the 
     appropriate Committees 21 days prior to carrying out any 
     repair project with an estimated cost in excess of 
     $7,500,000.
       The Department is directed to provide sustainment, 
     restoration, and modernization backlog at all installations 
     for which there is a requested construction project in future 
     budget requests. This information is to be provided on the 
     form 1390. In addition, for all troop housing requests, the 
     form 1391 is to show all sustainment, restoration, and 
     modernization conducted in the past two years and future 
     requirements for unaccompanied housing at the installation.
       Family Housing Operation and Maintenance: Financial 
     Management.--The conferees agree to continue the restriction 
     on the transfer of funds between the family housing operation 
     and maintenance accounts. The limitation is ten percent to 
     all primary accounts and subaccounts. Such transfers are to 
     be reported to the appropriate Committees within thirty days 
     of such action.
       Overseas Basing Master Plan.--The conferees support the 
     Senate direction for an overseas basing master plan, to be 
     submitted no later than April 1, 2002.
       Pennsylvania: Joint-use Facility.--The conferees are aware 
     of the need to renovate four Guard and Reserve facilities in 
     Northeastern Pennsylvania and the benefits of consolidating 
     them into a joint-use facility. Therefore, the conferees 
     encourage the Department to make this project a priority and 
     program the requirement in the Future Years Defense Plan.


                      military construction, army

                         (including rescission)

       The conference agreement appropriates $1,778,256,000 for 
     Military Construction, Army, instead of $1,739,334,000 as 
     proposed by the House, and $1,668,957,000 as proposed by the 
     Senate. Within this amount, the conference agreement earmarks 
     $163,198,000 for study, planning, design, architect and 
     engineer services, and host nation support instead of 
     $163,141,000 as proposed by the House and $176,184,000 as 
     proposed by the Senate. The conference agreement rescinds 
     $36,400,000 from funds appropriated for Military 
     Construction, Army under Public Law 106-52, as proposed by 
     the House, instead of $26,400,000 as proposed by the Senate.


                      military construction, navy

                         (including rescission)

       The conference agreement appropriates $1,144,221,000 for 
     Military Construction, Navy, instead of $1,154,248,000 as 
     proposed by the House, and $1,148,633,000 as proposed by the 
     Senate. Within this amount, the conference agreement earmarks 
     $34,152,000 for study, planning, design, architect and 
     engineer services instead of $30,972,000 as proposed by the 
     House and $37,332,000 as proposed by the Senate. The 
     conference agreement rescinds $19,588,000 from funds 
     appropriated for Military Construction, Navy under Public Law 
     106-246, as proposed by the House and Senate.
       Texas: Kingsville Naval Air Station: Airfield Lighting.--
     The conferees direct the Navy to accelerate design of this 
     project and to include the required construction funding in 
     the budget request for fiscal year 2003.


                    military construction, air force

                         (including rescission)

       The conference agreement appropriates $1,194,880,000 for 
     Military Construction, Air Force, instead of $1,185,220,000 
     as proposed by the House, and $1,148,269,000 as proposed by 
     the Senate. Within this amount, the conference agreement 
     earmarks $83,210,000 for study, planning, design, architect 
     and engineer services instead of $83,000,000 as proposed by 
     the House and $83,420,000 as proposed by the Senate. The 
     conference agreement rescinds $4,000,000 from funds 
     appropriated for Military Construction, Air Force under 
     previous Military Construction Appropriations Acts, as 
     proposed by the Senate.
       Nebraska--Offutt Air Force Base: Fire/Crash Rescue 
     Station.--The conferees direct the Air Force to accelerate 
     design of this project and to include the required 
     construction funding in the budget request for fiscal year 
     2003.
       Wyoming--F.E. Warren Air Force Base: Storm Water Drainage 
     System.--The fiscal year 2001 Senate Report 106-290 included 
     funding of $10,300,000 for a Storm Water Drainage System 
     Project at F.E. Warren Air Force Base in Wyoming. 
     Unfortunately, funding constraints prohibited final action. 
     Storm water flooding remains a major problem at F.E. Warren 
     Air Force Base. The project will better manage and divert 
     flood waters on the installation. In addition, the project 
     will greatly decrease the amount of storm water leaving the 
     base which significantly impacts on the surrounding 
     community. The conferees agree that this project addresses an 
     urgent, mission critical, and safety requirement, and the Air 
     Force is strongly encouraged to include this project in the 
     budget request for fiscal year 2003.
       Korea--Osan Air Base: Base Civil Engineer Complex.--The 
     conferees are concerned about the significant cost of 
     replacing current civil engineer facilities at Osan Air Base 
     as proposed in the fiscal year 2002 budget request. Although 
     the conferees support follow-on family housing projects 
     envisioned for Osan Air Base, they do not support funding for 
     a robust civil engineering complex without significant host 
     nation contribution. The conferees understand that the civil 
     engineers currently occupy land that will ultimately be used 
     to build family housing. Family housing is a direct quality 
     of life issue that will have a significant impact on the 
     airmen and the families assigned to the base. The conferees 
     agree to provide the Air Force $12,000,000 for the base civil 
     engineer project for site preparation and preliminary 
     utilities requirements. The conferees direct that any further 
     funding requirements related to this project be funded 
     through host nation support.


                  military construction, defense-wide

             (including transfer and rescissions of funds)

       The conference agreement appropriates $840,558,000 for 
     Military Construction, Defense-wide, instead of $863,058,000 
     as proposed by the House, and $881,058,000 as proposed by the 
     Senate. Within this amount, the conference agreement earmarks 
     $66,496,000 for study, planning, design, architect and 
     engineer services instead of $74,496,000 as proposed by the 
     House and $88,496,000 as proposed by the Senate. The 
     conference agreement rescinds $69,280,000 from funds 
     appropriated for Military Construction, Defense-wide under 
     Public Law 106-246 and previous Military Construction 
     Appropriations Acts, as proposed by the Senate, instead of 
     $10,250,000 as proposed by the House.
       Chemical Demilitarization: Defense Road Requirements.--The 
     conferees are concerned about the emergency preparedness 
     planning as part of the Chemical Demilitarization Program. Of 
     the funds made available in the ``Military Construction, 
     Defense-wide'' account, the Department may spend up to 
     $300,000 to conduct a feasibility study on the requirements 
     for defense roads at the chemical demilitarization sites in 
     the United States to support emergency preparedness 
     requirements.
       Energy Conservation and Improvement Program.--The conferees 
     agree to provide a total of $27,000,000 for this program. Of 
     these funds, the conferees direct that $6,000,000 be used to 
     conduct a service-wide assessment of renewable energy 
     alternatives at or near Department of Defense installations, 
     as described in detail in Senate Report 107-68.
       Measurement and Signature Intelligence Facilities.--The 
     conferees have agreed to drop Senate report language which 
     allocated $10,000,000 for the planning and design of two 
     Measurement and Signature Intelligence (MASINT) facilities.


               Military Construction, Army National Guard

       The conference agreement appropriates $405,565,000 for 
     Military Construction, Army National Guard, instead of 
     $313,348,000 as proposed by the House, and $378,549,000 as 
     proposed by the Senate.
       Arizona--Papago Park Military Reservation: Add/Alter 
     Readiness Center.--Although the conferees were unable to fund 
     this project due to funding constraints, the conferees 
     strongly urge the Army National Guard to include this project 
     in its fiscal year 2003 budget submission.
       Weapons of Mass Destruction--Civil Support Teams.--Of the 
     funds provided for unspecified minor construction within the 
     ``Military Construction, Army National Guard'' account, the 
     conferees direct that not less than

[[Page H6835]]

     $6,000,000 be made available to directly support the 
     completion of facilities for WMD/CST locations.


               Military Construction, Air National Guard

       The conference agreement appropriates $253,386,000 for 
     Military Construction, Air National Guard, instead of 
     $198,803,000 as proposed by the House, and $222,767,000 as 
     proposed by the Senate.
       Ohio--Mansfield Lahm Airport: Replace Vehicle Maintenance 
     Facility.--Although the conferees were unable to fund this 
     project due to funding constraints, the conferees strongly 
     urge the Air National Guard to include this project in its 
     fiscal year 2003 budget submission.


                  Military Construction, Army Reserve

       The conference agreement appropriates $167,019,000 for 
     Military Construction, Army Reserve, instead of $167,769,000 
     as proposed by the House, and $111,404,000 as proposed by the 
     Senate.


                  Military Construction, Naval Reserve

                         (Including Rescission)

       The conference agreement appropriates $53,201,000 for 
     Military Construction, Naval Reserve, instead of $62,351,000 
     as proposed by the House, and $33,641,000 as proposed by the 
     Senate. The conference agreement rescinds $925,000 from funds 
     appropriated for Military Construction, Naval Reserve under 
     Public Law 106-246, as proposed by the House and Senate.
       Texas--Fort Worth Joint Reserve Base: Compartmented 
     Intelligence Facility.--In Senate Report 107-68, the 
     compartmented intelligence facility at Fort Worth Joint 
     Reserve Base was incorrectly identified as a Navy project. 
     This project should be executed with funds made available for 
     unspecified minor construction in the ``Military 
     Construction, Naval Reserve'' account.


                Military Construction, Air Force Reserve

       The conference agreement appropriates $74,857,000 for 
     Military Construction, Air Force Reserve, instead of 
     $81,882,000 as proposed by the House, and $53,732,000 as 
     proposed by the Senate.
       Michigan--Selfridge Air National Guard Base: Alter Command 
     Post/Logistics Base.--In Senate Report 107-68, the alter 
     command post/logistics base project at Selfridge Air National 
     Guard Base was incorrectly identified as an Air National 
     Guard project. This project should be executed with funds 
     made available for unspecified minor construction in the 
     ``Military Construction, Air Force Reserve'' account.


     North Atlantic Treaty Organization Security Investment Program

       The conference agreement appropriates $162,600,000 for the 
     North Atlantic Treaty Organization Security Investment 
     Program (NSIP), as proposed by the House and Senate.


                   family housing construction, army

         The conference agreement appropriates $312,742,000 for 
     Family Housing Construction, Army, as proposed by the Senate, 
     instead of $294,042,000 as proposed by the House.


             family housing operation and maintenance, army

         The conference agreement appropriates $1,089,573,000 for 
     Family Housing Operation and Maintenance, Army, instead of 
     $1,096,431,000 as proposed by the House and $1,108,991,000 as 
     proposed by the Senate.
       District of Columbia-Fort McNair: General Officer 
     Quarters.--The Army has requested it be allowed to substitute 
     the renovation of Quarters 7 at Fort McNair, at a cost of 
     $700,000, in place of Quarters 3, as submitted in its budget 
     request for $1,200,000. The conferees agree with this 
     substitution. The conferees are encouraged by the Army's 
     study being performed by the National Association of 
     Homebuilders to refine and reduce the original cost 
     projections for Fort McNair's quarters, which appear too 
     high. The conferees expect the Army to use the most 
     economical and cost-effective approach toward renovating 
     these historic quarters.


           Family Housing Construction, Navy and Marine Corps

       The conference agreement appropriates $331,780,000 for 
     Family Housing Construction, Navy and Marine Corps, instead 
     of $334,780,000 as proposed by the House and $312,600,000 as 
     proposed by the Senate.
         The conferees direct that the following projects are to 
     be accomplished within the increased amount provided for 
     construction improvements:

District of Columbia: 8th and I Marine Barracks (2 units)....$1,600,000
Hawaii: Barking Sands (69 units).............................11,840,000
Massachusetts: Westover Air Reserve Base (124 units)..........6,940,000

    Family Housing Operation and Maintenance, Navy and Marine Corps

       The conference agreement appropriates $910,095,000 for 
     Family Housing Operation and Maintenance, Navy and Marine 
     Corps, as proposed by the House, instead of $918,095,000 as 
     proposed by the Senate.


                 Family Housing Construction, Air Force

       The conference agreement appropriates $550,703,000 for 
     Family Housing Construction, Air Force, as proposed by the 
     Senate, instead of $536,237,000 as proposed by the House.
         The conferees direct that the following projects are to 
     be accomplished within the increased amount provided for 
     construction improvements:

Missouri: Whiteman AFB (164 units)..........................$17,966,000
South Carolina: Charleston AFB (32 units).....................4,500,000

          Family Housing Operation and Maintenance, Air Force

       The conference agreement appropriates $844,715,000 for 
     Family Housing Operation and Maintenance, Air Force, instead 
     of $858,121,000 as proposed by the House and $869,121,000 as 
     proposed by the Senate.


                      Family Housing, Defense-wide

       The conference agreement appropriates $44,012,000 for 
     Family Housing, Defense-wide, as proposed by the House and 
     Senate.


         Department of Defense Family Housing Improvement Fund

       The conference agreement provides $2,000,000 for the 
     Department of Defense Family Housing Improvement Fund, as 
     proposed by the House and Senate. Transfer authority is 
     provided for the execution of any qualifying project under 
     privatization authority, which resides in the Fund.
       Housing Privatization Support Costs.--The conferees are 
     extremely concerned about the costs of consultants hired to 
     assist the services with the housing privatization 
     initiative. For example, the Army requested $27,918,000 and 
     the Air Force requested $35,402,000 to pay for consultants. 
     Costs of this magnitude are exorbitant, especially as neither 
     the Army nor Air Force has made sufficient progress in 
     privatizing its housing inventory. Therefore, the conferees 
     agree to reduce $7,918,000 from the ``Family Housing 
     Operation and Maintenance, Army'' account, and $13,402,000 
     from the ``Family Housing Operation and Maintenance, Air 
     Force'' account. Furthermore, the conferees remind the 
     services that these funds should be spent on creating, 
     analyzing and negotiating complex real estate transactions-
     not on public relations or work that can be done by the 
     services' staff.


                  Homeowners Assistance Fund, Defense

       The conference agreement appropriates $10,119,000 for the 
     Homeowners Assistance Fund, Defense, as proposed by the House 
     and Senate.


                  Base Realignment and Closure Account

       The conference agreement appropriates $632,713,000 for the 
     Base Realignment and Closure Account, instead of $552,713,000 
     as proposed by the House and $682,200,000 as proposed by the 
     Senate.
       Environmental Remediation Shortfalls.--The conferees have 
     included a general provision (Section 131) directing the 
     Department of Defense to accurately reflect the cost of 
     environmental remediation activities in its future budget 
     submissions for Base Realignment and Closure (BRAC) funding. 
     The conferees note that the Navy and Air Force BRAC budget 
     requests for fiscal year 2002 were far below the level of 
     funding needed to meet urgent obligations.
         The conferees have agreed to provide and fully offset 
     $100,513,000 over the budget request to fund environmental 
     remediation funding shortfalls in the Navy and Air Force BRAC 
     accounts. The conference provision includes $80,513,000 
     for the Navy and $20,000,000 for the Air Force. The 
     conferees note that the funding shortfalls are the result 
     of inadequate programming and budgeting decisions on the 
     part of the Navy and Air Force.
         The conferees strongly believe that the Navy and Air 
     Force should bear the burden of making up these shortfalls. 
     Therefore, the funding to cover the BRAC environmental 
     remediation shortfalls is derived from the following sources: 
     a rescission of $19,588,000 from previously appropriated Navy 
     planning and design funds, a rescission of $925,000 from 
     previously appropriated Naval Reserve planning and design 
     funds, a $60,000,000 general reduction in the fiscal year 
     2002 ``Military Construction, Navy'' account, and a 
     $20,000,000 general reduction in the fiscal year 2002 
     ``Military Construction, Air Force'' account. The conferees 
     direct that no item of congressional interest may be canceled 
     or delayed as a result of these general reductions.
         In addition to the funds provided in this Act, the Navy 
     and Air Force are directed to allocate all unobligated 
     balances from previously appropriated BRAC funds to address 
     their fiscal year 2002 BRAC environmental remediation funding 
     shortfall. The conferees direct the services to program and 
     budget for the entire amount of their annual BRAC 
     environmental remediation obligations in future years, 
     beginning with fiscal year 2003. Failure to do so will force 
     the congressional committees to take proportionate reductions 
     in specific military construction projects or programs 
     requested by the services.


                           General Provisions

         The conference agreement includes general provisions 
     (Sections 101-120) that were not amended by either the House 
     or Senate in their versions of the bill.
         The conference agreement includes a provision, Section 
     121, as proposed by the House, which prohibits the 
     expenditure of funds except in compliance with the Buy 
     American Act. The Senate bill contained no similar provision.
         The conference agreement includes a provision, Section 
     122, as proposed by the House, which states the Sense of the 
     Congress that recipients of equipment or products authorized 
     to be purchased with financial assistance provided in this 
     Act are to be

[[Page H6836]]

     notified that they must purchase American-made equipment and 
     products. The Senate bill contained no similar provision.
         The conference agreement includes a provision, Section 
     123, as proposed by the House and Senate, permitting the 
     transfer of funds from Family Housing, Construction accounts 
     to the DOD Family Housing Improvement Fund.
         The conference agreement includes a provision renumbered 
     Section 124, as proposed by the House and the Senate, to 
     prohibit the use of funds in this Act to be obligated for 
     Partnership for Peace programs in the New Independent States 
     of the former Soviet Union.
         The conference agreement includes a provision renumbered 
     Section 125, as proposed by the House and the Senate, which 
     requires the Secretary of Defense to notify Congressional 
     Committees sixty days prior to issuing a solicitation for a 
     contract with the private sector for military family housing.
         The conference agreement includes a provision renumbered 
     Section 126, as proposed by the House and the Senate, which 
     provides transfer authority to the Homeowners Assistance 
     Program.
         The conference agreement includes a provision renumbered 
     Section 127, as proposed by the Senate, regarding funding for 
     operation and maintenance of general officer quarters.
         The conference agreement includes a provision renumbered 
     Section 128, as proposed by the Senate, which authorizes 
     $8,000,000 for a military construction project at Masirah 
     Island Airfield, Oman. The House bill contained a similar 
     provision.
         The conference agreement includes a provision, Section 
     129, as proposed by the Senate, which requires the Secretary 
     of Defense to submit a master plan for the environmental 
     remediation of Hunters Point Naval Shipyard, California. The 
     House bill contained no similar provision.
         The conference agreement includes a provision, Section 
     130, which rescinds $60,000,000 from the ``Foreign Currency 
     Fluctuations, Construction, Defense'' account.
         The conference agreement includes a provision, Section 
     131, which directs the Department of Defense to accurately 
     reflect the cost of environmental restoration activities in 
     its future budget submissions for the Base Realignment and 
     Closure (BRAC) account.
         The conference agreement includes a provision, Section 
     132, which reduces all accounts in the bill with the 
     exception of the ``NATO Security Investment Program'' account 
     and the ``Base Realignment and Closure'' account by 1.127 
     percent.
         Those general provisions not included in the conference 
     agreement are as follows:
         The conference agreement deletes the House provision 
     regarding family housing master plans.
         The conference agreement deletes the Senate provision 
     regarding a defense road feasibility study at Pine Bluff 
     Arsenal, Arkansas.

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[[Page H6872]]

                   CONFERENCE TOTAL--WITH COMPARISONS

       The total new budget (obligational) authority for the 
     fiscal year 2002 recommended by the Committee of Conference, 
     with comparisons to the fiscal year 2001 amount, the 2002 
     budget estimates, and the House and Senate bills for 2002 
     follows:

                       [In thousands of dollars]

New budget (obligational) authority, fiscal year 2001........$8,936,498
Budget estimates of new (obligational) authority, fiscal year 9,971,312
House bill, fiscal year 2002.................................10,500,000
Senate bill, fiscal year 2002................................10,500,000
Conference agreement, fiscal year 2002.......................10,500,000
Conference agreement compared with:
  New budget (obligational) authority, fiscal year 2001......+1,563,502
  Budget estimates of new (obligational) authority, fiscal year+528,688
  House bill, fiscal year 2002.........................................
  Senate bill, fiscal year 2002........................................

     David L. Hobson,
     James T. Walsh,
     Dan Miller,
     Robert B. Aderholt,
     Kay Granger,
     Virgil Goode, Jr.,
     Joe Skeen,
     David Vitter,
     Bill Young,
     John W. Olver,
     Chet Edwards,
     Sam Farr,
     Allen Boyd,
     Norman Dicks,
     David Obey,
                                Managers on the Part of the House.

     Dianne Feinstein,
     Daniel K. Inouye,
     Tim Johnson,
     Mary Landrieu,
     Harry Reid,
     Robert C. Byrd,
     Kay Bailey Hutchison,
     Conrad Burns,
     Larry E. Craig,
     Mike DeWine,
     Ted Stevens,
     Managers on the Part of the Senate.

                          ____________________