[Congressional Record Volume 148, Number 145 (Tuesday, November 12, 2002)]
[House]
[Pages H8092-H8535]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




      CONFERENCE REPORT ON H.R. 4546, BOB STUMP NATIONAL DEFENSE 
                 AUTHORIZATION ACT FOR FISCAL YEAR 2003

  Mr. HUNTER submitted the following conference report and statement on 
the bill (H.R. 4546) 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:

                  Conference Report (H. Rept. 107-772)

  The committee of conference on the disagreeing votes of the two 
Houses on the amendment of the House to the amendment of the Senate to 
the bill (H.R. 4546), 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, having met, after full and free 
conference, have agreed to recommend and do recommend to their 
respective Houses as follows:
  That the Senate recede from its disagreement to the amendment of the 
House and agree to the same with an amendment as follows:

       In lieu of the matter proposed to be inserted by the House 
     amendment, insert the following:

     SECTION 1. SHORT TITLE; FINDINGS.

       (a) Short Title.--This Act may be cited as the ``Bob Stump 
     National Defense Authorization Act for Fiscal Year 2003''.

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       (b) Findings.--Congress makes the following findings:
       (1) Representative Bob Stump of Arizona was elected to the 
     House of Representatives in 1976 for service in the 95th 
     Congress, after serving in the Arizona legislature for 18 
     years and serving as President of the Arizona State Senate 
     from 1975 to 1976, and he has been reelected to each 
     subsequent Congress.
       (2) A World War II combat veteran, Representative Stump 
     entered service in the United States Navy in 1943, just after 
     his 16th birthday, and served aboard the USS LUNGA POINT and 
     the USS TULAGI, which participated in the invasions of Luzon, 
     Iwo Jima, and Okinawa.
       (3) Representative Stump was elected to the Committee on 
     Armed Services in 1978 and has served on nearly all of its 
     subcommittees and panels during 25 years of distinguished 
     service on the committee. He has served as chairman of the 
     committee during the 107th Congress and has championed United 
     States national security as the paramount function of the 
     Federal Government.
       (4) Also serving on the Committee on Veterans' Affairs of 
     the House of Representatives, chairing that committee from 
     1995 to 2000, and serving on the Permanent Select Committee 
     on Intelligence of the House of Representatives, including 
     service as the ranking minority member in 1985 and 1986, 
     Representative Stump has dedicated his entire congressional 
     career to steadfastly supporting America's courageous men and 
     women in uniform both on and off the battlefield.
       (5) Representative Stump's tireless efforts on behalf of 
     those in the military and veterans have been recognized with 
     numerous awards for outstanding service from active duty and 
     reserve military, veterans' service, military retiree, and 
     industry organizations.
       (6) During his tenure as chairman of the Committee on Armed 
     Services of the House of Representatives, Representative 
     Stump has--
       (A) overseen the largest sustained increase to defense 
     spending since the Reagan administration;
       (B) led efforts to improve the quality of military life, 
     including passage of the largest military pay raise since 
     1982;
       (C) supported military retirees, including efforts to 
     reverse concurrent receipt law and to save the Armed Forces 
     Retirement Homes;
       (D) championed military readiness by defending military 
     access to critical training facilities such Vieques, Puerto 
     Rico, expanding the National Training Center at Ft. Irwin, 
     California, and working to restore balance between 
     environmental concerns and military readiness requirements;
       (E) reinvigorated efforts to defend America against 
     ballistic missiles by supporting an increase in fiscal year 
     2002 of nearly 50 percent above the fiscal year 2001 level 
     for missile defense programs; and
       (F) honored America's war heroes by expanding Arlington 
     National Cemetery, establishing a site for the Air Force 
     Memorial, and assuring construction of the World War II 
     Memorial.
       (7) In recognition of his long record of accomplishments in 
     enhancing the national security of the United States and his 
     legislative victories on behalf of active duty service 
     members, reservists, guardsmen, and veterans, it is 
     altogether fitting and proper that this Act be named in honor 
     of Representative Bob Stump of Arizona, as provided in 
     subsection (a).

     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; findings.
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. 
Sec. 112. Report on impact of Army aviation modernization plan on the 
              Army National Guard.
Sec. 113. Family of Medium Tactical Vehicles.

                       Subtitle C--Navy Programs

Sec. 121. Extension of multiyear procurement authority for DDG-51 class 
              destroyers.
Sec. 122. Sense of Congress on scope of conversion program for 
              Ticonderoga-class cruisers.
Sec. 123. Continuation of contract for operation of Champion-class T-5 
              fuel tanker vessels.

                     Subtitle D--Air Force Programs

Sec. 131. Multiyear procurement authority for C-130J aircraft program.
Sec. 132. Pathfinder programs.
Sec. 133. Leases for tanker aircraft under multiyear aircraft-lease 
              pilot program.

                       Subtitle E--Other Programs

Sec. 141. Destruction of existing stockpile of lethal chemical agents 
              and munitions.
Sec. 142. Report on unmanned aerial vehicle systems.
Sec. 143. Global Information Grid system.

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

              Subtitle A--Authorization of Appropriations

Sec. 201. Authorization of appropriations.
Sec. 202. Amount for defense science and technology.
Sec. 203. Defense health programs.

    Subtitle B--Program Requirements, Restrictions, and Limitations

Sec. 211. RAH-66 Comanche aircraft program.
Sec. 212. Extension of requirements relating to management 
              responsibility for naval mine countermeasures programs.
Sec. 213. Revised requirements for plan for Manufacturing Technology 
              Program.
Sec. 214. Advanced SEAL Delivery System.
Sec. 215. Army experimentation program regarding design of the 
              objective force.
Sec. 216. Program to provide Army with self-propelled Future Combat 
              Systems non-line-of-sight cannon indirect fire capability 
              for the objective force.
Sec. 217. Prohibition on transfer of Medical Free Electron Laser 
              program.
Sec. 218. Littoral combat ship program.

                 Subtitle C--Ballistic Missile Defense

Sec. 221. Report requirements relating to ballistic missile defense 
              programs.
Sec. 222. Responsibility of Missile Defense Agency for research, 
              development, test, and evaluation related to system 
              improvements of programs transferred to military 
              departments.
Sec. 223. Limitation on obligation of funds for Theater High Altitude 
              Area Defense Program pending submission of required life-
              cycle cost information.
Sec. 224. Provision of information on flight testing of Ground-based 
              Midcourse National Missile Defense system.
Sec. 225. References to new name for Ballistic Missile Defense 
              Organization.
Sec. 226. One-year limitation on use of funds for nuclear armed 
              interceptors.

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

Sec. 231. Department of Defense Test Resource Management Center.
Sec. 232. Objective for institutional funding of test and evaluation 
              facilities.
Sec. 233. Uniform financial management system for Department of Defense 
              test and evaluation facilities.
Sec. 234. Test and evaluation workforce improvements.
Sec. 235. Compliance with testing requirements.

                       Subtitle E--Other Matters

Sec. 241. Pilot programs for revitalizing Department of Defense 
              laboratories.
Sec. 242. Technology Transition Initiative.
Sec. 243. Defense Acquisition Challenge Program.
Sec. 244. Encouragement of small businesses and nontraditional defense 
              contractors to submit proposals potentially beneficial 
              for combating terrorism.
Sec. 245. Vehicle fuel cell program.
Sec. 246. Defense nanotechnology research and development program.
Sec. 247. Activities of the Defense Experimental Program to Stimulate 
              Competitive Research.
Sec. 248. Four-year extension of authority of DARPA to award prizes for 
              advanced technology achievements and additional authority 
              of military departments and Defense Agencies to award 
              prizes for achievements in promoting education.
Sec. 249. Plan for five-year program for enhancement of measurement and 
              signatures intelligence capabilities of the United States 
              through incorporation of results of basic research on 
              sensors.

                  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. Grant to National Guard Youth Foundation.

                  Subtitle B--Environmental Provisions

Sec. 311. Enhancement of authority on cooperative agreements for 
              environmental purposes.
Sec. 312. Single point of contact for policy and budgeting issues 
              regarding unexploded ordnance, discarded military 
              munitions, and munitions constituents.
Sec. 313. Authority to carry out construction projects for 
              environmental responses.

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Sec. 314. Procurement of environmentally preferable procurement items.
Sec. 315. Incidental taking of migratory birds during military 
              readiness activities.

  Subtitle C--Commissaries and Nonappropriated Fund Instrumentalities

Sec. 321. Authority for each military department to provide base 
              operating support to Fisher Houses.
Sec. 322. Use of commissary stores and MWR retail facilities by members 
              of National Guard serving in national emergency.
Sec. 323. Uniform funding and management of morale, welfare, and 
              recreation programs.
Sec. 324. Rebate agreements under the special supplemental food 
              program.

                 Subtitle D--Workplace and Depot Issues

Sec. 331. Notification requirements in connection with required studies 
              for conversion of commercial or industrial type functions 
              to contractor performance.
Sec. 332. Temporary authority for contractor performance of security-
              guard functions to meet increased requirements since 
              September 11, 2001.
Sec. 333. Repeal of obsolete provision regarding depot-level 
              maintenance and repair workloads that were performed at 
              closed or realigned military installations.
Sec. 334. Exclusion of certain expenditures from limitation on private 
              sector performance of depot-level maintenance.

                Subtitle E--Defense Dependents Education

Sec. 341. Assistance to local educational agencies that benefit 
              dependents of members of the Armed Forces and Department 
              of Defense civilian employees.
Sec. 342. Housing benefits for unaccompanied teachers required to live 
              at Guantanamo Bay Naval Station, Cuba.
Sec. 343. Options for funding dependent summer school programs.
Sec. 344. Impact aid eligibility for local educational agencies 
              affected by privatization of military housing.
Sec. 345. Comptroller General study of adequacy of compensation 
              provided for teachers in the Department of Defense 
              Overseas Dependents' Schools.

                   Subtitle F--Information Technology

Sec. 351. Annual submission of information regarding information 
              technology capital assets.
Sec. 352. Policy regarding acquisition of information assurance and 
              information assurance-enabled information technology 
              products.
Sec. 353. Installation and connection policy and procedures regarding 
              Defense Switch Network.

                       Subtitle G--Other Matters

Sec. 361. Distribution of monthly reports on allocation of funds within 
              operation and maintenance budget subactivities.
Sec. 362. Continuation of arsenal support program initiative.
Sec. 363. Extension of work safety demonstration program.
Sec. 364. Condition on authority of Defense Security Service to impose 
              fees on fee-for-service basis.
Sec. 365. Logistics support and services for weapon systems 
              contractors.
Sec. 366. Training range sustainment plan, Global Status of Resources 
              and Training System, and training range inventory.
Sec. 367. Engineering study and environmental analysis of road 
              modifications in vicinity of Fort Belvoir, Virginia.
Sec. 368. Reauthorization of warranty claims recovery pilot program.
Sec. 369. Expanded eligibility for loan, gift, or exchange of 
              documents, historical artifacts, and condemned or 
              obsolete combat materiel.

              TITLE IV--MILITARY PERSONNEL AUTHORIZATIONS

                       Subtitle A--Active Forces

Sec. 401. End strengths for active forces.
Sec. 402. Revision in permanent end strength minimum levels.
Sec. 403. Expanded authority for administrative increases in statutory 
              active-duty end strengths.
Sec. 404. General and flag officer management.
Sec. 405. Extension of certain authorities relating to management of 
              numbers of general and flag officers in certain grades.
Sec. 406. 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 limitation 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 good-of-the-service waiver authority for 
              officers appointed to a Reserve Chief or Guard Director 
              position.
Sec. 502. Exclusion of certain officers from limitation on authority to 
              grant a waiver of required completion or sequencing for 
              joint professional military education.
Sec. 503. Extension and codification of authority for recall of retired 
              aviators to active duty.
Sec. 504. Grades for certain positions.
Sec. 505. Reinstatement of authority to reduce three-year time-in-grade 
              requirement for retirement in grade for officers in 
              grades above major and lieutenant commander.
Sec. 506. Authority to require that an officer take leave pending 
              review of a recommendation for removal by a board of 
              inquiry.

                Subtitle B--Reserve Component Management

Sec. 511. Reviews of National Guard strength accounting and management 
              and other issues.
Sec. 512. Courts-martial for the National Guard when not in Federal 
              service.
Sec. 513. Fiscal year 2003 funding for military personnel costs of 
              reserve component Special Operations Forces personnel 
              engaged in humanitarian assistance activities relating to 
              clearing of landmines.
Sec. 514. Use of Reserves to perform duties relating to defense against 
              terrorism.
Sec. 515. Repeal of prohibition on use of Air Force Reserve AGR 
              personnel for Air Force base security functions.

         Subtitle C--Reserve Component Officer Personnel Policy

Sec. 521. Eligibility for consideration for promotion to grade of major 
              general for certain reserve component brigadier generals 
              who do not otherwise qualify for consideration for 
              promotion under the one-year rule.
Sec. 522. Authority for limited extension of medical deferment of 
              mandatory retirement or separation of reserve component 
              officers.

        Subtitle D--Enlistment, Education, and Training Programs

Sec. 531. Enlistment incentives for pursuit of skills to facilitate 
              national service.
Sec. 532. Authority for phased increase to 4,400 in authorized 
              strengths for the service academies.
Sec. 533. Enhancement of reserve component delayed training program.
Sec. 534. Review of Armed Forces programs for preparation for, 
              participation in, and conduct of athletic competitions.
Sec. 535. Repeal of bar to eligibility of Army College First program 
              participants for benefits under student loan repayment 
              program.

           Subtitle E--Decorations, Awards, and Commendations

Sec. 541. Waiver of time limitations for award of Army Distinguished-
              Service Cross to certain persons.
Sec. 542. Option to convert award of Armed Forces Expeditionary Medal 
              awarded for Operation Frequent Wind to Vietnam Service 
              Medal.
Sec. 543. Korea Defense Service Medal.
Sec. 544. Commendation of military chaplains.

                   Subtitle F--Administrative Matters

Sec. 551. Staffing and funding for Defense Prisoner of War/Missing 
              Personnel Office.
Sec. 552. Three-year freeze on reductions of personnel of agencies 
              responsible for review and correction of military 
              records.
Sec. 553. Authority for acceptance of voluntary services of individuals 
              as proctors for administration of Armed Services 
              Vocational Aptitude Battery test.
Sec. 554. Extension of temporary early retirement authority.

   Subtitle G--Matters Relating to Minorities and Women in the Armed 
                                 Forces

Sec. 561. Surveys of racial and ethnic issues and of gender issues in 
              the Armed Forces.
Sec. 562. Annual report on status of female members of the Armed 
              Forces.
Sec. 563. Wear of abayas by female members of the Armed Forces in Saudi 
              Arabia.

                          Subtitle H--Benefits

Sec. 571. Department of Defense support for persons participating in 
              military funeral honors details.
Sec. 572. Emergency leave of absence program.
Sec. 573. Enhanced flexibility in medical loan repayment program.
Sec. 574. Destinations authorized for Government paid transportation of 
              enlisted personnel for rest and recuperation absence upon 
              extending duty at designated locations overseas.
Sec. 575. Vehicle storage in lieu of transportation when member is 
              ordered to a nonforeign duty station outside continental 
              United States.

                          Subtitle I--Reports

Sec. 581. Quadrennial quality of life review.

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Sec. 582. Report on desirability and feasibility of consolidating 
              separate courses of basic instruction for judge 
              advocates.
Sec. 583. Reports on efforts to resolve status of Captain Michael Scott 
              Speicher, United States Navy.
Sec. 584. Report on volunteer services of members of the reserve 
              components in emergency response to the terrorist attacks 
              of September 11, 2001.

          TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS

                     Subtitle A--Pay and Allowances

Sec. 601. Increase in basic pay for fiscal year 2003.
Sec. 602. Basic allowance for housing in cases of low-cost or no-cost 
              moves.
Sec. 603. Rate of basic allowance for subsistence for enlisted 
              personnel occupying single Government quarters without 
              adequate availability of meals.

           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. Increase in maximum rates for certain special pays, bonuses, 
              and financial assistance for health care professionals.
Sec. 616. Assignment incentive pay.
Sec. 617. Increase in maximum rates for prior service enlistment bonus.
Sec. 618. Retention incentives for health care professionals qualified 
              in a critical military skill.

            Subtitle C--Travel and Transportation Allowances

Sec. 621. Extension of leave travel deferral period for members 
              performing consecutive overseas tours of duty.
Sec. 622. Transportation of motor vehicles for members reported 
              missing.

             Subtitle D--Retired Pay and Survivor Benefits

Sec. 631. Permanent reduction from eight to six in number of years of 
              reserve service required for eligibility for retired pay 
              for non-regular service.
Sec. 632. Increased retired pay for enlisted Reserves credited with 
              extraordinary heroism.
Sec. 633. Elimination of possible inversion in retired pay cost-of-
              living adjustment for initial COLA computation.
Sec. 634. Technical revisions to so-called ``forgotten widows'' annuity 
              program.
Sec. 635. Expansion of authority of Secretary of Defense to waive time 
              limitations on claims against the Government for military 
              personnel benefits.
Sec. 636. Special compensation for certain combat-related disabled 
              uniformed services retirees.

                     Subtitle E--Montgomery GI Bill

Sec. 641. Time limitation for use of Montgomery GI Bill entitlement by 
              members of the Selected Reserve.
Sec. 642. Repayment requirements under Reserve Component Montgomery GI 
              Bill arising from failure to participate satisfactorily 
              in military service to be considered debts owed to the 
              United States.
Sec. 643. Technical adjustments to authority for certain members to 
              transfer educational assistance under Montgomery GI Bill 
              to dependents.

                       Subtitle F--Other Matters

Sec. 651. Payment of interest on student loans.
Sec. 652. Additional authority to provide assistance for families of 
              members of the Armed Forces.
Sec. 653. Repeal of authority for acceptance of honoraria by personnel 
              at certain Department of Defense schools.
Sec. 654. Addition of definition of continental United States in title 
              37.

                   TITLE VII--HEALTH CARE PROVISIONS

              Subtitle A--Health Care Program Improvements

Sec. 701. Elimination of requirement for TRICARE preauthorization of 
              inpatient mental health care for medicare-eligible 
              beneficiaries.
Sec. 702. Continued TRICARE eligibility of dependents residing at 
              remote locations after departure of sponsors for 
              unaccompanied assignments and eligibility of dependents 
              of reserve component members ordered to active duty.
Sec. 703. Eligibility of surviving dependents for TRICARE dental 
              program benefits after discontinuance of former 
              enrollment.
Sec. 704. Department of Defense Medicare-Eligible Retiree Health Care 
              Fund.
Sec. 705. Approval of medicare providers as TRICARE providers.
Sec. 706. Technical corrections relating to transitional health care 
              for members separated from active duty.
Sec. 707. Extension of temporary authority to enter into personal 
              services contracts for the performance of health care 
              responsibilities at locations other than military medical 
              treatment facilities.
Sec. 708. Access to health care services for beneficiaries eligible for 
              TRICARE and Department of Veterans Affairs health care.
Sec. 709. Disclosure of information on Project 112 to Department of 
              Veterans Affairs.

                          Subtitle B--Reports

Sec. 711. Claims information.
Sec. 712. Comptroller General report on provision of care under the 
              TRICARE program.
Sec. 713. Repeal of report requirement.

Subtitle C--Department of Defense-Department of Veterans Affairs Health 
                           Resources Sharing

Sec. 721. Revised coordination and sharing guidelines.
Sec. 722. Health care resources sharing and coordination project.
Sec. 723. Report on improved coordination and sharing of health care 
              and health care resources following domestic acts of 
              terrorism or domestic use of weapons of mass destruction.
Sec. 724. Interoperability of Department of Veterans Affairs and 
              Department of Defense pharmacy data systems.
Sec. 725. Joint pilot program for providing graduate medical education 
              and training for physicians.
Sec. 726. Repeal of certain limits on Department of Veterans Affairs 
              resources.

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

             Subtitle A--Acquisition Policy and Management

Sec. 801. Buy-to-budget acquisition of end items.
Sec. 802. Report to Congress on evolutionary acquisition of major 
              defense acquisition programs.
Sec. 803. Spiral development under major defense acquisition programs.
Sec. 804. Improvement of software acquisition processes.
Sec. 805. Performance goals for procuring services pursuant to multiple 
              award contracts.
Sec. 806. Rapid acquisition and deployment procedures.
Sec. 807. Quick-reaction special projects acquisition team.

Subtitle B--Amendments to General Contracting Authorities, Procedures, 
                            and Limitations

Sec. 811. Limitation period for task and delivery order contracts.
Sec. 812. One-year extension of program applying simplified procedures 
              to certain commercial items; report.
Sec. 813. Extension and improvement of personnel demonstration policies 
              and procedures applicable to the civilian acquisition 
              workforce.
Sec. 814. Past performance given significant weight in renewal of 
              procurement technical assistance cooperative agreements.
Sec. 815. Increased maximum amount of assistance for tribal 
              organizations or economic enterprises carrying out 
              procurement technical assistance programs in two or more 
              service areas.
Sec. 816. Extension of contract goal for small disadvantaged businesses 
              and certain institutions of higher education.
Sec. 817. Grants of exceptions to cost or pricing data certification 
              requirements and waivers of cost accounting standards.
Sec. 818. Timing of certification in connection with waiver of 
              survivability and lethality testing requirements.
Sec. 819. Contracting with Federal Prison Industries.
Sec. 820. Revisions to multiyear contracting authority.

       Subtitle C--Acquisition-Related Reports and Other Matters

Sec. 821. Evaluation of training, knowledge, and resources regarding 
              negotiation of intellectual property arrangements.
Sec. 822. Independent technology readiness assessments.
Sec. 823. Extension and amendment of requirement for annual report on 
              defense commercial pricing management improvement.
Sec. 824. Assessment of purchases of products and services through 
              contracts with other Federal departments and agencies.
Sec. 825. Repeal of certain requirements and Comptroller General 
              reviews of the requirements.
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. Report on effects of Army Contracting Agency.
Sec. 829. Authorization to take actions to correct the industrial 
              resource shortfall for radiation-hardened electronics.

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      TITLE IX--DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT

   Subtitle A--Duties and Functions of Department of Defense Officers

Sec. 901. Under Secretary of Defense for Intelligence.
Sec. 902. Reorganization of Office of Secretary of Defense for 
              administration of duties relating to homeland defense and 
              combating terrorism.

                      Subtitle B--Space Activities

Sec. 911. Oversight of acquisition for defense space programs.
Sec. 912. Report regarding assured access to space for the United 
              States.

                          Subtitle C--Reports

Sec. 921. Report on establishment of United States Northern Command.
Sec. 922. Time for submittal of report on Quadrennial Defense Review.
Sec. 923. National defense mission of Coast Guard to be included in 
              future Quadrennial Defense Reviews.
Sec. 924. Report on establishment of a Joint National Training Complex 
              and joint opposing forces.

                       Subtitle D--Other Matters

Sec. 931. Authority to accept gifts for National Defense University.
Sec. 932. Western Hemisphere Institute for Security Cooperation.
Sec. 933. Conforming amendment to reflect disestablishment of 
              Department of Defense Consequence Management Program 
              Integration Office.
Sec. 934. Increase in number of Deputy Commandants of the Marine Corps.

                      TITLE X--GENERAL PROVISIONS

                     Subtitle A--Financial Matters

Sec. 1001. Transfer authority.
Sec. 1002. Authorization of supplemental appropriations for fiscal year 
              2002.
Sec. 1003. United States contribution to NATO common-funded budgets in 
              fiscal year 2003.
Sec. 1004. Development and implementation of financial management 
              enterprise architecture.
Sec. 1005. Accountable officials in the Department of Defense.
Sec. 1006. Uniform standards throughout Department of Defense for 
              exposure of personnel to pecuniary liability for loss of 
              Government property.
Sec. 1007. Improvements in purchase card management.
Sec. 1008. Improvements in travel card management.
Sec. 1009. Clearance of certain transactions recorded in Treasury 
              suspense accounts and resolution of certain check 
              issuance discrepancies.
Sec. 1010. Authorization of funds for ballistic missile defense 
              programs or combating terrorism programs of the 
              Department of Defense.
Sec. 1011. Reduction in overall authorization due to inflation savings.

                Subtitle B--Naval Vessels and Shipyards

Sec. 1021. Number of Navy combatant surface vessels in active and 
              reserve service.
Sec. 1022. Annual long-range plan for the construction of naval 
              vessels.
Sec. 1023. Assessment of the feasibility of the expedited equipping of 
              a Navy ship with a version of the 155-millimeter Advanced 
              Gun System.
Sec. 1024. Report on initiatives to increase operational days of Navy 
              ships.
Sec. 1025. Ship combat system industrial base.
Sec. 1026. Sense of Congress concerning aircraft carrier force 
              structure.
Sec. 1027. Conveyance, Navy drydock, Portland, Oregon.

                     Subtitle C--Strategic Matters

Sec. 1031. Strategic force structure plan for nuclear weapons and 
              delivery systems.
Sec. 1032. Annual report on weapons to defeat hardened and deeply 
              buried targets.
Sec. 1033. Report on effects of nuclear earth-penetrator weapon and 
              other weapons.

                          Subtitle D--Reports

Sec. 1041. Repeal and modification of various reporting requirements 
              applicable to the Department of Defense.
Sec. 1042. Requirement that Department of Defense reports to Congress 
              be accompanied by electronic version.
Sec. 1043. Annual report on the conduct of military operations 
              conducted as part of Operation Enduring Freedom.
Sec. 1044. Report on efforts to ensure adequacy of fire fighting staffs 
              at military installations.
Sec. 1045. Report on designation of certain Louisiana highway as 
              Defense Access Road.

             Subtitle E--Extension of Expiring Authorities

Sec. 1051. Extension of authority for Secretary of Defense to sell 
              aircraft and aircraft parts for use in responding to oil 
              spills.
Sec. 1052. Six-month extension of expiring Governmentwide information 
              security requirements; continued applicability of 
              expiring Governmentwide information security requirements 
              to the Department of Defense.
Sec. 1053. Two-year extension of authority of the Secretary of Defense 
              to engage in commercial activities as security for 
              intelligence collection activities abroad.

                       Subtitle F--Other Matters

Sec. 1061. Time for transmittal of annual defense authorization 
              legislative proposal.
Sec. 1062. Technical and clerical amendments.
Sec. 1063. Use for law enforcement purposes of DNA samples maintained 
              by Department of Defense for identification of human 
              remains.
Sec. 1064. Enhanced authority to obtain foreign language services 
              during periods of emergency.
Sec. 1065. Rewards for assistance in combating terrorism.
Sec. 1066. Provision of space and services to military welfare 
              societies.
Sec. 1067. Prevention and mitigation of corrosion of military equipment 
              and infrastructure.
Sec. 1068. Transfer of historic DF-9E Panther aircraft to Women 
              Airforce Service Pilots Museum.
Sec. 1069. Increase in amount authorized to be expended for Department 
              of Defense program to commemorate 50th anniversary of the 
              Korean War.

           TITLE XI--DEPARTMENT OF DEFENSE CIVILIAN PERSONNEL

Sec. 1101. Eligibility of Department of Defense nonappropriated fund 
              employees for long-term care insurance.
Sec. 1102. Extension of Department of Defense authority to make lump-
              sum severance payments.
Sec. 1103. Continuation of Federal Employee Health Benefits Program 
              eligibility.
Sec. 1104. Certification for Department of Defense professional 
              accounting positions.

              TITLE XII--MATTERS RELATING TO OTHER NATIONS

Sec. 1201. Authority to provide administrative services and support for 
              coalition liaison officers.
Sec. 1202. Authority to pay for certain travel of defense personnel of 
              countries participating in NATO Partnership for Peace 
              program.
Sec. 1203. Limitation on funding for Joint Data Exchange Center in 
              Moscow.
Sec. 1204. Support of United Nations-sponsored efforts to inspect and 
              monitor Iraqi weapons activities.
Sec. 1205. Comprehensive annual report to Congress on coordination and 
              integration of all United States nonproliferation 
              activities.
Sec. 1206. Report requirement regarding Russian proliferation to Iran 
              and other countries of proliferation concern.
Sec. 1207. Monitoring of implementation of 1979 agreement between the 
              United States and China on cooperation in science and 
              technology.
Sec. 1208. Extension of certain counterproliferation activities and 
              programs.
Sec. 1209. Semiannual report by Director of Central Intelligence on 
              contributions by foreign persons to efforts by countries 
              of proliferation concern to obtain weapons of mass 
              destruction and their delivery systems.
Sec. 1210. Report on feasibility and advisability of senior officer 
              exchanges between the Armed Forces of the United States 
              and the military forces of Taiwan.
Sec. 1211. Report on United States force structure in the Pacific.

  TITLE XIII--COOPERATIVE THREAT REDUCTION WITH STATES OF THE FORMER 
                              SOVIET UNION

Sec. 1301. Specification of Cooperative Threat Reduction programs and 
              funds.
Sec. 1302. Funding allocations.
Sec. 1303. Prohibition against use of funds until submission of 
              reports.
Sec. 1304. Report on use of revenue generated by activities carried out 
              under Cooperative Threat Reduction programs.
Sec. 1305. Prohibition against use of funds for second wing of fissile 
              material storage facility.
Sec. 1306. Limited waiver of restrictions on use of funds for threat 
              reduction in states of the former Soviet Union.

                      TITLE XIV--HOMELAND SECURITY

Sec. 1401. Transfer of technology items and equipment in support of 
              homeland security.
Sec. 1402. Comprehensive plan for improving the preparedness of 
              military installations for terrorist incidents.
Sec. 1403. Additional Weapons of Mass Destruction Civil Support Teams.
Sec. 1404. Report on the role of the Department of Defense in 
              supporting homeland security.
Sec. 1405. Sense of Congress on Department of Defense assistance to 
              local first responders.

   TITLE XV--AUTHORIZATION OF APPROPRIATIONS FOR THE WAR ON TERRORISM

Sec. 1501. Authorization of appropriations for continued operations for 
              the war on terrorism.
Sec. 1502. Mobilization and personnel.
Sec. 1503. Operations.
Sec. 1504. Equipment replacement and enhancement.

[[Page H8097]]

Sec. 1505. Classified activities.
Sec. 1506. Procurement of munitions.
Sec. 1507. Discretionary restoration of authorizations of 
              appropriations reduced for management efficiencies.
Sec. 1508. General provisions applicable to transfers.

            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 
              2001 project.

                            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 of authority 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, 
              to replace road closed for force protection purposes.

                      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.
Sec. 2405. Modification of authority to carry out certain fiscal year 
              2000 project.
Sec. 2406. Modification of authority to carry out certain fiscal year 
              1999 project.
Sec. 2407. Modification of authority to carry out certain fiscal year 
              1997 project.

   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.

        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.

                    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. Modification of alternative authority for acquisition and 
              improvement of military housing.
Sec. 2803. Pilot housing privatization authority for acquisition or 
              construction of military unaccompanied housing.
Sec. 2804. Repeal of source requirements for family housing 
              construction overseas.
Sec. 2805. Availability of energy cost savings realized at military 
              installations.

        Subtitle B--Real Property and Facilities Administration

Sec. 2811. Agreements to limit encroachments and other constraints on 
              military training, testing, and operations.
Sec. 2812. Conveyance of surplus real property for natural resource 
              conservation purposes.
Sec. 2813. Modification of demonstration program on reduction in long-
              term facility maintenance costs.
Sec. 2814. Expanded authority to transfer property at military 
              installations to be closed to persons who construct or 
              provide military family housing.

                      Subtitle C--Land Conveyances

                        Part I--Army Conveyances

Sec. 2821. Transfer of jurisdiction, Fort McClellan, Alabama, to 
              establish Mountain Longleaf National Wildlife Refuge.
Sec. 2822. Land conveyances, lands in Alaska no longer required for 
              National Guard purposes.
Sec. 2823. Land conveyance, Sunflower Army Ammunition Plant, Kansas.
Sec. 2824. Land conveyances, Bluegrass Army Depot, Richmond, Kentucky.
Sec. 2825. Land conveyance, Fort Campbell, Kentucky.
Sec. 2826. Land conveyance, Army Reserve Training Center, Buffalo, 
              Minnesota.
Sec. 2827. Land conveyance, Fort Monmouth, New Jersey.
Sec. 2828. Land conveyance, Fort Bliss, Texas.
Sec. 2829. Land conveyance, Fort Hood, Texas.
Sec. 2830. Land conveyances, Engineer Proving Ground, Fort Belvoir, 
              Virginia.

                       Part II--Navy Conveyances

Sec. 2831. Land conveyance, Marine Corps Air Station, Miramar, San 
              Diego, California.
Sec. 2832. Modification of authority for land transfer and conveyance, 
              Naval Security Group Activity, Winter Harbor, Maine.
Sec. 2833. Land conveyance, Westover Air Reserve Base, Massachusetts.
Sec. 2834. Land conveyance, Naval Station, Newport, Rhode Island.
Sec. 2835. Land exchange and boundary adjustments, Marine Corps Base, 
              Quantico, and Prince William Forest Park, Virginia.

                    Part III--Air Force Conveyances

Sec. 2841. Modification of land conveyance, Los Angeles Air Force Base, 
              California.
Sec. 2842. Land exchange, Buckley Air Force Base, Colorado.
Sec. 2843. Land conveyances, Wendover Air Force Base Auxiliary Field, 
              Nevada.

                       Subtitle D--Other Matters

Sec. 2851. Master plan for use of Navy Annex, Arlington, Virginia.
Sec. 2852. Sale of excess treated water and wastewater treatment 
              capacity, Marine Corps Base, Camp Lejeune, North 
              Carolina.
Sec. 2853. Conveyance of real property, Adak Naval Complex, Alaska, and 
              related land conveyances.
Sec. 2854. Special requirement for adding military installation to 
              closure list.

 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 nuclear waste disposal.

   Subtitle B--Program Authorizations, Restrictions, and Limitations

Sec. 3141. Annual assessments and reports to the President and Congress 
              regarding the condition of the United States nuclear 
              weapons stockpile.
Sec. 3142. Plans for achieving enhanced readiness posture for 
              resumption by the United States of underground nuclear 
              weapons tests.
Sec. 3143. Requirements for specific request for new or modified 
              nuclear weapons.
Sec. 3144. Database to track notification and resolution phases of 
              Significant Finding Investigations.
Sec. 3145. Defense environmental management cleanup reform program.
Sec. 3146. Limitation on obligation of funds for Robust Nuclear Earth 
              Penetrator program pending submission of report.

                   Subtitle C--Proliferation Matters

Sec. 3151. Transfer to National Nuclear Security Administration of 
              Department of Defense's Cooperative Threat Reduction 
              program relating to elimination of 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. Cooperative program on research, development, and 
              demonstration of technology regarding nuclear or 
              radiological terrorism.
Sec. 3156. Matters relating to the International Materials Protection, 
              Control, and Accounting program of the Department of 
              Energy.
Sec. 3157. Accelerated disposition of highly enriched uranium.
Sec. 3158. Strengthened international security for nuclear materials 
              and security of nuclear operations.
Sec. 3159. Export control programs.
Sec. 3160. Plan for accelerated return of weapons-usable nuclear 
              materials.
Sec. 3161. Sense of Congress on amendment of Convention on Physical 
              Protection of Nuclear Materials.
Sec. 3162. Sense of Congress on program to secure stockpiles of highly 
              enriched uranium and plutonium.

                       Subtitle D--Other Matters

Sec. 3171. Indemnification of Department of Energy contractors.

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Sec. 3172. Support for public education in the vicinity of Los Alamos 
              National Laboratory, New Mexico.
Sec. 3173. Worker health and safety rules for Department of Energy 
              nuclear facilities.
Sec. 3174. Extension of authority to appoint certain scientific, 
              engineering, and technical personnel.
Sec. 3175. One-year extension of panel to assess the reliability, 
              safety, and security of the United States nuclear 
              stockpile.
Sec. 3176. Report on status of environmental management initiatives to 
              accelerate the reduction of environmental risks and 
              challenges posed by the legacy of the Cold War.

Subtitle E--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.

                TITLE XXXIII--NATIONAL DEFENSE STOCKPILE

Sec. 3301. Authorized uses of National Defense Stockpile funds.

                 TITLE XXXIV--NAVAL PETROLEUM RESERVES

Sec. 3401. Authorization of appropriations.

                  TITLE XXXV--MARITIME ADMINISTRATION

Sec. 3501. Authorization of appropriations for fiscal year 2003.
Sec. 3502. Authority to convey vessel USS SPHINX (ARL-24).
Sec. 3503. Independent analysis of title XI insurance guarantee 
              applications.
Sec. 3504. Preparation as artificial reefs and scrapping of obsolete 
              vessels.

             TITLE XXXVI--ATOMIC ENERGY DEFENSE PROVISIONS

Sec. 3601. Short title.

                         Subtitle A--[Reserved]

   Subtitle B--Department of Energy National Security Authorizations 
                           General Provisions

Sec. 3620. Definitions.
Sec. 3621. Reprogramming.
Sec. 3622. Minor construction projects.
Sec. 3623. Limits on construction projects.
Sec. 3624. Fund transfer authority.
Sec. 3625. Conceptual and construction design.
Sec. 3626. Authority for emergency planning, design, and construction 
              activities.
Sec. 3627. Scope of authority to carry out plant projects.
Sec. 3628. Availability of funds.
Sec. 3629. Transfer of defense environmental management funds.
Sec. 3630. Transfer of weapons activities funds.
Sec. 3631. Funds available for all national security programs of the 
              Department of Energy.

     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.
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. 
Sec. 112. Report on impact of Army aviation modernization plan on the 
              Army National Guard.
Sec. 113. Family of Medium Tactical Vehicles.

                       Subtitle C--Navy Programs

Sec. 121. Extension of multiyear procurement authority for DDG-51 class 
              destroyers.
Sec. 122. Sense of Congress on scope of conversion program for 
              Ticonderoga-class cruisers.
Sec. 123. Continuation of contract for operation of Champion-class T-5 
              fuel tanker vessels.

                     Subtitle D--Air Force Programs

Sec. 131. Multiyear procurement authority for C-130J aircraft program.
Sec. 132. Pathfinder programs.
Sec. 133. Leases for tanker aircraft under multiyear aircraft-lease 
              pilot program.

                       Subtitle E--Other Programs

Sec. 141. Destruction of existing stockpile of lethal chemical agents 
              and munitions.
Sec. 142. Report on unmanned aerial vehicle systems.
Sec. 143. Global Information Grid system.
              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, $2,186,296,000.
       (2) For missiles, $1,152,299,000.
       (3) For weapons and tracked combat vehicles, 
     $2,276,751,000.
       (4) For ammunition, $1,229,533,000.
       (5) For other procurement, $5,857,814,000.

     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, $8,979,275,000.
       (2) For weapons, including missiles and torpedoes, 
     $2,375,349,000.
       (3) For shipbuilding and conversion, $9,111,023,000.
       (4) For other procurement, $4,494,754,000.
       (b) Marine Corps.--Funds are hereby authorized to be 
     appropriated for fiscal year 2003 for procurement for the 
     Marine Corps in the amount of $1,355,491,000.
       (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 $1,170,750,000.

     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, $12,676,505,000.
       (2) For missiles, $3,504,139,000.
       (3) For ammunition, $1,290,764,000.
       (4) For other procurement, $10,846,048,000.

     SEC. 104. DEFENSE-WIDE ACTIVITIES.

       Funds are hereby authorized to be appropriated for fiscal 
     year 2003 for Defense-wide procurement in the amount of 
     $3,691,604,000.

     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 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 striking subsection (d);
       (2) by redesignating subsection (c) as subsection (d); and
       (3) by inserting after subsection (b) the following new 
     subsection (c):
       ``(c) Transfer of Certain Sums.--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 such 
     section 141 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)(2)). 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).

     SEC. 112. REPORT ON IMPACT OF ARMY AVIATION MODERNIZATION 
                   PLAN ON THE ARMY NATIONAL GUARD.

       (a) Report by Chief of the National Guard Bureau.--The 
     Chief of the National Guard Bureau shall submit to the Chief 
     of Staff of the Army a report on the requirements for Army 
     National Guard aviation. The report shall include the 
     following:
       (1) An analysis of the impact of the Army Aviation 
     Modernization Plan on the ability of the Army National Guard 
     to conduct its aviation missions.
       (2) The plan under that aviation modernization plan for the 
     transfer of aircraft from the active component of the Army to 
     the Army reserve components, including a timeline for those 
     transfers.
       (3) The progress, as of January 1, 2003, in carrying out 
     the transfers under the plan referred to in paragraph (2).

[[Page H8099]]

       (4) An evaluation of the suitability and cost effectiveness 
     of existing Commercial Off The Shelf light utility 
     helicopters for performance of Army National Guard utility 
     aviation missions.
       (b) Comments and Recommendations by Chief of Staff of the 
     Army.--Not later than February 1, 2003, the Chief of Staff of 
     the Army shall submit to the Committee on Armed Services of 
     the Senate and the Committee on Armed Services of the House 
     of Representatives the report received under subsection (a), 
     together with any comments and recommendations that the Chief 
     of Staff considers appropriate on the matters covered in the 
     report.

     SEC. 113. FAMILY OF MEDIUM TACTICAL VEHICLES.

       (a) Multiyear Procurement Authority.--Beginning with the 
     fiscal year 2003 program year, the Secretary of the Army may, 
     in accordance with section 2306b of title 10, United States 
     Code, enter into a multiyear contract for the procurement of 
     vehicles under the Family of Medium Tactical Vehicles 
     program, subject to subsection (b).
       (b) Limitation.--The Secretary of the Army may not enter 
     into a multiyear contract for the procurement of vehicles in 
     the Family of Medium Tactical Vehicles authorized by 
     subsection (a) until the Secretary submits to the 
     congressional defense committees a written certification 
     that--
       (1) all key performance parameters required in the initial 
     operational test and evaluation for that program have been 
     met; and
       (2) the total cost through the use of such multiyear 
     contract of the procurement of the number of vehicles to be 
     procured under such contract is at least 10 percent less than 
     the total cost of the procurement of the same number of such 
     vehicles through the use of successive one-year contracts.
       (c) Waiver Authority.--The Secretary of Defense may waive 
     subsection (b)(2) if the Secretary--
       (1) determines that using a multiyear contract for the 
     procurement of vehicles under the Family of Medium Tactical 
     Vehicles program is in the national security interests of the 
     United States;
       (2) certifies that the Army cannot achieve the savings 
     specified in subsection (b)(2); and
       (3) submits to the congressional defense committees, in 
     writing, a notification of the waiver together with a report 
     describing the reasons why the use of a multiyear contract 
     for such procurement is in the national security interests of 
     the United States and why the Army cannot achieve a 10 
     percent savings of the total anticipated costs of carrying 
     out the program through a multiyear contract.
                       Subtitle C--Navy Programs

     SEC. 121. 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. 122. SENSE OF CONGRESS ON SCOPE OF CONVERSION PROGRAM 
                   FOR TICONDEROGA-CLASS CRUISERS.

       It is the sense of Congress that the Secretary of the Navy 
     should maintain the scope of the conversion program for the 
     Ticonderoga class of cruisers so that the program--
       (1) covers all 27 ships in that class of cruisers; and
       (2) provides for modernizing each of those ships to include 
     an appropriate mix of upgrades to ships' capabilities for 
     theater missile defense, naval fire support, and air 
     dominance.

     SEC. 123. CONTINUATION OF CONTRACT FOR OPERATION OF CHAMPION-
                   CLASS T-5 FUEL TANKER VESSELS.

       The Department of the Navy contract in effect on the date 
     of the enactment of this Act for the operation of five 
     Champion-class T-5 fuel tanker vessels shall continue in 
     effect with respect to the operation of each such vessel 
     until the completion of the term of the contract or, if 
     sooner for any such vessel, until the vessel is no longer 
     used for purposes of the Military Sealift Command or any 
     other Navy purpose.
                     Subtitle D--Air Force Programs

     SEC. 131. MULTIYEAR PROCUREMENT AUTHORITY FOR C-130J AIRCRAFT 
                   PROGRAM.

       (a) Multiyear 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 procurement of up 
     to 40 C-130J aircraft in the CC-130J configuration and up to 
     24 C-130J aircraft in the KC-130J configuration. 
     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 contract authorized by subsection (a) until--
       (1) testing of the CC-130J aircraft for qualification for 
     use in assault operations has been completed by the Air Force 
     Flight Test Center; and
       (2) Block 5.3 software upgrades have been installed on all 
     C-130J and CC-130J aircraft in the inventory of the Air 
     Force.

     SEC. 132. PATHFINDER PROGRAMS.

       (a) Pathfinder Programs.--Not later than February 1, 2003, 
     the Secretary of the Air Force shall submit to the 
     congressional defense committees a list of Air Force programs 
     that the Secretary has designated as acquisition reform 
     pathfinder programs (hereinafter in this section referred to 
     as ``pathfinder programs'').
       (b) Oversight of Pathfinder Programs.--The Secretary of 
     Defense shall ensure that the Under Secretary of Defense for 
     Acquisition, Technology and Logistics, the Director of 
     Operational Test and Evaluation, and the Joint Requirements 
     Oversight Council maintain oversight over each pathfinder 
     program that qualifies as a major defense acquisition program 
     under section 2430 of title 10, United States Code.
       (c) Report on Pathfinder Programs.--(1) Not later than 
     March 15, 2003, the Secretary of the Air Force shall submit 
     to the congressional defense committees a report on 
     pathfinder programs. For each such program, the report shall 
     include a description of the following:
       (A) The management approach for that program and how that 
     approach will result in a disciplined, affordable and well-
     managed acquisition program.
       (B) The acquisition strategy for that program and how that 
     acquisition strategy responds to approved operational 
     requirements.
       (C) The test and evaluation plan for that program and how 
     that plan will provide adequate assessment of each pathfinder 
     program.
       (D) The manner in which the acquisition plan for that 
     program considers cost, schedule, and technical risk.
       (E) The manner in which any innovative business practices 
     developed as a result of participation in the program could 
     be applied to other acquisition programs, and any impediments 
     to application of such practices to other programs.
       (2) For each such program, the report shall also set forth 
     the following:
       (A) The manner in which the Under Secretary of Defense for 
     Acquisition, Technology, and Logistics will be involved in 
     the development, oversight, and approval of the program's 
     management approach, acquisition strategy, and acquisition 
     approach.
       (B) The manner in which the Director of Operational Test 
     and Evaluation will be involved in the development, 
     oversight, and approval of the program's test and evaluation 
     plan.
       (C) The manner in which an independent cost estimate for 
     the program will be developed by the Office of the Secretary 
     of Defense.
       (d) Applicability of Spiral Development Section.--Nothing 
     in this section shall be construed to exempt any pathfinder 
     program from the application of any provision of section 
     803(c).

     SEC. 133. LEASES FOR TANKER AIRCRAFT UNDER MULTIYEAR 
                   AIRCRAFT-LEASE PILOT PROGRAM.

       The Secretary of the Air Force may not enter into a lease 
     for the acquisition of tanker aircraft for the Air Force 
     under section 8159 of the Department of Defense 
     Appropriations Act, 2002 (division A of Public Law 107-117; 
     115 Stat. 2284; 10 U.S.C. 2401a note) until--
       (1) the Secretary submits the report specified in 
     subsection (c)(6) of such section; and
       (2) either--
       (A) authorization and appropriation of funds necessary to 
     enter into such lease are provided by law; or
       (B) a new start reprogramming notification for the funds 
     necessary to enter into such lease has been submitted in 
     accordance with established procedures.
                       Subtitle E--Other Programs

     SEC. 141. DESTRUCTION OF EXISTING STOCKPILE OF LETHAL 
                   CHEMICAL AGENTS AND MUNITIONS.

       (a) Program Management.--The Secretary of Defense shall 
     ensure that the program for destruction of the United States 
     stockpile of lethal chemical agents and munitions is managed 
     as a major defense acquisition program (as defined in section 
     2430 of title 10, United States Code) in accordance with the 
     essential elements of such programs as may be determined by 
     the Secretary.
       (b) Requirement for Under Secretary of Defense 
     (Comptroller) Annual Certification.--Beginning with respect 
     to the budget request for fiscal year 2004, the Under 
     Secretary of Defense (Comptroller) shall submit to the 
     congressional defense committees on an annual basis a 
     certification that the budget request for the chemical agents 
     and munitions destruction program has been submitted in 
     accordance with the requirements of section 1412 of the 
     Department of Defense Authorization Act, 1986 (50 U.S.C. 
     1521).

     SEC. 142. REPORT ON UNMANNED AERIAL VEHICLE SYSTEMS.

       (a) Report.--Not later than January 1, 2003, the Secretary 
     of Defense shall submit to Congress a report on unmanned 
     aerial vehicle systems of the Department of Defense.
       (b) Matters To Be Included Concerning Unmanned Aerial 
     Vehicle Systems.--The Secretary shall include in the report 
     under subsection (a) the following, shown for each system 
     referred to in that subsection:
       (1) A description of the infrastructure that the Department 
     of Defense has (or is planning) for the system.
       (2) A description of the operational requirements document 
     (ORD) for the system.
       (3) A description of the physical infrastructure of the 
     Department for training and basing.
       (4) A description of the manner in which the Department is 
     interfacing with the industrial base.
       (5) A description of the acquisition plan for the system.
       (6) A description of the process by which the Department 
     will ensure that any unmanned aerial vehicle program 
     proceeding past the science and technology stage does so only 
     as part of an integrated, overall Office of the Secretary of 
     Defense strategy for acquisition of unmanned aerial vehicles, 
     such as that provided in the approved Office of the Secretary 
     of Defense unmanned aerial vehicle roadmap.

[[Page H8100]]

       (c) Suggestions for Changes in Law.--The Secretary shall 
     also include in the report under subsection (a) such 
     suggestions as the Secretary considers appropriate for 
     changes in law that would facilitate the way the Department 
     acquires unmanned aerial vehicle systems.

     SEC. 143. GLOBAL INFORMATION GRID SYSTEM.

       None of the funds authorized to be appropriated by this Act 
     for the Department of Defense system known as the Global 
     Information Grid may be obligated until the Secretary of 
     Defense submits to the congressional defense committees a 
     plan to provide that, as part of the bandwidth expansion 
     efforts for the system, the system will be designed and 
     configured so as to ensure that information transmitted 
     within the system is secure and protected from unauthorized 
     access.
         TITLE II--RESEARCH, DEVELOPMENT, TEST, AND EVALUATION

              Subtitle A--Authorization of Appropriations

Sec. 201. Authorization of appropriations.
Sec. 202. Amount for defense science and technology.
Sec. 203. Defense health programs.

    Subtitle B--Program Requirements, Restrictions, and Limitations

Sec. 211. RAH-66 Comanche aircraft program.
Sec. 212. Extension of requirements relating to management 
              responsibility for naval mine countermeasures programs.
Sec. 213. Revised requirements for plan for Manufacturing Technology 
              Program.
Sec. 214. Advanced SEAL Delivery System.
Sec. 215. Army experimentation program regarding design of the 
              objective force.
Sec. 216. Program to provide Army with self-propelled Future Combat 
              Systems non-line-of-sight cannon indirect fire capability 
              for the objective force.
Sec. 217. Prohibition on transfer of Medical Free Electron Laser 
              program.
Sec. 218. Littoral combat ship program.

                 Subtitle C--Ballistic Missile Defense

Sec. 221. Report requirements relating to ballistic missile defense 
              programs.
Sec. 222. Responsibility of Missile Defense Agency for research, 
              development, test, and evaluation related to system 
              improvements of programs transferred to military 
              departments.
Sec. 223. Limitation on obligation of funds for Theater High Altitude 
              Area Defense Program pending submission of required life-
              cycle cost information.
Sec. 224. Provision of information on flight testing of Ground-based 
              Midcourse National Missile Defense system.
Sec. 225. References to new name for Ballistic Missile Defense 
              Organization.
Sec. 226. One-year limitation on use of funds for nuclear armed 
              interceptors.

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

Sec. 231. Department of Defense Test Resource Management Center.
Sec. 232. Objective for institutional funding of test and evaluation 
              facilities.
Sec. 233. Uniform financial management system for Department of Defense 
              test and evaluation facilities.
Sec. 234. Test and evaluation workforce improvements.
Sec. 235. Compliance with testing requirements.

                       Subtitle E--Other Matters

Sec. 241. Pilot programs for revitalizing Department of Defense 
              laboratories.
Sec. 242. Technology Transition Initiative.
Sec. 243. Defense Acquisition Challenge Program.
Sec. 244. Encouragement of small businesses and nontraditional defense 
              contractors to submit proposals potentially beneficial 
              for combating terrorism.
Sec. 245. Vehicle fuel cell program.
Sec. 246. Defense nanotechnology research and development program.
Sec. 247. Activities of the Defense Experimental Program to Stimulate 
              Competitive Research.
Sec. 248. Four-year extension of authority of DARPA to award prizes for 
              advanced technology achievements and additional authority 
              of military departments and Defense Agencies to award 
              prizes for achievements in promoting education.
Sec. 249. Plan for five-year program for enhancement of measurement and 
              signatures intelligence capabilities of the United States 
              through incorporation of results of basic research on 
              sensors.
              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, $7,158,256,000.
       (2) For the Navy, $13,244,164,000.
       (3) For the Air Force, $18,337,078,000.
       (4) For Defense-wide activities, $17,970,653,000, of which 
     $311,554,000 is authorized for the Director of Operational 
     Test and Evaluation.

     SEC. 202. AMOUNT FOR DEFENSE SCIENCE AND TECHNOLOGY.

       (a) Fiscal Year 2003.--Of the amounts authorized to be 
     appropriated by section 201, $10,384,658,000 shall be 
     available for the Defense Science and Technology Program, 
     including basic research, applied research, and advanced 
     technology development projects.
       (b) Basic Research, Applied Research, and Advanced 
     Technology Development Defined.--For purposes of this 
     section, the term ``basic research, applied research, and 
     advanced technology development'' means work funded in 
     program elements for defense research and development under 
     Department of Defense category 6.1, 6.2, or 6.3.

     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. RAH-66 COMANCHE AIRCRAFT PROGRAM.

       (a) Reports Required.--Not later than the end of each 
     fiscal quarter of fiscal year 2003, the Secretary of the Army 
     shall submit to the Committee on Armed Services of the Senate 
     and the Committee on Armed Services of the House of 
     Representatives a report on the progress of the restructured 
     engineering and manufacturing development phase of the RAH-66 
     Comanche aircraft program.
       (b) Content.--The report shall include, at a minimum, the 
     information relating to the program that the program manager 
     provides to the Assistant Secretary of the Army for 
     Acquisition, Logistics, and Technology with respect to--
       (1) cost, including funding and contracts;
       (2) schedule;
       (3) performance;
       (4) which goals are being met and which are not being met;
       (5) milestones events accomplished; and
       (6) significant events accomplished.

     SEC. 212. EXTENSION OF REQUIREMENTS RELATING TO MANAGEMENT 
                   RESPONSIBILITY FOR NAVAL MINE COUNTERMEASURES 
                   PROGRAMS.

       (a) In General.--Section 216 of the National Defense 
     Authorization Act for Fiscal Years 1992 and 1993 (Public Law 
     102-190; 105 Stat. 1317), as most recently amended by section 
     211 of the Strom Thurmond National Defense Authorization Act 
     for Fiscal Year 1999 (Public Law 105-261; 112 Stat. 1946), is 
     amended--
       (1) in subsection (a), by striking ``through 2003'' and 
     inserting ``through 2008'';
       (2) in subsection (b)--
       (A) by striking ``and'' at the end of paragraph (2);
       (B) by redesignating paragraph (3) as paragraph (4); and
       (C) by inserting after paragraph (2) the following new 
     paragraph:
       ``(3) the responsibilities of the Joint Requirements 
     Oversight Council under subsections (b) and (d) of section 
     181 of title 10, United States Code, have been carried out 
     with respect to the updated mine countermeasures master plan, 
     the budget resources for mine countermeasures for that fiscal 
     year, and the future years defense program for mine 
     countermeasures; and''; and
       (3) by adding at the end the following new subsection:
       ``(c) Notification of Proposed Changes.--Upon certifying 
     under subsection (b) with respect to a fiscal year, the 
     Secretary may not carry out any change to the naval mine 
     countermeasures master plan or the budget resources for mine 
     countermeasures with respect to that fiscal year until after 
     the Under Secretary of Defense for Acquisition, Technology, 
     and Logistics submits to the congressional defense committees 
     a notification of the proposed change. Such notification 
     shall describe the nature of the proposed change, the effect 
     of the proposed change on the naval mine countermeasures 
     program or related programs with respect to that fiscal year, 
     and the effect of the proposed change on the validity of the 
     decision to certify under subsection (b) with respect to that 
     fiscal year.''.
       (b) Technical Amendments.--Such section is further 
     amended--
       (1) in subsection (a), by striking ``Under Secretary of 
     Defense for Acquisition and Technology'' and inserting 
     ``Under Secretary of Defense for Acquisition, Technology, and 
     Logistics''; and
       (2) in subsection (b)(2)--
       (A) by striking ``multiyear'' and inserting ``future 
     years''; and
       (B) by striking ``section 114a'' and inserting ``section 
     221''.

     SEC. 213. REVISED REQUIREMENTS FOR PLAN FOR MANUFACTURING 
                   TECHNOLOGY PROGRAM.

       (a) Streamlined Contents of Plan.--Subsection (e) of 
     section 2521 of title 10, United States Code, is amended by 
     striking ``prepare a five-year plan'' in paragraph (1) and 
     all that follows through the end of subparagraph (B) of 
     paragraph (2) and inserting the following: ``prepare and 
     maintain a five-year plan for the program.
       ``(2) The plan shall establish the following:
       ``(A) The overall manufacturing technology objectives, 
     milestones, priorities, and investment strategy for the 
     program.
       ``(B) The specific objectives of, and funding for the 
     program by, each military department and each Defense Agency 
     participating in the program.''.
       (b) Biennial Report.--Such subsection is further amended in 
     paragraph (3)--
       (1) by striking ``annually'' and inserting ``biennially''; 
     and
       (2) by striking ``for a fiscal year'' and inserting ``for 
     each even-numbered fiscal year''.

     SEC. 214. ADVANCED SEAL DELIVERY SYSTEM.

       (a) Transfer of Funds.--To the extent provided in 
     appropriations Acts, the amount described in subsection (b) 
     shall be transferred to

[[Page H8101]]

     amounts available for fiscal year 2003 for research, 
     development, test, and evaluation, Defense-Wide, and shall be 
     available only for research, development, test, and 
     evaluation relating to the Advanced SEAL Delivery System.
       (b) Amount To Be Transferred.--The amount referred to in 
     subsection (a) is the amount of $13,700,000 that was 
     authorized and appropriated for fiscal year 2002 for 
     procurement of the Advanced SEAL Delivery System within 
     amounts for Procurement, Defense-Wide.
       (c) Transfer Authority in Addition to Other Authority.--The 
     transfer authority provided by this section is in addition to 
     any other transfer authority provided by law.

     SEC. 215. ARMY EXPERIMENTATION PROGRAM REGARDING DESIGN OF 
                   THE OBJECTIVE FORCE.

       (a) Requirement for Report.--Not later than March 31, 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. 216. PROGRAM TO PROVIDE ARMY WITH SELF-PROPELLED FUTURE 
                   COMBAT SYSTEMS NON-LINE-OF-SIGHT CANNON 
                   INDIRECT FIRE CAPABILITY FOR THE OBJECTIVE 
                   FORCE.

       (a) Program Required.--The Secretary of Defense shall carry 
     out a program to provide the Army, not later than fiscal year 
     2008, with a self-propelled Future Combat Systems non-line-
     of-sight cannon indirect fire capability to equip the 
     objective force.
       (b) Report.--(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 (2) to Congress under section 1105(a) of title 31, 
     United States Code, a report on the investments proposed to 
     be made with respect to non-line-of-sight indirect fire 
     programs for the Army. The report shall--
       (A) identify the amount proposed for expenditures 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 non-line-of-sight indirect 
     fire capabilities for the Army; and
       (ii) the extent to which expending such amount in such 
     manner would improve such capabilities for the Army.
       (2) The requirement to submit a report under paragraph (1) 
     shall apply with respect to budgets for fiscal years 2004, 
     2005, 2006, 2007, and 2008.
       (c) Objective Force Defined.--In this section, the term 
     ``objective force'' has the meaning given such term in 
     section 113(f)(2) 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).
       (d) Funding.--Of the amount authorized to be appropriated 
     by section 201(1) for the Army for research, development, 
     test, and evaluation, $368,500,000 shall be used only to 
     develop and field a self-propelled Future Combat Systems non-
     line-of-sight cannon indirect fire artillery system and a 
     resupply vehicle with respect to such system.

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

       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. LITTORAL COMBAT SHIP PROGRAM.

       (a) Amount for Program.--Of the amount authorized to be 
     appropriated by section 201(2) for research, development, 
     test, and evaluation, Navy, $4,000,000 may be available in 
     program element 0603563N, relating to Ship Concept Advanced 
     Design, for requirements development for the littoral combat 
     ship.
       (b) Limitation on Obligation of Funds.--The Secretary of 
     the Navy may not obligate any funds for the construction of a 
     littoral combat ship until after the Secretary submits the 
     report required by subsection (c).
       (c) Report on Milestone A Plan and Schedule.--(1) The 
     Secretary of the Navy shall submit to the congressional 
     defense committees, 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, a report on 
     development of the littoral combat ship.
       (2) The report shall address the plan and schedule for 
     fulfilling the requirements of Department of Defense 
     Instruction 5000-series for a major defense acquisition 
     Milestone A decision for initiation of concept and technology 
     development for the littoral combat ship, including the 
     following such requirements:
       (A) Consideration of technology issues.
       (B) Market research.
       (C) Validated mission need statement.
       (D) Analysis of multiple concepts.
       (E) Test and evaluation master plan (evaluation strategy 
     only).
       (F) Exit criteria.
       (G) Acquisition decision memorandum.
       (3) The report shall include a discussion of the 
     Secretary's acquisition strategy for development of the 
     littoral combat ship.
       (d) Requirements for Acquisition Strategy.--The Secretary 
     shall ensure that the acquisition strategy for development of 
     the littoral combat ship includes the following:
       (1) A concept and technology demonstration phase that is 
     robust and, in a manner and on a schedule that will inform 
     the Navy's decisions on the concepts, technologies, and 
     capabilities to be incorporated into the initial design of 
     the littoral combat ship and into follow-on designs, 
     capitalizes upon ongoing and planned experiments, 
     demonstrations, and evaluations of--
       (A) existing, prototype, and experimental hull forms and 
     platforms, including the hull forms and platforms relating 
     to--
       (i) the Coastal Waters Interdiction Platform;
       (ii) the Hybrid Deep Vee Demonstrator;
       (iii) the Littoral Support Craft (Experimental);
       (iv) the High Speed Vessel;
       (v) surface effects ships;
       (vi) Research Vessel Triton;
       (vii) the SLICE ship;
       (viii) other existing, prototype, and experimental craft 
     that the Secretary considers to be appropriate; and
       (ix) other existing ships capable of carrying the desired 
     payload packages;
       (B) ship and combat systems components;
       (C) command, control, and communications systems;
       (D) intelligence, surveillance, and reconnaissance systems;
       (E) weapons systems; and
       (F) support systems.
       (2) A description of the experiments, demonstrations, and 
     evaluations that are needed for support of design and 
     development decisionmaking for mission modules to be employed 
     on the littoral combat ship, including the mission modules 
     for--
       (A) anti-submarine warfare;
       (B) mine countermeasures;
       (C) anti-ship defense; and
       (D) any other missions that may be envisioned for the ship.
       (3) An identification of the experiments, demonstrations, 
     and evaluations that would need to be accomplished during the 
     concept and technology demonstration phase and those that 
     would need to be accomplished during the system development 
     and demonstration phase (after a major defense acquisition 
     Milestone B decision to enter that phase).
       (4) A description of the potential trade-offs between 
     program requirements and capabilities, and the methodology 
     (including life cycle cost as an independent variable, speed 
     as an independent variable, and other applicable program 
     attributes), needed to arrive at a design for a littoral 
     combat ship that can be approved (pursuant to a major defense 
     acquisition Milestone B decision) for entry into the system 
     development and demonstration phase.
       (5) An analysis of the adequacy of existing and planned 
     platforms to test the littoral ship concept prior to 
     construction of a littoral combat ship.
                 Subtitle C--Ballistic Missile Defense

     SEC. 221. REPORT REQUIREMENTS RELATING TO BALLISTIC MISSILE 
                   DEFENSE PROGRAMS.

       (a) Annual Submission of Current Performance Goals and 
     Development Baselines.--(1) The Secretary of Defense shall 
     submit to the congressional defense committees each year the 
     performance goals and development baselines--
       (A) for those ballistic missile defense systems under 
     development by the Missile Defense Agency that could be 
     fielded; and
       (B) for any other ballistic missile defense program or 
     project that has been designated by Congress as a special 
     interest item.
       (2) Such performance goals and development baselines shall 
     be provided for each block of each such system.
       (3) The performance goals and development baselines under 
     paragraph (1) shall be included annually with the defense 
     budget justification materials submitted in support of the 
     President's budget submitted to Congress under section 1105 
     of title 31, United States Code.
       (b) RDT&E Budget Justification Materials.--The budget 
     justification materials submitted to Congress for any fiscal 
     year in support of a request for the authorization and 
     appropriation of funds for research, development, test, and 
     evaluation for ballistic missile defense systems shall 
     include a funding profile for each block of each such system 
     that could be fielded that reflects the development baseline 
     submitted pursuant to subsection (a) for that fiscal year.
       (c) Review of MDA Criteria in Relation to Military 
     Requirements.--(1) The Joint Requirements Oversight Council 
     established under section 181 of title 10, United States 
     Code, shall review cost, schedule, and performance criteria 
     for missile defense programs of the Missile Defense Agency in 
     order to assess the validity of those criteria in relation to 
     military requirements.
       (2) The Secretary shall include the results of such review 
     with the first annual statement of program goals submitted to 
     the congressional defense committees under section 232(c) of 
     the National Defense Authorization Act for Fiscal Year 2002 
     (Public Law 107-107; 10 U.S.C. 2431 note) after the date of 
     the enactment of this Act.

     SEC. 222. RESPONSIBILITY OF MISSILE DEFENSE AGENCY FOR 
                   RESEARCH, DEVELOPMENT, TEST, AND EVALUATION 
                   RELATED TO SYSTEM IMPROVEMENTS OF PROGRAMS 
                   TRANSFERRED TO MILITARY DEPARTMENTS.

       Section 224(e) of title 10, United States Code, is 
     amended--
       (1) by striking ``before a'' and inserting ``for each'';
       (2) by striking ``is''; and

[[Page H8102]]

       (3) by striking ``roles and responsibilities'' and all that 
     follows through the period at the end and inserting 
     ``responsibility for research, development, test, and 
     evaluation related to system improvements for that program 
     remains with the Director.''.

     SEC. 223. LIMITATION ON OBLIGATION OF FUNDS FOR THEATER HIGH 
                   ALTITUDE AREA DEFENSE PROGRAM PENDING 
                   SUBMISSION OF REQUIRED LIFE-CYCLE COST 
                   INFORMATION.

       (a) Limitation Pending Submission of Certification.--Not 
     more than 85 percent of the amount specified in subsection 
     (b) may be obligated until the Secretary of Defense submits 
     to the congressional defense committees the estimated total 
     life-cycle cost of the Theater High Altitude Area Defense 
     (THAAD) program as required for programs in engineering and 
     manufacturing development by section 232(d) of the National 
     Defense Authorization Act for Fiscal Year 2002 (Public Law 
     107-107; 10 U.S.C. 2431 note).
       (b) Funds Subject to Limitation.--Subsection (a) applies to 
     the amount authorized to be appropriated for fiscal year 2003 
     for the Missile Defense Agency for the Theater High Altitude 
     Area Defense (THAAD) program.

     SEC. 224. PROVISION OF INFORMATION ON FLIGHT TESTING OF 
                   GROUND-BASED MIDCOURSE NATIONAL MISSILE DEFENSE 
                   SYSTEM.

       (a) Information To Be Furnished to Congressional 
     Committees.--The Director of the Missile Defense Agency shall 
     provide to the congressional defense committees information 
     on the results of each flight test of the Ground-based 
     Midcourse national missile defense system.
       (b) Content.--Information provided under subsection (a) on 
     the results of a flight test shall include the following 
     matters:
       (1) A thorough discussion of the content and objectives of 
     the test.
       (2) For each such test objective, a statement regarding 
     whether or not the objective was achieved.
       (3) For any such test objective not achieved--
       (A) a thorough discussion describing the reasons that the 
     objective was not achieved; and
       (B) a discussion of any plans for future tests to achieve 
     that objective.

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

       (a) In General.--Any reference to the Ballistic Missile 
     Defense Organization in any provision of law, regulation, 
     map, document, record, or other paper of the United States 
     shall be considered to be a reference to the Missile Defense 
     Agency.
       (b) Conforming Amendments.--(1) Title 10, United States 
     Code, is amended as follows:
       (A) Sections 203, 223, and 224 are each amended by striking 
     ``Ballistic Missile Defense Organization'' each place it 
     appears and inserting ``Missile Defense Agency''.
       (B)(i) The heading for section 203 is amended to read as 
     follows:

     ``Sec. 203. Director of Missile Defense Agency''.

       (ii) The item relating to section 203 in the table of 
     sections at the beginning of subchapter II of chapter 8 is 
     amended to read as follows:

``203. Director of Missile Defense Agency.''.
       (2) The National Defense Authorization Act for Fiscal Year 
     2002 (Public Law 107-107) is amended as follows:
       (A) Sections 232 (115 Stat. 1037; 10 U.S.C. 2431 note), 233 
     (115 Stat. 1039), and 235 (115 Stat. 1041) are each amended 
     by striking ``Ballistic Missile Defense Organization'' each 
     place it appears and inserting ``Missile Defense Agency''.
       (B) The heading for section 232 is amended to read as 
     follows:

     ``SEC. 232. PROGRAM ELEMENTS FOR MISSILE DEFENSE AGENCY.''.

       (3) Section 3132 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-455; 10 U.S.C. 2431 
     note) is amended--
       (A) by striking ``Ballistic Missile Defense Organization'' 
     each place it appears and inserting ``Missile Defense 
     Agency'';
       (B) in subsection (c), by striking ``BMDO'' and inserting 
     ``MDA''; and
       (C) by amending the heading to read as follows:

     ``SEC. 3132. ENHANCED COOPERATION BETWEEN NATIONAL NUCLEAR 
                   SECURITY ADMINISTRATION AND MISSILE DEFENSE 
                   AGENCY.''.

       (4) The following provisions are each amended by striking 
     ``Ballistic Missile Defense Organization'' each place it 
     appears and inserting ``Missile Defense Agency'':
       (A) Section 233 of the National Defense Authorization Act 
     for Fiscal Year 1998 (Public Law 105-85; 10 U.S.C. 223 note).
       (B) Section 243 of the National Defense Authorization Act 
     for Fiscal Year 1994 (Public Law 103-160; 10 U.S.C. 2431 
     note).

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

       (a) Limitation.--None of the funds described in subsection 
     (b) may be obligated for research, development, test, or 
     evaluation, or for procurement, of a nuclear armed 
     interceptor as a component of a missile defense system.
       (b) Covered Funds.--Subsection (a) applies to funds made 
     available to the Department of Defense pursuant to an 
     authorization of appropriations in this title or title I or 
     to the Department of Energy pursuant to an authorization of 
     appropriations in title XXXI.
   Subtitle D--Improved Management of Department of Defense Test and 
                         Evaluation Facilities

     SEC. 231. DEPARTMENT OF DEFENSE TEST RESOURCE MANAGEMENT 
                   CENTER.

       (a) Establishment.--(1) Subchapter I of chapter 8 of title 
     10, United States Code, is amended by adding at the end the 
     following new section:

     ``Sec. 196. Department of Defense Test Resource Management 
       Center

       ``(a) Establishment as Department of Defense Field 
     Activity.--The Secretary of Defense shall establish within 
     the Department of Defense under section 191 of this title a 
     Department of Defense Test Resource Management Center 
     (hereinafter in this section referred to as the `Center'). 
     The Secretary shall designate the Center as a Department of 
     Defense Field Activity.
       ``(b) Director and Deputy Director.--(1) At the head of the 
     Center shall be a Director, selected by the Secretary from 
     among commissioned officers of the armed forces on active 
     duty. The Director, while so serving, holds the grade of 
     lieutenant general or, in the case of an officer of the Navy, 
     vice admiral.
       ``(2) There shall be a Deputy Director of the Center, 
     selected by the Secretary from among senior civilian officers 
     and employees of the Department of Defense who have 
     substantial experience in the field of test and evaluation. 
     The Deputy Director shall act for, and exercise the powers 
     of, the Director when the Director is disabled or the 
     position of Director is vacant.
       ``(c) Duties of Director.--The Director shall have the 
     following duties:
       ``(1) To review and provide oversight of proposed 
     Department of Defense budgets and expenditures for--
       ``(A) the test and evaluation facilities and resources of 
     the Major Range and Test Facility Base of the Department of 
     Defense; and
       ``(B) all other test and evaluation facilities and 
     resources within and outside of the Department of Defense.
       ``(2) To complete and maintain the strategic plan required 
     by subsection (d).
       ``(3) To review proposed budgets under subsection (e) and 
     submit reports and certifications required by such 
     subsection.
       ``(4) To administer the Central Test and Evaluation 
     Investment Program and the program of the Department of 
     Defense for test and evaluation science and technology.
       ``(d) Strategic Plan for Department of Defense Test and 
     Evaluation Resources.--(1) Not less often than once every two 
     fiscal years, the Director, in coordination with the Director 
     of Operational Test and Evaluation, the Secretaries of the 
     military departments, and the heads of Defense Agencies with 
     test and evaluation responsibilities, shall complete a 
     strategic plan reflecting the needs of the Department of 
     Defense with respect to test and evaluation facilities and 
     resources. Each such strategic plan shall cover the period of 
     ten fiscal years beginning with the fiscal year in which the 
     plan is submitted under paragraph (3). The strategic plan 
     shall be based on a comprehensive review of the test and 
     evaluation requirements of the Department and the adequacy of 
     the test and evaluation facilities and resources of the 
     Department to meet those requirements.
       ``(2) The strategic plan shall include the following:
       ``(A) An assessment of the test and evaluation requirements 
     of the Department for the period covered by the plan.
       ``(B) An identification of performance measures associated 
     with the successful achievement of test and evaluation 
     objectives for the period covered by the plan.
       ``(C) An assessment of the test and evaluation facilities 
     and resources that will be needed to meet such requirements 
     and satisfy such performance measures.
       ``(D) An assessment of the current state of the test and 
     evaluation facilities and resources of the Department.
       ``(E) An itemization of acquisitions, upgrades, and 
     improvements necessary to ensure that the test and evaluation 
     facilities and resources of the Department are adequate to 
     meet such requirements and satisfy such performance measures.
       ``(F) An assessment of the budgetary resources necessary to 
     implement such acquisitions, upgrades, and improvements.
       ``(3) Upon completing a strategic plan under paragraph (1), 
     the Director shall submit to the Secretary of Defense a 
     report on that plan. The report shall include the plan and a 
     description of the review on which the plan is based.
       ``(4) Not later than 60 days after the date on which the 
     report is submitted under paragraph (3), the Secretary of 
     Defense shall transmit to the Committee on Armed Services and 
     Committee on Appropriations of the Senate and the Committee 
     on Armed Services and Committee on Appropriations of the 
     House of Representatives the report, together with any 
     comments with respect to the report that the Secretary 
     considers appropriate.
       ``(e) Certification of Budgets.--(1) The Secretary of 
     Defense, acting through the Under Secretary of Defense 
     (Comptroller), shall require that the Secretary of each 
     military department, the Director of Operational Test and 
     Evaluation, and the head of each Defense Agency with test and 
     evaluation responsibilities transmit such Secretary's, 
     Director's, or head's proposed budget for test and evaluation 
     activities for a fiscal year to the Director of the Center 
     for review under paragraph (2) before submitting such 
     proposed budget to the Under Secretary of Defense 
     (Comptroller).
       ``(2)(A) The Director of the Center shall review each 
     proposed budget transmitted under paragraph (1) and shall, 
     not later than January 31 of the year preceding the fiscal 
     year for which such budgets are proposed, submit to the 
     Secretary of Defense a report containing the comments of the 
     Director with respect to all such proposed budgets, together 
     with the certification of the Director as to whether such 
     proposed budgets are adequate.

[[Page H8103]]

       ``(B) The Director shall also submit, together with such 
     report and such certification, an additional certification as 
     to whether such proposed budgets provide balanced support for 
     such strategic plan.
       ``(3) The Secretary of Defense shall, not later than March 
     31 of the year preceding the fiscal year for which such 
     budgets are proposed, submit to Congress a report on those 
     proposed budgets which the Director has not certified under 
     paragraph (2)(A) to be adequate. The report shall include the 
     following matters:
       ``(A) A discussion of the actions that the Secretary 
     proposes to take, together with any recommended legislation 
     that the Secretary considers appropriate, to address the 
     inadequacy of the proposed budgets.
       ``(B) Any additional comments that the Secretary considers 
     appropriate regarding the inadequacy of the proposed budgets.
       ``(f) Supervision of Director by Under Secretary.--The 
     Director of the Center shall be subject to the supervision of 
     the Under Secretary of Defense for Acquisition, Technology, 
     and Logistics. The Director shall report directly to the 
     Under Secretary, without the interposition of any other 
     supervising official.
       ``(g) Administrative Support of Center.--The Secretary of 
     Defense shall provide the Director with administrative 
     support adequate for carrying out the Director's 
     responsibilities under this section. The Secretary shall 
     provide the support out of the headquarters activities of the 
     Department or any other activities that the Secretary 
     considers appropriate.
       ``(h) Definition.--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.''.
       (2) The table of sections at the beginning of such 
     subchapter is amended by adding at the end the following new 
     item:

``196. Department of Defense Test Resource Management Center.''.

       (b) First Strategic Plan.--The first strategic plan 
     required to be completed under subsection (d)(1) of section 
     196 of title 10, United States Code (as added by subsection 
     (a)), shall be completed not later than six months after the 
     date of the enactment of this Act.
       (c) Administration of CTEIP and DOD T&E S&T Programs.--The 
     duty of the Director of the Department of Defense Test 
     Resource Management Center to administer the programs 
     specified in subsection (c)(4) of section 196 of title 10, 
     United States Code (as added by subsection (a)), shall take 
     effect, and such programs shall be placed under control of 
     such Director, upon the beginning of the first fiscal year 
     that begins after the report on the first strategic plan 
     referred to subsection (b) is transmitted to the 
     congressional committees required by subsection (d)(4) of 
     such section 196.

     SEC. 232. OBJECTIVE FOR INSTITUTIONAL FUNDING OF TEST AND 
                   EVALUATION FACILITIES.

       (a) Funding Objective.--The Secretary of Defense shall 
     establish the objective of ensuring that, by fiscal year 
     2006--
       (1) the institutional and overhead costs of a facility or 
     resource of a military department or Defense Agency that is 
     within the Major Range and Test Facility Base are fully 
     funded through the major test and evaluation investment 
     accounts of the military department or Defense Agency, the 
     account of the Central Test and Evaluation Investment Program 
     of the Department of Defense, and other appropriate accounts 
     of the military department or Defense Agency; and
       (2) the charge to an element of the Department of Defense 
     for a use by that element of such a facility or resource for 
     testing under a particular program is not more than the 
     amount equal to the direct costs of such use by that element.
       (b) Definitions.--In this section:
       (1) 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.
       (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 any 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.
       (3) The term ``direct costs'', with respect to a facility 
     or resource within the Major Range and Test Facility Base, 
     means those costs that are directly attributable to the use 
     of the facility or resource for testing under a particular 
     program, over and above the institutional and overhead costs 
     with respect to the facility or resource.

     SEC. 233. UNIFORM FINANCIAL MANAGEMENT SYSTEM FOR DEPARTMENT 
                   OF DEFENSE TEST AND EVALUATION FACILITIES.

       (a) Requirement for System.--The Secretary of Defense shall 
     implement a single financial management and accounting system 
     for all test and evaluation facilities of the Department of 
     Defense. The Secretary shall implement such system as soon as 
     practicable, and shall establish the objective that such 
     system be implemented not later than September 30, 2006.
       (b) System Features.--The system required by subsection (a) 
     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 carrying out 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 test and evaluation facilities of the 
     Department of Defense are incurred.
       (3) Enable the Department of Defense to track the total 
     cost of test and evaluation activities.
       (4) Comply with the financial management architecture 
     established by the Secretary.

     SEC. 234. 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 period of five fiscal years beginning with fiscal 
     year 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 period of ten fiscal years beginning with fiscal year 
     2003, together with the number and qualifications of military 
     and civilian personnel necessary to carry out such workloads 
     and responsibilities.
       (3) The Under 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 Under Secretary to 
     attract and retain qualified personnel in the test and 
     evaluation workforce.
       (4) Any recommended legislation or additional special 
     authority that the Under 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. 235. 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); and
       (5) by designating the sixth sentence as paragraph (5).
                       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.

[[Page H8104]]

       (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 company.
       (B) An entity participating in a limited liability company 
     as a party to a public-private partnership under the pilot 
     program may contribute funds to the company, accept 
     contributions of funds for the company, and provide 
     materials, services, and use of facilities for research, 
     technology, and infrastructure of the company, 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) Fiscal Years 1999 and 2000 Revitalization Pilot 
     Programs Defined.--In this section, the term ``fiscal years 
     1999 and 2000 revitalization pilot programs'' means--
       (1) the pilot programs authorized by 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) the pilot programs authorized by 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) Initiative Required.--The Secretary of Defense, 
     acting through the Under Secretary of Defense for 
     Acquisition, Technology, and Logistics, shall carry out an 
     initiative, to be known as the Technology Transition 
     Initiative (hereinafter in this section referred to as the 
     `Initiative'), to facilitate the rapid transition of new 
     technologies from science and technology programs of the 
     Department of Defense into acquisition programs of the 
     Department for the production of such technologies.
       ``(b) Objectives.--The objectives of the Initiative are as 
     follows:
       ``(1) To accelerate the introduction of new technologies 
     into operational capabilities for the armed forces.
       ``(2) To successfully demonstrate new technologies in 
     relevant environments.
       ``(c) Management of Initiative.--(1) The Under Secretary 
     shall designate a senior official of the Department of 
     Defense (hereinafter in this section referred to as the 
     `Manager') to manage the Initiative.
       ``(2) In managing the Initiative, the Manager shall--
       ``(A) report directly to the Under Secretary; and
       ``(B) obtain advice and other assistance from the 
     Technology Transition Council established under subsection 
     (g).
       ``(3) The Manager shall--
       ``(A) in consultation with the Technology Transition 
     Council established under subsection (g), identify promising 
     technology transition projects that can contribute to meeting 
     Department of Defense technology goals and requirements;
       ``(B) identify potential sponsors in the Department of 
     Defense to manage such projects; and
       ``(C) provide funds under subsection (f) for those projects 
     that are selected under subsection (d)(2).
       ``(d) Selection of Projects.--(1) The science and 
     technology and acquisition executives of each military 
     department and each appropriate Defense Agency and the 
     commanders of the unified and specified combatant commands 
     may nominate technology transition projects for 
     implementation under subsection (e) and shall submit a list 
     of the projects so nominated to the Manager.
       ``(2) The Manager, in consultation with the Technology 
     Transition Council established under subsection (g), shall 
     select projects for implementation under subsection (e) from 
     among the projects on the lists submitted under paragraph 
     (1).
       ``(e) Implementation of Projects.--For each project 
     selected under subsection (d)(2), the Manager shall designate 
     a military department or Defense Agency to implement the 
     project.
       ``(f) Funding of Projects.--(1) From funds made available 
     to the Manager for the Initiative, the Manager shall, subject 
     to paragraphs (2) and (3), provide funds for each project 
     selected under subsection (d)(2) in an amount determined by 
     mutual agreement between the Manager and the acquisition 
     executive of the military department or Defense Agency 
     concerned.
       ``(2) The amount of funds provided to a project under 
     paragraph (1) shall be not less than the amount equal to 50 
     percent of the total cost of the project.
       ``(3) A project shall not be provided funds under this 
     subsection for more than four fiscal years.
       ``(g) 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 executive of each military 
     department and each Defense Agency.
       ``(B) The acquisition executive of each military 
     department.
       ``(C) The members of the Joint Requirements Oversight 
     Council.
       ``(2) The duty of the Council shall be to provide advice 
     and assistance to the Manager under this section.
       ``(3) The Council shall meet not less often than 
     semiannually to carry out its duty under paragraph (2).
       ``(h) Report.--Not later than March 31 of each year, the 
     Under Secretary shall submit to the Committee on Armed 
     Services and the Committee on Appropriations of the Senate 
     and the Committee on Armed Services and the Committee on 
     Appropriations of the House of Representatives a report on 
     the activities carried out by the Initiative during the 
     preceding fiscal year.
       ``(i) Definition.--In this section, the term `acquisition 
     executive', with respect to a military department or Defense 
     Agency, means the official designated as the senior 
     procurement executive for that military department or Defense 
     Agency for the purposes of section 16(3) of the Office of 
     Federal Procurement Policy Act (41 U.S.C. 414(3)).''.
       (2) The table of sections at the beginning of such chapter 
     is amended by inserting after the item relating to section 
     2359 the following new item:

``2359a. Technology Transition Initiative.''.

       (b) Authorization of Appropriations.--Of the amount 
     authorized to be appropriated under section 201(4), 
     $25,430,000 may be available in program element 0603826D8Z 
     for technology transition activities of the Department of 
     Defense, including the Technology Transition Initiative 
     required by section 2359a of title 10, United States Code (as 
     added by subsection (a)), the Defense Acquisition Challenge 
     Program required by section 2359b of title 10, United States 
     Code (as added by section 243), and Quick Reaction Special 
     Projects.

     SEC. 243. DEFENSE ACQUISITION CHALLENGE PROGRAM.

       (a) In General.--Chapter 139 of title 10, United States 
     Code, is amended by inserting after section 2359a (as added 
     by section 242) the following new section:

     ``Sec. 2359b. Defense Acquisition Challenge Program

       ``(a) Program Required.--(1) The Secretary of Defense, 
     acting through the Under Secretary of Defense for 
     Acquisition, Technology, and Logistics, shall carry out a 
     program to provide opportunities for the increased 
     introduction of innovative and cost-saving technology in 
     acquisition programs of the Department of Defense.

[[Page H8105]]

       ``(2) The program, to be known as the Defense Acquisition 
     Challenge Program (hereinafter in this section referred to as 
     the `Challenge Program'), shall provide any person or 
     activity within or outside the Department of Defense with the 
     opportunity to propose alternatives, to be known as challenge 
     proposals, at the component, subsystem, or system level of an 
     existing Department of Defense acquisition program that would 
     result in improvements in performance, affordability, 
     manufacturability, or operational capability of that 
     acquisition program.
       ``(b) Panels.--The Under Secretary shall establish one or 
     more panels of highly qualified scientists and engineers 
     (hereinafter in this section referred to as `Panels') to 
     provide preliminary evaluations of challenge proposals under 
     subsection (c).
       ``(c) Preliminary Evaluation by Panels.--(1) Under 
     procedures prescribed by the Under Secretary, a person or 
     activity within or outside the Department of Defense may 
     submit challenge proposals to a Panel, through the 
     unsolicited proposal process or in response to a broad agency 
     announcement.
       ``(2) The Under Secretary shall establish procedures 
     pursuant to which appropriate officials of the Department of 
     Defense may identify proposals submitted through the 
     unsolicited proposal process as challenge proposals. The 
     procedures shall provide for the expeditious referral of such 
     proposals to a Panel for preliminary evaluation under this 
     subsection.
       ``(3) The Under Secretary shall issue on an annual basis 
     not less than one such broad agency announcement inviting 
     interested parties to submit challenge proposals. Such 
     announcements may also identify particular technology areas 
     and acquisition programs that will be given priority in the 
     evaluation of challenge proposals.
       ``(4) Under procedures established by the Under Secretary, 
     a Panel shall carry out a preliminary evaluation of each 
     challenge proposal submitted in response to a broad agency 
     announcement, or submitted through the unsolicited proposal 
     process and identified as a challenge proposal in accordance 
     with paragraph (2), to determine each of the following:
       ``(A) Whether the challenge proposal has merit.
       ``(B) Whether the challenge proposal is likely to result in 
     improvements in performance, affordability, 
     manufacturability, or operational capability at the 
     component, subsystem, or system level of an acquisition 
     program.
       ``(C) Whether the challenge proposal could be implemented 
     in the acquisition program rapidly, at an acceptable cost, 
     and without unacceptable disruption to the acquisition 
     program.
       ``(5) The Under Secretary may establish procedures to 
     ensure that the Challenge Program does not become an avenue 
     for the repetitive submission of proposals that have been 
     previously reviewed and found not to have merit.
       ``(6) If a Panel determines that a challenge proposal 
     satisfies each of the criteria specified in paragraph (4), 
     the person or activity submitting that challenge proposal 
     shall be provided an opportunity to submit such challenge 
     proposal for a full review and evaluation under subsection 
     (d).
       ``(d) Full Review and Evaluation.--(1) Under procedures 
     prescribed by the Under Secretary, for each challenge 
     proposal submitted for a full review and evaluation as 
     provided in subsection (c)(6), the office carrying out the 
     acquisition program to which the proposal relates shall, in 
     consultation with the prime system contractor carrying out 
     such program, conduct a full review and evaluation of the 
     proposal.
       ``(2) The full review and evaluation shall, independent of 
     the determination of a Panel under subsection (c)(4), 
     determine each of the matters specified in subparagraphs (A), 
     (B), and (C) of such subsection. The full review and 
     evaluation shall also include--
       ``(A) an assessment of the cost of adopting the challenge 
     proposal and implementing it in the acquisition program; and
       ``(B) consideration of any intellectual property issues 
     associated with the challenge proposal.
       ``(e) Action Upon Favorable Full Review and Evaluation.--
     (1) Under procedures prescribed by the Under Secretary, each 
     challenge proposal determined under a full review and 
     evaluation to satisfy each of the criteria specified in 
     subsection (c)(4) with respect to an acquisition program 
     shall be considered by the office carrying out the applicable 
     acquisition program and the prime system contractor for 
     incorporation into the acquisition program as a new 
     technology insertion at the component, subsystem, or system 
     level.
       ``(2) The Under Secretary shall encourage the adoption of 
     each challenge proposal referred to in paragraph (1) by 
     providing suitable incentives to the office carrying out the 
     acquisition program and the prime system contractor carrying 
     out such program.
       ``(f) Access to Technical Resources.--(1) Under procedures 
     established by the Under Secretary, the technical resources 
     of the laboratories, research, development, and engineering 
     centers, test and evaluation activities, and other elements 
     of the Department may be called upon to support the 
     activities of the Challenge Program.
       ``(2) Funds available to carry out this program may be used 
     to compensate such laboratories, centers, activities, and 
     elements for technical assistance provided to a Panel 
     pursuant to paragraph (1).
       ``(g) Elimination of Conflicts of Interest.--In carrying 
     out each preliminary evaluation under subsection (c) and full 
     review under subsection (d), the Under Secretary shall ensure 
     the elimination of conflicts of interest.
       ``(h) Limitation on Use of Funds.--Funds made available for 
     the Challenge Program may be used only for activities 
     authorized by this section, and not for implementation of 
     challenge proposals.
       ``(i) Annual Report.--The Under Secretary shall submit an 
     annual report on the Challenge Program to Congress. The 
     report shall be submitted at the same time as the President 
     submits the budget for a fiscal year to Congress under 
     section 1105(a) of title 31, and shall cover the conduct of 
     the Challenge Program for the preceding fiscal year. The 
     report shall include the number and scope of challenge 
     proposals submitted, preliminarily evaluated, subjected to 
     full review and evaluation, and adopted. No report is 
     required for a fiscal year in which the Challenge Program is 
     not carried out.
       ``(j) Termination of Authority.--The Secretary may not 
     carry out the Challenge Program under this section after 
     September 30, 2007.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of such chapter is amended by inserting after the 
     item relating to section 2359a (as added by section 242) the 
     following new item:

``2359b. Defense Acquisition Challenge Program.''.

     SEC. 244. ENCOURAGEMENT OF SMALL BUSINESSES AND 
                   NONTRADITIONAL DEFENSE CONTRACTORS TO SUBMIT 
                   PROPOSALS POTENTIALLY BENEFICIAL FOR COMBATING 
                   TERRORISM.

       (a) Establishment of Outreach Program.--During fiscal years 
     2003, 2004, and 2005, the Secretary of Defense, acting 
     through the Under Secretary of Defense for Acquisition, 
     Technology, and Logistics, 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 research activities and new technologies 
     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 new 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 new technologies described 
     in subsection (b), including through the use of electronic 
     transactions to facilitate the processing of such proposals.
       (d) Review Panel.--(1) The Secretary shall appoint, under 
     the outreach program, a panel for the review and evaluation 
     of acquisition 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) Under procedures prescribed by the Under Secretary of 
     Defense for Acquisition, Technology, and Logistics, a small 
     business or nontraditional defense contractor may submit 
     acquisition proposals for consideration under the program 
     through the unsolicited proposal process or in response to a 
     broad agency announcement. The Under Secretary shall issue on 
     an annual basis not less than one such broad agency 
     announcement inviting parties to submit proposals.
       (4) Under procedures prescribed by the Under Secretary, the 
     panel shall review and evaluate acquisition proposals 
     selected by the panel. An acquisition proposal shall be 
     selected for review and evaluation if the panel determines 
     that the acquisition proposal may present a unique and 
     valuable approach 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. In carrying out its duties under this paragraph, 
     the panel may act through representatives designated by the 
     panel.
       (5) The panel shall--
       (A) not later than 60 days after the date on which the 
     panel receives an acquisition proposal described in 
     subsection (c)(4), transmit to the small business or 
     nontraditional defense contractor that submitted the proposal 
     a notification regarding whether the acquisition proposal has 
     been selected under paragraph (4) for review and evaluation;
       (B) to the maximum extent practicable, complete the review 
     and evaluation of each selected acquisition proposal not 
     later than 120 days after the date on which such proposal is 
     selected under paragraph (4); and
       (C) after completing the review and evaluation of an 
     acquisition proposal, transmit the results of that review and 
     evaluation to the small business or nontraditional defense 
     contractor that submitted the proposal.
       (6) The Secretary shall ensure that the panel, in reviewing 
     and evaluating acquisition proposals under this subsection, 
     has the authority

[[Page H8106]]

     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.
       (7) If, after completing review and evaluation of an 
     acquisition proposal, the panel determines that such proposal 
     represents a unique and valuable approach 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, 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 such proposal.
       (8) The Under Secretary of Defense for Acquisition, 
     Technology, and Logistics may provide funding for acquisition 
     proposals with respect to which the panel has submitted a 
     determination under paragraph (7) through appropriate 
     accounts of the military departments, Defense Agencies, the 
     Small Business Innovative Research program, or any other 
     acquisition program.
       (9) The Secretary of Defense shall ensure that a member of 
     the panel has no conflict of interest with respect to the 
     review and evaluation of an acquisition proposal by the 
     panel.
       (e) Nontraditional Defense Contractor Defined.--In this 
     section, 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).

     SEC. 245. VEHICLE FUEL CELL PROGRAM.

       (a) Program Required.--The Secretary of Defense shall carry 
     out a program for the development of vehicle fuel cell 
     technology.
       (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 maximize the leverage of Federal funds that are used 
     for the development of fuel cell technology.
       (c) Content of Program.--The program shall include--
       (1) development of vehicle propulsion technologies and fuel 
     cell auxiliary power units, together with pilot projects for 
     the demonstration of such technologies, as appropriate; and
       (2) development of technologies necessary to address 
     critical issues with respect to vehicle fuel cells, such as 
     issues relating to hydrogen storage and hydrogen fuel 
     infrastructure.
       (d) Cooperation With Industry.--(1) The Secretary shall 
     carry out the program in cooperation with companies selected 
     by the Secretary. The Secretary shall select such companies 
     from among--
       (A) companies in the automobile and truck manufacturing 
     industry;
       (B) companies in the business of supplying systems and 
     components to that industry; and
       (C) companies in any other industries that the Secretary 
     considers appropriate.
       (2) The Secretary may enter into a cooperative agreement 
     with one or more companies selected under paragraph (1) to 
     establish an entity for carrying out activities required by 
     subsection (c).
       (3) The Secretary shall ensure that companies referred to 
     in paragraph (1) collectively contribute, in cash or in kind, 
     not less than one-half of the total cost of carrying out the 
     program under this section.
       (e) Coordination With Other Federal Agencies.--The 
     Secretary shall carry out the program using a coordinating 
     mechanism for sharing information and resources with the 
     Department of Energy and other Federal agencies.
       (f) Intial Funding.--Of the funds authorized to be 
     appropriated by section 201(4), $10,000,000 shall be 
     available for the program required by this section.

     SEC. 246. 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 that builds upon the 
     Department's increased investment in nanotechnology research 
     and development and the National Nanotechnology Initiative; 
     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 technical goals 
     of the program; and
       (B) the progress made toward meeting those challenges and 
     achieving those 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, with other departments and agencies, 
     and with the National Nanotechnology Initiative.
       (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. 247. ACTIVITIES OF THE DEFENSE EXPERIMENTAL PROGRAM TO 
                   STIMULATE COMPETITIVE RESEARCH.

       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.''.

     SEC. 248. FOUR-YEAR EXTENSION OF AUTHORITY OF DARPA TO AWARD 
                   PRIZES FOR ADVANCED TECHNOLOGY ACHIEVEMENTS AND 
                   ADDITIONAL AUTHORITY OF MILITARY DEPARTMENTS 
                   AND DEFENSE AGENCIES TO AWARD PRIZES FOR 
                   ACHIEVEMENTS IN PROMOTING EDUCATION.

       (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) The results of consultations by the Director with 
     officials of the military departments regarding the 
     technology areas for which competitive prizes would be 
     established.
       (B) A description of the proposed goals of the competitions 
     that would be established under the program, including the 
     technology areas to be promoted by the competitions and the 
     relationship of such areas to military missions of the 
     Department of Defense.
       (C) The proposed rules for the competitions that would be 
     established under the program and a description of the 
     proposed management of the competitions.
       (D) A description of the manner in which the amounts of the 
     cash prizes awarded and claimed under the program would be 
     allocated among the accounts of the Defense Advanced Research 
     Projects Agency for recording as obligations and 
     expenditures.
       (E) For each competition that would be established under 
     the program, a statement of the reasons why the competition 
     is a preferable means of promoting basic, advanced, and 
     applied research, advanced technology development, or 
     prototype projects, rather than other means of promoting such 
     activities, including contracts, grants, cooperative 
     agreements, and other transactions.
       (c) Additional Authority to Award Cash Prizes for Promoting 
     Education in Support of DoD Missions.--(1) Chapter 139 of 
     title 10, United States Code, is amended by adding at the end 
     the following new section:

     ``Sec. 2374b. Prizes for achievements in promoting science, 
       mathematics, engineering, or technology education

       ``(a) Authority.--The Secretaries of the military 
     departments and the heads of defense agencies may each carry 
     out a program to award cash prizes in recognition of 
     outstanding achievements that are designed to promote 
     science, mathematics, engineering, or technology education in 
     support of the missions of the Department of Defense.
       ``(b) Competition Requirements.--Each program under 
     subsection (a) shall use a competitive process for the 
     selection of recipients of cash prizes.
       ``(c) Limitation.--For any single program under subsection 
     (a), the total amount made

[[Page H8107]]

     available for award of cash prizes in a fiscal year may not 
     exceed $1,000,000.
       ``(d) Relationship to Other Authority.--The program under 
     subsection (a) may be carried out in conjunction with or in 
     addition to the exercise of any other authority to acquire, 
     support, or stimulate basic and applied research, advanced 
     technology development, or prototype development projects.
       ``(e) Annual Report.--Promptly after the end of each fiscal 
     year, each Secretary of a military department and each head 
     of a defense agency carrying out a program under subsection 
     (a) shall submit to the Committees on Armed Services of the 
     Senate and the House of Representatives a report on the 
     administration of that program for that fiscal year.
       ``(f) Period of Authority.--The authority to award prizes 
     under subsection (a) shall terminate at the end of September 
     30, 2006.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by adding at the end the following new item:

``2374b. Prizes for achievements in promoting science, mathematics, 
              engineering, or technology education.''.

     SEC. 249. PLAN FOR FIVE-YEAR PROGRAM FOR ENHANCEMENT OF 
                   MEASUREMENT AND SIGNATURES INTELLIGENCE 
                   CAPABILITIES OF THE UNITED STATES THROUGH 
                   INCORPORATION OF RESULTS OF BASIC RESEARCH ON 
                   SENSORS.

       (a) Congressional 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 United States.
       (b) Plan for Research Program.--(1) Not later than March 
     31, 2003, the Secretary of Defense 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 of the United States, to the extent the results of 
     such research is applicable to such systems. Such program 
     shall include the review and assessment of basic research on 
     sensors for purpose of such incorporation, including both 
     basic research on sensors conducted by the Government and 
     basic research on sensors conducted by non-governmental 
     entities.
       (2) The plan submitted under paragraph (1) shall provide 
     that the activities to be carried out under the program 
     provided for in the plan shall be carried out by a consortium 
     consisting of such governmental and non-governmental entities 
     as the Secretary 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 five-year program provided for in the 
     plan, including cost-sharing by non-governmental participants 
     in the consortium under paragraph (2).
                  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. Grant to National Guard Youth Foundation.

                  Subtitle B--Environmental Provisions

Sec. 311. Enhancement of authority on cooperative agreements for 
              environmental purposes.
Sec. 312. Single point of contact for policy and budgeting issues 
              regarding unexploded ordnance, discarded military 
              munitions, and munitions constituents.
Sec. 313. Authority to carry out construction projects for 
              environmental responses.
Sec. 314. Procurement of environmentally preferable procurement items.
Sec. 315. Incidental taking of migratory birds during military 
              readiness activities.

  Subtitle C--Commissaries and Nonappropriated Fund Instrumentalities

Sec. 321. Authority for each military department to provide base 
              operating support to Fisher Houses.
Sec. 322. Use of commissary stores and MWR retail facilities by members 
              of National Guard serving in national emergency.
Sec. 323. Uniform funding and management of morale, welfare, and 
              recreation programs.
Sec. 324. Rebate agreements under the special supplemental food 
              program.

                 Subtitle D--Workplace and Depot Issues

Sec. 331. Notification requirements in connection with required studies 
              for conversion of commercial or industrial type functions 
              to contractor performance.
Sec. 332. Temporary authority for contractor performance of security-
              guard functions to meet increased requirements since 
              September 11, 2001.
Sec. 333. Repeal of obsolete provision regarding depot-level 
              maintenance and repair workloads that were performed at 
              closed or realigned military installations.
Sec. 334. Exclusion of certain expenditures from limitation on private 
              sector performance of depot-level maintenance.

                Subtitle E--Defense Dependents Education

Sec. 341. Assistance to local educational agencies that benefit 
              dependents of members of the Armed Forces and Department 
              of Defense civilian employees.
Sec. 342. Housing benefits for unaccompanied teachers required to live 
              at Guantanamo Bay Naval Station, Cuba.
Sec. 343. Options for funding dependent summer school programs.
Sec. 344. Impact aid eligibility for local educational agencies 
              affected by privatization of military housing.
Sec. 345. Comptroller General study of adequacy of compensation 
              provided for teachers in the Department of Defense 
              Overseas Dependents' Schools.

                   Subtitle F--Information Technology

Sec. 351. Annual submission of information regarding information 
              technology capital assets.
Sec. 352. Policy regarding acquisition of information assurance and 
              information assurance-enabled information technology 
              products.
Sec. 353. Installation and connection policy and procedures regarding 
              Defense Switch Network.

                       Subtitle G--Other Matters

Sec. 361. Distribution of monthly reports on allocation of funds within 
              operation and maintenance budget subactivities.
Sec. 362. Continuation of arsenal support program initiative.
Sec. 363. Extension of work safety demonstration program.
Sec. 364. Condition on authority of Defense Security Service to impose 
              fees on fee-for-service basis.
Sec. 365. Logistics support and services for weapon systems 
              contractors.
Sec. 366. Training range sustainment plan, Global Status of Resources 
              and Training System, and training range inventory.
Sec. 367. Engineering study and environmental analysis of road 
              modifications in vicinity of Fort Belvoir, Virginia.
Sec. 368. Reauthorization of warranty claims recovery pilot program.
Sec. 369. Expanded eligibility for loan, gift, or exchange of 
              documents, historical artifacts, and condemned or 
              obsolete combat materiel.
              Subtitle A--Authorization of Appropriations

     SEC. 301. OPERATION AND MAINTENANCE FUNDING.

       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, $23,922,251,000.
       (2) For the Navy, $29,264,939,000.
       (3) For the Marine Corps, $3,559,636,000.
       (4) For the Air Force, $27,419,488,000.
       (5) For Defense-wide activities, $14,145,310,000.
       (6) For the Army Reserve, $1,985,110,000.
       (7) For the Naval Reserve, $1,233,759,000.
       (8) For the Marine Corps Reserve, $189,532,000.
       (9) For the Air Force Reserve, $2,160,604,000.
       (10) For the Army National Guard, $4,155,067,000.
       (11) For the Air National Guard, $4,104,810,000.
       (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, $859,907,000.
       (21) For the Kaho'olawe Island Conveyance, Remediation, and 
     Environmental Restoration Trust Fund, $25,000,000.
       (22) For Defense Health Program, $14,123,038,000.
       (23) For Cooperative Threat Reduction programs, 
     $416,700,000.
       (24) For Support for International Sporting Competitions, 
     Defense, $19,000,000.
       (25) For overseas contingency operations transfer fund, 
     $17,844,000.

     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.

     SEC. 304. GRANT TO NATIONAL GUARD YOUTH FOUNDATION.

       Of the amount authorized to be appropriated by section 
     301(5) for administrative and service-

[[Page H8108]]

     wide activities for civil-military programs, the Secretary of 
     Defense may use up to $2,500,000 to make a grant to the 
     National Guard Youth Foundation to support the efforts of the 
     Foundation to mobilize individuals, groups, and organizations 
     to build and strengthen the character and competence of youth 
     in the United States.
                  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) in paragraph (1), by striking ``paragraph (2)'' and 
     inserting ``paragraph (3)'';
       (2) by redesignating paragraphs (2) and (3) as paragraphs 
     (3) and (4), respectively; and
       (3) 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 so long as 
     the period of the agreement does not exceed two years.''.

     SEC. 312. SINGLE POINT OF CONTACT FOR POLICY AND BUDGETING 
                   ISSUES REGARDING UNEXPLODED ORDNANCE, DISCARDED 
                   MILITARY MUNITIONS, AND MUNITIONS CONSTITUENTS.

       Section 2701 of title 10, United States Code, is amended by 
     adding at the end the following new subsection:
       ``(k) UXO Program Manager.--(1) The Secretary of Defense 
     shall establish a program manager who shall serve as the 
     single point of contact in the Department of Defense for 
     policy and budgeting issues involving the characterization, 
     remediation, and management of explosive and related risks 
     with respect to unexploded ordnance, discarded military 
     munitions, and munitions constituents at defense sites (as 
     such terms are defined in section 2710 of this title) that 
     pose a threat to human health or safety.
       ``(2) The authority to establish the program manager may be 
     delegated to the Secretary of a military department, who may 
     delegate the authority to the Under Secretary of that 
     military department. The authority may not be further 
     delegated.
       ``(3) The program manager may establish an independent 
     advisory and review panel that may include representatives of 
     the National Academy of Sciences, nongovernmental 
     organizations with expertise regarding unexploded ordnance, 
     discarded military munitions, or munitions constituents, the 
     Environmental Protection Agency, States (as defined in 
     section 2710 of this title), and tribal governments. If 
     established, the panel shall report annually to Congress on 
     progress made by the Department of Defense to address 
     unexploded ordnance, discarded military munitions, or 
     munitions constituents at defense sites and make such 
     recommendations as the panel considers appropriate.''.

     SEC. 313. AUTHORITY TO CARRY OUT CONSTRUCTION PROJECTS FOR 
                   ENVIRONMENTAL RESPONSES.

       (a) Restatement and Modification of Authority.--Chapter 160 
     of title 10, United States Code, is amended--
       (1) by redesignating section 2707 as section 2700 and 
     transferring such section to appear immediately after the 
     table of sections at the beginning of such chapter; and
       (2) by inserting after section 2706 the following new 
     section 2707:

     ``Sec. 2707. Environmental restoration projects for 
       environmental responses

       ``(a) Environmental Restoration Projects Authorized.--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) Treatment of Project.--Any construction, development, 
     conversion, or extension of a structure, and any installation 
     of equipment, that is included in an environmental 
     restoration project under this section may not be considered 
     military construction (as that term is defined in section 
     2801(a) of this title).
       ``(c) Source of Funds.--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) Environmental Restoration Project Defined.--In this 
     section, the term `environmental restoration project' 
     includes any construction, development, conversion, or 
     extension of a structure, or installation of equipment, in 
     direct support of a response.''.
       (b) Repeal of Superseded Provision.--Section 2810 of such 
     title is repealed.
       (c) Conforming Amendments.--Chapter 160 of such title is 
     further amended--
       (1) in section 2700 (as redesignated by subsection (a))--
       (A) by redesignating paragraphs (1) and (2) as paragraphs 
     (2) and (3), respectively; and
       (B) by inserting after ``In this chapter:'' the following 
     new paragraph:
       ``(1) The term `CERCLA' means the Comprehensive 
     Environmental Response, Compensation, and Liability Act of 
     1980 (42 U.S.C. 9601 et seq.).''; and
       (2) in section 2701(a)(2), by striking ``the Comprehensive 
     Environmental Response, Compensation, and Liability Act of 
     1980 (hereinafter in this chapter referred to as `CERCLA') 
     (42 U.S.C. 9601 et seq.)'' and inserting ``CERCLA''.
       (d) Clerical Amendments.--(1) The table of sections at the 
     beginning of chapter 160 of such title is amended--
       (A) by inserting before the item relating to section 2701 
     the following new item:

``2700. Definitions.''; and
       (B) by striking the item relating to section 2707 and 
     inserting the following new item:

``2707. Environmental restoration projects for environmental 
              responses.''.
       (2) The table of sections at the beginning of chapter 169 
     of such title is amended by striking the item relating to 
     section 2810.

     SEC. 314. PROCUREMENT OF ENVIRONMENTALLY PREFERABLE 
                   PROCUREMENT ITEMS.

       (a) Tracking System.--The Secretary of Defense shall 
     develop and implement an effective and efficient tracking 
     system to identify the extent to which the Defense Logistics 
     Agency procures environmentally preferable procurement items 
     or procurement items made with recovered material. The system 
     shall provide for the separate tracking, to the maximum 
     extent practicable, of the procurement of each category of 
     procurement items that, as of the date of the enactment of 
     this Act, has been determined to be environmentally 
     preferable or made with recovered material.
       (b) Assessment of Training and Education.--The Secretary of 
     Defense shall assess the need to establish a program, or 
     enhance existing programs, for training and educating 
     Department of Defense procurement officials to ensure that 
     they are aware of any Department requirements, preferences, 
     or goals for the procurement of environmentally preferable 
     procurement items or procurement items made with recovered 
     material.
       (c) Reporting Requirement.--Not later than March 1, 2004, 
     and each March 1 thereafter through 2007, the Secretary of 
     Defense shall submit to the Committee on Armed Services of 
     the Senate and the Committee on Armed Services of the House 
     of Representatives a report detailing the results obtained 
     from the tracking system developed under subsection (a).
       (d) Relation to Other Laws.--Nothing in this section shall 
     be construed to alter the requirements of the Solid Waste 
     Disposal Act (40 U.S.C. 6901 et seq.).
       (e) Definitions.--In this section:
       (1) 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 products that serve the same purpose. 
     The comparison may consider raw materials acquisition, 
     production, manufacturing, packaging, distribution, reuse, 
     operation, maintenance, or disposal of the product.
       (2) The terms ``procurement item'' and ``recovered 
     material'' have the meanings given such terms in section 1004 
     of the Solid Waste Disposal Act (40 U.S.C. 6903).

     SEC. 315. INCIDENTAL TAKING OF MIGRATORY BIRDS DURING 
                   MILITARY READINESS ACTIVITIES.

       (a) Interim Authority for Incidental Takings.--During the 
     period described in subsection (c), section 2 of the 
     Migratory Bird Treaty Act (16 U.S.C. 703) shall not apply to 
     the incidental taking of a migratory bird by a member of the 
     Armed Forces during a military readiness activity authorized 
     by the Secretary of Defense or the Secretary of the military 
     department concerned.
       (b) Identification of Measures to Minimize Impact of 
     Activities.--During the periods described in subsections (c) 
     and (d), the Secretary of Defense shall, in consultation with 
     the Secretary of the Interior, identify measures--
       (1) to minimize and mitigate, to the extent practicable, 
     any adverse impacts of authorized military readiness 
     activities on affected species of migratory birds; and
       (2) to monitor the impacts of such military readiness 
     activities on affected species of migratory birds.
       (c) Period of Application for Interim Authority.--The 
     period described in this subsection is the period beginning 
     on the date of the enactment of this Act and ending on the 
     date on which the Secretary of the Interior publishes in the 
     Federal Register a notice that--
       (1) regulations authorizing the incidental taking of 
     migratory birds by members of the Armed Forces have been 
     prescribed in accordance with the requirements of subsection 
     (d);
       (2) all legal challenges to the regulations and to the 
     manner of their promulgation (if any) have been exhausted as 
     provided in subsection (e); and
       (3) the regulations have taken effect.
       (d) Incidental Takings After Interim Period.--(1) Not later 
     than the expiration of the one-year period beginning on the 
     date of the enactment of this Act, the Secretary of the 
     Interior shall exercise the authority of that Secretary under 
     section 3(a) of the Migratory Bird Treaty Act (16 U.S.C. 
     704(a)) to prescribe regulations to exempt the Armed Forces 
     for the incidental taking of migratory birds during military 
     readiness activities authorized by the Secretary of Defense 
     or the Secretary of the military department concerned.
       (2) The Secretary of the Interior shall exercise authority 
     under paragraph (1) with the concurrence of the Secretary of 
     Defense.
       (e) Limitation on Judicial Review.--An action seeking 
     judicial review of regulations prescribed pursuant to this 
     section or of the manner of their promulgation must be filed 
     in the appropriate Federal court by not later than the 
     expiration of the 120-day period beginning on the date on 
     which such regulations are published in the Federal Register. 
     Upon the expiration of such period and the exhaustion of any 
     legal challenges to the regulations pursuant to any action 
     filed in such period, there shall be no further judicial 
     review of such regulations or of the manner of their 
     promulgation.
       (f) Military Readiness Activity.--(1) In this section the 
     term ``military readiness activity'' includes--
       (A) all training and operations of the Armed Forces that 
     relate to combat; and

[[Page H8109]]

       (B) the adequate and realistic testing of military 
     equipment, vehicles, weapons, and sensors for proper 
     operation and suitability for combat use.
       (2) The term does not include--
       (A) the routine operation of installation operating support 
     functions, such as administrative offices, military 
     exchanges, commissaries, water treatment facilities, storage 
     facilities, schools, housing, motor pools, laundries, morale, 
     welfare, and recreation activities, shops, and mess halls;
       (B) the operation of industrial activities; or
       (C) the construction or demolition of facilities used for a 
     purpose described in subparagraph (A) or (B).
  Subtitle C--Commissaries and Nonappropriated Fund Instrumentalities

     SEC. 321. AUTHORITY FOR EACH MILITARY DEPARTMENT TO PROVIDE 
                   BASE OPERATING SUPPORT TO FISHER HOUSES.

       Section 2493(f) of title 10, United States Code, is amended 
     to read as follows:
       ``(f) Base Operating Support.--The Secretary of a military 
     department may provide base operating support for Fisher 
     Houses associated with health care facilities of that 
     military department.''.

     SEC. 322. USE OF COMMISSARY STORES AND MWR RETAIL FACILITIES 
                   BY MEMBERS OF NATIONAL GUARD SERVING IN 
                   NATIONAL EMERGENCY.

       (a) Additional Basis for Authorized Use.--Section 1063a of 
     title 10, United States Code, is amended--
       (1) in subsection (a), by inserting ``or national 
     emergency'' after ``federally declared disaster''; and
       (2) in subsection (c), by adding at the end the following 
     new paragraph:
       ``(3) National emergency.--The term `national emergency' 
     means a national emergency declared by the President or 
     Congress.''.
       (b) Clerical Amendments.--(1) The heading of such section 
     is amended to read as follows:

     ``Sec. 1063a. Use of commissary stores and MWR retail 
       facilities: members of National Guard serving in federally 
       declared disaster or national emergency''.

       (2) The table of sections at the beginning of chapter 54 of 
     such title is amended by striking the item relating to 
     section 1063a and inserting the following new item:

``1063a. Use of commissary stores and MWR retail facilities: members of 
              National Guard serving in federally declared disaster or 
              national emergency.''.

     SEC. 323. UNIFORM FUNDING AND MANAGEMENT OF MORALE, WELFARE, 
                   AND RECREATION PROGRAMS.

       (a) In General.--Chapter 147 of title 10, United States 
     Code, is amended by adding at the end the following new 
     section:

     ``Sec. 2494. Uniform funding and management of morale, 
       welfare, and recreation programs

       ``(a) Authority for Uniform Funding and Management.--Under 
     regulations prescribed by the Secretary of Defense, funds 
     appropriated to the Department of Defense and available for 
     morale, welfare, and recreation programs may be treated as 
     nonappropriated funds and expended in accordance with laws 
     applicable to the expenditures of nonappropriated funds. When 
     made available for morale, welfare, and recreation programs 
     under such regulations, appropriated funds shall be 
     considered to be nonappropriated funds for all purposes and 
     shall remain available until expended.
       ``(b) Conditions on Availability.--Funds appropriated to 
     the Department of Defense may be made available to support a 
     morale, welfare, or recreation program only if the program is 
     authorized to receive appropriated fund support and only in 
     the amounts the program is authorized to receive.
       ``(c) Conversion of Employment Positions.--(1) The 
     Secretary of Defense may identify positions of employees in 
     morale, welfare, and recreation programs within the 
     Department of Defense who are paid with appropriated funds 
     whose status may be converted from the status of an employee 
     paid with appropriated funds to the status of an employee of 
     a nonappropriated fund instrumentality.
       ``(2) The status of an employee in a position identified by 
     the Secretary under paragraph (1) may, with the consent of 
     the employee, be converted to the status of an employee of a 
     nonappropriated fund instrumentality. An employee who does 
     not consent to the conversion may not be removed from the 
     position because of the failure to provide such consent.
       ``(3) The conversion of an employee from the status of an 
     employee paid by appropriated funds to the status of an 
     employee of a nonappropriated fund instrumentality shall be 
     without a break in service for the concerned employee. The 
     conversion shall not entitle an employee to severance pay, 
     back pay or separation pay under subchapter IX of chapter 55 
     of title 5, or be considered an involuntary separation or 
     other adverse personnel action entitling an employee to any 
     right or benefit under such title or any other provision of 
     law or regulation.
       ``(4) In this subsection, the term `an employee of a 
     nonappropriated fund instrumentality' means an employee 
     described in section 2105(c) of title 5.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of such chapter is amended by adding at the end the 
     following new item:

``2494. Uniform funding and management of morale, welfare, and 
              recreation programs.''.

     SEC. 324. 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 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''.
                 Subtitle D--Workplace and Depot Issues

     SEC. 331. NOTIFICATION REQUIREMENTS IN CONNECTION WITH 
                   REQUIRED STUDIES FOR CONVERSION OF COMMERCIAL 
                   OR INDUSTRIAL TYPE FUNCTIONS TO CONTRACTOR 
                   PERFORMANCE.

       Subsection (c) of section 2461 of title 10, United States 
     Code, is amended to read as follows:
       ``(c) Submission of Analysis Results.--(1) Upon the 
     completion of an analysis of a commercial or industrial type 
     function described in subsection (a) for possible change to 
     performance by the private sector, the Secretary of Defense 
     shall submit to Congress a report containing the results of 
     the analysis, including the results of the examinations 
     required by subsection (b)(3).
       ``(2) The report shall also contain the following:
       ``(A) The date when the analysis of the function was 
     commenced.
       ``(B) The Secretary's certification that the Government 
     calculation of the cost of performance of the function by 
     Department of Defense civilian employees is based on an 
     estimate of the most cost effective manner for performance of 
     the function by Department of Defense civilian employees.
       ``(C) The number of Department of Defense civilian 
     employees who were performing the function when the analysis 
     was commenced and the number of such employees whose 
     employment was or will be terminated or otherwise affected by 
     changing to performance of the function by the private sector 
     or by implementation of the most efficient organization of 
     the function.
       ``(D) The Secretary's certification that the factors 
     considered in the examinations performed under subsection 
     (b)(3), and in the making of the decision regarding changing 
     to performance of the function by the private sector or 
     retaining performance in the most efficient organization of 
     the function, did not include any predetermined personnel 
     constraint or limitation in terms of man years, end strength, 
     full-time equivalent positions, or maximum number of 
     employees.
       ``(E) A statement of the potential economic effect of 
     implementing the decision regarding changing to performance 
     of the function by the private sector or retaining 
     performance in the most efficient organization of the 
     function on each affected local community, as determined in 
     the examination under subsection (b)(3)(B)(ii).
       ``(F) A schedule for completing the change to performance 
     of the function by the private sector or implementing the 
     most efficient organization of the function.
       ``(G) In the case of a commercial or industrial type 
     function performed at a Center of Industrial and Technical 
     Excellence designated under section 2474(a) of this title or 
     an Army ammunition plant, a description of the effect that 
     the manner of performance of the function, and administration 
     of the resulting contract if any, will have on the overhead 
     costs of the center or ammunition plant, as the case may be.
       ``(H) The Secretary's certification that the entire 
     analysis is available for examination.
       ``(3)(A) If a decision is made to change the commercial or 
     industrial type function that was the subject of the analysis 
     to performance by the private sector, the change of the 
     function to contractor performance may not begin until after 
     the submission of the report required by paragraph (1).
       ``(B) Notwithstanding subparagraph (A), in the case of a 
     commercial or industrial type function performed at a Center 
     of Industrial and Technical Excellence designated under 
     section 2474(a) of this title or an Army ammunition plant, 
     the change of the function to contractor performance may not 
     begin until at least 60 days after the submission of the 
     report.''.

     SEC. 332. TEMPORARY AUTHORITY FOR CONTRACTOR PERFORMANCE OF 
                   SECURITY-GUARD FUNCTIONS TO MEET INCREASED 
                   REQUIREMENTS SINCE SEPTEMBER 11, 2001.

       (a) Contract Authority.--The Secretary of Defense or the 
     Secretary of a military department may enter into a contract 
     for any increased performance of security-guard functions at 
     a military installation or facility under the jurisdiction of 
     the Secretary undertaken in response to the terrorist attacks 
     on the United States on September 11, 2001, and may waive the 
     prohibition under section 2465(a) of title 10, United States 
     Code, with respect to such contract, if--
       (1) without the contract, members of the Armed Forces are 
     or would be used to perform the increased security-guard 
     functions; and
       (2) the Secretary concerned determines that--
       (A) the recruiting and training standards for the personnel 
     who are to perform the security-guard functions at the 
     installation or facility under the contract are comparable to 
     the recruiting and training standards for the personnel of 
     the Department of Defense who perform security-guard 
     functions at military installations and facilities under the 
     jurisdiction of the Secretary;
       (B) the contractor personnel performing such functions 
     under the contract will be effectively supervised, reviewed, 
     and evaluated; and
       (C) the performance of such functions by the contractor 
     personnel will not result in a reduction in the security of 
     the installation or facility.

[[Page H8110]]

       (b) Increased Performance Defined.--In this section, the 
     term ``increased performance'', with respect to security-
     guard functions at a military installation or facility, 
     means--
       (1) in the case of an installation or facility where no 
     security-guard functions were performed as of September 10, 
     2001, the entire scope or extent of the performance of 
     security-guard functions at the installation or facility 
     after such date; and
       (2) in the case of an installation or facility where 
     security-guard functions were performed within a lesser scope 
     of requirements or to a lesser extent as of September 10, 
     2001, than after such date, the increment of the performance 
     of security-guard functions at the installation or facility 
     that exceeds such lesser scope of requirements or extent of 
     performance.
       (c) Expiration of Authority.--The authority for contractor 
     performance of security-guard functions under this section 
     shall terminate at the end of the three-year period beginning 
     on the date of the enactment of this Act. The term of any 
     contract entered into using the authority provided by this 
     section may not extend beyond the end of such period.
       (d) Needs Assessment and Plan.--Not later than 180 days 
     after the date of the enactment of this Act, the Secretary of 
     Defense shall--
       (1) identify any requirements for the performance of 
     security-guard functions at military installations and 
     facilities under the jurisdiction of the Secretary or the 
     Secretary of a military department that are expected to 
     continue for more than three years after the date of the 
     enactment of this Act and, in the absence of further action 
     by the Secretary or Congress, would otherwise be performed by 
     members of the Armed Forces; and
       (2) submit to the congressional defense committees a plan 
     for meeting those requirements on a long-term basis.

     SEC. 333. REPEAL OF OBSOLETE PROVISION REGARDING DEPOT-LEVEL 
                   MAINTENANCE AND REPAIR WORKLOADS THAT WERE 
                   PERFORMED AT CLOSED OR REALIGNED MILITARY 
                   INSTALLATIONS.

       (a) Repeal.--Section 2469a of title 10, United States Code, 
     is repealed.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of chapter 146 of such title is amended by striking 
     the item relating to section 2469a.

     SEC. 334. EXCLUSION OF CERTAIN EXPENDITURES FROM LIMITATION 
                   ON PRIVATE SECTOR PERFORMANCE OF DEPOT-LEVEL 
                   MAINTENANCE.

       Section 2474(f) of title 10, United States Code, is 
     amended--
       (1) in paragraph (1), by striking ``Amounts expended out of 
     funds described in paragraph (2) for the performance of a 
     depot-level maintenance and repair workload by non-Federal 
     Government personnel at a Center of Industrial and Technical 
     Excellence'' and inserting ``Amounts expended for the 
     performance of a depot-level maintenance and repair workload 
     by non-Federal Government personnel at a Center of Industrial 
     and Technical Excellence under any contract entered into 
     during fiscal years 2003 through 2006'';
       (2) by striking paragraph (2); and
       (3) by redesignating paragraph (3) as paragraph (2).
                Subtitle E--Defense Dependents Education

     SEC. 341. 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(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 educational agencies assistance 
     for fiscal year 2003 of--
       (1) that agency's eligibility for the assistance; and
       (2) the amount of the assistance 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. 342. HOUSING BENEFITS FOR UNACCOMPANIED TEACHERS 
                   REQUIRED TO LIVE AT GUANTANAMO BAY NAVAL 
                   STATION, CUBA.

       Section 7 of the Defense Department Overseas Teachers Pay 
     and Personnel Practices Act (20 U.S.C. 905) is amended by 
     adding at the end the following new subsection:
       ``(f)(1) A teacher assigned to teach at Guantanamo Bay 
     Naval Station, Cuba, who is not accompanied at such station 
     by any dependent 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.
       ``(2) For any period for which military family housing is 
     leased under paragraph (1) to a teacher described in such 
     paragraph, the teacher shall receive a quarters allowance in 
     the amount determined under subsection (b). The teacher is 
     entitled to such quarters allowance without regard to whether 
     other Government furnished quarters are available for 
     occupancy by the teacher without charge to the teacher.''.

     SEC. 343. 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. 344. IMPACT AID ELIGIBILITY FOR 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) Eligibility.--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 (iii), 
     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.
       ``(ii) Amount of payment.--The amount of a payment to a 
     heavily impacted local educational agency for a fiscal year 
     by reason of the application of clause (i), and calculated in 
     accordance with subparagraph (D) or (E) (as the case may be), 
     shall be based on the number of children in average daily 
     attendance in the schools of such agency for the fiscal year.
       ``(iii) 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.''.

     SEC. 345. 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 F--Information Technology

     SEC. 351. ANNUAL SUBMISSION OF INFORMATION REGARDING 
                   INFORMATION TECHNOLOGY CAPITAL ASSETS.

       (a) Requirement To Submit Information.--Not later than 30 
     days after the date on which the President submits the budget 
     for a fiscal year to Congress pursuant to section 1105 of 
     title 31, United States Code, the Secretary of Defense shall 
     submit to Congress information on the following information 
     technology capital assets, including information technology 
     capital assets that are a national security system, of the 
     Department of Defense:
       (1) Information technology capital assets not covered by 
     paragraph (2) that have an estimated total cost for the 
     fiscal year for which the budget is submitted in excess of 
     $10,000,000.
       (2) Information technology capital assets that have an 
     estimated total cost for the fiscal year for which the budget 
     is submitted in excess of $30,000,000 and an estimated total 
     life cycle cost (as computed in fiscal year 2003 constant 
     dollars) in excess of $120,000,000.
       (b) Required Information For Low-Threshold Assets.--With 
     respect to each information technology capital asset 
     described in subsection (a)(1), the Secretary of Defense 
     shall include the following information:
       (1) The name of the information technology capital asset.
       (2) The function of the asset.
       (3) The total cost of the asset for the fiscal year for 
     which the budget is submitted, the current fiscal year, and 
     the preceding fiscal year.
       (c) Required Information For High-Threshold Assets.--With 
     respect to each information technology capital asset 
     described in subsection (a)(2), the Secretary of Defense 
     shall include the following information:
       (1) The name and identifying acronym of the information 
     technology capital asset.
       (2) The date of initiation of the asset.
       (3) A summary of performance measurements and metrics.
       (4) The total amount of funds, by appropriation account, 
     appropriated and obligated for prior fiscal years, with a 
     specific breakout of such information for the two preceding 
     fiscal years.
       (5) The funds, by appropriation account, requested for the 
     next fiscal year.
       (6) The name of each prime contractor and the work to be 
     performed.
       (7) Program management and management oversight 
     information.

[[Page H8111]]

       (8) The original baseline cost and most current baseline 
     information.
       (9) Information regarding compliance with the provisions of 
     law enacted or amended by the Government Performance Results 
     Act of 1993 (Public Law 103-62; 107 Stat. 285) and the 
     Clinger-Cohen Act of 1996 (divisions D and E of Public Law 
     104-106; 110 Stat. 642).
       (d) Total Cost Determinations.--In estimating the total 
     cost for a fiscal year or total life cycle cost of an 
     information technology capital asset, the Secretary of 
     Defense shall consider research and development costs, 
     procurement costs, and operation and maintenance costs 
     related to the information technology capital asset.
       (e) Definitions.--In this section:
       (1) The term ``information technology'' has the meaning 
     given that term in section 11101 of title 40, United States 
     Code.
       (2) The term ``capital asset'' has the meaning given that 
     term in Office of Management and Budget Circular A-11.
       (3) The term ``national security system'' has the meaning 
     given that term in section 11103 of title 40, United States 
     Code.

     SEC. 352. POLICY REGARDING ACQUISITION OF INFORMATION 
                   ASSURANCE AND INFORMATION ASSURANCE-ENABLED 
                   INFORMATION TECHNOLOGY PRODUCTS.

       (a) Establishment of Policy.--The Secretary of Defense 
     shall establish a policy to limit the acquisition of 
     information assurance and information assurance-enabled 
     information technology products to those products that have 
     been evaluated and validated in accordance with appropriate 
     criteria, schemes, or programs.
       (b) Waiver.--As part of the policy, the Secretary of 
     Defense shall authorize specified officials of the Department 
     of Defense to waive the limitations of the policy upon a 
     determination in writing that application of the limitations 
     to the acquisition of a particular information assurance or 
     information assurance-enabled information technology product 
     would not be in the national security interest of the United 
     States.
       (c) Implementation.--The Secretary of Defense shall ensure 
     that the policy is uniformly implemented throughout the 
     Department of Defense.

     SEC. 353. 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 may approve a 
     waiver or grant of interim authority under paragraph (1). The 
     authority to approve such a waiver or grant of interim 
     authority may not be delegated.
       (3) The Assistant Secretary of Defense for Command, 
     Control, Communications, and Intelligence shall consult with 
     the Chairman of the Joint Chiefs of Staff before approving 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.--On an ongoing basis, the 
     Secretary of Defense shall--
       (1) 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
       (2) develop and implement a plan to eliminate or mitigate 
     such risks as identified.
       (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.
                       Subtitle G--Other Matters

     SEC. 361. DISTRIBUTION OF MONTHLY REPORTS ON ALLOCATION OF 
                   FUNDS WITHIN OPERATION AND MAINTENANCE BUDGET 
                   SUBACTIVITIES.

       (a) Designation of Recipients.--Subsection (a) of section 
     228 of title 10, United States Code, is amended by striking 
     ``to Congress'' and inserting ``to the congressional defense 
     committees''.
       (b) Congressional Defense Committees Defined.--Subsection 
     (e) of such section is amended--
       (1) by striking ``(e) O&M Budget Activity Defined.--For 
     purposes of this section, the'' and inserting the following:
       ``(e) Definitions.--In this section:
       ``(1) The''; and
       (2) by adding at the end the following new paragraph:
       ``(2) The term `congressional defense committees' means the 
     Committee on Armed Services and the Committee on 
     Appropriations of the Senate and the Committee on Armed 
     Services and the Committee on Appropriations of the House of 
     Representatives.''.

     SEC. 362. 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. 363. EXTENSION OF WORK SAFETY DEMONSTRATION PROGRAM.

       (a) Extension.--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''.
       (b) Revision of Reporting Requirements.--Subsection (e)(2) 
     of such section is further amended by striking ``fiscal year 
     2002'' both places it appears and inserting ``fiscal years 
     2002 and 2003''.

     SEC. 364. CONDITION ON AUTHORITY OF DEFENSE SECURITY SERVICE 
                   TO IMPOSE FEES ON FEE-FOR-SERVICE BASIS.

       The Secretary of Defense may not authorize the Defense 
     Security Service to impose fees on a fee-for-service basis 
     for the investigative services provided by the Defense 
     Security Service unless the Secretary certifies in advance to 
     the Committee on Armed Services of the House of 
     Representatives and the Committee on Armed Services of the 
     Senate that the Defense Security Service has the financial 
     systems in place to determine accurately the cost of such 
     services.

     SEC. 365. LOGISTICS SUPPORT AND SERVICES FOR WEAPON SYSTEMS 
                   CONTRACTORS.

       (a) Authority.--The Secretary of Defense may make available 
     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 to be provided under this section to a contractor in 
     support of the performance of a contract described in 
     subsection (a) shall be provided under a separate contract 
     that is entered into by the Director of the Defense Logistics 
     Agency with that contractor. The requirements of section 
     2208(h) of title 10, United States Code, and the regulations 
     prescribed pursuant to such section shall apply to the 
     contract between the Director of the Defense Logistics Agency 
     and the 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 of Defense 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--

[[Page H8112]]

       (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) 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.
       (5) 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.
       (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 
     date specified in paragraph (1) or any obligation to provide 
     logistics support and logistics services under that contract; 
     or
       (B) any authority 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 specified in paragraph (1) 
     or to provide logistics support and logistics services to the 
     contractor with respect to that contract in accordance with 
     this section.

     SEC. 366. TRAINING RANGE SUSTAINMENT PLAN, GLOBAL STATUS OF 
                   RESOURCES AND TRAINING SYSTEM, AND TRAINING 
                   RANGE INVENTORY.

       (a) Plan Required.--(1) The Secretary of Defense shall 
     develop a comprehensive plan for using existing authorities 
     available to the Secretary of Defense and the Secretaries of 
     the military departments to address training constraints 
     caused by limitations on the use of military lands, marine 
     areas, and airspace that are available in the United States 
     and overseas for training of the Armed Forces.
       (2) As part of the preparation of the plan, the Secretary 
     of Defense shall conduct the following:
       (A) An assessment of current and future training range 
     requirements of the Armed Forces.
       (B) An evaluation of the adequacy of current Department of 
     Defense resources (including virtual and constructive 
     training assets as well as military lands, marine areas, and 
     airspace available in the United States and overseas) to meet 
     those current and future training range requirements.
       (3) The plan shall include the following:
       (A) Proposals to enhance training range capabilities and 
     address any shortfalls in current Department of Defense 
     resources identified pursuant to the assessment and 
     evaluation conducted under paragraph (2).
       (B) Goals and milestones for tracking planned actions and 
     measuring progress.
       (C) Projected funding requirements for implementing planned 
     actions.
       (D) Designation of an office in the Office of the Secretary 
     of Defense and in each of the military departments that will 
     have lead responsibility for overseeing implementation of the 
     plan.
       (4) At the same time as the President submits to Congress 
     the budget for fiscal year 2004, the Secretary of Defense 
     shall submit to Congress a report describing the progress 
     made in implementing this subsection, including--
       (A) the plan developed under paragraph (1);
       (B) the results of the assessment and evaluation conducted 
     under paragraph (2); and
       (C) any recommendations that the Secretary may have for 
     legislative or regulatory changes to address training 
     constraints identified pursuant to this section.
       (5) At the same time as the President submits to Congress 
     the budget for each of fiscal years 2005 through 2008, the 
     Secretary shall submit to Congress a report describing the 
     progress made in implementing the plan and any additional 
     actions taken, or to be taken, to address training 
     constraints caused by limitations on the use of military 
     lands, marine areas, and airspace.
       (b) Readiness Reporting Improvement.--Not later than June 
     30, 2003, the Secretary of Defense, using existing measures 
     within the authority of the Secretary, shall submit to 
     Congress a report on the plans of the Department of Defense 
     to improve the Global Status of Resources and Training System 
     to reflect the readiness impact that training constraints 
     caused by limitations on the use of military lands, marine 
     areas, and airspace have on specific units of the Armed 
     Forces.
       (c) Training Range Inventory.--(1) The Secretary of Defense 
     shall develop and maintain a training range inventory for 
     each of the Armed Forces--
       (A) to identify all available operational training ranges;
       (B) to identify all training capacities and capabilities 
     available at each training range; and
       (C) to identify training constraints caused by limitations 
     on the use of military lands, marine areas, and airspace at 
     each training range.
       (2) The Secretary of Defense shall submit an initial 
     inventory to Congress at the same time as the President 
     submits the budget for fiscal year 2004 and shall submit an 
     updated inventory to Congress at the same time as the 
     President submits the budget for fiscal years 2005 through 
     2008.
       (d) GAO Evaluation.--The Secretary of Defense shall 
     transmit copies of each report required by subsections (a) 
     and (b) to the Comptroller General. Within 60 days after 
     receiving a report, the Comptroller General shall submit to 
     Congress an evaluation of the report.
       (e) Armed Forces Defined.--In this section, the term 
     ``Armed Forces'' means the Army, Navy, Air Force, and Marine 
     Corps.

     SEC. 367. 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 made available for the study 
     and analysis required by subsection (a).

     SEC. 368. REAUTHORIZATION OF WARRANTY CLAIMS RECOVERY PILOT 
                   PROGRAM.

       Section 391 of the National Defense Authorization Act for 
     Fiscal Year 1998 (Public Law 105-85; 10 U.S.C. 2304 note), as 
     amended by section 364 of Public Law 107-107 (115 Stat. 
     1068), is further amended--
       (1) in subsection (f), by striking ``September 30, 2003'' 
     and inserting ``September 30, 2004''; and
       (2) by striking subsection (g).

     SEC. 369. EXPANDED ELIGIBILITY FOR LOAN, GIFT, OR EXCHANGE OF 
                   DOCUMENTS, HISTORICAL ARTIFACTS, AND CONDEMNED 
                   OR OBSOLETE COMBAT MATERIEL.

       Section 2572(a)(3) of title 10, United States Code, is 
     amended by inserting before the period the following: ``or a 
     nonprofit military aviation heritage foundation or 
     association incorporated in a State''.
              TITLE IV--MILITARY PERSONNEL AUTHORIZATIONS

                       Subtitle A--Active Forces

Sec. 401. End strengths for active forces.
Sec. 402. Revision in permanent end strength minimum levels.
Sec. 403. Expanded authority for administrative increases in statutory 
              active-duty end strengths.
Sec. 404. General and flag officer management.
Sec. 405. Extension of certain authorities relating to management of 
              numbers of general and flag officers in certain grades.
Sec. 406. 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 limitation on non-dual status technicians.

              Subtitle C--Authorization of Appropriations

Sec. 421. Authorization of appropriations for military personnel.
                       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, 480,000.
       (2) The Navy, 375,700.
       (3) The Marine Corps, 175,000.
       (4) The Air Force, 359,000.

     SEC. 402. REVISION IN PERMANENT END STRENGTH MINIMUM LEVELS.

       (a) Revised End Strength Floors.--Subsection (b) of section 
     691 of title 10, United States Code, is amended--
       (1) in paragraph (2), by striking ``376,000'' and inserting 
     ``375,700'';
       (2) in paragraph (3), by striking ``172,600'' and inserting 
     ``175,000''; and
       (3) in paragraph (4), by striking ``358,800'' and inserting 
     ``359,000''.
       (b) Repeal of Secretary of Defense Flexibility Authority.--
     Subsection (e) of such section is repealed.

     SEC. 403. [H403]. EXPANDED AUTHORITY FOR ADMINISTRATIVE 
                   INCREASES IN STATUTORY ACTIVE-DUTY END 
                   STRENGTHS.

       (a) Secretary of Defense Authority.--Subsection (c)(1) of 
     section 115 of title 10, United

[[Page H8113]]

     States Code, is amended by striking ``2 percent'' and 
     inserting ``3 percent''.
       (b) Service Secretary Authority.--Such section is further 
     amended by inserting after subsection (e) the following new 
     subsection:
       ``(f) Upon determination by the Secretary of a military 
     department that such action would enhance manning and 
     readiness in essential units or in critical specialties or 
     ratings, the Secretary may increase the end strength 
     authorized pursuant to subsection (a)(1)(A) for a fiscal year 
     for the armed force under the jurisdiction of that Secretary 
     or, in the case of the Secretary of the Navy, for any of the 
     armed forces under the jurisdiction of that Secretary. Any 
     such increase for a fiscal year--
       ``(1) shall be by a number equal to not more than 2 percent 
     of such authorized end strength; and
       ``(2) shall be counted as part of the increase for that 
     armed force for that fiscal year authorized under subsection 
     (c)(1).''.

     SEC. 404. GENERAL AND FLAG OFFICER MANAGEMENT.

       (a) Exclusion of Senior Military Assistant to the Secretary 
     of Defense from Limitation on Active Duty Officers in Grades 
     Above Major General and Rear Admiral.--Effective on the date 
     specified in subsection (d), section 525(b) of title 10, 
     United States Code, is amended by adding at the end the 
     following new paragraph:
       ``(8) An officer while serving in a position designated by 
     the Secretary of Defense as Senior Military Assistant to the 
     Secretary of Defense, if serving in the grade of lieutenant 
     general or vice admiral, is in addition to the number that 
     otherwise would be permitted for that officer's armed force 
     for that grade under paragraph (1) or (2). Only one officer 
     may be designated as Senior Military Assistant to the 
     Secretary of Defense for purposes of this paragraph.''.
       (b) Increase in Number of Lieutenant Generals Authorized 
     for the Marine Corps.--Paragraph (2)(B) of such section is 
     amended by striking ``16.2 percent'' and inserting ``17.5 
     percent''.
       (c) Review of Active Duty and Reserve General and Flag 
     Officer Authorizations.--(1) The Secretary of Defense shall 
     submit to Congress a report containing any recommendations of 
     the Secretary (together with the rationale of the Secretary 
     for the recommendations) concerning the following:
       (A) Revision of the limitations on general and flag officer 
     grade authorizations and distribution in grade prescribed by 
     sections 525, 526, and 12004 of title 10, United States Code.
       (B) Statutory designation of the positions and grades of 
     any additional general and flag officers in the commands 
     specified in chapter 1006 of title 10, United States Code, 
     and the reserve component offices specified in sections 3038, 
     5143, 5144, and 8038 of such title.
       (2) The provisions of subsection (b) through (e) of section 
     1213 of the National Defense Authorization Act for Fiscal 
     Year 1997 (Public Law 104-201; 110 Stat. 2694) shall apply to 
     the report under paragraph (1) in the same manner as they 
     applied to the report required by subsection (a) of that 
     section.
       (d) Effective Date.--The amendment made by subsection (a) 
     shall take effect on the date of the receipt by Congress of 
     the report required by subsection (c).

     SEC. 405. EXTENSION OF CERTAIN AUTHORITIES RELATING TO 
                   MANAGEMENT OF NUMBERS OF GENERAL AND FLAG 
                   OFFICERS IN CERTAIN GRADES.

       (a) Senior Joint Officer Positions.--Section 604(c) of 
     title 10, United States Code, is amended by striking 
     ``September 30, 2003'' and inserting ``December 31, 2004''.
       (b) Distribution of Officers on Active Duty in General and 
     Flag Officer Grades.--Section 525(b)(5)(C) of such title is 
     amended by striking ``September 30, 2003'' and inserting 
     ``December 31, 2004''.
       (c) Authorized Strength for General and Flag Officers on 
     Active Duty.--Section 526(b)(3) of such title is amended by 
     striking ``October 1, 2002'' and inserting ``December 31, 
     2004''.

     SEC. 406. 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, 24,562.
       (2) The Army Reserve, 14,070.
       (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 National Guard of the United States, 
     24,102.
       (2) For the Army Reserve, 6,599.
       (3) For the Air National Guard of the United States, 
     22,495.
       (4) For the Air Force Reserve, 9,911.

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

       (a) Army.--The number of non-dual status technicians 
     employed by the reserve components of the Army as of 
     September 30, 2003, may not exceed the following:
       (1) For the Army Reserve, 995.
       (2) For the Army National Guard of the United States, 
     1,600, to be counted within the limitation specified in 
     section 10217(c)(2) of title 10, United States Code.
       (b) Air Force.--The number of non-dual status technicians 
     employed by the reserve components of the Army and the Air 
     Force as of September 30, 2003, may not exceed the following:
       (1) For the Air Force Reserve, 90.
       (2) For the Air National Guard of the United States, 350, 
     to be counted within the limitation specified in section 
     10217(c)(2) of title 10, United States Code.
       (c) Non-Dual Status Technicians Defined.--In this section, 
     the term ``non-dual status technician'' has the meaning given 
     that term in section 10217(a) of title 10, United States 
     Code.
       (d) Technical Amendments.--Section 10217(c)(2) of title 10, 
     United States Code, is amended--
       (1) in the first sentence, by striking ``Effective October 
     1, 2002, the'' and inserting ``The''; and
       (2) in the second sentence, by striking ``after the 
     preceding sentence takes effect''.
              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 $93,829,525,000. 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 good-of-the-service waiver authority for 
              officers appointed to a Reserve Chief or Guard Director 
              position.
Sec. 502. Exclusion of certain officers from limitation on authority to 
              grant a waiver of required completion or sequencing for 
              joint professional military education.
Sec. 503. Extension and codification of authority for recall of retired 
              aviators to active duty.
Sec. 504. Grades for certain positions.
Sec. 505. Reinstatement of authority to reduce three-year time-in-grade 
              requirement for retirement in grade for officers in 
              grades above major and lieutenant commander.
Sec. 506. Authority to require that an officer take leave pending 
              review of a recommendation for removal by a board of 
              inquiry.

                Subtitle B--Reserve Component Management

Sec. 511. Reviews of National Guard strength accounting and management 
              and other issues.
Sec. 512. Courts-martial for the National Guard when not in Federal 
              service.
Sec. 513. Fiscal year 2003 funding for military personnel costs of 
              reserve component Special Operations Forces personnel 
              engaged in humanitarian assistance activities relating to 
              clearing of landmines.
Sec. 514. Use of Reserves to perform duties relating to defense against 
              terrorism.

[[Page H8114]]

Sec. 515. Repeal of prohibition on use of Air Force Reserve AGR 
              personnel for Air Force base security functions.

         Subtitle C--Reserve Component Officer Personnel Policy

Sec. 521. Eligibility for consideration for promotion to grade of major 
              general for certain reserve component brigadier generals 
              who do not otherwise qualify for consideration for 
              promotion under the one-year rule.
Sec. 522. Authority for limited extension of medical deferment of 
              mandatory retirement or separation of reserve component 
              officers.

        Subtitle D--Enlistment, Education, and Training Programs

Sec. 531. Enlistment incentives for pursuit of skills to facilitate 
              national service.
Sec. 532. Authority for phased increase to 4,400 in authorized 
              strengths for the service academies.
Sec. 533. Enhancement of reserve component delayed training program.
Sec. 534. Review of Armed Forces programs for preparation for, 
              participation in, and conduct of athletic competitions.
Sec. 535. Repeal of bar to eligibility of Army College First program 
              participants for benefits under student loan repayment 
              program.

           Subtitle E--Decorations, Awards, and Commendations

Sec. 541. Waiver of time limitations for award of Army Distinguished-
              Service Cross to certain persons.
Sec. 542. Option to convert award of Armed Forces Expeditionary Medal 
              awarded for Operation Frequent Wind to Vietnam Service 
              Medal.
Sec. 543. Korea Defense Service Medal.
Sec. 544. Commendation of military chaplains.

                   Subtitle F--Administrative Matters

Sec. 551. Staffing and funding for Defense Prisoner of War/Missing 
              Personnel Office.
Sec. 552. Three-year freeze on reductions of personnel of agencies 
              responsible for review and correction of military 
              records.
Sec. 553. Authority for acceptance of voluntary services of individuals 
              as proctors for administration of Armed Services 
              Vocational Aptitude Battery test.
Sec. 554. Extension of temporary early retirement authority.

   Subtitle G--Matters Relating to Minorities and Women in the Armed 
                                 Forces

Sec. 561. Surveys of racial and ethnic issues and of gender issues in 
              the Armed Forces.
Sec. 562. Annual report on status of female members of the Armed 
              Forces.
Sec. 563. Wear of abayas by female members of the Armed Forces in Saudi 
              Arabia.

                          Subtitle H--Benefits

Sec. 571. Department of Defense support for persons participating in 
              military funeral honors details.
Sec. 572. Emergency leave of absence program.
Sec. 573. Enhanced flexibility in medical loan repayment program.
Sec. 574. Destinations authorized for Government paid transportation of 
              enlisted personnel for rest and recuperation absence upon 
              extending duty at designated locations overseas.
Sec. 575. Vehicle storage in lieu of transportation when member is 
              ordered to a nonforeign duty station outside continental 
              United States.

                          Subtitle I--Reports

Sec. 581. Quadrennial quality of life review.
Sec. 582. Report on desirability and feasibility of consolidating 
              separate courses of basic instruction for judge 
              advocates.
Sec. 583. Reports on efforts to resolve status of Captain Michael Scott 
              Speicher, United States Navy.
Sec. 584. Report on volunteer services of members of the reserve 
              components in emergency response to the terrorist attacks 
              of September 11, 2001.
                  Subtitle A--Officer Personnel Policy

     SEC. 501. EXTENSION OF GOOD-OF-THE-SERVICE WAIVER AUTHORITY 
                   FOR OFFICERS APPOINTED TO A RESERVE CHIEF OR 
                   GUARD DIRECTOR POSITION.

       (a) Waiver of Requirement for Significant Joint Duty 
     Experience.--Sections 3038(b)(4), 5143(b)(4), 5144(b)(4), 
     8038(b)(4), and 10506(a)(3)(D) of title 10, United States 
     Code, are each amended by striking ``October 1, 2003'' and 
     inserting ``December 31, 2004''.
       (b) Report on Future Implementation of Requirement.--Not 
     later than May 1, 2003, the Secretary of Defense shall submit 
     to the Committee on Armed Services of the Senate and the 
     Committee on Armed Services of the House of 
     Representatives a report--
       (1) setting forth the steps that have been taken by the 
     Secretary, the Secretaries of the military departments, and 
     the Chairman of the Joint Chiefs of Staff to ensure that 
     Reserve and National Guard officers receive significant joint 
     duty experience; and
       (2) specifying the date by which no further extension of 
     the waiver authority under the sections amended by subsection 
     (a) will be required.

     SEC. 502. EXCLUSION OF CERTAIN OFFICERS FROM LIMITATION ON 
                   AUTHORITY TO GRANT A WAIVER OF REQUIRED 
                   COMPLETION OR SEQUENCING FOR JOINT PROFESSIONAL 
                   MILITARY EDUCATION.

       (a) Exclusion From Limitation.--There shall be excluded 
     from counting for purposes of the 10-percent limitation set 
     forth in the last sentence of section 661(c)(3)(D) of title 
     10, United States Code (limiting the authority to grant 
     waivers related to sequencing or completion of program of 
     joint professional military education), any officer selected 
     for the joint specialty who--
       (1) on December 28, 2001, met the requirements of section 
     661(c) of such title for nomination for the joint specialty, 
     but who had not been nominated for that specialty before that 
     date by the Secretary of the military department concerned; 
     and
       (2) before the date of the enactment of this Act was 
     automatically nominated for the joint specialty as a result 
     of section 661(b)(2) of such title.
       (b) Termination.--The provisions of subsection (a) shall 
     terminate on October 1, 2006.
       (c) Cross-Reference Correction.--Section 661(c)(3)(E) of 
     title 10, United States Code, is amended by striking 
     ``subparagraph'' and inserting ``paragraph''.

     SEC. 503. EXTENSION AND CODIFICATION OF AUTHORITY FOR RECALL 
                   OF RETIRED AVIATORS TO ACTIVE DUTY.

       (a) In General.--(1) Chapter 39 of title 10, United States 
     Code, is amended by inserting after section 688 the following 
     new section:

     ``Sec. 688a. Retired aviators: temporary authority to order 
       to active duty

       ``(a) Authority.--The Secretary of a military department 
     may order to active duty a retired officer having expertise 
     as an aviator to fill staff positions normally filled by 
     aviators on active duty. Any such order may be made only with 
     the consent of the officer ordered to active duty and in 
     accordance with an agreement between the Secretary and the 
     officer.
       ``(b) Duration.--The period of active duty of an officer 
     under an order to active duty under subsection (a) shall be 
     specified in the agreement entered into under that 
     subsection.
       ``(c) Limitation.--No more than a total of 500 officers may 
     be on active duty at any time under subsection (a).
       ``(d) Relationship to Other Authority.--The authority to 
     order a retired officer to active duty under this section is 
     in addition to the authority under section 688 of this title 
     or any other provision of law authorizing the Secretary 
     concerned to order a retired member to active duty.
       ``(e) Inapplicability of Certain Provisions.--Officers 
     ordered to active duty under subsection (a) shall not be 
     counted for purposes of section 688 or 690 of this title.
       ``(f) Expiration of Authority.--An officer may not be 
     ordered to active duty under this section after September 30, 
     2008.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by inserting after the item relating to section 
     688 the following new item:

``688a. Retired aviators: temporary authority to order to active 
              duty.''.

       (b) Grade in Which Ordered to Active Duty and Upon Release 
     From Active Duty.--(1) Section 689 of such title is amended 
     by inserting ``or 688a'' after ``section 688'' each place it 
     appears.
       (2) The provisions of section 689(d) of title 10, United 
     States Code, shall apply with respect to an officer ordered 
     to active duty under section 501 of the National Defense 
     Authorization Act for Fiscal Year 2000 (Public Law 106-65; 
     113 Stat. 589) before the date of the enactment of this Act 
     in the same manner as such provisions apply to an officer 
     ordered to active duty under section 688 of such title.
       (c) Transition Provision.--Any officer ordered to active 
     duty under section 501 of the National Defense Authorization 
     Act for Fiscal Year 2000 (Public Law 106-65; 113 Stat. 589) 
     who continues on active duty under such order to active duty 
     after the date of the enactment of this Act shall be counted 
     for purposes of the limitation under subsection (c) of 
     section 688a of title 10, United States Code, as added by 
     subsection (a).

     SEC. 504. GRADES FOR CERTAIN POSITIONS.

       (a) Heads of Nurse Corps.--(1) Section 3069(b) of title 10, 
     United States Code, is amended by striking ``brigadier 
     general'' in the second sentence and inserting ``major 
     general''.
       (2) The first sentence of section 5150(c) of such title is 
     amended--
       (A) by inserting ``rear admiral, in the case of an officer 
     in the Nurse Corps, or'' after ``for promotion to the grade 
     of''; and
       (B) by inserting ``, in the case of an officer in the 
     Medical Service Corps'' after ``rear admiral (lower half)''.
       (3) Section 8069(b) of such title is amended by striking 
     ``brigadier general'' in the second sentence and inserting 
     ``major general''.
       (b) Chief of Veterinary Corps of the Army.--(1) Chapter 307 
     of such title is amended by adding at the end the following 
     new section:

     ``Sec. 3084. Chief of Veterinary Corps; grade

       ``The Chief of the Veterinary Corps of the Army serves in 
     the grade of brigadier general. An officer appointed to that 
     position who holds a lower grade shall be appointed in the 
     grade of brigadier general.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by adding at the end the following new item:

``3084. Chief of Veterinary Corps: grade.''.

       (c) Chief of Legislative Liaison of the Army.--(1)(A) 
     Chapter 303 of such title is amended by adding at the end the 
     following new section:

     ``Sec. 3023. Chief of Legislative Liaison

       ``(a) There is a Chief of Legislative Liaison in the 
     Department of the Army. An officer assigned

[[Page H8115]]

     to that position shall be an officer in the grade of major 
     general.
       ``(b) The Chief of Legislative Liaison shall perform 
     legislative affairs functions as specified for the Office of 
     the Secretary of the Army by section 3014(c)(1)(F) of this 
     title.''.
       (B) The table of sections at the beginning of such chapter 
     is amended by adding at the end the following new item:

``3023. Chief of Legislative Liaison.''.

       (2) Section 3014(b) of such title is amended--
       (A) by redesignating paragraphs (6) and (7) as paragraphs 
     (7) and (8), respectively; and
       (B) by inserting after paragraph (5) the following new 
     paragraph (6):
       ``(6) The Chief of Legislative Liaison.''.
       (d) Legislative Affairs Positions of the Navy and Marine 
     Corps.--(1)(A) Chapter 503 of such title is amended by adding 
     at the end the following new section:

     ``Sec. 5027. Chief of Legislative Affairs

       ``(a) There is a Chief of Legislative Affairs in the 
     Department of the Navy. An officer assigned to that position 
     shall be an officer in the grade of rear admiral.
       ``(b) The Chief of Legislative Affairs shall perform 
     legislative affairs functions as specified for the Office of 
     the Secretary of the Navy by section 5014(c)(1)(F) of this 
     title.''.
       (B) The table of sections at the beginning of such chapter 
     is amended by adding at the end the following new item:

``5027. Chief of Legislative Affairs.''.

       (2) Section 5014(b) of such title is amended--
       (A) by redesignating paragraphs (6) and (7) as paragraphs 
     (7) and (8), respectively; and
       (B) by inserting after paragraph (5) the following new 
     paragraph (6):
       ``(6) The Chief of Legislative Affairs.''.
       (3)(A) Chapter 506 of such title is amended by adding at 
     the end the following new section:

     ``Sec. 5047. Legislative Assistant to the Commandant

       ``There is in the Marine Corps a Legislative Assistant to 
     the Commandant. An officer assigned to that position shall be 
     in a grade above colonel.''.
       (B) The table of sections at the beginning of such chapter 
     is amended by adding at the end the following new item:

``5047. Legislative Assistant to the Commandant.''.

       (e) Chief of Legislative Liaison of the Air Force.--(1)(A) 
     Chapter 803 of such title is amended by adding at the end the 
     following new section:

     ``Sec. 8023. Chief of Legislative Liaison

       ``(a) There is a Chief of Legislative Liaison in the 
     Department of the Air Force. An officer assigned to that 
     position shall be an officer in the grade of major general.
       ``(b) The Chief of Legislative Liaison shall perform 
     legislative affairs functions as specified for the Office of 
     the Secretary of the Air Force by section 8014(c)(1)(F) of 
     this title.''.
       (B) The table of sections at the beginning of such chapter 
     is amended by adding at the end the following new item:

``8023. Chief of Legislative Liaison.''.

       (2) Section 8014(b) of such title is amended--
       (A) by redesignating paragraphs (5) and (6) as paragraphs 
     (6) and (7), respectively; and
       (B) by inserting after paragraph (4) the following new 
     paragraph (5):
       ``(5) The Chief of Legislative Liaison.''.
       (f) Technical Amendment To Provide Correct Statutory Title 
     of Grade.--Section 5022(a)(2) of such title is amended by 
     striking ``(upper half)''.

     SEC. 505. REINSTATEMENT OF AUTHORITY TO REDUCE THREE-YEAR 
                   TIME-IN-GRADE REQUIREMENT FOR RETIREMENT IN 
                   GRADE FOR OFFICERS IN GRADES ABOVE MAJOR AND 
                   LIEUTENANT COMMANDER.

       (a) Officers on Active Duty.--Subsection (a)(2) of section 
     1370 of title 10, United States Code, is amended--
       (1) in subparagraph (A), by striking ``during the period 
     beginning on October 1, 1990, and ending on December 31, 
     2001'' and inserting ``during the period beginning on October 
     1, 2002, and ending on December 31, 2003'';
       (2) by redesignating subparagraphs (B) and (C) as 
     subparagraphs (D) and (E), respectively; and
       (3) by inserting after subparagraph (A) the following new 
     subparagraphs (B) and (C):
       ``(B) In the case of an officer to be retired in a general 
     or flag officer grade, authority provided by the Secretary of 
     Defense to the Secretary of a military department under 
     subparagraph (A) may be exercised with respect to that 
     officer only if approved by the Secretary of Defense or 
     another civilian official in the Office of the Secretary of 
     Defense appointed by the President, by and with the advice 
     and consent of the Senate.
       ``(C) Authority provided by the Secretary of Defense to the 
     Secretary of a military department under subparagraph (A) may 
     be delegated within that military department only to a 
     civilian official of that military department appointed by 
     the President, by and with the advice and consent of the 
     Senate.''.
       (b) Reserve Officers.--Subsection (d) of such section is 
     amended--
       (1) by designating the second sentence of paragraph (5) as 
     paragraph (6) and in that paragraph by striking ``this 
     paragraph'' and inserting ``paragraph (5)''; and
       (2) in paragraph (5)--
       (A) by inserting ``(A)'' after ``(5)'';
       (B) by striking ``in the case of retirements effective 
     during the period beginning on October 17, 1998, and ending 
     on December 31, 2001'' and inserting ``in the case of 
     transfers to the Retired Reserve and discharges of 
     retirement-qualified officers effective during the period 
     beginning on October 1, 2002, and ending on December 31, 
     2003''; and
       (C) by adding at the end (before paragraph (6) as 
     designated by paragraph (1) of this subsection) the following 
     new subparagraphs:
       ``(B) In the case of a person who, upon transfer to the 
     Retired Reserve or discharge, is to be credited with 
     satisfactory service in a general or flag officer grade under 
     paragraph (1), authority provided by the Secretary of Defense 
     to the Secretary of a military department under subparagraph 
     (A) may be exercised with respect to that person only if 
     approved by the Secretary of Defense or another civilian 
     official in the Office of the Secretary of Defense appointed 
     by the President, by and with the advice and consent of the 
     Senate.
       ``(C) Authority provided by the Secretary of Defense to the 
     Secretary of a military department under subparagraph (A) may 
     be delegated within that military department only to a 
     civilian official of that military department appointed by 
     the President, by and with the advice and consent of the 
     Senate.''.
       (c) Advance Notice to Congress.--Such section is further 
     amended by adding at the end the following new subsection:
       ``(e) Advance Notice to Congressional Committees.--(1) In 
     the case of an officer to be retired in a grade that is a 
     general or flag officer grade who is eligible to retire in 
     that grade only by reason of an exercise of authority under 
     paragraph (2) of subsection (a) to reduce the three-year 
     service-in-grade requirement otherwise applicable under that 
     paragraph, the Secretary of Defense, before the officer is 
     retired in that grade, shall notify the Committee on Armed 
     Services of the Senate and the Committee on Armed Services of 
     the House of Representatives of the exercise of authority 
     under that paragraph with respect to that officer.
       ``(2) In the case of a person to be credited under 
     subsection (d) with satisfactory service in a grade that is a 
     general or flag officer grade who is eligible to be credited 
     with such service in that grade only by reason of an exercise 
     of authority under paragraph (5) of that subsection to reduce 
     the three-year service-in-grade requirement otherwise 
     applicable under paragraph (3)(A) of that subsection, the 
     Secretary of Defense, before the person is credited with such 
     satisfactory service in that grade, shall notify the 
     Committee on Armed Services of the Senate and the Committee 
     on Armed Services of the House of Representatives of the 
     exercise of authority under paragraph (5) of that subsection 
     with respect to that officer.
       ``(3) In the case of an officer to whom subsection (c) 
     applies, the requirement for notification under paragraph (1) 
     is satisfied if the notification is included in the 
     certification submitted with respect to that officer under 
     paragraph (1) of such subsection.''.

     SEC. 506. AUTHORITY TO REQUIRE THAT AN OFFICER TAKE LEAVE 
                   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 as to whom a board of inquiry makes a 
     recommendation under paragraph (1) that the officer not be 
     retained on active duty may be required to take leave pending 
     the completion of the officer's case under this chapter. 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 on the officer's case is completed 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

[[Page H8116]]

     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--
       (A) by inserting ``or 1182(c)(2)'' after ``section 876a'' 
     in subsections (a), (b)(1), (b)(2), and (c); and
       (B) by striking ``section 707'' in subsection (b)(2) and 
     inserting ``sections 707 and 707a''.
       (2) The heading for such section is amended to read as 
     follows:

     ``Sec. 706. Administration of leave required to be taken''.

       (d) Clerical Amendments.--The table of sections at the 
     beginning of chapter 40 of such title is amended--
       (1) by striking the item relating to section 706 and 
     inserting the following:

``706. Administration of leave required to be taken.'';

     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.''.
                Subtitle B--Reserve Component Management

     SEC. 511. REVIEWS OF NATIONAL GUARD STRENGTH ACCOUNTING AND 
                   MANAGEMENT AND OTHER ISSUES.

       (a) Comptroller General Assessments.--Not later than one 
     year after the date of the enactment of this Act, the 
     Comptroller General shall submit to Congress a report on 
     management of the National Guard. The report shall include 
     the following:
       (1) The Comptroller General's assessment of the 
     effectiveness of the implementation of Department of Defense 
     plans for improving management and accounting for personnel 
     strengths in the National Guard, including an assessment of 
     the process that the Department of Defense, the National 
     Guard Bureau, the Army National Guard and State-level 
     National Guard leadership, and leadership in the other 
     reserve components have for identifying and addressing in a 
     timely manner specific units in which nonparticipation rates 
     are significantly in excess of the established norms.
       (2) The Comptroller General's assessment of the 
     effectiveness of the process for Federal recognition of 
     senior National Guard officers and recommendations for 
     improvement to that process.
       (3) The Comptroller General's assessment of the process 
     for, and the nature and extent of, the administrative or 
     judicial corrective action taken by the Secretary of Defense, 
     the Secretary of the Army, and the Secretary of the Air Force 
     as a result of Inspector General investigations or other 
     investigations in which allegations against senior National 
     Guard officers are substantiated in whole or in part.
       (4) The Comptroller General's determination of the 
     effectiveness of the Federal protections provided for members 
     or employees of the National Guard who report allegations of 
     waste, fraud, abuse, or mismanagement and the nature and 
     extent to which corrective action is taken against those in 
     the National Guard who retaliate against such members or 
     employees.
       (b) Secretary of Defense Report on Different Army and Air 
     Force Procedures.--Not later than six months after the date 
     of the enactment of this Act, the Secretary of Defense shall 
     submit to Congress a report on the differing Army and Air 
     Force policies for taking adverse administrative actions 
     against National Guard officers in a State status. The report 
     shall include the Secretary's determination as to whether 
     changes should be made in those policies.

     SEC. 512. COURTS-MARTIAL FOR THE NATIONAL GUARD WHEN NOT IN 
                   FEDERAL SERVICE.

       (a) Manner of Prescribing Punishments.--Section 326 of 
     title 32, United States Code, is amended by adding at the end 
     the following new sentence: ``Punishments shall be as 
     provided by the laws of the respective States and 
     Territories, Puerto Rico, and the District of Columbia.''.
       (b) Convening Authority.--Section 327 of such title is 
     amended to read as follows:

     ``Sec. 327. Courts-martial of National Guard not in Federal 
       service: convening authority

       ``(a) In the National Guard not in Federal service, 
     general, special, and summary courts-martial may be convened 
     as provided by the laws of the respective States and 
     Territories, Puerto Rico, and the District of Columbia.
       ``(b) In the National Guard not in Federal service--
       ``(1) general courts-martial may be convened by the 
     President;
       ``(2) special courts-martial may be convened--
       ``(A) by the commanding officer of a garrison, fort, post, 
     camp, air base, auxiliary air base, or other place where 
     members of the National Guard are on duty; or
       ``(B) by the commanding officer of a division, brigade, 
     regiment, wing, group, detached battalion, separate squadron, 
     or other detached command; and
       ``(3) summary courts-martial may be convened--
       ``(A) by the commanding officer of a garrison, fort, post, 
     camp, air base, auxiliary air base, or other place where 
     members of the National Guard are on duty; or
       ``(B) by the commanding officer of a division, brigade, 
     regiment, wing, group, detached battalion, detached squadron, 
     detached company, or other detachment.
       ``(c) The convening authorities provided under subsection 
     (b) are in addition to the convening authorities provided 
     under subsection (a).''.
       (c) Repeal of Superseded and Obsolete Provisions.--(1) 
     Sections 328, 329, 330, 331, 332, and 333 of title 32, United 
     States Code, are repealed.
       (2) The provisions of law repealed by paragraph (1) shall 
     continue to apply with respect to courts-martial convened in 
     the National Guard not in Federal service before the date of 
     the enactment of this Act.
       (d) Clerical Amendments.--The table of sections at the 
     beginning of chapter 3 of such title is amended by striking 
     the items relating to sections 327, 328, 329, 330, 331, 332, 
     and 333 and inserting the following:

``327. Courts-martial of National Guard not in Federal service: 
              convening authority.''.

       (e) Models for State Code of Military Justice and State 
     Manual for Courts-Martial.--(1) The Secretary of Defense 
     shall prepare a model State code of military justice and a 
     model State manual for courts-martial to recommend to the 
     States for use with respect to the National Guard not in 
     Federal service. Both such models shall be consistent with 
     the recommendations contained in the report that was issued 
     in 1998 by the Department of Defense Panel to Study Military 
     Justice in the National Guard not in Federal Service.
       (2) The Secretary shall ensure that adequate support for 
     the preparation of the model State code of military justice 
     and the model State manual for courts-martial (including the 
     detailing of attorneys and other personnel) is provided by 
     the General Counsel of the Department of Defense, the 
     Secretary of the Army, the Secretary of the Air Force, and 
     the Chief of the National Guard Bureau.
       (3) If the funds available to the Chief of the National 
     Guard Bureau are insufficient for paying the cost of the 
     National Guard Bureau support required under paragraph (2) 
     (including increased costs of pay of members of the National 
     Guard for additional active duty necessitated by such 
     requirement and increased cost of detailed attorneys and 
     other staff, allowances, and travel expenses related to such 
     support), the Secretary shall, upon request made by the Chief 
     of the Bureau, provide such additional funding as the 
     Secretary determines necessary to satisfy the requirement for 
     such support.
       (4) Not later than one year after the date of the enactment 
     of this Act, the Secretary shall submit a report on the 
     actions taken to carry out this subsection to the Committee 
     on Armed Services of the Senate and the Committee on Armed 
     Services of the House of Representatives. The report shall 
     include proposals in final form of both the model State code 
     of military justice and the model State manual for courts-
     martial required by paragraph (1), together with a discussion 
     of the efforts being made to present those proposals to the 
     States for their consideration for enactment or adoption, 
     respectively.
       (5) In this subsection, the term ``State'' includes the 
     District of Columbia, the Commonwealth of Puerto Rico, the 
     Virgin Islands, and Guam.

     SEC. 513. FISCAL YEAR 2003 FUNDING FOR MILITARY PERSONNEL 
                   COSTS OF RESERVE COMPONENT SPECIAL OPERATIONS 
                   FORCES PERSONNEL ENGAGED IN HUMANITARIAN 
                   ASSISTANCE ACTIVITIES RELATING TO CLEARING OF 
                   LANDMINES.

       (a) Use of Reserve Component Military Personnel Funds.--
     Fiscal year 2003 reserve component military personnel funds 
     may be used for military personnel expenses of reserve 
     component Special Operations forces that are incurred during 
     fiscal year 2003 in connection with landmine clearance 
     assistance, notwithstanding section 401(c)(1) of title 10, 
     United States Code.
       (b) Reimbursement Requirement.--Fiscal year 2003 reserve 
     component military personnel funds shall be reimbursed from 
     fiscal year 2003 landmine clearance assistance funds for all 
     military personnel expenses of reserve component Special 
     Operations forces that are incurred during fiscal year 2003 
     in connection with landmine clearance assistance. Such 
     reimbursement shall be made in each instance to the reserve 
     component military personnel account that incurred the 
     expense.
       (c) Limitation.--The amount of reserve component military 
     personnel expenses incurred during fiscal year 2003 for 
     landmine clearance assistance may not exceed 10 percent of 
     the amount of fiscal year 2003 landmine clearance assistance 
     funds.
       (d) Definitions.--For purposes of this section:
       (1) Landmine clearance assistance.--The term ``landmine 
     clearance assistance'' means humanitarian and civic 
     assistance provided under section 401 of title 10, United 
     States Code, that is described in subsection (e)(5) of that 
     section.

[[Page H8117]]

       (2) Fiscal year 2003 landmine clearance assistance funds.--
     The term ``fiscal year 2003 landmine clearance assistance 
     funds'' means the total amount appropriated for fiscal year 
     2003 in operations and maintenance accounts of the Department 
     of Defense that is provided for landmine clearance 
     assistance.
       (3) Fiscal year 2003 reserve component military personnel 
     funds.--The term ``fiscal year 2003 reserve component 
     military personnel funds'' means amounts appropriated for 
     fiscal year 2003 for military personnel expenses of a reserve 
     component of the Department of Defense.
       (4) Military personnel expenses.--The term ``military 
     personnel expenses'' means expenses properly chargeable to a 
     military personnel account of the Department of Defense.
       (e) Legislative Proposal.--The Secretary of Defense shall 
     submit to Congress, as part of the budget request of the 
     Department of Defense for fiscal year 2004, a legislative 
     proposal that would ensure that military personnel expenses 
     for both active and reserve component military personnel 
     providing landmine clearance assistance are specified in 
     detail and are budgeted to be authorized and appropriated 
     from the appropriate military personnel accounts.

     SEC. 514. USE OF RESERVES TO PERFORM DUTIES RELATING TO 
                   DEFENSE AGAINST TERRORISM.

       (a) Use of Reserves To Perform Duties Relating to Defense 
     Against Terrorism.--Section 12304(b) of title 10, United 
     States Code, is amended by striking ``involving'' and all 
     that follows and inserting ``involving--
       ``(1) a use or threatened use of a weapon of mass 
     destruction; or
       ``(2) a terrorist attack or threatened terrorist attack in 
     the United States that results, or could result, in 
     catastrophic loss of life or property.''.
       (b) Conforming Amendment Relating to Full-Time Support of 
     Guard and Reserve Personnel.-- Section 12310(c)(1) of such 
     title is amended by striking ``involving'' and all that 
     follows and inserting ``involving--
       ``(A) the use of a weapon of mass destruction (as defined 
     in section 12304(i)(2) of this title); or
       ``(B) a terrorist attack or threatened terrorist attack in 
     the United States that results, or could result, in 
     catastrophic loss of life or property.''.

     SEC. 515. 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--Reserve Component Officer Personnel Policy

     SEC. 521. ELIGIBILITY FOR CONSIDERATION FOR PROMOTION TO 
                   GRADE OF MAJOR GENERAL FOR CERTAIN RESERVE 
                   COMPONENT BRIGADIER GENERALS WHO DO NOT 
                   OTHERWISE QUALIFY FOR CONSIDERATION FOR 
                   PROMOTION UNDER THE ONE-YEAR RULE.

       Section 14301(g) of title 10, United States Code, is 
     amended to read as follows:
       ``(g) Brigadier Generals.--(1) An officer who is a reserve 
     component brigadier general of the Army or the Air Force who 
     is not eligible for consideration for promotion under 
     subsection (a) because the officer is not on the reserve 
     active status list (as required by paragraph (1) of that 
     subsection for such eligibility) is nevertheless eligible for 
     consideration for promotion to the grade of major general by 
     a promotion board convened under section 14101(a) of this 
     title if--
       ``(A) as of the date of the convening of the promotion 
     board, the officer has been in an inactive status for less 
     than one year; and
       ``(B) immediately before the date of the officer's most 
     recent transfer to an inactive status, the officer had 
     continuously served on the reserve active status list or the 
     active-duty list (or a combination of the reserve active 
     status list and the active-duty list) for at least one year.
       ``(2) An officer who is a reserve component brigadier 
     general of the Army or the Air Force who is on the reserve 
     active status list but who is not eligible for consideration 
     for promotion under subsection (a) because the officer's 
     service does not meet the one-year-of-continuous-service 
     requirement under paragraph (2) of that subsection is 
     nevertheless eligible for consideration for promotion to the 
     grade of major general by a promotion board convened under 
     section 14101(a) of this title if--
       ``(A) the officer was transferred from an inactive status 
     to the reserve active status list during the one-year period 
     preceding the date of the convening of the promotion board;
       ``(B) immediately before the date of the officer's most 
     recent transfer to an active status, the officer had been in 
     an inactive status for less than one year; and
       ``(C) immediately before the date of the officer's most 
     recent transfer to an inactive status, the officer had 
     continuously served for at least one year on the reserve 
     active status list or the active-duty list (or a combination 
     of the reserve active status list and the active-duty 
     list).''.

     SEC. 522. AUTHORITY FOR LIMITED EXTENSION OF MEDICAL 
                   DEFERMENT OF MANDATORY RETIREMENT OR SEPARATION 
                   OF RESERVE COMPONENT OFFICERS.

       (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.''.

        Subtitle D--Enlistment, Education, and Training Programs

     SEC. 531. ENLISTMENT INCENTIVES FOR PURSUIT OF SKILLS TO 
                   FACILITATE NATIONAL SERVICE.

       (a) Authority.--(1) Chapter 31 of title 10, United States 
     Code, is amended by inserting after section 509 the following 
     new section:

     ``Sec. 510. Enlistment incentives for pursuit of skills to 
       facilitate national service

       ``(a) Enlistment Incentive Program.--The Secretary of 
     Defense shall carry out an enlistment incentive program in 
     accordance with this section under which a person who is a 
     National Call to Service participant shall be entitled to one 
     of the incentives specified in subsection (e). The program 
     shall be carried out during the period ending on December 31, 
     2007, and may be carried out after that date.
       ``(b) National Call to Service Participant.--In this 
     section, the term `National Call to Service participant' 
     means a person who has not previously served in the armed 
     forces who enters into an original enlistment pursuant to a 
     written agreement with the Secretary of a military department 
     (in such form and manner as may be prescribed by that 
     Secretary) under which the person agrees to perform a period 
     of national service as specified in subsection (c).
       ``(c) National Service.--The total period of national 
     service to which a National Call to Service participant is 
     obligated under the agreement under this section shall be 
     specified in the agreement. Under the agreement, the 
     participant shall--
       ``(1) upon completion of initial entry training (as 
     prescribed by the Secretary of Defense), serve on active duty 
     in a military occupational specialty designated by the 
     Secretary of Defense under subsection (d) for a period of 15 
     months;
       ``(2) upon completion of the period of active duty 
     specified in paragraph (1) and without a break in service, 
     serve either (A) an additional period of active duty as 
     determined by the Secretary of Defense, or (B) a period of 24 
     months in an active status in the Selected Reserve; and
       ``(3) upon completion of the period of service specified in 
     paragraph (2), and without a break in service, serve the 
     remaining period of obligated service specified in the 
     agreement--
       ``(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 and 
     specified in the agreement.
       ``(d) Designated Military Occupational Specialties.--The 
     Secretary of Defense shall designate military occupational 
     specialties for purposes of subsection (c)(1). Such military 
     occupational specialties shall be military occupational 
     specialties that, as determined by the Secretary, will 
     facilitate pursuit of national service by National Call to 
     Service participants.
       ``(e) Incentives.--The incentives specified in this 
     subsection are as follows:
       ``(1) Payment of a bonus in the amount of $5,000.
       ``(2) Payment in an amount not to exceed $18,000 of 
     outstanding principal and interest on qualifying student 
     loans of the National Call to Service participant.
       ``(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 50 percent of the 
     monthly rate payable for basic educational assistance 
     allowances under section 3015(b)(1) of title 38 for a total 
     of 36 months.
       ``(f) Election of Incentive.--A National Call to Service 
     participant shall elect in the agreement under subsection (b) 
     which incentive under subsection (e) to receive. An election 
     under this subsection is irrevocable.
       ``(g) 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 (e)(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 (e)(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

[[Page H8118]]

     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.
       ``(h) Coordination With Montgomery GI Bill Benefits.--
     (1)(A) Subject to subparagraph (B), a National Call to 
     Service participant who elects an incentive under paragraph 
     (3) or (4) of subsection (e) is not entitled to additional 
     educational assistance under chapter 1606 of this title or to 
     basic educational assistance under subchapter II of chapter 
     30 of title 38.
       ``(B) If a National Call to Service participant meets all 
     eligibility requirements specified in chapter 1606 of this 
     title or chapter 30 of title 38 for entitlement to allowances 
     for educational assistance under either such chapter, the 
     participant may become eligible for allowances for 
     educational assistance benefits under either such chapter up 
     to the maximum allowance provided less the total amount of 
     allowance paid under paragraph (3) or (4) of subsection (e).
       ``(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 (e) 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 this title.
       ``(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 this title.
       ``(3)(A) Except as provided in paragraph (1), nothing in 
     this section shall prohibit a National Call to Service 
     participant who satisfies through service under subsection 
     (c) the eligibility requirements for educational assistance 
     under chapter 1606 of this title or basic educational 
     assistance under chapter 30 of title 38 from an entitlement 
     to such educational assistance under chapter 1606 of this 
     title or basic educational assistance under chapter 30 of 
     title 38, as the case may be.
       ``(B)(i) A participant who made an election not to receive 
     educational assistance under either such chapter at the 
     applicable time specified under law or who was denied the 
     opportunity to make an election may revoke that election or 
     make an initial election, as the case may be, at such time 
     and in such manner as the Secretary concerned may specify. A 
     revocation or initial election under the preceding sentence 
     is irrevocable.
       ``(ii) The participant making a revocation or initial 
     election under clause (i) shall be eligible for educational 
     assistance under either such chapter at such time as the 
     participant satisfies through service the applicable 
     eligibility requirements under either such chapter.
       ``(i) 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 (e)(1) or (e)(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 five 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).
       ``(j) Funding.--Amounts for payment of incentives under 
     subsection (e), 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.
       ``(k) Regulations.--The Secretary of Defense and the 
     Secretaries of the military departments shall prescribe 
     regulations for purposes of the program under this section.
       ``(l) 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 any part or all of 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, with respect to matters concerning the Coast Guard 
     when it is not operating as a service in the Navy, the 
     Secretary of the Department in which the Coast Guard is 
     operating.''.
       (2) The table of sections at the beginning of that chapter 
     is amended by inserting after the item relating to section 
     509 the following new item:
``510. Enlistment incentives for pursuit of skills to facilitate 
              national service.''.

       (b) Commencement of Program.--The Secretary of Defense 
     shall prescribe the date on which the program provided for 
     section 510 of title 10, United States Code, as added by 
     subsection (a), shall commence. Such date shall be not later 
     than October 1, 2003.
       (c) Conforming Repeal.--Section 3264 of title 10, United 
     States Code, is repealed. The table of sections at the 
     beginning of chapter 333 of such title is amended by striking 
     the item relating to section 3264.
       (d) Implementation Report.--Not later than March 31, 2003, 
     the Secretary of Defense shall submit to the Committees on 
     Armed Services of the Senate and the House of Representatives 
     a report on the Secretary's plans for implementation of 
     section 510 of title 10, United States Code, as added by 
     subsection (a).
       (e) Effectiveness Reports.--Not later than March 31, 2005, 
     and March 31, 2007, the Secretary of Defense shall submit to 
     the committees specified in subsection (d) reports on the 
     effectiveness of the program under section 510 of title 10, 
     United States Code, as added by subsection (a), in attracting 
     new recruits to national service.

     SEC. 532. AUTHORITY FOR PHASED INCREASE TO 4,400 IN 
                   AUTHORIZED STRENGTHS FOR THE SERVICE ACADEMIES.

       (a) Military Academy.--Section 4342 of title 10, United 
     States Code, is amended--
       (1) in subsection (a), by inserting before the period at 
     the end of the first sentence the following: ``or such higher 
     number as may be prescribed by the Secretary of the Army 
     under subsection (j)''; and
       (2) by adding at the end the following new subsection:
       ``(j)(1) Beginning with the 2003-2004 academic year, the 
     Secretary of the Army may prescribe annual increases in the 
     cadet strength limit in effect under subsection (a). For any 
     academic year, any such increase shall be by no more than 100 
     cadets or such lesser number as applies under paragraph (3) 
     for that year. Such annual increases may be prescribed until 
     the cadet strength limit is 4,400. However, no increase may 
     be prescribed for any academic year after the 2007-2008 
     academic year.
       ``(2) Any increase in the cadet strength limit under 
     paragraph (1) with respect to an academic year shall be 
     prescribed not later than the date on which the budget of the 
     President is submitted to Congress under section 1105 of 
     title 31 for the fiscal year beginning in the same year as 
     the year in which that academic year begins. Whenever the 
     Secretary prescribes such an increase, the Secretary shall 
     submit to Congress a notice in writing of the increase. The 
     notice shall state the amount of the increase in the cadet 
     strength limit and the new cadet strength limit, as so 
     increased, and the amount of the increase in Senior Army 
     Reserve Officers' Training Corps enrollment under each of 
     sections 2104 and 2107 of this title.
       ``(3) The amount of an increase under paragraph (1) in the 
     cadet strength limit for an academic year may not exceed the 
     increase (if any) for the preceding academic year in the 
     total number of cadets enrolled in the Army Senior Reserve 
     Officers' Training Corps program under chapter 103 of this 
     title who have entered into an agreement under section 2104 
     or 2107 of this title.
       ``(4) In this subsection, the term `cadet strength limit' 
     means the authorized maximum strength of the Corps of Cadets 
     of the Academy.''.
       (b) Naval Academy.--Section 6954 of title 10, United States 
     Code, is amended--
       (1) in subsection (a), by inserting before the period at 
     the end of the first sentence the following: ``or such higher 
     number as may be prescribed by the Secretary of the Navy 
     under subsection (h)''; and
       (2) by adding at the end the following new subsection:
       ``(h)(1) Beginning with the 2003-2004 academic year, the 
     Secretary of the Navy may prescribe annual increases in the 
     midshipmen strength limit in effect under subsection (a). For 
     any academic year, any such increase shall be by no more than 
     100 midshipmen or such lesser number as applies under 
     paragraph (3) for that year. Such annual increases may be 
     prescribed until the midshipmen strength limit is 4,400. 
     However, no increase may be prescribed for any academic year 
     after the 2007-2008 academic year.
       ``(2) Any increase in the midshipmen strength limit under 
     paragraph (1) with respect to an academic year shall be 
     prescribed not later than the date on which the budget of the 
     President is submitted to Congress under section 1105 of 
     title 31 for the fiscal year beginning in the same year as 
     the year in which that academic year begins. Whenever the 
     Secretary prescribes such an increase, the Secretary shall 
     submit to Congress a notice in writing of the increase. The 
     notice shall state the amount of the increase in the 
     midshipmen strength limit and the new midshipmen strength 
     limit, as so increased, and the amount of the increase in 
     Senior Navy Reserve Officers' Training Corps enrollment under 
     each of sections 2104 and 2107 of this title.
       ``(3) The amount of an increase under paragraph (1) in the 
     midshipmen strength limit for an academic year may not exceed 
     the increase (if any) for the preceding academic year in the 
     total number of midshipmen enrolled in the Navy Senior 
     Reserve Officers' Training Corps program under chapter 103 of 
     this title who have entered into an agreement under section 
     2104 or 2107 of this title.
       ``(4) In this subsection, the term `midshipmen strength 
     limit' means the authorized maximum strength of the Brigade 
     of Midshipmen.''.
       (c) Air Force Academy.--Section 9342 of title 10, United 
     States Code, is amended--

[[Page H8119]]

       (1) in subsection (a), by inserting before the period at 
     the end of the first sentence the following: ``or such higher 
     number as may be prescribed by the Secretary of the Air Force 
     under subsection (j)''; and
       (2) by adding at the end the following new subsection:
       ``(j)(1) Beginning with the 2003-2004 academic year, the 
     Secretary of the Air Force may prescribe annual increases in 
     the cadet strength limit in effect under subsection (a). For 
     any academic year, any such increase shall be by no more than 
     100 cadets or such lesser number as applies under paragraph 
     (3) for that year. Such annual increases may be prescribed 
     until the cadet strength limit is 4,400. However, no increase 
     may be prescribed for any academic year after the 2007-2008 
     academic year.
       ``(2) Any increase in the cadet strength limit under 
     paragraph (1) with respect to an academic year shall be 
     prescribed not later than the date on which the budget of the 
     President is submitted to Congress under sections 1105 of 
     title 31 for the fiscal year beginning in the same year as 
     the year in which that academic year begins. Whenever the 
     Secretary prescribes such an increase, the Secretary shall 
     submit to Congress a notice in writing of the increase. The 
     notice shall state the amount of the increase in the cadet 
     strength limit and the new cadet strength limit, as so 
     increased, and the amount of the increase in Senior Air Force 
     Reserve Officers' Training Corps enrollment under each of 
     sections 2104 and 2107 of this title.
       ``(3) The amount of an increase under paragraph (1) in the 
     cadet strength limit for an academic year may not exceed the 
     increase (if any) for the preceding academic year in the 
     total number of cadets enrolled in the Air Force Senior 
     Reserve Officers' Training Corps program under chapter 103 of 
     this title who have entered into an agreement under section 
     2104 or 2107 of this title.
       ``(4) In this subsection, the term `cadet strength limit' 
     means the authorized maximum strength of Air Force Cadets of 
     the Academy.''.
       (d) Target for Increases in Number of ROTC Scholarship 
     Participants.--Section 2107 of such title is amended by 
     adding at the end the following new subsection:
       ``(i) The Secretary of each military department shall seek 
     to achieve an increase in the number of agreements entered 
     into under this section so as to achieve an increase, by the 
     2006-2007 academic year, of not less than 400 in the number 
     of cadets or midshipmen, as the case may be, enrolled under 
     this section, compared to such number enrolled for the 2002-
     2003 academic year. In the case of the Secretary of the Navy, 
     the Secretary shall seek to ensure that not less than one-
     third of such increase in agreements under this section are 
     with students enrolled (or seeking to enroll) in programs of 
     study leading to a baccalaureate degree in nuclear 
     engineering or another appropriate technical, scientific, or 
     engineering field of study.''.
       (e) Repeal of Limit on Number of ROTC Scholarships.--
     Section 2107 of such title is further amended by striking the 
     first sentence of subsection (h)(1).
       (f) Repeal of Obsolete Language.--Section 4342(i) of such 
     title is amended by striking ``(beginning with the 2001-2002 
     academic year)''.

     SEC. 533. ENHANCEMENT OF RESERVE COMPONENT DELAYED TRAINING 
                   PROGRAM.

       (a) Increase in Time Following Enlistment for Commencement 
     of Initial Period of Active Duty for Training.--Section 
     12103(d) of title 10, United States Code, is amended by 
     striking ``270 days'' in the last sentence and inserting 
     ``one year''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall apply with respect to enlistments under section 
     12103(d) of title 10, United States Code, after the end of 
     the 90-day period beginning on the date of the enactment of 
     this Act.
       (c) Transition.--In the case of a person who enlisted under 
     section 12103(d) of title 10, United States Code, before the 
     date of the enactment of this Act and who as of such date has 
     not commenced the required initial period of active duty for 
     training under that section, the amendment made by subsection 
     (a) may be applied to that person, but only with the 
     agreement of that person and the Secretary concerned.

     SEC. 534. REVIEW OF ARMED FORCES PROGRAMS FOR PREPARATION 
                   FOR, PARTICIPATION IN, AND CONDUCT OF ATHLETIC 
                   COMPETITIONS.

       (a) Requirement for Review.--The Secretary of Defense shall 
     conduct a comprehensive review of the programs of the active 
     and reserve components of the Armed Forces for preparation 
     for, participation in, and conduct of athletic competitions.
       (b) Consideration of Funding.--The matters reviewed under 
     subsection (a) shall include the funding sources that are 
     currently available for the programs referred to in such 
     subsection and any relevant limitations on the use of such 
     funding sources.
       (c) Report.--Not later than March 3, 2003, the Secretary 
     shall submit to the Committees on Armed Services of the 
     Senate and the House of Representatives a report on the 
     Secretary's findings and conclusions resulting from the 
     review. The report shall include the following matters:
       (1) The Secretary's views on the adequacy of the existing 
     funding sources for the programs referred to in subsection 
     (a).
       (2) Any recommendations that the Secretary may have 
     regarding limitations on the use of such funding sources or 
     any inadequacies in the funding for such programs.
       (3) An assessment of the issues related to, and 
     recommendations of the Secretary for, achieving consistent 
     funding and policy treatment with regard to participation by 
     active and reserve component personnel in athletic 
     competitions.
       (4) Any recommended legislation that the Secretary 
     considers appropriate regarding such programs.

     SEC. 535. REPEAL OF BAR TO ELIGIBILITY OF ARMY COLLEGE FIRST 
                   PROGRAM PARTICIPANTS FOR BENEFITS UNDER STUDENT 
                   LOAN REPAYMENT PROGRAM.

       Subsection (e) of section 573 of the National Defense 
     Authorization Act for Fiscal Year 2000 (Public Law 106-65; 10 
     U.S.C. 513 note) is repealed.
                   Subtitle E--Decorations and Awards

     SEC. 541. WAIVER OF TIME LIMITATIONS FOR AWARD OF ARMY 
                   DISTINGUISHED-SERVICE CROSS 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 subsection (b), 
     the award of each such decoration having been determined by 
     the Secretary of the Army 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 Florrisant, 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.

     SEC. 542. OPTION TO CONVERT AWARD OF ARMED FORCES 
                   EXPEDITIONARY MEDAL AWARDED FOR OPERATION 
                   FREQUENT WIND TO VIETNAM SERVICE MEDAL.

       (a) In General.--The Secretary of the military department 
     concerned shall, upon the application of an individual who is 
     an eligible Vietnam evacuation veteran, award that individual 
     the Vietnam Service Medal, notwithstanding any otherwise 
     applicable requirements for the award of that medal. Any such 
     award shall be made in lieu of the Armed Forces Expeditionary 
     Medal awarded the individual for participation in Operation 
     Frequent Wind.
       (b) Eligible Vietnam Evacuation Veteran.--For purposes of 
     this section, the term ``eligible Vietnam evacuation 
     veteran'' means a member or former member of the Armed Forces 
     who was awarded the Armed Forces Expeditionary Medal for 
     participation in military operations designated as Operation 
     Frequent Wind arising from the evacuation of Vietnam on April 
     29 and 30, 1975.

     SEC. 543. 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 in the Republic of Korea or the waters 
     adjacent thereto 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 have 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

[[Page H8120]]

     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.

     SEC. 544. 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.
                   Subtitle F--Administrative Matters

     SEC. 551. STAFFING AND FUNDING FOR DEFENSE PRISONER OF WAR/
                   MISSING PERSONNEL OFFICE.

       (a) Requirement for Staffing and Funding At Levels Required 
     for Performance of Full Range of Missions.--Subsection (a) of 
     section 1501 of title 10, United States Code, is amended by 
     adding at the end the following new paragraph:
       ``(5)(A) The Secretary of Defense shall ensure that the 
     office is provided sufficient military and civilian 
     personnel, and sufficient funding, to enable the office to 
     fully perform the complete range of missions of the office. 
     The Secretary shall ensure that Department of Defense 
     programming, planning, and budgeting procedures are 
     structured so as to ensure compliance with the preceding 
     sentence for each fiscal year.
       ``(B) For any fiscal year, the number of military and 
     civilian personnel assigned or detailed to the office may not 
     be less than the number requested in the President's budget 
     for fiscal year 2003, unless a level below such number is 
     expressly required by law.
       ``(C) For any fiscal year, the level of funding allocated 
     to the office within the Department of Defense may not be 
     below the level requested for such purposes in the 
     President's budget for fiscal year 2003, unless such a level 
     of funding is expressly required by law.''.
       (b) Name of Office.--Such subsection is further amended by 
     inserting after the first sentence of paragraph (1) the 
     following new sentence: ``Such office shall be known as the 
     Defense Prisoner of War/Missing Personnel Office.''.

     SEC. 552. THREE-YEAR FREEZE ON REDUCTIONS OF PERSONNEL OF 
                   AGENCIES RESPONSIBLE FOR REVIEW AND CORRECTION 
                   OF MILITARY RECORDS.

       (a) In General.--Chapter 79 of title 10, United States 
     Code, is amended by adding at the end the following new 
     section:

     ``Sec. 1559. Personnel limitation

       ``(a) Limitation.--During fiscal years 2003, 2004, and 
     2005, the Secretary of a military department may not carry 
     out any reduction in the number of military and civilian 
     personnel assigned to duty with the service review agency for 
     that military department below the baseline number for that 
     agency until--
       ``(1) the Secretary submits to Congress a report that--
       ``(A) describes the reduction proposed to be made;
       ``(B) provides the Secretary's rationale for that 
     reduction; and
       ``(C) specifies the number of such personnel that would be 
     assigned to duty with that agency after the reduction; and
       ``(2) a period of 90 days has elapsed after the date on 
     which the report is submitted.
       ``(b) Baseline Number.--The baseline number for a service 
     review agency under this section is--
       ``(1) for purposes of the first report with respect to a 
     service review agency under this section, the number of 
     military and civilian personnel assigned to duty with that 
     agency as of January 1, 2002; and
       ``(2) for purposes of any subsequent report with respect to 
     a service review agency under this section, the number of 
     such personnel specified in the most recent report with 
     respect to that agency under this section.
       ``(c) Service Review Agency Defined.--In this section, the 
     term `service review agency' means--
       ``(1) with respect to the Department of the Army, the Army 
     Review Boards Agency;
       ``(2) with respect to the Department of the Navy, the Board 
     for Correction of Naval Records; and
       ``(3) with respect to the Department of the Air Force, the 
     Air Force Review Boards Agency.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of such chapter is amended by adding at the end the 
     following new item:

``1559. Personnel limitation.''.

     SEC. 553. AUTHORITY FOR ACCEPTANCE OF VOLUNTARY SERVICES OF 
                   INDIVIDUALS AS PROCTORS FOR ADMINISTRATION OF 
                   ARMED SERVICES VOCATIONAL APTITUDE BATTERY 
                   TEST.

       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 administration to 
     secondary school students of the test known as the `Armed 
     Services Vocational Aptitude Battery'.''.

     SEC. 554. EXTENSION OF TEMPORARY EARLY RETIREMENT AUTHORITY.

       Effective January 1, 2002, section 4403(i) of the National 
     Defense Authorization Act for Fiscal Year 1993 (10 U.S.C. 
     1293 note) is amended by striking ``December 31, 2001'' and 
     inserting ``September 1, 2002''.
   Subtitle G--Matters Relating to Minorities and Women in the Armed 
                                 Forces

     SEC. 561. SURVEYS OF RACIAL AND ETHNIC ISSUES AND OF GENDER 
                   ISSUES IN THE ARMED FORCES.

       (a) Division of Annual Survey Into Four Quadrennial 
     Surveys.--(1) Section 481 of title 10, United States Code, is 
     amended to read as follows:

     ``Sec. 481. Racial and ethnic issues; gender issues: surveys

       ``(a) In General.--(1) The Secretary of Defense shall carry 
     out four quadrennial surveys (each in a separate year) in 
     accordance with this section to identify and assess racial 
     and ethnic issues and discrimination, and to identify and 
     assess gender issues and discrimination, among members of the 
     armed forces. Each such survey shall be conducted so as to 
     identify and assess the extent (if any) of activity among 
     such members that may be seen as so-called `hate group' 
     activity.
       ``(2) The four surveys shall be as follows:
       ``(A) To identify and assess racial and ethnic issues and 
     discrimination among members of the armed forces serving on 
     active duty.
       ``(B) To identify and assess racial and ethnic issues and 
     discrimination among members of the armed forces in the 
     reserve components.
       ``(C) To identify and assess gender issues and 
     discrimination among members of the armed forces serving on 
     active duty.
       ``(D) To identify and assess gender issues and 
     discrimination members of the armed forces in the reserve 
     components.
       ``(3) The surveys under this section relating to racial and 
     ethnic issues and discrimination shall be known as the `Armed 
     Forces Workplace and Equal Opportunity Surveys'. The surveys 
     under this section relating to gender issues and 
     discrimination shall be known as the `Armed Forces Workplace 
     and Gender Relations Surveys'.
       ``(4) Each survey under this section shall be conducted 
     separately from any other survey conducted by the Department 
     of Defense.
       ``(b) Armed Forces Workplace and Equal Opportunity 
     Surveys.--The Armed Forces

[[Page H8121]]

     Workplace and Equal Opportunity Surveys shall be conducted so 
     as to solicit information on racial and ethnic issues, 
     including issues relating to harassment and discrimination, 
     and the climate in the armed forces for forming professional 
     relationships among members of the armed forces of various 
     racial and ethnic groups. Both such surveys shall be 
     conducted so as to solicit information on 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) Armed Forces Workplace and Gender Relations 
     Surveys.--The Armed Forces Workplace and Gender Relations 
     Surveys shall be conducted so as to 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. Both such surveys 
     shall be conducted so as to solicit information on 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 Be Conducted in Different Years.--Each of 
     the four quadrennial surveys conducted under this section 
     shall be conducted in a different year from any other survey 
     conducted under this section, so that one such survey is 
     conducted during each year.
       ``(e) Reports to Congress.--Upon the completion of a survey 
     under this section, the Secretary shall submit to Congress a 
     report containing the results of the survey.
       ``(f) Inapplicability to Coast Guard.--This section does 
     not apply to the Coast Guard.''.
       (2) 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 and ethnic issues; gender issues: surveys.''.
       (b) Effective Date.--The first survey under section 481 of 
     title 10, United States Code, as amended by subsection 
     (a)(1), shall be carried out during 2003.

     SEC. 562. ANNUAL REPORT ON STATUS OF FEMALE MEMBERS OF THE 
                   ARMED FORCES.

       (a) Requirement for Report.--The Secretary of Defense shall 
     submit to Congress, for each of fiscal years 2002 through 
     2006, a report on the status of female members of the Armed 
     Forces. Information in the annual report shall be shown for 
     the Department of Defense as a whole and separately for each 
     of the Army, Navy, Air Force, and Marine Corps.
       (b) Matters To Be Included.--The report for a fiscal year 
     under subsection (a) shall include the following information:
       (1) The positions, weapon systems, and fields of skills for 
     which, by policy, female members are not eligible for 
     assignment, as follows:
       (A) In the report for fiscal year 2002--
       (i) an identification of each position, weapon system, and 
     field of skills for which, by policy, female members are not 
     eligible; and
       (ii) the rationale for the applicability of the policy to 
     each such position, weapon system, and field.
       (B) In the report for each fiscal year after fiscal year 
     2002, the positions, weapon systems, and fields for which 
     policy on the eligibility of female members for assignment 
     has changed during that fiscal year, including a discussion 
     of how the policy has changed and the rationale for the 
     change.
       (2) Information on joint spouse assignments, as follows:
       (A) The number of cases in which members of the Armed 
     Forces married to each other are in assignments to which they 
     were jointly assigned during that fiscal year, as defined in 
     the applicable Department of Defense and military department 
     personnel assignment policies.
       (B) The number of cases in which members of the Armed 
     Forces married to each other are in assignments to which they 
     were assigned during that fiscal year, but were not jointly 
     assigned (as so defined).
       (3) Promotion selection rates for female members, for male 
     members, and for all personnel in the reports submitted by 
     promotion selection boards in that fiscal year for promotion 
     to grades E-7, E-8, and E-9, and, in the case of commissioned 
     officers, promotion to grades O-4, O-5, and O-6.
       (4) Retention rates for female members in each grade and 
     for male members in each grade during that fiscal year.
       (5) Selection rates for female members and for male members 
     for assignment to grade O-6 and grade O-5 command positions 
     in reports of command selection boards that were submitted 
     during that fiscal year.
       (6) Selection rates for female members and for male members 
     for attendance at intermediate service schools (ISS) and, 
     separately, for attendance at senior service schools (SSS) in 
     reports of selection boards that were submitted during that 
     fiscal year.
       (7) The extent of assignments of female members during that 
     fiscal year in each field in which at least 80 percent of the 
     Armed Forces personnel assigned in the field are men.
       (8) The incidence of sexual harassment complaints made 
     during that fiscal year, stated as the number of cases in 
     which complaints of sexual harassment were filed under 
     procedures of military departments that are applicable to the 
     submission of sexual harassment complaints, together with the 
     number and percent of the complaints that were substantiated.
       (9) Satisfaction (based on surveys) of female active-duty 
     members, female dependents of active-duty members, and female 
     dependents of nonactive duty members entitled to health care 
     provided by the Department of Defense with access to, and 
     quality of, women's health care benefits provided by the 
     Department of Defense.
       (c) Time for Report.--The report for a fiscal year under 
     this section shall be submitted not later than 120 days after 
     the end of that fiscal year.

     SEC. 563. WEAR OF ABAYAS BY FEMALE MEMBERS OF THE ARMED 
                   FORCES IN SAUDI ARABIA.

       (a) Prohibition 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 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.
       (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 instruction regarding the prohibition in 
     subsection (a). Such instruction shall be provided 
     immediately upon or not more than 48 hours prior to the 
     arrival of the member at a United States military 
     installation within the Kingdom of Saudi Arabia. The 
     instruction 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 by the United States with such contractors.
                          Subtitle H--Benefits

     SEC. 571. DEPARTMENT OF DEFENSE SUPPORT FOR PERSONS 
                   PARTICIPATING IN MILITARY FUNERAL HONORS 
                   DETAILS.

       Section 1491(d) of title 10, United States Code, is 
     amended--
       (1) by striking ``To provide a'' after ``Support.--'' and 
     inserting ``(1) To support a'';
       (2) by redesignating paragraph (1) as subparagraph (A) and 
     amending such subparagraph, as so redesignated, to read as 
     follows:
       ``(A) For a person who participates in a funeral honors 
     detail (other than a person who is a member of the armed 
     forces not in a retired status or an employee of the United 
     States), either transportation (or reimbursement for 
     transportation) and expenses or the daily stipend prescribed 
     under paragraph (2).'';
       (3) by redesignating paragraph (2) as subparagraph (B) and 
     in that subparagraph--
       (A) by striking ``Materiel, equipment, and training for'' 
     and inserting ``For''; and
       (B) by inserting before the period at the end ``and for 
     members of the armed forces in a retired status, materiel, 
     equipment, and training'';
       (4) by redesignating paragraph (3) as subparagraph (C) and 
     in that subparagraph--
       (A) by striking ``Articles of clothing for'' and inserting 
     ``For''; and
       (B) by inserting ``, articles of clothing'' after 
     ``subsection (b)(2)''; and
       (5) by adding at the end the following new paragraphs:
       ``(2) The Secretary of Defense shall prescribe annually a 
     flat rate daily stipend for purposes of paragraph (1)(A). 
     Such stipend shall be set at a rate so as to encompass 
     typical costs for transportation and other miscellaneous 
     expenses for persons participating in funeral honors details 
     who are members of the armed forces in a retired status and 
     other persons who are not members of the armed forces or 
     employees of the United States.
       ``(3) A stipend paid under this subsection to a member of 
     the armed forces in a retired status is in addition to any 
     compensation to which the member is entitled under section 
     435(a)(2) of title 37 and any other compensation to which the 
     member may be entitled.''.

     SEC. 572. EMERGENCY LEAVE OF ABSENCE PROGRAM.

       (a) In General.--Chapter 40 of title 10, United States 
     Code, is amended by adding at the end the following new 
     section:

     ``Sec. 709. Emergency leave of absence

       ``(a) Emergency Leave of Absence.--The Secretary concerned 
     may grant a member of the armed forces emergency leave of 
     absence for a qualifying emergency.
       ``(b) Limitations.--An emergency leave of absence under 
     this section--
       ``(1) may be granted only once for any member;
       ``(2) may be granted only to prevent the member from 
     entering unearned leave status or excess leave status; and
       ``(3) may not extend for a period of more than 14 days.

[[Page H8122]]

       ``(c) Qualifying Emergency.--In this section, the term 
     `qualifying emergency', with respect to a member of the armed 
     forces, means a circumstance that--
       ``(1) is due to--
       ``(A) a medical condition of a member of the immediate 
     family of the member; or
       ``(B) any other hardship that the Secretary concerned 
     determines appropriate for purposes of this section; and
       ``(2) is verified to the Secretary's satisfaction based 
     upon information or opinion from a source in addition to the 
     member that the Secretary considers to be objective and 
     reliable.
       ``(d) Military Department Regulations.--Regulations 
     prescribed under this section by the Secretaries of the 
     military department shall be as uniform as practicable and 
     shall be subject to approval by the Secretary of Defense.
       ``(e) Definitions.--In this section:
       ``(1) The term `unearned leave status' means leave approved 
     to be used by a member of the armed forces that exceeds the 
     amount of leave credit that has been accrued as a result of 
     the member's active service and that has not been previously 
     used by the member.
       ``(2) The term `excess leave status' means leave approved 
     to be used by a member of the armed forces that is unearned 
     leave for which a member is unable to accrue leave credit 
     during the member's current term of service before the 
     member's separation.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of such chapter is amended by adding at the end the 
     following new item:

``709. Emergency leave of absence.''.

     SEC. 573. ENHANCED FLEXIBILITY IN MEDICAL LOAN REPAYMENT 
                   PROGRAM.

       (a) Eligible Persons.--Subsection (d) of section 2173 of 
     title 10, United States Code, is amended by striking 
     ``Participants'' and all that follows through ``and 
     students'' and inserting ``Students''.
       (b) Loan Repayment Amounts.--Subsection (e)(2) of such 
     section is amended by striking the last sentence.

     SEC. 574. DESTINATIONS AUTHORIZED FOR GOVERNMENT PAID 
                   TRANSPORTATION OF ENLISTED PERSONNEL FOR REST 
                   AND RECUPERATION ABSENCE UPON EXTENDING DUTY AT 
                   DESIGNATED LOCATIONS OVERSEAS.

       (a) Expansion of Benefits.--Subsection (b)(2) of section 
     705 of title 10, United States Code, is amended by inserting 
     before the period at the end the following: ``, or to an 
     alternative destination and return at a cost not to exceed 
     the cost of round-trip transportation from the location of 
     the extended tour of duty to such nearest port''.
       (b) Change in Terminology.--(1) Subsection (b) of such 
     section is further amended by striking ``recuperative'' in 
     paragraphs (1) and (2) and inserting ``recuperation''.
       (2)(A) The heading of such section is amended to read as 
     follows:

     ``Sec. 705. Rest and recuperation absence: qualified enlisted 
       members extending duty at designated locations overseas''.

       (B) The item relating to such section in the table of 
     sections at the beginning of chapter 40 of such title is 
     amended to read as follows:

``705. Rest and recuperation absence: qualified enlisted members 
              extending duty at designated locations overseas.''.

     SEC. 575. VEHICLE STORAGE IN LIEU OF TRANSPORTATION WHEN 
                   MEMBER IS ORDERED TO A NONFOREIGN DUTY STATION 
                   OUTSIDE CONTINENTAL UNITED STATES.

       (a) Storage Costs Authorized.--Subsection (b) of section 
     2634 of title 10, United States Code, is amended by striking 
     paragraphs (1) and (2) and inserting the following:
       ``(b)(1) When a member receives a vehicle storage 
     qualifying order, the member may elect to have a motor 
     vehicle described in subsection (a) stored at the expense of 
     the United States at a location approved by the Secretary 
     concerned. In the case of a vehicle storage qualifying order 
     that is to make a change of permanent station, such storage 
     is in lieu of transportation authorized by subsection (a).
       ``(2) In this subsection, the term `vehicle storage 
     qualifying order' means any of the following:
       ``(A) An order to make a change of permanent station to a 
     foreign country in a case in which the laws, regulations, or 
     other restrictions imposed by the foreign country or by the 
     United States either--
       ``(i) preclude entry of a motor vehicle described in 
     subsection (a) into that country; or
       ``(ii) would require extensive modification of the vehicle 
     as a condition to entry.
       ``(B) An order to make a change of permanent station to a 
     nonforeign area outside the continental United States in a 
     case in which the laws, regulations, or other restrictions 
     imposed by that area or by the United States either--
       ``(i) preclude entry of a motor vehicle described in 
     subsection (a) into that area; or
       ``(ii) would require extensive modification of the vehicle 
     as a condition to entry.
       ``(C) An order under which a member is transferred or 
     assigned in connection with a contingency operation to duty 
     at a location other than the permanent station of the member 
     for a period of more than 30 consecutive days but which is 
     not considered a change of permanent station.''.
       (b) Nonforeign Area Outside the Continental United States 
     Defined.--Subsection (h) of such section is amended by adding 
     at the end the following new paragraph:
       ``(3) The term `nonforeign area outside the continental 
     United States' means any of the following: the States of 
     Alaska and Hawaii, the Commonwealths of Puerto Rico and the 
     Northern Mariana Islands, and any possession of the United 
     States.''.
       (c) Effective Date.--The amendments made by this section 
     apply to orders to make a change of permanent station to a 
     nonforeign area outside the continental United States (as 
     such term is defined in subsection (h)(3) of section 2634 of 
     title 10, United States Code, as added by subsection (b)) 
     that are issued on or after the date of the enactment of this 
     Act.
                          Subtitle I--Reports

     SEC. 581. QUADRENNIAL QUALITY OF LIFE REVIEW.

       (a) Requirement for Review.--(1) Chapter 2 of title 10, 
     United States Code, is amended by inserting after section 118 
     the following new section:

     ``Sec. 118a. Quadrennial quality of life review

       ``(a) Review Required.--(1) The Secretary of Defense shall 
     every four years 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 quality of life 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; and
       ``(3) to identify other actions that have the potential for 
     improving the quality of life of the members of the armed 
     forces.
       ``(c) Considerations.--The Secretary shall consider 
     addressing the following matters as part of the quadrennial 
     quality of life review:
       ``(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 
     Government policies and programs that affect the quality of 
     life of members.
       ``(d) Submission to Congressional Committees.--(1) The 
     Secretary shall submit a report on each quadrennial quality 
     of life review to the Committee on Armed Services of the 
     Senate and the Committee on Armed Services of the House of 
     Representatives. The report shall include the following:
       ``(A) The assumptions used in the review.
       ``(B) 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 report shall be submitted 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.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by inserting after the item relating to section 
     118 the following new item:

``118a. Quadrennial quality of life review.''.

       (b) First Quadrennial Quality of Life Review.--The first 
     quadrennial quality of life review under section 118a of 
     title 10, United States Code, as added by subsection (a), 
     shall be conducted during 2003, and the report on that review 
     required to be submitted to Congress under subsection (d) of 
     such section shall be submitted not later than the date on 
     which the President submits the budget for fiscal year 2005 
     to Congress.

     SEC. 582. REPORT ON DESIRABILITY AND FEASIBILITY OF 
                   CONSOLIDATING SEPARATE COURSES OF BASIC 
                   INSTRUCTION FOR JUDGE ADVOCATES.

       Not later than February 1, 2003, the Secretary of Defense 
     shall submit to the Committee on Armed Services of the Senate 
     and the Committee on Armed Services of the House of 
     Representatives a report on the desirability and feasibility 
     of consolidating the separate Army, Navy, and Air Force 
     courses of basic instruction for judge advocates into a 
     single course to be conducted at a single location. The 
     report shall include--
       (1) an assessment of the advantages and disadvantages of 
     such a consolidation;
       (2) a recommendation as to whether such a consolidation is 
     desirable and feasible; and
       (3) any proposal for legislative action that the Secretary 
     considers appropriate for carrying out such a consolidation.

[[Page H8123]]

     SEC. 583. REPORTS ON EFFORTS TO RESOLVE STATUS OF CAPTAIN 
                   MICHAEL SCOTT SPEICHER, UNITED STATES NAVY.

       (a) Reports.-- Not later than 90 days after the date of the 
     enactment of this Act, and every 120 days thereafter, the 
     Secretary of Defense shall submit to Congress a report on the 
     efforts of the United States Government to determine the 
     status of Captain Michael Scott Speicher, United States Navy, 
     whose aircraft was shot down over Iraq on the night of 
     January 17, 1991. Each such report shall be prepared in 
     consultation with the Secretary of State and the Director of 
     Central Intelligence.
       (b) Period Covered by Reports.--The first report under 
     subsection (a) shall cover efforts described in that 
     subsection from the time that Michael Scott Speicher's 
     aircraft was shot down over Iraq until the date of the 
     report, and each subsequent report shall cover efforts 
     described in that subsection since the last such report.
       (c) Report Elements.--Each report under subsection (a) 
     shall describe, for the period covered by such report, the 
     following:
       (1) All direct and indirect contacts by the United States 
     Government with the Government of Iraq regarding the status 
     of Michael Scott Speicher.
       (2) Any request made by the United States Government to the 
     government of another country, including the intelligence 
     service of such country, for assistance in resolving the 
     status of Michael Scott Speicher, including the response to 
     such request.
       (3) Each current lead on the status of Michael Scott 
     Speicher, including an assessment of the utility of such lead 
     in resolving the status of Michael Scott Speicher.
       (4) Any cooperation with nongovernmental organizations or 
     international organizations in resolving the 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 or unclassified form. To the 
     extent submitted in classified form, such report shall 
     include an unclassified summary.
       (e) Duration.--The requirement to submit reports under this 
     section shall cease to be effective upon a final 
     determination regarding the status of Michael Scott Speicher 
     by the Secretary of Defense.

     SEC. 584. 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 180 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 House of Representatives a report on volunteer 
     services described in subsection (b) that were provided by 
     members of the reserve components of the Armed Forces, while 
     not in a duty status pursuant to orders, during the period of 
     September 11 through September 14, 2001. The report shall 
     include a discussion of any recognition that the Secretary 
     considers appropriate for those members regarding the 
     provision of such services.
       (b) Covered Volunteer Services.--The volunteer services 
     referred to in subsection (a) are volunteer services of a 
     military-unique nature that were provided--
       (1) 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) in the vicinity of the Pentagon, Arlington, Virginia, 
     in support of emergency response to the terrorist attack on 
     the Pentagon on September 11, 2001; or
       (3) in the vicinity of Shanksville, Pennsylvania, in 
     support of emergency response to the terrorist-caused crash 
     of United Airlines Flight 93 in Shanksville, Pennsylvania, on 
     September 11, 2001.
          TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS

                     Subtitle A--Pay and Allowances

Sec. 601. Increase in basic pay for fiscal year 2003.
Sec. 602. Basic allowance for housing in cases of low-cost or no-cost 
              moves.
Sec. 603. Rate of basic allowance for subsistence for enlisted 
              personnel occupying single Government quarters without 
              adequate availability of meals.

           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. Increase in maximum rates for certain special pays, bonuses, 
              and financial assistance for health care professionals.
Sec. 616. Assignment incentive pay.
Sec. 617. Increase in maximum rates for prior service enlistment bonus.
Sec. 618. Retention incentives for health care professionals qualified 
              in a critical military skill.

            Subtitle C--Travel and Transportation Allowances

Sec. 621. Extension of leave travel deferral period for members 
              performing consecutive overseas tours of duty.
Sec. 622. Transportation of motor vehicles for members reported 
              missing.

             Subtitle D--Retired Pay and Survivor Benefits

Sec. 631. Permanent reduction from eight to six in number of years of 
              reserve service required for eligibility for retired pay 
              for non-regular service.
Sec. 632. Increased retired pay for enlisted Reserves credited with 
              extraordinary heroism.
Sec. 633. Elimination of possible inversion in retired pay cost-of-
              living adjustment for initial COLA computation.
Sec. 634. Technical revisions to so-called ``forgotten widows'' annuity 
              program.
Sec. 635. Expansion of authority of Secretary of Defense to waive time 
              limitations on claims against the Government for military 
              personnel benefits.
Sec. 636. Special compensation for certain combat-related disabled 
              uniformed services retirees.

                     Subtitle E--Montgomery GI Bill

Sec. 641. Time limitation for use of Montgomery GI Bill entitlement by 
              members of the Selected Reserve.
Sec. 642. Repayment requirements under Reserve Component Montgomery GI 
              Bill arising from failure to participate satisfactorily 
              in military service to be considered debts owed to the 
              United States.
Sec. 643. Technical adjustments to authority for certain members to 
              transfer educational assistance under Montgomery GI Bill 
              to dependents.

                       Subtitle F--Other Matters

Sec. 651. Payment of interest on student loans.
Sec. 652. Additional authority to provide assistance for families of 
              members of the Armed Forces.
Sec. 653. Repeal of authority for acceptance of honoraria by personnel 
              at certain Department of Defense schools.
Sec. 654. Addition of definition of continental United States in title 
              37.
                     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:

[[Page H8124]]

       

                                            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    $12,077.70    $12,137.10    $12,389.40    $12,829.20
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 0-7 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, the rate of basic pay for an officer in this grade 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 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.


[[Page H8125]]


     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.


[[Page H8126]]


                                              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............................................     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............................................     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, the rate of basic pay for an enlisted member in this grade 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, basic pay 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. 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. 603. RATE OF BASIC ALLOWANCE FOR SUBSISTENCE FOR 
                   ENLISTED PERSONNEL OCCUPYING SINGLE GOVERNMENT 
                   QUARTERS WITHOUT ADEQUATE AVAILABILITY OF 
                   MEALS.

       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 the department in 
     which the Coast Guard is operating, 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.''.
           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''.

[[Page H8127]]

       (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. INCREASE IN MAXIMUM RATES FOR CERTAIN SPECIAL PAYS, 
                   BONUSES, AND FINANCIAL ASSISTANCE FOR HEALTH 
                   CARE PROFESSIONALS.

       (a) Retention Bonus for Medical Officers.--Section 
     301d(a)(2) of title 37, United States Code, is amended by 
     striking ``$14,000'' and inserting ``$50,000''.
       (b) Retention Bonus for Dental Officers.--Section 
     301e(a)(2) of such title is amended by striking ``$14,000'' 
     and inserting ``$50,000''.
       (c) Incentive Special Pay for Medical Officers.--Section 
     302(b)(1) of such title is amended by striking the second 
     sentence and inserting the following new sentence: ``The 
     amount of incentive special pay paid to an officer under this 
     subsection may not exceed $50,000 for any 12-month period.''.
       (d) Retention Special Pay Optometrists.--Section 302a(b)(1) 
     of such title is amended by striking ``$6,000'' and inserting 
     ``$15,000''.
       (e) Accession Bonus for Registered Nurses.--Section 
     302d(a)(2) of such title is amended by striking ``$5,000'' 
     and inserting ``$30,000''.
       (f) Incentive Special Pay for Nurse Anesthetists.--Section 
     302e(a)(1) of such title is amended by striking ``$15,000'' 
     and inserting ``$50,000''.
       (g) Retention Special Pay for Pharmacy Officers.--Section 
     302i of such title is amended--
       (1) in subsections (a) and (b), by striking ``special pay 
     at the rates specified in subsection (d)'' both places it 
     appears and inserting ``retention special pay under this 
     section'';
       (2) in subsection (c), by striking ``Limitation.--'' and 
     inserting ``Limitation on Eligibility for Special Pay.--''; 
     and
       (3) by striking subsection (d) and inserting the following 
     new subsection:
       ``(d) Limitation on Amount of Special Pay.--The amount of 
     retention special pay paid to an officer under this section 
     may not exceed $15,000 for any 12-month period.''.
       (h) Financial Assistance for Nurse Officer Candidates.--
     Section 2130a(a) of title 10, United States Code, is 
     amended--
       (1) in paragraph (1), by striking ``$5,000'' in the first 
     sentence and inserting ``$10,000'' and by striking ``$2,500'' 
     in the second sentence and inserting ``$5,000''; and
       (2) in paragraph (2), by striking ``$500'' and inserting 
     ``$1,000''.
       (i) Application of Increase.--In the case of an amendment 
     made by this section to increase the maximum amount of a 
     special pay or bonus that may be paid during any 12-month 
     period, the amended limitation shall apply to 12-month 
     periods beginning after September 30, 2002.

     SEC. 616. ASSIGNMENT INCENTIVE PAY.

       (a) Authority.--(1) Chapter 5 of title 37, United States 
     Code, is amended by inserting after section 307 the following 
     new section:

     ``Sec. 307a. Special pay: assignment incentive pay

       ``(a) Authority.--The Secretary concerned may pay monthly 
     incentive pay under this section to a member of a uniformed 
     service who performs service, while entitled to basic pay, in 
     an assignment designated by the Secretary concerned.
       ``(b) Written Agreement.--The period for which incentive 
     pay will be provided under this section and the monthly rate 
     of the incentive pay for a member shall be specified in a 
     written agreement between the Secretary concerned and the 
     member. Agreements entered into by the Secretary of a 
     military department shall require the concurrence of the 
     Secretary of Defense.
       ``(c) Maximum Rate.--The maximum monthly rate of incentive 
     pay payable to a member under this section is $1,500.
       ``(d) 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.
       ``(e) 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 the 
     assignment by reason of temporary duty performed by the 
     member pursuant to orders or absence of the member for 
     authorized leave.
       ``(f) Termination of Authority.--No agreement under this 
     section may be entered into after December 31, 2005.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by inserting after the item relating to section 
     307 the following new item:

``307a. Special pay: assignment incentive pay.''.
       (b) Annual Report.--Not later than February 28, 2004, and 
     February 28, 2005, the Secretary of Defense shall submit to 
     the Committee on Armed Services of the Senate and the 
     Committee on Armed Services of the House of Representatives a 
     report on the use of the authority provided under section 
     307a of title 37, United States Code, as added by subsection 
     (a), including an assessment of the utility of that 
     authority.

     SEC. 617. INCREASE IN MAXIMUM RATES 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''.

     SEC. 618. RETENTION INCENTIVES FOR HEALTH CARE PROFESSIONALS 
                   QUALIFIED IN A CRITICAL MILITARY SKILL.

       (a) Exception to Limitation on Maximum Bonus Amount.--
     Subsection (d) of section 323 of title 37, United States 
     Code, is amended--
       (1) by inserting ``(1)'' before ``A member''; and
       (2) by adding at the end the following new paragraph:
       ``(2) The limitation in paragraph (1) on the total bonus 
     payments that a member may receive under this section does 
     not apply with respect to an officer who is assigned duties 
     as a health care professional.''.
       (b) Exception to Years of Service Limitation.--Subsection 
     (e) of such section is amended--
       (1) by redesignating paragraphs (1) and (2) as 
     subparagraphs (A) and (B), respectively;
       (2) by inserting ``(1)'' before ``A retention''; and
       (3) by adding at the end the following new paragraph:
       ``(2) The limitations in paragraph (1) do not apply with 
     respect to an officer who is assigned duties as a health care 
     professional during the period of active duty for which the 
     bonus is being offered.''.
            Subtitle C--Travel and Transportation Allowances

     SEC. 621. EXTENSION OF LEAVE TRAVEL DEFERRAL PERIOD FOR 
                   MEMBERS PERFORMING CONSECUTIVE OVERSEAS TOURS 
                   OF DUTY.

       (a) Authorized Deferral Period.--Section 411b of title 37, 
     United States Code is amended by inserting after subsection 
     (a) the following new subsection:
       ``(b) Authority to Defer Travel; Limitations.--(1) Under 
     the regulations referred to in subsection (a), a member may 
     defer the travel for which the member is paid travel and 
     transportation allowances under this section until any time 
     before the completion of the consecutive tour at the same 
     duty station or the completion of the tour of duty at the new 
     duty station under the order involved, as the case may be.
       ``(2) If a member is unable to undertake the travel before 
     expiration of the deferral period under paragraph (1) because 
     of duty in connection with a contingency operation, the 
     member may defer the travel until not more than one year 
     after the date on which the member's duty in connection with 
     the contingency operation ends.''.
       (b) Conforming and Clerical Amendments.--Such section is 
     further amended--
       (1) in subsection (a)--
       (A) by striking ``(a)(1)'' and inserting ``(a) Allowances 
     Authorized.--''; and
       (B) by striking paragraph (2); and
       (2) by striking ``(b) The allowances'' and inserting ``(c) 
     Limitation on Allowance Rate.--The allowances''.
       (c) Application of Amendment.--Subsection (b) of section 
     411b of title 37, United States Code, as added by subsection 
     (a), shall apply with respect to members of the uniformed 
     services in a deferred leave travel status under such section 
     as of the date of the enactment of this Act or becomes 
     entitled to travel and transportation allowances under such 
     section on or after that date.

     SEC. 622. 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 new 
     sentence: ``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.
             Subtitle D--Retired Pay and Survivor Benefits

     SEC. 631. PERMANENT REDUCTION FROM EIGHT TO SIX IN NUMBER OF 
                   YEARS OF RESERVE SERVICE REQUIRED FOR 
                   ELIGIBILITY FOR RETIRED PAY FOR NON-REGULAR 
                   SERVICE.

       (a) Reduction in Requirement for Years of Reserve Component 
     Service Before Retired Pay Eligibility.--Subsection (a)(3) of 
     section 12731 of title 10, United States Code, is amended--
       (1) by striking ``eight years'' and inserting ``six 
     years''; and
       (2) by inserting before the semicolon ``, except that in 
     the case of a person who completed the service requirements 
     of paragraph (2) before October 5, 1994, the number of years 
     of such qualifying service under this paragraph shall be 
     eight''.
       (b) Conforming Amendment.--Subsection (f) of such section 
     is repealed.
       (c) Effective Date.--The amendments made by subsection (a) 
     shall take effect on October 1, 2002. No benefit shall accrue 
     to any person for any period before that date by reason of 
     the enactment of those amendments.

[[Page H8128]]

     SEC. 632. 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; and
       (2) by inserting after subsection (a) the following new 
     subsection (b):
       ``(b) If a person entitled to retired pay under this 
     chapter has been credited by the Secretary concerned with 
     extraordinary heroism in the line of duty and if the highest 
     grade held satisfactorily by that person at any time in the 
     armed forces is an enlisted grade, the person'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.''.
       (b) Conforming Amendment.--Subsection (c) of such section, 
     as redesignated by subsection (a)(1), is amended by striking 
     ``amount computed under subsection (a)'' and inserting 
     ``total amount of the monthly retired pay computed under 
     subsections (a) and (b)''.
       (c) Effective Date.--The amendments made by subsections (a) 
     and (b) shall take effect on October 1, 2002, and shall apply 
     with respect to retired pay for months beginning on or after 
     that date.

     SEC. 633. ELIMINATION OF POSSIBLE INVERSION IN RETIRED PAY 
                   COST-OF-LIVING ADJUSTMENT FOR INITIAL COLA 
                   COMPUTATION.

       (a) Elimination of Possible COLA Inversion.--Section 1401a 
     of title 10, United States Code, is amended--
       (1) in subsections (c)(1), (d), and (e), by inserting ``but 
     subject to subsection (f)(2)'' after ``Notwithstanding 
     subsection (b)'';
       (2) in subsection (c)(2), by inserting ``(subject to 
     subsection (f)(2) as applied to other members whose retired 
     pay is computed on the current rates of basic pay in the most 
     recent adjustment under this section)'' after ``shall be 
     increased''; and
       (3) in subsection (f)--
       (A) by designating the text after the subsection heading as 
     paragraph (1), indenting that text two ems, and inserting 
     ``Prevention of retired pay inversions.--'' before 
     ``Notwithstanding''; and
       (B) by adding at the end the following new paragraph:
       ``(2) Prevention of cola inversions.--The percentage of the 
     first adjustment under this section in the retired pay of any 
     person, as determined under subsection (c)(1), (c)(2), (d), 
     or (e), may not exceed the percentage increase in retired pay 
     determined under subsection (b)(2) that is effective on the 
     same date as the effective date of such first adjustment.''.
       (b) Technical Amendments.--Such section is further 
     amended--
       (1) in subsection (d), by inserting ``or on or after August 
     1, 1986, if the member or former member did not elect to 
     receive a bonus under section 322 of title 37'' after 
     ``August 1, 1986,''; and
       (2) in subsection (e), by inserting ``and elected to 
     receive a bonus under section 322 of title 37'' after 
     ``August 1, 1986,''.

     SEC. 634. TECHNICAL REVISIONS TO SO-CALLED ``FORGOTTEN 
                   WIDOWS'' ANNUITY PROGRAM.

       (a) Clarification of Eligibility.--Subsection (a)(1) of 
     section 644 of the National Defense Authorization Act for 
     Fiscal Year 1998 (Public Law 105-85; 10 U.S.C. 1448 note) is 
     amended--
       (1) in subparagraph (A), by inserting after ``(A)'' the 
     following: ``became entitled to retired or retainer pay 
     before September 21, 1972,''; and
       (2) in subparagraph (B), by striking ``was a member of a 
     reserve component of the Armed Forces'' and inserting 
     ``died''.
       (b) Clarification of Interaction With Other Benefits.--(1) 
     Subsection (a)(2) of such section is amended by striking 
     ``and who'' and all that follows through ``note)''.
       (2) Subsection (b)(2) of such section is amended to read as 
     follows:
       ``(2) The amount of an annuity to which a surviving spouse 
     is entitled under this section for any period shall be 
     reduced (but not below zero) by any amount paid to that 
     surviving spouse for the same period under any of the 
     following provisions of law:
       ``(A) Section 1311(a) of title 38, United States Code 
     (relating to dependency and indemnity compensation payable by 
     the Secretary of Veterans Affairs).
       ``(B) Chapter 73 of title 10, United States Code.
       ``(C) Section 4 of Public Law 92-425 (10 U.S.C. 1448 
     note).''.
       (c) Clarification of Definition of Surviving Spouse.--
     Subsection (d)(2) of such section is amended by striking 
     ``the terms'' and all that follows through ``and (8)'' and 
     inserting ``such term in paragraph (9)''.
       (d) Specification in Law of Current Benefit Amount.--
     Subsection (b) of such section is amended--
       (1) in paragraph (1), by striking ``$165'' and inserting 
     ``$185.58''; and
       (2) in paragraph (3)--
       (A) by striking ``the date of the enactment of this Act'' 
     and inserting ``May 1, 2002,''; and
       (B) by striking the last sentence.
       (e) Specification of Enactment Month.--Subsection (e) of 
     such section is amended--
       (1) in paragraph (1), by striking ``the month in which this 
     Act is enacted'' and inserting ``November 1997''; and
       (2) in paragraph (2), by striking ``the first month that 
     begins after the month in which this Act is enacted'' and 
     inserting ``December 1997''.

     SEC. 635. EXPANSION OF AUTHORITY OF SECRETARY OF DEFENSE TO 
                   WAIVE TIME LIMITATIONS ON CLAIMS AGAINST THE 
                   GOVERNMENT FOR MILITARY PERSONNEL BENEFITS.

       (a) Authority for Waiver of Time Limitations.--Paragraph 
     (1) of section 3702(e) of title 31, United States Code, is 
     amended by striking ``a claim'' and all that follows through 
     ``title 10'' and inserting ``a claim referred to in 
     subsection (a)(1)(A)''.
       (b) Technical Amendments.--(1) Such paragraph is further 
     amended--
       (A) by striking ``Upon the request'' and all that follows 
     through ``the Secretary of Defense'' and inserting ``The 
     Secretary of Defense'';
       (B) by striking ``and, subject to paragraph (2), settle the 
     claim''; and
       (C) by adding at the end the following new sentence: ``In 
     the case of a claim by or with respect to a member of the 
     uniformed services who is not under the jurisdiction of the 
     Secretary of a military department, such a waiver may be made 
     only upon the request of the Secretary concerned (as defined 
     in section 101 of title 37).''.
       (2) Paragraph (2) of such section is amended--
       (A) by striking ``under paragraph (1)' and inserting 
     ``under subsection (a)(1)(A)''; and
       (B) by inserting before the period at the end the 
     following: ``, except that in the case of a claim for retired 
     pay or survivor benefits, if the obligation claimed would 
     have been paid from a trust fund if timely paid, the payment 
     of the claim shall be made from that trust fund''.
       (c) Effective Date.--The amendment made by subsection (a) 
     shall apply with respect to claims against the United States 
     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.

     SEC. 636. SPECIAL COMPENSATION FOR CERTAIN COMBAT-RELATED 
                   DISABLED UNIFORMED SERVICES RETIREES.

       (a) Authority.--(1) Chapter 71 of title 10, United States 
     Code, is amended by inserting after section 1413 the 
     following new section:

     ``Sec. 1413a. Special compensation for certain combat-related 
       disabled uniformed services retirees

       ``(a) Authority.--The Secretary concerned shall pay to each 
     eligible combat-related disabled uniformed services retiree 
     who elects benefits under this section a monthly amount for 
     the combat-related disability of the retiree determined under 
     subsection (b).
       ``(b) Amount.--
       ``(1) Determination of monthly amount.--Subject to 
     paragraphs (2) and (3), the monthly amount to be paid an 
     eligible combat-related disabled uniformed services retiree 
     for a combat-related disability under subsection (a) is the 
     monthly amount of compensation to which the retiree would be 
     entitled solely for the combat-related disability consistent 
     with chapter 11 of title 38.
       ``(2) Maximum amount.--The amount paid to an eligible 
     combat-related disabled uniformed services retiree for any 
     month under paragraph (1) may not exceed the amount of the 
     reduction in retired pay that is applicable to the retiree 
     for that month under sections 5304 and 5305 of title 38.
       ``(3) Special rules for chapter 61  disability retirees.--
     In the case of an eligible combat-related disabled uniformed 
     services retiree who is retired under chapter 61 of this 
     title, the amount of the payment under paragraph (1) for any 
     month shall be reduced by the amount (if any) by which 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) Eligible Retirees.--For purposes of this section, an 
     eligible combat-related disabled uniformed services retiree 
     referred to in subsection (a) is a member of the uniformed 
     services entitled to retired pay who--
       ``(1) has completed at least 20 years of service in the 
     uniformed services that are creditable for purposes of 
     computing the amount of retired pay to which the member is 
     entitled; and
       ``(2) has a qualifying combat-related disability.
       ``(d) Procedures.--The Secretary of Defense shall prescribe 
     procedures and criteria under which a disabled uniformed 
     services retiree may apply to the Secretary of a military 
     department to be considered to be an eligible combat-related 
     disabled uniformed services retiree. Such procedures shall 
     apply uniformly throughout the Department of Defense.
       ``(e) Qualifying Combat-Related Disability.--In this 
     section, the term `qualifying combat-related disability' 
     means either of the following:
       ``(1) A disability that--
       ``(A) is attributable to an injury for which the member was 
     awarded the Purple Heart; and
       ``(B) is rated as not less than 10 percent disabling--
       ``(i) by the Secretary concerned, as of the date on which 
     the member is retired from the uniformed services, under 
     criteria prescribed by the Secretary of Defense; or
       ``(ii) by the Secretary of Veterans Affairs.
       ``(2) A service-connected disability that--
       ``(A) was incurred (as determined under criteria prescribed 
     by the Secretary of Defense)--
       ``(i) as a direct result of armed conflict;
       ``(ii) while engaged in hazardous service;
       ``(iii) in the performance of duty under conditions 
     simulating war; or
       ``(iv) through an instrumentality of war; and
       ``(B) is rated as not less than 60 percent disabling--
       ``(i) by the Secretary concerned, as of the date on which 
     the member is retired from the uniformed services, under 
     criteria prescribed by the Secretary of Defense; or
       ``(ii) by the Secretary of Veterans Affairs.

[[Page H8129]]

       ``(f) Construction with Special Compensation for Severely 
     Disabled Uniformed Services Retirees.--
       ``(1) Single source of compensation.--An individual who is 
     paid special compensation under this section may not receive 
     special compensation under section 1413 of this title.
       ``(2) Election of source.--An individual who is eligible 
     for special compensation under this section and special 
     compensation under section 1413 of this title shall elect 
     which special compensation to receive.
       ``(3) Regulations.--The Secretary of Defense shall 
     prescribe in regulations the manner and form of an election 
     under this subsection.
       ``(g) Status of Payments.--Payments under this section are 
     not retired pay.
       ``(h) Source of Payments.--Payments under this section for 
     any fiscal year shall be paid out of funds appropriated for 
     pay and allowances payable by the Secretary concerned for 
     that fiscal year.
       ``(i) Other Definitions.--In this section:
       ``(1) The term `service-connected' has the meaning given 
     such term in section 101 of title 38.
       ``(2) The term `retired pay' includes retainer pay, 
     emergency officers' retirement pay, and naval pension.''.
       (2) Section 1413a of title 10, United States Code, as added 
     by paragraph (1), shall take effect not later than 180 days 
     after the date of the enactment of this Act.
       (3) The table of sections at the beginning of chapter 71 of 
     such title is amended by inserting after the item relating to 
     section 1413 the following new item:

``1413a. Special compensation for certain combat-related disabled 
              uniformed services retirees.''.
       (b) Special Compensation for Certain Severely Disabled 
     Uniformed Services Retirees.--Section 1413 of title 10, 
     United States Code, is amended--
       (1) by redesignating subsections (e), (f) and (g) as 
     subsections (f), (g), and (h), respectively; and
       (2) by inserting after subsection (d) the following new 
     subsection (e):
       ``(e) Construction with Special Compensation for Combat-
     Disabled Uniformed Services Retirees.--(1) An individual who 
     is paid special compensation under this section may not 
     receive special compensation under section 1413a of this 
     title.
       ``(2) An individual who is eligible for special 
     compensation under this section and special compensation 
     under section 1413a of this title shall elect which special 
     compensation to receive.
       ``(3) The Secretary of Defense shall prescribe in 
     regulations the manner and form of an election under this 
     subsection.''.
                     Subtitle E--Montgomery GI Bill

     SEC. 641. 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. 642. REPAYMENT REQUIREMENTS UNDER RESERVE COMPONENT 
                   MONTGOMERY GI BILL ARISING FROM FAILURE TO 
                   PARTICIPATE SATISFACTORILY IN MILITARY SERVICE 
                   TO BE CONSIDERED DEBTS OWED TO THE UNITED 
                   STATES.

       Section 16135 of title 10, United States Code, is amended 
     by adding at the end the following new subsection:
       ``(c)(1) Subject to subsection (a)(2), 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 less than five years after the termination of an 
     enlistment or other agreement under this section does not 
     discharge the person signing such enlistment or other 
     agreement from a debt arising under the enlistment or 
     agreement, respectively, under this subsection.''.

     SEC. 643. TECHNICAL ADJUSTMENTS TO AUTHORITY FOR CERTAIN 
                   MEMBERS TO TRANSFER EDUCATIONAL ASSISTANCE 
                   UNDER MONTGOMERY GI BILL TO DEPENDENTS.

       (a) Clarification of Rate of Educational Assistance for 
     Dependents to Whom Entitlement is Transferred.--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) Source of Funds from Increased Usage.--Section 3035(b) 
     of such title is amended--
       (1) in paragraph (1), by striking ``paragraphs (2) and (3) 
     of this subsection'' and inserting ``paragraphs (2), (3), and 
     (4)''; and
       (2) by adding at the end the following new paragraph:
       ``(4) Payments attributable to the increased usage of 
     benefits as a result of transfers of entitlement to basic 
     educational assistance under section 3020 of this title shall 
     be made from the Department of Defense Education Benefits 
     Fund established under section 2006 of title 10 or from 
     appropriations made to the Department of Transportation, as 
     appropriate.''.
       (c) Effective Date.--(1) The amendments made by subsection 
     (a) shall take effect as if included in the enactment of 
     section 3020 of title 38, United States Code, by section 
     654(a)(1) of the National Defense Authorization Act for 
     Fiscal Year 2002 (Public Law 107-107; 115 Stat. 1153).
       (2) The amendments made by subsection (b) shall take effect 
     as if made by section 654 of the National Defense 
     Authorization Act for Fiscal Year 2002 (Public Law 107-107; 
     115 Stat. 1153).
                       Subtitle F--Other Matters

     SEC. 651. 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 Members.--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 the Department in which 
     the Coast Guard is operating 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), 
     455(l), and 464(j) of the Higher Education Act of 1965 (20 
     U.S.C. 1078(o), 1087e(l), 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 (IV)'' after ``clause (i)(II)''; and
       (C) by striking subparagraph (C) and inserting the 
     following:

[[Page H8130]]

       ``(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 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.''.
       (c) Federal Direct Loans.--Section 455 of the Higher 
     Education Act of 1965 (20 U.S.C. 1087e) is amended by adding 
     at the end the following new subsection:
       ``(l) 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 Secretary shall grant the borrower forbearance, in the 
     form of a temporary cessation of all payments on the loan 
     other than the payments of interest on the loan that are made 
     under that paragraph.''.
       (d) 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).''.
       (e) 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. 652. 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. 653. REPEAL OF AUTHORITY FOR 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.--The repeal made by subsection (a) 
     shall apply with respect to appearances made, speeches 
     presented, and articles published on or after October 1, 
     2002.

     SEC. 654. ADDITION OF DEFINITION OF CONTINENTAL UNITED STATES 
                   IN TITLE 37.

       (a) Definition.--Section 101(1) of title 37, United States 
     Code, is amended--
       (1) by inserting ``(A)'' after ``(1)''; and
       (2) by adding at the end the following new subparagraph:
       ``(B) The term `continental United States' means the 48 
     contiguous States and the District of Columbia.''.
       (b) Conforming Amendments.--Title 37, United States Code, 
     is amended as follows:
       (1) Section 314(a)(3) is amended by striking ``the 48 
     contiguous States and the District of Columbia'' and 
     inserting ``the continental United States''.
       (2) Section 403b(i) is amended by striking paragraph (6).
       (3) Section 409 is amended by striking subsection (e).
       (4) Section 411b(a) is amended by striking ``the 48 
     contiguous States and the District of Columbia'' both places 
     it appears and inserting ``the continental United States''.
       (5) Section 411d is amended by striking subsection (d).
       (6) Section 430 is amended by striking subsection (f) and 
     inserting the following new subsection (f):
       ``(f) Definitions.--In this section:
       ``(1) The term `formal education' means the following:
       ``(A) A secondary education.
       ``(B) An undergraduate college education.
       ``(C) A graduate education pursued on a full-time basis at 
     an institution of higher education.
       ``(D) Vocational education pursued on a full-time basis at 
     a postsecondary vocational institution.
       ``(2) The term `institution of higher education' has the 
     meaning given that term in section 101 of the Higher 
     Education Act of 1965 (20 U.S.C. 1001).
       ``(3) The term `postsecondary vocational institution' has 
     the meaning given that term in section 102(c) of the Higher 
     Education Act of 1965 (20 U.S.C. 1002(c)).''.
                   TITLE VII--HEALTH CARE PROVISIONS

              Subtitle A--Health Care Program Improvements

Sec. 701. Elimination of requirement for TRICARE preauthorization of 
              inpatient mental health care for medicare-eligible 
              beneficiaries.
Sec. 702. Continued TRICARE eligibility of dependents residing at 
              remote locations after departure of sponsors for 
              unaccompanied assignments and eligibility of dependents 
              of reserve component members ordered to active duty.
Sec. 703. Eligibility of surviving dependents for TRICARE dental 
              program benefits after discontinuance of former 
              enrollment.
Sec. 704. Department of Defense Medicare-Eligible Retiree Health Care 
              Fund.
Sec. 705. Approval of medicare providers as TRICARE providers.
Sec. 706. Technical corrections relating to transitional health care 
              for members separated from active duty.
Sec. 707. Extension of temporary authority to enter into personal 
              services contracts for the performance of health care 
              responsibilities at locations other than military medical 
              treatment facilities.
Sec. 708. Access to health care services for beneficiaries eligible for 
              TRICARE and Department of Veterans Affairs health care.
Sec. 709. Disclosure of information on Project 112 to Department of 
              Veterans Affairs.

                          Subtitle B--Reports

Sec. 711. Claims information.
Sec. 712. Comptroller General report on provision of care under the 
              TRICARE program.
Sec. 713. Repeal of report requirement.

Subtitle C--Department of Defense-Department of Veterans Affairs Health 
                           Resources Sharing

Sec. 721. Revised coordination and sharing guidelines.
Sec. 722. Health care resources sharing and coordination project.
Sec. 723. Report on improved coordination and sharing of health care 
              and health care resources following domestic acts of 
              terrorism or domestic use of weapons of mass destruction.

[[Page H8131]]

Sec. 724. Interoperability of Department of Veterans Affairs and 
              Department of Defense pharmacy data systems.
Sec. 725. Joint pilot program for providing graduate medical education 
              and training for physicians.
Sec. 726. Repeal of certain limits on Department of Veterans Affairs 
              resources.
              Subtitle A--Health Care Program Improvements

     SEC. 701. ELIMINATION OF REQUIREMENT FOR TRICARE 
                   PREAUTHORIZATION OF INPATIENT MENTAL HEALTH 
                   CARE FOR MEDICARE-ELIGIBLE BENEFICIARIES.

       (a) Elimination of Requirement.--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 subparagraph (B),''; and
       (3) by adding at the end the following new subparagraphs:
       ``(B) Preadmission authorization for inpatient mental 
     health services is not required under subparagraph (A) in the 
     following cases:
       ``(i) In the case of an emergency.
       ``(ii) 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.), subject to subparagraph (C).
       ``(C) In a case of inpatient mental health services to 
     which subparagraph (B)(ii) applies, the Secretary shall 
     require advance authorization for a continuation of the 
     provision of such services after benefits cease to be payable 
     for such services under such part A.''.
       (b) Effective Date.--The amendments made by subsection (a) 
     shall take effect October 1, 2003.

     SEC. 702. CONTINUED TRICARE ELIGIBILITY OF DEPENDENTS 
                   RESIDING AT REMOTE LOCATIONS AFTER DEPARTURE OF 
                   SPONSORS FOR UNACCOMPANIED ASSIGNMENTS AND 
                   ELIGIBILITY OF DEPENDENTS OF RESERVE COMPONENT 
                   MEMBERS ORDERED TO ACTIVE DUTY.

       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;
       ``(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, or
       ``(C) is a dependent of a reserve component member ordered 
     to active duty for a period of more than 30 days and is 
     residing with the member, and the residence is located more 
     than 50 miles, or approximately one hour of driving time, 
     from the nearest military medical treatment facility adequate 
     to provide the needed care.''.

     SEC. 703. 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 member 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. 704. 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. 705. APPROVAL OF MEDICARE PROVIDERS AS TRICARE 
                   PROVIDERS.

       (a) In General.--Section 1079 of title 10, United States 
     Code, is amended by adding at the end the following new 
     subsection:
       ``(q) Subject to subsection (a), a physician or other 
     health care practitioner who is eligible to receive 
     reimbursement for services provided under medicare (as 
     defined in section 1086(d)(3)(C) of this title) shall be 
     considered approved to provide medical care authorized under 
     this section and section 1086 of this title unless the 
     administering Secretaries have information indicating 
     medicare, TRICARE, or other Federal health care program 
     integrity violations by the physician or other health care 
     practitioner.''.
       (b) Applicability.--The amendment made by subsection (a) 
     shall apply with respect to any contract under the TRICARE 
     program entered into on or after the date of the enactment of 
     this Act.

     SEC. 706. 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. 707. EXTENSION OF TEMPORARY AUTHORITY TO ENTER INTO 
                   PERSONAL SERVICES CONTRACTS FOR THE PERFORMANCE 
                   OF HEALTH CARE RESPONSIBILITIES 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. 708. ACCESS TO HEALTH CARE SERVICES FOR BENEFICIARIES 
                   ELIGIBLE FOR TRICARE AND DEPARTMENT OF VETERANS 
                   AFFAIRS HEALTH CARE.

       (a) Requirement To Establish Process.--(1) The Secretary of 
     Defense shall prescribe in regulations a process for 
     resolving issues relating to patient safety and continuity of 
     care for covered beneficiaries who are concurrently entitled 
     to health care under the TRICARE program and eligible for 
     health care services provided by the Department of Veterans 
     Affairs. The Secretary shall--
       (A) ensure that the process provides for coordination of, 
     and access to, health care from the two sources in a manner 
     that prevents diminution of access to health care from either 
     source; and
       (B) in consultation with the Secretary of Veterans Affairs, 
     prescribe a clear definition of an ``episode of care'' for 
     use in the resolution of patient safety and continuity of 
     care issues under such process.
       (2) Not later than May 1, 2003, the Secretary shall submit 
     to the Committees on Armed Services of the Senate and of the 
     House of Representatives a report describing the process 
     prescribed under paragraph (1).
       (3) While prescribing the process under paragraph (1) and 
     upon completion of the report under paragraph (2), the 
     Secretary shall provide to the Comptroller General 
     information that would be relevant in carrying out the study 
     required by subsection (b).
       (b) Comptroller General Study and Report.--(1) The 
     Comptroller General shall conduct a study of the health care 
     issues of covered beneficiaries described in subsection (a). 
     The study shall include the following:
       (A) An analysis of whether covered beneficiaries who seek 
     services through the Department of Veterans Affairs are 
     receiving needed health care services in a timely manner from 
     the Department of Veterans Affairs, as compared to the 
     timeliness of the care available to covered beneficiaries 
     under TRICARE Prime (as set forth in access to care standards 
     under TRICARE program policy that are applicable to the care 
     being sought).
       (B) An evaluation of the quality of care for covered 
     beneficiaries who do not receive needed services from the 
     Department of Veterans Affairs within a time period that is 
     comparable to the time period provided for under such access 
     to care standards and who then must seek alternative care 
     under the TRICARE program.
       (C) Recommendations to improve access to, and timeliness 
     and quality of, care for covered beneficiaries described in 
     subsection (a).
       (D) An evaluation of the feasibility and advisability of 
     making access to care standards applicable jointly under the 
     TRICARE program and the Department of Veterans Affairs health 
     care system.
       (E) A review of the process prescribed by the Secretary of 
     Defense under subsection (a) to determine whether the process 
     ensures the adequacy and quality of the health care services 
     provided to covered beneficiaries under the TRICARE program 
     and through the Department of Veterans Affairs, together with 
     timeliness of access to such services and patient safety.
       (2) Not later than 60 days after the congressional 
     committees specified in subsection (a)(2) receive the report 
     required under that subsection, the Comptroller General shall 
     submit to those committees a report on the study conducted 
     under this subsection.
       (c) Definitions.--In this section:

[[Page H8132]]

       (1) The term ``covered beneficiary'' has the meaning 
     provided by section 1072(5) of title 10, United States Code.
       (2) The term ``TRICARE program'' has the meaning provided 
     by section 1072(7) of such title.
       (3) The term ``TRICARE Prime'' has the meaning provided by 
     section 1097a(f) of such title.

     SEC. 709. DISCLOSURE OF INFORMATION ON PROJECT 112 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 records and information of the 
     Department of Defense on Project 112 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 Project 112.
       (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) Identification of Other Projects or Tests.--The 
     Secretary of Defense also shall work with veterans and 
     veterans service organizations to identify other projects or 
     tests conducted by the Department of Defense that may have 
     exposed members of the Armed Forces to chemical or biological 
     agents.
       (d) GAO Reports on Plan and Implementation.--(1) Not later 
     than 30 days after submission of the plan under subsection 
     (a), the Comptroller General shall submit to Congress a 
     report reviewing the plan. The report shall include an 
     examination of whether adequate resources have been 
     committed, the timeliness of the information to be released 
     to the Department of Veterans Affairs, and the adequacy of 
     the procedures to notify affected veterans of potential 
     exposure.
       (2) Not later than six months after implementation of the 
     plan begins, the Comptroller General shall submit to Congress 
     a report evaluating the progress in the implementation of the 
     plan.
       (e) DOD Reports on Implementation.--(1) Not later than six 
     months after the date of the enactment of this Act, and upon 
     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.
       (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 Project 112 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.
       (f) Project 112.--For purposes of this section, Project 112 
     refers to the chemical and biological weapons vulnerability-
     testing program of the Department of Defense conducted by the 
     Deseret Test Center from 1963 to 1969. The project included 
     the Shipboard Hazard and Defense (SHAD) project of the Navy.
                          Subtitle B--Reports

     SEC. 711. 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 
     information required in support of claims for payment for 
     health care items and services provided under the TRICARE 
     program to that information that is identical to 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.) except 
     for that information, if any, that is uniquely required by 
     the TRICARE program. The Secretary of Defense shall report to 
     the Committee on Armed Services of the Senate and the 
     Committee on Armed Services of the House of Representatives 
     any information that is excepted under this provision, and 
     the justification for that exception.''.
       (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.
       (c) Comptroller General Report on TRICARE Claims 
     Processing.--Not later than March 31, 2003, the Comptroller 
     General shall submit to Congress an evaluation of the 
     continuing impediments to cost effective claims processing 
     under the TRICARE program. The evaluation shall include a 
     discussion of the following:
       (1) The extent of progress implementing improvements in 
     claims processing, particularly regarding the application of 
     best industry practices.
       (2) The extent of progress in simplifying claims processing 
     procedures, including the elimination of, or reduction in, 
     the complexity of the Health Care Service Record 
     requirements.
       (3) The cost effectiveness of the data collection and fraud 
     prevention capabilities of existing claims processing 
     practices.
       (4) Recommendations for improving the claims processing 
     system that will reduce processing and administration costs, 
     create greater competition, and improve fraud-prevention 
     activities.

     SEC. 712. COMPTROLLER GENERAL REPORT ON PROVISION OF CARE 
                   UNDER THE TRICARE PROGRAM.

       Not later than March 31, 2003, the Comptroller General 
     shall submit to Congress an evaluation of the nature of, 
     reasons for, extent of, and trends regarding network provider 
     instability under the TRICARE program, and the effectiveness 
     of efforts by the Department of Defense and managed care 
     support contractors to measure and mitigate such instability. 
     The evaluation shall include a discussion of the following:
       (1) The adequacy of measurement tools of TRICARE network 
     instability and their use by the Department of Defense and 
     managed care support contractors to assess network adequacy 
     and stability.
       (2) Recommendations for improvements needed in measurement 
     tools or their application.
       (3) The relationship of reimbursement rates and 
     administration requirements (including preauthorization 
     requirements) to TRICARE network instability.
       (4) The extent of problems under the TRICARE program and 
     likely future trends with and without intervention using 
     existing authority.
       (5) Use of existing authority by the Department of Defense 
     and TRICARE managed care support contractors to apply higher 
     reimbursement rates in specific geographic areas.
       (6) Recommendations for specific fiscally prudent measures 
     that could mitigate negative trends or improve provider and 
     network stability.

     SEC. 713. REPEAL OF REPORT REQUIREMENT.

       Notwithstanding subsection (f)(2) of section 712 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-179), the amendment made by subsection (e) of 
     such section shall not take effect and the paragraph amended 
     by such subsection is repealed.
Subtitle C--Department of Defense-Department of Veterans Affairs Health 
                           Resources Sharing

     SEC. 721. REVISED COORDINATION AND SHARING GUIDELINES.

       (a) In General.--(1) Section 8111 of title 38, United 
     States Code, is amended to read as follows:

     ``Sec. 8111. Sharing of Department of Veterans Affairs and 
       Department of Defense health care resources

       ``(a) Required Coordination and Sharing of Health Care 
     Resources.--The Secretary of Veterans Affairs and the 
     Secretary of Defense shall enter into agreements and 
     contracts for the mutually beneficial coordination, use, or 
     exchange of use of the health care resources of the 
     Department of Veterans Affairs and the Department of Defense 
     with the goal of improving the access to, and quality and 
     cost effectiveness of, the health care provided by the 
     Veterans Health Administration and the Military Health System 
     to the beneficiaries of both Departments.
       ``(b) Joint Requirements for Secretaries of Veterans 
     Affairs and Defense.--To facilitate the mutually beneficial 
     coordination, use, or exchange of use of the health care 
     resources of the two Departments, the two Secretaries shall 
     carry out the following functions:
       ``(1) Develop and publish a joint strategic vision 
     statement and a joint strategic plan to shape, focus, and 
     prioritize the coordination and sharing efforts among 
     appropriate elements of the two Departments and incorporate 
     the goals and requirements of the joint sharing plan into the 
     strategic and performance plan of each Department under the 
     Government Performance and Results Act.
       ``(2) Jointly fund the interagency committee provided for 
     under subsection (c).
       ``(3) Continue to facilitate and improve sharing between 
     individual Department of Veterans Affairs and Department of 
     Defense health care facilities, but giving priority of effort 
     to initiatives (A) that improve sharing and coordination of 
     health resources at the intraregional and nationwide levels, 
     and (B) that improve the ability of both Departments to 
     provide coordinated health care.
       ``(4) Establish a joint incentive program under subsection 
     (d).
       ``(c) DOD-VA Health Executive Committee.--(1) There is 
     established an interagency committee to be known as the 
     Department of Veterans Affairs-Department of Defense Health 
     Executive Committee (hereinafter in this section referred to 
     as the `Committee'). The Committee is composed of--
       ``(A) the Deputy Secretary of Veterans Affairs and such 
     other officers and employees of the Department of Veterans 
     Affairs as the Secretary of Veterans Affairs may designate; 
     and
       ``(B) the Under Secretary of Defense for Personnel and 
     Readiness and such other officers and employees of the 
     Department of Defense as the Secretary of Defense may 
     designate.
       ``(2)(A) During odd-numbered fiscal years, the Deputy 
     Secretary of Veterans Affairs shall chair the Committee. 
     During even-numbered fiscal years, the Under Secretary of 
     Defense shall chair the Committee.
       ``(B) The Deputy Secretary and the Under Secretary shall 
     determine the size and structure

[[Page H8133]]

     of the Committee, as well as the administrative and 
     procedural guidelines for the operation of the Committee. The 
     two Departments shall share equally the Committee's cost of 
     personnel and administrative support and services. Support 
     for such purposes shall be provided at a level sufficient for 
     the efficient operation of the Committee, including a 
     permanent staff and, as required, other temporary working 
     groups of appropriate departmental staff and outside experts.
       ``(3) The Committee shall recommend to the Secretaries 
     strategic direction for the joint coordination and sharing 
     efforts between and within the two Departments under this 
     section and shall oversee implementation of those efforts.
       ``(4) The Committee shall submit to the two Secretaries and 
     to Congress an annual report containing such recommendations 
     as the Committee considers appropriate.
       ``(5) In order to enable the Committee to make 
     recommendations in its annual report under paragraph (4), the 
     Committee shall do the following:
       ``(A) Review existing policies, procedures, and practices 
     relating to the coordination and sharing of health care 
     resources between the two Departments.
       ``(B) Identify changes in policies, procedures, and 
     practices that, in the judgment of the Committee, would 
     promote mutually beneficial coordination, use, or exchange of 
     use of the health care resources of the two Departments, with 
     the goal of improving the access to, and quality and cost 
     effectiveness of, the health care provided by the Veterans 
     Health Administration and the Military Health System to the 
     beneficiaries of both Departments.
       ``(C) Identify and assess further opportunities for the 
     coordination and sharing of health care resources between the 
     Departments that, in the judgment of the Committee, would not 
     adversely affect the range of services, the quality of care, 
     or the established priorities for care provided by either 
     Department.
       ``(D) Review the plans of both Departments for the 
     acquisition of additional health care resources, especially 
     new facilities and major equipment and technology, in order 
     to assess the potential effect of such plans on further 
     opportunities for the coordination and sharing of health care 
     resources.
       ``(E) Review the implementation of activities designed to 
     promote the coordination and sharing of health care resources 
     between the Departments.
       ``(6) The Committee chairman, under procedures jointly 
     developed by the two Secretaries, may require the Inspector 
     General of either or both Departments to assist in activities 
     under paragraph (5)(E).
       ``(d) Joint Incentives Program.--(1) Pursuant to subsection 
     (b)(4), the two Secretaries shall carry out a program to 
     identify, provide incentives to, implement, fund, and 
     evaluate creative coordination and sharing initiatives at the 
     facility, intraregional, and nationwide levels. The program 
     shall be administered by the Committee established in 
     subsection (c), under procedures jointly prescribed by the 
     two Secretaries.
       ``(2) To facilitate the incentive program, effective 
     October 1, 2003, there is established in the Treasury a fund 
     to be known as the `DOD-VA Health Care Sharing Incentive 
     Fund'. Each Secretary shall annually contribute to the fund a 
     minimum of $15,000,000 from the funds appropriated to that 
     Secretary's Department. Such funds shall remain available 
     until expended.
       ``(3)(A) For each fiscal year during which the program 
     under this subsection is in effect, the Comptroller General 
     shall conduct a review of the implementation and 
     effectiveness of the incentives program under this 
     subsection. Upon completion of each such annual review, the 
     Comptroller General shall submit to the Committees on Armed 
     Services and Veterans' Affairs of the Senate and House of 
     Representatives a report on the results of that review. Each 
     such report shall be submitted not later than February 28 of 
     the year following the fiscal year covered by the report. In 
     addition, the Comptroller General shall conduct such a review 
     during the first five months of fiscal year 2004 and, not 
     later than February 28, 2004, shall submit to those 
     committees a report on the implementation and effectiveness 
     of the incentives program under this subsection to that date.
       ``(B) Each report under this paragraph shall describe 
     activities carried out under the program under this 
     subsection during the preceding fiscal year (or, in the case 
     of the first such report, to the date of the submission of 
     the report). Each report shall include at least the 
     following:
       ``(i) An analysis of the initiatives funded by the 
     Committee, and the funds so expended by such initiatives, 
     from the DOD-VA Health Care Sharing Incentive Fund, including 
     the purposes and effects of those initiatives on improving 
     access to care by beneficiaries, improvements in the quality 
     of care received by those beneficiaries, and efficiencies 
     gained in delivering services to those beneficiaries.
       ``(ii) Other matters of interest, including recommendations 
     from the Comptroller General for legislative improvements to 
     the program.
       ``(4) The program under this subsection shall terminate on 
     September 30, 2007.
       ``(e) Guidelines and Policies for Implementation of 
     Coordination and Sharing Recommendations, Contracts, and 
     Agreements.--(1) To implement the recommendations made by the 
     Committee under subsection (c)(2), as well as to carry out 
     other health care contracts and agreements for coordination 
     and sharing initiatives as they consider appropriate, the two 
     Secretaries shall jointly issue guidelines and policy 
     directives. Such guidelines and policies shall provide for 
     coordination and sharing that--
       ``(A) is consistent with the health care responsibilities 
     of the Department of Veterans Affairs under this title and 
     with the health care responsibilities of the Department of 
     Defense under chapter 55 of title 10;
       ``(B) will not adversely affect the range of services, the 
     quality of care, or the established priorities for care 
     provided by either Department; and
       ``(C) will not reduce capacities in certain specialized 
     programs of the Department of Veterans Affairs that the 
     Secretary is required to maintain in accordance with section 
     1706(b) of this title.
       ``(2) To facilitate the sharing and coordination of health 
     care services between the two Departments, the two 
     Secretaries shall jointly develop and implement guidelines 
     for a standardized, uniform payment and reimbursement 
     schedule for those services. Such schedule shall be 
     implemented no later than October 1, 2003, and shall be 
     revised periodically as necessary. The two Secretaries, 
     following implementation of the schedule, may on a case-by-
     case basis waive elements of the schedule if they jointly 
     agree that such a waiver is in the best interests of both 
     Departments.
       ``(3)(A) The guidelines established under paragraph (1) 
     shall authorize the heads of individual Department of Defense 
     and Department of Veterans Affairs medical facilities and 
     service regions to enter into health care resources 
     coordination and sharing agreements.
       ``(B) Under any such agreement, an individual who is a 
     primary beneficiary of one Department may be provided health 
     care, as provided in the agreement, at a facility or in the 
     service region of the other Department that is a party to the 
     sharing agreement.
       ``(C) Each such agreement shall identify the health care 
     resources to be shared.
       ``(D) Each such agreement shall provide, and shall specify 
     procedures designed to ensure, that the availability of 
     direct health care to individuals who are not primary 
     beneficiaries of the providing Department is (i) on a 
     referral basis from the facility or service region of the 
     other Department, and (ii) does not (as determined by the 
     head of the providing facility or region) adversely affect 
     the range of services, the quality of care, or the 
     established priorities for care provided to the primary 
     beneficiaries of the providing Department.
       ``(E) Each such agreement shall provide that a providing 
     Department or service region shall be reimbursed for the cost 
     of the health care resources provided under the agreement and 
     that the rate of such reimbursement shall be as determined in 
     accordance with paragraph (2).
       ``(F) Each proposal for an agreement under this paragraph 
     shall be effective (i) on the 46th day after the receipt of 
     such proposal by the Committee, unless earlier disapproved, 
     or (ii) if earlier approved by the Committee, on the date of 
     such approval.
       ``(G) Any funds received through such a uniform payment and 
     reimbursement schedule shall be credited to funds that have 
     been allotted to the facility of either Department that 
     provided the care or services, or is due the funds from, any 
     such agreement.
       ``(f) Annual Joint Report.--(1) At the time the President's 
     budget is transmitted to Congress in any year pursuant to 
     section 1105 of title 31, the two Secretaries shall submit to 
     Congress a joint report on health care coordination and 
     sharing activities under this section during the fiscal year 
     that ended during the previous calendar year.
       ``(2) Each report under this section shall include the 
     following:
       ``(A) The guidelines prescribed under subsection (e) (and 
     any revision of such guidelines).
       ``(B) The assessment of further opportunities identified 
     under subparagraph (C) of subsection (c)(5) for the sharing 
     of health-care resources between the two Departments.
       ``(C) Any recommendation made under subsection (c)(4) 
     during such fiscal year.
       ``(D) A review of the sharing agreements entered into under 
     subsection (e) and a summary of activities under such 
     agreements during such fiscal year and a description of the 
     results of such agreements in improving access to, and the 
     quality and cost effectiveness of, the health care provided 
     by the Veterans Health Administration and the Military Health 
     System to the beneficiaries of both Departments.
       ``(E) A summary of other planning and activities involving 
     either Department in connection with promoting the 
     coordination and sharing of Federal health-care resources 
     during the preceding fiscal year.
       ``(F) Such recommendations for legislation as the two 
     Secretaries consider appropriate to facilitate the sharing of 
     health-care resources between the two Departments.
       ``(3) In addition to the matters specified in paragraph 
     (2), the two Secretaries shall include in the annual report 
     under this subsection an overall status report of the 
     progress of health resources sharing between the two 
     Departments as a consequence of subtitle C of title VII of 
     the Bob Stump National Defense Authorization Act for Fiscal 
     Year 2003 and of other sharing initiatives taken during the 
     period covered by the report. Such status report shall 
     indicate the status of such sharing and shall include 
     appropriate data as well as analyses of that data. The annual 
     report shall include the following:
       ``(A) Enumerations and explanations of major policy 
     decisions reached by the two Secretaries during the period 
     covered by the report period with respect to sharing between 
     the two Departments.
       ``(B) A description of progress made in new ventures or 
     particular areas of sharing and coordination that would be of 
     policy interest to Congress consistent with the intent of 
     such subtitle.
       ``(C) A description of enhancements of access to care of 
     beneficiaries of both Departments that came about as a result 
     of new sharing approaches brought about by such subtitle.

[[Page H8134]]

       ``(D) A description of proposals for which funds are 
     provided through the joint incentives program under 
     subsection (d), together with a description of their results 
     or status at the time of the report, including access 
     improvements, savings, and quality-of-care enhancements they 
     brought about, and a description of any additional use of 
     funds made available under subsection (d).
       ``(4) In addition to the matters specified in paragraphs 
     (2) and (3), the two Secretaries shall include in the annual 
     report under this subsection for each year through 2008 the 
     following:
       ``(A) A description of the measures taken, or planned to be 
     taken, to implement the health resources sharing project 
     under section 722 of the Bob Stump National Defense 
     Authorization Act for Fiscal Year 2003 and any cost savings 
     anticipated, or cost sharing achieved, at facilities 
     participating in the project, including information on 
     improvements in access to care, quality, and timeliness, as 
     well as impediments encountered and legislative 
     recommendations to ameliorate such impediments.
       ``(B) A description of the use of the waiver authority 
     provided by section 722(d)(1) of the Bob Stump National 
     Defense Authorization Act for Fiscal Year 2003, including--
       ``(i) a statement of the numbers and types of requests for 
     waivers under that section of administrative policies that 
     have been made during the period covered by the report and, 
     for each such request, an explanation of the content of each 
     request, the intended purpose or result of the requested 
     waiver, and the disposition of each request; and
       ``(ii) descriptions of any new administrative policies that 
     enhance the success of the project.
       ``(5) In addition to the matters specified in paragraphs 
     (2), (3), and (4), the two Secretaries shall include in the 
     annual report under this subsection for each year through 
     2009 a report on the pilot program for graduate medical 
     education under section 725 of the Bob Stump National Defense 
     Authorization Act for Fiscal Year 2003, including activities 
     under the program during the preceding year and each 
     Secretary's assessment of the efficacy of providing education 
     and training under that program.
       ``(g) Definitions.--For the purposes of this section:
       ``(1) The term `beneficiary' means a person who is a 
     primary beneficiary of the Department of Veterans Affairs or 
     of the Department of Defense.
       ``(2) The term `direct health care' means health care 
     provided to a beneficiary in a medical facility operated by 
     the Department of Veterans Affairs or the Department of 
     Defense.
       ``(3) The term `head of a medical facility' (A) with 
     respect to a medical facility of the Department of Veterans 
     Affairs, means the director of the facility, and (B) with 
     respect to a medical facility of the Department of Defense, 
     means the medical or dental officer in charge or the contract 
     surgeon in charge.
       ``(4) The term `health-care resource' includes hospital 
     care, medical services, and rehabilitative services, as those 
     terms are defined in paragraphs (5), (6), and (8), 
     respectively, of section 1701 of this title, services under 
     sections 1782 and 1783 of this title, any other health-care 
     service, and any health-care support or administrative 
     resource.
       ``(5) The term `primary beneficiary' (A) with respect to 
     the Department means a person who is eligible under this 
     title (other than under section 1782, 1783, or 1784 or 
     subsection (d) of this section) or any other provision of law 
     for care or services in Department medical facilities, and 
     (B) with respect to the Department of Defense, means a member 
     or former member of the Armed Forces who is eligible for care 
     under section 1074 of title 10.
       ``(6) The term `providing Department' means the Department 
     of Veterans Affairs, in the case of care or services 
     furnished by a facility of the Department of Veterans 
     Affairs, and the Department of Defense, in the case of care 
     or services furnished by a facility of the Department of 
     Defense.
       ``(7) The term `service region' means a geographic service 
     area of the Veterans Health Administration, in the case of 
     the Department of Veterans Affairs, and a service region, in 
     the case of the Department of Defense.''.
       (2) The item relating to that section in the table of 
     sections at the beginning of chapter 81 of title 38, United 
     States Code, is amended to read as follows:

``8111. Sharing of Department of Veterans Affairs and Department of 
              Defense health care resources.''.

       (b) Conforming Amendment.--Section 1104(a) of title 10, 
     United States Code, is amended by striking ``may'' and 
     inserting ``shall''.
       (c) Effective Date.--The amendments made by this section 
     shall take effect on October 1, 2003.

     SEC. 722. HEALTH CARE RESOURCES SHARING AND COORDINATION 
                   PROJECT.

       (a) Establishment.--(1) The Secretary of Veterans Affairs 
     and the Secretary of Defense shall conduct a health care 
     resources sharing project to serve as a test for evaluating 
     the feasibility, and the advantages and disadvantages, of 
     measures and programs designed to improve the sharing and 
     coordination of health care and health care resources between 
     the Department of Veterans Affairs and the Department of 
     Defense. The project shall be carried out, as a minimum, at 
     the sites identified under subsection (b).
       (2) Reimbursement between the two Departments with respect 
     to the project under this section shall be made in accordance 
     with the provisions of section 8111(e)(2) of title 38, United 
     States Code, as amended by section 721(a).
       (b) Site Identification.--(1) Not later than 90 days after 
     the date of the enactment of this Act, the Secretaries shall 
     jointly identify not less than three sites for the conduct of 
     the project under this section.
       (2) For purposes of this section, a site at which the 
     resource sharing project shall be carried out is an area in 
     the United States in which--
       (A) one or more military treatment facilities and one or 
     more VA health care facilities are situated in relative 
     proximity to each other, including facilities engaged in 
     joint ventures as of the date of the enactment of this Act; 
     and
       (B) for which an agreement to coordinate care and programs 
     for patients at those facilities could be implemented not 
     later than October 1, 2004.
       (c) Conduct of Project.--(1) At sites at which the project 
     is conducted, the Secretaries shall provide a test of a 
     coordinated management system for the military treatment 
     facilities and VA health care facilities participating in the 
     project. Such a coordinated management system for a site 
     shall include at least one of the elements specified in 
     paragraph (2), and each of the elements specified in that 
     paragraph must be included in the coordinated management 
     system for at least one of the participating sites.
       (2) Elements of a coordinated management system referred to 
     in paragraph (1) are the following:
       (A) A budget and financial management system for those 
     facilities that--
       (i) provides managers with information about the costs of 
     providing health care by both Departments at the site; and
       (ii) allows managers to assess the advantages and 
     disadvantages (in terms of relative costs, benefits, and 
     opportunities) of using resources of either Department to 
     provide or enhance health care to beneficiaries of either 
     Department.
       (B) A coordinated staffing and assignment system for the 
     personnel (including contract personnel) employed at or 
     assigned to those facilities, including clinical 
     practitioners of either Department.
       (C) Medical information and information technology systems 
     for those facilities that--
       (i) are compatible with the purposes of the project;
       (ii) communicate with medical information and information 
     technology systems of corresponding elements of those 
     facilities; and
       (iii) incorporate minimum standards of information quality 
     that are at least equivalent to those adopted for the 
     Departments at large in their separate health care systems.
       (d) Authority To Waive Certain Administrative Policies.--
     (1)(A) In order to carry out subsection (c), the Secretary of 
     Defense may, in the Secretary's discretion, waive any 
     administrative policy of the Department of Defense otherwise 
     applicable to that subsection that specifically conflicts 
     with the purposes of the project, in instances in which the 
     Secretary determines that the waiver is necessary for the 
     purposes of the project.
       (B) In order to carry out subsection (c), the Secretary of 
     Veterans Affairs may, in the Secretary's discretion, waive 
     any administrative policy of the Department of Veterans 
     Affairs otherwise applicable to that subsection that 
     specifically conflicts with the purposes of the project, in 
     instances in which the Secretary determines that the waiver 
     is necessary for the purposes of the project.
       (C) The two Secretaries shall establish procedures for 
     resolving disputes that may arise from the effects of policy 
     changes that are not covered by other agreements or existing 
     procedures.
       (2) No waiver under paragraph (1) may alter any labor-
     management agreement in effect as of the date of the 
     enactment of this Act or adopted by either Department during 
     the period of the project.
       (e) Use by DOD of Certain Title 38 Personnel Authorities.--
     (1) In order to carry out subsection (c), the Secretary of 
     Defense may apply to civilian personnel of the Department of 
     Defense assigned to or employed at a military treatment 
     facility participating in the project any of the provisions 
     of subchapters I, III, and IV of chapter 74 of title 38, 
     United States Code, determined appropriate by the Secretary.
       (2) For purposes of paragraph (1), any reference in chapter 
     74 of title 38, United States Code--
       (A) to the ``Secretary'' or the ``Under Secretary for 
     Health'' shall be treated as referring to the Secretary of 
     Defense; and
       (B) to the ``Veterans Health Administration'' shall be 
     treated as referring to the Department of Defense.
       (f) Funding.--From amounts available for health care for a 
     fiscal year, each Secretary shall make available to carry out 
     the project not less than--
       (1) $3,000,000 for fiscal year 2003;
       (2) $6,000,000 for fiscal year 2004; and
       (3) $9,000,000 for each succeeding year during which the 
     project is in effect.
       (g) Definitions.--For purposes of this section:
       (1) The term ``military treatment facility'' means a 
     medical facility under the jurisdiction of the Secretary of a 
     military department.
       (2) The term ``VA health care facility'' means a facility 
     under the jurisdiction of the Veterans Health Administration 
     of the Department of Veterans Affairs.
       (h) Performance Review.--(1) The Comptroller General shall 
     provide for an annual on-site review at each of the project 
     locations selected by the Secretaries under this section.
       (2) Not later than 90 days after completion of the annual 
     review under paragraph (1), the Comptroller General shall 
     submit a report on such review to the Committees on Armed 
     Services and Veterans' Affairs of the Senate and House of 
     Representatives.
       (3) Each such report shall include the following:
       (A) The strategic mission coordination between shared 
     activities.
       (B) The accuracy and validity of performance data used to 
     evaluate sharing performance and

[[Page H8135]]

     changes in standards of care or services at the shared 
     facilities.
       (C) A statement that all appropriated funds designated for 
     sharing activities are being used for direct support of 
     sharing initiatives.
       (D) Recommendations concerning continuance of the project 
     at each site for the succeeding 12-month period.
       (4) Whenever there is a recommendation under paragraph 
     (3)(D) to discontinue a resource sharing project under this 
     section, the two Secretaries shall act upon that 
     recommendation as soon as practicable.
       (5) In the initial report under this subsection, the 
     Comptroller General shall validate the baseline information 
     used for comparative analysis.
       (i) Termination.--(1) The project, and the authority 
     provided by this section, shall terminate on September 30, 
     2007.
       (2) The two Secretaries jointly may terminate the 
     performance of the project at any site when the performance 
     of the project at that site fails to meet performance 
     expectations of the Secretaries, based on recommendations 
     from the Comptroller General under subsection (h) or on other 
     information available to the Secretaries to warrant such 
     action.

     SEC. 723. REPORT ON IMPROVED COORDINATION AND SHARING OF 
                   HEALTH CARE AND HEALTH CARE RESOURCES FOLLOWING 
                   DOMESTIC ACTS OF TERRORISM OR DOMESTIC USE OF 
                   WEAPONS OF MASS DESTRUCTION.

       (a) Joint Review.--The Secretary of Defense and the 
     Secretary of Veterans Affairs shall jointly review the 
     adequacy of current processes and existing statutory 
     authorities and policy governing the capability of the 
     Department of Defense and the Department of Veterans Affairs 
     to provide health care to members of the Armed Forces 
     following domestic acts of terrorism or domestic use of 
     weapons of mass destruction, both before and after any 
     declaration of national emergency. Such review shall include 
     a determination of the adequacy of current authorities in 
     providing for the coordination and sharing of health care 
     resources between the two Departments in such cases, 
     particularly before the declaration of a national emergency.
       (b) Report to Congress.--The two Secretaries shall include 
     a joint report on the review under subsection (a), including 
     any recommended legislative changes, shall be submitted to 
     Congress as part of the fiscal year 2004 budget submission to 
     Congress.

     SEC. 724. INTEROPERABILITY OF DEPARTMENT OF VETERANS AFFAIRS 
                   AND DEPARTMENT OF DEFENSE PHARMACY DATA 
                   SYSTEMS.

       (a) Interoperability.--The Secretary of Veterans Affairs 
     and the Secretary of Defense shall seek to ensure that on or 
     before October 1, 2004, the Department of Veterans Affairs 
     pharmacy data system and the Department of Defense pharmacy 
     data system (known as the ``Pharmacy Data Transaction 
     System'') are interoperable for both Department of Defense 
     beneficiaries and Department of Veterans Affairs 
     beneficiaries by achieving real-time interface, data 
     exchange, and checking of prescription drug data of 
     outpatients, and using national standards for the exchange of 
     outpatient medication information.
       (b) Alternative Requirement.--If the interoperability 
     specified in subsection (a) is not achieved by October 1, 
     2004, as determined jointly by the Secretary of Defense and 
     the Secretary of Veterans Affairs, the Secretary of Veterans 
     Affairs shall adopt the Department of Defense Pharmacy Data 
     Transaction System for use by the Department of Veterans 
     Affairs health care system. Such system shall be fully 
     operational not later than October 1, 2005.
       (c) Implementation Funding for Alternative Requirement.--
     The Secretary of Defense shall transfer to the Secretary of 
     Veterans Affairs, or shall otherwise bear the cost of, an 
     amount sufficient to cover three-fourths of the cost to the 
     Department of Veterans Affairs for computer programming 
     activities and relevant staff training expenses related to 
     implementation of subsection (b). Such amount shall be 
     determined in such manner as agreed to by the two 
     Secretaries.

     SEC. 725. JOINT PILOT PROGRAM FOR PROVIDING GRADUATE MEDICAL 
                   EDUCATION AND TRAINING FOR PHYSICIANS.

       (a) In General.--The Secretary of Defense and the Secretary 
     of Veterans Affairs shall jointly carry out a pilot program 
     under which graduate medical education and training is 
     provided to military physicians and physician employees of 
     the Department of Defense and the Department of Veterans 
     Affairs through one or more programs carried out in military 
     medical treatment facilities of the Department of Defense and 
     medical centers of the Department of Veterans Affairs. The 
     pilot program shall begin not later than January 1, 2003.
       (b) Cost-Sharing Agreement.--The Secretaries shall enter 
     into an agreement for carrying out the pilot program. The 
     agreement shall establish means for each Secretary to assist 
     in paying the costs, with respect to individuals under the 
     jurisdiction of that Secretary, incurred by the other 
     Secretary in providing medical education and training under 
     the pilot program.
       (c) Use of Existing Authorities.--To carry out the pilot 
     program, the Secretary of Defense and the Secretary of 
     Veterans Affairs may use authorities provided to them under 
     this subtitle, section 8111 of title 38, United States Code 
     (as amended by section 721(a)), and other laws relating to 
     the furnishing or support of medical education and the 
     cooperative use of facilities.
       (d) Termination of Program.--The pilot program under this 
     section shall terminate on July 31, 2008.
       (e) Repeal of Superseded Provision.--Section 738 of the 
     National Defense Authorization Act for Fiscal Year 2002 
     (Public Law 107-107; 10 U.S.C. 1094 note; 115 Stat.1173) is 
     repealed.

     SEC. 726. REPEAL OF CERTAIN LIMITS ON DEPARTMENT OF VETERANS 
                   AFFAIRS RESOURCES.

       (a) Repeal of VA Bed Limits.--Section 8110(a)(1) of title 
     38, United States Code, is amended--
       (1) in the first sentence, by striking ``at not more than 
     125,000 and not less than 100,000'';
       (2) in the third sentence, by striking ``shall operate and 
     maintain a total of not less than 90,000 hospital beds and 
     nursing home beds and''; and
       (3) in the fourth sentence, by striking ``to enable the 
     Department to operate and maintain a total of not less than 
     90,000 hospital and nursing home beds in accordance with this 
     paragraph and''.
       (b) Effective Date.--The amendments made by subsection (a) 
     shall take effect on October 1, 2003.
  TITLE VIII--ACQUISITION POLICY, ACQUISITION MANAGEMENT, AND RELATED 
                                MATTERS

             Subtitle A--Acquisition Policy and Management

Sec. 801. Buy-to-budget acquisition of end items.
Sec. 802. Report to Congress on evolutionary acquisition of major 
              defense acquisition programs.
Sec. 803. Spiral development under major defense acquisition programs.
Sec. 804. Improvement of software acquisition processes.
Sec. 805. Performance goals for procuring services pursuant to multiple 
              award contracts.
Sec. 806. Rapid acquisition and deployment procedures.
Sec. 807. Quick-reaction special projects acquisition team.

Subtitle B--Amendments to General Contracting Authorities, Procedures, 
                            and Limitations

Sec. 811. Limitation period for task and delivery order contracts.
Sec. 812. One-year extension of program applying simplified procedures 
              to certain commercial items; report.
Sec. 813. Extension and improvement of personnel demonstration policies 
              and procedures applicable to the civilian acquisition 
              workforce.
Sec. 814. Past performance given significant weight in renewal of 
              procurement technical assistance cooperative agreements.
Sec. 815. Increased maximum amount of assistance for tribal 
              organizations or economic enterprises carrying out 
              procurement technical assistance programs in two or more 
              service areas.
Sec. 816. Extension of contract goal for small disadvantaged businesses 
              and certain institutions of higher education.
Sec. 817. Grants of exceptions to cost or pricing data certification 
              requirements and waivers of cost accounting standards.
Sec. 818. Timing of certification in connection with waiver of 
              survivability and lethality testing requirements.
Sec. 819. Contracting with Federal Prison Industries.
Sec. 820. Revisions to multiyear contracting authority.

       Subtitle C--Acquisition-Related Reports and Other Matters

Sec. 821. Evaluation of training, knowledge, and resources regarding 
              negotiation of intellectual property arrangements.
Sec. 822. Independent technology readiness assessments.
Sec. 823. Extension and amendment of requirement for annual report on 
              defense commercial pricing management improvement.
Sec. 824. Assessment of purchases of products and services through 
              contracts with other Federal departments and agencies.
Sec. 825. Repeal of certain requirements and Comptroller General 
              reviews of the requirements.
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. Report on effects of Army Contracting Agency.
Sec. 829. Authorization to take actions to correct the industrial 
              resource shortfall for radiation-hardened electronics.
             Subtitle A--Acquisition Policy and Management

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

       (a) Authority.--(1) Chapter 137 of title 10, United States 
     Code, is amended by inserting after section 2307 the 
     following new section:

     ``Sec. 2308. 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 an 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:

[[Page H8136]]

       ``(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 (subject to subsection (a)) to acquire up 
     to 10 percent more than 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.
       ``(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 `end item' means a production product 
     assembled, completed, and ready for issue or deployment.
       ``(C) 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 inserting after the item relating to section 
     2307 the following new item:

       ``2308. Buy-to-budget acquisition: end items.''.

       (b) Time for Issuance of Final Regulations.--The Secretary 
     of Defense shall issue the final regulations under section 
     2308(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 EVOLUTIONARY ACQUISITION OF 
                   MAJOR DEFENSE ACQUISITION PROGRAMS.

       (a) Report Required.--(1) 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 apply the 
     requirements listed in paragraph (2) to major defense 
     acquisition programs that follow the evolutionary acquisition 
     process.
       (2) The requirements referred to in paragraph (1) are--
       (A) the requirements of chapter 144 of title 10, United 
     States Code;
       (B) sections 139, 181, 2366, 2399, and 2400 of such title;
       (C) Department of Defense Directive 5000.1;
       (D) Department of Defense Instruction 5000.2;
       (E) Chairman of the Joint Chiefs of Staff Instruction 
     3170.01B; and
       (F) other provisions of law and regulations (including 
     successor documents) that are applicable to such 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 evolutionary 
     acquisition process--
       (A) operational requirements; and
       (B) cost and schedule goals.
       (2) The manner in which the Secretary plans, for each 
     increment of an evolutionary acquisition process--
       (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 evolutionary acquisition process 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 ``evolutionary acquisition process'' means a 
     process by which an acquisition program is conducted through 
     discrete phases or blocks, with each phase or block 
     consisting of the planned definition, development, production 
     or acquisition, and fielding of hardware or software that 
     provides operationally useful capability.
       (2) The term ``increment'', with respect to an evolutionary 
     acquisition program, means one of the discrete phases or 
     blocks of such program.
       (3) The term ``major defense acquisition program'' has the 
     meaning given such term in section 139(a)(2)(B) of title 10, 
     United States Code.

     SEC. 803. SPIRAL DEVELOPMENT UNDER MAJOR DEFENSE ACQUISITION 
                   PROGRAMS.

       (a) Authority.--The Secretary of Defense is authorized to 
     conduct major defense acquisition programs as spiral 
     development programs.
       (b) Limitation on Spiral Development Programs.--A research 
     and development program for a major defense acquisition 
     program of a military department or Defense Agency may not be 
     conducted as a spiral development program unless the 
     Secretary of Defense approves the spiral development plan for 
     that research and development program in accordance with 
     subsection (c). The Secretary of Defense may delegate 
     authority to approve the plan to the Under Secretary of 
     Defense for Acquisition, Technology, and Logistics, or to the 
     senior acquisition executive of the military department or 
     Defense Agency concerned, but such authority may not be 
     further delegated.
       (c) Spiral Development Plans.--A spiral development plan 
     for a research and development program for a major defense 
     acquisition program shall, at a minimum, include the 
     following matters:
       (1) A rationale for dividing the research and development 
     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 research and development 
     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 research and development 
     program.
       (6) Specific performance parameters, including measurable 
     exit criteria, that must be met before the major defense 
     acquisition 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 spiral development 
     programs authorized by this section. The guidance shall 
     include appropriate processes for ensuring the independent 
     validation of exit criteria being met, the operational 
     assessment of fieldable prototypes, and the management of 
     spiral development programs.
       (e) Reporting Requirement.--The Secretary shall submit to 
     Congress by September 30 of each of 2003 through 2008 a 
     status report on each research and development program that 
     is a spiral development 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) Definitions.--In this section:
       (1) The term ``spiral development program'', with respect 
     to a research and development program, means a 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 defense acquisition program'' has the 
     meaning given such term in section 139(a)(2)(B) of title 10, 
     United States Code.

     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.

[[Page H8137]]

       (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 appropriate metrics for performance 
     measurement and continual process improvement.
       (3) A process to ensure that key program personnel have an 
     appropriate level of experience or training in software 
     acquisition.
       (4) A process to ensure that each military department and 
     Defense Agency implements and adheres to established 
     processes and requirements relating to the acquisition of 
     software.
       (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--
       (A) ensuring that the criteria applicable to the selection 
     of sources provides added emphasis on past performance of 
     potential sources, as well as on the maturity of the software 
     products offered by the potential sources; and
       (B) identifying, and serving as a clearinghouse for 
     information regarding, best practices in software development 
     and acquisition 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 such term in section 139(a)(2)(B) of title 10, 
     United States Code.

     SEC. 805. PERFORMANCE GOALS FOR PROCURING SERVICES PURSUANT 
                   TO MULTIPLE AWARD CONTRACTS.

       (a) Performance Goals.--Subsection (a) of section 802 of 
     the National Defense Authorization Act for Fiscal Year 2002 
     (Public Law 107-107; 115 Stat. 1178; 10 U.S.C. 2330 note) is 
     amended to read as follows:
       ``(a) Goals.--(1) It shall be an objective of the 
     Department of Defense to achieve efficiencies in procurements 
     of services pursuant to multiple award contracts through the 
     use of--
       ``(A) performance-based services contracting;
       ``(B) appropriate competition for task orders under 
     services contracts;
       ``(C) program review, spending analyses, and improved 
     management of services contracts.
       ``(2) In furtherance of such objective, 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 receipt of more than one offer 
     from qualified contractors to a percentage as follows:
       ``(i) For fiscal year 2003, a percentage not less than 40 
     percent.
       ``(ii) For fiscal year 2004, a percentage not less than 50 
     percent.
       ``(iii) For fiscal year 2011, a percentage not less than 75 
     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 25 
     percent.
       ``(ii) For fiscal year 2004, a percentage not less than 35 
     percent.
       ``(iii) For fiscal year 2005, a percentage not less than 50 
     percent.
       ``(iv) For fiscal year 2011, a percentage not less than 70 
     percent.
       ``(3) The Secretary of Defense may adjust any percentage 
     goal established in paragraph (2) if the Secretary determines 
     in writing that such a goal is too high and cannot reasonably 
     be achieved. In the event that the Secretary chooses to 
     adjust such a goal, the Secretary shall--
       ``(A) establish a percentage goal that the Secretary 
     determines would create an appropriate incentive for 
     Department of Defense components to use competitive 
     procedures or performance-based services contracting, as the 
     case may be; and
       ``(B) submit to the congressional defense committees a 
     report containing an explanation of the reasons for the 
     Secretary's determination and a statement of the new goal 
     that the Secretary has established.''.
       (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 amending paragraph (5) to read as follows:
       ``(5) 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 more than one 
     offer 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.--(1) In this section, the terms 
     `individual purchase' and `multiple award contract' have the 
     meanings given such terms in section 803(c) of this Act.
       ``(2) For the purposes of this section, an individual 
     purchase of services is made on a competitive basis only if 
     it is made pursuant to procedures described in paragraphs 
     (2), (3), and (4) of section 803(b) of this Act.''.
       (d) Conforming Amendment.--The heading for such section is 
     amended by striking ``SAVINGS GOALS'' and inserting 
     ``PERFORMANCE GOALS''.

     SEC. 806. RAPID ACQUISITION AND DEPLOYMENT PROCEDURES.

       (a) Requirement To Establish Procedures.--Not later than 
     180 days after the date of the enactment of this Act, the 
     Secretary of Defense shall prescribe procedures for the rapid 
     acquisition and deployment of items that are--
       (1) currently under development by the Department of 
     Defense or available from the commercial sector; and
       (2) urgently needed to react to an enemy threat or to 
     respond to significant and urgent safety situations.
       (b) Issues To Be Addressed.--The procedures prescribed 
     under subsection (a) shall include the following:
       (1) A process for streamlined communications between the 
     Chairman of the Joint Chiefs of Staff, the acquisition 
     community, and the research and development community, 
     including--
       (A) a process for the commanders of the combatant commands 
     and the Joint Chiefs of Staff to communicate their needs to 
     the acquisition community and the research and development 
     community; and
       (B) a process for the acquisition community and the 
     research and development community to propose items that meet 
     the needs communicated by the combatant commands and the 
     Joint Chiefs of Staff.
       (2) Procedures for demonstrating, rapidly acquiring, and 
     deploying items proposed pursuant to paragraph (1)(B), 
     including--
       (A) a process for demonstrating performance and evaluating 
     for current operational purposes the existing capability of 
     an item;
       (B) a process for developing an acquisition and funding 
     strategy for the deployment of an item; and
       (C) a process for making deployment determinations based on 
     information obtained pursuant to subparagraphs (A) and (B).
       (c) Testing Requirement.--(1) The process for demonstrating 
     performance and evaluating for current operational purposes 
     the existing capability of an item prescribed under 
     subsection (b)(2)(A) shall include--
       (A) an operational assessment in accordance with procedures 
     prescribed by the Director of Operational Test and 
     Evaluation; and
       (B) a requirement to provide information about any 
     deficiency of the item in meeting the original requirements 
     for the item (as stated in an operational requirements 
     document or similar document) to the deployment 
     decisionmaking authority.
       (2) The process may not include a requirement for any 
     deficiency of an item to be the determining factor in 
     deciding whether to deploy the item.
       (d) Limitation.--The quantity of items of a system procured 
     using the procedures prescribed pursuant to this section may 
     not exceed the number established for low-rate initial 
     production for the system. Any such items shall be counted 
     for purposes of the number of items of the system that may be 
     procured through low-rate initial production.

     SEC. 807. QUICK-REACTION SPECIAL PROJECTS ACQUISITION TEAM.

       (a) Establishment.--The Under Secretary of Defense for 
     Acquisition, Technology, and Logistics shall establish a team 
     of highly qualified acquisition professionals who shall be 
     available to advise the Under Secretary on actions that can 
     be taken to expedite the acquisition of urgently needed 
     systems.
       (b) Duties.--The issues on which the team may provide 
     advice shall include the following:
       (1) Industrial base issues, including the limited 
     availability of suppliers.
       (2) Technology development and technology transition 
     issues.
       (3) Issues of acquisition policy, including the length of 
     the acquisition cycle.
       (4) Issues of testing policy and ensuring that weapon 
     systems perform properly in combat situations.
       (5) Issues of procurement policy, including the impact of 
     socio-economic requirements.
       (6) Issues relating to compliance with environmental 
     requirements.
Subtitle B--Amendments to General Contracting Authorities, Procedures, 
                            and Limitations

     SEC. 811. LIMITATION PERIOD FOR TASK AND DELIVERY ORDER 
                   CONTRACTS.

       (a) Limitation Period.--Section 2306c of title 10, United 
     States Code, is amended by adding at the end the following 
     new subsection:
       ``(g) Limitation Period for Task and Delivery Order 
     Contracts.--(1) The authority and restrictions of this 
     section, including the authority to enter into contracts for 
     periods of not more than five years, shall apply with respect 
     to task order and delivery order contracts entered into under 
     the authority of section 2304a, 2304b, or 2304c of this 
     title.

[[Page H8138]]

       ``(2) The regulations implementing this subsection shall 
     establish a preference that, to the maximum extent 
     practicable, multi-year requirements for task order and 
     delivery order contracts be met with separate awards to two 
     or more sources under the authority of section 2304a(d)(1)(B) 
     of this title.''.
       (b) Effective Date.--Subsection (g) of section 2306c of 
     title 10, United States Code, as added by subsection (a), 
     shall apply to all task order and delivery order contracts 
     entered into on or after the date of the enactment of this 
     Act.
       (c) Comptroller General Report.--Not later than March 15, 
     2003, the Comptroller General shall submit to the Committee 
     on Armed Services of the Senate and the Committee on Armed 
     Services of the House of Representatives a report on the 
     contract periods (including any options or extensions) for 
     all single and multiple contract awards entered into under 
     section 2304a(d) of title 10, United States Code, before the 
     effective date in subsection (b).

     SEC. 812. ONE-YEAR EXTENSION OF PROGRAM APPLYING SIMPLIFIED 
                   PROCEDURES TO CERTAIN COMMERCIAL ITEMS; REPORT.

       (a) Extension of Pilot Program.--Section 4202 of the 
     Clinger-Cohen Act of 1996 (divisions D and E of Public Law 
     104-106; 10 U.S.C. 2304 note) is amended in subsection (e) by 
     striking ``January 1, 2003'' and inserting ``January 1, 
     2004''.
       (b) Report Required.--(1) Not later than March 15, 2003, 
     the Comptroller General shall submit to Congress a report on 
     the authority to issue solicitations for purchases of 
     commercial items in excess of the simplified acquisition 
     threshold pursuant to the special simplified procedures 
     authorized by section 2304(g)(1) of title 10, United States 
     Code, and section 31(a) of the Office of Federal Procurement 
     Policy Act (41 U.S.C. 427(a)).
       (2) The report required by paragraph (1) shall address, at 
     a minimum--
       (A) the extent to which such authority has been used by the 
     Secretary of Defense;
       (B) the benefits realized by the Department of Defense 
     through the use of such authority;
       (C) the impact of the use of such authority on competition 
     for contracts with the Department of Defense; and
       (D) any recommendations of the Comptroller General for the 
     continuation or modification of such authority.

     SEC. 813. EXTENSION AND IMPROVEMENT OF PERSONNEL 
                   DEMONSTRATION POLICIES AND PROCEDURES 
                   APPLICABLE TO THE CIVILIAN ACQUISITION 
                   WORKFORCE.

       (a) Plan Required.--(1) The Secretary of Defense shall 
     develop a plan for improving the personnel management 
     policies and procedures applicable to the Department of 
     Defense civilian acquisition workforce based on the results 
     of the demonstration project described in section 4308 of the 
     Clinger-Cohen Act of 1996 (divisions D and E of Public Law 
     104-106; 10 U.S.C. 1701 note).
       (2) Not later than February 15, 2003, the Secretary shall 
     submit to Congress the plan required under paragraph (1) and 
     a report on the plan, including any recommendations for 
     legislative action necessary to implement the plan.
       (b) Extension of Demonstration Project Authority.--Section 
     4308 of the Clinger-Cohen Act of 1996 (divisions D and E of 
     Public Law 104-106; 10 U.S.C. 1701 note) is amended--
       (1) in subsection (b)(2)(C), by striking ``subsection 
     (d)(1)(A)'' and inserting ``subsection (d)(1)'';
       (2) by amending subparagraph (B) of subsection (b)(3) to 
     read as follows:
       ``(B) commences before October 1, 2007.''; and
       (3) by adding at the end the following new subsection:
       ``(e) Termination of Authority.--The authority to conduct a 
     demonstration program under this section shall terminate on 
     September 30, 2012.''.

     SEC. 814. PAST PERFORMANCE GIVEN SIGNIFICANT WEIGHT IN 
                   RENEWAL OF PROCUREMENT TECHNICAL ASSISTANCE 
                   COOPERATIVE AGREEMENTS.

       Section 2413 of title 10, United States Code, is amended by 
     adding at the end the following new subsection:
       ``(d) In conducting a competition for the award of a 
     cooperative agreement under subsection (a), and in 
     determining the level of funding to provide under an 
     agreement under subsection (b), the Secretary shall give 
     significant weight to successful past performance of eligible 
     entities under a cooperative agreement under this section.''.

     SEC. 815. 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. 816. 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. 817. GRANTS OF EXCEPTIONS TO COST OR PRICING DATA 
                   CERTIFICATION REQUIREMENTS AND WAIVERS OF COST 
                   ACCOUNTING STANDARDS.

       (a) Guidance for Exceptions in Exceptional Circumstances.--
     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 an 
     exceptional case exception or waiver with respect to 
     certified cost and pricing data and cost accounting 
     standards.
       (b) Determination Required for Exceptional Case Exception 
     or Waiver.--The guidance shall, at a minimum, include a 
     limitation that a grant of an exceptional case exception or 
     waiver is appropriate with respect to a contract, 
     subcontract, or (in the case of submission of certified cost 
     and pricing data) modification only upon a determination 
     that--
       (1) the property or services cannot reasonably be obtained 
     under the contract, subcontract, or modification, as the case 
     may be, without the grant of the exception or waiver;
       (2) the price can be determined to be fair and reasonable 
     without the submission of certified cost and pricing data or 
     the application of cost accounting standards, as the case may 
     be; and
       (3) there are demonstrated benefits to granting the 
     exception or waiver.
       (c) Applicability of New Guidance.--The guidance issued 
     under subsection (a) shall apply to each exceptional case 
     exception or waiver that is granted on or after the date on 
     which the guidance is issued.
       (d) Annual Report on Both Commercial Item and Exceptional 
     Case Exceptions and Waivers With Price or Value Greater Than 
     $15,000,000.--(1) The Secretary of Defense shall transmit to 
     the congressional defense committees promptly after the end 
     of each fiscal year a report on commercial item exceptions, 
     and exceptional case exceptions and waivers, described in 
     paragraph (2) that were granted during that fiscal year.
       (2) The report for a fiscal year shall include--
       (A) with respect to any commercial item exception granted 
     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, an explanation of the basis for the 
     determination that the products or services to be purchased 
     are commercial items, including an identification of the 
     specific steps taken to ensure price reasonableness; and
       (B) with respect to any exceptional case exception or 
     waiver granted in the case of a contract or subcontract that 
     is expected to have a value of $15,000,000 or more, an 
     explanation of the basis for the determination described in 
     subsection (b), including an identification of the 
     specific steps taken to ensure that the price was fair and 
     reasonable.
       (e) Definitions.--In this section:
       (1) The term ``exceptional case exception or waiver'' means 
     either of the following:
       (A) An exception pursuant to section 2306a(b)(1)(C) of 
     title 10, United States Code, relating to submission of 
     certified cost and pricing data.
       (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 term ``commercial item exception'' means an 
     exception pursuant to section 2306a(b)(1)(B) of title 10, 
     United States Code, relating to submission of certified cost 
     and pricing data.

     SEC. 818. 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.''.

     SEC. 819. CONTRACTING WITH FEDERAL PRISON INDUSTRIES.

       (a) Assurance of Best Value for National Defense.--(1) 
     Section 2410n of title 10, United States Code, is amended--
       (A) in subsection (a)--
       (i) by amending the heading to read as follows: ``Market 
     Research.--''; and
       (ii) by striking ``comparable in price, quality, and time 
     of delivery to products available from the private sector'' 
     and inserting ``comparable to products available from the 
     private sector that best meet the Department's needs in terms 
     of price, quality, and time of delivery'';
       (B) by striking subsection (b) and inserting the following:
       ``(b) Competition Requirement.--If the Secretary determines 
     that a Federal Prison Industries product is not comparable in 
     price, quality, or time of delivery to products available 
     from the private sector that best meet the Department's needs 
     in terms of price, quality, and time of delivery, the 
     Secretary shall use competitive procedures for the 
     procurement of the product or shall make an individual 
     purchase under a multiple award contract. In conducting such 
     a compeititon or making such a purchase, the Secretary shall 
     consider a timely offer from Federal Prison Industries.''; 
     and

[[Page H8139]]

       (C) by adding at the end the following new subsections:
       ``(c) Implementation by Secretary of Defense.--The 
     Secretary of Defense shall ensure that--
       ``(1) the Department of Defense does not purchase a Federal 
     Prison Industries product or service unless a contracting 
     officer of the Department determines that the product or 
     service is comparable to products or services available from 
     the private sector that best meet the Department's needs in 
     terms of price, quality, and time of delivery; and
       ``(2) Federal Prison Industries performs its contractual 
     obligations to the same extent as any other contractor for 
     the Department of Defense.
       ``(d) Market Research Determination Not Subject to 
     Review.--A determination by a contracting officer regarding 
     whether a product or service offered by Federal Prison 
     Industries is comparable to products or services available 
     from the private sector that best meet the Department's needs 
     in terms of price, quality, and time of delivery shall not be 
     subject to review pursuant to section 4124(b) of title 18.
       ``(e) Performance as a Subcontractor.--(1) A contractor or 
     potential contractor of the Department of Defense may not be 
     required to use Federal Prison Industries as a subcontractor 
     or supplier of products or provider of services for the 
     performance of a Department of Defense contract by any means, 
     including means such as--
       ``(A) a contract solicitation provision requiring a 
     contractor to offer to make use of products or services of 
     Federal Prison Industries in the performance of the contract;
       ``(B) a contract specification requiring the contractor to 
     use specific products or services (or classes of products or 
     services) offered by Federal Prison Industries in the 
     performance of the contract; or
       ``(C) any contract modification directing the use of 
     products or services of Federal Prison Industries in the 
     performance of the contract.
       ``(2) In this subsection, the term `contractor', with 
     respect to a contract, includes a subcontractor at any tier 
     under the contract.
       ``(f) Protection of Classified and Sensitive Information.--
     The Secretary of Defense may not enter into any contract with 
     Federal Prison Industries under which an inmate worker would 
     have access to--
       ``(1) any data that is classified;
       ``(2) any geographic data regarding the location of--
       ``(A) surface and subsurface infrastructure providing 
     communications or water or electrical power distribution;
       ``(B) pipelines for the distribution of natural gas, bulk 
     petroleum products, or other commodities; or
       ``(C) other utilities; or
       ``(3) any personal or financial information about any 
     individual private citizen, including information relating to 
     such person's real property however described, without the 
     prior consent of the individual.
       ``(g) Definitions.--In this section:
       ``(1) The term `competitive procedures' has the meaning 
     given such term in section 2302(2) of this title.
       ``(2) The term `market research' means obtaining specific 
     information about the price, quality, and time of delivery of 
     products available in the private sector through a variety of 
     means, which may include--
       ``(A) contacting knowledgeable individuals in government 
     and industry;
       ``(B) interactive communication among industry, acquisition 
     personnel, and customers; and
       ``(C) interchange meetings or pre-solicitation conferences 
     with potential offerors.''.
       (2) Paragraph (1) and the amendments made by such paragraph 
     shall take effect as of October 1, 2001.
       (b) Regulatory Implementation.--(1) Proposed revisions to 
     the Department of Defense Supplement to the Federal 
     Acquisition Regulation to implement this section shall be 
     published not later than 90 days after the date of the 
     enactment of this Act, and not less than 60 days shall be 
     provided for public comment on the proposed revisions.
       (2) Final regulations shall be published not later than 180 
     days after the date of the enactment of this Act and shall be 
     effective on the date that is 30 days after the date of the 
     publication.

     SEC. 820. REVISIONS TO MULTIYEAR CONTRACTING AUTHORITY.

       (a) Use of Procurement and Advance Procurement Funds.--
     Section 2306b(i) of title 10, United States Code, is amended 
     by adding at the end the following new paragraph:
       ``(4)(A) The Secretary of Defense may obligate funds for 
     procurement of an end item under a multiyear contract for the 
     purchase of property only for procurement of a complete and 
     usable end item.
       ``(B) The Secretary of Defense may obligate funds 
     appropriated for any fiscal year for advance procurement 
     under a contract for the purchase of property only for the 
     procurement of those long-lead items necessary in order to 
     meet a planned delivery schedule for complete major end items 
     that are programmed under the contract to be acquired with 
     funds appropriated for a subsequent fiscal year (including an 
     economic order quantity of such long-lead items when 
     authorized by law).''.
       (b) Effective Date.--(1) Paragraph (4) of section 2306b(i) 
     of title 10, United States Code, as added by subsection (a), 
     shall not apply with respect to any contract awarded before 
     the date of the enactment of this Act.
       (2) Nothing in this section shall be construed to authorize 
     the expenditure of funds under any contract awarded before 
     the date of the enactment of this Act for any purpose other 
     than the purpose for which such funds have been authorized 
     and appropriated.
       Subtitle C--Acquisition-Related Reports and Other Matters

     SEC. 821. EVALUATION OF TRAINING, KNOWLEDGE, AND RESOURCES 
                   REGARDING NEGOTIATION OF INTELLECTUAL PROPERTY 
                   ARRANGEMENTS.

       (a) Availability of Training, Knowledge, and Resources.--
     The Secretary of Defense shall evaluate the training, 
     knowledge, and resources needed by the Department of Defense 
     in order to effectively negotiate intellectual property 
     rights using the principles of the Defense Federal 
     Acquisition Regulation Supplement and determine whether the 
     Department of Defense currently has in place the training, 
     knowledge, and resources available to meet those Departmental 
     needs.
       (b) Report.--Not later than February 1, 2003, the Secretary 
     of Defense shall submit to Congress a report describing--
       (1) the results of the evaluation performed under 
     subsection (a);
       (2) to the extent the Department does not have adequate 
     training, knowledge, and resources available, actions to be 
     taken to improve training and knowledge and to make resources 
     available to meet the Department's needs; and
       (3) the number of Department of Defense legal personnel 
     trained in negotiating intellectual property arrangements.

     SEC. 822. 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. 823. EXTENSION AND AMENDMENT 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--
       (1) by striking ``2000, 2001, and 2002,'' and inserting 
     ``2000 through 2006,'';
       (2) by inserting after ``were conducted'' the following: 
     ``by the Secretary of each military department and the 
     Director of the Defense Logistics Agency''; and
       (3) by inserting after ``actions taken'' the following: 
     ``by each Secretary and the Director''.

     SEC. 824. ASSESSMENT OF PURCHASES OF PRODUCTS AND SERVICES 
                   THROUGH CONTRACTS WITH OTHER FEDERAL 
                   DEPARTMENTS AND AGENCIES.

       (a) Requirement for Assessment.--The Secretary of Defense 
     shall carry out an assessment of purchases by the Department 
     of Defense of products and services through contracts entered 
     into with other Federal departments and agencies.
       (b) Period Covered by Assessment.--The assessment required 
     by subsection (a) shall cover purchases made during fiscal 
     years 2000 through 2002.
       (c) Report.--Not later than February 1, 2003, the Secretary 
     of Defense shall submit to the Committees on Armed Services 
     of the Senate and the House of Representatives a report on 
     the results of the assessment conducted under subsection (a). 
     The report shall include the following:
       (1) The total amount paid by the Department of Defense as 
     fees for the acquisition of such products and services.
       (2) A determination of whether such total amount paid is 
     excessive and should be reduced.
       (3) A description of the benefits received by the 
     Department as a result of purchasing such products and 
     services through such contracts.

     SEC. 825. REPEAL OF CERTAIN REQUIREMENTS AND COMPTROLLER 
                   GENERAL REVIEWS OF THE REQUIREMENTS.

       (a) Termination of Authority To Transfer Funds into Defense 
     Modernization Account.--(1) Paragraph (1) of section 912(c) 
     of the National Defense Authorization Act for Fiscal Year 
     1996 (Public Law 104-106; 110 Stat. 410; 10 U.S.C. 2216 note) 
     is amended by striking ``September 30, 2003'' and inserting 
     ``September 30, 2002''.
       (2) Section 912(d) of such Act (110 Stat. 410; 10 U.S.C. 
     2216 note), relating to Comptroller General reviews of the 
     administration of the Defense Modernization Account, is 
     repealed.
       (b) Repeal of Solutions-Based Contracting Pilot Program.--
     (1) Section 11522 of title 40, United States Code, is 
     repealed.
       (2)(A) Section 11501 of title 40, United States Code, is 
     amended--
       (i) in the section heading, by striking ``PROGRAMS'' and 
     inserting ``PROGRAM'';
       (ii) in subsection (a)(1), by striking ``conduct pilot 
     programs'' and inserting ``conduct a pilot program pursuant 
     to the requirements of section 11521 of this title'';
       (iii) in subsection (a)(2), by striking ``each pilot 
     program'' and inserting ``the pilot program'';
       (iv) in subsection (b)--
       (I) by striking ``Limitations.--'' and all that follows 
     through ``pilot programs conducted'' and inserting the 
     following: ``Limitation on Amount.--The total amount 
     obligated for contracts entered into under the pilot program 
     conducted''; and
       (II) by striking ``paragraph.'' and inserting 
     ``subsection.''; and

[[Page H8140]]

       (v) in subsection (c)(1), by striking ``a pilot'' and 
     inserting ``the pilot''.
       (B) The following provisions of chapter 115 of such title 
     are each amended by striking ``a pilot'' each place it 
     appears and inserting ``the pilot'':
       (i) Section 11502(a).
       (ii) Section 11502(b).
       (iii) Section 11503(a).
       (iv) Section 11504.
       (C) Section 11505 of such chapter is amended by striking 
     ``programs'' and inserting ``program''.
       (3)(A) The chapter heading for chapter 115 of such title is 
     amended by striking ``PROGRAMS'' and inserting ``PROGRAM''.
       (B) The subchapter heading for subchapter I and for 
     subchapter II of such chapter are each amended by striking 
     ``PROGRAMS'' and inserting ``PROGRAM''.
       (C) The item relating to subchapter I in the table of 
     sections at the beginning of such chapter is amended to read 
     as follows:

              ``SUBCHAPTER I--CONDUCT OF PILOT PROGRAM''.

       (D) The item relating to subchapter II in the table of 
     sections at the beginning of such chapter is amended to read 
     as follows:

               ``SUBCHAPTER II--SPECIFIC PILOT PROGRAM''.

       (E) The item relating to section 11501 in the table of 
     sections at the beginning of such is amended by striking 
     ``programs'' and inserting ``program''.
       (F) The table of sections at the beginning of such chapter 
     is amended by striking the item relating to section 11522.
       (G) The item relating to chapter 115 in the table of 
     chapters for subtitle III of title 40, United States Code, is 
     amended to read as follows:

``115. INFORMATION TECHNOLOGY ACQUISITION PILOT PROGRAM....11501''.....

       (c) Repeal of On-Line Multiple Award Schedule Contracting 
     Requirements.--(1) Section 11701 of title 40, United States 
     Code, is repealed.
       (2) Sections 11702, 11703, and 11704 of such title are 
     redesignated as sections 11701, 11702, and 11703, 
     respectively.
       (3) The table of sections for chapter 117 of such title is 
     amended--
       (A) by striking the item relating to section 11701; and
       (B) by redesignating the items relating to sections 11702, 
     11703, and 11704 as sections 11701, 11702, and 11703, 
     respectively.

     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 such chapter 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, as amended by section 811, 
     is further amended by adding at the end the following new 
     subsection:
       ``(h) 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. 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)); and
       (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 submitted 15 months after the date of the 
     establishment of the Army Contracting Agency.

     SEC. 829. AUTHORIZATION TO TAKE ACTIONS TO CORRECT THE 
                   INDUSTRIAL RESOURCE SHORTFALL FOR RADIATION-
                   HARDENED ELECTRONICS.

       Notwithstanding the limitation in section 303(a)(6)(C) of 
     the Defense Production Act of 1950 (50 U.S.C. App. 
     2093(a)(6)(C)), action or actions may be taken under section 
     303 of that Act to correct the industrial resource shortfall 
     for radiation-hardened electronics, if such actions do not 
     cause the aggregate outstanding amount of all such actions to 
     exceed $106,000,000.
      TITLE IX--DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT

   Subtitle A--Duties and Functions of Department of Defense Officers

Sec. 901. Under Secretary of Defense for Intelligence.
Sec. 902. Reorganization of Office of Secretary of Defense for 
              administration of duties relating to homeland defense and 
              combating terrorism.

                      Subtitle B--Space Activities

Sec. 911. Oversight of acquisition for defense space programs.
Sec. 912. Report regarding assured access to space for the United 
              States.

                          Subtitle C--Reports

Sec. 921. Report on establishment of United States Northern Command.
Sec. 922. Time for submittal of report on Quadrennial Defense Review.
Sec. 923. National defense mission of Coast Guard to be included in 
              future Quadrennial Defense Reviews.
Sec. 924. Report on establishment of a Joint National Training Complex 
              and joint opposing forces.

                       Subtitle D--Other Matters

Sec. 931. Authority to accept gifts for National Defense University.
Sec. 932. Western Hemisphere Institute for Security Cooperation.
Sec. 933. Conforming amendment to reflect disestablishment of 
              Department of Defense Consequence Management Program 
              Integration Office.
Sec. 934. Increase in number of Deputy Commandants of the Marine Corps.
   Subtitle A--Duties and Functions of Department of Defense Officers

     SEC. 901. 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 after section 139 and redesignating that section as 
     section 139a; and
       (2) 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 Intelligence takes 
     precedence in the Department of Defense after the Under 
     Secretary of Defense for Personnel and Readiness.''.
       (b) Conforming Amendments.--(1) Section 131(b) of such 
     title is amended--
       (A) by striking paragraphs (2) through (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--

[[Page H8141]]

       (A) by striking the item relating to section 137 and 
     inserting the following:

``137. Under Secretary of Defense for Intelligence.'';

     and
       (B) by inserting after the item relating to section 139 the 
     following new item:

``139a. Director of Defense Research and Engineering.''.
       (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.''.

       (d) Relationship to Authorities Under National Security Act 
     of 1947.--Nothing in section 137 of title 10, United States 
     Code, as added by subsection (a), shall supersede or modify 
     the authorities of the Secretary of Defense and the Director 
     of Central Intelligence as established by the National 
     Security Act of 1947 (50 U.S.C. 401 et seq.).
       (e) Report.--Not later than 90 days after the date of the 
     enactment of this Act, the Secretary of Defense shall submit 
     to Congress a report on the establishment of the position of 
     Under Secretary of Defense for Intelligence. The report shall 
     set forth the following:
       (1) The mission prescribed for that Under Secretary.
       (2) The organizational structure established for the office 
     of that Under Secretary.
       (3) The relationship of that Under Secretary with the Under 
     Secretary of Defense for Acquisition, Technology, and 
     Logistics and the Under Secretary of Defense for Policy.
       (4) The relationship of that Under Secretary with each of 
     the following intelligence components of the Department of 
     Defense: the National Security Agency, the Defense 
     Intelligence Agency, the National Imagery and Mapping Agency, 
     and the National Reconnaissance Office.
       (5) The mission of the position designated, as of the date 
     of the enactment of this Act, as Assistant Secretary of 
     Defense for Command, Control, Communications, and 
     Intelligence and the relationship of that position to the 
     Under Secretary of Defense for Intelligence.

     SEC. 902. REORGANIZATION OF OFFICE OF SECRETARY OF DEFENSE 
                   FOR ADMINISTRATION OF DUTIES RELATING TO 
                   HOMELAND DEFENSE AND COMBATING TERRORISM.

       (a) Assistant Secretary of Defense for Homeland Defense.--
     Section 138(b) of title 10, United States Code, is amended by 
     inserting after paragraph (2) the following new paragraph:
       ``(3) One of the Assistant Secretaries shall be the 
     Assistant Secretary of Defense for Homeland Defense. He shall 
     have as his principal duty the overall supervision of the 
     homeland defense activities of the Department of Defense.''.
       (b) Transfer to Under Secretary of Defense for Policy of 
     Responsibility for Combating Terrorism.--Section 134(b) of 
     such title is amended by adding at the end the following new 
     paragraph:
       ``(4) Subject to the authority, direction, and control of 
     the Secretary of Defense, the Under Secretary of Defense for 
     Policy shall have overall direction and supervision for 
     policy, program planning and execution, and allocation and 
     use of resources for the activities of the Department of 
     Defense for combating terrorism.''.
       (c) Conforming Amendment.--Section 138(b) of such title is 
     amended by striking paragraph (6).
       (d) Repeal of Previous Contingent Reduction in Number of 
     Assistant Secretaries of Defense.--Subsections (c) and (d) of 
     section 901 of the National Defense Authorization Act for 
     Fiscal Year 2002 (Public Law 107-107; 115 Stat. 1194) are 
     repealed.
                      Subtitle B--Space Activities

     SEC. 911. OVERSIGHT OF ACQUISITION FOR DEFENSE SPACE 
                   PROGRAMS.

       (a) In General.--The Secretary of Defense shall provide for 
     oversight of acquisition for defense space programs through 
     appropriate organizations of the Office of the Secretary of 
     Defense.
       (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 acquisition for 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 oversight 
     of acquisition for defense space programs.
       (D) The process for the development of independent cost 
     estimates for acquisition for defense space programs, 
     including the organization responsible for developing such 
     cost estimates and when such cost estimates shall be 
     required.
       (E) The process by which the military departments, Defense 
     Agencies, and organizations in the Office of the Secretary of 
     Defense develop and coordinate the budgets for acquisition 
     for defense space programs.
       (F) The process for the resolution of conflicts among the 
     Department of Defense elements referred to in subparagraphs 
     (A) and (E) regarding acquisition for defense space programs.
       (c) Defense Space Program Defined.--In this section, the 
     term ``defense space program'' means a program of the 
     Department of Defense that--
       (1) is included in the ``virtual major force program'' for 
     space activities that was established by the Secretary of 
     Defense and was to have been submitted with the 2003 fiscal 
     year budget for the Department of Defense; or
       (2) after the date of the enactment of this Act, is 
     included in a virtual major force program for space 
     categories or in a major force program for space activities 
     established after such date.

     SEC. 912. REPORT REGARDING ASSURED ACCESS TO SPACE FOR THE 
                   UNITED STATES.

       (a) Plan.--The Secretary of Defense shall--
       (1) evaluate all options for sustaining the space launch 
     industrial base of the United States; and
       (2) develop an integrated, long-range, and adequately 
     funded plan for assuring access to space by the United 
     States.
       (b) Report.--Not later than March 1, 2003, the Secretary of 
     Defense shall submit to Congress a report on the plan 
     developed under subsection (a)(2).
                          Subtitle C--Reports

     SEC. 921. REPORT ON ESTABLISHMENT OF UNITED STATES NORTHERN 
                   COMMAND.

       Not later than March 1, 2003, the Secretary of Defense 
     shall submit to the Committees on Armed Services of the 
     Senate and the House of Representatives a report providing an 
     implementation plan for the establishment of the United 
     States Northern Command, which is established effective 
     October 1, 2002. The report shall address the following:
       (1) The required budget for standing-up and maintaining 
     that command over the period of the future-years defense 
     program.
       (2) The rationale for the selection of Peterson Air Force 
     Base, Colorado, as the headquarters of that command, the 
     criteria used in the selection of Peterson Air Force Base, 
     and the alternative locations considered for that 
     headquarters.
       (3) The required military and civilian personnel levels for 
     the headquarters of that command and a specification of the 
     combatant commands and other Department of Defense sources 
     from which such headquarters personnel will be transferred, 
     shown by the number of military and civilian personnel from 
     each such command or other Department of Defense source.
       (4) The organization of the command, a justification of any 
     components of the command, and a review of organizations and 
     units permanently assigned or tasked to the command.
       (5) The relationship of that command (A) to the Office of 
     Homeland Security, the Department of Homeland Security, the 
     Homeland Security Council, and any other Federal coordinating 
     entity, (B) to other Federal departments and agencies, and 
     (C) to State and local law enforcement agencies.
       (6) The relationship of that command with the National 
     Guard Bureau, individual State National Guard Headquarters, 
     and State and local officials the command may be called upon 
     to provide support.
       (7) The legal implications of members of the Armed Forces, 
     including the National Guard in both Federal and State 
     status, operating on United States territory pursuant to 
     missions, operations, or activities of that command.
       (8) The status of Department of Defense consultations--
       (A) with Canada regarding Canada's role in, or relationship 
     with, and any expansion of mission for, the North American 
     Air Defense Command; and
       (B) with Mexico regarding Mexico's role in, or relationship 
     with, the United States Northern Command.
       (9) The status of United States consultations with the 
     North Atlantic Treaty Organization relating to the position 
     of Supreme Allied Commander, Atlantic, and the new chain of 
     command for that position.
       (10) The effect of the creation of the United States 
     Northern Command on the mission, budget, and resource levels 
     of other combatant commands, particularly the United States 
     Joint Forces Command.

     SEC. 922. 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. 923. NATIONAL DEFENSE MISSION OF COAST GUARD TO BE 
                   INCLUDED IN FUTURE QUADRENNIAL DEFENSE REVIEWS.

       Section 118(d) of title 10, United States Code, is 
     amended--
       (1) by redesignating paragraph (14) as paragraph (15); and
       (2) by inserting after paragraph (13) the following new 
     paragraph:
       ``(14) The national defense mission of the Coast Guard.''.

     SEC. 924. REPORT ON ESTABLISHMENT OF A JOINT NATIONAL 
                   TRAINING COMPLEX AND JOINT OPPOSING FORCES.

       (a) Report Required.--The commander of the United States 
     Joint Forces Command shall submit to the Secretary of Defense 
     a report that outlines a plan that would provide for the 
     development and implementation of a joint national training 
     concept together with the establishment of a joint training 
     complex for supporting the implementation of that concept. 
     Such a concept and complex--
       (1) may include various training sites, mobile training 
     ranges, public and private modeling and simulation centers, 
     and appropriate joint opposing forces; and
       (2) shall be capable of supporting field exercises and 
     experimentation at the operational

[[Page H8142]]

     level of war across a broad spectrum of adversary 
     capabilities.
       (b) Submission of Report.--Not later than six months after 
     the date of the enactment of this Act, the Secretary shall 
     submit the report under subsection (a), together with any 
     comments that the Secretary considers appropriate and any 
     comments that the Chairman of the Joint Chiefs of Staff 
     considers appropriate, to the Committee on Armed Services of 
     the Senate and the Committee on Armed Services of the House 
     of Representatives. The report may be included in the next 
     annual report submitted under section 485 of title 10, United 
     States Code, after the date of the enactment of this Act or 
     it may be submitted separately.
       (c) Matters To Be Included.--The report under subsection 
     (a) shall include the following:
       (1) An identification and description of the types of joint 
     training and experimentation that would be conducted at such 
     a joint national training complex, together with a 
     description of how such training and experimentation would 
     enhance accomplishment of the six critical operational goals 
     for the Department of Defense specified at page 30 of the 
     Quadrennial Defense Review Report of the Secretary of Defense 
     issued on September 30, 2001.
       (2) A discussion of how establishment of such a complex 
     (including joint opposing forces) would promote innovation 
     and transformation throughout the Department of Defense.
       (3) A discussion of how results from training and 
     experiments conducted at such a complex would be taken into 
     consideration in the Department of Defense plans, programs, 
     and budgeting process and by appropriate decision making 
     bodies within the Department of Defense.
       (4) A methodology, framework, and options for selecting 
     sites for such a complex, including consideration of current 
     training facilities that would accommodate requirements among 
     all the Armed Forces.
       (5) Options for development as part of such a complex of a 
     joint urban warfare training center that could also be used 
     for homeland defense and consequence management training for 
     Federal, State, and local training.
       (6) Cost estimates and resource requirements to establish 
     and maintain such a complex, including estimates of costs and 
     resource requirements for the use of contract personnel for 
     the performance of management, operational, and logistics 
     activities for such a complex .
       (7) An explanation of the relationship between and among 
     such a complex and the Department of Defense Office of 
     Transformation, the Joint Staff, the United States Joint 
     Forces Command, the United States Northern Command, and each 
     element of the major commands within the separate Armed 
     Forces with responsibility for experimentation and training.
       (8) A discussion of how implementation of a joint opposing 
     force would be established, including the feasibility of 
     using qualified contractors for the function of establishing 
     and maintaining joint opposing forces and the role of foreign 
     forces.
       (9) A timeline for the establishment of such a complex and 
     for such a complex to achieve (A) initial operational 
     capability, and (B) full operational capability.
                       Subtitle D--Other Matters

     SEC. 931. AUTHORITY TO ACCEPT GIFTS FOR NATIONAL DEFENSE 
                   UNIVERSITY.

       (a) In General.--Chapter 155 of title 10, United States 
     Code, is amended by adding at the end the following new 
     section:

     ``Sec. 2612. National Defense University: acceptance of gifts

       ``(a) The Secretary of Defense may accept, hold, 
     administer, and spend any gift, including a gift from an 
     international organization and a foreign gift or donation (as 
     defined in section 2611(f) of this title), that is made on 
     the condition that it be used in connection with the 
     operation or administration of the National Defense 
     University. The Secretary may pay all necessary expenses in 
     connection with the acceptance of a gift under this 
     subsection.
       ``(b) There is established in the Treasury a fund to be 
     known as the `National Defense University Gift Fund'. Gifts 
     of money, and the proceeds of the sale of property, received 
     under subsection (a) shall be deposited in the fund. The 
     Secretary may disburse funds deposited under this subsection 
     for the benefit or use of the National Defense University.
       ``(c) Subsection (c) of section 2601 of this title applies 
     to property that is accepted under subsection (a) in the same 
     manner that such subsection applies to property that is 
     accepted under subsection (a) of that section.
       ``(d)(1) Upon request of the Secretary of Defense, the 
     Secretary of the Treasury may--
       ``(A) retain money, securities, and the proceeds of the 
     sale of securities, in the National Defense University Gift 
     Fund; and
       ``(B) invest money and reinvest the proceeds of the sale of 
     securities in that fund in securities of the United States or 
     in securities guaranteed as to principal and interest by the 
     United States.
       ``(2) The interest and profits accruing from those 
     securities shall be deposited to the credit of the fund and 
     may be disbursed as provided in subsection (b).
       ``(e) In this section:
       ``(1) the term `gift' includes a devise of real property or 
     a bequest of personal property and any gift of an interest in 
     real property.
       ``(2) The term `National Defense University' includes any 
     school or other component of the National Defense University 
     specified under section 2165(b) of this title.
       ``(f) The Secretary of Defense shall prescribe regulations 
     to carry out this section.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of such chapter is amended by adding at the end the 
     following new item:

``2612. National Defense University: acceptance of gifts.''.

     SEC. 932. 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. 933. CONFORMING AMENDMENT TO REFLECT DISESTABLISHMENT OF 
                   DEPARTMENT OF DEFENSE CONSEQUENCE MANAGEMENT 
                   PROGRAM INTEGRATION OFFICE.

       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. 934. INCREASE IN NUMBER OF DEPUTY 
                   COMMANDANTS OF THE MARINE CORPS.

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

                     Subtitle A--Financial Matters

Sec. 1001. Transfer authority.
Sec. 1002. Authorization of supplemental appropriations for fiscal year 
              2002.
Sec. 1003. United States contribution to NATO common-funded budgets in 
              fiscal year 2003.
Sec. 1004. Development and implementation of financial management 
              enterprise architecture.
Sec. 1005. Accountable officials in the Department of Defense.
Sec. 1006. Uniform standards throughout Department of Defense for 
              exposure of personnel to pecuniary liability for loss of 
              Government property.
Sec. 1007. Improvements in purchase card management.
Sec. 1008. Improvements in travel card management.
Sec. 1009. Clearance of certain transactions recorded in Treasury 
              suspense accounts and resolution of certain check 
              issuance discrepancies.
Sec. 1010. Authorization of funds for ballistic missile defense 
              programs or combating terrorism programs of the 
              Department of Defense.
Sec. 1011. Reduction in overall authorization due to inflation savings.

                Subtitle B--Naval Vessels and Shipyards

Sec. 1021. Number of Navy combatant surface vessels in active and 
              reserve service.
Sec. 1022. Annual long-range plan for the construction of naval 
              vessels.
Sec. 1023. Assessment of the feasibility of the expedited equipping of 
              a Navy ship with a version of the 155-millimeter Advanced 
              Gun System.
Sec. 1024. Report on initiatives to increase operational days of Navy 
              ships.
Sec. 1025. Ship combat system industrial base.
Sec. 1026. Sense of Congress concerning aircraft carrier force 
              structure.
Sec. 1027. Conveyance, Navy drydock, Portland, Oregon.

                     Subtitle C--Strategic Matters

Sec. 1031. Strategic force structure plan for nuclear weapons and 
              delivery systems.
Sec. 1032. Annual report on weapons to defeat hardened and deeply 
              buried targets.
Sec. 1033. Report on effects of nuclear earth-penetrator weapon and 
              other weapons.

                          Subtitle D--Reports

Sec. 1041. Repeal and modification of various reporting requirements 
              applicable to the Department of Defense.
Sec. 1042. Requirement that Department of Defense reports to Congress 
              be accompanied by electronic version.
Sec. 1043. Annual report on the conduct of military operations 
              conducted as part of Operation Enduring Freedom.

[[Page H8143]]

Sec. 1044. Report on efforts to ensure adequacy of fire fighting staffs 
              at military installations.
Sec. 1045. Report on designation of certain Louisiana highway as 
              Defense Access Road.

             Subtitle E--Extension of Expiring Authorities

Sec. 1051. Extension of authority for Secretary of Defense to sell 
              aircraft and aircraft parts for use in responding to oil 
              spills.
Sec. 1052. Six-month extension of expiring Governmentwide information 
              security requirements; continued applicability of 
              expiring Governmentwide information security requirements 
              to the Department of Defense.
Sec. 1053. Two-year extension of authority of the Secretary of Defense 
              to engage in commercial activities as security for 
              intelligence collection activities abroad.

                       Subtitle F--Other Matters

Sec. 1061. Time for transmittal of annual defense authorization 
              legislative proposal.
Sec. 1062. Technical and clerical amendments.
Sec. 1063. Use for law enforcement purposes of DNA samples maintained 
              by Department of Defense for identification of human 
              remains.
Sec. 1064. Enhanced authority to obtain foreign language services 
              during periods of emergency.
Sec. 1065. Rewards for assistance in combating terrorism.
Sec. 1066. Provision of space and services to military welfare 
              societies.
Sec. 1067. Prevention and mitigation of corrosion of military equipment 
              and infrastructure.
Sec. 1068. Transfer of historic DF-9E Panther aircraft to Women 
              Airforce Service Pilots Museum.
Sec. 1069. Increase in amount authorized to be expended for Department 
              of Defense program to commemorate 50th anniversary of the 
              Korean War.
                     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 paragraph (1) may not 
     exceed $2,000,000,000.
       (b) Limitations.--The authority provided by subsection (a) 
     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 subsection (a) 
     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).
       (e) Increase in Amount of Transfer Authority Authorized for 
     FY02.--Section 1001 of the National Defense Authorization Act 
     for Fiscal Year 2002 (Public Law 107-107; 115 Stat. 1201) is 
     amended by striking ``$2,000,000,000'' and inserting 
     ``$2,500,000,000''.

     SEC. 1002. AUTHORIZATION OF SUPPLEMENTAL APPROPRIATIONS FOR 
                   FISCAL YEAR 2002.

       (a) DOD Authorizations.--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 are increased 
     (by a supplemental appropriation) or decreased (by a 
     rescission), or both, or are increased by a transfer of 
     funds, pursuant to chapter 3 or chapter 10 of title I of 
     Public Law 107-206 (116 Stat. 835, 878).
       (b) NNSA Authorizations.--Amounts authorized to be 
     appropriated to the Department of Energy 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 are increased 
     (by a supplemental appropriation) or decreased (by a 
     rescission), or both, or are increased by a transfer of 
     funds, pursuant to chapter 5 of title I of Public Law 107-206 
     (116 Stat. 848).
       (c) Report on Fiscal Year 2002 Transfers.--Not later than 
     January 15, 2003, the Secretary of Defense shall submit to 
     the congressional defense committees a report stating, for 
     each transfer during fiscal year 2002 of an amount provided 
     for the Department of Defense for that fiscal year through a 
     so-called ``transfer account'', including the Defense 
     Emergency Response Fund or any other similar account, the 
     amount of the transfer, the appropriation account to which 
     the transfer was made, and the specific purpose for which the 
     transferred funds were used.

     SEC. 1003. 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(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. 1004. DEVELOPMENT AND IMPLEMENTATION OF FINANCIAL 
                   MANAGEMENT ENTERPRISE ARCHITECTURE.

       (a) Requirement for Enterprise Architecture and for 
     Transition Plan.--Not later than May 1, 2003, the Secretary 
     of Defense shall develop--
       (1) a financial management enterprise architecture for all 
     budgetary, accounting, finance, enterprise resource planning, 
     and mixed information systems of the Department of Defense; 
     and
       (2) a transition plan for implementing that financial 
     management enterprise architecture.
       (b) Composition of Enterprise Architecture.--(1) The 
     financial management enterprise architecture developed under 
     subsection (a)(1) shall describe an information 
     infrastructure that, at a minimum, would enable the 
     Department of Defense to--
       (A) comply with all Federal accounting, financial 
     management, and reporting requirements;
       (B) routinely produce timely, accurate, and reliable 
     financial information for management purposes;
       (C) integrate budget, accounting, and program information 
     and systems; and
       (D) provide for the systematic measurement of performance, 
     including the ability to produce timely, relevant, and 
     reliable cost information.
       (2) That enterprise architecture shall also include 
     policies, procedures, data standards, and system interface 
     requirements that are to apply uniformly throughout the 
     Department of Defense.
       (c) Composition of Transition Plan.--The transition plan 
     developed under subsection (a)(2) shall include the 
     following:
       (1) The acquisition strategy for the enterprise 
     architecture, including specific time-phased milestones, 
     performance metrics, and financial and nonfinancial resource 
     needs.
       (2) A listing of the mission critical or mission essential 
     operational and developmental financial and nonfinancial 
     management systems of the Department of Defense, as defined 
     by the Under Secretary of Defense (Comptroller), consistent 
     with budget justification documentation, together with--
       (A) the costs to operate and maintain each of those systems 
     during fiscal year 2002; and
       (B) the estimated cost to operate and maintain each of 
     those systems during fiscal year 2003.
       (3) A listing of the operational and developmental 
     financial management systems of the Department of Defense as 
     of the date of the enactment of this Act (known as ``legacy 
     systems'') that will not be part of the objective financial 
     and nonfinancial management system, together with the 
     schedule for terminating those legacy systems that provides 
     for reducing the use of those legacy systems in phases.
       (d) Conditions for Obligation of Significant Amounts for 
     Financial System Improvements.--An amount in excess of 
     $1,000,000 may be obligated for a defense financial system 
     improvement only if the Under Secretary of Defense 
     (Comptroller) makes a determination regarding that 
     improvement as follows:
       (1) Before the date of an approval specified in paragraph 
     (2), a determination that the defense financial system 
     improvement is necessary for either of the following reasons:
       (A) To achieve a critical national security capability or 
     address a critical requirement in an area such as safety or 
     security.
       (B) 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.

[[Page H8144]]

       (2) On and after the date of any approval by the Secretary 
     of Defense of a financial management enterprise architecture 
     and a transition plan that satisfy the requirements of this 
     section, a determination that the defense financial system 
     improvement is consistent with both the enterprise 
     architecture and the transition plan.
       (e) Congressional Reports.--Not later than March 15 of each 
     year from 2004 through 2007, the Secretary of Defense shall 
     submit to the congressional defense committees a report on 
     the progress of the Department of Defense in implementing the 
     enterprise architecture and transition plan required by this 
     section. Each report shall include, at a minimum--
       (1) a description of the actions taken during the preceding 
     fiscal year to implement the enterprise architecture and 
     transition plan (together with the estimated costs of such 
     actions);
       (2) an explanation of any action planned in the enterprise 
     architecture and transition plan to be taken during the 
     preceding fiscal year that was not taken during that fiscal 
     year;
       (3) a description of the actions taken and planned to be 
     taken during the current fiscal year to implement 
     the enterprise architecture and transition plan (together 
     with the estimated costs of such actions); and
       (4) a description of the actions taken and planned to be 
     taken during the next fiscal year to implement the enterprise 
     architecture and transition plan (together with the estimated 
     costs of such actions).
       (f) Comptroller General Review.--Not later than 60 days 
     after the approval of an enterprise architecture and 
     transition plan in accordance with the requirements of 
     subsection (a), and not later than 60 days after the 
     submission of an annual report required by subsection (e), 
     the Comptroller General shall submit to the congressional 
     defense committees an assessment of the extent to which the 
     actions taken by the Department comply with the requirements 
     of this section.
       (g) Definitions.--In this section:
       (1) The term ``defense financial system improvement'' means 
     the acquisition of a new budgetary, accounting, finance, 
     enterprise resource planning, or mixed information system for 
     the Department of Defense or a modification of an existing 
     budgetary, accounting, finance, enterprise resource planning, 
     or mixed information system of the Department of Defense. 
     Such term does not include routine maintenance and operation 
     of any such system.
       (2) The term ``mixed information system'' means an 
     information system that supports financial and non-financial 
     functions of the Federal Government as defined in Office of 
     Management and Budget Circular A-127 (Financial management 
     Systems).
       (h) Repeal.--(1) Section 2222 of title 10, United States 
     Code, is repealed. The table of sections at the beginning of 
     chapter 131 of such title is amended by striking the item 
     relating to such section.
       (2) Section 185(d) of such title is amended by striking 
     ``has the meaning given that term in section 2222(c)(2) of 
     this title'' and inserting ``means an automated or manual 
     system from which information is derived for a financial 
     management system or an accounting system''.

     SEC. 1005. ACCOUNTABLE OFFICIALS IN THE DEPARTMENT OF 
                   DEFENSE.

       (a) Accountable Officials Within the Department of 
     Defense.--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 by Secretary of Defense.--The Secretary 
     of Defense may designate any civilian employee of the 
     Department of Defense or member of the armed forces under the 
     Secretary's jurisdiction who is described in subsection (b) 
     as an employee or member who, in addition to any other 
     potential accountability, may be held accountable through 
     personal monetary liability for an illegal, improper, or 
     incorrect payment made the Department of Defense described in 
     subsection (c). Any such designation shall be in writing. Any 
     employee or member who is so designated may be referred to as 
     a `departmental accountable official'.
       ``(b) Covered Employees and Members.--An employee or member 
     of the armed forces described in this subsection is an 
     employee or member who--
       ``(1) is responsible in the performance of the employee's 
     or member's duties for providing to a certifying official of 
     the Department of Defense information, data, or services that 
     are directly relied upon by the certifying official in the 
     certification of vouchers for payment; and
       ``(2) is not otherwise accountable under subtitle III of 
     title 31 or any other provision of law for payments made on 
     the basis of such vouchers.
       ``(c) Pecuniary Liability.--(1) The Secretary of Defense 
     may subject a departmental accountable official to pecuniary 
     liability for an illegal, improper, or incorrect payment made 
     by the Department of Defense if the Secretary determines that 
     such payment--
       ``(A) resulted from information, data, or services that 
     that official provided to a certifying official and upon 
     which that certifying official directly relies in certifying 
     the voucher supporting that payment; and
       ``(B) was the result of fault or negligence on the part of 
     that departmental accountable official.
       ``(2) Pecuniary liability under this subsection shall apply 
     in the same manner and to the same extent as applies to an 
     official accountable under subtitle III of title 31.
       ``(3) Any pecuniary liability of a departmental accountable 
     official under this subsection for a loss to the United 
     States resulting from an illegal, improper, or incorrect 
     payment is joint and several with that of any other officer 
     or employee of the United States or member of the uniformed 
     services who is pecuniarily liable for such loss.
       ``(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. 1006. UNIFORM STANDARDS THROUGHOUT DEPARTMENT OF DEFENSE 
                   FOR EXPOSURE OF PERSONNEL TO PECUNIARY 
                   LIABILITY FOR LOSS OF GOVERNMENT PROPERTY.

       (a) Extension of Army and Air Force Report-of-Survey 
     Procedures to Navy and Marine Corps and all DOD Civilian 
     Employees.--(1) Chapter 165 of title 10, United States Code, 
     is amended by adding at the end the following new section:

     ``Sec. 2787. Reports of survey

       ``(a) Action on Reports of Survey.--Under regulations 
     prescribed pursuant to subsection (c), any officer of the 
     Army, Navy, Air Force, or Marine Corps or any civilian 
     employee of the Department of Defense designated in 
     accordance with those regulations may act upon reports of 
     surveys 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 such chapter 
     is amended by adding at the end the following new item:

``2787. Reports of survey.''.

       (b) Extension to Members of Navy and Marine Corps of Pay 
     Deduction Authority Pertaining to 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.
       (d) Effective Date.--The amendments made by this section 
     shall apply with respect 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 occurring on or after the effective 
     date of regulations prescribed pursuant to section 2787 of 
     title 10, United States Code, as added by subsection (a).

     SEC. 1007. IMPROVEMENTS IN PURCHASE CARD MANAGEMENT.

       (a) Purchase Card Management Improvements.--Section 2784 of 
     title 10, United States Code, is amended--
       (1) in subsection (a), by striking ``, acting through the 
     Under Secretary of Defense (Comptroller),''; and
       (2) by adding at the end of subsection (b) the following:
       ``(7) That periodic reviews are performed to determine 
     whether each purchase card holder has a need for the purchase 
     card.
       ``(8) That the Inspector General of the Department of 
     Defense, the Inspector General of the Army, the Naval 
     Inspector General, and the Inspector General of the Air Force 
     perform periodic audits to identify--
       ``(A) potentially fraudulent, improper, and abusive uses of 
     purchase cards;
       ``(B) any patterns of improper card holder transactions, 
     such as purchases of prohibited items; and
       ``(C) categories of purchases that should be made by means 
     other than purchase cards in order to better aggregate 
     purchases and obtain lower prices.
       ``(9) That appropriate training is provided to each 
     purchase card holder and each official with responsibility 
     for overseeing the use of purchase cards issued by the 
     Department of Defense.
       ``(10) That the Department of Defense has specific policies 
     regarding the number of purchase cards issued by various 
     organizations and categories of organizations, the credit 
     limits authorized for various categories of card holders, and 
     categories of employees eligible to be issued purchase cards, 
     and that those policies are designed to minimize the 
     financial risk to the Federal Government of the issuance of 
     the purchase cards and to ensure the integrity of purchase 
     card holders.
       ``(c) Penalties for Violations.--The regulations prescribed 
     under subsection (a) shall--
       ``(1) provide for appropriate adverse personnel actions or 
     other punishment to be imposed in cases in which employees of 
     the Department of Defense violate such regulations or are 
     negligent or engage in misuse, abuse, or fraud with respect 
     to a purchase card, including removal in appropriate cases; 
     and

[[Page H8145]]

       ``(2) provide that a violation of such regulations by a 
     person subject to chapter 47 of this title (the Uniform Code 
     of Military Justice) is punishable as a violation of section 
     892 of this title (article 92 of the Uniform Code of Military 
     Justice).''.
       (b) Conforming and Clerical Amendments.--(1) Section 2784 
     of such title is further amended--
       (A) in the section heading, by striking ``credit'' and 
     inserting ``purchase'';
       (B) in the heading of subsection (a), by striking 
     ``Credit'' and inserting ``Purchase''; and
       (C) in subsection (a) and paragraphs (1) through (6) of 
     subsection (b), by striking ``credit'' and inserting 
     ``purchase'' each place it appears.
       (2) The table of sections at the beginning of chapter 165 
     of such title is amended by striking the item relating to 
     section 2784 and inserting the following:

``2784. Management of purchase cards.''.

     SEC. 1008. IMPROVEMENTS IN TRAVEL CARD MANAGEMENT.

       (a) Travel Card Management Improvements.--Chapter 165 of 
     title 10, United States Code, is amended by inserting after 
     section 2784 the following new section:

     ``Sec. 2784a. Management of travel cards

       ``(a) Disbursement of Travel Allowances Directly to 
     Creditors.--(1) The Secretary of Defense may require that any 
     part of a travel or transportation allowance 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 or a member of the 
     armed forces is entitled under section 404 of title 37.
       ``(b) Offsets for Delinquent Travel Card Charges.--(1) The 
     Secretary of Defense may require that there be deducted and 
     withheld from any basic 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.
       ``(c) Offsets of Retired Pay.--In the case of a former 
     employee of the Department of Defense or a retired member of 
     the armed forces who is receiving retired pay and who owes an 
     amount to a creditor by reason of one or more charges on a 
     Defense travel card that were made before the retirement of 
     the employee or member, the Secretary may require amounts to 
     be deducted and withheld from any retired pay of the former 
     employee or retired member in the same manner and subject to 
     the same conditions as the Secretary deducts and withholds 
     amounts from basic pay payable to an employee or member under 
     subsection (b).
       ``(d) 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 with 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 or retired pay, as the case may be, payable for the 
     pay period over the total of the amounts deducted and 
     withheld from such pay.
       ``(3) The term `retired pay' means--
       ``(A) in the case of a former employee of the Department of 
     Defense, any retirement benefit payable to that individual, 
     out of the Civil Service Retirement and Disability Fund, 
     based (in whole or in part) on service performed by such 
     individual as a civilian employee of the Department of 
     Defense; and
       ``(B) in the case of a retired member of the armed forces 
     or member of the Fleet Reserve or Fleet Marine Corps Reserve, 
     retired or retainer pay to which the member is entitled.
       ``(e) Exclusion of Coast Guard.--This section does not 
     apply to the Coast Guard.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of chapter 165 of such title is amended by 
     inserting after the item relating to section 2784 the 
     following new item:

``2784a. Management of travel cards.''.

     SEC. 1009. CLEARANCE OF CERTAIN TRANSACTIONS RECORDED IN 
                   TREASURY SUSPENSE ACCOUNTS AND RESOLUTION OF 
                   CERTAIN CHECK ISSUANCE DISCREPANCIES.

       (a) Clearance of Certain 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 Account 
     (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)(B) 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 identify 
     which appropriation should be charged with such disbursement 
     and that further efforts to do so 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 identify which 
     appropriation should be charged with the amount of the check 
     and that further efforts to do so 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 Cancellation Authority Following 
     Determination.--(1) A particular undistributed disbursement 
     may not be canceled under paragraph (1)(B) of subsection (a) 
     more than 30 days after the date of the written determination 
     made by the Secretary of Defense under paragraph (2) of such 
     subsection regarding that undistributed disbursement.
       (2) A particular discrepancy may not be canceled under 
     paragraph (1) of subsection (b) more than 30 days after the 
     date of the written determination made by the Secretary of 
     Defense under paragraph (2) of such subsection regarding that 
     discrepancy.
       (e) Program Termination.--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. 1010. AUTHORIZATION OF FUNDS FOR BALLISTIC MISSILE 
                   DEFENSE PROGRAMS OR COMBATING TERRORISM 
                   PROGRAMS OF THE DEPARTMENT OF DEFENSE.

       (a) Authorization.--There is hereby authorized to be 
     appropriated for fiscal year 2003 for the military functions 
     of the Department of Defense, in addition to amounts 
     authorized to be appropriated in titles I, II, and III, the 
     amount of $814,300,000, to be available, in accordance 
     with subsection (b), for the following purposes:
       (1) Research, development, test, and evaluation for 
     ballistic missile defense programs of the Missile Defense 
     Agency of the Department of Defense.
       (2) Activities of the Department of Defense for combating 
     terrorism at home and abroad.
       (b) Allocation by President.--(1) The amount authorized to 
     be appropriated by subsection (a) shall be allocated between 
     the purposes stated in paragraphs (1) and (2) of that 
     subsection in such manner as may be determined by the 
     President based upon the national security interests of the 
     United States. The amount authorized in subsection (a) shall 
     not be available for any other purpose.
       (2) Upon an allocation of such amount by the President, the 
     amount so allocated shall be transferred to the appropriate 
     regular authorization account under this division in the same 
     manner as provided in section 1001. Transfers under this 
     paragraph shall not be counted for the purposes of section 
     1001(a)(2).
       (3) Not later than 15 days after an allocation is made 
     under this subsection, the Secretary of Defense shall submit 
     to the congressional defense committees a report describing 
     the President's allocation, the basis for the President's 
     determination in making such allocation, and the Secretary's 
     plan for the use by the Department of Defense of the funds 
     made available pursuant to such allocation.

     SEC. 1011. REDUCTION IN OVERALL AUTHORIZATION DUE TO 
                   INFLATION SAVINGS.

       (a) Reduction.--The total amount authorized to be 
     appropriated by titles I, II, and III is the amount equal to 
     the sum of the individual authorizations in those titles 
     reduced by $1,000,000,000.
       (b) Source of Savings.--Reductions required in order to 
     comply with subsection (a) shall be derived from savings 
     resulting from lower-than-

[[Page H8146]]

     expected inflation as a result of the midsession review of 
     the budget conducted by the Office of Management and Budget.
       (c) Allocation of Reduction.--The Secretary of Defense 
     shall allocate the reduction required by subsection (a) among 
     the accounts in titles I, II, and III to reflect the extent 
     to which net inflation savings are available in those 
     accounts.
                Subtitle B--Naval Vessels and Shipyards

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

       (a) Contingent Requirement for Report.--(1) If, on the date 
     of the enactment of this Act, the number of combatant surface 
     vessels of the Navy is less than 116, the Secretary of the 
     Navy shall, not later than 90 days after such date, submit to 
     the Committees on Armed Services of the Senate and the House 
     of Representatives a report on the size of the force of 
     combatant surface vessels of the Navy. The report shall 
     include a risk assessment for a force of combatant surface 
     vessels in the number as of the date of the enactment of this 
     Act that is based on the same assumptions as were applied in 
     the QDR 2001 combatant surface force risk assessment.
       (2) The definitions in subsection (c) of section 7296 of 
     title 10, United States Code, as added by subsection (b), 
     apply to this subsection.
       (b) Number of Combatant Surface Vessels.--(1) Chapter 633 
     of title 10, United States Code, is amended by inserting 
     after section 7295 the following new section:

     ``Sec. 7296. Combatant surface vessels: notice before 
       reduction in number; preservation of surge capability

       ``(a) Notice-and-Wait Before Reductions.--(1) A reduction 
     described in paragraph (2) in the number of combatant surface 
     vessels may only be carried out after--
       ``(A) the Secretary of the Navy submits to the Committee on 
     Armed Services of the Senate and the Committee on Armed 
     Services of the House of Representatives a written 
     notification of the proposed reduction; and
       ``(B) a period of 90 days has expired after the date on 
     which such notification is received.
       ``(2) A reduction described in this paragraph in the number 
     of combatant surface vessels is a reduction--
       ``(A) from 116, or a number greater than 116, to a number 
     less than 116; or
       ``(B) from a number less than 116 to a lesser number.
       ``(3) Any notification under paragraph (1)(A) shall include 
     the following:
       ``(A) The schedule for the proposed reduction.
       ``(B) The number of vessels that are to comprise the force 
     of combatant surface vessels after the reduction.
       ``(C) A risk assessment for a force of combatant surface 
     vessels of the number specified under subparagraph (B) that 
     is based on the same assumptions as were applied in the QDR 
     2001 combatant surface force risk assessment.
       ``(b) Preservation of Surge Capability.--Whenever the 
     number of combatant surface vessels is less than 116, the 
     Secretary of the Navy shall maintain on the Naval Vessel 
     Register a sufficient number of combatant surface vessels to 
     enable the Navy to regain a force of combatant surface 
     vessels numbering not less than 116 within 120 days after the 
     date of any decision by the President to increase the number 
     of combatant surface vessels.
       ``(c) Definitions.--In this section:
       ``(1) The term `combatant surface vessels' means cruisers, 
     destroyers, and frigates that are in active service in the 
     Navy or in active reserve service in the Navy.
       ``(2) The term `QDR 2001 combatant surface force risk 
     assessment' means the risk assessment associated with a force 
     of combatant surface vessels numbering 116 that is set forth 
     in the report on the quadrennial defense review submitted to 
     Congress on September 30, 2001, under section 118 of this 
     title.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by inserting after the item relating to section 
     7295 the following new item:

``7296. Combatant surface vessels: notice before reduction in number; 
              preservation of surge capability.''.

       (c) Effective Date for 90-Day Waiting Period.--The 
     provisions of subparagraph (B) of subsection (a)(1) of 
     section 7296 of title 10, United States Code, as added by 
     subsection (b)(1) of this section, shall apply only with 
     respect to notifications submitted under subparagraph (A) of 
     that subsection on or after January 15, 2003.

     SEC. 1022. ANNUAL LONG-RANGE PLAN FOR THE CONSTRUCTION OF 
                   NAVAL VESSELS.

       (a) Annual Naval Vessel Construction Plan.--(1) Chapter 9 
     of title 10, United States Code, is amended by adding at the 
     end the following new section:

     ``Sec. 231. Budgeting for construction of naval vessels: 
       annual plan and certification

       ``(a) Annual Naval Vessel Construction Plan and 
     Certification.--The Secretary of Defense shall include with 
     the defense budget materials for a fiscal year--
       ``(1) a plan for the construction of combatant and support 
     vessels for the Navy developed in accordance with this 
     section; and
       ``(2) a certification by the Secretary that both the budget 
     for that fiscal year and the future-years defense program 
     submitted to Congress in relation to such budget under 
     section 221 of this title provide for funding of the 
     construction of naval vessels at a level that is sufficient 
     for the procurement of the vessels provided for in the plan 
     under paragraph (1) on the schedule provided in that plan.
       ``(b) Annual Naval Vessel Construction Plan.--(1) The 
     annual naval vessel construction plan developed for a fiscal 
     year for purposes of subsection (a)(1) should be designed so 
     that the naval vessel force provided for under that plan is 
     capable of supporting the national security strategy of the 
     United States as set forth in the most recent national 
     security strategy report of the President under section 108 
     of the National Security Act of 1947 (50 U.S.C. 404a), except 
     that, if at the time such plan is submitted with the defense 
     budget materials for that fiscal year, a national security 
     strategy report required under such section 108 has not 
     been submitted to Congress as required by paragraph (2) or 
     paragraph (3), if applicable, of subsection (a) of such 
     section, then such annual plan should be designed so that 
     the naval vessel force provided for under that plan is 
     capable of supporting the ship force structure recommended 
     in the report of the most recent Quadrennial Defense 
     Review.
       ``(2) Each such naval vessel construction plan shall 
     include the following:
       ``(A) A detailed program for the construction of combatant 
     and support vessels for the Navy over the next 30 fiscal 
     years.
       ``(B) A description of the necessary naval vessel force 
     structure to meet the requirements of the national security 
     strategy of the United States or the most recent Quadrennial 
     Defense Review, whichever is applicable under paragraph (1).
       ``(C) The estimated levels of annual funding necessary to 
     carry out the program, together with a discussion of the 
     procurement strategies on which such estimated levels of 
     annual funding are based.
       ``(c) Assessment When Vessel Construction Budget is 
     Insufficient To Meet Applicable Requirements.--If the budget 
     for a fiscal year provides for funding of the construction of 
     naval vessels at a level that is not sufficient to sustain 
     the naval vessel force structure specified in the naval 
     vessel construction plan for that fiscal year under 
     subsection (a), the Secretary shall include with the defense 
     budget materials for that fiscal year an assessment that 
     describes and discusses the risks associated with the reduced 
     force structure of naval vessels that will result from 
     funding naval vessel construction at such level. Such 
     assessment shall be coordinated in advance with the 
     commanders of the combatant commands.
       ``(d) Definitions.--In this section:
       ``(1) The term `budget', with respect to a fiscal year, 
     means the budget for that 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 that 
     fiscal year.
       ``(3) The term `Quadrennial Defense Review' means the 
     review of the defense programs and policies of the United 
     States that is carried out every four years under section 118 
     of this title.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of such chapter is amended by adding at the end the 
     following new item:

``231. Budgeting for construction of naval vessels: annual plan and 
              certification.''.

     SEC. 1023. ASSESSMENT OF THE FEASIBILITY OF THE EXPEDITED 
                   EQUIPPING OF A NAVY SHIP WITH A VERSION OF THE 
                   155-MILLIMETER ADVANCED GUN SYSTEM.

       (a) Feasibility Assessment Required.--(1) The Secretary of 
     the Navy shall conduct an assessment of the feasibility of 
     the expedited equipping of a Navy ship in active or inactive 
     service with a version of the 155-millimeter Advanced Gun 
     System that is being developed for the DD(X) next generation, 
     multi-mission, land attack surface combatant vessel.
       (2) The assessment shall include an analysis of--
       (A) the actions required to achieve such equipping and the 
     technical and programmatic risks associated with those 
     actions;
       (B) the plan, schedule, and funding required to achieve 
     such equipping; and
       (C) the effect (if any) that such equipping might have on 
     the development program and schedule for the DD(X) vessel.
       (b) Equipping on Expedited Schedule.--The schedule to be 
     considered in the assessment under subsection (a) shall 
     provide for equipping of a ship with a version of the 155-
     millimeter Advanced Gun System on an expedited schedule that 
     is consistent with the achievement of safety of operation, 
     but not later than October 1, 2006.
       (c) Report Required.--The Secretary shall submit to the 
     congressional defense committees a report on the results of 
     the assessment under subsection (a). 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. 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 Committee on Armed Services of 
     the Senate and the Committee on Armed Services of 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 any potential initiatives that 
     are under consideration within the Department of Defense.
       (b) Initiatives Within Limits of Existing Fleet and 
     Deployment Policy.--In the report, the Under Secretary shall 
     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

[[Page H8147]]

     increasing the routine lengths of deployments of Navy ships 
     above six months.
       (c) Required Focus Areas.--The report shall address, at a 
     minimum, the following 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) Ship Maintenance.--The report shall include an 
     assessment of how routine programmed ship maintenance would 
     be accomplished for Navy ships that would remain in a forward 
     area of operations.
       (e) 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. 1025. SHIP COMBAT SYSTEM INDUSTRIAL BASE.

       (a) Review.--The Secretary of Defense shall conduct a 
     review of the effect of the contract award announced on April 
     29, 2002, for the lead design agent for the DD(X) ship 
     program on the industrial base for ship combat system 
     development, including the industrial base for each of the 
     following: ship systems integration, radar, electronic 
     warfare, and launch systems.
       (b) Report Required.--Not later than March 31, 2003, the 
     Secretary shall submit to the congressional defense 
     committees a report based on the review under subsection (a). 
     The report shall include the following:
       (1) The Secretary's assessment of the effect of the 
     contract award referred to in that subsection on ship combat 
     system development and on the associated industrial base.
       (2) A description of any actions that the Secretary 
     proposes to ensure future competition in the ship combat 
     system development and industrial base.

     SEC. 1026. SENSE OF CONGRESS CONCERNING AIRCRAFT CARRIER 
                   FORCE STRUCTURE.

       (a) Findings.--Congress makes the following findings:
       (1) The aircraft carrier has been an integral component in 
     Operation Enduring Freedom and in the homeland defense 
     mission of Operation Noble Eagle beginning on September 11, 
     2001. The aircraft carriers that have participated in 
     Operation Enduring Freedom, as of May 1, 2002, are the USS 
     Enterprise (CVN-65), the USS Carl Vinson (CVN-70), the USS 
     Kitty Hawk (CV-63), the USS Theodore Roosevelt (CVN-71), the 
     USS John C. Stennis (CVN-74), and the USS John F. Kennedy 
     (CV-67). The aircraft carriers that have participated in 
     Operation Noble Eagle, as of May 1, 2002, are the USS George 
     Washington (CVN-73), the USS John F. Kennedy (CV-67), and the 
     USS John C. Stennis (CVN-74).
       (2) Since 1945, the United States has built 172 bases 
     overseas, of which only 24 are currently in use.
       (3) The aircraft carrier provides an independent base of 
     operations should no land base be available for aircraft, 
     with carrier air wings providing the United States sea-based 
     forward-deployed offensive strike capability.
       (4) The aircraft carrier is an essential component of the 
     Navy.
       (5) The naval tactical aircraft modernization programs are 
     proceeding on schedule.
       (6) As established by the Navy, the United States requires 
     the service of 15 aircraft carriers to completely fulfill all 
     the naval commitments assigned to the Navy without gapping 
     carrier presence.
       (b) Sense of Congress.--It is the sense of Congress that 
     the number of aircraft carriers of the Navy in active service 
     should not be less than 12.
       (c) Operation Enduring Freedom and Operation Noble Eagle 
     Commendation.--Congress hereby commends the military and 
     civilian personnel who have participated in Operation 
     Enduring Freedom and Operation Noble Eagle.

     SEC. 1027. CONVEYANCE, NAVY DRYDOCK, PORTLAND, OREGON.

       (a) Conveyance Authorized.--The Secretary of the Navy may 
     sell Navy Drydock No. YFD-69, located in Portland, Oregon, to 
     Portland Shipyard, LLC, which is the current user of the 
     drydock.
       (b) Condition of Conveyance.--The conveyance under 
     subsection (a) shall be subject to the condition that the 
     purchaser agree to retain the drydock on Swan Island in 
     Portland, Oregon, until at least September 30, 2007.
       (c) Consideration.--As consideration for the conveyance of 
     the drydock under subsection (a), the purchaser shall pay to 
     the Secretary an amount equal to the fair market value of the 
     drydock at the time of the conveyance, as determined by 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.
                     Subtitle C--Strategic Matters

     SEC. 1031. STRATEGIC FORCE STRUCTURE PLAN FOR NUCLEAR WEAPONS 
                   AND DELIVERY SYSTEMS.

       (a) Plan Required.--The Secretary of Defense and the 
     Secretary of Energy shall jointly prepare a plan for the 
     United States strategic force structure for nuclear weapons 
     and nuclear weapons delivery systems for the period of fiscal 
     years from 2003 through 2012. The plan shall--
       (1) define the range of missions assigned to strategic 
     nuclear forces in the national defense strategy consistent 
     with--
       (A) the Quadrennial Defense Review dated September 30, 
     2001, under section 118 of title 10, United States Code;
       (B) the Nuclear Posture Review dated December 2001 under 
     section 1041 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-262); and
       (C) other relevant planning documents;
       (2) delineate a baseline strategic force structure for such 
     weapons and systems over such period consistent with such 
     Nuclear Posture Review;
       (3) define sufficient force structure, force modernization 
     and life extension plans, infrastructure, and other elements 
     of the defense program of the United States associated with 
     such weapons and systems that would be required to execute 
     successfully the full range of missions defined under 
     paragraph (1);
       (4) identify the budget plan that would be required to 
     provide sufficient resources to execute successfully the full 
     range of missions using such force structure called for in 
     that national defense strategy; and
       (5)(A) evaluate options for achieving, prior to fiscal year 
     2012, a posture under which the United States maintains a 
     number of operationally deployed nuclear warheads at a level 
     of from 1,700 to 2,200 such warheads, as outlined in the 
     Nuclear Posture Review referred to in paragraph (1)(B); and
       (B) contain an assessment of the advantages and 
     disadvantages of options for achieving such posture as early 
     as 2007, including effects on cost, the dismantlement 
     workforce, and any other affected matter.
       (b) Report.--Not later than March 1, 2003, the Secretary of 
     Defense and the Secretary of Energy shall submit a report on 
     the plan to the congressional defense committees.

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

       (a) Annual Report.--Not later than April 1 of each year, 
     the Secretary of Defense, the Secretary of Energy, and the 
     Director of Central Intelligence shall jointly submit to the 
     congressional defense committees, the Select Committee on 
     Intelligence of the Senate, and the Permanent Select 
     Committee on Intelligence of the House of Representatives a 
     report on the research and development, procurement, and 
     other activities undertaken during the preceding fiscal year 
     by the Department of Defense, the Department of Energy, and 
     the intelligence community to develop weapons 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 activities referred to in that 
     subsection that were undertaken during that fiscal year, 
     including a discussion of the relevance of such activities to 
     applicable recommendations by the Chairman of the Joint 
     Chiefs of Staff, assisted under section 181(b) of title 10, 
     United States Code, by the Joint Requirements Oversight 
     Council; and
       (2) set forth separately a description of the activities 
     referred to in that subsection, if any, that were undertaken 
     during such fiscal year by each element of--
       (A) the Department of Defense;
       (B) the Department of Energy; and
       (C) the intelligence community.
       (c) Definition.--In this section, the term ``intelligence 
     community'' has the meaning given such term in section 3(4) 
     of the National Security Act of 1947 (50 U.S.C. 401a(4)).
       (d) Termination.--No report is required under this section 
     after the submission of the report that is due on April 1, 
     2007.

     SEC. 1033. REPORT ON EFFECTS OF NUCLEAR EARTH-PENETRATOR 
                   WEAPON AND OTHER WEAPONS.

       (a) National Academy of Sciences Study.--The Secretary of 
     Defense shall request the National Academy of Sciences to 
     conduct a study and prepare a report on the following:
       (1) The anticipated short-term effects and long-term 
     effects of the use by the United States of a nuclear earth-
     penetrator weapon on the target area, including the effects 
     on civilian populations in proximity to the target area at 
     the time of or after such use and the effects on United 
     States military personnel who after such use carry out 
     operations or battle damage assessments in the target area.
       (2) The anticipated short-term and long-term effects on 
     civilian population in proximity to a target area--
       (A) if a non-penetrating nuclear weapon is used to attack a 
     hard or deeply-buried target; and
       (B) if a conventional high-explosive weapon is used to 
     attack an adversary's facilities for storage or production of 
     weapons of mass destruction and, as a result of such attack, 
     radioactive, nuclear, biological, or chemical weapons 
     materials, agents, or other contaminants are released or 
     spread into populated areas.
       (b) Report.--Not later than 180 days after the date of the 
     enactment of this Act, the Secretary shall submit to Congress 
     the report under subsection (a), together with any comments 
     the Secretary may consider appropriate on the report. The 
     report shall be submitted in unclassified form to the maximum 
     extent possible, with a classified annex if needed.
                          Subtitle D--Reports

     SEC. 1041. REPEAL AND MODIFICATION OF VARIOUS REPORTING 
                   REQUIREMENTS APPLICABLE TO THE DEPARTMENT OF 
                   DEFENSE.

       (a) Provisions of Title 10, United States Code.--Title 10, 
     United States Code, is amended as follows:
       (1)(A) Section 183 is repealed.

[[Page H8148]]

       (B) The table of sections at the beginning of chapter 7 is 
     amended by striking the item relating to section 183.
       (2)(A) Section 230 is repealed.
       (B) The table of sections at the beginning of chapter 9 is 
     amended by striking the items relating to section 230.
       (3) Section 526 is amended by striking subsection (c).
       (4) Section 721(d) is amended--
       (A) by striking paragraph (2); and
       (B) by striking ``(1)'' before ``If an officer''.
       (5) Section 1095(g) is amended--
       (A) by striking paragraph (2); and
       (B) by striking ``(1)'' after ``(g)''.
       (6) Section 1798 is amended by striking subsection (d).
       (7) Section 1799 is amended by striking subsection (d).
       (8) 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''.
       (9) Section 2350a(g) is amended by striking paragraph (4).
       (10) Section 2350f is amended by striking subsection (c).
       (11) Section 2350k is amended by striking subsection (d).
       (12) 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''.
       (13) Section 2391 is amended by striking subsection (c).
       (14) 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.''.
       (15) 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.''.
       (16) Section 2537(a) is amended by striking ``$100,000'' 
     and inserting ``$10,000,000''.
       (17) Section 2611 is amended by striking subsection (e).
       (18) Section 2667(d) is amended by striking paragraph (3).
       (19) Section 4416 is amended by striking subsection (f).
       (20) 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. 1042. REQUIREMENT THAT DEPARTMENT OF DEFENSE REPORTS TO 
                   CONGRESS BE ACCOMPANIED BY ELECTRONIC VERSION.

       Section 480(a) of title 10, United States Code, is amended 
     by striking ``shall, upon request'' and all that follows 
     through ``(or each'' and inserting ``shall provide to 
     Congress (or''.

     SEC. 1043. ANNUAL REPORT ON THE CONDUCT OF MILITARY 
                   OPERATIONS CONDUCTED AS PART OF OPERATION 
                   ENDURING FREEDOM.

       (a) Reports Required.--(1) The Secretary of Defense shall 
     submit to the congressional committees specified in 
     subsection (d) an annual report on the conduct of military 
     operations conducted as part of Operation Enduring Freedom. 
     The first report, which shall include a definition of the 
     military operations carried out as part of Operation Enduring 
     Freedom, shall be submitted not later than June 15, 2003. 
     Subsequent reports shall be submitted not later than June 15 
     each year, and the final report shall be submitted not later 
     than 180 days after the date (as determined by the Secretary 
     of Defense) of the cessation of hostilities undertaken as 
     part of Operation Enduring Freedom.
       (2) Each report under this section shall be prepared in 
     consultation with the Chairman of the Joint Chiefs of Staff, 
     the commander of the United States Central Command, the 
     Director of Central Intelligence, and such other officials as 
     the Secretary considers appropriate.
       (3) Each such report shall be submitted in both a 
     classified form and an unclassified form, as necessary.
       (b) Special Matters To Be Included.--Each report under this 
     section shall include the following:
       (1) A discussion of the command, control, coordination, and 
     support relationship between United States special operations 
     forces and Central Intelligence Agency elements participating 
     in Operation Enduring Freedom and any lessons learned from 
     the joint conduct of operations by those forces and elements.
       (2) Recommendations to improve operational readiness and 
     effectiveness of these forces and elements.
       (c) Other Matters To Be Included.--Each report under this 
     section shall include a discussion, with a particular 
     emphasis on accomplishments and shortcomings, of the 
     following matters with respect to Operation Enduring Freedom:
       (1) The political and military objectives of the United 
     States.
       (2) The military strategy of the United States to achieve 
     those political and military objectives.
       (3) The concept of operations, including any new 
     operational concepts, for the operation.
       (4) The benefits and disadvantages of operating with local 
     opposition forces.
       (5) The benefits and disadvantages of operating in a 
     coalition with the military forces of allied and friendly 
     nations.
       (6) The cooperation of nations in the region for 
     overflight, basing, command and control, and logistic and 
     other support.
       (7) The conduct of relief operations both during and after 
     the period of hostilities.
       (8) The conduct of close air support (CAS), particularly 
     with respect to the timeliness, efficiency, and effectiveness 
     of such support.
       (9) The use of unmanned aerial vehicles for intelligence, 
     surveillance, reconnaissance, and combat support to 
     operational forces.
       (10) The use and performance of United States and coalition 
     military equipment, weapon systems, and munitions.
       (11) The effectiveness of reserve component forces, 
     including their use and performance in the theater of 
     operations.
       (12) The importance and effectiveness of the International 
     Security Assistance Force.
       (13) The importance and effectiveness of United States 
     civil affairs forces.
       (14) The anticipated duration of the United States military 
     presence in Afghanistan.
       (15) The most critical lessons learned that could lead to 
     long-term doctrinal, organizational, and technological 
     changes.
       (d) Congressional Committees.--The committees referred to 
     in subsection (a)(1) are the following:
       (1) The Committee on Armed Services and the Select 
     Committee on Intelligence of the Senate.
       (2) The Committee on Armed Services and the Permanent 
     Select Committee on Intelligence of the House of 
     Representatives.

     SEC. 1044. REPORT ON EFFORTS TO ENSURE ADEQUACY OF FIRE 
                   FIGHTING STAFFS AT MILITARY INSTALLATIONS.

       Not later than May 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. 1045. 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.
             Subtitle E--Extension of Expiring Authorities

     SEC. 1051. EXTENSION OF AUTHORITY FOR SECRETARY OF DEFENSE TO 
                   SELL AIRCRAFT AND AIRCRAFT PARTS FOR USE IN 
                   RESPONDING TO OIL SPILLS.

       (a) Four-Year Extension.--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--
       (1) in subsection (a)(1), by striking ``, during the period 
     beginning on the date of the enactment of this Act and ending 
     September 30, 2002,''; and
       (2) by adding at the end the following new subsection:
       ``(i) Expiration of Authority.--The authority to sell 
     aircraft and aircraft parts under this section expires on 
     September 30, 2006.''.
       (b) Additional Report.--Subsection (f) of such section is 
     amended by striking ``March 31, 2002'' and inserting ``March 
     31, 2006''.

     SEC. 1052. SIX-MONTH EXTENSION OF EXPIRING GOVERNMENTWIDE 
                   INFORMATION SECURITY REQUIREMENTS; CONTINUED 
                   APPLICABILITY OF EXPIRING GOVERNMENTWIDE 
                   INFORMATION SECURITY REQUIREMENTS TO THE 
                   DEPARTMENT OF DEFENSE.

       (a) Six-Month Extension of Expiring Governmentwide 
     Requirements.--Section 3536 of title 44, United States Code, 
     is amended to read as follows:

     ``Sec. 3536. Expiration

       ``This subchapter shall not be in effect after May 31, 
     2003.''.
       (b) Continued Applicability of Expiring Governmentwide 
     Requirements to Department of Defense.--(1) 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 through 
     September 30, 2004, 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.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by inserting after the

[[Page H8149]]

     item relating to section 2224 the following new item:

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

     SEC. 1053. 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'' and inserting ``December 
     31, 2004''.
                       Subtitle F--Other Matters

     SEC. 1061. TIME FOR TRANSMITTAL OF ANNUAL DEFENSE 
                   AUTHORIZATION LEGISLATIVE PROPOSAL.

       (a) In General.--Chapter 2 of title 10, United States Code, 
     is amended by inserting after section 113 the following new 
     section:

     ``Sec. 113a. Transmission of annual defense authorization 
       request

       ``(a) Time for Transmittal.--The Secretary of Defense shall 
     transmit to Congress the annual defense authorization request 
     for a fiscal year during the first 30 days after the date on 
     which the President transmits to Congress the budget for that 
     fiscal year pursuant to section 1105 of title 31.
       ``(b) Defense Authorization Request Defined.--In this 
     section, the term `defense authorization request', with 
     respect to a fiscal year, means a legislative proposal 
     submitted to Congress for the enactment of the following:
       ``(1) Authorizations of appropriations for that fiscal 
     year, as required by section 114 of this title.
       ``(2) Personnel strengths for that fiscal year, as required 
     by section 115 of this title.
       ``(3) Any other matter that is proposed by the Secretary of 
     Defense to be enacted as part of the annual defense 
     authorization bill for that fiscal year.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of such chapter is amended by inserting after the 
     item relating to section 113 the following new item:

``113a. Transmission of annual defense authorization request.''.

     SEC. 1062. TECHNICAL AND CLERICAL AMENDMENTS.

       (a) Title 10, United States Code.--Title 10, United States 
     Code, is amended as follows:
       (1) Section 153 is amended--
       (A) by inserting ``(a) Planning; Advice; Policy 
     Formulation.--'' at the beginning of the text; and
       (B) by redesignating subsections (c) and (d) as subsections 
     (b) and (c), respectively.
       (2) Section 624(d)(1) is amended by striking ``subsection 
     (d)(2)'' in the second sentence and inserting ``paragraph 
     (2)''.
       (3) Section 661(b)(2) is amended by striking ``the date of 
     the enactment of the National Defense Authorization Act for 
     Fiscal Year 2002'' and inserting ``December 28, 2001,''.
       (4) Section 662(a)(2) is amended--
       (A) in subparagraph (A), by striking ``during the three-
     year period beginning on the date of the enactment of the 
     National Defense Authorization Act for Fiscal Year 2002,'' 
     and inserting ``during the period beginning on December 28, 
     2001, and ending on December 27, 2004,''; and
       (B) in subparagraph (B), by striking ``after the end of the 
     period specified in subparagraph (A)'' and inserting ``after 
     December 27, 2004''.
       (5) Section 663(e)(2) is amended by striking ``Armed Forces 
     Staff College'' and inserting ``Joint Forces Staff College''.
       (6) Section 1451(c)(3) is amended by striking ``section'' 
     before ``clause''.
       (7) Section 2162(b)(2) is amended by striking ``the date of 
     the enactment of this paragraph'' and inserting ``December 
     28, 2001,''.
       (8) Section 2330(c) is amended by inserting a comma after 
     ``a task order''.
       (9) Section 2399(a)(2) is amended--
       (A) in the matter preceding subparagraph (A), by striking 
     ``means--'' and inserting ``means a conventional weapons 
     system that--''; and
       (B) in subparagraph (A), by striking ``a conventional 
     weapons system that''.
       (10)(A) Section 2410h is transferred to the end of 
     subchapter IV of chapter 87 and redesignated as section 1747.
       (B) The item relating to that section in the table of 
     sections at the beginning of chapter 141 is transferred to 
     the end of the table of sections at the beginning of 
     subchapter IV of chapter 87 and amended to reflect the 
     redesignation made by subparagraph (A).
       (11) Section 2676(a) is amended by inserting an open 
     parenthesis before ``41 U.S.C.''.
       (12) Section 2677 is amended by striking subsection (c).
       (13) Section 2680(e) is amended by striking ``the'' after 
     ``the Committee on'' the first place it appears.
       (14) Section 2815(b) is amended by striking ``for fiscal 
     year 2003 and each fiscal year thereafter'' and inserting 
     ``for any fiscal year''.
       (15) Section 2828(b)(2) is amended by inserting ``time'' 
     after ``from time to''.
       (16) Sections 3755, 6257, and 8755, as added by section 
     8143(c) of Public Law 107-248 (116 Stat. 1570), are amended 
     by striking ``the date of the enactment of this section'' and 
     inserting ``October 23, 2002''.
       (b) Title 14, United States Code.--Title 14, United States 
     Code, is amended as follows:
       (1) Section 505, as added by section 8143(c)(4) of Public 
     Law 107-248 (116 Stat. 1571), is amended by striking ``the 
     date of the enactment of this section'' and inserting 
     ``October 23, 2002''.
       (2) Section 516(c) is amended by striking ``his section'' 
     and inserting ``this section''.
       (c) Title 37, United States Code.--Title 37, United States 
     Code, is amended as follows:
       (1) Section 302j(a) is amended by striking ``subsection 
     (c)'' and inserting ``subsection (d)''.
       (2) Section 324(b) is amended by striking ``(1)'' before 
     ``The Secretary''.
       (d) Public Law 107-248.--Section 8118(a) of Public Law 107-
     248 (116 Stat. 1565) is amended by striking ``subsection 
     (i)'' and inserting ``subsection (j)''.
       (e) Public Law 107-217.--Effective as if included therein 
     as originally enacted, section 3(b) of Public Law 107-217 is 
     amended--
       (1) in paragraph (8) (116 Stat. 1295), by inserting ``the 
     second place it appears'' before the semicolon; and
       (2) in paragraph (34) (116 Stat. 1298), by striking 
     ``section 7545(a)'' and inserting ``section 7545(c)''.
       (f) Public Law 107-107.--Effective as of December 28, 2001, 
     and as if included therein as enacted, the National Defense 
     Authorization Act for Fiscal Year 2002 (Public Law 107-107) 
     is amended as follows:
       (1) Section 602(a)(2) (115 Stat. 1132) is amended by 
     striking ``an'' in the first quoted matter.
       (2) Section 1212(a)(5) (115 Stat. 1249) is amended by 
     inserting ``in'' after the paragraph designation.
       (3) Section 1410(a)(3)(C) (115 Stat. 1266) by inserting 
     ``both places it appears'' before ``and inserting''.
       (4) Section 3007(d)(1)(C) (115 Stat. 1352) is amended by 
     striking ``2905(b)(7)(B)(iv)'' and inserting 
     ``2905(b)(7)(C)(iv)''.
       (g) Public Law 106-398.--Effective as of October 30, 2000, 
     and as if included therein as enacted, the Floyd D. Spence 
     National Defense Authorization Act for Fiscal Year 2001 (as 
     enacted into law by Public Law 106-398) is amended as 
     follows:
       (1) Section 577(b)(2) (114 Stat. 1654A-140) is amended by 
     striking ``Federal'' in the quoted matter and inserting 
     ``Department of Defense''.
       (2) Section 612(c)(4)(B) (114 Stat. 1654A-150) is amended 
     by striking the comma at the end of the first quoted matter.
       (h) Public Law 106-246.--Section 136 of Public Law 106-246 
     (114 Stat. 520) is amended--
       (1) in subsection (d)(7), by striking subparagraphs (B) and 
     (C) and inserting the following new subparagraphs:
       ``(B) Section 1302 of title 40, United States Code.
       ``(C) Subtitle I of title 40, United States Code.''; and
       (2) in subsection (e)(3), by striking subparagraph (B) and 
     inserting the following new subparagraph:
       ``(B) Subtitle I of title 40, United States Code.''.
       (i) Public Law 106-181.--Section 740(a)(1) of the Wendell 
     H. Ford Aviation Investment and Reform Act for the 21st 
     Century (10 U.S.C. 2576 note) is amended by striking 
     ``section 202 of the Federal Property and Administrative 
     Services Act of 1949 (40 U.S.C. 483)'' and inserting 
     ``subchapter II of chapter 5 of title 40, United States 
     Code,''.
       (j) Public Law 106-65.--The National Defense Authorization 
     Act for Fiscal Year 2000 (Public Law 106-65) is amended as 
     follows:
       (1) Section 573(b) (10 U.S.C. 513 note) is amended by 
     inserting a period at the end of paragraph (2).
       (2) Section 1305(6) (22 U.S.C. 5952 note) is amended by 
     striking the first period after ``facility''.
       (k) Public Law 104-307.--Section 2(a)(1) of the Wildfire 
     Suppression Aircraft Transfer Act of 1996 (10 U.S.C. 2576 
     note) is amended by striking ``section 202 of the Federal 
     Property and Administrative Services Act of 1949 (40 U.S.C. 
     483)'' and inserting ``subchapter II of chapter 5 of title 
     40, United States Code,''.
       (l) Public Law 103-337.--Section 2814 of the National 
     Defense Authorization Act for Fiscal Year 1995 (Public Law 
     103-337) is amended by striking ``the Public Buildings Act of 
     1959 (40 U.S.C. 601 et seq.) and the Federal Property and 
     Administrative Services Act of 1949 (40 U.S.C. 471 et seq.)'' 
     and inserting ``chapter 5 or 33 of title 40, United States 
     Code''.
       (m) Public Law 101-510.--The National Defense Authorization 
     Act for Fiscal Year 1991 (Public Law 101-510) is amended as 
     follows:
       (1) Section 2905(b)(1) (10 U.S.C. 2687 note) is amended--
       (A) in subparagraph (A), by striking ``section 202 of the 
     Federal Property and Administrative Services Act of 1949 (40 
     U.S.C. 483)'' and inserting ``subchapter II of chapter 5 of 
     title 40, United States Code''; and
       (B) in subparagraph (B), by striking ``section 203 of that 
     Act (40 U.S.C. 484)'' and inserting ``subchapter III of 
     chapter 5 of title 40, United States Code''.
       (2) Section 2905(b)(4)(F) is amended by striking ``sections 
     202 and 203 of the Federal Property and Administrative 
     Services Act of 1949 (40 U.S.C. 483, 484)'' and inserting 
     ``subchapters II and III of chapter 5 of title 40, United 
     States Code,''.
       (3) Section 2905(b)(7) is amended by striking ``section 
     203(k) of the Federal Property and Administrative Services 
     Act of 1949 (40 U.S.C. 484(k))'' in subparagraphs (K)(v), 
     (L)(iv)(V), and (P) and inserting ``section 550 of title 40, 
     United States Code,''.
       (4) Section 2926(d)(2) is amended by striking ``title IX of 
     the Federal Property and Administrative Services Act (Public 
     Law 92-582; 40 U.S.C. 541 et seq., as amended)'' and 
     inserting ``chapter 11 of title 40, United States Code''.
       (n) Public Law 100-526.--The Defense Authorization 
     Amendments and Base Closure and Realignment Act (Public Law 
     100-526) is amended as follows:
       (1) Section 204(b)(1) (10 U.S.C. 2687 note) is amended--
       (A) in subparagraph (A), by striking ``section 202 of the 
     Federal Property and Administrative Services Act of 1949 (40 
     U.S.C. 483)'' and inserting ``subchapter II of chapter 5 of 
     title 40, United States Code''; and

[[Page H8150]]

       (B) in subparagraph (B), by striking ``section 203 of that 
     Act (40 U.S.C. 484)'' and inserting ``subchapter III of 
     chapter 5 of title 40, United States Code''.
       (2) Section 204(b)(4)(F) is amended by striking ``sections 
     202 and 203 of the Federal Property and Administrative 
     Services Act of 1949 (40 U.S.C. 483, 484)'' and inserting 
     ``subchapters II and III of chapter 5 of title 40, United 
     States Code,''.
       (o) Other Laws.--(1) Section 502(a) of the National 
     Emergencies Act (50 U.S.C. 1651(a)) is amended by striking 
     paragraph (2) and redesignating paragraphs (3) through (7) as 
     paragraphs (1) through (5), respectively.
       (2) Section 10(b)(8) of the Military Selective Service Act 
     (50 U.S.C. App. 460(b)(8)) is amended by striking ``Public 
     Law 26'' and all that follows through the period at the end 
     of the paragraph and inserting ``the Act of March 31, 1947 
     (50 U.S.C. App. 321 et seq.).''.
       (3) The Defense Production Act of 1950 is amended in both 
     section 305(i) and section 306(j) (50 U.S.C. App. 2095(i), 
     2096(j))--
       (A) in the first sentence, by striking ``the Act entitled'' 
     and all that follows through the period at the end of the 
     sentence and inserting ``subchapter IV of chapter 31 of title 
     40, United States Code.''; and
       (B) in the last sentence, by striking ``and section 276(c) 
     of title 40''.

     SEC. 1063. USE FOR LAW ENFORCEMENT PURPOSES OF DNA SAMPLES 
                   MAINTAINED BY DEPARTMENT OF DEFENSE FOR 
                   IDENTIFICATION OF HUMAN REMAINS.

       (a) In General.--Chapter 80 of title 10, United States 
     Code, is amended by inserting after section 1565 the 
     following new section:

     ``Sec. 1565a. DNA samples maintained for identification of 
       human remains: use for law enforcement purposes

       ``(a) Compliance with Court Order.--(1) Subject to 
     paragraph (2), if a valid order of a Federal court (or 
     military judge) so requires, an element of the Department of 
     Defense that maintains a repository of DNA samples for the 
     purpose of identification of human remains shall make 
     available, for the purpose specified in subsection (b), such 
     DNA samples on such terms and conditions as such court (or 
     military judge) directs.
       ``(2) A DNA sample with respect to an individual shall be 
     provided under paragraph (1) in a manner that does not 
     compromise the ability of the Department of Defense to 
     maintain a sample with respect to that individual for the 
     purpose of identification of human remains.
       ``(b) Covered Purpose.--The purpose referred to in 
     subsection (a) is the purpose of an investigation or 
     prosecution of a felony, or any sexual offense, for which no 
     other source of DNA information is reasonably available.
       ``(c) Definition.--In this section, the term `DNA sample' 
     has the meaning given such term in section 1565(c) of this 
     title.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of such chapter is amended by inserting after the 
     item relating to section 1565 the following new item:

``1565a. DNA samples maintained for identification of human remains: 
              use for law enforcement purposes.''.

     SEC. 1064. ENHANCED AUTHORITY TO OBTAIN FOREIGN LANGUAGE 
                   SERVICES DURING PERIODS OF EMERGENCY.

       (a) National Foreign Language Skills Registry.--(1) Chapter 
     81 of title 10, United States Code, is amended by inserting 
     after section 1596a the following new section:

     ``Sec. 1596b. Foreign language proficiency: National Foreign 
       Language Skills Registry

       ``(a) Establishment.--(1) The Secretary of Defense may 
     establish and maintain a registry of persons who--
       ``(A) have proficiency in one or more critical foreign 
     languages;
       ``(B) are willing to provide linguistic services to the 
     United States in the interests of national security during 
     war or a national emergency; and
       ``(C) meet the eligibility requirements of subsection (b).
       ``(2) The registry shall be known as the `National Foreign 
     Language Skills Registry' (in this section referred to as the 
     `Registry').
       ``(b) Eligible Persons.--To be eligible for listing on the 
     Registry, a person--
       ``(1) must be--
       ``(A) a national of the United States (as defined in 
     section 101(a)(22) of the Immigration and Nationality Act (8 
     U.S.C. 1101(a)(22))); or
       ``(B) an alien lawfully admitted for permanent residence 
     (as defined in section 101(a)(20) of the Immigration and 
     Nationality Act (8 U.S.C. 1101(a)(20)));
       ``(2) shall express willingness, in a form and manner 
     prescribed by the Secretary--
       ``(A) to provide linguistic services for a foreign language 
     as described in subsection (a); and
       ``(B) to be listed on the Registry; and
       ``(3) shall meet such language proficiency and other 
     selection criteria as may be prescribed by the Secretary.
       ``(c) Registered Information.--The Registry shall consist 
     of the following:
       ``(1) The names of eligible persons selected by the 
     Secretary for listing on the Registry.
       ``(2) Such other information on such persons as the 
     Secretary determines pertinent to the use of such persons to 
     provide linguistic services as described in subsection (a).
       ``(d) Protection of Privacy.--The Secretary may withhold 
     from public disclosure the information maintained in the 
     Registry in accordance with section 552a of title 5.
       ``(e) Designation of Critical Foreign Languages.--The 
     Secretary shall designate those languages that are critical 
     foreign languages for the purposes of this section. The 
     Secretary shall make such a designation for any foreign 
     language for which there is a shortage of experts in 
     translation or interpretation available to meet requirements 
     of the Secretary or of the head of any other department or 
     agency of the United States for translation or interpretation 
     in the national security interests of the United States.
       ``(f) Linguistic Services Defined.--In this section, the 
     term `linguistic services' means translation or 
     interpretation of communication in a foreign language.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by inserting after section 1596a the following new 
     item:

``1596b. Foreign language proficiency: National Foreign Language Skills 
              Registry.''.

       (b) Authority To Accept Voluntary Translation and 
     Interpretation Services.--Section 1588(a) of title 10, United 
     States Code, is amended by adding after paragraph (6), as 
     added by section 553, the following new paragraph:
       ``(7) Voluntary translation or interpretation services 
     offered with respect to a foreign language by a person (A) 
     who is registered for such foreign language on the National 
     Foreign Language Skills Registry under section 1596b of this 
     title, or (B) who otherwise is approved to provide voluntary 
     translation or interpretation services for national security 
     purposes, as determined by the Secretary of Defense.''.

     SEC. 1065. 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. Assistance in combating terrorism: rewards

       ``(a) Authority.--The Secretary of Defense may pay a 
     monetary amount, or provide a payment-in-kind, to a person as 
     a reward for providing United States Government personnel 
     with information or nonlethal assistance that is beneficial 
     to--
       ``(1) an operation or activity of the armed forces 
     conducted outside the United States against international 
     terrorism; or
       ``(2) force protection of the armed forces.
       ``(b) Limitation.--The amount or value of a reward provided 
     under this section may not exceed $200,000.
       ``(c) Delegation of Authority.--(1) The authority of the 
     Secretary of Defense under subsection (a) may be delegated 
     only--
       ``(A) to the Deputy Secretary of Defense and an Under 
     Secretary of Defense, without further redelegation; and
       ``(B) to the commander of a combatant command, but only for 
     a reward in an amount or with a value not in excess of 
     $50,000.
       ``(2) A commander of a combatant command to whom authority 
     to provide rewards under this section is delegated under 
     paragraph (1) may further delegate that authority, but only 
     for a reward in an amount or with a value not in excess of 
     $2,500, except that such a delegation may be made to the 
     commander's deputy commander without vegard to such 
     limitation.
       ``(d) Coordination.--(1) The Secretary of Defense shall 
     prescribe policies and procedures for the offering and making 
     of rewards under this section and otherwise for administering 
     the authority under this section. Such polices and procedures 
     shall be prescribed in consultation with the Secretary of 
     State and the Attorney General and shall ensure that the 
     making 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 consult with the 
     Secretary of State regarding the making of any reward under 
     this section in an amount or with a value in excess of 
     $100,000.
       ``(e) Persons Not Eligible.--The following persons are not 
     eligible to receive a reward under this section:
       ``(1) A citizen of the United States.
       ``(2) An officer or employee of the United States.
       ``(3) An employee of a contractor of the United States.
       ``(f) Annual Report.--(1) Not later than December 1 of each 
     year, 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 rewards 
     program under this section during the preceding fiscal year.
       ``(2) Each report for a fiscal year under this subsection 
     shall include the following:
       ``(A) Information on the total amount expended during that 
     fiscal year to carry out the rewards program under this 
     section during that fiscal year.
       ``(B) Specification of the amount, if any, expended during 
     that fiscal year to publicize the availability of rewards 
     under this section.
       ``(C) With respect to each reward provided during that 
     fiscal year--
       ``(i) the amount or value of the reward and whether the 
     reward was provided as a monetary payment or in some other 
     form;
       ``(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 and benefit 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.
       ``(g) Determinations by the Secretary.--A determination by 
     the Secretary under this section is final and conclusive and 
     is not 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. Assistance in combating terrorism: rewards.''.

     SEC. 1066. PROVISION OF SPACE AND SERVICES TO MILITARY 
                   WELFARE SOCIETIES.

       (a) Authority To Provide Space and Services.--Chapter 152 
     of title 10, United States

[[Page H8151]]

     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. 1067. PREVENTION AND MITIGATION OF CORROSION OF MILITARY 
                   EQUIPMENT AND INFRASTRUCTURE.

       (a) In General.--(1) Chapter 131 of title 10, United States 
     Code, is amended by adding at the end the following new 
     section:

     ``Sec. 2228. Military equipment and infrastructure: 
       prevention and mitigation of corrosion

       ``(a) Designation of Responsible Official or 
     Organization.--The Secretary of Defense shall designate an 
     officer or employee of the Department of Defense, or a 
     standing board or committee of the Department of Defense, as 
     the senior official or organization responsible in the 
     Department to the Secretary of Defense (after 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.
       ``(b) Duties.--(1) The official or organization designated 
     under subsection (a) shall oversee and coordinate efforts 
     throughout the Department of Defense to prevent and mitigate 
     corrosion of the military equipment and infrastructure of the 
     Department. The duties under this paragraph shall include the 
     duties specified in paragraphs (2) through (5).
       ``(2) The designated official or organization shall develop 
     and recommend any policy guidance on the prevention and 
     mitigation of corrosion to be issued by the Secretary of 
     Defense.
       ``(3) The designated official or organization shall review 
     the programs and funding levels proposed by the Secretary of 
     each military department during the annual internal 
     Department of Defense budget review process as those programs 
     and funding proposals relate to programs and funding for the 
     prevention and mitigation of corrosion and shall submit to 
     the Secretary of Defense recommendations regarding those 
     programs and proposed funding levels.
       ``(4) The designated official or organization shall provide 
     oversight 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.
       ``(5) The designated official or organization shall monitor 
     acquisition practices within the Department of Defense--
       ``(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 
     for each acquisition program, such technologies and 
     treatments are incorporated into that program, particularly 
     during the engineering and design phases of the acquisition 
     process.
       ``(c) Long-Term Strategy.--(1) The Secretary of Defense 
     shall develop and implement 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 under paragraph (1) shall include the 
     following:
       ``(A) Expansion of the emphasis on corrosion prevention and 
     mitigation within the Department of Defense to include 
     coverage of infrastructure.
       ``(B) Application uniformly throughout the Department of 
     Defense of requirements and criteria for the testing and 
     certification of new corrosion-prevention technologies for 
     equipment and infrastructure with similar characteristics, 
     similar missions, or similar operating environments.
       ``(C) Implementation of 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.
       ``(D) Establishment of 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 include, for the matters specified 
     in paragraph (2), the following:
       ``(A) Policy guidance.
       ``(B) Performance measures and milestones.
       ``(C) An assessment of the necessary personnel and funding 
     necessary to accomplish the long-term strategy.
       ``(d) Definitions.--In this section:
       ``(1) The term `corrosion' means the deterioration of a 
     material or its properties due to a reaction of that material 
     with its chemical environment.
       ``(2) The term `military equipment' includes all 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.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by adding at the end the following new item:

``2228. Military equipment and infrastructure: prevention and 
              mitigation of corrosion.''.

       (b) Deadline for Designation of Responsible Official or 
     Organization.--The Secretary of Defense shall designate an 
     officer, employee, or standing board or committee of the 
     Department of Defense under subsection (a) of section 2228 of 
     title 10, United States Code, as added by subsection (a), not 
     later than 90 days after the date of the enactment of this 
     Act.
       (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 
     to that date under section 2228 of title 10, United States 
     Code, as added by subsection (a). That report shall include 
     the following:
       (1) A description of the organizational structure for the 
     personnel carrying out the responsibilities of the official 
     or organization designated under subsection (a) of that 
     section with respect to the prevention and mitigation of 
     corrosion.
       (2) An outline for the long-term strategy for prevention 
     and mitigation of corrosion required by subsection (c) of 
     that section and milestones for development of that strategy.
       (d) Deadline for Long-Term Strategy.--The Secretary of 
     Defense shall submit to Congress a report setting forth the 
     long-term strategy required under subsection (c) of section 
     2228 of title 10, United States Code, as added by subsection 
     (a), not later than one year after the date of the enactment 
     of this Act.
       (e) GAO Review.--The Comptroller General shall monitor the 
     implementation of the long-term strategy required under 
     subsection (c) of section 2228 of title 10, United States 
     Code, as added by subsection (a), and, not later than 18 
     months after the date of the enactment of this Act, shall 
     submit to Congress an assessment of the extent to which that 
     strategy has been implemented.

     SEC. 1068. 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 its current unflyable, ``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) the following conditions:
       (1) The W.A.S.P. Museum may not convey any ownership 
     interest in, or transfer possession of, the aircraft to any 
     other party without the prior approval of the Secretary.
       (2) 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. 1069. INCREASE IN AMOUNT AUTHORIZED TO BE EXPENDED FOR 
                   DEPARTMENT OF DEFENSE PROGRAM TO COMMEMORATE 
                   50TH ANNIVERSARY OF THE KOREAN WAR.

       Section 1083(f)(2) of the National Defense Authorization 
     Act for Fiscal Year 1998 (10 U.S.C. 113 note) is amended by 
     striking ``$7,000,000'' and inserting ``$10,000,000''.
           TITLE XI--DEPARTMENT OF DEFENSE CIVILIAN PERSONNEL
Sec. 1101. Eligibility of Department of Defense nonappropriated fund 
              employees for long-term care insurance.

[[Page H8152]]

Sec. 1102. Extension of Department of Defense authority to make lump-
              sum severance payments.
Sec. 1103. Continuation of Federal Employee Health Benefits Program 
              eligibility.
Sec. 1104. Certification for Department of Defense professional 
              accounting positions.

     SEC. 1101. ELIGIBILITY OF DEPARTMENT OF DEFENSE 
                   NONAPPROPRIATED FUND EMPLOYEES FOR LONG-TERM 
                   CARE INSURANCE.

       (a) In General.--Section 9001(1) of title 5, United States 
     Code, is amended--
       (1) in subparagraph (B), by striking ``and'';
       (2) in subparagraph (C), by striking the comma at the end 
     and inserting ``; and''; and
       (3) by inserting after subparagraph (C) the following new 
     subparagraph:
       ``(D) an employee of a nonappropriated fund instrumentality 
     of the Department of Defense described in section 2105(c),''.
       (b) Discretionary Authority.--Section 9002 of such title is 
     amended--
       (1) by redesignating subsections (b), (c), (d), and (e) as 
     subsections (c), (d), (e), and (f), respectively; and
       (2) by inserting after subsection (a) the following new 
     subsection (b):
       ``(b) Discretionary Authority Regarding Nonappropriated 
     Fund Instrumentalities.--The Secretary of Defense may 
     determine that a nonappropriated fund instrumentality of the 
     Department of Defense is covered under this chapter or is 
     covered under an alternative long-term care insurance 
     program.''.

     SEC. 1102. EXTENSION OF DEPARTMENT OF DEFENSE AUTHORITY TO 
                   MAKE LUMP-SUM SEVERANCE PAYMENTS.

       (a) In General.--Section 5595(i)(4) of title 5, United 
     States Code, is amended by striking ``2003'' and inserting 
     ``2006''.
       (b) Report.--Not later than one year after the date of the 
     enactment of this Act, the President shall submit to the 
     Committees on Armed Services and on Governmental Affairs of 
     the Senate and the Committees on Armed Services and on 
     Government Reform of the House of Representatives a report, 
     including recommendations, on whether the authority under 
     section 5595(i) of title 5, United States Code, should be 
     made permanent or expanded to be made Governmentwide.

     SEC. 1103. CONTINUATION OF FEDERAL EMPLOYEE HEALTH BENEFITS 
                   PROGRAM ELIGIBILITY.

       Paragraph (4)(B) of section 8905a(d) of title 5, United 
     States Code, is amended--
       (1) in clause (i), by striking ``2003'' and inserting 
     ``2006''; and
       (2) in clause (ii)--
       (A) by striking ``2004'' and inserting ``2007''; and
       (B) by striking ``2003'' and inserting ``2006''.

     SEC. 1104. CERTIFICATION FOR DEPARTMENT OF DEFENSE 
                   PROFESSIONAL ACCOUNTING POSITIONS.

       (a) In General.--(1) Chapter 81 of title 10, United States 
     Code, is amended by adding at the end the following new 
     section:

     ``Sec. 1599d. Professional accounting positions: authority to 
       prescribe certification and credential standards

       ``(a) Authority To Prescribe Professional Certification 
     Standards.--The Secretary of Defense may prescribe 
     professional certification and credential standards for 
     professional accounting positions within the Department of 
     Defense. Any such standard shall be prescribed as a 
     Department of Defense regulation.
       ``(b) Waiver Authority.--The Secretary may waive any 
     standard prescribed under subsection (a) whenever the 
     Secretary determines such a waiver to be appropriate.
       ``(c) Applicability.--A standard prescribed under 
     subsection (a) shall not apply to any person employed by the 
     Department of Defense before the standard is prescribed.
       ``(d) Report.--The Secretary of Defense shall submit to 
     Congress a report on the Secretary's plans to provide 
     training to appropriate Department of Defense personnel to 
     meet any new professional and credential standards prescribed 
     under subsection (a). Such report shall be prepared in 
     conjunction with the Director of the Office of Personnel 
     Management. Such a report shall be submitted not later than 
     one year after the effective date of any regulations, or any 
     revision to regulations, prescribed pursuant to subsection 
     (a).
       ``(e) Definition.--In this section, the term `professional 
     accounting position' means a position or group of positions 
     in the GS-510, GS-511, and GS-505 series that involves 
     professional accounting work.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by adding at the end the following new item:

``1599d. Professional accounting positions: authority to prescribe 
              certification and credential standards.''.

       (b) Effective Date.--Standards established pursuant to 
     section 1599d of title 10, United States Code, as added by 
     subsection (a), may take effect no sooner than 120 days after 
     the date of the enactment of this Act.
              TITLE XII--MATTERS RELATING TO OTHER NATIONS
Sec. 1201. Authority to provide administrative services and support for 
              coalition liaison officers.
Sec. 1202. Authority to pay for certain travel of defense personnel of 
              countries participating in NATO Partnership for Peace 
              program.
Sec. 1203. Limitation on funding for Joint Data Exchange Center in 
              Moscow.
Sec. 1204. Support of United Nations-sponsored efforts to inspect and 
              monitor Iraqi weapons activities.
Sec. 1205. Comprehensive annual report to Congress on coordination and 
              integration of all United States nonproliferation 
              activities.
Sec. 1206. Report requirement regarding Russian proliferation to Iran 
              and other countries of proliferation concern.
Sec. 1207. Monitoring of implementation of 1979 agreement between the 
              United States and China on cooperation in science and 
              technology.
Sec. 1208. Extension of certain counterproliferation activities and 
              programs.
Sec. 1209. Semiannual report by Director of Central Intelligence on 
              contributions by foreign persons to efforts by countries 
              of proliferation concern to obtain weapons of mass 
              destruction and their delivery systems.
Sec. 1210. Report on feasibility and advisability of senior officer 
              exchanges between the Armed Forces of the United States 
              and the military forces of Taiwan.
Sec. 1211. Report on United States force structure in the Pacific. 

     SEC. 1201. AUTHORITY TO PROVIDE ADMINISTRATIVE SERVICES AND 
                   SUPPORT FOR COALITION LIAISON OFFICERS.

       (a) Authority.--(1) Chapter 53 of title 10, United States 
     Code, is amended by inserting after section 1051 the 
     following new section:

     ``Sec. 1051a. Coalition liaison officers: administrative 
       services and support; travel, subsistence, and other 
       personal expenses

       ``(a) Authority.--The Secretary of Defense may provide 
     administrative services and support for the performance of 
     duties by a liaison officer of another nation involved in a 
     coalition with the United States 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 and Subsistence Expenses.--(1) The Secretary 
     may pay the expenses specified in paragraph (2) of a liaison 
     officer of a developing country in connection with the 
     assignment of that 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.
       ``(2) Expenses of a liaison officer that may be paid under 
     paragraph (1) in connection with an assignment described in 
     that paragraph are the following:
       ``(A) Travel and subsistence expenses.
       ``(B) Personal expenses directly necessary to carry out the 
     duties of that officer in connection with that assignment.
       ``(c) Reimbursement.--To the extent that the Secretary 
     determines appropriate, the Secretary may provide the 
     services and support authorized by subsection (a) and the 
     expenses authorized by subsection (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.
       ``(e) Expiration of Authority.--The authority under this 
     section shall expire on September 30, 2005.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by inserting after the item relating to section 
     1051 the following new item:

``1051a. Coalition liaison officers: administrative services and 
              support; travel, subsistence, and other personal 
              expenses.''.

       (b) GAO Report.--Not later than March 1, 2005, the 
     Comptroller General shall submit to the Committees on Armed 
     Services of the Senate and House of Representatives a report 
     providing an assessment of the implementation of section 
     1051a of title 10, United States Code, as added by subsection 
     (a). The assessment shall include the following:
       (1) A description of the benefits to coalition operations 
     of the authority provided by that section.
       (2) A statement of the cost to the Department of Defense of 
     the use of the authority provided by that section.
       (3) A summary of activities carried out under the authority 
     provided by that section, including (A) the number of liaison 
     officers for whom administrative services and support or 
     expenses were provided under that authority and their 
     countries of origin, and (B) the type of services, support, 
     and expenses provided.

     SEC. 1202. AUTHORITY TO PAY FOR CERTAIN TRAVEL OF DEFENSE 
                   PERSONNEL OF COUNTRIES PARTICIPATING IN NATO 
                   PARTNERSHIP FOR PEACE PROGRAM.

       (a) Authority for Use of Funds.--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 developing 
     country that is not a member of the North Atlantic Treaty 
     Organization and that is

[[Page H8153]]

     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 the territory of any NATO member country.''.
       (b) Effective Date.--The amendments made by subsection (a) 
     shall apply only with respect to travel performed on or after 
     the date of the enactment of this Act.

     SEC. 1203. LIMITATION ON FUNDING FOR JOINT DATA EXCHANGE 
                   CENTER IN MOSCOW.

       (a) Limitation.--Not more than 50 percent of the funds made 
     available to the Department of Defense for fiscal year 2003 
     for activities associated with the Joint Data Exchange Center 
     in Moscow, Russia, may be obligated or expended for any such 
     activity until--
       (1) the United States and the Russian Federation enter into 
     a cost-sharing agreement as described in subsection (d) of 
     section 1231 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-329);
       (2) the United States and the Russian Federation enter into 
     an agreement or agreements exempting the United States and 
     any United States person from Russian taxes, and from 
     liability under Russian laws, with respect to activities 
     associated with the Joint Data Exchange Center;
       (3) the Secretary of Defense submits to the Committee on 
     Armed Services of the Senate and the Committee on Armed 
     Services of the House of Representatives a copy of each 
     agreement referred to in paragraphs (1) and (2); and
       (4) a period of 30 days has expired after the date of the 
     final submission under paragraph (3).
       (b) Joint Data Exchange Center.--For purposes of this 
     section, the term ``Joint Data Exchange Center'' means the 
     United States-Russian Federation joint center for the 
     exchange of data to provide early warning of launches of 
     ballistic missiles and for notification of such launches that 
     is provided for in a joint United States-Russian Federation 
     memorandum of agreement signed in Moscow in June 2000.

     SEC. 1204. 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. 1205. 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. 1206. REPORT REQUIREMENT REGARDING RUSSIAN PROLIFERATION 
                   TO IRAN AND OTHER COUNTRIES OF PROLIFERATION 
                   CONCERN.

       (a) Report Requirement.--Not later than March 15 of 2003 
     through 2009, the President shall submit to Congress a report 
     (in unclassified and classified form as necessary) describing 
     in detail Russian proliferation of weapons of mass 
     destruction and ballistic missile goods, technology, 
     expertise, and information, and of dual-use items that may 
     contribute to the development of weapons of mass destruction 
     and ballistic missiles, to Iran and to other countries of 
     proliferation concern during the year preceding the year in 
     which the report is submitted. The report shall include a 
     detailed description of the following, for the year covered 
     by the report:
       (1) The number, type, and quality of direct and dual-use 
     weapons of mass destruction and ballistic missile goods, 
     technology, expertise, and information transferred.
       (2) The form, location, and manner in which such transfers 
     took place.
       (3) The contribution that such transfers could make to the 
     recipient countries' weapons of mass destruction and 
     ballistic missile programs, and an estimate of how soon such 
     countries will test, possess, and deploy weapons of mass 
     destruction and ballistic missiles.
       (4) The impact and consequences that such transfers have, 
     and could have over the next 10 years--
       (A) on United States national security;
       (B) on United States military forces deployed in the region 
     to which such transfers are being made;
       (C) on United States allies, friends, and interests in that 
     region; and
       (D) on the military capabilities of the country receiving 
     such transfers from Russia.
       (5) The policy and strategy that the President intends to 
     employ to halt Russian proliferation, the policy tools that 
     the President intends to use to carry out that policy and 
     strategy, the rationale for employing such tools, and the 
     timeline by which the President expects to see material 
     progress in ending Russian proliferation of direct and dual-
     use weapons of mass destruction and missile goods, 
     technology, expertise, and information.
       (b) Definition.--In this section, 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 weapons, chemical weapons, and biological 
     weapons) or advanced conventional munitions--
       (1) in the most recent 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
       (2) in 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.

     SEC. 1207. MONITORING OF IMPLEMENTATION OF 1979 AGREEMENT 
                   BETWEEN THE UNITED STATES AND CHINA ON 
                   COOPERATION IN SCIENCE AND TECHNOLOGY.

       (a) In General.--The Secretary of State shall--
       (1) monitor the implementation of the Agreement specified 
     in subsection (c);
       (2) keep a systematic account of the protocols to the 
     Agreement;
       (3) coordinate the activities of all agencies of the United 
     States Government that carry out cooperative activities under 
     the Agreement; and
       (4) ensure that all activities conducted under the 
     Agreement comply with applicable laws and regulations 
     concerning the transfer of militarily sensitive technologies 
     and dual-use technologies.
       (b) Responsibilities of the Office of Science and 
     Technology Cooperation.--Except as otherwise provided by the 
     Secretary of State, the functions of the Secretary under this 
     section shall be carried out through the Director of the 
     Office of Science and Technology Cooperation of the 
     Department of State.
       (c) Agreement Defined.--For purposes of this section, the 
     term ``Agreement'' means the agreement between the United 
     States and the People's Republic of China known as the 
     ``Agreement between the Government of the United States of 
     America and the Government of the People's Republic of China 
     on Cooperation in Science and Technology'', signed in 
     Washington on January 31, 1979, and its protocols.
       (d) Biennial Report to Congress.--(1) Not later than April 
     1 of each even-numbered year, the Secretary of State shall 
     submit to Congress a report on the implementation of the 
     Agreement and on activities under the Agreement. Each such 
     report shall be submitted in both classified and unclassified 
     form, as necessary.
       (2) Each report under this subsection shall provide an 
     evaluation of the benefits of the Agreement to the economy, 
     to the military, and to the industrial base of the People's 
     Republic of China and shall include the following:
       (A) An accounting of all activities conducted under the 
     Agreement since the previous report (or, in the case of the 
     first report, since the Agreement was entered into) and a 
     projection of activities to be undertaken under the Agreement 
     during the next two years.
       (B) An estimate of the costs to the United States to 
     administer the Agreement during the period covered by the 
     report.
       (C) An assessment of how the Agreement has influenced the 
     foreign and domestic policies of the People's Republic of 
     China and the policy of the People's Republic of China toward 
     scientific and technological cooperation with the United 
     States.
       (D) An analysis by the Director of Central Intelligence of 
     the involvement of military specialists, weapons specialists, 
     and intelligence specialists of the People's Republic of 
     China in the activities of the Joint Commission established 
     under the Agreement and in other activities conducted under 
     the Agreement.
       (E) A determination by the Secretary of Defense, developed 
     with the assistance of the Director of Central Intelligence, 
     of the extent to which the activities conducted under the 
     Agreement have enhanced the military and defense industrial 
     base of the People's Republic of China, and an assessment of 
     the effect that projected activities under the Agreement for 
     the next two years, including the transfer of technology and 
     know-how, could have on the economic and military 
     capabilities of the People's Republic of China.
       (F) An assessment by the Inspector General of the 
     Department of Commerce of--
       (i) the extent to which programs or activities carried out 
     under the Agreement provide access to technology, 
     information, or know-how that could enhance military 
     capabilities of the People's Republic of China; and

[[Page H8154]]

       (ii) the extent to which those programs or activities are 
     carried out in compliance with export control laws and 
     regulations of the United States, especially those laws and 
     regulations governing so-called ``deemed exports''.
       (G) Any recommendations of the Secretary of State, 
     Secretary of Defense, or Director of Central Intelligence for 
     improving the monitoring of the activities of the Joint 
     Commission established under the Agreement.
       (3) The Secretary of State shall prepare each report under 
     this subsection in consultation with the Secretary of 
     Defense, the Secretary of Energy, the Director of Central 
     Intelligence, the Director of the Federal Bureau of 
     Investigation, and the Director of the National Science 
     Foundation.
       (e) Interagency Working Group.--The President shall 
     establish an interagency working group to oversee the 
     implementation of the Agreement by departments and agencies 
     of the United States. The working group shall consist of 
     representatives of such departments, agencies, and offices of 
     the executive branch as the President considers appropriate. 
     The working group shall perform the following functions:
       (1) Assisting the Secretary of State and other appropriate 
     officials in setting standards under the Agreement for 
     science and technology transfers between the United States 
     and the People's Republic of China.
       (2) Monitoring ongoing programs and activities under the 
     Agreement and recommending future programs and activities 
     under the Agreement.
       (3) Developing a comprehensive database of all government-
     to-government programs and United States Government-funded 
     programs under the Agreement.
       (4) Coordinating activities under the Agreement between 
     United States Government agencies, including elements of the 
     intelligence community, as appropriate.

     SEC. 1208. EXTENSION OF CERTAIN COUNTERPROLIFERATION 
                   ACTIVITIES AND PROGRAMS.

       (a) Extension of Interagency Counterproliferation Program 
     Review Committee.--Section 1605(f) of the National Defense 
     Authorization Act for Fiscal Year 1994 (22 U.S.C. 2751 note) 
     is amended by striking ``September 30, 2004'' and inserting 
     ``September 30, 2008''.
       (b) Later Deadline for Submission of Annual Report.--
     Subsection (a) of section 1503 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''.
       (c) Additional Matters To Be Included in Annual Report.--
     Subsection (b) of such section is amended by adding at the 
     end the following new paragraph:
       ``(8) A discussion of the limitations and impediments to 
     the biological weapons counterproliferation efforts of the 
     Department of Defense (including legal, policy, and resource 
     constraints) and recommendations for the removal or 
     mitigation of such impediments and for ways to make such 
     efforts more effective.''.
       (d) Technical Amendment To Reflect Change in Position 
     Title.--Section 1605(a)(4) of the National Defense 
     Authorization Act for Fiscal Year 1994 (22 U.S.C. 2751 note) 
     is amended by striking ``Under Secretary of Defense for 
     Acquisition and Technology'' in the first sentence and 
     inserting ``Under Secretary of Defense for Acquisition, 
     Technology, and Logisitics''.

     SEC. 1209. SEMIANNUAL REPORT BY DIRECTOR OF CENTRAL 
                   INTELLIGENCE ON CONTRIBUTIONS BY FOREIGN 
                   PERSONS TO EFFORTS BY COUNTRIES OF 
                   PROLIFERATION CONCERN TO OBTAIN WEAPONS OF MASS 
                   DESTRUCTION AND THEIR DELIVERY SYSTEMS.

       (a) Content of Semiannual Report.--The Combatting 
     Proliferation of Weapons of Mass Destruction Act of 1996 
     (title VII of Public Law 104-293) is amended by inserting 
     after section 721 (50 U.S.C. 2366) the following new section:

     ``SEC. 722. SEMIANNUAL REPORT ON CONTRIBUTIONS OF FOREIGN 
                   PERSONS TO WEAPONS OF MASS DESTRUCTION AND 
                   DELIVERY SYSTEMS EFFORTS OF COUNTRIES OF 
                   PROLIFERATION CONCERN.

       ``(a) Reports.--The Director of Central Intelligence shall 
     submit to Congress a semiannual report identifying each 
     foreign person that, during the period covered by the report, 
     made a material contribution to the research, development, 
     production, or acquisition by a country of proliferation 
     concern of--
       ``(1) weapons of mass destruction (including nuclear 
     weapons, chemical weapons, or biological weapons); or
       ``(2) ballistic or cruise missile systems.
       ``(b) Period of Semiannual Reports.--Semiannual reports 
     under subsection (a) shall be submitted as follows:
       ``(1) One semiannual report shall cover the first six 
     months of the calendar year and shall be submitted not later 
     than January 1 of the following year.
       ``(2) The other semiannual report shall cover the second 
     six months of the calendar year and shall be submitted not 
     later than July 1 of the following year.
       ``(c) Form of Reports.--(1) A report under subsection (a) 
     may be submitted in classified form, in whole or in part, if 
     the Director of Central Intelligence 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.
       ``(d) Definitions.--In this section:
       ``(1) The term `foreign person' means any of the following:
       ``(A) A natural person who is not a citizen of the United 
     States.
       ``(B) A corporation, business association, partnership, 
     society, trust, or 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 government or foreign governmental entity 
     operating as a business enterprise or in any other capacity.
       ``(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 weapons, 
     chemical weapons, and biological weapons) or advanced 
     conventional munitions--
       ``(A) in the most recent report under section 721; or
       ``(B) in 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.''.
       (b) Effective Date.--Section 722 of the Combatting 
     Proliferation of Weapons of Mass Destruction Act of 1996, as 
     added by subsection (a), shall take effect with the report 
     with respect to the first six months of 2003 required to be 
     submitted under that section not later than January 1, 2004.

     SEC. 1210. REPORT ON FEASIBILITY AND ADVISABILITY OF SENIOR 
                   OFFICER EXCHANGES BETWEEN THE ARMED FORCES OF 
                   THE UNITED STATES AND THE MILITARY FORCES OF 
                   TAIWAN.

       (a) Presidential Report.--Not later than 180 days after the 
     date of the enactment of this Act, the President shall submit 
     to Congress a report on--
       (1) the feasibility and advisability of conducting combined 
     operational training with, and exchanges of general and flag 
     officers between, the Armed Forces of the United States and 
     the military forces of Taiwan; and
       (2) the progress being made in meeting United States 
     commitments to the security of Taiwan.
       (b) Classification of Report.--The report required by this 
     section shall be submitted in unclassified form and, as 
     necessary, in classified form.

     SEC. 1211. REPORT ON UNITED STATES FORCE STRUCTURE IN THE 
                   PACIFIC.

       (a) Secretary of Defense Report.--Not later than 180 days 
     after the date of the enactment of this Act, the Secretary of 
     Defense shall submit to Congress a report on the plans of the 
     Department of Defense to maintain adequate United States 
     force structure in the Pacific, including any efforts (1) to 
     augment current basing arrangements, and (2) to implement the 
     recommendations from the most recent Quadrennial Defense 
     Review to improve United States military capabilities in the 
     Pacific.
       (b) Classification of Report.--The report required by this 
     section shall be submitted in unclassified form and, as 
     necessary, in classified form.
  TITLE XIII--COOPERATIVE THREAT REDUCTION WITH STATES OF THE FORMER 
                              SOVIET UNION
Sec. 1301. Specification of Cooperative Threat Reduction programs and 
              funds.
Sec. 1302. Funding allocations.
Sec. 1303. Prohibition against use of funds until submission of 
              reports.
Sec. 1304. Report on use of revenue generated by activities carried out 
              under Cooperative Threat Reduction programs.
Sec. 1305. Prohibition against use of funds for second wing of fissile 
              material storage facility.
Sec. 1306. Limited waiver of restrictions on use of funds for threat 
              reduction in states of the former Soviet Union.

     SEC. 1301. 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. 1302. 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(23) for Cooperative 
     Threat Reduction programs, 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 nuclear weapons transportation security in Russia, 
     $19,700,000.
       (4) For nuclear weapons storage security in Russia, 
     $40,000,000.
       (5) For activities designated as Other Assessments/
     Administrative Support, $14,700,000.
       (6) For defense and military contacts, $18,900,000.
       (7) For weapons of mass destruction infrastructure 
     elimination activities in Kazakhstan, $9,000,000.

[[Page H8155]]

       (8) For weapons of mass destruction infrastructure 
     elimination activities in Ukraine, $8,800,000.
       (9) For chemical weapons destruction in Russia, 
     $50,000,000.
       (10) For biological weapons proliferation prevention in the 
     former Soviet Union, $55,000,000.
       (11) For weapons of mass destruction proliferation 
     prevention in the States of the former Soviet Union, 
     $40,000,000.
       (b) Additional Funds Authorized for Certain Purposes.--Of 
     the funds authorized to be appropriated to the Department of 
     Defense for fiscal year 2003 in section 301(23) for 
     Cooperative Threat Reduction programs, $83,600,000 may be 
     obligated for any of the purposes specified in paragraphs (1) 
     through (4) and (9) of subsection (a) in addition to the 
     amounts specifically authorized in such paragraphs.
       (c) 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.
       (d) Limited Authority To Vary Individual Amounts.--(1) 
     Subject to paragraphs (2) and (3), 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 specific 
     amount authorized for that 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.
       (3) The Secretary may not, under the authority provided in 
     paragraph (1), obligate amounts for a purpose stated in any 
     of paragraphs (5) through (10) of subsection (a) in excess of 
     125 percent of the specific amount authorized for such 
     purpose.
       (4) In this section, the term ``specific amount 
     authorized'' means, with respect to a purpose listed in any 
     paragraph in subsection (a)--
       (A) the amount specifically authorized for that purpose in 
     subsection (a), plus
       (B) in the case of a purpose listed in paragraph (1), (2), 
     (3), (4), or (9) of subsection (a), any amount obligated 
     under subsection (b) for that purpose.

     SEC. 1303. PROHIBITION AGAINST USE OF FUNDS UNTIL SUBMISSION 
                   OF REPORTS.

       Not more than 50 percent of fiscal year 2003 Cooperative 
     Threat Reduction funds may be obligated or expended until 30 
     days after the date of the submission of--
       (1) the report required to be submitted in fiscal year 2002 
     under section 1308(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-341); and
       (2) the update for the multiyear plan required to be 
     submitted for fiscal year 2001 under section 1205 of the 
     National Defense Authorization Act for Fiscal Year 1995 
     (Public Law 103-337; 22 U.S.C. 5952 note).

     SEC. 1304. REPORT ON USE OF REVENUE GENERATED BY ACTIVITIES 
                   CARRIED OUT UNDER COOPERATIVE THREAT REDUCTION 
                   PROGRAMS.

       (a) Additional Report Requirements.--Section 1308(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-341) is amended by inserting at the end the 
     following new paragraphs:
       ``(6) To the maximum extent practicable, a description of 
     how revenue generated by activities carried out under 
     Cooperative Threat Reduction programs in recipient States is 
     being utilized, monitored, and accounted for.
       ``(7) A description of the defense and military activities 
     carried out under Cooperative Threat Reduction programs 
     during the fiscal year ending in the year preceding the year 
     of the report, including--
       ``(A) the amounts obligated or expended for such 
     activities;
       ``(B) the purposes, goals, and objectives for which such 
     amounts were obligated and expended;
       ``(C) a description of the activities carried out, 
     including the forms of assistance provided, and the 
     justification for each form of assistance provided;
       ``(D) the success of each activity, including the goals and 
     objectives achieved for each;
       ``(E) a description of participation by private sector 
     entities in the United States in carrying out such 
     activities, and the participation of any other Federal 
     department or agency in such activities; and
       ``(F) any other information that the Secretary considers 
     relevant to provide a complete description of the operation 
     and success of activities carried out under Cooperative 
     Threat Reduction programs.''.
       (b) Effective Date.--Paragraphs (6) and (7) of section 
     1308(c) of such Act, as added by subsection (a), shall apply 
     beginning with the report submitted under that section in 
     2004.

     SEC. 1305. PROHIBITION AGAINST USE OF FUNDS FOR SECOND WING 
                   OF FISSILE MATERIAL STORAGE FACILITY.

       No funds authorized to be appropriated for Cooperative 
     Threat Reduction programs for any fiscal year may be used for 
     the design, planning, or construction of a second wing for a 
     storage facility for Russian fissile material.

     SEC. 1306. LIMITED WAIVER OF RESTRICTIONS ON USE OF FUNDS FOR 
                   THREAT REDUCTION IN STATES OF THE FORMER SOVIET 
                   UNION.

       (a) Authority To Waive Restrictions and Eligibility 
     Requirements.--If the President submits the certification and 
     report described in subsection (b) with respect to an 
     independent state of the former Soviet Union for a fiscal 
     year--
       (1) the restrictions in subsection (d) of section 1203 of 
     the Cooperative Threat Reduction Act of 1993 (22 U.S.C. 5952) 
     shall cease to apply, and funds may be obligated and expended 
     under that section for assistance, to that state during that 
     fiscal year; and
       (2) funds may be obligated and expended during that fiscal 
     year under section 502 of the FREEDOM Support Act (22 U.S.C. 
     5852) for assistance or other programs and activities for 
     that state even if that state has not met one or more of the 
     requirements for eligibility under paragraphs (1) through (4) 
     of that section.
       (b) Certification and Report.--(1) The certification and 
     report referred to in subsection (a) are a written 
     certification submitted by the President to Congress that the 
     waiver of the restrictions and requirements described in 
     paragraphs (1) and (2) of that subsection during such 
     fiscal 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 the provisions of law 
     specified in paragraphs (1) and (2) of subsection (a) in such 
     fiscal year.
       (B) An explanation of why the waiver is important to the 
     national security interests of the United States.
       (C) A description of the strategy, plan, or policy of the 
     President for promoting the commitment of the state to, and 
     compliance by the state with, 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.
       (c) Fiscal Years Covered.--The authority under subsection 
     (a) shall apply only with respect to fiscal years 2003, 2004, 
     and 2005.
       (d) Expiration of Authority.--The authority under 
     subsection (a) shall expire on September 30, 2005.
       (e) Administration of Restrictions on Assistance.--
     Subsection (d) of 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--
       (1) by striking ``any year'' and inserting ``any fiscal 
     year''; and
       (2) by striking ``that year'' and inserting ``such fiscal 
     year''.
                      TITLE XIV--HOMELAND SECURITY
Sec. 1401. Transfer of technology items and equipment in support of 
              homeland security.
Sec. 1402. Comprehensive plan for improving the preparedness of 
              military installations for terrorist incidents.
Sec. 1403. Additional Weapons of Mass Destruction Civil Support Teams.
Sec. 1404. Report on the role of the Department of Defense in 
              supporting homeland security.
Sec. 1405. Sense of Congress on Department of Defense assistance to 
              local first responders.

     SEC. 1401. TRANSFER OF TECHNOLOGY ITEMS AND EQUIPMENT IN 
                   SUPPORT OF HOMELAND SECURITY.

       (a) Responsible Senior Official.--The Secretary of Defense 
     shall designate a senior official of the Department of 
     Defense to coordinate all Department of Defense efforts to 
     identify, evaluate, deploy, and transfer to Federal, State, 
     and local first responders technology items and equipment in 
     support of homeland security.
       (b) Duties.--The official designated pursuant to subsection 
     (a) shall--
       (1) identify technology items and equipment developed or 
     being developed by Department of Defense components that have 
     the potential to enhance public safety and improve homeland 
     security;
       (2) cooperate with appropriate Federal Government officials 
     outside the Department of Defense to evaluate whether such 
     technology items and equipment would be useful to first 
     responders;
       (3) facilitate the timely transfer, through identification 
     of appropriate private sector manufacturers, of appropriate 
     technology items and equipment to Federal, State, and local 
     first responders, in coordination with appropriate Federal 
     Government officials outside the Department of Defense;
       (4) identify and eliminate redundant and unnecessary 
     research efforts within the Department of Defense with 
     respect to technologies to be deployed to first responders;
       (5) expedite the advancement of high priority Department of 
     Defense projects from research through implementation of 
     initial manufacturing; and
       (6) participate in outreach programs established by 
     appropriate Federal Government officials outside the 
     Department of Defense to communicate with first responders 
     and to facilitate awareness of available technology items and 
     equipment to support responses to crises.
       (c) Support Agreement.--The official designated pursuant to 
     subsection (a) shall enter

[[Page H8156]]

     into an appropriate agreement with a nongovernment entity for 
     such entity to assist the official designated under 
     subsection (a) in carrying out that official's duties under 
     this section. Any such agreement shall be entered into using 
     competitive procedures in compliance with applicable 
     requirements of law and regulation.
       (d) Report.--Not later than 180 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 
     actions taken to carry out this section. The report shall 
     include the following:
       (1) Identification of the senior official designated 
     pursuant to subsection (a).
       (2) A summary of the actions taken or planned to be taken 
     to implement subsection (b), including a schedule for planned 
     actions.
       (3) An initial list of technology items and equipment 
     identified pursuant to subsection (b)(1), together with a 
     summary of any program schedule for the development, 
     deployment, or transfer of such items and equipment.
       (4) A description of any agreement entered into pursuant to 
     subsection (c).

     SEC. 1402. COMPREHENSIVE PLAN FOR IMPROVING THE PREPAREDNESS 
                   OF MILITARY INSTALLATIONS FOR TERRORIST 
                   INCIDENTS.

       (a) Comprehensive Plan.--The Secretary of Defense shall 
     develop a comprehensive plan for improving the preparedness 
     of military installations for preventing and responding to 
     terrorist attacks, including attacks involving the use or 
     threat of use of weapons of mass destruction.
       (b) Preparedness Strategy.--The plan under subsection (a) 
     shall include a preparedness strategy that includes each of 
     the following:
       (1) Identification of long-term goals and objectives for 
     improving the preparedness of military installations for 
     preventing and responding to terrorist attacks.
       (2) Identification of budget and other resource 
     requirements necessary to achieve those goals and objectives.
       (3) Identification of factors beyond the control of the 
     Secretary that could impede the achievement of those goals 
     and objectives.
       (4) A discussion of the extent to which local, regional, or 
     national military response capabilities are to be developed, 
     integrated, and used.
       (5) A discussion of how the Secretary will coordinate the 
     capabilities referred to in paragraph (4) with local, 
     regional, or national civilian and other military 
     capabilities.
       (c) Performance Plan.--The plan under subsection (a) shall 
     include a performance plan that includes each of the 
     following:
       (1) A reasonable schedule, with milestones, for achieving 
     the goals and objectives of the strategy under subsection 
     (b).
       (2) Performance criteria for measuring progress in 
     achieving those goals and objectives.
       (3) A description of the process, together with a 
     discussion of the resources, necessary to achieve those goals 
     and objectives.
       (4) A description of the process for evaluating results in 
     achieving those goals and objectives.
       (d) Submittal to Congress.--The Secretary shall submit the 
     comprehensive plan developed under subsection (a) to the 
     Committee on Armed Services of the Senate and the Committee 
     on Armed Services of the House of Representatives not later 
     than 180 days after the date of the enactment of this Act.
       (e) Comptroller General Review and Report.--Not later than 
     60 days after the date on which the Secretary submits the 
     comprehensive plan under subsection (a), the Comptroller 
     General shall review the plan and submit to the committees 
     referred to in subsection (d) the Comptroller General's 
     assessment of the plan.
       (f) Annual Report.--(1) In each of 2004, 2005, and 2006, 
     the Secretary of Defense shall include a report on the 
     comprehensive plan developed under subsection (a) with the 
     materials that the Secretary submits to Congress in support 
     of the budget submitted by the President that year pursuant 
     to section 1105(a) of title 31, United States Code.
       (2) Each such report shall include--
       (A) a discussion of any revision that the Secretary has 
     made in the comprehensive plan developed under subsection (a) 
     since the last report under this subsection or, in the case 
     of the first such report, since the plan was submitted under 
     subsection (d); and
       (B) an assessment of the progress made in achieving the 
     goals and objectives of the strategy set forth in the plan.
       (3) If the Secretary includes in the report for 2004 or 
     2005 under this subsection a declaration that the goals and 
     objectives of the preparedness strategy set forth in the 
     comprehensive plan have been achieved, no further report is 
     required under this subsection.

     SEC. 1403. ADDITIONAL WEAPONS OF MASS DESTRUCTION CIVIL 
                   SUPPORT TEAMS.

       (a) Establishment of Additional Teams.--The Secretary of 
     Defense shall--
       (1) establish 23 additional teams designated as Weapons of 
     Mass Destruction Civil Support Teams, for a total of 55 such 
     teams; and
       (2) ensure that of such 55 teams, there is at least one 
     team established in each State and territory.
       (b) Plan.--Not later than 180 days after the date of the 
     enactment of this Act, the Secretary shall submit to 
     Congress a plan, in furtherance of subsection (a), for 
     establishing at least one Weapons of Mass Destruction 
     Civil Support Team in each State and territory that does 
     not have such a team as of the date of the enactment of 
     this Act. The plan shall include the following:
       (1) A schedule and budget for manning, training, and 
     equipping the new teams as rapidly as is possible without 
     jeopardizing the attainment of full effectiveness by the new 
     teams.
       (2) A discussion of whether the mission of the Weapons of 
     Mass Destruction Civil Support Teams should be expanded and, 
     if so, how.
       (c) Definitions.--For purposes of this section:
       (1) The term ``Weapons of Mass Destruction Civil Support 
     Team'' means a team of members of the reserve components of 
     the Armed Forces that is established under section 12310(c) 
     of title 10, United States Code, in support of emergency 
     preparedness programs to prepare for or to respond to any 
     emergency involving the use of a weapon of mass destruction.
       (2) The term ``State and territory'' means each of the 
     several States, the District of Columbia, Puerto Rico, Guam, 
     and the Virgin Islands.

     SEC. 1404. REPORT ON THE ROLE OF THE DEPARTMENT OF DEFENSE IN 
                   SUPPORTING HOMELAND SECURITY.

       (a) Report Required.--Not later than March 1, 2003, the 
     Secretary of Defense shall submit to the congressional 
     defense committees a report on Department of Defense 
     responsibilities, mission, and plans for military support of 
     homeland security.
       (b) Contents of Report.--The report shall include, at a 
     minimum, a discussion of the following:
       (1) The Department of Defense definition of its homeland 
     security mission, particularly with respect to how it relates 
     to providing military support to civil authorities, managing 
     the consequences of terrorist attacks, and homeland defense, 
     and the actions the Department is taking to implement the 
     homeland security mission as so defined.
       (2) Changes in the roles, missions, responsibilities, 
     organization, and capabilities of the following organizations 
     in order to conduct their homeland security support mission, 
     and the reasons for such changes:
       (A) The Office of the Secretary of Defense.
       (B) The Army, Navy, Air Force, and Marine Corps.
       (C) The Army National Guard and the Air National Guard.
       (D) The combatant commands of the Department of Defense.
       (3) The relationship between the Department of Defense, 
     including its combatant commands, and the following with 
     regard to homeland security:
       (A) Other departments and agencies of the Federal 
     Government.
       (B) State and local governments.
       (C) The National Guard and Reserve components.
       (4) The current capability of the Department of Defense to 
     respond to terrorist attacks employing chemical, biological, 
     radiological, nuclear, high explosive or cyberterrorism 
     weapons against personnel and critical infrastructure of the 
     Department, including identification of the goals of the 
     Department for being fully capable of responding to such 
     attacks, current deficiencies in that capability, the 
     resources required to achieve that capability, and a long-
     term plan to reach that capability.
       (5) The roles, missions, and responsibilities of the 
     intelligence components of the Department of Defense in 
     support of its homeland security mission, including the 
     policies and plans for--
       (A) collecting and analyzing information related to 
     homeland security;
       (B) sharing that information with other agencies of the 
     Federal Government; and
       (C) preparing threat and risk assessments and issuing 
     warnings.
       (6) A discussion of plans of the Department of Defense for 
     training, exercising, and preparing to perform its homeland 
     security mission, including--
       (A) individual and collective training for civilian and 
     military personnel of the Department involved in homeland 
     security;
       (B) integrated training with other agencies of the Federal 
     Government, and with State and local governments, as 
     appropriate;
       (C) interagency exercises and simulations; and
       (D) the development of a permanent ``terrorist opposing 
     force'' capable of challenging the Department's plans, 
     policies, and capabilities during training events and 
     exercises.
       (7) A discussion of how the Department of Defense 
     biological defense research program supports its homeland 
     security mission.
       (8) A discussion of the efforts by the Department of 
     Defense to develop, either within the Department or through 
     contracts with private entities, anticyberterrorism 
     technology, including an assessment of whether and how such 
     efforts should be increased.
       (9) An assessment of the need for and feasibility of 
     developing and fielding Department of Defense regional 
     chemical-biological incident response teams across the United 
     States, including options for providing the resources and 
     personnel necessary for developing and fielding any such 
     teams.
       (10) A discussion of the Department of Defense plans and 
     efforts to place new emphasis on the unique operational 
     demands associated with homeland security while ensuring that 
     defense of the United States remains the primary mission of 
     the Department of Defense.
       (11) The resource constraints and legal impediments to 
     implementing any of the activities discussed under paragraphs 
     (1) through (10).

     SEC. 1405. SENSE OF CONGRESS ON DEPARTMENT OF DEFENSE 
                   ASSISTANCE TO LOCAL FIRST RESPONDERS.

       It is the sense of Congress that the Secretary of Defense 
     should, to the extent the Secretary considers appropriate and 
     feasible, provide assistance, in accordance with otherwise 
     applicable provisions of law, to entities that are local 
     first responders for domestic terrorist incidents in order to 
     assist those entities in improving their capabilities to 
     respond to such incidents.
   TITLE XV--AUTHORIZATION OF APPROPRIATIONS FOR THE WAR ON TERRORISM
Sec. 1501. Authorization of appropriations for continued operations for 
              the war on terrorism.

[[Page H8157]]

Sec. 1502. Mobilization and personnel.
Sec. 1503. Operations.
Sec. 1504. Equipment replacement and enhancement.
Sec. 1505. Classified activities.
Sec. 1506. Procurement of munitions.
Sec. 1507. Discretionary restoration of authorizations of 
              appropriations reduced for management efficiencies.
Sec. 1508. General provisions applicable to transfers.

     SEC. 1501. AUTHORIZATION OF APPROPRIATIONS FOR CONTINUED 
                   OPERATIONS FOR THE WAR ON TERRORISM.

       In addition to any other amounts authorized to be 
     appropriated by this Act, there is hereby authorized to be 
     appropriated for the Department of Defense for fiscal year 
     2003, subject to subsection (b), $10,000,000,000 only for the 
     conduct of Operation Noble Eagle and Operation Enduring 
     Freedom in continuation of the war on terrorism in accordance 
     with the purposes stated in section 2(a) of the Authorization 
     for Use of Military Force (Public Law 107-40; 50 U.S.C. 1541 
     note).

     SEC. 1502. MOBILIZATION AND PERSONNEL.

       Of the amount authorized to be appropriated in section 
     1501, $2,550,000,000 shall be available only for transfer 
     (subject to sections 1507 and 1508) to fiscal year 2003 
     military personnel accounts of the Department of Defense for 
     the purpose of providing for the personnel and personnel 
     support costs of the members of the Armed Forces who are 
     participating in Operation Noble Eagle or Operation Enduring 
     Freedom in continuation of the war on terrorism in accordance 
     with the purposes referred to in section 1501(a).

     SEC. 1503. OPERATIONS.

       Of the amount authorized to be appropriated in section 
     1501, $4,270,000,000 shall be available only for transfer 
     (subject to sections 1507 and 1508) to fiscal year 2003 
     operation and maintenance accounts and working-capital funds 
     of the Department of Defense for operating costs of the 
     conduct of Operation Noble Eagle and Operation Enduring 
     Freedom in continuation of the war on terrorism in accordance 
     with the purposes referred to in section 1501(a).

     SEC. 1504. EQUIPMENT REPLACEMENT AND ENHANCEMENT.

       Of the amount authorized to be appropriated in section 
     1501, $1,000,000,000 shall be available only for transfer 
     (subject to sections 1507 and 1508) to fiscal year 2003 
     procurement and research, development, test, and evaluation 
     accounts of the Department of Defense for--
       (1) emergency replacement of equipment and munitions lost 
     or expended in operations conducted as part of Operation 
     Noble Eagle or Operation Enduring Freedom in continuation of 
     the war on terrorism in accordance with the purposes referred 
     to in section 1501(a); or
       (2) enhancement of critical military capabilities necessary 
     to carry out operations as part of those Operations in 
     continuation of the war on terrorism in accordance with those 
     purposes.

     SEC. 1505. CLASSIFIED ACTIVITIES.

       Of the amount authorized to be appropriated in section 
     1501, $1,980,000,000 shall be available only for unspecified 
     intelligence and classified activities carried out in support 
     of Operation Noble Eagle or Operation Enduring Freedom in 
     continuation of the war on terrorism in accordance with the 
     purposes referred to in section 1501(a), and only by transfer 
     (subject to sections 1507 and 1508) to fiscal year 2003 
     accounts of the Department of Defense in amounts as follows:
       (1) To procurement accounts, $1,618,200,000.
       (2) To operation and maintenance accounts, $301,600,000.
       (3) To research, development, test, and evaluation 
     accounts, $60,200,000.

     SEC. 1506. PROCUREMENT OF MUNITIONS.

       Of the amount authorized to be appropriated in section 
     1501, $200,000,000 shall be available only for the 
     procurement of munitions for the support of Operation Noble 
     Eagle or Operation Enduring Freedom in continuation of the 
     war on terrorism in accordance with the purposes referred to 
     in section 1501(a), and only by transfer (subject to sections 
     1507 and 1508) to fiscal year 2003 procurement accounts of 
     the Department of Defense in amounts as follows:
       (1) To accounts of the Army for the procurement of 
     ammunition $94,000,000.
       (2) To accounts of the Navy for the procurement of weapons, 
     $35,000,000.
       (3) To accounts of the Navy and Marine Corps for the 
     procurement of ammunition, $25,000,000.
       (4) To accounts of the Air Force for the procurement of 
     ammunition, $40,000,000.
       (5) To Defense-wide procurement accounts for special 
     operations forces, $6,000,000.

     SEC. 1507. DISCRETIONARY RESTORATION OF AUTHORIZATIONS OF 
                   APPROPRIATIONS REDUCED FOR MANAGEMENT 
                   EFFICIENCIES.

       (a) Transfer Authority.--(1) The Secretary of Defense may, 
     subject to section 1508, transfer up to a total of 
     $1,000,000,000 of the amount authorized to be appropriated by 
     section 1501 to Department of Defense accounts under titles 
     I, II, and III that are reduced for savings described in 
     paragraph (2) if and to the extent that the Secretary 
     determines that such savings are not achievable.
       (2) The savings referred to in paragraph (1) are savings 
     that are to be achieved from--
       (A) improved management of Department of Defense contracts 
     for the procurement of services; and
       (B) the deferral of expenditures on financial management 
     systems.
       (b) Relationship to Other Title XV Transfer Authorities.--
     The total amount transferred under sections 1502 through 1506 
     and under section 1507 may not exceed the total amount 
     authorized to be appropriated by section 1501.

     SEC. 1508. GENERAL PROVISIONS APPLICABLE TO TRANSFERS.

       (a) Merger of Transferred Amounts.--Amounts transferred 
     pursuant to this title shall be merged with, and shall be 
     available for the same purposes and the same period as, the 
     account to which transferred.
       (b) Congressional Notice-and-Wait Requirement.--A transfer 
     may not be made under section 1502, 1503, 1504, 1505, 1506, 
     or 1507 until the Secretary of Defense has submitted a notice 
     in writing to the congressional defense committees of the 
     proposed transfer and a period of 15 days has elapsed after 
     the date such notice is received. Any such notice shall 
     include specification of the amount of the proposed transfer, 
     the account to which the transfer is to be made, and the 
     purpose of the transfer.
       (c) Relationship to Other Transfer Authority.--The transfer 
     authorities provided in this title are in addition to any 
     other transfer authority available to the Secretary of 
     Defense under any provision of any other title of this Act or 
     under any other provision of law.
            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.
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 
              2001 project.

     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
------------------------------------------------------------------------
                                    Installation or
             State                      location             Amount
------------------------------------------------------------------------
Alabama........................  Anniston Army Depot..        $1,900,000
                                 Fort Rucker..........       $15,808,000
                                 Redstone Arsenal.....        $1,950,000
Alaska.........................  Fort Greely..........        $2,700,000
                                 Fort Richardson......       $20,011,000
                                 Fort Wainwright......      $139,906,000
Arizona........................  Fort Huachuca........       $10,400,000
                                 Yuma Proving Ground..        $4,500,000
California.....................  Fort Irwin...........        $2,522,000
Colorado.......................  Fort Carson..........        $9,698,000
District of Columbia...........  Walter Reed Army            $13,794,000
                                  Medical Center......
Georgia........................  Fort Benning.........       $86,250,000
                                 Fort Stewart/Hunter         $26,000,000
                                  Army Air Field......
Hawaii.........................  Schofield Barracks...      $191,000,000
Kansas.........................  Fort Leavenworth.....        $7,979,000
                                 Fort Riley...........       $81,095,000
Kentucky.......................  Blue Grass Army Depot        $5,500,000
                                 Fort Campbell........      $106,300,000
                                 Fort Knox............        $5,873,000
Louisiana......................  Fort Polk............       $37,620,000

[[Page H8158]]

 
Maryland.......................  Fort Detrick.........       $22,500,000
Massachusetts..................  Natick Research,             $4,100,000
                                  Development, and
                                  Engineering Center..
Missouri.......................  Fort Leonard Wood....       $24,993,000
New Jersey.....................  Picatinny Arsenal....        $7,500,000
New York.......................  Fort Drum............       $18,300,000
                                 United States                $4,991,000
                                  Military Academy,
                                  West Point..........
North Carolina.................  Fort Bragg...........       $99,632,000
Oklahoma.......................  Fort Sill............       $39,652,000
Pennsylvania...................  Letterkenny Army             $1,550,000
                                  Depot...............
South Carolina.................  Fort Jackson.........        $3,051,000
Texas..........................  Fort Bliss...........        $5,200,000
                                 Fort Hood............       $83,061,000
Virginia.......................  Fort Eustis..........        $4,133,000
                                 Fort Lee.............        $7,103,000
Washington.....................  Fort Lewis...........       $56,195,000
                                 Yakima Training              $3,000,000
                                  Center.
                                                       -----------------
                                   Total..............    $1,155,767,000
------------------------------------------------------------------------

       (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........................  Supreme Headquarters,       $13,600,000
                                  Allied Powers Europe..
Germany........................  Area Support Group,         $17,200,000
                                  Bamberg.
                                 Campbell Barracks......      $8,300,000
                                 Coleman Barracks.......      $1,350,000
                                 Darmstadt..............      $3,500,000
                                 Grafenwoehr............     $69,866,000
                                 Landstuhl..............      $2,400,000
                                 Mannheim...............     $42,000,000
                                 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 Henry.............     $10,200,000
                                 Camp Tango.............     $12,600,000
                                 K16 Airfield...........     $40,000,000
Qatar..........................  Qatar..................      $8,600,000
                                                         ---------------
                                 Total..................    $354,116,000
------------------------------------------------------------------------

       (c) Unspecified Worldwide.--Using 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
Korea...................................  Yongsan....................  10 Units...................    $3,100,000
                                                                                                   -------------
                                            Total:...................                                $26,952,000
----------------------------------------------------------------------------------------------------------------

       (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

[[Page H8159]]

     housing functions of the Department of the Army in the 
     total amount of $3,104,176,000, as follows:
       (1) For military construction projects inside the United 
     States authorized by section 2101(a), $949,567,000.
       (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, $21,550,000.
       (5) For architectural and engineering services and 
     construction design under section 2807 of title 10, United 
     States Code, $160,313,000.
       (6) For military family housing functions:
       (A) For construction and acquisition, planning and design, 
     and improvement of military family housing and facilities, 
     $282,356,000.
       (B) For support of military family housing (including the 
     functions described in section 2833 of title 10, United 
     States Code), $1,117,274,000.
       (7) 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.
       (8) 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 (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), 
     $50,000,000.
       (9) 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 (division B of Public Law 107-107; 115 Stat. 
     1280), $21,000,000.
       (10) 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 (division B of Public Law 107-107; 
     115 Stat. 1280), as amended by section 2105 of this Act, 
     $42,000,000.
       (11) 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 (division B of Public Law 107-107; 
     115 Stat. 1280), as amended by section 2105 of this Act, 
     $39,000,000.
       (12) 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 (division B of Public Law 107-107; 
     115 Stat. 1280), $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) Adjustments.--The total amount authorized to be 
     appropriated pursuant to paragraphs (1) through (12) of 
     subsection (a) is the sum of the amounts authorized to be 
     appropriated in such paragraphs, reduced by the following:
       (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.
       (2) $29,350,000, which represents savings resulting from 
     adjustments in the accounting of civilian personnel benefits.
       (3) $16,740,000, which represents savings resulting from 
     reductions in supervision, inspection, and overhead costs.
       (4) $18,000,000, which represents savings resulting from 
     lower-than-expected inflation.

     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 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''.
                            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 of authority to carry out certain fiscal year 
              2002 projects.

     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.....................  Auxiliary Landing            $6,150,000
                                  Field, San Diego (San
                                  Clemente Island).....
                                 Marine Corps Air-           $39,470,000
                                  Ground Combat Center,
                                  Twentynine Palms.....
                                 Marine Corps Air            $11,930,000
                                  Station, Camp
                                  Pendleton............
                                 Marine Corps Air            $12,210,000
                                  Station, Miramar.....
                                 Marine Corps Base,          $84,040,000
                                  Camp Pendleton.......
                                 Marine Corps Logistics       $4,450,000
                                  Base, Barstow........
                                 Naval Air Station,          $35,855,000
                                  Lemoore.
                                 Naval Air Warfare            $6,760,000
                                  Center, Point Mugu,
                                  San Nicholas Island..
                                 Naval Air Warfare           $10,100,000
                                  Center, China Lake...
                                 Naval Construction          $10,170,000
                                  Training Center, Port
                                  Hueneme..............
                                 Naval Post Graduate          $9,020,000
                                  School, Monterey.....
                                 Naval Station, San          $12,210,000
                                  Diego................
Connecticut....................  Naval Submarine Base,        $7,880,000
                                  New London...........
District of Columbia...........  Marine Corps Barracks.       $3,700,000
                                 Naval District,              $2,690,000
                                  Washington.
Florida........................  Naval Air Station,          $13,342,000
                                  Jacksonville.
                                 Naval Air Station,             $990,000
                                  Pensacola.
                                 Naval School Explosive       $6,350,000
                                  Ordnance Detachment,
                                  Eglin................
                                 Naval Station, Mayport       $1,900,000
                                 Naval Surface Warfare       $10,700,000
                                  Center Coastal
                                  Systems Station,
                                  Panama City..........
Georgia........................  Naval Submarine Base,        $1,580,000
                                  Kings Bay.
Hawaii.........................  Marine Corps Base.....       $9,500,000
                                 Naval Shipyard, Pearl       $18,500,000
                                  Harbor.
                                 Naval Station, Pearl        $34,090,000
                                  Harbor.
Illinois.......................  Naval Training Center,      $83,190,000
                                  Great Lakes.
Indiana........................  Naval Surface Warfare       $11,610,000
                                  Center, Crane........
Maine..........................  Naval Air Station,           $9,830,000
                                  Brunswick.
                                 Naval Shipyard,             $15,200,000
                                  Kittery-Portsmouth.
Maryland.......................  Naval Air Facility,          $9,680,000
                                  Andrews Air Force
                                  Base.................
                                 Naval Surface Warfare       $12,900,000
                                  Center, Carderock
                                  Division.............
                                 United States Naval          $1,800,000
                                  Academy.

[[Page H8160]]

 
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.................  Marine Corps Air             $6,040,000
                                  Station, Cherry Point.
                                 Marine Corps Air             $6,920,000
                                  Station, New River.
                                 Marine Corps Base,           $9,570,000
                                  Camp Lejeune.
Rhode Island...................  Naval Station, Newport      $15,900,000
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,           $7,150,000
                                  Corpus Christi.
                                 Naval Station,               $5,000,000
                                  Ingleside.
                                 Naval Air Station,           $6,210,000
                                  Kingsville.
Virginia.......................  Marine Corps Combat         $24,864,000
                                  Development Command,
                                  Quantico.............
                                 Naval Air Station           $16,490,000
                                  Oceana.
                                 Naval Amphibious Base,       $9,770,000
                                  Little Creek.
                                 Naval Shipyard,             $36,470,000
                                  Norfolk, Portsmouth.
                                 Naval Station, Norfolk     $168,965,000
                                 Naval Support                $2,260,000
                                  Activity, Norfolk.
                                 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, Indian       $4,030,000
                                  Island.
                                 Naval Station,              $45,870,000
                                  Bremerton.
                                 Naval Submarine Base,       $22,310,000
                                  Bangor.
                                 Naval Undersea Warfare       $7,500,000
                                  Center, Keyport......
                                 Puget Sound Naval           $57,132,000
                                  Shipyard, Bremerton..
                                 Strategic Weapons            $7,340,000
                                  Facility, Bangor.
Various Locations..............  Host Nation                  $1,000,000
                                  Infrastructure.
                                                        ----------------
                                   Total...............   $1,084,363,000
------------------------------------------------------------------------

       (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 Bay........
Diego Garcia...................  Diego Garcia, Naval         $11,090,000
                                  Support Facility......
Greece.........................  Naval Support Activity,      $6,800,000
                                  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,          $55,660,000
                                  Sigonella.
Spain..........................  Naval Station, Rota....     $18,700,000
                                                         ---------------
                                   Total................    $150,820,000
------------------------------------------------------------------------

     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, Lemoore  178 Units.................      $40,981,000
                                         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, Kaneohe  65 Units..................      $24,797,000
                                          Bay......................
Maine..................................  Naval Air Station,          22 Units..................       $5,000,000
                                          Brunswick................
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.................
 United Kingdom........................  Joint Maritime Facility,    62 Units..................      $18,524,000
                                          St. Mawgan...............
                                                                                                ----------------
                                                                       Total...................     $228,719,000
----------------------------------------------------------------------------------------------------------------

       (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 $2,576,381,000, as follows:
       (1) For military construction projects inside the United 
     States authorized by section 2201(a), $1,025,598,000.
       (2) For military construction projects outside the United 
     States authorized by section 2201(b), $148,250,000.
       (3) For unspecified minor construction projects authorized 
     by section 2805 of title 10, United States Code, $26,187,000.
       (4) For architectural and engineering services and 
     construction design under section 2807 of title 10, United 
     States Code, $95,570,000.
       (5) For military family housing functions:
       (A) For construction and acquisition, planning and design, 
     and improvement of military family housing and facilities, 
     $379,468,000.
       (B) For support of military family housing (including 
     functions described in section 2833 of title 10, United 
     States Code), $867,788,000.

[[Page H8161]]

       (6) For replacement of a pier at Naval Station, Norfolk, 
     Virginia, authorized by 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) $10,645,000 (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) Adjustments.--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 the following:
       (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.
       (2) $10,470,000, which represents savings resulting from 
     adjustments in the accounting of civilian personnel benefits.
       (3) $15,017,000, which represents savings resulting from 
     reductions in supervision, inspection, and overhead costs.
       (4) $14,000,000, which represents savings resulting from 
     lower-than-expected inflation.

     SEC. 2205. MODIFICATION OF AUTHORITY 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) Military Family Housing at Quantico, Virginia.--The 
     table in section 2202(a) of that Act (115 Stat. 1288) 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''.
       (c) Conforming Amendment.--Section 2204(b)(2) of that Act 
     (115 Stat. 1289) is amended by striking ``$33,240,000'' and 
     inserting ``$33,520,000''.
                         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, to replace road closed for force protection 
           purposes.

     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 Station......     $14,400,000
                                 Eielson Air Force Base.     $41,100,000
Arizona........................  Davis-Monthan Air Force     $19,270,000
                                  Base.
                                 Luke Air Force Base....     $13,000,000
Arkansas.......................  Little Rock Air Force       $25,600,000
                                  Base.
California.....................  Beale Air Force Base...     $11,740,000
                                 Travis Air Force Base..     $33,469,000
                                 Vandenberg Air Force        $10,500,000
                                  Base.
Colorado.......................  Buckley Air National        $17,700,000
                                  Guard Base.
                                 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........................  Avon Park Air Force          $2,000,000
                                  Range.
                                 Elgin Air Force Base...      $4,250,000
                                 Hurlburt Field.........     $15,000,000
                                 MacDill Air Force Base.     $20,000,000
Georgia........................  Robins Air Force Base..     $29,400,000
Hawaii.........................  Hickam Air Force Base..      $1,350,000
Kansas.........................  McConnell Air Force          $7,500,000
                                  Base.
Louisiana......................  Barksdale Air Force         $22,900,000
                                  Base.
Maryland.......................  Andrews Air Force Base.      $9,600,000
Massachusetts..................  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.     $29,831,000
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
North Dakota...................  Minot Air Force Base...      $5,000,000
Ohio...........................  Wright-Patterson Air        $25,000,000
                                  Force Base.
Oklahoma.......................  Altus Air Force Base...     $14,800,000
                                 Vance Air Force Base...      $4,800,000
South Carolina.................  Shaw Air Force Base....      $6,800,000
South Dakota...................  Ellsworth Air Force         $13,200,000
                                  Base.
Texas..........................  Goodfellow Air Force        $10,600,000
                                  Base.
                                 Lackland Air Force Base     $37,300,000
                                 Lackland Air Force Base     $10,000,000
                                  (Camp Bullis).........
                                 Laughlin Air Force Base      $8,000,000
                                 Sheppard Air Force Base     $16,000,000
Utah...........................  Hill Air Force Base....     $14,500,000
Virginia.......................  Langley Air Force Base.     $70,940,000
                                                         ---------------
                                 Total..................    $724,400,000
------------------------------------------------------------------------

       (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:


[[Page H8162]]



                  Air Force: Outside the United States
------------------------------------------------------------------------
                                     Installation or
            Country                      location             Amount
------------------------------------------------------------------------
Diego Garcia...................  Diego Garcia...........     $17,100,000
Germany........................  Ramstein Air Force Base     $71,783,000
Guam...........................  Andersen Air Force Base     $31,000,000
Italy..........................  Aviano Air Force Base..      $6,600,000
Japan..........................  Kadena Air Force Base..      $6,000,000
Korea..........................  Osan Air Base..........     $15,100,000
Spain..........................  Naval Station, Rota....     $31,818,000
Turkey.........................  Incirlik Air Force Base      $1,550,000
United Kingdom.................  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 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 Location....     $24,993,000
                                                         ---------------
                                   Total................     $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 
     acqumsition 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              $1,514,000
                                                                      Facility.................
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.................      $16,505,000
Missouri...............................  Whiteman Air Force Base...  97 Units..................      $17,107,000
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                $991,000
                                                                      Facility.................
                                         Seymour Johnson Air Force   126 Units.................      $18,615,000
                                          Base.....................
North Dakota...........................  Grand Forks Air Force Base  150 Units.................      $30,140,000
                                         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                $447,000
                                                                      Facility.................
                                         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                $447,000
                                                                      Facility.................
                                         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.....................                                 $429,568,000
----------------------------------------------------------------------------------------------------------------

       (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 $2,633,738,000, as follows:

[[Page H8163]]

       (1) For military construction projects inside the United 
     States authorized by section 2301(a), $717,300,000.
       (2) For military construction projects outside the United 
     States authorized by section 2301(b), $238,251,000.
       (3) For 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, $82,820,000.
       (6) For military housing functions:
       (A) For construction and acquisition, planning and design, 
     and improvement of military family housing and facilities, 
     $689,824,000.
       (B) For support of military family housing (including 
     functions described in section 2833 of title 10, United 
     States Code), $869,050,000.
       (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); and
       (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).
       (c) Adjustments.--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 the following:
       (1) $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.
       (2) $15,306,000, which represents savings resulting from 
     reductions in supervision, inspection, and overhead costs.
       (3) $16,000,000, which represents savings resulting from 
     lower-than-expected inflation.

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

       (a) Authority To Use Funds.--Using amounts authorized to be 
     appropriated by section 2304(a)(2), the Secretary of the Air 
     Force may 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 
     affected by the project.
       (2) The acquisition of property using the 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).
                      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.
Sec. 2405. Modification of authority to carry out certain fiscal year 
              2000 project.
Sec. 2406. Modification of authority to carry out certain fiscal year 
              1999 project.
Sec. 2407. Modification of authority to carry out certain fiscal year 
              1997 project.

     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
------------------------------------------------------------------------
Chemical Demilitarization......  Pine Bluff, Arkansas...     $18,937,000
Defense Intelligence Agency....  Bolling Air Force Base,    $111,958,000
                                  District of Columbia..
Defense Logistics Agency.......  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..........  Peterson Air Force          $25,000,000
                                  Base, Colorado.
Missile Defense Agency.........  Kauai, Hawaii..........     $23,400,000
National Security Agency.......  Fort Meade, Maryland...      $4,484,000
Special Operations Command.....  Dam Neck, Virginia.....      $3,900,000
                                 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          District of Columbia...      $2,500,000
 Services......................
                                                         ---------------
                                   Total................    $394,312,000
------------------------------------------------------------------------


       (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............
                                 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

[[Page H8164]]

 
                                 Supreme Headquarters,        $1,573,000
                                  Allied Powers Europe,
                                  Belgium...............
                                 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................    $206,583,000
------------------------------------------------------------------------


     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)(6), the Secretary of 
     Defense may carry out energy conservation projects under 
     section 2865 of title 10, United States Code, in the amount 
     of $34,531,000.

     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 $1,434,795,000, as follows:
       (1) For military construction projects inside the United 
     States authorized by section 2401(a), $357,712,000.
       (2) For military construction projects outside the United 
     States authorized by section 2401(b), $206,583,000.
       (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, $45,532,000.
       (6) For energy conservation projects authorized by section 
     2403, $34,531,000.
       (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), $565,138,000.
       (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.
       (10) 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 2407 of this Act, $38,000,000.
       (11) 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), as amended by section 2406 of 
     this Act, $61,494,000.
       (12) 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 (division 
     B of Public Law 105-261; 112 Stat. 2193), 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), $20,600,000.
       (13) 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 (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) and 
     section 2405 of this Act, $10,300,000.
       (14) 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 (division 
     B of Public Law 106-65; 113 Stat. 835), $8,300,000.
       (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) Adjustments.--The total amount authorized to be 
     appropriated pursuant to paragraphs (1) through (14) of 
     subsection (a) is the sum of the amounts authorized to be 
     appropriated in such paragraphs, reduced by the following:
       (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.
       (2) $37,000, which represents savings resulting from 
     adjustments in the accounting of civilian personnel benefits.
       (3) $7,414,000, which represents savings resulting from 
     reductions in supervision, inspection, and overhead costs.
       (4) $7,000,000, which represents savings resulting from 
     lower-than-expected inflation.

     SEC. 2405. 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 the 
     Military Construction Authorization Act for Fiscal Year 2000 
     (113 Stat. 839), as so amended, is further amended by 
     striking ``$231,230,000'' and inserting ``$267,525,000''.

     SEC. 2406. 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), 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), is further 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 the 
     Military Construction Authorization Act for Fiscal Year 1999 
     (112 Stat. 2196) is amended by striking ``$162,050,000'' and 
     inserting ``$264,353,000''.

     SEC. 2407. 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 the 
     Military Construction Authorization Act for Fiscal Year 1997 
     (110 Stat. 2779), as so amended, is further amended by 
     striking ``$203,500,000'' and inserting ``$261,000,000''.
   TITLE XXV--NORTH ATLANTIC TREATY ORGANIZATION SECURITY INVESTMENT 
                                PROGRAM

Sec. 2501. Authorized NATO construction and land acquisition projects.
Sec. 2502. Authorization of appropriations, NATO.

     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.

[[Page H8165]]

     SEC. 2502. AUTHORIZATION OF APPROPRIATIONS, NATO.

       (a) In General.--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.
       (b) Adjustment.--The total amount authorized to be 
     appropriated pursuant to subsection (a) is the amount 
     specified in such subsection, reduced by $1,000,000, which 
     represents savings resulting from lower-than-expected 
     inflation.
            TITLE XXVI--GUARD AND RESERVE FORCES FACILITIES

Sec. 2601. Authorized Guard and Reserve construction and land 
              acquisition projects.

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

       (a) In General.--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 therefor, 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, 
     $237,236,000; and
       (B) for the Army Reserve, $99,399,000.
       (2) For the Department of the Navy, for the Naval and 
     Marine Corps Reserve, $75,801,000.
       (3) For the Department of the Air Force--
       (A) for the Air National Guard of the United States, 
     $204,215,000; and
       (B) for the Air Force Reserve, $85,649,000.
       (b) Adjustment.--The total amount authorized to be 
     appropriated pursuant to subsection (a)(1)(A) is the amount 
     specified in such subsection, reduced by $1,000,000, which 
     represents savings resulting from lower-than-expected 
     inflation.
        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. 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 2006 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 Authorizations
----------------------------------------------------------------------------------------------------------------
                 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)......................
----------------------------------------------------------------------------------------------------------------

                    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. Modification of alternative authority for acquisition and 
              improvement of military housing.
Sec. 2803. Pilot housing privatization authority for acquisition or 
              construction of military unaccompanied housing.
Sec. 2804. Repeal of source requirements for family housing 
              construction overseas.
Sec. 2805. Availability of energy cost savings realized at military 
              installations.

        Subtitle B--Real Property and Facilities Administration

Sec. 2811. Agreements to limit encroachments and other constraints on 
              military training, testing, and operations.
Sec. 2812. Conveyance of surplus real property for natural resource 
              conservation purposes.

[[Page H8166]]

Sec. 2813. Modification of demonstration program on reduction in long-
              term facility maintenance costs.
Sec. 2814. Expanded authority to transfer property at military 
              installations to be closed to persons who construct or 
              provide military family housing.

                      Subtitle C--Land Conveyances

                        Part I--Army Conveyances

Sec. 2821. Transfer of jurisdiction, Fort McClellan, Alabama, to 
              establish Mountain Longleaf National Wildlife Refuge.
Sec. 2822. Land conveyances, lands in Alaska no longer required for 
              National Guard purposes.
Sec. 2823. Land conveyance, Sunflower Army Ammunition Plant, Kansas.
Sec. 2824. Land conveyances, Bluegrass Army Depot, Richmond, Kentucky.
Sec. 2825. Land conveyance, Fort Campbell, Kentucky.
Sec. 2826. Land conveyance, Army Reserve Training Center, Buffalo, 
              Minnesota.
Sec. 2827. Land conveyance, Fort Monmouth, New Jersey.
Sec. 2828. Land conveyance, Fort Bliss, Texas.
Sec. 2829. Land conveyance, Fort Hood, Texas.
Sec. 2830. Land conveyances, Engineer Proving Ground, Fort Belvoir, 
              Virginia.

                       Part II--Navy Conveyances

Sec. 2831. Land conveyance, Marine Corps Air Station, Miramar, San 
              Diego, California.
Sec. 2832. Modification of authority for land transfer and conveyance, 
              Naval Security Group Activity, Winter Harbor, Maine.
Sec. 2833. Land conveyance, Westover Air Reserve Base, Massachusetts.
Sec. 2834. Land conveyance, Naval Station, Newport, Rhode Island.
Sec. 2835. Land exchange and boundary adjustments, Marine Corps Base, 
              Quantico, and Prince William Forest Park, Virginia.

                    Part III--Air Force Conveyances

Sec. 2841. Modification of land conveyance, Los Angeles Air Force Base, 
              California.
Sec. 2842. Land exchange, Buckley Air Force Base, Colorado.
Sec. 2843. Land conveyances, Wendover Air Force Base Auxiliary Field, 
              Nevada.

                       Subtitle D--Other Matters

Sec. 2851. Master plan for use of Navy Annex, Arlington, Virginia.
Sec. 2852. Sale of excess treated water and wastewater treatment 
              capacity, Marine Corps Base, Camp Lejeune, North 
              Carolina.
Sec. 2853. Conveyance of real property, Adak Naval Complex, Alaska, and 
              related land conveyances.
Sec. 2854. Special requirement for adding military installation to 
              closure list.
 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. MODIFICATION OF ALTERNATIVE AUTHORITY FOR 
                   ACQUISITION AND IMPROVEMENT OF MILITARY 
                   HOUSING.

       (a) Authorized Utilities and Services.--Section 2872a(b) of 
     title 10, United States Code, is amended by adding at the end 
     the following new paragraphs:
       ``(11) Firefighting and fire protection services.
       ``(12) Police protection services.''.
       (b) Leasing of Housing.--(1) Section 2874 of such title is 
     amended--
       (A) by redesignating subsection (b) as subsection (c); and
       (B) by striking subsection (a) and inserting the following 
     new subsections:
       ``(a) Lease Authorized.--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.
       ``(b) Use of Leased Units.--The Secretary concerned shall 
     utilize housing units leased under this section as military 
     family housing or military unaccompanied housing, as 
     appropriate.''.
       (2) The heading for such section is amended to read as 
     follows:

     ``Sec. 2874. Leasing of housing''.

       (3) The table of sections at the beginning of subchapter IV 
     of chapter 169 of such title is amended by striking the item 
     relating to section 2874 and inserting the following new 
     item:

``2874. Leasing of housing.''.

       (c) Repeal of Interim Lease Authority.--(1) Section 2879 of 
     such title is repealed.
       (2) The table of sections at the beginning of subchapter IV 
     of chapter 169 of such title is amended by striking the item 
     relating to section 2879.

     SEC. 2803. PILOT HOUSING PRIVATIZATION AUTHORITY FOR 
                   ACQUISITION OR CONSTRUCTION OF MILITARY 
                   UNACCOMPANIED HOUSING.

       (a) In General.--(1) Subchapter IV of chapter 169 of title 
     10, United States Code, is amended by inserting after section 
     2881 the following new section:

     ``Sec. 2881a. Pilot projects for acquisition or construction 
       of military unaccompanied housing

       ``(a) Pilot Projects Authorized.--The Secretary of the Navy 
     may carry out not more than three pilot projects under the 
     authority of this section or another provision of this 
     subchapter to use the private sector for the acquisition or 
     construction of military unaccompanied housing in the United 
     States, including any territory or possession of the United 
     States.
       ``(b) Treatment of Housing; Assignment of Members.--The 
     Secretary of the Navy may assign members of the armed forces 
     without dependents to housing units acquired or constructed 
     under the pilot projects, and such housing units shall be 
     considered as quarters of the United States or a housing 
     facility under the jurisdiction of the Secretary for purposes 
     of section 403 of title 37.
       ``(c) Basic Allowance for Housing.--(1) The Secretary of 
     Defense may prescribe and, under section 403(n) of title 37, 
     pay for members of the armed forces without dependents in 
     privatized housing acquired or constructed under the pilot 
     projects higher rates of partial basic allowance for housing 
     than the rates authorized under paragraph (2) of such 
     section.
       ``(2) The partial basic allowance for housing paid for a 
     member at a higher rate under this subsection 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.
       ``(d) Funding.--(1) The Secretary of the Navy shall use the 
     Department of Defense Military Unaccompanied Housing 
     Improvement Fund to carry out activities under the pilot 
     projects.
       ``(2) Subject to 90 days prior notification to the 
     appropriate committees of Congress, such additional amounts 
     as the Secretary of Defense considers necessary may be 
     transferred to the Department of Defense Military 
     Unaccompanied Housing Improvement Fund from amounts 
     appropriated for construction of military unaccompanied 
     housing in military construction accounts. The amounts so 
     transferred shall be merged with and be available for the 
     same purposes and for the same period of time as amounts 
     appropriated directly to the Fund.
       ``(e) Reports.--(1) The Secretary of the Navy shall 
     transmit to the appropriate committees of Congress a report 
     describing--
       ``(A) each contract for the acquisition of military 
     unaccompanied housing that the Secretary proposes to solicit 
     under the pilot projects;
       ``(B) each conveyance or lease proposed under section 2878 
     of this title in furtherance of the pilot projects; and
       ``(C) the proposed partial basic allowance for housing 
     rates for each contract as they vary by grade of the member 
     and how they compare to basic allowance for housing rates for 
     other contracts written under the authority of the pilot 
     programs.
       ``(2) The report shall describe the proposed contract, 
     conveyance, or lease and the intended method of participation 
     of the United States in the contract, conveyance, or lease 
     and provide a justification of such method of participation. 
     The report shall be submitted not later than 90 days before 
     the date on which the Secretary issues the contract 
     solicitation or offers the conveyance or lease.
       ``(f) Expiration.--Notwithstanding section 2885 of this 
     title, the authority of the Secretary of the Navy to enter 
     into a contract under the pilot programs shall expire 
     September 30, 2007. ''.
       (2) The table of sections at the beginning of such 
     subchapter is amended by inserting after the item relating to 
     section 2881 the following new item:

``2881a. Pilot projects for acquisition or construction of military 
              unaccompanied housing.''.

       (b) Conforming Amendment.--Section 2871(7) of title 10, 
     United States Code, is amended by inserting before the period 
     at the end the following: ``and transient housing intended to 
     be occupied by members of the armed forces on temporary 
     duty''.

     SEC. 2804. 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. 2805. AVAILABILITY OF ENERGY COST SAVINGS REALIZED AT 
                   MILITARY INSTALLATIONS.

       Section 2865(b) of title 10, United States Code, is amended 
     by striking ``through the end of the fiscal year following 
     the fiscal year for which the funds were appropriated'' and 
     inserting ``until expended''.
        Subtitle B--Real Property and Facilities Administration

     SEC. 2811. AGREEMENTS TO LIMIT ENCROACHMENTS AND OTHER 
                   CONSTRAINTS ON MILITARY TRAINING, TESTING, AND 
                   OPERATIONS.

       (a) In General.--Chapter 159 of title 10, United States 
     Code, is amended by inserting after section 2684 the 
     following new section:

[[Page H8167]]

     ``Sec. 2684a. Agreements to limit encroachments and other 
       constraints on military training, testing, and operations

       ``(a) Agreements Authorized.--The Secretary of Defense or 
     the Secretary of a military department may enter into an 
     agreement with an eligible entity described in subsection (b) 
     to address the use or development of real property in the 
     vicinity of a military installation for purposes of--
       ``(1) limiting any development or use of the property that 
     would be incompatible with the mission of the installation; 
     or
       ``(2) preserving habitat on the property in a manner that--
       ``(A) is compatible with environmental requirements; and
       ``(B) may eliminate or relieve current or anticipated 
     environmental restrictions that would or might otherwise 
     restrict, impede, or otherwise interfere, whether directly or 
     indirectly, with current or anticipated military training, 
     testing, or operations on the installation.
       ``(b) Eligible Entities.--An agreement under this section 
     may be entered into with any of the following:
       ``(1) A State or political subdivision of a State.
       ``(2) A 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, as determined by the Secretary concerned.
       ``(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) An agreement with an eligible entity under 
     this section may provide for--
       ``(A) the acquisition by the entity of all right, title, 
     and interest in and to any real property, or any lesser 
     interest in the property, as may be appropriate for purposes 
     of this section; and
       ``(B) the sharing by the United States and the entity of 
     the acquisition costs.
       ``(2) Property or interests may not be acquired pursuant to 
     the agreement unless the owner of the property or interests 
     consents to the acquisition.
       ``(3) The agreement shall require the entity to transfer to 
     the United States, upon the request of the Secretary 
     concerned, all or a portion of the property or interest 
     acquired under the agreement or a lesser interest therein. 
     The Secretary shall limit such transfer request 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.
       ``(4) The Secretary concerned may accept on behalf of the 
     United States any property or interest to be transferred to 
     the United States under the agreement.
       ``(5) For purposes of the acceptance of property or 
     interests under the agreement, the Secretary concerned may 
     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 3111 of title 40, if the 
     Secretary concerned finds that the appraisal or title 
     documents substantially comply with the requirements.
       ``(e) Acquisition of Water Rights.--The authority of the 
     Secretary concerned to enter into an agreement under this 
     section for the acquisition of real property (or an interest 
     therein) includes the authority to support the purchase of 
     water rights from any available source when necessary to 
     support or protect the mission of a military installation.
       ``(f) Additional Terms and Conditions.--The Secretary 
     concerned may require such additional terms and conditions in 
     an agreement under this section as the Secretary considers 
     appropriate to protect the interests of the United States.
       ``(g) Funding.--(1) Except as provided in paragraph (2), 
     funds authorized to be appropriated for operation and 
     maintenance of the Army, Navy, Marine Corps, Air Force, or 
     Defense-wide activities may be used to enter into agreements 
     under this section.
       ``(2) In the case of a military installation operated 
     primarily with funds authorized to be appropriated for 
     research, development, test, and evaluation, funds authorized 
     to be appropriated for the Army, Navy, Marine Corps, Air 
     Force, or Defense-wide activities for research, development, 
     test, and evaluation may be used to enter into agreements 
     under this section with respect to the installation.
       ``(h) Definitions.--In this section:
       ``(1) The term `Secretary concerned' means the Secretary of 
     Defense or the Secretary of a military department.
       ``(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.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of such chapter is amended by inserting after the 
     item relating to section 2684 the following new item:

``2684a. Agreements to limit encroachments and other constraints on 
              military training, testing, and operations.''.

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

       (a) Conveyance Authority.--(1) Chapter 159 of title 10, 
     United States Code, is amended by inserting after section 
     2694 the following new section:

     ``Sec. 2694a. Conveyance of surplus real property for natural 
       resource conservation

       ``(a) Authority to Convey.--The Secretary of a military 
     department may convey to an eligible entity described in 
     subsection (b) any surplus real property that--
       ``(1) is under the administrative control of the Secretary;
       ``(2) is suitable and desirable for conservation purposes;
       ``(3) has been made available for public benefit transfer 
     for a sufficient period of time to potential claimants; and
       ``(4) is not subject to a pending request for transfer to 
     another Federal agency or for conveyance to any other 
     qualified recipient for public benefit transfer under the 
     real property disposal processes and authorities under 
     subtitle I of title 40.
       ``(b) Eligible Entities.--The conveyance of surplus real 
     property under this section may be made to any of the 
     following:
       ``(1) A State or political subdivision of a State.
       ``(2) A nonprofit organization that exists for the primary 
     purpose of conservation of natural resources on real 
     property.
       ``(c) Revisionary Interest and Other Deed Requirements.--
     (1) The deed of conveyance of any surplus real property 
     conveyed under this section shall require the property to be 
     used and maintained for the conservation of natural resources 
     in perpetuity. If the Secretary concerned determines at any 
     time that the property is not being used or maintained for 
     such purpose, then, at the option of the Secretary, all or 
     any portion of the property shall revert to the United 
     States.
       ``(2) The deed of conveyance may permit the recipient of 
     the property--
       ``(A) to convey the property to another eligible entity, 
     subject to the approval of the Secretary concerned and 
     subject to the same covenants and terms and conditions as 
     provided in the deed from the United States; and
       ``(B) to conduct incidental revenue-producing activities on 
     the property that are compatible with the use of the property 
     for conservation purposes.
       ``(3) The deed of conveyance may contain such additional 
     terms, reservations, restrictions, and conditions as the 
     Secretary concerned considers appropriate to protect the 
     interests of the United States.
       ``(d) Release of Covenants.--With the concurrence of the 
     Secretary of Interior, the Secretary concerned may grant a 
     release from a covenant included in the deed of conveyance of 
     real property conveyed under this section, subject to the 
     condition that the recipient of the property pay the fair 
     market value, as determined by the Secretary concerned, of 
     the property at the time of the release of the covenant. The 
     Secretary concerned may reduce the amount required to be paid 
     under this subsection to account for the value of the natural 
     resource conservation benefit that has accrued to the United 
     States during the period the covenant was in effect, if the 
     benefit was not taken into account in determining the 
     original consideration for the conveyance.
       ``(e) Congressional Notification.--The Secretary concerned 
     may not approve of the reconveyance of real property under 
     subsection (c) or grant the release of a covenant under 
     subsection (d) until the Secretary notifies the appropriate 
     committees of Congress of the proposed reconveyance or 
     release and a period of 21 days elapses from the date the 
     notification is received by the committees.
       ``(f) Limitations.--The conveyance of real property under 
     this section shall not be used as a condition of allowing any 
     defense activity under any Federal, State, or local 
     permitting or review process. The Secretary concerned may 
     make the conveyance, with the restrictions specified in 
     subsection (c), to establish a mitigation bank, but only if 
     the establishment of the mitigation bank does not occur in 
     order to satisfy any condition for permitting military 
     activity under a Federal, State, or local permitting or 
     review process.
       ``(g) Consideration.--In fixing the consideration for the 
     conveyance of real property under this section, or in 
     determining the amount of any reduction of the amount to be 
     paid for the release of a covenant under subsection (d), the 
     Secretary concerned shall take into consideration any benefit 
     that has accrued or may accrue to the United States from the 
     use of such property for the conservation of natural 
     resources.
       ``(h) Relation to Other Conveyance Authorities.--(1) 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 the base closure law.
       ``(2) In the case of real property on Guam, the Secretary 
     concerned may not make a conveyance under this section unless 
     the Government of Guam has been first afforded the 
     opportunity to acquire the real property as authorized by 
     section 1 of Public Law 106-504 (114 Stat. 2309).
       ``(i) Definitions.--In this section:
       ``(1) The term `appropriate committees of Congress' has the 
     meaning given such term in section 2801 of this title.
       ``(2) 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 Bob Stump National Defense 
     Authorization Act for Fiscal Year 2003.
       ``(3) The term `Secretary concerned' means the Secretary of 
     a military department.

[[Page H8168]]

       ``(4) 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.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by inserting after the item relating to section 
     2694 the following new item:

``2694a. Conveyance of surplus real property for natural resource 
              conservation.''.

       (b) Acceptance of Funds to Cover Administrative Expenses.--
     Section 2695(b) of such title is amended by adding at the end 
     the following new paragraph:
       ``(5) The conveyance of real property under section 2694a 
     of this title.''.
       (c) Agreements With Nonprofit Natural Resource Conservation 
     Organizations.--Section 2701(d) of such title is amended--
       (1) in the subsection heading, by striking ``Agencies'' and 
     inserting ``Entities'';
       (2) in paragraph (1)--
       (A) 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 any 
     nonprofit conservation organization''; and
       (B) by striking ``the agency'' and inserting ``the agency, 
     Indian tribe, or organization''; and
       (3) by striking paragraph (4), as redesignated by section 
     311(2) of this Act, and inserting the following new 
     paragraph:
       ``(4) Definitions.--In this subsection:
       ``(A) The term `Indian tribe' has the meaning given such 
     term in section 101(36) of CERCLA (42 U.S.C. 9601(36)).
       ``(B) The term `nonprofit conservation organization' means 
     any non-governmental nonprofit organization whose primary 
     purpose is conservation of open space or natural 
     resources.''.

     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 such section is amended 
     to read as follows:
       ``(b) Contracts.--(1) Not more than 12 contracts per 
     military department may contain requirements referred to in 
     subsection (a) for the purpose of the demonstration program.
       ``(2) The demonstration program may only cover contracts 
     entered into on or after the date of the enactment of the Bob 
     Stump National Defense Authorization Act for Fiscal Year 
     2003, except that the Secretary of the Army shall treat any 
     contract containing requirements referred to in subsection 
     (a) that was entered into under the authority in such 
     subsection between that date and December 28, 2001, as a 
     contract for the purpose of the demonstration program.''.
       (c) Reporting Requirements.--Subsection (d) of such section 
     is amended by striking ``Secretary of the Army'' and 
     inserting ``Secretary of Defense''.
       (d) Funding.--(1) Subsection (f) of such 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.

     SEC. 2814. EXPANDED AUTHORITY TO TRANSFER PROPERTY AT 
                   MILITARY INSTALLATIONS TO BE CLOSED TO PERSONS 
                   WHO CONSTRUCT OR PROVIDE MILITARY FAMILY 
                   HOUSING.

       (a) 1988 Law.--Section 204(e)(1) of the Defense 
     Authorization Amendments and Base Closure and Realignment Act 
     (Public Law 100-526; 10 U.S.C. 2687 note) is amended by 
     striking the last sentence.
       (b) 1990 Law.--Section 2905(f)(1) of 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) is amended by 
     striking the last sentence.
                      Subtitle C--Land Conveyances

                        PART I--ARMY CONVEYANCES

     SEC. 2821. TRANSFER OF JURISDICTION, FORT MCCLELLAN, ALABAMA, 
                   TO ESTABLISH MOUNTAIN LONGLEAF NATIONAL 
                   WILDLIFE REFUGE.

       (a) Transfer Required.--Not later than 180 days after the 
     date of the enactment of this Act, the Secretary of the Army 
     shall transfer, without reimbursement, to the administrative 
     jurisdiction of the Secretary of the Interior a parcel of 
     real property at Fort McClellan, Alabama, consisting of 
     approximately 7,600 acres, which is described as the 
     ``acquisition area'' in a memorandum of agreement between the 
     Secretaries numbered 1448-40181-00-K-014.
       (b) Establishment and Management of Refuge.--(1) The 
     Secretary of the Interior shall establish on the real 
     property transferred under subsection (a) the Mountain 
     Longleaf National Wildlife Refuge to enhance, manage, and 
     protect the unique mountain longleaf pine ecosystem on the 
     property.
       (2) The Secretary of Interior shall manage the Mountain 
     Longleaf National Wildlife Refuge in a manner that--
       (A) conserves and enhances populations of fish, wildlife, 
     and plants in the Refuge, including migratory birds and 
     species that are threatened or endangered, with particular 
     emphasis on the protection of the mountain longleaf pine 
     plant ecosystem;
       (B) protects and enhances the quality of aquatic habitat in 
     the Refuge;
       (C) provides, in coordination with the Alabama Department 
     of Conservation and Natural Resources, the public with 
     recreational opportunities, including hunting, fishing, 
     wildlife observation, and photography;
       (D) provides opportunities for scientific research and 
     education on land use and environmental law; and
       (E) is consistent with environmental restoration efforts 
     conducted by the Secretary of the Army on the Refuge or on 
     lands adjacent to the Refuge.
       (c) Environmental Restoration.--(1) The Secretary of the 
     Army shall continue to be responsible for unexploded 
     ordnance, discarded military munitions, and munitions 
     constituents on the real property transferred under 
     subsection (a) and shall continue to follow a remediation 
     process in accordance with the Comprehensive Environmental 
     Response, Compensation, and Liability Act of 1980 (42 U.S.C. 
     9601 et seq.).
       (2) The Secretary of the Army shall appropriately factor 
     the management directives for the Mountain Longleaf National 
     Wildlife Refuge, as described in subsection (b), into the 
     remedy selection process for the property transferred under 
     subsection (a).
       (d) Relation to Other Environmental Laws.--Nothing in this 
     section shall relieve, and no action taken under this section 
     may relieve, the Secretary of the Army or the Secretary of 
     the Interior, or any other person from any liability or other 
     obligation under the Comprehensive Environmental Response, 
     Compensation, and Liability Act of 1980, the Resource 
     Conservation and Recovery Act of 1976 (42 U.S.C. 6901 et 
     seq.), or any other Federal or State law.
       (e) Assistance.--The Secretary of the Army may provide up 
     to $500,000 from the funds in the Base Realignment and 
     Closure Account 1990 to the Secretary of Interior to 
     facilitate the establishment of the Mountain Longleaf 
     National Wildlife Refuge and to support environmental 
     research at the Refuge during the first two years of the 
     operation of the Refuge.

     SEC. 2822. LAND CONVEYANCES, LANDS IN ALASKA NO LONGER 
                   REQUIRED FOR NATIONAL GUARD PURPOSES.

       (a) Conveyance Authorized.--The Secretary of the Army may 
     convey to an eligible entity described in subsection (b) all 
     right, title, and interest of the United States in and to any 
     parcel of real property, including any improvements thereon, 
     in the State of Alaska described in subsection (c) if the 
     Secretary determines the conveyance would be in the public 
     interest.
       (b) Eligible Recipients.--The following entities shall be 
     eligible to receive real property under subsection (a):
       (1) The State of Alaska.
       (2) A governmental entity in the State of Alaska.
       (3) A Native Corporation (as defined in section 3 of the 
     Alaska Native Claims Settlement Act (43 U.S.C. 1602)).
       (4) The Metlakatla Indian Community.
       (c) Covered Property.--Subsection (a) applies to real 
     property located in the State of Alaska that--
       (1) is under the jurisdiction of the Department of the Army 
     and, before December 2, 1980, was under such jurisdiction for 
     the use of the Alaska National Guard;
       (2) is located in a unit of the National Wildlife Refuge 
     System designated in the Alaska National Interest Lands 
     Conservation Act (Public Law 96-487; 16 U.S.C. 668dd note);
       (3) is excess to the needs of the Alaska National Guard and 
     the Department of Defense; and
       (4) the Secretary determines that--
       (A) the anticipated cost to the United States of retaining 
     the property exceeds the value of such property; or
       (B) the condition of the property makes it unsuitable for 
     retention by the United States.
       (d) Consideration.--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.
       (e) Use of Consideration.--If consideration is received for 
     the conveyance of real property under subsection (a), the 
     Secretary may use the amounts received, in such amounts as 
     are provided in appropriations Acts, to pay for--
       (1) the cost of a survey described in subsection (f) with 
     respect to the property;
       (2) 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 the property or the conveyance 
     of the property; and
       (3) any other costs incurred by the Secretary in conveying 
     the property.
       (f) 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.
       (g) 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.

     SEC. 2823. LAND CONVEYANCE, SUNFLOWER ARMY AMMUNITION PLANT, 
                   KANSAS.

       (a) Conveyance Authorized.--The Administrator of General 
     Services may convey to the Johnson County Park and Recreation 
     District, Kansas (in this section referred to as the 
     ``District''), all right, title, and interest of the

[[Page H8169]]

     United States in and to a parcel of real property, including 
     any improvements thereon, at the Sunflower Army Ammunition 
     Plant in the State of Kansas consisting of approximately 
     2,000 acres.
       (b) Basis of Conveyance.--The conveyance under this section 
     shall be made in a manner consistent with section 550(e) of 
     title 40, United States Code, for the purpose of permitting 
     the District to use the conveyed property for public 
     recreational purposes.
       (c) 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 Administrator. The cost of such legal 
     description, survey, or both shall be borne by the District.
       (d) Additional Terms and Conditions.--The Administrator may 
     require such additional terms and conditions in connection 
     with the conveyance under subsection (a) as the Administrator 
     considers appropriate to protect the interests of the United 
     States.
       (e) Application of Section.--If the Administrator and the 
     District reach an agreement regarding the conveyance of the 
     property described in subsection (a) before January 31, 2003, 
     the authority provided by this section shall not take effect.

     SEC. 2824. LAND CONVEYANCES, BLUEGRASS ARMY DEPOT, RICHMOND, 
                   KENTUCKY.

       (a) Conveyance Authorized.--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 the 
     following parcels of real property, including any 
     improvements thereon, at the Bluegrass Army Depot, Richmond, 
     Kentucky:
       (1) A parcel consisting of approximately 10 acres.
       (2) A parcel consisting of approximately 3 acres, including 
     the building known as Quarters 29.
       (b) Conditions of Conveyance.--(1) The Secretary may not 
     convey the parcel of real property referred to in subsection 
     (a)(1) unless the County agrees to use the property to 
     facilitate the construction of a veterans' center on the 
     property by the State of Kentucky and the Secretary 
     determines that the State has appropriated adequate funds for 
     the construction of the veterans' center.
       (2) The Secretary may not convey the parcel of real 
     property referred to in subsection (a)(2) unless the County 
     agrees to utilize the property for historical preservation 
     and education purposes.
       (c) Reversionary Interest.--(1) At the end of the seven-
     year period beginning on the date on which the Secretary 
     makes the conveyance of the parcel of real property referred 
     to in subsection (a)(1), if the Secretary determines that a 
     veterans' center is not in operation on the conveyed real 
     property, then, at the option of the Secretary, 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 
     onto the property.
       (2) If the Secretary determines at any time that the parcel 
     of real property referred to in subsection (a)(2) has ceased 
     to be utilized for the purposes specified in subsection 
     (b)(2), then, at the option of the Secretary, 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.
       (3) Any determination of the Secretary under this 
     subsection shall be made on the record after an opportunity 
     for a hearing.
       (d) Reimbursement for Costs of Conveyance.--(1) The 
     Secretary may require the County to reimburse the Secretary 
     for the costs incurred by the Secretary to carry out the 
     conveyances 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) The Secretary shall require the County to reimburse the 
     Secretary for any excess costs incurred by the Secretary for 
     any environmental assessment, study, or analysis, or for any 
     other excess costs incurred by the Secretary, in connection 
     with the conveyances, if the excess costs were incurred as a 
     result of a request by the County. In this paragraph, the 
     term ``excess costs'' means costs in excess of those costs 
     considered reasonable and necessary by the Secretary to 
     comply with existing law to make the conveyances.
       (3) Any reimbursement received under this subsection shall 
     be credited to the fund or account that was used to cover the 
     costs incurred by the Secretary in carrying out the 
     conveyances. 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.
       (e) 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.
       (f) Additional Terms and Conditions.--The Secretary may 
     require such additional terms and conditions in connection 
     with the conveyances under subsection (a) as the Secretary 
     considers appropriate to protect the interests of the United 
     States.

     SEC. 2825. 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 for Costs of Conveyance.--(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) The Secretary shall require the City to reimburse the 
     Secretary for any excess costs incurred by the Secretary for 
     any environmental assessment, study, or analysis, or for any 
     other excess costs incurred by the Secretary, in connection 
     with the conveyance, if the excess costs were incurred as a 
     result of a request by the City. In this paragraph, the term 
     ``excess costs'' means costs in excess of those costs 
     considered reasonable and necessary by the Secretary to 
     comply with existing law to make the conveyance.
       (3) Any reimbursement received under this subsection shall 
     be credited to the fund or account that was used to cover the 
     costs incurred by the Secretary in carrying out the 
     conveyance. 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.
       (e) 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.
       (f) Additional Terms and Conditions.--The Secretary may 
     require such additional terms and conditions in connection 
     with the conveyances under subsection (a) as the Secretary 
     considers appropriate to protect the interests of the United 
     States.

     SEC. 2825. 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 for Costs of Conveyance.--(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) The Secretary shall require the City to reimburse the 
     Secretary for any excess costs incurred by the Secretary for 
     any environmental assessment, study, or analysis, or for any 
     other excess costs incurred by the Secretary, in connection 
     with the conveyance, if the excess costs were incurred as a 
     result of a request by the City. In this paragraph, the term 
     ``excess costs'' means costs in excess of those costs 
     considered reasonable and necessary by the Secretary to 
     comply with existing law to make the conveyance.
       (3) Any reimbursement received under this subsection shall 
     be credited to the fund or account that was used to cover the 
     costs incurred by the Secretary in carrying out the 
     conveyance. 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 the conveyance is made.
       (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. 2826. LAND CONVEYANCE, ARMY RESERVE TRAINING CENTER, 
                   BUFFALO, MINNESOTA.

       (a) Conveyance Authorized.--The Secretary of the Army may 
     convey, without consideration, to the Buffalo Independent 
     School District 877 of Buffalo, Minnesota (in this section 
     referred to as the ``School District''), all right, title, 
     and interest of the United States in and to a parcel of real 
     property, including improvements thereon, that is located at 
     800 8th Street, N.E., in Buffalo, Minnesota, and contains a 
     former Army Reserve Training Center, which is being used by 
     the School District as the site of the Phoenix Learning 
     Center.
       (b) Reimbursement for Costs of Conveyance.--(1) The 
     Secretary may require the School District 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) The Secretary shall require the School District to 
     reimburse the Secretary for any excess costs incurred by the 
     Secretary for any environmental assessment, study, or 
     analysis, or for any other excess costs incurred by the 
     Secretary,

[[Page H8170]]

     in connection with the conveyance, if the excess costs were 
     incurred as a result of a request by the School District. In 
     this paragraph, the term ``excess costs'' means costs in 
     excess of those costs considered reasonable and necessary by 
     the Secretary to comply with existing law to make the 
     conveyance.
       (3) Any reimbursement received under this subsection shall 
     be credited to the fund or account that was used to cover the 
     costs incurred by the Secretary in carrying out the 
     conveyance. 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 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 School District.
       (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. 2827. LAND CONVEYANCE, FORT MONMOUTH, NEW JERSEY.

       (a) Conveyance Authorized.--The Secretary of the Army may 
     convey by sale all right, title, and interest of the United 
     States in and to a parcel of real property, consisting of 
     approximately 63.95 acres of military family housing known as 
     Howard Commons, that comprises a portion of Fort Monmouth, 
     New Jersey.
       (b) Competitive Bid Requirement.--The Secretary shall use 
     competitive procedures for the sale authorized by subsection 
     (a).
       (c) Consideration.--(1) As consideration for the conveyance 
     authorized by subsection (a), the recipient 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 such subsection.
       (2) In-kind consideration under paragraph (1) may include 
     the construction of replacement military family housing or 
     the rehabilitation of existing military family housing at 
     Fort Monmouth, New Jersey, as agreed upon by the Secretary.
       (3) If the value of in-kind consideration to be provided 
     under this subsection exceeds $1,500,000, the Secretary may 
     not accept such consideration until after the end of the 21-
     day period beginning on the date the Secretary notifies the 
     congressional defense committees of the decision of the 
     Secretary to accept in-kind consideration in excess of that 
     amount.
       (4) Any proceeds received by the Secretary under this 
     subsection and not used to construct or rehabilitate such 
     military family housing shall be deposited in the special 
     account in the Treasury established pursuant to section 
     572(b) of title 40, United States Code.
       (d) Effect of Transfer of Administrative Jurisdiction.--If 
     the real property authorized to be conveyed by this section 
     is transferred to the administrative jurisdiction of the 
     Administrator of General Services, the Administrator, rather 
     than the Secretary, shall have the authority to convey such 
     property under this section.
       (e) Description of Parcel.--The exact acreage and legal 
     description of the parcel to be conveyed under subsection (a) 
     shall be determined by a survey that is satisfactory to the 
     Secretary. The cost of the survey shall be borne by the 
     recipient of the parcel.
       (f) 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. 2828. LAND CONVEYANCE, FORT BLISS, TEXAS.

       (a) Conveyance Authorized.--The Secretary of the Army may 
     convey, without consideration, to the County of El Paso, 
     Texas (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 improvements thereon, 
     consisting of approximately 44 acres at Fort Bliss, Texas, 
     for the purpose of facilitating the construction by the State 
     of Texas of a nursing home for veterans of the Armed Forces.
       (b) Reversionary Interest.--(1) At the end of the seven-
     year period beginning on the date on which the Secretary 
     makes the conveyance under subsection (a), if the Secretary 
     determines that a nursing home for veterans is not in 
     operation on the conveyed real property, then, at the option 
     of the Secretary--
       (A) all right, title, and interest in and to the property, 
     including any improvements thereon, shall revert to the 
     United States; and
       (B) the United States shall have the right of immediate 
     entry onto the property.
       (2) Any determination of the Secretary under this 
     subsection shall be made on the record after an opportunity 
     for a hearing.
       (c) Reimbursement for Costs of Conveyance.--(1) The 
     Secretary may require the County 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) The Secretary shall require the County to reimburse the 
     Secretary for any excess costs incurred by the Secretary for 
     any environmental assessment, study, or analysis, or for any 
     other excess costs incurred by the Secretary, in connection 
     with the conveyance, if the excess costs were incurred as a 
     result of a request by the County. In this paragraph, the 
     term ``excess costs'' means costs in excess of those costs 
     considered reasonable and necessary by the Secretary to 
     comply with existing law to make the conveyance.
       (3) Any reimbursement received under this subsection shall 
     be credited to the fund or account that was used to cover the 
     costs incurred by the Secretary in carrying out the 
     conveyance. 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. 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.

     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 of the Armed 
     Forces.
       (b) Reversionary Interest.--(1) At the end of the seven-
     year period beginning on the date on which the Secretary 
     makes the conveyance under subsection (a), if the Secretary 
     determines that a cemetery for veterans is not in operation 
     on the conveyed real property, then, at the option of the 
     Secretary--
       (A) all right, title, and interest in and to the property, 
     including any improvements thereon, shall revert to the 
     United States; and
       (B) the United States shall have the right of immediate 
     entry onto the property.
       (2) Any determination of the Secretary under this 
     subsection shall be made on the record after an opportunity 
     for a hearing.
       (c) Reimbursement for Costs of Conveyance.--(1) The 
     Secretary may require the Board 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) The Secretary shall require the Board to reimburse the 
     Secretary for any excess costs incurred by the Secretary for 
     any environmental assessment, study, or analysis, or for any 
     other excess costs incurred by the Secretary, in connection 
     with the conveyance, if the excess costs were incurred as a 
     result of a request by the Board. In this paragraph, the term 
     ``excess costs'' means costs in excess of those costs 
     considered reasonable and necessary by the Secretary to 
     comply with existing law to make the conveyance.
       (3) Any reimbursement received under this subsection shall 
     be credited to the fund or account that was used to cover the 
     costs incurred by the Secretary in carrying out the 
     conveyance. 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. The cost of the survey shall be borne by 
     the Board.
       (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. 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 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,

[[Page H8171]]

     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 such 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) If the value of in-kind consideration to be provided 
     under paragraph (1) exceeds $1,500,000, the Secretary may not 
     accept such consideration until after the end of the 21-day 
     period beginning on the date the Secretary notifies the 
     congressional defense committees of the decision of the 
     Secretary to accept in-kind consideration in excess of that 
     amount.
       (5) The Secretary shall deposit any cash received as 
     consideration under this subsection in the special account 
     established pursuant to section 572(b) of title 40, United 
     States Code.
       (d) Effect of Transfer of Administrative Jurisdiction.--If 
     all or a portion of the real property authorized to be 
     conveyed by this section is transferred to the administrative 
     jurisdiction of the Administrator of General Services, the 
     Administrator, rather than the Secretary of the Army, shall 
     have the authority to convey such property under this 
     section.
       (e) 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.
       (f) 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.
       (g) 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.

                       PART II--NAVY CONVEYANCES

     SEC. 2831. LAND CONVEYANCE, MARINE CORPS AIR STATION, 
                   MIRAMAR, SAN DIEGO, CALIFORNIA.

       (a) Conveyance Authorized.--The Secretary of the Navy may 
     convey to the ENPEX Corporation, Incorporated (in this 
     section referred to as the ``Corporation''), all right, 
     title, and interest of the United States in and to a parcel 
     of real property, including any improvements thereon, at 
     Marine Corps Air Station, Miramar, San Diego, California, 
     consisting of approximately 60 acres and appurtenant 
     easements and any other necessary interests in real property 
     for the purpose of permitting the Corporation to use the 
     property for the production of electric power and related 
     ancillary activities.
       (b) Consideration.--(1) As consideration for the conveyance 
     under subsection (a), the Corporation shall--
       (A) convey to the United States all right, title, and 
     interest of the Corporation in and to a parcel of real 
     property in the San Diego area that is suitable for military 
     family housing, as determined by the Secretary; and
       (B) if the parcel conveyed under subparagraph (A) does not 
     contain housing units suitable for use as military family 
     housing, design and construct such military family housing 
     units and supporting facilities as the Secretary considers 
     appropriate.
       (2) The total combined value of the real property and 
     military family housing conveyed by the Corporation under 
     this subsection shall be at least equal to the fair market 
     value of the real property conveyed to the Secretary under 
     subsection (a), including any severance costs arising from 
     any diminution of the value or utility of other property at 
     Marine Corps Air Station, Miramar, attributable to the 
     prospective future use of the property conveyed under 
     subsection (a).
       (3) The Secretary shall determine the fair market value of 
     the real property to be conveyed under subsection (a) and the 
     fair market value of the consideration to be provided under 
     this subsection. Such determinations shall be final.
       (c) Reversionary Interest.--(1) Subject to paragraph (2), 
     if the Secretary determines at any time that the property 
     conveyed under subsection (a) is not being used in accordance 
     with the purpose of the conveyance specified in such 
     subsection, all right, title, and interest in and to the 
     property, including any improvements thereon, shall revert, 
     at the option of the Secretary, to the United States, and the 
     United States shall have the right of immediate entry onto 
     the property. Any determination of the Secretary under this 
     subsection shall be made on the record after an opportunity 
     for a hearing.
       (2) If Marine Corps Air Station, Miramar, is no longer used 
     as a Federal aviation facility, paragraph (1) shall no longer 
     apply, and the Secretary shall release, without 
     consideration, the reversionary interest retained by the 
     United States under such paragraph.
       (d) Administrative Expenses.--(1) The Corporation shall 
     make funds available to the Secretary to cover costs to be 
     incurred by the Secretary, or reimburse the Secretary for 
     costs incurred, to carry out the conveyance under subsection 
     (a), including survey costs, costs related to environmental 
     documentation, and other administrative costs related to the 
     conveyance. This paragraph does not apply to costs associated 
     with the removal of explosive ordnance from the parcel and 
     environmental remediation of the parcel.
       (2) Section 2695(c) of title 10 United States Code, shall 
     apply to any amount received under paragraph (1). If the 
     amounts received in advance under such paragraph exceed the 
     costs actually incurred by the Secretary, the Secretary shall 
     refund the excess amount to the Corporation.
       (e) Descriptions of Property.--The exact acreage and legal 
     descriptions of the real property to be conveyed by the 
     Secretary under subsection (a) and the property to be 
     conveyed by the Corporation under subsection (b) shall be 
     determined by a survey satisfactory to the Secretary.
       (f) Exemptions.--Section 2696 of title 10, United States 
     Code, does not apply to the conveyance authorized by 
     subsection (a), and the authority to make the conveyance 
     shall not be considered to render the property excess or 
     underutilized.
       (g) Additional Terms and Conditions.--The Secretary may 
     require such additional terms and conditions in connection 
     with the conveyances authorized by this section as the 
     Secretary considers appropriate to protect the interests of 
     the United States.

     SEC. 2832. 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.--Subsection (b) of section 2845 of 
     the Military Construction Authorization Act for Fiscal Year 
     2002 (division B of Public Law 107-107; 115 Stat. 1319) is 
     amended to read as follows:
       ``(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. The Secretary of the Interior shall 
     administer the property transferred under this paragraph as 
     part of the National Wildlife Refuge System.''.
       (b) Exemption of Modified Conveyances from Federal 
     Screening Requirement.--Such 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 From Federal Screening.--Any conveyance 
     authorized by subsection (b)(1) is exempt from the 
     requirement to screen the property concerned for further 
     Federal use pursuant to section 2696 of title 10, United 
     States Code.''.
       (c) Conforming Amendments.--Subsections (c), (d), (e), (f), 
     (h) (as redesignated), and (i) (as redesignated) of such 
     section are amended by striking ``subsection (b)'' each place 
     it appears and inserting ``subsection (b)(1)''.

     SEC. 2833. 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) Reimbursement for Costs of Conveyance.--(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) The Secretary shall require the City to reimburse the 
     Secretary for any excess costs incurred by the Secretary for 
     any environmental assessment, study, or analysis, or for any 
     other excess costs incurred by the Secretary, in connection 
     with the conveyance, if the excess costs were incurred as a 
     result of a request by the City. In this paragraph, the term 
     ``excess costs'' means costs in excess of those costs 
     considered reasonable and necessary by the Secretary to 
     comply with existing law to make the conveyance.
       (3) Any reimbursement received under this subsection shall 
     be credited to the fund or account that was used to cover the 
     costs incurred by the Secretary in carrying out the 
     conveyance. 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.

[[Page H8172]]

       (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. 2834. 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) The consideration received under paragraph (1) shall be 
     deposited in the account established pursuant to section 
     572(b) of title 40, United States Code, and shall be 
     available as provided for in that section.
       (c) Reimbursement for Costs of Conveyance.--(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. 2835. LAND EXCHANGE AND BOUNDARY ADJUSTMENTS, MARINE 
                   CORPS BASE, QUANTICO, AND PRINCE WILLIAM FOREST 
                   PARK, VIRGINIA.

       (a) Land Exchange.--Administrative jurisdiction over 
     certain lands at Prince William Forest Park, Virginia, and at 
     the Marine Corps Base, Quantico, Virginia, shall be adjusted 
     through the following actions:
       (1) The Secretary of the Navy shall transfer, without 
     reimbursement, to the administrative jurisdiction of the 
     Secretary of the Interior approximately 352 acres of land, 
     depicted as ``Lands Transferred from Department of the Navy 
     to Department of the Interior'' on the map entitled 
     ``Boundary Adjustments Between Prince William Forest Park and 
     Marine Corps Base, Quantico'', numbered 860/80283, and 
     dated May 1, 2002.
       (2) The Secretary of the Interior shall transfer, without 
     reimbursement, to the administrative jurisdiction of the 
     Secretary of the Navy approximately 3,398 acres of land, 
     depicted as ``Lands Transferred from Department of the 
     Interior to Department of the Navy'' on the map described in 
     paragraph (1).
       (b) Retention of Certain Land.--The Secretary of the 
     Interior shall continue to administer approximately 1,346 
     acres of land, depicted as ``Lands Retained by Department of 
     the Interior'' on the map described in subsection (a)(1). 
     Effective on the date of the enactment of this Act, the 
     special use permit dated March 16, 1972, which provides for 
     the use of part of this land by the Marine Corps, shall no 
     longer be in effect.
       (c) Subsequent Disposal of Land.--(1) If any of the land 
     described in subsection (a)(1) or (b) is determined to be 
     excess to the needs of the Department of the Interior, the 
     Secretary of the Interior shall offer to transfer, without 
     reimbursement, administrative jurisdiction over the land to 
     the Secretary of the Navy.
       (2) If any of the land described in subsection (a)(2) is 
     determined to be excess to the needs of the Department of the 
     Navy, the Secretary of the Navy shall offer to transfer, 
     without reimbursement, administrative jurisdiction over the 
     land to the Secretary of the Interior.
       (3) If an offer made under this subsection is not accepted 
     within 90 days, the land covered by the offer may be disposed 
     of in accordance with the laws and regulations governing the 
     disposal of excess property.
       (d) Boundary Modification and Administration.--(1) The 
     boundaries of Prince William Forest Park and the Marine Corps 
     Base, Quantico, shall be modified to reflect the land 
     exchanges or disposals made under this section.
       (2) Land transferred to the Secretary of the Interior under 
     subsection (a)(1) or retained under subsection (b) shall be 
     administered as part of Prince William Forest Park in 
     accordance with applicable laws and regulations.
       (e) Availability of Map.--The map described in subsection 
     (a)(1) shall be on file and available for public inspection 
     in the appropriate offices of the National Park Service, 
     Department of the Interior.
       (f) Conforming Amendments.--The Act of June 22, 1948 
     (Chapter 596; 62 Stat. 571), is amended--
       (1) by striking the first section and inserting the 
     following new section:

     ``SECTION 1. PRINCE WILLIAM FOREST PARK, VIRGINIA.

       ``Chopawamsic Park, which was established in 1933 as 
     Chopawamsic Recreational Demonstration Area, shall be known 
     as `Prince William Forest Park'.'';
       (2) in section 2--
       (A) by striking ``That all'' and inserting ``All''; and
       (B) by striking ``the Chopawamsic Park'' and inserting 
     ``Prince William Forest Park''; and
       (3) in section 3--
       (A) by striking ``That the Secretary of the Interior and 
     the Secretary of the Navy be, and they are hereby'' and 
     inserting ``The Secretary of the Interior is''; and
       (B) by striking ``the Chopawamsic Park'' both places it 
     appears and inserting ``Prince William Forest Park''.

                    PART III--AIR FORCE CONVEYANCES

     SEC. 2841. MODIFICATION OF LAND CONVEYANCE, LOS ANGELES AIR 
                   FORCE BASE, CALIFORNIA.

       Section 2861(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-433) is amended in the 
     first sentence by striking ``10 years'' and inserting ``30 
     years''.

     SEC. 2842. LAND EXCHANGE, BUCKLEY AIR FORCE BASE, COLORADO.

       (a) Exchange Authorized.--For the purpose of facilitating 
     the acquisition of real property suitable for the 
     construction of military family housing for Buckley Air Force 
     Base, Colorado, 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) Consideration.--(1) As consideration for the conveyance 
     authorized by subsection (a) the State shall convey to the 
     United States 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.
       (c) 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.
       (d) Additional Terms and Conditions.--The Secretary may 
     require such additional terms and conditions in connection 
     with the conveyances under this section as the Secretary 
     considers appropriate to protect the interests of the United 
     States.

     SEC. 2843. 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) Phased Conveyances.--The land conveyances authorized by 
     subsections (a) and (b) may be conducted in phases. To the 
     extent practicable, the first phase of the conveyances should 
     involve at least 3,000 acres.
       (d) 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

[[Page H8173]]

     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.
       (e) 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 authorized by subsections (a) and (b) as 
     the Secretaries consider appropriate to protect the interests 
     of the United States.
                       Subtitle D--Other Matters

     SEC. 2851. MASTER PLAN FOR USE OF NAVY ANNEX, ARLINGTON, 
                   VIRGINIA.

       (a) 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 for--'' 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 subsection (b)(2) for 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 Bob Stump National Defense 
     Authorization Act for Fiscal Year 2003''.
       (b) Construction of Amendments.--The amendments made by 
     subsection (a) 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 (division B of Public 
     Law 107-107; 115 Stat. 1330).

     SEC. 2852. SALE OF EXCESS TREATED WATER AND WASTEWATER 
                   TREATMENT CAPACITY, MARINE CORPS BASE, CAMP 
                   LEJEUNE, NORTH CAROLINA.

       (a) Sale Authorized.--The Secretary of the Navy may provide 
     to Onslow County, North Carolina, or any authority or 
     political subdivision organized under the laws of North 
     Carolina to provide public water or sewage services in Onslow 
     County (in this section referred to as the ``County''), 
     treated water and wastewater treatment services from 
     facilities at Marine Corps Base, Camp Lejeune, North 
     Carolina, if the Secretary determines that the provision of 
     these utility services is in the public interest and will not 
     interfere with current or future operations at Camp Lejeune.
       (b) Inapplicability of Certain Requirements.--Section 2686 
     of title 10, United States Code, shall not apply to the 
     provision of public water or sewage services authorized by 
     subsection (a).
       (c) Consideration.--As consideration for the receipt of 
     public water or sewage services under subsection (a), the 
     County shall pay to the Secretary an amount (in cash or in 
     kind) equal to the fair market value of the services. Amounts 
     received in cash shall be credited to the base operation and 
     maintenance accounts of Camp Lejeune.
       (d) Expansion.--The Secretary may make minor expansions and 
     extensions and permit connections to the public water or 
     sewage systems of the County in order to furnish the services 
     authorized under subsection (a). The Secretary shall restrict 
     the provision of services to the County to those areas in the 
     County where residential development would be compatible with 
     current and future operations at Camp Lejeune.
       (e) Administrative Expenses.--(1) The Secretary may require 
     the County to reimburse the Secretary for the costs incurred 
     by the Secretary to provide public water or sewage services 
     to the County under subsection (a).
       (2) Section 2695(c) of title 10 United States Code, shall 
     apply to any amount received under this subsection.
       (f) Additional Terms and Conditions.--The Secretary may 
     require such additional terms and conditions in connection 
     with the provision of public water or sewage services under 
     this section as the Secretary considers appropriate to 
     protect the interests of the United States.

     SEC. 2853. CONVEYANCE OF REAL PROPERTY, ADAK NAVAL COMPLEX, 
                   ALASKA, AND RELATED LAND CONVEYANCES.

       Section 6 of the Act entitled ``An Act to ratify an 
     agreement between The Aleut Corporation and the United States 
     of America to exchange land rights received under the Alaska 
     Native Claims Settlement Act for certain land interests on 
     Adak Island, and for other purposes.'', approved October 11, 
     2002 (Public Law 107-239), is amended by adding at the end 
     the following new subsection:
       ``(f) For purposes of section 21(c) of the Alaska Native 
     Claims Settlement Act (43 U.S.C. 1620(c)), all property 
     received by the Aleut Corporation under this Act shall be 
     given a tax basis equal to fair value on the date of the 
     transfer. Fair value shall be determined by replacement cost 
     appraisal.''.

     SEC. 2854. SPECIAL REQUIREMENT FOR ADDING MILITARY 
                   INSTALLATION TO CLOSURE LIST.

       Section 2914(d) of 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), as added by section 3003 of the Military 
     Construction Authorization Act for Fiscal Year 2002 (division 
     B of Public Law 107-107; 155 Stat, 1346), is amended--
       (1) by redesignating paragraph (5) as paragraph (6); and
       (2) by inserting after paragraph (4) the following new 
     paragraph (5):
       ``(5) Site visit.--In the report required under section 
     2903(d)(2)(A) that is to be transmitted under paragraph (1), 
     the Commission may not recommend the closure of a military 
     installation not recommended for closure by the Secretary 
     under subsection (a) unless at least two members of the 
     Commission visit the installation before the date of the 
     transmittal of the report.''.
 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 nuclear waste disposal.

   Subtitle B--Program Authorizations, Restrictions, and Limitations

Sec. 3141. Annual assessments and reports to the President and Congress 
              regarding the condition of the United States nuclear 
              weapons stockpile.
Sec. 3142. Plans for achieving enhanced readiness posture for 
              resumption by the United States of underground nuclear 
              weapons tests.
Sec. 3143. Requirements for specific request for new or modified 
              nuclear weapons.
Sec. 3144. Database to track notification and resolution phases of 
              Significant Finding Investigations.
Sec. 3145. Defense environmental management cleanup reform program.
Sec. 3146. Limitation on obligation of funds for Robust Nuclear Earth 
              Penetrator program pending submission of report.

                   Subtitle C--Proliferation Matters

Sec. 3151. Transfer to National Nuclear Security Administration of 
              Department of Defense's Cooperative Threat Reduction 
              program relating to elimination of 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. Cooperative program on research, development, and 
              demonstration of technology regarding nuclear or 
              radiological terrorism.
Sec. 3156. Matters relating to the International Materials Protection, 
              Control, and Accounting program of the Department of 
              Energy.
Sec. 3157. Accelerated disposition of highly enriched uranium.
Sec. 3158. Strengthened international security for nuclear materials 
              and security of nuclear operations.
Sec. 3159. Export control programs.
Sec. 3160. Plan for accelerated return of weapons-usable nuclear 
              materials.
Sec. 3161. Sense of Congress on amendment of Convention on Physical 
              Protection of Nuclear Materials.
Sec. 3162. Sense of Congress on program to secure stockpiles of highly 
              enriched uranium and plutonium.

                       Subtitle D--Other Matters

Sec. 3171. Indemnification of Department of Energy contractors.
Sec. 3172. Support for public education in the vicinity of Los Alamos 
              National Laboratory, New Mexico.
Sec. 3173. Worker health and safety rules for Department of Energy 
              nuclear facilities.
Sec. 3174. Extension of authority to appoint certain scientific, 
              engineering, and technical personnel.
Sec. 3175. One-year extension of panel to assess the reliability, 
              safety, and security of the United States nuclear 
              stockpile.
Sec. 3176. Report on status of environmental management initiatives to 
              accelerate the reduction of environmental risks and 
              challenges posed by the legacy of the Cold War.

Subtitle E--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.
         Subtitle A--National Security Programs Authorizations

     SEC. 3101. NATIONAL NUCLEAR SECURITY ADMINISTRATION.

       (a) Authorization of Appropriations.--Funds are hereby 
     authorized to be appropriated

[[Page H8174]]

     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 $8,038,490,000, to be allocated as follows:
       (1) For weapons activities, $5,901,641,000.
       (2) For defense nuclear nonproliferation activities, 
     $1,104,130,000.
       (3) For naval reactors, $706,790,000.
       (4) For the Office of the Administrator for Nuclear 
     Security, $325,929,000.
       (b) Authorization of New Plant Projects.--From funds 
     referred to in subsection (a) that are available for carrying 
     out plant projects, the Secretary of Energy may carry out new 
     plant projects as follows:
       (1) For weapons activities, the following new plant 
     projects:
       Project 03-D-101, Sandia underground reactor facility 
     (SURF), Sandia National Laboratories, Albuquerque, New 
     Mexico, $2,000,000.
       Project 03-D-103, project engineering and design, various 
     locations, $17,039,000.
       Project 03-D-121, gas transfer capacity expansion, Kansas 
     City Plant, Kansas City, Missouri, $4,000,000.
       Project 03-D-122, prototype purification facility, Y-12 
     plant, Oak Ridge, Tennessee, $20,800,000.
       Project 03-D-123, special nuclear materials 
     requalification, Pantex plant, Amarillo, Texas, $3,000,000.
       (2) For naval reactors, the following new plant project:
       Project 03-D-201, cleanroom technology facility, Bettis 
     Atomic Power Laboratory, West Mifflin, Pennsylvania, 
     $7,200,000.

     SEC. 3102. DEFENSE ENVIRONMENTAL MANAGEMENT.

       (a) Authorization of Appropriations.--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 $6,759,846,000, to be allocated as follows:
       (1) For defense environmental restoration and waste 
     management, $4,510,133,000.
       (2) For defense environmental management cleanup reform in 
     carrying out environmental restoration and waste management 
     activities necessary for national security programs, 
     $982,000,000.
       (3) For defense facilities closure projects, 
     $1,109,314,000.
       (4) For defense environmental management privatization, 
     $158,399,000.
       (b) Authorization of New Plant Projects.--From funds 
     referred to in subsection (a) that are available for carrying 
     out plant projects, the Secretary of Energy may carry out new 
     plant projects as follows:
       (1) For environmental restoration and waste management 
     activities, the following new plant project:
       Project 03-D-403, immobilized high-level waste interim 
     storage facility, Richland, Washington, $6,363,000.
       (2) For defense environmental management cleanup reform, 
     the following new plant project:
       Project 03-D-414, project engineering and design, various 
     locations, $8,800,000.

     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 $462,664,000.

     SEC. 3104. DEFENSE NUCLEAR WASTE DISPOSAL.

       Funds are hereby authorized to be appropriated to the 
     Department of Energy for fiscal year 2003 for defense nuclear 
     waste disposal 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 $315,000,000.
   Subtitle B--Program Authorizations, Restrictions, and Limitations

     SEC. 3141. ANNUAL ASSESSMENTS AND REPORTS TO THE PRESIDENT 
                   AND CONGRESS REGARDING THE CONDITION OF THE 
                   UNITED STATES NUCLEAR WEAPONS STOCKPILE.

       (a) Annual Assessments Required.--For each nuclear weapon 
     type in the stockpile of the United States, each official 
     specified in subsection (b) on an annual basis shall, to the 
     extent such official is directly responsible for the safety, 
     reliability, performance, or military effectiveness of that 
     nuclear weapon type, complete an assessment of the safety, 
     reliability, performance, or military effectiveness (as the 
     case may be) of that nuclear weapon type.
       (b) Covered Officials.--The officials referred to in 
     subsection (a) are the following:
       (1) The head of each national security laboratory.
       (2) The commander of the United States Strategic Command.
       (c) Use of Teams of Experts for Assessments.--The head of 
     each national security laboratory shall establish and use one 
     or more teams of experts, known as ``red teams'', to assist 
     in the assessments required by subsection (a). Each such team 
     shall include experts from both of the other national 
     security laboratories. Each such team for a national security 
     laboratory shall--
       (1) review the matters covered by the assessments under 
     subsection (a) performed by the head of that laboratory;
       (2) subject such matters to challenge; and
       (3) submit the results of such review and challenge, 
     together with the findings and recommendations of such team 
     with respect to such review and challenge, to the head of 
     that laboratory.
       (d) Report on Assessments.--Not later than December 1 of 
     each year, each official specified in subsection (b) shall 
     submit to the Secretary concerned, and to the Nuclear Weapons 
     Council, a report on the assessments that such official was 
     required by subsection (a) to complete. The report shall 
     include the following:
       (1) The results of each such assessment.
       (2)(A) Such official's determination as to whether or not 
     one or more underground nuclear tests are necessary to 
     resolve any issues identified in the assessments and, if so--
       (i) an identification of the specific underground nuclear 
     tests that are necessary to resolve such issues; and
       (ii) a discussion of why options other than an underground 
     nuclear test are not available or would not resolve such 
     issues.
       (B) An identification of the specific underground nuclear 
     tests which, while not necessary, might have value in 
     resolving any such issues and a discussion of the anticipated 
     value of conducting such tests.
       (C) Such official's determination as to the readiness of 
     the United States to conduct the underground nuclear tests 
     identified under subparagraphs (A)(i) and (B), if directed by 
     the President to do so.
       (3) In the case of a report submitted by the head of a 
     national security laboratory--
       (A) a concise statement regarding the adequacy of the 
     science-based tools and methods being used to determine the 
     matters covered by the assessments;
       (B) a concise statement regarding the adequacy of the tools 
     and methods employed by the manufacturing infrastructure 
     required by section 3137 of the National Defense 
     Authorization Act for Fiscal Year 1996 (42 U.S.C. 2121 note) 
     to identify and fix any inadequacy with respect to the 
     matters covered by the assessments; and
       (C) a concise summary of the findings and recommendations 
     of any teams under subsection (c) that relate to the 
     assessments, together with a discussion of those findings and 
     recommendations.
       (4) In the case of a report submitted by the Commander of 
     the United States Strategic Command, a discussion of the 
     relative merits of other nuclear weapon types (if any), or 
     compensatory measures (if any) that could be taken, that 
     could enable accomplishment of the missions of the nuclear 
     weapon types to which the assessments relate, should such 
     assessments identify any deficiency with respect to such 
     nuclear weapon types.
       (5) An identification and discussion of any matter having 
     an adverse effect on the capability of the official 
     submitting the report to accurately determine the matters 
     covered by the assessments.
       (e) Submittals to the President and Congress.--(1) Not 
     later than March 1 of each year, the Secretary of Defense and 
     the Secretary of Energy shall submit to the President--
       (A) each report, without change, submitted to either 
     Secretary under subsection (d) during the preceding year;
       (B) any comments that the Secretaries individually or 
     jointly consider appropriate with respect to each such 
     report;
       (C) the conclusions that the Secretaries individually or 
     jointly reach as to the safety, reliability, performance, and 
     military effectiveness of the nuclear weapons stockpile of 
     the United States; and
       (D) any other information that the Secretaries individually 
     or jointly consider appropriate.
       (2) Not later than March 15 of each year, the President 
     shall forward to Congress the matters received by the 
     President under paragraph (1) for that year, together with 
     any comments the President considers appropriate.
       (f) Classified Form.--Each submittal under subsection (e) 
     shall be in classified form only, with the classification 
     level required for each portion of such submittal marked 
     appropriately.
       (g) Definitions.--In this section:
       (1) The term ``national security laboratory'' has the 
     meaning given such term in section 3281 of the National 
     Nuclear Security Administration Act (50 U.S.C. 2471).
       (2) The term ``Secretary concerned'' means--
       (A) the Secretary of Energy, with respect to matters 
     concerning the Department of Energy; and
       (B) the Secretary of Defense, with respect to matters 
     concerning the Department of Defense.
       (h) First Submissions.--(1) The first submissions made 
     under subsection (d) shall be the submissions required to be 
     made in 2003.
       (2) The first submissions made under subsection (e) shall 
     be the submissions required to be made in 2004.

     SEC. 3142. PLANS FOR ACHIEVING ENHANCED READINESS POSTURE FOR 
                   RESUMPTION BY THE UNITED STATES OF UNDERGROUND 
                   NUCLEAR WEAPONS TESTS.

       (a) Plans Required.--The Secretary of Energy, in 
     consultation with the Administrator for Nuclear Security, 
     shall prepare plans for achieving, not later than one year 
     after the date on which the plans are submitted under 
     subsection (c), readiness postures of six months, 12 months, 
     18 months, and 24 months for resumption by the United States 
     of underground nuclear weapons tests.
       (b) Readiness Posture.--For purposes of this section, a 
     readiness posture of a specified number of months for 
     resumption by the United States of underground nuclear 
     weapons tests is achieved when the Department of Energy has 
     the capability to resume such tests, if directed by the 
     President to resume such tests, not later than the specified 
     number of months after the date on which the President so 
     directs.
       (c) Report.--The Secretary shall include with the budget 
     justification materials submitted to Congress in support of 
     the Department of Energy budget for fiscal year 2004 (as 
     submitted with the budget of the President under section 
     1105(a) of title 31, United States Code) a report on the 
     plans required by subsection (a). The report shall include--
       (1) an assessment of the current readiness posture for 
     resumption by the United States of underground nuclear 
     weapons tests;

[[Page H8175]]

       (2) the plans required by subsection (a) and, for each such 
     plan, the estimated cost for implementing such plan and an 
     estimate of the annual cost of maintaining the readiness 
     posture to which the plan relates; and
       (3) the recommendation of the Secretary, developed in 
     consultation with the Secretary of Defense, as to the optimal 
     readiness posture for resumption by the United States of 
     underground nuclear weapons tests, including the basis for 
     that recommendation.

     SEC. 3143. 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 single 
     dedicated line item for all such activities for new nuclear 
     weapons or modified nuclear weapons that are in phase 1, 2, 
     or 2A or phase 6.1, 6.2, or 6.2A (as the case may be), or any 
     concept work prior to phase 1 or 6.1 (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.--Subsection (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) 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 that are 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. 3144. 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(a)(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. 3145. DEFENSE ENVIRONMENTAL MANAGEMENT CLEANUP REFORM 
                   PROGRAM.

       (a) Program Required.--From funds made available pursuant 
     to section 3102(a)(2) for defense environmental management 
     cleanup reform, the Secretary of Energy shall carry out a 
     program to reform DOE environmental management activities. In 
     carrying out the program, the Secretary shall allocate, to 
     each site for which the Secretary has submitted to the 
     congressional defense committees a site performance 
     management plan, the amount of those funds that such plan 
     requires.
       (b) Transfer and Merger of Funds.--(1) Funds so allocated 
     shall, notwithstanding section 3624, be transferred to the 
     account for DOE environmental management activities and, 
     subject to paragraph (2) and subsection (c), shall be merged 
     with and be available for the same purposes and for the same 
     period as the funds available in such account. The authority 
     provided by section 3629 shall apply to funds so transferred.
       (2) No funds so allocated may be obligated or expended 
     until 30 days after the Secretary submits to the 
     congressional defense committees a description of the 
     activities to be carried out at each site to which funds are 
     so allocated.
       (c) Limitation on Use of All Merged Funds.--Upon a transfer 
     and merger of funds under subsection (b), all funds in the 
     merged account that are available with respect to the site 
     may be used only to carry out the site performance management 
     plan for the site.
       (d) Site Performance Management Plan Defined.--For purposes 
     of this section, a site performance management plan for a 
     site is a plan, agreed to by the applicable Federal and State 
     agencies with regulatory jurisdiction with respect to the 
     site, for the performance of activities to accelerate the 
     reduction of environmental risk in connection with, and to 
     accelerate the environmental cleanup of, the site.
       (e) DOE Environmental Management Activities Defined.--For 
     purposes of this section, the term ``DOE environmental 
     management activities'' means environmental restoration and 
     waste management activities of the Department of Energy in 
     carrying out programs necessary for national security.

     SEC. 3146. LIMITATION ON OBLIGATION OF FUNDS FOR ROBUST 
                   NUCLEAR EARTH PENETRATOR PROGRAM PENDING 
                   SUBMISSION OF REPORT.

       (a) Report-and-Wait Requirement.--None of the funds made 
     available to the Secretary of Energy for fiscal year 2003 for 
     the Robust Nuclear Earth Penetrator program may be obligated 
     until--
       (1) the Secretary of Defense submits to the Committees on 
     Armed Services of the Senate and House of Representatives a 
     report described in subsection (b); and
       (2) a period of 30 days has passed after such report is 
     received by those committees.
       (b) Report.--A report under subsection (a)(1) is a report 
     on the Robust Nuclear Earth Penetrator program, prepared by 
     the Secretary of Defense in consultation with the Secretary 
     of Energy, that sets forth the following:
       (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.
       (4) An assessment of the ability of conventional weapons to 
     defeat the same categories and types of targets as are 
     described pursuant to paragraph (3).
                   Subtitle C--Proliferation Matters

     SEC. 3151. TRANSFER TO NATIONAL NUCLEAR SECURITY 
                   ADMINISTRATION OF DEPARTMENT OF DEFENSE'S 
                   COOPERATIVE THREAT REDUCTION PROGRAM RELATING 
                   TO ELIMINATION OF WEAPONS GRADE PLUTONIUM 
                   PRODUCTION IN RUSSIA.

       (a) Transfer of Program.--There are hereby transferred to 
     the Administrator for Nuclear Security the following:
       (1) The program, within the Cooperative Threat Reduction 
     program of the Department of Defense, relating to the 
     elimination of weapons grade plutonium production in Russia.
       (2) All functions, powers, duties, and activities of that 
     program performed before the date of the enactment of this 
     Act by the Department of Defense.
       (b) Transfer of Assets.--(1) Notwithstanding any 
     restriction or limitation in law on the availability of 
     Cooperative Threat Reduction funds specified in paragraph 
     (2), so much of the property, records, and unexpended 
     balances of appropriations, allocations, and other funds 
     employed, used, held, available, or to be made available in 
     connection with the program transferred by subsection (a) are 
     transferred to the Administrator for use in connection with 
     the program transferred.
       (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; 22 
     U.S.C. 5959 note).
       (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

[[Page H8176]]

     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, provided that such upgrades do not extend the life 
     of those plants.
       (2) Amounts available under paragraph (1) for activities 
     referred to in that paragraph shall remain available for 
     obligation for three fiscal years.
       (d) Limitation.--(1) Of the amounts authorized to be 
     appropriated by this title or any other Act for the program 
     referred to in subsection (a), the Administrator for Nuclear 
     Security may not obligate any funds for construction, or 
     obligate or expend more than $100,000,000 for that program, 
     until 30 days after the later of--
       (A) the date on which the Administrator submits to the 
     congressional defense committees, the Committee on 
     International Relations of the House of Representatives, and 
     the Committee on Foreign Relations of the Senate, a copy of 
     an agreement or agreements entered into between the United 
     States Government and the Government of the Russian 
     Federation to shut down the three plutonium-producing 
     reactors in Russia as specified under paragraph (2); and
       (B) the date on which the Administrator submits to the 
     committees specified in subparagraph (A) a report on a plan 
     to achieve international participation in the program 
     referred to in subsection (a), including cost sharing.
       (2) The agreement (or agreements) under paragraph (1)(A) 
     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 shutdown of such reactor by the date specified 
     under subparagraph (B);
       (D) a schedule and milestones for refurbishment or 
     construction of fossil fuel energy plants to be undertaken by 
     the Government of the Russian Federation in support of the 
     program;
       (E) an arrangement for access to sites and facilities 
     necessary to meet such schedules and milestones;
       (F) an arrangement for audit and examination procedures in 
     order to evaluate progress in meeting such schedules and 
     milestones; and
       (G) any cost sharing arrangements between the United States 
     Government and the Government of the Russian Federation in 
     undertaking activities under such agreement (or agreements).

     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; 22 U.S.C. 5952 note) 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 amendments made by subsection 
     (a) may not be construed as modifying the designation of the 
     President titled ``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 
     (title XIV of the National Defense Authorization Act for 
     Fiscal Year 1997).

     SEC. 3155. COOPERATIVE PROGRAM ON RESEARCH, DEVELOPMENT, AND 
                   DEMONSTRATION OF TECHNOLOGY REGARDING NUCLEAR 
                   OR RADIOLOGICAL TERRORISM.

       (a) Program Required.--The Administrator for Nuclear 
     Security shall carry out with the Russian Federation a 
     cooperative program on the research, development, and 
     demonstration of technologies for protection from and 
     response to nuclear or radiological terrorism.
       (b) Program Elements.--In carrying out the program required 
     by subsection (a), the Administrator shall--
       (1) conduct research and development of technology for 
     protection from nuclear or radiological terrorism, including 
     technology for the detection, identification, assessment, 
     control, and disposition of radiological materials that could 
     be used for nuclear terrorism; and
       (2) provide, where feasible, for the demonstration to other 
     countries of technologies or methodologies on matters 
     relating to nuclear or radiological terrorism, including--
       (A) the demonstration of technologies developed under the 
     program to respond to nuclear or radiological terrorism;
       (B) the demonstration of technologies developed under the 
     program for the disposal of radioactive materials;
       (C) the demonstration of methodologies developed under the 
     program for use in evaluating the radiological threat of 
     radiological sources identified as not under current 
     accounting programs in the audit report of the Inspector 
     General of the Department of Energy titled ``Accounting for 
     Sealed Sources of Nuclear Material Provided to Foreign 
     Countries'' (DOE/IG-0546);
       (D) in coordination with the Nuclear Regulatory Commission, 
     the demonstration of methodologies developed under the 
     program to facilitate the development of a regulatory 
     framework for licensing and controlling radioactive sources; 
     and
       (E) in coordination with the Office of Environment, Safety, 
     and Health of the Department of Energy, the demonstration of 
     methodologies developed under the program to facilitate 
     development of consistent criteria for screening 
     international transfers of radiological materials.
       (c) Consultation.--In carrying out activities in accordance 
     with subsection (b)(2), the Administrator shall consult 
     with--
       (1) the Secretary of Defense, Secretary of State, and 
     Secretary of Commerce; and
       (2) the International Atomic Energy Agency.
       (d) Amount for Activities.--Of the amount authorized to be 
     appropriated by section 3101(a)(2) for the Department of 
     Energy for the National Nuclear Security Administration for 
     defense nuclear nonproliferation, up to $15,000,000 may be 
     available for carrying out this section.

     SEC. 3156. MATTERS RELATING TO THE INTERNATIONAL MATERIALS 
                   PROTECTION, CONTROL, AND ACCOUNTING PROGRAM OF 
                   THE DEPARTMENT OF ENERGY.

       (a) Radiological Dispersal Device Materials Protection, 
     Control, and Accounting.--The Secretary of Energy may 
     establish within the International Materials Protection, 
     Control, and Accounting program of the Department of Energy a 
     program on the protection, control, and accounting of 
     materials usable in radiological dispersal devices. In 
     establishing such program, the Secretary shall--
       (1) identify the sites and radiological materials to be 
     covered by such program;
       (2) carry out a risk assessment of such radiological 
     materials; and
       (3) identify and establish the costs of and schedules for 
     such program.
       (b) Revised Focus for Materials Protection, Control, and 
     Accounting Program of Russian Federation.--(1) The Secretary 
     of Energy shall work cooperatively with the Russian 
     Federation to develop, as soon as practicable but not 
     later than January 1, 2013, 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.
       (2) 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.
       (c) Amount for Activities.--Of the amount authorized to be 
     appropriated by section 3101(a)(2) for the Department of 
     Energy for the National Nuclear Security Administration for 
     defense nuclear nonproliferation, up to $5,000,000 may be 
     available for carrying out this section.

     SEC. 3157. ACCELERATED DISPOSITION OF HIGHLY ENRICHED 
                   URANIUM.

       (a) Program on Accelerated Disposition of HEU Authorized.--
     (1) The Secretary of Energy may carry out a program to pursue 
     with the Russian Federation options for blending highly 
     enriched 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.
       (3) Any site selected for the storage of uranium or blended 
     material under paragraph (2)(B) shall undergo complete 
     materials protection, control, and accounting upgrades before 
     the commencement of the storage of uranium or blended 
     material at such site under the program.
       (b) Construction With HEU Disposition Agreement.--Nothing 
     in this section may be construed as terminating, modifying, 
     or otherwise affecting 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

[[Page H8177]]

     Weapons, signed at Washington on February 18, 1993.
       (c) 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, conversion, and enrichment 
     industry in the United States.
       (d) Amount for Activities.--Of the amount to be 
     appropriated by section 3101(a)(2) for the Department of 
     Energy for the National Nuclear Security Administration for 
     defense nuclear nonproliferation, up to $10,000,000 may be 
     available for carrying out this section.

     SEC. 3158. STRENGTHENED INTERNATIONAL SECURITY FOR NUCLEAR 
                   MATERIALS AND SECURITY OF NUCLEAR OPERATIONS.

       (a) Report on Options for International Program To 
     Strengthen Security.--(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 
     nuclear reactors and associated materials outside the United 
     States.
       (2) 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 reactors outside 
     the United States.
       (b) Joint Programs With Russia on Proliferation-Resistant 
     Nuclear Energy Technologies.--(1) The Secretary shall 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.
       (2) Of the amount authorized to be appropriated by section 
     3101(a)(2) for the Department of Energy for the National 
     Nuclear Security Administration for defense nuclear 
     nonproliferation, up to $10,000,000 may be available for 
     carrying out the joint programs referred to in paragraph (1).
       (c) Assistance Regarding Hostile Insiders.--The Secretary 
     may, utilizing appropriate expertise of the Department of 
     Energy and the Nuclear Regulatory Commission, provide 
     technical assistance to nuclear reactor facilities outside 
     the United States with respect to the interdiction of hostile 
     insiders at such facilities in order to prevent incidents 
     arising from the disablement of the vital systems of such 
     facilities.

     SEC. 3159. EXPORT CONTROL PROGRAMS.

       (a) Authority To Pursue Options for Strengthening Export 
     Control Programs.--The Secretary of Energy, in coordination 
     with the Secretary of State, may pursue in the region of the 
     former Soviet Union and other regions of concern options for 
     accelerating programs that assist the 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 3101(a)(2) for the Department of 
     Energy for the National Nuclear Security Administration for 
     defense nuclear nonproliferation, up to $5,000,000 may be 
     available for carrying out this section.

     SEC. 3160. PLAN FOR ACCELERATED RETURN OF WEAPONS-USABLE 
                   NUCLEAR MATERIALS.

       (a) Plan for Accelerated Return.--The Secretary of Energy 
     shall work with the Russian Federation to develop a plan to 
     accelerate the return to Russia of all weapons-usable nuclear 
     materials located in research reactors and other facilities 
     outside Russia that were supplied by the former Soviet Union.
       (b) Funding and Schedules.--As part of the plan under 
     subsection (a), the Secretary shall identify the funding and 
     schedules required to assist the research reactors and 
     facilities referred to in that subsection in--
       (1) transferring highly enriched uranium to Russia; and
       (2) upgrading the materials protection, control, and 
     accounting procedures at such research reactors and 
     facilities until the weapons-usable nuclear materials in such 
     reactors and facilities are returned in accordance with that 
     subsection.
       (c) Coordination.--The provision of assistance under 
     subsection (b) shall be closely coordinated with the 
     International Atomic Energy Agency.

     SEC. 3161. SENSE OF CONGRESS ON AMENDMENT OF CONVENTION ON 
                   PHYSICAL PROTECTION OF NUCLEAR MATERIALS.

       (a) Sense of Congress.--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--
       (1) apply to both the domestic and international use and 
     transport of nuclear materials;
       (2) incorporate fundamental practices for the physical 
     protection of such materials; and
       (3) address protection against sabotage involving nuclear 
     materials.
       (b) Convention on the Physical Protection of Nuclear 
     Material Defined.--In this section, 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.

     SEC. 3162. SENSE OF CONGRESS ON PROGRAM TO SECURE STOCKPILES 
                   OF HIGHLY ENRICHED URANIUM AND PLUTONIUM.

       It is the sense of Congress that the Secretary of Energy 
     should, in consultation with the Secretary of State and 
     Secretary of Defense, 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).
                       Subtitle D--Other Matters

     SEC. 3171. INDEMNIFICATION OF DEPARTMENT OF ENERGY 
                   CONTRACTORS.

       Section 170 d.(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 December 31, 2004,''.

     SEC. 3172. 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 as 
     described in 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 2005.--Subject 
     to the availability of appropriations, the Secretary may 
     provide for a contract extension through fiscal year 2005 
     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.
       (d) Report.--(1) The Secretary of Energy, in consultation 
     with the Administrator for Nuclear Security, shall conduct a 
     study of options for funding the contract extension 
     authorized by subsection (b) of such section 3136 (as amended 
     by subsection (c)) other than through annual appropriations. 
     The study should also include options for providing cost of 
     living adjustments to teachers in the public schools in the 
     vicinity of Los Alamos National Laboratory, New Mexico, other 
     than through such contract extension.
       (2) Not later than December 31, 2003, the Secretary shall 
     submit to the congressional defense committees a report on 
     the study conducted under paragraph (1). The report shall set 
     forth the findings and conclusions of the study, together 
     with any recommendations as a result of the study.

     SEC. 3173. WORKER HEALTH AND SAFETY RULES FOR DEPARTMENT OF 
                   ENERGY NUCLEAR FACILITIES.

       (a) Worker Health and Safety Rules.--The Atomic Energy Act 
     of 1954 is amended by inserting after section 234B (42 U.S.C. 
     2282b) the following new section:

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

       ``a. Regulations Required.--
       ``(1) In general.--The Secretary shall promulgate 
     regulations for industrial and construction health and safety 
     at Department of Energy facilities that are operated by 
     contractors covered by agreements of indemnification under 
     section 170 d. of the Atomic Energy Act of 1954, after public 
     notice and opportunity for comment under section 553 of title 
     5, United States Code (commonly known as the `Administrative 
     Procedure Act'). Such regulations shall, subject to paragraph 
     (3), provide a level of protection for workers at such 
     facilities that is substantially equivalent to the level of 
     protection currently provided to such workers at such 
     facilities.
       ``(2) Applicability.--The regulations promulgated under 
     paragraph (1) shall not apply to any facility that is a 
     component of, or any activity conducted under, the Naval 
     Nuclear Propulsion Program provided for under Executive Order 
     No. 12344, dated February 1, 1982 (42 U.S.C. 7158 note) (as 
     in force pursuant to section 1634 of the Department of 
     Defense Authorization Act, 1985 (Public Law 98-525; 42 U.S.C. 
     7158 note)).
       ``(3) Flexibility.--In promulgating the regulations under 
     paragraph (1), the Secretary shall include flexibility--
       ``(A) to tailor implementation of such regulations to 
     reflect activities and hazards associated with a particular 
     work environment;
       ``(B) to take into account special circumstances at a 
     facility that is, or is expected to be, permanently closed 
     and that is expected to be demolished, or title to which is 
     expected to be transferred to another entity for reuse; and
       ``(C) to achieve national security missions of the 
     Department of Energy in an efficient and timely manner.
       ``(4) No effect on health and safety enforcement.--This 
     subsection does not diminish or otherwise affect the 
     enforcement or the application of any other law, regulation, 
     order, or contractual obligation relating to worker health 
     and safety.
       ``b. Civil Penalties.--
       ``(1) In general.--A person (or any subcontractor or 
     supplier of the person) who has entered into an agreement of 
     indemnification

[[Page H8178]]

     under section 170 d. (or any subcontractor or supplier of the 
     person) that violates (or is the employer of a person that 
     violates) any regulation promulgated under subsection a. 
     shall be subject to a civil penalty of not more than $70,000 
     for each such violation.
       ``(2) 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 paragraph (1).
       ``c. Contract Penalties.--
       ``(1) In general.--The Secretary shall include in each 
     contract with a contractor of the Department who has entered 
     into an agreement of indemnification under section 170 d. 
     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 promulgated under subsection a.
       ``(2) Contents.--The provisions shall specify various 
     degrees of violations and the amount of the reduction 
     attributable to each degree of violation.
       ``d. Coordination of Penalties.--
       ``(1) Choice of penalties.--For any violation by a person 
     of a regulation promulgated under subsection a., the 
     Secretary shall pursue either civil penalties under 
     subsection b. or contract penalties under subsection c., but 
     not both.
       ``(2) Maximum amount.--In the case of an entity described 
     in subsection d. of section 234A, the total amount of civil 
     penalties under subsection b. and contract penalties under 
     subsection c. 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.
       ``(3) Coordination with section 234a.--The Secretary shall 
     ensure that a contractor of the Department is not penalized 
     both under this section and under section 234A for the same 
     violation.''.
       (b) Promulgation of Initial Regulations.--
       (1) Deadline for promulgating regulations.--The Secretary 
     of Energy shall promulgate the regulations required by 
     subsection a. of section 234C of the Atomic Energy Act of 
     1954 (as added by subsection (a)) not later than one year 
     after the date of the enactment of this Act.
       (2) Effective date.--The regulations promulgated under 
     paragraph (1) shall take effect on the date that is one year 
     after the promulgation date of the regulations.
       (c) Prohibition.--The Secretary of Energy shall not 
     participate in or otherwise support any study or other 
     project relating to a modification in the scope of the 
     regulations enforceable by civil penalties under section 234A 
     or 234C of the Atomic Energy Act of 1954, or the 
     responsibility of the Secretary to implement and enforce such 
     regulations, until after the date on which the regulations 
     for such purposes under such section 234C take effect in 
     accordance with subsection (b).

     SEC. 3174. EXTENSION OF AUTHORITY TO APPOINT CERTAIN 
                   SCIENTIFIC, ENGINEERING, AND TECHNICAL 
                   PERSONNEL.

       Section 3161(c)(1) of the National Defense Authorization 
     Act for Fiscal Year 1995 (42 U.S.C. 7231 note) is amended by 
     striking ``September 30, 2002'' and inserting ``September 30, 
     2004''.

     SEC. 3175. ONE-YEAR EXTENSION OF PANEL TO ASSESS THE 
                   RELIABILITY, SAFETY, AND SECURITY OF THE UNITED 
                   STATES NUCLEAR STOCKPILE.

       Section 3159 of the Strom Thurmond National Defense 
     Authorization Act for Fiscal Year 1999 (42 U.S.C. 2121 note) 
     is amended--
       (1) in subsection (f), by striking ``atomic energy defense 
     activities'' and inserting ``the National Nuclear Security 
     Administration'';
       (2) in subsection (g), by striking ``three years'' and all 
     that follows through the period at the end and inserting 
     ``April 1, 2003.''; and
       (3) by adding at the end the following new subsection:
       ``(i) Follow-Up Report.--Not later than February 1, 2003, 
     the panel shall submit to the Committee on Armed Services of 
     the Senate and the Committee on Armed Services of the House 
     of Representatives a follow-up report assessing progress 
     toward meeting the expectations set forth by the panel for 
     the United States stockpile stewardship program, and making 
     recommendations for corrective legislative action where 
     progress has been unsatisfactory.''.

     SEC. 3176. REPORT ON STATUS OF ENVIRONMENTAL MANAGEMENT 
                   INITIATIVES TO ACCELERATE THE REDUCTION OF 
                   ENVIRONMENTAL RISKS AND CHALLENGES POSED BY THE 
                   LEGACY OF THE COLD WAR.

       (a) Report Required.--The Secretary of Energy shall prepare 
     a report on the status of those environmental management 
     initiatives specified in subsection (c) that are being 
     undertaken to accelerate the reduction of the environmental 
     risks and challenges that, as a result of the legacy of the 
     Cold War, are faced by the Department of Energy, contractors 
     of the Department, and applicable Federal and State agencies 
     with regulatory jurisdiction.
       (b) Contents.--The report shall include the following 
     matters:
       (1) A discussion of the progress made in reducing such 
     risks and challenges in each of the following areas:
       (A) Acquisition strategy and contract management.
       (B) Regulatory agreements.
       (C) Interim storage and final disposal of high-level waste, 
     spent nuclear fuel, transuranic waste, and low-level waste.
       (D) Closure and transfer of environmental remediation 
     sites.
       (E) Achievements in innovation by contractors of the 
     Department with respect to accelerated risk reduction and 
     cleanup.
       (F) Consolidation of special nuclear materials and 
     improvements in safeguards and security.
       (2) An assessment of the progress made in streamlining risk 
     reduction processes of the environmental management program 
     of the Department.
       (3) An assessment of the progress made in improving the 
     responsiveness and effectiveness of the environmental 
     management program of the Department.
       (4) Any proposals for legislation that the Secretary 
     considers necessary to carry out such initiatives, including 
     the justification for each such proposal.
       (c) Initiatives Covered.--The environmental management 
     initiatives referred to in subsection (a) are the initiatives 
     arising out of the report titled ``Top-to-Bottom Review of 
     the Environmental Management Program'' and dated February 4, 
     2002, with respect to the environmental restoration and waste 
     management activities of the Department of Energy in carrying 
     out programs necessary for national security.
       (d) Submission of Report.--On the date on which the budget 
     justification materials in support of the Department of 
     Energy budget for fiscal year 2004 (as submitted with the 
     budget of the President under section 1105(a) of title 31, 
     United States Code) are submitted to Congress, the Secretary 
     shall submit to the congressional defense committees the 
     report required by subsection (a).
Subtitle E--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) Each report under subparagraph (A) for years after 2017 
     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.

[[Page H8179]]

       (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.
       (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, from funds available to the Secretary, 
     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, not to 
     exceed $100,000,000 per year, until the later of--
       (A) the date on which the MOX production objective is 
     achieved in such year; or
       (B) the date on which 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, as of January 1, 2017, the MOX facility has not 
     processed mixed-oxide fuel from defense plutonium and defense 
     plutonium materials in the amount of not less than--
       (i) one metric ton, in each of any two consecutive calendar 
     years; and
       (ii) three metric tons total,
     the Secretary shall, from funds available to the Secretary, 
     pay to the State of South Carolina for economic and impact 
     assistance an amount equal to $1,000,000 per day, not to 
     exceed $100,000,000 per year, until the removal by the 
     Secretary from the State of South Carolina of 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) 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 the 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 the 
     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 proposals as the Defense Nuclear 
     Facilities Safety Board considers appropriate to enhance the 
     safety, reliability, and functionality of KAMS.
       (d) Reports on Actions on Proposals.--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 proposals, if any, included in the report.
          TITLE XXXII--DEFENSE NUCLEAR FACILITIES SAFETY BOARD
Sec. 3201. Authorization.

     SEC. 3201. AUTHORIZATION.

       There are authorized to be appropriated for fiscal year 
     2003, $19,000,000 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.).
                TITLE XXXIII--NATIONAL DEFENSE STOCKPILE
Sec. 3301. Authorized uses of National Defense Stockpile funds.

     SEC. 3301. AUTHORIZED USES OF NATIONAL DEFENSE STOCKPILE 
                   FUNDS.

       (a) Obligation of Stockpile Funds.--During fiscal year 
     2003, the National Defense Stockpile Manager may obligate up 
     to $76,400,000 of the funds in the National Defense Stockpile 
     Transaction Fund established under subsection (a) of section 
     9 of the Strategic and Critical Materials Stock Piling Act 
     (50 U.S.C. 98h) for the authorized uses of such funds under 
     subsection (b)(2) of such section, including the disposal of 
     hazardous materials that are environmentally sensitive.
       (b) Additional Obligations.--The National Defense Stockpile 
     Manager may obligate amounts in excess of the amount 
     specified in subsection (a) if the National Defense Stockpile 
     Manager notifies Congress that extraordinary or emergency 
     conditions necessitate the additional obligations. The 
     National Defense Stockpile Manager may make the additional 
     obligations described in the notification after the end of 
     the 45-day period beginning on the date on which Congress 
     receives the notification.
       (c) Limitations.--The authorities provided by this section 
     shall be subject to such limitations as may be provided in 
     appropriations Acts.
                 TITLE XXXIV--NAVAL PETROLEUM RESERVES

Sec. 3401. Authorization of appropriations.

     SEC. 3401. AUTHORIZATION OF APPROPRIATIONS.

       (a) Amount.--There are hereby authorized to be appropriated 
     to the Secretary of Energy $21,069,000 for fiscal year 2003 
     for the purpose of carrying out activities under chapter 641 
     of title 10, United States Code, relating to the naval 
     petroleum reserves.

[[Page H8180]]

       (b) Period of Availability.--Funds appropriated pursuant to 
     the authorization of appropriations in subsection (a) shall 
     remain available until expended.
                  TITLE XXXV--MARITIME ADMINISTRATION
Sec. 3501. Authorization of appropriations for fiscal year 2003.
Sec. 3502. Authority to convey vessel USS SPHINX (ARL-24).
Sec. 3503. Independent analysis of title XI insurance guarantee 
              applications.
Sec. 3504. Preparation as artificial reefs and scrapping of obsolete 
              vessels.

     SEC. 3501. AUTHORIZATION OF APPROPRIATIONS FOR FISCAL YEAR 
                   2003.

       Funds are hereby authorized to be appropriated for fiscal 
     year 2003, to be available without fiscal year limitation if 
     so provided in appropriations Acts, for the use of the 
     Department of Transportation for the Maritime Administration 
     as follows:
       (1) For expenses necessary for operations and training 
     activities, $93,132,000.
       (2) For expenses under the loan guarantee program 
     authorized by title XI of the Merchant Marine Act, 1936 (46 
     App. U.S.C. 1271 et seq.), $54,126,000, of which--
       (A) $50,000,000 is for the cost (as defined in section 
     502(5) of the Federal Credit Reform Act of 1990 (2 U.S.C. 
     661a(5))) of loan guarantees under the program; and
       (B) $4,126,000 is for administrative expenses related to 
     loan guarantee commitments under the program.
       (3) For expenses to dispose of obsolete vessels in the 
     National Defense Reserve Fleet, including provision of 
     assistance under section 7 of Public Law 92-402 (as amended 
     by this title), $20,000,000.

     SEC. 3502. AUTHORITY TO CONVEY VESSEL USS SPHINX (ARL-24).

       (a) In General.--Notwithstanding any other law, the 
     Secretary of Transportation may convey the right, title, and 
     interest of the United States Government in and to the vessel 
     USS SPHINX (ARL-24), to the Dunkirk Historical Lighthouse and 
     Veterans Park Museum (a not-for-profit corporation, in this 
     section referred to as the ``recipient'') for use as a 
     military museum, if--
       (1) the recipient agrees to use the vessel as a nonprofit 
     military museum;
       (2) the vessel is not used for commercial transportation 
     purposes;
       (3) the recipient agrees to make the vessel available to 
     the Government when the Secretary requires use of the vessel 
     by the Government;
       (4) the recipient agrees that when the recipient no longer 
     requires the vessel for use as a military museum--
       (A) the recipient will, at the discretion of the Secretary, 
     reconvey the vessel to the Government in good condition 
     except for ordinary wear and tear; or
       (B) if the Board of Trustees of the recipient has decided 
     to dissolve the recipient according to the laws of the State 
     of New York, then--
       (i) the recipient shall distribute the vessel, as an asset 
     of the recipient, to a person that has been determined exempt 
     from taxation under the provisions of section 501(c)(3) of 
     the Internal Revenue Code, or to the Federal Government or a 
     State or local government for a public purpose; and
       (ii) the vessel shall be disposed of by a court of 
     competent jurisdiction of the county in which the principal 
     office of the recipient is located, for such purposes as the 
     court shall determine, or to such organizations as the court 
     shall determine are organized exclusively for public 
     purposes;
       (5) the recipient agrees to hold the Government harmless 
     for any claims arising from exposure to asbestos, 
     polychlorinated biphenyls, or lead paint after conveyance of 
     the vessel, except for claims arising from use by the 
     Government under paragraph (3) or (4); and
       (6) the recipient has available, for use to restore the 
     vessel, in the form of cash, liquid assets, or a written loan 
     commitment, financial resources of at least $100,000.
       (b) Delivery of Vessel.--If a conveyance is made under this 
     section, the Secretary shall deliver the vessel at the place 
     where the vessel is located on the date of enactment of this 
     Act, in its present condition, and without cost to the 
     Government.
       (c) Other Unneeded Equipment.--The Secretary may also 
     convey any unneeded equipment from other vessels in the 
     National Defense Reserve Fleet in order to restore the USS 
     SPHINX (ARL-24) to museum quality.
       (d) Retention of Vessel in NDRF.--The Secretary shall 
     retain in the National Defense Reserve Fleet the vessel 
     authorized to be conveyed under subsection (a), until the 
     earlier of--
       (1) 2 years after the date of the enactment of this Act; or
       (2) the date of conveyance of the vessel under subsection 
     (a).

     SEC. 3503. INDEPENDENT ANALYSIS OF TITLE XI INSURANCE 
                   GUARANTEE APPLICATIONS.

       Section 1104A of the Merchant Marine Act, 1936 (46 App. 
     U.S.C. 1274) is amended--
       (1) by adding at the end of subsection (d) the following:
       ``(4) The Secretary may obtain independent analysis of an 
     application for a guarantee or commitment to guarantee under 
     this title.''; and
       (2) in subsection (f) by inserting ``(including for 
     obtaining independent analysis under subsection (d)(4))'' 
     after ``applications for a guarantee''.

     SEC. 3504. PREPARATION AS ARTIFICIAL REEFS AND SCRAPPING OF 
                   OBSOLETE VESSELS.

       (a) Financial Assistance to States for Preparation of 
     Transferred Obsolete Ships for Use as Artificial Reefs.--(1) 
     Public Law 92-402 (16 U.S.C. 1220 et seq.) is amended--
       (A) by redesignating section 7 as section 8; and
       (B) by inserting after section 6 the following new section 
     7:

     ``SEC. 7. FINANCIAL ASSISTANCE TO STATE TO PREPARE 
                   TRANSFERRED SHIP.

       ``(a) Assistance Authorized.--The Secretary, subject to the 
     availability of appropriations, may provide, to any State to 
     which an obsolete ship is transferred under this Act, 
     financial assistance to prepare the ship for use as an 
     artificial reef, including for--
       ``(1) environmental remediation;
       ``(2) towing; and
       ``(3) sinking.
       ``(b) Amount of Assistance.--The Secretary shall determine 
     the amount of assistance under this section with respect to 
     an obsolete ship based on--
       ``(1) the total amount available for providing assistance 
     under this section;
       ``(2) the benefit achieved by providing assistance for that 
     ship; and
       ``(3) the cost effectiveness of disposing of the ship by 
     transfer under this Act and provision of assistance under 
     this section, compared to other disposal options for that 
     ship.
       ``(c) Terms and Conditions.--The Secretary--
       ``(1) shall require a State seeking assistance under this 
     section to provide cost data and other information determined 
     by the Secretary to be necessary to justify and document the 
     assistance; and
       ``(2) may require a State receiving such assistance to 
     comply with terms and conditions necessary to protect the 
     environment and the interests of the United States.''.
       (2) Section 4(4) of such Act (16 U.S.C. 1220a(4)) is 
     amended by inserting ``(except for any financial assistance 
     provided under section 7)'' after ``at no cost to the 
     Government''.
       (b) Environmental Best Management Practices for Preparing 
     Vessels for Use as Artificial Reefs.--(1) Not later than 
     September 30, 2003, the Secretary of Transportation, acting 
     through the Maritime Administration, and the Administrator 
     of the Environmental Protection Agency shall jointly 
     develop environmental best management practices to be used 
     in the preparation of vessels for use as artificial reefs.
       (2) The environmental best management practices under 
     paragraph (1) shall be developed in consultation with the 
     heads of other Federal agencies, and State agencies, having 
     an interest in the use of vessels as artificial reefs.
       (3) The environmental best management practices under 
     paragraph (1) shall--
       (A) include practices for the preparation of vessels for 
     use as artificial reefs to ensure that vessels so prepared 
     will be environmentally sound in their use as artificial 
     reefs;
       (B) ensure that such practices are consistent nationwide;
       (C) establish baselines for estimating the costs associated 
     with the preparation of vessels for use as artificial reefs; 
     and
       (D) include mechanisms to enhance the utility of the 
     Artificial Reefing Program of the Maritime Administration as 
     an option for the disposal of obsolete vessels.
       (4) The environmental best management practices developed 
     under paragraph (1) shall serve as national guidelines to be 
     used by Federal agencies for the preparation of vessels for 
     use as artificial reefs.
       (5) The Secretary of Transportation shall submit to 
     Congress a report on the environmental best management 
     practices developed under paragraph (1) through the existing 
     ship disposal reporting requirements in section 3502 of Floyd 
     D. Spence National Defense Authorization Act for Fiscal Year 
     2001 (as enacted into law by Public Law 106-398; 1654A-492). 
     The report shall describe such practices, and may include 
     such other matters as the Secretary considers appropriate.
       (c) Pilot Program on Export of Obsolete Vessels for 
     Dismantlement and Recycling.--(1)(A) The Secretary of 
     Transportation, Secretary of State, and Administrator of the 
     Environmental Protection Agency shall jointly carry out one 
     or more pilot programs through the Maritime Administration to 
     explore the feasibility and advisability of various 
     alternatives for exporting obsolete vessels in the National 
     Defense Reserve Fleet for purposes of the dismantlement and 
     recycling of such vessels.
       (B) The pilot programs shall be carried out in accordance 
     with applicable provisions of law and regulations.
       (2)(A) The pilot programs under paragraph (1) shall be 
     carried out during fiscal year 2003.
       (B) The pilot programs shall include a total of not more 
     than four vessels.
       (C) The authority provided by this subsection is in 
     addition to any other authority available to Maritime 
     Administration for exporting obsolete vessels in the National 
     Defense Reserve Fleet.
       (3) Activities under the pilot programs under paragraph (1) 
     shall include the following:
       (A) Exploration of the feasibility and advisability of a 
     variety of alternatives (developed for purposes of the pilot 
     programs) for exporting obsolete vessels in the National 
     Defense Reserve Fleet for purposes of the dismantlement and 
     recycling of such vessels.
       (B) Response by the Maritime Administration to proposals 
     from the international ship recycling industry for innovative 
     and cost-effective disposal solutions for obsolete vessels in 
     the National Defense Reserve Fleet, including an evaluation 
     of the feasibility and advisability of such proposals.
       (C) Demonstration of the extent to which the cost-effective 
     dismantlement or recycling of obsolete vessels in the 
     National Defense Reserve Fleet can be accomplished abroad in 
     manner that appropriately addresses concerns regarding worker 
     health and safety and the environment.
       (D) Opportunities to transfer abroad processes, 
     methodologies, and technologies for ship

[[Page H8181]]

     dismantlement and recycling in order to support the pilot 
     programs and to improve international practices and standards 
     for ship dismantlement and recycling.
       (E) Exploration of cooperative efforts with foreign 
     governments (under a global action program on ship recycling 
     or other program) in order to foster economically and 
     environmentally sound ship recycling abroad.
       (4) The Secretary of Transportation shall submit to 
     Congress a report on the pilot programs under paragraph (1) 
     through the existing ship disposal reporting requirements in 
     section 3502 of Floyd D. Spence National Defense 
     Authorization Act for Fiscal Year 2001. The report shall 
     include a description of the activities under the pilot 
     programs, and such recommendations for further legislative or 
     administrative action as the Secretary considers appropriate.
       (d) Construction.--Nothing in this section shall be 
     construed to establish a preference for the reefing or export 
     of obsolete vessels in the National Defense Reserve Fleet 
     over other alternatives available to the Secretary for the 
     scrapping of such vessels under section 3502(d)(3) of the 
     Floyd D. Spence National Defense Authorization Act for Fiscal 
     Year 2001.
             TITLE XXXVI--ATOMIC ENERGY DEFENSE PROVISIONS

Sec. 3601. Short title.

                         Subtitle A--[Reserved]

   Subtitle B--Department of Energy National Security Authorizations 
                           General Provisions

Sec. 3620. Definitions.
Sec. 3621. Reprogramming.
Sec. 3622. Minor construction projects.
Sec. 3623. Limits on construction projects.
Sec. 3624. Fund transfer authority.
Sec. 3625. Conceptual and construction design.
Sec. 3626. Authority for emergency planning, design, and construction 
              activities.
Sec. 3627. Scope of authority to carry out plant projects.
Sec. 3628. Availability of funds.
Sec. 3629. Transfer of defense environmental management funds.
Sec. 3630. Transfer of weapons activities funds.
Sec. 3631. Funds available for all national security programs of the 
              Department of Energy.

     SEC. 3601. SHORT TITLE.

       This title may be cited as the ``Atomic Energy Defense 
     Act''.
                         Subtitle A--[Reserved]
   Subtitle B--Department of Energy National Security Authorizations 
                           General Provisions

     SEC. 3620. DEFINITIONS.

       In this subtitle:
       (1) The term ``DOE national security authorization'' means 
     an authorization of appropriations for activities of the 
     Department of Energy in carrying out programs necessary for 
     national security.
       (2) 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.
       (3) The term ``minor construction threshold'' means 
     $5,000,000.

     SEC. 3621. REPROGRAMMING.

       (a) In General.--Except as provided in subsection (b) and 
     in sections 3629 and 3630, the Secretary of Energy may not 
     use amounts appropriated pursuant to a DOE national security 
     authorization for a program--
       (1) in amounts that exceed, in a fiscal year--
       (A) 115 percent of the amount authorized for that program 
     by that authorization for that fiscal year; or
       (B) $5,000,000 more than the amount authorized for that 
     program by that authorization for that fiscal year; or
       (2) which has not been presented to, or requested of, 
     Congress.
       (b) Exception Where Notice-and-Wait Given.--An action 
     described in subsection (a) may be taken if--
       (1) the Secretary submits to the congressional defense 
     committees a report referred to in subsection (c) with 
     respect to such action; and
       (2) a period of 30 days has elapsed after the date on which 
     such committees receive the report.
       (c) Report.--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.
       (d) Computation of Days.--In the computation of the 30-day 
     period under subsection (b), there shall be excluded any day 
     on which either House of Congress is not in session because 
     of an adjournment of more than three days to a day certain.
       (e) Limitations.--
       (1) Total amount obligated.--In no event may the total 
     amount of funds obligated pursuant to a DOE national security 
     authorization for a fiscal year exceed the total amount 
     authorized to be appropriated by that authorization for that 
     fiscal year.
       (2) Prohibited items.--Funds appropriated pursuant to a DOE 
     national security authorization may not be used for an item 
     for which Congress has specifically denied funds.

     SEC. 3622. MINOR CONSTRUCTION PROJECTS.

       (a) Authority.--Using operation and maintenance funds or 
     facilities and infrastructure funds authorized by a DOE 
     national security authorization, the Secretary of Energy may 
     carry out minor construction projects.
       (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 fiscal 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 a DOE national security 
     authorization, the estimated cost of the project is revised 
     and the revised cost of the project exceeds the minor 
     construction threshold, 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 for which the 
     approved total estimated cost does not exceed the minor 
     construction threshold.

     SEC. 3623. LIMITS ON CONSTRUCTION PROJECTS.

       (a) Construction Cost Ceiling.--Except as provided in 
     subsection (b), construction on a construction project which 
     is in support of national security programs of the Department 
     of Energy and was authorized by a DOE national security 
     authorization may not be started, and additional obligations 
     in connection with the project above the total estimated cost 
     may not be incurred, whenever the current estimated cost of 
     the construction project exceeds by more than 25 percent the 
     higher of--
       (1) the amount authorized for the project; or
       (2) the amount of the total estimated cost for the project 
     as shown in the most recent budget justification data 
     submitted to Congress.
       (b) Exception Where Notice-and-Wait Given.--An action 
     described in subsection (a) may be taken if--
       (1) the Secretary of Energy has submitted to the 
     congressional defense committees a report on the actions and 
     the circumstances making such action necessary; and
       (2) a period of 30 days has elapsed after the date on which 
     the report is received by the committees.
       (c) Computation of Days.--In the computation of the 30-day 
     period under subsection (b), there shall be excluded any day 
     on which either House of Congress is not in session because 
     of an adjournment of more than three days to a day certain.
       (d) Exception for Minor Projects.--Subsection (a) does not 
     apply to a construction project with a current estimated cost 
     of less than the minor construction threshold.

     SEC. 3624. 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 a DOE national security 
     authorization 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) Transfers permitted.--Subject to paragraph (2), the 
     Secretary of Energy may transfer funds authorized to be 
     appropriated to the Department of Energy pursuant to a DOE 
     national security authorization to any other DOE national 
     security authorization. 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) Maximum amounts.--Not more than 5 percent of any such 
     authorization may be transferred to another authorization 
     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 congressional defense committees of any 
     transfer of funds to or from any DOE national security 
     authorization.

     SEC. 3625. CONCEPTUAL AND CONSTRUCTION DESIGN.

       (a) Conceptual Design.--
       (1) Requirement.--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) Requests for conceptual design funds.--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) Exceptions.--The requirement in paragraph (1) does not 
     apply to a request for funds--
       (A) for a construction project the total estimated cost of 
     which is less than the minor construction threshold; or
       (B) for emergency planning, design, and construction 
     activities under section 3626.
       (b) Construction Design.--
       (1) Authority.--Within the amounts authorized by a DOE 
     national security authorization, the Secretary 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.

[[Page H8182]]

       (2) Limitation on availability of funds for certain 
     projects.--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. 3626. 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 a DOE 
     national security authorization, including funds authorized 
     to be appropriated for advance planning, engineering, and 
     construction design, and for plant projects, 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 a 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 
     3625(b)(2) does not apply to emergency planning, design, and 
     construction activities conducted under this section.

     SEC. 3627. SCOPE OF AUTHORITY TO CARRY OUT PLANT PROJECTS.

       In carrying out programs necessary for national security, 
     the authority of the Secretary of Energy to carry out plant 
     projects includes authority for maintenance, restoration, 
     planning, construction, acquisition, modification of 
     facilities, and the continuation of projects authorized in 
     prior years, and land acquisition related thereto.

     SEC. 3628. AVAILABILITY OF FUNDS.

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

     SEC. 3629. 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) Number of transfers.--Not more than one transfer may be 
     made to or from any program or project under subsection (a) 
     in a fiscal year.
       (2) Amounts transferred.--The amount transferred to or from 
     a program or project in any one transfer under subsection (a) 
     may not exceed $5,000,000.
       (3) Determination required.--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) Impermissible uses.--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 3621 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, a program or 
     project 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.
       (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.

     SEC. 3630. 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) Number of transfers.--Not more than one transfer may be 
     made to or from any program or project under subsection (a) 
     in a fiscal year.
       (2) Amounts transferred.--The amount transferred to or from 
     a program or project in any one transfer under subsection (a) 
     may not exceed $5,000,000.
       (3) Determination required.--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) Limitation.--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) Impermissible uses.--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 3621 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, a program or 
     project 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.
       (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.

     SEC. 3631. FUNDS AVAILABLE FOR ALL NATIONAL SECURITY PROGRAMS 
                   OF THE DEPARTMENT OF ENERGY.

       Subject to the provisions of appropriation Acts and section 
     3621, amounts appropriated pursuant to a DOE national 
     security authorization 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.
       And the House agree to the same.

     From the Committee on Armed Services, for consideration of 
     the House amendment and the Senate amendment, and 
     modifications committed to conference:
     Bob Stump,
     Duncan Hunter,
     James V. Hansen,
     Curt Weldon,
     Joel Hefley,
     Jim Saxton,
     John M. McHugh,
     Terry Everett,
     Howard P. ``Buck'' McKeon,
     J.C. Watts, Jr.,
     Mac Thornberry,
     John N. Hostettler,
     Saxby Chambliss,
     Walter B. Jones,
     Van Hilleary,
     Lindsey Graham,
     Ike Skelton,
     John M. Spratt, Jr.,
     Solomon P. Ortiz,
     Lane Evans,
     Martin T. Meehan,
     Robert A. Underwood,
     Thomas Allen,
     Silvestre Reyes,
     Jim Turner,
     Ellen O. Tauscher,
     From the Permanent Select Committee on Intelligence, for 
     consideration of matters within the jurisdiction of that 
     committee under clause 11 of rule X:
     Porter J. Goss,
     Doug Bereuter,
     From the Committee on Education and the Workforce, for 
     consideration of secs. 341-343, and 366 o the House 
     amendment, and secs. 331-333, 542, 656, 1064, and 1107 of the 
     Senate amendment, and modifications committed to conference:
     Johnny Isakson,
     Joe Wilson,
     George Miller,
     From the Committee on Government Reform, for consideration of 
     secs. 323, 804, 805, 1003, 1004, 1101-1106, 2811, and 2813 of 
     the House amendment, and secs. 241, 654, 817, 907, 1007-1009, 
     1061, 1101-1106, 2811, and 3173 of the Senate amendment, and 
     modifications committed to conference:
     Dan Burton,
     Dave Weldon,
     From the Committee on International Relations, for 
     consideration of secs. 1201, 1202, 1204, title XIII, and sec. 
     3142 of the House amendment, and subtitle A of title XII, 
     secs. 1212-1216, 3136, 3151, and 3156-3161 of the Senate 
     amendment, and modifications committed to conference:
     Henry Hyde,
     Benjamin A. Gilman,
     From the Committee on the Judiciary, for consideration of 
     secs. 811 and 1033 of the House amendment, and secs. 1067 and 
     1070 of the Senate amendment, and modifications committed to 
     conference:
     Lamar Smith,
     From the Committee on Resources, for consideration of secs. 
     311, 312, 601, title XIV, secs 2821, 2832, 2841, and 2863 of 
     the House amendment, and secs. 601, 2821, 2823, 2828, and 
     2841 of the Senate amendment, and modifications committed to 
     conference:

[[Page H8183]]

     John J. Duncan, Jr.,
     From the Committee on Science, for consideration of secs. 
     244, 246, 1216, 3155, 3163 of the Senate amendment, and 
     modifications committed to conference:
     Sherwood L. Boehlert,
     Nick Smith,
     Ralph M. Hall,
     From the Committee on Small Business for consideration of 
     secs. 243, 824, and 829 of the Senate amendment, and 
     modifications committed to conference:
     Donald A. Manzullo,
     Sue Kelly,
     From the Committee on Transportation and Infrastructure, for 
     consideration of sec. 601 of the House amendment, and secs. 
     601 and 1063 of the Senate amendment, and modifications 
     committed to conference:
     Don Young,
     Frank A. LoBiondo,
     Corrine Brown,
     From the Committee on Veterans' Affairs, for consideration of 
     secs. 641, 651, 721, 723, 724, 726, 727, and 728 of the House 
     amendment, and secs. 541 and 641 of the Senate amendment, and 
     modifications committed to conference:
     Chris Smith,
                                Managers on the Part of the House.

     Carl Levin,
     Ted Kennedy,
     Robert C. Byrd,
     Joseh I. Lieberman,
     Max Cleland,
     Mary L. Landrieu,
     Jack Reed,
     Daniel K. Akaka,
     Bill Nelson,
     Ben Nelson,
     Jean Carnahan,
     Mark Dayton,
     Jeff Bingaman,
     John W. Warner,
     Strom Thurmond,
     John McCain,
     James M. Inhofe,
     Pat Roberts,
     Jeff Sessions,
     Susan Collins,
     Jim Bunning,
                               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 House to the amendment of the Senate to the 
     bill (H.R. 4546), 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, submit the following joint statement to the House 
     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 amendment struck out all of the House bill after 
     the enacting clause and inserted a substitute text.
       The House amendment struck out the matter proposed to be 
     inserted by the Senate amendment and inserted a substitute 
     text.
       The Senate recedes from its disagreement to the amendment 
     of the House with an amendment which is a substitute for the 
     House amendment and the Senate amendment. The differences 
     between the Senate amendment, the House amendment, and the 
     substitute agreed to in conference are noted below, except 
     for clerical corrections, conforming changes made necessary 
     by agreements reached by the conferees, and minor drafting 
     and clarifying changes.

                Summary Statement of Conference Actions

       The conferees recommend authorization of appropriations for 
     fiscal year 2003 for the Department of Defense for 
     procurement; research and development; test and evaluation; 
     operation and maintenance; working capital funds; military 
     construction and family housing; and for weapons and 
     environmental restoration programs of the Department of 
     Energy, that have a budget authority implication of $392.9 
     billion for the national defense function.
       This funding level represents a $3.5 billion reduction to 
     the amounts requested by the President to reflect the proper 
     accounting for civilian retirement and health benefits under 
     current law. The administration's budget included $3.5 
     billion in the national defense function as part of a 
     governmentwide proposal for accrual funding that was not 
     adopted by the committees of jurisdiction within Congress. 
     This reduction of $3.5 billion is an accounting adjustment 
     that does not reduce the amount of funding available for 
     defense programs and would not result in any reduction in 
     benefits for federal civilian employees of the Department of 
     Defense or the Department of Energy.

                    Summary Table of Authorizations

       The defense authorization act provides authorizations for 
     appropriations but does not generally provide budget 
     authority. Budget authority is provided in appropriations 
     acts.
       In order to relate the conference recommendations to the 
     Budget Resolution, matters in addition to the dollar 
     authorizations contained in this bill must be taken into 
     account. A number of programs in the national defense 
     function are authorized permanently or, in certain instances, 
     authorized in other legislation.
       The following table summarizes authorizations included in 
     the bill for fiscal year 2003 and, in addition, summarizes 
     the implications of the conference action for the budget 
     authority totals for national defense (budget function 050).

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                    Congressional Defense Committees

       The term ``congressional defense committees'' is often used 
     in this statement of managers. It means the Defense 
     Authorization and Appropriations Committees of the Senate and 
     the House of Representatives.

            Division A--Department of Defense Authorizations

                          Title I--Procurement

     Procurement overview
       The budget request for fiscal year 2003 included an 
     authorization of $68,917.9 million for Procurement for the 
     Department of Defense.
       The House bill would authorize $75,298.6 million.
       The Senate amendment would authorize $73,101.0 million.
       The conferees recommend an authorization of $73,969.3 
     million. Unless noted explicitly in the statement of 
     managers, all changes are made without prejudice.

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     Aircraft Procurement, Army--Overview
       The budget request for fiscal year 2003 included an 
     authorization of $2,061.0 million for Aircraft Procurement, 
     Army in the Department of Defense.
       The House bill would authorize $2,300.3 million.
       The Senate amendment would authorize $2,147.4 million.
       The conferees recommend an authorization of $2,186.3 
     million. Unless noted explicitly in the statement of 
     managers, all changes are made without prejudice.

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     Missile Procurement, Army--Overview
       The budget request for fiscal year 2003 included an 
     authorization of $1,642.3 million for Missile Procurement, 
     Army in the Department of Defense.
       The House bill would authorize $1,758.9 million.
       The Senate amendment would authorize $1,653.2 million.
       The conferees recommend an authorization of $1,152.3 
     million. Unless noted explicitly in the statement of 
     managers, all changes are made without prejudice.

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     Procurement of Weapons and Tracked Combat Vehicles, Army--
         Overview
       The budget request for fiscal year 2003 included an 
     authorization of $2,248.6 million for Procurement of Weapons 
     and Tracked Combat Vehicles, Army in the Department of 
     Defense.
       The House bill would authorize $2,373.0 million.
       The Senate amendment would authorize $2,242.9 million.
       The conferees recommend an authorization of $2,276.8 
     million. Unless noted explicitly in the statement of 
     managers, all changes are made without prejudice.

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     Procurement of Ammunition, Army--Overview
       The budget request for fiscal year 2003 included an 
     authorization of $1,159.4 million for Procurement of 
     Ammunition, Army in the Department of Defense.
       The House bill would authorize $1,320.0 million.
       The Senate amendment would authorize $1,205.5 million.
       The conferees recommend an authorization of $1,229.5 
     million. Unless noted explicitly in the statement of 
     managers, all changes are made without prejudice.

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     Other Procurement, Army--Overview
       The budget request for fiscal year 2003 included an 
     authorization of $5,168.5 million for Other Procurement, Army 
     in the Department of Defense.
       The House bill would authorize $6,130.1 million.
       The Senate amendment would authorize $5,513.7 million.
       The conferees recommend an authorization of $5,857.8 
     million. Unless noted explicitly in the statement of 
     managers, all changes are made without prejudice.

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     Chemical Agents and Munitions Destruction, Army--Overview
       The budget request for fiscal year 2003 included an 
     authorization of $1,490.2 million for Chemical Agents & 
     Munitions Destruction, Army in the Department of Defense.
       The House bill would authorize $1,490.2 million for 
     Chemical Agents & Munitions Destruction, Defense.
       The Senate amendment would authorize $1,490.2 million for 
     Chemical Agents & Munitions Destruction, Defense.
       The conferees recommend an authorization of $1,490.2 
     million for Chemical Agents & Munitions Destruction, Defense. 
     Unless noted explicitly in the statement of managers, all 
     changes are made without prejudice.

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[[Page H8234]]

     Aircraft Procurement, Navy--Overview
       The budget request for fiscal year 2003 included an 
     authorization of $8,204.0 million for Aircraft Procurement, 
     Navy in the Department of Defense.
       The House bill would authorize $9,077.6 million.
       The Senate amendment would authorize $9,037.2 million.
       The conferees recommend an authorization of $8,979.3 
     million. Unless noted explicitly in the statement of 
     managers, all changes are made without prejudice.
     MV-22/CV-22 Osprey aircraft advance procurement
       The budget request included $60.3 million in advance 
     procurement to support production of 13 MV-22 aircraft in 
     fiscal year 2004 and $10.1 million in advance procurement to 
     support production of two CV-22 aircraft in fiscal year 2004.
       The House bill would authorize the budget request.
       The Senate amendment would authorize a decrease of $9.2 
     million in Aircraft Procurement, Navy and a decrease of $10.1 
     million in Aircraft Procurement, Air Force. These decreases 
     reflect support for buying a total of 11 MV-22 aircraft and 
     no CV-22 aircraft.
       Authorization of a maximum of 11 V-22 Osprey aircraft for 
     fiscal year 2004 is consistent with section 123 of the 
     National Defense Authorization Act for Fiscal Year 2002 
     (Public Law 107-107). That provision restricts production of 
     the V-22 (MV-22 and CV-22) to the minimum sustaining 
     production rate until the Secretary of Defense can make 
     certain certifications to Congress.
       Given the V-22 schedule for testing, the Department of 
     Defense has agreed that the maximum number of V-22 aircraft 
     that it will be able to buy in fiscal year 2004 is 11. The 
     Department of the Navy and the Department of the Air Force 
     have asked, however, that Congress support buying nine MV-22 
     and two CV-22 aircraft in fiscal year 2004.
       Therefore, the conferees agree to authorize a total of 
     $41.0 million in Aircraft Procurement, Navy for advance 
     procurement for nine MV-22 aircraft, a decrease of $19.3 
     million. The conferees agree to authorize the budget request 
     for advance procurement supporting CV-22 aircraft.
       The conferees do not want support for buying CV-22 aircraft 
     in fiscal year 2004 to be interpreted as any change in their 
     views concerning the requirements in the National Defense 
     Authorization Act for Fiscal Year 2002 (Public Law 107-107). 
     Therefore, the conferees direct that no CV-22 Osprey aircraft 
     be used for missions other than testing, training, or tactics 
     development until that aircraft is in a configuration that 
     has received the certifications required in the applicable 
     parts of section 123 of the National Defense Authorization 
     Act for Fiscal Year 2002 (Public Law 107-107).
     T-45 training system
       The budget request included $221.8 million to purchase 
     eight T-45C aircraft but included no funds for advance 
     procurement to support T-45C aircraft procurement in fiscal 
     year 2004. The projections in the Future Years Defense 
     Program include no T-45 procurement beyond fiscal year 2003.
       The House bill would authorize an increase of $10.0 million 
     for advance procurement to support fiscal year 2004 
     procurement.
       The Senate amendment would authorize the budget request.
       The conferees agree to authorize the budget request.
       The conferees understand that the Navy has stated a 
     requirement for 234 T-45 aircraft. The Navy's inventory, 
     however, will total only 181 aircraft after delivery of the 
     eight aircraft to be produced with fiscal year 2003 funds.
       The conferees understand that the Navy may be reconsidering 
     the original decision to truncate production with the fiscal 
     year 2003 procurement. Absent a change in the requirement for 
     additional T-45C aircraft to support training requirements of 
     the Department of the Navy, the conferees believe that the 
     Navy should continue to buy T-45 aircraft and its associated 
     training systems.
       If the Navy decides to continue production, the conferees 
     encourage the Department of the Navy to investigate options 
     for acquiring additional systems in the manner most 
     advantageous to the Government, to include adopting a 
     multiyear procurement contracting strategy.

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     Weapons Procurement, Navy--Overview
       The budget request for fiscal year 2003 included an 
     authorization of $1,832.6 million for Weapons Procurement, 
     Navy in the Department of Defense.
       The House bill would authorize $2,514.6 million.
       The Senate amendment would authorize $2,505.8 million.
       The conferees recommend an authorization of $2,375.3 
     million. Unless noted explicitly in the statement of 
     managers, all changes are made without prejudice.

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     Procurement of Ammunition, Navy and Marine Corps--Overview
       The budget request for fiscal year 2003 included an 
     authorization of $1,015.2 million for Procurement of 
     Ammunition, Navy and Marine Corps in the Department of 
     Defense.
       The House bill would authorize $1,200.1 million.
       The Senate amendment would authorize $1,173.2 million.
       The conferees recommend an authorization of $1,170.8 
     million. Unless noted explicitly in the statement of 
     managers, all changes are made without prejudice.

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     Shipbuilding and Conversion, Navy--Overview
       The budget request for fiscal year 2003 included an 
     authorization of $8,191.2 million for Shipbuilding and 
     Conversion, Navy in the Department of Defense.
       The House bill would authorize $9,279.5 million.
       The Senate amendment would authorize $9,314.2 million.
       The conferees recommend an authorization of $9,111.0 
     million. Unless noted explicitly in the statement of 
     managers, all changes are made without prejudice.

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     Other Procurement, Navy--Overview
       The budget request for fiscal year 2003 included an 
     authorization of $4,347.0 million for Other Procurement, Navy 
     in the Department of Defense.
       The House bill would authorize $4,527.8 million.
       The Senate amendment would authorize $4,514.5 million.
       The conferees recommend an authorization of $4,494.8 
     million. Unless noted explicitly in the statement of 
     managers, all changes are made without prejudice.

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     Procurement, Marine Corps--Overview
       The budget request for fiscal year 2003 included an 
     authorization of $1,288.4 million for Procurement, Marine 
     Corps in the Department of Defense.
       The House bill would authorize $1,377.2 million.
       The Senate amendment would authorize $1,343.1 million.
       The conferees recommend an authorization of $1,355.5 
     million. Unless noted explicitly in the statement of 
     managers, all changes are made without prejudice.
     Batteries
       The budget request included no funding to replace batteries 
     in the Marine Corps' fleet of prepositioned equipment stored 
     in Norway or aboard the Maritime Prepositioning Force ships.
       The House bill and the Senate amendment would support the 
     budget request.
       The Marine Corps believes that the use of batteries with 
     newer technology that would replace the current lead-acid 
     batteries could help reduce total ownership costs for 
     vehicles maintained in long-term storage.
       The conferees, therefore, agree to an increase of $3.0 
     million for batteries to be used for long-term storage 
     applications.

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     Aircraft Procurement, Air Force--Overview
       The budget request for fiscal year 2003 included an 
     authorization of $12,067.4 million for Aircraft Procurement, 
     Air Force in the Department of Defense.
       The House bill would authorize $12,737.3 million.
       The Senate amendment would authorize $12,611.7 million.
       The conferees recommend an authorization of $12,676.5 
     million. Unless noted explicitly in the statement of 
     managers, all changes are made without prejudice.

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     Missile Procurement, Air Force--Overview
       The budget request for fiscal year 2003 included an 
     authorization of $3,575.2 million for Missile Procurement, 
     Air Force in the Department of Defense.
       The House bill would authorize $3,482.6 million.
       The Senate amendment would authorize $3,258.2 million.
       The conferees recommend an authorization of $3,504.1 
     million. Unless noted explicitly in the statement of 
     managers, all changes are made without prejudice.

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     Procurement of Ammunition, Air Force--Overview
       The budget request for fiscal year 2003 included an 
     authorization of $1,133.9 million for Procurement of 
     Ammunition, Air Force in the Department of Defense.
       The House bill would authorize $1,294.8 million.
       The Senate amendment would authorize $1,275.9 million.
       The conferees recommend an authorization of $1,290.8 
     million. Unless noted explicitly in the statement of 
     managers, all changes are made without prejudice.

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     Other Procurement, Air Force--Overview
       The budget request for fiscal year 2003 included an 
     authorization of $10,523.9 million for Other Procurement, Air 
     Force in the Department of Defense.
       The House bill would authorize $10,918.5 million.
       The Senate amendment would authorize $10,478.8 million.
       The conferees recommend an authorization of $10,846.0 
     million. Unless noted explicitly in the statement of 
     managers, all changes are made without prejudice.

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     Procurement, Defense-Wide--Overview
       The budget request for fiscal year 2003 included an 
     authorization of $2,688.5 million for Procurement, Defense-
     Wide in the Department of Defense.
       The House bill would authorize $3,235.4 million.
       The Senate amendment would authorize $3,054.9 million.
       The conferees recommend an authorization of $3,691.6 
     million. Unless noted explicitly in the statement of 
     managers, all changes are made without prejudice.
     Advanced SEAL Delivery System
       The budget request included $21.8 million for the Advanced 
     SEAL Delivery System (ASDS) procurement, $34.7 million for 
     ASDS advance procurement, and $12.2 million in PE 1160404BB 
     for ASDS research, development, test and evaluation (RDT&E).
       The House bill would authorize the budget request.
       The Senate amendment would authorize $27.3 million for ASDS 
     procurement, no funds for ASDS advance procurement, and no 
     funds in PE 1160404BB for ASDS RDT&E, but it would identify 
     $13.7 million of unused fiscal year 2002 procurement funds to 
     meet fiscal year 2003 RDT&E requirements.
       The conferees agree to authorize an increase of $2.0 
     million for ASDS procurement, no funds for ASDS advance 
     procurement, and an increase of $9.6 million in PE 1160606BB 
     for ASDS RDT&E. Of the $23.8 million authorized for ASDS 
     procurement, the conferees agree that $12.0 million would 
     cover the procurement of lithium ion batteries. The conferees 
     have also included a provision (sec. 214) that would transfer 
     $13.7 million from the amount authorized and appropriated in 
     fiscal year 2002 for ASDS advance procurement to the fiscal 
     year 2003 ASDS RDT&E account.
       Subsequent to submission of the budget request and the 
     passage of the House and Senate bills, the U.S. Special 
     Operations Command (SOCOM) approved a restructuring of the 
     ASDS program, and the conferees were informed of changed 
     fiscal year 2003 funding requirements through the submission 
     of a Department of Defense Authorization appeal. The amounts 
     authorized by the conferees support the SOCOM-approved, 
     restructured program.
       The conferees believe that the ASDS program continues to 
     require increased attention from the Commander in Chief, 
     Special Operations Command; the Naval Sea Systems Command; 
     and the Office of the Secretary of Defense. Accordingly, the 
     conferees direct that no more than 50 percent of the fiscal 
     year 2003 ASDS procurement funding (excluding the $12.0 
     million amount for the lithium ion batteries) be obligated 
     until the Secretary of Defense conducts a complete review of 
     the requirements, mission, management, and cost structure of 
     the ASDS program and reports to the congressional defense 
     committees on his findings.
     Chemical Agents and Munitions Destruction, Defense--Overview
       The budget request for fiscal year 2003 included an 
     authorization of $1,490.2 million for Chemical Agents & 
     Munitions Destruction, Army in the Department of Defense.
       The House bill would authorize $1,490.2 million for 
     Chemical Agents & Munitions Destruction, Defense.
       The Senate amendment would authorize $1,490.2 million for 
     Chemical Agents & Munitions Destruction, Defense.
       The conferees recommend an authorization of $1,490.2 
     million for Chemical Agents & Munitions Destruction, Defense. 
     Unless noted explicitly in the statement of managers, all 
     changes are made without prejudice.

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[[Page H8308]]

                       Items of Special Interest

     Big Safari
       The conferees are aware that the Air Force's Big Safari 
     program office has contributed significantly to the Nation's 
     defense through flexible and dynamic management of programs, 
     including the RC-135 Rivet Joint aircraft and the Predator 
     unmanned aerial vehicle.
       The conferees, however, are concerned that the management 
     realignments associated with Big Safari that have been 
     implemented over the past 10 years may have resulted in a 
     layering of review processes and extended acquisition cycles. 
     The existence of several intervening headquarters and 
     agencies, in some cases, could inhibit communication between 
     senior Air Force leadership and those responsible for rapidly 
     fielding innovative intelligence, surveillance and 
     reconnaissance (ISR) systems. The conferees believe the Big 
     Safari approach to streamlined acquisition of specialized ISR 
     capabilities is important to the effective execution of the 
     war on terrorism. The conferees, therefore, recommend that 
     the Secretary of the Air Force consider reestablishing Big 
     Safari as a special projects office reporting directly to the 
     Assistant Secretary of the Air Force for Acquisition.
     Navy ship acquisition
       The conferees remain concerned about both the Department of 
     Defense (DOD) and the Department of the Navy (DON) fiscal 
     year 2003 and previous budget requests for ship acquisition 
     programs. This concern arises from many facts, among which 
     are:
       (1) Numerous witnesses, both government and civilian, have 
     testified on the requirement for increased Navy ship 
     acquisition and the annual investment required to 
     recapitalize the Navy's fleet to meet the battle force ship 
     force structure goals outlined in the most recent Quadrennial 
     Defense Review;
       (2) Despite congressional documentation over a number of 
     years that the Navy's budget requests are insufficient to 
     recapitalize the required fleet, the Department of Defense 
     continues to submit long-range shipbuilding plans that are 
     inadequate to carry out the missions assigned to the Navy in 
     both the short and long-term; and
       (3) The Department of Defense has established a consistent 
     pattern of putting a large number of ships in the latter 
     years of the Future Years Defense Program (FYDP), instead of 
     placing the annual number required in the budget year.
       The conferees are also concerned about the manner in which 
     DOD and the DON are interacting with Congress on these 
     important issues. For example, DOD was very late in 
     submitting two acquisition-related attack submarine reports. 
     The late submission of these reports, which required a review 
     of the long- term approach to the stated problem of the low 
     number of attack submarines, made it difficult for Congress 
     to evaluate the annual attack submarine acquisition request. 
     The Department's late or inadequate submission of 
     congressionally mandated reports must be corrected.
       Absent more immediate investment, DOD will have to reduce 
     the number or scope of missions assigned to Navy ships. 
     Witnesses have testified that, if neither course is 
     incorporated in future Navy budget programs, the men and 
     women of the Navy and the Marine Corps will bear the burden 
     of these decisions through some combination of longer 
     deployments and less time at home between deployments. The 
     conferees believe that concrete evidence has been presented 
     to demonstrate that these burdens will result in lower 
     retention, less training, and eventually undermanned ships at 
     sea.
       In many instances, the overall Department of Defense ship 
     acquisition message is confused. The conferees believe that 
     DOD has provided only lukewarm support for the acquisition of 
     new ships to modernize the Navy. Despite a sizeable increase 
     in the fiscal year 2003 budget for national defense, the 
     number of ships in the new construction shipbuilding account 
     has declined from the level planned in the last FYDP. The 
     conferees also believe that the DON shares blame for this 
     confusion because it has been inconsistent in its description 
     of force structure requirements. This situation makes it 
     appear as if the Navy has not fully evaluated the long-term 
     implications of its annual budget requests. Because it is 
     difficult for Congress to dramatically adjust the course set 
     in a budget request, the departments must consider the long-
     term implications of their annual budget requests.
       Other, more specific situations inform the conferees' 
     conclusions, as noted below.
      (1) DOD and DON witnesses have consistently testified over a 
     number of years that the DON hopes to make reductions in 
     operating and support costs and reallocate those funds for 
     necessary shipbuilding investments. The conferees believe 
     that sufficient evidence has accumulated over a number of 
     years to conclude that the Navy's hopes of harvesting 
     operating and support funds sufficient to recapitalize the 
     fleet are misplaced.
      (2) The size of the Navy has been steadily declining, with 
     no apparent solution to halt the decline. Despite this fact, 
     the DON has continued to retire mission-capable ships 
     before the end of their useful service lives. While this 
     action will achieve modest, short-term operating and 
     support cost savings, the conferees believe that this 
     situation reveals that the DON is focusing too narrowly on 
     near-term exigencies. Retiring ships earlier than planned 
     merely adds to the size of the acquisition ``bow wave'' 
     that may already be reaching insurmountable proportions. 
     Accordingly, the conferees further believe that the nation 
     can ill afford to make a 30-year investment in a ship 
     acquisition and then receive less than 30 years from that 
     investment. If the DON continues making these early 
     retirements, the Navy may only achieve short-term savings 
     at the expense of preserving the capability to maintain 
     the level of forward presence and crisis response that is 
     presumed in the most recent Quadrennial Defense Review.
       (3) The Navy has occasionally invoked an argument that a 
     smaller number of more capable ships can do the same job as a 
     greater number of ships with less capability. While the 
     conferees recognize that the Navy buys new ships with 
     increased capability as a response to the evolving threat, 
     the conferees believe that the number of ships required to 
     carry out the presence mission has not diminished from those 
     stated in the two previous Quadrennial Defense Reviews.
       (4) Placing additional ship acquisition requirements on an 
     underfunded ship acquisition program has exacerbated the 
     budget pressure on the ship acquisition account. The number 
     of ships required to execute the national military strategy 
     should be fully funded and should take priority over new ship 
     acquisition programs that have not been fully vetted. The 
     Navy's tendency to create new ship program requests during 
     the congressional budget review period indicates a lack of 
     planning, analysis, and foresight. This practice generates 
     questions about the validity of the entire request and 
     disrupts support for programs budgeted to meet validated 
     requirements.
       (5) The conferees note that the DON submitted a report to 
     Congress on the most efficient plan for buying the ships in 
     the long-range shipbuilding plan, but despite its own 
     analysis, the Navy subsequently submitted a budget request 
     that did not include those efficiencies. Consequently, the 
     conferees believe that the Navy's acquisition strategy has 
     resulted in higher unit prices, ultimately resulting in a 
     smaller number of ships procured for the available funding.
       (6) DOD has conducted additional reviews, performed 
     multiple analyses, and produced numerous reports on ship 
     acquisition programs. These additional reviews, while 
     arriving at the same conclusions as previous analyses, 
     have been used as means to delay ship requirements 
     validations and acquisition increases to meet those 
     requirements. The conferees believe that these 
     postponements put added pressure on the Navy's new 
     construction shipbuilding account and increase the slope 
     of the acquisition ``mountain'' facing the Navy.
      (7) The conferees perceive that DOD lacks a commitment to 
     buy the number and type of ships required to carry out the 
     full range of Navy missions without redundancy. The DON has 
     proposed to buy more ships than the stated requirement in 
     some classes, while not requesting sufficient new hulls in 
     other classes that fall short of the stated requirement. 
     Additionally, the conferees believe that the cost of ships 
     will not be reduced by continually changing the number of 
     ships in acquisition programs or by frequently changing the 
     configuration and capability of those ships, all frequent 
     attributes of recent DON shipbuilding plans. The conferees 
     intend to scrutinize closely proposals for ships that would 
     only yield marginal improvements in any mission area already 
     inherent in the fleet.
      (8) The conferees note that the Navy has testified that 
     personnel and maintenance comprise the largest cost in the 
     total acquisition and life-cycle costs, yet the DON is not 
     taking deliberate steps to buy ships that would require 
     smaller crews and would operate with lower maintenance costs. 
     Some ships are being designed to achieve significant manpower 
     life-cycle savings, but the DON has delayed their acquisition 
     and reduced their numbers. Consequently, the conferees 
     believe that these delays will result in a more expensive 
     future force than need be.
      (9) Although some programs, such as the DD(X) destroyer, aim 
     to reach significant manpower reduction goals, the DON is not 
     identifying reasonable goals for other major ship programs in 
     the FYDP. Despite DON testimony that manpower reduction goals 
     are very important, a General Accounting Office (GAO) review 
     of existing and future ship programs informs that most of 
     those programs do not include human systems integration (HSI) 
     in the operational requirements documents. GAO further 
     concluded that research shows HSI has great potential for 
     minimizing the costs of manning, thereby reducing total 
     ownership costs. Accordingly, the conferees believe that the 
     DON must institutionalize the process by which they will 
     reach their goal of an effective Navy in the future at 
     reduced total life-cycle costs.
       The conferees strongly recommend that the Navy design ship 
     acquisition programs to take advantage of the best 
     acquisition strategies that have been identified in the 
     Navy's own reports as leading to the greatest cost savings. 
     These include multiyear procurement, block buy of long 
     lead materials and configuration stability for blocks of 
     ships. The conferees further recommend that, once 
     structured, the DON submit fully vetted and supported 
     programs for acquisition and not change course in the 
     middle of the process. Congress fully supports a strong 
     Navy and Marine Corps team as indispensable to the 
     national defense. DOD and the DON bear a significant 
     responsibility for correcting the deficiencies noted 
     above.

[[Page H8309]]

     Cryptographic equipment modernization
       The conferees believe that the National Security Agency is 
     making substantial progress in developing modern 
     cryptographic equipment and materials. The conferees, 
     however, fail to see evidence that the services are 
     programming sufficient resources for cryptographic 
     modernization procurement. The conferees expect the services 
     to make better progress in addressing this problem by 
     providing adequate procurement funding in future budget 
     submissions.
     Signals intelligence architecture
       The Assistant Secretary of Defense for Command, Control, 
     Communications, and Intelligence (ASD (C3I)) has the 
     responsibility to provide guidance and oversight with respect 
     to policy for all aspects of information exchange networks 
     and to all Department of Defense components. The ASD (C3I) is 
     also responsible for providing guidance for data information 
     and storage systems and their standardization to ensure 
     service interoperability. The conferees recognize that the 
     National Security Agency (NSA) has an important role in 
     supporting this ASD (C3I) responsibility in the area of 
     developing standards for signals intelligence (SIGINT) 
     architecture for the Department of Defense.
       The conferees addressed airborne SIGINT architecture issues 
     in the statement of managers (H. Rept. 107-333) accompanying 
     the National Defense Authorization Act for Fiscal Year 2002 
     (Public Law 107-107). The conferees encouraged the ASD (C3I) 
     to develop an architectural plan to provide standards-based 
     policy direction to the services, whose platform program 
     offices can develop systems, and, to the maximum extent 
     possible, share developments. The statement of managers 
     expressed the expectation that the plan should include: (1) a 
     robust spiral development approach; and (2) adequate emphasis 
     on fielding and modernizing the appropriate ground support 
     infrastructure.
       The conferees have been unable to detect progress within 
     the Department on such an effort. The ASD(C3I) and the 
     Director of the NSA have not been able to develop and field a 
     cohesive SIGINT architecture with the necessary technical 
     standards. In addition, the conferees can find no evidence 
     that the leadership in either organization has provided 
     sufficient support for establishing an organizational 
     framework for coordinating their own organizational 
     activities or for providing the cross-service oversight of 
     joint intelligence surveillance and reconnaissance (ISR) 
     SIGINT activities, particularly when it comes to 
     information-sharing, routing, and access.
       Therefore, the conferees direct the ASD (C3I) to provide a 
     report to the congressional defense and intelligence 
     committees by May 30, 2003, on progress he is making in 
     developing standards for SIGINT architecture for the 
     Department of Defense.

                     Legislative Provisions Adopted

              Subtitle A--Authorization of Appropriations

     Authorization of appropriations (secs. 101-107)
       The House bill contained provisions (secs. 101-107) that 
     would authorize the recommended fiscal year 2003 funding 
     levels for procurement for the Army, Navy, Marine Corps, Air 
     Force, Defense-Wide activities, Defense Inspector General, 
     Chemical Demilitarization Program, and Defense Health 
     Program.
       The Senate amendment contained similar provisions (secs. 
     101-107).
       The conference agreement includes these provisions.
     Chemical Agents and Munitions Destruction, Defense (sec. 106)
       The House bill contained a provision (sec. 106) that would 
     authorize $1.5 billion, the amount included in the budget 
     request, for the destruction of chemical agents, munitions, 
     and materiel.
       The Senate amendment contained a similar provision (sec. 
     106) that would authorize the requested amount for chemical 
     demilitarization in a Defense Department account, in 
     accordance with section 1521(f) of title 50, United States 
     Code.
       The House recedes.
       The conferees are disappointed that the Department of 
     Defense requested funds for chemical demilitarization for 
     fiscal year 2003 in an Army budget account, contrary to the 
     requirements of law. Section 1521(f) of title 50, United 
     States Code requires that funds for this program shall not be 
     included in the budget accounts for any military department. 
     The conferees expect the Department to comply with the law in 
     future budget requests and therefore have approved a separate 
     provision, described elsewhere in this report, concerning 
     the budget submission.

                       Subtitle B--Army Programs

     Pilot program on sales of manufactured articles and services 
         of certain Army industrial facilities without regard to 
         availability from domestic sources (sec. 111)
       The Senate amendment contained a provision (sec. 111) that 
     would extend the authorization for Army industrial facilities 
     to sell articles and services to commercial contractors 
     providing weapon systems to the Department of Defense through 
     fiscal year 2004.
       The House bill contained no similar provision.
       The House recedes with a technical amendment.
     Report on impact of Army aviation modernization plan on the 
         Army National Guard (sec. 112)
       The House bill contained a provision (sec. 145) that would 
     require the Chief of the National Guard Bureau to submit to 
     the congressional defense committees a report on the 
     requirements for Army National Guard aviation, including an 
     analysis of the impact of the Army Aviation Modernization 
     Plan on the Army National Guard.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would require the 
     Chief of the National Guard Bureau to submit the report 
     through the Army Chief of Staff for any comments and 
     recommendations he considers appropriate before he forwards 
     the report to the Committees on Armed Services of the Senate 
     and House of Representatives. The conferees expect the report 
     to include an analysis of the impact of the Army Aviation 
     Modernization Plan on Army National Guard homeland security 
     search and rescue, MEDEVAC, and state emergency missions.
     Family of Medium Tactical Vehicles (sec. 113)
       The conferees agree to include a provision that would 
     provide the Army multiyear procurement (MYP) authority for 
     the procurement of the Family of Medium Tactical Vehicles 
     (FMTV).
       The budget request included $681.4 million to procure the 
     FMTV to replace the Army's aging fleet of medium tactical 
     vehicles. The FMTV is a complete series of trucks and 
     trailers based on a common chassis, varied by payload and 
     mission. In the fiscal year 2003 budget request, the Army 
     intends to buy 2,572 FMTV A1 models through the option clause 
     of the current sole-source multiyear contract and 1,002 FMTV 
     A1 competitive rebuy (CR) models through the first year of a 
     ``competitive rebuy'' multiyear contract scheduled for award 
     in March 2003.
       The Army failed to request multiyear procurement authority 
     for the FMTV A1 CR until after both houses of Congress had 
     acted on their respective National Defense Authorization 
     Bills for Fiscal Year 2003.
       The conferees note that the Army has had technical problems 
     with previous versions of the FMTV. Therefore, the conferees 
     agree that the Secretary of the Army may not enter into a 
     multiyear contract until the Secretary certifies to the 
     congressional defense committees that the FMTV A1 CR models 
     meet all key performance parameters required in the initial 
     operational test and evaluation.
       The conferees also note that the Army estimates a $222.0 
     million cost savings (6.5 percent of the contract value) 
     using a five-year multiyear procurement contract for the FMTV 
     A1 CR over that of annual buys, for the same period of time. 
     The conferees believe that the Army can achieve at least a 10 
     percent cost savings when both multiyear procurement 
     authority and competition are factored into cost estimates. 
     Therefore, the conferees agree that the Secretary of the Army 
     may not enter into a MYP contract until he certifies that the 
     total cost of the procurement of the FMTV A1 CR under the 
     program over five fiscal years using MYP contracting 
     authority is estimated to be at least 10 percent less than 
     the estimated total cost of the procurement of FMTV A1 CR 
     over the same five-year period through the use of successive 
     one-year contracts. The Secretary of Defense may waive this 
     limitation if he determines that the procurement of vehicles 
     using a MYP contract is in the national security interests of 
     the United States; certifies that the Army cannot achieve a 
     10 percent cost savings; and submits to the congressional 
     defense committees, in writing, a notification of the waiver 
     together with a report outlining the reasons why the use of a 
     MYP contract is in the national security interests of the 
     United States and reasons why the Army cannot achieve a 10 
     per cent savings of the total anticipated costs of carrying 
     out the program through a MYP contract.

                       Subtitle C--Navy Programs

     Extension of multiyear procurement authority for DDG-51 class 
         destroyers (sec. 121)
       The Senate amendment contained a provision (sec. 122) that 
     would authorize an extension, through fiscal year 2007, of 
     the multiyear procurement authority for Arleigh Burke-class 
     (DDG-51) destroyers.
       The House bill contained no similar provision.
       The House recedes.
     Sense of Congress on scope of conversion program for 
         Ticonderoga-class cruisers (sec. 122)
       The Senate amendment contained a provision (sec. 123) that 
     would state that the Secretary of the Navy should maintain 
     the scope of the cruiser conversion program to cover all 27 
     Ticonderoga-class cruisers with an appropriate mix of 
     modernization upgrades.
       The House bill contained no similar provision.
       The House recedes with an amendment making the scope of 
     cruiser conversion a sense of Congress.
     Continuation of contract for operation of Champion-class T-5 
         fuel tanker vessels (sec. 123)
       The House bill contained a provision (sec. 112) that would 
     prohibit the Navy's requested acquisition of Champion-class 
     T-5 fuel tanker ships.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would permit the 
     Navy to acquire the vessels. The amended provision would 
     require that the Navy maintain the current operating contract 
     for each vessel until the end

[[Page H8310]]

     of the current contract, or until the Navy or Military 
     Sealift Command is no longer using the vessel, whichever is 
     earlier.

                     Subtitle D--Air Force Programs

     Multiyear procurement authority for C-130J aircraft program 
         (sec. 131)
       The House bill contained a provision (sec. 121) that would 
     authorize the Secretary of the Air Force to enter into a 
     multiyear contract 30 days after the Secretary of Defense has 
     submitted a certification that the C-130J program is making 
     satisfactory progress toward a successful operational test 
     and evaluation.
       The Senate amendment contained a similar provision (sec. 
     131) that would authorize the Secretary of the Air Force to 
     enter into a multiyear contract that could extend for six 
     program years, subject to the program's having been cleared 
     for worldwide over-water capability.
       The conferees agree to a provision that would authorize the 
     Secretary of the Air Force to enter into a multiyear contract 
     that could extend for six program years, subject to the 
     program's having completed qualification for air assault 
     operations and installation of certain software upgrades.
     Pathfinder programs (sec. 132)
       The Senate amendment contained a provision (sec. 132) that 
     would require: (a) the Secretary of the Air Force to submit 
     to Congress a list of Air Force programs designated as 
     acquisition reform pathfinder programs by February 1, 2003; 
     (b) approval or disapproval of the spiral development plans 
     associated with these pathfinder programs by the Secretary of 
     Defense; and (c) assessments by the Under Secretary of 
     Defense (Comptroller), the Under Secretary of Defense for 
     Acquisition, Technology, and Logistics, the Director of 
     Operational Test and Evaluation, and the Joint Requirements 
     Oversight Council of those pathfinder programs that were not 
     chosen to be spiral development programs. Spiral development 
     programs are covered by another Senate provision (sec. 803).
       The House bill contained no similar provision.
       The conferees agree that Congress needs a further 
     understanding of the Department of Defense plans for 
     pathfinder programs, as well as information on lessons 
     learned from pathfinder programs that could be applied to 
     other programs. The conferees also agree that appropriate 
     oversight should be maintained over such programs.
       Therefore, the House recedes with an amendment that would 
     require the Secretary of the Air Force to submit a list of 
     Air Force programs designated as pathfinder programs by 
     February 1, 2003, and would require the Secretary of Defense 
     to ensure that the Undersecretary of Defense for Acquisition, 
     Technology, and Logistics, the Director of Operational Test 
     and Evaluation, and the Joint Requirements Oversight Council 
     maintain oversight of each pathfinder program. The amendment 
     would also require the Secretary of the Air Force to submit 
     to Congress by March 15, 2003, a report on pathfinder 
     programs describing how oversight by these organizations will 
     be accomplished, as well as the management, acquisition, and 
     test and evaluation plans for each pathfinder program. The 
     report would also contain a description of any innovative 
     business practices that could be applied to other programs. 
     The amendment would not exempt Air Force pathfinder programs 
     from the requirements for spiral development programs 
     specified in section 803.
     Leases for tanker aircraft under multiyear aircraft-lease 
         pilot program (sec. 133)
       The Senate amendment contained a provision (sec. 134) which 
     would require that the Secretary of the Air Force not enter 
     into any lease for tanker aircraft until: (1) he has 
     submitted the report required by Section 8159 of the 
     Department of Defense Appropriations Act for Fiscal Year 2002 
     (Public Law 107-117); and (2) he has obtained authorization 
     and appropriation of funds necessary to enter a lease for 
     such aircraft, in accordance with his publicly stated 
     commitments to Congress.
       The House bill contained no similar provision.
       The House recedes with an amendment that would clarify that 
     the Secretary may not enter into such a lease until the 
     Secretary either: (1) obtains authorization and appropriation 
     of needed funds; or (2) submits a new start reprogramming 
     notification to the congressional defense committees. The 
     Secretary of the Air Force informed the Committee on Armed 
     Services of the Senate February 12, 2002, that he would not 
     take any action on tanker leasing proposals without first 
     coming to both the authorization and the appropriations 
     committees to have money authorized and appropriated or 
     reprogrammed for these purposes. The conferees expect that 
     the Secretary will live up to this commitment, regardless of 
     whether the request for funds is submitted through the normal 
     budget deliberation process or through established procedures 
     observed in the reprogramming process.

                       Subtitle E--Other Programs

     Destruction of existing stockpile of lethal chemical agents 
         and munitions (sec. 141)
       The House bill contained a provision (sec. 143) that would 
     require that the chemical demilitarization program be managed 
     as a major defense acquisition program. It would also require 
     that the Under Secretary of Defense (Comptroller) provide an 
     annual certification that the budget request for the chemical 
     agents and munitions destruction program has been submitted 
     in compliance with applicable Federal laws.
       The Senate amendment contained no similar provision.
       The Senate recedes with a clarifying amendment that would 
     specify that the Comptroller certify that the budget request 
     has been submitted in accordance with section 1412 of the 
     Department of Defense Authorization Act for 1986 (Public Law 
     99-145).
       Section 1521(f) of title 50, United States Code requires 
     that funds for the chemical demilitarization program, 
     including those for military construction, ``shall be set 
     forth in the budget of the Department of Defense for any 
     fiscal year as a separate account. Such funds shall not be 
     included in the budget accounts for any military 
     department.'' The Department of Defense submitted the fiscal 
     year 2003 budget request for chemical demilitarization in an 
     Army account, contrary to the law. The conferees expect the 
     Department to comply with the law in future budget requests 
     by submitting the budget request for chemical agents and 
     munitions destruction in a Department of Defense account. 
     This certification provision is intended to help ensure such 
     compliance.
     Report on unmanned aerial vehicle systems (sec. 142)
       The House bill contained a provision (sec. 144) that would 
     require the Secretary of Defense to submit a report to 
     Congress on unmanned aerial vehicle (UAV) systems.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would require the 
     report to describe the process by which the Department will 
     ensure that any UAV program proceeding past the science and 
     technology stage does so only as part of an integrated, 
     overall Office of the Secretary of Defense strategy for UAV 
     acquisition.
       The conferees support the Department's plans to procure and 
     field a substantial number of UAVs starting in fiscal year 
     2003. However, the conferees also want to ensure that UAV 
     systems are appropriately integrated into an overall 
     departmental strategy that will minimize redundancy and 
     maximize commonality.
     Global Information Grid system (sec. 143)
       The House bill contained a provision (sec. 1527) that would 
     prohibit the obligation of funds for the Global Information 
     Grid (GIG) system until the Secretary of Defense certifies to 
     the congressional defense committees that the system is 
     secure and protected from unauthorized access.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that prohibits the 
     obligation of funds for the GIG until the Secretary of 
     Defense submits a plan to ensure that, as part of bandwidth 
     expansion efforts, the information transmitted within the 
     system is secure and protected.

                   Legislative Provisions Not Adopted

     Compass Call program
       The Senate amendment contained a provision (sec. 135) that 
     would shift $12.7 million in Compass Call aircraft 
     modifications from the Defense Airborne Reconnaissance 
     Program line to the Classified Projects line.
       The House bill contained no similar provision.
       The Senate recedes on the provision.
       By convention, outcomes of funding differences between the 
     House bill and the Senate amendment are included in the 
     tables elsewhere in this report.
     Integrated bridge system
       The Senate amendment contained a provision (sec. 121) that 
     would authorize $5.0 million for the integrated bridge 
     system.
       The House bill contained no similar provision.
       The Senate recedes on the provision. By convention, 
     outcomes of funding differences between the House bill and 
     the Senate amendment are included in the tables elsewhere in 
     this report.
     Marine Corps live fire range improvements
       The Senate amendment contained a provision (sec. 124) that 
     would authorize $1.9 million for various improvements in live 
     fire training ranges of the Marine Corps.
       The House bill contained no similar provision.
       The Senate recedes on the provision.
       By convention, outcomes of funding differences between the 
     House bill and the Senate amendment are included in the 
     tables elsewhere in this report.
     Mobile emergency broadband system
       The Senate amendment contained a provision (sec. 137) that 
     would authorize $1.0 million to buy technical communications-
     electronics equipment for the emergency mobile broadband 
     system.
       The House bill contained no similar provision.
       The Senate recedes on the provision.
       By convention, outcomes of funding differences between the 
     House bill and the Senate amendment are included in the 
     tables elsewhere in this report.
     Reallocation of certain funds for Air Force Reserve Command 
         F-16 aircraft procurement
       The House bill contained a provision (sec. 122) that would 
     authorize $14.4 million for the 36 Litening II modernization 
     upgrade kits for the F-16 block 25 and block 30 aircraft 
     (rather than for Litening AT pods for such aircraft).

[[Page H8311]]

       The Senate amendment contained no similar provision.
       The House recedes on the provision. By convention, outcomes 
     of funding differences between the House bill and the Senate 
     amendment are included in the tables elsewhere in this 
     report.
     Shipbuilding initiative
       The House bill contained a provision (sec. 111) that would 
     authorize an additional $810.0 million for shipbuilding 
     programs.
       The section would provide that if the Virginia-class prime 
     contractor were to reach an agreement with the Government as 
     of the date of enactment of this bill to spend at least 
     $385.0 million for the Virginia-class submarine program from 
     its own funds, then the provision would authorize: (1) an 
     additional $810.0 million for an additional Arleigh Burke-
     class (DDG-51) destroyer; and (2) multiyear procurement for 
     Virginia-class submarines, commencing in fiscal year 2003.
       If such an agreement were not reached, the provision would 
     authorize the following:
      (1) $415.0 million for Virginia-class submarine advance 
     procurement;
      (2) $210.0 million for cruiser conversion advance 
     procurement; and
      (3) $185.0 million for a nuclear attack submarine refueling 
     overhaul.
       The Senate amendment contained no similar provision.
       The House recedes.

         Title II--Research, Development, Test, and Evaluation

     Research, Development, Test, and Evaluation overview
       The budget request for fiscal year 2003 included an 
     authorization of $53,924.2 million for Research and 
     Development for the Department of Defense.
       The House bill would authorize $56,816.6 million.
       The Senate amendment would authorize $55,751.4 million.
       The conferees recommend an authorization of $56,777.4 
     million. Unless noted explicitly in the statement of 
     managers, all changes are made without prejudice.
     Department of Defense science and technology funding
       The budget request contained $10,009.2 million for defense 
     science and technology, including all defense-wide and 
     military service funding for basic research, applied 
     research, and advanced technology development. To address the 
     conferees' concerns with respect to critical shortcomings in 
     the budget request, the conferees recommend an authorization 
     of $10,384.7 million, an increase of $375.5 million for the 
     defense science and technology (S&T) program.
       The conferees note that the budget request represents an 
     increase of $1231.4 million, or 14.0 percent above the amount 
     requested for the fiscal year 2002 budget, and 2.7 percent of 
     the budget request. The conferees also note that the amount 
     in the budget request for science and technology is an 
     increase of $132.0 million from the amount provided by 
     Congress for fiscal year 2002. However, the Army and Navy 
     science and technology accounts each decreased more than 21 
     percent (nearly $400 million each).
       The conferees view defense science and technology 
     investments as critical to maintaining U.S. military 
     technological superiority in the face of growing and changing 
     threats to national security interests around the world, and 
     believe that both the defense agencies and the military 
     departments have vital roles in the Department's science and 
     technology investment strategy. Although pleased with the 
     overall progress in the defense science and technology 
     program, the conferees continue to be disturbed by the 
     continuing trend of overall reduction in the military 
     departments' science and technology programs and the effect 
     of that trend on the critical role that the military 
     departments play in the transition of science and technology 
     into acquisition programs.
       The conferees note the finding of the Defense Science Board 
     Letter Report on the Department of Defense Science and 
     Technology Program (August 2000) which noted that a 
     significant change in defense science and technology over the 
     past 10 years has been the erosion of military department's 
     science and technology budgets. The report notes, and the 
     conferees are aware, that a major reason the military 
     departments' science and technology budgets have declined is 
     because the services have had to emphasize funding for 
     current operations. The shift in funding away from science 
     and technology raises issues of whether the services are 
     investing sufficiently to properly address their long-term 
     technology needs.
       The Department's science and technology program has long 
     played a crucial role in the development of technology and in 
     the education and training of the scientific and engineering 
     personnel required to support the continuing technical 
     advances critical to maintain superior military capabilities. 
     The ability of today's U.S. military forces to deploy 
     anywhere in the world, sustain forward presence, and win 
     decisively on the battlefield results from past investments 
     in research and technology. For more than 50 years, these 
     investments have enabled the Department of Defense to advance 
     the frontiers of knowledge and develop the technologies 
     necessary to gain and maintain operational and technical 
     superiority.
       The conferees commend the Department of Defense commitment 
     to a goal of three percent of the budget request for the 
     defense science and technology program and progress toward 
     this goal. The conferees also note the finding in the Defense 
     Science Board report that successful high technology 
     industries invest about 3.5 percent of sales in research 
     (equivalent to the DOD S&T program) and the recommendation 
     that S&T funding should be increased to ensure the continued 
     long-term technical superiority of U.S. military forces in 
     the 21st Century. The conferees believe that the Department 
     must continue to provide the necessary investments in 
     research and technologies that ensure a strong, stable, and 
     robust science and technology program for our Armed Forces.

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                                  ARMY

     Research, Development, Test and Evaluation, Army--Overview
       The budget request for fiscal year 2003 included an 
     authorization of $6,918.5 million for Research, Development, 
     Test and Evaluation, Army in the Department of Defense.
       The House bill would authorize $6,933.3 million.
       The Senate amendment would authorize $7,301.4 million.
       The conferees recommend an authorization of $7,158.3 
     million. Unless noted explicitly in the statement of 
     managers, all changes are made without prejudice.

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                                  NAVY

     Research, Development, Test and Evaluation, Navy--Overview
       The budget request for fiscal year 2003 included an 
     authorization of $12,501.6 million for Research, Development, 
     Test and Evaluation, Navy in the Department of Defense.
       The House bill would authorize $13,274.5 million.
       The Senate amendment would authorize $12,913.1 million.
       The conferees recommend an authorization of $13,244.2 
     million. Unless noted explicitly in the statement of 
     managers, all changes are made without prejudice.

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     Marine mammal research
       The budget request included $393.6 million in PE 61153N for 
     basic research to support naval applications.
       The House bill would authorize an increase of $2.1 million 
     to the budget request for marine mammal research.
       The Senate amendment would authorize an increase of $2.0 
     million to the budget request.
       The conferees recommend an increase of $2.0 million for 
     basic research on marine mammals. The conferees support 
     research on marine mammal behavior that can help address 
     heightened public concern about the effects of military and 
     industrial activity on these animals, including additional 
     behavioral and acoustics research and efforts to detect the 
     presence of marine mammals and take mitigating action to 
     protect animals as necessary.
     Littoral support craft--experimental
       The budget request contained $57.6 million in PE 63123N for 
     force protection advanced technology development but included 
     no funds to continue the development of the Littoral Support 
     Craft--Experimental (LSC-X). The Office of Naval Research has 
     proposed to conduct a phased program to develop and 
     demonstrate an experimental littoral support craft 
     demonstrator that would provide the basis for operational 
     experiments on the contribution that such a craft could make 
     to naval operations in the littorals, and $36.2 million for 
     this purpose was provided in fiscal year 2002.
       The House bill would authorize an additional $13.7 million 
     to continue development of the LSC-X.
       The Senate amendment included no similar recommendation.
       The statement of managers (H. Rept. 107-333) accompanying 
     the National Defense Authorization Act for Fiscal Year 2002 
     (Public Law 107-107) directed the Secretary of the Navy to 
     identify the set of experimental objectives that the LSC-X 
     program is intended to explore and the objective measures of 
     effectiveness that will be used to determine whether those 
     objectives have been achieved. The conferees also directed 
     the Secretary to define the program plan, the schedule, and 
     the funding requirements for development of LSC-X.
       The Secretary of the Navy submitted a report, dated August 
     6, 2002, that provides the Navy's plan for the development of 
     the LSC-X. The report addresses the experimental concepts to 
     be explored by naval forces in a phased plan that culminates 
     in the use of the craft to test new technology and 
     operational concepts which could be candidates for future 
     support of expeditionary and littoral operations. The report 
     stated that no additional funding would be required to build, 
     outfit, and test the LSC-X prototype hull, beyond those funds 
     already provided in fiscal year 2002.
       According to the Navy's plan, the vessel should be ready 
     for initial sea trials in the summer of 2004. The conferees 
     also note the views expressed in the House report (H. Rept. 
     107-33) that a littoral support craft demonstrator such as 
     the LSC-X design, which would include a modular payload 
     capability that allows the use of different technology 
     demonstrators and warfare mission modules, could be an 
     effective experimental test bed for many of the technologies 
     that might be chosen for use on a littoral combat ship (LCS). 
     Elsewhere in this report, the conferees have directed the 
     Secretary of the Navy to address the role that various 
     demonstration platforms such as the LSC-X will play in the 
     LCS acquisition strategy.
       The conferees direct the Secretary of the Navy to develop 
     LSC-X as a complete system, including such combat, 
     communications and weapons systems interfaces as may be 
     required to demonstrate technologies and modular payloads, 
     such as the affordable weapon system, that might be 
     considered for the LCS program. To that end, the conferees 
     direct the Navy to include in the phase one ``design and 
     build'' portion of the program the total system interface 
     definitions that will be required to demonstrate systems and 
     technologies planned for the phase three ``technology and 
     operational concept evaluation'' segment of the LSC-X 
     program.
       The conferees also believe that the Navy should accelerate 
     phase three to ensure that information required for 
     application to a littoral combat ship program will be 
     available before the Navy requests funds to design such a 
     ship. The conferees recognize that this may require a 
     combination of science and technology and system development 
     and demonstration funding.
       Therefore, the conferees agree to an increase of $13.0 
     million in PE 63123N to continue development of the LSC-X 
     demonstrator. The conferees also direct the Secretary to 
     update his report on the development plan and identify any 
     funding required for the LSC-X program. The Secretary should 
     submit that updated report with the budget request for fiscal 
     year 2004.

                               AIR FORCE

     Research, Development, Test and Evaluation, Air Force--
         Overview
       The budget request for fiscal year 2003 included an 
     authorization of $17,601.2 million for Research, Development, 
     Test and Evaluation, Air Force in the Department of Defense.
       The House bill would authorize $18,803.2 million.
       The Senate amendment would authorize $18,611.2 million.
       The conferees recommend an authorization of $18,337.1 
     million. Unless noted explicitly in the statement of 
     managers, all changes are made without prejudice.

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     Multi-sensor command and control constellation
       The budget request for the Defense Emergency Response Fund 
     (DERF), Security, Communications, and Information Operations 
     activity included $488.0 million for the multi-sensor command 
     and control constellation (MC2C) program. This request 
     included $150.0 million for the purchase of a Boeing 767-
     400ER testbed aircraft for the multi-sensor command and 
     control aircraft (MC2A) and $100.0 million for integration 
     engineering for that aircraft. The request also included 
     $238.0 million to accelerate the initial sensor suite, known 
     as the multi-platform radar technology insertion program (MP-
     RTIP), for the MC2A aircraft and for the Global Hawk unmanned 
     aerial vehicle. The budget request also included $191.1 
     million in PE 27449F for the MC2C program, reflecting a total 
     request of $679.1 million.
       The House bill would authorize the budget request.
       The Senate amendment would authorize a total of $429.1 
     million for the program. This decrease of $250.0 million was 
     based on the belief that the Air Force did not have to budget 
     for the testbed aircraft and its initial integration 
     engineering in fiscal year 2003, since the MP-RTIP system 
     would not be available to install in the aircraft until 
     fiscal year 2007.
       The conferees agree to authorize a decrease of $75.0 
     million for the aircraft purchase and a decrease of $35.0 
     million for the associated integration engineering 
     activities.
       The Air Force has informed the conferees that they have 
     extended the schedule for manufacturing, integration 
     engineering, and airworthiness flight testing for the MC2A 
     testbed aircraft. The new estimate of the schedule would 
     reduce the amount of time available to modify the aircraft to 
     a configuration that would support installation of the MP-
     RTIP sensor. The revised schedule calls for delivery of the 
     testbed aircraft late in the third quarter of fiscal year 
     2004 rather than the originally planned delivery early in the 
     first quarter of fiscal year 2004.
       The conferees agree that, under the revised schedule, the 
     Air Force may begin the purchase of the aircraft in fiscal 
     year 2003, but should split the cost of the aircraft and 
     integration engineering between fiscal years 2003 and 2004. 
     Since the schedule for the aircraft has been delayed, the 
     conferees have determined that the Air Force does not require 
     all of the funding originally requested for integration 
     engineering tasks in fiscal year 2003.
       Therefore, the conferees agree to authorize a total of 
     $569.1 million for the program, a total decrease of $110.0 
     million.

                              DEFENSE-WIDE

     Research, Development, Test and Evaluation, Defense-Wide--
         Overview
       The budget request for fiscal year 2003 included an 
     authorization of $16,613.6 million for Research, Development, 
     Test and Evaluation, Defense-Wide in the Department of 
     Defense.
       The House bill would authorize $17,516.3 million.
       The Senate amendment would authorize $16,496.9 million.
       The conferees recommend an authorization of $17,659.1 
     million. Unless noted explicitly in the statement of 
     managers, all changes are made without prejudice.

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     Advanced aerospace systems
       The budget request included $246.0 million in PE 63285E for 
     research to address high payoff opportunities associated with 
     advanced aeronautical and space systems.
       The House bill would authorize a decrease of $50.0 million 
     in PE 63285E.
       The Senate amendment would authorize the budget request.
       The conferees agree to a $10.5 million reduction to PE 
     63285E. The conferees direct that this reduction not be 
     assessed against the Unmanned Combat Air Vehicle programs.
     Arrow
       The budget request included $65.7 million in PE 63881C for 
     the joint U.S./Israeli Arrow missile defense program.
       The House bill would authorize an increase of $91.0 million 
     in PE 63881C for the Arrow program.
       The Senate amendment would authorize an increase of $40.0 
     million in PE 63881C for the Arrow program.
       The conferees strongly support the Arrow program and agree 
     that, of the funding authorized for the Missile Defense 
     Agency, up to an additional $55.0 million may be used for the 
     Arrow program.

                          TEST AND EVALUATION

     Operational Test and Evaluation, Defense--Overview
       The budget request for fiscal year 2003 included an 
     authorization of $222.1 million for Operational Test and 
     Evaluation, Defense.
       The House bill would authorize $222.1 million.
       The Senate amendment would authorize $361.6 million.
       The conferees recommend an authorization of $311.6 million. 
     Unless noted explicitly in the statement of managers, all 
     changes are made without prejudice.

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[[Page H8401]]

                       Items of Special Interest

     Biometric identification technology
       The budget request included the following amounts for 
     research and development activities related to information 
     systems security programs: (1) $394.3 million in PE 33140G; 
     (2) $14.8 million in PE 33140A; (3) $18.4 million in PE 
     33140N; and (4) $9.4 million in PE 33140F. Within those 
     amounts, the budget request included $4.3 million in projects 
     related to biometric and anti-tamper evaluations in PE 33140G 
     and $6.0 million in PE 33140A supporting the Department of 
     the Army and Department of Defense Executive Agent activities 
     for biometrics.
       The House bill and the Senate amendment would support the 
     budget request.
       The House report (H. Rept. 107-592) on the Intelligence 
     Authorization Act for Fiscal Year 2003 (H.R. 4628) would 
     recommend $15.0 million within PE 33140G for a national 
     biometric security project.
       The conferees understand that use of biometric 
     identification techniques could dramatically improve national 
     infrastructure security. For example, biometric technology 
     can be used for protecting electronic information systems, 
     ensuring the authenticity of communications, and deterring 
     terrorist or other attacks against the national 
     communications infrastructure.
       The conferees believe that the Defense Department's 
     biometrics research and development programs might benefit 
     from participation in a national-level consortium. That 
     consortium might coordinate biometric research, assess 
     various biometric techniques, evaluate promising 
     technologies, and educate information professionals. Such a 
     consortium approach might be used to mobilize and coordinate 
     biometric expertise and provide an informed basis for 
     integrating biometric technologies into a comprehensive 
     approach to infrastructure security. In so doing, a 
     consortium could provide independent, private sector advice 
     and support on how best to deploy biometrics and biometric 
     technologies to help deter or respond to terrorist attacks 
     against the national critical infrastructure.
       Therefore, the conferees encourage the Director of the 
     National Security Agency to investigate the possibility of 
     sponsoring a national biometric security project and provide 
     the results of that investigation to the congressional 
     defense and intelligence committees when he completes that 
     review. The conferees also believe that it would be 
     appropriate to use resources from within the information 
     systems security program to conduct such a review.
     Delegation of research, development, test, and evaluation 
         programs and activities
       The conferees support the efforts of the Department of 
     Defense to streamline and transform itself in order to more 
     effectively modernize and achieve its mission. The conferees 
     are concerned, however, about recent efforts to devolve 
     numerous research, development, test, and evaluation (RDT&E) 
     programs within the Office of the Secretary of Defense (OSD) 
     to the services and defense components. In particular, the 
     conferees note that several programs with significant 
     congressional interest are being transferred out of OSD, many 
     of which are managed by OSD at congressional direction. It is 
     the conferees' understanding that these programs are being 
     transferred to achieve staffing and budget goals within OSD, 
     rather than to improve the execution or performance of the 
     affected programs.
       The conferees believe that the level of support that these 
     RDT&E programs will receive if managed by the services and 
     defense components will be reduced without OSD oversight. In 
     addition, many of these programs serve multiple military 
     objectives, which may not be addressed if the programs are 
     managed by the individual services or defense components.
       Therefore, the conferees direct the Secretary of Defense to 
     halt any efforts to transition the following RDT&E programs 
     to a particular service or defense component: (1) Strategic 
     Environmental Research and Development Program; (2) Defense 
     Experimental Program to Stimulate Competitive Research; (3) 
     Environmental Security Technology Certification Program; (4) 
     In-House Laboratory Independent Research; (5) High 
     Performance Computer Modernization Program; (6) High Energy 
     Laser Program; (7) Mentor Protege Program; (8) University 
     Research Initiative; (9) Foreign Comparative Test Program; 
     and (10) Joint Robotics Program.
       The conferees direct the Secretary of Defense to provide 
     notification to Congress prior to the delegation of research, 
     development, test, and evaluation activities and programs 
     from the Office of the Secretary of Defense to a service or 
     other defense component outside of OSD. The conferees direct 
     the Secretary to provide justification for any proposed 
     delegations in the form of a mandated report.
       A report on a delegation of authority should include each 
     of the following: (1) an identification of the Secretary of a 
     military department or head of a defense agency or other 
     element of the Department of Defense to whom the delegation 
     is made; (2) an evaluation of how the delegation is expected 
     to improve the efficiency and performance of the program or 
     activity in accomplishing the stated goals and purposes of 
     the program or activity; (3) a description of plans for 
     continued supervision of the program by the Office of the 
     Secretary of Defense to ensure that the program or 
     activity has sufficient resources to accomplish its stated 
     goals and purposes; and (4) an identification of any 
     changes in existing law necessary to support the 
     delegation and a request that such changes be enacted.
       The conferees note that any delegation of RDT&E activities 
     or programs by the Secretary of Defense shall be subject to 
     careful congressional scrutiny. Some of the programs proposed 
     for delegation were established at the OSD level by statute 
     and will require changes to such statutes or enactment of 
     specific authorization enabling the Secretary of Defense to 
     delegate the program, while others may involve strong 
     congressional interest. The conferees expect the Secretary of 
     Defense to consider these legal requirements and 
     congressional interests in rendering a decision on 
     devolvement.
     Management of the chemical-biological defense program
       The conferees have been informed that on September 19, 
     2002, the Under Secretary of Defense for Acquisition, 
     Technology, and Logistics (USD(AT&L)) approved an acquisition 
     decision memorandum that would reorganize management of the 
     chemical-biological defense program. The new streamlined 
     management structure would place authority and accountability 
     with specific individuals in an effort to improve the 
     program's efficiency and responsiveness to warfighter and 
     national security needs. Under the revised management 
     structure, a Joint Program Executive Office (JPEO) would be 
     established that would have responsibility for chemical- 
     biological defense acquisition programs and would report 
     through the Army Acquisition Executive to the Defense 
     Acquisition Executive. Responsibility for chemical-biological 
     defense science and technology programs, except those 
     programs separately funded and managed by the Defense 
     Advanced Research Projects Agency (DARPA), would be assigned 
     to the Defense Threat Reduction Agency (DTRA), which would 
     also continue to perform funding management functions under 
     the oversight of the Assistant to the Secretary of Defense 
     (Nuclear and Chemical and Biological Defense Programs) 
     (ATSD(NCB)). Responsibility for overall coordination and 
     integration of all activities within the chemical-biological 
     defense program, to include policy guidance, interagency and 
     international coordination responsibility, and day-to-day 
     oversight, would be exercised by the ATSD(NCB) in accordance 
     with section 1701 of the National Defense Authorization Act 
     for Fiscal Year 1994 (Public Law 103-160). The ATSD(NCB) 
     would establish and chair a permanent overarching integrated 
     product team, consisting of representatives from the military 
     services, the Joint Staff, and the Office of the Secretary of 
     Defense, to assist the ATSD(NCB) in this oversight role.
       The conferees understand that the Joint Requirements 
     Oversight Council has already established a Joint 
     Requirements Office for Nuclear, Biological and Chemical 
     (NBC) Defense in the Joint Staff, which replaces the current 
     requirements process under the Joint NBC Defense Board and 
     will integrate and establish priorities for chemical-
     biological defense requirements.
       The conferees strongly support the Under Secretary's 
     objective of establishing a streamlined management structure 
     for the chemical-biological defense program that will improve 
     authority and accountability and will ensure that the program 
     is better able to respond to warfighter and national needs. 
     The conferees agree that the establishment of a JPEO 
     responsible for acquisition programs will provide a single, 
     dedicated executive, who will be able to integrate programs 
     and funding across commodity areas and services and 
     effectively link programmatic and acquisition authority. The 
     conferees believe that the JPEO should be established as a 
     joint activity with subordinate program managers drawn from 
     all the military services.
       The conferees are concerned, however, about the assignment 
     of responsibility for the science and technology program to 
     DTRA.
       The conferees note that the predominant expertise in the 
     chemical-biological defense science and technology program 
     resides in the military departments and particularly in the 
     chemical-biological, medical biological, and medical chemical 
     defense science and technology programs of the Army, which is 
     currently responsible for approximately 70 percent of the 
     program. The conferees are concerned about how this existing 
     technical expertise would continue to be leveraged under a 
     science and technology program managed and executed by DTRA.
       The conferees note that, to date, DTRA's direct 
     participation in the chemical-biological defense program has 
     been limited, and a significant increase in DTRA's management 
     and chemical-biological science and technology capabilities 
     would be required to take on the management and execution of 
     the chemical- biological defense science and technology 
     program.
       One key attribute of the military departments' research and 
     development laboratories and centers is their close contact 
     with the services in the field that provides a constant 
     awareness of the needs of deployed soldiers, sailors, airmen, 
     and marines. The conferees are concerned about the ability of 
     a separate science and technology program under DTRA to 
     remain focused on acquisition program requirements and the 
     need to meet the needs of the warfighter.
       The conferees believe that a close and habitual working 
     relationship between the

[[Page H8402]]

     science and technology community and the acquisition 
     community is necessary for the transition of maturing 
     technologies into acquisition programs. The conferees note 
     the difficulty in transitioning technologies developed 
     under DARPA's biological warfare defense program into 
     acquisition programs. The conferees believe it is 
     important to maintain the close link between the 
     acquisition and science and technology communities under 
     the new program management.
       The conferees note further that the congressional defense 
     committees played a major role in establishing a defense-
     wide, integrated, and coordinated chemical and biological 
     defense program that would meet the needs of U.S. Armed 
     Forces and have closely monitored and maintained an intense 
     interest in this critical program. A principal feature of the 
     program was the establishment in the Office of the Secretary 
     of Defense of a strong focal point for chemical-biological 
     defense to provide overall policy and budget guidance and 
     oversight for the program.
       The conferees do not want to prejudge the decision made by 
     the USD(AT&L) and note that appropriate staff agencies have 
     begun work on the detailed plans and procedures required to 
     implement the acquisition decision memorandum. The conferees 
     request that the concerns noted above be take into account in 
     the development of those implementation plans. The conferees 
     direct that the Under Secretary review the implementation 
     plans and procedures with the congressional defense 
     committees before those plans become effective.
     Wide bandgap semiconductor electronics
       The budget request contained $5.5 million in PE 61153N for 
     basic research and $30.0 million in PE 62712E, $1.4 million 
     in PE 62705A, $3.5 million in PE 62271N, $1.75 million in PE 
     62204F for applied research in wide bandgap semiconductor 
     electronics.
       The House would authorize an increase of $8.0 million in PE 
     62271N for wide bandgap semiconductor materials technology 
     and an increase of $5.5 million in PE 63175C for silicon 
     carbide-based wide bandgap semiconductor technology.
       The Senate amendment would authorize an increase of $2.5 
     million in PE 62271N for wide bandgap semiconductor materials 
     and devices for application in advanced power electronics, 
     communications, and sensor systems, $2.5 million for silicon 
     carbide materials and device research, and $1.5 million for 
     advanced semiconductor materials research for high power 
     amplifiers. The amendment would also authorize an increase of 
     $10.0 million in PE 63175C for wide bandgap semiconductor 
     technology.
       The conferees agree to authorize $5.5 million in PE 61153N 
     for basic research and $30.0 million in PE 62712E, $1.4 
     million in PE 62705A, and $1.75 million in PE 62204F for 
     applied research in wide bandgap semiconductor electronics as 
     contained in the budget request. The conferees also agree to 
     authorize increases in PE 62271N of $2.5 million for wide 
     bandgap semiconductor materials and devices, $2.5 million for 
     silicon carbide materials and devices, and $1.5 million for 
     advanced semiconductor materials, and increases in PE 63175C 
     of $2.5 million for silicon carbide-based wide bandgap 
     semiconductor technology and $2.5 million for gallium nitride 
     technology.
       Section 212 of the National Defense Authorization Act for 
     Fiscal Year 2002 (Public Law 107-107) required the Secretary 
     of Defense to carry out a cooperative program to develop and 
     demonstrate advanced technologies and concepts for future 
     naval radar systems and other applications with particular 
     emphasis on development of advanced electronic materials to 
     extend the range and sensitivity of radars. The conferees 
     have reviewed the report by the Director of Defense Research 
     and Engineering (DDRE), dated May 28, 2002, that addresses 
     the cooperative program. Collaborating agencies under the 
     overall direction of the DDRE include the Defense Advanced 
     Research Projects Agency (DARPA), the Navy, the Army, the Air 
     Force, and the Missile Defense Agency.
       The conferees note that the program focuses on activities 
     needed to accelerate the development, maturation, and 
     transition of technologies for advanced electronic materials 
     to extend the range and sensitivity of naval radars, 
     including radio frequency/microwave and high power wide 
     bandgap semiconductor materials and devices, and reduce the 
     technical risk and expedite the insertion of the technology 
     in military systems. While several insertion opportunities 
     exist across the services, the next generation naval radar is 
     the primary insertion target. To support that development, an 
     objective of the overall wide bandgap program is to 
     demonstrate the ability to produce wide bandgap high power 
     amplifiers that can be expected to meet cost and performance 
     criteria of the Navy's advanced ship-based radar plan for 
     sea-based missile defense. The goal of the program for these 
     devices is to achieve a sufficient level of technology 
     maturity to support the radar's preliminary design review 
     that is now anticipated to occur between fiscal year 2007 and 
     2008.
       The conferees note that the DDRE's report reflected an 
     initial investment in the collaborative program of $54.9 
     million in fiscal year 2002. The fiscal year 2003 budget 
     request for the program totals $40.7 million, including $30.0 
     million in DARPA, $3.7 million in the Navy, $1.8 million in 
     the Air Force, $1.4 million in the Army, and $3.9 million for 
     Defense Production Act Title III authority to facilitate the 
     transition of technologies through the establishment of 
     enhanced production capabilities.
       The conferees note that this level of funding is not 
     consistent with previous analyses, which have recommended 
     an increased science and technology investment in wide 
     bandgap technology that would total approximately $50 
     million per year over a five-year period, beginning in 
     fiscal year 2002, in order to develop the technologies 
     necessary to field advanced radar systems in time to meet 
     the Navy and the Department of Defense (DOD) requirements 
     in 2015. The conference agreement increases the investment 
     in the program to the recommended level.
       The conferees commend the participating DOD agencies for 
     development of the collaborative program. The conferees place 
     a high priority on the development of the technology for 
     advanced wide bandgap semiconductor materials and devices for 
     future naval radar and other applications and intend to 
     monitor the program closely.

                     Legislative Provisions Adopted

              Subtitle A--Authorization of Appropriations

     Authorization of appropriations (sec. 201)
       The Senate bill contained a provision (sec. 201) that would 
     authorize the recommended fiscal year 2003 funding levels for 
     all research, development, test, and evaluation accounts.
       The House amendment contained a similar provision.
       The conference agreement includes this provision.
     Amount for defense science and technology (sec. 202)
       The budget request for fiscal year 2003 included an 
     authorization of $9,677.2 million for science and technology 
     programs in the Department of Defense. The Defense Emergency 
     Response Fund request included an authorization of $332.0 
     million for science and technology programs.
       The House bill would authorize $10,350.2 million.
       The Senate amendment would authorize $10,155.4 million.
       The conferees recommend an authorization of $10,384.7 
     million for Department of Defense science and technology 
     programs. Unless noted explicitly in the statement of 
     managers, all changes are made without prejudice.
     Defense health programs (sec. 203)
       The budget request for fiscal year 2003 included an 
     authorization of $67.2 million for research, development, 
     test, and evaluation activities for carrying out health care 
     programs, projects, and activities of the Department of 
     Defense.
       The House bill and Senate amendment would both authorize 
     the amount of the budget request.
       The conferees recommend an authorization of $67.2 million 
     for research, development, test and evaluation activities for 
     carrying out health care programs, projects, and activities 
     of the Department of Defense.

    Subtitle B--Program Requirements, Restrictions, and Limitations

     RAH-66 Comanche aircraft program (sec. 211)
       The House bill contained a provision (sec. 211) that would 
     place a cost cap of $6.0 billion as the total amount that 
     could be spent on the engineering and manufacturing 
     development (EMD) phase of the RAH-66 Comanche aircraft 
     program. The provision would also require an annual 
     Department of Defense Inspector General program review until 
     the EMD phase is completed.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would require the 
     Secretary of the Army to provide the Committees on Armed 
     Services of the Senate and House of Representatives with a 
     quarterly report on the progress of the restructured RAH-66 
     Comanche aircraft program during fiscal year 2003.
       The conferees repeat both their strong support for and 
     concern about the RAH-66 Comanche aircraft program as 
     highlighted in the statement of managers accompanying the 
     National Defense Authorization Act for Fiscal Year 2002 
     (Public Law 107-107). The conferees believe this aircraft 
     will be a transformational weapon system capable of an array 
     of missions to include manned reconnaissance, light attack, 
     and network-centric warfare. The conferees, however, have 
     been disappointed with the Army's lackluster support in prior 
     years for this program. The Army has consistently failed to 
     provide the appropriate funds required to ensure that the 
     program could meet its earlier established fiscal year 2006 
     initial operational capability (IOC), resulting in program 
     slips and numerous program restructures.
       In the aforementioned statement of managers, the conferees 
     questioned the reliability of any new cost estimates and EMD 
     program milestones and expected an accurate estimate of funds 
     required to complete EMD and the new time line and plan for 
     bringing the Comanche to IOC to be submitted with the fiscal 
     year 2003 budget request. (Section 211 of the House bill 
     addressed this lack of response.)
       The Army has finally reacted to this concern and is once 
     again restructuring the program, the sixth such restructuring 
     since fiscal year 1988, with an approximate $4.0 billion 
     infusion of funds to complete the EMD phase of the program. 
     The information the Army has belatedly provided the conferees

[[Page H8403]]

     gives some cause for hope that the program is now more 
     realistically structured and funded to field this critical 
     capability for the Objective Force beginning in fiscal year 
     2009. The conferees believe the commissioning of a Comanche 
     Independent Review Panel, which contributed to this 
     restructuring, and the Army's due consideration of that 
     panel's recommendations are positive steps. The conferees 
     will closely monitor the upcoming Defense Acquisition Board's 
     decision on the restructured program and subsequent actions 
     related to this program as reflected in the quarterly reports 
     required by this conference. The conferees reiterate their 
     concern that the program remain on schedule during fiscal 
     year 2003 and be adequately funded in the out years to meet 
     the new fiscal year 2009 IOC.
     Extension of requirements relating to management 
         responsibility for naval mine countermeasures programs 
         (sec. 212)
       The House bill contained a provision (sec. 212) that would 
     extend, through fiscal year 2008, the requirement for the 
     Under Secretary of Defense (Acquisition, Technology, and 
     Logistics) (USD(AT&L)) to have primary responsibility for 
     developing and testing naval mine countermeasures (MCM) 
     systems. The provision would permit waiving that requirement 
     annually, subject to certification by the Secretary of 
     Defense that: (1) the Secretary of the Navy (SECNAV) has 
     submitted an updated mine countermeasures master plan; (2) 
     the budget for that fiscal year proposes sufficient resources 
     for executing that plan; and (3) the Chairman of the Joint 
     Chiefs of Staff (CJCS) concurs with the plan and resources.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would require the 
     Joint Requirements Oversight Council (JROC) to carry out 
     title 10 responsibilities regarding the Secretary of the Navy 
     MCM plan. The amendment would also require the USD(AT&L) to 
     submit a notification to the congressional defense committees 
     if the Navy intends to change the plan and budget that have 
     been certified and submitted to Congress.
       The USD(AT&L) letter to Congress, dated February 6, 2002, 
     provided a review of the Navy's fiscal year 2002 MCM plan. 
     That letter stated, ``the assessments continue to show that 
     the programmed changes in equipment and force structure will 
     significantly reduce the time required to counter a mine 
     threat and hence, validate the Navy investment strategy.'' 
     The SECNAV reported in a letter to Congress on March 25, 
     2002, that ``the Commander, Fleet Forces Command has 
     conducted a fleet review of all Mine Countermeasures Plans 
     and Programs (MCM) and Operational Requirements Documents 
     (ORDs) and concurs with all programs and ORDs.'' In a letter 
     to Congress, dated April 18, 2002, the USD(AT&L) certified 
     the Navy MCM program for fiscal year 2003.
       Despite the USD(AT&L) and CJCS reviews and subsequent 
     certification of both the fiscal year 2002 and 2003 SECNAV 
     MCM plans and budget requests, the Navy has recently taken 
     actions without congressional consultation or notification to 
     change those plans and associated programs significantly. 
     These actions occurred after a hearing cycle which included 
     reviews of both MCM plans and programs and the processes for 
     changing those plans and programs.
       Recent events have included the following:
       (1) Senior Navy officials testified before Congress that 
     congressional consultation and concurrence would be sought 
     prior to removing appropriated and authorized capabilities 
     from Navy ships.
       (2) Shortly after the USD(AT&L) submitted the fiscal year 
     2003 certification, a senior member of the staff of the Chief 
     of Naval Operations, apparently without consultation with the 
     Director of Expeditionary Warfare and without consulting or 
     notifying Congress, issued an order for the DDG-51 program 
     manager to delete certain organic mine countermeasures 
     capability from ships that were nearing delivery and that 
     were under construction. This action had the effect of making 
     a fundamental change to the programs upon which the USD(AT&L) 
     made his certification.
       (3) In August, two senior military officers, without 
     consultation or notification to Congress, issued an order to 
     remove a key MCM system that was included in the approved, 
     certified, appropriated and authorized MCM plan.
       The conferees believe that these circumstances are 
     sufficient evidence for their concern regarding the oversight 
     of MCM programs and for requiring that the Department provide 
     closer supervision of the execution of the certified plans 
     and budgets.
     Revised requirements for plan for Manufacturing Technology 
         Program (sec. 213)
       The House bill contained a provision (sec. 214) that would 
     revise the requirements for the annual plan for the 
     Manufacturing Technology Program (ManTech).
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Advanced SEAL Delivery System (sec. 214)
       The Senate bill contained a provision (sec. 212) that would 
     authorize the Secretary of Defense to use any funds that were 
     authorized and appropriated for fiscal year 2002 for Advanced 
     SEAL Delivery System (ASDS) advance procurement, but are no 
     longer needed for that purpose, for fiscal year 2003 ASDS 
     research, development, test and evaluation.
       The House bill contained no similar provision.
       The House recedes with an amendment that would authorize 
     the Secretary of Defense to transfer $13.7 million, which was 
     authorized and appropriated for fiscal year 2002 for ASDS 
     advance procurement, to fiscal year 2003 ASDS research, 
     development, test and evaluation.
     Army experimentation program regarding design of the 
         objective force (sec. 215)
       The Senate amendment contained a provision (sec.213) that 
     would require the Secretary of the Army to submit a report to 
     Congress on the details of an Objective Force experimentation 
     program no later than March 30, 2003, and to fund that 
     experimentation program as a separate program element in the 
     fiscal year 2004 budget request submission to Congress.
       The House bill contained no similar provision.
       The House recedes with an amendment that would extend the 
     date for the report submission to March 31, 2003.
     Program to provide Army with self-propelled Future Combat 
         Systems non-line-of-sight cannon indirect fire capability 
         for the objective force (sec. 216)
       The budget request contained $475.6 million, composed of 
     $246.5 million in PE 63854A and $229.1 million in PE 64854A 
     for continued development of the Crusader self-propelled 
     artillery system.
       The Senate amendment contained a provision (sec.214) that 
     would move the $475.6 million requested in the fiscal year 
     2003 budget for the Crusader artillery system to a different 
     budget line--the Army's Future Combat Systems (FCS)--to be 
     used only to meet the Army's organic indirect fire needs. 
     Upon submission of the report to Congress required by the 
     provision, the Secretary of Defense would be allowed to seek 
     to reprogram the funds for Crusader termination costs, for 
     continued research and development of the Crusader artillery 
     system, or for other Army programs identified as the best 
     available alternatives to the Crusader for providing improved 
     indirect fire for the Army. The provision would require the 
     Chief of Staff of the Army to 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 submit his 
     recommendations. The provision would further require an 
     annual report to be submitted to the congressional defense 
     committees on the investments proposed to be made on 
     indirect fire programs for the Army.
       The report required by the provision was submitted to 
     Congress by the Chief of Staff of the Army, through the 
     Office of the Under Secretary of Defense for Acquisition, 
     Logistics and Technology on July 26, 2002.
       The House bill contained no similar provision, but the 
     report accompanying the bill directed the Secretary of 
     Defense to continue Crusader development until completion of 
     the Army's Analysis of Alternatives in support of the 
     Milestone B decision for Crusader scheduled for the third 
     quarter of fiscal year 2003.
       The House recedes with an amendment that would direct the 
     Secretary of Defense to carry out a program to provide the 
     Army, no later than fiscal year 2008, with a self-propelled 
     Future Combat Systems (FCS) Non-Line-of-Sight (NLOS) Cannon 
     to equip the Objective Force.
       The conferees have carefully considered the Secretary of 
     Defense's decision to terminate the Crusader Artillery System 
     and the budget amendment request the Administration submitted 
     to the congressional defense committees to transfer the 
     $475.6 million requested for Crusader in the fiscal year 2003 
     budget request to other programs. The Army Chief of Staff has 
     reported that he ``fully supports OSD proposals to accelerate 
     Army precision fire initiatives and further develop other 
     programs to enhance fire support to ground forces. However, 
     the acceleration of existing programs alone will not fully 
     meet the operational requirement for organic, indirect fires 
     by 2008.'' He recommends funding the fielding of a Future 
     Combat Systems Non-Line-of-Sight Cannon and establishing a 
     networked fires capability by 2008, stating that ``we cannot 
     fully employ Objective Force operational concepts without 
     this capability.''
       The conferees believe that, in order to deliver such a 
     system by 2008, maximum advantage should be taken of 
     technology developed through other programs, such as the 
     composite armored vehicle, Crusader, and the joint United 
     States-United Kingdom Future Scout and Cavalry System.
       To reduce risk in this effort, the conferees have 
     authorized increases totaling $293.0 million to the $475.6 
     million requested for Crusader in the fiscal year 2003 budget 
     request as reflected in the following program elements:

                        [In millions of dollars]

PE 62303A Missile Technology: Micro Electro-mechanical Systems (MEM15.0
PE 63005A Combat Vehicle and Automotive Advanced Technology: Future 
  Scout and Cavalry Vehicle Demo...................................10.0
PE 63645A Future Combat Sys Dem/Val: F 48 NetFires................114.5
PE 63778A MLRS Product Imp. Program:
  HIMARS...........................................................10.0
  Guided MLRS......................................................45.0
PE 63802A Weapons and Munitions--ADV DEV: Precision Guided Mortar 
  Munitions (PGMM).................................................10.8

[[Page H8404]]

PE 64645A Armored System Modernization: Future Combat System......105.0
PE 63854A Artillery Systems Dem/Val: F 47 FCS NLOS Cannon.........368.5
PE 64814A Artillery Munitions--EMD: Excalibur......................48.3
PE 64854A Artillery Sys--EMD: Paladin...............................7.5
PE 23726A Army Field Artillery Data Sys.............................4.0
PE 23735A Combat Vehicle Improvement Program: Abrams Engine........28.6
PE 35204A Tactical Unmanned Aerial Vehicle.........................11.4
     Prohibition on transfer of Medical Free Electron Laser 
         program (sec. 217)
       The Senate amendment contained a provision (sec. 217 ) that 
     would prohibit the transfer of the Department of Defense 
     Medical Free Electron Laser (MFEL) Program to any other 
     department or agency of the Federal Government.
       The House bill contained no similar provision.
       The House recedes with a technical amendment.
       The conferees note that the MFEL program continues to fund 
     high quality, peer-reviewed research that is oriented towards 
     military medical applications. The conferees believe that the 
     program transfer was inappropriate and, therefore, support 
     the retention and funding of the MFEL program within the 
     Department of Defense.
     Littoral combat ship program (sec. 218)
       The budget request for fiscal year 2003 included no funding 
     for research and development for a littoral combat ship 
     (LCS). The Senate amendment contained a provision (sec. 219J) 
     that would authorize 4.0 million in PE 63563N to develop 
     requirements for a littoral ship.
       The House bill contained no similar provision.
       The House recedes with an amendment that would authorize 
     $4.0 million in PE 63563N to develop requirements for a 
     littoral combat ship and would require certain reporting 
     requirements from the Secretary of the Navy.
       Subsequent to hearings and markup by the Committees on 
     Armed Services of the Senate and the House of Representatives 
     of the fiscal year 2003 authorization request, Navy officials 
     requested additional funding authorization for research and 
     development of an LCS.
       An LCS program may be necessary to provide capabilities to 
     carry out the National Military Strategy. However, neither 
     the Office of the Secretary of Defense, the Joint Chiefs of 
     Staff, nor the Navy has provided any indication that they 
     have completed sufficient work on any number of prerequisites 
     that the Department of Defense (DOD) is required to meet 
     before concluding that new development is required to provide 
     the capabilities inherent in an LCS. These include 
     requirements in title 10, United States Code, and internal 
     DOD directives, such as DOD 5000.2-R Mandatory Procedures for 
     Major Defense Acquisition Programs and Chairman, Joint Chiefs 
     of Staff (CJCS) Instruction 3170.01B.
       The LCS has not been vetted through the Joint Requirements 
     Oversight Council (JROC) process, particularly regarding 
     possible alternatives and the relative priority to meet valid 
     requirements. This should be completed prior to initiation of 
     any program which is intended to support joint combat 
     operations.
       The conferees believe that the Navy needs to assess the 
     adequacy of existing and planned platforms to test the 
     littoral combat ship concept and how these platforms will be 
     used in the development, test, and evaluation of the LCS and 
     its mission modules. The conferees strongly believe that the 
     Navy must capitalize on ongoing and planned experiments, 
     demonstrations, and evaluations of existing, prototype, and 
     experimental hull forms and platforms to better inform the 
     Navy's decisions on the LCS. Some of these have been 
     completed, but others are planned and await modification or 
     construction of the hull form and platform demonstrators.
       The conferees are also concerned that the Navy's strategy 
     for the LCS does not clearly identify the plan and funding 
     for development and evaluation of the mission modules upon 
     which the operational capability of the LCS will depend. The 
     conferees believe that the strategy for LCS development must 
     provide for the identification, transition, and integration 
     of the component technologies and subsystems to be included 
     in the several mission modules and for the evaluation of each 
     mission module as a system before its deployment on the LCS.
       The conferees expect the JROC and the Navy to specifically 
     deal with a number of concerns in fulfilling the requirements 
     in the LCS provision. These include:
       (1) Assessing the extent to which unmanned systems could be 
     capable of completing the missions instead of a manned LCS 
     vessel. Briefings on the LCS indicate that an LCS would be 
     used for operations determined to be ``too risky'' for larger 
     surface combatants. This raises questions about the level of 
     risk the Navy has determined to be acceptable for an LCS that 
     is unacceptable for larger surface combatants.
       (2) Identifying the threat or threats that have negated the 
     Navy's previous investments in multi-mission ships and made 
     the missions of anti-submarine warfare, anti-surface warfare, 
     and anti-mine warfare ``too risky'' for these ships. The Navy 
     has invested heavily in providing combatants of all types and 
     displacements with onboard and offboard sensors, weapons, and 
     information connectivity. This investment was directed to 
     ensure that multi-mission ships could operate at any time and 
     in any place.
       (3) Determining the level of support from other combatants 
     and auxiliaries that LCS vessels will require, and whether 
     this will lead to altered planning assumptions for sizing the 
     force. An open question regarding a ``focused mission'' 
     vessel such as an LCS is whether the vessel will be able to 
     operate with impunity in the presence of threats outside its 
     focused mission warfare area. If not, the Navy may have to 
     adjust operating and support concepts in more significant 
     ways than merely adding LCS vessels to the current battle 
     group.
       (4) Identifying the appropriate level of helicopter support 
     in the baseline LCS vessel. The naval helicopter has been a 
     proven key capability for combatant surface ships when 
     conducting the three primary warfare areas stated for LCS. 
     Navy briefings indicate that the LCS will require a 
     helicopter capability to carry out its missions and will 
     operate forward of the battle group. Nevertheless, the Navy 
     appears to have forgotten the lessons learned from the first 
     flight of Arleigh Burke-class destroyers and has not included 
     a naval helicopter hangar as a key requirement for the LCS.
       (5) Assessing the implications of using and supporting non-
     marinized systems as component capabilities on LCS vessels. 
     For example, the Navy has indicated the desire for using OH-
     58D helicopters on LCS. Although these Army helicopters have 
     flown from Navy ships for short periods, they have limited 
     capabilities for LCS mission areas. Naval helicopters, 
     however, have the durability and system integration required 
     to provide joint and battle group synergism for LCS missions.
       (6) Identifying whether there are changes in tactics and 
     procedures which the Navy could apply to current platforms 
     and concepts of operations that would accomplish the 
     envisioned LCS missions without putting additional pressure 
     on an already underfunded ship acquisition plan.
       (7) Assessing the assignment of LCS-unique missions to the 
     U.S. Coast Guard, close allies, or coalition partners. If we 
     are to continue assuming joint and coalition warfare, perhaps 
     the U.S. Navy could count on the Coast Guard or smaller 
     navies of allies to contribute more effectively by performing 
     ``small ship'' mission.

                 Subtitle C--Ballistic Missile Defense

     Report requirements relating to ballistic missile defense 
         programs (sec. 221)
       The Senate amendment contained provisions (secs. 222 and 
     223) that would require the Secretary of Defense to submit to 
     the congressional defense committees reports containing 
     programmatic information on the Ground-based Midcourse and 
     Air-based Boost programs. The Senate amendment also contained 
     a provision (sec. 221) that would require the Department to 
     submit to the congressional defense committees reports 
     containing operational assessments of these programs by the 
     Director of Operational Test and Evaluation (DOT&E) and an 
     annual review of the cost, schedule, and performance criteria 
     of all ballistic missile defense (BMD) programs by the Joint 
     Requirements Oversight Council (JROC).
       The House bill contained no similar provision.
       The conferees agree that the Department must provide 
     adequate programmatic information on BMD programs to the 
     congressional defense committees and notes that the annual 
     budget justification materials, together with the report on 
     the cost, schedule, testing, and performance goals of BMD 
     programs required by section 232 of the National Defense 
     Authorization Act for Fiscal Year 2002 (Public Law 107-107), 
     are appropriate vehicles for transmitting such information.
       Therefore, the Senate recedes on sections 221, 222 and 223 
     with an amendment that would require the Secretary of Defense 
     to annually submit to Congress, with the budget 
     justification materials, the performance goals and 
     development baselines for each block of each BMD system 
     that could be fielded and for BMD systems that have been 
     designated by Congress as special interest items. The 
     amendment would require submission of funding profiles 
     (i.e., year-by-year funding estimates) for each block of 
     each BMD system that could be fielded.
       Finally, the amendment would require the JROC to perform a 
     one-time review of the cost, schedule, and performance 
     criteria for BMD programs in order to assess the validity of 
     those criteria in relation to military requirements and to 
     include the results of the review with the annual statement 
     of BMD cost, schedule, and performance goals required by the 
     National Defense Authorization Act for Fiscal Year 2002 
     (Public Law 107-107).
       The conferees believe that a cooperative relationship 
     between the Director of Operational Test and Evaluation and 
     the Missile Defense Agency is and will remain important to 
     successful execution of ballistic missile defense programs. 
     The conferees are concerned that DOT&E reporting on BMD 
     programs, included in the DOT&E annual report dated February 
     2002, may not have been based on information generated with a 
     sufficient level of interaction between MDA and DOT&E. The 
     conferees are encouraged by recent statements by DOT&E that 
     DOT&E involvement in BMD programs is now acceptable and 
     expect that the Missile Defense

[[Page H8405]]

     Agency will continue to work cooperatively with DOT&E.
     Responsibility of Missile Defense Agency for research, 
         development, test, and evaluation related to system 
         improvements of programs transferred to military 
         departments (sec. 222)
       The House bill contained a provision (sec. 232) that would 
     amend title 10, United States Code, to require the Director 
     of the Missile Defense Agency to retain responsibility for 
     research, development, test and evaluation related to 
     improvements of missile defense systems and system components 
     that have been transferred to the military departments for 
     procurement and fielding.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Limitation on obligation of funds for Theater High Altitude 
         Area Defense Program pending submission of required life-
         cycle cost information (sec. 223)
       The Senate amendment contained a provision (sec. 224) that 
     would require the Secretary of Defense to submit to Congress 
     by January 15, 2003, certain types of programmatic 
     information for the Theater High Altitude Area Defense 
     (THAAD) program, including the development schedule and 
     planned procurement schedule. The provision would also 
     require submission of a life cycle cost estimate specifically 
     required by section 232 of the National Defense Authorization 
     Act for Fiscal Year 2002 (Public Law 107-107) for programs 
     such as THAAD in their Engineering and Manufacturing 
     Development phase. The provision would specify that no more 
     than 50 percent of the amount authorized to be appropriated 
     in fiscal year 2003 for THAAD may be expended until the 
     congressional defense committees have received the 
     information required by the provision.
       The House bill contained no similar provision.
       The House recedes with an amendment that would specify that 
     no more than 85 percent of the amount authorized to be 
     appropriated in fiscal year 2003 for THAAD may be obligated 
     until Congress has received the life cycle cost estimate 
     required by last year's National Defense Authorization Act. 
     Other reporting requirements related to THAAD are included in 
     Section 221.
       The conferees note that a development schedule and planned 
     procurement schedule need to be developed in order to provide 
     such a life cycle cost estimate. The conferees also recognize 
     that the Missile Defense Agency (MDA) plans to evolve missile 
     defense system capabilities through spiral development and 
     will acquire the ballistic missile defense systems in an 
     evolutionary acquisition process. The conferees expect that 
     MDA will provide the congressional defense committees the 
     basis for understanding the THAAD life cycle cost estimate.
       The conferees also note that under the Defense Department's 
     plan for obligation of THAAD funding, the Department should 
     have until February 2003 to submit the required life cycle 
     cost estimate prior to any adverse funding impacts to the 
     THAAD program. Therefore, the conferees expect the life cycle 
     cost estimate to be provided on or before the date of 
     submission of the fiscal year 2004 budget justification 
     materials in February 2003.
     Provision of information on flight testing of Ground-based 
         Midcourse National Missile Defense system (sec. 224)
       The Senate amendment contained a provision (sec. 227) that 
     would require the Director of the Missile Defense Agency 
     (MDA) to submit to the congressional defense committees a 
     thorough report on each flight test of the Ground-based 
     Midcourse national missile defense system no later than 120 
     days after the test.
       The House bill contained no similar provision.
       The House recedes with an amendment that would require the 
     Director of the MDA to communicate to Congress the results of 
     each flight test, including a thorough discussion of the 
     content and objectives of the test, a statement regarding 
     whether each objective was achieved, and a discussion of the 
     reasons, if any, for not achieving the objectives.
       The conferees note that the amendment, which does not 
     require a report by a fixed date months after the flight 
     test, would provide the Director of the MDA the flexibility 
     to provide Congress with more complete information in a more 
     timely fashion.
     References to new name for Ballistic Missile Defense 
         Organization (sec. 225)
       The House bill contained a provision (sec. 233) that would 
     make appropriate conforming changes to reflect the change of 
     the Ballistic Missile Defense Organization's name to the 
     Missile Defense Agency.
       The Senate amendment contained a similar provision (sec. 
     225).
       The House recedes with a clarifying amendment.
     One-year limitation on use of funds for nuclear armed 
         interceptors (sec. 226)
       The Senate amendment contained a provision (sec. 226) that 
     would prevent any funds from being obligated for research, 
     development, test, evaluation, procurement or deployment of 
     nuclear armed interceptors for a missile defense system.
       The House bill contained no similar provision.
       The House recedes with an amendment that would prohibit 
     obligation of any fiscal year 2003 funds.

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

       Department of Defense Test Resource Management Center (sec. 
     231)
       The Senate amendment contained a provision (sec. 231) that 
     would establish a Department of Defense (DOD) Test and 
     Evaluation Resource Enterprise, which would report to the 
     Director of Operational Test and Evaluation.
       The House bill contained no similar provision.
       The House recedes with an amendment that would establish a 
     DOD Test Resource Management Center. The Test Resource 
     Management Center would be a DOD Field Activity headed by a 
     Director, who would be a three-star officer, and a Deputy 
     Director, who would be a senior civilian with substantial 
     experience in the field of test and evaluation. The Director 
     would be subject to supervision by the Under Secretary of 
     Defense for Acquisition, Technology, and Logistics. The 
     Director would report directly to the Under Secretary without 
     intervening authority.
       Under the conference amendment, the Test Resource 
     Management Center would be responsible for developing a 
     strategic plan for DOD test and evaluation resources; 
     reviewing and certifying the adequacy of proposed DOD budgets 
     for test and evaluation activities; and administering the 
     Central Test and Evaluation Investment Program (CTEIP) and 
     the DOD program for test and evaluation science and 
     technology.
       The CTEIP and science and technology programs would not be 
     transferred to the Center until the beginning of the first 
     fiscal year after the Department submits a strategic plan for 
     test and evaluation resources to the congressional defense 
     committees. The conferees expect that CTEIP funds will 
     continue to be used to fund the development of critically 
     needed, high priority test and evaluation capabilities for 
     joint and multi-service requirements. The CTEIP program is 
     not intended to be a substitute for adequate funding of 
     service-specific test and evaluation capabilities by the 
     military services.
     Objective for institutional funding of test and evaluation 
         facilities (sec. 232)
       The Senate amendment contained a provision (sec. 232) that 
     would transfer testing funds from the research and 
     development programs of the military departments and defense 
     agencies to the major test and evaluation investment accounts 
     of the Department of Defense.
       The House bill contained no similar provision.
       The House recedes with an amendment that would require the 
     Secretary of Defense to establish the objective of ensuring 
     that, by fiscal year 2006: (1) the institutional and overhead 
     costs of the Major Range and Test Facility Base (MRTFB) are 
     fully funded through the Department's major test and 
     evaluation investment accounts and other direct 
     appropriations; and (2) no more than the direct costs for the 
     use of the MRTFB facilities and resources are charged to 
     users of the MRTFB.
       The conferees expect the Secretary of Defense to submit a 
     budget for fiscal year 2004 that will begin to fund the 
     military departments and defense agency MRTFB institutional 
     programs at a level such as to achieve the above objective by 
     fiscal year 2006.
     Uniform financial management system for Department of Defense 
         test and evaluation facilities (sec. 233)
       The Senate amendment contained a provision (sec. 234) that 
     would require the Secretary of Defense to implement a 
     single financial management and accounting system for all 
     test and evaluation facilities of the Department of 
     Defense (DOD) within two years after the date of enactment 
     of this Act.
       The House bill contained no similar provision.
       The House recedes with an amendment that would require the 
     Secretary to implement a single financial management and 
     accounting system for test and evaluation facilities as soon 
     as possible, with the objective that such system be 
     implemented no later than September 30, 2006.
     Test and evaluation workforce improvements (sec. 234)
       The Senate amendment contained a provision (sec. 235) that 
     would require the Under Secretary of Defense for Acquisition, 
     Technology and Logistics to develop a plan to ensure that the 
     test and evaluation workforce of the Department of Defense 
     (DOD) is of sufficient size and has the expertise needed to 
     ensure that the testing of DOD systems identifies issues of 
     military suitability and effectiveness in a timely and 
     accurate manner.
       The House bill contained no similar provision.
       The House recedes with a technical amendment.
     Compliance with testing requirements (sec. 235)
       The Senate amendment contained a provision (sec. 236) that 
     would require the Director of Operational Test and Evaluation 
     to include an assessment of waivers of and deviations from 
     testing requirements in his annual report to Congress.
       The House bill contained no similar provision.
       The House recedes.

[[Page H8406]]

                       Subtitle E--Other Matters

     Pilot programs for revitalizing Department of Defense 
         laboratories (sec. 241)
       The House bill contained a provision (sec. 213) that would 
     reauthorize pilot programs intended to revitalize Department 
     of Defense laboratories.
       The Senate amendment contained a similar provision (sec. 
     241) that would reauthorize and expand the same pilot 
     programs.
       The House recedes with an amendment that would eliminate 
     the establishment of new excepted service positions under the 
     pilot program.
       The conferees are concerned that the Department of Defense 
     has made very limited use of authorities granted under this 
     and other pilot and demonstration programs that could help 
     address personnel and other issues at laboratories and test 
     centers. Congress has provided the Department with 
     considerable legislative authority for personnel reform, 
     which remains unused. It is the intent of Congress that the 
     authority granted to the Secretary under section 342 of the 
     National Defense Authorization Act for Fiscal Year of 1995 
     (Public Law 103-337) and section 1114 of the National Defense 
     Authorization Act for Fiscal Year 2001 (Public Law 106-398) 
     be broadly and expansively interpreted by the Secretary and 
     that the Secretary exercises his discretion to the fullest 
     extent of the law to address the unique personnel issues 
     associated with government scientists and engineers. These 
     pilot programs and other demonstration projects should be 
     used to experiment with novel personnel systems, procedures, 
     and new business practices to derive lessons learned and help 
     shape a coordinated strategy to address personnel and 
     laboratory reform issues in the future.
     Technology Transition Initiative (sec. 242)
       The House bill contained a provision (sec. 215) that would 
     establish a program to accelerate the transition of 
     technologies into fielded defense systems.
       The Senate amendment contained a provision (sec. 242) that 
     would establish a similar program.
       The House recedes with an amendment that would modify the 
     Technology Transition Initiative and its procedures.
       The Technology Transition Initiative establishes a joint 
     funding mechanism for transition projects between the Office 
     of the Secretary of Defense and a military service or defense 
     agency. The Initiative also establishes a Department-wide 
     Technology Transition Council consisting of representatives 
     of the science and technology, acquisition, and operational 
     communities that would advise the Initiative Manager on the 
     Initiative as well as other technology transition issues.
       The conferees direct the Initiative Manager to work with 
     the science and technology community and the acquisition 
     community to develop memoranda of agreement, joint funding 
     agreements, and other cooperative arrangements and to utilize 
     innovative contracting arrangements and acquisition 
     procedures to provide for carrying out projects under the 
     Initiative in an efficient manner.
       The conferees note that it is the intent of this provision 
     to provide flexibility to the Department regarding the use 
     and activities of the Technology Transition Council. Under 
     this provision, the formal council would meet periodically to 
     discuss technology transition issues, especially those 
     relating to the Initiative and its projects. The 
     organizations represented on the Council, however, are free 
     to designate representatives to support the detailed 
     technical reviews and funding decision-making processes 
     that will be part of the Initiative.
       The conferees note that the Technology Transition 
     Initiative does not replace, but complements, the 
     responsibility of the senior acquisition executives of the 
     Department of Defense, the military departments, and the 
     heads of the Defense agencies with research and development 
     responsibilities under section 5358, title 10, United States 
     Code, to ensure that the science and technology programs 
     under their authority are carried out in such manner that 
     will foster the transition of science and technology to 
     higher levels of research, development, test, and evaluation.
       The conferees direct the Comptroller General to review and 
     evaluate the Technology Transition Initiative, the Defense 
     Acquisition Challenge Program, and the Small Business 
     Outreach program for combating terrorism. These reviews 
     should occur two years after the enactment of the provisions, 
     so as to provide the Department sufficient time to organize 
     and establish the programs. The reviews should assess the 
     implementation of the programs relative to congressional 
     intent. The reviews should also recommend any necessary 
     changes to improve the programs, including incentives for 
     participation by services and agencies, organizational 
     structure, and changes to the acquisition workforce. For 
     example, the review should assess the cost savings generated 
     by the programs and the use of those savings by participating 
     organizations to support other missions.
     Defense Acquisition Challenge Program (sec. 243)
       The House bill contained a provision (sec. 216) that would 
     require the Secretary of Defense to establish the Defense 
     Acquisition Challenge Program, a pilot program to promote the 
     insertion of unique and innovative technologies (``challenge 
     proposals'') into existing Department of Defense (DOD) 
     acquisition programs.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would provide 
     that the Secretary act through the Under Secretary of Defense 
     for Acquisition, Technology, and Logistics (USD(AT&L)), in 
     carrying out the program. The amendment would provide that 
     the Under Secretary prescribe procedures for the submission 
     of challenge proposals through the unsolicited proposal 
     process or in response to a broad agency announcement issued 
     to solicit challenge proposals. The amendment would also 
     provide that the Under Secretary establish panels to carry 
     out preliminary evaluations of challenge proposals and 
     prescribe criteria to be considered in those evaluations and 
     would establish additional criteria to be considered by the 
     program office and the prime system contractor in 
     consideration of those challenge proposals referred for a 
     full review and evaluation.
       The conferees believe that the panels will be an important 
     tool in the preliminary screening and identification of 
     meritorious challenge proposals and that the amended 
     provision would provide the USD(AT&L) the flexibility needed 
     to prescribe proper panel make-up. The composition of the 
     panels may change ranging from a technical level review by 
     knowledgeable scientists and technologists to a very senior 
     level blue ribbon panel, depending on the issue or technology 
     being reviewed. The conferees expect that review panels would 
     take a ``best value'' approach in evaluation of challenge 
     proposals.
       The conferees believe that the use of the broad agency 
     announcement and the unsolicited proposal process under 
     procedures prescribed by the USD(AT&L) will provide the 
     Department the ability to manage the submission of challenge 
     proposals and to identify specific technology areas of 
     interest and areas that could be transitioned rapidly into 
     fielded programs under a broad agency announcement, while at 
     the same time allowing prospective contractors the 
     opportunity to propose innovations for a program at any time 
     under the unsolicited proposal process. The conferees believe 
     that the authority for appropriate DOD officials to identify 
     and refer unsolicited challenge proposals to a panel would 
     permit their expeditious review under appropriate 
     circumstances. Upon completion of a preliminary review by a 
     panel, those challenge proposals with merit would be 
     requested to submit a more detailed proposal to be reviewed 
     by the Government program office and the prime system 
     contractor for the impacted program. The conferees note that 
     the detailed analyses should include a cost estimate and 
     examination of relevant industrial base issues.
       The conferees believe that the challenge program could 
     provide an excellent avenue for accelerating the introduction 
     of new and innovative technology into defense acquisition 
     programs and that program offices and prime contractors 
     should be encouraged to incorporate such approaches as new 
     technology insertions by appropriate incentives, such as 
     share-in savings approaches.
       The conferees also believe that the Under Secretary should 
     establish procedures for adoption of those extraordinary 
     challenge proposals that, based on their evaluation, promise 
     such far-reaching improvements in performance, affordability, 
     manufacturability, or operational capability that a 
     termination of a contract for the convenience of the 
     Government and an award of a contract for insertion of the 
     technology would be justified.
     Encouragement of small businesses and nontraditional defense 
         contractors to submit proposals potentially beneficial 
         for combating terrorism (sec. 244)
       The Senate amendment contained a provision (sec. 243) that 
     would establish a program to assist the Department of Defense 
     in utilizing small businesses and nontraditional defense 
     contractors in developing technologies to combat terrorism.
       The House bill contained no similar provision.
       The House recedes with a clarifying amendment.
       The conferees direct the Department to use all available 
     electronic commerce technology to carry out its activities, 
     including proposal submission, review, response to proposers, 
     and recommendations within the Department. This is consistent 
     with the Department's efforts to streamline its procedures 
     and make more use of electronic transactions in conducting 
     Department business. The use of these technologies should 
     also address a systemic problem within the Department by 
     making technical proposals and evaluator responses easier to 
     track and document by both contractors and Department of 
     Defense personnel alike.
       The conferees direct the Department to use the size 
     standards appropriate for the Small Business Innovative 
     Research program when determining eligibility for 
     participation in the Small Business Outreach Program.
       The conferees are concerned with the communication between 
     the various federal agencies responsible for developing 
     technologies to combat terrorism. Therefore, the conferees 
     recommend that the activities of the panel be coordinated 
     with the activities of appropriate federal agencies and the 
     Office of Science and Technology Policy, including the 
     forwarding of proposals not specific to the needs of the 
     Department of Defense to other appropriate federal agencies.
     Vehicle fuel cell program (sec. 245)
       The Senate amendment contained a provision (sec. 244) that 
     would require the Secretary of Defense to carry out a cost-
     shared

[[Page H8407]]

     program to develop fuel cell technology for use in Department 
     of Defense vehicles.
       The House bill contained no similar provision.
       The House recedes with a clarifying amendment that would 
     require the Secretary to carry out the program in 
     coordination with the Department of Energy and other 
     appropriate federal agencies.
     Defense nanotechnology research and development program (sec. 
         246)
       The Senate amendment contained a provision (sec. 245) that 
     would establish a Department of Defense nanotechnology 
     research and development program.
       The House bill contained no similar provision.
       The House recedes with a clarifying amendment that would 
     encourage the Department of Defense to coordinate its 
     nanotechnology research activities with the National 
     Nanotechnology Initiative.
       The conferees note that there are many ongoing activities 
     in the Defense Advanced Research Projects Agency and the 
     military services that are attempting to exploit the promise 
     of nanotechnology to develop new military capabilities, for 
     example in biosensing, smart materials, computing, and 
     nanoelectronics. The conferees urge the Department to 
     leverage these activities in developing the coordinated 
     research program. In particular, the conferees direct the 
     Department to capitalize on the special technical area review 
     on nanoelectronics by the Department's Advisory Group on 
     Electronic Devices as it works to develop a research 
     portfolio, investment plan, and transition strategy in this 
     important technical area.
     Activities of the Defense Experimental Program to Stimulate 
         Competitive Research (sec. 247)
       The Senate amendment contained a provision (sec. 246 ) that 
     would modify the Defense Experimental Program to Stimulate 
     Competitive Research (DEPSCoR) and to require a National 
     Research Council assessment of the program.
       The House bill contained no similar provision.
       The House recedes with an amendment.
       The conferees direct the Secretary of Defense to continue 
     to support the DEPSCoR effort to develop new defense research 
     capabilities across the Nation. The conferees encourage the 
     Secretary to continue to support activities that will develop 
     world-class researchers in DEPSCoR states and to work closely 
     with the individual states' planning committees to ensure 
     that the program supports the development of defense research 
     infrastructure.
     Four-year extension of authority of DARPA to award prizes for 
         advanced technology achievements and additional authority 
         of military departments and Defense Agencies to award 
         prizes for achievements in promoting education (sec. 248)
       The Senate amendment contained a provision (sec. 247) that 
     would reauthorize the Defense Advanced Research Projects 
     Agency (DARPA) to award competitive prizes for advanced 
     technology achievements.
       The House bill contained no similar provision.
       The House recedes with an amendment that would modify the 
     reporting requirements related to the authority.
       The conferees note that competitive prizes have been 
     used successfully in the past to support the development 
     of advanced technologies and have been endorsed by the 
     National Academy of Engineering. The conferees support 
     DARPA's interest in utilizing this authority in the 
     future.
       The conferees direct the Director of DARPA to address the 
     whole area of competitive prizes seriously and to develop an 
     overall program rather than a limited ``one-shot'' approach 
     to the use of the authority. This includes fulfilling the 
     reporting requirements included in the provision; conducting 
     a market survey of those corporations and other entities who 
     might want to participate in such an initiative; coordinating 
     with the military services on the most relevant and promising 
     technical areas in which to run competitions; and 
     establishing a competitive prize program that supports the 
     National Academy of Engineering's finding that prize contests 
     have the ability ``to attract a broader spectrum of ideas and 
     participants'' to the pursuit of scientific and technological 
     objectives ``by reducing the costs and other bureaucratic 
     barriers to participation by individuals or firms.''
       The conferees urge the services to make use of similar 
     prize authority granted to the service secretaries by the 
     provision. The conferees believe that service-sponsored 
     programs to promote science, math, and engineering can 
     provide a positive contribution to communities and would help 
     increase national emphasis on the role of science, math, and 
     technology education in meeting long-term national defense 
     needs.
       The conferees note that the Army's eCybermission program to 
     establish a nationwide math, science, and technology 
     competition for elementary and secondary schools is an 
     excellent example of this type of effort. The conferees urge 
     the Secretary of the Army to make use of these authorities to 
     continue the eCybermission program.
     Plan for five-year program for enhancement of measurement and 
         signatures intelligence capabilities of the United States 
         through incorporation of results of basic research on 
         sensors (sec. 249)
       The Senate amendment contained a provision (sec. 1038) that 
     would require the Director of the Central Measurement and 
     Signatures Intelligence Office to submit a plan for a five-
     year program for incorporating the results of basic research 
     on sensors into the measurement and signatures intelligence 
     systems fielded by the Federal Government.
       The House bill contained no similar provision.
       The House recedes with an amendment that would require the 
     Secretary of Defense to submit the plan.

                   Legislative Provisions Not Adopted

     Aerospace Relay Mirror System demonstration
       The Senate amendment contained a provision (sec. 219I) that 
     would authorize funding for an Aerospace Relay Mirror System 
     demonstration.
       The House bill contained no similar provision.
       The Senate recedes. By convention, outcomes of funding 
     differences between the House bill and the Senate amendment 
     are included in the tables elsewhere in this report.
     Agroterrorist attacks
       The Senate amendment contained a provision (sec. 219E) that 
     would authorize $1.0 million for research and analysis of 
     efforts to counter potential agroterrorist attacks.
       The House bill contained no similar provision.
       The Senate recedes on the provision.
       By convention, outcomes of funding differences between the 
     House bill and the Senate amendment are included in the 
     tables elsewhere in this report.
     Analysis of emerging threats
       The Senate amendment contained a provision (sec. 216) that 
     would authorize funding for analysis of emerging threats.
       The House bill contained no similar provision.
       The Senate recedes.
       By convention, outcomes of funding differences between the 
     House bill and the Senate amendment are included in the 
     tables elsewhere in this report.
     Army radar power technology
       The Senate amendment contained a provision (sec. 219A) that 
     would authorize funding for a radar power technology for the 
     Army.
       The House bill contained no similar provision.
       The Senate recedes. By convention, outcomes of funding 
     differences between the House bill and the Senate amendment 
     are included in the tables elsewhere in this report.
     Aviation-shipboard information technology initiative
       The Senate amendment contained a provision (sec. 219H) that 
     would authorize, of the funds authorized to be 
     appropriated within Research, Development, Test and 
     Evaluation, Navy, up to $8.2 million for the aviation-
     shipboard information technology initiative.
       The House bill contained no similar provision.
       The Senate recedes on the provision.
       By convention, outcomes of funding differences between the 
     House bill and the Senate amendment are included in the 
     tables elsewhere in this report.
     Basic seismic research program for support of national 
         requirements for monitoring nuclear explosions
       The Senate amendment contained a provision (sec. 211) that 
     would require the Secretary of the Air Force to manage the 
     Department of Defense program for basic seismic research in 
     support of national requirements for monitoring nuclear 
     explosions. The provision would also authorize $20.0 million 
     for this seismic research program.
       The House bill contained no similar provision.
       The Senate recedes.
       The conferees note that the Department of Defense is 
     planning to transfer management of the research program to 
     support national requirements for monitoring nuclear 
     explosions from the Defense Threat Reduction Agency to the 
     Air Force and the Army. The conferees are concerned that, 
     while the requirements for monitoring nuclear explosions have 
     become significantly more challenging since the mid-1990s, 
     management of and resources for the research program to 
     support these national requirements have been neither stable 
     nor sufficient since that time. Congress has repeatedly 
     appropriated additional funds above the budget request levels 
     for this research program.
       Therefore, the conferees direct the Secretary of Defense to 
     submit a report to the congressional defense committees by 
     February 1, 2003, describing how the management of and 
     resources for this research program will support the national 
     requirements for monitoring nuclear explosions and ensure 
     that the United States is able to meet these requirements.
     Critical infrastructure protection
       The Senate amendment contained a provision (sec. 219B) that 
     would authorize funding for critical infrastructure 
     protection.
       The House bill contained no similar provision.
       The Senate recedes.
       By convention, outcomes of funding differences between the 
     House bill and the Senate amendment are included in the 
     tables elsewhere in this report.
     DDG optimized manning initiative
       The Senate amendment contained a provision (sec. 219D) that 
     would authorize an additional $2.5 million in PE 64307N for 
     the DDG optimized manning initiative.

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       The House bill contained no similar provision.
       The Senate recedes on the provision.
       By convention, outcomes of funding differences between the 
     House bill and the Senate amendment are included in the 
     tables elsewhere in this report.
     Demonstration of renewable energy use
       The Senate amendment contained a provision (sec. 218) that 
     would authorize an additional $2.5 million in PE 64710N to 
     continue a demonstration program of renewable energy use, 
     rather than in PE 63508N.
       The House bill contained no similar provision.
       The Senate recedes on the provision.
       By convention, outcomes of funding differences between the 
     House bill and the Senate amendment are included in the 
     tables elsewhere in this report.
     Full-scale high-speed permanent magnet generator
       The Senate amendment contained a provision (sec. 219G) that 
     would authorize an additional $1.0 million in PE 63123N to 
     develop and demonstrate a full-scale, high-speed, permanent 
     magnet generator.
       The House bill contained no similar provision.
       The Senate recedes on the provision.
       By convention, outcomes of funding differences between the 
     House bill and the Senate amendment are included in the 
     tables elsewhere in this report.
     Increased investment in test and evaluation facilities
       The Senate amendment contained a provision (sec. 233) that 
     would increase the amount authorized to be appropriated for 
     investment in Department of Defense test and evaluation 
     facilities.
       The House bill contained no similar provision.
       The Senate recedes.
       The amounts authorized for investment in test and 
     evaluation facilities are reflected in the appropriate 
     accounts.
     Laser welding and cutting demonstration
       The Senate amendment contained a provision (sec. 215) that 
     would authorize an additional $6.0 million in PE 62123N for 
     laser welding and cutting demonstration, rather than in PE 
     63508N.
       The House bill contained no similar provision.
       The Senate recedes on the provision.
       By convention, outcomes of funding differences between the 
     House bill and the Senate amendment are included in the 
     tables elsewhere in this report.
     Limitation on obligation of funds for procurement of Patriot 
         (PAC-3) missiles pending submission of required 
         certification
       The House bill contained a provision (sec. 231) that would 
     prevent obligation of funds for procurement of PAC-3 missiles 
     pending submission of criteria to the congressional defense 
     committees for the transfer of missile defense programs from 
     the Missile Defense Agency (MDA) to the military departments 
     and certification by the Secretary of Defense that those 
     criteria have been met for the PAC-3 program. The criteria 
     and certification are required by sections 224(b)(2) and 
     224(c), respectively, of title 10, United States Code.
       The Senate amendment contained no similar provision.
       The House recedes.
       In its budget submission for fiscal year 2003, the 
     Department of Defense proposed transferring the PAC-3 program 
     from the MDA to the Army. The conferees understand that the 
     Department has decided not to transfer the PAC-3 program, 
     pending full agreement within the Department on the 
     appropriate criteria to establish prior to the transfer. 
     Furthermore, the conferees understand that such criteria, as 
     well as the appropriate certification, will be submitted to 
     Congress prior to proposing such a transfer in the future. 
     Based on this, the conferees consider the House provision to 
     be unnecessary at present.
       The conferees strongly support the PAC-3 program and expect 
     that, prior to transferring this or any other program from 
     MDA to the services, the Department will establish 
     appropriate criteria to ensure that the programs are 
     adequately funded, managed, upgraded, and supported over 
     time.
     Report on implementation of Defense Science Board 
         recommendations
       The Senate amendment contained a provision (sec. 237) that 
     would require the Secretary of Defense to report to the 
     congressional defense committees on the implementation of the 
     recommendations of the December 2000 report of the Defense 
     Science Board Task Force on Test and Evaluation Capabilities.
       The House bill contained no similar provision.
       The Senate recedes.
     Theater Aerospace Command and Control Simulation Facility 
         upgrades
       The Senate amendment contained a provision (sec. 219C) that 
     would authorize $2.5 million for Theater Aerospace Command 
     and Control Simulation Facility (TACCSF) upgrades.
       The House bill contained no similar provision.
       The Senate recedes on the provision.
       By convention, outcomes of funding differences between the 
     House bill and the Senate amendment are included in the 
     tables elsewhere in this report.
     Very high speed support vessel for the Army
       The Senate amendment contained a provision (sec.219F) that 
     would increase the amount authorized to be appropriated for 
     research, development, test, and evaluation for the Army by 
     $5.5 million for the development of a prototype composite 
     hull design to meet the theater support vessel requirement. 
     The provision would offset this increase by a reduction of 
     $5.5 million authorized to be appropriated for research, 
     development, test, and evaluation for the Navy for the 
     submarine tactical warfare program.
       The House bill contained no similar provision.
       The Senate recedes on the provision.
       By convention, outcomes of funding differences between the 
     House bill and the Senate amendment are included in the 
     tables elsewhere in this report.

                  Title III--Operation and Maintenance

     Overview
       The President's budget request for fiscal year 2003 
     included $129.8 billion for operation and maintenance 
     programs and $3.3 billion for working capital fund accounts.
       The budget request also included $20.1 billion in the 
     operation and maintenance title for the Defense Emergency 
     Response Fund (DERF). Of this amount, $10.1 billion was 
     requested for specific programs and $10.0 billion was 
     requested as unspecified contingency funding for continuing 
     the war on terrorism into fiscal year 2003.
       The House bill would authorize $130.4 billion for operation 
     and maintenance accounts and $2.4 billion for working capital 
     fund accounts.
       The Senate amendment would authorize $129.5 billion for 
     operation and maintenance accounts and $2.6 billion for 
     working capital fund accounts.
       The conferees recommend an authorization of $129.1 billion 
     for the operation and maintenance accounts and $2.6 billion 
     for the working capital fund accounts of the Department of 
     Defense for fiscal year 2003.
       The amounts recommended in this title include two 
     reductions discussed more fully in title X of this Act, one 
     for improved management of services contracts and one for 
     reductions in proposed information technology modernization 
     prior to design of a comprehensive financial management 
     structure. For operation and maintenance, the conferees agree 
     to a reduction of $494.1 million for savings from services 
     contracts and $51.6 million from financial management 
     information technology systems.
       The conferees agree to a reduction of $654.4 million in 
     working capital funds, including a $328.0 million increase 
     (as requested in the DERF) for renovation and reconstruction 
     of the Pentagon, a decrease of $839.1 million for changes in 
     the accounting structure for health and retirement benefits 
     that were not adopted (discussed more fully below), a 
     decrease of $148.6 million from financial management 
     information technology systems, and an increase of $5.3 
     million as requested in the DERF.
       The House bill, the Senate amendment, and the conference 
     agreement transfer the funding requested in the DERF to the 
     appropriate accounts throughout the Department of Defense. 
     The authorization of appropriations for the unspecified $10.0 
     billion for continuing the war on terrorism, which would fund 
     the costs of ongoing military operations as well as the 
     additional pay and benefits of mobilized guard and reserve 
     personnel, has been transferred to title XV of this Act.
       The conferees' actions on the $10.1 billion in funding for 
     the other portion of the DERF are reflected in the tables 
     throughout this report which describe the accounts to which 
     those funds were transferred.
       The budget request also proposed to change the accounting 
     structure for various health and retirement benefits of 
     federal civilian employees to an accrual basis. As discussed 
     in the House and Senate reports, Congress did not agree with 
     this proposed change. The operation and maintenance accounts 
     in the House bill, the Senate amendment, and the conference 
     agreement have been reduced by $2.3 billion to reflect the 
     appropriate funding levels for defense programs under current 
     accounting procedures. The authorizations for revolving and 
     management funds in this title have been reduced by $839.1 
     million for this same reason. These reductions would not 
     entail any change to the benefits of federal civilian 
     employees funded by either direct appropriations or through 
     the working capital funds.

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[[Page H8449]]

     Department of Defense foreign language training
       The budget request included $135.4 million in Operation and 
     Maintenance, Army for the Defense Language Institute/Foreign 
     Language Center (DLI/FLC).
       The House bill and the Senate amendment would support the 
     budget request. The House version of the Intelligence 
     Authorization Act for Fiscal Year 2003 (H.R. 4628) would 
     authorize an increase of $2.0 million for the satellite 
     communications for learning (SCOLA) project at the DLI/FLC.
       The conferees agree to authorize $136.4 million, an 
     increase of $1.0 million in Operation and Maintenance, Army 
     for SCOLA. The conferees also direct the Secretary of the 
     Army to designate an appropriate organization to manage the 
     SCOLA program beginning in fiscal year 2003.
       The SCOLA project provides important support within the 
     Government. Financing to date for the SCOLA project has been 
     provided by reimbursements from defense agencies and other 
     government activities seeking SCOLA program support. The 
     conferees believe that the SCOLA program deserves more 
     focused management that would benefit the program with: (1) a 
     more reliable funding line item in the budget; and (2) better 
     support in the programming and budgeting process from the 
     Department. The conferees also believe that the DLI/FLC would 
     be an appropriate organization to manage the SCOLA program 
     effort.
     Ship depot maintenance
       The budget request for fiscal year 2003 included $3.5 
     billion for ship depot maintenance.
       The Senate amendment recommended a $90.0 million increase 
     in ship depot maintenance to address war-related requirements 
     and emergent repairs.
       The House bill contained no similar increase.
       The conferees agree to authorize the amount included in the 
     budget request.
       The request for the fiscal year 2002 supplemental 
     appropriations bill included $90.0 million to fund regularly 
     scheduled maintenance that would have been deferred until 
     fiscal year 2003 because funds were being diverted for war-
     related repairs. This funding for ship depot maintenance was 
     approved by Congress.
       Because supplemental funding was provided that would allow 
     regularly scheduled maintenance to proceed as planned, the 
     conferees did not adopt the increase recommended in the 
     Senate amendment.
     Secure communications for the reserve components
       The budget request for the Defense Emergency Response Fund 
     included almost $200.0 million for the reserve components to 
     increase reserve communications infrastructure.
       The House bill fully funded this request.
       The Senate amendment expressed support for the proposed 
     improvements, but it also expressed concern over whether the 
     entire amount requested could be executed in one fiscal year. 
     Accordingly, the Senate amendment reduced the request by 
     $40.0 million. The Senate report also required the Commander 
     in Chief for Homeland Security to conduct a review of 
     requirements to expand reserve component communications and 
     to report the results of this review to the congressional 
     defense committees no later than April 30, 2003.
       The conferees agree to authorize a $40.0 million decrease 
     and jointly endorse the need for the required review.
       Since the Senate completed action on its bill, Congress has 
     received a report from the General Accounting Office (GAO) 
     entitled ``National Guard: Effective Management Processes 
     Needed for Wide-Area Network.'' This report identifies a 
     number of deficiencies in the management of the National 
     Guard's wide-area network, known as GuardNet. The conferees 
     are concerned that the Department of Defense (DOD)'s plans to 
     expand GuardNet and/or increase its use may be overly 
     aggressive, given the apparent lack of defined requirements, 
     uncertain configuration of the network, and potential 
     security risks. The conferees believe that GuardNet can play 
     a critical role both in enhancing the readiness of our Armed 
     Forces by facilitating training and in bolstering 
     capabilities to defend the homeland through rapid, secure 
     communications with and between National Guard units. 
     Therefore, the conferees strongly urge DOD to address these 
     management concerns as quickly as possible and to include an 
     update on any actions taken in its report to the 
     congressional defense committees in April 2003.

                       Items of Special Interest

     Formerly Used Defense Site at Lowry Bombing and Gunnery Range
       The Army is the executive agent for the Formerly Used 
     Defense Site (FUDS) Program, and the U.S. Army Corps of 
     Engineers manages and executes actual remediation activities. 
     The conferees urge the Secretary of the Army to expeditiously 
     move forward with remediation efforts at all former military 
     ranges.
       The conferees are aware of the environmental cleanup 
     activities needed at the former Lowry Bombing and Gunnery 
     Range in Arapahoe County, Colorado, and recognize the 
     importance of completing needed cleanup and containment to 
     protect the health and safety of the surrounding 
     residences and to permit planned residential and school 
     construction in the surrounding area to proceed. The 
     conferees encourage the Army Corps of Engineers to 
     complete cleanup in a timely manner by providing 
     sufficient resources and selecting appropriate cleanup and 
     containment methodologies for the former Lowry Bombing and 
     Gunnery Range and for all other installations included in 
     the FUDS Program.
     National Imagery and Mapping Agency commercial satellite 
         imaging support
       The conferees recognize the importance of a viable, 
     technically competent, commercial space imaging industry as 
     an important complement to U.S. national technical means and 
     note that the Director of Central Intelligence has directed 
     the National Imagery and Mapping Agency (NIMA) to make fuller 
     use of commercial imagery. The conferees believe that a long-
     term government commitment to the appropriate use of 
     commercial imagery is necessary in this context. The 
     conferees believe that such a long-term commitment would 
     cause commercial capital to become available to industry to 
     support development of next generation commercial space 
     imaging capabilities and infrastructure and would also result 
     in greatly reduced cost-per- unit for commercial imagery.
       Section 2306b, title 10, United States Code, provides the 
     head of an agency with the authority to enter into a 
     multiyear contract for the purchase of property for more than 
     one, but not more than five program years to the extent that 
     funds are otherwise available for obligation. This authority 
     is further qualified in that the agency head must find that 
     the multiyear saves money, that the requirement is 
     substantially stable, and that there is a reasonable 
     expectation throughout the contract period that sufficient 
     funds will be budgeted to avoid contract cancellation. For 
     the Department of Defense, the agency head's authority is 
     also restricted to contracts less than $500.0 million, with 
     an unfunded contingent liability of $20.0 million or less. 
     For amounts greater than these, congressional notification or 
     express congressional approval is required.
       The multiyear authority does not waive the requirement for 
     annual appropriations from Congress for each contract year 
     nor does it preclude the Government's ability to terminate 
     the contract for convenience. Nevertheless, because multiyear 
     contracts can bring a significant measure of stability and 
     economic order quantity activity to a program, it provides 
     for considerably more efficient program execution and savings 
     to the Government.
       The conferees believe that the termination liability in a 
     multiyear contract for pixels or product from the commercial 
     remote sensing industry need not exceed $20.0 million in any 
     contract year. Thus the conferees understand that the 
     Director of NIMA, under the foregoing statute, has the 
     authority to award such a multiyear contract to a commercial 
     remote sensing company for up to five years and $500.0 
     million ($100.0 million for each of five years) without 
     requiring express congressional approval, as long as the 
     unfunded contingent liability does not exceed $20.0 million. 
     If the Director desired to purchase imagery from more than 
     one industry source, he could award more than one multiyear 
     contract on his own authority; however, congressional 
     approval would be required if the aggregate amount were to 
     exceed $500.0 million or $20.0 million in termination 
     liability.
       The conferees expect NIMA to take advantage of existing 
     multiyear contracting authority, including the authority 
     contained in 10 USC 2306b, for commercial satellite imagery 
     when such use is in the best interests of the Government.

                     Legislative Provisions Adopted

              Subtitle A--Authorization of Appropriations

     Authorization of appropriations (secs. 301-302)
       The House bill contained provisions (secs. 301-302) that 
     would authorize the recommended fiscal year 2003 funding 
     levels for all operation and maintenance and working capital 
     fund accounts.
       The Senate amendment contained similar provisions (secs. 
     301-302).
       The conference agreement includes these provisions.
     Armed Forces Retirement Home (sec. 303)
       The House bill contained a provision (sec. 303) that would 
     authorize $69.9 million from the Armed Forces Retirement Home 
     Trust Fund for the operation of the Armed Forces Retirement 
     Home, including the Armed Forces Retirement Home--Washington, 
     and the Armed Forces Retirement Home--Gulfport.
       The Senate amendment contained a similar provision (sec. 
     303).
       The Senate recedes.
     Grant to National Guard Youth Foundation (sec. 304)
       The conference agreement includes a provision (sec. 304) 
     that would authorize $2.5 million for a grant to the National 
     Guard Youth Foundation for building and strengthening the 
     character and competence of the Nation's youth.

                  Subtitle B--Environmental Provisions

     Enhancement of authority on cooperative agreements for 
         environmental purposes (sec. 311)
       The Senate amendment contained a provision (sec. 311) that 
     would authorize the Secretary of Defense to enter into and 
     fund cooperative agreements with Federal, State and local 
     agencies, as well as Indian tribes, that begin in one fiscal 
     year and end in another fiscal year.

[[Page H8450]]

       The House bill contained no similar provision.
       The House recedes with a technical amendment.
     Single point of contact for policy and budgeting issues 
         regarding unexploded ordnance, discarded military 
         munitions, and munitions constituents (sec. 312)
       The House bill contained a provision (sec. 313) that would 
     require the Secretary of Defense to establish a single point 
     of contact for policy and budgeting issues regarding 
     unexploded ordnance, discarded military munitions, and 
     munitions constituents (UXO).
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment clarifying the 
     authority that may be delegated under the provision.
       The conferees direct the Department of Defense to provide a 
     consolidated budget exhibit on all proposed funding to 
     address environmental impacts of UXO with its budget 
     submission in each of the next four fiscal years as noted in 
     the Senate report accompanying S. 2514 (S. Rept. 107-151).
     Authority to carry out construction projects for 
         environmental responses (sec. 313)
       The House bill contained a provision (sec. 2802) that would 
     clarify that the secretaries of the military departments are 
     required to notify Congress of their intent to conduct 
     military construction projects necessary to carry out an 
     environmental response action when such projects are in 
     excess of the minor construction threshold.
       The Senate amendment contained a provision (sec. 312) that 
     would require the Secretary of Defense to fund environmental 
     restoration projects through the Environmental Restoration 
     accounts of the Department of Defense and not as military 
     construction projects.
       The House recedes.
     Procurement of environmentally preferable procurement items 
         (sec. 314)
       The Senate amendment contained a provision (sec. 313) that 
     would require the Secretary of Defense to establish: (1) 
     goals for the increased purchase of procurement items that 
     are environmentally preferable or are made with recovered 
     materials; and (2) a tracking system to enable the Department 
     to monitor its progress in achieving these goals.
       The House bill contained no similar provision.
       The House recedes with an amendment that would eliminate 
     the requirement to establish goals. The Secretary of Defense 
     would be required to develop and implement an effective and 
     efficient tracking system to identify the extent to which the 
     Defense Logistics Agency procures items that have been 
     determined to be environmentally preferable or made with 
     recovered material. To the maximum extent practicable, the 
     tracking system would be required to separately track the 
     procurement of each category of such procurement items. In 
     identifying categories of procurement items to be tracked, 
     the conferees expect the Secretary to consider 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. The conferees also 
     expect that the system will track the procurement of such 
     items as a percentage of all purchases of procurement items 
     that serve a similar purpose.
     Incidental taking of migratory birds during military 
         readiness activities (sec. 315)
       The House bill contained a provision (sec. 311) that would 
     amend the Migratory Bird Treaty Act (Public Law 93-300) to 
     create a statutory exemption for the Department of Defense 
     (DOD) for the incidental taking of migratory birds during 
     authorized military readiness activities.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would create 
     interim authority under which the Migratory Bird Treaty Act 
     would not apply to the incidental taking of a migratory bird 
     by DOD during authorized military readiness activities. The 
     amendment would direct the Secretary of the Interior to 
     prescribe regulations, no later than one year after the date 
     of enactment of this Act, to exempt DOD for the incidental 
     taking of migratory birds during authorized military 
     readiness activities. The interim authority would not 
     expire until the regulations have taken effect. The 
     amendment would also require the Secretary of Defense, 
     acting in consultation with the Secretary of the Interior, 
     to identify measures to minimize the adverse impact of 
     military training activities on affected species of 
     migratory birds during both the period of interim 
     authority and the period after the regulations have taken 
     effect.
       The conferees believe this provision to be entirely 
     consistent with the underlying terms of all treaty 
     obligations of the United States.

  Subtitle C--Commissaries and Nonappropriated Fund Instrumentalities

     Authority for each military department to provide base 
         operating support to Fisher Houses (sec. 321)
       The House bill contained a provision (sec. 321) that would 
     authorize the service secretaries to provide appropriated 
     fund support to Fisher Houses associated with the health care 
     facilities of that military department.
       The Senate amendment contained a similar provision (sec. 
     903).
       The Senate recedes.
     Use of commissary stores and MWR retail facilities by members 
         of National Guard serving in national emergency (sec. 
         322)
       The House bill contained a provision (sec. 322) that would 
     authorize members of the National Guard to use commissary and 
     exchange stores when ordered to duty in other than a federal 
     status in response to a federally declared national 
     emergency.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Uniform funding and management of morale, welfare, and 
         recreation programs (sec. 323)
       The House bill contained a provision (sec. 323) that would 
     authorize the Secretary of Defense to permit installation 
     commanders to manage funds appropriated for installation 
     Morale, Welfare, and Recreation (MWR) programs under the 
     procedures used for nonappropriated funds and would authorize 
     conversion of certain employment positions, with the 
     employees' consent, from appropriated fund positions to 
     nonappropriated fund positions.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Rebate agreements under the special supplemental food program 
         (sec. 324)
       The Senate amendment contained a provision (sec. 344) that 
     would authorize the Secretary of Defense to enter into 
     contracts for rebates with producers of food products for the 
     exclusive right to provide food in Navy Exchange Markets as 
     supplemental food for the Women, Infants, and Children (WIC) 
     Overseas Program, consistent with current authority for 
     products sold in commissary stores. The recommended provision 
     would also increase the maximum period of the exclusive 
     rights contracts from one year to three years.
       The House bill contained no similar provision.
       The House recedes.

                 Subtitle D--Workplace and Depot Issues

     Notification requirements in connection with required studies 
         for conversion of commercial or industrial type functions 
         to contractor performance (sec. 331)
       The House bill contained a provision (sec. 331) that would 
     require the Secretary of Defense to notify Congress of the 
     outcome of a required study for conversion of a function to 
     contractor performance, regardless of whether the study 
     results in conversion to contractor performance or 
     maintaining performance in the public sector.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Temporary authority for contractor performance of security-
         guard functions to meet increased requirements since 
         September 11, 2001 (sec. 332)
       The House bill contained a provision (sec. 332) that would 
     authorize the Secretary of Defense or the secretary of a 
     military department to waive the prohibition in section 
     2465(a) of title 10, United States Code, on contracting out 
     security guard functions in certain circumstances. The House 
     provision would authorize the Department to contract for 
     security guard functions if: (1) those functions are or will 
     be performed by members of the Armed Forces; or (2) the 
     security guard functions were not required before 
     September 11, 2001.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would authorize 
     the waiver of section 2465(a) to meet increased security 
     guard functions undertaken in response to the terrorist 
     attacks of September 11, 2001, if: (1) the functions are or 
     would be performed by members of the Armed Forces; and (2) 
     the secretary concerned determines that the contractor 
     personnel are appropriately trained and supervised and can be 
     used without a reduction in security at the affected 
     installation or facility. The authority to contract out 
     security guard functions under this provision would expire 
     three years after the date of enactment of this Act. The 
     Secretary of Defense would be required to identify any 
     longer-term requirements for security guard functions and 
     submit a plan for meeting those requirements to the 
     congressional defense committees no later than six months 
     after the date of enactment.
     Repeal of obsolete provision regarding depot-level 
         maintenance and repair workloads that were performed at 
         closed or realigned military installations (sec. 333)
       The House bill contained a provision (sec. 334) that would 
     repeal section 2469(a) of title 10, United States Code, which 
     addresses depot-level maintenance and repair workloads that 
     were performed at installations closed or realigned under the 
     Defense Base Closure and Realignment Act of 1990 (Public Law 
     101-510). Because all installations have completed closure or 
     realignment actions in accordance with that law, this 
     provision is no longer necessary.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Exclusion of certain expenditures from limitation on private 
         sector performance of depot-level maintenance (sec. 334)
       The House bill contained a provision (sec. 333) that would 
     revise section 2474(f) of title

[[Page H8451]]

     10, United States Code. Currently, that section excludes, 
     until 2005, all work that is performed by private sector 
     personnel at Department of Defense maintenance and repair 
     depots from the percentage limitations (50/50) on private 
     sector depot-level maintenance work. The provision would 
     remove the date limitation.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would revise the 
     date limitation. The amendment would extend the exclusion for 
     the duration of all public-private partnership contracts for 
     depot maintenance that are signed before the end of fiscal 
     year 2006.

                Subtitle E--Defense Dependents Education

     Assistance to local educational agencies that benefit 
         dependents of members of the Armed Forces and Department 
         of Defense civilian employees (sec. 341)
       The Senate amendment contained a provision (sec. 331) that 
     would authorize $30.0 million for continuation of the 
     Department of Defense assistance program to local education 
     agencies that benefit dependents of service members and 
     Department of Defense civilian employees.
       The House bill contained a similar provision (sec. 341).
       The House recedes with a technical amendment.
     Housing benefits for unaccompanied teachers required to live 
         at Guantanamo Bay Naval Station, Cuba (sec. 342)
       The Senate amendment contained a provision (sec. 1107) that 
     would require the Navy to make excess military family housing 
     at Guantanamo Bay Naval Station, Cuba, available for lease to 
     Department of Defense Education Activity teachers assigned to 
     teach at that station.
       The House bill contained a similar provision (sec. 342).
       The House recedes.
     Options for funding dependent summer school programs (sec. 
         343)
       The Senate amendment contained a provision (sec. 333) that 
     would require the Secretary of Defense to provide dependent 
     summer school programs on the same financial basis as 
     programs offered during the regular school year.
       The House bill contained a similar provision (sec. 343).
       The House recedes.
       The conferees expect the Secretary to exercise the 
     authority to charge fees for certain summer school programs 
     only when necessary to offer a course. When a fee is charged, 
     the Secretary should provide authority to waive the fee, on 
     the basis of financial need, for students otherwise eligible 
     for free education.
     Impact aid eligibility for local educational agencies 
         affected by privatization of military housing (sec. 344)
       The House bill contained a provision (sec. 366) that would 
     authorize continued eligibility of certain local education 
     agencies for impact aid during temporary reductions in the 
     number of qualified students because of conversion of 
     military housing units to private housing. The provision 
     would also exclude basic allowance for housing payments to 
     military personnel residing in privatized military housing 
     from income for purposes of determining eligibility for free 
     or reduced price school lunches.
       The Senate amendment contained a similar provision (sec. 
     1064).
       The Senate recedes with an amendment deleting the provision 
     for free or reduced price school lunches because this 
     provision was enacted in separate legislation.
     Comptroller General study of adequacy of compensation 
         provided for teachers in the Department of Defense 
         Overseas Dependents' Schools (sec. 345)
       The Senate amendment contained a provision (sec. 334) that 
     would extend from May 1, 2002 to December 12, 2002 the date 
     for the Comptroller General to report on a study on whether 
     compensation for teachers in the Department of Defense 
     dependents' education system is adequate for recruiting and 
     retaining high quality teachers. The provision would also 
     require the Comptroller General to consider whether the 
     process for setting teacher compensation is efficient and 
     cost effective.
       The House bill amendment contained no similar provision.
       The House recedes.

                   Subtitle F--Information Technology

     Annual submission of information regarding information 
         technology capital assets (sec. 351)
       The House bill contained a provision (sec. 352) that would 
     require the Secretary of Defense to include, along with the 
     annual budget request, a description of and complete budget 
     information on major information technology, national 
     security system, and national security capital asset 
     programs.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment to clarify certain 
     terms and to minimize reporting requirements.
     Policy regarding acquisition of information assurance and 
         information assurance-enabled information technology 
         products (sec. 352)
       The House bill contained a provision (sec. 353) that would 
     require the Secretary of Defense to establish and implement a 
     policy limiting the acquisition of all commercial off-the-
     shelf information assurance and information assurance-enabled 
     information technology products to those products that have 
     been evaluated and validated in accordance with appropriate 
     criteria, schemes, or programs.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would require the 
     Secretary to: (1) apply the policy to all information 
     assurance and information assurance-enabled information 
     technology products (not just commercial off-the-shelf 
     products); and (2) authorize the waiver of the policy in the 
     national security interest of the United States.
     Installation and connection policy and procedures regarding 
         Defense Switch Network (sec. 353)
       The House bill contained a provision (sec. 354) that would 
     direct the Secretary of Defense to establish uniform policies 
     and procedures throughout the Department for the installation 
     and connection of telecom switches to the Defense Switch 
     Network.
       The Senate amendment contained a similar provision (sec. 
     348).
       The House recedes with a clarifying amendment.

                       Subtitle G--Other Matters

     Distribution of monthly reports on allocation of funds within 
         operation and maintenance budget subactivities (sec. 361)
       The House bill contained a provision (sec. 361) that would 
     clarify that the monthly reports on operation and maintenance 
     accounts that the Department of Defense is required to 
     provide to Congress should be delivered to the congressional 
     defense committees.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Continuation of arsenal support program initiative (sec. 362)
       The House bill contained a provision (sec. 364) that would 
     extend the Arsenal Support Program Initiative through fiscal 
     year 2004. The provision also required a report from the 
     Secretary of the Army evaluating the Initiative's results.
       The Senate amendment contained an identical provision (sec. 
     346).
       The conference agreement includes this provision.
     Extension of work safety demonstration program (sec. 363)
       The Senate amendment contained a provision (sec. 350) that 
     would extend by one year the authority for the work safety 
     demonstration program through September 30, 2003.
       The House bill contained no similar provision.
       The House recedes.
     Condition on authority of Defense Security Service to impose 
         fees on fee-for-service basis (sec. 364)
       The House bill contained a provision (sec. 363) that would 
     prohibit the Secretary of Defense from converting the Defense 
     Security Service (DSS) to a working capital-funded entity 
     until the Secretary certifies that DSS has the requisite 
     financial systems to support such operations.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment clarifying that DSS is 
     currently a working capital-funded entity but cannot impose 
     fees on a fee-for-service basis until proper certification is 
     provided.
     Logistics support and services for weapon systems contractors 
         (sec. 365)
       The Senate amendment contained a provision (sec. 345) that 
     would allow the Defense Logistics Agency (DLA) to provide 
     services to weapon systems contractors on a reimbursable 
     basis. The authority would be limited to no more than five 
     contracts, with a total value of less than $100.0 million.
       The House bill contained no similar provision.
       The House recedes with an amendment specifying that, in 
     accordance with section 2208(h), title 10, United States 
     Code, all revenues from such contracts would be credited to 
     DLA accounts.
     Training range sustainment plan, Global Status of Resources 
         and Training System, and training range inventory (sec. 
         366)
       The House bill contained a provision (sec. 365) that would 
     require the Secretary of Defense to develop a comprehensive 
     plan for addressing training constraints caused by 
     limitations on the use of military lands, marine areas, and 
     airspace; a plan to modify the Global Status of Resources and 
     Training System to better reflect the impact of such training 
     constraints; and a training range inventory for each of the 
     military services.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment clarifying the content 
     and timing of the required plans and reports.
     Engineering study and environmental analysis of road 
         modifications in vicinity of Fort Belvoir, Virginia (sec. 
         367)
       The Senate amendment contained a provision (sec. 349) that 
     would provide $5.0 million to the Secretary of the Army to 
     conduct a preliminary engineering and environmental study on 
     the feasibility of providing 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. The Secretary would submit a summary report on the 
     study

[[Page H8452]]

     and analysis to Congress with the budget justification 
     materials for the fiscal year 2006 budget request.
       The House bill contained no similar provision.
       The House recedes.
       The conferees are aware that other communities have been 
     adversely impacted by the closure of public roads that 
     traverse military installations and believe the communities 
     that have lost access to thoroughfares constructed and 
     maintained with local tax dollars should be appropriately 
     compensated for this loss. The conferees understand that Fort 
     Dix, New Jersey, and Fort Drum, New York, are among the 
     communities affected by road closures. The conferees are also 
     aware of a long-standing issue of road access on Andersen Air 
     Force Base, Guam.
       Accordingly, the conferees direct the Secretary of Defense 
     to identify all localities affected by the closures of public 
     roads on military installations to enhance force protection, 
     to work with local communities to find appropriate means, 
     including compensation, to address these situations, and to 
     include those measures in future budget requests as 
     necessary.
     Reauthorization of warranty claims recovery pilot program 
         (sec. 368)
       The conference agreement includes a provision (sec. 368) 
     that would extend the warranty claims pilot program through 
     September 30, 2004.
     Expanded eligibility for loan, gift, or exchange of 
         documents, historical artifacts, and condemned or 
         obsolete combat materiel (sec. 369)
       The conference agreement includes a provision (sec. 369) 
     that would include nonprofit military aviation heritage 
     foundations and associations among the entities eligible to 
     receive transfers of excess Department of Defense (DOD) 
     materiel.
       The conferees authorize this expansion with the recognition 
     that section 2572(d)(2) of title 10, United States Code, 
     prescribes very limited circumstances under which DOD may 
     bear the costs of demilitarizing equipment to make it safe 
     for transfer. The conferees further note that, under existing 
     statute, DOD is not responsible for the costs of operating, 
     maintaining, or repairing equipment once it has been 
     transferred. The conferees direct that any transfers made 
     under this section be conducted in accordance with DOD 
     regulations pertaining to the safe and secure operation of 
     transferred equipment.

                   Legislative Provisions Not Adopted

     Calculation of five-year period of limitation for Navy-Marine 
         Corps Intranet contract
       The House bill contained a provision (sec. 351) that would 
     authorize the Secretary of the Navy to extend the current 
     contract for Navy-Marine Corps Intranet (NMCI) services from 
     the current five years to seven years.
       The Senate amendment contained a similar provision (sec. 
     342).
       Because similar legislation has been enacted (Public Law 
     107-254), the conference report does not include either 
     provision.
     Clarification of required core logistics capabilities
       The House bill contained a provision (sec. 335) that would 
     expand the definition of core logistics capabilities to 
     include acquisition logistics, supply management, system 
     engineering, maintenance, and modification management.
       The Senate amendment contained no similar provision.
       The House recedes.
     Cleanup of unexploded ordnance on Kaho'olawe Island, Hawaii
       The Senate amendment contained a provision (sec. 314) that 
     would require the Secretary of the Navy to continue cleanup 
     activities on Kaho'olawe Island, Hawaii, until the Navy has 
     inspected and assessed 100 percent of the island, cleared 75 
     percent of the island in accordance with Tier One standards, 
     and cleared 25 percent of the island in accordance with Tier 
     Two standards.
       The House bill contained no similar provision.
       The Senate recedes.
     Impact aid for children with severe disabilities
       The Senate amendment contained a provision (sec. 332) that 
     would authorize $5.0 million for continuation of the 
     Department of Defense assistance program to local educational 
     agencies that benefit dependents with severe disabilities.
       The House bill contained no similar provision.
       The Senate recedes on the provision.
       The conferees agree to authorize $5.0 million of the funds 
     available for Operation and Maintenance, Defense-Wide, for 
     continuation of the Department of Defense assistance program 
     to local educational agencies that benefit dependents with 
     severe disabilities.
     Lift support for mine warfare ships and other vessels
       The Senate amendment contained a provision (sec. 351) that 
     would authorize $10.0 million to be made available for 
     implementing recommendations resulting from the Navy's Non-
     self Deployable Watercraft (NSDW) Study and the Joint Chiefs 
     of Staff Focused Logistics Study, which are to determine the 
     requirements of the Navy to provide lift support for mine 
     warfare ships and other vessels. The provision would also 
     reduce funding for mine countermeasures ship cradles by the 
     same amount.
       The House bill contained no similar provision.
       The Senate recedes on the provision.
       The conferees agree to authorize $10.0 million for 
     implementing recommendations resulting from the Navy's Non-
     self Deployable Watercraft (NSDW) Study and the Joint Chiefs 
     of Staff Focused Logistics Study and to reduce funding for 
     mine countermeasures ship cradles by the same amount. The 
     conferees are specifically not directing a particular 
     solution to meeting lift support requirements.
     Military readiness and the conservation of protected species
       The House bill contained a provision (sec. 312) that would 
     amend the Endangered Species Act of 1973 (Public Law 93-205) 
     to prohibit further designations of critical habitat for 
     endangered species in areas for which an Integrated Natural 
     Resources Management Plan has been prepared under the Sikes 
     Act (Public Law 86-797). The House provision would further 
     amend the Endangered Species Act to require regulatory 
     agencies to consider national security concerns in addition 
     to economic impact prior to designating future areas of 
     critical habitat.
       The Senate amendment contained no similar provision.
       The House recedes.
       The conferees believe that all federal agencies, including 
     the Armed Forces, should be required to comply with all 
     federal environmental laws. However, due to their unique 
     military training and operational responsibilities, the Armed 
     Forces often face unique challenges in balancing the 
     obligations to comply with environmental laws and sustain 
     military readiness. Examples of these challenges include 
     increasing limitations and restrictions on lands and waters 
     which are currently set aside for military training exercises 
     as well as significant restrictions on the times and 
     conditions under which military training exercises can be 
     conducted. The conferees are concerned that future 
     designations of critical habitat on military training ranges 
     could have an adverse impact on the military's readiness 
     capabilities.
       The conferees strongly endorse the consultative process 
     through which the military services work with the Fish and 
     Wildlife Service to ensure the protection of threatened and 
     endangered species by adopting effective Integrated Natural 
     Resources Management Plans at military installations. The 
     conferees are concerned that questions have been raised 
     regarding whether the protections provided by these 
     Integrated Natural Resources Management Plans, such as the 
     one at Marine Corps Base, Camp Pendleton, California, are 
     sufficient to avoid the need for future designations of 
     critical habitat that could adversely affect military 
     training. Nevertheless, the conferees encourage the 
     Department of the Interior and the Department of Defense to 
     pursue a cooperative approach in managing natural and 
     cultural resources throughout the Armed Forces.
       The conferees direct the Secretary of Defense to provide 
     the Committees on Armed Services of the Senate and the House 
     of Representatives recommendations for any legislative 
     proposals that he considers necessary to accomplish these 
     stated goals.
     Minimum deduction from pay of certain members of the Armed 
         Forces to support Armed Forces Retirement Home
       The House bill contained a provision (sec. 362) that would 
     require that the minimum amount deducted monthly from the pay 
     of all active duty enlisted, warrant officer, and limited 
     duty officer personnel for the support of the Armed Forces 
     Retirement Home be no less than $1.
       The Senate amendment contained no similar provision.
       The House recedes.
     National Army Museum, Fort Belvoir, Virginia
       The Senate amendment contained a provision (sec. 306) that 
     would authorize $100,000 to initiate planning and development 
     efforts for the National Army Museum at Fort Belvoir, 
     Virginia.
       The House bill contained no similar provision.
       The Senate recedes.
     Navy data conversion activities
       The Senate amendment contained a provision (sec. 352) that 
     would authorize $1.5 million in Navy operation and 
     maintenance funds for the Navy Data Conversion and Management 
     Laboratory. The provision would offset this increase with a 
     reduction of $1.5 million from Army operation and maintenance 
     funds for utilities privatization.
       The House bill contained no similar provision.
       The Senate recedes.
     Navy Pilot Human Resources Call Center, Cutler, Maine
       The Senate amendment contained a provision (sec. 305) that 
     would authorize $1.5 million of Navy operation and 
     maintenance funds for the Navy Pilot Human Resources Call 
     Center in Cutler, Maine.
       The House bill contained no similar provision.
       The Senate recedes on the provision. The Navy operation and 
     maintenance table contained in this report describes the 
     conference agreement for the Cutler call center.
     Range Enhancement Initiative Fund
       The Senate amendment contained a provision (sec. 304) that 
     would authorize $20.0 million to create a new Range 
     Enhancement Initiative Fund from which funds would be drawn 
     to purchase easements or cover other costs incurred by the 
     military departments

[[Page H8453]]

     resulting from agreements entered into under the authorities 
     contained in section 2811 of the Senate amendment.
       The House bill contained no similar provision.
       The Senate recedes.
     Reimbursement for reserve component intelligence support
       The Senate amendment contained a provision (sec. 343) that 
     would authorize the use of operation and maintenance funds of 
     the military departments, combatant commands, and defense 
     agencies to reimburse pay, allowances and other expenses when 
     members of the National Guard and Reserve provide 
     intelligence or counterintelligence support to such 
     departments, commands, or agencies.
       The House bill contained no similar provision.
     The Senate recedes.

  Title IV--Military Personnel Authorizations Legislative Provisions 
                                Adopted

                       Subtitle A--Active Forces

     End strengths for active forces (sec. 401)
       The House bill contained a provision (sec. 401) that would 
     authorize the following end strengths for active duty 
     personnel of the Armed Forces as of September 30, 2003:

----------------------------------------------------------------------------------------------------------------
                                                                     FY 2003                   Change from
                                                FY 2002   ------------------------------------------------------
                   Service                     authorized                  Committee      FY 2003      FY 2002
                                                             Request    recommendation    request     authorized
----------------------------------------------------------------------------------------------------------------
Army........................................      480,000      480,000        484,800         4,800        4,800
Navy........................................      376,000      375,700        379,457         3,757        3,457
USMC........................................      172,600      175,000        175,000             0        2,400
Air Force...................................      358,800      359,000        360,795         1,795        1,995
                                             -------------------------------------------------------------------
      DOD Total.............................    1,387,400    1,389,700      1,400,052        10,352       12,652
----------------------------------------------------------------------------------------------------------------

       The Senate amendment contained a provision (sec. 401) that 
     would authorize the following end strengths: Army, 485,000; 
     Navy, 379,200; United States Marine Corps, 175,000; Air 
     Force, 362,500.
       The Senate recedes with an amendment that would authorize 
     the following end strengths:

----------------------------------------------------------------------------------------------------------------
                                                                     FY 2003                   Change from
                                                FY 2002   ------------------------------------------------------
                   Service                     authorized                  Committee      FY 2003      FY 2002
                                                             Request    recommendation    request     authorized
----------------------------------------------------------------------------------------------------------------
Army........................................      480,000      480,000        480,000             0            0
Navy........................................      376,000      375,700        375,700             0         -300
USMC........................................      172,600      175,000        175,000             0        2,400
Air Force...................................      358,800      359,000        359,000             0          200
      DOD Total.............................    1,387,400    1,389,700      1,389,700             0        2,300
----------------------------------------------------------------------------------------------------------------

       The conferees believe that the active duty end strengths 
     should be increased substantially. This belief is based not 
     only on the testimony of senior military officers who 
     describe their personnel as stretched to the limit by ever-
     expanding missions and operations tempo, but also on the fact 
     that more than 70,000 mobilized reservists remain on active 
     duty a year after the start of the war on terrorism, and 
     active duty tours for thousands more have been extended for a 
     second year because the active components lack the manpower 
     to meet requirements.
       Furthermore, the conferees are disappointed that due to 
     insufficient additional appropriations, the conference report 
     was unable to include the increased active end strength 
     authorizations recommended by the House and Senate in their 
     separate bills.
       That notwithstanding, in order to give the service 
     secretaries and the Secretary of Defense more flexibility to 
     man the force to meet mission requirements, the conferees 
     have, in separate provisions, expanded the authority of the 
     Secretary of Defense to increase active end strength from the 
     current two percent to three percent above authorized levels. 
     The conferees have also created new authority for the service 
     secretaries, recognizing the practical limitations they face, 
     to increase active end strength by two percent above 
     authorized levels.
       In recognition of the conferees' strong view that active 
     duty end strength should not be reduced any further as well 
     as the Secretary of Defense's apparent commitment to hold end 
     strengths at or above the requested levels, another provision 
     in this conference agreement (sec. 402) eliminates the 
     Secretary of Defense's current authority to reduce end 
     strength below authorized levels.
     Revision in permanent end strength minimum levels (sec. 402)
       The House bill contained a provision (sec. 402) that would 
     establish end strength floors for the active forces 
     equivalent to the end strengths recommended by the committee 
     in section 401.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would establish 
     end strength floors for the active forces equivalent to the 
     end strengths contained in the budget request and would 
     eliminate the Secretary of Defense's current authority to 
     reduce end strength below authorized levels.
     Expanded authority for administrative increases in statutory 
         active-duty end strengths (sec. 403)
       The House bill contained a provision (sec. 403) that would 
     authorize the secretaries of the military departments to 
     increase the authorized active duty end strength of their 
     respective military service by up to one percent.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would expand the 
     authority of the Secretary of Defense to increase active duty 
     end strength from the current two percent to three percent 
     above authorized levels and would provide new authority for 
     the service secretaries to increase active duty end strength 
     by two percent above authorized levels.
       This provision reflects the conferees' belief that the 
     requested end strength is not sufficient and gives the 
     service secretaries and the Secretary of Defense greater 
     flexibility to increase end strength as needed to meet 
     mission requirements.
     General and flag officer management (sec. 404)
       The House bill contained a provision (sec. 404) that would 
     exclude an officer serving in the position of Senior Military 
     Assistant to the Secretary of Defense from the limitation on 
     active duty officers in grades above major general and rear 
     admiral, increase by one the limit on the number of 
     lieutenant generals authorized for the Marine Corps, require 
     that the Chief of the Veterinary Corps of the Army serve in 
     the grade of brigadier general, and require the Secretary of 
     Defense to review and report to Congress on active duty and 
     reserve general and flag officer authorizations. The grade 
     requirements of this provision would be effective on the date 
     of receipt by Congress of the report required by this 
     provision.
       The Senate amendment contained a provision (sec. 403) that 
     would authorize one additional Marine Corps general officer 
     in a grade above major general.
       The Senate recedes with an amendment that would exclude an 
     officer serving in the position of Senior Military Assistant 
     to the Secretary of Defense from the limitation on active 
     duty officers in grades above major general and rear admiral, 
     increase by one the limit on the number of lieutenant 
     generals authorized for the Marine Corps, and require the 
     Secretary of Defense to review and report to Congress on 
     active duty and reserve general and flag officer 
     authorizations. The provision regarding the grade of the 
     Senior Military Assistant to the Secretary of Defense would 
     be effective on the date of receipt by Congress of the report 
     on active duty and reserve general and flag officer 
     authorizations. The provisions regarding the number of 
     lieutenant generals in the Marine Corps would be effective 
     upon date of enactment. The grade of the Chief of the 
     Veterinary Corps of the Army is addressed in a separate 
     provision.
     Extension of certain authorities relating to management of 
         numbers of general and flag officers in certain grades 
         (sec. 405)
       The House bill contained a provision (sec. 405) that would 
     extend to December 31, 2004, three expiring authorities 
     relating to general and flag officer management. Those 
     authorities provide for: the process by which the Secretary 
     of Defense and Chairman of the Joint Chiefs of Staff fill 
     vacant senior joint four-star general and flag officer 
     positions; the exemption of the senior joint four-star 
     general and flag officers appointed by that process from the 
     general and flag officer limits that apply to the military 
     services; and the process by which the Chairman of the Joint 
     Chiefs of Staff designates and fills 12 general and flag 
     officer positions on the joint staff and 10 reserve component 
     general and flag positions on the staffs of the commanders of 
     the unified and specified commands.

[[Page H8454]]

       The Senate amendment contained a provision (sec. 501) that 
     would extend these authorities to December 31, 2003.
       The Senate recedes.
     Increase in authorized strengths for Marine Corps officers on 
         active duty in the grade of colonel (sec. 406)
       The Senate amendment contained a provision (sec. 404) that 
     would increase by 40 the authorized strength for colonels on 
     active duty in the Marine Corps.
       The House bill contained no similar provision.
       The House recedes.

                       Subtitle B--Reserve Forces

     End strengths for Selected Reserve (sec. 411)
       The House bill contained a provision (sec. 411) that would 
     authorize the following end strengths for the selected 
     reserve personnel, including the end strength for reserves on 
     active duty in support of the reserves, as of September 30, 
     2003:

----------------------------------------------------------------------------------------------------------------
                                                              FY 2003                       Change from
                                                 ---------------------------------------------------------------
             Service                  FY 2002                        Committee
                                    authorized        Request     recommendation      FY 2003         FY 2002
                                                                      (limit)         request       authorized
----------------------------------------------------------------------------------------------------------------
Army National Guard.............         350,000         350,000         350,000               0               0
Army Reserve....................         205,000         205,000         205,000               0               0
Naval Reserve...................          87,000          87,800          87,800               0             800
Marine Corps Reserve............          39,558          39,558          39,558               0               0
Air National Guard..............         108,400         106,600         106,600               0          -1,800
Air Force Reserve...............          74,700          75,600          75,600               0             900
                                 -------------------------------------------------------------------------------
      DOD Total.................         864,658         864,558         864,558               0            -100
Coast Guard Reserve.............           8,000           9,000           9,000               0           1,000
----------------------------------------------------------------------------------------------------------------

       The Senate amendment contained an identical provision. The 
     conference agreement includes this provision.
     End strengths for Reserves on active duty in support of the 
         reserves (sec. 412)
       The House bill contained a provision (sec. 412) that would 
     authorize the following end strengths for reserves on active 
     duty in support of the reserves as of September 30, 2003:

----------------------------------------------------------------------------------------------------------------
                                                              FY 2003                       Change from
                                      FY 2002    ---------------------------------------------------------------
             Service                authorized                       Committee        FY 2003         FY 2002
                                                      Request     recommendation      request       authorized
----------------------------------------------------------------------------------------------------------------
Army National Guard.............          23,698          23,768          24,562             794             864
Army Reserve....................          13,406          13,588          14,070             482             664
Naval Reserve...................          14,811          14,572          14,572               0            -239
Marine Corps Reserve............           2,261           2,261           2,261               0               0
Air National Guard..............          11,591          11,697          11,697               0             106
Air Force Reserve...............           1,437           1,498           1,498               0              61
                                 -------------------------------------------------------------------------------
      DOD Total.................          67,204          67,384          68,660           1,276           1,456
----------------------------------------------------------------------------------------------------------------

       The Senate amendment contained a provision (sec. 412) that 
     would authorize the following end strengths: the Army 
     National Guard of the United States, 24,492; the Army 
     Reserve, 13,888; the Naval Reserve, 14,572; the Marine Corps 
     Reserve, 2,261; the Air National Guard of the United States, 
     11,727; the Air Force Reserve, 1,498.
       The Senate recedes with an amendment that would authorize 
     the following end strengths for reserves on active duty in 
     support of the reserves as of September 30, 2003:

----------------------------------------------------------------------------------------------------------------
                                                              FY 2003                       Change from
                                      FY 2002    ---------------------------------------------------------------
             Service                authorized                       Committee        FY 2003         FY 2002
                                                      Request     recommendation      request       authorized
----------------------------------------------------------------------------------------------------------------
Army National Guard.............          23,698          23,768          24,562             794             864
Army Reserve....................          13,406          13,588          14,070             482             664
Naval Reserve...................          14,811          14,572          14,572               0            -239
Marine Corps Reserve............           2,261           2,261           2,261               0               0
Air National Guard..............          11,591          11,697          11,727              30             136
Air Force Reserve...............           1,437           1,498           1,498               0              61
                                 -------------------------------------------------------------------------------
      DOD Total 67,204 67,384
       68,690 1,306 1,486.......
----------------------------------------------------------------------------------------------------------------

     End strengths for military technicians (dual status) (sec. 
         413)
       The House bill contained a provision (sec. 413) that would 
     authorize the following end strengths for military 
     technicians (dual status) as of September 30, 2003:

----------------------------------------------------------------------------------------------------------------
                                                              FY 2003                       Change from
                                                 ---------------------------------------------------------------
             Service                  FY 2002                        Committee
                                    authorized        Request     recommendation      FY 2003         FY 2002
                                                                      (limit)         request       authorized
----------------------------------------------------------------------------------------------------------------
Army National Guard.............          23,615          23,615          24,102             487             487
Army Reserve....................           6,249           6,349           6,599             250             350
Air National Guard..............          22,422          22,495          22,495               0              73
Air Force Reserve...............           9,818           9,911           9,911               0              93
                                 -------------------------------------------------------------------------------
      DOD Total.................          62,104          62,370          63,107             737           1,003
----------------------------------------------------------------------------------------------------------------

       The Senate amendment contained an identical provision (sec. 
     413).
       The conference agreement includes this provision.
     Fiscal year 2003 limitation on non-dual status technicians 
         (sec. 414)
       The House bill contained a provision (sec. 414) that would 
     establish the following limits on the number of non-dual 
     status technicians as of September 30, 2003:

----------------------------------------------------------------------------------------------------------------
                                                              FY 2003                       Change from
                                                 ---------------------------------------------------------------
             Service               FY 2002 limit                     Committee
                                                      Request     recommendation      FY 2003         FY 2002
                                                                      (limit)         request       authorized
----------------------------------------------------------------------------------------------------------------
Army National Guard.............           1,600           1,600           1,600               0               0
Army Reserve....................           1,095             995             995               0            -100
Air National Guard..............             350             350             350               0               0

[[Page H8455]]

 
Air Force Reserve...............              90               0              90              90               0
                                 -------------------------------------------------------------------------------
      DOD Total.................           3,135           2,945           3,035              90            -100
----------------------------------------------------------------------------------------------------------------

       The Senate amendment contained a provision (sec. 414) that 
     would establish numerical limits on the number of non-dual 
     status technicians who may be employed in the Department of 
     Defense as of September 30, 2003, as follows: (1) Army 
     National Guard of the United States, 1,600; (2) Air National 
     Guard of the United States, 350; (3) Army Reserve, 995; and 
     Air Force Reserve, 0.
       The Senate recedes.

              Subtitle C--Authorization of Appropriations

     Authorization of appropriations for military personnel (sec. 
         421)
       The House bill contained a provision (sec. 421) that would 
     authorize a total of $93,725.0 million to be appropriated to 
     the Department of Defense for military personnel.
       The Senate amendment included a similar provision (sec. 
     421) that would authorize a total of $94.4 billion to be 
     appropriated to the Department of Defense for military 
     personnel.
       The House recedes with an amendment that would authorize 
     $93,829.5 million to be appropriated to the Department of 
     Defense for military personnel.
       The conferees provide the following itemization of the 
     increases and decreases from the budget request related to 
     the military personnel accounts:

                        [Additions in millions]

Military Personnel Funding in DERF................................$22.9
ARNG National Guard AGR end strength increase......................28.4
USAR AGR end strength increase.....................................11.5
ANG AGR end strength increase.......................................0.7
                                                               ________
                                                               
  Total............................................................63.5
                        [Reductions in millions]

Accrual payment to Uniformed Services Retiree Health Care Fund...$405.0
Savings from DOD proposals not adopted.............................14.8
Repeal of special compensation for severely disabled...............53.9
Selective reenlistment bonus.......................................16.5
$30K Lump Sum Bonus................................................28.9
Enlistment bonus...................................................10.5
                                                               ________
                                                               
  Total                                                           529.6

                   Legislative Provisions Not Adopted

     Authority to increase strength and grade limitations to 
         account for reserve component members on active duty in 
         support of a contingency operation
       The Senate amendment contained a provision (sec. 402) that 
     would authorize the Secretary of Defense to increase the 
     limit on active duty end strength by the number of members of 
     the reserve components serving on active duty, with their 
     consent, in support of a contingency operation.
       The House bill contained no similar provision.
       The Senate recedes.

                   Title V--Military Personnel Policy

                       Items of Special Interest

     Department of Defense education partnerships
       The conferees recognize the importance of the continued 
     growth and development of partnerships, using web-based 
     technology, between the Department of Defense, high schools, 
     and institutions of higher education in order to ensure that 
     the services are able to effectively recruit and retain the 
     most qualified service members. The conferees are also aware 
     that the Department of Defense and the military services 
     already have a number of ongoing initiatives to foster such 
     education partnerships.
       The conferees encourage the Department to pursue new 
     partnerships, in a manner that is fully coordinated with 
     ongoing initiatives, that will facilitate the enrollment and 
     transfer of students with full recognition of credits among 
     two-year and four-year institutions of higher education. Such 
     new efforts could enhance education opportunities for 
     minority men and women, a demographic that currently makes up 
     nearly 40 percent of the enlisted members in the armed 
     services.
     Enrollments at Air Force Institute of Technology and Naval 
         Postgraduate School
       The conferees are concerned that the Air Force and the Navy 
     are not heeding the previous directions, as specified in the 
     Floyd D. Spence National Defense Authorization Act for Fiscal 
     Year 2001 (Public Law 106-398) and the National Defense 
     Authorization Act for Fiscal Year 2002 (Public Law 107-107), 
     to produce sufficient numbers of military personnel with the 
     requisite graduate level education in science, engineering, 
     and technology.
       The Air Force Institute of Technology and the Naval 
     Postgraduate School are uniquely qualified to meet these 
     graduate education requirements with specialized, military-
     relevant curricula. As noted by the Secretary of the Air 
     Force and the Secretary of the Navy in March 2002, the Air 
     Force and Navy are committed to maintaining each school as 
     world-class, higher education institutions underpinned by 
     their unique service heritage and character.
       Despite such commitment by the secretaries, the conferees 
     remain concerned that neither service is fully utilizing the 
     military student enrollment capacity of these two 
     institutions. Therefore, the conferees direct the Secretaries 
     of the Air Force and the Navy to report 120 days after 
     enactment of this Act their plans to increase the military 
     student enrollment at both schools.
     STARBASE resource and training center
       The Department of Defense STARBASE Program is an effective 
     community outreach program for youths ages six through 18 
     that is aimed at improving math and science skills. It also 
     addresses drug use prevention, health, self-esteem, and life 
     skills and exposes youth, parents, and teachers to the value 
     of military service. It currently operates at 39 locations 
     associated with active, guard, and reserve commands 
     throughout the United States. At least seven additional 
     locations are seeking STARBASE programs.
       The conferees are encouraged that the Department is looking 
     at ways to ensure that STARBASE academies are complying with 
     program standardization requirements and maintaining quality 
     control. The conferees urge the Department of Defense to 
     implement a cost-effective system for providing program 
     standardization and quality control during fiscal year 2003, 
     to include consideration of establishing a STARBASE resource 
     and training center.

                     Legislative Provisions Adopted

                  Subtitle A--Officer Personnel Policy

     Extension of good-of-the-service waiver authority for 
         officers appointed to a Reserve Chief or Guard Director 
         position (sec. 501)
       The House bill contained a provision (sec. 502) that would 
     extend to December 31, 2004, the authority of the Secretary 
     of Defense to waive the requirement for significant joint 
     experience as a qualification for appointment as the Chief of 
     the Army, Navy, Air Force, or Marine Corps Reserve or as 
     Director of the Army or Air National Guard. The recommended 
     provision would also require the Secretary of Defense to 
     report to Congress the steps that he, together with the 
     Chairman of the Joint Chiefs and the secretaries of the 
     military departments, will take to ensure that no further 
     extensions of this waiver authority will be required after 
     2004.
       The Senate amendment contained a similar provision (sec. 
     502) that would extend the waiver authority from October 1, 
     2003 to December 31, 2003.
       The Senate recedes with an amendment that would require the 
     Secretary of Defense to submit by May 1, 2003, a report to 
     the Committees on Armed Services of the Senate and the House 
     of Representatives indicating what steps have been taken to 
     ensure that Reserve and Guard officers receive significant 
     joint duty experience and a date by which a waiver will no 
     longer be required.
     Exclusion of certain officers from limitation on authority to 
         grant a waiver of required completion or sequencing for 
         joint professional military education (sec. 502)
       The Senate amendment contained a provision (sec. 503) that 
     would repeal the 10 percent limitation on authority to grant 
     officers, in grades below brigadier general and rear admiral 
     (lower half), a waiver of the required sequence of joint 
     professional military education and joint duty assignment.
       The House bill contained no similar provision.
       The House recedes with an amendment that would exclude only 
     officers nominated and selected for the joint specialty 
     pursuant to section 521 of the National Defense Authorization 
     Act of Fiscal Year 2002 (Public Law 107-107) from the 10 
     percent limitation on authority to grant officers, in grades 
     below brigadier general and rear admiral (lower half), a 
     waiver of the required sequence of joint professional 
     military education and joint duty assignment. This authority 
     would expire on October 1, 2006.
     Extension and codification of authority for recall of retired 
         aviators to active duty (sec. 503)
       The Senate amendment contained a provision (sec. 504) that 
     would extend to September 30, 2008, the temporary authority 
     for recall of retired aviators to active duty.
       The House bill contained no similar provision.
       The House recedes with a clarifying amendment that would 
     terminate the authority to order retired aviators to active 
     duty on September 30, 2008, and would allow officers ordered 
     to active duty before that date to complete the period of 
     active duty specified in an agreement entered into by the 
     officer and the secretary concerned, even when that period of 
     active duty extends beyond September 30, 2008.

[[Page H8456]]

     Grades for certain positions (sec. 504)
       The Senate amendment contained a provision (sec. 505) that 
     would require that the heads of the Nurse Corps for the Army, 
     Navy, and Air Force be appointed in the regular grade of 
     major general or rear admiral. The Senate amendment contained 
     another provision (sec. 906) that would provide statutory 
     authorization for the Army Veterinary Corps and authorize 
     appointment of the officer serving in this position in the 
     regular grade of brigadier general.
       The House bill contained a provision (sec. 404(c)) that 
     would require that the Chief of the Veterinary Corps of the 
     Army serve in the grade of brigadier general.
       The House recedes with an amendment that would require that 
     the heads of the Nurse Corps for the Army, Navy, and Air 
     Force be appointed in the regular grade of major general or 
     rear admiral and that the Chief of the Veterinary Corps of 
     the Army serve in the grade of brigadier general. The 
     amendment would also establish the positions of Chief of 
     Legislative Liaison in the Departments of the Army and the 
     Air Force to be filled by officers in the grade of major 
     general; Chief of Legislative Affairs in the Department of 
     the Navy to be filled by an officer in the grade of rear 
     admiral; and Legislative Assistant to the Commandant of the 
     Marine Corps to be filled by an officer in a grade above 
     colonel.
     Reinstatement of authority to reduce three-year time-ingrade 
         requirement for retirement in grade for officers in 
         grades above major and lieutenant commander (sec. 505)
       The Senate amendment contained a provision (sec. 506) that 
     would authorize, during the period from September 1, 2002, 
     until December 31, 2004, waiver of one year of the three-year 
     time-in- grade requirement for retirement for officers in 
     grades above major and lieutenant commander. The amendment 
     would require advance notice to the Committees on Armed 
     Services of the Senate and House of Representatives and would 
     authorize the Deputy Under Secretary of Defense for Personnel 
     and Readiness to exercise this authority for flag and general 
     officers and the service secretaries or assistant secretaries 
     responsible for manpower and reserve affairs to exercise this 
     authority for retirements in grades of lieutenant colonel and 
     colonel, or, in the case of the Navy, commander and captain.
       The House bill contained no similar provision.
       The House recedes with an amendment that would authorize 
     the Secretary of Defense to authorize the service secretaries 
     to reduce the time-in-grade requirement for retirement to no 
     less than two years for retirements effective between October 
     1, 2002, and December 31, 2003. The amendment would authorize 
     a service secretary to approve an early retirement of a flag 
     or general officer only if approved by the Secretary of 
     Defense or a Senate- confirmed civilian official in the 
     Office of the Secretary of Defense. The amendment would 
     require advance notice to the Committees on Armed Services 
     of the Senate and the House of Representatives of the 
     exercise of this authority for officers retired in general 
     of flag officer grades.
     Authority to require that an officer take leave pending 
         review of a recommendation for removal by a board of 
         inquiry (sec. 506)
       The Senate amendment contained a provision (sec. 552) that 
     would authorize the service secretaries to require an officer 
     to take leave (including excess leave) while awaiting a 
     secretary's action on a board of inquiry's recommendation 
     that the officer not be retained on active duty.
       The House bill contained no similar provision.
       The House recedes with a technical amendment.

                Subtitle B--Reserve Component Management

     Reviews of National Guard strength accounting and management 
         and other issues (sec. 511)
       The House bill contained a provision (sec. 511) that would 
     require the Comptroller General to submit a report to 
     Congress on management of the National Guard. The recommended 
     provision would also require the Secretary of Defense to 
     submit a report to Congress on the differing Army and Air 
     Force policies for taking adverse administrative actions 
     against National Guard officers in a State status.
       The Senate amendment contained no similar provision.
       The Senate recedes with a technical amendment.
     Courts-martial for the National Guard when not in Federal 
         service (sec. 512)
       The House bill contained a provision (sec. 512) that would 
     update and streamline the administration of military justice 
     in the National Guard when it is not in a federal status and 
     would require the Secretary of Defense to develop a model 
     state Uniform Code of Military Justice and a model state 
     Manual for Courts- Martial.
       The Senate amendment contained no similar provision.
       The Senate recedes with a technical amendment.
     Fiscal year 2003 funding for military personnel costs of 
         reserve component Special Operations Forces personnel 
         engaged in humanitarian assistance activities relating to 
         clearing of landmines (sec. 513)
       The Senate amendment contained a provision (sec. 341) that 
     would amend section 401(c) of title 10, United States Code, 
     to allow up to 10 percent of the funding for a fiscal year 
     for humanitarian and civic assistance to be expended for the 
     pay and allowances of reserve component personnel of the 
     Special Operations Command (SOCOM) performing duty in 
     connection with training and activities related to the 
     clearing of landmines for humanitarian purposes.
       The House bill contained no similar provision.
       The House recedes with an amendment that authorizes for 
     fiscal year 2003 funds appropriated to a military department 
     for reserve component personnel to reimburse military 
     personnel expenses of Special Operations Forces of reserve 
     components engaged in humanitarian demining training and 
     activities. The total expenses incurred in this way cannot 
     exceed 10 percent of the operation and maintenance funding 
     for humanitarian demining, and the military services must be 
     fully reimbursed. The conferees direct the Secretary of 
     Defense, as part of the fiscal year 2004 budget request, to 
     submit a legislative proposal that ensures that the military 
     personnel expenses of active and reserve components employed 
     in humanitarian demining activities are defined in detail and 
     budgeted, authorized, and appropriated from military 
     personnel accounts.
     Use of Reserves to perform duties relating to defense against 
         terrorism (sec. 514)
       The Senate amendment contained a provision (sec. 1043) that 
     would change the definition of the term ``weapons of mass 
     destruction'' in sections 12304 and 12310 of title 10, United 
     States Code, so as to include any large conventional 
     explosive that is designed to produce catastrophic loss of 
     life or property.
       The House bill contained no similar provision.
       The House recedes with an amendment that would not change 
     the definition of the term ``weapons of mass destruction'' 
     but would amend sections 12303 and 12310 of title 10, United 
     States Code, to authorize the use of the reserves to perform 
     duties relating to defense against a terrorist attack or a 
     threatened terrorist attack that results, or could result, in 
     catastrophic loss of life or property.
     Repeal of prohibition on use of Air Force Reserve AGR 
         personnel for Air Force base security functions (sec. 
         515)
       The Senate amendment contained a provision (sec. 513) that 
     would repeal the prohibition on the use of Air Force Reserve 
     AGR personnel for Air Force base security functions.
       The House bill contained no similar provision.
       The House recedes.

         Subtitle C--Reserve Component Officer Personnel Policy

     Eligibility for consideration for promotion to grade of major 
         general for certain reserve component brigadier generals 
         who do not otherwise qualify for consideration for 
         promotion under the one-year rule (sec. 521)
       The House bill contained a provision (sec. 522) that would 
     permit reserve brigadier generals of the Army and Air Force 
     to be eligible for promotion with less than one year on the 
     reserve active status list or the active-duty list (or 
     combination of both lists) when the following three factors 
     apply to the officer:
       (1) The officer had been transferred from an inactive 
     status to the active status list during the one-year period 
     preceding the date of the convening of the promotion board.
       (2) The officer had been in an inactive status for less 
     than one year immediately before the officer's most recent 
     transfer to an active status.
       (3) The officer had continuously served for at least one 
     year on the reserve active status list or the active duty 
     list (or a combination of both lists) before the officer's 
     most recent transfer to an inactive status.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Authority for limited extension of medical deferment of 
         mandatory retirement or separation of reserve component 
         officers (sec. 522)
       The Senate amendment contained a provision (sec. 512) that 
     would authorize the service secretaries to defer the 
     mandatory retirement or separation of a Reserve component 
     officer for 30 days after completion of an evaluation 
     requiring hospitalization or medical observation to determine 
     the officer's entitlement to retirement or separation for 
     physical disability.
       The House bill contained a similar provision (sec. 524).
       The House recedes with a technical amendment.

        Subtitle D--Enlistment, Education, and Training Programs

     Enlistment incentives for pursuit of skills to facilitate 
         national service (sec. 531)
       The Senate amendment contained a provision (sec. 541) that 
     would authorize unique incentives to encourage individuals to 
     volunteer to serve the Nation through enlisting in the Armed 
     Forces. Individuals who volunteer under this program would be 
     required to serve on active duty for 15 months after 
     completion of initial entry training and could complete the 
     remainder of their military service obligation by choosing 
     service on active duty, in the Selected Reserve, in the 
     Individual Ready Reserve, or in another national service 
     program designated by the

[[Page H8457]]

     Secretary of Defense. Participants would be required to meet 
     all eligibility requirements for military service and would 
     elect one of the following incentives: (1) a $5000 bonus 
     payable after completion of 15 months of active duty, (2) 
     repayment of a qualifying student loan not to exceed $18,000, 
     (3) an educational allowance at the monthly rate payable 
     under the Montgomery GI Bill for 12 months, or (4) an 
     educational allowance of two-thirds of the monthly rate 
     payable under the Montgomery GI Bill for 36 months. Program 
     participants who are otherwise qualified and volunteer to 
     continue serving on active duty may be considered for 
     reenlistment or extension on active duty and any additional 
     benefits for which they may be eligible.
       The House bill contained no similar provision.
       The House recedes with an amendment that would require an 
     enlistee, upon completion of the initial obligated period of 
     service, to serve an additional period on active duty as 
     determined by the Secretary of Defense or 24 months in an 
     active status in the Selected Reserve, then to serve the 
     remaining period of obligated service on active duty, in the 
     Selected Reserve, in the Individual Ready Reserve, in the 
     Peace Corps, Americorps, or other national service program, 
     or some combination of these. The amendment would also change 
     the bonus amount for 36 months of educational assistance from 
     two-thirds to one-half of the monthly rate payable for basic 
     educational assistance under the Montgomery GI Bill.
     Authority for phased increase to 4,400 in authorized 
         strengths for the service academies (sec. 532)
       The House bill contained a provision (sec. 531) that would 
     permit the secretaries of the military departments, beginning 
     with classes entering the service academies during the 2003-
     2004 academic year, to increase the end strengths for cadets 
     or midshipmen from the current limit of 4,000 to 4,400 in 
     annual increments of up to 100.
       The Senate amendment contained a similar provision (sec. 
     521).
       The Senate recedes.
     Enhancement of reserve component delayed training program 
         (sec. 533)
       The House bill contained a provision (sec. 532) that would 
     authorize members who enlist in the reserve delayed training 
     program to remain in that program for one year, a full three 
     months longer than authorized in current law.
       The Senate amendment contained a similar provision (sec. 
     511).
       The Senate recedes.
     Review of Armed Forces programs for preparation for, 
         participation in, and conduct of athletic competitions 
         (sec. 534)
       The House bill contained a provision (sec. 533) that would 
     authorize members and units of the National Guard to use 
     appropriated funds to conduct and participate in qualifying 
     athletic and small arms competitions.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would require the 
     Secretary of Defense to conduct a comprehensive review of the 
     programs of the active and reserve components of the Armed 
     Forces for preparation for, participation in, and conduct of 
     athletic competitions. The amendment would also require the 
     Secretary to report to the Committees on Armed Services of 
     the Senate and the House of Representatives by March 3, 2003, 
     on: (1) the adequacy of funding sources for athletic 
     competitions, (2) recommendations regarding limitations on 
     the use of the funding sources or inadequacies in the funding 
     for athletic competitions, (3) an assessment of, and 
     recommendations for, achieving consistent funding and policy 
     treatment regarding the participation of active and reserve 
     component personnel in athletic competitions, and (4) any 
     recommended legislation.
     Repeal of bar to eligibility of Army College First Program 
         participants for benefits under student loan repayment 
         program (sec. 535)
       The conference agreement includes a provision that would 
     repeal the bar to eligibility for Educational Loan Repayment 
     Programs for persons receiving allowances for participating 
     in the College First Program.

           Subtitle E--Decorations, Awards, and Commendations

     Waiver of time limitations for award of Army Distinguished-
         Service Cross to certain persons (sec. 541)
       The Senate amendment contained a provision (sec. 531) that 
     would waive the statutory time limits for award of military 
     decorations to certain individuals who have been recommended 
     by the service secretaries for these awards.
       The House bill contained a similar provision (sec. 541).
       The House recedes with an amendment that would remove the 
     waiver of time limit for awards of the Distinguished Flying 
     Cross of the Navy because the time limit for this award is 
     not set forth in statute and may be waived by the Secretary 
     of the Navy.
     Option to convert award of Armed Forces Expeditionary Medal 
         awarded for Operation Frequent Wind to Vietnam Service 
         Medal (sec. 542)
       The House bill contained a provision (sec. 542) that would 
     authorize eligible veterans to receive the Vietnam Service 
     Medal in lieu of a previously awarded Armed Forces 
     Expeditionary Medal for participation in Operation Frequent 
     Wind, the evacuation of Vietnam conducted on April 29 and 30, 
     1975.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Korea Defense Service Medal (sec. 543)
       The Senate amendment contained a provision (sec. 532) that 
     would require the service secretaries to issue a campaign 
     medal, to be known as the Korea Defense Service Medal, to 
     military personnel who served in the Republic of Korea, or 
     the adjacent waters, between July 28, 1954, and a termination 
     date determined by the Secretary of Defense, and who meet 
     prescribed service requirements for eligibility.
       The House bill contained no similar provision.
       The House recedes with a technical amendment.
     Commendation of military chaplains (sec. 544)
       The Senate amendment contained a provision (sec. 1069) that 
     would express Congress's appreciation for the outstanding 
     contributions of military chaplains and would authorize and 
     request the President to issue a proclamation calling on the 
     people of the United States to recognize the distinguished 
     service of the Nation's military chaplains.
       The House bill contained no similar provision.
       The House recedes.

                   Subtitle F--Administrative Matters

     Staffing and funding for Defense Prisoner of War/Missing 
         Personnel Office (sec. 551)
       The House bill contained a provision (sec. 551) that would 
     require the Secretary of Defense to ensure that the Defense 
     Prisoner of War/Missing in Action Office (DPMO) is provided 
     sufficient personnel and funding to enable the DPMO to fully 
     perform its complete range of missions. The provision would 
     also prohibit reducing the number of military and civilian 
     personnel assigned or detailed to DPMO below the number 
     requested in the President's budget for fiscal year 2003 
     unless such a reduction is expressly required by law.
       The Senate amendment contained no similar provision.
       The Senate recedes with a technical amendment.
       The conferees note that the budget request for fiscal year 
     2003 provides for 46 military personnel and 69 civilian 
     personnel and includes a funding request for $16.0 million.
     Three-year freeze on reductions of personnel of agencies 
         responsible for review and correction of military records 
         (sec. 552)
       The House bill contained a provision (sec. 552) that would 
     preclude the secretaries of the military departments from 
     reducing the number of military and civilian personnel 
     assigned to duty within the review boards agencies through 
     fiscal year 2005 until 90 days after the secretary of the 
     military department concerned submits a report that describes 
     the proposed reduction, provides the rationale for the 
     reduction, and specifies the number of personnel that will be 
     assigned to the board after the reduction is complete.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Authority for acceptance of voluntary services of individuals 
         as proctors for administration of Armed Services 
         Vocational Aptitude Battery test (sec. 553)
       The House bill contained a provision (sec. 554) that would 
     authorize the secretaries concerned to accept the voluntary 
     services of educators and other individuals to assist 
     recruiters in administering the Armed Services Vocational 
     Aptitude Battery test to high school students.
       The Senate amendment contained a similar provision (sec. 
     1062).
       The Senate recedes with a technical amendment.
     Extension of temporary early retirement authority (sec. 554)
       The conference agreement includes a provision that would 
     extend the active force drawdown period from December 31, 
     2001, to September 1, 2002, for purposes of temporary 
     authority to approve retirements of members with at least 15 
     but less than 20 years of active service.

   Subtitle G--Matters Relating to Minorities and Women in the Armed 
                                 Forces

     Surveys of racial and ethnic issues and of gender issues in 
         the Armed Forces (sec. 561)
       The Senate amendment contained a provision (sec. 551) that 
     would require the Secretary of Defense to conduct two 
     separate biennial surveys, rather than a single annual 
     survey, 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 ``hate 
     group'' activity among such members.
       The House bill contained no similar provision.
       The House recedes with an amendment that would require the 
     Secretary of Defense to carry out four quadrennial surveys 
     (each in a separate year) to identify and assess racial, 
     ethnic, and gender issues and discrimination among members of 
     the Armed Forces, active and reserve, and the extent (if any) 
     of ``hate group'' activity among such members.
     Annual report on status of female members of the Armed Forces 
         (sec. 562)
       The House bill contained a provision (sec. 555) that would 
     require the Secretary of Defense to submit an annual report 
     to the Committees on Armed Services of the Senate and

[[Page H8458]]

     the House of Representatives on the status of female 
     members of the Armed Forces regarding assignments and 
     assignment policies, deployment, promotion and retention 
     rates, sexual harassment, and other personnel issues.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment clarifying the matters 
     to be included in the report and requiring that the report be 
     submitted for each of the fiscal years 2002 through 2006.
     Wear of abayas by female members of the Armed Forces in Saudi 
         Arabia (sec. 563)
       The Senate amendment contained a provision (sec. 554) that 
     would prohibit requiring or encouraging service members to 
     wear an abaya while serving in Saudi Arabia, taking adverse 
     action against members for choosing not to wear an abaya 
     while serving in Saudi Arabia, and using Department of 
     Defense funds to procure abayas for issuance to military 
     personnel serving in Saudi Arabia. The provision would also 
     require instruction to female service members ordered to duty 
     in Saudi Arabia about this prohibition.
       The House bill contained no similar provision.
       The House recedes with an amendment that would afford more 
     flexibility in the timing of instruction to service members 
     regarding this provision and would delete the prohibition on 
     taking adverse action against members for choosing not to 
     wear an abaya while serving in Saudi Arabia. The conferees 
     believe that this prohibition against adverse action is 
     unnecessary because service members could not be required or 
     encouraged to wear an abaya if this provision is enacted.

                          Subtitle H--Benefits

     Department of Defense support for persons participating in 
         military funeral honors details (sec. 571)
       The House bill contained a provision (sec. 553) that would 
     authorize the Secretary of Defense to prescribe a flat-rate 
     daily stipend for military retirees and others who are not 
     service members or government employees participating in 
     funeral honors details. The stipend would be paid in lieu of 
     separate payments for transportation and miscellaneous 
     expenses.
       The Senate amendment contained a similar provision (sec. 
     553).
       The Senate recedes with a technical amendment.
     Emergency leave of absence program (sec. 572)
       The House bill contained a provision (sec. 561) that would 
     authorize a service member to transfer accrued leave to 
     another member when the recipient is likely to require a 
     prolonged absence from duty due to a medical condition of a 
     family member or other hardship condition.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would authorize 
     service secretaries to grant a service member a one-time 
     emergency leave of absence of up to 14 days for a qualifying 
     emergency. This emergency leave of absence could be granted 
     only to prevent the member from entering unearned leave 
     status or excess leave status.
     Enhanced flexibility in medical loan repayment program (sec. 
         573)
       The House bill contained a provision (sec. 562) that would 
     repeal the bar against providing loan repayment benefits to 
     participants in the Armed Forces health professions 
     scholarship and financial assistance program and would remove 
     the limit on the total benefit that may be paid.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Destinations authorized for Government paid transportation of 
         enlisted personnel for rest and recuperation absence upon 
         extending duty at designated locations overseas (sec. 
         574)
       The Senate amendment contained a provision (sec. 633) that 
     would authorize enlisted personnel, who agree to extend an 
     overseas tour for a period of not less than one year, the 
     option of round-trip transportation to: (1) the nearest port 
     in the 48 contiguous states, or (2) an alternative 
     destination at equal or lesser cost.
       The House bill contained a similar provision (sec. 563).
       The House recedes with a technical amendment.
     Vehicle storage in lieu of transportation when member is 
         ordered to a nonforeign duty station outside continental 
         United States (sec. 575)
       The House bill contained a provision (sec. 564) that would 
     authorize members to store a privately owned vehicle when the 
     member is ordered to a duty station in a nonforeign area 
     outside the continental United States and the shipment of a 
     vehicle is prohibited or contingent upon completion of 
     extensive modification.
       The Senate amendment contained a similar provision (sec. 
     634).
       The Senate recedes.

                          Subtitle I--Reports

     Quadrennial quality of life review (sec. 581)
       The Senate amendment contained a provision (sec. 1034) that 
     would require the Secretary of Defense to conduct a 
     quadrennial quality of life review to examine the quality of 
     life of members of the Armed Forces.
       The House bill contained no similar provision.
       The House recedes with a clarifying amendment.
     Report on desirability and feasibility of consolidating 
         separate courses of basic instruction for judge advocates 
         (sec. 582)
       The House bill contained a provision (sec. 572) that would 
     require the Secretary of Defense to study the feasibility and 
     desirability of consolidating the separate Army, Navy and Air 
     Force courses of basic instruction for judge advocates at a 
     single location.
       The Senate amendment contained no similar provision.
       The Senate recedes.
       The conferees are aware of, and pleased with, the 
     exceptional quality of the various courses of study taught at 
     each of the separate service schools for judge advocates. The 
     conferees expect the Secretary and the military departments 
     to continue to offer judge advocate education of this high 
     caliber.
     Reports on efforts to resolve status of Captain Michael Scott 
         Speicher, United States Navy (sec. 583)
       The Senate amendment contained a provision (sec. 1035) that 
     would require the Secretary of Defense, in consultation with 
     the Secretary of State and the Director of Central 
     Intelligence, to submit to Congress a report no later than 60 
     days after enactment of this Act and every 90 days thereafter 
     on the efforts of the United States Government to determine 
     the status of Captain Michael Scott Speicher, U.S. Navy. The 
     reports would discuss direct and indirect contacts with the 
     Government of Iraq, requests to other governments for 
     assistance, leads, and cooperation from nongovernmental 
     organizations or international organizations pertaining to 
     resolving the status of Captain Speicher.
       The House bill contained no similar provision.
       The House recedes with an amendment that would have the 
     Secretary submit a report no later than 90 days after the 
     enactment of this Act and every 120 days thereafter, would 
     provide for the reports to cease upon a final determination 
     regarding the status of Michael Scott Speicher by the 
     Secretary of Defense, and would make other clarifying 
     amendments.
     Report on volunteer services of members of the reserve 
         components in emergency response to the terrorist attacks 
         of September 11, 2001 (sec. 584)
       The Senate amendment contained a provision (sec. 1039) that 
     would require the Secretary of Defense to report on volunteer 
     services performed by members of the reserve components not 
     in an official status in response to the September 11, 2001, 
     terrorist attacks on the World Trade Center and the Pentagon.
       The House bill contained no similar provision.
       The House recedes with an amendment that would require that 
     the report be submitted no later than 180 days after 
     enactment of this Act, include volunteer services performed 
     in the vicinity of Shanksville, Pennsylvania, in responding 
     to the crash of United Airlines Flight 93, and discuss any 
     recognition that the Secretary considers appropriate.

                   Legislative Provisions Not Adopted

     Exemption from active status strength limitation for reserve 
         component general and flag officers serving on active 
         duty in certain joint duty assignments designated by the 
         Chairman of the Joint Chiefs of Staff
       The House bill contained a provision (sec. 521) that would 
     exempt the 10 reserve component general and flag officers who 
     are serving on active duty in designated positions on the 
     joint staffs of the commanders of the unified and specified 
     commands from counting against the numbers of reserve 
     component general and flag officers authorized by section 
     12004 of title 10, United States Code.
       The Senate amendment contained no similar provision.
       The House recedes.
     Matching funds requirements under National Guard Youth 
         Challenge Program
       The House bill contained a provision (sec. 513) that would 
     increase the amount of assistance the Department of Defense 
     may provide to a state program of the National Guard 
     Challenge Program for a fiscal year not to exceed 75 percent 
     of the state program during that fiscal year.
       The Senate amendment contained no similar provision.
       The House recedes.
     Military recruiter access to institutions of higher education
       The Senate amendment contained a provision (sec. 542) that 
     would encourage and facilitate military service by requiring 
     institutions of higher education receiving assistance under 
     the Higher Education Act of 1965 (Public Law 89-329) to 
     provide military recruiters: (1) the same access to students 
     and the institution as is provided to prospective employers, 
     and (2) upon request, access to the names, addresses, and 
     telephone listings of students, except for the information of 
     students who have submitted a request that the information 
     not be released without prior written consent.
       The House bill contained no similar provision.
       The Senate recedes.
     Retention of promotion eligibility for reserve component 
         general and flag officers transferred to an inactive 
         status
       The House bill contained a provision (sec. 523) that would 
     permit reserve officers selected for promotion to major 
     general and

[[Page H8459]]

     rear admiral to retain their promotion eligibility and, if 
     otherwise qualified, be promoted to the higher grade upon 
     returning to an active status from an inactive status.
       The Senate amendment contained no similar provision.
       The House recedes.
     Right of convicted accused to request sentencing by military 
         judge
       The House bill contained a provision (sec. 571) that would 
     allow a convicted accused at a court-martial composed of a 
     military judge and court members to request that the sentence 
     be adjudged by a military judge rather than the court 
     members.
       The Senate amendment contained no similar provision.
       The House recedes.

          Title VI--Compensation and Other Personnel Benefits

                     Legislative Provisions Adopted

                     Subtitle A--Pay and Allowances

     Increase in basic pay for fiscal year 2003 (sec. 601)
       The House bill contained a provision (sec. 601) that would 
     increase basic pay by a minimum of 4.1 percent for all 
     members of the uniformed services and would provide 
     additional increases to mid-grade and senior non-commissioned 
     officers and mid-grade officers.
       The Senate amendment contained an identical provision (sec. 
     601).
       The conference agreement includes this provision.
     Basic allowance for housing in cases of low-cost or no-cost 
         moves (sec. 602)
       The Senate amendment contained a provision (sec. 603) that 
     would extend to locations outside the United States the 
     authority to pay the basic allowance for housing based on the 
     member's former duty assignment when the member's 
     reassignment is a low-cost or no-cost permanent change of 
     station or permanent change of assignment. This authority 
     currently applies only to assignments within the United 
     States.
       The House bill contained a similar provision (sec. 602).
       The House recedes.
     Rate of basic allowance for subsistence for enlisted 
         personnel occupying single Government quarters without 
         adequate availability of meals (sec. 603)
       The Senate amendment contained a provision (sec. 602) that 
     would authorize payment of an increased amount of basic 
     allowance for subsistence to enlisted members who are 
     assigned to single Government quarters without adequate 
     availability of meals from a Government messing facility.
       The House bill contained no similar provision.
       The House recedes with a technical amendment.

           Subtitle B--Bonuses and Special and Incentive Pays

     One-year extension of certain bonus and special pay 
         authorities for reserve forces (sec. 611)
       The House bill contained a provision (sec. 611) that would 
     extend the authority for the selected reserve reenlistment 
     bonus, the selected reserve enlistment bonus, special pay for 
     enlisted members of the selected reserve assigned to certain 
     high priority units, the selected reserve affiliation bonus, 
     the ready reserve enlistment and reenlistment bonus, and the 
     prior service enlistment bonus until December 31, 2003.
       The Senate amendment contained an identical provision (sec. 
     611).
       The conference agreement includes this provision.
     One-year extension of certain bonus and special pay 
         authorities for certain health care professionals (sec. 
         612)
       The House bill contained a provision (sec. 612) that would 
     extend the authority for the nurse officer candidate 
     accession program, the accession bonus for registered nurses, 
     the incentive special pay for nurse anesthetists, the special 
     pay for selected reserve health care professionals in 
     critically short wartime specialties, and the accession bonus 
     for dental officers until December 31, 2003. The provision 
     would also extend the authority for repayment of educational 
     loans for certain health care professionals who serve in the 
     selected reserve until January 1, 2004.
       The Senate amendment contained an identical provision (sec. 
     612).
       The conference agreement includes this provision.
     One-year extension of special pay and bonus authorities for 
         nuclear officers (sec. 613)
       The House bill contained a provision (sec. 613) that would 
     extend the authority for the special pay for nuclear-
     qualified officers extending the period of active service, 
     the nuclear career accession bonus, and the nuclear career 
     annual incentive bonus until December 31, 2003.
       The Senate amendment contained an identical provision (sec. 
     613).
       The conference agreement includes this provision.
     One-year extension of other bonus and special pay authorities 
         (sec. 614)
       The House bill contained a provision (sec. 614) that would 
     extend the authority for the aviation officer retention 
     bonus, the reenlistment bonus for active members, the 
     enlistment bonus for active members, the retention bonus for 
     members with critical military skills, and the accession 
     bonus for new officers in critical skills until December 31, 
     2003.
       The Senate amendment contained an identical provision (sec. 
     614).
       The conference agreement includes this provision.
     Increase in maximum rates for certain special pays, bonuses, 
         and financial assistance for health care professionals 
         (sec. 615)
       The Senate amendment contained a provision (sec. 615) that 
     would increase to $25,000 the maximum amount of the multiyear 
     retention bonus for certain medical officers. The Senate 
     amendment contained another provision (sec. 616) that would 
     increase to $50,000 the maximum amount payable as special 
     incentive pay for certain medical officers of the Armed 
     Forces for service during any 12-month period beginning after 
     fiscal year 2002.
       The House bill contained no similar provision.
       The House recedes with an amendment that would combine the 
     two Senate provisions and would increase: (1) the maximum 
     multiyear retention bonus to $50,000 for certain medical 
     officers, including dentists; (2) the maximum retention 
     special pay for optometrists to $15,000; (3) the maximum 
     accession bonus for registered nurses to $30,000; and (4) the 
     maximum incentive pay for nurse anesthetists to $50,000. The 
     amendment would also convert the special pay for pharmacy 
     officers to a retention special pay not to exceed $15,000 for 
     a 12-month period and, for nurse officer candidates, would 
     increase the maximum accession bonus to $10,000 and the 
     maximum monthly stipend to $1000.
     Assignment incentive pay (sec. 616)
       The Senate amendment contained a provision (sec. 617) that 
     would authorize the service secretaries, with the concurrence 
     of the Secretary of Defense, to pay a monthly incentive pay 
     of up to $1,500 to members serving in designated assignments.
       The House bill contained no similar provision.
       The House recedes with an amendment that would authorize 
     payment of assignment incentive pay for the period specified 
     in a written agreement between the member and the secretary 
     concerned and would provide that no agreements may be 
     entered into after December 31, 2005.
     Increase in maximum rates for prior service enlistment bonus 
         (sec. 617)
       The House bill contained a provision (sec. 616) that would 
     increase the maximum rates paid to reservists with critical 
     skills under the prior service enlistment bonus to $8,000 in 
     the case of a member who enlists for six years, to $4,000 in 
     the case of a member who enlists for three years, and to 
     $3,500 in the case of a member who received a prior bonus for 
     a three-year enlistment and who reenlists or extends for an 
     additional three years.
       The Senate amendment contained an identical provision (sec. 
     618).
       The conference agreement includes this provision.
     Retention incentives for health care professionals qualified 
         in a critical military skill (sec. 618)
       The House bill contained a provision (sec. 617) that would 
     amend the critical skill retention bonus to provide 
     exceptions to the limits on bonus amounts and years of 
     service for bonuses paid to health care professionals.
       The Senate amendment contained no similar provision.
       The Senate recedes with a technical amendment.

            Subtitle C--Travel and Transportation Allowances

     Extension of leave travel deferral period for members 
         performing consecutive overseas tours of duty (sec. 621)
       The House bill contained a provision (sec. 631) that would 
     authorize members who have been granted travel and 
     transportation allowances in connection with a consecutive 
     overseas tour to defer those benefits for the full duration 
     of the additional tour of duty. If the member is unable to 
     undertake the travel before the completion of the additional 
     tour because of duty in connection with a contingency 
     operation, the provision would authorize the member to defer 
     the travel and transportation for a year after the date on 
     which the member's duty in connection with the contingency 
     operation duty ends.
       The Senate amendment contained a similar provision (sec. 
     631).
       The Senate recedes with a clarifying amendment.
     Transportation of motor vehicles for members reported missing 
         (sec. 622)
       The Senate amendment contained a provision (sec. 632) that 
     would authorize shipment of two privately owned motor 
     vehicles when transportation of household and personal 
     effects is authorized at government expense in the case of 
     members who are officially reported as dead, injured, ill, or 
     absent for a period of more than 29 days in a missing status.
       The House bill contained no similar provision.
       The House recedes with a technical amendment.

             Subtitle D--Retired Pay and Survivor Benefits

     Permanent reduction from eight to six in number of years of 
         reserve service required for eligibility for retired pay 
         for non-regular service (sec. 631)
       The House bill contained a provision (sec. 642) that would 
     reduce the number of years

[[Page H8460]]

     of continuous reserve component service required immediately 
     before qualifying for non-regular retired pay from eight to 
     six.
       The Senate amendment contained no similar provision.
       The Senate recedes with a technical amendment.
     Increased retired pay for enlisted Reserves credited with 
         extraordinary heroism (sec. 632)
       The Senate amendment contained a provision (sec. 642) that 
     would authorize a 10 percent increase in the retired pay of 
     an enlisted member of a Reserve component when the member has 
     been credited with extraordinary heroism in the line of duty. 
     The amount of retired pay, including the 10 percent increase, 
     would not exceed 75 percent of the member's retired base pay.
       The House bill contained no similar provision.
       The House recedes with a clarifying amendment.
     Elimination of possible inversion in retired pay cost-of-
         living adjustment for initial COLA computation (sec. 633)
       The House bill contained a provision (sec. 643) that would 
     prevent partial-year retired pay cost-of-living 
     adjustments (COLAs) in the first year of retirement from 
     exceeding the COLA paid to retirees who were retired for 
     the entire year.
       The Senate amendment contained no similar provision.
       The Senate recedes with a technical amendment.
     Technical revisions to so-called ``forgotten widows'' annuity 
         program (sec. 634)
       The House bill contained a provision (sec. 644) that would 
     make technical and administrative changes to section 644 of 
     the National Defense Authorization Act for Fiscal Year 1998 
     (Public Law 105-85) that addressed annuities for certain 
     military surviving spouses.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would eliminate 
     the provision precluding retroactive benefits.
     Expansion of authority of Secretary of Defense to waive time 
         limitations on claims against the Government for military 
         personnel benefits (sec. 635)
       The Senate amendment contained a provision (sec. 643) that 
     would authorize the Secretary of Defense to waive the statute 
     of limitations for claims involving uniformed service 
     members' pay, allowances, travel, transportation, payments 
     for unused accrued leave, retired pay, and survivor benefits.
       The House bill contained no similar provision.
       The House recedes with a technical amendment.
     Special compensation for certain combat-related disabled 
         uniform services retirees (sec. 636)
       The House bill contained a provision (sec. 641) that would 
     phase in over five years repeal of the prohibition against 
     receipt of both military retired pay and veterans' disability 
     compensation for veterans whose disability is rated 60 
     percent or higher.
       The Senate amendment contained a similar provision (sec. 
     641) that would repeal the prohibition against receipt of 
     both military retired pay and veterans' disability 
     compensation.
       The Senate recedes with an amendment that would authorize 
     special compensation for uniformed services retirees who 
     completed at least 20 years of service creditable for 
     retirement and who incurred a qualifying combat-related 
     disability. A qualifying combat-related disability is: (1) 
     any disability rated at 10 percent or higher attributable to 
     an injury for which the member was awarded the Purple Heart; 
     or (2) a service-connected disability rated at 60 percent or 
     higher incurred as a direct result of armed conflict, while 
     engaged in hazardous service, in the performance of duty 
     under conditions simulating war, or through an 
     instrumentality of war. The amount of the special 
     compensation would be equal to the amount of veterans' 
     disability compensation to which the retiree would be 
     entitled based solely for the combat-related disability 
     without regard to sections 5304 and 5305 of title 38, United 
     States Code. This provision would be effective no later than 
     180 days after enactment.

                     Subtitle E--Montgomery GI Bill

     Time limitation for use of Montgomery GI Bill entitlement by 
         members of the Selected Reserve (sec. 641)
       The Senate amendment contained a provision (sec. 652) that 
     would extend from 10 to 14 years the maximum period that a 
     member of the Selected Reserve can use educational benefits 
     provided under the Montgomery GI Bill for the Selected 
     Reserve.
       The House bill contained a similar provision (sec. 651).
       The House recedes.
     Repayment requirements under reserve component Montgomery GI 
         Bill arising from failure to participate satisfactorily 
         in military service to be considered debts owed to the 
         United States (sec. 642)
       The Senate amendment contained a provision (sec. 653) that 
     would treat an obligation to pay a refund to the United 
     States for certain educational assistance as a debt to the 
     United States when the obligation to pay the refund was 
     incurred because the member failed to participate 
     satisfactorily in the Selected Reserve.
       The House bill contained no similar provision.
       The House recedes with a technical amendment.
     Technical adjustments to authority for certain members to 
         transfer educational assistance under Montgomery GI Bill 
         to dependents (sec. 643)
       The Senate amendment contained a provision (sec. 655) that 
     would clarify that dependents of active duty military 
     personnel would receive transferred Montgomery GI Bill 
     benefits at the veterans' rate rather than the in-service 
     rate.
       The House bill contained no similar provision.
       The House recedes with an amendment that would authorize 
     the Department of Veterans Affairs to make payments 
     attributable to increased usage of benefits as a result of 
     transfers of Montgomery GI Bill entitlement from the 
     Department of Defense Education Benefits Fund or from 
     appropriations made to the Department of Transportation.

                       Subtitle F--Other Matters

     Payment of interest on student loans (sec. 651)
       The Senate amendment contained a provision (sec. 656) that 
     would authorize the Secretary of Defense to pay interest on 
     student loans of service members for three years during their 
     first term of service.
       The House bill contained no similar provision.
       The House recedes with a technical amendment.
     Additional authority to provide assistance for families of 
         members of the Armed Forces (sec. 652)
       The Senate amendment contained a provision (sec. 651) that 
     would make permanent the temporary authority to provide 
     assistance to families of members of the Armed Forces serving 
     on active duty to ensure that the children of such families 
     obtain needed child care, education, and other youth 
     services.
       The House bill contained no similar provision.
       The House recedes.
     Repeal of authority for acceptance of honoraria by personnel 
         at certain Department of Defense schools (sec. 653)
       The Senate amendment contained a provision (sec. 654) that 
     would repeal a limited exemption from the ban on receipt of 
     honoraria by military and civilian faculty members and 
     students at the three service academies and certain 
     Department of Defense professional military schools. The 
     exemption limits acceptance of honoraria to $2,000.
       The House bill contained no similar provision.
       The House recedes with a clarifying amendment.
     Addition of definition of continental United States in title 
         37 (sec. 654)
       The House bill contained a provision (sec. 661) that would 
     amend section 101 of title 37, United States Code, to include 
     the definition of continental United States as the 48 
     contiguous states and the District of Columbia.
       The Senate amendment contained no similar provision.
       The Senate recedes with a technical amendment.

                   Legislative Provisions Not Adopted

     Minimum levels of hardship duty pay for duty on the ground in 
         Antarctica or on Arctic icepack
       The House bill contained a provision (sec. 615) that would 
     specify a hardship duty pay rate of no less than $240 per 
     month for duty performed by service members on the ground in 
     Antarctica or on the Arctic icepack.
       The Senate amendment contained no similar provision.
       The House recedes.
       The conferees direct that the issue of payment of special 
     and incentive pays for reservists who perform frequent and 
     continuous duty on ski-equipped aircraft operating in the 
     polar regions while assigned temporarily to locations where 
     extremely harsh conditions are encountered be included in the 
     reserve component personnel compensation review directed in 
     the Senate report accompanying S. 2514 (S. Rept. 107-151) and 
     in the Comptroller General review of compensation and 
     benefits for reserve component members directed in the House 
     report accompanying H.R. 4546 (H. Rept. 107-436).
     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
       The Senate amendment contained a provision (sec. 657) that 
     would modify the amount of back pay determined for a member 
     of the Navy or Marine Corps selected for promotion while 
     interned as a prisoner of war during World War II to reflect 
     increases in the cost of living.
       The House bill contained no similar provision.
       The Senate recedes.

                   Title VII--Health Care Provisions

                       Items of Special Interest

     Civil-military partnership education programs related to 
         sexual health decision-making
       The conferees are aware of collaborative civil-military 
     partnership education programs related to sexual health 
     decision- making that may have benefits in the reduction of 
     unintended pregnancies and sexually transmitted infections 
     among military personnel. Such efforts have the potential to 
     contribute to improving both the readiness and health of 
     military personnel in all services. The conferees direct the 
     Department of

[[Page H8461]]

     Defense to examine such collaborative programs and consider 
     their use by other services.
     Naval Medical Research Center cooperative agreements
       The conferees encourage the Secretary of the Navy, acting 
     through the Director of the Naval Medical Research Center, to 
     enter into cooperative agreements with administrators of 
     donor banks to provide for cooperation between the Bone 
     Marrow Registry of the Naval Medical Research Center and the 
     donor banks. In light of the fact that bone marrow donor 
     searches for minority groups take nearly twice as long as 
     searches for non-minorities, the Director is encouraged to 
     give a high priority to selecting donor banks that emphasize 
     the involvement of members of minority groups as donors of 
     tissue or as patients.
     TRICARE in Alaska
       The conferees are well aware of the unique challenges in 
     providing health care to military beneficiaries in Alaska. 
     Geographic impacts on access to care, limited managed care 
     initiatives, and the level of reimbursement rates demand 
     constant and local oversight of the military health care 
     delivery system to ensure adequate and appropriate access for 
     military beneficiaries. The conferees commend the local 
     military treatment facility commanders for the arrangements 
     that have been established with local health care providers 
     and other federal health care entities to ensure timely 
     access to quality care. The conferees urge the Secretary of 
     Defense to exclude Alaska from fiscal year 2003 managed care 
     contracts.

                     Legislative Provisions Adopted

              Subtitle A--Health Care Program Improvements

     Elimination of requirement for TRICARE preauthorization of 
         inpatient mental health care for medicare-eligible 
         beneficiaries (sec. 701)
       The House bill contained a provision (sec. 701) that would 
     eliminate the requirement for pre-admission authorization for 
     inpatient mental health services when medicare has already 
     authorized such care and medicare is the primary payer.
       The Senate amendment contained a similar provision (sec. 
     702).
       The Senate recedes with an amendment that would require 
     advance authorization for a continuation of inpatient mental 
     health services when medicare coverage terminates.
     Continued TRICARE eligibility of dependents residing at 
         remote locations after departure of sponsors for 
         unaccompanied assignments and eligibility of dependents 
         of reserve component members ordered to active duty (sec. 
         702)
       The Senate amendment contained a provision (sec. 703) that 
     would authorize continued eligibility of family members for 
     TRICARE Prime Remote when the sponsoring service member is 
     transferred from a duty that qualified the family members for 
     TRICARE Prime Remote and the family members remain at the 
     current duty location because they are not authorized to 
     accompany the member to the new duty assignment.
       The House bill contained a similar provision (sec. 702).
       The House recedes with an amendment that extends the 
     TRICARE Prime Remote benefit to dependents of reserve 
     component personnel residing in locations that qualify for 
     TRICARE Prime Remote when the member is ordered to active 
     duty for more than 30 days.
     Eligibility of surviving dependents for TRICARE dental 
         program benefits after discontinuance of former 
         enrollment (sec. 703)
       The Senate amendment contained a provision (sec. 701) that 
     would authorize certain surviving dependents to enroll in the 
     TRICARE dental plan.
       The House bill contained a similar provision (sec. 703).
       The House recedes.
     Department of Defense Medicare-Eligible Retiree Health Care 
         Fund (sec. 704)
       The Senate amendment contained a provision (sec. 706) that 
     would require that contributions to the Department of Defense 
     Medicare-Eligible Retiree Health Care Fund be paid from 
     military personnel funds.
       The House bill contained a similar provision (sec. 704).
       The House recedes.
       The conferees intend that the Department of Defense exclude 
     cadets and midshipmen from average force strength 
     calculations for the Medicare-Eligible Retiree Health Care 
     Fund under sections 1115 and 1116 of title 10, United States 
     Code, just as cadets and midshipmen are excluded from average 
     force strength calculations for the Department of Defense 
     Military Retirement Fund under sections 1465 and 1466 of 
     title 10, United States Code.
     Approval of medicare providers as TRICARE providers (sec. 
         705)
       The Senate amendment contained a provision (sec. 704) that 
     would require that medicare-approved health care providers 
     also be considered as approved TRICARE providers.
       The House bill contained a similar provision (sec. 705).
       The House recedes with an amendment that would make this 
     provision effective for new TRICARE contracts entered into on 
     or after the date of the enactment of this Act.
     Technical corrections relating to transitional health care 
         for members separated from active duty (sec. 706)
       The Senate amendment contained a provision (sec. 707) that 
     would correct section 736 of the National Defense 
     Authorization Act for Fiscal Year 2002 (Public Law 107-107) 
     to provide transitional health care to the dependents of 
     members separated from active duty who are eligible for 
     transitional health care.
       The House bill contained a similar provision (sec. 706).
       The House recedes.
     Extension of temporary authority to enter into personal 
         services contracts for the performance of health care 
         responsibilities at locations other than military medical 
         treatment facilities (sec. 707)
       The Senate amendment contained a provision (sec. 708) that 
     would extend until December 31, 2003, the authority to 
     contract with physicians to provide new-recruit physicals.
       The House bill contained no similar provision.
       The House recedes.
     Access to health care services for beneficiaries eligible for 
         TRICARE and Department of Veterans Affairs health care 
         (sec. 708)
       The Senate amendment contained a provision (sec. 710) that 
     would provide that a TRICARE Prime beneficiary could not be 
     denied health care under TRICARE on the basis that the 
     beneficiary had received care from the Department of Veterans 
     Affairs if the Department of Veterans Affairs cannot provide 
     the care within the time limit standards for TRICARE Prime.
       The House bill contained no similar provision.
       The House recedes with an amendment that would require the 
     Secretary of Defense to prescribe a process for resolving 
     issues relating to patient safety and continuity of care for 
     beneficiaries who are concurrently entitled to health care 
     under TRICARE and are eligible for health care services from 
     the Department of Veterans Affairs. The amendment would also 
     require the Comptroller General to conduct a study of the 
     health care issues of beneficiaries covered by both systems.
     Disclosure of information on Project 112 to Department of 
         Veterans Affairs (sec. 709)
       The Senate amendment contained a provision (sec. 1065) that 
     would require the Secretary of Defense to submit to Congress 
     and the Secretary of Veterans Affairs a plan for review, 
     declassification, and submission to the Department of 
     Veterans Affairs of all medically relevant information 
     regarding the Shipboard Hazard and Defense (SHAD) project to 
     facilitate the provision of Veterans Administration benefits 
     to former service members who participated in that project.
       The House bill contained no similar provision.
       The House recedes with an amendment that would expand the 
     scope of the plan to include all medically relevant 
     information on Project 112, which includes the SHAD project, 
     and would require a GAO review of the plan.

                          Subtitle B--Reports

     Claims information (sec. 711)
       The Senate amendment contained a provision (sec. 705) that 
     would require the Secretary of Defense, in new managed care 
     support contracts entered into under the TRICARE program on 
     or after October 1, 2002, to adopt new claims requirements 
     that are substantially the same as Medicare claims 
     requirements.
       The House bill contained a provision (sec. 711) that would 
     require the Comptroller General to evaluate the continuing 
     impediments to a cost-effective provider and beneficiary-
     friendly system for TRICARE claims processing.
       The House recedes with an amendment that would combine the 
     provisions and limit claims information to the information 
     required for Medicare claims except for information that is 
     uniquely required by the TRICARE program.
     Comptroller General report on provision of care under the 
         TRICARE program (sec. 712)
       The House bill contained a provision (sec. 712) that would 
     require the Comptroller General to evaluate the nature, 
     reasons, and extent of trends in TRICARE network provider 
     turbulence and the effectiveness of the efforts of the 
     Department of Defense and TRICARE managed care support 
     contractors to measure and mitigate such turbulence.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Repeal of report requirement (sec. 713)
       The House bill contained a provision (sec. 713) that would 
     repeal the TRICARE Senior Prime annual reporting requirement 
     specified in section 712 of the Floyd D. Spence National 
     Defense Authorization Act for Fiscal Year 2001 (Public Law 
     106-398).
       The Senate amendment contained no similar provision.
       The Senate recedes.

Subtitle C--Department of Defense-Department of Veterans Affairs Health 
                           Resources Sharing

     Revised coordination and sharing guidelines (sec. 721)
       The House bill contained a provision (sec. 723) that would 
     require the Secretary of Veterans Affairs and the Secretary 
     of Defense

[[Page H8462]]

     to: (1) enter into agreements and contracts for the mutually 
     beneficial coordination, use, or exchange of the health care 
     resources of the respective Departments; (2) develop and 
     publish a joint strategic vision and plan; (3) establish and 
     jointly fund a Department of Defense-Veterans Affairs health 
     executive committee; (4) establish and fund a joint 
     incentives program; (5) jointly develop guidelines and 
     policies for implementation of coordination and sharing 
     recommendations, contracts, and agreements; and (6) jointly 
     submit an annual report to Congress on health care 
     coordination and sharing activities.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would require the 
     Comptroller General to review the implementation and 
     effectiveness of the joint incentives program and report to 
     the Committees on Armed Services and Veterans' Affairs of the 
     Senate and the House of Representatives on the results of the 
     review. The amendment would also incorporate the reporting 
     requirements contained in separate provisions into the annual 
     joint report required in this provision and would make other 
     technical changes.
     Health care resources sharing and coordination project (sec. 
         722)
       The House bill contained a provision (sec. 724) that would 
     require the Secretary of Veterans Affairs and the Secretary 
     of Defense to conduct a health care resources sharing project 
     at no less than five sites to test the feasibility, 
     advantages, and disadvantages of measures and programs 
     designed to improve the sharing and coordination of health 
     care and health care resources between the Department of 
     Veterans Affairs and the Department of Defense.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would require 
     health care resources sharing projects at no less than three 
     sites, would remove the requirement to test affording 
     beneficiaries of either Department access to the 
     pharmaceutical services of the other Department, and would 
     require the Comptroller General to provide for an annual on-
     site review at each of the project locations and report to 
     the Committees on Armed Services and Veterans' Affairs of the 
     Senate and House of Representatives.
       The conferees do not anticipate that the ``coordinated 
     management system'' will disrupt established command and 
     control or established reporting chains for either agency.
     Report on improved coordination and sharing of health care 
         and health care resources following domestic acts of 
         terrorism or domestic use of weapons of mass destruction 
         (sec. 723)
       The House bill contained a provision (sec. 725) that would 
     require the Secretary of Defense and the Secretary of 
     Veterans Affairs to review the adequacy of current processes 
     and existing statutory authorities and policy governing the 
     capability of the Department of Defense and the Department of 
     Veterans Affairs to provide health care to service members 
     following domestic acts of terrorism or domestic use of 
     weapons of mass destruction, both before and after a 
     declaration of national emergency. The provision would 
     require the Secretaries to report the results to Congress 
     with the fiscal year 2004 budget submission.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Interoperability of Department of Veterans Affairs and 
         Department of Defense pharmacy data programs (sec. 724)
       The House bill contained a provision (sec. 726) that would 
     require the Secretary of Veterans Affairs to adopt the 
     Department of Defense's Pharmacy Data Transaction System.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would require the 
     Secretary of Veterans Affairs and the Secretary of Defense to 
     seek to ensure that, by October 1, 2004, their respective 
     pharmacy data systems are using national standards for the 
     exchange of outpatient medication information and are 
     interoperable, achieving real-time interface, data exchange, 
     and checking of prescription drug data of outpatients. If 
     interoperability is not achieved by October 1, 2004, the 
     amendment would require the Secretary of Veterans Affairs to 
     adopt the Department of Defense Pharmacy Data Transaction 
     System by October 1, 2005.
       The conferees believe the Secretary of Veterans Affairs 
     should consider the National Council for Prescription Drug 
     Program Standards in determining the national standards 
     required for interoperability.
     Joint pilot program for providing graduate medical education 
         and training for physicians (sec. 725)
       The House bill contained a provision (sec. 727) that would 
     require the Secretary of Defense and the Secretary of 
     Veterans Affairs to conduct a joint pilot program under which 
     graduate medical education and training is provided to 
     military physicians and physician employees of their 
     departments.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Repeal of certain limits on Department of Veterans Affairs 
         resources (sec. 726)
       The House bill contained a provision (sec. 728) that would 
     repeal the limits on the total number of authorized Veterans 
     Administration hospital and nursing home beds.
       The Senate amendment contained no similar provision.
       The Senate recedes.

                   Legislative Provisions Not Adopted

     Findings and sense of Congress concerning status of health 
         resources sharing between the Department of Veterans 
         Affairs and the Department of Defense
       The House bill contained a provision (sec. 722) that would 
     express a sense of Congress that the Secretary of Defense and 
     Secretary of Veterans Affairs should commit their respective 
     Departments to significantly improve mutually beneficial 
     sharing and coordination of health care resources and 
     services during peace and war, build organizational cultures 
     supportive of improved sharing and coordination of health 
     care resources and services, and establish and achieve 
     measurable goals to facilitate increased sharing and 
     coordination of health care resources and services.
       The Senate amendment contained no similar provision.
       The House recedes.
       The conferees strongly support coordination and sharing of 
     health care resources between the Department of Defense and 
     the Department of Veterans Affairs. Federal health care 
     resources are scarce and thus should be effectively and 
     efficiently used. Health care beneficiaries of the 
     Departments of Defense and Veterans Affairs, whether active 
     service members, veterans, retirees, or family members of 
     active or retired service members, should have full access to 
     the health care and services that Congress has authorized for 
     them.
       In 1982, Congress authorized the sharing of health 
     resources between Department of Defense medical treatment 
     facilities and Department of Veterans Affairs health care 
     facilities to allow more effective and efficient use of those 
     health resources. The Secretary of Defense and the Secretary 
     of Veterans Affairs, and the appropriate officials of each of 
     the Departments of Defense and Veterans Affairs with 
     responsibilities related to health care, have not taken full 
     advantage of the opportunities provided by law to make their 
     respective health resources available to health care 
     beneficiaries of the other Department in order to provide 
     improved health care for beneficiaries of both health 
     systems.
       The conferees are disappointed that, after the many years 
     of support and encouragement from Congress, the Departments 
     have made little progress in health resource sharing and the 
     intended results of the sharing authority have not been 
     achieved. The conferees expect greater cooperation between 
     the Departments in the future.
     Reports
       The House bill contained a provision (sec. 729) that would 
     require an interim report on the conduct of each program 
     under the Department of Defense-Department of Veterans 
     Affairs Health Resources Sharing and Performance Improvement 
     Act of 2002, an annual report on the use of waiver 
     authorities, a pharmacy benefits report, and an annual report 
     on the pilot program for graduate medical education.
       The Senate amendment contained no similar provision.
       The House recedes.
       The reports contained in this provision have been 
     incorporated in a separate provision.
     Restoration of previous policy regarding restrictions on use 
         of Department of Defense medical facilities
       The Senate amendment contained a provision (sec. 709) that 
     would repeal the prohibition on using Department of Defense 
     facilities for abortions.
       The House bill contained no similar provision.
       The Senate recedes.
     Short title
       The House bill contained a provision (sec. 721) that would 
     entitle Subtitle C of the House Bill the ``Department of 
     Defense-Department of Veterans Affairs Health Resources 
     Sharing and Performance Improvement Act of 2002.''
       The Senate amendment contained no similar provision.
       The House recedes.

  Title VIII--Acquisition Policy, Acquisition Management, and Related 
                                Matters

                     Legislative Provisions Adopted

             Subtitle A--Acquisition Policy and Management

     Buy-to-budget acquisition of end items (sec. 801)
       The Senate amendment contained a provision (sec. 801) that 
     would authorize the Department of Defense to make the best 
     use of limited resources by acquiring a higher quantity of an 
     end item than the number specified in an authorization or 
     appropriations law or the accompanying report language.
       The House bill contained no similar provision.
       The House recedes with an amendment that would add a 
     definition of the term ``end item'' and make certain 
     technical changes to the provision.
     Report to Congress on evolutionary acquisition of major 
         defense acquisition programs (sec. 802)
       The Senate amendment contained a provision (sec. 802) that 
     would require the Secretary of Defense to submit to the 
     congressional defense committees a report on how the 
     Department of Defense plans to comply

[[Page H8463]]

     with applicable requirements of title 10, United States Code, 
     and Department of Defense regulations when it conducts 
     programs for the incremental acquisition of major systems.
       The House bill contained no similar provision.
       The House recedes with an amendment that would require the 
     submission of a report on the application of such 
     requirements to the evolutionary acquisition of major defense 
     acquisition programs and make certain technical changes.
     Spiral development under major defense acquisition programs 
         (sec. 803)
       The Senate amendment contained a provision (sec. 803) that 
     would authorize the Secretary of Defense to conduct a pilot 
     program for the spiral development of major systems. Under 
     the Senate provision, the Secretary would be required to 
     issue guidance on how spiral development programs would be 
     designed to meet key acquisition system objectives and to 
     approve a spiral development plan for each spiral development 
     program.
       The House bill contained no similar provision.
       The House recedes with an amendment that would: (1) provide 
     permanent authorization to conduct spiral development in lieu 
     of a pilot program; (2) authorize the Secretary to delegate 
     the approval of spiral development plans to designated 
     officials; (3) limit the applicability of the provision to 
     major defense acquisition programs; and (4) give the 
     Secretary greater flexibility in developing guidance.
     Improvement of software acquisition processes (sec. 804)
       The Senate amendment contained a provision (sec. 804) that 
     would require the secretary of each military department and 
     the head of each defense agency that manages a major defense 
     acquisition program with a substantial software component to 
     establish a program to improve its software acquisition 
     processes.
       The House bill contained no similar provision.
       The House recedes with an amendment that would require the 
     Department of Defense to ensure that: (1) key program 
     personnel have an appropriate level of experience or training 
     in software acquisition; and (2) criteria used in the 
     selection of sources for software provide appropriate 
     emphasis on the past performance in developing and producing 
     software and the maturity of the software products offered.
     Performance goals for procuring services pursuant to multiple 
         award contracts (sec. 805)
       The Senate amendment contained a provision (sec. 811) that 
     would establish annual goals for the Department of Defense 
     (DOD) to increase the percentage of services purchases under 
     multiple award contracts that are: (1) entered on the basis 
     of competition with more than one offer received; and (2) 
     performance-based with fixed prices for specific tasks to be 
     performed.
       The House bill contained no similar provision.
       The House recedes with an amendment that would repeal goals 
     established in the National Defense Authorization Act for 
     Fiscal Year 2002 (Public Law 107-107) for savings to be 
     achieved through improved management of the Department's 
     $50.0 billion of services contracts. The conference amendment 
     would also: (1) modify the goals for the competitive purchase 
     of services under multiple award contracts to 40 percent for 
     fiscal year 2003, 50 percent for fiscal year 2004, and 75 
     percent for fiscal year 2011; and (2) modify the goals for 
     performance-based purchases of services under such contracts 
     to 25 percent in fiscal year 2003, 35 percent in 2004, 50 
     percent in 2005, and 70 percent in 2011. The Secretary of 
     Defense would be authorized to adjust any of these 
     percentage goals upon a determination that such goal is 
     too high and cannot reasonably be achieved.
       The conferees understand that the Department has been 
     unable to develop a method for measuring savings achieved 
     through the improved management of services contracts. The 
     goals for competitive and performance-based services 
     contracting established by the conference amendment would 
     establish measurable benchmarks for the increased use of 
     improved management approaches for services contracts.
       In the 1990's, the Office of Federal Procurement Policy 
     (OFPP) conducted a government-wide, performance-based service 
     contracting (PBSC) pilot program including 26 contracts from 
     15 agencies with a combined award value of approximately 
     $585.0 million. OFPP found that, ``On average contract price 
     decreased by 15% in nominal dollars after the introduction of 
     PBSC. This does not consider that, absent the conversion to 
     PBSC, additional inflation-related price increases of 16% 
     could have been expected.''
       The report cautions that all elements of performance-based 
     contracting must be followed in order to achieve optimal 
     success. According to the report, the minimum essential 
     components of performance-based contracting include: 
     performance requirements; measurable performance standards; 
     government quality assurance plans based on measurements of 
     the work against the performance standards; and incentives 
     based on the quality assurance measurements. The conferees 
     are aware of the significant effort that will be required to 
     implement performance-based contracting on an extensive 
     basis.
       The conferees also note that significant savings can be 
     found where a non-technical cost type contract is converted 
     to a fixed price performance-based contract. In addition, the 
     Acting Inspector General of the Department of Defense 
     testified in the mid-1990's that the first decade of 
     implementation of the Competition in Contracting Act of 1984 
     (Public Law 98-396) had resulted in significant cost 
     avoidance. On August 3, 1995, the Acting Inspector General 
     testified that: ``While we have seen savings of 5 to over 90 
     percent from competition, typically competition results in 
     price reductions of 15 to 30 percent.'' The conferees believe 
     that the Department should be able to achieve significant 
     savings by meeting the performance goals established in this 
     provision.
     Rapid acquisition and deployment procedures (sec. 806)
       The House bill contained a provision (sec. 808) that would 
     require the Secretary of Defense to develop procedures for 
     the rapid acquisition and deployment of items that a 
     commander of a unified combatant command urgently requires.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would give the 
     Secretary greater flexibility in the development of the 
     required procedures.
     Quick-reaction special projects acquisition team (sec. 807)
       The House bill contained a provision (sec. 809) that would 
     require the Secretary of Defense to establish a special 
     projects acquisition team to examine and address issues 
     affecting expeditious procurements.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would: (1) 
     require that the quick reaction special projects acquisition 
     team be established by the Under Secretary of Defense for 
     Acquisition, Technology and Logistics; and (2) broaden the 
     categories of issues to be addressed by the team.

Subtitle B--Amendments to General Contracting Authorities, Procedures, 
                            and Limitations

     Limitation period for task and delivery order contracts (sec. 
         811)
       The House bill contained a provision (sec. 803) that would 
     amend sections 2304a and 2304b of title 10, United States 
     Code, to limit the period of time for which task and delivery 
     order contracts may be awarded to five years--the same time 
     limitation that is applicable to other multiyear contracts.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would amend 
     section 2306c of title 10, United States Code, to provide 
     that multiyear task and delivery order contracts are subject 
     to the same requirements as other multiyear contracts, 
     including the five-year time limitation on such contracts. 
     The amendment would also establish a preference for the award 
     of a multiyear task and delivery order contract to more than 
     one source to ensure competition for task orders and delivery 
     orders throughout the period of the contract. Finally, the 
     amendment would require the Comptroller General to review the 
     contract term of existing single-award and multiple-award 
     task and delivery order contracts (including any options or 
     extensions available under such contracts).
     One-year extension of program applying simplified procedures 
         to certain commercial items; report (sec. 812)
       The House bill contained a provision (sec. 804) that would 
     extend for one year the pilot program established in section 
     4202 of the Clinger-Cohen Act of 1996 (divisions D and E of 
     Public Law 104-106). The provision would also require the 
     Secretary of Defense to report to Congress on the pilot 
     program.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would: (1) 
     require a report by the Comptroller General instead of the 
     Secretary of Defense; and (2) clarify the issues to be 
     addressed in the report.
     Extension and improvement of personnel demonstration policies 
         and procedures applicable to the civilian acquisition 
         workforce (sec. 813)
       The House bill contained a provision (sec. 806) that would 
     require the Secretary of Defense to develop a plan for 
     improving the policies and procedures applicable to the 
     civilian acquisition workforce, based on the results of the 
     demonstration project authorized by section 4308 of the 
     Clinger-Cohen Act of 1996 (division D of Public Law 104-106; 
     10 U.S.C. 1706 note).
       The Senate amendment contained a provision (sec. 821) that 
     would extend the demonstration project.
       The Senate recedes with an amendment that would extend the 
     demonstration project.
     Past performance given significant weight in renewal of 
         procurement technical assistance cooperative agreements 
         (sec. 814)
       The House bill contained a provision (sec. 812) that would 
     require the Secretary of Defense, to the maximum extent 
     practicable, to renew without reduction in funding any 
     procurement technical assistance cooperative agreement with 
     an eligible entity that has performed successfully under an 
     existing agreement.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would require the 
     Secretary, in conducting a competition for the award of 
     procurement technical assistance cooperative

[[Page H8464]]

     agreements, to give significant weight to successful past 
     performance of eligible entities under existing agreements.
     Increased maximum amount of assistance for tribal 
         organizations or economic enterprises carrying out 
         procurement technical assistance programs in two or more 
         service areas (sec. 815)
       The Senate amendment contained a provision (sec. 828) that 
     would increase from $300,000 to $600,000 the maximum amount 
     of assistance for tribal organizations or economic 
     enterprises carrying out procurement technical assistance 
     programs in two or more service areas.
       The House bill contained no similar provision.
       The House recedes.
     Extension of contract goal for small disadvantaged businesses 
         and certain institutions of higher education (sec. 816)
       The Senate amendment contained a provision (sec. 823) that 
     would extend for three years the contract goal for small 
     disadvantaged businesses and certain institutions of higher 
     education.
       The House bill contained no similar provision.
       The House recedes.
     Grants of exceptions to cost or pricing data certification 
         requirements and waivers of cost accounting standards 
         (sec. 817)
       The Senate amendment contained a provision (sec. 812) that 
     would require the Department of Defense (DOD) to issue 
     guidance on grants of exceptions to cost or pricing data 
     certification requirements and waivers of cost accounting 
     standards. The provision would also require the Secretary of 
     Defense to report to the congressional defense committees on 
     certain exceptions to the Truth in Negotiations Act and 
     waivers of the cost accounting standards.
       The House bill contained no similar provision.
       The House recedes with an amendment that would modify the 
     guidance to be issued on waivers and exceptions to ensure 
     that DOD has the flexibility it needs to grant waivers and 
     extensions when: (1) the property or services could not 
     reasonably be obtained from the contractor or subcontractor 
     without the grant of the exception or waiver; (2) the price 
     can be determined to be a fair and reasonable price; and (3) 
     there are demonstrated benefits from granting the waiver or 
     exception. The conference amendment would also streamline the 
     reporting requirements in the provision by requiring an 
     annual report instead of a semiannual report and eliminating 
     the requirement in the Senate bill for advance notice to 
     Congress of certain waivers and exceptions.
     Timing of certification in connection with waiver of 
         survivability and lethality testing requirements (sec. 
         818)
       The Senate amendment contained a provision (sec. 806) that 
     would modify the authority of the Secretary of Defense to 
     waive the requirement for survivability and lethality tests 
     for major weapon programs in order to correspond with the 
     revised acquisition milestones in the Department's new 
     acquisition regulations.
       The House bill contained no similar provision.
       The House recedes.
     Contracting with Federal Prison Industries (sec. 819)
       The House bill contained a provision (sec. 811) that would: 
     (1) require the Secretary of Defense to use competitive 
     procedures to acquire products or services from Federal 
     Prison Industries (FPI); (2) clarify that a Department of 
     Defense (DOD) contractor may not be required to use FPI as a 
     subcontractor or supplier of products or services; and (3) 
     prohibit the Department from entering any contract with FPI 
     under which an inmate worker would have access to classified 
     or sensitive information.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would modify the 
     provision to ensure that it is consistent with the approach 
     taken by section 811 of the National Defense Authorization 
     Act for Fiscal Year 2002 (Public Law 107-107), while 
     reinforcing the requirement of that provision that DOD 
     contracting officials shall have sole discretion to determine 
     whether FPI products and services meet the Department's needs 
     in terms of price, quality, and time of delivery.
       If DOD officials determine that an FPI product or service 
     is not comparable to the best products or services available 
     from the private sector, the Department is directed to 
     purchase the product on a competitive basis. The requirement 
     for competition under this section may be met by the award of 
     a new contract on a competitive basis or through a purchase 
     under an existing multiple award contract pursuant to 
     competition requirements included in section 803 of the 
     National Defense Authorization Act for Fiscal Year 2002 and 
     other applicable provisions of law and regulation. In either 
     case, the Department must consider a timely offer from FPI in 
     accordance with the specifications and evaluation factors 
     specified in the solicitation or other request for offers.
     Revisions to multiyear contracting authority (sec. 820)
       The House bill contained a provision (sec. 141) that would 
     amend section 2306b of title 10, United States Code, to 
     clarify that: (1) funds available for a multiyear contract 
     may be used only for the procurement of complete and usable 
     end items; and (2) funds available for advance procurement 
     may be used only for the procurement of long-lead items 
     necessary to meet a planned delivery schedule for complete 
     major end items.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would permit the 
     purchase of economic order quantities of long-lead items 
     where authorized by law. The conference amendment would also 
     clarify that nothing in the section authorizes the use of 
     funds available under contracts awarded prior to the 
     effective date of the provision for any purpose other than 
     the purpose for which such funds were authorized and 
     appropriated. Consequently, although the section would not 
     apply to contracts awarded before the date of enactment, 
     funds available under such contracts could not be used in a 
     manner that would be inconsistent with the requirements of 
     the section unless such funds were authorized and 
     appropriated for such purposes.

       Subtitle C--Acquisition-Related Reports and Other Matters

     Evaluation of training, knowledge, and resources regarding 
         negotiation of intellectual property arrangements (sec. 
         821)
       The House bill contained a provision (sec. 802) that would 
     require the Secretary of Defense to evaluate the training, 
     knowledge, and resources needed by the Department to 
     effectively negotiate intellectual property rights.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Independent technology readiness assessments (sec. 822)
       The Senate amendment contained a provision (sec. 805) that 
     would require the Department of Defense to explain any 
     decision not to conduct an independent technology readiness 
     assessment for a critical technology on a major defense 
     acquisition program.
       The House bill contained no similar provision.
       The House recedes.
     Extension and amendment of requirement for annual report on 
         defense commercial pricing management improvement (sec. 
         823)
       The Senate amendment contained a provision (sec. 813) that 
     would extend the requirement that the Secretary of Defense 
     submit to the congressional defense committees an annual 
     report on price trend analyses for commercial items purchased 
     by the Defense Logistics Agency (DLA) and the military 
     departments.
       The House bill contained no similar provision.
       The House bill recedes with an amendment that would clarify 
     the requirement for the Secretary of each military department 
     and the Director of the DLA to conduct price trend analyses 
     to identify and address any unreasonable escalation in prices 
     paid for items procured by that military department or 
     agency.
     Assessment of purchases of products and services through 
         contracts with other Federal departments and agencies 
         (sec. 824)
       The Senate amendment contained a provision (sec. 815) that 
     would require the Secretary of Defense to carry out an 
     assessment to determine the amount paid by the Department of 
     Defense as fees for the acquisition of property and services 
     under contracts entered by other federal departments and 
     agencies and whether these amounts could be put to better 
     use.
       The House bill contained no similar provision.
       The House recedes with an amendment that would require the 
     Department to consider both the costs and the benefits of 
     using contracts entered by other federal departments and 
     agencies.
     Repeal of certain requirements and Comptroller General 
         reviews of the requirements (sec. 825)
       The Senate amendment contained a provision (sec. 825) that 
     would repeal statutory requirements for review by the 
     Comptroller General of programs conducted pursuant to certain 
     legislative authority that has never been utilized.
       The House bill contained no similar provision.
       The House recedes with an amendment that would repeal the 
     authority to conduct programs pursuant to these sections. The 
     conferees have determined that the legislative authority 
     provided by sections 912, 5312, and 5401 of the National 
     Defense Authorization Act for Fiscal Year 1996 (Public Law 
     104-106) has never been used and is not likely to be needed. 
     For this reason, the conference amendment would repeal all 
     three provisions.
     Multiyear procurement authority for purchase of dinitrogen 
         tetroxide, hydrazine, and hydrazine-related products 
         (sec. 826)
       The Senate amendment contained a provision (sec. 826) that 
     would authorize the Secretary of Defense to enter into 
     contracts for periods of up to 10 years for dinitrogen 
     tetroxide, hydrazine, and hydrazine-related products.
       The House bill contained no similar provision.
       The House recedes.
     Multiyear procurement authority for environmental services 
         for military installations (sec. 827)
       The Senate amendment contained a provision (sec. 827) that 
     would authorize the use of

[[Page H8465]]

     multiyear contracts for the acquisition of environmental 
     remediation services.
       The House bill contained no similar provision.
       The House recedes.
     Report on effects of Army Contracting Agency (sec. 828)
       The Senate amendment contained a provision (sec. 830) that 
     would require the Secretary of the Army to report to Congress 
     on the effects of the establishment of an Army Contracting 
     Agency on small business participation in Army procurements.
       The House bill contained no similar provision.
       The House recedes.
       The conferees note that the Army expects to eliminate 
     approximately 200 unneeded positions as a result of this 
     reorganization. The conferees direct the Secretary to review 
     the Army's requirements for acquisition personnel--including 
     shortcomings identified in Department of Defense Inspector 
     General reports D-2000-088 (February 29, 2000) and D-2000-100 
     (March 10, 2000)--and to determine whether some of the 
     resources saved as a result of the reorganization should be 
     reinvested to shape a more productive acquisition workforce 
     for the future. The results of the Secretary's review should 
     be forwarded to the congressional defense committees with the 
     report required by this section.
     Authorization to take actions to correct the industrial 
         resource shortfall for radiation-hardened electronics 
         (sec. 829)
       The conference agreement includes a provision that would 
     authorize the Department of Defense to take actions to 
     correct the industrial resource shortfall for radiation-
     hardened electronics, notwithstanding the limitation in 
     section 303(a)(6)(C) of the Defense Production Act of 1950 
     (50 U.S.C. App. 2093(a)(6)(C)), as long as such actions do 
     not cause the aggregate outstanding amount of all such 
     actions to exceed $106.0 million.

                   Legislative Provisions Not Adopted

     Authority for nonprofit organizations to self-certify 
         eligibility for treatment as qualified organizations 
         employing severely disabled under Mentor-Protege Program
       The Senate amendment contained a provision (sec. 829) that 
     would permit nonprofit organizations employing the severely 
     disabled to self-certify their eligibility to participate in 
     the Department of Defense Mentor-Protege Program.
       The House bill contained no similar provision.
       The Senate recedes.
     Authority to make inflation adjustments to simplified 
         acquisition threshold
       The House bill contained a provision (sec. 805) that would 
     authorize the Administrator of the Office of Federal 
     Procurement Policy to adjust the simplified acquisition 
     threshold every five years to account for inflation.
       The Senate amendment contained no similar provision.
       The House recedes.
     Mentor-Protege Program eligibility for HUBZone small business 
         concerns and small business concerns owned and controlled 
         by service-disabled veterans
       The Senate amendment contained a provision (sec. 824) that 
     would add HUBZone small business concerns and small business 
     concerns owned and controlled by service-disabled veterans to 
     the list of organizations eligible to participate in the 
     Mentor-Protege Program of the Department of Defense.
       The House bill contained no similar provision.
       The Senate recedes.
     Modification of scope of ball and roller bearings covered for 
         purposes of procurement limitation
       The House bill contained a provision (sec. 807) that would 
     expand a prohibition on the purchase of ball or roller 
     bearings from sources outside the United States to cover 
     unconventional or hybrid ball and roller bearings, cam 
     follower bearings, ball screws, and other derivatives of ball 
     and roller bearings.
       The Senate amendment contained no similar provision.
       The House recedes.
     Moratorium on reduction of the defense acquisition and 
         support workforce
       The Senate amendment contained a provision (sec. 822) that 
     would impose a moratorium on reductions in the defense 
     acquisition and support workforce during fiscal years 2003, 
     2004 and 2005.
       The House bill contained no similar provision.
       The Senate recedes.
     Pilot program for transition to follow-on contracts for 
         prototype projects
       The Senate amendment contained a provision (sec. 816) that 
     would establish a pilot program for the transition of 
     prototype projects to follow-on production contracts.
       The House bill contained no similar provision.
       The Senate recedes.
     Plan for acquisition management professional exchange pilot 
         program
       The House bill contained a provision (sec. 801) that would 
     require the Secretary of Defense to develop a plan for a 
     pilot program for the exchange of acquisition management 
     personnel between the Department of Defense and private 
     sector organizations.
       The Senate amendment contained no similar provision.
       The House recedes.
     Report on development of anticyberterrorism technology
       The House bill contained a provision (sec. 810) that would 
     require the Secretary of Defense to submit a report to 
     Congress on anticyberterrorism technology.
       The Senate amendment contained no similar provision.
       The House recedes.
       The material covered by the House provision would be 
     addressed in a report on homeland security required elsewhere 
     in the bill.
     Waiver authority for domestic source or content requirements
       The Senate amendment contained a provision (sec. 817) that 
     would authorize the Secretary of Defense to waive the 
     application of statutory domestic source requirements and 
     domestic content requirements in certain circumstances.
       The House bill contained no similar provision.
       The Senate recedes.

      Title IX--Department of Defense Organization and Management

                     Legislative Provisions Adopted

   Subtitle A--Duties and Functions of Department of Defense Officers

     Under Secretary of Defense for Intelligence (sec. 901)
       The Senate amendment contained a provision (sec. 907) that 
     would amend Chapter 4 of title 10, United States Code, to 
     establish the position of Under Secretary of Defense for 
     Intelligence.
       The House bill contained no similar provision.
       The House recedes with an amendment that would make clear 
     that the establishment of this new position does not 
     supercede or modify the authorities of the Secretary of 
     Defense and the Director of Central Intelligence as 
     established by the National Security Act of 1947. It would 
     also require the Secretary of Defense to submit a report to 
     Congress within 90 days after enactment on the establishment 
     of the position of Under Secretary of Defense for 
     Intelligence, including mission, organizational structure, 
     and relationships.
     Reorganization of Office of Secretary of Defense for 
         administration of duties relating to homeland defense and 
         combating terrorism (sec. 902)
       The conferees agree to include a provision that would amend 
     Chapter 4 of title 10, United States Code, to establish the 
     position of Assistant Secretary of Defense for Homeland 
     Defense; transfer the responsibility for the overall 
     direction and supervision for policy, program planning and 
     execution, and allocation of resources for the activities of 
     the Department of Defense for combating terrorism to the 
     Under Secretary of Defense for Policy; and repeal the 
     contingent reduction in the number of assistant secretaries 
     of defense.

                      Subtitle B--Space Activities

     Oversight of acquisition for defense space programs (sec. 
         911)
       The Senate amendment contained a provision (sec. 133) that 
     would require the Office of the Secretary of Defense to 
     maintain oversight of acquisition for defense space programs. 
     The provision would also require the Secretary of Defense to 
     submit a detailed plan on how such oversight will be 
     provided.
       The House bill contained no similar provision.
       The House recedes with a clarifying amendment.
       The conferees understand that the Department of Defense is 
     planning to change the way defense space programs are 
     overseen in an effort to reduce the decision cycle time for 
     these programs. The conferees believe that any changes to the 
     oversight process should not detract from the ability of the 
     Office of the Secretary of Defense and the Joint Requirements 
     Oversight Council to provide meaningful oversight of space 
     programs. The conferees also believe that because space 
     programs are inherently joint programs, each of the military 
     services should have a strong voice in space program 
     acquisition decisions.
       The conferees note that the conference report accompanying 
     the National Defense Authorization Act for Fiscal Year 2002 
     (Public Law 107-107) discussed the ``virtual major force 
     program (MFP)'' for space activities established by the 
     Secretary of Defense and expressed the conferees' 
     expectations that the virtual space MFP would be submitted 
     along with the fiscal year 2003 budget. However, the virtual 
     space MFP still has not been submitted.
       The conferees note that the virtual space MFP is an 
     important tool for providing better visibility and insight 
     into space programs and are disappointed that the Secretary 
     of Defense has not yet submitted it to Congress. The 
     conferees therefore direct the Secretary of Defense to submit 
     the current version of the virtual MFP for space activities 
     to the congressional defense and intelligence committees no 
     later than January 15, 2003, and furthermore direct the 
     Secretary of Defense to submit the virtual MFP for space 
     activities along with the fiscal year 2004 budget request and 
     all future budget requests.
     Report regarding assured access to space for the United 
         States (sec. 912)
       The Senate amendment contained a provision (sec. 136) that 
     would set forth the sense

[[Page H8466]]

     of Congress that the Under Secretary of the Air Force should 
     evaluate all options for sustaining the United States space 
     launch industrial base, develop an integrated, adequately 
     funded, long-range plan for access to space, and submit a 
     report on that plan as soon as practicable. The provision 
     also included a series of findings.
       The House bill contained no similar provision.
       The House recedes with an amendment that would delete the 
     findings portion of the provision and require the Secretary 
     of Defense to evaluate options for sustaining the space 
     launch industrial base; to develop an integrated, adequately 
     funded, long-range plan for assuring access to space; and to 
     submit a report to Congress on this plan.
       The conferees agree that providing assured reliable access 
     to space is a vital national security interest of the United 
     States. One of the critical elements of assured access to 
     space is the Air Force Evolved Expendable Launch Vehicle 
     (EELV) program. This program will be a new approach for the 
     Air Force and the Department of Defense (DOD). Instead of 
     buying individual rockets to launch space payloads, the Air 
     Force and DOD will now buy launch services. The contractors 
     supplying the launch services will also supply launches to 
     commercial customers. The EELV program is intended to provide 
     reliable, assured, launch services for a variety of payload 
     types and weights, at reduced cost.
       Since the beginning of the EELV program, significant 
     contraction in the commercial space launch market has eroded 
     the overall viability of the United States space launch 
     industrial base and could hamper the ability of DOD to 
     provide assured access to space in the future. 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. The 
     Under Secretary of the Air Force, as acquisition executive 
     for DOD space programs, has been authorized to develop a 
     strategy to address United States space launch and other 
     requirements to support assured access to space. This 
     strategy should serve as the basis of the integrated, long- 
     range, adequately funded plan for assured access to space 
     that the Secretary of Defense is required to submit to 
     Congress by March 1, 2003.

                          Subtitle C--Reports

     Report on establishment of United States Northern Command 
         (sec. 921)
       The House bill contained a provision (sec. 902) requiring 
     the Secretary of Defense to submit to the congressional 
     defense committees a report on an implementation plan for the 
     United States Northern Command that addresses organizational, 
     legal, diplomatic, budgetary, and personnel matters 
     associated with the establishment of that command.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would change the 
     date by which the report must be submitted and clarifies the 
     items to be addressed by the report.
     Time for submittal of report on Quadrennial Defense Review 
         (sec. 922)
       The House bill contained a provision (sec. 904) that would 
     amend section 118 of title 10, United States Code, to change 
     the submission date of the report on each quadrennial defense 
     review to the Committees on Armed Services of the Senate and 
     House of Representatives to the second year after a year 
     divisible by four.
       The Senate amendment contained a similar provision (sec. 
     901) that would change the submission date of the report from 
     September 30 of the year in which the review is conducted to 
     no later than the date in the following year on which the 
     President submits the budget for the next fiscal year to 
     Congress.
       The House recedes.
     National defense mission of Coast Guard to be included in 
         future Quadrennial Defense Reviews (sec. 923)
       The House bill contained a provision (sec. 903) that would 
     amend section 118(d) of title 10, United States Code, to 
     require the Secretary of Defense to include the defense 
     mission of the U.S. Coast Guard when conducting future 
     Quadrennial Defense Reviews.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Report on establishment of a Joint National Training Complex 
         and joint opposing forces (sec. 924)
       The House bill contained a provision (sec. 1015) that would 
     require the Secretary of Defense to submit a report to the 
     Committees on Armed Services of the Senate and House of 
     Representatives that outlines a plan to develop and operate a 
     Joint National Training Complex capable of supporting field 
     exercises and experimentation at the operational level of war 
     across a broad spectrum of adversary capabilities.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would have the 
     commander of the United States Joint Forces Command outline a 
     plan that would provide for the development and 
     implementation of a joint national training concept together 
     with the establishment of a joint training complex for 
     supporting the implementation of that concept. The Secretary 
     of Defense would submit the report, together with any 
     comments he considers appropriate and any comments that 
     the Chairman of the Joint Chiefs of Staff considers 
     appropriate.

                       Subtitle D--Other Matters

     Authority to accept gifts for National Defense University 
         (sec. 931)
       The House bill contained a provision (sec. 907) that would 
     amend section 2605 of title 10, United States Code, to 
     authorize the Secretary of Defense to accept gifts for the 
     National Defense University in a manner similar to the 
     authority to accept gifts for defense dependents' schools.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would add a new 
     section to Chapter 155 of title 10, United States Code, for 
     this purpose; would specifically authorize the acceptance of 
     gifts from an international organization and a foreign gift; 
     and would make other clarifying amendments.
     Western Hemisphere Institute for Security Cooperation (sec. 
         932)
       The Senate amendment contained a provision (sec. 905) that 
     would amend section 2166 of title 10, United States Code, to 
     authorize the Secretary of Defense to accept foreign gifts or 
     donations of funds, materials, property, or services in order 
     to defray the costs of, or enhance the operation of, the 
     Western Hemisphere Institute for Security Cooperation. It 
     would also provide that the Secretary's annual report to 
     Congress on the Institute shall include a copy of the latest 
     report of the Board of Visitors, together with any comment of 
     the Secretary on the Board's report.
       The House bill contained no similar provision.
       The House recedes.
     Conforming amendment to reflect disestablishment of 
         Department of Defense Consequence Management Program 
         Information Office (sec. 933)
       The House bill contained a provision (sec. 906) that would 
     amend section 12310 (c)(3) of title 10, United States Code, 
     to strike a reference to the Department of Defense 
     Consequence Management Program Integration Office (COMPIO). 
     The provision reflects the fact that the Deputy Secretary of 
     Defense disestablished COMPIO on February 14, 2001, directing 
     that its functions be integrated into existing Department of 
     Defense organizations and processes to ensure greater 
     effectiveness and oversight of programs.
       The Senate amendment included an identical provision (sec. 
     1042) under a different title.
       The House recedes with an amendment modifying the title.
     Increase in number of Deputy Commandants of the Marine Corps 
         (sec. 934)
       The House bill contained a provision (sec. 501) that would 
     increase the authorized number of deputy commandants at 
     Headquarters, United States Marine Corps, from five to six.
       The Senate amendment contained an identical provision (sec. 
     902).
       The conference agreement includes this provision.

                   Legislative Provisions Not Adopted

     Change in title of Secretary of the Navy to the Secretary of 
         the Navy and the Marine Corps
       The House bill contained a provision (sec. 901) that would 
     redesignate the title of the Secretary of the Navy to the 
     Secretary of the Navy and the Marine Corps.
       The Senate amendment contained no similar provision.
       The House recedes.
       The conferees consider the proposal to change the title of 
     the Secretary of the Navy to the Secretary of the Navy and 
     Marine Corps a serious initiative deserving more study and 
     deliberation, including hearings. While some 
     misunderstandings may stem from the traditional reliance on 
     the singular term ``Navy'' to encompass all the sea services, 
     the conferees consider it essential to consider additional 
     factors and considerations, including historical antecedents. 
     The conferees agree to provide maximum opportunities during 
     the 108th Congress for interested individuals and groups to 
     provide information and recommendations regarding this 
     important issue.
     Report on effect of operations other than war on combat 
         readiness of the Armed Forces
       The House bill contained a provision (sec. 905) requiring 
     the Secretary of Defense to submit a report to the Committees 
     on Armed Services of the Senate and House of Representatives 
     on the effect of operations other than war on the combat 
     readiness of the Armed Forces.
       The Senate amendment contained no similar provision.
       The House recedes.
       The conferees understand that the Department of Defense 
     (DOD) has initiated improvements to readiness reporting in 
     the new Defense Readiness Reporting System (DRRS). The 
     conferees expect that this system will provide greater 
     visibility into the impact of all types of operations, 
     including operations other than war, on the ability of U.S. 
     forces to conduct their assigned missions. The conferees 
     direct DOD, in implementing DRRS, to ensure that it captures 
     readiness effects not only for forces that are directly 
     engaged in operations, but also for those forces and units 
     that are preparing to participate in or are re- training 
     after recent deployments.

[[Page H8467]]

       The conferees also understand that DOD has commissioned, 
     and continues to commission, studies by various groups and 
     organizations on the broader effects of operational 
     deployments, including their impact on recruiting, retention, 
     and performance. Given the importance of these issues, the 
     conferees expect that these reports will also be provided to 
     the congressional defense committees.

                      Title X--General Provisions

     Deferral of expenditures on financial management and feeder 
         systems
       Section 1004 of the conference agreement accompanying the 
     National Defense Authorization Act for Fiscal Year 2003 would 
     require the Secretary of Defense to develop a financial 
     management enterprise architecture and a transition plan for 
     implementing that architecture. Under this provision, 
     expenditures for financial management system improvements in 
     excess of $1.0 million would be permitted only if the Under 
     Secretary of Defense (Comptroller) determines that such 
     expenditures are necessary to meet critical requirements or 
     prevent significant adverse effects on projects needed to 
     achieve essential capabilities.
       Titles I, II and III of the conference report include 
     reductions totaling $400.0 million, in proportion to proposed 
     spending on information technology development modernization 
     for functional area applications in each account. The 
     specific reductions reflected in these titles are as follows:
       Other Procurement, Army--$53.2 million;
       Other Procurement, Navy--$20.6 million;
       Other Procurement, Air Force--$12.0 million;
       Procurement, Marine Corps--$3.4 million;
       Other Procurement, Defense-wide--$3.5 million;
       Research and Development, Army--$17.7 million;
       Research and Development, Navy--$25.6 million;
       Research and Development, Air Force--$27.2 million;
       Research and Development, Defense-wide--36.6 million;
       Defense Health Programs--$32.1 million;
       Defense Working Capital Fund Operations--$148.6 million;
       Operation and Maintenance, Defense-wide--$19.5 million.
       The conferees expect the Department to achieve these 
     reductions by implementing the requirements of section 1004 
     and restricting the development of Department of Defense 
     business systems until the Department has completed its 
     proposed architecture and transition plan and is in a 
     position to ensure that business system expenditures will be 
     consistent with that architecture and plan.
       The conferees note that section 1507 of the conference 
     report would authorize the Secretary of Defense to transfer 
     funds out of the contingency fund authorized by title XV to 
     offset the reductions described above, in the event that the 
     Secretary determines that the required savings are not 
     achievable.
     Drug interdiction and counterdrug activities
       The budget request included $998.7 million for drug 
     interdiction and counterdrug activities of the Department of 
     Defense, $848.9 million in the central transfer account and 
     $149.8 million in the operating budgets of the military 
     services for authorized counterdrug operations.
       The conferees agree to the following fiscal year 2003 
     budget for the Department's counterdrug activities:

 Drug Interdiction and Counterdrug Activities, Central Transfer Account

         [In thousands of dollars; may not add due to rounding]

Fiscal Year 2003 Counterdrug Request.............................$848.9
Increases:
    National Guard Support.........................................23.5
    National Guard C-26 Aircraft....................................2.1
    Mexico Information Analysis Center..............................1.5
    Southwest Border Fence..........................................6.7
Decreases:
    1404 DEA Support................................................1.3
    4208 Hemispheric Radar System...................................5.0
    3348 TAGOS.....................................................12.0
    1401 NIMA CD Support..............................................5
    1102 ADNET........................................................5
    2440 CMS........................................................2.0
    9203 Mexico Training............................................1.5
Fiscal Year 2003 Counterdrug Funding..............................859.9
     Improved management of Department of Defense contracting for 
         services
       Section 802 of the National Defense Authorization Act for 
     Fiscal Year 2002 (Public Law 107-107) established goals for 
     improved management of the Department's $50.0 billion of 
     services contracts. The conference report would repeal these 
     statutory goals and establish new goals for the increased use 
     of performance-based services contracts and competitive 
     purchases of services under multiple award contracts.
       Titles I, II and III of the conference report accompanying 
     the National Defense Authorization Act for Fiscal Year 2003 
     include reductions totaling $600.0 million, to be achieved 
     through the implementation of the new statutory goals and 
     other improvements in the management of services contracts. 
     The specific reductions reflected in these titles are as 
     follows:
       Aircraft Procurement, Army--$3.7 million;
       Missile Procurement, Army--$2.9 million;
       Procurement of Wheeled and Tactical Vehicles, Army--$4.0 
     million;
       Procurement of Ammunition, Army--$2.0 million;
       Other Procurement, Army--$9.2 million;
       Aircraft Procurement, Navy--$5.7 million;
       Weapons Procurement, Navy--$2.3 million;
       Shipbuilding and Conversion, Navy--$5.7 million;
       Procurement of Ammunition, Navy & Marine Corps--$0.7 
     million;
       Other Procurement, Navy--$3.0 million;
       Procurement, Marine Corps--$0.9 million;
       Other Procurement, Air Force--$1.5 million;
       Procurement, Defense-Wide--$1.1 million;
       Research and Development, Army--$9.7 million;
       Research and Development, Navy--$4.9 million;
       Research and Development, Air Force--$31.9 million;
       Research and Development, Defense-wide--$17.8 million;
       Operation and Maintenance, Army--$135.9 million;
       Operation and Maintenance, Navy--$107.5 million;
       Operation and Maintenance, Air Force--$149.2 million;
       Operation and Maintenance, Marine Corps--$11.5 million;
       Operation and Maintenance, Defense-wide--$90.0 million.
       The conferees expect the Department to distribute these 
     reductions across budget activities and programs within the 
     relevant appropriations accounts, based on the dollar value 
     of contracts within those budget activities and programs to 
     which improvements may be appropriately applied.
       The conferees note that section 1507 of the conference 
     report would authorize the Secretary of Defense to transfer 
     funds out of the contingency fund authorized by title XV to 
     offset the reductions described above, in the event that the 
     Secretary determines that the required savings are not 
     achievable.

                     Legislative Provisions Adopted

                     Subtitle A--Financial Matters

     Transfer authority (sec. 1001)
       The House bill contained a provision (sec. 1001) that would 
     provide $2.0 billion in transfer authority among accounts in 
     Division A of this Act for fiscal year 2003.
       The Senate amendment contained a similar provision (sec. 
     1001) that would provide $2.5 billion in transfer authority.
       The Senate recedes with an amendment that would provide 
     $2.0 billion in transfer authority for fiscal year 2003 and 
     would increase the transfer authority for fiscal year 2002 
     from $2.0 billion to $2.5 billion.
     Authorization of supplemental appropriations for fiscal year 
         2002 (sec. 1002)
       The House bill contained a provision (sec. 1002) that would 
     authorize supplemental appropriations for the Department of 
     Defense and the national security activities of the 
     Department of Energy for fiscal year 2002. The House bill 
     would also require prior notification before funds were 
     transferred from the Defense Emergency Response Fund (DERF) 
     or other transfer accounts.
       The Senate amendment contained a similar provision (sec. 
     1004).
       The Senate recedes with an amendment that would authorize 
     supplemental appropriations for the Department of Defense and 
     the national security activities of the Department of Energy 
     for fiscal year 2002 contained in the 2002 Supplemental 
     Appropriations Act for Further Recovery From and Response To 
     Terrorist Attacks on the United States (Public Law 107-206) 
     and would require a report on all Department of Defense 
     transfers from the DERF or other transfer accounts during 
     fiscal year 2002.
     United States contribution to NATO common-funded budgets in 
         fiscal year 2003 (sec. 1003)
       The Senate amendment contained a provision (section 1005) 
     that would authorize the U.S. contribution to NATO common-
     funded budgets for fiscal year 2003, including the use of 
     unexpended balances from prior years. The resolution of 
     ratification for the Protocol to the North Atlantic Treaty of 
     1949 on the Accession of Poland, Hungary and the Czech 
     Republic contained a provision (section 3(2)(c)(ii)) 
     requiring a specific authorization for U.S. payments to the 
     common-funded budgets of NATO for each fiscal year, beginning 
     in fiscal year 1999, that payments exceed the fiscal year 
     1998 total.
       The House bill contained no similar provision.
       The House recedes.
     Development and implementation of financial management 
         enterprise architecture (sec. 1004)
       The House bill contained a provision (sec. 1007) that 
     would: (1) require the Secretary of Defense to submit a 
     report to the congressional defense committees on the goals 
     and objectives of the financial management modernization plan 
     of the Department of Defense (DOD); and (2) require the 
     approval of the DOD Comptroller prior to any new contract for 
     the acquisition or upgrade of a financial management or 
     feeder system.
       The Senate amendment contained a provision (sec. 1006) that 
     would: (1) require the Secretary to develop a comprehensive 
     financial management enterprise architecture for all DOD 
     budgetary, accounting, finance and data systems; and (2) 
     require the approval of the Financial Management 
     Modernization Executive Committee for any significant 
     expenditures on financial system improvements that would be 
     inconsistent with the new architecture.
       The House recedes with an amendment that would: (1) extend 
     the deadline for the

[[Page H8468]]

     development of the new enterprise architecture; (2) require 
     the DOD Comptroller, rather than the Financial Management 
     Modernization Executive Committee, to approve significant new 
     expenditures; (3) repeal outdated reporting requirements and 
     substitute a streamlined annual report on compliance with the 
     new requirements; and (4) harmonize the language of the 
     provision with existing guidance issued by DOD and the Office 
     of Management and Budget.
     Accountable officials in the Department of Defense (sec. 
         1005)
       The House bill contained a provision (sec. 1004) that would 
     authorize the Secretary of Defense to designate certain 
     Department of Defense employees and members of the Armed 
     Forces as departmental accountable officials who could be 
     held pecuniarily liable for illegal, improper, or incorrect 
     payments when the official who certified payment relied on 
     information provided through fault or negligence of the 
     departmental accountable official.
       The Senate amendment contained a similar provision (sec. 
     1007).
       The Senate recedes with a clarifying amendment.
     Uniform standards throughout Department of Defense for 
         exposure of personnel to pecuniary liability for loss of 
         Government property (sec. 1006)
       The Senate amendment contained a provision (sec. 1008) that 
     would authorize any officer of the Armed Forces or any 
     civilian employee of the Department of Defense designated by 
     regulation to act on reports of survey and vouchers 
     pertaining to the loss, spoilage, unserviceability, 
     unsuitability, destruction of, or damage to, property of the 
     United States under the control of the Department of Defense.
       The House bill contained a similar provision (sec. 1003).
       The House recedes with a clarifying amendment.
     Improvements in purchase card management (sec. 1007)
       The House bill contained a provision (sec. 1005) that would 
     require the Secretary of Defense to prescribe regulations 
     including safeguards and internal controls for the use of 
     purchase cards by Department of Defense personnel.
       The Senate amendment contained a similar provision (sec. 
     814).
       The Senate recedes with an amendment that would provide 
     additional detail on required audits and purchase card 
     policies. The amendment would also clarify that required 
     training and reviews are to be conducted on a periodic basis, 
     rather than an annual basis. The conferees direct the 
     Department to conduct annual training and reviews in calendar 
     years 2003 and 2004 but understand that less frequent 
     training and reviews may be adequate to protect the 
     Department's interests in subsequent years.
       The conferees direct the Comptroller General to review the 
     actions that have been taken within the Department of Defense 
     to comply with the requirements of this section and submit a 
     report on those actions to the congressional defense 
     committees no later than one year after the date of enactment 
     of this Act.
     Improvements in travel card management (sec. 1008)
       The Senate amendment contained a provision (sec. 1009) that 
     would authorize direct payment to the issuer of a Defense 
     travel card of official travel or transportation expenses 
     charged on the Defense travel card by a Department of Defense 
     employee or member.
       The House bill contained no similar provision.
       The House recedes with an amendment that would authorize 
     direct payment to the issuer of a Defense travel card of 
     official travel or transportation expenses charged on the 
     Defense travel card by a Department of Defense employee or 
     member and by former employees of the Department of Defense 
     and retired members of the Armed Forces who are receiving 
     retired pay.
     Clearance of certain transactions recorded in Treasury 
         suspense accounts and resolution of certain check 
         issuance discrepancies (sec. 1009)
       The Senate amendment contained a provision (sec. 1010) that 
     would authorize the Department of Defense to cancel 
     longstanding debit and credit transactions that cannot be 
     cleared from the Department's books because they have been 
     misrecorded to the wrong appropriation.
       The House bill contained no similar provision.
       The House recedes with a technical amendment.
       The conferees direct the Comptroller General to review the 
     Department's use of the authority provided by this section 
     and report any findings and recommendations he may have to 
     the congressional defense committees no later than six months 
     after the date on which such authority expires.
     Authorization of funds for ballistic missile defense programs 
         or combating terrorism programs of the Department of 
         Defense (sec. 1010)
       The Senate amendment contained a provision (sec. 1011) that 
     would authorize $814.3 million, the amount by which the 
     Senate bill reduced funding for ballistic missile defense 
     programs, for whichever of the following purposes the 
     President determines to be in the national security interests 
     of the United States:
       (1) Research, development, test and evaluation (RDT&E) of 
     ballistic missile defense (BMD) programs of the Department of 
     Defense (DOD); and
       (2) DOD activities for combating terrorism. The amendment 
     would reduce the amount authorized to be appropriated for 
     other defense programs by $814.3 million to reflect amounts 
     that the Secretary of Defense determines unnecessary by 
     reason of a revision of assumptions regarding inflation. The 
     amendment would also specify that the top priority for the 
     use of additional funds made available by a lower rate of 
     inflation shall be combating terrorism.
       The House bill contained no similar provision.
       The House recedes with an amendment that would authorize an 
     additional $814.3 million to be available for RDT&E of BMD 
     programs and activities of DOD to combat terrorism, whichever 
     the President determines to be in the national security 
     interests of the United States. The amendment would also 
     require the Secretary of Defense to report to the 
     congressional defense committees on the allocation of the 
     funds pursuant to the President's determination and the basis 
     for such determination.
     Reduction in overall authorization due to inflation savings 
         (sec. 1011)
       The Senate amendment contained a provision (sec. 1011) that 
     would reduce the amount authorized to be appropriated to the 
     Department of Defense by $814.3 million to reflect the 
     reduced inflation estimates included in the Office of 
     Management and Budget's 2002 mid-session review of the 
     budget.
       The House bill contained no similar provision.
       The House recedes with an amendment that would reduce the 
     amounts authorized to be appropriated for the operation and 
     maintenance, procurement, and research and development 
     accounts in this Act by $1.0 billion to reflect these 
     inflation savings. The reductions would be allocated among 
     the accounts in these titles to reflect the extent to which 
     inflation savings are available in each account.
       The conferees direct the Secretary to ensure the allocation 
     of any inflation reductions is included in the applicable 
     base for reprogramming reports that the Department submits to 
     Congress.

                Subtitle B--Naval Vessels and Shipyards

     Number of Navy combatant surface vessels in active and 
         reserve service (sec. 1021)
       The Senate amendment contained a provision (sec. 1021) that 
     would require the Secretary of the Navy to submit a report 
     should the surface combatant ship active and reserve force 
     drop below 116 ships. The provision would also require the 
     Secretary to retain on the Naval Vessel Register a sufficient 
     number of ships which could be reactivated within 120 days 
     notice to provide a surge capability to regain the level of 
     116 surface combatants described in the 2001 Quadrennial 
     Defense Review.
       The House bill contained no similar provision.
       The House recedes with an amendment that would incorporate 
     the requirements of the Senate provision in title 10, United 
     States Code.
     Annual long-range plan for the construction of naval vessels 
         (sec. 1022)
       The Senate amendment contained a provision (sec. 1024) that 
     would require the Secretary of Defense to submit, with the 
     annual budget request, a 30-year shipbuilding plan.
       The section also included a number of findings, including:
       (1) Navy ships provide a forward presence for the United 
     States that is 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.
       The House bill contained no similar provision.
       The conferees agree with the findings included in the 
     Senate provision.
       The House recedes with an amendment that would remove the 
     findings from the provision but would support the required 
     annual long-range plan.
     Assessment of the feasibility of the expedited equipping of a 
         Navy ship with a version of the 155-millimeter Advanced 
         Gun System (sec. 1023)
       The Senate amendment contained a provision (sec. 1022) that 
     would require the Secretary of the Navy to submit a plan for 
     fielding a 155-millimeter gun on a ship not later than the 
     end of fiscal year 2006.
       The House bill contained no similar provision.
       The House recedes with an amendment that would require the 
     Navy to submit a feasibility assessment of fielding a 155- 
     millimeter gun on a ship not later than the end of fiscal 
     year 2006.
     Report on initiatives to increase operational days of Navy 
         ships (sec. 1024)
       The Senate amendment contained a provision (sec. 1023) that 
     would require the Under

[[Page H8469]]

     Secretary of Defense for Acquisition, Technology, and 
     Logistics to submit, to the Committees on Armed Services of 
     the Senate and House of Representatives, a report on 
     initiatives to increase the ship operational days available 
     to regional combatant commanders without increasing the 
     number of ships and without extending deployments.
       The House bill contained no similar provision.
       The House recedes with an amendment that would require that 
     the report include an assessment of how the Navy would 
     conduct routine programmed ship maintenance for Navy ships 
     that would remain in forward operating areas.
     Ship combat system industrial base (sec. 1025)
       The House bill contained a provision (sec. 1030) that would 
     require the Secretary of Defense to report to the 
     congressional defense committees on the effect of the DD(X) 
     contract award on the industrial base for ship combat system 
     development, including ship systems integration, radar 
     electronic warfare, launch systems, and other components.
       The Senate amendment contained no similar provision.
       The Senate recedes with a clarifying amendment.
     Sense of Congress concerning aircraft carrier force structure 
         (sec. 1026)
       The House bill contained a provision (sec. 1028) that would 
     state the sense of Congress that there should be at least 12 
     aircraft carriers.
       The Senate amendment contained no similar provision.
       The Senate recedes with a clarifying amendment.
     Conveyance, Navy drydock, Portland, Oregon (sec. 1027)
       The House bill contained a provision (sec. 1025) that would 
     authorize the Secretary of the Navy to sell a drydock in 
     Portland, Oregon to Portland Shipyard, LLC for fair market 
     value.
       The Senate amendment contained no similar provision.
       The Senate recedes.

                     Subtitle C--Strategic Matters

     Strategic force structure plan for nuclear weapons and 
         delivery systems (sec. 1031)
       The House bill contained a provision (sec. 1014) that would 
     require the Secretaries of Defense and Energy to jointly 
     prepare a baseline nuclear force structure plan for the 
     period covered by, and consistent with, the Nuclear Posture 
     Review submitted to Congress on January 8, 2002. The plan 
     would include the warheads, weapon systems, and delivery 
     vehicles required to execute the national defense strategy, 
     as well as the infrastructure, modernization and life 
     extension plans, and other elements of the defense program of 
     the United States necessary to sustain that force structure. 
     The section would require submission of a report to the 
     congressional defense committees on the force structure and a 
     budget plan to support that force structure by January 1, 
     2003, but would permit the President to defer submission of 
     the report to a certain date should the President 
     determine that it is in the national security interest of 
     the United States to submit the report on a later date. 
     Finally, the provision would require a report to be 
     submitted to Congress by the Secretary of Energy on 
     options for achieving, prior to fiscal year 2012, a 
     posture under which the United States maintains no more 
     than 1700-2200 deployed nuclear weapons and that would 
     look at achieving such levels of such weapons in fiscal 
     years 2006,2008 and 2010.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would add 
     additional elements to and modify the scope of the report. 
     The amendment would also require both the Secretary of 
     Defense and Energy to evaluate the advantages and 
     disadvantages of options to reduce the level of operationally 
     deployed nuclear weapons to 1,700-2,200 warheads as early as 
     2007. While the Secretaries may choose the range of dates to 
     be considered as options one of those options must be the 
     achievement of the warhead goal of 1,700-2,200 operationally 
     deployed warheads by 2007. The provision would require the 
     Secretaries to submit the report to the congressional defense 
     committees no later than March 1, 2003.
     Annual report on weapons to defeat hardened and deeply buried 
         targets (sec. 1032)
       The Senate amendment contained a provision (sec. 1032) that 
     would require the Secretary of Defense, in conjunction with 
     the Secretary of Energy and the Director of Central 
     Intelligence, to submit an annual report on the research and 
     development activities under their respective jurisdictions 
     during the preceding fiscal year to develop a weapon to 
     defeat hardened and deeply buried targets. The report would 
     be submitted no later than April 1 of each year.
       The House bill contained no similar provision.
       The House recedes with an amendment that would expand the 
     report to include procurement and other activities undertaken 
     to develop a weapon to defeat hardened and deeply buried 
     targets. In addition, the activities of the defense agencies 
     would be specifically included in the report, and the 
     reporting requirement would be limited to five years.
       The conferees are concerned that substantial amounts of 
     money are being spent for a wide variety of hardened and 
     deeply buried target-related activities within the defense 
     and intelligence communities and that these many programs are 
     not sufficiently coordinated. The conferees believe this 
     report will be useful to ensure that the hardened and deeply 
     buried target challenge is addressed in a coordinated way to 
     meet established requirements and that the funds are spent 
     efficiently.
     Report on effects of nuclear earth-penetrator weapon and 
         other weapons (sec. 1033)
       The House bill contained a provision (sec. 1018) that would 
     direct the Secretary of Defense to request the National 
     Academy of Sciences to conduct a study and prepare a report 
     on the short and long-term effects on the surrounding 
     civilian populations: (1) of the use by the United States of 
     a nuclear earth penetrator weapon on a target; (2) of the use 
     of a non-penetrating nuclear weapon on a hard or deeply 
     buried target; and (3) of the use of a conventional high-
     explosive weapon on facilities to store and produce weapons 
     of mass destruction when the involved materials or 
     contaminants are released into populated areas. The report 
     would be required to be submitted to Congress no later than 
     180 days after the day of enactment of this Act.
       The Senate amendment contained no similar provision.
       The Senate recedes with a technical amendment.

                          Subtitle D--Reports

     Repeal and modification of various reporting requirements 
         applicable to the Department of Defense (sec. 1041)
       The House bill contained a provision (sec. 1016) that would 
     repeal or modify a number of obsolete or superceded reporting 
     requirements presently imposed by statute upon the Department 
     of Defense.
       The Senate amendment contained a similar provision (sec. 
     1031).
       The conferees agree to repeal or modify 22 reports 
     currently required of the Department.
     Requirement that Department of Defense reports to Congress be 
         accompanied by electronic version (sec. 1042)
       The House bill contained a provision (sec. 1013) that would 
     require the Department of Defense to submit to Congress 
     electronic versions of all unclassified reports that are 
     required by law.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Annual report on the conduct of military operations conducted 
         as part of Operation Enduring Freedom (sec. 1043)
       The House bill contained a provision (sec. 1011) that would 
     require the Secretary of Defense, in consultation with the 
     Chairman of the Joint Chiefs of Staff, the Commander in Chief 
     of the United States Central Command, and the Director of 
     Central Intelligence, to submit to the Committees on Armed 
     Services of the Senate and House of Representatives, the 
     Select Committee on Intelligence of the Senate, and the 
     Permanent Select Committee on Intelligence of the House two 
     reports on the accomplishments and shortcomings of the 
     conduct of military operations conducted as part of Operation 
     Enduring Freedom. Each report would specifically include a 
     discussion of the command, control, coordination and support 
     relationship between United States Special Operations Forces 
     and Central Intelligence Agency elements participating in the 
     operation and recommendations to improve operational 
     readiness and effectiveness. The first report would be 
     required by June 15, 2003, and the final report would be 
     required no later than 180 days after the cessation of 
     hostilities.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would require the 
     Secretary of Defense to also submit annual reports by June 15 
     of each year, require the Secretary to include a definition 
     of the military operations carried out as part of Operation 
     Enduring Freedom, maintain as special matters to be included 
     the discussion relating to special operations forces and 
     recommendations for improvement, and add a number of other 
     matters to be addressed in each report.
     Report on efforts to ensure adequacy of fire fighting staffs 
         at military installations (sec. 1044)
       The Senate amendment contained a provision (sec. 1036) that 
     would require a report to Congress on the adequacy of fire 
     fighting staffs at military installations.
       The House bill contained no similar provision.
       The House recedes.
     Report on designation of certain Louisiana highway as Defense 
         Access Road (sec. 1045)
       The Senate amendment contained a provision (sec. 1037) that 
     would direct the Secretary of the Army to submit a report to 
     the congressional defense committees on the advisability of 
     designating Louisiana Highway 28 as a defense access road.
       The House bill contained no similar provision.
       The House recedes.

             Subtitle E--Extension of Expiring Authorities

     Extension of authority for Secretary of Defense to sell 
         aircraft and aircraft parts for use in responding to oil 
         spills (sec. 1051)
       The Senate amendment contained a provision (sec. 1063) that 
     would extend for four

[[Page H8470]]

     years the authority for the Secretary of Defense to sell 
     aircraft and aircraft parts for use in responding to oil 
     spills.
       The House bill contained no similar provision.
       The House recedes.
     Six-month extension of expiring Governmentwide information 
         security requirements; continued applicability of 
         expiring Governmentwide information security requirements 
         to the Department of Defense (sec. 1052)
       The Senate amendment contained a provision (sec. 1061) that 
     would make expiring governmentwide information security 
     requirements permanent with regard to the Department of 
     Defense (DOD).
       The House bill contained no similar provision.
       The House recedes with an amendment that would: (1) extend 
     for two years the applicability of the expiring requirements 
     to DOD; and (2) extend for six months the applicability of 
     these requirements to other federal agencies.
     Two-year extension of authority of the Secretary of Defense 
         to engage in commercial activities as security for 
         intelligence collection activities abroad (sec. 1053)
       The Senate amendment contained a provision (sec. 347) that 
     would amend section 431(a) of title 10, United States Code, 
     to extend the authority of the Secretary of Defense to engage 
     in commercial activities as security for intelligence 
     collection activities abroad until December 31, 2004.
       The House bill contained no similar provision.
       The House recedes.

                       Subtitle F--Other Matters

     Time for transmittal of annual defense authorization 
         legislative proposal (sec. 1061)
       The House bill contained a provision (sec. 1022) that would 
     require the Secretary of Defense to transmit to Congress the 
     annual defense authorization legislative proposal for a 
     fiscal year within 30 days of the date the President 
     transmits to Congress the budget for that fiscal year.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Technical and clerical amendments (sec. 1062)
       The House bill contained a provision (sec. 1023) that would 
     make technical and clerical amendments.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment making additional 
     technical and clerical amendments.
     Use for law enforcement purposes of DNA samples maintained by 
         Department of Defense for identification of human remains 
         (sec. 1063)
       The House bill contained a provision (sec. 1027) that would 
     require the Department of Defense to comply with a valid 
     order of a Federal court or military judge to provide DNA 
     samples for law enforcement purposes.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Enhanced authority to obtain foreign language services during 
         periods of emergency (sec. 1064)
       The House bill contained a provision (sec. 1029) that would 
     authorize the Secretary of Defense to establish and maintain 
     a secure data registry of individuals who volunteer to 
     provide linguistic services in times of emergency to assist 
     the Department of Defense and other departments and agencies 
     of the U.S. Government with translation and interpretation in 
     languages designated as critical by the Secretary.
       The Senate amendment contained no similar provision.
       The Senate recedes with a clarifying amendment.
     Rewards for assistance in combating terrorism (sec. 1065)
       The Senate amendment contained a provision (sec. 1067) that 
     would add a new section to chapter 3 of title 10, United 
     States Code, to authorize the Secretary of Defense to pay a 
     monetary reward, in an amount not to exceed $200,000, to a 
     person for providing U.S. personnel with information or 
     nonlethal assistance that is beneficial to an operation of 
     the Armed Forces outside the United States against 
     international terrorism or to force protection of the Armed 
     Forces. The policies and procedures for offering and paying 
     rewards would be coordinated with the Secretary of State and 
     the Attorney General. The authority could be delegated to the 
     commander of a combatant command to pay a reward in an amount 
     not to exceed $50,000, and the combatant commander could 
     further delegate such authority to pay rewards in an amount 
     not to exceed $2,500.
       The House bill contained no similar provision.
       The House recedes with an amendment that would also 
     authorize the payment of in-kind as well as monetary rewards, 
     authorize rewards for assistance to an activity as well as an 
     operation of the Armed Forces outside the United States, 
     provide for delegation to the Deputy Secretary and an Under 
     Secretary of Defense, and other clarifying amendments.
     Provision of space and services to military welfare societies 
         (sec. 1066)
       The Senate amendment contained a provision (sec. 1068) that 
     would allow the secretaries of the military departments to 
     provide space and services to military welfare societies 
     without charge.
       The House bill contained no similar provision.
       The House recedes.
     Prevention and mitigation of corrosion of military equipment 
         and infrastructure (sec. 1067)
       The Senate amendment contained a provision (sec. 904) that 
     would require the Secretary of Defense to designate a senior 
     official in the Department of Defense (DOD) to be responsible 
     for developing corrosion prevention and mitigation policies, 
     reviewing the services' budgets to ensure adequate resources 
     are being devoted to anti-corrosion efforts, and ensuring 
     that anti- corrosion technologies and treatments are 
     considered and inserted at appropriate points in the life 
     cycle of both facilities and military equipment. The 
     provision would further require DOD to develop a long-term 
     strategy to increase the emphasis on corrosion prevention, 
     establish common criteria for the military services when 
     testing and evaluating new technologies, share useful 
     information across DOD stovepipes, and coordinate a research 
     and development plan to help transition new technologies 
     into operational systems and current facilities.
       The House bill contained no similar provision.
       The House recedes with an amendment that allows the 
     Secretary of Defense to designate a senior official or a 
     standing board or committee to oversee DOD's corrosion-
     related activities. The amendment also reduces the reporting 
     requirements, although the conferees encourage DOD to take 
     steps to improve the amount and quality of data available on 
     the resources required to fight corrosion of military 
     equipment and facilities.
       The conferees firmly believe that DOD can improve its 
     management and coordination of anti-corrosion policies, 
     regulations, and programs, and that these improvements result 
     in greater efficiency and enhanced readiness and quality of 
     life for service members. The conferees, therefore, urge DOD 
     to act quickly to implement this provision.
     Transfer of historic DF-9E Panther Aircraft to Women Airforce 
         Service Pilots Museum (sec. 1068)
       The Senate amendment contained a provision (sec. 1066) that 
     would allow the Secretary of the Navy to convey a DF-9E 
     Panther aircraft to the Women Airforce Service Pilots (WASP) 
     Museum.
       The House bill contained no similar provision.
       The House recedes with a clarifying amendment to specify 
     that the aircraft would be in a non-flyable condition.
     Increase in amount authorized to be expended for Department 
         of Defense program to commemorate 50th anniversary of the 
         Korean War (sec. 1069)
       The conference agreement includes a provision (sec. 1069) 
     that would increase the amount authorized for expenditures by 
     the Korean War Commemorative Committee from $7.0 million to 
     $10.0 million.

                   Legislative Provisions Not Adopted

     Assignment of members to assist Immigration and 
         Naturalization Service and Customs Service
       The House bill contained a provision (sec. 1033) that would 
     amend chapter 18 of title 10, United States Code, to 
     authorize the Secretary of Defense to assign members of the 
     Army, Navy, Marine Corps, and Air Force to assist the 
     Immigration and Naturalization Service in preventing the 
     entry of terrorists, drug traffickers, and illegal aliens 
     into the United States, and to assist the Customs Service in 
     the inspection of cargo, vehicles, and aircraft at points of 
     entry into the United States to prevent the entry of weapons 
     of mass destruction, components of such weapons, prohibited 
     narcotics or drugs, or other terrorist or drug trafficking 
     items. Such assignment could take place only at the request 
     of the Attorney General or the Secretary of the Treasury, 
     respectively. A member so assigned could not make an arrest 
     or perform a search, seizure, or similar law enforcement 
     activity.
       The Senate amendment contained no similar provision.
       The House recedes.
     Authority to transfer funds within a major acquisition 
         program from Procurement to Research, Development, Test 
         and Evaluation
       The House bill contained a provision (sec. 1006) that would 
     provide the Secretary of Defense limited authority to 
     transfer funds from Procurement to Research, Development, 
     Test, and Evaluation for the same acquisition program.
       The Senate amendment contained no similar provision.
       The House recedes.
     Availability of amounts for Oregon Army National Guard for 
         search and rescue and medical evacuation missions in 
         adverse weather conditions
       The Senate amendment contained a provision (sec. 1012) that 
     would authorize $3.0 million to upgrade three UH-60L 
     Blackhawk helicopters of the Oregon Army National Guard to 
     improve their utility in search and rescue (SAR) and medical 
     evacuation missions. The provision further authorized $1.8 
     million for up to 26 additional military personnel to perform 
     these missions.
       The House bill contained no similar provision.
       The Senate recedes on the provision. The Army aircraft 
     procurement table contained

[[Page H8471]]

     in this report describes the conference agreement for 
     helicopter upgrades to improve SAR capabilities.
     Charter grant to Korean War Veterans Association
       The Senate amendment contained a provision (sec. 1070) that 
     would grant a federal charter to the Korean War Veterans 
     Association, Incorporated.
       The House bill contained no similar provision.
       The Senate recedes.
       The conferees' decision reflects the agreement contained in 
     the statement of managers accompanying sections 1501 through 
     1516 of the National Defense Authorization Act for Fiscal 
     Year 1998 (Public Law 105-85) that, ``in the future, 
     amendments to the National Defense Authorization Bill that 
     would grant a federal charter should not be included in a 
     conference agreement unless favorably recommended by the 
     committees of jurisdiction.''
     Enhanced cooperation between United States and Russian 
         Federation to promote mutual security
       The House bill contained a provision (sec. 1031) that would 
     state that it is the policy of the United States to pursue 
     greater cooperation with the Russian Federation regarding 
     nuclear weapons policy, force structure, safeguards, testing, 
     and proliferation prevention, as well as nuclear weapons 
     infrastructure, production, and dismantlement, so as to 
     promote mutual security, stability, and trust. The provision 
     would also set forth a sense of Congress that the President 
     of the United States should continue to engage the President 
     of the Russian Federation in the interest of preventing 
     illicit use, theft, diversion, and proliferation of nuclear 
     weapons. The provision would encourage a series of reciprocal 
     programs of joint visits and conferences dealing with nuclear 
     weapons, ballistic missile defenses, nonproliferation, 
     disposition of weapons grade nuclear materials and spent 
     reactor fuel. The provision would also require the President 
     to submit a report to Congress on the status and description 
     of the various actions to develop such programs with the 
     Russian Federation and the response of the Russian 
     Federation, as well as an assessment of the Russian 
     Federation's commitment to a better, closer relationship with 
     the United States based on the principles of increased 
     cooperation and transparency.
       The Senate amendment contained no similar provision.
       The House recedes.
     Homeland security activities of the National Guard
       The Senate amendment contained a provision (sec. 1041) that 
     would amend title 32, United States Code, to authorize the 
     Governor of a State, at the request of a federal law 
     enforcement agency and with the concurrence of the Secretary 
     of Defense, to order personnel of the National Guard of a 
     State to perform full-time National Guard duty for the 
     purpose of carrying out homeland security activities. Such 
     personnel would be provided for a limited time until the 
     agency could recruit and train sufficient personnel to 
     perform these activities. The Secretary of Defense would 
     provide funds to the Governor to fund the costs of the 
     National Guard personnel and would be reimbursed by the 
     agency receiving the support. The activities would be 
     provided pursuant to a memorandum of understanding between 
     the Secretary of Defense and the Governor.
       The House bill contained no similar provision.
       The Senate recedes.
     Limitation on duration of future Department of Defense 
         reporting requirements
       The House bill contained a provision (sec. 1020) that would 
     automatically sunset recurring congressional defense 
     reporting requirements after five years.
       The Senate amendment contained no similar provision.
       The House recedes.
     Reallocation of authorizations of appropriations from 
         ballistic missile defense to shipbuilding
       The Senate amendment contained a provision (sec. 1002) that 
     would transfer funding from ballistic missile defense 
     programs to shipbuilding programs.
       The House bill contained no similar provision.
       The Senate recedes.
       By convention, outcomes of funding differences between the 
     House bill and the Senate amendment are included in the 
     tables elsewhere in this report.
     Report on biological weapons defense and counterproliferation
       The House bill contained a provision (sec. 1012) that would 
     require a report on U.S. biological weapons defense and 
     counterproliferation programs, including information on 
     impediments to the biological weapons counterproliferation 
     efforts.
       The Senate amendment contained no similar provision.
       The House recedes.
       The conferees have addressed the issue of information about 
     impediments to U.S. biological counterproliferation efforts 
     in a separate section that is described elsewhere in this 
     report.
     Report on effects of nuclear-tipped ballistic missile 
         interceptors and nuclear missiles not intercepted
       The House bill contained a provision (sec. 1019) that would 
     direct the Secretary of Defense to request the National 
     Academy of Sciences to study and report on the effects of the 
     use of a nuclear-tipped interceptor and the effects on a 
     major U.S. city of the detonation of a nuclear weapon 
     delivered by a ballistic missile.
       The Senate amendment contained no similar provision.
       The House recedes.
     Sense of Congress on maintenance of a reliable, flexible, and 
         robust strategic deterrent
       The House bill contained a provision (sec. 1021) that would 
     set forth a sense of Congress that the President should 
     maintain a reliable, flexible, and robust strategic deterrent 
     consistent with the national defense strategy outlined in the 
     Quadrennial Defense Review, the Nuclear Posture Review, and 
     the global strategic environment.
       The Senate amendment contained no similar provision.
       The House recedes.
     Sense of Congress on prohibition of use of funds for 
         International Criminal Court
       The House bill contained a provision (sec. 1034) that would 
     prohibit the use of funds appropriated pursuant to 
     authorizations of appropriations in this Act for any 
     assistance to, cooperation with, or support for the 
     International Criminal Court.
       The Senate amendment contained no similar provision.
       The House recedes.
       The conferees note that, subsequent to passage of the House 
     bill, the President signed legislation making supplemental 
     appropriations for fiscal year 2002 (Public Law 107-206). 
     That legislation contained the American Servicemembers' 
     Protection Act of 2002, which protects United States military 
     personnel and other elected and appointed officials of the 
     United States Government against criminal prosecution by the 
     International Criminal Court. Accordingly, the House 
     provision is no longer necessary.
     Transfer of funds to increase amounts for PAC-3 missile 
         procurement and Israeli Arrow program
       The House bill contained a provision (sec. 1032) that would 
     transfer funding to the PAC-3 and Arrow programs from other 
     Missile Defense Agency programs.
       The Senate amendment contained no similar provision.
       The House recedes.
       By convention, outcomes of funding differences between the 
     House bill and the Senate amendment are included in the 
     tables elsewhere in this report.
     Utah Test and Training Range
       Title XIV of the House bill contained a series of 
     provisions that would designate certain lands in Utah around 
     the Utah Test and Training Range (UTTR) as wilderness areas. 
     Low level military overflights, special use airspace 
     designations, installation of electronic equipment, and 
     emergency access would be unrestricted in these wilderness 
     areas. Title XIV would also prohibit the Secretary of the 
     Interior from developing or revising certain land use plans 
     in Utah without the prior concurrence of the Secretary of the 
     Air Force and the State of Utah.
       The Senate amendment contained no similar provision.
       The House recedes.
     War risk insurance for vessels in support of NATO-approved 
         operations
       The House bill contained a provision (sec. 1024) that would 
     authorize the Secretary of Transportation to provide war risk 
     insurance to a commercial vessel that is supporting a shared 
     logistics military operation approved by the North Atlantic 
     Council. This section would also authorize the Secretary of 
     Transportation, with the concurrence of the Secretary of 
     State, to seek from another nation a commitment to indemnify 
     the United States for any amounts paid by the United States 
     for claims against such insurance.
       The Senate amendment contained no similar provision.
       The House recedes.

           Title XI--Department of Defense Civilian Personnel

                     Legislative Provisions Adopted

     Eligibility of Department of Defense nonappropriated fund 
         employees for long-term care insurance (sec. 1101)
       The House bill contained a provision (sec. 1101) that would 
     permit nonappropriated fund employees of the Department of 
     Defense to participate in the employee-funded federal long-
     term care insurance program.
       The Senate amendment contained a similar provision (sec. 
     1104).
       The Senate recedes.
     Extension of Department of Defense authority to make lump-sum 
         severance payments (sec. 1102)
       The House bill contained a provision (sec. 1102) that would 
     extend from September 30, 2003 to September 30, 2006, the 
     authority of the Secretary of Defense to pay lump-sum 
     severance payments to civilian employees. The provision would 
     also require the President to report to Congress whether this 
     authority should be made permanent or extended to other 
     federal agencies.
       The Senate amendment contained a similar provision (sec. 
     1101).
       The Senate recedes with an amendment specifying the 
     congressional committees to whom the report must be 
     submitted.
     Continuation of Federal Employee Health Benefits Program 
         eligibility (sec. 1103)
       The House bill contained a provision (sec. 1104) that would 
     extend for three years eligibility for continued health care 
     coverage

[[Page H8472]]

     under the Federal Employee Health Benefits Program of certain 
     Department of Defense civilian employees who are separated 
     due to a reduction in force.
       The Senate amendment contained a similar provision (sec. 
     1103).
       The Senate recedes.
     Certification for Department of Defense professional 
         accounting positions (sec. 1104)
       The House bill contained a provision (sec. 1106) that would 
     authorize the Secretary of Defense to prescribe professional 
     certification and credential standards for professional 
     accounting positions.
       The Senate amendment contained a similar provision (sec. 
     1106).
       The Senate recedes.

                   Legislative Provisions Not Adopted

     Common occupational and health standards for differential 
         payments as a consequence of exposure to asbestos
       The House bill contained a provision (sec. 1103) that would 
     establish a common standard for payment of environmental 
     differential pay for exposure to asbestos for prevailing rate 
     and general schedule federal employees.
       The Senate amendment contained no similar provision.
       The House recedes.
       Currently, general schedule employees are entitled to eight 
     percent differential pay when working conditions result in 
     exposure to asbestos exceeding the permissible exposure 
     limits established by the Occupational Safety and Health 
     Administration. The existing environmental differential pay 
     for wage-grade employees also entitles them to the same eight 
     percent differential pay but does not set an objective 
     measure for determining the level of asbestos exposure 
     necessary to qualify for environmental differential pay. This 
     has led to inconsistent application of environmental 
     differential pay.
       The conferees remain concerned that this issue was not 
     addressed as directed in the statement of managers 
     accompanying the National Defense Authorization Act for 
     Fiscal Year 2002 (Public Law 107-107). The conferees 
     encourage the Federal Prevailing Rate Advisory Committee 
     (FPRAC) to continue its review of this issue, which provides 
     a forum for interested parties. The conferees expect the 
     FPRAC to consider adoption of a consistent, objective means 
     of measuring asbestos exposure for federal prevailing rate 
     and general schedule employees that addresses the actual risk 
     of asbestos exposure based on scientific and empirical data.
     Extension of voluntary separation incentive pay authority
       The Senate amendment contained a provision (sec. 1102) that 
     would extend from September 30, 2003, to September 30, 2006, 
     the authority of the Secretary of Defense to pay voluntary 
     separation incentive pay to civilian employees.
       The House bill contained no similar provision.
       The Senate recedes.
       The conferees were unable to include this provision because 
     of the lack of an adequate mandatory funding allocation.
       The conferees are well aware of a potential human capital 
     crisis facing the Federal Government and its impact on the 
     Department of Defense. The conferees know that the Department 
     has developed a human resources strategic plan designed to 
     provide a roadmap to the future and has aggressively 
     implemented many civilian personnel demonstration authorities 
     granted by Congress. However, these steps alone may not be 
     sufficient to meet the demand for new hires and to 
     accommodate the reshaping necessary to transform the 
     Department. The conferees encourage the Department to use 
     existing authorities to the fullest extent possible.
       In order to address this potential human capital crisis, 
     the conferees direct the Secretary of Defense to review the 
     human resources strategic plan and the existing civilian 
     personnel demonstration authorities and, no later than March 
     31, 2003, provide to the Committees on Armed Services of the 
     Senate and House of Representatives, the Committee on 
     Government Affairs of the Senate, and the Committee on 
     Government Reform and Oversight of the House of 
     Representatives an assessment of the effectiveness of these 
     authorities and recommend any legislative changes necessary 
     to effectively and efficiently manage the civilian employees 
     of the Department of Defense.
     Increased maximum period of appointment under the 
         experimental personnel program for scientific and 
         technical personnel
       The Senate amendment contained a provision (sec. 1105) that 
     would extend the maximum period of appointment under an 
     experimental personnel program for scientific and technical 
     personnel.
       The House bill contained no similar provision.
       The Senate recedes.
       The conferees recognize the importance of offering a 
     competitive retirement benefit in order to recruit and retain 
     highly qualified employees for these temporary positions. The 
     conferees also recognize, however, that the benefit, which is 
     defined by the Federal Employees Retirement System, is not 
     portable and is therefore not likely to be attractive to many 
     qualified individuals, particularly those in the early and 
     middle stages of their careers. Therefore, the conferees 
     direct the Secretary of Defense to study alternative 
     retirement proposals, including a fully portable, defined 
     contribution plan or, where appropriate, to permit employees 
     in these positions to continue to participate in non-federal 
     retirement plans. The results of the study and any such 
     legislative proposal as the Secretary deems appropriate shall 
     be submitted to Congress as part of the annual report on the 
     program that is required by section 1101 of the Strom 
     Thurmond National Defense Authorization Act for Fiscal Year 
     1999 (Public Law 105-261).
     Triennial full-scale federal wage system wage surveys
       The House bill contained a provision (sec. 1105) that would 
     change the full-scale federal wage system wage survey cycle 
     conducted by the Office of Personnel Management from two to 
     three years.
       The Senate amendment contained no similar provision.
       The House recedes.

              Title XII--Matters Relating to Other Nations

                     Legislative Provisions Adopted

     Authority to provide administrative services and support for 
         coalition liaison officers (sec. 1201)
       The House bill contained a provision (sec. 1203) that would 
     authorize the Secretary of Defense and the secretaries of the 
     military departments to provide administrative services and 
     support to foreign liaison officers performing duties, 
     through the Department of Defense Foreign Liaison Officer 
     Program, at military facilities in the United States.
       The Senate amendment contained a provision (sec. 1211) that 
     would authorize the Secretary of Defense to provide 
     administrative support and services to coalition liaison 
     officers while they are temporarily assigned to the 
     headquarters of a combatant command, component command, or 
     subordinate operational command in connection with the 
     planning for, or conduct of, a coalition operation. The 
     Secretary would also be authorized to pay the travel, 
     subsistence, and personnel 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 if 
     the assignment is requested by the commander of the combatant 
     command.
       The House recedes with an amendment that would limit the 
     payment of personal expenses for a liaison officer from a 
     developing country to those which are directly necessary to 
     carry out the duties of that officer in connection with the 
     assignment, provide for the authority under this section to 
     expire on September 30, 2005, and require the Comptroller 
     General to submit a report to the Committees on Armed 
     Services of the Senate and House of Representatives by March 
     1, 2005, on the implementation of this authority.
     Authority to pay for certain travel of defense personnel of 
         countries participating in NATO Partnership for Peace 
         program (sec. 1202)
       The Senate amendment contained a provision (sec. 1212) that 
     would amend section 1051 of title 10, United States Code, to 
     authorize the Secretary of Defense to pay for the travel-
     related expenses of defense personnel from a developing 
     country participating in the North Atlantic Treaty 
     Organization's (NATO) Partnership for Peace (PfP) program to 
     the territory of any of the countries participating in the 
     PfP program or of any of the NATO member countries.
       The House bill contained no similar provision.
       The House recedes with an amendment clarifying that the 
     authority is limited to developing countries that are 
     participating in PfP but are not members of NATO.
     Limitation on funding for Joint Data Exchange Center in 
         Moscow (sec. 1203)
       The House bill contained a provision (sec. 1205) that would 
     prohibit obligation or expenditure of more than 50 percent of 
     the funds authorized for fiscal year 2003 for activities 
     associated with the Joint Data Exchange Center (JDEC) in 
     Moscow, Russia, until: (1) the United States and the Russian 
     Federation enter into a cost-sharing agreement as required by 
     section 1231 of the Floyd D. Spence National Defense 
     Authorization Act for Fiscal Year 2001 (Public Law 106-398); 
     (2) the United States and the Russian Federation enter into 
     an agreement exempting the United States from Russian taxes 
     and liability laws for activities associated with the JDEC; 
     and (3) 30 days have elapsed after the Secretary of Defense 
     submits to the Committees on Armed Services of the Senate and 
     the House or Representatives, the Committee on Foreign 
     Relations of the Senate, and the Committee on International 
     Relations of the House of Representatives, a copy of each 
     required agreement.
       The Senate amendment contained no similar provision.
       The Senate recedes.
       The conferees continue to support activities to improve 
     transparency and build confidence and cooperation between the 
     United States and the Russian Federation and believe the JDEC 
     will make an important contribution to these efforts. The 
     conferees urge the Secretary of Defense to work diligently to 
     obtain agreement or agreements with the Russian Federation 
     that meet the requirements of section 1231.
     Support of United Nations-sponsored efforts to inspect and 
         monitor Iraqi weapons activities (sec. 1204)
       The House bill contained a provision (sec. 1201) that would 
     extend the authority under section 1505 of the Weapons of 
     Mass Destruction Control Act of 1992, section 5859a of title

[[Page H8473]]

     22, United States Code, for the Department of Defense to 
     expend up to $15.0 million in fiscal year 2003 in support of 
     United Nations-sponsored inspection and monitoring efforts to 
     ensure Iraqi compliance with its international obligations to 
     destroy its weapons of mass destruction programs and 
     associated delivery systems.
       The Senate amendment contained an identical provision (sec. 
     1213).
       The conference agreement includes this provision.
     Comprehensive annual report to Congress on coordination and 
         integration of all United States non-proliferation 
         activities (sec. 1205)
       The Senate amendment contained a provision (sec. 3162) that 
     would amend section 1205 of the National Defense 
     Authorization Act for Fiscal Year 2002 (Public Law 107-107), 
     which directed the President to submit a report on a plan to 
     secure nuclear weapons, material, and expertise in the states 
     of the Former Soviet Union, to require an annual update on 
     the status of implementing the plan.
       The House bill contained no similar provision.
       The House recedes.
     Report requirement regarding Russian proliferation to Iran 
         and other countries of proliferation concern (sec. 1206)
       The House bill contained a provision (sec. 1306) that would 
     express the sense of Congress about the seriousness of 
     Russian proliferation assistance to the weapons of mass 
     destruction programs of Iran and other countries. The 
     provision would also require an annual report beginning in 
     2003 and continuing through 2009, describing in detail such 
     assistance and its consequences and the efforts of the United 
     States to defend against and end such proliferation.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would require an 
     annual report beginning in 2003 and continuing through 2009, 
     describing in detail Russian proliferation of weapons of mass 
     destruction and ballistic missile goods, technology, 
     expertise and information, and of related dual-use items, to 
     Iran and other countries of proliferation concern during the 
     preceding year. The report would describe the impact and 
     consequences of such proliferation and the efforts of the 
     United States to halt such proliferation.
       The conferees note that this provision is intended to apply 
     to prohibited acts of proliferation assistance.
     Monitoring of implementation of 1979 agreement between the 
         United States and China on cooperation in science and 
         technology (sec. 1207)
       The Senate amendment included a provision (sec. 1216) that 
     would require the Office of Science and Technology 
     Cooperation of the Department of State to monitor the 
     implementation of the 1979 United States-China Agreement on 
     Cooperation in Science and Technology (S&T) and its 
     protocols. The amendment would require the Office of S&T 
     Cooperation to submit a biennial report on the activities 
     conducted under this agreement and the benefits of this 
     agreement to the Chinese economy, military, and defense 
     industrial base.
       The House bill contained no similar provision.
       The House recedes with an amendment that would authorize 
     the President to establish a working group to monitor the 
     Agreement and directs the Director of Central Intelligence, 
     the Secretary of Defense, and the Inspector General of the 
     Commerce Department to conduct various assessments that would 
     be components of the biennial report. The conferees continue 
     to support the numerous mutually beneficial exchanges that 
     occur under the auspices of the Agreement.
     Extension of certain counterproliferation activities and 
         programs (sec. 1208)
       The Senate amendment contained a provision (sec. 1033) that 
     would extend the date of submission of the annual report on 
     counterproliferation activities and programs from February 1 
     to May 1 of each year.
       The House bill contained no similar provision.
       The House recedes with an amendment that would extend the 
     service of the interagency Counterproliferation Program 
     Review Committee through September 2008. It would also 
     require that the annual report include a discussion of the 
     limitations on and impediments to the biological weapons 
     counterproliferation efforts of the Department of Defense and 
     include recommendations for ways to make such efforts more 
     effective.
     Semiannual report by Director of Central Intelligence on 
         contributions by foreign persons to efforts of countries 
         of proliferation concern to obtain weapons of mass 
         destruction and their delivery systems (sec. 1209)
       The Senate amendment contained a provision (sec. 1040) that 
     would require biannual reports to Congress by the President 
     on foreign persons that make a material contribution to the 
     development of weapons of mass destruction or missiles by a 
     country of proliferation concern.
       The House bill contained no similar provision.
       The House recedes with an amendment that would conform and 
     add the provision to Title VII of the Combating Weapons of 
     Mass Destruction Act of 1996 (Public Law 104-293). The first 
     report required under this provision would be due no later 
     than January 1, 2004.
     Report on feasibility and advisability of senior officer 
         exchanges between the Armed Forces of the United States 
         and the military forces of Taiwan (sec. 1210)
       The House bill included a provision (sec. 1202) which 
     directed the Secretary of Defense to prepare and implement a 
     plan for conducting joint operational training for and 
     exchanges of senior officers between the Armed Forces of the 
     United States and the Armed Forces of Taiwan. The Secretary 
     would submit this plan to Congress at least 30 days before 
     commencing with its implementation.
       The Senate amendment included no similar provision.
       The Senate recedes with an amendment requiring the 
     President to submit to Congress a report on the feasibility 
     and advisability of conducting combined operational training 
     with, and exchanges of general and flag officers between, the 
     Armed Forces of the United States and the military forces of 
     Taiwan and a discussion of the progress being made on meeting 
     U.S. commitments to the security of Taiwan.
     Report on United States force structure in the Pacific (sec. 
         1211)
       The conferees agree to include a provision which directs 
     the Secretary of Defense to submit to Congress a report on 
     the Department of Defense's plans to maintain adequate force 
     structure in the Pacific theater. The report would be 
     submitted no later than 180 days after the date of enactment 
     of this Act.

                   Legislative Provisions Not Adopted

     Additional countries covered by loan guarantee program
       The House bill contained a provision (sec. 1204) that would 
     amend section 2540(b) of title 10, United States Code, to 
     authorize the Secretary of Defense, in consultation with the 
     Secretary of State, to expand the list of countries eligible 
     under the Defense Export Loan Guarantee Program.
       The Senate amendment contained no similar provision.
       The House recedes.
     Arctic and Western Pacific Environmental Cooperation Program
       The Senate amendment contained a provision (sec. 1214) that 
     would authorize the Secretary of Defense to conduct a 
     cooperative program with countries in the Arctic and Western 
     Pacific regions. The Secretary, with the concurrence of the 
     Secretary of State, would be authorized to provide 
     cooperative assistance or provide assistance on environmental 
     matters in the Arctic and Pacific regions with certain 
     exceptions. The primary focus of the program would be 
     technology projects and activities related to radiological 
     threats and contamination. To reflect this focus, the 
     provision would limit the availability of program funds to no 
     more than 20 percent of such funds on non-radiological 
     matters. The provision would also require the Secretary to 
     submit an annual report on the program that would include a 
     discussion of the activities, the funding, the life-cycle 
     costs of any projects, the participants, and any 
     contributions from other agencies or countries.
       The House bill contained no similar provision.
       The Senate recedes.
     Department of Defense HIV/AIDS Prevention Assistance Program
       The Senate amendment contained a provision (sec. 1215) that 
     would authorize the Secretary of Defense to expand the 
     existing program of HIV/AIDS prevention education activities 
     undertaken in connection with the conduct of U.S. military 
     training, exercises, and humanitarian assistance in sub-
     Saharan Africa, to countries that are suffering a public 
     health crisis relating to HIV/AIDS and that participate in 
     the military-to-military contacts program of the Department 
     of Defense. The activities would focus, to the extent 
     possible, on military units that participate in peacekeeping 
     operations and would include HIV/AIDS-related voluntary 
     counseling and testing and HIV/AIDS-related surveillance.
       The House bill contained no similar provision.
       The Senate recedes.
       The conferees note that the Department of Defense has 
     extensive authorities in title 10, United States Code, 
     relating to military-to-military contacts and comparable 
     activities, humanitarian and civic assistance provided in 
     conjunction with military operations, and other similar 
     activities. The conferees take this action without prejudice 
     and invite the Secretary of Defense to submit a legislative 
     proposal for any additional authorities that he needs in this 
     area.
     Limitation on number of military personnel in Colombia
       The House bill contained a provision (sec. 1206) that would 
     prohibit the use of funds available to the Department of 
     Defense to support or maintain more than 500 members of the 
     Armed Forces on duty in the Republic of Colombia at any one 
     time. Members in Colombia for no more than 30 days for the 
     purpose of rescuing or retrieving U.S. military or civilian 
     Government personnel, members assigned to the security 
     assistance office or to the Marine Corps security contingent 
     at the Embassy, members participating in relief efforts to 
     respond to a natural disaster, nonoperational transient 
     military personnel, and members making a ship port call, 
     would all be excluded from the 500 member limitation. The 
     Secretary of Defense would have

[[Page H8474]]

     the authority to waive the limitation if he determines that 
     such waiver is in the national security interest.
       The Senate amendment contained no similar provision.
       The House recedes.
     Russian tactical nuclear weapons
       The Senate amendment contained a provision (sec. 1205) that 
     would set forth findings with respect to the potential 
     threats posed by unsecured Russian tactical nuclear weapons. 
     The provision would also set forth the sense of the Senate 
     that stolen Russian tactical nuclear weapons could be used 
     against the United States, that it should be a priority of 
     the United States to account for, secure, and reduce the 
     number of Russian tactical nuclear weapons and materials, and 
     that the threat warrants a special nonproliferation 
     initiative. The provision would also require the President to 
     submit a report to Congress 30 days after the date of 
     enactment of this Act on efforts, including establishing a 
     special initiative, to reduce the threats from Russian 
     tactical nuclear weapons.
       The House bill contained no similar provision.
       The Senate recedes.

  Title XIII--Cooperative Threat Reduction with States of the Former 
                              Soviet Union

                       Items of Special Interest

     Weapons of Mass Destruction Proliferation Prevention Program 
         of the Cooperative Threat Reduction program with the 
         States of the Former Soviet Union
       The Department of Defense (DOD) requested $40.0 million in 
     the fiscal year 2003 budget request to initiate a new program 
     within the Cooperative Threat Reduction (CTR) program called 
     the Weapons of Mass Destruction Proliferation Prevention 
     Program. The program would provide CTR assistance to enhance 
     the capability of non-Russian Former Soviet Union (FSU) 
     military, internal security forces, border guards, and 
     customs forces to prevent, deter, detect and interdict 
     unauthorized movement of weapons of mass destruction or 
     related materials across borders and to respond effectively 
     to terrorist incidents at borders. While the conferees 
     support this new effort, the conferees are concerned that 
     there may be potential for duplication of effort with other 
     similar programs within DOD as well as with the Department of 
     Energy's National Nuclear Security Administration (NNSA) FSU 
     activities.
       The conferees urge DOD to coordinate this new CTR program 
     with all existing programs within DOD, the NNSA, the 
     Department of State, the U.S. Customs Service, the Federal 
     Bureau of Investigation, and the U.S. Coast Guard. The 
     conferees expect DOD to coordinate with the NNSA in the area 
     of weapons of mass destruction detection technology. The 
     conferees direct DOD to report to the congressional defense 
     committees, no later than December 31, 2002, the results of 
     this coordination. The conferees expect DOD to present a 
     plan, coordinated with the Department of State, the 
     Administrator of the NNSA, and the other federal agencies, 
     that describes how this new program will complement and 
     enhance, rather than duplicate, any similar ongoing effort in 
     any other federal agency and the interagency process for 
     coordinating these programs in the future.

                     Legislative Provisions Adopted

     Specification of Cooperative Threat Reduction programs and 
         funds (sec. 1301)
       The House bill contained a provision (sec. 1301) that would 
     define the programs and funds that are Cooperative Threat 
     Reduction (CTR) programs and funds and specify that CTR funds 
     shall remain available for obligation for three fiscal years.
       The Senate amendment contained an identical provision (sec. 
     1201).
       The conferees agree to include the provision.
     Funding allocations (sec. 1302)
       The House bill contained a provision (sec. 1302) that would 
     authorize $416.7 million for the Cooperative Threat Reduction 
     (CTR) program and would allocate the funds among the various 
     program activities. In addition, the provision would provide 
     limited authority to vary the amounts allocated to individual 
     program activities including a requirement that for certain 
     CTR program activities, the amount obligated for those 
     program activities may not exceed 115 percent of the amount 
     allocated. The provision would also allow $83.6 million of 
     the funds authorized to be used either for activities related 
     to strategic and nuclear systems or for destruction of 
     chemical weapons in Russia and Ukraine.
       The Senate amendment contained a similar provision (sec. 
     1202) that would authorize $416.7 million for the CTR program 
     and allocate the funds among the various program activities.
       The Senate recedes with an amendment that would authorize 
     $417.6 million for the CTR program, modify certain of the 
     allocations among the CTR program activities, and increase 
     the limitation on obligation to 125 percent of the amount 
     authorized.
     Prohibition against use of funds until submission of reports 
         (sec. 1303)
       The House bill contained a provision (sec. 1303) that would 
     prohibit obligation or expenditure of all fiscal year 2003 
     Cooperative Threat Reduction (CTR) funds until 30 days after 
     two reports are submitted.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would prohibit 
     expenditure or obligation of 50 percent of the fiscal year 
     2003 CTR funds until 30 days after the required reports have 
     been submitted to Congress.
     Report on use of revenue generated by activities carried out 
         under Cooperative Threat Reduction programs (sec. 1304)
       The House bill contained two provisions (secs. 1304 and 
     1309) that would establish additional reporting requirements 
     for the Cooperative Threat Reduction (CTR) program. Section 
     1304 would amend the annual CTR reporting requirement in 
     section 1308(c) of the Floyd D. Spence National Defense 
     Authorization Act for Fiscal Year 2001 (Public Law 106-398) 
     to add a description of how revenue generated by activities 
     carried out under the CTR program are utilized, monitored, 
     and accounted for. Section 1309 would require the Secretary 
     of Defense to submit a new stand- alone report describing in 
     detail the operation and success of activities carried out by 
     the defense and military contacts element of the CTR program. 
     Section 1309 would also prohibit obligation or expenditure of 
     more than 50 percent of the CTR funds allocated for defense 
     and military contacts until such report is submitted to 
     Congress.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would combine 
     both reporting requirements into a single provision that 
     would amend section 1308(c) to include both reports as 
     elements of the annual CTR report. The amendment would delete 
     the funding prohibition. The new reporting requirements would 
     be included in the annual report for fiscal year 2003, that 
     would be submitted in 2004.
     Prohibition against use of funds for second wing of fissile 
         materials storage facility (sec. 1305)
       The House bill contained a provision (sec. 1305) that would 
     prohibit any funds appropriated for the Cooperative Threat 
     Reduction program from being used for design, planning, or 
     construction of a second wing for a storage facility for 
     storing Russian fissile material.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Limited waiver of restrictions on use of funds for threat 
         reduction in states of the former Soviet Union (sec. 
         1306)
       The Senate amendment contained a provision (sec. 1204) that 
     would provide the President with permanent authority to waive 
     the annual certifications required for both the Cooperative 
     Threat Reduction (CTR) programs and the Freedom Support Act 
     nonproliferation programs, as requested by the 
     administration. The provision would amend section 1203 of the 
     Cooperative Threat Reduction Act of 1993 (22 U.S.C. 5952) and 
     section 502 of the Freedom Support Act (22 U.S.C. 5852) and 
     provide the President the authority to waive the restrictions 
     in any given fiscal year for any given country if such a 
     waiver is important to the national security interests of the 
     United States.
       If the President chooses to exercise the waiver for either 
     the Cooperative Threat Reduction Act or Freedom Support Act 
     preconditions, this waiver would be effective only when the 
     President submits to Congress a report describing the 
     activity or activities that prevent the President from making 
     the certification or certifications required by the Act and 
     the strategy, plan, or policy of the President to promote the 
     relevant State's future commitment to the preconditions.
       The House bill contained a similar provision (sec. 1308) 
     but would allow the waiver authority only for the 
     certification required by section 1203(d)(5) of the 
     Cooperative Threat Reduction Act, which states Russia is 
     committed to complying with all relevant arms control 
     agreements. The waiver authority would be available until 
     September 30, 2005.
       The House recedes with an amendment that would limit the 
     authority to grant an annual waiver to three fiscal years.

                   Legislative Provisions Not Adopted

     Prohibition against use of Cooperative Threat Reduction funds 
         outside the States of the former Soviet Union
       The House bill contained a provision (sec. 1307) that would 
     prohibit the use of Cooperative Threat Reduction (CTR) funds 
     for any fiscal year for any projects or activities outside 
     the States of the Former Soviet Union (FSU).
       The Senate amendment contained a provision (sec. 1203) that 
     would authorize the use of CTR funds for threat reduction 
     activities outside the States of the FSU under certain 
     circumstances and with certain restrictions.
       The conferees agree to drop both provisions.
       The conferees recognize that the President periodically 
     determines that it is necessary for the United States 
     Government to address an emergency proliferation threat from 
     weapons of mass destruction (WMD) outside of the States of 
     the FSU that would affect the national security interests of 
     the United States.
       Therefore the conferees direct the Secretary of Defense to 
     conduct a review of the authorities currently available to 
     the United States Government to be able to respond to any 
     emergency WMD proliferation threat. In this review the 
     Secretary should identify

[[Page H8475]]

     any prohibition, impediment, or limitation imposed by any 
     statute, order, regulation, or policy that would limit or 
     prevent a Unites States Government response, including a 
     response by the Secretary of Defense. In reviewing the 
     authorities available to the Department of Defense (DOD) 
     these should include situations when DOD response is in a 
     support role to another federal agency or is the lead federal 
     agency. The review should also include an explanation of the 
     Department's role in the interagency process.
       The Secretary is directed to submit a report to the 
     congressional defense committees that would set forth the 
     results of this review and invited to submit a legislative 
     proposal to remedy shortcomings in his existing authority. 
     This report shall be due no later than March 1, 2003.

                      Title XIV--Homeland Security

                     Legislative Provisions Adopted

     Transfer of technology items and equipment in support of 
         homeland security (sec. 1401)
       The House bill contained a provision (sec. 142) that would 
     authorize the Secretary of Defense to enter into an agreement 
     with an independent, non-profit, technology-oriented entity 
     to facilitate technology transfer of promising defense 
     technologies to aid the homeland security efforts of federal, 
     state and local ``first responders''.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would require the 
     Secretary of Defense to designate a senior official of the 
     Department of Defense to coordinate the Department's efforts 
     to identify, evaluate, deploy, and transfer technology items 
     to first responders in support of homeland security. The 
     conference amendment would require the senior official to 
     work with other appropriate federal agencies and to use 
     competitive procedures to enter into an agreement with a 
     highly qualified private sector entity to assist in these 
     efforts.
       The conferees expect the Department to work with the new 
     Department of Homeland Security, if such an agency is 
     established, in any effort to transfer homeland security 
     technologies to first responders. The conferees also 
     anticipate that the Department of Defense will give 
     appropriate consideration to standards developed by the 
     Inter-Agency Board for Equipment Standardization and 
     Interoperability when it works to identify and evaluate new 
     homeland security technologies.
     Comprehensive plan for improving the preparedness of military 
         installations for terrorist incidents (sec. 1402)
       The Senate amendment contained a provision (sec. 1045) that 
     would direct the Secretary of Defense to develop a 
     comprehensive plan to improve the preparedness of military 
     installations for incidents involving weapons of mass 
     destruction (WMD). The Secretary would submit the plan to the 
     congressional defense committees no later than 180 days after 
     this legislation comes into effect. No later than 60 days 
     after the Secretary submits the plan to Congress, the 
     Comptroller General would be required to review it and submit 
     a report assessing the plan to the congressional defense 
     committees. The Secretary would be directed to inform 
     Congress of progress under and updates to the plan for a 
     total of three years.
       The House bill contained no such provision.
       The House recedes with an amendment to change the provision 
     so that the plan would address preparedness of military 
     installations for terrorist incidents, not limited to those 
     involving weapons of mass destruction.
     Additional Weapons of Mass Destruction Civil Support Teams 
         (sec. 1403)
       The House bill contained a provision (sec. 1551) that would 
     direct the Secretary of Defense to establish at least one 
     Weapons of Mass Destruction Civil Support Team (WMD CST) in 
     each state and territory. The Secretary would be required to 
     ensure that this provision is fully implemented by September 
     30, 2003.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment directing the 
     Secretary to establish 23 additional teams, one for each 
     state and territory, and requiring the Secretary to submit to 
     Congress within six months of enactment of this Act a report 
     including his plan for establishing these teams. The report 
     would include a schedule and budget for manning, training, 
     and equipping the new teams as rapidly as possible without 
     jeopardizing the attainment of full effectiveness by the 
     teams. The report would also include a discussion of whether 
     the mission of the teams should be expanded, and if so, how.
     Report on the role of the Department of Defense in supporting 
         homeland security (sec. 1404)
       The House bill contained a provision (sec. 1017) requiring 
     the Secretary of Defense to submit to the congressional 
     defense committees a report on Department of Defense (DOD) 
     responsibilities, missions, and plans for military support of 
     homeland security.
       The Senate amendment contained a provision (sec. 1044) 
     requiring the Secretary to submit a detailed report on how 
     DOD should be fulfilling and is fulfilling its homeland 
     defense mission.
       The Senate recedes with an amendment that would combine the 
     report requirements outlined in these provisions.
     Sense of Congress on Department of Defense assistance to 
         local first responders (sec. 1405)
       The House bill contained a provision (sec. 1553) that would 
     express the sense of Congress that the Secretary of Defense 
     should, to the extent that the Secretary determines 
     appropriate, use funds provided in the Act to assist, train, 
     and equip local fire and police departments that would act as 
     first responders to domestic terrorist incidents that may 
     come about in connection with the continued fight to 
     prosecute the war on terrorism.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment stating that, to the 
     extent the Secretary considers appropriate and feasible and 
     in accordance with the law, the Secretary should provide 
     assistance to entities that are local first responders for 
     domestic terrorist incidents and assist those entities in 
     improving their capabilities to respond to such incidents.

                   Legislative Provisions Not Adopted

     Additional weapons of mass destruction civil support teams
       The House bill contained a provision (sec. 1026) that would 
     express the sense of Congress that the Secretary of Defense 
     should establish at least one Weapons of Mass Destruction 
     Civil Support Team (WMD CST) in each state and territory.
       The Senate amendment contained no similar provision.
       The House recedes.

   Title XV--Authorization of Appropriations for the War on Terrorism

                     Legislative Provisions Adopted

     Authorization of appropriations for continued operations for 
         the war on terrorism (secs. 1501-1508)
       Title XV of the House bill contained a series of provisions 
     that would authorize $10.0 billion to continue the war on 
     terrorism. The House bill would provide $3.5 billion for a 
     war on terrorism operations fund, $1.0 billion for an 
     equipment replacement and enhancement fund, $200.0 million 
     for additional munitions purchases, and $2.0 billion for 
     classified programs. The House bill would also authorize, 
     within the $10.0 billion total, approximately $3.1 billion 
     for programs for which funds were requested elsewhere in the 
     fiscal year 2003 budget request, including the Defense 
     Emergency Response Fund. The House bill would also provide 
     additional funding for enhanced military personnel benefits 
     that were contained in that title.
       Section 1003 of the Senate amendment would authorize the 
     appropriation of $10.0 billion for continuing the war on 
     terrorism, as requested in the President's budget, contingent 
     on the submission of a subsequent request by the President 
     that identified a proposed allocation and plan for the use of 
     these funds.
       On July 3, 2002, the President submitted a budget amendment 
     that proposed to allocate $2.5 billion of the $10.0 billion 
     requested to military personnel and mobilization costs, $5.3 
     billion to the cost of military operations, $2.0 billion for 
     classified programs, and $200.0 million for additional 
     munitions.
       The Senate recedes with an amendment that would authorize 
     $10.0 billion for the conduct of Operation Noble Eagle and 
     Operation Enduring Freedom to continue the war on terrorism 
     in accordance with the conditions stated in the Authorization 
     for Use of Military Force (Public Law 107-40). The conferees 
     agree to authorize $10.0 billion that would be available for 
     transfer to the normal budget accounts of the Department of 
     Defense for the following purposes: $2.5 billion for 
     mobilization and other military personnel costs; $4.3 billion 
     for the operating costs of military operations; $1.0 billion 
     for equipment replacement and enhancement of military 
     capabilities; $2.0 billion for classified programs; and 
     $200.0 million for additional munitions. Funding would be 
     available for the specific munitions programs identified in 
     the July 3, 2002, budget amendment as follows:


                                                  [Dollars in millions]
Army..............................................................$94.0
  Procurement of Ammunition, Army:
    5.56 mm--all types (training)..................................15.0
    .50-caliber--all types (training)...............................5.0
    105 mm HE recapitalization......................................5.0
    155 mm M795....................................................20.0
    MACS...........................................................20.0
    Fuze M762.......................................................5.0
    105 mm illumination round.......................................5.0
    120 mm mortar high explosive....................................
    multi-option fuze..............................................10.0
    25mm M919 for Bradley...........................................9.0
Navy...............................................................60.0
  Weapons Procurement, Navy:
    AGM 114M Hellfire missiles.....................................35.0
  Procurement of Ammunition, Navy and Marine Corps:
    General purpose bomb components................................25.0
Air Force..........................................................40.0
  Procurement of Ammunition, Air Force:
    General purpose bomb components................................40.0
Special Operations Command..........................................6.0
  Procurement, Defnese-wide:
    Special Operations Forces Munitions.............................6.0
                                                             __________
                                                             
      Total.......................................................200.0

       The conferees agree to require prior notification to the 
     congressional defense committees before funds are transferred 
     to the normal budget accounts for obligation.

[[Page H8476]]

       The conferees further agree to allow the Secretary of 
     Defense to transfer up to $1.0 billion of the amount 
     authorized in section 1501 to authorizations that were 
     reduced in Titles I, II, and III to reflect savings to be 
     achieved through the improved management of the Department's 
     contracts for services and the deferral of expenditures on 
     financial management systems, if the Secretary determines 
     that such savings are not achievable. This provision would 
     give the Secretary discretion to either: (1) achieve $1.0 
     billion of savings through management efficiencies as 
     provided in Titles I, II and III; or (2) transfer up to 
     $1.0 billion out of the contingency fund in lieu of 
     achieving such savings.

                   Legislative Provisions Not Adopted

     Air Force procurement
       The House bill contained a provision (sec. 1523) that would 
     authorize $383.2 million for specific Air Force procurement 
     programs in support of the war against terrorism.
       The Senate amendment contained no similar provision, but 
     the Senate amendment would authorize funding for these and 
     other procurement activities in Title I.
       The House recedes.
       The conferees agree to authorize funding for these 
     activities in Title I of this Act.
     Army procurement
       The House bill contained a provision (sec. 1521) that would 
     authorize $104.7 million for the Army for ammunition and 
     other procurement.
       The Senate amendment contained no similar provision, but 
     the Senate amendment would authorize funding for these and 
     other Army procurement activities in Title I.
       The House recedes.
       The conferees agree to authorize funding for these 
     activities in Title I of this Act.
     Authority for joint task forces to provide support to law 
         enforcement agencies conducting counter-terrorism 
         activities
       The House bill contained a provision (sec. 1552) that would 
     authorize a joint task force of the Department of Defense 
     that provides support to law enforcement agencies conducting 
     counterdrug activities to also provide, consistent with all 
     applicable laws and regulations, support to law enforcement 
     agencies conducting counterterrorism activities.
       The Senate amendment contained no similar provision.
       The House recedes.
     Authorized military construction and land acquisition 
         projects
       The House bill contained a provision (sec. 1531) that would 
     authorize $35.1 million for the construction of facilities in 
     Qatar; Naval Station Guantanamo Bay, Cuba; Naval Station 
     Rota, Spain; and Bolling Air Force Base, District of 
     Columbia.
       The Senate amendment contained no similar provision, but 
     Division B of the Senate amendment contained funding for 
     these projects in the military construction accounts of the 
     military departments.
       The House recedes.
       The conferees include funding for these projects in the 
     military construction authorizations in Division B of this 
     Act.
     Defense-Wide Activities procurement
       The House bill contained a provision (sec. 1524) that would 
     authorize $620.4 million for Defense-wide procurement.
       The Senate amendment contained no similar provision, but 
     the Senate amendment would authorize funding for these and 
     other Defense-wide procurement activities in Title I.
       The House recedes.
       The conferees agree to authorize funding for these 
     activities in Title I of this Act.
     Effective date
       The House bill contained a provision (sec. 1547) that would 
     establish effective dates for the wartime pay and allowance 
     increases proposed in this Title.
       The Senate amendment contained no similar provision.
       The House recedes.
     Increase in amount of death gratuity
       The House bill contained a provision (sec. 1546) that would 
     increase the death gratuity from $6,000 to $12,000.
       The Senate amendment contained no similar provision.
       The House recedes.
     Increase in rate for career enlisted flyer incentive pay

[[Page H8477]]

       The House bill contained a provision (sec. 1545) that would 
     increase the rate for career enlisted flyer incentive pay by 
     $50 per month for each category of recipient based on years 
     of service completed.
       The Senate amendment contained no similar provision.
       The House recedes.
     Increase in rate for diving duty special pay
       The House bill contained a provision (sec. 1543) that would 
     increase the rate for diving duty special pay for officers 
     from $240 per month to $290 per month and for enlisted 
     members from $340 per month to $390 per month.
       The Senate amendment contained no similar provision.
       The House recedes.
     Increase in rate for family separation allowance
       The House bill contained a provision (sec. 1541) that would 
     increase the rate for family separation allowance from $100 
     per month to $125 per month.
       The Senate amendment contained no similar provision.
       The House recedes.
     Increase in rate for imminent danger pay
       The House bill contained a provision (sec. 1544) that would 
     increase the rate for imminent danger pay from $150 to $250 
     per month.
       The Senate amendment contained no similar provision.
       The House recedes.
     Increase in rates for various hazardous duty incentive pays
       The House bill contained a provision (sec. 1542) that would 
     increase the rates for various hazardous duty incentive pays 
     by $50 per month.
       The Senate amendment contained no similar provision.
       The House recedes.
     Military personnel
       The House bill contained a provision (sec. 1529) that would 
     authorize $503.1 million for military personnel for the 
     conduct of operations in continuation of the war on 
     terrorism.
       The Senate amendment contained no similar provision.
       The House recedes.
     Navy and Marine Corps procurement
       The House bill contained a provision (sec. 1522) that would 
     authorize $884.8 million for specific Navy and Marine Corps 
     procurement programs in support of the war against terrorism.
       The Senate amendment contained no similar provision, but 
     the Senate amendment would authorize funding for these and 
     other procurement activities in Title I.
       The House recedes.
       The conferees agree to authorize funding for these 
     activities in Title I of this Act.
     Operation and Maintenance
       The House bill contained a provision (sec. 1528) that would 
     authorize $548.2 million for operation and maintenance for 
     the Army, Navy, Marine Corps, and Air Force.
       The Senate amendment contained no similar provision, but 
     the Senate amendment would authorize funding for these and 
     other Defense-wide operation and maintenance activities in 
     Title III.
       The House recedes.
       The conferees agree to authorize funding for these 
     activities in Title III of this Act.
     Research, Development, Test and Evaluation, Defense-wide
       The House bill contained a provision (sec. 1525) that would 
     authorize $390.1 million for Research, Development, Test and 
     Evaluation, Defense-wide for chemical and biological defense 
     activities.
       The Senate amendment contained no similar provision, but 
     the Senate amendment would authorize funding for these and 
     other research and development activities in Title II.
       The House recedes.
       The conferees agree to authorize funding for these 
     activities in Title II of this Act.

[[Page H8478]]

            DIVISION B--MILITARY CONSTRUCTION AUTHORIZATIONS

     Overview
       The budget for fiscal year 2003 requested authorization of 
     appropriations of $8,934.0 million for the military 
     construction and family housing construction and operation 
     accounts of the Department of Defense. An additional $594.4 
     million was requested for military construction projects in 
     the Defense Emergency Response Fund (DERF). The Army later 
     identified an additional $122.6 million in military 
     construction projects in the DERF that had been originally 
     categorized as operation and maintenance funding.
       The House bill would authorize $9,988.6 million for 
     military construction and family housing.
       The Senate amendment would authorize $10,178.9 million for 
     these accounts.
       The conferees recommend authorization of appropriations of 
     $10,423.6 million for the military construction and family 
     housing accounts of the Department of Defense for fiscal year 
     2003. The summary table that follows also reflects prior year 
     savings of $33.7 million to be derived from anticipated 
     rescissions. Including the budget authority impact of $53.0 
     million for a previously authorized project and the 
     anticipated rescissions of prior year funding, the conference 
     agreement is consistent with a budget authority level of 
     $10,442.9 million for military construction and family 
     housing.
       Projects that have been transferred into these accounts 
     from the DERF are displayed as changes to the original 
     military construction request in the tables that follow. 
     Excluding these transfers, the conferees agree to a net 
     increase of $772.6 million in military construction and 
     family housing funding.
       The House bill, the Senate amendment, and the conference 
     agreement reduced the military construction and family 
     housing accounts by $39.9 million to reflect the proper 
     accounting for the accrual of civilian personnel benefits 
     under current law, and by $44.6 million to reflect foreign 
     currency fluctuations. In addition, the conferees agree to 
     reductions of $54.5 million in the military construction 
     accounts to be achieved through a 0.9 percent reduction in 
     the rates charged for supervision, inspection, and overhead 
     on construction projects, and $57.0 million to reflect lower 
     inflation rates. These reductions shall not cancel any 
     military construction project authorized by this Act.
       The following tables list the amounts authorized to be 
     appropriated for the military construction and family housing 
     accounts and for each military construction and family 
     housing project.

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[[Page H8501]]

     Short title (sec. 2001)
       The House bill contained a provision (sec. 2001) that would 
     cite Division B of this Act as the Military Construction 
     Authorization Act for Fiscal Year 2003.
       The Senate amendment contained an identical provision (sec. 
     2001).
       The conference agreement includes this provision.

                            Title XXI--Army

     Overview
       The House bill would authorize $2,930.7 million for Army 
     military construction and family housing programs for fiscal 
     year 2003.
       The Senate amendment would authorize $3,010.3 million for 
     this purpose.
       The conferees recommend authorization of appropriations of 
     $3,021.5 million for Army military construction and family 
     housing for fiscal year 2003.

                       Items of Special Interest

     Fort Bliss, Texas
       Within the Army's military construction account, the 
     conferees agree to authorize $5.2 million to upgrade the 
     water system at Fort Bliss, Texas. Funds for this project are 
     to be used in conjunction with the $5.0 million authorized 
     for water system upgrades at that installation in the 
     National Defense Authorization Act for Fiscal Year 2002 
     (Public Law 107-107).
     Fort Dix, New Jersey
       The conferees recommend that, within authorized amounts for 
     unspecified minor construction, the Secretary of the Army use 
     $1.5 million for road construction in the vicinity of Fort 
     Dix, New Jersey, to compensate for road closures due to force 
     protection.

                     Legislative Provisions Adopted

     Authorized Army construction and land acquisition projects 
         (sec. 2101)
       The House bill contained a provision (sec. 2101) that would 
     authorize Army military construction projects for fiscal year 
     2003.
       The Senate amendment contained a similar provision (sec. 
     2101).
       The conference agreement includes this provision.
       The amounts authorized in the bill are listed on an 
     installation-by-installation basis. The state list of 
     projects contained in this report provides the binding list 
     of specific projects authorized at each location.
     Family housing (sec. 2102)
       The House bill included a provision (sec. 2102) that would 
     authorize new construction and planning and design of family 
     housing units for the Army for fiscal year 2003.
       The Senate amendment contained a similar provision (sec. 
     2102).
       The conference agreement includes this provision.
       The amounts authorized in the bill are listed on an 
     installation-by-installation basis. The state list of 
     projects contained in this report provides the binding list 
     of specific projects authorized at each location.
     Improvements to military family housing units (sec. 2103)
       The House bill contained a provision (sec. 2103) that would 
     authorize improvements to existing units of Army family 
     housing for fiscal year 2003.
       The Senate amendment contained a similar provision (sec. 
     2103).
       The conference agreement includes this provision.
     Authorization of appropriations, Army (sec. 2104)
       The House bill contained a provision (sec. 2104) that would 
     authorize specific appropriations for each line item 
     contained in the Army's military construction budget for 
     fiscal year 2003. This section would also provide an overall 
     limit on the amount the Army is authorized to spend on 
     military construction projects.
       The Senate amendment contained a similar provision (sec. 
     2104).
       The conference agreement includes this provision.
     Modification of authority to carry out certain fiscal year 
         2002 projects (sec. 2105)
       The House bill contained a provision (sec. 2105) that would 
     amend the table in section 2101 of the Military Construction 
     Authorization Act for Fiscal Year 2002 (division B of Public 
     Law 107-107) to increase the total project authorization 
     ceilings for military construction projects at Fort Carson, 
     Colorado, and Fort Jackson, South Carolina.
       The Senate amendment contained an identical provision (sec. 
     2105).
       The conference agreement includes this provision.
     Modification of authority to carry out certain fiscal year 
         2001 project (sec. 2106)
       The Senate amendment contained a provision (sec. 2109) that 
     would amend section 2101 of the Military Construction 
     Authorization Act for Fiscal Year 2001 (division B of Public 
     Law 106-398) to change the location for which funds were 
     authorized for a barracks complex from Camp Page, Korea, to 
     Camp Stanley, Korea.
       The House bill contained no similar provision.
       The House recedes.

                   Legislative Provisions Not Adopted

     Planning and design for anechoic chamber at White Sands 
         Missile Range, New Mexico
       The Senate amendment contained a provision (sec. 2110) that 
     would authorize $3.0 million for planning and design for an 
     anechoic chamber at White Sands Missile Range, New Mexico.
       The House bill contained no similar provision.
       The Senate recedes.
       The state list contained in this report describes the 
     conference agreement on funding for this project.

                            Title XXII--Navy

     Overview
       The House bill would authorize $2,514.0 million for Navy 
     military construction and family housing programs for fiscal 
     year 2003.
       The Senate amendment would authorize $2,476.2 million for 
     this purpose.
       The conferees recommend authorization of appropriations of 
     $2,532.9 million for Navy military construction and family 
     housing for fiscal year 2003.

                     Legislative Provisions Adopted

     Authorized Navy construction and land acquisition projects 
         (sec. 2201)
       The House bill contained a provision (sec. 2201) that would 
     authorize Navy military construction projects for fiscal year 
     2003.
       The Senate amendment contained a similar provision (sec. 
     2201).
       The conference agreement includes this provision.
       The amounts authorized in the bill are listed on an 
     installation-by-installation basis. The state list of 
     projects contained in this report provides the binding list 
     of specific projects authorized at each location.
     Family housing (sec. 2202)
       The House bill included a provision (sec. 2202) that would 
     authorize new construction and planning and design of family 
     housing units for the Navy for fiscal year 2003.
       The Senate amendment contained a similar provision (sec. 
     2202).
       The conference agreement includes this provision.
       The amounts authorized in the bill are listed on an 
     installation-by-installation basis. The state list of 
     projects contained in this report provides the binding list 
     of specific projects authorized at each location.
     Improvements to military family housing units (sec. 2203)
       The House bill contained a provision (sec. 2203) that would 
     authorize improvements to existing units of Navy family 
     housing for fiscal year 2003.
       The Senate amendment contained a similar provision (sec. 
     2203).
       The conference agreement includes this provision.
     Authorization of appropriations, Navy (sec. 2204)
       The House bill contained a provision (sec. 2204) that would 
     authorize specific appropriations for each line item 
     contained in the Navy's military construction budget for 
     fiscal year 2003. This section would also provide an overall 
     limit on the amount the Navy is authorized to spend on 
     military construction projects.
       The Senate amendment contained a similar provision (sec. 
     2204).
       The conference agreement includes this provision.
     Modification of authority to carry out certain fiscal year 
         2002 projects (sec. 2205)
       The House bill contained a provision (sec. 2205) that would 
     amend the table in section 2201 of the Military Construction 
     Authorization Act for Fiscal Year 2002 (division B of Public 
     Law 107-107) to provide for an increase in the amounts 
     authorized for military construction at Naval Station 
     Norfolk, Virginia.
       The Senate amendment contained a similar provision (sec. 
     2205) that would amend the Military Construction 
     Authorization Act for Fiscal Year 2002 (division B of Public 
     Law 107-107) to increase the total project authorization for 
     the projects at Naval Station, Norfolk, Virginia by $280,000. 
     The provision would also correct the number of housing units 
     authorized for a project at Quantico, Virginia from 60 units 
     to 39 units.
       The House recedes.

                         Title XXIII--Air Force

     Overview
       The House bill would authorize $2,488.3 million for Air 
     Force military construction and family housing programs for 
     fiscal year 2003.
       The Senate amendment would authorize $2,607.6 million for 
     this purpose.
       The conferees recommend authorization of appropriations of 
     $2,583.4 million for Air Force military construction and 
     family housing for fiscal year 2003.

                     Legislative Provisions Adopted

     Authorized Air Force construction and land acquisition 
         projects (sec. 2301)
       The House bill contained a provision (sec. 2301) that would 
     authorize Air Force military construction projects for fiscal 
     year 2003.
       The Senate amendment contained a similar provision (sec. 
     2301).
       The conference agreement includes this provision.
       The amounts authorized in the bill are listed on an 
     installation-by-installation basis. The state list of 
     projects contained in this report provides the binding list 
     of specific projects authorized at each location.
     Family housing (sec. 2302)
       The House bill included a provision (sec. 2302) that would 
     authorize new construction and planning and design of family 
     housing units for the Air Force for fiscal year 2003.
       The Senate amendment contained a similar provision (sec. 
     2302).

[[Page H8502]]

       The conference agreement includes this provision.
       The amounts authorized in the bill are listed on an 
     installation-by-installation basis. The state list of 
     projects contained in this report provides the binding list 
     of specific projects authorized at each location.
     Improvements to military family housing units (sec. 2303)
       The House bill contained a provision (sec. 2303) that would 
     authorize improvements to existing units of Air Force family 
     housing for fiscal year 2003.
       The Senate amendment contained a similar provision (sec. 
     2303).
       The conference agreement includes this provision.
     Authorization of appropriations, Air Force (sec. 2304)
       The House bill contained a provision (sec. 2304) that would 
     authorize specific appropriations for each line item 
     contained in the Air Force's military construction budget for 
     fiscal year 2003. This section would also provide an overall 
     limit on the amount the Air Force is authorized to spend on 
     military construction projects.
       The Senate amendment contained a similar provision (sec. 
     2304).
       The conference agreement includes this provision.
     Authority for use of military construction funds for 
         construction of public road near Aviano Air Base, Italy, 
         to replace road closed for force protection purposes 
         (sec. 2305)
       The Senate amendment contained a provision (sec. 2305) that 
     would authorize the Secretary of the Air Force to provide to 
     Italian authorities funds authorized for appropriation by 
     section 2304 of this Act for the construction of a public 
     road, plus associated improvements, to replace a public road 
     adjacent to Aviano Air Base, Italy, that was closed for force 
     protection purposes.
       The House bill contained no similar provision.
       The House recedes.

                   Legislative Provisions Not Adopted

     Additional project authorization for air traffic control 
         facility at Dover Air Force Base, Delaware
       The Senate amendment contained a provision (sec. 2306) that 
     would authorize the Secretary of the Air Force to carry out 
     the construction of a new air traffic control facility at 
     Dover Air Force Base, Delaware, in the amount of $7.5 
     million.
       The House bill contained no similar provision.
       The Senate recedes.
       The state list contained in this report describes the 
     conference agreement on funding for this project.
     Availability of funds for consolidation of materials 
         computational research facility at Wright-Patterson Air 
         Force Base, Ohio
       The Senate amendment contained a provision (sec. 2307) that 
     would authorize $15.2 million for Air Force military 
     construction to construct a project for the consolidation of 
     the materials computational research facility at Wright-
     Patterson Air Force Base, Ohio.
       The House bill contained no similar provision.
       The Senate recedes.
       The state list contained in this report describes the 
     conference agreement on funding for this project.

                      Title XXIV--Defense Agencies

     Overview
       The House bill would authorize $829.8 million for Defense 
     Agencies military construction and family housing programs 
     for fiscal year 2003. The bill would also authorize $545.1 
     million for base closure activities.
       The Senate amendment would authorize $771.8 million for 
     Defense Agencies military construction and family housing 
     programs and $545.1 million for base closure activities.
       The conferees recommend authorization of appropriations of 
     $856.2 million for Defense Agencies military construction and 
     family housing for fiscal year 2003. The conferees also 
     recommend authorization of appropriations of $561.1 million 
     for base closure activities, which includes an increase of 
     $20.0 million for environmental restoration at closed 
     facilities.

                     Legislative Provisions Adopted

     Authorized Defense Agencies construction and land acquisition 
         projects (sec. 2401)
       The House bill contained a provision (sec. 2401) that would 
     authorize Defense Agencies military construction projects for 
     fiscal year 2003.
       The Senate amendment contained a similar provision (sec. 
     2401).
       The conference agreement includes this provision.
       The amounts authorized in the bill are listed on an 
     installation-by-installation basis. The state list of 
     projects contained in this report provides the binding list 
     of specific projects authorized at each location.
     Improvements to military family housing units (sec. 2402)
       The House bill contained a provision (sec. 2402) that would 
     authorize improvements to existing units of Defense Agencies 
     family housing for fiscal year 2003.
       The Senate amendment contained a similar provision (sec. 
     2402).
       The conference agreement includes this provision.
     Energy conservation projects (sec. 2403)
       The House bill contained a provision (sec. 2403) that would 
     authorize the Secretary of Defense to carry out energy 
     conservation projects.
       The Senate amendment contained a similar provision (sec. 
     2403).
       The conference agreement includes this provision.
     Authorization of appropriations, Defense Agencies (sec. 2404)
       The House bill contained a provision (sec. 2404) that would 
     authorize specific appropriations for each line item 
     contained in the Defense Agencies' military construction 
     budgets for fiscal year 2003. This section would also provide 
     an overall limit on the amount the Defense Agencies are 
     authorized to spend on military construction projects.
       The Senate amendment contained a similar provision (sec. 
     2404).
       The conference agreement includes this provision.
     Modification of authority to carry out certain fiscal year 
         2000 project (sec. 2405)
       The House bill contained a provision (sec. 2405) that would 
     modify the table in section 2401 of the Military Construction 
     Authorization Act for Fiscal Year 2000 (division B of Public 
     Law 106-65) to provide for an increase in the amounts 
     authorized for military construction at Blue Grass Army 
     Depot, Kentucky.
       The Senate amendment contained an identical provision (sec. 
     2106).
       The conference agreement includes this provision.
     Modification of authority to carry out certain fiscal year 
         1999 project (sec. 2406)
       The House bill contained a provision (sec. 2406) that would 
     amend the table in section 2401 of the Military Construction 
     Authorization Act for Fiscal Year 1999 (division B of Public 
     Law 105-261) to provide for an increase in the amounts 
     authorized for military construction at Newport Army Depot, 
     Indiana.
       The Senate amendment contained a similar provision (sec. 
     2107).
       The Senate recedes.
     Modification of authority to carry out certain fiscal year 
         1997 project (sec. 2407)
       The House bill contained a provision (sec. 2407) that would 
     amend the table in section 2401 of the Military Construction 
     Authorization Act for Fiscal Year 1997 (division B of Public 
     Law 104-201) to provide for an increase in the amounts 
     authorized for military construction at Pueblo Chemical 
     Activity, Colorado.
       The Senate amendment contained an identical provision (sec. 
     2108).
       The conference agreement includes this provision.

   Title XXV--North Atlantic Treaty Organization Security Investment 
                                Program

     Authorized NATO construction and land acquisition projects 
         (sec. 2501)
       The House bill contained a provision (sec. 2501) that would 
     authorize the Secretary of Defense to make contributions to 
     the North Atlantic Treaty Organization security investment 
     program in an amount equal to the sum of the amount 
     specifically authorized in section 2502 of this bill and the 
     amount of recoupment due to the United States for 
     construction previously financed by the United States.
       The Senate amendment contained an identical provision (sec. 
     2501).
       The conference agreement includes this provision.
     Authorization of appropriations, NATO (sec. 2502)
       The House bill contained a provision (sec. 2502) that would 
     authorize appropriations of $168.2 million as the U.S. 
     contribution to the North Atlantic Treaty Organization (NATO) 
     security investment program.
       The Senate amendment contained an identical provision (sec. 
     2502).
       The conference agreement includes this provision.

            Title XXVI--Guard and Reserve Forces Facilities

     Overview
       The House bill would authorize $512.4 million for military 
     construction and land acquisition for fiscal year 2003 for 
     the Guard and Reserve components.
       The Senate amendment would authorize $599.6 million for 
     this purpose.
       The conferees recommend authorization of appropriations of 
     $701.3 million for military construction and land acquisition 
     for fiscal year 2003. This authorization would be distributed 
     as follows:

                         [Dollars in millions]

Army National Guard...........................................$ 236,236
Air National Guard..............................................204,215
Army Reserve.....................................................99,399
Naval and Marine Corps Reserve...................................75,801
Air Force Reserve................................................85,649
                                                             __________
                                                             
      Total.....................................................701,300

                       Items of Special Interest

     Planning and design, Army National Guard
       The conferees recommend that, within authorized amounts for 
     planning and design, the Secretary of the Army make $1.4 
     million available to complete planning and design activities 
     for a multi- purpose training range at Fort Indiantown Gap, 
     Pennsylvania.

                     Legislative Provisions Adopted

     Authorized Guard and Reserve construction and land 
         acquisition projects (sec. 2601)
       The House bill contained a provision (sec. 2601) that would 
     authorize appropriations for

[[Page H8503]]

     military construction for the Guard and Reserve by service 
     component for fiscal year 2003.
       The Senate amendment contained a similar provision (sec. 
     2601).
       The conference agreement includes this provision. The state 
     list of projects contained in this report provides the 
     binding list of specific projects authorized at each 
     location.

                   Legislative Provisions Not Adopted

     Army National Guard Reserve Center, Lane County, Oregon
       The Senate amendment contained a provision (sec. 2602) that 
     would authorize a $9.0 million increase in the Army National 
     Guard military construction program for the construction of 
     an additional phase of the Reserve Center in Lane County, 
     Oregon.
       The House bill contained no similar provision.
       The Senate recedes.
       The state list contained in this report describes the 
     conference agreement on funding for this project.
     Additional project authorization for composite support 
         facility for Illinois Air National Guard
       The Senate amendment contained a provision (sec. 2603) that 
     would authorize a $10.0 million increase in the Air National 
     Guard military construction program for the construction of 
     the Composite Support Facility for the 183rd Fighter Wing of 
     the Illinois Air National Guard.
       The House bill contained no similar provision.
       The Senate recedes.
       The state list contained in this report describes the 
     conference agreement on funding for this project.

        Title XXVII--Expiration and Extension of Authorizations

                     Legislative Provisions Adopted

     Expiration of authorizations and amounts required to be 
         specified by law (sec. 2701)
       The House bill contained a provision (sec. 2701) that would 
     provide that authorizations for military construction 
     projects, repair of real property, land acquisition, family 
     housing projects and facilities, contributions to the North 
     Atlantic Treaty Organization infrastructure program, and 
     guard and reserve projects will expire on October 1, 2005, or 
     the date of enactment of an act authorizing funds for 
     military construction for fiscal year 2006, whichever is 
     later. This expiration would not apply to authorizations for 
     which appropriated funds have been obligated before October 
     1, 2005, or the date of enactment of an act authorizing funds 
     for these projects, whichever is later.
       The Senate amendment contained an identical provision (sec. 
     2701).
       The conference agreement includes this provision.
     Extension of authorizations of certain fiscal year 2000 
         projects (sec. 2702)
       The House bill contained a provision (sec. 2702) that would 
     provide for the extension of certain fiscal year 1999 
     military construction project authorizations until October 1, 
     2003, or the date of the enactment of the act authorizing 
     funds for military construction for fiscal year 2004, 
     whichever is later.
       The Senate amendment contained a similar provision (sec. 
     2702).
       The House recedes.
     Extension of authorizations of certain fiscal year 1999 
         projects (sec. 2703)
       The House bill contained a provision (sec. 2703) that would 
     provide for the extension of certain fiscal year 1999 
     military construction project authorizations until October 1, 
     2003, or the date of the enactment of the act authorizing 
     funds for military construction for fiscal year 2004, 
     whichever is later.
       The Senate amendment contained an identical provision (sec. 
     2703).
       The conference agreement includes this provision.

                   Legislative Provisions Not Adopted

     Effective date
       The House bill contained a provision (sec. 2704) that would 
     provide that Titles XXI, XXII, XXIII, XXIV, XXV, and XXVI of 
     this bill shall take effect on October 1, 2002, or the date 
     of the enactment of this Act, whichever is later.
       The Senate amendment contained a similar provision (sec. 
     2704).
       Because the conference report was not adopted prior to 
     October 1, 2002, this provision is no longer required and was 
     not included in the conference agreement.

                    Title XXVIII--General Provisions

                       Items of Special Interest

     Blount Island, Jacksonville, Florida
       The conferees understand that the Secretary of the Navy and 
     business and government entities in Jacksonville, Florida, 
     have been unable to resolve what commercial activities may 
     continue on Blount Island, Jacksonville, Florida, upon 
     completion of several pending land acquisitions by the 
     Secretary. The conferees believe that in the course of 
     negotiating easements with these entities, the Secretary of 
     the Navy should consider that a waiver of regulations 
     pertaining to activities within the explosive safety quantity 
     distance arc has been in effect for over fifteen years and 
     that ammunition transshipment operations occur only 12 
     weekends annually. The conferees believe that both the Marine 
     Corps and commercial activities can safely coexist on Blount 
     Island and encourage both sides to continue to negotiate in 
     good faith.

                     Legislative Provisions Adopted

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

     Leasing of military family housing in Korea (sec. 2801)
       The House bill contained a provision (sec. 2803) that would 
     amend section 2828 of title 10, United States Code, to 
     authorize the Secretary of the Army to lease up to 2,400 
     units of family housing in Korea for a maximum lease amount 
     of $35,000 per year. This provision would also increase from 
     800 to 1,175 the number of units of family housing in Korea 
     that may be leased for no more than $25,000 per year.
       The Senate amendment contained a similar provision (sec. 
     2801).
       The House recedes.
     Modification of alternative authority for acquisition and 
         improvement of military housing (sec. 2802)
       The House bill contained a provision (sec. 2801) that would 
     amend several provisions of title 10, United States Code, to 
     provide the secretaries of the military departments with 
     additional flexibility in the management of family and 
     unaccompanied housing under alternate authorities. The 
     provision would amend section 2872a of title 10, United 
     States Code, to add police and fire protection services to 
     the services that may be provided by a service secretary 
     under the housing privatization authorities; would amend 
     section 2874 of title 10, United States Code, to permit 
     service secretaries to lease existing housing and incorporate 
     such housing into contracts negotiated under these 
     authorities; would repeal section 2879 of title 10, United 
     States Code; would amend section 2880 of title 10, United 
     States Code, to remove restrictions on space limitations by 
     grade for unaccompanied housing provided under these 
     authorities on a military installation; and would amend 
     section 2883 of title 10, United States Code, to consolidate 
     the existing separate family housing and unaccompanied 
     housing improvement funds into a single fund.
       The Senate amendment contained a provision (sec. 2803) that 
     would amend section 2874 of title 10, United States Code, to 
     permit service secretaries to lease existing housing and 
     incorporate such housing into contracts negotiated under 
     these authorities. The provision would repeal section 2879 of 
     title 10, United States Code, and make certain conforming 
     changes.
       The House recedes with an amendment that would amend 
     section 2872a of title 10, United States Code, to add police 
     and fire protection services to the list of services that a 
     service secretary may be provide under this authority.
     Pilot housing privatization authority for acquisition or 
         construction of military unaccompanied housing (sec. 
         2803)
       The House bill contained a provision (sec. 2804) that would 
     authorize the Secretary of the Navy to undertake no more than 
     three pilot projects within the United States and its 
     territories for the acquisition or construction of military 
     unaccompanied housing to be operated and maintained by 
     private sector entities. The provision would also authorize 
     the Secretary of Defense to set specific higher rates of 
     partial basic allowance for housing (BAH) for sailors or 
     marines assigned to this housing. The authorities would 
     expire September 30, 2007.
       The Senate amendment contained a provision (sec. 604) that 
     would authorize the Secretary of Defense to prescribe higher 
     partial basic allowance for housing rates. The rates would be 
     expected to approximate, but be lower than, current BAH rates 
     for unaccompanied junior enlisted personnel assigned to shore 
     commands where government-provided housing is not available. 
     The authority would expire in 2007.
       The Senate recedes with an amendment that would authorize a 
     partial BAH for members assigned to such projects and would 
     direct that the Department of Defense Military Unaccompanied 
     Housing Improvement Fund be used to fund the pilot program.
     Repeal of source requirements for family housing construction 
         overseas (sec. 2804)
       The Senate amendment contained a provision (sec. 2802) that 
     would repeal section 803 of the Military Construction 
     Authorization Act, 1984 (Public Law 98-115), which requires 
     the use of housing manufactured or fabricated in the United 
     States in family housing constructed in foreign countries.
       The House bill contained no similar provision.
       The House recedes.
     Availability of energy cost savings realized at military 
         installations (sec. 2805)
       The conferees agree to include a provision that would 
     modify section 2865 of title 10, United States Code, to allow 
     up to two-thirds of energy savings realized from energy 
     savings contracts to remain available until expended. Under 
     current law, such funds are available for up to two years. 
     The conferees believe this change would allow the military 
     departments to make more efficient use of savings realized 
     under Energy Savings Performance Contracts.

        Subtitle B--Real Property and Facilities Administration

     Agreements to limit encroachments and other constraints on 
         military training, testing, and operations (sec. 2811)
       The House bill contained a provision (sec. 2811) that would 
     authorize the secretaries of

[[Page H8504]]

     the military departments to enter into agreements with 
     private entities to acquire interests in lands adjacent to 
     military installations that would serve to limit development 
     or preserve habitat in the vicinity of military installations 
     in order to protect military training and operations. The 
     House bill would also allow the secretaries of the military 
     departments to enter into agreements to acquire water rights.
       The Senate amendment contained a similar provision (sec. 
     2811).
       The Senate recedes with a technical amendment.
     Conveyance of surplus real property for natural resource 
         conservation purposes (sec. 2812)
       The House bill contained a provision (sec. 2812) that would 
     authorize the secretaries of the military departments to 
     convey surplus real property to State or local governments or 
     to nonprofit entities who have as their primary purpose the 
     conservation of open space or natural resources. Property 
     would be conveyed under this authority under the condition 
     that it be used to preserve open space or the natural 
     resources on such property. Any property conveyed that was no 
     longer being used for such purposes would revert to the 
     United States.
       In addition, any subsequent conveyance would be subject to 
     secretarial approval and to the condition that the property 
     be maintained for natural resource conservation in 
     perpetuity. Any property no longer being maintained in 
     accordance with these provisions would revert to the United 
     States.
       The Senate amendment contained a similar provision (sec. 
     2812) that would require prior notice to Congress before any 
     subsequent conveyance of the property.
       The Senate recedes with an amendment that would also 
     require prior notice to Congress before any release of 
     covenants on such property.
     Modification of demonstration program on reduction in long-
         term facility maintenance costs (sec. 2813)
       The House bill contained a provision (sec. 2814) that would 
     authorize the Secretary of Defense to conduct a demonstration 
     program to assess whether the inclusion of facility 
     maintenance requirements in military construction contracts 
     may reduce the long-term facility maintenance costs of the 
     military departments. The program would be limited to 12 
     contracts, and would be in addition to similar authority 
     provided to the Secretary of the Army by section 2814 of the 
     Military Construction Authorization Act for Fiscal Year 2002 
     (division B of Public Law 107-107).
       The Senate amendment contained a similar provision (sec. 
     2813) that would amend section 2814 of the Military 
     Construction Act for Fiscal Year 2002 (division B of Public 
     Law 107-107) to authorize the Department of Defense to expand 
     the number of demonstration projects on reduction of long-
     term facility maintenance costs from three to 12. The 
     provision would amend that act to expand the program to the 
     Department of the Navy and the Department of the Air Force 
     while providing for the continuation of ongoing Army 
     demonstration projects.
       The House recedes with an amendment that would allow each 
     military department to enter into up to 12 contracts as part 
     of the demonstration program.
     Expanded authority to transfer property at military 
         installations to be closed to persons who construct or 
         provide military family housing (sec. 2814)
       The House bill contained a provision (sec. 2815) that would 
     amend section 204 of the Defense Authorization Amendments and 
     Base Closure and Realignment Act (Public Law 100-526) and 
     section 2905 of the Defense Base Closure and Realignment Act 
     of 1990 (Public Law 101-510) to provide greater flexibility 
     to the secretary of a military department to exchange 
     property at a closed military installation for military 
     family housing that is needed at other installations, even if 
     the property to be exchanged was identified as essential to 
     the reuse plan at the closing installation.
       The Senate amendment contained no similar provision.
       The Senate recedes.
       The conferees direct the secretaries of the military 
     departments to consult with and take into consideration the 
     views of the local redevelopment agency prior to entering 
     into an agreement to transfer any property at a closed 
     military installation to a third party in exchange for the 
     construction of military housing at another location.

                      Subtitle C--Land Conveyances

                        Part I--Army Conveyances

     Transfer of jurisdiction, Fort McClellan, Alabama, to 
         establish Mountain Longleaf National Wildlife Refuge 
         (sec. 2821)
       The conferees agree to include a provision that would 
     direct the Secretary of the Army to transfer approximately 
     7,600 acres of real property at Fort McClellan, Alabama, to 
     the Secretary of the Interior for the purpose of establishing 
     the Mountain Longleaf National Wildlife Refuge. The Secretary 
     of the Army would retain responsibility for ordnance and 
     munitions on the property. The provision would authorize the 
     Secretary of the Army to provide up to $500,000 from the Base 
     Realignment and Closure Account to the Secretary of the 
     Interior to facilitate the transfer of the property and 
     support environmental research.
     Land conveyances, lands in Alaska no longer required for 
         National Guard purposes (sec. 2822)
       The House bill contained a provision (sec. 2821) that would 
     authorize the Secretary of the Army to convey to the State of 
     Alaska, a local government entity, or Native corporation in 
     the State of Alaska certain parcels of real estate in the 
     National Wildlife Refuge System in Alaska that are excess to 
     the needs of the Alaska National Guard.
       The Senate amendment contained a similar provision (sec. 
     2821).
       The Senate recedes.
     Land conveyance, Sunflower Army Ammunition Plant, Kansas 
         (sec. 2823)
       The Senate amendment contained a provision (sec. 2832) that 
     would authorize the Secretary of the Army or the 
     Administrator of the General Services Administration to 
     convey approximately 2,000 acres at the former Sunflower Army 
     Ammunition Plant, Kansas, to the Johnson County Park and 
     Recreation District, Kansas, for recreational purposes.
       The House bill contained no similar provision.
       The House recedes with an amendment that would authorize 
     only the Administrator of General Services Administration to 
     convey the property. The amendment would also make certain 
     technical and conforming changes.
     Land conveyances, Bluegrass Army Depot, Richmond, Kentucky 
         (sec. 2824)
       The Senate amendment contained a provision (sec. 2833) that 
     would authorize the Secretary of the Army to convey 10 acres, 
     without consideration, at Blue Grass Army Depot, Kentucky, to 
     Madison County, Kentucky, for the purpose of constructing a 
     veterans' center. The property could revert to the United 
     States if not being used for the intended purpose.
       The House bill contained no similar provision.
       The House recedes with an amendment that would also 
     authorize the Secretary to convey to the county, without 
     consideration, an additional three acres for the purpose of 
     constructing an educational center and historic museum and 
     would permit the Secretary to require reimbursement to the 
     Government for administrative costs associated with these 
     conveyances. The conferees further agree to require 
     reimbursement for any excess costs that result from a request 
     by the recipient for any environmental assessment or other 
     activities beyond those considered reasonable and necessary 
     to convey this property in compliance with existing law.
     Land conveyance, Fort Campbell, Kentucky (sec. 2825)
       The House bill contained a provision (sec. 2822) that would 
     authorize the Secretary of the Army to convey, without 
     consideration, a parcel of real property at Fort Campbell, 
     Kentucky, consisting of approximately 50 acres containing an 
     abandoned railroad spur, to the City of Hopkinsville, 
     Kentucky. The property would be used by the City for storm 
     water management, recreation, and other public purposes. The 
     cost of any surveys necessary for the conveyance would be 
     borne by the City.
       The Senate amendment contained a similar provision (sec. 
     2822) that would require, as a condition of the conveyance, 
     the City to reimburse the Secretary for costs incurred to 
     carry out the conveyance.
       The House recedes with an amendment that would permit the 
     Secretary to require reimbursement to the Government for 
     administrative costs associated with this conveyance. The 
     conferees further agree to require reimbursement for any 
     excess costs that result from a request by the recipient for 
     any environmental assessment or other activities beyond those 
     considered reasonable and necessary to convey the property in 
     compliance with existing law.
     Land conveyance, Army Reserve Training Center, Buffalo, 
         Minnesota (sec. 2826)
       The House bill contained a provision (sec. 2823) that would 
     authorize the Secretary of the Army to convey, without 
     consideration, a parcel of real property, with improvements, 
     to the Buffalo Independent School District 877 of Buffalo, 
     Minnesota. The property is to be used by the school district 
     as a learning center. The cost of any surveys necessary for 
     the conveyance would be borne by the school district.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would permit the 
     Secretary to require reimbursement to the Government for 
     administrative costs associated with this conveyance. The 
     conferees further agree to require reimbursement for any 
     excess costs that result from a request by the recipient for 
     any environmental assessment or other activities beyond those 
     considered reasonable and necessary to convey the property in 
     compliance with existing law.
     Land conveyance, Fort Monmouth, New Jersey (sec. 2827)
       The House bill contained a provision (sec. 2826) that would 
     authorize the Secretary of the Army to sell a parcel of land 
     consisting of approximately 64 acres of military family 
     housing known as Howard Commons and located at Fort Monmouth, 
     New Jersey. The provision would specify that the sale would 
     be made on a competitive basis and would be at no less than 
     fair market value. As compensation the Secretary may accept 
     payment in-kind that would build replacement facilities or 
     rehabilitate existing military family housing at Fort 
     Monmouth.

[[Page H8505]]

       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would authorize 
     either the Secretary of the Army or the Administrator of the 
     General Services Administration to carry out the conveyance. 
     The amendment would also make certain conforming changes and 
     require the Secretary of the Army to notify the congressional 
     defense committees in the event the payment in-kind takes the 
     form of new construction.
     Land conveyance, Fort Bliss, Texas (sec. 2828)
       The House bill contained a provision (sec. 2824) that would 
     authorize the Secretary of the Army to convey, without 
     consideration, a parcel of real property at Fort Bliss, 
     Texas, consisting of approximately 44 acres with and without 
     improvements, to the State of Texas. The property would be 
     used by the State for the construction of a veterans' nursing 
     home and could revert to the United States if not being used 
     for the intended purpose. The cost of any surveys necessary 
     for the conveyance would be borne by the State.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would permit the 
     Secretary to require reimbursement to the Government for 
     administrative costs associated with this conveyance. The 
     conferees further agree to require reimbursement for any 
     excess costs that result from a request by the recipient for 
     any environmental assessment or other activities beyond those 
     considered reasonable and necessary to convey the property in 
     compliance with existing law.
     Land conveyance, Fort Hood, Texas (sec. 2829)
       The House bill contained a provision (sec. 2825) that would 
     authorize the Secretary of the Army to convey, without 
     consideration, a parcel of real estate at Fort Hood, Texas, 
     consisting of approximately 174 acres with and 
     without improvements, to the Veterans Land Board of the 
     State of Texas. The property would be used by the State to 
     establish a State-run veterans' cemetery. The cost of any 
     surveys necessary for the conveyance would be borne by the 
     Board.
       The Senate amendment contained a similar provision (sec. 
     2829) which provided that the property could revert to the 
     United States if not being used for the intended purpose.
       The House recedes with an amendment that would permit the 
     Secretary to require reimbursement to the Government for 
     administrative costs associated with this conveyance. The 
     conferees further agree to require reimbursement for any 
     excess costs that result from a request by the recipient for 
     any environmental assessment or other activities beyond those 
     considered reasonable and necessary to convey the property in 
     compliance with existing law.
     Land conveyances, Engineer Proving Ground, Fort Belvoir, 
         Virginia (sec. 2830)
       The Senate amendment contained a provision (sec. 2830) that 
     would authorize the Secretary of the Army to convey, without 
     consideration, approximately 135 acres at the Engineer 
     Proving Ground, Fort Belvoir, Virginia to Fairfax County, 
     Virginia for use as a park or recreational purposes. The 
     provision would further authorize the Secretary to convey, at 
     fair market value using competitive procedures, the remaining 
     acreage at the Engineer Proving Ground. The compensation 
     received by the Secretary could be in cash or in the form of 
     in-kind consideration for maintenance, improvement, 
     alteration, repair, restoration, or construction of 
     facilities at Fort Belvoir. The provision would repeal 
     section 2821, as amended, of the National Defense 
     Authorization Act for Fiscal Year 1990 and 1991 (Public Law 
     101-189) relating to the Engineer Proving Ground.
       The House bill contained no similar provision.
       The House recedes with an amendment that would authorize 
     either the Secretary of the Army or the Administrator of the 
     General Services Administration to convey the balance of the 
     property. The amendment would also direct that the 
     congressional defense committees be notified when payment in-
     kind involves the construction of new facilities. The 
     amendment would also make certain conforming changes.

                       Part II--Navy Conveyances

     Land conveyance, Marine Corps Air Station, Miramar, San 
         Diego, California (sec. 2831)
       The House bill contained a provision (sec. 2831) that would 
     authorize the Secretary of the Navy to convey a parcel of 
     real property at Marine Corps Air Station Miramar, San Diego, 
     California, to ENPEX Corporation. As consideration, the 
     provision would require that the corporation convey to the 
     United States a parcel of real property in the San Diego 
     area, and if that parcel does not contain housing suitable 
     for use as military family housing, the corporation would 
     construct family housing and convey such housing and 
     underlying real estate to the Secretary of the Navy. The 
     provision would also require that the value of the housing 
     and real estate to be acquired by the Secretary be of at 
     least equal value to real estate being conveyed and would 
     restrict the use of the land conveyed by the Secretary to the 
     generation of electric power.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Modification of authority for land transfer and conveyance, 
         Naval Security Group Activity, Winter Harbor, Maine (sec. 
         2832)
       The Senate amendment contained a provision (sec. 2823) that 
     would amend section 2845(b) of the Military Construction Act 
     for Fiscal Year 2002 (division B of Public Law 107-107) to 
     authorize the Secretary of the Navy to convey to the State of 
     Maine, a political subdivision of the State, or any tax-
     supported agency in the State, without consideration, 
     approximately 50 acres known as the Corea Operating Site and 
     approximately 23 acres comprising three parcels containing 
     family housing. The provision would further authorize the 
     Secretary to convey approximately 404 acres of the Corea site 
     to the Secretary of the Interior for inclusion in the 
     National Wildlife Refuge System, as requested by the 
     Department of the Interior pursuant to the federal screening 
     required by section 2696 of title 10, United States Code.
       The House bill amendment contained no similar provision.
       The House recedes with a technical amendment.
     Land conveyance, Westover Air Reserve Base, Massachusetts 
         (sec. 2833)
       The Senate amendment contained a provision (sec. 2824) that 
     would authorize the Secretary of the Navy to convey, without 
     consideration, to the City of Chicopee, Massachusetts, 
     property consisting of 30.4 acres, including 133 housing 
     units and other improvements that are no longer required 
     for defense purposes, located at Westover Air Reserve 
     Base, Massachusetts. The property would be used by the 
     city for economic development. The provision would 
     authorize the Secretary to require the City of Chicopee to 
     reimburse the Navy for the administrative costs related to 
     the conveyance.
       The House bill contained no similar provision.
       The House recedes with an amendment that would require 
     reimbursement for any excess costs that result from a request 
     by the recipient for any environmental assessment or other 
     activities beyond those considered reasonable and necessary 
     to convey the property in compliance with existing law.
     Land conveyance, Naval Station, Newport, Rhode Island (sec. 
         2834)
       The Senate amendment contained a provision (sec. 2825) that 
     would authorize the Secretary of the Navy to convey to the 
     State of Rhode Island, or any political subdivision thereof, 
     a parcel of real property consisting of approximately 34 
     acres, with any improvements thereon, known as the Melville 
     Marina site. The conveyance would be by sale for fair market 
     value.
       The House bill contained no similar provision.
       The House recedes.
     Land exchange and boundary adjustments, Marine Corps Base, 
         Quantico, and Prince William Forest Park, Virginia (sec. 
         2835)
       The House bill contained a provision (sec. 2832) that would 
     authorize the Secretary of the Interior and the Secretary of 
     the Navy to adjust the boundaries of Marine Corps Base, 
     Quantico, Virginia, and Prince William Forest Park, Virginia. 
     The boundary adjustment would require the Secretary of the 
     Navy to transfer approximately 352 acres of land to the 
     administrative jurisdiction of the Secretary of the Interior 
     and would require the Secretary of the Interior to transfer 
     approximately 3,400 acres of land to the administrative 
     jurisdiction of the Secretary of the Navy.
       The Senate amendment contained no similar provision.
       The Senate recedes with a technical and clarifying 
     amendment.

                    Part III--Air Force Conveyances

     Modification of land conveyance, Los Angeles Air Force Base, 
         California (sec. 2841)
       The conferees agree to include a provision that would 
     modify section 2861 of the Floyd D. Spence National Defense 
     Authorization Act for Fiscal Year 2001 (Public Law 106-398) 
     to extend the time limitation on a leaseback exercised under 
     that authority, if any, from ten to thirty years.
     Land exchange, Buckley Air Force Base, Colorado (sec. 2842)
       The Senate amendment contained a provision (sec. 2826) that 
     would authorize the Secretary of the Air Force to convey to 
     the State of Colorado property consisting of approximately 72 
     acres, including improvements, known as the Watkins 
     Communication Site in Arapahoe County, Colorado. In exchange, 
     the State would convey to the Air Force real property 
     consisting of approximately 41 acres, including improvements, 
     that is contiguous to Buckley Air Force Base, Colorado. The 
     property conveyed to the Air Force would be used to build 
     additional housing and would not be subject to general land 
     laws, including mining and mineral and geothermal leasing 
     laws. The provision would authorize additional terms and 
     conditions, which may include a payment by one party to the 
     other to reflect a difference in the value of the two parcels 
     of property. Because the acquisition of this land had not yet 
     received the approval normally required by the Office of the 
     Secretary of Defense, the provision specified that this 
     exchange would require the concurrence of the Secretary of 
     Defense.
       The House bill contained no similar provision.
       The House recedes with an amendment that would specify that 
     the purpose of the conveyance is for the construction of 
     military family housing. Since the Secretary of

[[Page H8506]]

     Defense has approved the required land acquisition waiver, 
     the amendment would also strike the limitation that the 
     Secretary of Defense must concur with the conveyance.
     Land conveyances, Wendover Air Force Base Auxiliary Field, 
         Nevada (sec. 2843)
       The House bill contained a provision (sec. 2841) that would 
     authorize the Secretary of the Interior and the Secretary of 
     the Air Force to convey certain parcels of real property at 
     Wendover Air Force Base Auxiliary Field, Nevada, to the City 
     of West Wendover, Nevada, and Tooele County, Utah, without 
     consideration, for the purpose of establishing a runway 
     protection zone and the development of an industrial park.
       The Senate amendment contained a similar provision (sec. 
     2828).
       The Senate recedes with a technical amendment.

                       Subtitle D--Other Matters

     Master plan for use of Navy Annex, Arlington, Virginia (sec. 
         2851)
       The Senate amendment contained a provision (sec. 2831) that 
     would repeal title XXIX of the Military Construction 
     Authorization Act for Fiscal Year 2000 (division B of Public 
     Law 106-65) regarding the Commission on the National Military 
     Museum. The provision would also amend section 2881 of that 
     Act to require the Secretary of Defense to submit a master 
     plan for the use of the Navy Annex, Arlington, Virginia, no 
     later than 180 days after enactment of the bill. The 
     provision would further direct that the master plan not delay 
     the construction of the Air Force Memorial.
       The House bill contained no similar provision.
       The House recedes with an amendment that would delete the 
     language referring to the National Military Museum.
     Sale of excess treated water and wastewater treatment 
         capacity, Marine Corps Base, Camp Lejeune, North Carolina 
         (sec. 2852)
       The House bill contained a provision (sec. 2862) that would 
     permit the Secretary of the Navy to enter into an agreement 
     that would allow Camp Lejeune, North Carolina, to provide 
     treated water and wastewater treatment services to Onslow 
     County, North Carolina, if the Secretary determines that such 
     an agreement is in the public interest and will not interfere 
     with current or future utility needs at Camp Lejeune. The 
     county would be required to reimburse the Navy for the fair 
     market value of the services provided, and any amounts paid 
     would be credited to the base operations and maintenance 
     accounts of Camp Lejeune.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Conveyance of real property, Adak Naval Complex, Alaska, and 
         related land conveyances (sec. 2853)
       The House bill contained a provision (sec. 2863) that would 
     ratify an agreement made by the Secretary of the Interior, 
     the Secretary of the Navy, and the Aleut Corporation in 
     September 2000 concerning the reuse of the Adak Naval 
     Complex, Alaska, and other related parcels of land. The 
     agreement would provide that real estate on Adak Island 
     withdrawn for use by the Secretary of the Navy may be 
     transferred to the Aleut Corporation without regard to the 
     requirements of section 1621 of title 42, United States Code, 
     pertaining to lands in the Alaska Maritime National Wildlife 
     Refuge. In return, the Aleut Corporation would agree to 
     transfer to the Secretary of the Interior at least 36,000 
     acres of land suitable for inclusion in the Alaska Maritime 
     National Wildlife Refuge.
       The Senate amendment contained no similar provision.
       On August 1, 2002, the Senate passed S. 1325, a bill that 
     was nearly identical to the House provision. The House passed 
     S. 1325 on September 24, 2002, and it was signed into law by 
     the President on October 11, 2002, as Public Law 107-239.
       The Senate recedes with an amendment that would amend S. 
     1325 by adding the language contained in subsection (g) of 
     the House bill regarding the tax basis of property received 
     under the ratified agreement.
     Special requirement for adding military installation to 
         closure list (sec. 2854)
       The House bill contained a provision (sec. 2864) that would 
     amend the Defense Base Closure and Realignment Act of 1990 
     (title XXIX of Public Law 101-510) to require that in order 
     for the base closure commission to add a base to the list 
     proposed by the Secretary of Defense in the 2005 base closure 
     round, the commission would have to vote unanimously to add 
     the base to the list, and at least two commissioners would 
     have to visit that base during the commission's review of the 
     list.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would provide 
     that in order for the commission to recommend closure of a 
     base that is added to the Secretary's list for consideration 
     by the commission, at least two commissioners must visit any 
     such base before the commission holds its final vote and 
     submits its recommendations to the President.

                   Legislative Provisions Not Adopted

     Easement for construction of roads or highways, Marine Corps 
         Base, Camp Pendleton, California
       The House bill contained a provision (sec. 2861) that would 
     amend section 2851 of the Military Construction Authorization 
     Act for Fiscal Year 1999 (division B of Public Law 105-261), 
     as previously amended by section 2867 of the National Defense 
     Authorization Act for Fiscal Year 2002 (Public Law 107-107), 
     by providing that provisions of California state law could 
     not prevent the Secretary of the Navy from granting an 
     easement for a proposed road or highway across federal 
     property at Camp Pendleton, California, and that State law 
     would not apply to the construction, operation, or 
     maintenance of any such road by the Foothill/Eastern 
     Transportation Corridor Agency.
       The Senate amendment contained no similar provision.
       The House recedes.
     Land acquisition, Boundary Channel Drive Site, Arlington
       The Senate amendment contained a provision (sec. 2827) that 
     would authorize the Secretary of Defense, using amounts 
     authorized to be appropriated by section 2401, to acquire 
     approximately 7.2 acres of real property in Arlington County, 
     Virginia, known as the Boundary Channel Drive Site. The 
     provision would direct that, upon the purchase of the site, 
     the property be included in the Pentagon Reservation as 
     defined in section 2674 (f)(1) of title 10, United States 
     Code.
       The House bill contained no similar provision.
       The Senate recedes.
     National emergency exemption from screening and other 
         requirements of McKinney-Vento Homeless Assistance Act 
         for property used in support of response activities
       The House bill contained a provision (sec. 2813) that would 
     amend section 11411 of title 42, United States Code, to 
     provide an exception to the requirement to screen excess or 
     surplus property for various other uses when the property may 
     be needed by federal, state, or local agencies to support 
     response efforts in times of war, national emergency, or a 
     major disaster.
       The Senate amendment contained no similar provision.
       The House recedes.
     Transfer of funds for acquisition of replacement property for 
         National Wildlife Refuge system lands in Nevada
       The Senate amendment contained a provision (sec. 2841) that 
     would authorize the Secretary of the Air Force to transfer 
     $15.0 million in funds authorized to be appropriated to the 
     Air Force for fiscal year 2003 for land acquisition at Nellis 
     Air Force Base, Nevada, to the United States Fish and 
     Wildlife Service to purchase replacement lands for the 
     National Wildlife Refuge (NWR) system in Nevada. These lands 
     would replace lands removed from the NWR system and withdrawn 
     for military training by section 3011(b) of the Military 
     Lands Withdrawal Act of 1999 (title XXX of Public Law 106-
     65).
       The House bill contained no similar provision.
       The Senate recedes.

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

      Title XXXI--Department of Energy National Security Programs

     Overview
       Title XXXI authorizes appropriations for atomic energy 
     defense activities of the Department of Energy (DOE) for 
     fiscal year 2003, including: the purchase, construction, and 
     acquisition of plant and capital equipment; research and 
     development; nuclear weapons; naval nuclear propulsion; 
     environmental restoration and waste management; operating 
     expenses; and other expenses necessary to carry out the 
     purposes of the Department of Energy Organization Act (Public 
     Law 95-91). The title would authorize appropriations in four 
     categories: National Nuclear Security Administration (NNSA); 
     defense environmental management; other defense activities; 
     and defense nuclear waste disposal.
       The budget request for atomic energy defense activities at 
     the Department of Energy totaled $15.4 billion, a 4.4 percent 
     increase above the fiscal year 2002 level. Of the total 
     amount requested, $8.0 billion would be for the National 
     Nuclear Security Administration, of which $5.9 billion would 
     be for weapons activities, $1.1 billion would be for defense 
     nuclear nonproliferation activities, $708.0 million would be 
     for naval reactors, and $347.7 million would be for the 
     Office of the Administrator; $6.6 billion would be for 
     defense environmental management, of which, $4.6 billion 
     would be for defense environmental restoration and waste 
     management activities, $800.0 million for environmental 
     management cleanup reform, $1.1 billion would be for defense 
     facilities closure projects, and $158.4 million would be for 
     defense environmental management privatization; $472.2 
     million would be for other defense activities; and $315.0 
     million would be for defense nuclear waste disposal.
       The conferees agree to authorize $15.6 billion for atomic 
     energy defense activities at the Department of Energy, an 
     increase of $142.0 million above the budget request. The 
     conferees agree to authorize $8.0 billion for the NNSA, a 
     reduction of $0.2 million to the budget request. Of the 
     amounts authorized for the NNSA, $5.9 billion would be for 
     weapons activities, $1.1 billion would be for defense nuclear 
     nonproliferation activities, $706.8 million would be for 
     naval reactors, and $325.9 million would be for the Office of 
     the Administrator. The conferees agree to authorize $6.8 
     billion for the defense environmental management activities, 
     an increase

[[Page H8507]]

     of $151.8 million above the budget request. Of the amounts 
     authorized for defense environmental management, $4.5 billion 
     would be for defense environmental restoration and waste 
     management activities, $982.0 million would be for 
     environmental management cleanup reform, $1.1 billion would 
     be for defense facilities closure projects, and $158.4 
     million would be for defense environmental management 
     privatization. The conferees agree to authorize $462.7 
     million for other defense activities, a decrease of $9.5 
     million. The amount authorized for other defense activities 
     would include $27.7 million for energy security and 
     assurance, $185.5 million for the Office of Security, $41.2 
     million for intelligence, $46.0 million for 
     counterintelligence, $22.4 million for independent oversight 
     and performance assurance, $99.0 million for environmental 
     safety and health; $19.7 million for worker and community 
     transition, $25.6 million for national security program 
     administration support and $2.9 million for the Office of 
     Hearing and Appeals. The conferees agree to authorize $315.0 
     million for defense nuclear waste disposal.
       The following table summarizes the budget request and the 
     authorizations:

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                       Items of Special Interest

     Management of the National Nuclear Security Administration
       The National Defense Authorization Act for Fiscal Year 2002 
     (Public Law 107-107), which was enacted on December 28, 2001, 
     amended the National Nuclear Security Administration Act, at 
     the request of the Administrator, to create a new position of 
     Deputy Administrator for the National Nuclear Security 
     Administration (NNSA). As of September 2002 the President has 
     not submitted a nominee for that position, and it remains 
     vacant. In July 2002, the Administrator of the NNSA resigned 
     to take a new position. No nominee has been submitted for the 
     Administrator position.
       The NNSA was created by Congress to provide clear lines of 
     authority and to streamline the management of the 
     nonproliferation and defense programs at the Department of 
     Energy. The conferees are concerned that without permanent 
     leadership in these two senior NNSA positions, much of the 
     progress that has been made at the NNSA, particularly in 
     efforts to restructure the headquarters and field 
     organizations, may be in jeopardy. The conferees support the 
     work of the two programmatic deputies at the NNSA and believe 
     that each has contributed significantly to the progress of 
     the organization. Nevertheless, the conferees believe that 
     the two most senior positions in the NNSA should be 
     permanently filled. Any individual, no matter how talented 
     and well-qualified, is at a disadvantage when serving in an 
     acting capacity. The conferees strongly encourage the 
     President to submit qualified nominees for the two senior 
     NNSA positions as quickly as possible.

                     Legislative Provisions Adopted

         Subtitle A--National Security Programs Authorizations

     National Nuclear Security Administration (sec. 3101)
       The House bill contained a provision (sec. 3101) that would 
     authorize $8.0 billion for the National Nuclear Security 
     Administration (NNSA).
       The Senate amendment contained a similar provision (sec. 
     3101) that would authorize $8.2 billion for the NNSA.
       The conferees agree to include a provision that would 
     authorize $8.0 billion for the activities of the NNSA after 
     offsets, a reduction of $0.2 million to the budget request. 
     The conferees note that each program is authorized at the 
     full amount reflected in the individual program line prior to 
     offsets. The conferees have reduced program direction 
     accounts to reflect the proper accounting for the accrual of 
     civilian personnel benefits under current law.
       The budget request included $451.8 million for the high 
     energy density physics campaign, of which $237.7 million was 
     for operation and maintenance and $214.0 million was for 
     construction of the National Ignition Facility (NIF). The 
     conferees agree to include $487.5 million for the campaign, 
     an increase of $35.7 million above the budget request for 
     operation and maintenance to keep the cryogenic target and 
     NIF diagnostics work on schedule to support the planned NIF 
     ignition schedule, and to support the high average power 
     laser and pettawatt laser initiatives.
       The budget request included $194.5 million for the pit 
     manufacturing and certification campaign. The conferees agree 
     to include $199.5 million, an increase of $5.0 million above 
     the budget request to support the Environmental Impact 
     Statement for a new pit facility.
       The budget request included $1.7 billion for Readiness in 
     Technical Base and Facilities (RTBF) of which $949.9 million 
     was for operation of facilities and $37.7 million was for 
     special projects. The conferees agree to include $1.0 billion 
     for operation of facilities, an increase of $72.0 million 
     above the budget request of which $25.0 million is for the 
     Pantex facility, $20.0 million is for the Y-12 facility, and 
     $27.0 million is for the Nevada Test Site for the Center for 
     Combating Terrorism. The conferees agree to provide $44.7 
     million for special projects, an increase of $6.9 million 
     above the budget request for the annual payment to the Los 
     Alamos Foundation.
       The budget request included $14.6 million for International 
     Nuclear Safety. The conferees agree to include $13.1 million, 
     a reduction of $1.5 million to the budget request. The 
     conferees do not support work related to the operational 
     safety of commercial power reactors outside the Former Soviet 
     Union, and that are not Soviet-designed reactors.
     Defense environmental management (sec. 3102)
       The House bill contained a provision (sec. 3102) that would 
     authorize $7.4 billion for environmental restoration, waste 
     management, and other defense activities.
       The Senate amendment contained a provision (sec. 3102) that 
     would authorize $6.8 billion for defense environmental 
     management activities and a provision (sec. 3104) that would 
     authorize $158.4 million for defense environmental management 
     privatization.
       The conferees agree to authorize $6.7 billion for defense 
     environmental management, including defense environmental 
     privatization, an increase of $151.8 million above the budget 
     request. The conferees note that each program is authorized 
     at the full amount reflected in the individual program line 
     prior to offsets. The conferees have reduced program 
     direction accounts to reflect the proper accounting for the 
     accrual of civilian personnel benefits under current law to 
     reflect the civil service accrual adjustment.
       The budget request included $800.0 million for 
     environmental management cleanup reform. An amended budget 
     request included an additional $300.0 million. The conferees 
     agree to include $982.0 million, an increase of $182.0 
     million above the budget request. The conferees note that 
     this will fully fund the Department of Energy commitments to 
     defense sites. In addition, the conferees have included a new 
     construction line item within the environmental management 
     cleanup reform account that would provide $8.8 million for 
     project engineering and design funds, including $7.5 million 
     for design of the salt waste processing facility, and $1.3 
     million for design of an additional glass waste storage 
     building. Both projects are at the Savannah River Site.
       The budget request included $1.1 billion for defense 
     facilities closure projects. The conferees agree to authorize 
     $1.1 billion, an increase of $18.0 million above the budget 
     request, for increased security costs at the Rocky Flats 
     Site.
     Other defense activities (sec. 3103)
       The Senate amendment contained a provision (sec. 3103) that 
     would authorize $489.9 million for other defense activities.
       The House bill contained a provision (sec. 3102) that would 
     authorize $7.4 billion for environmental and other defense 
     activities including $457.7 million for other defense 
     activities.
       The conferees agree to authorize $462.7 million, a decrease 
     of $9.5 million to the budget request. The conferees note 
     that each program is authorized at the full amount reflected 
     in the individual program line prior to offsets. The 
     conferees have reduced program direction accounts to reflect 
     the proper accounting for the accrual of civilian personnel 
     benefits under current law.
       The budget request included $99.9 million for environment, 
     safety and health. The conferees agree to authorize $99.0 
     million. In addition to the $13.9 million contained in the 
     budget request for enhanced medical screening, the conferees 
     agree that an additional $2.5 million shall be available for 
     a total of $16.4 million for enhanced medical screening of 
     current and former workers at Department of Energy (DOE) 
     nuclear facilities, including the three gaseous diffusion 
     plants. The conferees believe DOE should promptly take the 
     steps necessary to ensure that medical screening, including 
     the use of advanced techniques for early lung cancer 
     detection, is made available to current and former workers. 
     The conferees encourage DOE to request sufficient funds in 
     the future to conduct medical screening on all current and 
     former workers who wish to have the screening.
       The budget request included $25.8 million for the office of 
     worker and community transition. The conferees include $19.7 
     million, a reduction of $6.1 million to the budget request.
     Defense nuclear waste disposal (sec. 3104)
       The Senate amendment contained a provision (sec. 3105) that 
     would authorize $215.0 million for payment to the Nuclear 
     Waste Fund (NWF) established by the Nuclear Waste Policy Act 
     of 1982 (42 U.S.C. 10222(c)).
       The House bill contained a provision (sec. 3102) that would 
     authorize $7.4 billion for environmental and other defense 
     activities including $315.0 million for the payment to the 
     NWF.
       The conferees agree to authorize $315.0 million for the 
     payment to the NWF, the amount of the budget request.

   Subtitle B--Program Authorizations, Restrictions, and Limitations

     Annual assessments and reports to the President and Congress 
         regarding the condition of the United States nuclear 
         weapons stockpile (sec. 3141)
       The House bill contained a provision (sec. 3144) that would 
     require an annual certification process regarding the safety, 
     reliability, and performance of the U.S. nuclear stockpile. 
     No later than January 15 of each year, the directors of the 
     national laboratories and the Commander in Chief of the 
     Strategic Command would be required to submit to the 
     Secretary of Energy and the Secretary of Defense, 
     respectively, a certification regarding the safety, 
     reliability, and performance of each nuclear weapon type in 
     the active stockpile of the United States for which each 
     official is responsible. No later than February 1 of each 
     year, the secretaries would be required to submit to the 
     President and the Congress each certification and report that 
     they received together with any other information. The 
     provision would also require that the head of each national 
     laboratory would constitute and use a ``red team'' as part 
     of the certification process to subject to challenge and 
     provide peer review of matters in the certification. In 
     addition, the head of each national laboratory and the 
     Commander in Chief of the Strategic Command would each 
     submit, with the certification, a report that would assess 
     the Department of Energy stockpile stewardship program.
       The Senate amendment contained no similar provision.
       The Senate recedes with a number of clarifying amendments. 
     The conferees intend that this provision should generally 
     reflect the ongoing annual certification process of the 
     active stockpile with the addition of the ``red teams'', 
     including the participation of the Nuclear Weapons Council. 
     The heads of the national security laboratories and the 
     Commander in Chief of the Strategic Command would be required 
     to submit their reports to the Secretary of Energy and the

[[Page H8528]]

     Secretary of Defense, respectively, and to the Nuclear 
     Weapons Council by December 1 of each year beginning in 2003. 
     The Secretaries of Energy and Defense would be required to 
     submit their reports to the President by March 1 of each year 
     beginning in 2004. The President would be required to submit 
     his report, together with all reports required to be 
     submitted to him, to Congress by March 15 of each year 
     beginning in 2004. Each of the various reports would be 
     required to be submitted in classified form but with each 
     portion of the report marked to show its specific 
     classification level.
       The conferees note that the various reports should be brief 
     and concise.
     Plans for achieving enhanced readiness posture for resumption 
         by the United States of underground nuclear weapons tests 
         (sec. 3142)
       The House bill contained a provision (sec. 3145) that would 
     require the Secretary of Energy to submit to Congress with 
     the fiscal year 2004 budget request a report on a plan and a 
     budget to enhance underground nuclear test readiness. The 
     report would detail the plan and budget required to achieve a 
     one-year readiness posture for resumption of underground 
     nuclear weapons tests.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would require the 
     Secretary of Energy to submit to Congress with the fiscal 
     year 2004 budget request a report on plans and cost estimates 
     for achieving and maintaining test readiness postures of six, 
     12, 18, and 24 months. In addition, the report would include 
     an assessment of the current test readiness posture of the 
     United States and a recommendation by the Secretary in 
     conjunction with the Secretary of Defense as to the optimal 
     readiness posture for the United States. The conferees 
     encourage the Secretary of Energy to submit plans for 
     achieving and the cost of achieving and maintaining the 
     recommended test readiness posture with, or as part of, the 
     report required by the provision.
     Requirements for specific request for new or modified nuclear 
         weapons (sec. 3143)
       The Senate amendment contained a provision (sec. 3134) that 
     would require the Secretary of Energy specifically to request 
     funds before beginning research and development and 
     engineering and production activities to support any new or 
     modified nuclear weapon to meet a new military requirement. 
     The provision would require a specific request in a specific 
     line item or items at two distinct points in time for any 
     work on new or modified nuclear weapons. This requirement is 
     consistent with past practices at the Department of Energy 
     (DOE), similar to current acquisition practices for major 
     weapons systems at the Department of Defense (DOD), and 
     similar to the way DOE budgets for construction projects.
       A new weapon would be defined by the provision as any 
     weapon that contains a pit or canned subassembly which is not 
     in the stockpile or not in production on the date of 
     enactment of this Act.
       The provision would require funding for all research and 
     development activity leading to and including phase 1, 2, and 
     2A, for new nuclear weapons, and for all research and 
     development activity leading to and including phase 6.1, 6.2 
     and 6.2A for modified nuclear weapons, be requested in a 
     dedicated line item for each such activity. Funding for work 
     at phase 3 or 6.3 and beyond would be required to be in a 
     single line item for each new or modified nuclear weapon.
       The provision would not apply to the nuclear weapon 
     stockpile life extension programs (SLEPs), to modification of 
     an existing nuclear weapon solely to address safety or 
     reliability concerns; or to modifications that would address 
     proliferation concerns.
       The provision would not 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).
       The House bill contained no similar provision.
       The House recedes with an amendment that would require that 
     the budget request for any research and development 
     activities for modifications to nuclear weapons at the 6.2A 
     phase and earlier, and research and development activities 
     for new nuclear weapons at the 2A phase and earlier, would be 
     aggregated in a single line.
       The conferees agree that 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) 
     relating to prohibitions on research and development of low-
     yield nuclear weapons.
     Database to track notification and resolution phases of 
         Significant Finding Investigations (sec. 3144)
       The Senate amendment contained a provision (sec. 3133) that 
     would establish at the national laboratories of the National 
     Nuclear Security Administration (NNSA) a database to track 
     the notification and resolution phases of significant finding 
     investigations (SFIs). The provision would require the 
     Administrator of the NNSA to develop and implement a 
     laboratory- wide database to monitor the laboratories' 
     progress on resolving SFIs. The Department of Energy's 
     Inspector General (DOE-IG) recommended a central SFI tracking 
     system in a December 2001 report. The DOE-IG determined that 
     DOE was plagued with a system that frequently missed self-
     imposed time frames for initiating and conducting 
     investigations of defects and malfunctions in nuclear 
     weapons. The committee believes that DOE should place a high 
     priority on correcting this problem.
       The House bill contained no similar provision.
       The House recedes.
     Defense environmental management cleanup reform program (sec. 
         3145)
       The House bill contained a provision (sec. 3151) that would 
     require the Secretary of Energy to carry out a program to 
     reform Department of Energy (DOE) environmental management 
     activities using the funds for the reform account authorized 
     under section 3102(a) of the House bill. The funds would be 
     transferred to and merged with accounts for DOE environmental 
     management activities. Upon transfer and merger of the funds, 
     all funds in the merged account would be available to carry 
     out the site performance management plan at each site. The 
     Secretary would be authorized to transfer the merged funds, 
     which include the reform account funds, to each site upon the 
     execution of a site performance management plan and its 
     submission to the congressional defense committees. The 
     provision would also define ``DOE environmental management 
     activities'' as environmental restoration and waste 
     management activities of the Department of Energy in carrying 
     out programs necessary for national security.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would prohibit 
     funds in the reform account from being obligated for a 
     particular site until 30 days after the Secretary submits to 
     the congressional defense committees a description of the 
     activities to be carried out at that site.
     Limitation on obligation of funds for Robust Nuclear Earth 
         Penetrator program pending submission of report (sec. 
         3146)
       The Senate amendment contained a provision (sec. 3132) that 
     would require the Secretary of Defense, in consultation with 
     the Secretary of Energy, to submit a report to the 
     congressional defense committees no later than February 3, 
     2003, on the Robust Nuclear Earth Penetrator (RNEP) that sets 
     forth: (1) the military requirements for the RNEP; (2) the 
     nuclear weapons employment policy for the RNEP; (3) the 
     detailed categories or types of targets that the RNEP is 
     designed to hold at risk; and (4) an assessment of the 
     ability of conventional weapons to address the same types of 
     categories of targets that the RNEP is designed to hold at 
     risk.
       The House bill contained no similar provision.
       The House recedes with an amendment that would fully fund 
     the RNEP but prohibit obligation of any fiscal year 2003 
     funds for the RNEP until 30 days after the study is submitted 
     to the Committees on Armed Services of the Senate and the 
     House of Representatives.

                   Subtitle C--Proliferation Matters

     Transfer to National Nuclear Security Administration of 
         Department of Defense's Cooperative Threat Reduction 
         program relating to elimination of weapons grade 
         plutonium production in Russia (sec. 3151)
       The House bill contained a provision (sec. 3142) that would 
     transfer to the National Nuclear Security Administration 
     (NNSA) the Department of Defense (DOD) Cooperative Threat 
     Reduction (CTR) program to eliminate weapons grade plutonium 
     in Russia and all associated program funds. The funds 
     transferred would remain subject to the limitations applied 
     to such funds before the transfer.
       The Senate amendment contained a similar provision (sec. 
     3151) that would transfer the program from DOD to the NNSA, 
     with all associated program funds but would make the program 
     funds available to the NNSA notwithstanding any provision of 
     law that limits expenditure of DOD funds. The NNSA could use 
     the funds to design, construct, or refurbish, fossil fuel 
     energy plants in Russia to provide alternative sources of 
     energy to the Russian reactors that produce weapons grade 
     plutonium and energy. The funds could also be used for 
     limited safety upgrades of the Russian reactor plants to 
     permit safe shutdown.
       The Senate amendment also contained a provision (sec. 3136) 
     that would establish limitations on the funds after they were 
     transferred to the NNSA.
       The House recedes with amendments. The conferees agree to 
     include a single provision that will transfer the funds for 
     the program to eliminate weapons grade plutonium in Russia 
     from DOD to the NNSA, removing all prior limitations and 
     establish new limitations. The funds would be available to 
     design, refurbish, or both, fossil fuel energy plants and to 
     carry out limited safety upgrades that would not extend the 
     life of the plants. The provision would prohibit the 
     Administrator from obligating or expending more than $100.0 
     million for the program until 30 days after the Administrator 
     submits a copy of an agreement or agreements with the Russian 
     Federation to shut down the three plutonium-producing 
     reactors and submits a plan to achieve international cost 
     sharing and participation in the program.
       The agreements must specify: (1) a commitment to shut down 
     and the date or dates on which the Russian reactors will be 
     shut down; (2) the schedule with milestones to shut down each 
     reactor; (3) the schedule and

[[Page H8529]]

     milestones for the Russian participation in the construction 
     or refurbishment of the fossil fuel energy plants; (4) a 
     suitable access arrangement for the sites; (5) an arrangement 
     for audit and examination procedures; and (6) any cost-
     sharing arrangements between the United States and the 
     Russian Federation.
     Repeal of requirement for reports on obligation of funds for 
         programs on fissile materials in Russia (sec. 3152)
       The House bill contained a provision (sec. 3143) that would 
     repeal the semi-annual report on the Department of Energy 
     fissile Materials Protection, Control, and Accounting (MPC&A) 
     program required by section 3131 of the National Defense 
     Authorization Act for Fiscal Year 1996 (Public Law 104-106). 
     This report is no longer needed as the information is now 
     included in the annual MPC&A report.
       The Senate amendment contained an identical provision.
       The conference agreement includes this provision.
     Expansion of annual reports on status of nuclear materials 
         protection, control, and accounting programs (sec. 3153)
       The Senate amendment contained a provision (sec. 3153) that 
     would amend the annual reporting requirement for the 
     Department of Energy (DOE) Materials Protection, Control, and 
     Accounting (MPC&A) program to include countries other than 
     Russia. The DOE MPC&A program works to protect weapons grade 
     nuclear materials in the countries of the Former Soviet 
     Union, including Russia. The provision would also amend the 
     MPC&A report to require the Secretary of Energy to identify 
     the nature of the work performed in each country outside of 
     Russia, the amount of material secured, the amount of 
     material remaining to be secured, and the total amount spent 
     by country.
       The House bill contained no similar provision.
       The House recedes.
     Testing of preparedness for emergencies involving nuclear, 
         radiological, chemical, or biological weapons (sec. 3154)
       The Senate amendment contained a provision (sec. 3154) that 
     would extend the time that exercises could be carried out 
     under the program for testing and improving the responses of 
     Federal, State, and local agencies to emergencies involving 
     biological, chemical, nuclear, and radiological weapons and 
     related materials from five fiscal years, beginning in fiscal 
     year 1997, to 17 fiscal years, ending in fiscal year 2013.
       The House bill contained no similar provision.
       The House recedes.
     Cooperative program on research, development, and 
         demonstration of technology regarding nuclear or 
         radiological terrorism (sec. 3155)
       The Senate amendment contained a provision (sec. 3155) that 
     would direct the Administrator of Nuclear Security to carry 
     out a program of research and technology for protection from 
     nuclear or radiological terrorism in support of homeland 
     security and counterterrorism. As part of the program, the 
     Administrator would coordinate this program with the Office 
     of Homeland Security, the Nuclear Regulatory Commission, the 
     Departments of Defense, State, and Commerce, and the 
     International Atomic Energy Agency. In addition, the 
     Administrator would cooperate with the Russian Federation on 
     research and demonstration of these technologies and, where 
     feasible, provide assistance to other countries on matters 
     relating to nuclear or radiological terrorism. The amendment 
     would also authorize the Office of Defense Nuclear 
     Nonproliferation in the National Nuclear Security 
     Administration to use up to $15.0 million for the development 
     of a new generation of radiation detectors for homeland 
     defense under this program.
       The House bill contained no similar provision.
       The House recedes with an amendment that would direct the 
     Administrator to establish a cooperative program with the 
     Russian Federation on the research, development, and 
     demonstration of technologies for protection from and 
     response to nuclear or radiological terrorism. The program 
     would conduct research on technologies that could be used for 
     the detection, identification, assessment, control, and 
     disposition of radiological materials that could be used for 
     nuclear terrorism. The program would also provide for the 
     demonstration of the technologies developed by this program 
     to other countries, in cooperation with the Russian 
     Federation. The Administrator would be required to coordinate 
     these research, development, and demonstration efforts with 
     the Department of Energy's Office of Environment, Safety, and 
     Health; the Nuclear Regulatory Commission; the Departments of 
     State, Defense, and Commerce; and the International Atomic 
     Energy Agency. The Administrator would be authorized to use 
     up to $15.0 million to carry out the activities under this 
     program.
     Matters relating to the International Materials Protection, 
         Control, and Accounting program of the Department of 
         Energy (sec. 3156)
       The Senate amendment contained a provision (sec. 3156) that 
     would authorize the Secretary of Energy to expand the scope 
     of the International Materials Protection, Control and 
     Accounting (MPC&A) program to countries outside Russia and 
     the independent states of the Former Soviet Union and require 
     the Secretary to notify Congress 30 days after funds are 
     obligated for these purposes. The provision would also: (1) 
     authorize the Secretary to provide technical assistance to 
     the Secretary of State to support his efforts to assist 
     nuclear weapons states' nuclear materials security program; 
     (2) require the Secretary to develop a plan to accelerate the 
     conversion or return of weapons-usable nuclear materials to 
     the country of origin; (3) establish within the MPC&A program 
     a radiological dispersal device MPC&A program and require a 
     feasibility study on such a program; and (4) provide a sense 
     of Congress encouraging support of the Convention on Physical 
     Protection of Nuclear Materials. The provision would 
     authorize the Office of Defense Nuclear Nonproliferation in 
     the National Nuclear Security Administration to use up to 
     $5.0 million for these activities.
       The House bill contained no similar provision.
       The House recedes with an amendment that would authorize 
     the Secretary of Energy to establish within the MPC&A program 
     a new program that would protect, control, and account for 
     radiological dispersal device materials. The provision would 
     also encourage the Secretary to work cooperatively with the 
     Russian Federation to develop a sustainable nuclear materials 
     protection, control and accounting system for nuclear 
     materials in Russia no later than January 1, 2013. This 
     system should be designed to be supported, maintained and 
     operated solely by the Russian Federation. In an effort to 
     support this activity, the provision would also require the 
     Secretary to work with the Russian Federation to identify 
     transparency measures adequate to provide the United States 
     with the assurances that the program is meeting this goal. Up 
     to $5.0 million may be used to carry out the new MPC&A 
     program on radiological dispersal device materials 
     activities.
       The conferees expect the United States' support for the 
     Russian Federation MPC&A system should be completed and the 
     system should be sustainable by Russia no later than January 
     1, 2013. The conferees encourage the Secretary to accelerate 
     efforts to resolve outstanding transparency issues for the 
     MPC&A program to facilitate the required assurances necessary 
     to monitor the progress and successes of this important 
     national security program.
       The conferees have agreed to divide this provision into 
     three provisions (secs. 3156, 3160, 3161).
     Accelerated disposition of highly enriched uranium (sec. 
         3157)
       The Senate amendment contained a provision (sec. 3157) that 
     would set forth the sense of Congress that the Secretary of 
     Energy, in consultation with the Secretaries of State and 
     Defense, develop a comprehensive program to encourage all 
     countries with nuclear materials to adhere to or adopt 
     International Atomic Energy Agency standards on The Physical 
     Protection of Nuclear Material and Nuclear Facilities 
     (INFCIRC/225/Rev.4) relating to the security of stockpiles of 
     highly enriched uranium and plutonium. The provision would 
     also authorize the Secretary of Energy to carry out a program 
     with the Russian Federation and any other nation with highly 
     enriched uranium to pursue options for blending the uranium 
     so that the enrichment of uranium U-235 is below 20 percent. 
     As part of these options, the Department of Energy (DOE) 
     Material Consolidation and Conversion program would be 
     expanded, and the Secretary of Energy could provide financial 
     and other incentives to Russia for the consolidation of 
     Russian highly enriched uranium located throughout the 
     Russian Federation. The Secretary would be required to report 
     to Congress no later than July 1, 2003, on the status of this 
     program. The provision would also permit the Secretary to 
     purchase highly enriched uranium or weapons grade plutonium 
     from any country and transport it to and store it in the 
     United States. The Secretary would be encouraged to establish 
     similar transactions between any nation and Russia for 
     storage and blending highly enriched uranium. The 
     provision would allow the Secretary to pay such nation's 
     transportation costs. Finally, the provision would provide 
     that up to $40.0 million could be used to carry out the 
     activities in this section.
       The House bill contained no similar provision.
       The House recedes with an amendment that would authorize 
     the Secretary of Energy to pursue a program with the Russian 
     Federation on options for blending highly enriched uranium to 
     reduce the concentration of U-235 below 20 percent. These 
     options would include expanding the Material Consolidation 
     and Conversion program within DOE to include additional 
     facilities in Russia for blending the highly enriched uranium 
     and identifying more centralized secure storage facilities in 
     Russia for the secure storage of materials awaiting blend 
     down. The conferees note that both the additional blending 
     facilities and centralized storage facilities must already 
     have complete materials, protection, control and accounting 
     upgrades before highly enriched uranium is blended down or 
     stored at these facilities. The amendment also states that 
     nothing in this program would impact the existing Highly 
     Enriched Uranium Disposition Agreement between the United 
     States and Russia and that the uranium blended down under 
     this program would not be released for sale until the earlier 
     date of either one of the following: (1) January 1, 2014; or 
     (2) the date on which the Secretary certifies that such 
     uranium can be absorbed into the global market

[[Page H8530]]

     without undue disruption to the uranium mining, conversion, 
     and enrichment industry in the United States. Finally, the 
     amendment would enable up to $10.0 million in fiscal year 
     2003 to be used for activities under this program.
       The conferees direct the Secretary of Energy to provide to 
     the congressional defense committees, no later than July 1, 
     2003, a report on the status of the program with the Russian 
     Federation on options for blending highly enriched uranium so 
     that the concentration of U-235 is below 20 percent. The 
     report should identify the scope of the program and the 
     implementing costs, as well as describe the additional 
     facilities that will participate in the expanded material 
     consolidation and conversion effort.
     Strengthened international security for nuclear materials and 
         security of nuclear operations (sec. 3158)
       The Senate amendment contained a provision (sec. 3159) that 
     would require the Secretary of Energy to 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. As part of the 
     report, the Secretary would consult with the Nuclear 
     Regulatory Commission, the Russian Federation, and the 
     International Atomic Energy Agency. The report would be due 
     270 days after the date of enactment of this Act. The 
     provision would also direct the Director of the Office of 
     Nuclear Energy Science and Technology and the Secretary to 
     pursue, with the Russian Ministry of Atomic Energy, joint 
     programs on the development of proliferation- resistant 
     nuclear energy technologies, including advanced fuel cycles. 
     In addition, the provision would authorize the Secretary to 
     provide assistance to nuclear facilities abroad on the 
     interdiction of hostile insiders to prevent the disablement 
     of these facilities' vital operations. The provision would 
     authorize the Secretary to carry out a joint program with the 
     Russian Federation and other countries to address and 
     mitigate damage from aircraft impacts on nuclear facilities 
     overseas. Finally, the amendment would authorize the 
     Secretary of Energy to expand and accelerate the programs of 
     the Department of Energy to support the International Atomic 
     Energy Agency in its efforts to strengthen international 
     nuclear safety and security. Up to $35.0 million would be 
     available to carry out these programs in fiscal year 2003.
       The House bill contained no similar provision.
       The House recedes with an amendment that would require the 
     Secretary of Energy to submit to Congress a report on options 
     for an international program to develop strengthened security 
     for nuclear reactors and associated materials. This report 
     would be due 270 days after enactment of this Act. In 
     evaluating the options for an international program, the 
     Secretary would be required to 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 
     reactors outside the United States. The provision would also 
     direct the Secretary of Energy to pursue, with the Russian 
     Ministry of Atomic Energy, joint programs on the development 
     of proliferation-resistant nuclear energy technologies, 
     including advanced fuel cycles. Up to $10.0 million would be 
     available for implementing this joint program with Russia. 
     Finally, the provision would authorize the Secretary to 
     provide technical assistance to nuclear facilities abroad on 
     the interdiction of hostile insiders at such facilities and 
     efforts to prevent the disablement of vital systems at these 
     facilities.
     Export control programs (sec. 3159)
       The Senate amendment contained a provision (sec. 3160) that 
     would authorize the Secretary of Energy to pursue, in the 
     former Soviet Union and regions of concern, principally in 
     South Asia, the Middle East, and the Far East, options for 
     accelerating programs that assist countries in such regions 
     to improve their domestic export control programs for 
     materials, technologies, and expertise relevant to the 
     construction or use of a nuclear or radiological dispersal 
     device. The amendment would authorize up to $5.0 million 
     for this effort.
       The House bill contained no similar provision.
       The House recedes with a clarifying amendment that would 
     authorize the Secretary of Energy, in coordination with the 
     Secretary of State, to pursue, in the Former Soviet Union and 
     other regions of concern, options for accelerating programs 
     that assist countries in these regions to improve their 
     domestic export control programs for materials, technologies, 
     and expertise relevant to the construction or use of a 
     nuclear or radiological dispersal device. Up to $5.0 million 
     may be available for carrying out this effort in fiscal year 
     2003.
     Plan for accelerated return of weapons-usable nuclear 
         material (Sec. 3160)
       The Senate amendment contained a provision (sec. 3156) that 
     would authorize the Secretary of Energy to expand the scope 
     of the International Materials Protection, Control and 
     Accounting (MPC&A) program to countries outside Russia and 
     the independent states of the Former Soviet Union and require 
     the Secretary to notify Congress 30 days after funds are 
     obligated for these purposes. The provision would also: (1) 
     authorize the Secretary to provide technical assistance to 
     the Secretary of State to support his efforts to assist 
     nuclear weapons states' nuclear materials security programs; 
     (2) require the Secretary to develop a plan to accelerate the 
     conversion or return of weapons-usable nuclear materials to 
     the country of origin; (3) establish within the MPC&A program 
     a radiological dispersal device MPC&A program and require a 
     feasibility study on such a program; and (4) provide a sense 
     of Congress encouraging support of the Convention on Physical 
     Protection of Nuclear Materials. The provision would 
     authorize the Office of Defense Nuclear Nonproliferation in 
     the National Nuclear Security Administration to use up to 
     $5.0 million for these activities.
       The House bill contained no similar provision.
       The House recedes with an amendment that would require the 
     Secretary of Energy to develop, with the Russian Federation, 
     a plan to accelerate the return to Russia of all weapons-
     usable nuclear materials located in research reactors and 
     other facilities outside Russia that were supplied by the 
     Former Soviet Union. The plan should include the costs and 
     schedules associated with assisting these research reactors 
     and facilities in transferring highly enriched uranium to 
     Russia and providing these facilities and research reactors 
     with MPC&A upgrades until the weapons-usable nuclear 
     materials are returned to Russia.
     Sense of Congress on amendment of Convention on Physical 
         Protection of Nuclear Materials (sec. 3161)
       The Senate amendment contained a provision (sec. 3156) that 
     would authorize the Secretary of Energy to expand the scope 
     of the International Materials Protection, Control and 
     Accounting (MPC&A) program to countries outside Russia and 
     the independent states of the Former Soviet Union and require 
     the Secretary to notify Congress 30 days after funds are 
     obligated for these purposes. The provision would also: (1) 
     authorize the Secretary to provide technical assistance to 
     the Secretary of State to support his efforts to assist 
     nuclear weapons states' nuclear materials security programs; 
     (2) require the Secretary to develop a plan to accelerate the 
     conversion or return of weapons-usable nuclear materials to 
     the country of origin; (3) establish within the MPC&A program 
     a radiological dispersal device MPC&A program and require a 
     feasibility study on such a program; and (4) provide a sense 
     of Congress encouraging support of the Convention on Physical 
     Protection of Nuclear Materials. The provision would 
     authorize the Office of Defense Nuclear Nonproliferation in 
     the National Nuclear Security Administration to use up to 
     $5.0 million for these activities.
       The House bill contained no similar provision.
       The House recedes with an amendment that would set forth 
     the sense of Congress that the President should encourage 
     amendment of the Convention on the Physical Protection of 
     Nuclear Materials to: (1) apply to both domestic and 
     international use and transport of nuclear materials; (2) 
     incorporate fundamental practices for the physical protection 
     of these materials; and (3) address protection against 
     sabotage involving nuclear materials.
     Sense of Congress on program to secure stockpiles of highly 
         enriched uranium and plutonium (sec. 3162)
       The Senate amendment contained a provision (sec. 3157) that 
     would contain a sense of Congress that the Secretary of 
     Energy, in consultation with the Secretaries of State and 
     Defense, develop a comprehensive program to encourage all 
     countries with nuclear materials to adhere to or adopt 
     International Atomic Energy Agency standards on The Physical 
     Protection of Nuclear Material and Nuclear Facilities 
     (INFCIRC/225/Rev.4) relating to the security of stockpiles of 
     highly enriched uranium and plutonium. The amendment would 
     also authorize the Secretary of Energy to carry out a program 
     with the Russian Federation and any other nation with highly 
     enriched uranium to pursue options for blending the uranium 
     so that the uranium of U-235 is below 20 percent. As part 
     of these options, the Department's Material Consolidation 
     and Conversion program would be expanded, and the 
     Secretary of Energy could provide financial and other 
     incentives to Russia for the consolidation of Russian 
     highly enriched uranium located throughout the Russian 
     Federation. The Secretary would be required to report to 
     Congress no later than July 1, 2003, on the status of this 
     program. The provision would also permit the Secretary to 
     purchase highly enriched uranium or weapons grade 
     plutonium from any country and transport it to and store 
     it in the United States. Alternatively, the Secretary may 
     encourage a similar transaction between any nation and 
     Russia, and the Secretary would have the option to pay the 
     nation's costs to transport these nuclear materials to 
     Russia as well as the blenddown costs. Finally, the 
     provision would enable up to $40.0 million to be used to 
     carry out the activities in this section.
       The House bill contained no similar provision.
       The House recedes with an amendment that would set forth 
     the sense of Congress that the Secretary of Energy, in 
     consultation with the Secretaries of State and Defense, 
     develop a comprehensive program of activities to encourage 
     all countries with nuclear materials to adhere to or adopt 
     International Atomic Energy Agency standards

[[Page H8531]]

     on The Physical Protection of Nuclear Material and Nuclear 
     Facilities (INFCIR/225/Rev.4) relating to the security of 
     stockpiles of highly enriched uranium and plutonium.

                       Subtitle D--Other Matters

     Indemnification of Department of Energy contractors (sec. 
         3171)
       The Senate amendment contained a provision (sec. 3171) that 
     would amend section 170 d.(1)(A) of the Atomic Energy Act of 
     1954, 42 U.S.C. 2210(d)(1)(A), by extending the authority of 
     the Department of Energy to extend indemnification coverage 
     to its contractors from August 1, 2002 to August 1, 2012.
       The House bill contained no similar provision.
       The House recedes with an amendment that would extend the 
     authority to December 31, 2004.
     Support for public education in the vicinity of Los Alamos 
         National Laboratory, New Mexico (sec. 3172)
       The Senate amendment contained a provision (sec. 3174) that 
     would authorize $6.9 million to be paid by the Department of 
     Energy (DOE) to the Los Alamos Education Foundation in fiscal 
     year 2003. The Foundation was established by section 3167(a) 
     of the National Defense Authorization Act for Fiscal Year 
     1998 (Public Law 105-85). The Foundation provides for 
     educational support to students and schools in the Los Alamos 
     area.
       The provision would also amend section 3136 of the National 
     Defense Authorization Act for Fiscal Year 2002 (Public Law 
     107- 107) to allow the National Nuclear Security 
     Administration (NNSA) to extend the current contract with the 
     Los Alamos Public Schools to provide for cost of living 
     adjustments for the school teachers through fiscal year 2013. 
     The current contract between the NNSA and the Los Alamos 
     schools, pursuant to which this annual payment is made, 
     expires at the end of fiscal year 2003. This amendment is 
     necessary to allow the NNSA to include the annual payment in 
     its fiscal year 2004 budget request and in subsequent years' 
     budget requests.
       The budget request for fiscal year 2003 for the NNSA 
     includes $8.0 million for the Los Alamos Public Schools to 
     offset the cost of living for school teachers teaching in the 
     public schools.
       The House bill contained no similar provision.
       The House recedes with an amendment that would limit the 
     duration of the contract extension to 2005 and that would 
     direct the Secretary of Energy, in conjunction with the 
     Administrator of the National Nuclear Security 
     Administration, to look at alternatives to the annual 
     authorization and appropriation process to obtain funds to 
     offset the cost of living for school teachers in the Los 
     Alamos Public Schools. While the conferees recognize the need 
     for this payment as well as the high cost of living in Los 
     Alamos, the conferees urge DOE to identify and fund a 
     mechanism to bring this annual process to a close in a 
     reasonable amount of time. In exploring options, the 
     Secretary should look at a buy-out option in the form of 
     several larger payments over a limited number of years that 
     would shift these annual payments to the Los Alamos school 
     system, to local government, or to some other local entity.
     Worker health and safety rules for Department of Energy 
         nuclear facilities (sec. 3173)
       The Senate amendment contained a provision (sec. 3172) that 
     would add a new section 234C, following 234B of the Atomic 
     Energy Act of 1954 (42 U.S.C. 2282b). This new section would 
     authorize the Secretary of Energy to assess civil penalties 
     against Department of Energy (DOE) contractors who have 
     entered into an agreement of indemnification under section 
     170d of the Atomic Energy Act of 1954, for violation of any 
     regulation relating to industrial or construction health and 
     safety promulgated by DOE. The provision would also direct 
     the Secretary to promulgate industrial and construction 
     health safety regulations that incorporate the provisions of 
     DOE Order No. 440.1A (1998) no later than 270 days from 
     the date of enactment of this Act. These regulations would 
     go into effect one year after the date of promulgation of 
     the regulations. The provision would cap any fines at $0.1 
     million per violation and would direct the Secretary to 
     provide in the regulations a variance and exemption 
     process for national security related work and at sites 
     and facilities to be closed or transferred. The provision 
     would cap total fines and penalties under 234A, 234B, and 
     234C, for nonprofit contractors so that the total fees 
     assessed would not exceed the amount of the annual fee 
     paid by DOE. Activities under the Naval Nuclear Propulsion 
     Program would be excluded from the program.
       The House bill contained no similar provision.
       The House recedes with an amendment that would direct the 
     Secretary to promulgate regulations for industrial and 
     construction health and safety. The regulations promulgated 
     would provide a level of protection for workers that is 
     substantially equivalent to current levels of protection. The 
     conferees note that the DOE contractors currently operate 
     under DOE order 440.1A (1998) which provides an adequate 
     level of safety.
       The Secretary would also be required to establish a 
     mechanism to provide flexibility to implement the 
     regulations. The regulations should establish a process that 
     would allow sites to implement the regulations to account for 
     unique site or mission circumstances or particular work 
     environments and would include national security missions and 
     requirements at closing facilities. In establishing a process 
     for flexible implementation, the Secretary should ensure that 
     there is no diminution of worker health and safety.
       The provision would direct the Secretary to assess either 
     civil penalties or contract penalties, but not both, for any 
     individual action and would prohibit the Secretary from 
     assessing a penalty under both 234A and 234C for the same 
     action. The maximum fine for each violation would be $70,000.
     Extension of authority to appoint certain scientific, 
         engineering, and technical personnel (sec. 3174)
       The conferees agree to include a provision that would 
     extend the current Department of Energy authority to appoint 
     certain specific scientific engineering and technical 
     personnel from September 30, 2002 to September 30, 2004.
     One-year extension of panel to assess the reliability, 
         safety, and security of the United States nuclear 
         stockpile (sec. 3175)
       The House bill contained a provision (sec. 3141) that would 
     extend the panel to assess the reliability, safety, and 
     security of the United States nuclear stockpile through April 
     1, 2003. The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would direct the 
     panel to use the extension to assess progress toward meeting 
     the expectations set forth by the panel in previous reports. 
     The panel would submit to the Committees on Armed Services of 
     the Senate and the House of Representatives, by February 1, 
     2003, a report on the assessment, together with any 
     recommendations for corrective legislative action where 
     progress has been unsatisfactory.
     Report on status of environmental management initiatives to 
         accelerate the reduction of environmental risks and 
         challenges posed by the legacy of the Cold War (sec. 
         3176)
       The House bill contained a provision (sec. 3152) that would 
     require the Secretary of Energy to prepare a report on the 
     status of environmental initiatives being undertaken to 
     accelerate cleanup and reduce environmental risks. The report 
     should include a discussion of the progress of such 
     initiatives.
       The Senate amendment contained no similar provision.
       The Senate recedes.

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

     Findings (sec. 3181)
       The Senate amendment contained a provision (sec. 3181) that 
     would set forth a series of findings with respect to the 
     September 2000 agreement between the Russian Federation and 
     the United States to manage and dispose of 34 tons of excess 
     weapons grade plutonium.
       The House bill contained no similar provision.
       The House recedes.
     Disposition of weapons-usable plutonium at Savannah River 
         Site (sec. 3182)
       The Senate amendment contained a provision (sec. 3182) that 
     would direct the Secretary of Energy to submit, by February 
     1, 2003, a plan to Congress for the construction and 
     operation of a Mixed Oxide (MOX) plutonium facility at the 
     Savannah River Site. The plan would include a schedule for 
     construction and operations to achieve by January 1, 2009, 
     and thereafter, the MOX production objective, to ensure that 
     one ton of MOX fuel has been produced by December 31, 
     2009, and that all 34 metric tons of defense plutonium and 
     defense plutonium materials at the Savannah River Site 
     would have to be processed into MOX fuel by January 1, 
     2019. If in any year the Secretary of Energy does not 
     comply with the plan and the schedule, the Secretary would 
     have to make economic assistance payments to the State of 
     South Carolina at the rate of $1.0 million per day but not 
     to exceed $100.0 million in any year. This payment would 
     be subject to authorization and appropriation.
       At various stages in the process, if the Secretary of 
     Energy is not in compliance with the plan or any subsequent 
     corrective action plans, the Secretary would also have to 
     remove all or part of the defense plutonium materials that 
     had been shipped to the Savannah River Site in South 
     Carolina.
       If an injunction is obtained by the State of South Carolina 
     that would prevent the Department of Energy from taking 
     actions necessary to meet the deadlines of the provision, any 
     such deadlines would be extended for the period of time 
     during which the court-ordered injunction is in effect.
       The provision would also require that if any MOX fuel 
     remains at the MOX facility one year after the MOX facility 
     ceases operation, the Secretary must submit to Congress a 
     report detailing when such fuel would be transferred for use 
     in commercial nuclear reactors or a plan for its removal from 
     the State of South Carolina.
       The House bill contained no similar provision.
       The House recedes with an amendment providing that any 
     requirement to pay economic assistance payments to the State 
     of South Carolina may be made from any funds available to the 
     Secretary without the requirement for further authorizations 
     or appropriations for such payments and an additional MOX 
     processing requirement for the period between 2011 and 2017.

[[Page H8532]]

     Study of facilities for storage of plutonium and plutonium 
         materials at Savannah River Site (sec. 3183)
       The Senate amendment contained a provision (sec. 3183) that 
     would require the Defense Nuclear Facilities Safety Board 
     (DNFSB) to conduct a study of the adequacy of the K-Area 
     Materials Storage (KAMS) facility and related facilities for 
     the storage of defense plutonium materials in connection with 
     the Department of Energy plutonium disposition program. The 
     DNFSB would be required to complete the study and submit a 
     report on the study to Congress within one year of the date 
     of enactment of this Act. The DNFSB should include in the 
     report any proposals to improve the safety, reliability, or 
     functionality of the KAMS facility. Not later than six months 
     after the report is submitted, the DNFSB and the Secretary of 
     Energy shall each submit a report on the actions taken in 
     response to the proposals, if any.
       The House bill contained no similar provision.
       The House recedes with a technical amendment.

                   Legislative Provisions Not Adopted

     Availability of funds for environmental management cleanup 
         reform
       The Senate amendment contained a provision (sec. 3131) that 
     would require the Secretary of Energy to establish and 
     publish selection criteria for the environmental management 
     cleanup reform account. The provision would also provide the 
     Secretary of Energy authority to dissolve the account, in the 
     event the Secretary opts not to establish selection criteria, 
     and redistribute the funds in the account to the sites and 
     projects on a pro rata basis according to fiscal year 2002 
     funding levels. In addition, the provision would require the 
     Secretary to submit to the congressional defense committees a 
     list of the activities at each site that would be funded by 
     this account 30 days before such funds were obligated or 
     expended.
       The House bill contained no similar provision.
       The Senate recedes.
       The Department of Energy (DOE) budget request for fiscal 
     year 2003 included $800.0 million for a new initiative, the 
     environmental cleanup reform account. An amended budget 
     request sought an additional $300.0 million for a total 
     request of $1.1 billion. According to the DOE budget 
     justification material, the purpose of the new account is 
     ``to enable the Department, the States, and the American 
     taxpayer to begin realizing the benefits immediately of 
     alternative cleanup approaches that will produce more real 
     risk reduction, accelerate cleanup, or achieve much needed 
     cost and schedule improvements.''
       DOE has signed letters of intent, for all but $2.0 million 
     of the $1.1 billion in the cleanup reform account, in the 
     absence of any authorization or appropriation of funds for 
     the reform account. While the conferees support the idea of 
     DOE, the States, and the EPA reviewing the various cleanup 
     agreements to ensure that the cleanup at each site is being 
     conducted as efficiently as possible, the conferees note that 
     DOE has not demonstrated how creation of the reform account 
     will accomplish the goal set forth in the fiscal year 2003 
     budget justification material.
       The conferees note section 3176 of this Act would require 
     the Secretary of Energy to provide a report on the progress 
     being made to streamline the cleanup process, reduce 
     environmental risks quickly, and to provide an assessment of 
     the progress being made to improve the responsiveness and 
     effectiveness of the environmental management program. The 
     conferees expect DOE to provide in the report evidence that 
     this accelerated cleanup program will result in real risk 
     reduction and much needed cost and schedule improvements. 
     This report is due with the submission of the fiscal year 
     2004 budget request for DOE.
     Disposition of plutonium in Russia
       The Senate amendment contained a provision (sec. 3158) that 
     would encourage the Secretary of Energy to continue to 
     support the Secretary of State in negotiations with the 
     Ministry of Atomic Energy of the Russia Federation to 
     finalize the terms of the Russian plutonium disposition 
     program. As part of this support, the Secretary of Energy 
     would be authorized to consider using financial incentives to 
     reach a successful agreement with the Ministry of Atomic 
     Energy. The amendment also identifies various elements that 
     would be required as part of the Russian plutonium 
     disposition program including: (1) transparent, verifiable 
     steps; (2) proceeding at approximately the equivalent rate of 
     the United States program for the disposition of plutonium; 
     (3) cost-sharing among various countries; (4) contributions 
     by the Russian Federation; (5) steps to confirm with high 
     confidence that the disposition of plutonium of the Russian 
     Federation will be achieved; and (6) possible research on 
     more speculative, long-term options for the future 
     disposition of additional Russian plutonium.
       The House bill contained no similar provision.
       The Senate recedes.
       The conferees note that while the Russian plutonium 
     disposition program is one of the most critical 
     nonproliferation programs underway between the United States 
     and the Russian Federation, the conferees remain concerned 
     with the slow pace of the Russian program. The conferees 
     believe it is imperative that the Secretary of State work as 
     assiduously as possible to conclude negotiations with the 
     Russian Federation as quickly as possible. The conferees 
     believe, however, that any negotiation should include 
     transparent and verifiable steps to enable the United States 
     to have the necessary assurances that the schedule for the 
     disposition of plutonium will be achieved.
       The conferees feel strongly that the program must have 
     cost- sharing arrangements among participating countries and 
     the Russian Federation.
       In addition, the conferees believe that the U.S. and 
     Russian programs should proceed at a rate that is generally 
     equivalent to one another. Unfortunately, however, the United 
     States program is lagging behind the Russian lead test 
     assembly program. The conferees note that pushing forward 
     with the U.S. lead test assembly effort will enable the U.S. 
     plutonium disposition program to reach an essential milestone 
     that is important for the success of both the U.S. plutonium 
     disposition program and the Russian disposition plutonium 
     program.
       Finally, the conferees direct the Secretary of Energy to 
     conduct research on more speculative, long-term options for 
     the future disposition of the plutonium of the Russian 
     Federation.
     Improvements to nuclear materials protection, control, and 
         accounting program of the Russian Federation
       The Senate amendment contained a provision (sec. 3161) that 
     would direct the Secretary of Energy to work with the 
     Ministry of Atomic Energy of the Russian Federation to update 
     and improve the Joint Action Plan for the Materials 
     Protection, Control, and Accounting Program to focus on 
     achieving, as soon as practicable, but no later than January 
     1, 2012, a sustainable nuclear materials protection, control, 
     and accounting system for the nuclear materials of the 
     Russian Federation. The amendment would require the Secretary 
     to work with the Russian Federation to accelerate nuclear 
     materials protection, control and accounting programs at 
     Russian defense nuclear facilities and to identify various 
     transparency alternatives to assure the United States that 
     the program is meeting the goals for improved nuclear 
     materials protection, control, and accounting. The provision 
     would also set forth the sense of Congress that the Secretary 
     should enhance its partnership with Russia to increase the 
     pace and effectiveness of the nuclear materials protection, 
     control, and accounting program and identify the assistance, 
     Russian contribution, and transparency milestones used to 
     assess progress in this program.
       The House bill contained no similar provision.
       The Senate recedes.
       The conferees agree to consolidate all matters dealing with 
     materials protection, control, and accounting in one 
     provision.
     One-year extension of authority of Department of Energy to 
         pay voluntary separation incentive payments
       The Senate amendment contained a provision (sec. 3173) that 
     would amend section 3161(a) of the National Defense 
     Authorization Act for Fiscal Year 2000 (Public Law 106-65) to 
     provide a one- year extension of the Department of Energy 
     (DOE) authority to make voluntary separation incentive 
     payments. The committee is aware that DOE would like to 
     extend the ability to encourage voluntary separations and 
     avoid any future need to conduct a reduction in force. This 
     provision would allow DOE to do long- term planning for 
     reductions as a result of future reorganizations.
       The House bill contained no similar provision.
       The Senate recedes.
     Prohibition on development of low-yield nuclear weapon
       The House bill contained a provision (sec. 3146) that would 
     repeal section 3136 of the National Defense Authorization Act 
     for Fiscal Year 1994 (42 U.S.C. 2121 note) and would prohibit 
     the Secretary of Energy from conducting development which 
     could lead to the production of a low-yield nuclear weapon.
       The Senate amendment contained no similar provision.
       The House recedes.
       The conferees recognize the importance of exercising the 
     nuclear weapon design process in order to maintain skills and 
     capabilities critical to national security. The conferees 
     further understand that many of the Nation's weapon designers 
     with actual test experience have retired or will soon be 
     eligible for retirement. The conferees believe the National 
     Nuclear Security Administration must move aggressively to 
     transfer skills to the next generation.
     Requirement for authorization by law for funds obligated or 
         expended for Department of Energy national security 
         activities
       The Senate amendment contained a provision (sec. 3135) that 
     would amend section 660 of the Department of Energy 
     Organization Act, 42 U.S.C.7270, to add a new subsection that 
     would require a specific authorization for national security 
     programs and activities at the Department of Energy (DOE) 
     before funds may be obligated or expended.
       The House bill contained no similar provision.
       The Senate recedes.
       The conferees agree that section 660 of the Department of 
     Energy Organization Act applies to all programs and funds at 
     the Department of Energy and that this section established 
     the requirement for an authorization of appropriations for 
     all programs and

[[Page H8533]]

     activities at DOE as a condition of the obligation and 
     expenditure of funds. As a result, the Senate provision, 
     which applied to national security activities, is not needed 
     because national security activities and programs are already 
     included in the scope of section 660.
     Utilization of Department of Energy national laboratories and 
         sites in support of counterterrorism and homeland 
         security activities
       The Senate amendment contained a provision (sec. 3163) that 
     would authorize the Department of Energy (DOE) to enter into 
     joint sponsorship agreements at DOE laboratories with state, 
     local, or other federal agencies and establish the parameters 
     under which the joint partnership agreements would operate.
       The House bill contained no similar provision.
       The Senate recedes.

          Title XXXII--Defense Nuclear Facilities Safety Board

                     Legislative Provisions Adopted

     Authorization (sec. 3201)
       The House bill contained a provision (sec. 3201) that would 
     authorize $19.0 million for the Defense Nuclear Facilities 
     Safety Board.
       The Senate amendment contained a similar provision (sec. 
     3201) that would authorize $19.5 million.
       The Senate recedes.

                   Legislative Provisions Not Adopted

     Authorization of appropriations for the formerly used sites 
         remedial action program of the Corps of Engineers
       The Senate amendment contained a provision (sec. 3202) that 
     would authorize $140.0 million for fiscal year 2003 for the 
     Department of the Army.
       The House bill contained no similar provision.
       The Senate recedes.
       The conferees agree to include these funds without specific 
     authorization.

                Title XXXIII--National Defense Stockpile

                     Legislative Provisions Adopted

     Authorized uses of National Defense Stockpile funds (sec. 
         3301)
       The House bill contained a provision (sec. 3301) that would 
     authorize $76.4 billion for the National Defense Stockpile.
       The Senate amendment contained no similar provision.
       The Senate recedes.

                 Title XXXIV--Naval Petroleum Reserves

                     Legislative Provisions Adopted

     Authorization of appropriations (sec. 3401)
       The House bill contained a provision (sec. 3401) that would 
     authorize $21.1 million for the Secretary of Energy for 
     activities relating to the naval petroleum reserves.
       The Senate amendment contained no similar provision.
       The Senate recedes.

                  Title XXXV--Maritime Administration

                     Legislative Provisions Adopted

     Authorization of appropriations for fiscal year 2003 (sec. 
         3501)
       The House bill contained a provision (sec. 3501) that would 
     authorize appropriations for the Maritime Administration.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Authority to convey vessel USS SPHINX (ARL-24) (sec. 3502)
       The House bill contained a provision (sec. 3502) that would 
     authorize the Secretary of Transportation to convey an 
     obsolete vessel to a nonprofit organization for display as a 
     military museum.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would clarify 
     terms under which the vessel could be transferred.
     Independent analysis of title XI insurance guarantee 
         applications (sec. 3503)
       The House bill contained a provision (sec. 3504) that would 
     amend the Merchant Marine Act, 1936 to permit the Secretary 
     of Transportation to obtain an independent analysis of an 
     application for a title XI loan guarantee.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Preparation as artificial reefs and scrapping of obsolete 
         vessels (sec. 3504)
       The House bill contained a provision (sec. 3503) that would 
     authorize the Secretary of Transportation to provide 
     financial assistance to States to help them prepare obsolete 
     vessels transferred from the National Defense Reserve Fleet 
     for use as artificial reefs.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would: (1) 
     require the Secretary and the Administrator of the 
     Environmental Protection Agency to jointly develop 
     environmental best management practices to be used in the 
     preparation of vessels for use as artificial reefs; (2) 
     require the establishment of one or more pilot programs to 
     explore the feasibility and advisability of various 
     alternatives for exporting obsolete vessels in the National 
     Defense Reserve Fleet for purposes of the dismantlement and 
     recycling of such vessels; and (3) clarify that the section 
     does not establish a preference for the reefing or export of 
     obsolete vessels in the National Defense Reserve Fleet over 
     other disposal alternatives (such as domestic scrapping) 
     available to the Secretary under existing law. The pilot 
     programs established pursuant to this section would be 
     authorized to include a total of no more than four vessels. 
     The conferees intend that the Secretary of Transportation 
     would have the discretion to choose which vessels to include 
     in the pilot programs.

             Title XXXVI--Atomic Energy Defense Provisions

     Short title (sec. 3601)
       The House bill contained a provision (sec. 3120) that would 
     set out the title of the Department of Energy National 
     Security Authorizations General Provisions Act and define 
     terms to be used in the Act.
       The Senate amendment contained no similar provision.
       The Senate recedes with a technical amendment that would 
     establish the name of the act as the Atomic Energy Defense 
     Act.
       Permanent provisions of law affecting the Department of 
     Defense are included in title 10, United States Code. Several 
     acts, such as the Department of Energy Organization Act 
     Public Law 95-91, and the Atomic Energy Act of 1954, Public 
     Law 83-703, provide various overarching legal authorities for 
     the Department of Energy (DOE), but there is no act or even a 
     single title or chapter in the United States Code where all 
     permanent provisions of law governing the national security 
     functions of the Department of Energy can be found.
       Over the years, as the number of provisions has grown, 
     researching the various provisions that are included in 
     annual defense authorization acts has become increasingly 
     difficult. The conferees believe the time has come to enact a 
     law that will be a comprehensive collection of the various 
     permanent authorities that govern the national security 
     activities of DOE. The goal is to have a single place in the 
     United States Code where these provision could be easily and 
     quickly referenced.
       The provisions described in sections 3601 and 3620-3631 
     will constitute the first sections of title B of the Atomic 
     Energy Defense Act, the DOE National Security Authorizations 
     General Provisions. Over the next several fiscal years, the 
     conferees, working with DOE, hope to reenact various 
     provisions of current law as sections of this new act. In 
     addition, as future provisions are enacted, the conferees 
     anticipate that such new provisions would also be included in 
     the new act. The conferees believe this effort to organize 
     and co-locate the various provisions will simplify efforts to 
     identify various statutory authorities that govern DOE.

                     Legislative Provisions Adopted

                         Subtitle A--[Reserved]

   Subtitle B--Department of Energy National Security Authorization 
                           General Provisions

     Definitions (sec. 3620)
       The House bill contained a provision (sec. 3120) that would 
     set out the title of the Department of Energy National 
     Security Authorizations General Provisions Act and define 
     terms to be used in the Act.
       The Senate amendment contained no similar provision.
       The Senate recedes with a technical amendment.
     Reprogramming (sec. 3621)
       The House bill contained a provision (sec. 3121) that would 
     prohibit the reprogramming of funds in excess of the amounts 
     authorized for national security programs until the Secretary 
     of Energy has notified the congressional defense committees 
     and a period of 30 days has elapsed after the date on which 
     the notification is received.
       The Senate amendment contained a similar provision (sec. 
     3121) that would prohibit the reprogramming of funds in 
     excess of 115 percent of the amount authorized for the 
     program or in excess of $5.0 million above the amount 
     authorized for the program, whichever is less, until the 
     Secretary of Energy submits a report to the congressional 
     defense committees and a period of 30 days has elapsed after 
     the date on which the report is received.
       The House recedes with an amendment that would make the 
     provision part of Subtitle B, the Department of Energy 
     National Security Authorizations General Provisions, of the 
     Atomic Energy Defense Act.
     Minor construction projects (sec. 3622)
       The House bill contained a provision (sec. 3122) that would 
     provide the Secretary of Energy with authority to conduct 
     minor construction projects using funds authorized to the 
     Secretary pursuant to a Department of Energy national 
     security authorization. If at any time during the period of 
     construction of any minor construction project, the most 
     current estimated cost exceeds the minor construction 
     threshold, the Secretary would be required to notify the 
     congressional defense committees and provide a report 
     explaining the reasons for the cost variation.
       The Senate amendment contained a similar provision.
       The Senate recedes.
     Limits on construction projects (sec. 3623)
       The House bill contained a provision (sec. 3123) that would 
     permit any construction project to be initiated and continued 
     only if the estimated cost for the project does not exceed, 
     by 25 percent, the higher of either the amount authorized for 
     the project or the most recent total estimated cost presented 
     to Congress as justification for such a project. The 
     Secretary of Energy would be prohibited from exceeding such 
     limits until

[[Page H8534]]

     30 legislative days after the Secretary submits to the 
     congressional defense committees a detailed report setting 
     forth the reasons for the increase. This provision would also 
     specify that the 25 percent limitation would not apply to 
     projects estimated to be a minor construction project under 
     $5.0 million.
       The Senate amendment contained a similar provision.
       The Senate recedes.
     Fund transfer authority (sec. 3624)
       The House bill contained a provision (sec. 3124) that would 
     permit funds authorized for the Department of Energy to be 
     transferred to other agencies of the government for 
     performance of work for which the funds were authorized and 
     appropriated. The provision would permit the merger of such 
     transferred funds with the authorizations of the agency to 
     which they are transferred. The provision would also limit, 
     to no more than five percent of the account, the amount of 
     funds authorized by this Act that may be transferred between 
     authorization accounts within the Department of Energy.
       The Senate amendment contained a similar provision.
       The Senate recedes.
     Conceptual and construction design (sec. 3625)
       The House bill contained a provision (sec. 3125) that would 
     limit the Secretary of Energy's authority to request 
     construction funding until the Secretary has completed a 
     conceptual design. This limitation would apply to 
     construction projects with a total estimated cost greater 
     than $5.0 million. If the estimated cost to prepare the 
     construction design exceeds $600,000, the provision would 
     require the Secretary to obtain a specific authorization to 
     obligate such funds. If the estimated cost to prepare a 
     conceptual design exceeds $3.0 million, the provision would 
     require the Secretary to request funds for the conceptual 
     design before requesting funds for construction. The 
     provision would further require the Secretary to submit to 
     Congress a report on each conceptual design completed under 
     this provision. The provision would also provide an exception 
     to these requirements in the case of an emergency.
       The Senate amendment contained a similar provision.
       The Senate recedes.
     Authority for emergency planning, design, and construction 
         activities (sec. 3626)
       The House bill contained a provision (sec. 3126) that would 
     permit the Secretary of Energy to perform planning and design 
     with any funds available to the Department of Energy (DOE) 
     pursuant to a DOE national security authorization including 
     those funds authorized for advance planning and construction 
     design, whenever the Secretary determines such activities 
     must proceed expeditiously to protect the public health and 
     safety, to meet the needs of national defense, or to protect 
     property. The provision would require the Secretary of Energy 
     to submit to Congress a report on each construction project 
     to be completed under this provision prior to exercising the 
     authority that would be provided by this provision.
       The Senate amendment contained a similar provision.
       The Senate recedes.
     Scope of authority to carry out plant projects (sec. 3627)
       The House bill contained a provision (sec. 3131) that would 
     clarify that the authority of the Secretary of Energy to 
     carry out plant projects includes authority for maintenance, 
     restoration, planning, construction, acquisition, 
     modification of facilities, and continuation of projects 
     authorized in prior years, and related projects.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Availability of funds (sec. 3628)
       The Senate amendment contained a provision (sec. 3128) that 
     would authorize amounts appropriated for operating expenses 
     or for plant and capital equipment for the Department of 
     Energy (DOE) to remain available until expended. Program 
     direction funds would remain available for expenditure until 
     the end of fiscal year 2004.
       The House bill contained a similar provision (sec. 3128) 
     that would provide that funds authorized to be appropriated 
     to the National Nuclear Security Administration are available 
     for expenditure for two years with the exception of the funds 
     for the Office of the Administrator, which would be available 
     for expenditure for one year.
       The House recedes with a technical amendment that would 
     provide that funds available to DOE pursuant to a national 
     security authorization for program direction are available 
     for obligation for one year--until the end of the fiscal year 
     for which they are authorized. In addition, this provision 
     would become a section in Subtitle B, the Department of 
     Energy National Security Authorizations General Provisions 
     Act, of the Atomic Energy Defense Act.
     Transfer of defense environmental management funds (sec. 
         3629)
       The House bill contained a provision (sec. 3129) that would 
     direct the Secretary of Energy to provide the manager of each 
     field office of the Department of Energy with the authority 
     to transfer defense environmental management activities funds 
     from a program or project under the jurisdiction of that 
     office to another such program or project. With certain 
     limitations, only one transfer may be made to or from any 
     program in one fiscal year, and no transfer may exceed $5.0 
     million. The Secretary of Energy would be required to notify 
     Congress within 30 days after any such transfer.
       The Senate amendment contained a similar provision (sec. 
     3129) that would have provided three transfers per year.
       The Senate recedes.
     Transfer of weapons activities funds (sec. 3630)
       The House bill contained a provision (sec. 3130) that would 
     direct the Secretary of Energy to 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. With certain limitations only one 
     transfer may be made to or from any program in one fiscal 
     year, and no transfer may exceed $5.0 million. The Secretary 
     of Energy would be required to notify Congress within 30 days 
     after any such transfer.
       The Senate amendment contained a similar provision (sec. 
     3130) that would have provided three transfers per year.
       The Senate recedes.
     Funds available for all national security programs of the 
         Department of Energy (sec. 3631)
       The House bill contained a provision (sec. 3127) that would 
     authorize, subject to section 3121 of the Department of 
     Energy National Security Authorizations General Provisions 
     Act and appropriations acts, amounts appropriated for 
     management and support activities and for general plant 
     projects to be made available for use in connection with all 
     national security programs of the Department of Energy.
       The Senate amendment contained a similar provision.
       The Senate recedes.

     From the Committee on Armed Services, for consideration of 
     the House amendment and the Senate amendment, and 
     modifications committed to conference:
     Bob Stump,
     Duncan Hunter,
     James V. Hansen,
     Curt Weldon,
     Joel Hefley,
     Jim Saxton,
     John M. McHugh,
     Terry Everett,
     Howard P. ``Buck'' McKeon,
     J.C. Watts, Jr.,
     Mac Thornberry,
     John N. Hostettler,
     Saxby Chambliss,
     Walter B. Jones,
     Van Hilleary,
     Lindsey Graham,
     Ike Skelton,
     John M. Spratt, Jr.,
     Solomon P. Ortiz,
     Lane Evans,
     Martin T. Meehan,
     Robert A Underwood,
     Thomas Allen,
     Silvestre Reyes,
     Jim Turner,
     Ellen O. Tauscher,
     From the Permanent Select Committee on Intelligence, for 
     consideration of matters within the jurisdiction of that 
     committee under clause 11 of rule X:
     Porter J. Goss,
     Doug Bereuter,
     From the Committee on Education and the Workforce, for 
     consideration of secs. 341-343, and 366 of the House 
     amendment, and secs. 331-333, 542, 656, 1064, and 1107 of the 
     Senate amendment, and modifications committed to conference:
     Johnny Isakson,
     Joe Wilson,
     George Miller,
     From the Committee on Government Reform, for consideration of 
     secs. 323, 804, 805, 1003, 1004, 1101-1106, 2811, and 2813 of 
     the House amendment, and secs, 241, 654, 817, 907, 1007-1009, 
     1061, 1101-1106, 2811, and 3173 of the Senate amendment, and 
     modifications committed to conference:
     Dan Burton,
     Dave Weldon,
     From the Committee on International Relations, for 
     consideration of secs. 1201, 1202, 1204, title XIII, and sec. 
     3142 of the House amendment, and subtitle A of title XII, 
     secs. 1212-1216, 3136, 3151, and 3156-3161 of the Senate 
     amendment, and modifications committed to conference:
     Henry Hyde,
     Benjamin A. Gilman,
     From the Committee on the Judiciary, for consideration of 
     secs. 811 and 1033 of the House amendment, and secs. 1067 and 
     1070 of the Senate amendment, and modifications committed to 
     conference:
     Lamar Smith,
     From the Committee on Resources, for consideration of secs. 
     311, 312, 601, title XIV, secs. 2821, 2832, 2841, and 2863 of 
     the House amendment, and secs. 601, 2821, 2823, 2828, and 
     2841 of the Senate amendment, and modifications committed to 
     conference:
     John J. Duncan, Jr.,
     From the Committee on Science, for consideration of secs. 
     244, 246, 1216, 3155, 3163 of the Senate amendment, and 
     modifications committed to conference:
     Sherwood L. Boehlert,
     Nick Smith,
     Ralph M. Hall,
     From the Committee on Small Business for consideration of 
     secs. 243, 824, and 829 of the Senate amendment and 
     modifications committed to conference:
     Donald A. Manzullo,
     Sue Kelly,

[[Page H8535]]

     From the Committee on Transportation and Infrastructure, for 
     consideration of sec. 601 of the House amendment, and secs. 
     601 and 1063 of the Senate amendment, and modifications 
     committed to conference:
     Don Young,
     Frank A. LoBiondo,
     Corrine Brown,
     From the Committee on Veterans' Affairs, for consideration of 
     secs. 641, 651, 721, 723, 724, 726, 727, and 728 of the House 
     amendment, and secs. 541 and 641 of the Senate amendment, and 
     modifications committed to conference:
     Chris Smith,
                                Managers on the Part of the House.

     Carl Levin,
     Ted Kennedy,
     Robert C. Byrd,
     Joseph I. Lieberman,
     Max Cleland,
     Mary L. Landrieu,
     Jack Reed,
     Daniel K. Akaka,
     Bill Nelson,
     Ben Nelson,
     Jean Carnahan
     Mark Dayton,
     Jeff Bingaman,
     John W. Warner,
     Strom Thurmond,
     John McCain,
     James M. Inhofe,
     Pat Roberts,
     Jeff Sessions,
     Susan Collins,
     Jim Bunning,
     Managers on the Part of the Senate.

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