[Congressional Record Volume 150, Number 128 (Saturday, October 9, 2004)]
[House]
[Pages H9125-H9162]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




    CONFERENCE REPORT ON H.R. 4567, DEPARTMENT OF HOMELAND SECURITY 
                        APPROPRIATIONS ACT, 2005

  Mr. ROGERS of Kentucky submitted the following conference report and 
statement on the bill (H.R. 4567) making appropriations for the 
Department of Homeland Security for the fiscal year ending September 
30, 2005, and for other purposes:
  (Conference report will be printed in Book II of the Record.)

                  Conference Report (H. Rept. 108-774)

       The committee of conference on the disagreeing votes of the 
     two Houses on the amendment of the Senate to the bill (H.R. 
     4567) ``making appropriations for the Department of Homeland 
     Security for the fiscal year ending September 30, 2005, and 
     for other purposes'', having met, after full and free 
     conference, have agreed to recommend and do recommend to 
     their respective Houses as follows:
       That the House recede from its disagreement to the 
     amendment of the Senate, and

[[Page H9126]]

     agree to the same with an amendment, as follows:
       In lieu of the matter stricken and inserted by said 
     amendment, insert:
     That the following sums are appropriated, out of any money in 
     the Treasury not otherwise appropriated, for the Department 
     of Homeland Security for the fiscal year ending September 30, 
     2005, and for other purposes, namely:

            TITLE I--DEPARTMENTAL MANAGEMENT AND OPERATIONS

            Office of the Secretary and Executive Management

       For necessary expenses of the Office of the Secretary of 
     Homeland Security, as authorized by section 102 of the 
     Homeland Security Act of 2002 (6 U.S.C. 112), and executive 
     management of the Department of Homeland Security, as 
     authorized by law, $85,034,000: Provided, That not to exceed 
     $40,000 shall be for official reception and representation 
     expenses.

              Office of the Under Secretary for Management

       For necessary expenses of the Office of the Under Secretary 
     for Management, as authorized by sections 701-705 of the 
     Homeland Security Act of 2002 (6 U.S.C. 341-345), 
     $151,153,000: Provided, That not to exceed $3,000 shall be 
     for official reception and representation expenses: Provided 
     further, That of the total amount provided, $65,081,000 shall 
     remain available until expended solely for the alteration and 
     improvement of facilities, tenant improvements, and 
     relocation costs to consolidate Department headquarters 
     operations.

                 Office of the Chief Financial Officer

       For necessary expenses of the Office of the Chief Financial 
     Officer, as authorized by section 103 of the Homeland 
     Security Act of 2002 (6 U.S.C. 113), $13,000,000.

                Office of the Chief Information Officer

       For necessary expenses of the Office of the Chief 
     Information Officer, as authorized by section 103 of the 
     Homeland Security Act of 2002 (6 U.S.C. 113), and Department-
     wide technology investments, $275,270,000; of which 
     $67,270,000 shall be available for salaries and expenses; and 
     of which $208,000,000 shall be available for development and 
     acquisition of information technology equipment, software, 
     services, and related activities for the Department of 
     Homeland Security, and for the costs of conversion to 
     narrowband communications, including the cost for operation 
     of the land mobile radio legacy systems, to remain available 
     until expended: Provided, That none of the funds appropriated 
     shall be used to support or supplement the appropriations 
     provided for the United States Visitor and Immigrant Status 
     Indicator Technology project or the Automated Commercial 
     Environment.

                      Office of Inspector General

       For necessary expenses of the Office of Inspector General 
     in carrying out the provisions of the Inspector General Act 
     of 1978 (5 U.S.C. App.), $82,317,000, of which not to exceed 
     $100,000 may be used for certain confidential operational 
     expenses, including the payment of informants, to be expended 
     at the direction of the Inspector General.

          TITLE II--SECURITY, ENFORCEMENT, AND INVESTIGATIONS

                   BORDER AND TRANSPORTATION SECURITY

  Office of the Under Secretary for Border and Transportation Security

                         salaries and expenses

       For necessary expenses of the Office of the Under Secretary 
     for Border and Transportation Security, as authorized by 
     subtitle A of title IV of the Homeland Security Act of 2002 
     (6 U.S.C. 201 et seq.), $9,617,000: Provided, That not to 
     exceed $3,000 shall be for official reception and 
     representation expenses.


    united states visitor and immigrant status indicator technology

       For necessary expenses for the development of the United 
     States Visitor and Immigrant Status Indicator Technology 
     project, as authorized by section 110 of the Illegal 
     Immigration Reform and Immigration Responsibility Act of 1996 
     (8 U.S.C. 1221 note), $340,000,000, to remain available until 
     expended: Provided, That of the funds appropriated under this 
     heading, $254,000,000 may not be obligated for the United 
     States Visitor and Immigrant Status Indicator Technology 
     project until the Committees on Appropriations of the Senate 
     and the House of Representatives receive and approve a plan 
     for expenditure prepared by the Secretary of Homeland 
     Security that:
       (1) meets the capital planning and investment control 
     review requirements established by the Office of Management 
     and Budget, including Circular A-11, part 7;
       (2) complies with the Department of Homeland Security 
     enterprise information systems architecture;
       (3) complies with the acquisition rules, requirements, 
     guidelines, and systems acquisition management practices of 
     the Federal Government;
       (4) is reviewed and approved by the Department of Homeland 
     Security Investment Review Board, the Secretary of Homeland 
     Security, and the Office of Management and Budget; and
       (5) is reviewed by the Government Accountability Office.

                     Customs and Border Protection


                         Salaries and Expenses

                    (including rescission of funds)

       For necessary expenses for enforcement of laws relating to 
     border security, immigration, customs, and agricultural 
     inspections and regulatory activities related to plant and 
     animal imports; acquisition, lease, maintenance and operation 
     of aircraft; purchase and lease of up to 4,500 (3,935 for 
     replacement only) police-type vehicles; and contracting with 
     individuals for personal services abroad; $4,534,119,000; of 
     which $3,000,000 shall be derived from the Harbor Maintenance 
     Trust Fund for administrative expenses related to the 
     collection of the Harbor Maintenance Fee pursuant to section 
     9505(c)(3) of the Internal Revenue Code of 1986 and 
     notwithstanding section 1511(e)(1) of the Homeland Security 
     Act of 2002 (6 U.S.C. 551(e)(1)); of which not to exceed 
     $35,000 shall be for official reception and representation 
     expenses; of which not less than $131,436,000 shall be for 
     Air and Marine Operations; of which not to exceed 
     $156,162,000 shall remain available until September 30, 2006, 
     for inspection and surveillance technology, unmanned aerial 
     vehicles, and equipment for the Container Security 
     Initiative; of which such sums as become available in the 
     Customs User Fee Account, except sums subject to section 
     13031(f)(3) of the Consolidated Omnibus Budget Reconciliation 
     Act of 1985 (19 U.S.C. 58c(f)(3)), shall be derived from that 
     account; of which not to exceed $150,000 shall be available 
     for payment for rental space in connection with preclearance 
     operations; of which not to exceed $1,000,000 shall be for 
     awards of compensation to informants, to be accounted for 
     solely under the certificate of the Under Secretary for 
     Border and Transportation Security; and of which not to 
     exceed $5,000,000 shall be available for payments or advances 
     arising out of contractual or reimbursable agreements with 
     State and local law enforcement agencies while engaged in 
     cooperative activities related to immigration: Provided, That 
     for fiscal year 2005, the aggregate overtime limitation 
     prescribed in section 5(c)(1) of the Act of February 13, 1911 
     (19 U.S.C. 267(c)(1)) shall be $35,000; and notwithstanding 
     any other provision of law, none of the funds appropriated in 
     this Act may be available to compensate any employee of the 
     Bureau of Customs and Border Protection for aggregate 
     overtime and premium pay, from whatever source, in an amount 
     that exceeds such limitation, except in individual cases 
     determined by the Under Secretary for Border and 
     Transportation Security, or a designee, to be necessary for 
     national security purposes, to prevent excessive costs, or in 
     cases of immigration emergencies: Provided further, That of 
     the total amount provided, $12,725,000 shall be for 
     activities to enforce laws against forced child labor in 
     fiscal year 2005, of which not to exceed $4,000,000 shall 
     remain available until expended: Provided further, That none 
     of the funds appropriated in this Act may be obligated to 
     construct permanent Border Patrol checkpoints in the Bureau 
     of Customs and Border Protection's Tucson sector: Provided 
     further, That the Commissioner, Bureau of Customs and Border 
     Protection, is directed to submit to the Committees on 
     Appropriations of the Senate and the House of Representatives 
     a plan for expenditure that includes location, design, costs, 
     and benefits of each proposed Tucson sector permanent 
     checkpoint: Provided further, That the Bureau of Customs and 
     Border Protection shall relocate its tactical checkpoints in 
     the Tucson sector at least an average of once every 14 days 
     in a manner designed to prevent persons subject to inspection 
     from predicting the location of any such checkpoint.
       In addition, of the funds appropriated under this heading 
     in chapter 6 of title I of Public Law 108-11 (117 Stat. 583), 
     $63,010,000 are rescinded.


                        Automation Modernization

       For expenses for customs and border protection automated 
     systems, $449,909,000, to remain available until expended, of 
     which not less than $321,690,000 shall be for the development 
     of the Automated Commercial Environment: Provided, That none 
     of the funds appropriated under this heading may be obligated 
     for the Automated Commercial Environment until the Committees 
     on Appropriations of the Senate and the House of 
     Representatives receive and approve a plan for expenditure 
     prepared by the Under Secretary for Border and Transportation 
     Security that:
       (1) meets the capital planning and investment control 
     review requirements established by the Office of Management 
     and Budget, including Circular A-11, part 7;
       (2) complies with the Department of Homeland Security's 
     enterprise information systems architecture;
       (3) complies with the acquisition rules, requirements, 
     guidelines, and systems acquisition management practices of 
     the Federal Government;
       (4) is reviewed and approved by the Department of Homeland 
     Security Investment Review Board, the Secretary of Homeland 
     Security, and the Office of Management and Budget; and
       (5) is reviewed by the Government Accountability Office.


 Air and Marine Interdiction, Operations, Maintenance, and Procurement

       For necessary expenses for the operations, maintenance, and 
     procurement of marine vessels, aircraft, and other related 
     equipment of the air and marine program, including 
     operational training and mission-related travel, and rental 
     payments for facilities occupied by the air or marine 
     interdiction and demand reduction programs, the operations of 
     which include the following: the interdiction of narcotics 
     and other goods; the provision of support to Federal, State, 
     and local agencies in the enforcement or administration of 
     laws enforced by the Department of Homeland Security; and at 
     the discretion of the Under Secretary for Border and 
     Transportation Security, the provision of assistance to 
     Federal, State, and local agencies in other law enforcement 
     and emergency humanitarian efforts, $257,535,000, to remain 
     available until expended: Provided, That no aircraft or other 
     related equipment, with the exception of aircraft that are 
     one of a kind and have been identified as excess to Bureau of 
     Customs and Border Protection requirements and aircraft that 
     have been damaged beyond repair, shall be

[[Page H9127]]

     transferred to any other Federal agency, department, or 
     office outside of the Department of Homeland Security during 
     fiscal year 2005 without the prior approval of the Committees 
     on Appropriations of the Senate and the House of 
     Representatives.


                              Construction

       For necessary expenses to plan, construct, renovate, equip, 
     and maintain buildings and facilities necessary for the 
     administration and enforcement of the laws relating to 
     customs and immigration, $91,718,000, to remain available 
     until expended.

                  Immigration and Customs Enforcement


                         Salaries and Expenses

       For necessary expenses for enforcement of immigration and 
     customs laws, detention and removals, and investigations; and 
     purchase and lease of up to 2,300 (2,000 for replacement 
     only) police-type vehicles, $2,438,494,000, of which not to 
     exceed $5,000,000 shall be available until expended for 
     conducting special operations pursuant to section 3131 of the 
     Customs Enforcement Act of 1986 (19 U.S.C. 2081); of which 
     not to exceed $15,000 shall be for official reception and 
     representation expenses; of which not to exceed $1,000,000 
     shall be for awards of compensation to informants, to be 
     accounted for solely under the certificate of the Under 
     Secretary for Border and Transportation Security; of which 
     not less than $102,000 shall be for promotion of public 
     awareness of the child pornography tipline; of which not less 
     than $203,000 shall be for Project Alert; and of which not to 
     exceed $11,216,000 shall be available to fund or reimburse 
     other Federal agencies for the costs associated with the 
     care, maintenance, and repatriation of smuggled illegal 
     aliens: Provided, That none of the funds appropriated shall 
     be available to compensate any employee for overtime in an 
     annual amount in excess of $35,000, except that the Under 
     Secretary for Border and Transportation Security may waive 
     that amount as necessary for national security purposes and 
     in cases of immigration emergencies: Provided further, That 
     of the total amount provided, $3,045,000 shall be for 
     activities to enforce laws against forced child labor in 
     fiscal year 2005, of which not to exceed $2,000,000 shall 
     remain available until expended.


                          Federal Air Marshals

       For necessary expenses of the Federal Air Marshals, 
     $662,900,000.


                       federal protective service

       The revenues and collections of security fees credited to 
     this account, not to exceed $478,000,000, shall be available 
     until expended for necessary expenses related to the 
     protection of federally-owned and leased buildings and for 
     the operations of the Federal Protective Service.


                        automation modernization

       For expenses of immigration and customs enforcement 
     automated systems, $39,605,000, to remain available until 
     expended: Provided, That none of the funds appropriated under 
     this heading may be obligated until the Committees on 
     Appropriations of the Senate and the House of Representatives 
     receive and approve a plan for expenditure prepared by the 
     Under Secretary for Border and Transportation Security that:
       (1) meets the capital planning and investment control 
     review requirements established by the Office of Management 
     and Budget, including Circular A-11, part 7;
       (2) complies with the Department of Homeland Security 
     enterprise information systems architecture;
       (3) complies with the acquisition rules, requirements, 
     guidelines, and systems acquisition management practices of 
     the Federal Government;
       (4) is reviewed and approved by the Department of Homeland 
     Security Investment Review Board, the Secretary of Homeland 
     Security, and the Office of Management and Budget; and
       (5) is reviewed by the Government Accountability Office.


                              construction

       For necessary expenses to plan, construct, renovate, equip, 
     and maintain buildings and facilities necessary for the 
     administration and enforcement of the laws relating to 
     customs and immigration, $26,179,000, to remain available 
     until expended.

                 Transportation Security Administration


                           Aviation Security

       For necessary expenses of the Transportation Security 
     Administration related to providing civil aviation security 
     services pursuant to the Aviation and Transportation Security 
     Act (Public Law 107-71; 115 Stat. 597), $4,323,523,000, to 
     remain available until expended, of which not to exceed 
     $3,000 shall be for official reception and representation 
     expenses: Provided, That of the total amount provided under 
     this heading, not to exceed $2,049,173,000 shall be for 
     passenger screening activities; not to exceed $1,452,460,000 
     shall be for baggage screening activities, of which 
     $180,000,000 shall be available only for procurement of 
     checked baggage explosive detection systems and $45,000,000 
     shall be available only for installation of checked baggage 
     explosive detection systems; and not to exceed $821,890,000 
     shall be for airport security direction and enforcement 
     presence: Provided further, That security service fees 
     authorized under section 44940 of title 49, United States 
     Code, shall be credited to this appropriation as offsetting 
     collections: Provided further, That, except as provided in 
     the following proviso, the sum herein appropriated from the 
     General Fund shall be reduced on a dollar-for-dollar basis as 
     such offsetting collections are received during fiscal year 
     2005, so as to result in a final fiscal year appropriation 
     from the General Fund estimated at not more than 
     $2,500,523,000: Provided further, That the Government 
     Accountability Office shall review, using a methodology 
     deemed appropriate by the Comptroller General, the calendar 
     year 2000 cost information for screening passengers and 
     property pursuant to section 44940(a)(2) of title 49, United 
     States Code, of air carriers and foreign air carriers engaged 
     in air transportation and intrastate air transportation and 
     report the information within six months of enactment of the 
     Act but no earlier than March 31, 2005, to the Committees on 
     Appropriations of the Senate and House of Representatives; 
     the House Transportation and Infrastructure Committee; and 
     the Senate Committee on Commerce, Science, and 
     Transportation: Provided further, That the Comptroller 
     General, or any of the Comptroller General's duly authorized 
     representatives, shall have access, for the purpose of 
     reviewing such cost information, to the personnel and to the 
     books; accounts; documents; papers; records (including 
     electronic records); and automated data and files of such air 
     carriers, airport authorities, and their contractors; that 
     the Comptroller General deems relevant for purposes of 
     reviewing the information sought pursuant to the provisions 
     of the preceding proviso: Provided further, That the 
     Comptroller General may obtain and duplicate any such 
     records, documents, working papers, automated data and files, 
     or other information relevant to such reviews without cost to 
     the Comptroller General and the Comptroller General's right 
     of access to such information shall be enforceable pursuant 
     to section 716(c) of title 31, United States Code: Provided 
     further, That the Comptroller General shall maintain the same 
     level of confidentiality for information made available under 
     the preceding provisos as that required under section 716(e) 
     of title 31, United States Code: Provided further, That upon 
     the request of the Comptroller General, the Secretary of the 
     Department of Homeland Security shall transfer to the 
     Government Accountability Office from appropriations 
     available for administration expenses of the Transportation 
     Security Administration, the amount requested by the 
     Comptroller General, not to exceed $5,000,000, to cover the 
     full costs of any review and report of the calendar year 2000 
     cost information conducted by the Comptroller General, with 
     15 days advance notice by the Transportation Security 
     Administration to the Committees on Appropriations of the 
     Senate and House of Representatives: Provided further, That 
     the Comptroller General shall credit funds transferred under 
     the authority of the preceding proviso to the account 
     established for salaries and expenses of the Government 
     Accountability Office, and such amount shall be available 
     upon receipt and without fiscal year limitation to cover the 
     full costs of the review and report: Provided further, That 
     any funds transferred and credited under the authority of the 
     preceding provisos that are not needed for the Comptroller 
     General's performance of such review and report shall be 
     returned to the Department of Homeland Security and credited 
     to the appropriation from which transferred: Provided 
     further, That beginning with amounts due in calendar year 
     2005, if the result of this review is that an air carrier or 
     foreign air carrier has not paid the appropriate fee to the 
     Transportation Security Administration pursuant to section 
     44940(a)(2) of title 49 United States Code, the Secretary of 
     Homeland Security shall undertake all necessary actions to 
     ensure that such amounts are collected: Provided further, 
     That such collections received during fiscal year 2005 shall 
     be credited to this appropriation as offsetting collections 
     and shall be available only for security modifications at 
     commercial airports: Provided further, That if the Secretary 
     exercises his discretion to set the fee under 44940(a)(2) of 
     title 49 United States Code, such determination shall not be 
     subject to judicial review: Provided further, That none of 
     the funds in this Act shall be used to recruit or hire 
     personnel into the Transportation Security Administration 
     which would cause the agency to exceed a staffing level of 
     45,000 full-time equivalent screeners: Provided further, That 
     notwithstanding 49 U.S.C. 44923, the government's share of 
     the cost for a project under any letter of intent shall be 75 
     percent for any medium or large hub airport.


                       Maritime and Land Security

       For necessary expenses of the Transportation Security 
     Administration related to maritime and land transportation 
     security grants and services pursuant to the Aviation and 
     Transportation Security Act (Public Law 107-71; 115 Stat. 
     597), $48,000,000, to remain available until September 30, 
     2006.
       In addition, fees authorized by section 520 of Public Law 
     108-90 shall be credited to this appropriation and shall be 
     available until expended: Provided, That in fiscal year 2005, 
     fee collections shall be used for initial administrative 
     costs of credentialing activities.


                              Intelligence

       For necessary expenses for intelligence activities pursuant 
     to the Aviation and Transportation Security Act (Public Law 
     107-71; 115 Stat. 597), $14,000,000.


                        Research and Development

       For necessary expenses for research and development related 
     to transportation security, $178,000,000, to remain available 
     until expended: Provided, That of the total amount provided 
     under this heading, $54,000,000 shall be available for the 
     research and development of explosive detection devices.


                             administration

       For necessary expenses for administrative activities of the 
     Transportation Security Administration to carry out the 
     Aviation and Transportation Security Act (Public Law 107-71; 
     115 Stat. 597), $519,852,000, to remain available until 
     September 30, 2006.

                       United States Coast Guard


                           operating expenses

       For necessary expenses for the operation and maintenance of 
     the Coast Guard not otherwise provided for, purchase or lease 
     of not to exceed 25 passenger motor vehicles for replacement

[[Page H9128]]

     only, payments pursuant to section 156 of Public Law 97-377 
     (42 U.S.C. 402 note) and section 229(b) of the Social 
     Security Act (42 U.S.C. 429(b)), and recreation and welfare, 
     $5,157,220,000, of which $1,204,000,000 shall be for defense-
     related activities; of which $24,500,000 shall be derived 
     from the Oil Spill Liability Trust Fund to carry out the 
     purposes of section 1012(a)(5) of the Oil Pollution Act of 
     1990; and of which not to exceed $3,000 shall be for official 
     reception and representation expenses: Provided, That none of 
     the funds appropriated by this or any other Act shall be 
     available for administrative expenses in connection with 
     shipping commissioners in the United States: Provided 
     further, That none of the funds provided by this Act shall be 
     available for expenses incurred for yacht documentation under 
     section 12109 of title 46, United States Code, except to the 
     extent fees are collected from yacht owners and credited to 
     this appropriation: Provided further, That notwithstanding 
     section 1116(c) of title 10, United States Code, amounts made 
     available under this heading may be used to make payments 
     into the Department of Defense Medicare-Eligible Retiree 
     Health Care Fund for fiscal year 2005 under section 1116(a) 
     of such title.


                environmental compliance and restoration

       For necessary expenses to carry out the Coast Guard's 
     environmental compliance and restoration functions under 
     chapter 19 of title 14, United States Code, $17,000,000, to 
     remain available until expended.


                            reserve training

       For necessary expenses of the Coast Guard Reserve, as 
     authorized by law; operations and maintenance of the reserve 
     program; personnel and training costs; and equipment and 
     services; $113,000,000.


              Acquisition, Construction, and Improvements

                    (including rescission of funds)

       For necessary expenses of acquisition, construction, 
     renovation, and improvement of aids to navigation, shore 
     facilities, vessels, and aircraft, including equipment 
     related thereto; and maintenance, rehabilitation, lease and 
     operation of facilities and equipment, as authorized by law, 
     $982,200,000, of which $20,000,000 shall be derived from the 
     Oil Spill Liability Trust Fund to carry out the purposes of 
     section 1012(a)(5) of the Oil Pollution Act of 1990; of which 
     $19,750,000 shall be available until September 30, 2009, to 
     acquire, repair, renovate, or improve vessels, small boats, 
     and related equipment; of which $2,500,000 shall be available 
     until September 30, 2009, to increase aviation capability; of 
     which $158,000,000 shall be available until September 30, 
     2007, for other equipment; of which $5,000,000 shall be 
     available until September 30, 2007, for shore facilities and 
     aids to navigation facilities; of which $73,000,000 shall be 
     available for personnel compensation and benefits and related 
     costs; and of which $723,950,000 shall be available until 
     September 30, 2009, for the Integrated Deepwater Systems 
     program: Provided, That the Commandant of the Coast Guard is 
     authorized to dispose of surplus real property, by sale or 
     lease, and the proceeds shall be credited to this 
     appropriation as offsetting collections and shall be 
     available until September 30, 2007, only for Rescue 21: 
     Provided further, That the Secretary of Homeland Security 
     shall submit to the Congress, in conjunction with the 
     President's fiscal year 2006 budget, a new Deepwater baseline 
     that identifies revised acquisition timelines for each asset 
     contained in the Deepwater program; a timeline and detailed 
     justification for each new asset that is determined to be 
     necessary to fulfill homeland and national security functions 
     or multi-agency procurements as identified by the Joint 
     Requirements Council; a detailed description of the revised 
     mission requirements and their corresponding impact on the 
     Deepwater program's acquisition timeline; and funding levels 
     for each asset, whether new or continuing: Provided further, 
     That the Secretary shall annually submit to the Congress, at 
     the time that the President's budget is submitted under 
     section 1105(a) of title 31, a future-years capital 
     investment plan for the Coast Guard that identifies for each 
     capital budget line item--
       (1) the proposed appropriation included in that budget;
       (2) the total estimated cost of completion;
       (3) projected funding levels for each fiscal year for the 
     next five fiscal years or until project completion, whichever 
     is earlier;
       (4) an estimated completion date at the projected funding 
     levels; and
       (5) changes, if any, in the total estimated cost of 
     completion or estimated completion date from previous future-
     years capital investment plans submitted to the Congress:
     Provided further, That the Secretary shall ensure that 
     amounts specified in the future-years capital investment plan 
     are consistent to the maximum extent practicable with 
     proposed appropriations necessary to support the programs, 
     projects, and activities of the Coast Guard in the 
     President's budget as submitted under section 1105(a) of 
     title 31 for that fiscal year: Provided further, That any 
     inconsistencies between the capital investment plan and 
     proposed appropriations shall be identified and justified: 
     Provided further, That consistent with the preceding 
     provisos, the budget for fiscal year 2006 that is submitted 
     under section 1105(a) of title 31, United States Code, shall 
     include an amount for the Coast Guard that is sufficient to 
     fund delivery of a long-term maritime patrol aircraft 
     capability that is consistent with the original procurement 
     plan for the CN-235 aircraft beyond the three aircraft 
     already funded in previous fiscal years.
       In addition, of the funds appropriated under this heading 
     in Public Law 108-90, $16,000,000 are rescinded.


                         Alteration of Bridges

       For necessary expenses for alteration or removal of 
     obstructive bridges, $15,900,000, to remain available until 
     expended.


              Research, Development, Test, and Evaluation

       For necessary expenses for applied scientific research, 
     development, test, and evaluation, and for maintenance, 
     rehabilitation, lease and operation of facilities and 
     equipment, as authorized by law, $18,500,000, to remain 
     available until expended, of which $2,000,000 shall be 
     derived from the Oil Spill Liability Trust Fund to carry out 
     the purposes of section 1012(a)(5) of the Oil Pollution Act 
     of 1990: Provided, That there may be credited to and used for 
     the purposes of this appropriation funds received from State 
     and local governments, other public authorities, private 
     sources, and foreign countries, for expenses incurred for 
     research, development, testing, and evaluation.


                              Retired Pay

       For retired pay, including the payment of obligations 
     otherwise chargeable to lapsed appropriations for this 
     purpose, payments under the Retired Serviceman's Family 
     Protection and Survivor Benefits Plans, payment for career 
     status bonuses under the National Defense Authorization Act, 
     and payments for medical care of retired personnel and their 
     dependents under chapter 55 of title 10, United States Code, 
     $1,085,460,000.

                      United States Secret Service


                         salaries and expenses

       For necessary expenses of the United States Secret Service, 
     including purchase of not to exceed 610 vehicles for police-
     type use, which shall be for replacement only, and hire of 
     passenger motor vehicles; purchase of American-made 
     motorcycles; hire of aircraft; services of expert witnesses 
     at such rates as may be determined by the Director; rental of 
     buildings in the District of Columbia, and fencing, lighting, 
     guard booths, and other facilities on private or other 
     property not in Government ownership or control, as may be 
     necessary to perform protective functions; payment of per 
     diem or subsistence allowances to employees where a 
     protective assignment during the actual day or days of the 
     visit of a protectee requires an employee to work 16 hours 
     per day or to remain overnight at his or her post of duty; 
     conduct of and participation in firearms matches; 
     presentation of awards; travel of Secret Service employees on 
     protective missions without regard to the limitations on such 
     expenditures in this or any other Act if approval is obtained 
     in advance from the Committees on Appropriations of the 
     Senate and the House of Representatives; research and 
     development; grants to conduct behavioral research in support 
     of protective research and operations; and payment in advance 
     for commercial accommodations as may be necessary to perform 
     protective functions; $1,172,125,000, of which not to exceed 
     $25,000 shall be for official reception and representation 
     expenses; of which not to exceed $100,000 shall be to provide 
     technical assistance and equipment to foreign law enforcement 
     organizations in counterfeit investigations; of which 
     $2,100,000 shall be for forensic and related support of 
     investigations of missing and exploited children; and of 
     which $5,000,000 shall be a grant for activities related to 
     the investigations of exploited children and shall remain 
     available until expended: Provided, That up to $18,000,000 
     provided for protective travel shall remain available until 
     September 30, 2006: Provided further, That of the total 
     amount appropriated, not less than $5,000,000 shall be 
     available solely for the unanticipated costs related to 
     security operations for National Special Security Events, to 
     remain available until expended: Provided further, That the 
     United States Secret Service is authorized to obligate funds 
     in anticipation of reimbursements from agencies and entities, 
     as defined in section 105 of title 5, United States Code, 
     receiving training sponsored by the James J. Rowley Training 
     Center, except that total obligations at the end of the 
     fiscal year shall not exceed total budgetary resources 
     available under this heading at the end of the fiscal year.


                           OPERATING EXPENSES

                         (RESCISSION OF FUNDS)

       Of the funds appropriated under this heading in chapter 6 
     of title I of Public Law 108-11 (117 Stat. 581), $750,279 are 
     rescinded.


     acquisition, construction, improvements, and related expenses

       For necessary expenses for acquisition, construction, 
     repair, alteration, and improvement of facilities, 
     $3,633,000, to remain available until expended.

                  TITLE III--PREPAREDNESS AND RECOVERY

   Office of State and Local Government Coordination and Preparedness


                     Management and Administration

       For necessary expenses for the Office of State and Local 
     Government Coordination and Preparedness, $3,546,000: 
     Provided, That not to exceed $2,000 shall be for official 
     reception and representation expenses.


                        State and Local Programs

       For grants, contracts, cooperative agreements, and other 
     activities, including grants to State and local governments 
     for terrorism prevention activities, notwithstanding any 
     other provision of law, $3,086,300,000, which shall be 
     allocated as follows:
       (1) $1,100,000,000 for formula-based grants and 
     $400,000,000 for law enforcement terrorism prevention grants 
     pursuant to section 1014 of the USA PATRIOT ACT (42 U.S.C. 
     3714): Provided, That the application for grants shall be 
     made available to States within 45 days after enactment of 
     this Act; that States shall submit applications within 45 
     days after the grant announcement; and that the Office of 
     State and Local Government Coordination and Preparedness 
     shall act within 15 days after receipt of an

[[Page H9129]]

     application: Provided further, That each State shall obligate 
     not less than 80 percent of the total amount of the grant to 
     local governments within 60 days after the grant award.
       (2) $1,200,000,000 for discretionary grants, as determined 
     by the Secretary of Homeland Security, of which--
       (A) $885,000,000 shall be for use in high-threat, high-
     density urban areas, of which $25,000,000 shall be available 
     for assistance to organizations (as described under section 
     501(c)(3) of the Internal Revenue Code of 1986 and exempt 
     from tax section 501(a) of such Code) as determined by the 
     Secretary of Homeland Security to be at high-risk of 
     international terrorist attack;
       (B) $150,000,000 shall be for port security grants, which 
     shall be distributed under the same terms and conditions as 
     provided for under Public Law 107-117;
       (C) $5,000,000 shall be for trucking industry security 
     grants;
       (D) $10,000,000 shall be for intercity bus security grants; 
     and
       (E) $150,000,000 shall be for intercity passenger rail 
     transportation (as defined in section 24102 of title 49, 
     United States Code), freight rail, and transit security 
     grants:
     Provided, That no less than 80 percent of any grant under 
     this paragraph to a State shall be made available by the 
     State to local governments within 60 days after the receipt 
     of the funds: Provided further, That section 1014(c)(3) of 
     the USA PATRIOT ACT (42 U.S.C. 3714(c)(3)) shall not apply to 
     grants under this paragraph.
       (3) $50,000,000 shall be available for the establishment of 
     a technology transfer program: Provided, That of the amount 
     made available under this paragraph, $10,000,000 is available 
     to be used for commercially-available equipment testing and 
     validation to determine appropriateness for inclusion in the 
     technology transfer program.
       (4) $336,300,000 for training, exercises, technical 
     assistance, and other programs:
     Provided, That, none of the grants provided under this 
     heading shall be used for the construction or renovation of 
     facilities; except for a minor perimeter security project, 
     not to exceed $1,000,000, as determined necessary by the 
     Secretary of Homeland Security: Provided further, That the 
     proceeding proviso shall not apply to grants under (2)(B) and 
     (E) of this heading: Provided further, That grantees shall 
     provide additional reports on their use of funds, as 
     determined necessary by the Secretary of Homeland Security: 
     Provided further, That funds appropriated for law enforcement 
     terrorism prevention grants under paragraph (1) and 
     discretionary grants under paragraph (2)(A) of this heading 
     shall be available for operational costs, to include 
     personnel overtime and overtime associated with Office of 
     State and Local Government Coordination and Preparedness 
     certified training, as needed: Provided further, That in 
     accordance with the Department's implementation plan for 
     Homeland Security Presidential Directive 8, the Office of 
     State and Local Government Coordination and Preparedness 
     shall provide State and local jurisdictions with nationally-
     accepted first responder preparedness levels no later than 
     January 31, 2005; include in the fiscal year 2005 formula-
     based grant guidance guidelines for State and local 
     jurisdictions to adopt national preparedness standards in 
     fiscal year 2006; and issue final guidance on the 
     implementation of the National Preparedness Goal no later 
     than March 31, 2005: Provided further, That the fiscal year 
     2005 formula-based and law enforcement terrorism prevention 
     grants under paragraph (1) shall be allocated in the same 
     manner as fiscal year 2004.


                     firefighter assistance grants

       For necessary expenses for programs authorized by the 
     Federal Fire Prevention and Control Act of 1974 (15 U.S.C. 
     2201 et seq.), $715,000,000, of which $650,000,000 shall be 
     available to carry out section 33 (15 U.S.C. 2229) and 
     $65,000,000 shall be available to carry out section 34 (15 
     U.S.C. 2229a) of the Act, to remain available until September 
     30, 2006: Provided, That not to exceed 5 percent of this 
     amount shall be available for program administration.


                Emergency Management Performance Grants

       For necessary expenses for emergency management performance 
     grants, as authorized by the National Flood Insurance Act of 
     1968 (42 U.S.C. 4001 et seq.), the Robert T. Stafford 
     Disaster Relief and Emergency Assistance Act (42 U.S.C. 5121 
     et seq.), the Earthquake Hazards Reductions Act of 1977 (42 
     U.S.C. 7701 et seq.), and Reorganization Plan No. 3 of 1978 
     (5 U.S.C. App.), $180,000,000: Provided, That total 
     administrative costs shall not exceed 3 percent of the total 
     appropriation.

                         Counterterrorism Fund

       For necessary expenses, as determined by the Secretary of 
     Homeland Security, to reimburse any Federal agency for the 
     costs of providing support to counter, investigate, or 
     respond to unexpected threats or acts of terrorism, including 
     payment of rewards in connection with these activities, 
     $8,000,000, to remain available until expended: Provided, 
     That the Secretary shall notify the Committees on 
     Appropriations of the Senate and the House of Representatives 
     15 days prior to the obligation of any amount of these funds 
     in accordance with section 503 of this Act.

                  EMERGENCY PREPAREDNESS AND RESPONSE

 Office of the Under Secretary for Emergency Preparedness and Response

       For necessary expenses for the Office of the Under 
     Secretary for Emergency Preparedness and Response, as 
     authorized by section 502 of the Homeland Security Act of 
     2002 (6 U.S.C. 312), $4,211,000.


            Preparedness, Mitigation, Response, and Recovery

       For necessary expenses for preparedness, mitigation, 
     response, and recovery activities of the Directorate of 
     Emergency Preparedness and Response, $239,499,000, including 
     activities authorized by the National Flood Insurance Act of 
     1968 (42 U.S.C. 4001 et seq.), the Robert T. Stafford 
     Disaster Relief and Emergency Assistance Act (42 U.S.C. 5121 
     et seq.), the Earthquake Hazards Reduction Act of 1977 (42 
     U.S.C. 7701 et seq.), the Federal Fire Prevention and Control 
     Act of 1974 (15 U.S.C. 2201 et seq.), the Defense Production 
     Act of 1950 (50 U.S.C. App. 2061 et seq.), sections 107 and 
     303 of the National Security Act of 1947 (50 U.S.C. 404, 
     405), Reorganization Plan No. 3 of 1978 (5 U.S.C. App.), and 
     the Homeland Security Act of 2002 (6 U.S.C. 101 et seq.): 
     Provided, That of the total amount appropriated, $30,000,000 
     shall be for Urban Search and Rescue Teams, of which not to 
     exceed 3 percent may be made available for administrative 
     costs.


                           OPERATING EXPENSES

                         (RESCISSION OF FUNDS)

       Of the funds appropriated under this heading in chapter 6 
     of title I of Public Law 108-11 (11 Stat. 581), $5,000,000 
     are rescinded.


                 Administrative and Regional Operations

       For necessary expenses for administrative and regional 
     operations of the Directorate of Emergency Preparedness and 
     Response, $202,939,000, including activities authorized by 
     the National Flood Insurance Act of 1968 (42 U.S.C. 4001 et 
     seq.), the Robert T. Stafford Disaster Relief and Emergency 
     Assistance Act (42 U.S.C. 5121 et seq.), the Earthquake 
     Hazards Reduction Act of 1977 (42 U.S.C. 7701 et seq.), the 
     Federal Fire Prevention and Control Act of 1974 (15 U.S.C. 
     2201 et seq.), the Defense Production Act of 1950 (50 U.S.C. 
     App. 2061 et seq.), sections 107 and 303 of the National 
     Security Act of 1947 (50 U.S.C. 404, 405), Reorganization 
     Plan No. 3 of 1978 (5 U.S.C. App.), and the Homeland Security 
     Act of 2002 (6 U.S.C. 101 et seq.): Provided, That not to 
     exceed $3,000 shall be for official reception and 
     representation expenses.


                         Public Health Programs

       For necessary expenses for countering potential biological, 
     disease, and chemical threats to civilian populations, 
     $34,000,000.


              Radiological Emergency Preparedness Program

       The aggregate charges assessed during fiscal year 2005, as 
     authorized in title III of the Departments of Veterans 
     Affairs and Housing and Urban Development, and Independent 
     Agencies Appropriations Act, 1999 (42 U.S.C. 5196e), shall 
     not be less than 100 percent of the amounts anticipated by 
     the Department of Homeland Security necessary for its 
     radiological emergency preparedness program for the next 
     fiscal year: Provided, That the methodology for assessment 
     and collection of fees shall be fair and equitable and shall 
     reflect costs of providing such services, including 
     administrative costs of collecting such fees: Provided 
     further, That fees received under this heading shall be 
     deposited in this account as offsetting collections and will 
     become available for authorized purposes on October 1, 2005, 
     and remain available until expended.


                            disaster relief

       For necessary expenses in carrying out the Robert T. 
     Stafford Disaster Relief and Emergency Assistance Act (42 
     U.S.C. 5121 et seq.), $2,042,380,000, to remain available 
     until expended.


            Disaster Assistance Direct Loan Program Account

       For administrative expenses to carry out the direct loan 
     program, as authorized by section 319 of the Robert T. 
     Stafford Disaster Relief and Emergency Assistance Act (42 
     U.S.C. 5162), $567,000: Provided, That gross obligations for 
     the principal amount of direct loans shall not exceed 
     $25,000,000: Provided further, That the cost of modifying 
     such loans shall be as defined in section 502 of the 
     Congressional Budget Act of 1974 (2 U.S.C. 661a).


                      Flood Map Modernization Fund

       For necessary expenses pursuant to section 1360 of the 
     National Flood Insurance Act of 1968 (42 U.S.C. 4101), 
     $200,000,000, and such additional sums as may be provided by 
     State and local governments or other political subdivisions 
     for cost-shared mapping activities under section 1360(f)(2) 
     of such Act, to remain available until expended: Provided, 
     That total administrative costs shall not exceed 3 percent of 
     the total appropriation.


                     National Flood Insurance Fund

                     (including transfer of funds)

       For activities under the National Flood Insurance Act of 
     1968 (42 U.S.C. 4001 et seq.), not to exceed $33,336,000 for 
     salaries and expenses associated with flood mitigation and 
     flood insurance operations; and not to exceed $79,257,000 for 
     flood hazard mitigation, to remain available until September 
     30, 2006, including up to $20,000,000 for expenses under 
     section 1366 of the National Flood Insurance Act of 1968 (42 
     U.S.C. 4104c), which amount shall be available for transfer 
     to the National Flood Mitigation Fund until September 30, 
     2006, and which amount shall be derived from offsetting 
     collections assessed and collected pursuant to section 1307 
     of that Act (42 U.S.C. 4014), and shall be retained and used 
     for necessary expenses under this heading: Provided, That in 
     fiscal year 2005, no funds in excess of: (1) $55,000,000 for 
     operating expenses; (2) $562,881,000 for agents' commissions 
     and taxes; and (3) $30,000,000 for interest on Treasury 
     borrowings shall be available from the National Flood 
     Insurance Fund.


                     national flood mitigation fund

       Notwithstanding subparagraphs (B) and (C) of subsection 
     (b)(3), and subsection (f), of section 1366 of the National 
     Flood Insurance Act of 1968 (42 U.S.C. 4104c), $20,000,000, 
     to remain available until September 30, 2006, for activities 
     designed to reduce the risk of flood damage to

[[Page H9130]]

     structures pursuant to such Act, of which $20,000,000 shall 
     be derived from the National Flood Insurance Fund.

                 national pre-disaster mitigation fund

       For a pre-disaster mitigation grant program pursuant to 
     title II of the Robert T. Stafford Disaster Relief and 
     Emergency Assistance Act (42 U.S.C. 5131 et seq.), 
     $100,000,000, to remain available until expended: Provided, 
     That grants made for pre-disaster mitigation shall be awarded 
     on a competitive basis subject to the criteria in section 
     203(g) of such Act (42 U.S.C. 5133(g)), and notwithstanding 
     section 203(f) of such Act, shall be made without reference 
     to State allocations, quotas, or other formula-based 
     allocation of funds: Provided further, That total 
     administrative costs shall not exceed 3 percent of the total 
     appropriation.


                       emergency food and shelter

       To carry out an emergency food and shelter program pursuant 
     to title III of the Stewart B. McKinney Homeless Assistance 
     Act (42 U.S.C. 11331 et seq.), $153,000,000, to remain 
     available until expended: Provided, That total administrative 
     costs shall not exceed 3.5 percent of the total 
     appropriation.

TITLE IV--RESEARCH AND DEVELOPMENT, TRAINING, ASSESSMENTS, AND SERVICES

                  Citizenship and Immigration Services

       For necessary expenses for citizenship and immigration 
     services, $160,000,000.

                Federal Law Enforcement Training Center


                         Salaries and Expenses

       For necessary expenses of the Federal Law Enforcement 
     Training Center, including materials and support costs of 
     Federal law enforcement basic training; purchase of not to 
     exceed 117 vehicles for police-type use and hire of passenger 
     motor vehicles; expenses for student athletic and related 
     activities; the conduct of and participation in firearms 
     matches and presentation of awards; public awareness and 
     enhancement of community support of law enforcement training; 
     room and board for student interns; a flat monthly 
     reimbursement to employees authorized to use personal cell 
     phones for official duties; and services as authorized by 
     section 3109 of title 5, United States Code; $177,440,000, of 
     which up to $36,174,000 for materials and support costs of 
     Federal law enforcement basic training shall remain available 
     until September 30, 2006; and of which not to exceed $12,000 
     shall be for official reception and representation expenses: 
     Provided, That the Center is authorized to obligate funds in 
     anticipation of reimbursements from agencies receiving 
     training sponsored by the Center, except that total 
     obligations at the end of the fiscal year shall not exceed 
     total budgetary resources available at the end of the fiscal 
     year.


     Acquisition, Construction, Improvements, and Related Expenses

       For acquisition of necessary additional real property and 
     facilities, construction, and ongoing maintenance, facility 
     improvements, and related expenses of the Federal Law 
     Enforcement Training Center, $44,917,000, to remain available 
     until expended: Provided, That the Center is authorized to 
     accept reimbursement to this appropriation from government 
     agencies requesting the construction of special use 
     facilities.

           Information Analysis and Infrastructure Protection


                     management and administration

       For salaries and expenses of the immediate Office of the 
     Under Secretary for Information Analysis and Infrastructure 
     Protection and for management and administration of programs 
     and activities, as authorized by title II of the Homeland 
     Security Act of 2002 (6 U.S.C. 121 et seq.), $132,064,000: 
     Provided, That not to exceed $5,000 shall be for official 
     reception and representation expenses.


                      Assessments and Evaluations

       For necessary expenses for information analysis and 
     infrastructure protection as authorized by title II of the 
     Homeland Security Act of 2002 (6 U.S.C. 121 et seq.), 
     $761,644,000, to remain available until September 30, 2006: 
     Provided, That the Under Secretary for Information Analysis 
     and Infrastructure Protection shall submit a report at the 
     end of each quarter of the fiscal year to the Committees on 
     Appropriations of the Senate and the House of Representatives 
     on each sole-source contractual agreement entered into 
     through the commitment of amounts available from funds 
     appropriated under this heading by this or previous 
     appropriations Acts, including the amount, recipient and 
     purpose of the agreement.

                         Science and Technology


                     management and administration

       For salaries and expenses of the immediate Office of the 
     Under Secretary for Science and Technology and for management 
     and administration of programs and activities, as authorized 
     by title III of the Homeland Security Act of 2002 (6 U.S.C. 
     181 et seq.), $68,586,000: Provided, That not to exceed 
     $3,000 shall be for official reception and representation 
     expenses.


           research, development, acquisition, and operations

       For necessary expenses for science and technology research, 
     including advanced research projects; development; test and 
     evaluation; acquisition; and operations; as authorized by 
     title III of the Homeland Security Act of 2002 (6 U.S.C. 181 
     et seq.), $1,046,864,000, to remain available until expended.

                      TITLE V--GENERAL PROVISIONS

       Sec. 501. No part of any appropriation contained in this 
     Act shall remain available for obligation beyond the current 
     fiscal year unless expressly so provided herein.
       Sec. 502. Subject to the requirements of section 503 of 
     this Act, the unexpended balances of prior appropriations 
     provided for activities in this Act may be transferred to 
     appropriation accounts for such activities established 
     pursuant to this Act: Provided, That balances so transferred 
     may be merged with funds in the applicable established 
     accounts and thereafter may be accounted for as one fund for 
     the same time period as originally enacted.
       Sec. 503. (a) None of the funds provided by this Act, 
     provided by previous appropriations Acts to the agencies in 
     or transferred to the Department of Homeland Security that 
     remain available for obligation or expenditure in fiscal year 
     2005, or provided from any accounts in the Treasury of the 
     United States derived by the collection of fees available to 
     the agencies funded by this Act, shall be available for 
     obligation or expenditure through a reprogramming of funds 
     that: (1) creates a new program; (2) eliminates a program, 
     project, or activity; (3) increases funds for any program, 
     project, or activity for which funds have been denied or 
     restricted by the Congress; (4) proposes to use funds 
     directed for a specific activity by either the House or 
     Senate Committees on Appropriations for a different purpose; 
     or (5) contracts out any functions or activities for which 
     funds have been appropriated for Federal full-time equivalent 
     positions; unless the Committees on Appropriations of the 
     Senate and the House of Representatives are notified 15 days 
     in advance of such reprogramming of funds.
       (b) None of the funds provided by this Act, provided by 
     previous appropriation Acts to the agencies in or transferred 
     to the Department of Homeland Security that remain available 
     for obligation or expenditure in fiscal year 2005, or 
     provided from any accounts in the Treasury of the United 
     States derived by the collection of fees available to the 
     agencies funded by this Act, shall be available for 
     obligation or expenditure for programs, projects, or 
     activities through a reprogramming of funds in excess of 
     $5,000,000 or 10 percent, whichever is less, that: (1) 
     augments existing programs, projects, or activities; (2) 
     reduces by 10 percent funding for any existing program, 
     project, or activity, or numbers of personnel by 10 percent 
     as approved by the Congress; or (3) results from any general 
     savings from a reduction in personnel that would result in a 
     change in existing programs, projects, or activities as 
     approved by the Congress; unless the Committees on 
     Appropriations of the Senate and the House of Representatives 
     are notified 15 days in advance of such reprogramming of 
     funds.
       (c) Not to exceed 5 percent of any appropriation made 
     available for the current fiscal year for the Department of 
     Homeland Security by this Act or provided by previous 
     appropriations Acts may be transferred between such 
     appropriations, but no such appropriations, except as 
     otherwise specifically provided, shall be increased by more 
     than 10 percent by such transfers: Provided, That any 
     transfer under this section shall be treated as a 
     reprogramming of funds under subsection (b) of this section 
     and shall not be available for obligation unless the 
     Committees on Appropriations of the Senate and the House of 
     Representatives are notified 15 days in advance of such 
     transfer.
        (d) Notifications pursuant to subsections (a), (b) and (c) 
     of this subsection shall not be made later than June 30, 
     except in extraordinary circumstances which imminently 
     threaten the safety of human life or the protection of 
     property.
       Sec. 504. Except as otherwise specifically provided by law, 
     not to exceed 50 percent of unobligated balances remaining 
     available at the end of fiscal year 2005 from appropriations 
     for salaries and expenses for fiscal year 2005 in this Act 
     shall remain available through September 30, 2006, in the 
     account and for the purposes for which the appropriations 
     were provided: Provided, That prior to the obligation of such 
     funds, a request shall be submitted to the Committees on 
     Appropriations of the Senate and the House of Representatives 
     for approval in accordance with section 503 of this Act.
       Sec. 505. Funds made available by this Act for intelligence 
     activities are deemed to be specifically authorized by the 
     Congress for purposes of section 504 of the National Security 
     Act of 1947 (50 U.S.C. 414) during fiscal year 2005 until the 
     enactment of an Act authorizing intelligence activities for 
     fiscal year 2005.
       Sec. 506. The Federal Law Enforcement Training Center shall 
     establish an accrediting body, to include representatives 
     from the Federal law enforcement community and non-Federal 
     accreditation experts involved in law enforcement training, 
     to establish standards for measuring and assessing the 
     quality and effectiveness of Federal law enforcement training 
     programs, facilities, and instructors.
       Sec. 507. None of the funds in this Act may be used to make 
     a grant allocation, discretionary grant award, discretionary 
     contract award, or to issue a letter of intent totaling in 
     excess of $1,000,000 unless the Secretary of Homeland 
     Security notifies the Committees on Appropriations of the 
     Senate and House of Representatives at least 3 full business 
     days in advance: Provided, That no notification shall involve 
     funds that are not available for obligation.
       Sec. 508. Notwithstanding any other provision of law, no 
     agency shall purchase, construct, or lease any additional 
     facilities, except within or contiguous to existing 
     locations, to be used for the purpose of conducting Federal 
     law enforcement training without the advance approval of the 
     Committees on Appropriations of the Senate and the House of 
     Representatives, except that the Federal Law Enforcement 
     Training Center is authorized to obtain the temporary use of 
     additional facilities by lease, contract, or other agreement 
     for training which cannot be accommodated in existing Center 
     facilities.
       Sec. 509. The Director of the Federal Law Enforcement 
     Training Center (FLETC) shall schedule basic and/or advanced 
     law enforcement training at all four training facilities 
     under FLETC's control to ensure that these training centers 
     are operated at the highest capacity throughout the fiscal 
     year.

[[Page H9131]]

       Sec. 510. None of the funds appropriated or otherwise made 
     available by this Act may be used for expenses of any 
     construction, repair, alteration, or acquisition project for 
     which a prospectus, if required by the Public Buildings Act 
     of 1959, has not been approved, except that necessary funds 
     may be expended for each project for required expenses for 
     the development of a proposed prospectus.
       Sec. 511. For fiscal year 2005 and thereafter, none of the 
     funds appropriated or otherwise made available by this Act 
     shall be used to pursue or adopt guidelines or regulations 
     requiring airport sponsors to provide to the Transportation 
     Security Administration without cost building construction, 
     maintenance, utilities and expenses, or space in airport 
     sponsor-owned buildings for services relating to aviation 
     security: Provided, That the prohibition of funds in this 
     section does not apply to--
       (1) negotiations between the agency and airport sponsors to 
     achieve agreement on ``below-market'' rates for these items, 
     or
       (2) space for necessary security checkpoints.
       Sec. 512. None of the funds in this Act may be used in 
     contravention of the applicable provisions of the Buy 
     American Act (41 U.S.C. 10a et seq.).
       Sec. 513. The Secretary of Homeland Security is directed to 
     research, develop, and procure certified systems to inspect 
     and screen air cargo on passenger aircraft at the earliest 
     date possible: Provided, That until such technology is 
     procured and installed, the Secretary shall take all possible 
     actions to enhance the known shipper program to prohibit 
     high-risk cargo from being transported on passenger aircraft: 
     Provided further, That the Secretary shall amend Security 
     Directives and programs in effect on the date of enactment of 
     this Act to, at a minimum, triple the percentage of cargo 
     inspected on passenger aircraft.
       Sec. 514. The Commandant of the Coast Guard shall provide 
     to the Congress each year, at the time that the President's 
     budget is submitted under section 1105(a) of title 31, United 
     States Code, a list of approved but unfunded Coast Guard 
     priorities and the funds needed for each such priority in the 
     same manner and with the same contents as the unfunded 
     priorities lists submitted by the chiefs of other Armed 
     Services.
       Sec. 515. (a) In General.--Chapter 449 of title 49, United 
     States Code, is amended by inserting after section 44944 the 
     following new section:

     ``Sec. 44945. Disposition of unclaimed money

       ``Notwithstanding section 3302 of title 31, unclaimed money 
     recovered at any airport security checkpoint shall be 
     retained by the Transportation Security Administration and 
     shall remain available until expended for the purpose of 
     providing civil aviation security as required in this 
     chapter.''.
       (b) Annual Report.--Not later than 180 days after the date 
     of enactment of this Act and annually thereafter, the 
     Administrator of the Transportation Security Administration 
     shall transmit to the Committee on Transportation and 
     Infrastructure of the House of Representatives; the Committee 
     on Appropriations of the House of Representatives; the 
     Committee on Commerce, Science and Transportation of the 
     Senate; and the Committee on Appropriations of the Senate, a 
     report that contains a detailed description of the amount of 
     unclaimed money recovered in total and at each individual 
     airport, and specifically how the unclaimed money is being 
     used to provide civil aviation security.
       (c) Clerical Amendment.--The analysis for chapter 449 of 
     title 49, United States Code, is amended by adding the 
     following new item after the item relating to section 44944:

``44945. Disposition of unclaimed money.''.
       Sec. 516. Notwithstanding section 3302 of title 31, United 
     States Code, the Administrator of the Transportation Security 
     Administration may impose a reasonable charge for the lease 
     of real and personal property to Transportation Security 
     Administration employees and for use by Transportation 
     Security Administration employees and may credit amounts 
     received to the appropriation or fund initially charged for 
     operating and maintaining the property, which amounts shall 
     be available, without fiscal year limitation, for expenditure 
     for property management, operation, protection, construction, 
     repair, alteration, and related activities.
       Sec. 517. The acquisition management system of the 
     Transportation Security Administration shall apply to the 
     acquisition of services, as well as equipment, supplies, and 
     materials.
       Sec. 518. Notwithstanding any other provision of law, the 
     authority of the Office of Personnel Management to conduct 
     personnel security and suitability background investigations, 
     update investigations, and periodic reinvestigations of 
     applicants for, or appointees in, positions in the Office of 
     the Secretary and Executive Management, the Office of the 
     Under Secretary of Management, the Directorate of Science and 
     Technology, and the Directorate of Information Analysis and 
     Infrastructure Protection of the Department of Homeland 
     Security is transferred to the Department of Homeland 
     Security: Provided, That on request of the Department of 
     Homeland Security, the Office of Personnel Management shall 
     cooperate with and assist the Department in any investigation 
     or reinvestigation under this section.
       Sec. 519. Section 312(g) of the Homeland Security Act of 
     2002 (6 U.S.C. 192(g)) is amended to read as follows:
       ``(g) Termination.--The Homeland Security Institute shall 
     terminate 5 years after its establishment.''.
       Sec. 520. Section 311(c)(2) of the Homeland Security Act of 
     2002 (6 U.S.C. 191(c)(2)) is amended to read as follows:
       ``(2) Original appointments.--The original members of the 
     Advisory Committee shall be appointed to three classes. One 
     class of six shall have a term of 1 year, one class of seven 
     a term of 2 years, and one class of seven a term of 3 
     years.''.
       Sec. 521. Notwithstanding any other provision of law, funds 
     appropriated under paragraphs (1) and (2) of the State and 
     Local Programs heading under title III of this Act are exempt 
     from section 6503(a) of title 31, United States Code.
       Sec. 522. (a) None of the funds provided by this or 
     previous appropriations Acts may be obligated for deployment 
     or implementation, on other than a test basis, of the 
     Computer Assisted Passenger Prescreening System (CAPPS II) or 
     Secure Flight or other follow on/successor programs, that the 
     Transportation Security Administration (TSA), or any other 
     Department of Homeland Security component, plans to utilize 
     to screen aviation passengers, until the Government 
     Accountability Office has reported to the Committees on 
     Appropriations of the Senate and the House of Representatives 
     that--
       (1) a system of due process exists whereby aviation 
     passengers determined to pose a threat are either delayed or 
     prohibited from boarding their scheduled flights by the TSA 
     may appeal such decision and correct erroneous information 
     contained in CAPPS II or Secure Flight or other follow on/
     successor programs;
       (2) the underlying error rate of the government and private 
     data bases that will be used both to establish identity and 
     assign a risk level to a passenger will not produce a large 
     number of false positives that will result in a significant 
     number of passengers being treated mistakenly or security 
     resources being diverted;
       (3) the TSA has stress-tested and demonstrated the efficacy 
     and accuracy of all search tools in CAPPS II or Secure Flight 
     or other follow on/successor programs and has demonstrated 
     that CAPPS II or Secure Flight or other follow on/successor 
     programs can make an accurate predictive assessment of those 
     passengers who may constitute a threat to aviation;
       (4) the Secretary of Homeland Security has established an 
     internal oversight board to monitor the manner in which CAPPS 
     II or Secure Flight or other follow on/successor programs are 
     being developed and prepared;
       (5) the TSA has built in sufficient operational safeguards 
     to reduce the opportunities for abuse;
       (6) substantial security measures are in place to protect 
     CAPPS II or Secure Flight or other follow on/successor 
     programs from unauthorized access by hackers or other 
     intruders;
       (7) the TSA has adopted policies establishing effective 
     oversight of the use and operation of the system;
       (8) there are no specific privacy concerns with the 
     technological architecture of the system;
       (9) the TSA has, pursuant to the requirements of section 
     44903 (i)(2)(A) of title 49, United States Code, modified 
     CAPPS II or Secure Flight or other follow on/successor 
     programs with respect to intrastate transportation to 
     accommodate States with unique air transportation needs and 
     passengers who might otherwise regularly trigger primary 
     selectee status; and
       (10) appropriate life-cycle cost estimates, and expenditure 
     and program plans exist.
       (b) During the testing phase permitted by paragraph (a) of 
     this section, no information gathered from passengers, 
     foreign or domestic air carriers, or reservation systems may 
     be used to screen aviation passengers, or delay or deny 
     boarding to such passengers, except in instances where 
     passenger names are matched to a government watch list.
       (c) None of the funds provided in this or any previous 
     appropriations Act may be utilized to develop or test 
     algorithms assigning risk to passengers whose names are not 
     on government watch lists.
       (d) None of the funds provided in this or any previous 
     appropriations Act may be utilized to test an identity 
     verification system that utilizes at least one database that 
     is obtained from or remains under the control of a non-
     Federal entity until TSA has developed measures to determine 
     the impact of such verification on aviation security and the 
     Government Accountability Office has reported on its 
     evaluation of the measures.
       (e) TSA shall cooperate fully with the Government 
     Accountability Office, and provide timely responses to the 
     Government Accountability Office requests for documentation 
     and information.
       (f) The Government Accountability Office shall submit the 
     report required under paragraph (a) of this section no later 
     than March 28, 2005.
       Sec. 523. Section 835 of the Homeland Security Act of 2002 
     (Public Law 107-296; 6 U.S.C. 395) is amended--
       (1) in subsection (a), by inserting before the period ``, 
     or any subsidiary of such an entity'';
       (2) in subsection (b)(1), by inserting ``before, on, or'' 
     after the ``completes'';
       (3) in subsection (c)(1)(B), by striking ``which is after 
     the date of enactment of this Act and''; and
       (4) in subsection (d), by striking ``homeland'' and 
     inserting ``national''.
       Sec. 524. None of the funds made available in this Act may 
     be used to amend the oath of allegiance required by section 
     337 of the Immigration and Nationality Act (8 U.S.C. 1448).
       Sec. 525. Notwithstanding any other provision of law, the 
     fiscal year 2004 aggregate overtime limitation prescribed in 
     subsection 5(c)(1) of the Act of February 13, 1911 (19 U.S.C. 
     261 and 267) shall be $30,000.
       Sec. 526. Notwithstanding any other provision of law, 
     notifications pursuant to section 503 of this Act or any 
     other authority for reprogramming of funds shall be made 
     solely to the Committees on Appropriations of the Senate and 
     House of Representatives.
       Sec. 527. None of the funds appropriated by this Act may be 
     used to process or approve a

[[Page H9132]]

     competition under Office of Management and Budget Circular A-
     76 for services provided as of June 1, 2004, by employees 
     (including employees serving on a temporary or term basis) of 
     Citizenship and Immigration Services of the Department of 
     Homeland Security who are known as of that date as 
     Immigration Information Officers, Contact Representatives, or 
     Investigative Assistants.
       Sec. 528. None of the funds available in this Act shall be 
     available to maintain the United States Secret Service as 
     anything but a distinct entity within the Department of 
     Homeland Security and shall not be used to merge the United 
     States Secret Service with any other department function, 
     cause any personnel and operational elements of the United 
     States Secret Service to report to an individual other than 
     the Director of the United States Secret Service, or cause 
     the Director to report directly to any individual other than 
     the Secretary of Homeland Security.
       This Act may be cited as the ``Department of Homeland 
     Security Appropriations Act, 2005''.

       And the Senate agree to the same.

     Harold Rogers,
     Bill Young,
     Frank R. Wolf,
     Zach Wamp,
     Tom Latham,
     Jo Ann Emerson,
     Kay Granger,
     John E. Sweeney,
     Don Sherwood,
                                Managers on the Part of the House.

     Thad Cochran,
     Ted Stevens,
     Arlen Specter,
     Pete V. Domenici,
     Mitch McConnell,
     Richard Shelby,
     Judd Gregg,
     Ben Nighthorse Campbell,
     Larry Craig,
                               Managers on the Part of the Senate.

                      JOINT EXPLANATORY STATEMENT

       The managers on the part of the House and the Senate at the 
     conference on the disagreeing votes of the two Houses on the 
     amendment of the Senate to the bill (H.R. 4567), making 
     appropriations for the Department of Homeland Security (DHS) 
     for the fiscal year ending September 30, 2005, and for other 
     purposes, submit the following joint statement to the House 
     and the Senate in explanation of the effects of the action 
     agreed upon by the managers and recommended in the 
     accompanying conference report.
       Senate Amendment: The Senate deleted the entire House bill 
     after the enacting clause and inserted the Senate bill. The 
     conference agreement includes a revised bill. Throughout the 
     accompanying explanatory statement, the managers refer to the 
     Committee and the Committees on Appropriations. Unless 
     otherwise noted, in both instances, the managers are 
     referring to the House Subcommittee on Homeland Security and 
     the Senate Subcommittee on Homeland Security.
       The language and allocations contained in House Report 108-
     541 and Senate Report 108-280 should be complied with unless 
     specifically addressed to the contrary in the conference 
     report and statement of managers. The statement of managers, 
     while repeating some report language for emphasis, does not 
     intend to negate the language referred to above unless 
     expressly provided herein. In cases where both the House and 
     Senate reports address a particular issue not specifically 
     addressed in the conference report or joint statement of 
     managers, the conferees have determined that the House report 
     and Senate report are not inconsistent and are to be 
     interpreted accordingly.
       In cases where the House or Senate report directs the 
     submission of a report, such report is to be submitted to 
     both the House and Senate Committees on Appropriations. 
     Further, in a number of instances, House Report 108-541 and 
     Senate Report 108-280 direct agencies to report to the 
     Committees by specific dates that have now passed. In those 
     instances, and unless alternative dates are provided in the 
     accompanying explanatory statement, agencies are directed to 
     provide these reports to the House and Senate Committees on 
     Appropriations no later than January 10, 2005.

            TITLE I--DEPARTMENTAL MANAGEMENT AND OPERATIONS

            Office of the Secretary and Executive Management

       The conferees agree to provide $85,034,000 instead of 
     $80,227,000 as proposed by the House and $82,206,000 as 
     proposed by the Senate. Funding shall be allocated as 
     follows:

Immediate Office of the Secretary............................$2,141,000
Immediate Office of the Deputy Secretary......................1,112,000
Office of Security...........................................21,424,000
Chief of Staff................................................5,240,000
Executive Secretary...........................................3,500,000
Special Assistant to the Secretary/Private Sector.............3,781,000
Office for National Capital Region Coordination.................688,000
Office of International Affairs...............................1,200,000
Office of Public Affairs......................................8,120,000
Office of Legislative Affairs.................................5,400,000
Office of General Counsel....................................10,821,000
Office for Civil Rights and Civil Liberties..................13,000,000
Citizenship and Immigration Services Ombudsman................3,546,000
Homeland Security Advisory Committee..........................1,287,000
Privacy Office................................................3,774,000
                                                       ________________
                                                       
  Total......................................................85,034,000

       Reductions have been made to individual offices within the 
     Office of the Secretary and Executive Management because of 
     large numbers of unfilled positions. The conferees believe 
     that full-year funding is not necessary for salaries of 
     employees that are not yet on board.


                      Reception and Representation

       The conferees have provided not to exceed $40,000 for 
     reception and representation expenses for the Office of the 
     Secretary and Executive Management instead of not to exceed 
     $45,000 as proposed by the House and not to exceed $50,000 as 
     proposed by the Senate to be available for allocation within 
     the Department. Separate reception and representation 
     allowances have been provided directly to other departmental 
     agencies.


                         Budget Justifications

       For fiscal year 2006, the conferees direct that the 
     Congressional budget justifications for all departmental 
     offices be submitted in the same level of detail as the 
     detailed table contained in the back of this report. These 
     justifications should include detailed data and explanatory 
     statements in support of each appropriations request, 
     including tables that detail each departmental office's 
     programs, projects, and activities for fiscal years 2005 and 
     2006. All funding and staffing changes for each individual 
     office must be highlighted and explained, including separate 
     discussions for personnel, compensation, and benefits; 
     travel; training; and other services. The budget 
     justifications should also include a table identifying the 
     last year that authorizing legislation was provided by 
     Congress for each program, project, or activity; the amount 
     of the authorization; and the appropriation in the last year 
     of the authorization.


                    Classified Budget Justifications

       Several components of the Department have classified 
     programs that require preparation and submission of a 
     separate classified budget justification document. These 
     classified budget justification documents are to be submitted 
     to the House and Senate Committees on Appropriations at the 
     same time the unclassified budget justifications are 
     transmitted.


                           office of security

       The conferees agree to provide $21,424,000 instead of 
     $21,824,000 as proposed by the House and $21,044,000 as 
     proposed by the Senate. Sufficient funding has been provided 
     within this appropriation for the Office of Security to 
     rapidly process and adjudicate background investigations.


                Consolidation and Co-location of Offices

       The conferees direct the Department to regularly update the 
     House and Senate Committees on Appropriations on office 
     consolidations and co-location plans as discussed in the 
     Senate report. The Department shall notify the Committees at 
     least 10 days prior to any public announcement of any changes 
     to regional or field offices.


                               Detailees

       The conferees direct the Department to report to the House 
     and Senate Committees on Appropriations on January 10, 2005, 
     and quarterly thereafter, on the number of detailees in the 
     Department as well as those detailed to other executive and 
     legislative agencies. These quarterly reports shall include 
     the originating agency, salary, length of detail (including 
     beginning and end dates), and purpose of each detail.


                       General Aviation Airports

       The conferees direct the Secretary, in conjunction with the 
     Transportation Security Administration and the Secret 
     Service, to provide a report to the House and Senate 
     Committees on Appropriations by March 1, 2005, on restoring 
     access to Ronald Reagan Washington National Airport (DCA) and 
     other general aviation airports within 15 miles of DCA for 
     security-qualified charter and general aviation operators.


           Counter Man-Portable Air Defense Systems (MANPADS)

       The conferees direct the Secretary to submit a report to 
     the House and Senate Committees on Appropriations on the 
     Counter MANPADS program as outlined by Section 530 of the 
     Senate bill. The conferees do not agree to subsections (5) 
     and (6) of the Senate bill. In lieu of these sections, the 
     conferees expect the report to include an assessment of other 
     technologies that have been evaluated by the Department that 
     could be employed on commercial aircraft to address the 
     threat posed by MANPADS.


                      TRANSPORTATION SECURITY PLAN

       The conferees direct the Secretary of Homeland Security, in 
     consultation with the Secretary of Transportation, to 
     develop, maintain, and submit to the House and Senate 
     Committees on Appropriations no later than March 31, 2005, an 
     integrated strategic transportation security plan. The plan 
     shall identify and evaluate the United States transportation 
     assets that need to be protected, set risk-based priorities 
     for defending the assets identified, select the most 
     practical and cost-effective ways of defending the assets 
     identified, and assign transportation security roles and 
     missions to the relevant federal, State, regional, and local 
     authorities, and to the private sector. The conferees

[[Page H9133]]

     expect that future budget requests will be based on this 
     integrated strategic transportation security plan. Should any 
     part of this plan involve information that is properly 
     classified under criteria established by Executive Order, 
     that information shall be submitted separately in classified 
     form.


                              data-mining

       The conferees are concerned about the Department's possible 
     use or development of data-mining technology. The conferees 
     direct the DHS Privacy Officer, in consultation with the head 
     of each Department of Homeland Security agency that is 
     developing or using data-mining technology, to submit a 
     report no later than 90 days after the end of fiscal year 
     2005 that provides: (1) a thorough description of the data-
     mining technology, the plans for use of such technology, the 
     data that will be used, and the target dates for the 
     deployment of the technology; (2) an assessment of the likely 
     impact of the implementation of the technology on privacy and 
     civil liberties; and (3) a thorough discussion of the 
     policies, procedures, and guidelines that are to be developed 
     and applied in the use of such technology for data-mining in 
     order to protect the privacy and due process rights of 
     individuals and to ensure that only accurate information is 
     collected and used.


                              Buy American

       The conferees include bill language prohibiting funds from 
     being used in contravention of the applicable provisions of 
     the Buy American Act. The House and Senate Committees on 
     Appropriations expect to be notified when the Department 
     deviates from this direction pursuant to permissible 
     exceptions. The conferees direct the Inspector General to 
     audit the Department's compliance with the Buy American Act 
     and submit the report at the same time the President submits 
     to Congress the budget for fiscal year 2006.
       The conferees direct the Secretary to issue a report to the 
     Committees on Appropriations that describes the articles, 
     materials, and supplies acquired by the Department during 
     fiscal year 2005 that were manufactured outside of the United 
     States as well as an itemized list of all waivers granted 
     with respect to such articles, materials, or supplies under 
     the Buy American Act. The report should include a summary of 
     the total funds spent by the Department of Homeland Security 
     on goods manufactured within the United States compared with 
     funds spent on goods manufactured outside of the United 
     States.

              Office of the Under Secretary for Management

       The conferees agree to provide $151,153,000 instead of 
     $129,356,000 as proposed by the House and $175,579,000 as 
     proposed by the Senate. The conferees have provided not to 
     exceed $3,000 for reception and representation expenses 
     instead of not to exceed $5,000 as proposed by the House. The 
     Senate proposed no similar provision. Funding shall be 
     allocated as follows:

Under Secretary for Management...............................$1,434,000
Business Transformation Office..................................920,000
Office of Procurement.........................................7,350,000
Office of Human Resources.....................................7,200,000
Office of Administration.....................................27,270,000
Immigration Statistics........................................5,898,000
Headquarters, Renovation and Relocation Expenses.............65,081,000
Human resources system.......................................36,000,000
                                                       ________________
                                                       
    Total...................................................151,153,000

       The conferees have provided funding for the Offices of the 
     Chief Financial Officer and the Chief Information Officer 
     under separate accounts outside of the Office of the Under 
     Secretary for Management, as proposed by the House. The 
     Senate funded these two offices within the Office of the 
     Under Secretary for Management.


                        Investment Review Board

       Separate funding is not recommended for the Investment 
     Review Board as proposed by the Senate. The House proposed 
     $2,500,000. The conferees believe that the Department should 
     continue to rely on its managers to establish, maintain, and 
     support investment analysis and decision making, and to 
     comply with statutory requirements.


                         Office of Procurement

       The conferees agree to provide $7,350,000 for the Office of 
     Procurement within the Under Secretary for Management instead 
     of $7,734,000 as a separate appropriation as proposed by the 
     House and $7,024,000 as proposed by the Senate. Within this 
     funding, the conferees direct the Chief Procurement Officer 
     to hire five additional procurement staff instead of the nine 
     staff proposed by the House.


                            DHS Headquarters

       The conferees agree to include $65,081,000 for the 
     alteration and improvement of facilities, tenant improvements 
     and relocation costs to consolidate a headquarters operations 
     as proposed by the House and Senate. The Department is 
     directed to submit to the House and Senate Committees on 
     Appropriations, no later than December 1, 2004, a facilities 
     improvement and housing plan for the Nebraska Avenue Complex, 
     NAC, Washington, DC, including: total cost of renovations and 
     improvements for each Department-occupied building within 
     NAC; by fiscal year, and including all out-year costs, the 
     total cost for site and design, security upgrades and 
     improvements, tenant improvements, and relocation costs; and, 
     by building, a list of tenants including the total number of 
     current and projected tenants. The Department is directed to 
     notify the Committees 15 days prior to the obligation of 
     funds. Such notification shall be consistent with the 
     facilities improvement and housing plan.


                         Human Resources System

       The conferees agree to provide $36,000,000 for the human 
     resources system instead of $70,000,000 as proposed by the 
     House and Senate. This funding shall be used for design, 
     implementation, and program oversight of this new system in 
     fiscal year 2005.


                           Contract Staffing

       The conferees direct the Department to report, no later 
     than November 15, 2004, on the number of contract staff 
     occupying positions budgeted to be filled by federal 
     employees during fiscal year 2004 and projected for fiscal 
     year 2005. This report should include the numbers of contract 
     staff by component, and a plan, with milestones, for reducing 
     its dependence on contract staff. The Department is directed 
     to submit monthly updates on its progress against these 
     milestones to the House and Senate Committees on 
     Appropriations.


                          Working Capital Fund

       The conferees direct the Department to issue a report by 
     December 1, 2004, to the House and Senate Committees on 
     Appropriations that identifies all centralized services, 
     activities, and programs supported through the Working 
     Capital Fund (WCF) in fiscal years 2004 and 2005. This report 
     shall include a brief description of each activity, the basis 
     for the pricing policy, the estimated cost for fiscal years 
     2004 and 2005, and for any multi-year project, the total 
     cost, scope, and schedule for completion. The report should 
     also provide the total estimated cost of the activity by 
     fiscal year and the estimated date for completion, the number 
     of full-time federal employees funded in each activity, a 
     list of each departmental organization that is allocating 
     funds to the activity, and the funding each organization is 
     providing in fiscal years 2004 and 2005. Finally, the report 
     should identify any cross-cutting initiatives or activities 
     that benefit more than one organization that are not included 
     in the WCF and explain the omission.
       The conferees expect all cross-cutting initiatives funded 
     by multiple organizations for which funding has been approved 
     by the Committees to be included in the WCF and the 
     Committees are to be promptly notified of any additions, 
     deletions, or changes that are made to the WCF during the 
     fiscal year. Taxing departmental organizations for cross-
     cutting initiatives outside the WCF will not be approved by 
     the House and Senate Committees on Appropriations. The 
     conferees expect the Department to comply with reprogramming 
     guidelines in the management of the WCF. The WCF is not to be 
     used to support initiatives for which funding was requested 
     in the budget and not approved when the appropriation was 
     made.
       For fiscal year 2006, the same level of detailed 
     information on the WCF is to be provided in the budget 
     justification document submitted for the Departmental 
     Operations account, with the corresponding information 
     contained in the accounts for each organization that is 
     funding the WCF.

                 Office of the Chief Financial Officer

       The conferees agree to provide $13,000,000 as proposed by 
     the House instead of $14,670,000 as proposed by the Senate 
     within the Office of the Under Secretary for Management. The 
     conferees expect the Chief Financial Officer and Chief 
     Information Officer to work closely together on key financial 
     information technology modernization. projects, such as the 
     Electronically Managing Enterprise Resources for 
     Government Efficiency and Effectiveness (eMerge 2) system.


                     Monthly Reporting Requirements

       The Department is directed to continue submitting to the 
     House and Senate Committees on Appropriations a monthly 
     budget execution report showing the status of obligations and 
     costs for all components of the Department. The report should 
     include the total obligational authority appropriated (new 
     budget authority plus unobligated carryover), undistributed 
     obligational authority, amount allotted, current year 
     obligations, unobligated authority, beginning unexpended 
     obligations, year-to-date costs, and ending unexpended 
     obligations. This budget execution information is to be 
     provided at the level of detail shown in the tables displayed 
     at the end of this report for each departmental component and 
     shall be submitted no later than 45 days after the close of 
     each month.


                 Financial Management of the Department

       The conferees are concerned with the Department's execution 
     of its financial responsibilities after numerous budgetary 
     and management crises over the 18 months of the Department's 
     existence, notably with the Bureau of Immigration and Customs 
     Enforcement and the Transportation Security Administration. 
     The Department and senior agency management are coping with 
     major changes in the organizational environment, resources, 
     and communication networks of new and radically expanding or 
     changing agencies. It is, therefore, to be expected that the 
     Department will experience direct and indirect costs and 
     management problems as it integrates its agencies. The 
     conferees also acknowledge that reconciling different systems 
     and legacy accounting bureaucracies is

[[Page H9134]]

     difficult. Nonetheless, the conferees will not assent to a 
     repeat of recent experience of shifting and multiple, last 
     minute requests for funding relief, particularly when the 
     Department and agencies can neither explain nor even fully 
     understand their own financial condition. Such a level of 
     uncertainty is inexplicable, and adversely affects the 
     Department's ability to fulfill its missions and carry out 
     Administration and Congressional policy.
       The conferees direct the Secretary and Department agency 
     heads to devote the resources and managerial energy required 
     to ensure that basic financial control and transparency in 
     accounting are achieved, and avoid the waste and disruption 
     caused by failure to carry out this fundamental management 
     function. The conferees expect that agencies will establish 
     baseline budgets and reconcile their financial records and 
     accounting systems to provide sufficient information to the 
     Department's Chief Financial Officer (CFO) to permit a clear 
     understanding of financial resources available as well as 
     existing and upcoming liabilities. The conferees further 
     direct that the CFO include in the monthly budget execution 
     report an update on the status of steps underway to improve 
     financial management in critical agencies. Finally, the 
     conferees expect that the Secretary and CFO will strive to 
     ensure that required financial audits of the Department's 
     components are conducted in a timely fashion and with full 
     cooperation of agency personnel.


         Transportation Security Administration Reprogrammings

       The conferees are concerned that the Department of Homeland 
     Security has submitted numerous reprogramming for the 
     Transportation Security Administration (TSA) to the House and 
     Senate Committees on Appropriations that TSA cannot fully 
     explain and justify. In fiscal year 2004, three TSA 
     reprogrammings were submitted. For each of these 
     reprogrammings, TSA was unable to provide timely and 
     consistent data to answer specific questions about the need 
     for these actions. For instance, when the Department's 
     reprogramming letter states that ``. . . $42,200,000 will be 
     used to fund screener professional development to increase 
     retention, and to cover higher benefit costs and increased 
     supervision costs'', the conferees expect TSA to readily 
     explain the dollars for each of these three items. Similarly, 
     TSA has been unable to provide an accurate annual estimate 
     for a variety of requirements, such as maintenance costs, and 
     salaries and expenses, which has led to repeated 
     reprogramming requests for additional funds to cover these 
     activities throughout the year, at the expense of other TSA 
     or Department programs. This causes the conferees to question 
     the competency of TSA's estimating capabilities. Therefore, 
     the conferees direct that the Department institute financial 
     controls to enable TSA to live within its resource 
     limitations to negate or minimize the need for 
     reprogrammings. If a reprogramming is necessary for fiscal 
     year 2005, it should provide sufficient basic information for 
     it to be properly considered by the Committees and each 
     specific funding increase and decrease should be fully 
     explained and justified.


                              Grant Awards

       The conferees are disappointed with the Department's pace 
     for awarding homeland security grants, including grants for 
     port security, intercity bus security, hazardous materials, 
     pre-disaster mitigation, and funds for urban search and 
     rescue teams. The conferees direct the Department to prepare 
     a report by December 15, 2004, that lays out an expeditious 
     and responsible schedule for making grants and awards for the 
     funds made available by this Act, as well as for any prior 
     year funds that remain available for obligation.

                Office of the Chief Information Officer

       The conferees agree to provide $275,270,000 for the Office 
     of the Chief Information Officer (CIO) and Department-Wide 
     Technology Investments. Of this funding, $67,270,000 shall be 
     for salaries and expenses and $208,000,000 for Department-
     Wide Technology Investments. The House proposed $60,139,000 
     for the CIO and $211,000,000 for Department-Wide Technology 
     Investments. The Senate proposed $68,396,000 for the CIO and 
     $222,000,000 for Department-Wide Technology Investments. 
     Funding shall be allocated in accordance with the funding 
     recommendations detailed in the following table:

Salaries and Expenses.......................................$67,270,000
  Office of the Chief Information Officer....................64,270,000
  Wireless Program, Salaries and Expenses.....................3,000,000
Information Technology Services..............................91,000,000
  Enterprise Architecture & Portal Technology................13,000,000
  Geospatial mapping..........................................8,000,000
  Human Resources............................................21,000,000
  EMerge2....................................................49,000,000
Security Activities..........................................31,000,000
  Federal terrorist watch list integration...................10,000,000
  Enterprise Architecture.....................................9,000,000
  HS IT evaluation program (extra & intra net)...............12,000,000
Wireless Program.............................................86,000,000
  Replace legacy border components...........................16,000,000
  New investments in radio infrastructure borders............52,000,000
  Infrastructure optimization & upgrade......................18,000,000
  SAFECOM*..........................................................---
                                                       ________________
                                                       
    Total...................................................275,270,000

*Funded under the Science and Technology Directorate.


        Financial Information Technology Modernization Projects

       The conferees expect the CFO and CIO to work closely 
     together on key financial information technology 
     modernization projects, such as the eMerge 2 system.


                   Geospatial Information Management

       The conferees agree to provide $8,000,000 to create a 
     Department-wide Geospatial Information System (E-GIS) 
     capability under the direction of the CIO and direct the 
     Secretary to create the Geospatial Management Office (GMO) 
     within the CIO's office to oversee this activity. The GMO 
     will be responsible for coordinating geospatial information 
     needs, requirements, and other related spatial data 
     activities that support the E-GIS capability defined by the 
     GMO. The GMO will provide clear and concise policy direction 
     across the Department needed for an E-GIS geospatial 
     information capability. The conferees expect the GMO to guide 
     the development and execution of the implementation plan for 
     the geospatial enablement of the Department's mission 
     systems. The CIO's office is directed to report to the House 
     and Senate Committees on Appropriations by December 1, 2004, 
     on a date by which the GMO will be established and 
     operational and on the outline of the implementation plan.


                  Program, Project and Activity Plans

       The conferees request the CIO to revise its report of April 
     20, 2004, on program, project and activity plans as directed 
     within the Senate report. This revision should be submitted 
     to the House and Senate Committees on Appropriations no later 
     than February 8, 2005.
       The conferees further direct the CIO to submit to the House 
     and Senate Committees on Appropriations by February 8, 2005, 
     a detailed program plan describing the scope, total estimated 
     cost, cost by year, and the schedule for completion, 
     including significant milestones, for each individual project 
     currently underway and funded for fiscal year 2005 for 
     information technology services, security activities, and 
     wireless programs. This report should include the specified 
     subject areas and associated level of detail as directed in 
     the House report.


     Wireless Public Safety Interoperable Communications (SAFECOM)

       The conferees agree to provide $11,000,000 for SAFECOM in 
     the Science and Technology Directorate as proposed by the 
     House. The Senate proposed funding of $11,000,000 for SAFECOM 
     under the Department-Wide Technology Investments account.

                 Department-Wide Technology Investments

       The conferees have deleted a separate appropriation for 
     Department-Wide Technology Investments and have included this 
     funding with the Office of the Chief Information Officer.

                      Office of Inspector General

       The conferees agree to provide $82,317,000 as proposed by 
     the House and the Senate. Within the amounts provided, the 
     Inspector General should continue to fund its portion of the 
     Department's yearly financial audit at the same level as 
     provided in fiscal year 2004.
       The conferees direct the Inspector General to forward 
     copies of all audit reports to the House and Senate 
     Committees on Appropriations immediately after they are 
     released and to make the Committees aware of any significant 
     budgetary savings. The Inspector General is directed to 
     withhold from public distribution for 15 days any final audit 
     or investigation requested by the Committees.

          TITLE II--SECURITY, ENFORCEMENT, AND INVESTIGATIONS

                   Border and Transportation Security

  Office of the Under Secretary for Border and Transportation Security

                         Salaries and Expenses

       The conferees agree to provide $9,617,000, instead of 
     $10,371,000 as proposed by the House and $8,864,000 as 
     proposed by the Senate. The conferees also provide that not 
     to exceed $3,000 is available for official representation and 
     reception expenses. Neither the House nor the Senate bills 
     contained this provision.


                      DENT--IAFIS Interoperability

       The conferees are troubled by the security gap on the 
     nation's borders caused by delays in linking the Automated 
     Biometrics Identification System (IDENT), the fingerprint 
     database managed by Customs and Border Protection (CBP) and 
     US Visitor and Immigrant Status Indicator Technology (US-
     VISIT), with criminal history data contained in the Federal 
     Bureau of Investigation's Integrated Automated Fingerprint 
     Identification System (IAFIS). The conferees understand that 
     by the end of calendar year 2004, interoperability will exist 
     at airports, seaports, and the largest and busiest Border 
     Patrol stations and land ports of entry. CBP and Immigration 
     and Customs Enforcement (ICE) locations will not be completed 
     until December 31, 2005. With implementation of a new visa 
     tracking system and enrollment of millions of visitors into 
     US-VISIT, it is essential that the Directorate of Border and 
     Transportation Security collaborate with the Federal Bureau 
     of Investigation to ensure that IDENT can retrieve, in real 
     time,

[[Page H9135]]

     biometric information contained in the IAFIS database, and 
     that the IAFIS database can retrieve, in real time, biometric 
     information contained in IDENT.
       The conferees direct the Department to fund the full cost 
     to achieve real time interoperability between these systems 
     from the US-VISIT Approriation, and direct the Under 
     Secretary for Border and Transportation Security (BTS) to 
     report, not later than 90 days after enactment of this Act, 
     on the status of this effort, including steps the Department 
     will take to integrate IAFIS into IDENT, funds needed, and a 
     timetable for full integration. This report should address 
     recommendations in the March, 2004 Department of Justice 
     Inspector General report, which documented the need to 
     integrate existing biometric databases.


                        Cargo Container Security

       Over the past 3 years, Congress has provided over 
     $200,000,000 for innovative programs designed to ensure safe 
     and secure shipment of containerized goods from their initial 
     point of loading to their final place of delivery in the 
     United States, including Operation Safe Commerce (OSC), the 
     Container Security Initiative (CSI), and the Customs-Trade 
     Partnership Against Terrorism (C-TPAT). The conferees direct 
     the Under Secretary for Border and Transportation Security to 
     report to the House and Senate Committees on Appropriations 
     no later than February 8, 2005, on the history, 
     implementation, funding, and progress of the Department's 
     cargo container security efforts. The report should identify: 
     (1) steps the Department has taken to enhance shipping 
     container security; (2) resources devoted to this in prior 
     years and proposed to continue this security; (3) results of 
     ongoing projects such as OSC, CSI, and C-TPAT; (4) the 
     Departmental entity responsible for implementing improvements 
     in security systems and approaches; and (5) specific steps 
     each entity will take to implement these changes, with 
     associated schedules for development and issuance of 
     standards, policies, procedures, or regulations. In addition, 
     the report should address the security of in-bond shipments 
     as referenced within the House report.


      Coordination of Aviation and Marine Operations and Planning

       The conferees strongly support the rationalization of the 
     air and marine assets and organizations within the 
     Department, and anticipate that the recent decision to 
     transfer the Office of Air and Marine Operations (AMO) from 
     ICE to CBP will serve to improve the ability of the 
     Department and BTS to more effectively conduct their various 
     homeland security, law enforcement, and related missions. 
     With the presence of three significant aviation and maritime 
     assets, facilities, and organizations within the Department, 
     two within BTS, it is essential that those operations be 
     coordinated both to gain the maximum benefits for the 
     Department and related missions and support functions, as 
     well as achieve efficiency and reduce redundancies from 
     shared facilities and services.
       It is therefore more important than ever that BTS submit 
     the detailed AMO modernization and recapitalization plan as 
     directed by the conferees in fiscal year 2004, and as 
     indicated in the report submitted to Congress in March, 2004, 
     entitled ``Role in Securing the Homeland.'' That report 
     provided an overview of AMO current missions, priorities, and 
     plans, as well as plans for future acquisitions and 
     operational efforts. However, it did not describe resources 
     and timetables for procurement and organizational change. 
     Although the report said that actual spending plans would be 
     included in the modernization plan to follow, no plan has 
     been submitted. Similarly, the report only provided a 
     total of on-board staff (1,017 of 1,215 positions 
     authorized) not the detailed, multi-year staffing plan 
     requested.
       The ongoing review by the Joint Requirements Council and 
     Aviation Management Council of DHS missions, requirements, 
     and opportunities for strategic sourcing appears to have been 
     a factor in the decision to transfer AMO. The conferees 
     direct the Department to advise the House and Senate 
     Committees on Appropriations on the status of the 
     Department's review, and submit the final results of the 
     study as soon as they become available.
       The conferees expect to be provided the details involved in 
     integrating air and marine operations within BTS, and direct 
     the Under Secretary for Border and Transportation Security, 
     in consultation with the U.S. Interdiction Coordinator, to 
     submit a report to the House and Senate Committees on 
     Appropriations no later than February 15, 2005, on: (1) 
     specific actions taken or planned to rationalize and 
     coordinate air and marine assets and operations within CBP, 
     including organizational structure; (2) plans for modernizing 
     the air and marine assets of CBP, including staffing plans, 
     in the detail specified in House Report 108-280; (3) a cost/
     benefit analysis of retrofitting the existing P-3 fleet to 
     extend the useful life of these aircraft; and (4) the 
     multiple air and marine missions of CBP, including their 
     relation to Coast Guard operations.

    United States Visitor and Immigrant Status Indicator Technology

       The conferees agree to provide $340,000,000 as proposed by 
     both the House and the Senate. Of these funds, $86,000,000 is 
     available for program management and operations, and 
     $254,000,000 is subject to the requirement for a detailed 
     expenditure plan, as proposed by the House. Funds are 
     available until expended.
       The conferees continue to require a detailed expenditure 
     plan and expect it to display detail greater than that 
     provided for fiscal years 2003 and 2004. Such plans must 
     reflect clear cost/benefit analyses associated with the 
     increments being proposed for funding.

                     Customs and Border Protection


                         salaries and expenses

                    (including rescission of funds)

       The conferees agree to provide $4,534,119,000 for Customs 
     and Border Protection (CBP), instead of $4,612,441,000 as 
     proposed by the House and $4,615,960,000 as proposed by the 
     Senate. This includes: $145,159,000 for inspection and 
     detection technology investments, of which $50,000,000 shall 
     be for radiation detection technology, and up to $30,000,000 
     shall be available for either radiation detection or non-
     intrusive inspection technology; $1,000,000 for a pilot study 
     to monitor in-bond container shipments; $2,000,000 for the 
     Immigration Security Initiative; $5,000,000 for the CBP 
     Advanced Training Center; $500,000 to continue steel tariff 
     training; $10,000,000 for unmanned aerial vehicles; not less 
     than $131,436,000 for the salaries and expenses for the 
     Office of Air and Marine Operations; and a reduction of 
     $23,000,000 to reflect the transfer of the Charleston 
     training center to the Federal Law Enforcement Training 
     Center. The conferees provide that not to exceed $35,000 
     shall be for official representation and reception expenses, 
     as opposed to $40,000 proposed by both the House and Senate. 
     The total appropriation includes a reduction of $193,308,000 
     in base budget shift to Immigration and Customs Enforcement.
       The following table specifies funding by budget activity:

Headquarters Management and Administration:
  Headquarters Management and Administration:............$1,172,838,000
Border Security Inspections and Trade Facilitation:
  Inspections, Trade and Travel Facilitation at Ports of E1,242,800,000
  Harbor Maintenance Fee Collection (Trust Fund)..............3,000,000
  Container Security Initiative.............................126,096,000
  Other International Programs...............................57,300,000
  Customs-Trade Partnership Against Terrorism/FAST...........37,828,000
  Inspection and Detection Technology Investments...........145,159,000
  Automated Targeting Systems................................29,800,000
  National Targeting Center..................................16,100,000
  Other Technology Investments, Including Information Technolo1,000,000
  Training...................................................23,800,000
                                                       ________________
                                                       
    Subtotal, Border Security Inspections and Trade Facil$1,682,883,000
                                                       ================

Border Security and Control Between Ports of Entry:
  Border Security and Control.............................1,413,800,000
  Air Program Operations.....................................37,300,000
  Unmanned Aerial Vehicles...................................10,000,000
  Integrated Surveillance and Intelligence System Procurement64,162,000
  Training...................................................21,700,000
                                                       ________________
                                                       
    Subtotal, Border Security and Control Between Ports of1,546,962,000
                                                       ================

    Air and Marine Operations, Salaries and Expenses........131,436,000
                                                       ================

    Total, Salaries and Expenses:.........................4,534,119,000


                               rescission

       The conferees rescind $63,010,000 of the funds provided in 
     Public Law 108-11.


                   staffing plan and border staffing

       The conferees note that CBP has not submitted the staffing 
     plan due December 1, 2003, as directed in the fiscal year 
     2004 conference agreement, House Report 108-280. The 
     conferees support a comprehensive approach to border 
     security, including both people and technology. The Congress 
     has funded significant increases in hardware and systems 
     investment in a number of areas, as well as additional border 
     staffing, both Border Patrol and inspection personnel. The 
     conferees strongly endorse the CBP approach to border 
     enforcement with its ``one face at the border'' philosophy.
       The conferees therefore direct that the Department submit 
     the pending staffing plan immediately, and submit an updated 
     plan not later than 90 days after enactment of this Act. The 
     plan shall include: actual on-board personnel for fiscal year 
     2004; projected staffing for fiscal year 2005; positions 
     authorized but vacant; full-time, part-time, and temporary 
     positions funded through direct appropriations; full-time, 
     part-time and temporary fee-funded positions; and staffing, 
     by position, at each port of entry, Border Patrol

[[Page H9136]]

     station, or other border area location. The report should 
     identify any new positions funded under this Act, should be 
     consistent with staffing assumptions included in the CBP 
     construction master plan that was due July, 2004, and should 
     indicate how the CBP staffing allocation methodology factors 
     in the deployment of complementary technology.


                           vehicle management

       The conferees are aware that CBP is conducting a 
     comprehensive review of its vehicle management plan. The 
     conferees strongly support efforts to incorporate the Border 
     Patrol vehicle fleet into this Bureau-wide fleet management 
     plan. The conferees direct CBP to submit a detailed report, 
     no later than February 8, 2005, as specified by the House and 
     Senate reports.


               integrated surveillance information system

       The conferees strongly support the use of technology to 
     enhance the security of our nation's borders, particularly in 
     the vast expanses between ports of entry. The Integrated 
     Surveillance Information System (ISIS) is intended to detect 
     border intrusions, interpret surveillance data, and transmit 
     such information in real-time to Border Patrol, CBP, and the 
     Department operations and analysis centers. The conferees are 
     aware of significant gaps in integration of sub-systems that 
     encompass the ISIS, and direct the Under Secretary for BTS to 
     report no later than February 8, 2005, on the status of this 
     effort. The conferees also direct CBP to submit a master plan 
     for nationwide deployment of ISIS and associated surveillance 
     and sensor technology with its fiscal year 2006 budget 
     request, including a five-year capital acquisition plan, as 
     specified in the Senate report. In addition, the conferees 
     direct the Government Accountability Office to undertake a 
     study of ISIS project management, and spending plans for ISIS 
     investment and operations for fiscal years 2006-2010, to 
     assess how well the project management and spending plans 
     account for the different needs and environments of the land 
     and maritime borders, and to assess how CBP investment in 
     ISIS is aligned with the Department's enterprise architecture 
     and technology standards.


                   enforcement of trade remedies law

       The conferees have ensured that, of the amounts provided 
     within this account, sufficient funds are available to 
     enforce the anti-dumping authority contained in section 754 
     of the Tariff Act of 1930 (19 U.S.C. 1675c).
       The conferees direct CBP to submit a report to the House 
     and Senate Committees on Appropriations by January 15, 2005, 
     on the status of its implementation of recommendations by the 
     U.S. Treasury Department's Office of the Inspector General 
     report on implementation of the Continued Dumping and Subsidy 
     Offset Act (CDSOA). The report should address: (1) the proper 
     establishment of special accounts; (2) the need to pay 
     claimants within 60 days after the end of the fiscal year 
     (including the need to prepare and send checks in a timely 
     fashion, and to make certain that the addresses to which they 
     are sent are correct); (3) the need to address CBP's failure 
     to collect millions of dollars in unliquidated entries 
     (including the need for CBP to conduct timely liquidations 
     upon receipt of liquidation instructions from the Department 
     of Commerce, and for CBP not to liquidate in situations 
     involving tardy notice of suspension of liquidation); (4) the 
     need to address CBP's failure to collect millions of dollars 
     in open (unpaid) duty bills and interest (including a 
     determination of whether required posting of cash deposits 
     rather than bonds would result in increased collections); (5) 
     the need to establish standard operating procedures and 
     adequate internal controls for the proper management of the 
     CDSOA program; and (6) the progress and achievements of the 
     CDSOA working group in addressing systemic issues identified 
     in the report, along with any others relevant to proper 
     administration of CDSOA.
       In addition, the conferees are aware that CBP intends to 
     transfer administrative responsibility for the CDSOA program 
     to its Office of Finance. The conferees expect CBP to 
     establish an organization that is accessible and responsive 
     and directs CBP to include in the report a detailed 
     description of which offices have responsibility for external 
     relations, litigation, denials, verifications, and payments.


                      Counterdrug Support Program

       The Department of Homeland Security should work with the 
     Department of Defense to permit the New Mexico National Guard 
     to continue performing vehicle and cargo inspections in 
     support of CBP and ICE missions, and CBP, in consultation 
     with the Department of Defense, should report no later than 
     March 1, 2005, on what actions are planned.


                      CBP advanced training center

       The conferees include an increase of $5,000,000 above the 
     fiscal year 2004 level to operate and equip the CBP Advanced 
     Training Center. Although the budget requested funding for 
     the operation of this center in the Federal Law Enforcement 
     Training Center (FLETC) ``Salaries and Expenses'' account, 
     the conferees expect this to continue to be a CBP facility 
     and that DHS will not use its reorganization authority to 
     effectuate its transfer elsewhere. Pursuant to Public Law 
     106-246, the training to be conducted at the facility shall 
     be configured in a manner so that it does not duplicate or 
     displace any FLETC training. The conferees expect that 
     training currently being conducted at a FLETC facility shall 
     not be moved to the new CBP training facility.


                   textile transshipment enforcement

       The conferees direct CBP to maintain its efforts at the 
     level authorized by Section 352 of the Trade Act of 2002.


                         pre-arrival processing

       The conferees are aware that the Department is working with 
     government officials and private entities at Northern Border 
     land ports of entry to securely expedite cargo, including 
     such pre-clearance methods as the Pre-Arrival Processing 
     System using barcode technology, and support expansion of 
     such programs.


            air and marine operations, salaries and expenses

       The conferees agree to provide $131,436,000 for the 
     salaries and expenses of AMO, which is to be transferred from 
     ICE to CBP. This reflects salaries and expenses presently 
     funded through the ICE Salaries and Expenses account, and 
     includes an additional $3,000,000 for personnel and 
     operations costs for the National Capital Region Air Branch 
     and Coordination Center. The House provided $5,000,000 for 
     this purpose.


                       offsetting fee collections

       The conferees continue to be concerned about the accuracy 
     of estimates for fees supporting CBP operations, particularly 
     for the Immigration User Fee. The conferees direct CBP to 
     ensure that fee revenues are used first to fully fund base 
     operations and adjustments, as supported by budget 
     justification materials provided to the Congress, before 
     undertaking any new initiatives. The conferees also direct 
     the Department and CBP to inform the House and Senate 
     Committees on Appropriations in a timely manner of potential 
     short-term operational or programmatic impacts from reduced 
     fee collections.

                        Automation Modernization

       The conferees agree to provide $449,909,000, as proposed by 
     both the House and the Senate. Funds are available until 
     expended. This includes funding as requested for the 
     Automated Commercial Environment (ACE), the Integrated Trade 
     Data System (ITDS), and the costs of the legacy Automated 
     Commercial System. This funding includes not less than 
     $321,690,000 for ACE and ITDS, of which $16,190,000 is for 
     ITDS, all of which remains subject to approval of its 
     expenditure plan before it may be obligated.


                      CBP automation modernization

       The conferees believe that ACE and CBP modernization should 
     be integrated with, if not form the core of, the Department's 
     information system and border security technology, the 
     Container Security Initiative, and Automated Targeting 
     Systems. The conferees direct CBP to address such issues in 
     its quarterly reports on ACE implementation.

 Air and Marine Interdiction, Operations, Maintenance, and Procurement

       The conferees agree to provide $257,535,000, as proposed by 
     the House, instead of $467,535,000 as proposed by the Senate. 
     This had been requested as part of ICE Salaries and Expenses, 
     but the conferees have moved this funding to CBP to reflect 
     the decision by the Secretary of Homeland Security.


                     tethered aerostat radar system

       The conferees are concerned with an apparent lack of 
     consensus about the scope and scale of the Tethered Aerostat 
     Radar System among key stakeholders--AMO, the Department of 
     Defense, the Office of National Drug Control Policy, and the 
     Office of the United States Interdiction Coordinator (USIC). 
     The conferees direct the Under Secretary for Border and 
     Transportation Security, in consultation with USIC, to submit 
     a joint report, no later than February 8, 2005, as specified 
     in the House report.


                         airwing communications

       The conferees believe that interoperable communications are 
     necessary to ensure that all airwings can communicate with 
     local law enforcement personnel.

                              Construction

       The conferees agree to provide $91,718,000, as proposed by 
     both the House and the Senate. Funds are available until 
     expended.


               construction master plan and spending plan

       The conferees are disappointed that the updated 
     construction master plan called for in the fiscal year 2004 
     appropriation has not yet been submitted. The conferees 
     direct the Department to submit that plan as soon as 
     possible, and to submit a detailed spending plan for the 
     fiscal year 2005 construction account no later than February 
     8, 2005, which includes, but should not be limited to, the 
     following information for each tactical and facility 
     construction project, by sector, type of construction, and 
     facility, for fiscal years 2005-2009: (1) explanation of the 
     purpose of work; (2) total estimated project cost; (3) amount 
     of funding provided by fiscal year; (4) a detailed cost 
     breakout for construction, design, planning, project 
     management; and (5) date each phase of the project began or 
     is scheduled to begin and is to be completed.

                  Immigration and Customs Enforcement


                         salaries and expenses

       The conferees agree to provide $2,438,494,000, instead of 
     $2,377,006,000 as proposed by the House and $2,513,438,000 as 
     proposed by the Senate. This includes increases

[[Page H9137]]

     of: $11,000,000 for alternatives to detention; $6,000,000 to 
     reduce immigration court backlog; $14,000,000 for the Visa 
     Security Unit and Overseas Operations; $30,000,000 for the 
     Institutional Removal Program; $25,000,000 for benefit fraud 
     enforcement; $5,000,000 for worksite enforcement; $26,500,000 
     for detention bedspace support; $16,000,000 for compliance 
     teams; $50,000,000 for fugitive operations (including 
     associated detention and removal costs); $6,216,000 for the 
     Guantanamo Migrant Operations Center; and $4,200,000 for the 
     Cyber Crime Center. This reflects the transfer of 
     $131,436,000 for salaries and expenses.
       The conferees provide that not to exceed $15,000 shall be 
     for official representation and reception expenses, and that 
     not to exceed $11,216,000 shall be available to reimburse 
     federal agencies for their costs associated with smuggled 
     aliens.
       The conferees also include an increase of $193,308,000 to 
     reflect a permanent realignment in base funding for 
     investigations and overseas operations through a shift from 
     CBP. As noted in the section below, the conferees are closely 
     following the continuing review by ICE and the Department of 
     administrative and other mission responsibilities, with the 
     goal of fully mapping the costs and requirements of ICE and 
     other agencies formed as a result of being merged into the 
     new department. The following table specifies funding by 
     budget activity:

Headquarters Management and Administration:
  Personnel Compensation and Benefits, services and other co$96,202,000
    Headquarters Managed IT Investment......................120,119,000
                                                       ________________
                                                       
    Subtotal, Headquarters Management and Administration....216,321,000
                                                       ================

Investigations:
  Operations..............................................1,055,345,000
  Training...................................................15,671,000
                                                       ________________
                                                       
    Subtotal, Investigations..............................1,071,016,000
                                                       ================

Intelligence:
  Headquarters Reporting Center...............................4,882,000
  Operations.................................................55,130,000
                                                       ________________
                                                       
                                                       ================

Detention and Removal Operations:
  Custody Management........................................504,221,000
  Case Management...........................................192,269,000
  Fugitive Operations........................................35,242,000
  Institutional Removal Program..............................33,719,000
  Alternatives to Detention..................................14,202,000
  Transportation and Removal Program........................311,492,000
                                                       ________________
                                                       
    Subtotal, Detention and Removal Operations............1,091,145,000
                                                       ================

      Total, Salaries and Expenses........................2,438,494,000


                          financial management

       The conferees are extremely concerned about the financial 
     health of ICE, and whether it has the systems and management 
     in place to support the functioning of the agency. The 
     adverse impact of hiring and spending freezes and uncertainty 
     on the operations of this critical agency and the morale of 
     its personnel cannot be ignored. The Department and ICE must 
     significantly improve management and oversight of financial 
     and administrative systems to prevent a repeat of the 
     dramatic and unanticipated funding difficulties in fiscal 
     years 2004 and expected in 2005. The conferees are 
     disappointed that ICE has been unable to provide 
     comprehensive data for fiscal year 2005 operations prior to 
     the consideration of the conference agreement.
       The conferees also expect that structural and management 
     problems will be dealt with immediately and emphatically, and 
     that improved analysis and planning systems will be put in 
     place to give the agency, Department, and Congress a clear 
     and transparent view of ICE's financial status. The conferees 
     direct the Department's Chief Financial Officer and the 
     Assistant Secretary for ICE to submit a detailed report no 
     later than February 8, 2005, to the House and Senate 
     Committees on Appropriations on the progress of its financial 
     management overhaul. This report should include, but not be 
     limited to, a detailed explanation of: (1) steps ICE is 
     taking to address shortcomings of its present financial 
     management systems; (2) how improved financial oversight will 
     be carried out; (3) how ICE will improve its notification of 
     financial irregularities; and (4) how reform of ICE financial 
     management will be coordinated with the ``tri-bureau'' and 
     ``shared-services'' efforts ICE carries out with CBP and U.S. 
     Citizenship and Immigration Services (CIS).


                  use of immigration examinations fee

       The conferees are aware that the Department is studying the 
     possibility of the ICE Office of General Counsel receiving 
     reimbursement from the examinations fee account for the costs 
     of workload related to CIS. The conferees believe that ICE 
     does not currently have the ability to provide a detailed 
     accounting of this potential examinations fee account 
     spending to CIS. It is reasonable for CIS, as the client, to 
     expect that ICE will have in place an adequate system to 
     track attorney time spent on CIS-related cases, and provide 
     that information to CIS in support of the annual bill for 
     services rendered. The Department should ensure that such a 
     tracking system is in place prior to any future proposal to 
     allocate examinations fee funds to ICE.


                          cyber crimes center

       The conferees agree to provide $4,200,000 for additional 
     computer forensic infrastructure, to include content-
     addressable data storage, information technology services and 
     staff, to expand the ICE Cyber Crime Center to ICE field 
     offices.


                  cross-training of ICE special agents

       The conferees are aware that some ICE special agents have 
     been cross-trained to act as Federal Air Marshals (FAMs) in a 
     ``surge capacity'', with plans to train more in fiscal year 
     2005. The conferees believe that this is not an effective use 
     of resources or training, and that it no longer has the full 
     support of either ICE or FAM management. The conferees 
     believe this training program should be discontinued.


                      increased detention bedspace

       The conferees agree to provide $16,500,000 in addition to 
     the level of funding provided in the House and Senate bills, 
     which would support an increase in detention capacity of 500 
     beds for fiscal year 2005, leading to over 3,300 more 
     removals of deportable aliens than currently planned.


                   textile transshipment enforcement

       The conferees direct ICE to maintain its efforts at the 
     level authorized by Section 352 of the Trade Act of 2002.

                       offsetting fee collections

       The conferees continue to be concerned about the accuracy 
     of estimates for fees supporting ICE operations, including 
     the collection of fees for the Student and Exchange Visitor 
     Program and the Immigration User Fee. The conferees direct 
     ICE to ensure that fee revenues are used first to fully fund 
     base operations and adjustments, as supported by budget 
     justification materials provided to Congress, before 
     undertaking any new initiatives. The conferees also direct 
     the Department and ICE to inform the House and Senate 
     Committees on Appropriations in a timely manner of potential 
     short-term operational or programmatic impacts from reduced 
     fee collections.

                          Federal Air Marshals

       The conferees agree to provide $662,900,000, as proposed by 
     the House instead of $712,900,000 as proposed by the Senate. 
     Within this total, $593,552,000 is for management and 
     administrative expenses and $69,348,000 is for travel and 
     training. Funding is available for one year as proposed by 
     the Senate.


                  cross-training of ice special agents

       The conferees are aware that a number of ICE special agents 
     have been cross-trained to serve as FAMs and that plans are 
     in place to continue this training in fiscal year 2005. While 
     ICE has previously described this effort as a means of 
     developing a ``surge capacity'' to respond to a heightened 
     threat condition, the conferees believe that it has not 
     proven to be an effective use of resources or training, and 
     that it no longer has the full support of either ICE or FAM 
     management. The conferees believe this training program 
     should be discontinued.

                         reporting requirement

       The conferees direct the Secretary to provide quarterly 
     classified reports to the House and Senate Committees on 
     Appropriations; the Senate Committee on Commerce, Science, 
     and Transportation; and the House Committee on Transportation 
     and Infrastructure on the number of individuals serving as 
     FAMs, the number of FAMs who are women, minorities, or 
     employees of agencies of the United States government other 
     than the Department of Homeland Security; the percentage of 
     domestic and international flights that have FAMs on board; 
     and the rate at which individuals are leaving the Federal Air 
     Marshal service. The first such report is due on January 15, 
     2005.


                             identification

       The conferees are concerned about public identification of 
     FAMs and strongly support the rapid development of procedures 
     and policies, such as a credential, that do not expose FAMs 
     when on official travel.

                       Federal Protective Service

       The conferees agree to provide $478,000,000, as proposed by 
     both the House and the Senate.

                        Automation Modernization

       The conferees agree to provide $39,605,000, as proposed by 
     both the House and the Senate. Funds are available until 
     expended. The conferees also include a provision prohibiting 
     the obligation of funds until the House and Senate Committees 
     on Appropriations receive and approve an expenditure plan, as 
     proposed by the House.

                              Construction

       The conferees agree to provide $26,179,000 as proposed by 
     the House, and as specified by project in the Senate report.

                 TRANSPORTATION SECURITY ADMINISTRATION

                           Aviation Security

       The conferees agree to provide $4,323,523,000 instead of 
     $4,270,564,000 as proposed by the

[[Page H9138]]

     House and $4,386,083,000 as proposed by the Senate. Within 
     this total, not to exceed $3,000 is available for official 
     reception and representation expenses as proposed by the 
     House and the Senate. In addition to the amounts 
     appropriated, a mandatory appropriation of $250,000,000 is 
     available to support the Aviation Security Capital Fund. Bill 
     language is also included that reflects the collection of 
     $1,823,000,000 from aviation user fees, as authorized. 
     Funding is provided as follows:

Passenger screening:
  Screening pilots (PP5)...................................$129,654,000
  Passenger screeners, PC&B...............................1,445,486,000
  Passenger screeners, training and other...................140,614,000
  Human resource services...................................150,000,000
  Checkpoint support........................................123,500,000
  Secure flight..............................................34,919,000
  Crew vetting...............................................10,000,000
  Registered traveler program................................15,000,000
                                                       ________________
                                                       
    Subtotal, Passenger screening.........................2,049,173,000
                                                       ================

Baggage screening:
  Baggage screeners, PC&B...................................848,860,000
  Baggage screeners, training and other.....................203,660,000
  Explosive detection systems purchase......................180,000,000
  Explosive detection systems installation...................45,000,000
  Maintenance...............................................174,940,000
                                                       ________________
                                                       
    Subtotal, Baggage screening...........................1,452,460,000
                                                       ================

Security direction and enforcement:
  Aviation regulation and other enforcement.................230,000,000
  Airport management and staff..............................284,000,000
  Airport information technology and other support..........242,890,000
  Federal flight deck officer program........................25,000,000
  Air cargo..................................................40,000,000
  Flight school checks (non-add, transfer from DOJ)...........9,700,000
                                                       ________________
                                                       
    Subtotal, Security Direction and Enforcement............821,890,000


                            Staffing Levels

       The conferees include bill language that caps the full-time 
     equivalent (FTE) screener workforce to up to 45,000 as 
     proposed by the House. The conferees expect the 
     Transportation Security Administration (TSA) to have no more 
     than 45,000 full-time equivalent screeners by the end of 
     fiscal year 2005. The conferees recognize that TSA may need 
     to realign its workforce throughout the year due to attrition 
     or advances in detection technologies. TSA has the 
     flexibility to hire screeners during the fiscal year at those 
     airports where additional or replacement screeners are 
     necessary to maintain aviation security and customer service. 
     The 45,000 FTE level is therefore to be regarded as a cap and 
     not a staffing mandate.


                    Aviation Security Costs and Fees

       The conferees include bill language, as proposed by the 
     Senate, requiring the Government Accountability Office to 
     conduct audits of air carriers' actual security costs for 
     passenger and property screening incurred in calendar year 
     2000. Based on the findings of the review, the Secretary 
     shall collect any additional fees from air carriers and make 
     them available for airport security modifications.


  Passenger and Baggage Screeners Personnel, Compensation and Benefits

       The conferees agree to provide $1,445,486,000 for passenger 
     screening and $848,860,000 for baggage screening activities 
     for both Federal screeners as well as any contracts awarded 
     under the opt-out program after November 18, 2004, for all 
     airports other than the five current screening pilots. The 
     conferees agree that TSA needs the flexibility to manage the 
     opt-out program without the need for reprogramming actions 
     for each individual contract. In addition to the report 
     required by the House on cost savings resulting from opt-out, 
     the conferees direct TSA to report on the following 
     information regarding the opt-out program: (1) the number and 
     location of each airport applying for participation under the 
     opt-out program; (2) the decision by the Administrator on the 
     application; (3) if an application by an airport is not 
     accepted, the reasons why the application was not approved; 
     and (4) the results of the competitive acquisition for 
     contract screening services at those airports whose 
     applications have been approved. The conferees direct that 
     TSA provide the House and Senate Committees on Appropriations 
     with advance notice 10 days before an announcement is made 
     that an airport has been selected under the opt-out program. 
     At the time the contract is awarded, TSA shall adjust its 
     program, project, and activity line items to account for 
     changes in third party private screening contracts and 
     screener personnel, compensation and benefits to reflect the 
     award of contracts under the opt-out program.


                          Screener Complaints

       The conferees understand that there have been a 
     disproportionate number of complaints against TSA for alleged 
     violations of equal employment opportunity and veterans 
     preference laws as those laws apply to employment of 
     personnel in TSA airport screener positions at the Louis 
     Armstrong New Orleans International Airport. There also 
     appears to be a significant backlog of unresolved complaints. 
     The conferees direct the Administrator to submit a report to 
     the House and Senate Committees on Appropriations no later 
     than March 31, 2005, on the personnel policies of the 
     Department that apply to the employment of TSA airport 
     screeners, particularly with regard to compliance with equal 
     employment opportunity and veterans preference laws. The 
     report should include an assessment of the extent of TSA's 
     compliance with these laws, a discussion of any systemic 
     problems that could have caused the circumstances giving rise 
     to the disproportionate number of complaints, and the efforts 
     being taken by the Administrator to eliminate the backlog of 
     unresolved complaints and to correct any systemic problems at 
     the Louis Armstrong New Orleans International Airport.


                           Checkpoint Support

       The conferees agree to provide $123,500,000 instead of 
     $86,060,000 as proposed by the House and $161,060,000 as 
     proposed by the Senate. Funding may be used for 
     reconfiguration of airport checkpoints to expedite the flow 
     of travelers; purchase, installation, and maintenance of 
     checkpoint equipment; and electronic surveillance of 
     checkpoints.
       TSA shall submit a report to the House and Senate 
     Committees on Appropriations no later than February 10, 2005, 
     on the agency's pilot programs to screen passengers and 
     carry-on baggage for explosives, as discussed in the Senate 
     report.


                             Secure Flight

       The conferees agree to provide $34,919,000 as proposed by 
     the Senate instead of $40,000,000 as proposed by the House. 
     Previous year funding remains unobligated for this program 
     that can be applied in fiscal year 2005. In addition, 
     $10,000,000 has been provided under a separate account for 
     crew vetting, as proposed by the House. In the past, this 
     funding was part of the CAPPS II/Secure Flight account.
       The conferees note that the Department appears to be moving 
     in the right direction regarding aviation passenger 
     prescreening by proposing to check all watch lists through 
     the new Secure Flight program, as was recommended by the 9/11 
     Commission. The conferees are concerned, however, that the 90 
     days allotted by TSA to plan, test, and analyze this new 
     system before it is fully implemented may be insufficient. 
     The conferees encourage TSA to focus first on getting the 
     watchlist checks operational, before undertaking any other 
     efforts. The conferees expect TSA to cooperate fully with the 
     Government Accountability Office in their review of the 
     Secure Flight program.


                  Explosive Detection Systems Purchase

       The conferees agree to provide $180,000,000 instead of 
     $170,000,000 as proposed by the House and $210,000,000 as 
     proposed by the Senate. The conferees continue to encourage 
     competition among the vendors so that multiple Explosive 
     Detection Systems (EDS) technologies are available to TSA and 
     airports. The conferees are aware of next-generation in-line 
     EDS machines that are currently being tested, certified, and 
     piloted. Within the $180,000,000 provided, the conferees 
     direct that not less than $30,000,000 be used to install 
     these next-generation explosive detection systems, 
     particularly at medium and small airports, to permit more 
     efficient handling of checked bags and reduce dependence on 
     baggage screeners. These next-generation EDS systems are far 
     smaller and less expensive than the current generation of 
     screening units. The conferees believe that the expeditious 
     deployment of these systems is essential for developing in-
     line solutions that do not require the costly, large-scale 
     redesign and construction of baggage conveyor systems. 
     Furthermore, although these next-generation machines have 
     immediate application to checked-baggage screening, they also 
     have the potential to cost-effectively enhance security at 
     passenger checkpoints, transit stations, and other key 
     facilities.


                Explosive Detection Systems Installation

       In addition to the statutory allocation of $250,000,000 in 
     the Aviation Security Capital Fund, the conferees agree to 
     provide $45,000,000 to assist the eight airports that have 
     signed Letters of Intent to install explosive detection 
     systems in-line with their baggage systems. The installation 
     of in-line systems to screen checked baggage at our Nation's 
     airports is a critical step in combating the terrorist threat 
     against aviation. The use of in-line EDS is not only more 
     effective than explosive trace detection (ETD) and stand-
     alone systems, but is considerably less costly to operate. 
     Accordingly, it has been widely recognized that a high 
     priority should be given to the installation of in-line 
     baggage screening systems. Most recently, the 9/11 Commission 
     recognized this need in its recommendations, urging TSA to 
     ``expedite the installation'' of such systems.
       The conferees have included bill language requested by the 
     President that permits the Aviation Security Capital Fund to 
     be used to fund the eight Letters of Intent in fiscal year 
     2005 with a 75 percent Federal share. Under tight budgetary 
     constraints the conferees do not have sufficient funding to 
     raise these projects to a 90 percent Federal share.
       The conferees direct TSA to comprehensively plan for 
     expediting the installation of in-line EDS, including the 
     formulation of detailed budget requirements that will provide

[[Page H9139]]

     for both equipment acquisition and the capital costs of 
     installing such system configurations at airports. Consistent 
     with fiscal year 2004 report language, TSA should submit 
     quarterly reports on its plans for such in-line installations 
     that include: (1) the universe of airports that may benefit 
     from an in-line EDS system or other physical modifications; 
     (2) a list of all airports where TSA has begun working on 
     plans to move EDS machines in-line either through the Boeing 
     contract design phases or directly with the airports; and (3) 
     a list of airports that will be doing EDS enhancements, 
     including moving systems in-line that are not funded via 
     Letters of Intent. Costs associated with each airport's 
     project and a tentative timeline for award and completion 
     should be included. Additionally, the plan should include 
     information reflecting the anticipated cost savings--
     particularly personnel savings--that will be achieved from 
     the use of in-line checked baggage systems contrasted with 
     reliance on ETD and stand-alone systems. The conferees expect 
     that TSA's planning will be conducted in consultation with 
     aviation stakeholders (including airports, airlines, and EDS 
     manufacturers).


               Aviation Regulation and Other Enforcement

       The conferees agree to provide $230,000,000 as proposed by 
     the House instead of $227,000,000 as proposed by the Senate. 
     Within this funding, $3,000,000 has been provided to expand 
     the number of canine teams deployed to inspect air cargo. Due 
     to the increasing need for explosive detection capability in 
     the transportation sector, the conferees encourage the 
     Department to conduct a pilot project to assess the cost and 
     performance effectiveness of utilizing private sector 
     providers of explosive detection canines.


                               Air Cargo

       The conferees agree to provide a total of $115,000,000 for 
     air cargo security. Of this total, $40,000,000 is for 100 
     additional inspectors and enforcement activities and 
     $75,000,000 is for research and development of technologies 
     to provide more effective and efficient methods of detecting 
     air cargo threats.
       Public Law 108-90, the Department of Homeland Security 
     Appropriations Act of 2004, provided $85,000,000 to 
     strengthen the oversight of air cargo security and for 
     research and development of technological solutions for 
     inspections of cargo carried on passenger aircraft. Public 
     Law 108-90 also provided statutory language directing the 
     Secretary to develop the best technology for the inspection 
     and screening of air cargo on passenger aircraft at the 
     earliest date possible and for the enhancement of the known 
     shipper program. Given recent Department reports of low 
     obligations for these programs, the conferees are concerned 
     that the Department is not moving with sufficient speed to 
     implement this direction. The conferees direct the Department 
     to act expeditiously to fully obligate and expend the funding 
     provided for air cargo security activities and direct TSA to 
     provide quarterly reports to the House and Senate Committees 
     on Appropriations beginning in December, 2004, on the use of 
     all dollars obligated and plans for the use of unobligated 
     balances.
       The conferees direct TSA to work more aggressively to 
     strengthen air cargo security. In particular, TSA should 
     strengthen the known shipper program to include regular 
     security checks on all known shippers to assure that they are 
     not compromising security standards. Similarly, TSA is 
     directed to work with the indirect air carriers to assure 
     that they abide by all security directives and information 
     circulars relating to air cargo. TSA shall also validate the 
     indirect air carriers security measures used when they 
     consolidate freight and transport it to passenger and all-
     cargo aircraft to prevent unauthorized access.


                      Deployable Flight Recorders

       The ability to rapidly determine whether a security breach 
     caused an aviation accident is critical. Therefore, the 
     conferees direct TSA to work with the Federal Aviation 
     Administration to determine whether it would improve security 
     analysis in aviation accidents if deployable flight incident 
     recorders were required aboard commercial passenger aircraft 
     and to report back to the House and Senate Committees on 
     Appropriations within 180 days of enactment of this Act.

                       Maritime and Land Security

       The conferees recommend a total funding level of 
     $75,000,000 for staffing and activities within TSA's maritime 
     and land security program. Of this total, $48,000,000 is a 
     direct appropriation and $27,000,000 is available through 
     offsetting collections. The House proposed $65,000,000 in 
     direct appropriations and $67,000,000 in offsetting 
     collections. The Senate proposed $44,000,000 in direct 
     appropriations and $67,000,000 in offsetting collections. 
     Funding shall be available until September 30, 2006, as 
     proposed by the House instead of September 30, 2005, as 
     proposed by the Senate. The following table specifies funding 
     levels by budget activity:

Credentialing................................................$5,000,000
Transportation worker identification credential..............15,000,000
Hazardous materials truck tracking............................2,000,000
Hazardous materials safety...................................17,000,000
Enterprise staffing..........................................24,000,000
Rail security................................................12,000,000
Offsetting collections.....................................(27,000,000)
                                                       ________________
                                                       
    Subtotal, Maritime and Land..............................48,000,000

                   Maritime and Land Security Grants

       While funding has been provided for a variety of maritime 
     and land security grants within the Office of State and Local 
     Government Coordination and Preparedness (SLGCP), as proposed 
     by the Senate, the conferees realize that TSA staff have the 
     subject matter expertise on port, rail, intercity bus, and 
     highway security. The conferees, therefore, direct TSA to 
     work with SLGCP to review grant applications, determine 
     eligibility, and make award determinations for these four 
     grant areas.
       The conferees are concerned about the lack of priority-
     setting in the intercity bus grant program. TSA and SLGCP 
     should clearly identify priorities, including the importance 
     of passenger screening and terminal security. It also is 
     important to focus on the unique structure of the intercity 
     bus industry and the importance of fixed route intercity 
     bus service.


            transportation worker identification credential

       The conferees agree to provide $15,000,000 instead of 
     $65,000,000 as proposed by the House and $53,000,000 as 
     proposed by the Senate. Funding has been decreased for this 
     program because of delays in prototyping and evaluating this 
     credential. The conferees direct TSA to report back to the 
     House and Senate Committees on Appropriations about the 
     results of prototype testing before moving into the next 
     phase. Of the total funding, $5,000,000 is a direct 
     appropriation that will be used to develop and install 
     necessary hardware and software at those sites producing and 
     personalizing the transportation worker identification 
     credentials. The additional $10,000,000 appropriation will be 
     offset throughout the fiscal year from application fees.


                             rail security

       The conferees agree to provide $12,000,000 instead of 
     $11,000,000 as proposed by the House and $15,000,000 as 
     proposed by the Senate. This level will support the 
     deployment of up to 100 federal rail compliance inspectors 
     and includes $2,000,000 for the deployment of canine 
     explosive detection teams. In addition to funds provided 
     under TSA, the conferees include $150,000,000 for rail 
     security grants under the Office of State and Local 
     Government Coordination and Preparedness, funding within the 
     Science and Technology Directorate to research and design 
     rail security requirements that could strengthen rail 
     security nationwide, and funding within the Information 
     Analysis and Infrastructure Protection Directorate to improve 
     the security of rail corridors that carry hazardous 
     materials.
       The conferees are aware of promising advances in train 
     control technology that would allow a central operator the 
     ability to remotely control the operation of a freight or 
     passenger train in times of distress. The conferees believe 
     development of such a system would enhance the security of 
     the rail system, and direct TSA to implement projects that 
     demonstrate and advance this technology.


                   hazardous materials truck tracking

       The conferees have provided $2,000,000 to continue the 
     previously funded program to coordinate tracking and 
     monitoring truck shipments of hazardous materials.

                              Intelligence

       The conferees agree to provide $14,000,000 as proposed by 
     both the House and the Senate.

                        Research and Development

       The conferees agree to provide $178,000,000 instead of 
     $174,000,000 as proposed by the House and $181,000,000 as 
     proposed by the Senate. Funding shall be allocated as 
     follows:

Research and development, including Tech Center.............$49,000,000
Next-generation explosive detection systems..................54,000,000
Air cargo....................................................75,000,000
                                                       ________________
                                                       
    Subtotal, Research and Development......................178,000,000


              Next-Generation Explosive Detection Systems

       The conferees agree to provide $54,000,000 instead of 
     $50,000,000 as proposed by the House and $57,000,000 as 
     proposed by the Senate. Of this total, $10,000,000 is for the 
     Manhattan II project as proposed by the House.


                               air cargo

       The conferees agree to provide $75,000,000 for air cargo 
     research and development as proposed by both the House and 
     the Senate. Of this total, $20,000,000 shall be used to 
     accelerate the research and development of new technologies 
     to detect explosives in air cargo bound for passenger and 
     all-cargo aircraft, and for the acceleration of the air cargo 
     inspection pilot program to additional locations, including 
     airports experiencing extreme environmental conditions, to 
     ensure equipment durability.

                             Administration

       The conferees agree to provide $519,852,000 instead of 
     $524,852,000 as proposed by the House and $534,852,000 as 
     proposed by the Senate. Funding shall be available until 
     September 30, 2006, as proposed by the House. The following 
     table specifies funding levels by budget activity:

Headquarters support.......................................$267,382,000
Mission support centers.......................................5,000,000
Information technology applications.........................240,470,000

[[Page H9140]]

Corporate training............................................7,000,000
                                                       ________________
                                                       
  Subtotal, Administration..................................519,852,000

                       UNITED STATES COAST GUARD

                           Operating Expenses

       The conferees agree to provide $5,157,220,000 instead of 
     $5,171,220,000 as proposed by the House and $5,153,220,000 as 
     proposed by the Senate. Within this total, $1,204,000,000 
     shall be available for defense-related activities, as 
     proposed by the House instead of $1,090,000,000 as proposed 
     by the Senate. Funding for operating expenses shall be 
     allocated as follows:

Military Pay and Allowance:
  Military pay and allowances............................$2,161,114,000
  Military health care......................................544,785,000
    Permanent change of station.............................101,928,000
                                                       ________________
                                                       
    Subtotal, military pay and allowance..................2,807,827,000
                                                       ================

Civilian Pay and Benefits:
  Civilian pay and benefits.................................456,110,000
  Pay for performance demonstration..................................--
                                                       ________________
                                                       
    Subtotal, civilian pay and benefits.....................456,110,000
                                                       ================

Training and Recruiting:
  Training and education.....................................81,407,000
  Recruitment................................................80,034,000
                                                       ________________
                                                       
    Subtotal, training and recruiting.......................161,441,000
                                                       ================

Operating Funds and Unit Level Maintenance:
  Atlantic Command..........................................153,427,000
  Pacific Command...........................................175,377,000
  1st District...............................................43,367,000
  7th District...............................................52,004,000
  8th District...............................................36,302,000
  9th District...............................................23,265,000
  13th District..............................................18,050,000
  14th District..............................................12,512,000
  17th District..............................................22,557,000
  Headquarters directorates.................................312,322,000
  Headquarters managed units.................................74,175,000
  Other activities..............................................767,000
    Subtotal, operating funds and unit level maintenance....924,125,000
Centrally Managed Accounts:.................................175,438,000
Immediate and Depot Level Maintenance:
  Aeronautical maintenance..................................222,384,000
  Electronic maintenance.....................................95,460,000
  Civil/Ocean engineering & shore facilities maintenance....151,035,000
  Vessel maintenance........................................154,400,000
                                                       ________________
                                                       
    Subtotal, immediate and depot level maintenance.........623,279,000
                                                       ================

Watch Standards:..............................................9,000,000
                                                       ================

    Total.................................................5,157,220,000

       For the fiscal year 2006 budget justification and for 
     reprogrammings pursuant to Section 503 of this Act, the Coast 
     Guard shall use the six budget categories listed above 
     (military pay and allowances, civilian pay and benefits, 
     training and recruiting, operating funds and unit level 
     maintenance, centrally managed accounts, and intermediate and 
     depot level maintenance). However, notwithstanding 
     reprogramming thresholds, the Coast Guard shall notify the 
     House and Senate Committees on Appropriations of changes 
     within program, projects, and activities of the 23 line items 
     listed above as they occur.


                    ballast water management program

       The conferees agree to provide $4,000,000 as proposed by 
     the Senate instead of $4,662,000 as proposed by the House.


                        aeronautical maintenance

       The conferees do not agree to language contained in the 
     House report related to fluid outflow collection devices. The 
     Senate had no comparable report language.


                            watch standards

       The conferees agree to provide $9,000,000 for the Coast 
     Guard to come into compliance with its watch standards, which 
     specify that an individual on duty or watch in a Coast Guard 
     Search and Rescue Command Center facility should not work 
     more than 12 hours in a 24-hour period, except in an 
     emergency or unforeseen circumstance. The House provided 
     $13,000,000 for this activity.


                     foreign vessel security plans

       The conferees are concerned that the Coast Guard intends to 
     rely on foreign governments to review foreign vessel security 
     plans. The conferees expect the Coast Guard to use its Port 
     State Control Program, a risk-based independent verification 
     process, to ensure that foreign vessel security plans are 
     adhered to and in place. The conferees also expect the Coast 
     Guard to randomly assess the vessel security plans of vessels 
     not identified by the Port State Control Program. The 
     conferees direct the Coast Guard to report no later than 
     March 1, 2005, on the progress of this foreign vessel 
     security oversight process, including the Coast Guard 
     resources required to implement this process.


                            sector commands

       The conferees direct the Coast Guard to adhere to reporting 
     requirements addressed in the House report 30 days prior to 
     moving any sector commands. As part of these decisions, the 
     Coast Guard is encouraged to recognize the importance of 
     existing Department of Defense capabilities to maximize 
     coordination and eliminate redundancies when forming joint 
     sector command centers with the Navy.


                    liquefied natural gas terminals

       The Coast Guard shall submit a report to the House and 
     Senate Committees on Appropriations, the Committee on 
     Commerce, Science, and Transportation of the Senate, the 
     Committee on Energy and Commerce of the House of 
     Representatives, and the Committee on Transportation and 
     Infrastructure of the House of Representatives not later than 
     90 days after the enactment of this Act on opportunities for 
     integrating the process the Coast Guard uses to issue letters 
     of recommendation for proposed liquefied natural gas 
     terminals and the process by which the Federal Energy 
     Regulatory Commission issues permits for such terminals under 
     the National Environmental Policy Act. The report shall also 
     include the advisability of requiring that Coast Guard 
     responsibilities relating to vessel transit, facility 
     security assessment and facility security plans under the 
     Maritime Transportation Security Act be completed for a 
     proposed liquefied natural gas terminal before a final 
     environmental impact statement for such terminal is published 
     under the Federal Energy Regulatory Commission process.


                           icebreaking study

       As discussed in the Senate report and the Coast Guard 
     authorization bill for fiscal year 2005, the conferees 
     require the National Academy of Sciences to study the role of 
     Coast Guard icebreakers.


                   maritime safety and security teams

       The conferees direct the Coast Guard to adhere to Senate 
     report language on maritime safety and security teams.

                Environmental Compliance and Restoration

       The conferees agree to provide $17,000,000 as proposed by 
     both the House and the Senate.

                            Reserve Training

       The conferees agree to provide $113,000,000 as proposed by 
     the House instead of $117,000,000 as proposed by the Senate.

              Acquisition, Construction, and Improvements


                    (including rescission of funds)

       The conferees agree to provide $982,200,000 instead of 
     $936,550,000 as proposed by the House and $1,062,550,000 as 
     proposed by the Senate. Consistent with prior practice, bill 
     language is included to distribute the total appropriation by 
     separate obligation availabilities. The following table 
     summarizes the recommended level by program, project, and 
     activity:

Vessels and critical infrastructure:
  Great Lakes icebreaker replacement.........................$7,750,000
  Response boat medium.......................................12,000,000
                                                       ________________
                                                       
    Subtotal, vessels and critical infrastructure............19,750,000
                                                       ================

Deepwater:
Aircraft
  Maritime patrol aircraft....................................5,250,000
  VTOL unmanned aerial vehicle (VUAV)........................43,000,000
  Capability enhancements for HH-60 Avionics.................15,000,000
  Capability for HC-130 aircraft radar........................9,000,000
  HH-65 re-engining project..................................99,000,000
  Convert surveillance aircraft..............................14,000,000
Surface Ships
  National security cutter..................................264,500,000
  Offshore patrol cutter requirements analysis...............25,000,000
  IDS patrol boat (110' to 123' conversion)..................30,000,000
  Fast response cutter.......................................30,000,000
  IDS small boats.............................................2,300,000
  270' WMEC sustainment project for major equipment..........12,500,000
CHISR
  Command and control system for common operating picture....31,000,000
  270' WMEC C4ISR upgrades....................................1,500,000
  Communications area master station upgrade at shore sites..19,500,000
  SEI Equipment for 270' WMEC and 378' WHEC...................1,600,000
Logistics
  ICGS Development...........................................15,100,000
  Shore sites.................................................1,600,000
  Facilities required for future asset deployments...........23,100,000
ICGS Management                                              43,000,000
Government program management/ICGS                           38,000,000
                                                       ________________
                                                       
    Subtotal, Deepwater.....................................723,950,000
                                                       ================

Aircraft:
  Armed helicopter equipment..................................2,500,000
                                                       ================

Other equipment:
  Rescue 21.................................................134,000,000
  Automatic Identification System............................24,000,000
    Subtotal, other equipment...............................158,000,000

[[Page H9141]]

Shore facilities and aids to navigation facilities:
  Survey and design, shore operational and support projects...1,000,000
  Minor AC&I shore construction projects......................1,600,000
  Small arms range at ISC Honolulu, Hawaii....................1,600,000
  Waterway aids to navigation infrastructure....................800,000
                                                       ________________
                                                       
    Subtotal, shore facilities and aids to navigation faciliti5,000,000
                                                       ================

Personnel and related support:
  Direct personnel costs.....................................72,500,000
  AC&I core.....................................................500,000
                                                       ________________
                                                       
    Subtotal, personnel and related support..................73,000,000
                                                       ================

    Total..................................................$982,200,000

       The conferees agree to bill language proposed by the House 
     that requires the Secretary to annually submit to the 
     Congress, with the budget request, a future years capital 
     investment plan for the Coast Guard that identifies for each 
     capital budget line item: (1) the proposed appropriation 
     included in the budget, (2) the total estimated cost of 
     completion, (3) proposed funding levels for each of the next 
     5 fiscal years or until the project is completed, (4) an 
     estimated completion date at the projected funding levels, 
     and (5) changes from previous capital investment plans. The 
     Secretary shall also ensure that amounts specified in future 
     capital investment plans are consistent and that any 
     inconsistencies between the capital investment plan and 
     proposed appropriations are identified and justified.
       The conferees have also retained longstanding bill 
     language, as proposed by the Senate, that authorizes any 
     proceeds that result from the disposal of surplus real 
     property be applied as offsetting collections and only 
     available for Rescue 21.


                               deepwater

       The conferees require the Secretary to submit to Congress 
     at the time of the fiscal year 2006 budget request a new 
     Deepwater baseline. This new baseline must include revised 
     acquisition timelines for each asset that is necessary to 
     fulfill homeland security functions or multi-agency 
     procurements as identified by the Joint Requirements Council; 
     a timeline and detailed justification for each new asset; a 
     detailed description of the revised mission requirements and 
     impact on the acquisition timeline; and funding levels for 
     each asset the Coast Guard continues to believe is necessary 
     to acquire as proposed by the House. The Senate has no 
     comparable bill language.


                             legacy assets

       The conferees direct the Coast Guard to report to the House 
     and Senate Committees on Appropriations, within 30 days of 
     enactment of this Act, on its plan for maintenance of all its 
     legacy assets and the entity responsible, whether contractor 
     or Coast Guard, for such maintenance and estimated costs, 
     including the costs associated with each legacy asset and 
     future funding requests planned by the Coast Guard. The Coast 
     Guard is also directed to submit quarterly reports to the 
     Committees on its actions with respect to this plan, 
     beginning with the submission of the President's budget 
     request for fiscal year 2006.


                       HH-65 Re-Engining Project

       The conferees agree to provide $99,000,000 instead of 
     $75,000,000 as proposed by the House and $115,000,000 as 
     proposed by the Senate. In addition, the conferees direct the 
     Coast Guard to reallocate to the HH-65 re-engining project: 
     (1) the $4,000,000 provided in fiscal year 2003 for the 
     development of a new fuel control system (FADEC), and (2) 
     $5,700,000 provided in fiscal year 2003 for additional 38 
     LTS-101-850 engines. These funds are no longer needed for the 
     original work because the current HH-65 engine is being 
     replaced entirely by a different manufacturer.
       The conferees are aware that the Coast Guard's HH-65 
     Dolphin helicopters are experiencing an alarming rate of 
     engine failure and that the Commandant would like to re-
     engine these critical assets within a 24-month period. The 
     conferees commend the Coast Guard for moving quickly to 
     address this critical flight safety issue and direct that all 
     of the funds appropriated for HH-65 re-engining in fiscal 
     year 2005 and past legacy aircraft sustainment funds be used 
     to accelerate the delivery of conversion kits and the re- 
     engining schedule. The conferees believe that taking 
     immediate and definitive action to return the HH-65 fleet to 
     safe and reliable operations is the Coast Guard's highest 
     aviation priority. The additional funding provided above the 
     level requested in the budget shall be used to achieve a 24-
     month completion schedule. If the Commandant determines that 
     the present re-engining operations of the Coast Guard are not 
     capable of achieving a 24-month completion goal, then he 
     shall contract with a second qualified facility to achieve 
     this objective. The conferees expect any additional funding 
     required to meet this schedule to be included in the 
     President's fiscal year 2006 budget submission.


                      covert surveillance aircraft

       The conferees agree to provide $14,000,000 for manned, 
     covert, multi-sensor surveillance aircraft to perform 
     maritime domain awareness missions as proposed by the House.


                            IDS patrol boat

       The conferees agree to provide up to $30,000,000 for the 
     IDS patrol boat in the Deepwater program. As part of 
     Deepwater rebaselining, the Secretary in conjunction with the 
     Coast Guard is directed to provide an analysis of operational 
     patrol boat and other ship hours available over the past five 
     years and over the next ten years under the rebaselined 
     program. The analysis should include the hours contributed by 
     each class of ship or patrol boat (fast response cutter, 
     110', 123', or a replacement patrol boat); a yearly 
     retirement, conversion, and acquisition schedule (including 
     costs) covering all ships and patrol boats; and a year by 
     year count of the different vessels in the Coast Guard 
     inventory over the timeframe requested. Given the current and 
     future reliance of the Coast Guard on these vessels, it is 
     imperative that the Congress has a clear schedule of current 
     and outyear assets that will provide the requisite 
     operational hours. This report should be provided to the 
     House and Senate Committees on Appropriations no later than 
     February 10, 2005.


                          aircraft deployments

       The conferees direct the Coast Guard to adhere to Senate 
     report language on support facilities for aircraft 
     deployments.


                               Rescission

       The conferees rescind $16,000,000 from funding appropriated 
     in fiscal year 2004 (Public Law 108-90) for Rescue 21 due to 
     contract delays and high unobligated balances.

                         Alteration of Bridges

       The conferees agree to provide $15,900,000 instead of 
     $16,400,000 as proposed by the House and $15,400,000 as 
     proposed by the Senate. Within this total, funds shall be 
     allocated as follows:

Florida Avenue Bridge in New Orleans, Louisiana..............$4,400,000
Chelsea Street Bridge in Chelsea, Massachusetts...............1,000,000
Canadian Pacific Railroad Bridge in La Crosse, Wisconsin......2,000,000
Fourteen Mile Bridge, Mobile, Alabama.........................5,500,000
EJ&E Railroad Bridge in Morris, Illinois......................1,500,000
Burlington Northern Santa Fe Bridge in Burlington, Iowa.......1,500,000
                                                       ________________
                                                       
    Total....................................................15,900,000

               Research, Development, Test and Evaluation

       The conferees agree to provide $18,500,000 as proposed by 
     the Senate instead of $13,500,000 as proposed by the House 
     within the Science and Technology Directorate. The conferees 
     expect the Commandant of the Coast Guard to continue to 
     coordinate with the Under Secretary for Science and 
     Technology on research and development activities.

                              Retired Pay

       The conferees agree to provide $1,085,460,000 as proposed 
     by both the House and the Senate.

                      UNITED STATES SECRET SERVICE

                         Salaries and Expenses

       The conferees agree to provide $1,172,125,000 instead of 
     $1,179,125,000 as proposed by the House and $1,159,125,000 as 
     proposed by the Senate. This includes: not to exceed $25,000 
     for representation and reception expenses; $5,000,000, to 
     remain available until expended, for Secret Service costs 
     related to National Special Security Events; [$34,536,000 to 
     support investigations of electronic crimes; $2,100,000 for 
     forensic support to the National Center for Missing and 
     Exploited Children (NCMEC) as well as a $5,000,000 grant to 
     NCMEC.
       Funds shall be allocated as follows:

Protection:
  Protection of persons and facilities.....................$571,640,000
  National Special Security Event Fund........................5,000,000
  Protective intelligence activities.........................53,989,000
  White House mail screening.................................16,365,000
                                                       ________________
                                                       
    Subtotal, Protection....................................646,994,000
                                                       ================

Field Operations:
  Domestic field operations.................................221,489,000
  International field office administration, operations and t19,208,000
  Electronic crimes special agent program and electronic crimes task 
    forces...................................................34,536,000
                                                       ________________
                                                       
    Subtotal, Field Operations..............................275,233,000
                                                       ================

Administration:
  Headquarters, management and administration...............197,747,000
  National Center for Missing and Exploited Children..........7,100,000
                                                       ________________
                                                       
    Subtotal, Administration................................204,847,000
                                                       ================

Training:
  Rowley training center.....................................45,051,000
                                                       ================

    Total, Salaries and Expenses.........................$1,172,125,000

[[Page H9142]]

                National Special Security Events (NSSEs)

       The conferees agree to provide not less than $5,000,000 
     above the budget request for the Secret Service's 
     unanticipated costs related to NSSEs, instead of $10,000,000 
     as proposed by the House. Funds are available until expended. 
     The Conferees direct the Secret Service to budget for 
     foreseeable costs related to NSSEs within its base budget. 
     The Secret Service has the lead security responsibility for 
     these events as authorized by Presidential Decision Directive 
     62 and 18 USC 3056 (e).


                 Electronic Crimes Task Forces (ECTFs)

       The conferees agree to provide $34,356,000 instead of 
     $36,356,000 as proposed by the House and $31,356,000 as 
     proposed by the Senate. The $3,000,000 above the budget 
     request is provided for the costs associated with the 
     training and support of new Special Agents assigned to ECTFs. 
     The Secret Service is directed to submit a deployment plan 
     not later than February 8, 2005, to the House and Senate 
     Committees on Appropriations, describing the staffing and 
     other resources assigned to each ECTF, as specified in the 
     House report. The Department is encouraged to apply any 
     lapsed salary savings to fund ECTF requirements.

                           Operating Expenses


                         (Rescission of Funds)

       The conferees rescind $750,279 of the funds provided in 
     Public Law 108-11.

     Acquisition, Construction, Improvements, and Related Expenses

       The conferees agree to provide $3,633,000 as proposed by 
     both the House and Senate. Funds are available until 
     expended.

                  TITLE III--PREPAREDNESS AND RECOVERY

   Office of State and Local Government Coordination and Preparedness

       The conferees agree with the creation of the Office of 
     State and Local Government Coordination and Preparedness 
     (SLGCP), which merges the Office of State and Local 
     Government Coordination with the Office for Domestic 
     Preparedness (ODP). Administration and oversight of the 
     following programs were moved to SLGCP from legacy agencies:
       Emergency Preparedness and Response Directorate.--
     Metropolitan medical response system, first responder 
     counter-terrorism training assistance, assistance to 
     firefighter grants, emergency management performance grants, 
     state and local all-hazards emergency operations planning, 
     Citizens Corps, interoperable communications equipment, and 
     Community Emergency Response Teams.
       Office for Domestic Preparedness.--State domestic 
     preparedness equipment support; law enforcement terrorism 
     prevention; New York equipment replacement; national exercise 
     program (TOPOFF) grants; multi-state anti-terrorism 
     information exchange; terrorism early alert and strategic 
     planning system; State Homeland Security Grant Program; and 
     the Urban Area Security Initiative (UASI) Grant Program 
     including UASI port security grants, UASI mass transit 
     security grants, and UASI radiological defense systems.
       Transportation Security Administration.--Port Security 
     Grants, Intercity Bus Security Grants, Operation Safe 
     Commerce, and Trucking Industry Security Grants.
       The conferees understand that, while SLGCP will provide a 
     single entry point for grant applications, the subject matter 
     experts of those transferred grants will remain with the 
     original legacy agencies. SLGCP shall continue to include 
     these experts in the review of grant applications, the 
     determination of eligibility, and making award 
     determinations. The conferees agree that no more than 12 
     personnel from the Transportation Security Administration 
     (TSA) and 51 personnel from the Emergency Preparedness and 
     Response (EP&R) Directorate shall be transferred to SLGCP to 
     assist in the administration of these grants.


                     MANAGEMENT AND ADMINISTRATION

       The conferees agree to provide $3,546,000 instead of 
     $41,432,000 as proposed by the House and $25,000,000 as 
     proposed by the Senate. Funds are provided for the management 
     and administration expenses of the Office of State and Local 
     Government Coordination. Management and administration 
     expenses for the Office for Domestic Preparedness are 
     provided as a percentage of the formula-based grants, as 
     authorized by Section 1014 of the USA PATRIOT Act. Funding of 
     not to exceed $2,000 is provided for official reception and 
     representation expenses, as proposed by the House.


                        STATE AND LOCAL PROGRAMS

       The conferees agree to provide $3,086,300,000 instead of 
     $3,423,900,000 as proposed by the House and $2,845,081,000 as 
     proposed by the Senate.

Formula-Based Grants:
  Formula-Based Grants:..................................$1,100,000,000
  Law Enforcement Terrorism Prevention Grants:..............400,000,000
                                                       ________________
                                                       
    Subtotal, Formula-Based Grants........................1,500,000,000
                                                       ================

Discretionary Grants:
  High-Threat, High-Density Urban Area Grants...............885,000,000
  Rail and Transit Security Grants..........................150,000,000
  Port Security Grants......................................150,000,000
  Intercity Bus Security Grants..............................10,000,000
  Trucking Security Grants....................................5,000,000
                                                       ________________
                                                       
    Subtotal, Discretionary Grants........................1,200,000,000
                                                       ================

Technology Transfer:
  Technology Transfer Program................................50,000,000
                                                       ================

National Programs:
  National Domestic Preparedness Consortium.................135,000,000
  National Exercise Program..................................52,000,000
  Metropolitan Medical Response System.......................30,000,000
  Technical Assistance.......................................30,000,000
  Demonstration Training Grants..............................30,000,000
  Continuing Training Grants.................................25,000,000
  Citizen Corps..............................................15,000,000
  Evaluations and Assessments................................14,300,000
  Rural Domestic Preparedness Consortium......................5,000,000
                                                       ________________
                                                       
    Subtotal, National Programs...........................3,086,300,000
                                                       ================

    Total, State and Local Programs:.....................$3,086,300,000
       The conferees view state and local jurisdictions' ability 
     to detect, prevent and respond to a terrorist attack as a 
     high priority. State and local responders are first to arrive 
     on scene when a terrorist attack occurs and must be prepared 
     to protect life and property. This function is inherently 
     non-federal, although federal resources and expertise are 
     needed to manage the crisis, and provide support to state and 
     local assets when an attack overwhelms their resources. For 
     purposes of eligibility for funds under this heading, any 
     county, city, village, town, district, borough, port 
     authority, transit authority, intercity rail provider, 
     commuter rail system, freight rail provider, water district, 
     regional planning commission, council of government, Indian 
     tribe with jurisdiction over Indian country, authorized 
     tribal organization, Alaska Native village, independent 
     authority, special district, or other political subdivision 
     of any state shall constitute a ``local unit of government.''


                          Formula-Based Grants

       The conferees agree to provide $1,100,000,000 instead of 
     $1,250,000,000 as proposed by the House and $970,000,000 as 
     proposed by the Senate. These funds are available to all 
     states for purposes of training, procuring equipment (such as 
     interoperable communications equipment), and conducting 
     exercises, based on each state's approved, updated homeland 
     security strategy. The conferees expect that these funds will 
     be made available to states within 45 days after enactment of 
     this Act, that states will have 45 days to apply after the 
     grant is announced, and that SLGCP will act within 15 days of 
     receipt of an application. The conferees also agree that no 
     less than 80 percent of these funds shall be obligated by the 
     state to local units of government within 60 days of the 
     state receiving funds. None of the funds may be used for 
     construction or overtime, except as provided in this Act. The 
     conferees urge the Department to work with state and local 
     governments to ensure that regional authorities, such as 
     port, transit, or tribal authorities, are given 
     due consideration in the distribution of state formula 
     grants. Not to exceed 3 percent may be used for 
     administrative expenses.
       The conferees are pleased with steps taken by the SLGCP to 
     allow states and localities to reallocate State Homeland 
     Security Grant Program funds to address emerging threats 
     identified by credible assessments. The conferees understand 
     that beginning with fiscal year 2004 grant funds, 
     reallocation of funds for this purpose does not require prior 
     approval by SLGCP, provided that reallocation of funds for 
     activities pursued by states and localities are consistent 
     with state homeland security strategies, within the scope of 
     allowable program expenditures, and that such reallocation 
     will be notified to SLGCP through the required, regularly 
     scheduled programmatic report.


              Law Enforcement Terrorism Prevention Grants

       The conferees agree to provide $400,000,000 as proposed by 
     the Senate instead of $500,000,000 as proposed by the House. 
     The conferees expect that these funds will be made available 
     to states within 45 days after enactment of this Act, that 
     states will have 45 days to apply after the grant is 
     announced, and that SLGCP will act within 15 days of receipt 
     of an application. The conferees also agree that no less than 
     80 percent of these funds shall be obligated by the state to 
     local units of government within 60 days of the state 
     receiving funds. Not to exceed 3 percent may be used for 
     administrative expenses.
       Law enforcement terrorism prevention activities that 
     involve compensation of overtime shall be limited to those 
     specifically related to homeland security, such as providing 
     expanded investigative and intelligence efforts. Funding may 
     not be used to supplant ongoing, routine public safety 
     activities of state and local law enforcement. State 
     applications must certify that all requests for overtime 
     comply with this requirement.

[[Page H9143]]

                          Discretionary Grants

       The conferees agree to provide $1,200,000,000 instead of 
     $1,000,000,000 as proposed by the House and $1,328,000,000 as 
     proposed by the Senate. Of these funds, $885,000,000 is made 
     available to the Secretary for discretionary grants to high-
     threat, high-density urban areas, instead of $900,000,000 as 
     proposed by the House and $875,000,000 as proposed by the 
     Senate. The Secretary shall consider credible threat, 
     presence of critical infrastructure, population, 
     vulnerability, cooperation of multiple jurisdictions in 
     preparing domestic preparedness plans, and the identified 
     needs of public agencies in determining the allocation of 
     these funds. The conferees expect funds to be obligated no 
     later than 60 days after enactment of the Act. The conferees 
     also agree that no less than 80 percent of these funds shall 
     be obligated by the state to local units of government within 
     60 days of the state receiving funds. Grants may be made to 
     single or multiple jurisdictions in the same urban area. Of 
     the funds made available for grants to high-threat, high-
     density urban areas, $25,000,000 is for grants to non-profit 
     organizations determined by the Secretary to be at high risk 
     of international terrorist attacks.
       The conferees agree that except for rail, transit, and port 
     security grants, the use of grant funds for construction is 
     prohibited. However, for those projects that specifically 
     address enhanced security at critical infrastructure 
     facilities, such as improved perimeter security, minor 
     construction or renovation for necessary guard facilities, 
     fencing, and related efforts, project construction or 
     renovation not exceeding $1,000,000 is allowable, as deemed 
     necessary by the Secretary. The conferees expect SLGCP to 
     continue the practice of reimbursing eligible overtime 
     expenses as designated in ODP Information Bulletin No. 127, 
     dated August 3, 2004.
       The conferees are aware that the Department has previously 
     provided technical assistance to urban areas through the 
     Urban Area Security Initiative. The conferees encourage SLGCP 
     to consider urban area technical assistance requirements as 
     part of normal technical assistance requests, which are 
     funded under a separate account.


                     Transportation Security Grants

       Of the funds provided for Discretionary Grants, 
     $150,000,000 is for port security grants; $150,000,000 is for 
     rail, freight, and transit security grants; $10,000,000 is 
     for intercity bus security grants; and $5,000,000 is for 
     trucking security grants. Despite the consolidation of 
     selected grant award functions within SLGCP, the conferees 
     agree that TSA subject matter experts will remain within TSA 
     and SLGCP shall continue to include these experts in the 
     review of grant applications, the determination of 
     eligibility, and making award determinations.
       The conferees are concerned that port security grants made 
     to independent terminal operators are not coordinated at the 
     state, local port authority, or Captain of the Port levels. 
     The conferees direct that SLGCP ensure the coordination of 
     all port security grants with the state, local port 
     authority, and the Captain of the Port, to ensure all vested 
     parties are aware of grant determinations and that the 
     limited resources are maximized.
       The conferees are concerned about the lack of priority 
     setting in the intercity bus grant program. It is important 
     for the Department to clearly identify priorities, including 
     the importance of passenger screening and terminal security, 
     and focus on the unique structure of the intercity bus 
     industry and the importance of fixed route service.


                      Technology Transfer Program

       The conferees agree to provide $50,000,000 as proposed by 
     the House. The Senate proposed $50,000,000 under the Law 
     Enforcement Terrorism Prevention Grants. The conferees are 
     aware of the unique needs of jurisdictions in smaller 
     communities that make it more difficult for them to identify, 
     select, procure, practice and become proficient in 
     specialized equipment and technology. The conferees direct 
     SLGCP to develop a technology transfer program to assist 
     smaller communities in acquiring and using commercially 
     available technologies to prevent, deter, and respond to 
     terrorist attacks, as identified in state homeland security 
     strategies. This competitive program shall be a direct 
     assistance program, not a grant program, and SLGCP will 
     provide the equipment and technical assistance directly to 
     the selected jurisdictions. This includes, but is not limited 
     to, interoperable communications technology, defensive 
     protective equipment for first responders, and vulnerability 
     assessment technology appropriate to rural jurisdictions. A 
     key element of this program shall be the provision of 
     appropriate training and technical assistance to ensure 
     effective integration of the technologies into the 
     jurisdictions' response plans. This training should address 
     the specialized equipment related issues found in small and 
     rural communities, and solutions achieved by SLGCP's 
     technology transfer program that address these issues. Of the 
     amount provided, no more than $10,000,000 may be used for 
     commercially available equipment testing and validation to 
     determine appropriateness for inclusion in the technology 
     transfer program.


                           National Programs

       The conferees agree to provide $336,300,000 instead of 
     $275,081,000 as proposed by the Senate. The House proposed 
     $328,900,000 for these programs in separate accounts.


               National Domestic Preparedness Consortium

       Of the funds provided for National Programs, the conferees 
     agree to provide $135,000,000 as proposed by the Senate 
     instead of $130,000,000 as proposed by the House. Of these 
     funds, $55,000,000 is for the Center for Domestic 
     Preparedness.


                       National Exercise Program

       Of the funds provided for National Programs, the conferees 
     agree to provide $52,000,000 as proposed by both the House 
     and Senate.


                          Technical Assistance

       Of the funds provided for National Programs, the conferees 
     agree to provide $30,000,000 as proposed by the Senate 
     instead of $7,600,000 as proposed by the House. Of these 
     funds, $20,000,000 shall be for the Interoperable 
     Communication Technical Assistance program, as proposed by 
     the Senate. The House contained no similar provision.
       The conferees recognize the importance of interoperable 
     communications standards, which are critical to the 
     Department's efforts to improve communications nationally. 
     Therefore, the Science and Technology Directorate shall 
     expedite the development of these standards, and coordinate 
     with SLGCP to ensure that SLGCP's technical assistance 
     program incorporates these standards, as appropriate.


                  Metropolitan Medical Response System

       Of the funds provided for National Programs, the conferees 
     agree to provide $30,000,000 instead of $50,000,000 as 
     proposed by the House. The Senate included no similar 
     provision.


                     Demonstration Training Grants

       Of the funds provided for National Programs, the conferees 
     agree to provide $30,000,000 instead of $50,000,000 as 
     proposed by the House and $55,000,000 as proposed by the 
     Senate. The conferees agree that these peer reviewed 
     competitive grants shall be for first responder pilot and 
     demonstration training projects, covering the local, 
     regional, and national levels.


                       Continuing Training Grants

       Of the funds provided for National Programs, the conferees 
     agree to provide $25,000,000. The conferees agree to create 
     this separate grant program to fund continuing first 
     responder training efforts, instead of funding from a 
     combined competitive training account as proposed by the 
     House. The Senate contained no similar provision.


                      Evaluations and Assessments

       Of the funds provided for National Programs, the conferees 
     agree to provide $14,300,000 as proposed by the House instead 
     of $3,081,000 as proposed by the Senate.


                             Citizen Corps

       Of the funds provided for National Programs, the conferees 
     agree to provide $15,000,000 instead of $20,000,000 as 
     proposed by the House and $30,000,000 as proposed by the 
     Senate.


                 Rural Domestic Preparedness Consortium

       Of the funds provided for National Programs, the conferees 
     agree to provide $5,000,000 for the development of a Rural 
     Domestic Preparedness Consortium, as proposed by the House. 
     The Senate included no similar provision. Training for rural 
     first responders poses unique challenges when compared to 
     their urban counterparts. This new consortium should provide 
     a regional approach to rural first responder awareness level 
     training, develop emerging training, and provide technical 
     assistance in support of rural homeland security 
     requirements. SLGCP is to provide a report to the House and 
     Senate Committees on Appropriations on the creation of this 
     consortium no later than January 15, 2005.


                     Homeland Security Presidential

                              Directive 8

       At the urging of both the Congress and the President, the 
     Department is proceeding with a proposed plan to transition 
     first responder grant programs to a risk- and threat-based 
     allocation system. The conferees will monitor this progress 
     so that the Congress can consider such a transition in fiscal 
     year 2006, with the exception of the guaranteed state minimum 
     as prescribed in section 1014 of the USA PATRIOT Act of 2001. 
     In this regard, the conferees direct that SLGCP continue the 
     development of a universal list of first responder 
     preparedness tasks, defined capabilities to accomplish those 
     tasks grouped by the vulnerability of the jurisdiction, and 
     performance metrics for each capability, as defined in the 
     draft National Preparedness Goal. The conferees further 
     direct SLGCP to establish a comprehensive rollout strategy to 
     educate state and local jurisdictions on the finalized 
     National Preparedness Goal. The conferees include bill 
     language requiring SLGCP to provide state and local 
     jurisdictions with nationally accepted preparedness levels of 
     first responder capabilities no later than January 31, 2005; 
     include in the fiscal year 2005 formula-based grant guidance 
     guidelines for the states to adopt national preparedness 
     standards in fiscal year 2006; and issue final guidance on 
     the implementation of the National Preparedness Goal, as 
     required in Homeland Security Presidential Directive 8, no 
     later than March 31, 2005.


                     FIREFIGHTER ASSISTANCE GRANTS

       The conferees agree to provide $715,000,000 instead of 
     $650,000,000 as proposed by the House and $750,000,000 as 
     proposed by the Senate. Of this amount, $65,000,000 shall be

[[Page H9144]]

     for firefighter staffing, as authorized by section 34 of the 
     Federal Fire Prevention and Control Act of 1974, instead of 
     $50,000,000 as proposed by the House. The Senate proposed 
     $100,000,000 for this purpose in a separate account. Not to 
     exceed 5 percent may be used for administrative expenses. 
     Funds are available until September 30, 2006.
       The conferees are concerned by the Department's proposed 
     shift in grant focus from all-hazards to placing priority on 
     terrorism, and the proposed deletion of several eligible 
     activities, specifically, wellness and fitness programs, 
     emergency medical services, fire prevention programs, public 
     education programs, and modifications of facilities for 
     health and safety of personnel. The Department should 
     continue the present practice of funding applications 
     according to local priorities and those established by the 
     United States Fire Administration (USFA); reinstate all 
     previously eligible funding areas, continue direct funding of 
     grants to fire departments and the peer review process for 
     determining funding awards; and include the USFA during grant 
     administration. The conferees further direct the Department 
     to continue the practice of allowing the Alaska Village 
     Initiatives to apply for grants on behalf of Alaskan 
     communities, and make $3,000,000 available for implementation 
     of section 205(c) of Public Law 108-129, the United States 
     Fire Administration Reauthorization Act of 2003.


                EMERGENCY MANAGEMENT PERFORMANCE GRANTS

       The conferees agree to provide $180,000,000 instead of 
     $236,000,000 as proposed by the Senate. The House proposed 
     $170,000,000 under State and Local Programs. Not to exceed 3 
     percent may be used for administrative expenses.
       The conferees agree that Emergency Management Performance 
     Grants (EMPG) are vital to state and local emergency 
     management systems, and therefore do not agree to shift from 
     an all-hazards to a terrorism-specific focus or to limit 
     personnel expenses to 25 percent. The conferees direct the 
     Department to continue funding personnel expenses without a 
     limit and to continue current grant administrative practices, 
     including grant allocation, in a manner identical to fiscal 
     year 2004. Despite the consolidation of selected grant award 
     functions within SLGCP, the conferees agree that EMPG subject 
     matter experts will remain within EP&R and SLGCP shall 
     continue to include these experts in the review of grant 
     applications, determination of eligibility, and making award 
     determinations. Furthermore, the conferees expect the EP&R 
     regional emergency managers' relationship with state and 
     local governments to continue.

                         Counterterrorism Fund

       The conferees agree to provide $8,000,000 instead of 
     $10,000,000 as proposed by both the House and Senate. Funds 
     are available until expended. The Secretary shall notify the 
     House and Senate Committees on Appropriations 15 days prior 
     to obligation of these funds.

                  Emergency Preparedness and Response


 OFFICE OF THE UNDER SECRETARY FOR EMERGENCY PREPAREDNESS AND RESPONSE

       The conferees agree to provide $4,211,000 as proposed by 
     both the House and Senate.
       The conferees direct the Emergency Preparedness and 
     Response (EP&R) Directorate to continue the practice of 
     making balances from funds appropriated for disaster relief 
     for the terrorist attacks of September 11, 2001, available to 
     New York State at the request of the Governor of New York in 
     coordination with the Mayor of New York City. Of the amounts 
     available, $4,450,000 shall be for Project Liberty for 
     personnel, families, and retirees of the New York City Fire 
     Department and New York City Police Department, if requested 
     by the Governor of New York.


            PREPAREDNESS, MITIGATION, RESPONSE, AND RECOVERY

       The conferees agree to provide $239,499,000 instead of 
     $210,499,000 as proposed by the House and $231,499,000 as 
     proposed by the Senate.


                        Urban Search and Rescue

       Of the funds provided for Preparedness, Mitigation, 
     Response, and Recovery, the conferees agree to provide 
     $30,000,000 for Urban Search and Rescue Teams as proposed by 
     the Senate, instead of $7,000,000 as proposed by the House. 
     Not to exceed 3 percent may be used for administrative 
     expenses.


                         Emergency Housing Plan

       Of the funds provided for Preparedness, Mitigation, 
     Response, and Recovery, the conferees agree to provide 
     $2,000,000, as proposed by the House, in support of EP&R's 
     emergency housing plan to evaluate and deploy new housing 
     solutions which can be used in conjunction with traditional 
     response and recovery solutions. These new solutions shall be 
     collapsible so that they may stack for economical shipping 
     and storage, expand during assembly to increase usable space, 
     be sturdy enough to ensure multiple reuse in future 
     deployments, and address both housing and other 
     infrastructure needs. In light of recent natural disasters, 
     the conferees and EP&R believe this evaluation of new housing 
     and infrastructure solutions is very timely. The conferees 
     direct a report on the evaluation and deployment of these new 
     housing solutions be submitted to the House and Senate 
     Appropriations Committees no later than January 14, 2005, and 
     that emergency housing and infrastructure requirements be 
     submitted with the fiscal year 2006 budget request.


               National Incident Management System (NIMS)

       Of the funds provided for Preparedness, Mitigation, 
     Response, and Recovery, the conferees agree to provide 
     $15,000,000 instead of $7,000,000 as proposed by both the 
     House and Senate. The conferees expect the Department to 
     implement a program concept for the NIMS Integration Center 
     (NIC) that is anchored in multiple locations serving regional 
     interests. As part of the NIMS mission the conferees strongly 
     encourage the Department to establish regional centers to 
     facilitate the development and deployment of NIMS training, 
     education and publications.


         Minority Emergency Preparedness Demonstration Program

       The conferees continue to be concerned with EP&R's slow 
     progress in the implementation of the Minority Emergency 
     Preparedness Demonstration Program. Notwithstanding the draft 
     outline for such a program shared with the Committees earlier 
     this year and the direction of the Committees over the past 
     three years to implement this program, EP&R has not acted. 
     The conferees direct EP&R to develop a pilot program for 
     socio-economically disadvantaged communities and 
     underrepresented members of the population that assesses and 
     analyzes the preparation and response of these communities 
     and individuals to a widespread disaster affecting multiple 
     states and regions. The program should utilize information 
     gathered from organizations such as community based 
     organizations, faith-based institutions, historically black 
     colleges and universities, and private organizations and 
     businesses serving socio-economically disadvantaged 
     communities and underrepresented populations. The Department 
     is directed to implement this pilot program no later than 
     December 1, 2004; if this program is not implemented by 
     December 1, 2004, the Secretary is to provide a written 
     justification to the House and Senate Committees on 
     Appropriations as to why this direction is not being 
     followed.


                             Shockoe Creek

       The conferees direct EP&R to conduct an investigation of 
     the Shockoe Creek drain field in Richmond, Virginia, to 
     determine means of preventing future damage in that area from 
     floods and other natural disasters.


                           OPERATING EXPENSES

                         (Rescission of Funds)

       The conferees rescind $5,000,000 of the funds provided by 
     Public Law 108-11.


                 ADMINISTRATIVE AND REGIONAL OPERATIONS

       The conferees agree to provide $202,939,000 instead of 
     $203,939,000 as proposed by the House and $196,939,000 as 
     proposed by the Senate. Within these funds, the conferees 
     agree to provide $6,000,000 for the Document Management 
     Support Program, instead of $7,000,000 as proposed by the 
     House. Funding of not to exceed $3,000 is provided for 
     official reception and representation funds as proposed by 
     the Senate instead of $4,000 as proposed by the House.


                         PUBLIC HEALTH PROGRAMS

       The conferees agree to provide $34,000,000 as proposed by 
     both the House and Senate.


                       BIODEFENSE COUNTERMEASURES

       The conferees agree with the budget estimate to make 
     available in fiscal year 2005, $2,528,000,000 in obligation 
     authority for fiscal years 2005-2008 pursuant to Public Law 
     108-90.


              RADIOLOGICAL EMERGENCY PREPAREDNESS PROGRAM

       The conferees agree to provide for the receipt and 
     expenditure of fees collected, as authorized by Public Law 
     105-276, as proposed by both the House and Senate.


                            DISASTER RELIEF

       The conferees agree to provide $2,042,380,000 as proposed 
     by the House instead of $2,221,000,000 as proposed by the 
     Senate. The conferees do not agree to include $70,000,000 in 
     emergency funding for the American Red Cross, as proposed by 
     the Senate. These funds are addressed in the fiscal year 2004 
     emergency supplemental, as requested by the President on 
     September 14, 2004.
       The conferees direct the Under Secretary for Emergency 
     Preparedness and Response to place special emphasis on the 
     recruitment of American Indians, Alaska Natives, Native 
     Hawaiians, and other minorities for positions within Disaster 
     Assistance Employee cadres maintained by EP&R. The Under 
     Secretary shall provide to the House and Senate Committees on 
     Appropriations a report no later than 100 days after 
     enactment of this Act which assesses the representation of 
     American Indians, Alaska Natives, Native Hawaiians, and other 
     minorities in the Disaster Assistance Employee cadres. The 
     report should also identify recruitment strategies to 
     increase the representation of such individuals in the 
     cadres.


            DISASTER ASSISTANCE DIRECT LOAN PROGRAM ACCOUNT

       The conferees agree to provide $567,000 for administrative 
     expenses as proposed by both the House and Senate. Gross 
     obligations for the principal amount of direct loans shall 
     not exceed $25,000,000 as proposed by both the House and 
     Senate.


                      FLOOD MAP MODERNIZATION FUND

       The conferees agree to provide $200,000,000 as proposed by 
     the Senate instead of

[[Page H9145]]

     $150,000,000 as proposed by the House. The conferees do not 
     agree to Senate report language regarding the National 
     Service Provider.


                     NATIONAL FLOOD INSURANCE FUND

                     (Including Transfer of Funds)

       The conferees agree to provide $33,336,000 for salaries and 
     expenses as proposed by both the House and Senate. The 
     conferees further agree to provide up to $79,257,000 for 
     flood mitigation activities and limitations of $55,000,000 
     for operating expenses, $562,881,000 for agents' commissions 
     and taxes, and $30,000,000 for interest on Treasury 
     borrowings as proposed by both the House and Senate.


                     NATIONAL FLOOD MITIGATION FUND

       The conferees agree to provide $20,000,000 by transfer from 
     the National Flood Insurance Fund as proposed by the House. 
     The Senate proposed $20,000,000 for flood mitigation by 
     transfer under Mitigation Grant Programs. Funds are available 
     until September 30, 2006.


                 NATIONAL PRE-DISASTER MITIGATION FUND

       The conferees agree to provide $100,000,000 as proposed by 
     the House. The Senate proposed $150,000,000 for pre-disaster 
     mitigation under Mitigation Grant Programs. Not to exceed 3 
     percent may be used for administrative expenses. Funds are 
     available until expended.
       The conferees are concerned by EP&R's slow progress in 
     awarding fiscal year 2003 pre-disaster mitigation grants. 
     These grants were only recently awarded and an excessive 
     unobligated balance remains. The conferees direct EP&R to 
     report no later than February 15, 2005, on any changes it 
     intends to make in future grants, including an expeditious 
     and reasonable obligation plan for awarding all unobligated 
     funds. The report shall also describe feedback received from 
     state hazard mitigation officers and an assessment of ways to 
     streamline the application and award process.


                       EMERGENCY FOOD AND SHELTER

       The conferees agree to provide $153,000,000 as proposed by 
     both the House and Senate. Not to exceed 3.5 percent may be 
     used for administrative expenses. Funds are available until 
     expended.

  TITLE IV--RESEARCH, DEVELOPMENT, TRAINING, ASSESSMENTS, AND SERVICES

                  Citizenship and Immigration Services


                         salaries and expenses

       The conferees agree to provide $160,000,000, as proposed by 
     the House, instead of $140,000,000 as proposed by the Senate. 
     This includes $140,000,000 for backlog elimination, as well 
     as $20,000,000 for the historical records project to convert 
     immigration records into an electronic, digitally-accessible 
     format. The conferees direct that no funding for the 
     historical record project may be obligated until U.S. 
     Citizenship and Immigration Services (CIS) submits a detailed 
     expenditure plan to the House and Senate Committees on 
     Appropriations for approval. Current estimates of examination 
     fee collections, which constitute the majority of offsetting 
     resources for CIS are $1,571,000,000. The conferees direct 
     that not to exceed $5,000 of these collections shall be for 
     official reception and representation expenses, as proposed 
     by the House.
       The following table specifies funding by budget activity, 
     and includes both direct appropriations and estimated 
     collections:

Adjudication Services (fee accounts):
  Pay and Benefits.........................................$561,000,000
                                                    Operating Expenses:
    District Operations.....................................284,000,000
    Service Center Operations...............................217,000,000
    Asylum, Refugee, and International Operations............73,000,000
    Records Operations.......................................65,000,000
                                                       ________________
                                                       
      Total, Adjudication Services........................1,200,000,000
                                                       ================

Backlog Reduction Initiatives (Direct Appropriations):
  Contracting Services......................................120,000,000
  Other......................................................20,000,000
  Digitization...............................................20,000,000
                                                       ________________
                                                       
    Total, Backlog Reduction Initiatives....................160,000,000
                                                       ================

Information and Customer Services (fee accounts):
  Pay and Benefits...........................................78,000,000
                                                    Operating Expenses:
    National Customer Service Center.........................46,000,000
    Information Services.....................................14,000,000
                                                       ________________
                                                       
      Total, Information and Customer Services..............138,000,000
                                                       ================

Administration (fee accounts):
  Pay and Benefits...........................................43,000,000
  Operating Expenses........................................190,000,000
                                                       ________________
                                                       
    Total, Administration...................................233,000,000
                                                       ================

    Total, Citizenship and Immigration Services...........1,731,000,000


                        regional service centers

       The conferees direct the Department to evaluate the 
     distribution of staff and resources among the four CIS 
     regional service centers, and submit a report no later than 
     December 1, 2004, with recommendations to normalize the 
     petition processing times across the regional centers.


                             benefit fraud

       The conferees have agreed to the Administration's request 
     to increase the resources available for benefit fraud 
     enforcement by decreasing the funds available to Immigration 
     and Customs Enforcement (ICE) from the examinations fee 
     account, and leaving those resources available to CIS, as 
     proposed in the House report. These resources are to fund the 
     Office of Fraud Detection and National Security (FDNS) Unit, 
     as called for by the Government Accountability Office. The 
     FDNS unit is responsible for developing, implementing, 
     directing, and overseeing the joint CIS-ICE anti-fraud 
     initiative, and conducting law enforcement/background checks 
     on every applicant, beneficiary, and petitioner prior to 
     granting any immigration benefits. CIS is to report by July 
     1, 2005, to the House and Senate Committees on Appropriations 
     on the progress in implementing the joint anti-fraud 
     initiative.

            Federal Law Enforcement Training Center (FLETC)


                         salaries and expenses

       The conferees agree to provide $177,440,000 instead of 
     $183,440,000 as proposed by the House and $181,440,000 as 
     proposed by the Senate. Funds above the budget request 
     include a transfer of $21,000,000 for the Charleston, South 
     Carolina, training facility. The conferees do not provide 
     $2,000,000, as requested, for the transfer of the CBP 
     Advanced Training Facility. At the department's request, the 
     conferees do not include $2,000,000 for the pay for 
     performance demonstration project.


     acquisition, construction, improvements, and related expenses

       The conferees agree to provide $44,917,000, instead of 
     $37,917,000 as proposed by the House and $42,917,000 as 
     proposed by the Senate. Funds above the budget request 
     include $5,000,000 for renovation and construction needs at 
     the Artesia, New Mexico, training center, as proposed by the 
     Senate, and $2,000,000 for renovation and construction needs 
     at the Charleston, South Carolina, training center.


                         facilities master plan

       An updated facilities Master Plan that identifies unfunded 
     training facilities construction and renovation needs has not 
     been submitted to the House and Senate Committees on 
     Appropriations. The conferees direct FLETC to submit an 
     updated Master Plan with the fiscal year 2006 budget request.

           Information Analysis and Infrastructure Protection

                     Management and Administration

       The conferees agree to provide $132,064,000 for management 
     and administration to support 803 full-time equivalent 
     positions as proposed by the House instead of $137,064,000 as 
     proposed by the Senate. This includes $5,864,000 for the 
     Office of the Under Secretary and $126,200,000 for other 
     salaries and expenses. Funding of $35,000,000 for the 
     Homeland Security Operations Center is funded under 
     Assessments and Evaluation as proposed by the House. Within 
     the amounts provided, not to exceed $5,000 is available for 
     official reception and representation expenses as proposed by 
     the House. The Senate proposed $20,000 in the Assessments and 
     Evaluations account.
       The conferees agree to provide $22,940,000 for protective 
     security field operations and expect that the deployment of 
     personnel will be executed in accordance with direction 
     provided in the House report.

                      Assessments and Evaluations

       The conferees agree to provide $761,644,000 instead of 
     $722,512,000 as proposed by the House and $718,512,000 as 
     proposed by the Senate. Funds are available until September 
     30, 2006. Funding is allocated as follows:


        Program                                                  Amount
Critical infrastructure outreach & partnerships............$106,592,000
Critical infrastructure identification and evaluation........77,861,000
National infrastructure simulation and analysis center (NISAC20,000,000
Protective actions..........................................191,647,000
Biosurveillance..............................................11,000,000
Cyber security...............................................67,380,000
National security emergency preparedness telecommunications.140,754,000
Competitive analysis and evaluation...........................4,000,000
Threat determination and assessment..........................21,943,000
Infrastructure vulnerability and risk assessment.............71,080,000
Evaluation and studies.......................................14,387,000
Homeland security operations center..........................35,000,000
                                                       ________________
                                                       
    Total, Assessments and Evaluations......................761,644,000

       The conferees have included up to $3,000,000 for the Under 
     Secretary of Information Analysis and Infrastructure 
     Protection (IAIP) to complete an analysis of whether the 
     Department should require private sector entities to provide 
     IAIP existing information about their security measures and 
     vulnerabilities in order to improve IAIP's ability to 
     evaluate critical infrastructure protections nationwide. The 
     analysis should include all

[[Page H9146]]

     critical infrastructure, including chemical plants, evaluate 
     the costs to the private sector for implementing such a 
     requirement, the benefits of securing the information, and 
     costs to IAIP to implement this requirement. The conferees 
     direct the Government Accountability Office to review the 
     quality of IAIP's analysis and report to the House and Senate 
     Committees on Appropriations within three months after the 
     analysis is complete.
       The conferees have included bill language requiring the 
     Under Secretary for IAIP to provide a quarterly report to the 
     House and Senate Committees on Appropriations on all sole-
     source contractual agreements. The report shall include a 
     listing of all sole-source contracts entered into, the 
     recipient, the purpose of the contract, and a detailed 
     explanation of why the competitive process was not followed. 
     The conferees direct that the first report be submitted by 
     November 15, 2004, and subsequent reports be submitted no 
     later than 30 days following the completion of each quarter 
     of the fiscal year.


           critical infrastructure outreach and partnerships

       The conferees agree to provide $106,592,000 instead of 
     $91,592,000 as proposed by the Senate and $71,592,000 as 
     proposed by the House.
       The conferees agree to provide $35,000,000 for computer 
     hosting of departmental applications, network connectivity, 
     and critical data storage under the direction of the 
     Department's Chief Information Officer.


         critical infrastructure identification and evaluation

       The conferees agree to provide $77,861,000 as proposed by 
     the House, instead of $64,730,000 as proposed by the Senate.


         national infrastructure simulation and analysis center

       The conferees agree to provide $20,000,000 instead of 
     $16,000,000 as proposed by the House and $23,105,000 as 
     proposed by the Senate.
       The conferees direct the Protective Security Division to 
     obligate funds previously made available by Public Law 108-7 
     for the NISAC at the earliest date possible.


                           Protective Actions

       The conferees agree to provide $191,647,000 as proposed by 
     the House instead of $193,673,000 as proposed by the Senate.


                        National Asset Database

       The conferees are aware that the National Asset Database 
     (NADB), an inventory of the nation's critical infrastructure 
     and key resources compiled from federal, state, local, and 
     private sector input, now includes information on 
     approximately 30,000 assets, some 2,000 of which are 
     considered of critical importance. Although IAIP continues to 
     populate and refine the NADB, the Protective Security 
     Division (PSD) has already begun completing Buffer Zone 
     Protection Plans (BZPPs) for the sites it contains. These 
     BZPPs are efforts to reduce vulnerabilities by extending the 
     protected area from the critical infrastructure site out into 
     the community. The conferees strongly support this 
     initiative, and direct PSD to complete BZPPs for all critical 
     assets in the NADB by the end of fiscal year 2005.


                         Rail Corridor Security

       The conferees are aware that security measures are being 
     implemented to improve the security of the Washington, DC, 
     rail corridor through the cooperative efforts of freight rail 
     operators, local law enforcement and first responders, and 
     the federal government with the objective of reducing the 
     risk of a terrorist attack on rail cars carrying hazardous 
     materials. The conferees direct PSD to use existing resources 
     within Protective Actions to begin applying this concept to 
     other major metropolitan areas.


           Development of Protocols, Policies and Procedures

       While the conferees are supportive of the efforts of IAIP 
     to implement protective measures using the funds provided 
     within Protective Actions, the conferees are concerned about 
     the lack of written protocols, policies, and procedures 
     governing the use of these funds. The conferees believe that 
     without such guidelines, there exists the potential for 
     duplication of effort between this account and other funding 
     sources, such as grant programs within the Office of State 
     and Local Government Coordination and Preparedness, as well 
     as the possibility that funds could be used in ways that 
     might not be consistent with the overall goals of the 
     Department's critical infrastructure protection efforts. In 
     addition to the funds provided in the Act, the conferees are 
     aware of unobligated balances that remain available for these 
     purposes from prior year appropriations. The conferees direct 
     IAIP to develop appropriate written guidelines for the use of 
     Protective Actions funds for buffer zone protection plans and 
     grants that preserve needed flexibility, while preventing 
     potential duplication or misapplication, and to provide a 
     report regarding this policy to the House and Senate 
     Committees on Appropriations no later than November 30, 2004.


                             Cyber Security

       The conferees agree to provide $67,380,000 as proposed by 
     both the House and the Senate. The conferees agree to include 
     $3,500,000 for ``live wire'' cyber exercises to build upon 
     previous similar terrorist attacks on the Nation's cyber 
     infrastructure to demonstrate the impact of a cyber-based 
     attack on critical infrastructures and to highlight the 
     interdependencies among critical infrastructures and 
     underscore the requirement for enhanced cross-sector 
     cooperation.
       The conferees support the National Cyber Security 
     Division's (NCSD) efforts to monitor, predict, and prevent 
     cyber attacks, and to minimize the damage and efficiently 
     recover from attacks. The conferees encourage the NCSD to 
     identify, assess, and implement preventative measures with 
     organizations providing public health needs.


                  Competitive Analysis and Evaluation

       The conferees agree to provide $4,000,000 instead of 
     $3,868,000 as proposed by the House and $18,868,000 as 
     proposed by the Senate.


                  Homeland Security Operations Center

       The conferees agree to provide $35,000,000 as proposed by 
     the House. Funding of $35,000,000 for the Homeland Security 
     Operations Center was proposed by the Senate under the 
     Management and Administration account.


                            National Alerts

       The conferees support the Department's use of the National 
     Oceanic and Atmospheric Administration (NOAA) all-hazards 
     weather radio system as the foundation for the Homeland 
     Security Advisory System and provide $10,000,000 for fiscal 
     year 2005, the same amount provided in fiscal year 2004. 
     These funds are for the distribution of NOAA radios to 
     schools throughout the country on a priority basis and for 
     satellite, digital broadcast, and other advanced technologies 
     to disseminate vital warning information to ensure that the 
     general public can more effectively be warned about terrorist 
     threats and other emergencies. For fiscal year 2004 and 
     fiscal year 2005 funds, the conferees expect the 
     Department to adhere to Section 102(b)(2) of Public Law 
     107-296 in purchasing and distributing the NOAA radios to 
     schools as deemed appropriate by the Secretary.
       The conferees direct the Secretary to work with the 
     Chairman of the Federal Communications Commission to develop 
     a legislative solution for a universal system for 
     broadcasting national alerts. This will alleviate the need 
     for separate negotiations between the Department and radio 
     broadcasters, television broadcasters, and other 
     telecommunications providers.

                      Science and Technology (S&T)

                     Management and Administration

       The conferees agree to provide $68,586,000 for management 
     and administration to include 320 full-time equivalent 
     positions as proposed by the House, instead of $42,550,000 as 
     proposed by the Senate. Within the amounts provided, not to 
     exceed $3,000 is available for official reception and 
     representation expenses. The funding includes $6,315,000 for 
     the immediate Office of the Under Secretary and $62,271,000 
     for other salaries and expenses. The conferees consolidate 
     all salary expenses in one account and the recommendation 
     reflects the salaries and expenses for laboratory facilities, 
     including the National Biodefense Analysis and 
     Countermeasures Center (NBACC), the Plum Island Animal 
     Disease Center and the Environmental Measurements Laboratory 
     previously funded under S&T's program account.
       The conferees are concerned about the substantial lack of 
     communication within the management of S&T, which has 
     resulted in misinformation being provided to Congress. The 
     conferees strongly encourage S&T to review their management 
     practices to improve upon internal communications. The 
     conferees believe S&T should move expeditiously to develop a 
     policy regarding the use of national laboratories, and direct 
     S&T to report to the House and Senate Committees on 
     Appropriations on this policy no later than October 15, 2004.

           Research, Development, Acquisition, and Operations

       The conferees agree to provide $1,046,864,000 instead of 
     $1,063,713,000 as proposed by the House and $1,016,647,000 as 
     proposed by the Senate. Funds are allocated as follows:
                                                                 Amount
Biological countermeasures.................................$362,650,000
Nuclear and radiological countermeasures....................122,614,000
Chemical countermeasures.....................................53,000,000
High explosives countermeasures..............................19,700,000
Threat and vulnerability, testing and assessment.............65,800,000
Critical infrastructure protection...........................27,000,000
Conventional missions in support of DHS......................54,650,000
    (total includes transfers from consolidated transferred accounts)..
Rapid prototyping program....................................76,000,000
Standards....................................................39,700,000
Emerging threats.............................................10,750,000
University programs/Homeland security fellowship programs....70,000,000
Consolidated transferred accounts......................................
National Biodefense Analysis & Countermeasures Center........35,000,000
Counter MANPADS..............................................61,000,000
SAFETY Act...................................................10,000,000
Cyber Security...............................................18,000,000
Interoperability and communications..........................21,000,000
                                                       ________________
                                                       
    Total, Research, development, acquisition, and operat$1,046,864,000


                       Biological Countermeasures

       The conferees agree to provide $362,650,000 as proposed by 
     the House instead of

[[Page H9147]]

     $346,310,000 as proposed by the Senate. This funding level 
     supports the budget request for the individual programs 
     within biological countermeasures with the following 
     exceptions: $9,350,000 is transferred to management and 
     administration for salaries and expenses; and $35,000,000 for 
     the NBACC is funded as a separate program.


                Nuclear and Radiological Countermeasures

       The conferees agree to provide $122,614,000 as proposed by 
     the House instead of $127,810,000 as proposed by the Senate; 
     $6,686,000 is transferred to management and administration 
     for salaries and expenses.


                        chemical countermeasures

       The conferees agree to provide $53,000,000 as proposed by 
     the House instead of $52,400,000 as proposed by the Senate.


                     high explosive countermeasures

       The conferees agree to provide $19,700,000 instead of 
     $9,700,000 as proposed by the House and $33,590,000 as 
     proposed by the Senate. The conferees include $10,000,000 to 
     develop and conduct simulated real-world exercises to 
     validate a training program for the use of commercially-
     available equipment against suicide bombers in commuter and 
     passenger rail environments.


            threat and vulnerability, testing and assessment

       The conferees agree to provide $65,800,000 instead of 
     $68,900,000 as proposed by the House and $68,100,000 as 
     proposed by the Senate.


                   critical infrastructure protection

       The conferees agree to provide $27,000,000 as proposed by 
     the House, instead of $14,830,000 as proposed by the Senate. 
     The conferees provide $12,000,000 to support existing work in 
     research and development and application of technology for 
     community based critical infrastructure protection efforts.


                conventional missions in support of DHS

       The conferees agree to provide $54,650,000 instead of 
     $44,000,000 as proposed by the House and $34,000,000 as 
     proposed by the Senate. The conferees agree to merge this 
     account with the consolidated transferred accounts, as 
     proposed by the Senate. Additionally, the conferees provide 
     $10,000,000 to support the container security initiative, to 
     accelerate the development of advanced sensors, and begin 
     development of the Advanced Container Information Network in 
     a joint U.S., international, and industry effort, as proposed 
     by the House. The conference agreement includes $10,650,000 
     transferred from the consolidated transferred accounts as 
     proposed by the Senate, instead of $24,150,000 as proposed by 
     the House in a separate account. Funding is allocated as 
     follows:

                                                                 Amount
Emergency Preparedness and Response..........................$9,650,000
Border Transportation and Security...........................23,000,000
Secret Service................................................2,000,000
Federal Air Marshals.........................................10,000,000
Container security initiative................................10,000,000
                                                       ________________
                                                       
    Total, Conventional Missions.............................54,650,000


                           rapid prototyping

       The conferees agree to provide $76,000,000 as proposed by 
     the House instead of $75,120,000 as proposed by the Senate.


                               standards

       The conferees agree to provide $39,700,000 instead of 
     $39,699,000 as proposed by the House and $39,239,000 as 
     proposed by the Senate.


                            emerging threats

       The conferees agree to provide $10,750,000 as proposed by 
     the Senate instead of $21,000,000 as proposed by the House.


                university programs/fellowship programs

       The conferees agree to provide $70,000,000 as proposed by 
     the House instead of $69,048,000 as proposed by the Senate.


                   consolidated transferred accounts

       The conferees include no funding for consolidated 
     transferred accounts. For these activities, $10,650,000 is 
     provided under conventional missions in support of the 
     Department as proposed by the Senate instead of $24,150,000 
     as proposed by the House in a stand-alone account. The 
     conferees agree to fund Coast Guard research, development, 
     test, and evaluation under Coast Guard as proposed by the 
     Senate instead of within S&T as proposed by the House.


                       SAFETY act implementation

       The conferees support the language in the House report that 
     establishes an office to implement the requirements of the 
     ``Support Anti-terrorism by Fostering Effective Technologies 
     Act of 2002'', (SAFETY Act), and directs S&T to streamline 
     the application process and expedite approvals. The conferees 
     further direct the SAFETY Act Implementation Office to 
     provide a written report no later than January 1, 2005, to 
     the House and Senate Committees on Appropriations that 
     describes the process and procedure for prioritizing and 
     reviewing SAFETY Act applications.


                  interoperability and communications

       The conferees agree to provide $21,000,000 as proposed by 
     the House, instead of $11,000,000 as proposed by the Senate.

                      TITLE V--GENERAL PROVISIONS

       Section 501. The conferees continue a provision that no 
     part of any appropriation shall remain available for 
     obligation beyond the current fiscal year unless expressly 
     provided.
       Section 502. The conferees continue a provision that 
     unexpended balances of prior appropriations may be merged 
     with new appropriations accounts and used for the same 
     purpose, subject to reprogramming guidelines.
       Section 503. The conferees continue and modify a provision 
     that provides authority to reprogram appropriations within an 
     account and to transfer not to exceed 5 percent between 
     appropriations accounts with 15-day advance notification of 
     the House and Senate Committees on Appropriations. A detailed 
     funding table identifying each Congressional control level 
     for reprogramming purposes is included at the end of this 
     Report. These reprogramming guidelines shall be complied with 
     by all agencies funded by the Department of Homeland Security 
     Appropriations Act, 2005.
       The conferees expect the Department to submit reprogramming 
     requests on a timely basis, and to provide complete 
     explanations of the reallocations proposed, including 
     detailed justifications of the increases and offsets, and any 
     specific impact the proposed changes will have on the budget 
     request for the following fiscal year and future-year 
     appropriations requirements. Each request submitted to the 
     House and Senate Committees should include a detailed table 
     showing the proposed revisions at the account, program, 
     project, and activity level to the funding and staffing 
     (full-time equivalent position) levels for the current fiscal 
     year and to the levels requested in the President's budget 
     for the following fiscal year.
       The conferees expect the Department to manage its programs 
     and activities within the levels appropriated. The conferees 
     are concerned with the number of reprogramming proposals 
     submitted for consideration by the Department and remind the 
     Department that reprogramming or transfer requests should be 
     submitted only in the case of an unforeseeable emergency, or 
     a situation that could not have been predicted when 
     formulating the budget request for the current fiscal year. 
     Further, the conferees note that when the Department submits 
     a reprogramming or transfer request to the Committees on 
     Appropriations and does not receive identical responses from 
     the House and Senate, it is the responsibility of the 
     Department to reconcile the House and Senate differences 
     before proceeding, and if reconciliation is not possible, to 
     consider the reprogramming or transfer request unapproved.
       The conferees would also like to clarify that this section 
     applies to the Department's Working Capital Fund and that no 
     funds may be obligated from the Working Capital Fund to fund 
     programs, projects, or activities for which appropriations 
     have been specifically rejected by the Congress, to initiate 
     new programs or activities, or to augment the funds or 
     personnel for any program, project, or activity above the 
     levels appropriated by this Act.
       The Department is not to propose a reprogramming or 
     transfer of funds after June 30th unless there are 
     exceptional or extraordinary circumstances such that lives or 
     property are placed in imminent danger.
       Section 504. The conferees continue a provision that not to 
     exceed 50 percent of unobligated balances remaining at the 
     end of fiscal year 2005 from appropriations made for salaries 
     and expenses shall remain available through fiscal year 2006 
     subject to reprogramming guidelines.
       Section 505. The conferees continue a provision that 
     provides that funds for intelligence activities are deemed to 
     be specifically authorized during fiscal year 2005 until the 
     enactment of an Act authorizing intelligence activities for 
     fiscal year 2005.
       Section 506. The conferees continue a provision that 
     directs FLETC to establish an accrediting body to establish 
     standards for assessing federal law enforcement training 
     programs, facilities, and instructors.
       Section 507. The conferees continue and modify a provision 
     that requires notification of the House and Senate Committees 
     on Appropriations 3 business days before any grant 
     allocation, discretionary grant award, discretionary contract 
     award, or letter of intent totaling $1,000,000 or more is 
     announced by the Department.
       Section 508. The conferees modify and continue a provision 
     that no agency shall purchase, construct, or lease additional 
     facilities for federal law enforcement training without 
     advance approval of the House and Senate Committees on 
     Appropriations.
       Section 509. The conferees modify and continue a provision 
     that FLETC shall schedule basic and/or advanced law 
     enforcement training at all four training facilities under 
     its control to ensure that these training centers are 
     operated at the highest capacity.
       Section 510. The conferees continue a provision that none 
     of the funds may be used for any construction, repair, 
     alteration, or acquisition project for which a prospectus, if 
     required by the Public Buildings Act of 1959, has not been 
     approved.
       Section 511. The conferees continue and make permanent a 
     provision that none of the funds maybe used to require 
     airport sponsors to provide building modifications, utilities 
     and expenses, or space to the TSA without cost for services 
     related to aviation security.
       Section 512. The conferees continue a provision that none 
     of the funds may be used in contravention of the Buy American 
     Act.

[[Page H9148]]

       Section 513. The conferees continue and modify a provision 
     that directs the Department to research, develop, and procure 
     certified systems to inspect and screen air cargo on 
     passenger aircraft at the earliest date possible, to enhance 
     the known shipper program, and to triple the percentage of 
     cargo inspected on passenger aircraft. TSA shall require 
     cargo screened on passenger aircraft to meet the tripling 
     threshold as measured by the average percentage of cargo 
     inspected per day, per airline, per airport. The current 
     minimum per flight shall also be maintained.
       Section 514. The conferees include a new provision that 
     directs the Commandant of the Coast Guard to provide to 
     Congress a list of approved but unfunded priorities each year 
     at the time that the President's budget is submitted, as 
     proposed by the House.
       Section 515. The conferees include a new provision that 
     amends title 49 of the United States Code to provide for the 
     disposition of unclaimed money recovered at airport security 
     checkpoints, as proposed by the House.
       Section 516. The conferees include a new provision that 
     allows TSA to impose a reasonable charge for the lease of 
     real and personal property to TSA employees, as proposed by 
     the House.
       Section 517. The conferees include a new provision that 
     directs that the acquisition management system of TSA be 
     applied to the acquisition of services, equipment, supplies, 
     and materials, as proposed by the House.
       Section 518. The conferees include a new provision related 
     to the transfer of the authority to conduct background 
     investigations from the Office of Personnel Management to the 
     Department, as proposed by the House and modified by the 
     conferees. The conferees are concerned by delays in personnel 
     security and suitability background investigations, update 
     investigations and periodic reinvestigations for Departmental 
     employees and, in particular for positions within the Office 
     of the Secretary and Executive Management and the 
     Directorates of Science and Technology and Information 
     Analysis and Infrastructure Protection. The conferees direct 
     that this authority be used to expeditiously process 
     background investigations, including updates and 
     reinvestigations, as necessary.
       Section 519. The conferees include a new provision that 
     amends the Homeland Security Act to provide for the 
     termination of the Homeland Security Institute 5 years after 
     its establishment, as proposed by the House.
       Section 520. The conferees include a new provision that 
     amends the Homeland Security Act so that of the original 
     members of the Advisory Committee, one class of six shall 
     have a term of 1 year, one class of seven a term of 2 years, 
     and one class of seven a term of 3 years, as proposed by the 
     House.
       Section 521. The conferees include a new provision that 
     exempts funds appropriated under paragraphs (1) and (2) of 
     the State and Local Programs heading under Title III of this 
     Act from the provisions of the Cash Management Improvement 
     Act, as proposed by the House.
       Section 522. The conferees continue and modify a provision 
     that prohibits the use of funds for deployment or 
     implementation of CAPPS II, Secure Flight, or other follow 
     on/successor programs until certain conditions are met.
       Section 523. The conferees include a new provision that 
     amends the Homeland Security Act to clarify the provision on 
     contracting with foreign entities, as proposed by the House 
     and Senate.
       Section 524. The conferees include a new provision that 
     directs that none of the funds may be used to amend the oath 
     of allegiance required by section 337 of the Immigration and 
     Nationality Act (8 U.S.C. 1448), as proposed by the House and 
     the Senate.
       Section 525. The conferees include a new provision setting 
     the fiscal year 2004 overtime limitation at $30,000 for 
     Customs and Border Protection (CBP), as proposed by the 
     Senate. The conferees modify the Senate language to eliminate 
     reductions to CBP's salaries and expenses appropriation.
       Section 526. The conferees include a new provision 
     regarding notifications.
       Section 527. The conferees include a new provision 
     regarding competitive sourcing, as proposed by the House. The 
     Senate bill contained a similar provision.
       Section 528. The conferees include a new provision that 
     none of the funds may be used to alter the Secret Service 
     from being anything but a distinct entity within the 
     Department, to merge the Secret Service with any other agency 
     or department function, or to alter the current reporting 
     structure of the Secret Service, as proposed by the Senate.

                         Provisions Not Adopted

       The conference agreement deletes section 514 of the House 
     bill amending the Homeland Security Act to establish a Chief 
     Procurement Officer within the Department and to modify the 
     reporting structure for the Chief Financial Officer and the 
     Chief Information Officer.
       The conference agreement deletes section 525 of the House 
     bill making an unspecified reduction of $50,000,000 to the 
     Office of the Under Secretary for Management, and increasing 
     firefighter assistance grants under Title III of this Act by 
     the same amount.
       The conference agreement deletes Section 513 of the Senate 
     bill prohibiting the use of funds for contracting out full 
     time employee equivalent positions for which funds have been 
     appropriated unless the House and Senate Committees on 
     Appropriations are notified 15 days in advance. This 
     provision is addressed in the statement of managers.
       The conference agreement deletes Section 515 of the Senate 
     bill prohibiting the use of funds to process or approve a 
     competition under Office of Management and Budget Circular A-
     76 for services provided as of June 1, 2004, by certain 
     employees of the Bureau of Citizenship and Immigration 
     Services. This issue is addressed in Section 527.
       The conference agreement deletes section 517 of the Senate 
     bill directing FEMA to investigate the Shockoe Creek drain 
     field in Richmond, VA, to determine means of preventing 
     future damage from floods and other natural disasters. This 
     requirement is addressed in the statement of managers.
       The conference agreement deletes section 518 of the Senate 
     bill providing an additional $200,000,000 for new ICE Air and 
     Marine airbases, $50,000,000 for Federal Air Marshals, 
     $50,000,000 for non-profit organization assistance through 
     SLGCP, $50,000,000 for firefighter assistance grants, 
     $20,000,000 for Emergency Management and Performance Grants 
     (EMPGs), and extending Customs user fees until June 1, 2005.
       The conference agreement deletes section 519 of the Senate 
     bill providing an additional $150,000,000 for CBP salaries 
     and expenses, $100,000,000 for ICE salaries and expenses, 
     $128,000,000 for rail and transit security grants, 
     $36,000,000 for EMPGs, and extending Customs user fees until 
     September 30, 2005.
       The conference agreement deletes section 520 of the Senate 
     bill providing $5,000,000 out of the funds provided for Air 
     and Marine Interdiction, Operations, Maintenance, and 
     Procurement for a pilot project to test interoperable 
     communications between the Northern Border Air Wing in 
     Bellingham, WA and local law enforcement. This requirement is 
     addressed in the statement of managers.
       The conference agreement deletes section 521 of the Senate 
     bill requiring the development of an integrated 
     transportation security plan no later than February 1, 2005. 
     This requirement is addressed in the statement of managers.
       The conference agreement deletes section 522 of the Senate 
     bill requiring a report on goods purchased by the Department 
     that were manufactured outside the U.S. This requirement is 
     addressed in the statement of managers.
       The conference agreement deletes section 524 of the Senate 
     bill providing for the continued support of the New Mexico 
     National Guard for the performance of vehicle and cargo 
     inspection activities to support law enforcement activities. 
     This requirement is addressed in the statement of managers.
       The conference agreement deletes section 525 of the Senate 
     bill requiring a report on HSPD-7 regarding the mapping of 
     the U.S. critical infrastructure, assessment of state and 
     local resources, and the Department's plan for geospatial 
     information systems management, and further requiring 
     reporting on the Chief Information Officer's implementation 
     of geospatial capability. This requirement is addressed in 
     the statement of managers.
       The conference agreement deletes section 527 of the Senate 
     bill requiring status reports on the number of active Federal 
     Air Marshals every 90 days. This requirement is addressed in 
     the statement of managers.
       The conference agreement deletes section 528 of the Senate 
     bill requiring a report not later than 180 days after 
     enactment on the personnel policies of the Department that 
     apply to the employment of airport screeners in TSA with 
     particular emphasis on compliance with equal opportunity and 
     veterans preference laws. This requirement is addressed in 
     the statement of managers.
       The conference agreement deletes section 529 of the Senate 
     bill directing that none of the funds may be used for 
     implementation of any policy or practice that reveals the 
     identity of a Federal Air Marshal. This requirement is 
     addressed in the statement of managers.
       The conference agreement deletes section 530 of the Senate 
     bill requiring a report from the secretary on protecting 
     commercial aircraft from MANPADS. This requirement is 
     addressed in the statement of managers.
       The conference agreement deletes section 532 of the Senate 
     bill requiring the submittal of data-mining reports from the 
     head of each agency or relevant privacy officer 90 days after 
     the end of fiscal year 2005. This requirement is addressed in 
     the statement of managers.
       The conference agreement deletes section 533 of the Senate 
     bill directing FEMA to provide $4,450,000 from within funds 
     currently available to mental health counseling entities. 
     This requirement is addressed in the statement of managers.
       The conference agreement deletes section 534 of the Senate 
     bill reflecting the sense of the Senate that the Information 
     Analysis and Infrastructure Protection Directorate should 
     work with the American Red Cross. This requirement is 
     addressed in the statement of managers.
       The conference agreement deletes section 535 of the Senate 
     bill reflecting the sense of the Senate that the Director of 
     SLGCP be authorized to reprogram State grant funds to address 
     specific security requirements that arise after the State has 
     submitted its application. This requirement is addressed in 
     the statement of managers.
       The conference agreement deletes section 536 of the Senate 
     bill directing FEMA to periodically report on the 
     representation of

[[Page H9149]]

     American Indians, Alaska Natives, and Native Hawaiians in the 
     Disaster Assistance Employee cadres. This requirement is 
     addressed in the statement of managers.
       The conference agreement deletes section 537 of the Senate 
     bill amending the Homeland Security Act to allow the Chief 
     Financial Officer and the Chief Information Officer to report 
     directly to the Secretary by striking dual report language.
       The conference agreement deletes section 538 of the Senate 
     bill amending P.L. 108-137.
       The conference agreement deletes section 539 of the Senate 
     bill authorizing the Secretary of Agriculture to deploy 
     disaster liaisons to Department of Agriculture Service 
     Centers in a federally declared disaster area whenever FEMA 
     personnel are deployed in that area.

                       CONFERENCE RECOMMENDATIONS

       The conference agreement's detailed funding recommendations 
     for programs in this bill are contained in the following 
     table:

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[[Page H9162]]

                   Conference Total--With Comparisons

       The total new budget (obligational) authority for the 
     fiscal year 2005 recommended by the Committee of Conference, 
     with comparisons to the fiscal year 2004 amount, the 2005 
     budget estimates, and the House and Senate bills for 2005 
     follow:

                       [In thousands of dollars]

New budget (obligational) authority, fiscal year 2004.......$37,048,446
Budget estimates of new (obligational) authority, fiscal year32,189,925
House bill, fiscal year 2005.................................33,085,401
Senate bill, fiscal year 2005................................36,128,460
Conference agreement, fiscal year 2005.......................33,085,460
Conference agreement compared with:
  New budget (obligational) authority, fiscal year 2004......-3,962,986
  Budget estimates of new (obligational) authority, fiscal year+895,535
  House bill, fiscal year 2005......................................+59
  Senate bill, fiscal year 2005..............................-3,043,000

     Harold Rogers,
     Bill Young,
     Frank R. Wolf,
     Zach Wamp,
     Tom Latham,
     Jo Ann Emerson,
     Kay Granger,
     John E. Sweeney,
     Don Sherwood,
                                Managers on the Part of the House.

     Thad Cochran,
     Ted Stevens,
     Arlen Specter,
     Pete V. Domenici,
     Mitch McConnell,
     Richard Shelby,
     Judd Gregg,
     Ben Nighthorse Campbell,
     Larry Craig,
     Managers on the Part of the Senate.

                          ____________________