[Congressional Record (Bound Edition), Volume 147 (2001), Part 18]
[House]
[Pages 25178-25602]
[From the U.S. Government Publishing Office, www.gpo.gov]



 CONFERENCE REPORT ON S. 1438, NATIONAL DEFENSE AUTHORIZATION ACT FOR 
                            FISCAL YEAR 2002

  Mr. STUMP (during the Special Order of Mr. Pallone) submitted the 
following conference report and statement on the Senate bill (S. 1438) 
to authorize appropriations for fiscal year 2002 for military 
activities of the Department of Defense, for military construction, and 
for the defense activities of the Department of Energy, to prescribe 
personnel strengths for such fiscal year for the Armed Forces, and for 
other purposes:

                  Conference Report (H. Rept. 107-333)

       The committee of conference on the disagreeing votes of the 
     two Houses on the amendment of the House to the bill (S. 
     1438), to authorize appropriations for fiscal year 2002 for 
     military activities of the Department of Defense, for 
     military construction, and for defense activities of the 
     Department of Energy, to prescribe personnel strengths for 
     such fiscal year for the Armed Forces, and for other 
     purposes, having met, after full and free conference, have 
     agreed to recommend and do recommend to their respective 
     Houses as follows:
       That the Senate recede from its disagreement to the 
     amendment of the House and agree to the same with an 
     amendment as follows:
       In lieu of the matter proposed to be inserted by the House 
     amendment, insert the following:

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``National Defense 
     Authorization Act forFiscal Year 2002''.

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

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

Sec. 1. Short title.
Sec. 2. Organization of Act into divisions; table of contents.
Sec. 3. Congressional defense committees defined.

            DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATIONS

                          TITLE I--PROCUREMENT

              Subtitle A--Authorization of Appropriations

Sec. 101. Army.
Sec. 102. Navy and Marine Corps.
Sec. 103. Air Force.
Sec. 104. Defense-wide activities.
Sec. 105. Defense Inspector General.
Sec. 106. Chemical Agents and Munitions Destruction, Defense.
Sec. 107. Defense Health Program.

                       Subtitle B--Army Programs

Sec. 111. Repeal of limitations on bunker defeat munitions program.
Sec. 112. Extension of pilot program on sales of manufactured articles 
              and services of certain Army industrial facilities 
              without regard to availability from domestic sources.
Sec. 113. Limitations on acquisition of interim armored vehicles and 
              deployment of interim brigade combat teams.

                       Subtitle C--Navy Programs

Sec. 121. Virginia class submarine program.
Sec. 122. Multiyear procurement authority for F/A-18E/F aircraft 
              engines.
Sec. 123. V-22 Osprey aircraft program.

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Sec. 124. Report on status of V-22 Osprey aircraft before resumption of 
              flight testing.

                     Subtitle D--Air Force Programs

Sec. 131. Multiyear procurement authority for C-17 aircraft.

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

              Subtitle A--Authorization of Appropriations

Sec. 201. Authorization of appropriations.
Sec. 202. Amount for basic and applied research.
Sec. 203. Supplemental authorization of appropriations for fiscal year 
              2001 for research, development, test, and evaluation, 
              Defense-wide.

    Subtitle B--Program Requirements, Restrictions, and Limitations

Sec. 211. Naval surface fire support assessment.
Sec. 212. Collaborative program for development of advanced radar 
              systems.
Sec. 213. Repeal of limitations on total cost of engineering and 
              manufacturing development for F-22 aircraft program.
Sec. 214. Joint biological defense program.
Sec. 215. Cooperative Department of Defense-Department of Veterans 
              Affairs medical research program.
Sec. 216. C-5 aircraft reliability enhancement and reengining program.

                 Subtitle C--Ballistic Missile Defense

Sec. 231. Transfer of responsibility for procurement for missile 
              defense programs from Ballistic Missile Defense 
              Organization to military departments.
Sec. 232. Program elements for Ballistic Missile Defense Organization.
Sec. 233. Support of ballistic missile defense activities of the 
              Department of Defense by the national defense 
              laboratories of the Department of Energy.
Sec. 234. Missile defense testing initiative.
Sec. 235. Construction of test bed facilities for missile defense 
              system.

   Subtitle D--Air Force Science and Technology for the 21st Century

Sec. 251. Short title.
Sec. 252. Science and technology investment and development planning.
Sec. 253. Study and report on effectiveness of Air Force science and 
              technology program changes.

                       Subtitle E--Other Matters

Sec. 261. Establishment of unmanned aerial vehicle joint operational 
              test bed system.
Sec. 262. Demonstration project to increase small business and 
              university participation in Office of Naval Research 
              efforts to extend benefits of science and technology 
              research to fleet.
Sec. 263. Communication of safety concerns from operational test and 
              evaluation officials to program managers.

                  TITLE III--OPERATION AND MAINTENANCE

              Subtitle A--Authorization of Appropriations

Sec. 301. Operation and maintenance funding.
Sec. 302. Working capital funds.
Sec. 303. Armed Forces Retirement Home.
Sec. 304. Transfer from National Defense Stockpile Transaction Fund.
Sec. 305. Funds for renovation of Department of Veterans Affairs 
              facilities adjacent to Naval Training Center, Great 
              Lakes, Illinois.
Sec. 306. Defense Language Institute Foreign Language Center expanded 
              Arabic language program.

                  Subtitle B--Environmental Provisions

Sec. 311. Inventory of unexploded ordnance, discarded military 
              munitions, and munitions constituents at defense sites 
              (other than operational ranges).
Sec. 312. Establishment of new program element for remediation of 
              unexploded ordnance, discarded military munitions, and 
              munitions constituents.
Sec. 313. Assessment of environmental remediation of unexploded 
              ordnance, discarded military munitions, and munitions 
              constituents.
Sec. 314. Conformity of surety authority under environmental 
              restoration program with surety authority under CERCLA.
Sec. 315. Elimination of annual report on contractor reimbursement for 
              costs of environmental response actions.
Sec. 316. Pilot program for sale of air pollution emission reduction 
              incentives.
Sec. 317. Department of Defense energy efficiency program.
Sec. 318. Procurement of alternative fueled and hybrid light duty 
              trucks.
Sec. 319. Reimbursement of Environmental Protection Agency for certain 
              response costs in connection with Hooper Sands Site, 
              South Berwick, Maine.
Sec. 320. River mitigation studies.

  Subtitle C--Commissaries and Nonappropriated Fund Instrumentalities

Sec. 331. Commissary benefits for new members of the Ready Reserve.
Sec. 332. Reimbursement for use of commissary facilities by military 
              departments for purposes other than commissary sales.
Sec. 333. Public releases of commercially valuable information of 
              commissary stores.
Sec. 334. Rebate agreements with producers of foods provided under 
              special supplemental food program.
Sec. 335. Civil recovery for nonappropriated fund instrumentality costs 
              related to shoplifting.

                 Subtitle D--Workforce and Depot Issues

Sec. 341. Revision of authority to waive limitation on performance of 
              depot-level maintenance.
Sec. 342. Exclusion of certain expenditures from limitation on private 
              sector performance of depot-level maintenance.
Sec. 343. Protections for purchasers of articles and services 
              manufactured or performed by working-capital funded 
              industrial facilities of the Department of Defense.
Sec. 344. Revision of deadline for annual report on commercial and 
              industrial activities.
Sec. 345. Pilot manpower reporting system in Department of the Army.
Sec. 346. Development of Army workload and performance system and 
              Wholesale Logistics Modernization Program.

                Subtitle E--Defense Dependents Education

Sec. 351. Assistance to local educational agencies that benefit 
              dependents of members of the Armed Forces and Department 
              of Defense civilian employees.
Sec. 352. Impact aid for children with severe disabilities.
Sec. 353. Availability of auxiliary services of defense dependents' 
              education system for dependents who are home school 
              students.
Sec. 354. Comptroller General study of adequacy of compensation 
              provided for teachers in the Department of Defense 
              overseas dependents' schools.

                       Subtitle F--Other Matters

Sec. 361. Availability of excess defense personal property to support 
              Department of Veterans Affairs initiative to assist 
              homeless veterans.
Sec. 362. Incremental implementation of Navy-Marine Corps Intranet 
              contract.
Sec. 363. Comptroller General study and report of National Guard 
              Distributive Training Technology Project.
Sec. 364. Reauthorization of warranty claims recovery pilot program.
Sec. 365. Evaluation of current demonstration programs to improve 
              quality of personal property shipments of members.
Sec. 366. Sense of Congress regarding security to be provided at 2002 
              Winter Olympic Games.

              TITLE IV--MILITARY PERSONNEL AUTHORIZATIONS

                       Subtitle A--Active Forces

Sec. 401. End strengths for active forces.
Sec. 402. Revision in permanent end strength minimum levels.
Sec. 403. Increase in senior enlisted active duty grade limit for Navy, 
              Marine Corps, and Air Force.

                       Subtitle B--Reserve Forces

Sec. 411. End strengths for Selected Reserve.
Sec. 412. End strengths for Reserves on active duty in support of the 
              reserves.
Sec. 413. End strengths for military technicians (dual status).
Sec. 414. Fiscal year 2002 limitation on non-dual status technicians.
Sec. 415. Limitations on numbers of reserve personnel serving on active 
              duty or full-time National Guard duty in certain grades 
              for administration of reserve components.

       Subtitle C--Other Matters Relating to Personnel Strengths

Sec. 421. Administration of end strengths.
Sec. 422. Active duty end strength exemption for National Guard and 
              reserve personnel performing funeral honors functions.

              Subtitle D--Authorization of Appropriations

Sec. 431. Authorization of appropriations for military personnel.

                   TITLE V--MILITARY PERSONNEL POLICY

                  Subtitle A--Officer Personnel Policy

Sec. 501. Enhanced flexibility for management of senior general and 
              flag officer positions.
Sec. 502. Certifications of satisfactory performance for retirement of 
              officers in grades above major general and rear admiral.
Sec. 503. Review of actions of selection boards.
Sec. 504. Temporary reduction of time-in-grade requirement for 
              eligibility for promotion for certain active-duty list 
              officers in grades of first lieutenant and lieutenant 
              (junior grade).
Sec. 505. Authority for promotion without selection board consideration 
              for all fully qualified officers in grade of first 
              lieutenant or lieutenant (junior grade) in the Navy.

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Sec. 506. Authority to adjust date of rank of certain promotions 
              delayed by reason of unusual circumstances.
Sec. 507. Authority for limited extension of medical deferment of 
              mandatory retirement or separation.
Sec. 508. Authority for limited extension on active duty of members 
              subject to mandatory retirement or separation.
Sec. 509. Exemption from certain administrative limitations for retired 
              officers ordered to active duty as defense or service 
              attaches.
Sec. 510. Officer in charge of United States Navy Band.

             Subtitle B--Reserve Component Personnel Policy

Sec. 511. Placement on active-duty list of certain Reserve officers on 
              active duty for a period of three years or less.
Sec. 512. Exception to baccalaureate degree requirement for appointment 
              of Reserve officers to grades above first lieutenant.
Sec. 513. Improved disability benefits for certain reserve component 
              members.
Sec. 514. Time-in-grade requirement for reserve component officers 
              retired with a nonservice-connected disability.
Sec. 515. Equal treatment of Reserves and full-time active duty members 
              for purposes of managing personnel deployments.
Sec. 516. Modification of physical examination requirements for members 
              of the Individual Ready Reserve.
Sec. 517. Retirement of Reserve members without requirement for formal 
              application or request.
Sec. 518. Space-required travel by Reserves on military aircraft.
Sec. 519. Payment of Federal Employee Health Benefit Program premiums 
              for certain Reservists called to active duty in support 
              of contingency operations.

 Subtitle C--Joint Specialty Officers and Joint Professional Military 
                               Education

Sec. 521. Nominations and promotions for joint specialty officers.
Sec. 522. Joint duty credit.
Sec. 523. Retroactive joint service credit for duty in certain joint 
              task forces.
Sec. 524. Revision to annual report on joint officer management.
Sec. 525. Requirement for selection for joint specialty before 
              promotion to general or flag officer grade.
Sec. 526. Independent study of joint officer management and joint 
              professional military education reforms.
Sec. 527. Professional development education.
Sec. 528. Authority for National Defense University to enroll certain 
              private sector civilians.
Sec. 529. Continuation of reserve component professional military 
              education test.

              Subtitle D--Military Education and Training

Sec. 531. Defense Language Institute Foreign Language Center.
Sec. 532. Authority for the Marine Corps University to award degree of 
              master of strategic studies.
Sec. 533. Foreign students attending the service academies.
Sec. 534. Increase in maximum age for appointment as a cadet or 
              midshipman in Senior Reserve Officers' Training Corps 
              scholarship programs.
Sec. 535. Participation of regular enlisted members of the Armed Forces 
              in Senior Reserve Officers' Training Corps program.
Sec. 536. Authority to modify the service obligation of certain ROTC 
              cadets in military junior colleges receiving financial 
              assistance.
Sec. 537. Repeal of limitation on number of Junior Reserve Officers' 
              Training Corps units.
Sec. 538. Modification of nurse officer candidate accession program 
              restriction on students attending educational 
              institutions with senior reserve officers' training 
              programs.
Sec. 539. Reserve health professionals stipend program expansion.
Sec. 540. Housing allowance for the chaplain for the Corps of Cadets at 
              the United States Military Academy.

             Subtitle E--Recruiting and Accession Programs

Sec. 541. 18-month enlistment pilot program.
Sec. 542. Improved benefits under the Army College First program.
Sec. 543. Correction and extension of certain Army recruiting pilot 
              program authorities.
Sec. 544. Military recruiter access to secondary school students.
Sec. 545. Permanent authority for use of military recruiting funds for 
              certain expenses at Department of Defense recruiting 
              functions.
Sec. 546. Report on health and disability benefits for pre-accession 
              training and education programs.

      Subtitle F--Decorations, Awards, and Posthumous Commissions

Sec. 551. Authority for award of the Medal of Honor to Humbert R. 
              Versace, Jon E. Swanson, and Ben L. Salomon for valor.
Sec. 552. Review regarding award of Medal of Honor to certain Jewish 
              American and Hispanic American war veterans.
Sec. 553. Authority to issue duplicate Medals of Honor and to replace 
              stolen military decorations.
Sec. 554. Retroactive Medal of Honor special pension.
Sec. 555. Waiver of time limitations for award of certain decorations 
              to certain persons.
Sec. 556. Sense of Congress on issuance of certain medals.
Sec. 557. Sense of Congress on development of a more comprehensive, 
              uniform policy for the award of decorations to military 
              and civilian personnel of the Department of Defense.
Sec. 558. Posthumous Army commission in the grade of captain in the 
              Chaplains Corps to Ella E. Gibson for service as chaplain 
              of the First Wisconsin Heavy Artillery Regiment during 
              the Civil War.

                    Subtitle G--Funeral Honors Duty

Sec. 561. Participation of military retirees in funeral honors details.
Sec. 562. Funeral honors duty performed by Reserve and Guard members to 
              be treated as inactive-duty training for certain 
              purposes.
Sec. 563. Use of military leave for funeral honors duty by Reserve 
              members and National Guardsmen.
Sec. 564. Authority to provide appropriate articles of clothing as a 
              civilian uniform for civilians participating in funeral 
              honor details.

            Subtitle H--Military Spouses and Family Members

Sec. 571. Improved financial and other assistance to military spouses 
              for job training and education.
Sec. 572. Persons authorized to be included in surveys of military 
              families regarding Federal programs.
Sec. 573. Clarification of treatment of classified information 
              concerning persons in a missing status.
Sec. 574. Transportation to annual meeting of next-of-kin of persons 
              unaccounted for from conflicts after World War II.
Sec. 575. Amendments to charter of Defense Task Force on Domestic 
              Violence.

       Subtitle I--Military Justice and Legal Assistance Matters

Sec. 581. Blood alcohol content limit for the offense under the Uniform 
              Code of Military Justice of drunken operation of a 
              vehicle, aircraft, or vessel.
Sec. 582. Requirement that courts-martial consist of not less than 12 
              members in capital cases.
Sec. 583. Acceptance of voluntary legal assistance for the civil 
              affairs of members and former members of the uniformed 
              services and their dependents.

                       Subtitle J--Other Matters

Sec. 591. Congressional review period for change in ground combat 
              exclusion policy.
Sec. 592. Per diem allowance for lengthy or numerous deployments.
Sec. 593. Clarification of disability severance pay computation.
Sec. 594. Transportation or storage of privately owned vehicles on 
              change of permanent station.
Sec. 595. Repeal of requirement for final Comptroller General report 
              relating to Army end strength allocations.
Sec. 596. Continued Department of Defense administration of National 
              Guard Challenge program and Department of Defense 
              Starbase program.
Sec. 597. Report on Defense Science Board recommendation on original 
              appointments in regular grades for Academy graduates and 
              certain other new officers.
Sec. 598. Sense of Congress regarding the selection of officers for 
              recommendation for appointment as Commander, United 
              States Transportation Command.

          TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS

                     Subtitle A--Pay and Allowances

Sec. 601. Increase in basic pay for fiscal year 2002.
Sec. 602. Basic pay rate for certain reserve commissioned officers with 
              prior service as an enlisted member or warrant officer.
Sec. 603. Reserve component compensation for distributed learning 
              activities performed as inactive-duty training.
Sec. 604. Subsistence allowances.
Sec. 605. Eligibility for temporary housing allowance while in travel 
              or leave status between permanent duty stations.
Sec. 606. Uniform allowance for officers.
Sec. 607. Family separation allowance for members electing 
              unaccompanied tour by reason of health limitations of 
              dependents.

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           Subtitle B--Bonuses and Special and Incentive Pays

Sec. 611. One-year extension of certain bonus and special pay 
              authorities for reserve forces.
Sec. 612. One-year extension of certain bonus and special pay 
              authorities for nurse officer candidates, registered 
              nurses, and nurse anesthetists.
Sec. 613. One-year extension of special pay and bonus authorities for 
              nuclear officers.
Sec. 614. One-year extension of other bonus and special pay 
              authorities.
Sec. 615. Hazardous duty pay for members of maritime visit, board, 
              search, and seizure teams.
Sec. 616. Eligibility for certain career continuation bonuses for early 
              commitment to remain on active duty.
Sec. 617. Secretarial discretion in prescribing submarine duty 
              incentive pay rates.
Sec. 618. Conforming accession bonus for dental officers authority with 
              authorities for other special pay and bonuses.
Sec. 619. Modification of eligibility requirements for Individual Ready 
              Reserve bonus for reenlistment, enlistment, or extension 
              of enlistment.
Sec. 620. Installment payment authority for 15-year career status 
              bonus.
Sec. 621. Accession bonus for new officers in critical skills.
Sec. 622. Education savings plan to encourage reenlistments and 
              extensions of service in critical specialties.
Sec. 623. Continuation of payment of special and incentive pay at 
              unreduced rates during stop loss periods.
Sec. 624. Retroactive authorization for imminent danger pay for service 
              in connection with Operation Enduring Freedom.

            Subtitle C--Travel and Transportation Allowances

Sec. 631. Minimum per diem rate for travel and transportation allowance 
              for travel performed upon a change of permanent station 
              and certain other travel.
Sec. 632. Eligibility for payment of subsistence expenses associated 
              with occupancy of temporary lodging incident to reporting 
              to first permanent duty station.
Sec. 633. Reimbursement of members for mandatory pet quarantine fees 
              for household pets.
Sec. 634. Increased weight allowance for transportation of baggage and 
              household effects for junior enlisted members.
Sec. 635. Eligibility of additional members for dislocation allowance.
Sec. 636. Partial dislocation allowance authorized for housing moves 
              ordered for Government convenience.
Sec. 637. Allowances for travel performed in connection with members 
              taking authorized leave between consecutive overseas 
              tours.
Sec. 638. Travel and transportation allowances for family members to 
              attend burial of a deceased member of the uniformed 
              services.
Sec. 639. Funded student travel for foreign study under an education 
              program approved by a United States school.

          Subtitle D--Retirement and Survivor Benefit Matters

Sec. 641. Contingent authority for concurrent receipt of military 
              retired pay and veterans' disability compensation and 
              enhancement of special compensation authority.
Sec. 642. Survivor Benefit Plan annuities for surviving spouses of 
              members who die while on active duty and not eligible for 
              retirement.

                       Subtitle E--Other Matters

Sec. 651. Payment for unused leave in excess of 60 days accrued by 
              members of reserve components on active duty for one year 
              or less.
Sec. 652. Additional authority to provide assistance for families of 
              members of the Armed Forces.
Sec. 653. Authorization of transitional compensation and commissary and 
              exchange benefits for dependents of commissioned officers 
              of the Public Health Service and the National Oceanic and 
              Atmospheric Administration who are separated for 
              dependent abuse.
Sec. 654. Transfer of entitlement to educational assistance under 
              Montgomery GI Bill by members of the Armed Forces with 
              critical military skills.

                   TITLE VII--HEALTH CARE PROVISIONS

                Subtitle A--TRICARE Program Improvements

Sec. 701. Sub-acute and long-term care program reform.
Sec. 702. Prosthetics and hearing aids.
Sec. 703. Durable medical equipment.
Sec. 704. Rehabilitative therapy.
Sec. 705. Report on mental health benefits.
Sec. 706. Clarification of eligibility for reimbursement of travel 
              expenses of adult accompanying patient in travel for 
              specialty care.
Sec. 707. TRICARE program limitations on payment rates for 
              institutional health care providers and on balance 
              billing by institutional and noninstitutional health care 
              providers.
Sec. 708. Improvements in administration of the TRICARE program.

                     Subtitle B--Senior Health Care

Sec. 711. Clarifications and improvements regarding the Department of 
              Defense Medicare-Eligible Retiree Health Care Fund.

                    Subtitle C--Studies and Reports

Sec. 721. Comptroller General study of health care coverage of members 
              of the reserve components of the Armed Forces and the 
              National Guard.
Sec. 722. Comptroller General study of adequacy and quality of health 
              care provided to women under the defense health program.
Sec. 723. Repeal of obsolete report requirement.
Sec. 724. Comptroller General report on requirement to provide 
              screenings, physical examinations, and other care for 
              certain members.

                       Subtitle D--Other Matters

Sec. 731. Prohibition against requiring military retirees to receive 
              health care solely through the Department of Defense.
Sec. 732. Fees for trauma and other medical care provided to civilians.
Sec. 733. Enhancement of medical product development.
Sec. 734. Pilot program providing for Department of Veterans Affairs 
              support in the performance of separation physical 
              examinations.
Sec. 735. Modification of prohibition on requirement of nonavailability 
              statement or preauthorization.
Sec. 736. Transitional health care for members separated from active 
              duty.
Sec. 737. Two-year extension of health care management demonstration 
              program.
Sec. 738. Joint DoD-VA pilot program for providing graduate medical 
              education and training for physicians.

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

         Subtitle A--Procurement Management and Administration

Sec. 801. Management of procurement of services.
Sec. 802. Savings goals for procurements of services.
Sec. 803. Competition requirement for purchase of services pursuant to 
              multiple award contracts.
Sec. 804. Reports on maturity of technology at initiation of major 
              defense acquisition programs. 

                  Subtitle B--Use of Preferred Sources

Sec. 811. Applicability of competition requirements to purchases from a 
              required source.
Sec. 812. Extension of mentor-protege program.
Sec. 813. Increase of assistance limitation regarding procurement 
              technical assistance program.

Subtitle C--Amendments to General Contracting Authorities, Procedures, 
                          and Related Matters

Sec. 821. Amendments to conform with administrative changes in 
              acquisition phase and milestone terminology and to make 
              related adjustments in certain requirements applicable at 
              milestone transition points.
Sec. 822. Follow-on production contracts for products developed 
              pursuant to prototype projects.
Sec. 823. One-year extension of program applying simplified procedures 
              to certain commercial items.
Sec. 824. Acquisition workforce qualifications.
Sec. 825. Report on implementation of recommendations of the 
              acquisition 2005 task force.

                       Subtitle D--Other Matters

Sec. 831. Identification of errors made by executive agencies in 
              payments to contractors and recovery of amounts 
              erroneously paid.
Sec. 832. Codification and modification of provision of law known as 
              the ``Berry amendment''.
Sec. 833. Personal services contracts to be performed by individuals or 
              organizations abroad.
Sec. 834. Requirements regarding insensitive munitions.
Sec. 835. Inapplicability of limitation to small purchases of miniature 
              or instrument ball or roller bearings under certain 
              circumstances.
Sec. 836. Temporary emergency procurement authority to facilitate the 
              defense against terrorism or biological or chemical 
              attack.

      TITLE IX--DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT

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

Sec. 901. Deputy Under Secretary of Defense for Personnel and 
              Readiness.

[[Page 25182]]

Sec. 902. Sense of Congress on functions of new Office of Force 
              Transformation in the Office of the Secretary of Defense.
Sec. 903. Suspension of reorganization of engineering and technical 
              authority policy within the Naval Sea Systems Command 
              pending report to congressional committees.

                      Subtitle B--Space Activities

Sec. 911. Joint management of space programs.
Sec. 912. Requirement to establish in the Air Force an officer career 
              field for space.
Sec. 913. Secretary of Defense report on space activities.
Sec. 914. Comptroller General assessment of implementation of 
              recommendations of Space Commission.
Sec. 915. Sense of Congress regarding officers recommended to be 
              appointed to serve as Commander of United States Space 
              Command.

                          Subtitle C--Reports

Sec. 921. Revised requirement for Chairman of the Joint Chiefs of Staff 
              to advise Secretary of Defense on the assignment of roles 
              and missions to the Armed Forces.
Sec. 922. Revised requirements for content of annual report on joint 
              warfighting experimentation.
Sec. 923. Repeal of requirement for one of three remaining required 
              reports on activities of Joint Requirements Oversight 
              Council.
Sec. 924. Revised joint report on establishment of national 
              collaborative information analysis capability.

                       Subtitle D--Other Matters

Sec. 931. Conforming amendments relating to change of name of Military 
              Airlift Command to Air Mobility Command.
Sec. 932. Organizational realignment for Navy Director for 
              Expeditionary Warfare.

                      TITLE X--GENERAL PROVISIONS

                     Subtitle A--Financial Matters

Sec. 1001. Transfer authority.
Sec. 1002. Incorporation of classified annex.
Sec. 1003. Authorization of supplemental appropriations for fiscal year 
              2001.
Sec. 1004. United States contribution to NATO common-funded budgets in 
              fiscal year 2002.
Sec. 1005. Limitation on funds for Bosnia and Kosovo peacekeeping 
              operations for fiscal year 2002.
Sec. 1006. Maximum amount for National Foreign Intelligence Program.
Sec. 1007. Clarification of applicability of interest penalties for 
              late payment of interim payments due under contracts for 
              services.
Sec. 1008. Reliability of Department of Defense financial statements.
Sec. 1009. Financial Management Modernization Executive Committee and 
              financial feeder systems compliance process.
Sec. 1010. Authorization of funds for ballistic missile defense 
              programs or combating terrorism programs of the 
              Department of Defense.

                Subtitle B--Naval Vessels and Shipyards

Sec. 1011. Authority to transfer naval vessels to certain foreign 
              countries.
Sec. 1012. Sale of Glomar Explorer to the lessee.
Sec. 1013. Leasing of Navy ships for university national oceanographic 
              laboratory system.
Sec. 1014. Increase in limitations on administrative authority of the 
              Navy to settle admiralty claims.

                  Subtitle C--Counter-Drug Activities

Sec. 1021. Extension and restatement of authority to provide Department 
              of Defense support for counter-drug activities of other 
              governmental agencies.
Sec. 1022. Extension of reporting requirement regarding Department of 
              Defense expenditures to support foreign counter-drug 
              activities.
Sec. 1023. Authority to transfer Tracker aircraft currently used by 
              Armed Forces for counter-drug purposes.
Sec. 1024. Limitation on use of funds for operation of Tethered 
              Aerostat Radar System pending submission of required 
              report.

                      Subtitle D--Strategic Forces

Sec. 1031. Repeal of limitation on retirement or dismantlement of 
              strategic nuclear delivery systems.
Sec. 1032. Air Force bomber force structure.
Sec. 1033. Additional element for revised nuclear posture review.
Sec. 1034. Report on options for modernization and enhancement of 
              missile wing helicopter support.

           Subtitle E--Other Department of Defense Provisions

Sec. 1041. Secretary of Defense recommendation on need for Department 
              of Defense review of proposed Federal agency actions to 
              consider possible impact on national defense.
Sec. 1042. Department of Defense reports to Congress to be accompanied 
              by electronic version upon request.
Sec. 1043. Department of Defense gift authorities.
Sec. 1044. Acceleration of research, development, and production of 
              medical countermeasures for defense against biological 
              warfare agents.
Sec. 1045. Chemical and biological protective equipment for military 
              personnel and civilian employees of the Department of 
              Defense.
Sec. 1046. Sale of goods and services by Naval Magazine, Indian Island, 
              Alaska.
Sec. 1047. Report on procedures and guidelines for embarkation of 
              civilian guests on naval vessels for public affairs 
              purposes.
Sec. 1048. Technical and clerical amendments.
Sec. 1049. Termination of referendum requirement regarding continuation 
              of military training on island of Vieques, Puerto Rico, 
              and imposition of additional conditions on closure of 
              live-fire training range.

                       Subtitle F--Other Matters

Sec. 1061. Assistance for firefighters.
Sec. 1062. Extension of times for Commission on the Future of the 
              United States Aerospace industry to report and to 
              terminate.
Sec. 1063. Appropriations to Radiation Exposure Compensation Trust 
              Fund.
Sec. 1064. Waiver of vehicle weight limits during periods of national 
              emergency.
Sec. 1065. Repair, restoration, and preservation of Lafayette 
              Escadrille Memorial, Marnes-la-Coquette, France.

                  TITLE XI--CIVILIAN PERSONNEL MATTERS

          Subtitle A--Department of Defense Civilian Personnel

Sec. 1101. Personnel pay and qualifications authority for Department of 
              Defense Pentagon Reservation civilian law enforcement and 
              security force.
Sec. 1102. Pilot program for payment of retraining expenses.
Sec. 1103. Authority of civilian employees to act as notaries.
Sec. 1104. Authority to appoint certain health care professionals in 
              the excepted service.

          Subtitle B--Civilian Personnel Management Generally

Sec. 1111. Authority to provide hostile fire pay.
Sec. 1112. Payment of expenses to obtain professional credentials.
Sec. 1113. Parity in establishment of wage schedules and rates for 
              prevailing rate employees.
Sec. 1114. Modification of limitation on premium pay.
Sec. 1115. Participation of personnel in technical standards 
              development activities.
Sec. 1116. Retention of travel promotional items.
Sec. 1117. Applicability of certain laws to certain individuals 
              assigned to work in the Federal Government.

              Subtitle C--Intelligence Civilian Personnel

Sec. 1121. Authority to increase maximum number of positions in the 
              Defense Intelligence Senior Executive Service.

               Subtitle D--Matters Relating To Retirement

Sec. 1131. Improved portability of retirement coverage for employees 
              moving between civil service employment and employment by 
              nonappropriated fund instrumentalities.
Sec. 1132. Federal employment retirement credit for nonappropriated 
              fund instrumentality service.
Sec. 1133. Modification of limitations on exercise of voluntary 
              separation incentive pay authority and voluntary early 
              retirement authority.

              TITLE XII--MATTERS RELATING TO OTHER NATIONS

       Subtitle A--Matters Related to Arms Control and Monitoring

Sec. 1201. Clarification of authority to furnish nuclear test 
              monitoring equipment to foreign governments.
Sec. 1202. Limitation on funding for joint Data Exchange Center in 
              Moscow.
Sec. 1203. Support of United Nations-sponsored efforts to inspect and 
              monitor Iraqi weapons activities.
Sec. 1204. Authority for employees of Federal Government contractors to 
              accompany chemical weapons inspection teams at 
              Government-owned facilities.
Sec. 1205. Plan for securing nuclear weapons, material, and expertise 
              of the states of the former Soviet Union.

  Subtitle B--Matters Relating to Allies and Friendly Foreign Nations

Sec. 1211. Acquisition of logistical support for security forces.
Sec. 1212. Extension of authority for international cooperative 
              research and development projects.
Sec. 1213. Cooperative agreements with foreign countries and 
              international organizations for reciprocal use of test 
              facilities.
Sec. 1214. Sense of Congress on allied defense burdensharing.

                          Subtitle C--Reports

Sec. 1221. Report on significant sales and transfers of military 
              hardware, expertise, and technology to the People's 
              Republic of China.

[[Page 25183]]

Sec. 1222. Repeal of requirement for reporting to Congress on military 
              deployments to Haiti.
Sec. 1223. Report by Comptroller General on provision of defense 
              articles, services, and military education and training 
              to foreign countries and international organizations.

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

Sec. 1301. Specification of Cooperative Threat Reduction programs and 
              funds.
Sec. 1302. Funding allocations.
Sec. 1303. Limitation on use of funds until submission of reports.
Sec. 1304. Requirement to consider use of revenue generated by 
              activities carried out under Cooperative Threat Reduction 
              programs.
Sec. 1305. Prohibition against use of funds for second wing of fissile 
              material storage facility.
Sec. 1306. Prohibition against use of funds for certain construction 
              activities.
Sec. 1307. Reports on activities and assistance under Cooperative 
              Threat Reduction programs.
Sec. 1308. Chemical weapons destruction.
Sec. 1309. Additional matter in annual report on activities and 
              assistance under Cooperative Threat Reduction programs.

                TITLE XIV--ARMED FORCES RETIREMENT HOME

Sec. 1401. Amendment of Armed Forces Retirement Home Act of 1991.
Sec. 1402. Definitions.
Sec. 1403. Revision of authority establishing the Armed Forces 
              Retirement Home.
Sec. 1404. Chief Operating Officer.
Sec. 1405. Residents of Retirement Home.
Sec. 1406. Local Boards of Trustees.
Sec. 1407. Directors, Deputy Directors, Associate Directors, and staff 
              of facilities.
Sec. 1408. Disposition of effects of deceased persons and unclaimed 
              property.
Sec. 1409. Transitional provisions.
Sec. 1410. Conforming and clerical amendments and repeals of obsolete 
              provisions.

          TITLE XV--ACTIVITIES RELATING TO COMBATING TERRORISM

         Subtitle A--Increased Funding for Combating Terrorism

Sec. 1501. Definitions.
Sec. 1502. Authorization of emergency appropriations for fiscal year 
              2001 made by Public Law 107-38 and allocated for national 
              defense functions.
Sec. 1503. Authorization of emergency supplemental appropriations for 
              fiscal year 2002.
Sec. 1504. Authorization of use of funds for military construction 
              projects.
Sec. 1505. Treatment of transferred amounts.
Sec. 1506. Quarterly reports.

       Subtitle B--Policy Matters Relating to Combating Terrorism

Sec. 1511. Study and report on the role of the Department of Defense 
              with respect to homeland security.
Sec. 1512. Combating Terrorism Readiness Initiatives Fund for combatant 
              commands.
Sec. 1513. Conveyances of equipment and related materials loaned to 
              State and local governments as assistance for emergency 
              response to a use or threatened use of a weapon of mass 
              destruction.
Sec. 1514. Two-year extension of advisory panel to assess domestic 
              response capabilities for terrorism involving weapons of 
              mass destruction.

                  TITLE XVI--UNIFORMED SERVICES VOTING

Sec. 1601. Sense of Congress regarding the importance of voting.
Sec. 1602. Voting assistance programs.
Sec. 1603. Guarantee of residency for military personnel.
Sec. 1604. Electronic voting demonstration project.
Sec. 1605. Governors' reports on implementation of recommendations for 
              changes in State law made under Federal Voting Assistance 
              Program.
Sec. 1606. Simplification of voter registration and absentee ballot 
              application procedures for absent uniformed services and 
              overseas voters.
Sec. 1607. Use of certain Department of Defense facilities as polling 
              places.

            DIVISION B--MILITARY CONSTRUCTION AUTHORIZATIONS

Sec. 2001. Short title; definition.

                            TITLE XXI--ARMY

Sec. 2101. Authorized Army construction and land acquisition projects.
Sec. 2102. Family housing.
Sec. 2103. Improvements to military family housing units.
Sec. 2104. Authorization of appropriations, Army.
Sec. 2105. Modification of authority to carry out certain fiscal year 
              2001 projects.
Sec. 2106. Modification of authority to carry out certain fiscal year 
              2000 projects.

                            TITLE XXII--NAVY

Sec. 2201. Authorized Navy construction and land acquisition projects.
Sec. 2202. Family housing.
Sec. 2203. Improvements to military family housing units.
Sec. 2204. Authorization of appropriations, Navy.
Sec. 2205. Modification of authority to carry out certain fiscal year 
              2001 projects.
Sec. 2206. Modification of authority to carry out certain fiscal year 
              2000 project.

                         TITLE XXIII--AIR FORCE

Sec. 2301. Authorized Air Force construction and land acquisition 
              projects.
Sec. 2302. Family housing.
Sec. 2303. Improvements to military family housing units.
Sec. 2304. Authorization of appropriations, Air Force.
Sec. 2305. Modification of authority to carry out certain fiscal year 
              2001 projects.

                      TITLE XXIV--DEFENSE AGENCIES

Sec. 2401. Authorized Defense Agencies construction and land 
              acquisition projects.
Sec. 2402. Energy conservation projects.
Sec. 2403. Authorization of appropriations, Defense Agencies.
Sec. 2404. Cancellation of authority to carry out certain fiscal year 
              2001 projects.
Sec. 2405. Modification of authority to carry out certain fiscal year 
              2000 projects.
Sec. 2406. Modification of authority to carry out certain fiscal year 
              1999 project.
Sec. 2407. Modification of authority to carry out certain fiscal year 
              1995 project.
Sec. 2408. Prohibition on expenditures to develop forward operating 
              location on Aruba.

   TITLE XXV--NORTH ATLANTIC TREATY ORGANIZATION SECURITY INVESTMENT 
                                PROGRAM

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

                TITLE XXVI--GUARD AND RESERVE FACILITIES

Sec. 2601. Authorized guard and reserve construction and land 
              acquisition projects.

        TITLE XXVII--EXPIRATION AND EXTENSION OF AUTHORIZATIONS

Sec. 2701. Expiration of authorizations and amounts required to be 
              specified by law.
Sec. 2702. Extension of authorizations of certain fiscal year 1999 
              projects.
Sec. 2703. Extension of authorizations of certain fiscal year 1998 
              projects.
Sec. 2704. Effective date.

                    TITLE XXVIII--GENERAL PROVISIONS

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

Sec. 2801. Increase in thresholds for certain unspecified minor 
              military construction projects.
Sec. 2802. Exclusion of unforeseen environmental hazard remediation 
              from limitation on authorized cost variations.
Sec. 2803. Repeal of annual reporting requirement on military 
              construction and military family housing activities.
Sec. 2804. Funds for housing allowances of members assigned to military 
              family housing under alternative authority for 
              acquisition and improvement of military housing.
Sec. 2805. Extension of alternative authority for acquisition and 
              improvement of military housing.
Sec. 2806. Treatment of financing costs as allowable expenses under 
              contracts for utility services from utility systems 
              conveyed under privatization initiative.

        Subtitle B--Real Property and Facilities Administration

Sec. 2811. Use of military installations for certain recreational 
              activities.
Sec. 2812. Availability of proceeds of sales of Department of Defense 
              property from certain closed military installations.
Sec. 2813. Pilot program to provide additional tools for efficient 
              operation of military installations.
Sec. 2814. Demonstration program on reduction in long-term facility 
              maintenance costs.
Sec. 2815. Base efficiency project at Brooks Air Force Base, Texas.

Subtitle C--Implementation of Prior Base Closure and Realignment Rounds

Sec. 2821. Lease back of base closure property.

                      Subtitle D--Land Conveyances

                        Part I--Army Conveyances

Sec. 2831. Land conveyance, Whittier-Anchorage Pipeline Tank Farm, 
              Anchorage, Alaska.
Sec. 2832. Lease authority, Fort Derussy, Hawaii.

[[Page 25184]]

Sec. 2833. Modification of land exchange, Rock Island Arsenal, 
              Illinois.
Sec. 2834. Land conveyance, Fort Des Moines, Iowa.
Sec. 2835. Modification of land conveyances, Fort Dix, New Jersey.
Sec. 2836. Land conveyance, Engineer Proving Ground, Fort Belvoir, 
              Virginia.
Sec. 2837. Land exchange and consolidation, Fort Lewis, Washington.
Sec. 2838. Land conveyance, Army Reserve Center, Kewaunee, Wisconsin.

                       Part II--Navy Conveyances

Sec. 2841. Transfer of jurisdiction, Centerville Beach Naval Station, 
              Humboldt County, California.
Sec. 2842. Land conveyance, Port of Long Beach, California.
Sec. 2843. Conveyance of pier, Naval Base, San Diego, California.
Sec. 2844. Modification of authority for conveyance of Naval Computer 
              and Telecommunications Station, Cutler, Maine.
Sec. 2845. Land transfer and conveyance, Naval Security Group Activity, 
              Winter Harbor, Maine.
Sec. 2846. Land acquisition, Perquimans County, North Carolina.
Sec. 2847. Land conveyance, Naval Weapons Industrial Reserve Plant, 
              Toledo, Ohio.
Sec. 2848. Modification of land conveyance, former United States Marine 
              Corps Air Station, Eagle Mountain Lake, Texas.

                    Part III--Air Force Conveyances

Sec. 2851. Conveyance of avigation easements, former Norton Air Force 
              Base, California.
Sec. 2852. Reexamination of land conveyance, Lowry Air Force Base, 
              Colorado.
Sec. 2853. Water rights conveyance, Andersen Air Force Base, Guam.
Sec. 2854. Conveyance of segment of Loring petroleum pipeline, Maine, 
              and related easements.
Sec. 2855. Land conveyance, petroleum terminal serving former Loring 
              Air Force Base and Bangor Air National Guard Base, Maine.
Sec. 2856. Land conveyances, certain former Minuteman III ICBM 
              facilities in North Dakota.
Sec. 2857. Land conveyances, Charleston Air Force Base, South Carolina.
Sec. 2858. Transfer of jurisdiction, Mukilteo Tank Farm, Everett, 
              Washington.

                       Subtitle E--Other Matters

Sec. 2861. Management of the Presidio of San Francisco.
Sec. 2862. Transfer of jurisdiction for development of Air Force 
              morale, welfare, and recreation facility, Park City, 
              Utah.
Sec. 2863. Alternate site for United States Air Force Memorial, 
              preservation of open space on Arlington Ridge tract, and 
              related land transfer at Arlington National Cemetery, 
              Virginia.
Sec. 2864. Establishment of memorial to victims of terrorist attack on 
              Pentagon Reservation and authority to accept monetary 
              contributions for memorial and repair of Pentagon.
Sec. 2865. Repeal of limitation on cost of renovation of Pentagon 
              Reservation.
Sec. 2866. Development of United States Army Heritage and Education 
              Center at Carlisle Barracks, Pennsylvania.
Sec. 2867. Effect of limitation on construction of roads or highways, 
              Marine Corps Base, Camp Pendleton, California.
Sec. 2868. Establishment of World War II memorial at additional 
              location on Guam.
Sec. 2869. Demonstration project for purchase of fire, security, 
              police, public works, and utility services from local 
              government agencies.
Sec. 2870. Report on future land needs of United States Military 
              Academy, New York, and adjacent community.
Sec. 2871. Naming of Patricia C. Lamar Army National Guard Readiness 
              Center, Oxford, Mississippi.

            TITLE XXIX--FORT IRWIN MILITARY LAND WITHDRAWAL

Sec. 2901. Short title.
Sec. 2902. Withdrawal and reservation of lands for National Training 
              Center.
Sec. 2903. Map and legal description.
Sec. 2904. Management of withdrawn and reserved lands.
Sec. 2905. Water rights.
Sec. 2906. Environmental compliance and environmental response 
              requirements.
Sec. 2907. West Mojave Coordinated Management Plan.
Sec. 2908. Release of wilderness study areas.
Sec. 2909. Training activity separation from utility corridors.
Sec. 2910. Duration of withdrawal and reservation.
Sec. 2911. Extension of initial withdrawal and reservation.
Sec. 2912. Termination and relinquishment.
Sec. 2913. Delegation of authority.

   TITLE XXX--REALIGNMENT AND CLOSURE OF MILITARY INSTALLATIONS AND 
   PREPARATION OF INFRASTRUCTURE PLAN FOR THE NUCLEAR WEAPONS COMPLEX

Sec. 3001. Authorization of round of realignments and closures of 
              military installations in 2005.
Sec. 3002. Selection criteria.
Sec. 3003. Revised procedures for making recommendations for 
              realignments and closures and commission consideration of 
              recommendations.
Sec. 3004. Limitations on privatization in place.
Sec. 3005. Department of Defense Base Closure Account 2005.
Sec. 3006. Implementation of closure and realignment decisions.
Sec. 3007. Technical and clarifying amendments.
Sec. 3008. Preparation of infrastructure plan for the nuclear weapons 
              complex.

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

      TITLE XXXI--DEPARTMENT OF ENERGY NATIONAL SECURITY PROGRAMS

         Subtitle A--National Security Programs Authorizations

Sec. 3101. National Nuclear Security Administration.
Sec. 3102. Defense environmental restoration and waste management.
Sec. 3103. Other defense activities.
Sec. 3104. Defense environmental management privatization.
Sec. 3105. Defense nuclear waste disposal.

                Subtitle B--Recurring General Provisions

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

   Subtitle C--Program Authorizations, Restrictions, and Limitations

Sec. 3131. Consolidation of Nuclear Cities Initiative program with 
              Initiatives for Proliferation Prevention program.
Sec. 3132. Nuclear Cities Initiative.
Sec. 3133. Limitation on availability of funds for weapons activities 
              for facilities and infrastructure.
Sec. 3134. Limitation on availability of funds for other defense 
              activities for national security programs administrative 
              support.
Sec. 3135. Termination date of Office of River Protection, Richland, 
              Washington.
Sec. 3136. Support for public education in the vicinity of Los Alamos 
              National Laboratory, New Mexico.
Sec. 3137. Reports on achievement of milestones for National Ignition 
              Facility.

  Subtitle D--Matters Relating to Management of the National Nuclear 
                        Security Administration

Sec. 3141. Establishment of Principal Deputy Administrator of National 
              Nuclear Security Administration.
Sec. 3142. Elimination of requirement that national security 
              laboratories and nuclear weapons production facilities 
              report to Deputy Administrator for Defense Programs.
Sec. 3143. Repeal of duplicative provision relating to dual office 
              holding by personnel of National Nuclear Security 
              Administration.
Sec. 3144. Report on adequacy of Federal pay and hiring authorities to 
              meet personnel requirements of National Nuclear Security 
              Administration.

                       Subtitle E--Other Matters

Sec. 3151. Improvements to Energy Employees Occupational Illness 
              Compensation Program.
Sec. 3152. Department of Energy counterintelligence polygraph program.
Sec. 3153. One-year extension of authority of Department of Energy to 
              pay voluntary separation incentive payments.
Sec. 3154. Annual assessment and report on vulnerability of Department 
              of Energy facilities to terrorist attack.
Sec. 3155. Disposition of surplus defense plutonium at Savannah River 
              Site, Aiken, South Carolina.
Sec. 3156. Modification of date of report of panel to assess the 
              reliability, safety, and security of the United States 
              nuclear stockpile.

            Subtitle F--Rocky Flats National Wildlife Refuge

Sec. 3171. Short title.
Sec. 3172. Findings and purposes.
Sec. 3173. Definitions.
Sec. 3174. Future ownership and management.
Sec. 3175. Transfer of management responsibilities and jurisdiction 
              over Rocky Flats.
Sec. 3176. Administration of retained property; continuation of cleanup 
              and closure.

[[Page 25185]]

Sec. 3177. Rocky Flats National Wildlife Refuge.
Sec. 3178. Comprehensive planning process.
Sec. 3179. Property rights.
Sec. 3180. Liabilities and other obligations.
Sec. 3181. Rocky Flats Museum.
Sec. 3182. Annual report on funding.

          TITLE XXXII--DEFENSE NUCLEAR FACILITIES SAFETY BOARD

Sec. 3201. Authorization.

                TITLE XXXIII--NATIONAL DEFENSE STOCKPILE

Sec. 3301. Definitions.
Sec. 3302. Authorized uses of stockpile funds.
Sec. 3303. Authority to dispose of certain materials in National 
              Defense Stockpile.
Sec. 3304. Revision of limitations on required disposals of certain 
              materials in National Defense Stockpile.
Sec. 3305. Acceleration of required disposal of cobalt in National 
              Defense Stockpile.
Sec. 3306. Restriction on disposal of manganese ferro.

                 TITLE XXXIV--NAVAL PETROLEUM RESERVES

Sec. 3401. Authorization of appropriations.

                  TITLE XXXV--MARITIME ADMINISTRATION

Sec. 3501. Authorization of appropriations for fiscal year 2002.
Sec. 3502. Define ``war risks'' to vessels to include confiscation, 
              expropriation, nationalization, and deprivation of the 
              vessels.
Sec. 3503. Holding obligor's cash as collateral under title XI of 
              Merchant Marine Act, 1936.

     SEC. 3. CONGRESSIONAL DEFENSE COMMITTEES DEFINED.

       For purposes of this Act, the term ``congressional defense 
     committees'' means--
       (1) the Committee on Armed Services and the Committee on 
     Appropriations of the Senate; and
       (2) the Committee on Armed Services and the Committee on 
     Appropriations of the House of Representatives.
            DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATIONS
                          TITLE I--PROCUREMENT


              Subtitle A--Authorization of Appropriations

Sec. 101. Army.
Sec. 102. Navy and Marine Corps.
Sec. 103. Air Force.
Sec. 104. Defense-wide activities.
Sec. 105. Defense Inspector General.
Sec. 106. Chemical Agents and Munitions Destruction, Defense.
Sec. 107. Defense Health Program.

                       Subtitle B--Army Programs

Sec. 111. Repeal of limitations on bunker defeat munitions program.
Sec. 112. Extension of pilot program on sales of manufactured articles 
              and services of certain Army industrial facilities 
              without regard to availability from domestic sources.
Sec. 113. Limitations on acquisition of interim armored vehicles and 
              deployment of interim brigade combat teams.

                       Subtitle C--Navy Programs

Sec. 121. Virginia class submarine program.
Sec. 122. Multiyear procurement authority for F/A-18E/F aircraft 
              engines.
Sec. 123. V-22 Osprey aircraft program.
Sec. 124. Report on status of V-22 Osprey aircraft before resumption of 
              flight testing.

                     Subtitle D--Air Force Programs

Sec. 131. Multiyear procurement authority for C-17 aircraft.
              Subtitle A--Authorization of Appropriations

     SEC. 101. ARMY.

       Funds are hereby authorized to be appropriated for fiscal 
     year 2002 for procurement for the Army as follows:
       (1) For aircraft, $2,075,372,000.
       (2) For missiles, $1,086,954,000.
       (3) For weapons and tracked combat vehicles, 
     $2,348,145,000.
       (4) For ammunition, $1,187,233,000.
       (5) For other procurement, $4,044,080,000.

     SEC. 102. NAVY AND MARINE CORPS.

       (a) Navy.--Funds are hereby authorized to be appropriated 
     for fiscal year 2002 for procurement for the Navy as follows:
       (1) For aircraft, $8,323,147,000.
       (2) For weapons, including missiles and torpedoes, 
     $1,484,321,000.
       (3) For shipbuilding and conversion, $9,370,972,000.
       (4) For other procurement, $4,282,471,000.
       (b) Marine Corps.--Funds are hereby authorized to be 
     appropriated for fiscal year 2002 for procurement for the 
     Marine Corps in the amount of $1,014,637,000.
       (c) Navy and Marine Corps Ammunition.--Funds are hereby 
     authorized to be appropriated for fiscal year 2002 for 
     procurement of ammunition for the Navy and the Marine Corps 
     in the amount of $466,907,000.

     SEC. 103. AIR FORCE.

       Funds are hereby authorized to be appropriated for fiscal 
     year 2002 for procurement for the Air Force as follows:
       (1) For aircraft, $10,789,167,000.
       (2) For missiles, $3,222,636,000.
       (3) For ammunition, $881,844,000.
       (4) For other procurement, $8,196,021,000.

     SEC. 104. DEFENSE-WIDE ACTIVITIES.

       Funds are hereby authorized to be appropriated for fiscal 
     year 2002 for Defense-wide procurement in the amount of 
     $2,279,482,000.

     SEC. 105. DEFENSE INSPECTOR GENERAL.

       Funds are hereby authorized to be appropriated for fiscal 
     year 2002 for procurement for the Inspector General of the 
     Department of Defense in the amount of $2,800,000.

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

       There is hereby authorized to be appropriated for fiscal 
     year 2002 for the Department of Defense for Chemical Agents 
     and Munitions Destruction, Defense, the amount of 
     $1,153,557,000 for--
       (1) the destruction of lethal chemical agents and munitions 
     in accordance with section 1412 of the Department of Defense 
     Authorization Act, 1986 (50 U.S.C. 1521); and
       (2) the destruction of chemical warfare materiel of the 
     United States that is not covered by section 1412 of such 
     Act.

     SEC. 107. DEFENSE HEALTH PROGRAM.

       Funds are hereby authorized to be appropriated for fiscal 
     year 2002 for the Department of Defense for procurement for 
     carrying out health care programs, projects, and activities 
     of the Department of Defense in the total amount of 
     $267,915,000.
                       Subtitle B--Army Programs

     SEC. 111. REPEAL OF LIMITATIONS ON BUNKER DEFEAT MUNITIONS 
                   PROGRAM.

       Section 116 of the National Defense Authorization Act for 
     Fiscal Year 1995 (Public Law 103-337; 108 Stat. 2682) is 
     repealed.

     SEC. 112. EXTENSION OF PILOT PROGRAM ON SALES OF MANUFACTURED 
                   ARTICLES AND SERVICES OF CERTAIN ARMY 
                   INDUSTRIAL FACILITIES WITHOUT REGARD TO 
                   AVAILABILITY FROM DOMESTIC SOURCES.

       Section 141(a) of the National Defense Authorization Act 
     for Fiscal Year 1998 (Public Law 105-85; 10 U.S.C. 4543 note) 
     is amended--
       (1) by striking ``through 2001'' and inserting ``through 
     2002''; and
       (2) by inserting before the period at the end the 
     following: ``, except that during fiscal year 2002 the 
     Secretary may only use articles manufactured at, and services 
     provided by, not more than one Army industrial facility''.

     SEC. 113. LIMITATIONS ON ACQUISITION OF INTERIM ARMORED 
                   VEHICLES AND DEPLOYMENT OF INTERIM BRIGADE 
                   COMBAT TEAMS.

       Section 113 of the Floyd D. Spence National Defense 
     Authorization Act for Fiscal Year 2001 (as enacted into law 
     by Public Law 106-398; 114 Stat. 1654A-23) is amended--
       (1) by redesignating subsection (f) as subsection (j); and
       (2) by inserting after subsection (e) the following new 
     subsections:
       ``(f) Waiver of Comparison Requirement.--The Secretary of 
     Defense may waive subsections (c) and (e)(1) and submit to 
     the congressional defense committees a certification under 
     subsection (e)(2) without regard to the requirement in that 
     subsection for the completion of a comparison of costs and 
     operational effectiveness if the Secretary includes in the 
     submittal a certification of each of the following:
       ``(1) That the results of executed tests and existing 
     analyses are sufficient for making a meaningful comparison of 
     the costs and operational effectiveness of the interim 
     armored vehicles referred to in subparagraph (A) of 
     subsection (c)(1) and the medium armored vehicles referred to 
     in subparagraph (B) of such subsection.
       ``(2) That the conduct of a comparative evaluation of those 
     vehicles in a realistic field environment would provide no 
     significant additional data relevant to that comparison.
       ``(3) That the Secretary has evaluated the existing data on 
     cost and operational effectiveness of those vehicles and, 
     taking that data into consideration, approves the obligation 
     of funds for the acquisition of additional interim armored 
     vehicles.
       ``(4) That sufficient resources will be requested in the 
     future-years defense program to fully fund the Army's 
     requirements for interim brigade combat teams.
       ``(5) That the force structure resulting from the 
     establishment of the interim brigade combat teams and the 
     subsequent achievement of operational capability by those 
     teams will not diminish the combat power of the Army.
       ``(g) Experimentation Program.--The Secretary of the Army 
     shall develop and provide resources for an experimentation 
     program that will--
       ``(1) provide information as to the design of the objective 
     force; and
       ``(2) include a formal linkage of the interim brigade 
     combat teams to that experimentation.
       ``(h) Operational Evaluation.--(1) The Secretary of the 
     Army shall conduct an operational evaluation of the initial 
     interim brigade combat team. The evaluation shall include 
     deployment of the team to the evaluation site and team 
     execution of combat missions across the full spectrum of 
     potential threats and operational scenarios.
       ``(2) The operational evaluation under paragraph (1) may 
     not be conducted until the plan for such evaluation is 
     approved by the Director of Operational Test and Evaluation 
     of the Department of Defense.
       ``(i) Limitation on Procurement of Interim Armored Vehicles 
     and Deployment of IBCTs.--(1) The actions described in 
     paragraph (2) may not be taken until the date that is 30 days 
     after the date on which the Secretary of Defense--
       ``(A) submits to Congress a report on the operational 
     evaluation carried out under subsection (h); and

[[Page 25186]]

       ``(B) certifies to Congress that the results of that 
     operational evaluation indicate that the design for the 
     interim brigade combat team is operationally effective and 
     operationally suitable.
       ``(2) The limitation in paragraph (1) applies to the 
     following actions:
       ``(A) Procurement of interim armored vehicles in addition 
     to those necessary for equipping the first three interim 
     brigade combat teams.
       ``(B) Deployment of any interim brigade combat team outside 
     the United States.
       ``(3) The Secretary of Defense may waive the applicability 
     of paragraph (1) to a deployment described in paragraph 
     (2)(B) if the Secretary--
       ``(A) determines that the deployment is in the national 
     security interests of the United States; and
       ``(B) submits to Congress, in writing, a notification of 
     the waiver together with a discussion of the reasons for the 
     waiver.''.
                       Subtitle C--Navy Programs

     SEC. 121. VIRGINIA CLASS SUBMARINE PROGRAM.

       Section 123(b)(1) of the Floyd D. Spence National Defense 
     Authorization Act for Fiscal Year 2001 (as enacted into law 
     by Public Law 106-398; 114 Stat. 1654A-25) is amended--
       (1) by striking ``five Virginia class submarines'' and 
     inserting ``seven Virginia class submarines''; and
       (2) by striking ``2006'' and inserting ``2007''.

     SEC. 122. MULTIYEAR PROCUREMENT AUTHORITY FOR F/A-18E/F 
                   AIRCRAFT ENGINES.

       (a) Multiyear Authority.--Beginning with the 2002 program 
     year, the Secretary of the Navy may, in accordance with 
     section 2306b of title 10, United States Code, enter into a 
     multiyear contract for the procurement of engines for F/A-
     18E/F aircraft.
       (b) Required Certifications.--In the case of a contract 
     authorized by subsection (a) of this section, a certification 
     under subsection (i)(1)(A) of section 2306b of title 10, 
     United States Code, with respect to that contract may only be 
     submitted if the certification includes an additional 
     certification that each of the conditions specified in 
     subsection (a) of that section has been satisfied with 
     respect to that contract.
       (c) Congressional Notice-and-Wait Period.--Upon 
     transmission to Congress of a certification referred to in 
     subsection (b) with respect to a contract authorized by 
     subsection (a), the contract may then be entered into only 
     after a period of 30 days has elapsed after the date of the 
     transmission of such certification.

     SEC. 123. V-22 OSPREY AIRCRAFT PROGRAM.

       The production rate for V-22 Osprey aircraft may not be 
     increased above the minimum sustaining production rate for 
     which funds are authorized to be appropriated by this Act 
     until the Secretary of Defense certifies to Congress that 
     successful operational testing of the aircraft demonstrates 
     that--
       (1) the solutions to the problems regarding the reliability 
     of hydraulic system components and flight control software 
     that were identified by the panel appointed by the Secretary 
     of Defense on January 5, 2001, to review the V-22 aircraft 
     program are adequate to achieve low risk for crews and 
     passengers aboard V-22 aircraft that are operating under 
     operational conditions;
       (2) the V-22 aircraft can achieve reliability and 
     maintainability levels that are sufficient for the aircraft 
     to achieve operational availability at the level required for 
     fleet aircraft;
       (3) the V-22 aircraft will be operationally effective--
       (A) when employed in operations with other V-22 aircraft; 
     and
       (B) when employed in operations with other types of 
     aircraft; and
       (4) the V-22 aircraft can be operated effectively, taking 
     into consideration the downwash effects inherent in the 
     operation of the aircraft, when the aircraft--
       (A) is operated in remote areas with unimproved terrain and 
     facilities;
       (B) is deploying and recovering personnel--
       (i) while hovering within the zone of ground effect; and
       (ii) while hovering outside the zone of ground effect; and
       (C) is operated with external loads.

     SEC. 124. REPORT ON STATUS OF V-22 OSPREY AIRCRAFT BEFORE 
                   RESUMPTION OF FLIGHT TESTING.

       Not later than 30 days before the resumption of flight 
     testing of the V-22 Osprey aircraft, the Secretary of Defense 
     shall submit to Congress a report containing the following:
       (1) A comprehensive description of the status of the 
     hydraulics system and flight control software of the V-22 
     Osprey aircraft, including--
       (A) a description and analysis of any deficiencies in the 
     hydraulics system and flight control software of the V-22 
     Osprey aircraft; and
       (B) a description and assessment of the actions taken to 
     redress each such deficiency.
       (2) A description of the current actions, and any proposed 
     actions, of the Department of Defense to implement the 
     recommendations of the panel appointed by the Secretary of 
     Defense on January 5, 2001, to review the V-22 aircraft 
     program.
       (3) An assessment of the recommendations of the National 
     Aeronautics and Space Administration on tiltrotor 
     aeromechanics provided in a briefing to the Undersecretary of 
     Defense for Acquisition, Logistics, and Technology on August 
     14, 2001.
       (4) Notice of the waiver, if any, of any item capability or 
     any other requirement specified in the Joint Operational 
     Requirements Document for the V-22 Osprey aircraft, including 
     a justification of each such waiver.
                     Subtitle D--Air Force Programs

     SEC. 131. MULTIYEAR PROCUREMENT AUTHORITY FOR C-17 AIRCRAFT.

       (a) Multiyear Authority.--Beginning with the 2002 program 
     year, the Secretary of the Air Force may enter into a 
     multiyear contract for the procurement of up to 60 C-17 
     aircraft. Such a contract shall be entered into in accordance 
     with section 2306b of title 10, United States Code, except 
     that, notwithstanding subsection (k) of such section, such a 
     contract may be for a period of six program years.
       (b) Required Certifications.--In the case of a contract 
     authorized by subsection (a) of this section, a certification 
     under subsection (i)(1)(A) of section 2306b of title 10, 
     United States Code, with respect to that contract may only be 
     submitted if the certification includes an additional 
     certification that each of the conditions specified in 
     subsection (a) of that section has been satisfied with 
     respect to that contract.
       (c) Congressional Notice-and-Wait Period.--Upon 
     transmission to Congress of a certification referred to in 
     subsection (b) with respect to a contract authorized by 
     subsection (a), the contract may then be entered into only 
     after a period of 30 days has elapsed after the date of the 
     transmission of such certification.
         TITLE II--RESEARCH, DEVELOPMENT, TEST, AND EVALUATION

              Subtitle A--Authorization of Appropriations

Sec. 201. Authorization of appropriations.
Sec. 202. Amount for basic and applied research.
Sec. 203. Supplemental authorization of appropriations for fiscal year 
              2001 for research, development, test, and evaluation, 
              Defense-wide.

    Subtitle B--Program Requirements, Restrictions, and Limitations

Sec. 211. Naval surface fire support assessment.
Sec. 212. Collaborative program for development of advanced radar 
              systems.
Sec. 213. Repeal of limitations on total cost of engineering and 
              manufacturing development for F-22 aircraft program.
Sec. 214. Joint biological defense program.
Sec. 215. Cooperative Department of Defense-Department of Veterans 
              Affairs medical research program.
Sec. 216. C-5 aircraft reliability enhancement and reengining program.

                 Subtitle C--Ballistic Missile Defense

Sec. 231. Transfer of responsibility for procurement for missile 
              defense programs from Ballistic Missile Defense 
              Organization to military departments.
Sec. 232. Program elements for Ballistic Missile Defense Organization.
Sec. 233. Support of ballistic missile defense activities of the 
              Department of Defense by the national defense 
              laboratories of the Department of Energy.
Sec. 234. Missile defense testing initiative.
Sec. 235. Construction of test bed facilities for missile defense 
              system.

   Subtitle D--Air Force Science and Technology for the 21st Century

Sec. 251. Short title.
Sec. 252. Science and technology investment and development planning.
Sec. 253. Study and report on effectiveness of Air Force science and 
              technology program changes.

                       Subtitle E--Other Matters

Sec. 261. Establishment of unmanned aerial vehicle joint operational 
              test bed system.
Sec. 262. Demonstration project to increase small business and 
              university participation in Office of Naval Research 
              efforts to extend benefits of science and technology 
              research to fleet.
Sec. 263. Communication of safety concerns from operational test and 
              evaluation officials to program managers.
              Subtitle A--Authorization of Appropriations

     SEC. 201. AUTHORIZATION OF APPROPRIATIONS.

       Funds are hereby authorized to be appropriated for fiscal 
     year 2002 for the use of the Department of Defense for 
     research, development, test, and evaluation as follows:
       (1) For the Army, $6,675,325,000.
       (2) For the Navy, $10,784,264,000.
       (3) For the Air Force, $14,407,187,000.
       (4) For Defense-wide activities, $14,593,995,000, of which 
     $221,355,000 is authorized for the Director of Operational 
     Test and Evaluation.

     SEC. 202. AMOUNT FOR BASIC AND APPLIED RESEARCH.

       (a) Fiscal Year 2002.--Of the amounts authorized to be 
     appropriated by section 201, $5,070,605,000 shall be 
     available for basic research and applied research projects.
       (b) Basic Research and Applied Research Defined.--For 
     purposes of this section, the term ``basic research and 
     applied research'' means work funded in program elements for 
     defense research and development under Department of Defense 
     category 6.1 or 6.2.

     SEC. 203. SUPPLEMENTAL AUTHORIZATION OF APPROPRIATIONS FOR 
                   FISCAL YEAR 2001 FOR RESEARCH, DEVELOPMENT, 
                   TEST, AND EVALUATION, DEFENSE-WIDE.

       In addition to the funds authorized to be appropriated 
     under section 201(4) of Floyd D. Spence National Defense 
     Authorization Act for

[[Page 25187]]

     Fiscal Year 2001 (as enacted into law by Public Law 106-398; 
     114 Stat. 1654A-32), there is hereby authorized to be 
     appropriated $1,000,000 for fiscal year 2001 for the use of 
     the Department of Defense for research, development, test, 
     and evaluation, for Defense-wide activities.
    Subtitle B--Program Requirements, Restrictions, and Limitations

     SEC. 211. NAVAL SURFACE FIRE SUPPORT ASSESSMENT.

       (a) Assessment Required.--The Secretary of Defense shall 
     carry out an assessment of the requirements for naval surface 
     fire support of ground forces operating in the littoral 
     environment, including the role of an advanced fire support 
     missile system for Navy combatant vessels. The matters 
     assessed shall include the Secretary of the Navy's program 
     plan, schedule, and funding for meeting such requirements.
       (b) Report.--Not later than March 31, 2002, the Secretary 
     of Defense shall submit to the congressional defense 
     committees a report containing the results of the assessment 
     required by subsection (a).

     SEC. 212. COLLABORATIVE PROGRAM FOR DEVELOPMENT OF ADVANCED 
                   RADAR SYSTEMS.

       (a) Program Required.--The Secretary of Defense shall carry 
     out a program to develop and demonstrate advanced 
     technologies and concepts leading to advanced radar systems 
     for naval and other applications.
       (b) Description of Program.--The program under subsection 
     (a) shall be carried out collaboratively by the Director of 
     Defense Research and Engineering, the Secretary of the Navy, 
     the Director of the Defense Advanced Research Projects 
     Agency, and other appropriate elements of the Department of 
     Defense. The program shall include the following activities:
       (1) Activities needed for development and maturation of the 
     technologies for advanced electronics materials to extend the 
     range and sensitivity of radars.
       (2) Identification of acquisition systems for use of the 
     new technology.
       (c) Report.--Not later than March 31, 2002, the Director of 
     Defense Research and Engineering shall submit to the 
     congressional defense committees a report on the 
     implementation of the program under subsection (a). The 
     report shall include the following:
       (1) A description of the management plan for the program 
     and any agreements relating to that plan.
       (2) A schedule for the program.
       (3) Identification of the funding required for fiscal year 
     2003 and for the future-years defense program to carry out 
     the program.
       (4) A list of program capability goals and objectives.

     SEC. 213. REPEAL OF LIMITATIONS ON TOTAL COST OF ENGINEERING 
                   AND MANUFACTURING DEVELOPMENT FOR F-22 AIRCRAFT 
                   PROGRAM.

       (a) Repeal.--The following provisions of law are repealed:
       (1) Section 217(a) of the National Defense Authorization 
     Act for Fiscal Year 1998 (Public Law 105-85; 111 Stat. 1660).
       (2) Section 8125 of the Department of Defense 
     Appropriations Act, 2001 (Public Law 106-259; 114 Stat. 702).
       (3) Section 219(b) of the Floyd D. Spence National Defense 
     Authorization Act for Fiscal Year 2001 (as enacted into law 
     by Public Law 106-398; 114 Stat. 1654A-38).
       (b) Conforming Amendments.--(1) Section 217 of the National 
     Defense Authorization Act for Fiscal Year 1998 (Public Law 
     105-85; 111 Stat. 1660), as amended by subsection (a)(1), is 
     further amended--
       (A) in subsection (c)--
       (i) by striking ``limitations set forth in subsections (a) 
     and (b)'' and inserting ``limitation set forth in subsection 
     (b)''; and
       (ii) by striking paragraph (3); and
       (B) in subsection (d)(2), by striking subparagraphs (D) and 
     (E).
       (2) Section 131 of the National Defense Authorization Act 
     for Fiscal Year 2000 (Public Law 106-65; 113 Stat. 536) is 
     amended--
       (A) in subsection (a)(2), by striking ``That the'' and all 
     that follows through ``respectively,'' and inserting ``That 
     the production phase for that program can be executed within 
     the limitation on total cost applicable to that program under 
     subsection (b)''; and
       (B) in subsection (b)(3), by striking ``for the remainder 
     of the engineering and manufacturing development phase and''.

     SEC. 214. JOINT BIOLOGICAL DEFENSE PROGRAM.

       Section 217(a) of the Floyd D. Spence National Defense 
     Authorization Act for Fiscal Year 2001 (as enacted into law 
     by Public Law 106-398; 114 Stat. 1654A-36) is amended by 
     striking ``funds authorized to be appropriated by this Act 
     may not'' and inserting ``no funds authorized to be 
     appropriated to the Department of Defense for fiscal year 
     2002 may''.

     SEC. 215. COOPERATIVE DEPARTMENT OF DEFENSE-DEPARTMENT OF 
                   VETERANS AFFAIRS MEDICAL RESEARCH PROGRAM.

       Of the funds authorized to be appropriated by section 
     201(4), $2,500,000 shall be available for the cooperative 
     Department of Defense/Department of Veterans Affairs medical 
     research program. The Secretary of Defense shall transfer 
     such amount to the Secretary of Veterans Affairs for such 
     purpose not later than 30 days after the date of the 
     enactment of this Act.

     SEC. 216. C-5 AIRCRAFT RELIABILITY ENHANCEMENT AND REENGINING 
                   PROGRAM.

       (a) Kit Development.--The Secretary of the Air Force shall 
     ensure that engineering manufacturing and development under 
     the C-5 aircraft reliability enhancement and reengining 
     program includes kit development for at least one C-5A 
     aircraft.
       (b) Aircraft To Be Used for Kit Development.--The C-5A 
     aircraft to be used for purposes of the kit development under 
     subsection (a) shall be an aircraft from among the 74 C-5A 
     aircraft of the Air Force.
                 Subtitle C--Ballistic Missile Defense

     SEC. 231. TRANSFER OF RESPONSIBILITY FOR PROCUREMENT FOR 
                   MISSILE DEFENSE PROGRAMS FROM BALLISTIC MISSILE 
                   DEFENSE ORGANIZATION TO MILITARY DEPARTMENTS.

       (a) Budgeting of Missile Defense Procurement Authority.--
     Section 224 of title 10, United States Code is amended--
       (1) in subsection (a), by striking ``procurement'' both 
     places it appears and inserting ``research, development, 
     test, and evaluation''; and
       (2) by striking subsections (b) and (c) and inserting the 
     following:
       ``(b) Transfer Criteria.--(1) The Secretary of Defense 
     shall establish criteria for the transfer of responsibility 
     for a ballistic missile defense program from the Director of 
     the Ballistic Missile Defense Organization to the Secretary 
     of a military department. The criteria established for such a 
     transfer shall, at a minimum, address the following:
       ``(A) The technical maturity of the program.
       ``(B) The availability of facilities for production.
       ``(C) The commitment of the Secretary of the military 
     department concerned to procurement funding for that program, 
     as shown by funding through the future-years defense program 
     and other defense planning documents.
       ``(2) The Secretary shall submit the criteria established, 
     and any modifications to those criteria, to the congressional 
     defense committees.
       ``(c) Notification of Transfer.--Before responsibility for 
     a ballistic missile defense program is transferred from the 
     Director of the Ballistic Missile Defense Organization to the 
     Secretary of a military department, the Secretary of Defense 
     shall submit to the congressional defense committees notice 
     in writing of the Secretary's intent to make that transfer. 
     The Secretary shall include with such notice a certification 
     that the program has met the criteria established under 
     subsection (b) for such a transfer. The transfer may then be 
     carried out after the end of the 60-day period beginning on 
     the date of such notice.
       ``(d) Conforming Budget and Planning Transfers.--When a 
     ballistic missile defense program is transferred from the 
     Ballistic Missile Defense Organization to the Secretary of a 
     military department in accordance with this section, the 
     Secretary of Defense shall ensure that all appropriate 
     conforming changes are made to proposed or projected funding 
     allocations in the future-years defense program under section 
     221 of this title and other Department of Defense program, 
     budget, and planning documents.
       ``(e) Follow-on Research, Development, Test, and 
     Evaluation.--The Secretary of Defense shall ensure that, 
     before a ballistic missile defense program is transferred 
     from the Director of the Ballistic Missile Defense 
     Organization to the Secretary of a military department, roles 
     and responsibilities for research, development, test, and 
     evaluation related to system improvements for that program 
     are clearly defined.
       ``(f) Congressional Defense Committees.--In this section, 
     the term `congressional defense committees' means the 
     following:
       ``(1) The Committee on Armed Services and the Committee on 
     Appropriations of the Senate.
       ``(2) The Committee on Armed Services and the Committee on 
     Appropriations of the House of Representatives.''.
       (b) Clerical Amendments.--(1) The heading of that section 
     is amended to read as follows:

     ``Sec. 224. Ballistic missile defense programs: display of 
       amounts for research, development, test, and evaluation''.

       (2) The item relating to that section in the table of 
     sections at the beginning of chapter 9 of such title is 
     amended to read as follows:

``224. Ballistic missile defense programs: display of amounts for 
              research, development, test, and evaluation.''.

     SEC. 232. PROGRAM ELEMENTS FOR BALLISTIC MISSILE DEFENSE 
                   ORGANIZATION.

       (a) Revision in Program Elements.--Subsection (a) of 
     section 223 of title 10, United States Code, is amended--
       (1) by striking ``in accordance with the following program 
     elements:'' and inserting ``in accordance with program 
     elements governing functional areas as follows:''; and
       (2) by striking paragraphs (1) through (12) and inserting 
     the following:
       ``(1) Technology.
       ``(2) Ballistic Missile Defense System.
       ``(3) Terminal Defense Segment.
       ``(4) Midcourse Defense Segment.
       ``(5) Boost Defense Segment.
       ``(6) Sensors Segment.''.
       (b) Additional Requirements.--Subsection (b) of such 
     section is amended to read as follows:
       ``(b) Separate Program Elements for Programs Entering 
     Engineering and Manufacturing Development.--(1) The Secretary 
     of Defense shall ensure that each ballistic missile defense 
     program that enters engineering and manufacturing development 
     is assigned a separate, dedicated program element.
       ``(2) In this subsection, the term `engineering and 
     manufacturing development' means the development phase whose 
     primary objectives are to--
       ``(A) translate the most promising design approach into a 
     stable, interoperable, producible, supportable, and cost-
     effective design;

[[Page 25188]]

       ``(B) validate the manufacturing or production process; and
       ``(C) demonstrate system capabilities through testing.''.
       (c) Requirement for Annual Program Goals.--(1) The 
     Secretary of Defense shall each year establish cost, 
     schedule, testing, and performance goals for the ballistic 
     missile defense programs of the Department of Defense for the 
     period covered by the future-years defense program that is 
     submitted to Congress that year under section 221 of title 
     10, United States Code. Not later than February 1 each year, 
     the Secretary shall submit to the congressional defense 
     committees a statement of the goals so established.
       (2) The statement of goals submitted under paragraph (1) 
     for any year after 2002 shall be an update of the statement 
     submitted under that paragraph for the preceding year.
       (3) Each statement of goals submitted under paragraph (1) 
     shall set forth cost, schedule, testing, and performance 
     goals that pertain to each functional area program element 
     identified in subsection (a), and each program element 
     identified in subsection (b), of section 223 of title 10, 
     United States Code.
       (d) Annual Program Plan.--(1) With the submission of the 
     statement of goals under subsection (c) for any year, the 
     Secretary of Defense shall submit to the congressional 
     defense committees a program of activities planned to be 
     carried out for each missile defense program that enters 
     engineering and manufacturing development (as defined in 
     section 223(b)(2) of title 10, United States Code, as added 
     by subsection (b)).
       (2) Each program plan under paragraph (1) shall include the 
     following:
       (A) A funding profile that includes an estimate of--
       (i) the total expenditures to be made in the fiscal year in 
     which the plan is submitted and the following fiscal year, 
     together with the estimated total life-cycle costs of the 
     program; and
       (ii) a display of such expenditures (shown for significant 
     procurement, construction, and research and development) for 
     the fiscal year in which the plan is submitted and the 
     following fiscal year.
       (B) A program schedule for the fiscal year in which the 
     plan is submitted and the following fiscal year for each of 
     the following:
       (i) Significant procurement.
       (ii) Construction.
       (iii) Research and development.
       (iv) Flight tests.
       (v) Other significant testing activities.
       (3) Information specified in paragraph (2) need not be 
     included in the plan for any year under paragraph (1) to the 
     extent such information has already been provided, or will be 
     provided in the current fiscal year, in annual budget 
     justification documents of the Department of Defense 
     submitted to Congress or in other required reports to 
     Congress.
       (e) Internal DOD Reviews.--(1) The officials and elements 
     of the Department of Defense specified in paragraph (2) shall 
     on an ongoing basis--
       (A) review the development of goals under subsection (c) 
     and the annual program plan under subsection (d); and
       (B) provide to the Secretary of Defense and the Director of 
     the Ballistic Missile Defense Organization any comments on 
     such matters as considered appropriate.
       (2) Paragraph (1) applies with respect to the following:
       (A) The Under Secretary of Defense for Acquisition, 
     Technology, and Logistics.
       (B) The Director of Operational Test and Evaluation.
       (C) The Director of Program Analysis and Evaluation.
       (D) The Joint Requirements Oversight Council.
       (E) The Cost Analysis and Improvement Group.
       (f) Demonstration of Critical Technologies.--(1) The 
     Director of the Ballistic Missile Defense Organization shall 
     develop a plan for ensuring that each critical technology for 
     a missile defense program is successfully demonstrated in an 
     appropriate environment before that technology enters into 
     operational service as part of a missile defense program.
       (2) The Director of Operational Test and Evaluation of the 
     Department of Defense shall monitor the development of the 
     plan under paragraph (1) and shall submit to the Director of 
     the Ballistic Missile Defense Organization any comments 
     regarding that plan that the Director of Operational Test and 
     Evaluation considers appropriate.
       (g) Comptroller General Assessment.--(1) At the conclusion 
     of each of fiscal years 2002 and 2003, the Comptroller 
     General of the United States shall assess the extent to which 
     the Ballistic Missile Defense Organization achieved the goals 
     established under subsection (c) for such fiscal year.
       (2) Not later than February 15, 2003, and February 15, 
     2004, the Comptroller General shall submit to the 
     congressional defense committees a report on the Comptroller 
     General's assessment under paragraph (1) with respect to the 
     preceding fiscal year.
       (h) Annual OT&E Assessment of Test Program.--(1) The 
     Director of Operational Test and Evaluation shall each year 
     assess the adequacy and sufficiency of the Ballistic Missile 
     Defense Organization test program during the preceding fiscal 
     year.
       (2) Not later than February 15 each year the Director shall 
     submit to the congressional defense committees a report on 
     the assessment under paragraph (1) with respect to the 
     preceding fiscal year.

     SEC. 233. SUPPORT OF BALLISTIC MISSILE DEFENSE ACTIVITIES OF 
                   THE DEPARTMENT OF DEFENSE BY THE NATIONAL 
                   DEFENSE LABORATORIES OF THE DEPARTMENT OF 
                   ENERGY.

       (a) Funds To Carry Out Certain Ballistic Missile Defense 
     Activities.--Of the amounts authorized to be appropriated to 
     the Department of Defense pursuant to section 201(4), 
     $25,000,000 shall be available, subject to subsection (b) and 
     at the discretion of the Director of the Ballistic Missile 
     Defense Organization, for research, development, and 
     demonstration activities at the national laboratories of the 
     Department of Energy in support of the missions of the 
     Ballistic Missile Defense Organization, including the 
     following activities:
       (1) Technology development, concept demonstration, and 
     integrated testing to enhance performance, reduce risk, and 
     improve reliability in hit-to-kill interceptors for ballistic 
     missile defense.
       (2) Support for science and engineering teams to assess 
     critical technical problems and prudent alternative 
     approaches as agreed upon by the Director of the Ballistic 
     Missile Defense Organization and the Administrator for 
     Nuclear Security.
       (b) Requirement for Matching Funds From NNSA.--Funds shall 
     be available as provided in subsection (a) only if the 
     Administrator for Nuclear Security makes available matching 
     funds for the activities referred to in subsection (a).
       (c) Memorandum of Understanding.--The activities referred 
     to in subsection (a) shall be carried out under the 
     memorandum of understanding entered into by the Secretary of 
     Energy and the Secretary of Defense for the use of national 
     laboratories for ballistic missile defense programs, as 
     required by section 3131 of the National Defense 
     Authorization Act for Fiscal Year 1998 (Public Law 105-85; 
     111 Stat. 2034) and modified pursuant to section 3132 of the 
     Floyd D. Spence National Defense Authorization Act for Fiscal 
     Year 2001 (as enacted into law by Public Law 106-398; 114 
     Stat. 1654A-455) to provide for jointly funded projects.

     SEC. 234. MISSILE DEFENSE TESTING INITIATIVE.

       (a) Testing Infrastructure.--(1) The Secretary of Defense 
     shall ensure that each annual budget request of the 
     Department of Defense--
       (A) is designed to provide for comprehensive testing of 
     ballistic missile defense programs during early stages of 
     development; and
       (B) includes necessary funding to support and improve test 
     infrastructure and provide adequate test assets for the 
     testing of such programs.
       (2) The Secretary shall ensure that ballistic missile 
     defense programs incorporate, to the greatest possible 
     extent, operationally realistic test configurations (referred 
     to as ``test bed'' configurations) to demonstrate system 
     performance across a broad range of capability and, during 
     final stages of operational testing, to demonstrate reliable 
     performance.
       (3) The Secretary shall ensure that the test infrastructure 
     for ballistic missile defense programs is capable of 
     supporting continued testing of ballistic missile defense 
     systems after deployment.
       (b) Requirements for Early Stages of System Development.--
     In order to demonstrate acceptable risk and developmental 
     stability, the Secretary of Defense shall ensure that any 
     ballistic missile defense program incorporates, to the 
     maximum extent practicable, the following elements during the 
     early stages of system development:
       (1) Pursuit of parallel conceptual approaches and 
     technological paths for all critical problematic components 
     until effective and reliable solutions can be demonstrated.
       (2) Comprehensive ground testing in conjunction with 
     flight-testing for key elements of the proposed system that 
     are considered to present high risk, with such ground testing 
     to make use of existing facilities and combinations of 
     facilities that support testing at the highest possible 
     levels of integration.
       (3) Where appropriate, expenditures to enhance the 
     capabilities of existing test facilities, or to construct new 
     test facilities, to support alternative complementary test 
     methodologies.
       (4) Sufficient funding of test instrumentation to ensure 
     accurate measurement of all critical test events.
       (5) Incorporation into the program of sufficient schedule 
     flexibility and expendable test assets, including missile 
     interceptors and targets, to ensure that failed or aborted 
     tests can be repeated in a prudent, but expeditious manner.
       (6) Incorporation into flight-test planning for the 
     program, where possible, of--
       (A) methods that make the most cost-effective use of test 
     opportunities;
       (B) events to demonstrate engagement of multiple targets, 
     ``shoot-look-shoot'', and other planned operational concepts; 
     and
       (C) exploitation of opportunities to facilitate early 
     development and demonstration of ``family of systems'' 
     concepts.
       (c) Specific Requirements for Ground-Based Mid-Course 
     Interceptor Systems.--For ground-based mid-course interceptor 
     systems, the Secretary of Defense shall initiate steps during 
     fiscal year 2002 to establish a flight-test capability of 
     launching not less than three missile defense interceptors 
     and not less than two ballistic missile targets to provide a 
     realistic test infrastructure.

     SEC. 235. CONSTRUCTION OF TEST BED FACILITIES FOR MISSILE 
                   DEFENSE SYSTEM.

       (a) Authority To Acquire or Construct Facilities.--(1) The 
     Secretary of Defense, using

[[Page 25189]]

     funds appropriated to the Department of Defense for research, 
     development, test, and evaluation for fiscal years after 
     fiscal year 2001 that are available for programs of the 
     Ballistic Missile Defense Organization, may carry out all 
     construction projects, or portions of construction projects, 
     including projects for the acquisition, improvement, or 
     construction of facilities, necessary to establish and 
     operate the Missile Defense System Test Bed.
       (2) The authority provided in subsection (a) may be used to 
     acquire, improve, or construct facilities at a total cost not 
     to exceed $500,000,000.
       (b) Authority To Provide Assistance to Local Communities.--
     (1) Subject to paragraph (2), the Secretary of Defense, using 
     funds appropriated to the Department of Defense for research, 
     development, test, and evaluation for fiscal year 2002 that 
     are available for programs of the Ballistic Missile Defense 
     Organization, may provide assistance to local communities to 
     meet the need for increased municipal or community services 
     or facilities resulting from the construction, installation, 
     or operation of the Missile Defense System Test Bed 
     Facilities. Such assistance may be provided by grant or 
     otherwise.
       (2) Assistance may be provided to a community under 
     paragraph (1) only if the Secretary of Defense determines 
     that there is an immediate and substantial increase in the 
     need for municipal or community services or facilities as a 
     direct result of the construction, installation, or operation 
     of the Missile Defense System Test Bed Facilities.
   Subtitle D--Air Force Science and Technology for the 21st Century

     SEC. 251. SHORT TITLE.

       This subtitle may be cited as the ``Air Force Science and 
     Technology for the 21st Century Act''.

     SEC. 252. SCIENCE AND TECHNOLOGY INVESTMENT AND DEVELOPMENT 
                   PLANNING.

       (a) Sense of Congress.--It is the sense of Congress that 
     the Secretary of the Air Force should carry out each of the 
     following:
       (1) Continue and improve efforts to ensure that--
       (A) the Air Force science and technology community is 
     represented, and the recommendations of that community are 
     considered, at all levels of program planning and budgetary 
     decisionmaking within the Air Force;
       (B) advocacy for science and technology development is 
     institutionalized across all levels of Air Force management 
     in a manner that is not dependent on individuals; and
       (C) the value of Air Force science and technology 
     development is made increasingly apparent to the warfighters, 
     by linking the needs of those warfighters with decisions on 
     science and technology development.
       (2) Complete and adopt a policy directive that provides for 
     changes in how the Air Force makes budgetary and nonbudgetary 
     decisions with respect to its science and technology 
     development programs and how it carries out those programs.
       (3) At least once every five years, conduct a review of the 
     long-term challenges and short-term objectives of the Air 
     Force science and technology programs that is consistent with 
     the review specified in section 252 of the Floyd D. Spence 
     National Defense Authorization Act for Fiscal Year 2001 (as 
     enacted into law by Public Law 106-398; 114 Stat. 1654A-46).
       (4) Ensure that development and science and technology 
     planning and investment activities are carried out for future 
     space warfighting systems and for future nonspace warfighting 
     systems in an integrated manner.
       (5) Elevate the position within the Office of the Secretary 
     of the Air Force that has primary responsibility for budget 
     and policy decisions for science and technology programs.
       (b) Reinstatement of Development Planning.--(1) The 
     Secretary of the Air Force shall reinstate and implement a 
     revised development planning process that provides for each 
     of the following:
       (A) Coordinating the needs of Air Force warfighters with 
     decisions on science and technology development.
       (B) Giving input into the establishment of priorities among 
     science and technology programs.
       (C) Analyzing Air Force capability options for the 
     allocation of Air Force resources.
       (D) Developing concepts for technology, warfighting 
     systems, and operations with which the Air Force can achieve 
     its critical future goals.
       (E) Evaluating concepts for systems and operations that 
     leverage technology across Air Force organizational 
     boundaries.
       (F) Ensuring that a ``system-of-systems'' approach is used 
     in carrying out the various Air Force capability planning 
     exercises.
       (G) Utilizing existing analysis capabilities within the Air 
     Force product centers in a collaborative and integrated 
     manner.
       (2) Not later than one year after the date of the enactment 
     of this Act, the Secretary of the Air Force shall submit to 
     Congress a report on the implementation of the planning 
     process required by paragraph (1). The report shall include 
     the annual amount that the Secretary considers necessary to 
     carry out paragraph (1).

     SEC. 253. STUDY AND REPORT ON EFFECTIVENESS OF AIR FORCE 
                   SCIENCE AND TECHNOLOGY PROGRAM CHANGES.

       (a) Requirement.--The Secretary of the Air Force, in 
     cooperation with the National Research Council of the 
     National Academy of Sciences, shall carry out a study to 
     determine how the changes to the Air Force science and 
     technology program implemented during the past two years 
     affect the future capabilities of the Air Force.
       (b) Matters Studied.--(1) The study shall review and assess 
     whether such changes as a whole are sufficient to ensure the 
     following:
       (A) That the concerns about the management of the science 
     and technology program that have been raised by Congress, the 
     Defense Science Board, the Air Force Science Advisory Board, 
     and the Air Force Association have been adequately addressed.
       (B) That appropriate and sufficient technology is available 
     to ensure the military superiority of the United States and 
     counter future high-risk threats.
       (C) That the science and technology investments are 
     balanced to meet the near-, mid-, and long-term needs of the 
     Air Force.
       (D) That technologies are made available that can be used 
     to respond flexibly and quickly to a wide range of future 
     threats.
       (E) That the Air Force organizational structure provides 
     for a sufficiently senior level advocate of science and 
     technology to ensure an ongoing, effective presence of the 
     science and technology community during the budget and 
     planning process.
       (2) In addition, the study shall assess the specific 
     changes to the Air Force science and technology program as 
     follows:
       (A) Whether the biannual science and technology summits 
     provide sufficient visibility into, and understanding and 
     appreciation of, the value of the science and technology 
     program to the senior level of Air Force budget and policy 
     decisionmakers.
       (B) Whether the applied technology councils are effective 
     in contributing the input of all levels beneath the senior 
     leadership into the coordination, focus, and content of the 
     science and technology program.
       (C) Whether the designation of the commander of the Air 
     Force Materiel Command as the science and technology budget 
     advocate is effective to ensure that an adequate Air Force 
     science and technology budget is requested.
       (D) Whether the revised development planning process is 
     effective to aid in the coordination of the needs of the Air 
     Force warfighters with decisions on science and technology 
     investments and the establishment of priorities among 
     different science and technology programs.
       (E) Whether the implementation of section 252 of the Floyd 
     D. Spence National Defense Authorization Act for Fiscal Year 
     2001 (as enacted into law by Public Law 106-398; 114 Stat. 
     1654A-46) is effective to identify the basis for the 
     appropriate science and technology program funding level and 
     investment portfolio.
       (c) Report.--Not later than May 1, 2003, the Secretary of 
     the Air Force shall submit to Congress the results of the 
     study.
                       Subtitle E--Other Matters

     SEC. 261. ESTABLISHMENT OF UNMANNED AERIAL VEHICLE JOINT 
                   OPERATIONAL TEST BED SYSTEM.

       (a) Establishment of Test Bed System.--The commander of the 
     United States Joint Forces Command shall establish a 
     government flight activity capability (referred to as a 
     ``test bed'') within the facilities and resources of that 
     command to evaluate and ensure joint interoperability of 
     unmanned aerial vehicle systems. That capability shall be 
     independent of the military departments and shall be managed 
     directly by the Joint Forces Command.
       (b) Priority for Use of Predator Assets.--The Secretary of 
     the Navy shall ensure that the commander of the United States 
     Joint Forces Command controls the priority for use of the two 
     Predator unmanned aerial vehicles currently undergoing 
     operational testing by the Navy, together with associated 
     payloads and antennas and the associated tactical control 
     system (TCS) ground station.
       (c) Use by Joint Forces Command.--The items specified to in 
     subsection (b) may be used by the commander of the United 
     States Joint Forces Command only through the independent 
     joint operational test bed system established pursuant to 
     subsection (a) for testing of those items, including further 
     development of the associated tactical control system (TCS) 
     ground station, other aspects of unmanned aerial vehicle 
     interoperability, and participation in such experiments and 
     exercises as the commander considers appropriate to the 
     mission of that command.

     SEC. 262. DEMONSTRATION PROJECT TO INCREASE SMALL BUSINESS 
                   AND UNIVERSITY PARTICIPATION IN OFFICE OF NAVAL 
                   RESEARCH EFFORTS TO EXTEND BENEFITS OF SCIENCE 
                   AND TECHNOLOGY RESEARCH TO FLEET.

       (a) Project Required.--The Secretary of the Navy, acting 
     through the Chief of Naval Research, shall carry out a 
     demonstration project to increase access to Navy facilities 
     of small businesses and universities that are engaged in 
     science and technology research beneficial to the fleet.
       (b) Project Elements.--In carrying out the demonstration 
     project, the Secretary shall--
       (1) establish and operate a Navy Technology Extension 
     Center at a location to be selected by the Secretary;
       (2) permit participants in the Small Business Innovation 
     Research Program (SBIR) and Small Business Technology 
     Transfer Program (STTR) that are awarded contracts by the 
     Office of Naval Research to access and use Navy Major Range 
     Test Facilities Base (MRTFB) facilities selected by the 
     Secretary for purposes of carrying out such contracts, and 
     charge such participants for such access and use at the same 
     established rates that Department of Defense customers are 
     charged; and

[[Page 25190]]

       (3) permit universities, institutions of higher learning, 
     and federally funded research and development centers 
     collaborating with participants referred to in paragraph (2) 
     to access and use such facilities for such purposes, and 
     charge such entities for such access and use at such rates.
       (c) Period of Project.--The demonstration project shall be 
     carried out during the three-year period beginning on the 
     date of the enactment of this Act.
       (d) Report.--Not later than February 1, 2004, the Secretary 
     shall submit to Congress a report on the demonstration 
     project. The report shall include a description of the 
     activities carried out under the demonstration project and 
     any recommendations for the improvement or expansion of the 
     demonstration project that the Secretary considers 
     appropriate.

     SEC. 263. COMMUNICATION OF SAFETY CONCERNS FROM OPERATIONAL 
                   TEST AND EVALUATION OFFICIALS TO PROGRAM 
                   MANAGERS.

       Section 139 of title 10, United States Code, is amended--
       (1) by redesignating subsections (f) through (i) as 
     subsections (g) through (j), respectively; and
       (2) by inserting after subsection (e) the following new 
     subsection:
       ``(f) The Director shall ensure that safety concerns 
     developed during the operational test and evaluation of a 
     weapon system under a major defense acquisition program are 
     communicated in a timely manner to the program manager for 
     that program for consideration in the acquisition 
     decisionmaking process.''.
                  TITLE III--OPERATION AND MAINTENANCE

              Subtitle A--Authorization of Appropriations

Sec. 301. Operation and maintenance funding.
Sec. 302. Working capital funds.
Sec. 303. Armed Forces Retirement Home.
Sec. 304. Transfer from National Defense Stockpile Transaction Fund.
Sec. 305. Funds for renovation of Department of Veterans Affairs 
              facilities adjacent to Naval Training Center, Great 
              Lakes, Illinois.
Sec. 306. Defense Language Institute Foreign Language Center expanded 
              Arabic language program.

                  Subtitle B--Environmental Provisions

Sec. 311. Inventory of unexploded ordnance, discarded military 
              munitions, and munitions constituents at defense sites 
              (other than operational ranges).
Sec. 312. Establishment of new program element for remediation of 
              unexploded ordnance, discarded military munitions, and 
              munitions constituents.
Sec. 313. Assessment of environmental remediation of unexploded 
              ordnance, discarded military munitions, and munitions 
              constituents.
Sec. 314. Conformity of surety authority under environmental 
              restoration program with surety authority under CERCLA.
Sec. 315. Elimination of annual report on contractor reimbursement for 
              costs of environmental response actions.
Sec. 316. Pilot program for sale of air pollution emission reduction 
              incentives.
Sec. 317. Department of Defense energy efficiency program.
Sec. 318. Procurement of alternative fueled and hybrid light duty 
              trucks.
Sec. 319. Reimbursement of Environmental Protection Agency for certain 
              response costs in connection with Hooper Sands Site, 
              South Berwick, Maine.
Sec. 320. River mitigation studies.

  Subtitle C--Commissaries and Nonappropriated Fund Instrumentalities

Sec. 331. Commissary benefits for new members of the Ready Reserve.
Sec. 332. Reimbursement for use of commissary facilities by military 
              departments for purposes other than commissary sales.
Sec. 333. Public releases of commercially valuable information of 
              commissary stores.
Sec. 334. Rebate agreements with producers of foods provided under 
              special supplemental food program.
Sec. 335. Civil recovery for nonappropriated fund instrumentality costs 
              related to shoplifting.

                 Subtitle D--Workforce and Depot Issues

Sec. 341. Revision of authority to waive limitation on performance of 
              depot-level maintenance.
Sec. 342. Exclusion of certain expenditures from limitation on private 
              sector performance of depot-level maintenance.
Sec. 343. Protections for purchasers of articles and services 
              manufactured or performed by working-capital funded 
              industrial facilities of the Department of Defense.
Sec. 344. Revision of deadline for annual report on commercial and 
              industrial activities.
Sec. 345. Pilot manpower reporting system in Department of the Army.
Sec. 346. Development of Army workload and performance system and 
              Wholesale Logistics Modernization Program.

                Subtitle E--Defense Dependents Education

Sec. 351. Assistance to local educational agencies that benefit 
              dependents of members of the Armed Forces and Department 
              of Defense civilian employees.
Sec. 352. Impact aid for children with severe disabilities.
Sec. 353. Availability of auxiliary services of defense dependents' 
              education system for dependents who are home school 
              students.
Sec. 354. Comptroller General study of adequacy of compensation 
              provided for teachers in the Department of Defense 
              overseas dependents' schools.

                       Subtitle F--Other Matters

Sec. 361. Availability of excess defense personal property to support 
              Department of Veterans Affairs initiative to assist 
              homeless veterans.
Sec. 362. Incremental implementation of Navy-Marine Corps Intranet 
              contract.
Sec. 363. Comptroller General study and report of National Guard 
              Distributive Training Technology Project.
Sec. 364. Reauthorization of warranty claims recovery pilot program.
Sec. 365. Evaluation of current demonstration programs to improve 
              quality of personal property shipments of members.
Sec. 366. Sense of Congress regarding security to be provided at 2002 
              Winter Olympic Games.
              Subtitle A--Authorization of Appropriations

     SEC. 301. OPERATION AND MAINTENANCE FUNDING.

       (a) Authorization of Appropriations.--Funds are hereby 
     authorized to be appropriated for fiscal year 2002 for the 
     use of the Armed Forces and other activities and agencies of 
     the Department of Defense for expenses, not otherwise 
     provided for, for operation and maintenance, in amounts as 
     follows:
       (1) For the Army, $20,653,241,000.
       (2) For the Navy, $26,461,299,000.
       (3) For the Marine Corps, $2,872,524,000.
       (4) For the Air Force, $25,598,767,000.
       (5) For Defense-wide activities, $11,949,586,000.
       (6) For the Army Reserve, $1,824,146,000.
       (7) For the Naval Reserve, $1,000,050,000.
       (8) For the Marine Corps Reserve, $142,853,000.
       (9) For the Air Force Reserve, $2,029,866,000.
       (10) For the Army National Guard, $3,696,559,000.
       (11) For the Air National Guard, $3,967,361,000.
       (12) For the Defense Inspector General, $149,221,000.
       (13) For the United States Court of Appeals for the Armed 
     Forces, $9,096,000.
       (14) For Environmental Restoration, Army, $389,800,000.
       (15) For Environmental Restoration, Navy, $257,517,000.
       (16) For Environmental Restoration, Air Force, 
     $385,437,000.
       (17) For Environmental Restoration, Defense-wide, 
     $23,492,000.
       (18) For Environmental Restoration, Formerly Used Defense 
     Sites, $230,255,000.
       (19) For Overseas Humanitarian, Disaster, and Civic Aid 
     programs, $49,700,000.
       (20) For Drug Interdiction and Counter-drug Activities, 
     Defense-wide, $820,381,000.
       (21) For the Kaho'olawe Island Conveyance, Remediation, and 
     Environmental Restoration Trust Fund, $40,000,000.


       (22) For Defense Health Program, $17,570,750,000.
       (23) For Cooperative Threat Reduction programs, 
     $403,000,000.
       (24) For Overseas Contingency Operations Transfer Fund, 
     $2,844,226,000.
       (25) For Support for International Sporting Competitions, 
     Defense, $15,800,000.
       (b) Adjustment.--The total amount authorized to be 
     appropriated pursuant to paragraphs (1) through (5) of 
     subsection (a) is the sum of the amounts authorized to be 
     appropriated in such paragraphs, reduced by $125,000,000, 
     which represents savings resulting from reduced energy costs.

     SEC. 302. WORKING CAPITAL FUNDS.

       Funds are hereby authorized to be appropriated for fiscal 
     year 2002 for the use of the Armed Forces and other 
     activities and agencies of the Department of Defense for 
     providing capital for working capital and revolving funds in 
     amounts as follows:
       (1) For the Defense Working Capital Funds, $1,557,686,000.
       (2) For the National Defense Sealift Fund, $407,708,000.

     SEC. 303. ARMED FORCES RETIREMENT HOME.

       (a) Amount for Fiscal Year 2002.--There is hereby 
     authorized to be appropriated for fiscal year 2002 from the 
     Armed Forces Retirement Home Trust Fund the sum of 
     $71,440,000 for the operation of the Armed Forces Retirement 
     Home.
       (b) Availability of Amounts Previously Appropriated.--Of 
     amounts appropriated from the Armed Forces Retirement Home 
     Trust Fund for fiscal year 2002 (and previous fiscal years to 
     the extent such amounts remain unobligated), $22,400,000 
     shall be available, subject to the review and approval of the 
     Secretary of Defense, for the development and construction of 
     a blended use, multicare facility at the Naval Home and for 
     the acquisition of a parcel of real property adjacent to the 
     Naval Home consisting of approximately 15 acres.

     SEC. 304. TRANSFER FROM NATIONAL DEFENSE STOCKPILE 
                   TRANSACTION FUND.

       (a) Transfer Authority.--To the extent provided in 
     appropriations Acts, not more than

[[Page 25191]]

     $150,000,000 is authorized to be transferred from the 
     National Defense Stockpile Transaction Fund to operation and 
     maintenance accounts for fiscal year 2002 in amounts as 
     follows:
       (1) For the Army, $50,000,000.
       (2) For the Navy, $50,000,000.
       (3) For the Air Force, $50,000,000.
       (b) Treatment of Transfers.--Amounts transferred under this 
     section--
       (1) shall be merged with, and be available for the same 
     purposes and the same period as, the amounts in the accounts 
     to which transferred; and
       (2) may not be expended for an item that has been denied 
     authorization of appropriations by Congress.
       (c) Relationship to Other Transfer Authority.--The transfer 
     authority provided in this section is in addition to the 
     transfer authority provided in section 1001.

     SEC. 305. FUNDS FOR RENOVATION OF DEPARTMENT OF VETERANS 
                   AFFAIRS FACILITIES ADJACENT TO NAVAL TRAINING 
                   CENTER, GREAT LAKES, ILLINOIS.

       (a) Availability of Funds for Renovation.--Subject to 
     subsection (b), of the amount authorized to be appropriated 
     by section 301(a)(2) for operation and maintenance for the 
     Navy, the Secretary of the Navy may make available to the 
     Secretary of Veterans Affairs up to $2,000,000 for relocation 
     of Department of Veterans Affairs activities and associated 
     renovation of existing facilities at the North Chicago 
     Department of Veterans Affairs Medical Center, Illinois.
       (b) Limitation.--The Secretary of the Navy may make funds 
     available under subsection (a) only after the Secretary of 
     the Navy and the Secretary of Veterans Affairs enter into an 
     appropriate agreement for the use by the Secretary of the 
     Navy of approximately 48 acres of real property at the North 
     Chicago Department of Veterans Affairs property referred to 
     in subsection (a) for expansion of the Naval Training Center, 
     Great Lakes, Illinois.

     SEC. 306. DEFENSE LANGUAGE INSTITUTE FOREIGN LANGUAGE CENTER 
                   EXPANDED ARABIC LANGUAGE PROGRAM.

       Of the amount authorized to be appropriated by section 
     301(a)(1) for operation and maintenance for the Army, 
     $650,000 may be available for the Defense Language Institute 
     Foreign Language Center for an expanded Arabic language 
     program.
                  Subtitle B--Environmental Provisions

     SEC. 311. INVENTORY OF UNEXPLODED ORDNANCE, DISCARDED 
                   MILITARY MUNITIONS, AND MUNITIONS CONSTITUENTS 
                   AT DEFENSE SITES (OTHER THAN OPERATIONAL 
                   RANGES).

       (a) Inventory Required.--(1) Chapter 160 of title 10, 
     United States Code, is amended by adding at the end the 
     following new section:

     ``Sec. 2710. Inventory of unexploded ordnance, discarded 
       military munitions, and munitions constituents at defense 
       sites (other than operational ranges)

       ``(a) Inventory Required.--(1) The Secretary of Defense 
     shall develop and maintain an inventory of defense sites that 
     are known or suspected to contain unexploded ordnance, 
     discarded military munitions, or munitions constituents.
       ``(2) The information in the inventory for each defense 
     site shall include, at a minimum, the following:
       ``(A) A unique identifier for the defense site.
       ``(B) An appropriate record showing the location, 
     boundaries, and extent of the defense site, including 
     identification of the State and political subdivisions of the 
     State in which the defense site is located and any Tribal 
     lands encompassed by the defense site.
       ``(C) Known persons and entities, other than a military 
     department, with any current ownership interest or control of 
     lands encompassed by the defense site.
       ``(D) Any restrictions or other land use controls currently 
     in place at the defense site that might affect the potential 
     for public and environmental exposure to the unexploded 
     ordnance, discarded military munitions, or munitions 
     constituents.
       ``(b) Site Prioritization.--(1) The Secretary shall 
     develop, in consultation with representatives of the States 
     and Indian Tribes, a proposed protocol for assigning to each 
     defense site a relative priority for response activities 
     related to unexploded ordnance, discarded military munitions, 
     and munitions constituents based on the overall conditions at 
     the defense site. After public notice and comment on the 
     proposed protocol, the Secretary shall issue a final protocol 
     and shall apply the protocol to defense sites listed on the 
     inventory. The level of response priority assigned the site 
     shall be included with the information required by subsection 
     (a)(2).
       ``(2) In assigning the response priority for a defense site 
     on the inventory, the Secretary shall primarily consider 
     factors relating to safety and environmental hazard 
     potential, such as the following:
       ``(A) Whether there are known, versus suspected, unexploded 
     ordnance, discarded military munitions, or munitions 
     constituents on all or any portion of the defense site and 
     the types of unexploded ordnance, discarded military 
     munitions, or munitions constituents present or suspected to 
     be present.
       ``(B) Whether public access to the defense site is 
     controlled, and the effectiveness of these controls.
       ``(C) The potential for direct human contact with 
     unexploded ordnance, discarded military munitions, or 
     munitions constituents at the defense site and evidence of 
     people entering the site.
       ``(D) Whether a response action has been or is being 
     undertaken at the defense site under the Formerly Used 
     Defense Sites program or other program.
       ``(E) The planned or mandated dates for transfer of the 
     defense site from military control.
       ``(F) The extent of any documented incidents involving 
     unexploded ordnance, discarded military munitions, or 
     munitions constituents at or from the defense site, including 
     incidents involving explosions, discoveries, injuries, 
     reports, and investigations.
       ``(G) The potential for drinking water contamination or the 
     release of munitions constituents into the air.
       ``(H) The potential for destruction of sensitive ecosystems 
     and damage to natural resources.
       ``(3) The priority assigned to a defense site included on 
     the inventory shall not impair, alter, or diminish any 
     applicable Federal or State authority to establish 
     requirements for the investigation of, and response to, 
     environmental problems at the defense site.
       ``(c) Updates and Availability.--(1) The Secretary shall 
     annually update the inventory and site prioritization list to 
     reflect new information that becomes available. The inventory 
     shall be available in published and electronic form.
       ``(2) The Secretary shall work with communities adjacent to 
     a defense site to provide information concerning conditions 
     at the site and response activities. At a minimum, the 
     Secretary shall provide the site inventory information and 
     site prioritization list to appropriate Federal, State, 
     tribal, and local officials, and, to the extent the Secretary 
     considers appropriate, to civil defense or emergency 
     management agencies and the public.
       ``(d) Exceptions.--This section does not apply to the 
     following:
       ``(1) Any locations outside the United States.
       ``(2) The presence of military munitions resulting from 
     combat operations.
       ``(3) Operating storage and manufacturing facilities.
       ``(4) Operational ranges.
       ``(e) Definitions.--In this section:
       ``(1) The term `defense site' applies to locations that are 
     or were owned by, leased to, or otherwise possessed or used 
     by the Department of Defense. The term does not include any 
     operational range, operating storage or manufacturing 
     facility, or facility that is used for or was permitted for 
     the treatment or disposal of military munitions.
       ``(2) The term `discarded military munitions' means 
     military munitions that have been abandoned without proper 
     disposal or removed from storage in a military magazine or 
     other storage area for the purpose of disposal. The term does 
     not include unexploded ordnance, military munitions that are 
     being held for future use or planned disposal, or military 
     munitions that have been properly disposed of, consistent 
     with applicable environmental laws and regulations.
       ``(3)(A) The term `military munitions' means all ammunition 
     products and components produced for or used by the armed 
     forces for national defense and security, including 
     ammunition products or components under the control of the 
     Department of Defense, the Coast Guard, the Department of 
     Energy, and the National Guard. The term includes confined 
     gaseous, liquid, and solid propellants, explosives, 
     pyrotechnics, chemical and riot control agents, smokes, and 
     incendiaries, including bulk explosives and chemical warfare 
     agents, chemical munitions, rockets, guided and ballistic 
     missiles, bombs, warheads, mortar rounds, artillery 
     ammunition, small arms ammunition, grenades, mines, 
     torpedoes, depth charges, cluster munitions and dispensers, 
     demolition charges, and devices and components thereof.
       ``(B) The term does not include wholly inert items, 
     improvised explosive devices, and nuclear weapons, nuclear 
     devices, and nuclear components, except that the term does 
     include nonnuclear components of nuclear devices that are 
     managed under the nuclear weapons program of the Department 
     of Energy after all required sanitization operations under 
     the Atomic Energy Act of 1954 (42 U.S.C. 2011 et seq.) have 
     been completed.
       ``(4) The term `munitions constituents' means any materials 
     originating from unexploded ordnance, discarded military 
     munitions, or other military munitions, including explosive 
     and nonexplosive materials, and emission, degradation, or 
     breakdown elements of such ordnance or munitions.
       ``(5) The term `operational range' means a military range 
     that is used for range activities, or a military range that 
     is not currently being used, but that is still considered by 
     the Secretary to be a range area, is under the jurisdiction, 
     custody, or control of the Department of Defense, and has not 
     been put to a new use that is incompatible with range 
     activities.
       ``(6) The term `possessions' includes Johnston Atoll, 
     Kingman Reef, Midway Island, Nassau Island, Palmyra Island, 
     and Wake Island.
       ``(7) The term `Secretary' means the Secretary of Defense.
       ``(8) The term `State' means the several States, the 
     District of Columbia, the Commonwealth of Puerto Rico, the 
     Commonwealth of the Northern Mariana Islands, and the 
     territories and possessions.
       ``(9) The term `unexploded ordnance' means military 
     munitions that--
       ``(A) have been primed, fused, armed, or otherwise prepared 
     for action;
       ``(B) have been fired, dropped, launched, projected, or 
     placed in such a manner as to constitute a hazard to 
     operations, installations, personnel, or material; and

[[Page 25192]]

       ``(C) remain unexploded either by malfunction, design, or 
     any other cause.
       ``(10) The term `United States', in a geographic sense, 
     means the States, territories, and possessions and associated 
     navigable waters, contiguous zones, and ocean waters of which 
     the natural resources are under the exclusive management 
     authority of the United States.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by adding at the end the following new item:

``2710. Inventory of unexploded ordnance, discarded military munitions, 
              and munitions constituents at defense sites (other than 
              operational ranges).''.
       (b) Initial Inventory.--The requirements of section 2710 of 
     title 10, United States Code, as added by subsection (a), 
     shall be implemented as follows:
       (1) The initial inventory required by subsection (a) of 
     such section shall be completed not later than May 31, 2003.
       (2) The proposed prioritization protocol required by 
     subsection (b) of such section shall be available for public 
     comment not later than November 30, 2002.

     SEC. 312. ESTABLISHMENT OF NEW PROGRAM ELEMENT FOR 
                   REMEDIATION OF UNEXPLODED ORDNANCE, DISCARDED 
                   MILITARY MUNITIONS, AND MUNITIONS CONSTITUENTS.

       Section 2703 of title 10, United States Code, is amended--
       (1) by redesignating subsections (b) through (f) as 
     subsections (c) through (g), respectively; and
       (2) by inserting after subsection (a) the following new 
     subsection (b):
       ``(b) Program Elements for Ordnance Remediation.--The 
     Secretary of Defense shall establish a program element for 
     remediation of unexploded ordnance, discarded military 
     munitions, and munitions constituents within each 
     environmental restoration account established under 
     subsection (a). The terms `unexploded ordnance', `discarded 
     military munitions', and `munitions constituents' have the 
     meanings given such terms in section 2710 of this title.''.

     SEC. 313. ASSESSMENT OF ENVIRONMENTAL REMEDIATION OF 
                   UNEXPLODED ORDNANCE, DISCARDED MILITARY 
                   MUNITIONS, AND MUNITIONS CONSTITUENTS.

       (a) Inclusion in 2003 Report on Environmental Restoration 
     Activities.--The Secretary of Defense shall include in the 
     report submitted to Congress under section 2706(a) of title 
     10, United States Code, in 2003 a comprehensive assessment of 
     unexploded ordnance, discarded military munitions, and 
     munitions constituents located at current and former 
     facilities of the Department of Defense. The assessment shall 
     include, at a minimum, the following:
       (1) Separate estimates of the aggregate projected costs of 
     the remediation of unexploded ordnance, discarded military 
     munitions, and munitions constituents at--
       (A) all operational ranges; and
       (B) all other defense sites.
       (2) A comprehensive plan for addressing the remediation of 
     unexploded ordinance, discarded military munitions, and 
     munitions constituents at defense sites, including an 
     assessment of the funding required and the period of time 
     over which such funding will be required.
       (3) An assessment of the technology currently available for 
     the remediation of unexploded ordnance, discarded military 
     munitions, and munitions constituents.
       (4) An assessment of the impact of improved technology on 
     the cost of such remediation and a plan for the development 
     and use of such improved technology.
       (b) Requirements for Cost Estimates.--(1) The estimates of 
     aggregate projected costs required by subsection (a)(1) 
     shall--
       (A) be stated as a range of aggregate projected costs, 
     including a low estimate and a high estimate;
       (B) set forth the differing assumptions underlying each 
     such low estimate and high estimate, including--
       (i) any public uses for the operational ranges and other 
     defense sites concerned that will be available after the 
     remediation is completed;
       (ii) the extent of the remediation required to make the 
     operational ranges and other defense sites concerned 
     available for such uses; and
       (iii) the technologies to be applied to achieve such level 
     of remediation; and
       (C) include, and identify separately, an estimate of the 
     aggregate projected costs of the remediation of any ground 
     water contamination that may be caused by unexploded 
     ordnance, discarded military munitions, or munitions 
     constituents at the operational ranges and other defense 
     sites concerned.
       (2) The high estimate of the aggregate projected costs 
     shall be based on the assumption that all unexploded 
     ordnance, discarded military munitions, and munitions 
     constituents at each operational range and other defense site 
     will be addressed, regardless of whether there are any 
     current plans to close the range or site or discontinue 
     training at the range or site.
       (3) The estimate of the aggregate projected costs of 
     remediation of ground water contamination under paragraph 
     (1)(C) shall be based on a comprehensive assessment of the 
     risk of such contamination and of the actions required to 
     protect the ground water supplies concerned.
       (4) The standards for the report of liabilities of the 
     Department of Defense shall not apply to the cost estimates 
     required by subsection (a)(1).
       (c) Interim Assessment.--The report submitted to Congress 
     under section 2706(a) of title 10, United States Code, in 
     2002 shall include the assessment required by subsection (a) 
     to the extent that the information required to be provided as 
     part of the assessment is available. The Secretary shall 
     include an explanation of any limitations on the information 
     available or qualifications on the information provided.
       (d) Definitions.--In this section, the terms ``unexploded 
     ordnance'', ``discarded military munitions'', ``munitions 
     constituents'', ``operational range'', and ``defense site'' 
     have the meanings given such terms in section 2710 of title 
     10, United States Code, as added by section 311.

     SEC. 314. CONFORMITY OF SURETY AUTHORITY UNDER ENVIRONMENTAL 
                   RESTORATION PROGRAM WITH SURETY AUTHORITY UNDER 
                   CERCLA.

       Section 2701(j)(1) of title 10, United States Code, is 
     amended by striking ``, or after December 31, 1999''.

     SEC. 315. ELIMINATION OF ANNUAL REPORT ON CONTRACTOR 
                   REIMBURSEMENT FOR COSTS OF ENVIRONMENTAL 
                   RESPONSE ACTIONS.

       (a) Report Elimination.--Section 2706 of title 10, United 
     States Code, is amended--
       (1) by striking subsection (c); and
       (2) by redesignating subsections (d) and (e) as subsections 
     (c) and (d), respectively.
       (b) Conforming Amendments.--Subsection (d) of such section, 
     as redesignated by subsection (a) of this section, is 
     amended--
       (1) by striking paragraphs (1) and (3); and
       (2) by redesignating paragraphs (2), (4), and (5) as 
     paragraphs (1), (2), and (3), respectively.

     SEC. 316. PILOT PROGRAM FOR SALE OF AIR POLLUTION EMISSION 
                   REDUCTION INCENTIVES.

       (a) Extension.--Section 351(a)(2) of the National Defense 
     Authorization Act for Fiscal Year 1998 (Public Law 105-85; 10 
     U.S.C. 2701 note) is amended by striking ``September 30, 
     2001'' and inserting ``September 30, 2003''.
       (b) Report Required.--(1) The Secretary of Defense shall 
     prepare a report concerning the operation of the pilot 
     program for the sale of economic incentives for the reduction 
     of emission of air pollutants attributable to military 
     facilities, as authorized by section 351 of the National 
     Defense Authorization Act for Fiscal Year 1998 (Public Law 
     105-85; 10 U.S.C. 2701 note). The report shall--
       (A) detail all transactions that have been completed under 
     the pilot program, the dollar amount of each transaction, and 
     the number and type of air pollutants involved in each 
     transaction;
       (B) evaluate the extent to which retention of the proceeds 
     of sales under the pilot program, as required by subsection 
     (c) of such section, has provided incentives for such sales;
       (C) evaluate the extent of any loss to the United States 
     Treasury associated with the pilot program; and
       (D) evaluate the environmental impact of the pilot program.
       (2) Not later than March 1, 2003, the Secretary shall 
     submit the report required by paragraph (1) to the Committee 
     on Energy and Commerce and the Committee on Armed Services of 
     the House of Representatives and the Committee on Environment 
     and Public Works and the Committee on Armed Services of the 
     Senate.

     SEC. 317. DEPARTMENT OF DEFENSE ENERGY EFFICIENCY PROGRAM.

       (a) Sense of Congress.--It is the sense of Congress that 
     the Secretary of Defense should work to implement fuel 
     efficiency reforms that allow for investment decisions based 
     on the true cost of delivered fuel, strengthen the linkage 
     between warfighting capability and fuel logistics 
     requirements, provide high-level leadership encouraging fuel 
     efficiency, target fuel efficiency improvements through 
     science and technology investment, and include fuel 
     efficiency in requirements and acquisition processes.
       (b) Energy Efficiency Program.--The Secretary shall carry 
     out a program to significantly improve the energy efficiency 
     of facilities of the Department of Defense through 2010. The 
     Secretary shall designate a senior official of the Department 
     of Defense to be responsible for managing the program for the 
     Department and a senior official of each military department 
     to be responsible for managing the program for such 
     department.
       (c) Energy Efficiency Goals.--The goal of the energy 
     efficiency program shall be to achieve reductions in energy 
     consumption by facilities of the Department of Defense as 
     follows:
       (1) In the case of industrial and laboratory facilities, 
     reductions in the average energy consumption per square foot 
     of such facilities, per unit of production or other 
     applicable unit, relative to energy consumption in 1990--
       (A) by 20 percent by 2005; and
       (B) by 25 percent by 2010.
       (2) In the case of other facilities, reductions in average 
     energy consumption per gross square foot of such facilities, 
     relative to energy consumption per gross square foot in 
     1985--
       (A) by 30 percent by 2005; and
       (B) by 35 percent by 2010.
       (d) Strategies for Improving Energy Efficiency.--In order 
     to achieve the goals set forth in subsection (c), the 
     Secretary shall, to the maximum extent practicable--
       (1) purchase energy-efficient products, as so designated by 
     the Environmental Protection Agency and the Department of 
     Energy, and other products that are energy-efficient;
       (2) utilize energy savings performance contracts, utility 
     energy-efficiency service contracts, and other contracts 
     designed to achieve energy conservation;

[[Page 25193]]

       (3) use life-cycle cost analysis, including assessment of 
     life-cycle energy costs, in making decisions about 
     investments in products, services, construction, and other 
     projects;
       (4) conduct energy efficiency audits for approximately 10 
     percent of all Department of Defense facilities each year;
       (5) explore opportunities for energy efficiency in 
     industrial facilities for steam systems, boiler operation, 
     air compressor systems, industrial processes, and fuel 
     switching; and
       (6) retire inefficient equipment on an accelerated basis 
     where replacement results in lower life-cycle costs.
       (e) Reporting Requirements.--Not later than January 1, 
     2002, and each January 1 thereafter through 2010, the 
     Secretary shall submit to the congressional defense 
     committees the report required to be prepared by the 
     Secretary pursuant to section 303 of Executive Order 13123 
     (64 Fed. Reg. 30851; 42 U.S.C. 8251 note) regarding the 
     progress made toward achieving the energy efficiency goals of 
     the Department of Defense.

     SEC. 318. PROCUREMENT OF ALTERNATIVE FUELED AND HYBRID LIGHT 
                   DUTY TRUCKS.

       (a) Defense Fleets Not Covered by Requirement in Energy 
     Policy Act of 1992.--(1) The Secretary of Defense shall 
     coordinate with the Administrator of General Services to 
     ensure that only hybrid vehicles are procured by the 
     Administrator for the Department of Defense fleet of light 
     duty trucks that is not in a fleet of vehicles to which 
     section 303 of the Energy Policy Act of 1992 (42 U.S.C. 
     13212) applies.
       (2) The Secretary, in consultation with the Administrator, 
     may waive the policy regarding the procurement of hybrid 
     vehicles in paragraph (1) to the extent that the Secretary 
     determines necessary--
       (A) in the case of trucks that are exempt from the 
     requirements of section 303 of the Energy Policy Act of 1992 
     for national security reasons under subsection (b)(3)(E) of 
     such section, to meet specific requirements of the Department 
     of Defense for capabilities of light duty trucks;
       (B) to procure vehicles consistent with the standards 
     applicable to the procurement of fleet vehicles for the 
     Federal Government; or
       (C) to adjust to limitations on the commercial availability 
     of light duty trucks that are hybrid vehicles.
       (3) This subsection applies with respect to procurements of 
     light duty trucks in fiscal year 2005 and subsequent fiscal 
     years.
       (b) Requirement To Exceed Requirement in Energy Policy Act 
     of 1992.--(1) The Secretary of Defense shall coordinate with 
     the Administrator of General Services to ensure that, of the 
     light duty trucks procured in fiscal years after fiscal year 
     2004 for the fleets of light duty vehicles of the Department 
     of Defense to which section 303 of the Energy Policy Act of 
     1992 applies--
       (A) five percent of the total number of such trucks that 
     are procured in each of fiscal years 2005 and 2006 are 
     alternative fueled vehicles or hybrid vehicles; and
       (B) ten percent of the total number of such trucks that are 
     procured in each fiscal year after fiscal year 2006 are 
     alternative fueled vehicles or hybrid vehicles.
       (2) Light duty trucks acquired for the Department of 
     Defense that are counted to comply with section 303 of the 
     Energy Policy Act of 1992 for a fiscal year shall be counted 
     to determine the total number of light duty trucks procured 
     for the Department of Defense for that fiscal year for the 
     purposes of paragraph (1), but shall not be counted to 
     satisfy the requirement in that paragraph.
       (c) Report on Plans for Implementation.--At the same time 
     that the President submits the budget for fiscal year 2003 to 
     Congress under section 1105(a) of title 31, United States 
     Code, the Secretary shall submit to Congress a report 
     summarizing the plans for carrying out subsections (a) and 
     (b).
       (d) Definitions.--In this section:
       (1) The term ``hybrid vehicle'' means a motor vehicle that 
     draws propulsion energy from onboard sources of stored energy 
     that are both--
       (A) an internal combustion or heat engine using combustible 
     fuel; and
       (B) a rechargeable energy storage system.
       (2) The term ``alternative fueled vehicle'' has the meaning 
     given that term in section 301 of the Energy Policy Act of 
     1992 (42 U.S.C. 13211).

     SEC. 319. REIMBURSEMENT OF ENVIRONMENTAL PROTECTION AGENCY 
                   FOR CERTAIN RESPONSE COSTS IN CONNECTION WITH 
                   HOOPER SANDS SITE, SOUTH BERWICK, MAINE.

       (a) Authority To Reimburse.--Using amounts specified in 
     subsection (c), the Secretary of the Navy may pay $1,005,478 
     to the Hooper Sands Special Account within the Hazardous 
     Substance Superfund established by section 9507 of the 
     Internal Revenue Code of 1986 to reimburse the Environmental 
     Protection Agency for the response costs incurred by the 
     Environmental Protection Agency for actions taken between May 
     12, 1992, and July 31, 2000, pursuant to the Comprehensive 
     Environmental Response, Compensation, and Liability Act of 
     1980 (42 U.S.C. 9601 et seq.) at the Hooper Sands site in 
     South Berwick, Maine, in accordance with the interagency 
     agreement entered into by the Department of the Navy and the 
     Environmental Protection Agency in January 2001.
       (b) Treatment of Reimbursement.--Payment of the amount 
     authorized by subsection (a) shall be in full satisfaction of 
     amounts due from the Department of the Navy to the 
     Environmental Protection Agency for the response costs 
     described in that subsection.
       (c) Source of Funds.--Payment under subsection (a) shall be 
     made using amounts authorized to be appropriated by section 
     301(a)(15) to the Environmental Restoration Account, Navy, 
     established by section 2703(a)(3) of title 10, United States 
     Code.

     SEC. 320. RIVER MITIGATION STUDIES.

       (a) Port of Orange, Sabine River.--The Secretary of Defense 
     may conduct a study regarding protruding structures and 
     submerged objects remaining from the World War II Navy ship 
     building industry located at the former Navy installation in 
     Orange, Texas, which create navigational hazards along the 
     Sabine River and surrounding the Port of Orange.
       (b) Philadelphia Naval Shipyard, Delaware River.--The 
     Secretary of Defense may conduct a study regarding floating 
     and partially submerged debris possibly relating to the 
     Philadelphia Naval Shipyard in that portion of the Delaware 
     River from Philadelphia, Pennsylvania, to the mouth of the 
     river which create navigational hazards along the river.
       (c) Use of Existing Information.--In conducting a study 
     authorized by this section, the Secretary of Defense shall 
     take into account any information available from other 
     studies conducted in connection with the same navigation 
     channels.
       (d) Consultation.--The Secretary of Defense shall conduct 
     the studies authorized by this section in consultation with 
     appropriate State and local government entities and Federal 
     agencies.
       (e) Report on Study Results.--Not later than April 30, 
     2002, the Secretary of Defense shall submit to the Committee 
     on Armed Services of the House of Representatives and the 
     Committee on Armed Services of the Senate a report that--
       (1) summarizes the results of each study conducted under 
     this section; and
       (2) contains an evaluation by the Secretary of the extent 
     to which the navigational hazards identified in each study 
     are the result of Department of Defense activities.
       (f) Cost Sharing.--Nothing in this section is intended to 
     require non-Federal cost sharing of the costs incurred by the 
     Secretary of Defense to conduct a study authorized by this 
     section.
       (g) Relation to Other Laws and Agreements.--This section is 
     not intended to modify any authorities provided to the 
     Secretary of the Army by the Water Resources Development Act 
     of 1986 (33 U.S.C. 2201 et seq.), nor is it intended to 
     modify any non-Federal cost-sharing responsibilities outlined 
     in any local cooperation agreements.
  Subtitle C--Commissaries and Nonappropriated Fund Instrumentalities

     SEC. 331. COMMISSARY BENEFITS FOR NEW MEMBERS OF THE READY 
                   RESERVE.

       (a) Eligibility.--Section 1063 of title 10, United States 
     Code, is amended--
       (1) by redesignating subsections (b) and (c) as subsections 
     (c) and (d), respectively; and
       (2) by inserting after subsection (a) the following new 
     subsection (b):
       ``(b) Eligibility of New Members.--(1) The Secretary 
     concerned shall authorize a new member of the Ready Reserve 
     to use commissary stores of the Department of Defense for a 
     number of days accruing at the rate of two days for each 
     month in which the member participates satisfactorily in 
     training required under section 10147(a)(1) of this title or 
     section 502(a) of title 32, as the case may be.
       ``(2) For the purposes of paragraph (1), a person shall be 
     considered a new member of the Ready Reserve upon becoming a 
     member and continuing without a break in the membership until 
     the earlier of--
       ``(A) the date on which the member becomes eligible to use 
     commissary stores under subsection (a); or
       ``(B) December 31 of the first calendar year in which the 
     membership has been continuous for the entire year.
       ``(3) A new member may not be authorized under this 
     subsection to use commissary stores for more than 24 days for 
     any calendar year.''.
       (b) Required Documentation.--Subsection (d) of such 
     section, as redesignated by subsection (a)(1), is amended by 
     adding at the end the following new sentence: ``The 
     regulations shall specify the required documentation of 
     satisfactory participation in training for the purposes of 
     subsection (b).''.
       (c) Conforming Amendment.--Subsection (c) of such section, 
     as redesignated by subsection (a)(1), is amended by striking 
     ``Subsection (a)'' and inserting ``Subsections (a) and (b)''.
       (d) Clerical Amendments.--(1) The heading for such section 
     is amended to read as follows:

     ``Sec. 1063. Use of commissary stores: members of Ready 
       Reserve''.

       (2) Subsection (a) of such section is amended by striking 
     ``of Ready Reserve'' and inserting ``With 50 or More 
     Creditable Points''.
       (3) The item relating to such section in the table of 
     sections at the beginning of chapter 54 of title 10, United 
     States Code, is amended to read as follows:

``1063. Use of commissary stores: members of Ready Reserve.''.

     SEC. 332. REIMBURSEMENT FOR USE OF COMMISSARY FACILITIES BY 
                   MILITARY DEPARTMENTS FOR PURPOSES OTHER THAN 
                   COMMISSARY SALES.

       (a) Requirement.--Chapter 147 of title 10, United States 
     Code, is amended by inserting after section 2482a the 
     following new section:

     ``Sec. 2483. Commissary stores: reimbursement for use of 
       commissary facilities by military departments

       ``(a) Payment Required.--The Secretary of a military 
     department shall pay the Defense Commissary Agency the amount 
     determined under

[[Page 25194]]

     subsection (b) for any use of a commissary facility by the 
     military department for a purpose other than commissary sales 
     or operations in support of commissary sales.
       ``(b) Amount.--The amount payable under subsection (a) for 
     use of a commissary facility by a military department shall 
     be equal to the share of depreciation of the facility that is 
     attributable to that use, as determined under regulations 
     prescribed by the Secretary of Defense.
       ``(c) Covered Facilities.--This section applies with 
     respect to a commissary facility that is acquired, 
     constructed, converted, expanded, installed, or otherwise 
     improved (in whole or in part) with the proceeds of an 
     adjustment or surcharge applied under section 2486(c) of this 
     title.
       ``(d) Crediting of Payments.--The Director of the Defense 
     Commissary Agency shall credit amounts paid under this 
     section for use of a facility to an appropriate account to 
     which proceeds of an adjustment or surcharge referred to in 
     subsection (c) are credited.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of such chapter is amended by inserting after the 
     item relating to section 2482a the following new item:

``2483. Commissary stores: reimbursement for use of commissary 
              facilities by military departments.''.

     SEC. 333. PUBLIC RELEASES OF COMMERCIALLY VALUABLE 
                   INFORMATION OF COMMISSARY STORES.

       (a) Limitations and Authority.--Section 2487 of title 10, 
     United States Code, is amended to read as follows:

     ``Sec. 2487. Commissary stores: release of certain 
       commercially valuable information to the public

       ``(a) Authority To Limit Release.--(1) The Secretary of 
     Defense may limit the release to the public of any 
     information described in paragraph (2) if the Secretary 
     determines that it is in the best interest of the Department 
     of Defense to limit the release of such information. If the 
     Secretary determines to limit the release of any such 
     information, the Secretary may provide for limited release of 
     such information in accordance with subsection (b).
       ``(2) Paragraph (1) applies to the following:
       ``(A) Information contained in the computerized business 
     systems of commissary stores or the Defense Commissary Agency 
     that is collected through or in connection with the use of 
     electronic scanners in commissary stores, including the 
     following information:
       ``(i) Data relating to sales of goods or services.
       ``(ii) Demographic information on customers.
       ``(iii) Any other information pertaining to commissary 
     transactions and operations.
       ``(B) Business programs, systems, and applications 
     (including software) relating to commissary operations that 
     were developed with funding derived from commissary 
     surcharges.
       ``(b) Release Authority.--(1) The Secretary of Defense may, 
     using competitive procedures, enter into a contract to sell 
     information described in subsection (a)(2).
       ``(2) The Secretary of Defense may release, without charge, 
     information on an item sold in commissary stores to the 
     manufacturer or producer of that item or an agent of the 
     manufacturer or producer.
       ``(3) The Secretary of Defense may, by contract entered 
     into with a business, grant to the business a license to use 
     business programs referred to in subsection (a)(2)(B), 
     including software used in or comprising any such program. 
     The fee charged for the license shall be based on the costs 
     of similar programs developed and marketed by businesses in 
     the private sector, determined by means of surveys.
       ``(4) Each contract entered into under this subsection 
     shall specify the amount to be paid for information released 
     or a license granted under the contract, as the case may be.
       ``(c) Form of Release.--Information described in subsection 
     (a)(2) may not be released, under subsection (b) or 
     otherwise, in a form that identifies any customer or that 
     provides information making it possible to identify any 
     customer.
       ``(d) Receipts.--Amounts received by the Secretary under 
     this section shall be credited to funds derived from 
     commissary surcharges, shall be merged with those funds, and 
     shall be available for the same purposes as the funds with 
     which merged.
       ``(e) Definition.--In this section, the term `commissary 
     surcharge' means any adjustment or surcharge applied under 
     section 2486(c) of this title.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of chapter 147 of title 10, United States Code, is 
     amended by striking the item relating to section 2487 and 
     inserting the following new item:

``2487. Commissary stores: release of certain commercially valuable 
              information to the public.''.

     SEC. 334. REBATE AGREEMENTS WITH PRODUCERS OF FOODS PROVIDED 
                   UNDER SPECIAL SUPPLEMENTAL FOOD PROGRAM.

       Section 1060a of title 10, United States Code, is amended--
       (1) by redesignating subsections (e) and (f) as subsections 
     (f) and (g), respectively; and
       (2) by inserting after subsection (d) the following new 
     subsection:
       ``(e) Rebate Agreements With Food Producers.--(1) In the 
     administration of the program under this section, the 
     Secretary of Defense may enter into a contract with a 
     producer of a particular brand of food that provides for--
       ``(A) the Secretary of Defense to procure that particular 
     brand of food, exclusive of other brands of the same or 
     similar food, for the purpose of providing the food in 
     commissary stores of the Department of Defense as a 
     supplemental food under the program; and
       ``(B) the producer to rebate to the Secretary amounts equal 
     to agreed portions of the amounts paid by the Secretary for 
     the procurement of that particular brand of food for the 
     program.
       ``(2) The Secretary of Defense shall use competitive 
     procedures under chapter 137 of this title to enter into 
     contracts under this subsection.
       ``(3) The period covered by a contract entered into under 
     this subsection may not exceed one year. No such contract may 
     be extended by a modification of the contract, by exercise of 
     an option, or by any other means. Nothing in this paragraph 
     prohibits a contractor under a contract entered into under 
     this subsection for any year from submitting an offer for, 
     and being awarded, a contract that is to be entered into 
     under this subsection for a successive year.
       ``(4) Amounts rebated under a contract entered into under 
     paragraph (1) shall be credited to the appropriation 
     available for carrying out the program under this section in 
     the fiscal year in which rebated, shall be merged with the 
     other sums in that appropriation, and shall be available for 
     the program for the same period as the other sums in the 
     appropriation.''.

     SEC. 335. CIVIL RECOVERY FOR NONAPPROPRIATED FUND 
                   INSTRUMENTALITY COSTS RELATED TO SHOPLIFTING.

       Section 3701(b)(1)(B) of title 31, United States Code, is 
     amended by inserting before the comma at the end the 
     following: ``, including actual and administrative costs 
     related to shoplifting, theft detection, and theft 
     prevention''.
                 Subtitle D--Workforce and Depot Issues

     SEC. 341. REVISION OF AUTHORITY TO WAIVE LIMITATION ON 
                   PERFORMANCE OF DEPOT-LEVEL MAINTENANCE.

       Section 2466 of title 10, United States Code, is amended--
       (1) by striking subsection (c); and
       (2) by inserting after subsection (a) the following new 
     subsections:
       ``(b) Waiver of Limitation.--The Secretary of Defense may 
     waive the limitation in subsection (a) for a fiscal year if--
       ``(1) the Secretary determines that the waiver is necessary 
     for reasons of national security; and
       ``(2) the Secretary submits to Congress a notification of 
     the waiver together with the reasons for the waiver.
       ``(c) Prohibition on Delegation of Waiver Authority.--The 
     authority to grant a waiver under subsection (b) may not be 
     delegated.''.

     SEC. 342. EXCLUSION OF CERTAIN EXPENDITURES FROM LIMITATION 
                   ON PRIVATE SECTOR PERFORMANCE OF DEPOT-LEVEL 
                   MAINTENANCE.

       Section 2474 of title 10, United States Code, is amended--
       (1) by redesignating subsection (f) as subsection (g); and
       (2) by inserting after subsection (e) the following new 
     subsection (f):
       ``(f) Exclusion of Certain Expenditures From Percentage 
     Limitation.--(1) Amounts expended out of funds described in 
     paragraph (2) for the performance of a depot-level 
     maintenance and repair workload by non-Federal Government 
     personnel at a Center of Industrial and Technical Excellence 
     shall not be counted for purposes of applying the percentage 
     limitation in section 2466(a) of this title if the personnel 
     are provided by private industry or other entities outside 
     the Department of Defense pursuant to a public-private 
     partnership.
       ``(2) The funds referred to in paragraph (1) are funds 
     available to the military departments and Defense Agencies 
     for depot-level maintenance and repair workloads for fiscal 
     years 2002 through 2005.
       ``(3) All funds covered by paragraph (1) shall be included 
     as a separate item in the reports required under paragraphs 
     (1), (2), and (3) of section 2466(e) of this title.''.

     SEC. 343. PROTECTIONS FOR PURCHASERS OF ARTICLES AND SERVICES 
                   MANUFACTURED OR PERFORMED BY WORKING-CAPITAL 
                   FUNDED INDUSTRIAL FACILITIES OF THE DEPARTMENT 
                   OF DEFENSE.

       (a) General Rule.--Section 2563(c) of title 10, United 
     States Code, is amended--
       (1) in paragraph (1)(B), by striking ``in any case of 
     willful misconduct or gross negligence'' and inserting ``as 
     provided in paragraph (3)''; and
       (2) by adding at the end the following new paragraph:
       ``(3) Paragraph (1)(B) does not apply in any case of 
     willful misconduct or gross negligence or in the case of a 
     claim by a purchaser of articles or services under this 
     section that damages or injury arose from the failure of the 
     Government to comply with quality, schedule, or cost 
     performance requirements in the contract to provide the 
     articles or services.''.
       (b) Conforming Amendment.--Section 2474(e)(2)(B)(i) of such 
     title is amended by striking ``in a case of willful conduct 
     or gross negligence'' and inserting ``under the circumstances 
     described in section 2563(c)(3) of this title''.

     SEC. 344. REVISION OF DEADLINE FOR ANNUAL REPORT ON 
                   COMMERCIAL AND INDUSTRIAL ACTIVITIES.

       Section 2461(g) of title 10, United States Code, is amended 
     by striking ``February 1'' and inserting ``June 30''.

[[Page 25195]]



     SEC. 345. PILOT MANPOWER REPORTING SYSTEM IN DEPARTMENT OF 
                   THE ARMY.

       (a) Annual Reporting Requirement.--Not later than March 1 
     of each of the fiscal years 2002 through 2004, the Secretary 
     of the Army shall submit to Congress a report describing the 
     use during the previous fiscal year of non-Federal entities 
     to provide services to the Department of the Army.
       (b) Content of Report.--Using information available from 
     existing data collection and reporting systems available to 
     the Department of the Army and the non-Federal entities 
     referred to in subsection (a), the report shall--
       (1) specify the number of work year equivalents performed 
     by individuals employed by non-Federal entities in providing 
     services to the Department;
       (2) categorize the information by Federal supply class or 
     service code; and
       (3) indicate the appropriation from which the services were 
     funded and the major organizational element of the Department 
     procuring the services.
       (c) Limitation on Requirement for Non-Federal Entities to 
     Provide Information.--For the purposes of meeting the 
     requirements set forth in subsection (b), the Secretary of 
     the Army may not require the provision of information beyond 
     the information that is currently provided to the Department 
     of the Army by the non-Federal entities referred to in 
     subsection (a), except for the number of work year 
     equivalents associated with Department of the Army contracts, 
     identified by contract number, to the extent this information 
     is available to the contractor from existing data collection 
     systems.
       (d) Repeal of Obsolete Reporting Requirement.--Section 343 
     of the National Defense Authorization Act for Fiscal Year 
     2000 (Public Law 106-65; 113 Stat. 569) is repealed.

     SEC. 346. DEVELOPMENT OF ARMY WORKLOAD AND PERFORMANCE SYSTEM 
                   AND WHOLESALE LOGISTICS MODERNIZATION PROGRAM.

       (a) Relationship Between Systems.--(1) The Army Workload 
     and Performance System, including all applications in the 
     master plan submitted to Congress on June 8, 2001, and any 
     revisions to the master plan, shall be developed in such a 
     manner that its functionality and identity are in compliance 
     with all statutory requirements. The Army Workload and 
     Performance System shall continue as a standard Army-wide 
     manpower system under the supervision and management of the 
     Secretary of the Army.
       (2) The requirement in paragraph (1) is intended to 
     encourage the sharing of data between the Army Workload and 
     Performance System and the Wholesale Logistics Modernization 
     Program and the development of the processes necessary to 
     permit or enhance such data sharing.
       (b) Annual Progress Reports.--(1) Not later than February 1 
     of each year, the Secretary of the Army shall submit to 
     Congress a progress report on the implementation of the 
     master plan for the Army Workload and Performance System 
     during the preceding year. The report shall specifically 
     address any changes made to the master plan since the 
     previous report.
       (2) The reporting requirement shall terminate when the 
     Secretary certifies to Congress that the Army Workload and 
     Performance System is fully implemented.
       (c) GAO Evaluation.--Not later than 60 days after the 
     Secretary of the Army submits to Congress a progress report 
     under subsection (b), the Comptroller General shall submit to 
     Congress an evaluation of the report.
       (d) Army Workload and Performance System Defined.--The term 
     ``Army Workload and Performance System'' includes all 
     applications in the master plan for the System submitted to 
     Congress on June 8, 2001, and any revision of such master 
     plan.
                Subtitle E--Defense Dependents Education

     SEC. 351. ASSISTANCE TO LOCAL EDUCATIONAL AGENCIES THAT 
                   BENEFIT DEPENDENTS OF MEMBERS OF THE ARMED 
                   FORCES AND DEPARTMENT OF DEFENSE CIVILIAN 
                   EMPLOYEES.

       (a) Continuation of Department of Defense Program for 
     Fiscal Year 2002.--Of the amount authorized to be 
     appropriated pursuant to section 301(a)(5) for operation and 
     maintenance for Defense-wide activities--
       (1) $30,000,000 shall be available only for the purpose of 
     providing educational agencies assistance to local 
     educational agencies; and
       (2) $1,000,000 shall be available only for the purpose of 
     making payments to local educational agencies to assist such 
     agencies in adjusting to reductions in the number of military 
     dependent students as a result of the closure or realignment 
     of military installations, as provided in section 386(d) of 
     the National Defense Authorization Act for Fiscal Year 1993 
     (Public Law 102-484; 20 U.S.C. 7703 note).
       (b) Notification.--Not later than June 30, 2002, the 
     Secretary of Defense shall notify each local educational 
     agency that is eligible for assistance or a payment under 
     subsection (a) for fiscal year 2002 of--
       (1) that agency's eligibility for the assistance or 
     payment; and
       (2) the amount of the assistance or payment for which that 
     agency is eligible.
       (c) Disbursement of Funds.--The Secretary of Defense shall 
     disburse funds made available under subsection (a) not later 
     than 30 days after the date on which notification to the 
     eligible local educational agencies is provided pursuant to 
     subsection (b).
       (d) Definitions.--In this section:
       (1) The term ``educational agencies assistance'' means 
     assistance authorized under section 386(b) of the National 
     Defense Authorization Act for Fiscal Year 1993 (Public Law 
     102-484; 20 U.S.C. 7703 note).
       (2) The term ``local educational agency'' has the meaning 
     given that term in section 8013(9) of the Elementary and 
     Secondary Education Act of 1965 (20 U.S.C. 7713(9)).

     SEC. 352. IMPACT AID FOR CHILDREN WITH SEVERE DISABILITIES.

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

     SEC. 353. AVAILABILITY OF AUXILIARY SERVICES OF DEFENSE 
                   DEPENDENTS' EDUCATION SYSTEM FOR DEPENDENTS WHO 
                   ARE HOME SCHOOL STUDENTS.

       Section 1407 of the Defense Dependents' Education Act of 
     1978 (20 U.S.C. 926) is amended--
       (1) by redesignating subsection (d) as subsection (e); and
       (2) by inserting after subsection (c) the following new 
     subsection:
       ``(d) Auxiliary Services Available to Home School 
     Students.--(1) A dependent who is educated in a home school 
     setting, but who is eligible to enroll in a school of the 
     defense dependents' education system, shall be permitted to 
     use or receive auxiliary services of that school without 
     being required to either enroll in that school or register 
     for a minimum number of courses offered by that school. The 
     dependent may be required to satisfy other eligibility 
     requirements and comply with standards of conduct applicable 
     to students actually enrolled in that school who use or 
     receive the same auxiliary services.
       ``(2) For purposes of paragraph (1), the term `auxiliary 
     services' includes use of academic resources, access to the 
     library of the school, after hours use of school facilities, 
     and participation in music, sports, and other extracurricular 
     and interscholastic activities.''.

     SEC. 354. COMPTROLLER GENERAL STUDY OF ADEQUACY OF 
                   COMPENSATION PROVIDED FOR TEACHERS IN THE 
                   DEPARTMENT OF DEFENSE OVERSEAS DEPENDENTS' 
                   SCHOOLS.

       (a) GAO Study Required.--The Comptroller General shall 
     carry out a study of the adequacy of the pay and other 
     elements of the compensation provided for teachers in the 
     defense dependents' education system established under the 
     Defense Dependents' Education Act of 1978 (20 U.S.C. 921 et 
     seq.).
       (b) Specific Considerations.--In carrying out the study, 
     the Comptroller General shall consider the following issues:
       (1) Whether the compensation is adequate for recruiting and 
     retaining high quality teachers.
       (2) Whether any revision of the Defense Department Overseas 
     Teachers Pay and Personnel Practices Act (20 U.S.C. 901 et 
     seq.) or the regulations under that Act is advisable to 
     address any problems identified with respect to the 
     recruitment and retention of high quality teachers or for 
     other purposes.
       (c) Report.--Not later than May 1, 2002, the Comptroller 
     General shall submit to Congress a report containing the 
     results of the study, including--
       (1) the Comptroller General's conclusions on the issues 
     considered; and
       (2) any recommendations for actions that the Comptroller 
     General considers appropriate.
                       Subtitle F--Other Matters

     SEC. 361. AVAILABILITY OF EXCESS DEFENSE PERSONAL PROPERTY TO 
                   SUPPORT DEPARTMENT OF VETERANS AFFAIRS 
                   INITIATIVE TO ASSIST HOMELESS VETERANS.

       (a) Transfer Authority.--Subsection (a) of section 2557 of 
     title 10, United States Code, is amended--
       (1) by striking ``The Secretary'' and inserting ``(1) The 
     Secretary''; and
       (2) by adding at the end the following new paragraph:
       ``(2) The Secretary of Defense may make excess clothing, 
     shoes, sleeping bags, and related nonlethal excess supplies 
     available to the Secretary of Veterans Affairs for 
     distribution to homeless veterans and programs assisting 
     homeless veterans. The transfer of nonlethal excess supplies 
     to the Secretary of Veterans Affairs under this paragraph 
     shall be without reimbursement.''.
       (b) Clerical Amendments.--(1) The heading of such section 
     is amended to read as follows:

     ``Sec. 2557. Excess nonlethal supplies: availability for 
       homeless veteran initiatives and humanitarian relief''.

       (2) The table of sections at the beginning of chapter 152 
     of such title is amended by striking the item relating to 
     section 2557 and inserting the following new item:

``2557. Excess nonlethal supplies: availability for homeless veteran 
              initiatives and humanitarian relief.''.

     SEC. 362. INCREMENTAL IMPLEMENTATION OF NAVY-MARINE CORPS 
                   INTRANET CONTRACT.

       (a) Additional Phase-In Authority.--Section 814 of the 
     Floyd D. Spence National Defense Authorization Act for Fiscal 
     Year 2001 (as enacted into law by Public Law 106-398; 114 
     Stat. 1654A-215) is amended--
       (1) by redesignating subsections (c), (d), (e), and (f) as 
     subsections (f), (g), (h), and (i), respectively; and
       (2) by inserting after subsection (b) the following new 
     subsections:
       ``(c) Additional Phase-In Authority Pending Second Joint 
     Certification.--(1)(A) Notwithstanding subsection (b)(3), the 
     Secretary of

[[Page 25196]]

     the Navy may order additional work stations under the Navy-
     Marine Corps Intranet contract in excess of the number 
     provided in the first increment of the contract under 
     subsection (b)(2), but not to exceed an additional 100,000 
     work stations. The authority of Secretary of the Navy to 
     order additional work stations under this paragraph is 
     subject to approval by both the Under Secretary of Defense 
     for Acquisition, Technology, and Logistics and the Chief 
     Information Officer of the Department of Defense.
       ``(B) The Under Secretary of Defense for Acquisition, 
     Technology, and Logistics and the Chief Information Officer 
     of the Department of Defense may not grant approval to the 
     Secretary of the Navy to order additional work stations under 
     subparagraph (A) until a three-phase customer test and 
     evaluation, observed by the Department of Defense, is 
     completed for a statistically significant representative 
     sample of the work stations operating on the Navy-Marine 
     Corps Intranet. The test and evaluation shall include end 
     user testing of day-to-day operations (including e-mail 
     capability and performance), scenario-driven events, and 
     scenario-based interoperability testing.
       ``(2)(A) Notwithstanding subsection (b)(3), the Secretary 
     of the Navy may order additional work stations under the 
     Navy-Marine Corps Intranet contract in excess of the number 
     provided in the first increment of the contract under 
     subsection (b)(2) and the number ordered under the authority 
     of paragraph (1), but not to exceed an additional 150,000 
     work stations. The authority of Secretary of the Navy to 
     order additional work stations under this paragraph is also 
     subject to approval by both the Under Secretary of Defense 
     for Acquisition, Technology, and Logistics and the Chief 
     Information Officer of the Department of Defense.
       ``(B) The Under Secretary of Defense for Acquisition, 
     Technology, and Logistics and the Chief Information Officer 
     of the Department of Defense may not grant approval to the 
     Secretary of the Navy to order additional work stations under 
     subparagraph (A) until each of the following occurs:
       ``(i) There has been a full transition of not less than 
     20,000 work stations to the Navy-Marine Corps Intranet.
       ``(ii) The work stations referred to in clause (i) have met 
     applicable service-level agreements specified in the Navy-
     Marine Corps Intranet contract, as determined by contractor 
     performance measurement under oversight by the Department of 
     the Navy.
       ``(iii) The Chief Information Officer of the Navy certifies 
     to the Secretary of the Navy and the Chief Information 
     Officer of the Department of Defense that the results of the 
     performance evaluation referred to in clause (ii) are 
     acceptable.
       ``(3) Of the work stations ordered under the authority 
     provided by paragraph (2), not more than 50 percent may reach 
     the major milestone known as `assumption of responsibility' 
     until each of the following occurs:
       ``(A) All work stations for the headquarters of the Naval 
     Air Command have met applicable service-level agreements 
     specified in the Navy-Marine Corps Intranet contract, as 
     determined by contractor performance measurement under 
     oversight by the Department of the Navy.
       ``(B) The Chief Information Officer of the Navy certifies 
     to the Secretary of the Navy and the Chief Information 
     Officer of the Department of Defense that the results of the 
     performance evaluation referred to in subparagraph (B) are 
     acceptable.
       ``(4) For the purposes of this section, when the 
     information infrastructure and systems of a user of a work 
     station are transferred into Navy-Marine Corps Intranet 
     infrastructure and systems under the Navy-Marine Corps 
     Intranet contract consistent with the applicable service-
     level agreements specified in the Navy-Marine Corps Intranet 
     contract, the work station shall be considered as having been 
     provided for the Navy-Marine Corps Intranet.
       ``(d) Reporting and Review Requirements.--(1) If work 
     stations are ordered using the authority provided by 
     paragraph (1) or (2) of subsection (c), the Secretary of the 
     Navy shall submit to Congress a report, current as of the 
     date the determination is made to order the work stations, on 
     the following:
       ``(A) The number of work stations operating on the Navy-
     Marine Corps Intranet, including the number of work stations 
     regarding which assumption of responsibility has occurred.
       ``(B) The status of testing and implementation of the Navy-
     Marine Corps Intranet program.
       ``(C) The number of work stations to be ordered under 
     paragraph (1) or (2) of subsection (c), whichever applies.
       ``(2) A report containing the information required by 
     paragraph (1) shall also be submitted to Congress when the 
     requirements of paragraph (3) of subsection (c) are satisfied 
     and additional work stations under the Navy-Marine Corps 
     Intranet contract are authorized to reach assumption of 
     responsibility.
       ``(3) The Comptroller General shall conduct a review of the 
     impact that participation in the Navy-Marine Corps Intranet 
     program has on information technology costs of working 
     capital funded industrial facilities of the Department of the 
     Navy and submit the results of the review to Congress.''.
       (b) Navy-Marine Corps Intranet Manager.--Such section is 
     further amended by inserting after subsection (d), as added 
     by subsection (a)(2) of this section, the following new 
     subsection:
       ``(e) Assignment of Navy-Marine Corps Intranet Manager.--
     The Secretary of the Navy shall assign an employee of the 
     Department of the Navy to the Navy-Marine Corps Intranet 
     program whose sole responsibility will be to oversee and 
     direct the program. The employee so assigned may not also be 
     the program executive officer.''.
       (c) Definitions.--Subsection (i) of such section, as 
     redesignated by subsection (a)(1) of this section, is 
     amended--
       (1) by striking ``Navy-Marine Corps Intranet Contract 
     Defined.--'' and inserting ``Definitions.--(1)''; and
       (2) by adding at the end the following new paragraph:
       ``(2) In this section, the term `assumption of 
     responsibility', with respect to a work station, means the 
     point at which the contractor team under the Navy-Marine 
     Corps Intranet contract assumes operational control of, and 
     responsibility for, the existing information infrastructure 
     and systems of a work station, in order to prepare for 
     ultimate transition of the work station to the Navy-Marine 
     Corps Intranet.''.

     SEC. 363. COMPTROLLER GENERAL STUDY AND REPORT OF NATIONAL 
                   GUARD DISTRIBUTIVE TRAINING TECHNOLOGY PROJECT.

       (a) Study Required.--The Comptroller General of the United 
     States shall conduct a study of the Distributive Training 
     Technology Project of the National Guard. The study shall 
     examine--
       (1) current requirements of the National Guard for 
     interconnection of networks of the Distributive Training 
     Technology Project with other networks, including networks of 
     the Federal Emergency Management Agency and other Federal, 
     State, and local emergency preparedness and response 
     agencies; and
       (2) future requirements of the National Guard for 
     interconnection of networks of the Project with other 
     networks, including those Federal and State agencies having 
     disaster response functions.
       (b) Elements of Study.--For both the current requirements 
     identified under subsection (a)(1) and future requirements 
     identified under subsection (a)(2), the study shall examine 
     the following:
       (1) Appropriate connections between the Project and other 
     networks.
       (2) Means of protecting the Project from outside intrusion.
       (3) Impediments to interconnectivity, including the extent 
     to which national security concerns affect interconnectivity 
     and the technological capability of the Department of Defense 
     to impede interconnectivity, as well as other concerns or 
     limitations that affect interconnectivity.
       (4) Means of improving interconnectivity.
       (c) Report.--Not later than 270 days after the date of the 
     enactment of this Act, the Comptroller General shall submit 
     to the Committee on Armed Services of the Senate and the 
     Committee on Armed Services of the House of Representatives a 
     report on the study conducted under subsection (a). The 
     report shall describe the results of the study and shall 
     include any recommendations that the Comptroller General 
     considers appropriate in light of the study.

     SEC. 364. REAUTHORIZATION OF WARRANTY CLAIMS RECOVERY PILOT 
                   PROGRAM.

       (a) Extension of Authority.--Subsection (f) of section 391 
     of the National Defense Authorization Act for Fiscal Year 
     1998 (Public Law 105-85; 10 U.S.C. 2304 note) is amended by 
     striking ``September 30, 2000'' and inserting ``September 30, 
     2003''.
       (b) Reporting Requirements.--Subsection (g) of such section 
     is amended--
       (1) in paragraph (1), by striking ``January 1, 2001'' and 
     inserting ``January 1, 2003''; and
       (2) in paragraph (2), by striking ``March 1, 2001'' and 
     inserting ``March 1, 2003''.

     SEC. 365. EVALUATION OF CURRENT DEMONSTRATION PROGRAMS TO 
                   IMPROVE QUALITY OF PERSONAL PROPERTY SHIPMENTS 
                   OF MEMBERS.

       (a) Completion of Evaluation; Report.--Not later than March 
     31, 2002, the Secretary of Defense shall complete the ongoing 
     evaluation of all test programs regarding the transportation 
     of household goods for members of the Armed Forces and submit 
     to Congress a report containing the results of such 
     evaluation.
       (b) Contents of Report.--The report shall include--
       (1) the results of each test program evaluated, including 
     whether the test program satisfied the goals for the movement 
     of such household goods (as contained in the General 
     Accounting Report NSIAD 97-49) and whether current business 
     processes and information technology capabilities require 
     upgrading or other changes to improve the transportation of 
     such household goods; and
       (2) recommendations for policy improvements for military 
     household moves worldwide, including an estimate of the cost 
     to implement each recommendation.

     SEC. 366. SENSE OF CONGRESS REGARDING SECURITY TO BE PROVIDED 
                   AT 2002 WINTER OLYMPIC GAMES.

       It is the sense of Congress that the Secretary of Defense, 
     upon receipt of the certification of the Attorney General 
     required by section 2564(a) of title 10, United States Code, 
     should authorize the provision of assistance in support of 
     essential security and safety at the 2002 Winter Olympic 
     Games to be held in Salt Lake City, Utah, and other locations 
     in the State of Utah.
              TITLE IV--MILITARY PERSONNEL AUTHORIZATIONS


                       Subtitle A--Active Forces

Sec. 401. End strengths for active forces.

[[Page 25197]]

Sec. 402. Revision in permanent end strength minimum levels.
Sec. 403. Increase in senior enlisted active duty grade limit for Navy, 
              Marine Corps, and Air Force.

                       Subtitle B--Reserve Forces

Sec. 411. End strengths for Selected Reserve.
Sec. 412. End strengths for Reserves on active duty in support of the 
              reserves.
Sec. 413. End strengths for military technicians (dual status).
Sec. 414. Fiscal year 2002 limitation on non-dual status technicians.
Sec. 415. Limitations on numbers of reserve personnel serving on active 
              duty or full-time National Guard duty in certain grades 
              for administration of reserve components.

       Subtitle C--Other Matters Relating to Personnel Strengths

Sec. 421. Administration of end strengths.
Sec. 422. Active duty end strength exemption for National Guard and 
              reserve personnel performing funeral honors functions.

              Subtitle D--Authorization of Appropriations

Sec. 431. Authorization of appropriations for military personnel.
                       Subtitle A--Active Forces

     SEC. 401. END STRENGTHS FOR ACTIVE FORCES.

       The Armed Forces are authorized strengths for active duty 
     personnel as of September 30, 2002, as follows:
       (1) The Army, 480,000.
       (2) The Navy, 376,000.
       (3) The Marine Corps, 172,600.
       (4) The Air Force, 358,800.

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

       Section 691(b) of title 10, United States Code, is 
     amended--
       (1) in paragraph (2), by striking ``372,000'' and inserting 
     ``376,000''; and
       (2) in paragraph (4), by striking ``357,000'' and inserting 
     ``358,800''.

     SEC. 403. INCREASE IN SENIOR ENLISTED ACTIVE DUTY GRADE LIMIT 
                   FOR NAVY, MARINE CORPS, AND AIR FORCE.

       Section 517(a) of title 10, United States Code, is amended 
     by striking ``2 percent (or, in the case of the Army, 2.5 
     percent)'' and inserting ``2.5 percent''.
                       Subtitle B--Reserve Forces

     SEC. 411. END STRENGTHS FOR SELECTED RESERVE.

       (a) In General.--The Armed Forces are authorized strengths 
     for Selected Reserve personnel of the reserve components as 
     of September 30, 2002, as follows:
       (1) The Army National Guard of the United States, 350,000.
       (2) The Army Reserve, 205,000.
       (3) The Naval Reserve, 87,000.
       (4) The Marine Corps Reserve, 39,558.
       (5) The Air National Guard of the United States, 108,400.
       (6) The Air Force Reserve, 74,700.
       (7) The Coast Guard Reserve, 8,000.
       (b) Adjustments.--The end strengths prescribed by 
     subsection (a) for the Selected Reserve of any reserve 
     component shall be proportionately reduced by--
       (1) the total authorized strength of units organized to 
     serve as units of the Selected Reserve of such component 
     which are on active duty (other than for training) at the end 
     of the fiscal year; and
       (2) the total number of individual members not in units 
     organized to serve as units of the Selected Reserve of such 
     component who are on active duty (other than for training or 
     for unsatisfactory participation in training) without their 
     consent at the end of the fiscal year.

     Whenever such units or such individual members are released 
     from active duty during any fiscal year, the end strength 
     prescribed for such fiscal year for the Selected Reserve of 
     such reserve component shall be proportionately increased by 
     the total authorized strengths of such units and by the total 
     number of such individual members.

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

       Within the end strengths prescribed in section 411(a), the 
     reserve components of the Armed Forces are authorized, as of 
     September 30, 2002, the following number of Reserves to be 
     serving on full-time active duty or full-time duty, in the 
     case of members of the National Guard, for the purpose of 
     organizing, administering, recruiting, instructing, or 
     training the reserve components:
       (1) The Army National Guard of the United States, 23,698.
       (2) The Army Reserve, 13,406.
       (3) The Naval Reserve, 14,811.
       (4) The Marine Corps Reserve, 2,261.
       (5) The Air National Guard of the United States, 11,591.
       (6) The Air Force Reserve, 1,437.

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

       The minimum number of military technicians (dual status) as 
     of the last day of fiscal year 2002 for the reserve 
     components of the Army and the Air Force (notwithstanding 
     section 129 of title 10, United States Code) shall be the 
     following:
       (1) For the Army Reserve, 6,249.
       (2) For the Army National Guard of the United States, 
     23,615.
       (3) For the Air Force Reserve, 9,818.
       (4) For the Air National Guard of the United States, 
     22,422.

     SEC. 414. FISCAL YEAR 2002 LIMITATION ON NON-DUAL STATUS 
                   TECHNICIANS.

       (a) Limitation.--The number of non-dual status technicians 
     employed by the reserve components of the Army and the Air 
     Force as of September 30, 2002, may not exceed the following:
       (1) For the Army Reserve, 1,095.
       (2) For the Army National Guard of the United States, 
     1,600.
       (3) For the Air Force Reserve, 90.
       (4) For the Air National Guard of the United States, 350.
       (b) Non-Dual Status Technicians Defined.--In this section, 
     the term ``non-dual status technician'' has the meaning given 
     that term in section 10217(a) of title 10, United States 
     Code.

     SEC. 415. LIMITATIONS ON NUMBERS OF RESERVE PERSONNEL SERVING 
                   ON ACTIVE DUTY OR FULL-TIME NATIONAL GUARD DUTY 
                   IN CERTAIN GRADES FOR ADMINISTRATION OF RESERVE 
                   COMPONENTS.

       (a) Officers.--The text of section 12011 of title 10, 
     United States Code, is amended to read as follows:
       ``(a) Limitations.--(1) Of the total number of members of a 
     reserve component who are serving on full-time reserve 
     component duty at the end of any fiscal year, the number of 
     those members who may be serving in each of the grades of 
     major, lieutenant colonel, and colonel may not, as of the end 
     of that fiscal year, exceed the number determined in 
     accordance with the following table:


----------------------------------------------------------------------------------------------------------------
                                                         Number of officers of that reserve component who may be
                                                                        serving in the grade of:
   ``Total number of members of a reserve component    ---------------------------------------------------------
     serving on full-time reserve component duty:                              Lieutenant
                                                              Major             Colonel             Colonel
----------------------------------------------------------------------------------------------------------------
Army Reserve:
10,000................................................              1,390                740             230
11,000................................................              1,529                803             242
12,000................................................              1,668                864             252
13,000................................................              1,804                924             262
14,000................................................              1,940                984             272
15,000................................................              2,075              1,044             282
16,000................................................              2,210              1,104             291
17,000................................................              2,345              1,164             300
18,000................................................              2,479              1,223             309
19,000................................................              2,613              1,282             318
20,000................................................              2,747              1,341             327
21,000................................................              2,877              1,400              336
 
Army National Guard:
20,000................................................              1,500                850             325
22,000................................................              1,650                930             350
24,000................................................              1,790              1,010             370
26,000................................................              1,930              1,085             385
28,000................................................              2,070              1,160             400
30,000................................................              2,200              1,235             405
32,000................................................              2,330              1,305             408
34,000................................................              2,450              1,375             411
36,000................................................              2,570              1,445             411
38,000................................................              2,670              1,515             411
40,000................................................              2,770              1,580             411
42,000................................................              2,837              1,644             411

[[Page 25198]]

 
 
Marine Corps Reserve:
1,100.................................................                106                 56              20
1,200.................................................                110                 60              21
1,300.................................................                114                 63              22
1,400.................................................                118                 66              23
1,500.................................................                121                 69              24
1,600.................................................                124                 72              25
1,700.................................................                127                 75              26
1,800.................................................                130                 78              27
1,900.................................................                133                 81              28
2,000.................................................                136                 84              29
2,100.................................................                139                 87              30
2,200.................................................                141                 90              31
2,300.................................................                143                 92              32
2,400.................................................                145                 94              33
2,500.................................................                147                 96              34
2,600.................................................                149                 98              35
 
Air Force Reserve:
500...................................................                 83                 85              50
1,000.................................................                155                165              95
1,500.................................................                220                240             135
2,000.................................................                285                310             170
2,500.................................................                350                369             203
3,000.................................................                413                420             220
3,500.................................................                473                464             230
4,000.................................................                530                500             240
4,500.................................................                585                529             247
5,000.................................................                638                550             254
5,500.................................................                688                565             261
6,000.................................................                735                575             268
7,000.................................................                770                595             280
8,000.................................................                805                615             290
10,000................................................                835                635             300
 
Air National Guard:
5,000.................................................                333                335             251
6,000.................................................                403                394             260
7,000.................................................                472                453             269
8,000.................................................                539                512             278
9,000.................................................                606                571             287
10,000................................................                673                630             296
11,000................................................                740                688             305
12,000................................................                807                742             314
13,000................................................                873                795             323
14,000................................................                939                848             332
15,000................................................              1,005                898             341
16,000................................................              1,067                948             350
17,000................................................              1,126                998             359
18,000................................................              1,185              1,048             368
19,000................................................              1,235              1,098             377
20,000................................................              1,283              1,148              380.
----------------------------------------------------------------------------------------------------------------

       ``(2) Of the total number of members of the Naval Reserve 
     who are serving on full-time reserve component duty at the 
     end of any fiscal year, the number of those members who may 
     be serving in each of the grades of lieutenant commander, 
     commander, and captain may not, as of the end of that fiscal 
     year, exceed the number determined in accordance with the 
     following table:


----------------------------------------------------------------------------------------------------------------
                                                         Number of officers who may be serving in the grade of:
 ``Total number of members of Naval Reserve serving on ---------------------------------------------------------
           full-time reserve component duty                 Lieutenant
                                                            commander          Commander            Captain
----------------------------------------------------------------------------------------------------------------
10,000................................................                807                447             141
11,000................................................                867                467             153
12,000................................................                924                485             163
13,000................................................                980                503             173
14,000................................................              1,035                521             183
15,000................................................              1,088                538             193
16,000................................................              1,142                555             203
17,000................................................              1,195                565             213
18,000................................................              1,246                575             223
19,000................................................              1,291                585             233
20,000................................................              1,334                595             242
21,000................................................              1,364                603             250
22,000................................................              1,384                610             258
23,000................................................              1,400                615             265
24,000................................................              1,410                620              270.
----------------------------------------------------------------------------------------------------------------

       ``(b) Determinations by Interpolation.--If the total number 
     of members of a reserve component serving on full-time 
     reserve component duty is between any two consecutive numbers 
     in the first column of the appropriate table in paragraph (1) 
     or (2) of subsection (a), the corresponding authorized 
     strengths for each of the grades shown in that table for that 
     component are determined by mathematical interpolation 
     between the respective numbers of the two strengths. If the 
     total number of members of a reserve component serving on 
     full-time reserve component duty is more or less than the 
     highest or lowest number, respectively, set forth in the 
     first column of the appropriate table in paragraph (1) or (2) 
     of subsection (a), the Secretary concerned shall fix the 
     corresponding strengths for the grades shown in that table at 
     the same proportion as is reflected in the nearest limit 
     shown in the table.

[[Page 25199]]

       ``(c) Reallocations to Lower Grades.--Whenever the number 
     of officers serving in any grade for duty described in 
     subsection (a) is less than the number authorized for that 
     grade under this section, the difference between the two 
     numbers may be applied to increase the number authorized 
     under this section for any lower grade.
       ``(d) Secretarial Waiver.--(1) Upon determining that it is 
     in the national interest to do so, the Secretary of Defense 
     may increase for a particular fiscal year the number of 
     reserve officers that may be on full-time reserve component 
     duty for a reserve component in a grade referred to in a 
     table in subsection (a) by a number that does not exceed the 
     number equal to 5 percent of the maximum number specified for 
     the grade in that table.
       ``(2) Whenever the Secretary exercises the authority 
     provided in paragraph (1), the Secretary shall submit to the 
     Committee on Armed Services of the Senate and the Committee 
     on Armed Services of the House of Representatives notice in 
     writing of the adjustment made.
       ``(e) Full-Time Reserve Component Duty Defined.--In this 
     section, the term `full-time reserve component duty' means 
     the following duty:
       ``(1) Active duty described in sections 10211, 10302, 
     10303, 10304, 10305, 12310, or 12402 of this title.
       ``(2) Full-time National Guard duty (other than for 
     training) under section 502(f) of title 32.
       ``(3) Active duty described in section 708 of title 32.''.
       (b) Senior Enlisted Members.--The text of section 12012 of 
     title 10, United States Code, is amended to read as follows:
       ``(a) Limitations.--Of the total number of members of a 
     reserve component who are serving on full-time reserve 
     component duty at the end of any fiscal year, the number of 
     those members in each of pay grades of E-8 and E-9 who may be 
     serving on active duty under section 10211 or 12310, or on 
     full-time National Guard duty under the authority of section 
     502(f) of title 32 (other than for training) in connection 
     with organizing, administering, recruiting, instructing, or 
     training the reserve components or the National Guard may 
     not, as of the end of that fiscal year, exceed the number 
     determined in accordance with the following table:


 
------------------------------------------------------------------------
                                     Number of members of that reserve
  ``Total number of members of a    component who may be serving in the
reserve component serving on full-               grade of:
   time reserve component duty:   --------------------------------------
                                          E-8                 E-9
------------------------------------------------------------------------
Army Reserve:
10,000...........................              1,052             154
11,000...........................              1,126             168
12,000...........................              1,195             180
13,000...........................              1,261             191
14,000...........................              1,327             202
15,000...........................              1,391             213
16,000...........................              1,455             224
17,000...........................              1,519             235
18,000...........................              1,583             246
19,000...........................              1,647             257
20,000...........................              1,711             268
21,000...........................              1,775             278
 
Army National Guard:
20,000...........................              1,650             550
22,000...........................              1,775             615
24,000...........................              1,900             645
26,000...........................              1,945             675
28,000...........................              1,945             705
30,000...........................              1,945             725
32,000...........................              1,945             730
34,000...........................              1,945             735
36,000...........................              1,945             738
38,000...........................              1,945             741
40,000...........................              1,945             743
42,000...........................              1,945             743
 
Naval Reserve:
10,000...........................                340             143
11,000...........................                364             156
12,000...........................                386             169
13,000...........................                407             182
14,000...........................                423             195
15,000...........................                435             208
16,000...........................                447             221
17,000...........................                459             234
18,000...........................                471             247
19,000...........................                483             260
20,000...........................                495             273
21,000...........................                507             286
22,000...........................                519             299
23,000...........................                531             312
24,000...........................                540             325
 
Marine Corps Reserve:
1,100............................                 50              11
1,200............................                 55              12
1,300............................                 60              13
1,400............................                 65              14
1,500............................                 70              15
1,600............................                 75              16
1,700............................                 80              17
1,800............................                 85              18
1,900............................                 89              19
2,000............................                 93              20
2,100............................                 96              21
2,200............................                 99              22
2,300............................                101              23
2,400............................                103              24
2,500............................                105              25
2,600............................                107              26
 
Air Force Reserve:
500..............................                 75              40
1,000............................                145              75
1,500............................                208             105
2,000............................                270             130
2,500............................                325             150
3,000............................                375             170
3,500............................                420             190
4,000............................                460             210
4,500............................                495             230
5,000............................                530             250
5,500............................                565             270
6,000............................                600             290
7,000............................                670             330
8,000............................                740             370
10,000...........................                800             400
 
Air National Guard
5,000............................              1,020             405
6,000............................              1,070             435
7,000............................              1,120             465
8,000............................              1,170             490
9,000............................              1,220             510
10,000...........................              1,270             530
11,000...........................              1,320             550
12,000...........................              1,370             570
13,000...........................              1,420             589
14,000...........................              1,470             608
15,000...........................              1,520             626
16,000...........................              1,570             644
17,000...........................              1,620             661
18,000...........................              1,670             678
19,000...........................              1,720             695
20,000...........................              1,770              712.
------------------------------------------------------------------------

       ``(b) Determinations by Interpolation.--If the total number 
     of members of a reserve component serving on full-time 
     reserve component duty is between any two consecutive numbers 
     in the first column of the table in subsection (a), the 
     corresponding authorized strengths for each of the grades 
     shown in that table for that component are determined by 
     mathematical interpolation between the respective numbers of 
     the two strengths. If the total number of members of a 
     reserve component serving on full-time reserve component duty 
     is more or less than the highest or lowest number, 
     respectively, set forth in the first column of the table in 
     subsection (a), the Secretary concerned shall fix the 
     corresponding strengths for the grades shown in the table at 
     the same proportion as is reflected in the nearest limit 
     shown in the table.
       ``(c) Reallocations to Lower Grade.--Whenever the number of 
     members serving in pay grade E-9 for duty described in 
     subsection (a) is less than the number authorized for that 
     grade under this section, the difference between the two 
     numbers may be applied to increase the number authorized 
     under this section for pay grade E-8.
       ``(d) Secretarial Waiver.--(1) Upon determining that it is 
     in the national interest to do so, the Secretary of Defense 
     may increase for a particular fiscal year the number of 
     reserve enlisted members that may be on active duty or full-
     time National Guard duty as described in subsection (a) for a 
     reserve component in a pay grade referred to in a table in 
     subsection (a) by a number that does not exceed the number 
     equal to 5 percent of the maximum number specified for that 
     grade and reserve component in the table.
       ``(2) Whenever the Secretary exercises the authority 
     provided in paragraph (1), the Secretary shall submit to the 
     Committee on Armed Services of the Senate and the Committee 
     on Armed Services of the House of Representatives notice in 
     writing of the adjustment made.
       ``(e) Full-Time Reserve Component Duty Defined.--In this 
     section, the term `full-time reserve component duty' has the 
     meaning given the term in section 12011(e) of this title.''.
       Subtitle C--Other Matters Relating to Personnel Strengths

     SEC. 421. ADMINISTRATION OF END STRENGTHS.

       (a) Increase in Percentage by Which Active Component End 
     Strengths May Be Increased.--Section 115(c)(1) of title 10, 
     United States Code, is amended by striking ``1 percent'' and 
     inserting ``2 percent''.
       (b) Waiver of End Strengths During National Emergency.--The 
     text of section 123a of such title is amended to read as 
     follows:
       ``(a) During War or National Emergency.--If at the end of 
     any fiscal year there is in effect a war or national 
     emergency, the President may waive any statutory end strength 
     with respect to that fiscal year. Any such waiver may be 
     issued only for a statutory end strength that is prescribed 
     by law before the waiver is issued.
       ``(b) Upon Termination of War or National Emergency.--Upon 
     the termination of a war or national emergency with respect 
     to which the President has exercised the authority provided 
     by subsection (a), the President may defer the effectiveness 
     of any statutory end strength with respect to the fiscal year 
     during which the termination occurs. Any such deferral may 
     not extend beyond the last day of the sixth month beginning 
     after the date of such termination.
       ``(c) Statutory End Strength.--In this section, the term 
     `statutory end strength' means any end-strength limitation 
     with respect to a fiscal year that is prescribed by law for 
     any military or civilian component of the armed forces or of 
     the Department of Defense.''.

     SEC. 422. ACTIVE DUTY END STRENGTH EXEMPTION FOR NATIONAL 
                   GUARD AND RESERVE PERSONNEL PERFORMING FUNERAL 
                   HONORS FUNCTIONS.

       Section 115(d) of title 10, United States Code, is amended 
     by adding at the end the following new paragraphs:
       ``(10) Members of reserve components on active duty to 
     prepare for and to perform funeral honors functions for 
     funerals of veterans in accordance with section 1491 of this 
     title.
       ``(11) Members on full-time National Guard duty to prepare 
     for and perform funeral honors functions for funerals of 
     veterans in accordance with section 1491 of this title.''.
              Subtitle D--Authorization of Appropriations

     SEC. 431. AUTHORIZATION OF APPROPRIATIONS FOR MILITARY 
                   PERSONNEL.

       There is hereby authorized to be appropriated to the 
     Department of Defense for military personnel for fiscal year 
     2002 a total of $82,307,281,000. The authorization in the 
     preceding sentence supersedes any other authorization of 
     appropriations (definite or indefinite) for such purpose for 
     fiscal year 2002.

[[Page 25200]]


                   TITLE V--MILITARY PERSONNEL POLICY

                  Subtitle A--Officer Personnel Policy

Sec. 501. Enhanced flexibility for management of senior general and 
              flag officer positions.
Sec. 502. Certifications of satisfactory performance for retirement of 
              officers in grades above major general and rear admiral.
Sec. 503. Review of actions of selection boards.
Sec. 504. Temporary reduction of time-in-grade requirement for 
              eligibility for promotion for certain active-duty list 
              officers in grades of first lieutenant and lieutenant 
              (junior grade).
Sec. 505. Authority for promotion without selection board consideration 
              for all fully qualified officers in grade of first 
              lieutenant or lieutenant (junior grade) in the Navy.
Sec. 506. Authority to adjust date of rank of certain promotions 
              delayed by reason of unusual circumstances.
Sec. 507. Authority for limited extension of medical deferment of 
              mandatory retirement or separation.
Sec. 508. Authority for limited extension on active duty of members 
              subject to mandatory retirement or separation.
Sec. 509. Exemption from certain administrative limitations for retired 
              officers ordered to active duty as defense or service 
              attaches.
Sec. 510. Officer in charge of United States Navy Band.

             Subtitle B--Reserve Component Personnel Policy

Sec. 511. Placement on active-duty list of certain Reserve officers on 
              active duty for a period of three years or less.
Sec. 512. Exception to baccalaureate degree requirement for appointment 
              of Reserve officers to grades above first lieutenant.
Sec. 513. Improved disability benefits for certain reserve component 
              members.
Sec. 514. Time-in-grade requirement for reserve component officers 
              retired with a nonservice-connected disability.
Sec. 515. Equal treatment of Reserves and full-time active duty members 
              for purposes of managing personnel deployments.
Sec. 516. Modification of physical examination requirements for members 
              of the Individual Ready Reserve.
Sec. 517. Retirement of Reserve members without requirement for formal 
              application or request.
Sec. 518. Space-required travel by Reserves on military aircraft.
Sec. 519. Payment of Federal Employee Health Benefit Program premiums 
              for certain Reservists called to active duty in support 
              of contingency operations.

 Subtitle C--Joint Specialty Officers and Joint Professional Military 
                               Education

Sec. 521. Nominations and promotions for joint specialty officers.
Sec. 522. Joint duty credit.
Sec. 523. Retroactive joint service credit for duty in certain joint 
              task forces.
Sec. 524. Revision to annual report on joint officer management.
Sec. 525. Requirement for selection for joint specialty before 
              promotion to general or flag officer grade.
Sec. 526. Independent study of joint officer management and joint 
              professional military education reforms.
Sec. 527. Professional development education.
Sec. 528. Authority for National Defense University to enroll certain 
              private sector civilians.
Sec. 529. Continuation of reserve component professional military 
              education test.

              Subtitle D--Military Education and Training

Sec. 531. Defense Language Institute Foreign Language Center.
Sec. 532. Authority for the Marine Corps University to award degree of 
              master of strategic studies.
Sec. 533. Foreign students attending the service academies.
Sec. 534. Increase in maximum age for appointment as a cadet or 
              midshipman in Senior Reserve Officers' Training Corps 
              scholarship programs.
Sec. 535. Participation of regular enlisted members of the Armed Forces 
              in Senior Reserve Officers' Training Corps program.
Sec. 536. Authority to modify the service obligation of certain ROTC 
              cadets in military junior colleges receiving financial 
              assistance.
Sec. 537. Repeal of limitation on number of Junior Reserve Officers' 
              Training Corps units.
Sec. 538. Modification of nurse officer candidate accession program 
              restriction on students attending educational 
              institutions with senior reserve officers' training 
              programs.
Sec. 539. Reserve health professionals stipend program expansion.
Sec. 540. Housing allowance for the chaplain for the Corps of Cadets at 
              the United States Military Academy.

             Subtitle E--Recruiting and Accession Programs

Sec. 541. 18-month enlistment pilot program.
Sec. 542. Improved benefits under the Army College First program.
Sec. 543. Correction and extension of certain Army recruiting pilot 
              program authorities.
Sec. 544. Military recruiter access to secondary school students.
Sec. 545. Permanent authority for use of military recruiting funds for 
              certain expenses at Department of Defense recruiting 
              functions.
Sec. 546. Report on health and disability benefits for pre-accession 
              training and education programs.

      Subtitle F--Decorations, Awards, and Posthumous Commissions

Sec. 551. Authority for award of the Medal of Honor to Humbert R. 
              Versace, Jon E. Swanson, and Ben L. Salomon for valor.
Sec. 552. Review regarding award of Medal of Honor to certain Jewish 
              American and Hispanic American war veterans.
Sec. 553. Authority to issue duplicate Medals of Honor and to replace 
              stolen military decorations.
Sec. 554. Retroactive Medal of Honor special pension.
Sec. 555. Waiver of time limitations for award of certain decorations 
              to certain persons.
Sec. 556. Sense of Congress on issuance of certain medals.
Sec. 557. Sense of Congress on development of a more comprehensive, 
              uniform policy for the award of decorations to military 
              and civilian personnel of the Department of Defense.
Sec. 558. Posthumous Army commission in the grade of captain in the 
              Chaplains Corps to Ella E. Gibson for service as chaplain 
              of the First Wisconsin Heavy Artillery Regiment during 
              the Civil War.

                    Subtitle G--Funeral Honors Duty

Sec. 561. Participation of military retirees in funeral honors details.
Sec. 562. Funeral honors duty performed by Reserve and Guard members to 
              be treated as inactive-duty training for certain 
              purposes.
Sec. 563. Use of military leave for funeral honors duty by Reserve 
              members and National Guardsmen.
Sec. 564. Authority to provide appropriate articles of clothing as a 
              civilian uniform for civilians participating in funeral 
              honor details.

            Subtitle H--Military Spouses and Family Members

Sec. 571. Improved financial and other assistance to military spouses 
              for job training and education.
Sec. 572. Persons authorized to be included in surveys of military 
              families regarding Federal programs.
Sec. 573. Clarification of treatment of classified information 
              concerning persons in a missing status.
Sec. 574. Transportation to annual meeting of next-of-kin of persons 
              unaccounted for from conflicts after World War II.
Sec. 575. Amendments to charter of Defense Task Force on Domestic 
              Violence.

       Subtitle I--Military Justice and Legal Assistance Matters

Sec. 581. Blood alcohol content limit for the offense under the Uniform 
              Code of Military Justice of drunken operation of a 
              vehicle, aircraft, or vessel.
Sec. 582. Requirement that courts-martial consist of not less than 12 
              members in capital cases.
Sec. 583. Acceptance of voluntary legal assistance for the civil 
              affairs of members and former members of the uniformed 
              services and their dependents.

                       Subtitle J--Other Matters

Sec. 591. Congressional review period for change in ground combat 
              exclusion policy.
Sec. 592. Per diem allowance for lengthy or numerous deployments.
Sec. 593. Clarification of disability severance pay computation.
Sec. 594. Transportation or storage of privately owned vehicles on 
              change of permanent station.
Sec. 595. Repeal of requirement for final Comptroller General report 
              relating to Army end strength allocations.
Sec. 596. Continued Department of Defense administration of National 
              Guard Challenge program and Department of Defense 
              Starbase program.
Sec. 597. Report on Defense Science Board recommendation on original 
              appointments in regular grades for Academy graduates and 
              certain other new officers.
Sec. 598. Sense of Congress regarding the selection of officers for 
              recommendation for appointment as Commander, United 
              States Transportation Command.

[[Page 25201]]


                  Subtitle A--Officer Personnel Policy

     SEC. 501. ENHANCED FLEXIBILITY FOR MANAGEMENT OF SENIOR 
                   GENERAL AND FLAG OFFICER POSITIONS.

       (a) Repeal of Limit on Number of Officers on Active Duty in 
     Grades of General and Admiral.--Section 528 of title 10, 
     United States Code, is repealed.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of chapter 32 of such title is amended by striking 
     the item relating to section 528.

     SEC. 502. CERTIFICATIONS OF SATISFACTORY PERFORMANCE FOR 
                   RETIREMENT OF OFFICERS IN GRADES ABOVE MAJOR 
                   GENERAL AND REAR ADMIRAL.

       Section 1370(c) of title 10, United States Code, is amended 
     by adding at the end the following new paragraph:
       ``(3)(A) The Secretary of Defense may delegate authority to 
     make a certification with respect to an officer under 
     paragraph (1) only to the Under Secretary of Defense for 
     Personnel and Readiness or the Deputy Under Secretary of 
     Defense for Personnel and Readiness.
       ``(B) If authority is delegated under subparagraph (A) and, 
     in the course of consideration of an officer for a 
     certification under paragraph (1), the Under Secretary or (if 
     such authority is delegated to both the Under and Deputy 
     Under Secretary) the Deputy Under Secretary makes a 
     determination described in subparagraph (C) with respect to 
     that officer, the Under Secretary or Deputy Under Secretary, 
     as the case may be, may not exercise the delegated authority 
     in that case, but shall refer the matter to the Secretary of 
     Defense, who shall personally determine whether to issue a 
     certification under paragraph (1) with respect to that 
     officer.
       ``(C) A determination referred to in subparagraph (B) is a 
     determination that there is potentially adverse information 
     concerning an officer and that such information has not 
     previously been submitted to the Senate in connection with 
     the consideration by the Senate of a nomination of that 
     officer for an appointment for which the advice and consent 
     of the Senate is required.''.

     SEC. 503. REVIEW OF ACTIONS OF SELECTION BOARDS.

       (a) In General.--(1) Chapter 79 of title 10, United States 
     Code, is amended by adding at the end the following new 
     section:

     ``Sec. 1558. Review of actions of selection boards: 
       correction of military records by special boards; judicial 
       review

       ``(a) Correction of Military Records.--The Secretary of a 
     military department may correct a person's military records 
     in accordance with a recommendation made by a special board. 
     Any such correction may be made effective as of the effective 
     date of the action taken on a report of a previous selection 
     board that resulted in the action corrected in the person's 
     military records.
       ``(b) Definitions.--In this section:
       ``(1) Special board.--(A) The term `special board' means a 
     board that the Secretary of a military department convenes 
     under any authority to consider whether to recommend a person 
     for appointment, enlistment, reenlistment, assignment, 
     promotion, retention, separation, retirement, or transfer to 
     inactive status in a reserve component instead of referring 
     the records of that person for consideration by a previously 
     convened selection board which considered or should have 
     considered that person.
       ``(B) Such term includes a board for the correction of 
     military records convened under section 1552 of this title, 
     if designated as a special board by the Secretary concerned.
       ``(C) Such term does not include a promotion special 
     selection board convened under section 628 or 14502 of this 
     title.
       ``(2) Selection board.--(A) The term `selection board' 
     means a selection board convened under section 573(c), 580, 
     580a, 581, 611(b), 637, 638, 638a, 14101(b), 14701, 14704, or 
     14705 of this title, and any other board convened by the 
     Secretary of a military department under any authority to 
     recommend persons for appointment, enlistment, reenlistment, 
     assignment, promotion, or retention in the armed forces or 
     for separation, retirement, or transfer to inactive status in 
     a reserve component for the purpose of reducing the number of 
     persons serving in the armed forces.
       ``(B) Such term does not include any of the following:
       ``(i) A promotion board convened under section 573(a), 
     611(a), or 14101(a) of this title.
       ``(ii) A special board.
       ``(iii) A special selection board convened under section 
     628 of this title.
       ``(iv) A board for the correction of military records 
     convened under section 1552 of this title.
       ``(3) Involuntarily board-separated.--The term 
     `involuntarily board-separated' means separated or retired 
     from an armed force, or transferred to the Retired Reserve or 
     to inactive status in a reserve component, as a result of a 
     recommendation of a selection board.
       ``(c) Relief Associated With Correction of Certain 
     Actions.--(1) The Secretary of the military department 
     concerned shall ensure that an involuntarily board-separated 
     person receives relief under paragraph (2) or under paragraph 
     (3) if the person, as a result of a correction of the 
     person's military records under subsection (a), becomes 
     entitled to retention on or restoration to active duty or to 
     active status in a reserve component.
       ``(2)(A) A person referred to in paragraph (1) shall, with 
     that person's consent, be restored to the same status, 
     rights, and entitlements (less appropriate offsets against 
     back pay and allowances) in that person's armed force as the 
     person would have had if the person had not been selected to 
     be involuntarily board-separated as a result of an action the 
     record of which is corrected under subsection (a). An action 
     under this subparagraph is subject to subparagraph (B).
       ``(B) Nothing in subparagraph (A) may be construed to 
     permit a person to be on active duty or in an active status 
     in a reserve component after the date on which the person 
     would have been separated, retired, or transferred to the 
     Retired Reserve or to inactive status in a reserve component 
     if the person had not been selected to be involuntarily 
     board-separated in an action of a selection board the record 
     of which is corrected under subsection (a).
       ``(3) If an involuntarily board-separated person referred 
     to in paragraph (1) does not consent to a restoration of 
     status, rights, and entitlements under paragraph (2), the 
     Secretary concerned shall pay that person back pay and 
     allowances (less appropriate offsets), and shall provide that 
     person service credit, for the period--
       ``(A) beginning on the date of the person's separation, 
     retirement, or transfer to the Retired Reserve or to inactive 
     status in a reserve component, as the case may be; and
       ``(B) ending on the earlier of--
       ``(i) the date on which the person would have been so 
     restored under paragraph (2), as determined by the Secretary 
     concerned; or
       ``(ii) the date on which the person would otherwise have 
     been separated, retired, or transferred to the Retired 
     Reserve or to inactive status in a reserve component, as the 
     case may be.
       ``(d) Finality of Unfavorable Action.--If a special board 
     makes a recommendation not to correct the military records of 
     a person regarding action taken in the case of that person on 
     the basis of a previous report of a selection board, the 
     action previously taken on that report shall be considered as 
     final as of the date of the action taken on that report.
       ``(e) Regulations.--(1) The Secretary of each military 
     department shall prescribe regulations to carry out this 
     section. Regulations under this subsection may not apply to 
     subsection (f), other than to paragraph (4)(C) of that 
     subsection.
       ``(2) The Secretary may prescribe in the regulations under 
     paragraph (1) the circumstances under which consideration by 
     a special board may be provided for under this section, 
     including the following:
       ``(A) The circumstances under which consideration of a 
     person's case by a special board is contingent upon 
     application by or for that person.
       ``(B) Any time limits applicable to the filing of an 
     application for such consideration.
       ``(3) Regulations prescribed by the Secretary of a military 
     department under this subsection may not take effect until 
     approved by the Secretary of Defense.
       ``(f) Judicial Review.--(1) A person seeking to challenge 
     an action or recommendation of a selection board, or an 
     action taken by the Secretary of the military department 
     concerned on the report of a selection board, is not entitled 
     to relief in any judicial proceeding unless the action or 
     recommendation has first been considered by a special board 
     under this section or the Secretary concerned has denied the 
     convening of such a board for such consideration.
       ``(2)(A) A court of the United States may review a 
     determination by the Secretary of a military department not 
     to convene a special board in the case of any person. In any 
     such case, the court may set aside the Secretary's 
     determination only if the court finds the determination to 
     be--
       ``(i) arbitrary or capricious;
       ``(ii) not based on substantial evidence;
       ``(iii) a result of material error of fact or material 
     administrative error; or
       ``(iv) otherwise contrary to law.
       ``(B) If a court sets aside a determination by the 
     Secretary of a military department not to convene a special 
     board, it shall remand the case to the Secretary concerned, 
     who shall provide for consideration by a special board.
       ``(3) A court of the United States may review a 
     recommendation of a special board or an action of the 
     Secretary of the military department concerned on the report 
     of a special board. In any such case, a court may set aside 
     the action only if the court finds that the recommendation or 
     action was--
       ``(A) arbitrary or capricious;
       ``(B) not based on substantial evidence;
       ``(C) a result of material error of fact or material 
     administrative error; or
       ``(D) otherwise contrary to law.
       ``(4)(A) If, six months after receiving a complete 
     application for consideration by a special board in any case, 
     the Secretary concerned has not convened a special board and 
     has not denied consideration by a special board in that case, 
     the Secretary shall be deemed for the purposes of this 
     subsection to have denied consideration of the case by a 
     special board.
       ``(B) If, six months after the convening of a special board 
     in any case, the Secretary concerned has not taken final 
     action on the report of the special board, the Secretary 
     shall be deemed for the purposes of this subsection to have 
     denied relief in such case.
       ``(C) Under regulations prescribed under subsection (e), 
     the Secretary of a military department may waive the 
     applicability of subparagraph (A) or (B) in a case if the 
     Secretary determines that a longer period for consideration 
     of the case is warranted. Such a waiver may be for an 
     additional period of not more than six months. The Secretary 
     concerned may not delegate authority to make a determination 
     under this subparagraph.
       ``(g) Existing Jurisdiction.--Nothing in this section 
     limits--

[[Page 25202]]

       ``(1) the jurisdiction of any court of the United States 
     under any provision of law to determine the validity of any 
     law, regulation, or policy relating to selection boards; or
       ``(2) the authority of the Secretary of a military 
     department to correct a military record under section 1552 of 
     this title.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by adding at the end the following new item:

``1558. Review of actions of selection boards: correction of military 
              records by special boards; judicial review.''.
       (b) Special Selection Boards.--Section 628 of such title is 
     amended--
       (1) by redesignating subsection (g) as subsection (k); and
       (2) by inserting after subsection (f) the following new 
     subsections:
       ``(g) Judicial Review.--(1)(A) A court of the United States 
     may review a determination by the Secretary of a military 
     department under subsection (a)(1) or (b)(1) not to convene a 
     special selection board in the case of any person. In any 
     such case, the court may set aside the Secretary's 
     determination only if the court finds the determination to 
     be--
       ``(i) arbitrary or capricious;
       ``(ii) not based on substantial evidence;
       ``(iii) a result of material error of fact or material 
     administrative error; or
       ``(iv) otherwise contrary to law.
       ``(B) If a court sets aside a determination by the 
     Secretary of a military department not to convene a special 
     selection board under this section, it shall remand the case 
     to the Secretary concerned, who shall provide for 
     consideration by such a board.
       ``(2) A court of the United States may review the action of 
     a special selection board convened under this section or an 
     action of the Secretary of the military department concerned 
     on the report of such a board. In any such case, a court may 
     set aside the action only if the court finds that the action 
     was--
       ``(A) arbitrary or capricious;
       ``(B) not based on substantial evidence;
       ``(C) a result of material error of fact or material 
     administrative error; or
       ``(D) otherwise contrary to law.
       ``(3)(A) If, six months after receiving a complete 
     application for consideration by a special selection board 
     under this section in any case, the Secretary concerned has 
     not convened such a board and has not denied consideration by 
     such a board in that case, the Secretary shall be deemed for 
     the purposes of this subsection to have denied the 
     consideration of the case by such a board.
       ``(B) If, six months after the convening of a special 
     selection board under this section in any case, the Secretary 
     concerned has not taken final action on the report of the 
     board, the Secretary shall be deemed for the purposes of this 
     subsection to have denied relief in such case.
       ``(C) Under regulations prescribed under subsection (j), 
     the Secretary of a military department may waive the 
     applicability of subparagraph (A) or (B) in a case if the 
     Secretary determines that a longer period for consideration 
     of the case is warranted. Such a waiver may be for an 
     additional period of not more than six months. The Secretary 
     concerned may not delegate authority to make a determination 
     under this subparagraph.
       ``(h) Limitations of Other Jurisdiction.--No official or 
     court of the United States may, with respect to a claim based 
     to any extent on the failure of a person to be selected for 
     promotion by a promotion board--
       ``(1) consider the claim unless the person has first been 
     referred by the Secretary concerned to a special selection 
     board convened under this section and acted upon by that 
     board and the report of the board has been approved by the 
     President; or
       ``(2) except as provided in subsection (g), grant any 
     relief on the claim unless the person has been selected for 
     promotion by a special selection board convened under this 
     section to consider the person for recommendation for 
     promotion and the report of the board has been approved by 
     the President.
       ``(i) Existing Jurisdiction.--Nothing in this section 
     limits--
       ``(1) the jurisdiction of any court of the United States 
     under any provision of law to determine the validity of any 
     law, regulation, or policy relating to selection boards; or
       ``(2) the authority of the Secretary of a military 
     department to correct a military record under section 1552 of 
     this title.
       ``(j) Regulations.--(1) The Secretary of each military 
     department shall prescribe regulations to carry out this 
     section. Regulations under this subsection may not apply to 
     subsection (g), other than to paragraph (3)(C) of that 
     subsection.
       ``(2) The Secretary may prescribe in the regulations under 
     paragraph (1) the circumstances under which consideration by 
     a special selection board may be provided for under this 
     section, including the following:
       ``(A) The circumstances under which consideration of a 
     person's case by a special selection board is contingent upon 
     application by or for that person.
       ``(B) Any time limits applicable to the filing of an 
     application for such consideration.
       ``(3) Regulations prescribed by the Secretary of a military 
     department under this subsection may not take effect until 
     approved by the Secretary of Defense.''.
       (c) Effective Date.--(1) Except as provided in paragraph 
     (2), the amendments made by this section shall apply with 
     respect to any proceeding pending on or after the date of the 
     enactment of this Act without regard to whether a challenge 
     to an action of a selection board of any of the Armed Forces 
     being considered in the proceeding was initiated before, on, 
     or after that date.
       (2) The amendments made by this section shall not apply 
     with respect to any action commenced in a court of the United 
     States before the date of the enactment of this Act.

     SEC. 504. TEMPORARY REDUCTION OF TIME-IN-GRADE REQUIREMENT 
                   FOR ELIGIBILITY FOR PROMOTION FOR CERTAIN 
                   ACTIVE-DUTY LIST OFFICERS IN GRADES OF FIRST 
                   LIEUTENANT AND LIEUTENANT (JUNIOR GRADE).

       (a) Authority.--Subsection (a)(1)(B) of section 619 of 
     title 10, United States Code, is amended by inserting before 
     the period at the end the following: ``, except that the 
     minimum period of service in effect under this subparagraph 
     before October 1, 2005, shall be eighteen months''.
       (b) Stylistic Amendments.--Such section is further amended 
     as follows:
       (1) Subsection (a) is amended by striking ``(a)(1)'' and 
     inserting ``(a) Time-in-Grade Requirements.--(1)''.
       (2) Subsection (b) is amended by striking ``(b)(1)'' and 
     inserting ``(b) Continued Eligibility for Consideration for 
     Promotion of Officers Who Have Previously Failed of 
     Selection.--(1)''.
       (3) Subsection (c) is amended by striking ``(c)(1)'' and 
     inserting ``(c) Officers To Be Considered by Promotion 
     Boards.--(1)''.
       (4) Subsection (d) is amended by inserting ``Certain 
     Officers Not To Be Considered.--'' after ``(d)''.
       (c) Technical Amendment.--Subsection (a)(4) of such section 
     is amended by striking ``clause (A)'' and inserting 
     ``subparagraph (A)''.

     SEC. 505. AUTHORITY FOR PROMOTION WITHOUT SELECTION BOARD 
                   CONSIDERATION FOR ALL FULLY QUALIFIED OFFICERS 
                   IN GRADE OF FIRST LIEUTENANT OR LIEUTENANT 
                   (JUNIOR GRADE) IN THE NAVY.

       (a) Active-Duty List Promotions.--(1) Section 624(a) of 
     title 10, United States Code, is amended by adding at the end 
     the following new paragraph:
       ``(3)(A) Except as provided in subsection (d), officers on 
     the active-duty list in the grade of first lieutenant or, in 
     the case of the Navy, lieutenant (junior grade) who are on an 
     approved all-fully-qualified-officers list shall be promoted 
     to the next higher grade in accordance with regulations 
     prescribed by the Secretary concerned.
       ``(B) An all-fully-qualified-officers list shall be 
     considered to be approved for purposes of subparagraph (A) 
     when the list is approved by the President. When so approved, 
     such a list shall be treated in the same manner as a 
     promotion list under this chapter.
       ``(C) The Secretary of a military department may make a 
     recommendation to the President for approval of an all-fully-
     qualified-officers list only when the Secretary determines 
     that all officers on the list are needed in the next higher 
     grade to accomplish mission objectives.
       ``(D) For purposes of this paragraph, an all-fully-
     qualified-officers list is a list of all officers on the 
     active-duty list in a grade who the Secretary of the military 
     department concerned determines--
       ``(i) are fully qualified for promotion to the next higher 
     grade; and
       ``(ii) would be eligible for consideration for promotion to 
     the next higher grade by a selection board convened under 
     section 611(a) of this title upon the convening of such a 
     board.''.
       (2) Section 631 of such title is amended by adding at the 
     end the following new subsection:
       ``(d) For the purposes of this chapter, an officer of the 
     Army, Air Force, or Marine Corps who holds the grade of first 
     lieutenant, and an officer of the Navy who holds the grade of 
     lieutenant (junior grade), shall be treated as having failed 
     of selection for promotion if the Secretary of the military 
     department concerned determines that the officer would be 
     eligible for consideration for promotion to the next higher 
     grade by a selection board convened under section 611(a) of 
     this title if such a board were convened but is not fully 
     qualified for promotion when recommending for promotion under 
     section 624(a)(3) of this title all fully qualified officers 
     of the officer's armed force in such grade who would be 
     eligible for such consideration.''.
       (3) Section 611 of such title is amended--
       (A) in subsection (a)--
       (i) by striking ``Under'' and all that follows through 
     ``require,'' and inserting ``Whenever the needs of the 
     service require, the Secretary of the military department 
     concerned''; and
       (ii) by adding at the end the following new sentence: ``The 
     preceding sentence does not require the convening of a 
     selection board in the case of officers in the permanent 
     grade of first lieutenant or, in the case of the Navy, 
     lieutenant (junior grade) when the Secretary concerned 
     recommends for promotion to the next higher grade under 
     section 624(a)(3) of this title all such officers whom the 
     Secretary finds to be fully qualified for promotion.'';
       (B) in subsection (b), by striking ``Under'' and all that 
     follows through ``require,'' and inserting ``Whenever the 
     needs of the service require, the Secretary of the military 
     department concerned''; and
       (C) by adding at the end the following new subsection:
       ``(c) The convening of selection boards under subsections 
     (a) and (b) shall be under regulations prescribed by the 
     Secretary of Defense.''.
       (b) Reserve Active-Status List Promotions.--(1) Section 
     14308(b) of title 10, United

[[Page 25203]]

     States Code, is amended by adding at the end the following 
     new paragraph:
       ``(4)(A) Officers in the permanent grade of first 
     lieutenant or, in the case of the Navy, lieutenant (junior 
     grade) who are on an approved all-fully-qualified-officers 
     list shall be promoted to the next higher grade in accordance 
     with regulations prescribed by the Secretary concerned. Such 
     promotions shall be in the manner specified in section 12203 
     of this title.
       ``(B) An all-fully-qualified-officers list shall be 
     considered to be approved for purposes of subparagraph (A) 
     when the list is approved by the President. When so approved, 
     such a list shall be treated in the same manner as a 
     promotion list under this chapter and chapter 1403 of this 
     title.
       ``(C) The Secretary of a military department may make a 
     recommendation to the President for approval of an all-fully-
     qualified-officers list only when the Secretary determines 
     that all officers on the list are needed in the next higher 
     grade to accomplish mission objectives.
       ``(D) For purposes of this paragraph, an all-fully-
     qualified-officers list is a list of all officers on the 
     reserve active-status list in a grade who the Secretary of 
     the military department concerned determines--
       ``(i) are fully qualified for promotion to the next higher 
     grade; and
       ``(ii) would be eligible for consideration for promotion to 
     the next higher grade by a selection board convened under 
     section 14101(a) of this title upon the convening of such a 
     board.''.
       (2) Section 14504 of such title is amended by adding at the 
     end the following new subsection:
       ``(c) Officers in Grade of First Lieutenant or Lieutenant 
     (Junior Grade) Found Not Fully Qualified for Promotion.--For 
     the purposes of this chapter, an officer of the Army, Air 
     Force, or Marine Corps on a reserve active-status list who 
     holds the grade of first lieutenant, and an officer of the 
     Navy on a reserve active-status list who holds the grade of 
     lieutenant (junior grade), shall be treated as having failed 
     of selection for promotion if the Secretary of the military 
     department concerned determines that the officer would be 
     eligible for consideration for promotion to the next higher 
     grade by a selection board convened under section 14101(a) of 
     this title if such a board were convened but is not fully 
     qualified for promotion when recommending for promotion under 
     section 14308(b)(4) of this title all fully qualified 
     officers of the officer's armed force in such grade who would 
     be eligible for such consideration.''.
       (3) Section 14101(a) of such title is amended by adding at 
     the end the following new paragraph:
       ``(3) Paragraph (1) does not require the convening of a 
     selection board in the case of officers in the permanent 
     grade of first lieutenant or, in the case of the Navy, 
     lieutenant (junior grade) when the Secretary concerned 
     recommends for promotion to the next higher grade under 
     section 14308(b)(4) of this title all such officers whom the 
     Secretary finds to be fully qualified for promotion.''.
       (c) Conforming Amendments.--Title 10, United States Code, 
     is amended as follows:
       (1)(A) Section 619(d) is amended by adding at the end the 
     following new paragraph:
       ``(4) An officer in the grade of first lieutenant or, in 
     the case of the Navy, lieutenant (junior grade) who is on an 
     approved all-fully-qualified-officers list under section 
     624(a)(3) of this title.''.
       (B) Section 14301(c) is amended by adding at the end the 
     following new paragraph:
       ``(5) An officer in the grade of first lieutenant or, in 
     the case of the Navy, lieutenant (junior grade) who is on an 
     approved all-fully-qualified-officers list under section 
     14308(b)(4) of this title.''.
       (2)(A) Section 624(d) is amended--
       (i) in the second sentence of paragraph (1), by inserting 
     after ``on the promotion list'' the following: ``(including 
     an approved all-fully-qualified-officers list, if 
     applicable)''; and
       (ii) in the second sentence of paragraph (2), by inserting 
     after ``to such grade, the officer'' the following: ``shall 
     be retained on the promotion list (including an approved all-
     fully-qualified-officers list, if applicable) and''.
       (B) Section 14311 is amended--
       (i) in subsection (a)(2), by inserting after ``on the 
     promotion list'' the following: ``(including an approved all-
     fully-qualified-officers list, if applicable)''; and
       (ii) in subsection (b), by inserting in the second sentence 
     after ``on the promotion list'' the following: ``(including 
     an approved all-fully-qualified-officers list, if 
     applicable)''.
       (3)(A) Section 628(a)(1) is amended by inserting after 
     ``not so considered,'' the following: ``or the name of a 
     person that should have been placed on an all-fully-
     qualified-officers list under section 624(a)(3) of this title 
     was not so placed,''.
       (B) Section 14502(a)(1) is amended by inserting after 
     ``because of administrative error,'' the following: ``or 
     whose name was not placed on an all-fully-qualified-officers 
     list under section 14308(b)(4) of this title because of 
     administrative error,''.
       (4) Section 1211(e) is amended by inserting after ``a 
     promotion list,'' the following: ``an approved all-fully-
     qualified-officers list,''.
       (d) Technical Amendments To Strike Certain DOPMA References 
     to Regular Officers.--Chapter 36 of such title is amended as 
     follows:
       (1) Section 624(c) is amended--
       (A) by inserting ``, in the case of officers of the Army, 
     Air Force, or Marine Corps,'' after ``captain''; and
       (B) by inserting ``, in the case of officers of the Navy,'' 
     after ``or lieutenant'' the second place it appears.
       (2) Section 630 is amended by striking ``regular'' both 
     places it appears.
       (3) Sections 631(a) and 632(a) are each amended--
       (A) by striking ``Regular Army, Regular Air Force, or 
     Regular Marine Corps'' and inserting ``Army, Air Force, or 
     Marine Corps on the active-duty list'';
       (B) by striking ``Regular Navy'' and inserting ``Navy on 
     the active-duty list''; and
       (C) by striking ``regular'' each place it appears.
       (4)(A) The heading of section 630 and the item relating to 
     that section in the table of sections at the beginning of 
     subchapter III are each amended by striking the third word.
       (B) The heading of section 631 and the item relating to 
     that section in the table of sections at the beginning of 
     subchapter III are each amended by striking the eighth word.
       (C) The heading of section 632 and the item relating to 
     that section in the table of sections at the beginning of 
     subchapter III are each amended by striking the eighth and 
     twenty-first words.

     SEC. 506. AUTHORITY TO ADJUST DATE OF RANK OF CERTAIN 
                   PROMOTIONS DELAYED BY REASON OF UNUSUAL 
                   CIRCUMSTANCES.

       (a) Active Duty Officers.--Subsection 741(d) of title 10, 
     United States Code, is amended by adding at the end the 
     following new paragraph:
       ``(4)(A) The Secretary concerned may adjust the date of 
     rank of an officer appointed under section 624(a) of this 
     title to a higher grade that is not a general officer or flag 
     officer grade if the appointment of that officer to that 
     grade is delayed from the date on which (as determined by the 
     Secretary) it would otherwise have been made by reason of 
     unusual circumstances (as determined by the Secretary) that 
     cause an unintended delay in--
       ``(i) the processing or approval of the report of the 
     selection board recommending the appointment of that officer 
     to that grade; or
       ``(ii) the processing or approval of the promotion list 
     established on the basis of that report.
       ``(B) The adjusted date of rank applicable to the grade of 
     an officer under subparagraph (A) shall be consistent--
       ``(i) with the officer's position on the promotion list for 
     that grade and competitive category when additional officers 
     in that grade and competitive category were needed; and
       ``(ii) with compliance with the applicable authorized 
     strengths for officers in that grade and competitive 
     category.
       ``(C) The adjusted date of rank applicable to the grade of 
     an officer under subparagraph (A) shall be the effective date 
     for--
       ``(i) the officer's pay and allowances for that grade; and
       ``(ii) the officer's position on the active-duty list.
       ``(D) When under subparagraph (A) the Secretary concerned 
     adjusts the date of rank of an officer in a grade to which 
     the officer was appointed by and with the advice and consent 
     of the Senate and the adjustment is to a date before the date 
     of the advice and consent of the Senate to that appointment, 
     the Secretary shall promptly transmit to the Committee on 
     Armed Services of the Senate a notification of that 
     adjustment. Any such notification shall include the name of 
     the officer and a discussion of the reasons for the 
     adjustment of date of rank.
       ``(E) Any adjustment in date of rank under this paragraph 
     shall be made under regulations prescribed by the Secretary 
     of Defense, which shall apply uniformly among the Army, Navy, 
     Air Force, and Marine Corps.''.
       (b) Reserve Officers.--(1) Section 14308(c) of such title 
     is amended--
       (A) by redesignating paragraph (2) as paragraph (3); and
       (B) by inserting after paragraph (1) the following new 
     paragraph (2):
       ``(2) The date of rank of an officer appointed to a higher 
     grade under this section may be adjusted in the same manner 
     as an adjustment may be made under section 741(d)(4) of this 
     title in the date of rank of an officer appointed to a higher 
     grade under section 624(a) of this title. In any use of the 
     authority under the preceding sentence, subparagraph (C)(ii) 
     of such section shall be applied by substituting `reserve 
     active-status list' for `active-duty list'.''.
       (2) Paragraph (3) of such section, as redesignated by 
     paragraph (1)(A), is amended by inserting ``provided in 
     paragraph (2) or as otherwise'' after ``Except as''.
       (c) Effective Date.--(1) Paragraph (4) of section 741(d) of 
     title 10, United States Code, as added by subsection (a), and 
     paragraph (2) of section 14308(c) of such title, as added by 
     subsection (b), shall apply with respect to any report of a 
     selection board recommending officers for promotion to the 
     next higher grade that is submitted to the Secretary of the 
     military department concerned on or after the date of the 
     enactment of this Act.
       (2) The Secretary of the military department concerned may 
     apply the applicable paragraph referred to in paragraph (1) 
     in the case of an appointment of an officer to a higher grade 
     resulting from a report of a selection board submitted to the 
     Secretary before the date of the enactment of this Act if the 
     Secretary determines that such appointment would have been 
     made on an earlier date that is on or after October 1, 2001, 
     and was delayed under the circumstances specified in 
     paragraph (4) of section 741(d) of title 10, United States 
     Code, as added by subsection (a).

[[Page 25204]]



     SEC. 507. AUTHORITY FOR LIMITED EXTENSION OF MEDICAL 
                   DEFERMENT OF MANDATORY RETIREMENT OR 
                   SEPARATION.

       The text of section 640 of title 10, United States Code, is 
     amended to read as follows:
       ``(a) If the Secretary of the military department concerned 
     determines that the evaluation of the physical condition of 
     an officer and determination of the officer's entitlement to 
     retirement or separation for physical disability require 
     hospitalization or medical observation and that such 
     hospitalization or medical observation cannot be completed 
     with confidence in a manner consistent with the member's well 
     being before the date on which the officer would otherwise be 
     required to retire or be separated under this title, the 
     Secretary may defer the retirement or separation of the 
     officer under this title.
       ``(b) A deferral of retirement or separation under 
     subsection (a) may not extend for more than 30 days after 
     completion of the evaluation requiring hospitalization or 
     medical observation.''.

     SEC. 508. AUTHORITY FOR LIMITED EXTENSION ON ACTIVE DUTY OF 
                   MEMBERS SUBJECT TO MANDATORY RETIREMENT OR 
                   SEPARATION.

       (a) Section 12305 Stop-Loss Authority.--Section 12305 of 
     title 10, United States Code, is amended by adding at the end 
     the following new subsection:
       ``(c) Upon the termination of a suspension made under the 
     authority of subsection (a) of a provision of law otherwise 
     requiring the separation or retirement of officers on active 
     duty because of age, length of service or length of service 
     in grade, or failure of selection for promotion, the 
     Secretary concerned shall extend by up to 90 days the 
     otherwise required separation or retirement date of any 
     officer covered by the suspended provision whose separation 
     or retirement date, but for the suspension, would have been 
     before the date of the termination of the suspension or 
     within 90 days after the date of such termination.''.
       (b) Section 123 Stop-Loss Authority.--Section 123 of such 
     title is amended by adding at the end the following new 
     subsection:
       ``(d) Upon the termination of a suspension made under the 
     authority of subsection (a) of a provision of law otherwise 
     requiring the separation or retirement of officers on active 
     duty because of age, length of service or length of service 
     in grade, or failure of selection for promotion, the 
     Secretary concerned shall extend by up to 90 days the 
     otherwise required separation or retirement date of any 
     officer covered by the suspended provision whose separation 
     or retirement date, but for the suspension, would have been 
     before the date of the termination of the suspension or 
     within 90 days after the date of such termination.''.

     SEC. 509. EXEMPTION FROM CERTAIN ADMINISTRATIVE LIMITATIONS 
                   FOR RETIRED OFFICERS ORDERED TO ACTIVE DUTY AS 
                   DEFENSE OR SERVICE ATTACHES.

       (a) Limitation of Period of Recalled Service.--Section 
     688(e)(2) of title 10, United States Code, is amended by 
     adding at the end the following new subparagraph:
       ``(D) An officer who is assigned to duty as a defense 
     attache or service attache for the period of active duty to 
     which ordered.''.
       (b) Limitation on Number of Recalled Officers on Active 
     Duty.--Section 690(b)(2) of such title is amended by adding 
     at the end the following new subparagraph:
       ``(E) An officer who is assigned to duty as a defense 
     attache or service attache for the period of active duty to 
     which ordered.''.
       (c) Applicability.--The amendments made by subsections (a) 
     and (b) shall apply with respect to officers serving on 
     active duty as a defense attache or service attache on or 
     after the date of the enactment of this Act.

     SEC. 510. OFFICER IN CHARGE OF UNITED STATES NAVY BAND.

       (a) Detail and Grade.--Section 6221 of title 10, United 
     States Code, is amended to read as follows:

     Sec. 6221. United States Navy Band; officer in charge

       ``(a) There is a Navy band known as the United States Navy 
     Band.
       ``(b)(1) An officer of the Navy designated for limited duty 
     under section 5589 or 5596 of this title who is serving in a 
     grade above lieutenant may be detailed by the Secretary of 
     the Navy as Officer in Charge of the United States Navy Band.
       ``(2) While serving as Officer in Charge of the United 
     States Navy Band, an officer shall hold the grade of captain 
     if appointed to that grade by the President, by and with the 
     advice and consent of the Senate. Such an appointment may be 
     made notwithstanding section 5596(d) of this title.''.
       (b) Clerical Amendment.--The item relating to such section 
     in the table of sections at the beginning of chapter 565 of 
     such title is amended to read as follows:

``6221. United States Navy Band; officer in charge.''.
             Subtitle B--Reserve Component Personnel Policy

     SEC. 511. PLACEMENT ON ACTIVE-DUTY LIST OF CERTAIN RESERVE 
                   OFFICERS ON ACTIVE DUTY FOR A PERIOD OF THREE 
                   YEARS OR LESS.

       (a) Clarification of Exemption.--Section 641(1)(D) of title 
     10, United States Code, is amended to read as follows:
       ``(D) on active duty under section 12301(d) of this title, 
     other than as provided under subparagraph (C), if the call or 
     order to active duty, under regulations prescribed by the 
     Secretary concerned, specifies a period of three years or 
     less and continued placement on the reserve active-status 
     list;''.
       (b) Retroactive Application.--(1) The Secretary of the 
     military department concerned may provide that an officer who 
     was excluded from the active-duty list under section 
     641(1)(D) of title 10, United States Code, as amended by 
     section 521 of the Floyd D. Spence National Defense 
     Authorization Act for Fiscal Year 2001 (as enacted into law 
     by Public Law 106-398; 114 Stat. 1654A-108), shall be 
     considered to have been on the active-duty list during the 
     period beginning on the date on which the officer was so 
     excluded and ending on the date of the enactment of this Act.
       (2) The Secretary of the military department concerned may 
     provide that a Reserve officer who was placed on the active-
     duty list on or after October 30, 1997, shall be placed on 
     the reserve active-status list if the officer otherwise meets 
     the conditions specified in section 641(1)(D) of title 10, 
     United States Code, as amended by subsection (a).

     SEC. 512. EXCEPTION TO BACCALAUREATE DEGREE REQUIREMENT FOR 
                   APPOINTMENT OF RESERVE OFFICERS TO GRADES ABOVE 
                   FIRST LIEUTENANT.

       (a) Reauthorization of Waiver Authority for Army OCS 
     Graduates and Inclusion of Certain Marine Officers.--Section 
     12205 of title 10, United States Code, is amended by adding 
     at the end the following new subsection:
       ``(d) Waiver Authority for Army OCS Graduates and Certain 
     Marine Corps Officers.--(1) The Secretary of the Army may 
     waive the applicability of subsection (a) to any officer 
     whose original appointment in the Army as a Reserve officer 
     is through the Army Officer Candidate School program.
       ``(2) The Secretary of the Navy may waive the applicability 
     of subsection (a) to any officer whose original appointment 
     in the Marine Corps as a Reserve officer is through the 
     Marine Corps meritorious commissioning program.
       ``(3) Any such waiver shall be made on a case-by-case 
     basis, considering the individual circumstances of the 
     officer involved, and may continue in effect for no more than 
     two years after the waiver is granted. The Secretary 
     concerned may provide for such a waiver to be effective 
     before the date of the waiver, as appropriate in an 
     individual case.''.
       (b) Effective Date.--Subsection (d) of section 12205 of 
     title 10, United States Code, as added by subsection (a), 
     shall apply with respect to officers appointed before, on, or 
     after the date of the enactment of this Act.

     SEC. 513. IMPROVED DISABILITY BENEFITS FOR CERTAIN RESERVE 
                   COMPONENT MEMBERS.

       (a) Medical and Dental Care.--Sections 1074a(a)(3) and 
     1076(a)(2)(C) of title 10, United States Code, are each 
     amended by striking ``, if the'' and all that follows through 
     ``member's residence''.
       (b) Eligibility for Disability Retirement or Separation.--
     Sections 1204(2)(B)(iii) and 1206(2)(B)(iii) of title 10, 
     United States Code, are each amended by striking ``, if the'' 
     and all that follows through ``member's residence''.
       (c) Recovery, Care, and Disposition of Remains.--Section 
     1481(a)(2)(D) of title 10, United States Code, is amended by 
     striking ``, if the site is outside reasonable commuting 
     distance from the member's residence''.
       (d) Entitlement to Basic Pay.--Subsections (g)(1)(D) and 
     (h)(1)(D) of section 204 of title 37, United States Code, are 
     amended by striking ``, if the site is outside reasonable 
     commuting distance from the member's residence''.
       (e) Compensation for Inactive-Duty Training.--Section 
     206(a)(3)(C) of title 37, United States Code, is amended by 
     striking ``, if the site is outside reasonable commuting 
     distance from the member's residence''.

     SEC. 514. TIME-IN-GRADE REQUIREMENT FOR RESERVE COMPONENT 
                   OFFICERS RETIRED WITH A NONSERVICE CONNECTED 
                   DISABILITY.

       Section 1370(d)(3)(B) of title 10, United States Code, is 
     amended to read as follows:
       ``(B) A person covered by subparagraph (A) who has 
     completed at least six months of satisfactory service in 
     grade may be credited with satisfactory service in the grade 
     in which serving at the time of transfer or discharge, 
     notwithstanding failure of the person to complete three years 
     of service in that grade, if that person is transferred from 
     an active status or discharged as a reserve commissioned 
     officer--
       ``(i) solely due to the requirements of a nondiscretionary 
     provision of law requiring that transfer or discharge due to 
     the person's age or years of service; or
       ``(ii) because the person no longer meets the 
     qualifications for membership in the Ready Reserve solely 
     because of a physical disability, as determined, at a 
     minimum, by a medical evaluation board and at the time of 
     such transfer or discharge such person (pursuant to section 
     12731b of this title or otherwise) meets the service 
     requirements established by section 12731(a) of this title 
     for eligibility for retired pay under chapter 1223 of this 
     title, unless the disability is described in section 12731b 
     of this title.''.

     SEC. 515. EQUAL TREATMENT OF RESERVES AND FULL-TIME ACTIVE 
                   DUTY MEMBERS FOR PURPOSES OF MANAGING PERSONNEL 
                   DEPLOYMENTS.

       (a) Residence of Reserves at Home Station.--Paragraph (2) 
     of section 991(b) of title 10, United States Code, is amended 
     to read as follows:

[[Page 25205]]

       ``(2) In the case of a member of a reserve component who is 
     performing active service pursuant to orders that do not 
     establish a permanent change of station, the housing referred 
     to in paragraph (1) is any housing (which may include the 
     member's residence) that the member usually occupies for use 
     during off-duty time when on garrison duty at the member's 
     permanent duty station or homeport, as the case may be.''.
       (b) Effective Date.--The amendment made by this section 
     shall apply with respect to duty performed on or after 
     October 1, 2001.

     SEC. 516. MODIFICATION OF PHYSICAL EXAMINATION REQUIREMENTS 
                   FOR MEMBERS OF THE INDIVIDUAL READY RESERVE.

       (a) IRR Requirement.--Section 10206 of title 10, United 
     States Code, is amended--
       (1) in the matter in subsection (a) preceding paragraph 
     (1), by striking ``Ready Reserve'' and inserting ``Selected 
     Reserve'';
       (2) by designating the second sentence of subsection (a) as 
     subsection (c);
       (3) by redesignating subsection (b) as subsection (d); and
       (4) by inserting after subsection (a) the following new 
     subsection (b):
       ``(b) A member of the Individual Ready Reserve or inactive 
     National Guard shall be examined for physical fitness as 
     necessary to determine the member's physical fitness for--
       ``(1) military duty or promotion;
       ``(2) attendance at a school of the armed forces; or
       ``(3) other action related to career progression.''.
       (b) Technical Amendment.--Subsection (a)(1) of such section 
     is amended by striking ``his'' and inserting ``the 
     member's''.

     SEC. 517. RETIREMENT OF RESERVE MEMBERS WITHOUT REQUIREMENT 
                   FOR FORMAL APPLICATION OR REQUEST.

       (a) Retired Reserve.--Section 10154(2) of title 10, United 
     States Code, is amended by striking ``upon their request''.
       (b) Retirement for Failure of Selection of Promotion.--(1) 
     Paragraph (2) of section 14513 of such title is amended by 
     striking ``, if the officer is qualified and applies for such 
     transfer'' and inserting ``if the officer is qualified for 
     such transfer and does not request (in accordance with 
     regulations prescribed by the Secretary concerned) not to be 
     transferred to the Retired Reserve''.
       (2)(A) The heading for such section is amended to read as 
     follows:

     ``Sec. 14513. Failure of selection for promotion: transfer, 
       retirement, or discharge''.

       (B) The item relating to such section in the table of 
     sections at the beginning of chapter 1407 of such title is 
     amended to read as follows:

``14513. Failure of selection for promotion: transfer, retirement, or 
              discharge.''.
       (c) Retirement for Years of Service or After Selection for 
     Early Removal.--Section 14514 of such title is amended--
       (1) in paragraph (1), by striking ``, if the officer is 
     qualified and applies for such transfer'' and inserting ``if 
     the officer is qualified for such transfer and does not 
     request (in accordance with regulations prescribed by the 
     Secretary concerned) not to be transferred to the Retired 
     Reserve''; and
       (2) by striking paragraph (2) and inserting the following:
       ``(2) be discharged from the officer's reserve appointment 
     if the officer is not qualified for transfer to the Retired 
     Reserve or has requested (in accordance with regulations 
     prescribed by the Secretary concerned) not to be so 
     transferred.''.
       (d) Retirement for Age.--Section 14515 of such title is 
     amended--
       (1) in paragraph (1), by striking ``, if the officer is 
     qualified and applies for such transfer'' and inserting ``if 
     the officer is qualified for such transfer and does not 
     request (in accordance with regulations prescribed by the 
     Secretary concerned) not to be transferred to the Retired 
     Reserve''; and
       (2) by striking paragraph (2) and inserting the following:
       ``(2) be discharged from the officer's reserve appointment 
     if the officer is not qualified for transfer to the Retired 
     Reserve or has requested (in accordance with regula tions 
     prescribed by the Secretary concerned) not to be so 
     transferred.''.
       (e) Discharge or Retirement of Warrant Officers for Years 
     of Service or Age.--(1) Chapter 1207 of such title is amended 
     by adding at the end the following new section:

     ``Sec. 12244. Warrant officers: discharge or retirement for 
       years of service or for age

       ``Each reserve warrant officer of the Army, Navy, Air 
     Force, or Marine Corps who is in an active status and has 
     reached the maximum years of service or age prescribed by the 
     Secretary concerned shall--
       ``(1) be transferred to the Retired Reserve if the warrant 
     officer is qualified for such transfer and does not request 
     (in accordance with regulations prescribed by the Secretary 
     concerned) not to be transferred to the Retired Reserve; or
       ``(2) be discharged if the warrant officer is not qualified 
     for transfer to the Retired Reserve or has requested (in 
     accordance with regulations prescribed by the Secretary 
     concerned) not to be so transferred.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by adding at the end the following new item:

``12244. Warrant officers: discharge or retirement for years of service 
              or for age.''.
       (f) Discharge or Retirement of Enlisted Members for Years 
     of Service or Age.--(1) Chapter 1203 of such title is amended 
     by adding at the end the following new section:

     ``Sec. 12108. Enlisted members: discharge or retirement for 
       years of service or for age

       ``Each reserve enlisted member of the Army, Navy, Air 
     Force, or Marine Corps who is in an active status and has 
     reached the maximum years of service or age prescribed by the 
     Secretary concerned shall--
       ``(1) be transferred to the Retired Reserve if the member 
     is qualified for such transfer and does not request (in 
     accordance with regulations prescribed by the Secretary 
     concerned) not to be transferred to the Retired Reserve; or
       ``(2) be discharged if the member is not qualified for 
     transfer to the Retired Reserve or has requested (in 
     accordance with regulations prescribed by the Secretary 
     concerned) not to be so transferred.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by adding at the end the following new item:

``12108. Enlisted members: discharge or retirement for years of service 
              or for age.''.
       (g) Effective Date.--The amendments made by this section 
     shall take effect on the first day of the first month that 
     begins more than 180 days after the date of the enactment of 
     this Act.

     SEC. 518. SPACE-REQUIRED TRAVEL BY RESERVES ON MILITARY 
                   AIRCRAFT.

       (a) Correction of Impairment to Authorized Travel With 
     Allowances.--Subsection (a) of section 18505 of title 10, 
     United States Code, is amended by striking ``annual training 
     duty or'' each place it appears.
       (b) Conforming Amendments.--The heading for such section, 
     and the item relating to such section in the table of 
     sections at the beginning of chapter 1805 of such title, are 
     each amended by striking the fourth, fifth, sixth, and 
     seventh words.

     SEC. 519. PAYMENT OF FEDERAL EMPLOYEE HEALTH BENEFIT PROGRAM 
                   PREMIUMS FOR CERTAIN RESERVISTS CALLED TO 
                   ACTIVE DUTY IN SUPPORT OF CONTINGENCY 
                   OPERATIONS.

       (a) In General.--Subsection (e) of section 8906 of title 5, 
     United States Code, is amended by adding at the end the 
     following new paragraph:
       ``(3)(A) An employing agency may pay both the employee and 
     Government contributions, and any additional administrative 
     expenses otherwise chargeable to the employee, with respect 
     to health care coverage for an employee described in 
     subparagraph (B) and the family of such employee.
       ``(B) An employee referred to in subparagraph (A) is an 
     employee who--
       ``(i) is enrolled in a health benefits plan under this 
     chapter;
       ``(ii) is a member of a reserve component of the armed 
     forces;
       ``(iii) is called or ordered to active duty in support of a 
     contingency operation (as defined in section 101(a)(13) of 
     title 10);
       ``(iv) is placed on leave without pay or separated from 
     service to perform active duty; and
       ``(v) serves on active duty for a period of more than 30 
     consecutive days.
       ``(C) Notwithstanding the one-year limitation on coverage 
     described in paragraph (1)(A), payment may be made under this 
     paragraph for a period not to exceed 18 months.''.
       (b) Conforming Amendment.--The matter preceding paragraph 
     (1) in subsection (f) of such section is amended to read as 
     follows:
       ``(f) The Government contribution, and any additional 
     payments under subsection (e)(3)(A), for health benefits for 
     an employee shall be paid--''.
       (c) Applicability.--The amendments made by this section 
     apply with respect to employees called to active duty on or 
     after December 8, 1995, and an agency may make retroactive 
     payments to such employees for premiums paid on or after such 
     date.
 Subtitle C--Joint Specialty Officers and Joint Professional Military 
                               Education

     SEC. 521. NOMINATIONS AND PROMOTIONS FOR JOINT SPECIALTY 
                   OFFICERS.

       (a) Selection of Officers for the Joint Speciality.--
     Paragraph (2) of section 661(b) of title 10, United States 
     Code, is amended by striking ``The Secretaries'' and all that 
     follows through ``officers--'' and inserting ``Each officer 
     on the active-duty list on the date of the enactment of the 
     National Defense Authorization Act for Fiscal Year 2002 who 
     has not before that date been nominated for the joint 
     specialty by the Secretary of a military department, and each 
     officer who is placed on the active-duty list after such 
     date, who meets the requirements of subsection (c) shall 
     automatically be considered to have been nominated for the 
     joint specialty. From among those officers considered to be 
     nominated for the joint specialty, the Secretary may select 
     for the joint specialty only officers--''.
       (b) Promotion Rate for Officers With the Joint Specialty.--
     Paragraph (2) of section 662(a) of such title is amended by 
     striking ``promoted at a rate'' and inserting ``promoted--
       ``(A) during the three-year period beginning on the date of 
     the enactment of the National Defense Authorization Act for 
     Fiscal Year 2002, at a rate not less than the rate for 
     officers of the same armed force in the same grade and 
     competitive category; and
       ``(B) after the end of the period specified in subparagraph 
     (A), at a rate''.

     SEC. 522. JOINT DUTY CREDIT.

       Paragraph (4) of section 664(i) of title 10, United States 
     Code, is amended--

[[Page 25206]]

       (1) in subparagraph (E), by striking ``The'' and inserting 
     ``Except as provided in subparagraph (F), the''; and
       (2) by adding at the end the following new subparagraph:
       ``(F) Service in a temporary joint task force assignment 
     not involved in combat or combat-related operations may not 
     be credited for the purposes of joint duty, unless, and only 
     if--
       ``(i) the service of the officer and the nature of the 
     joint task force not only meet all criteria of this section, 
     except subparagraph (E), but also any additional criteria the 
     Secretary may establish;
       ``(ii) the Secretary has specifically approved the 
     operation conducted by the joint task force as one that 
     qualifies for joint service credit, and notifies Congress 
     upon each approval, providing the criteria that led to that 
     approval; and
       ``(iii) the operation is conducted by the joint task force 
     in an environment where an extremely fragile state of peace 
     and high potential for hostilities coexist.''.

     SEC. 523. RETROACTIVE JOINT SERVICE CREDIT FOR DUTY IN 
                   CERTAIN JOINT TASK FORCES.

       (a) Authority.--In accordance with section 664(i) of title 
     10, United States Code, as amended by section 522, the 
     Secretary of Defense may award joint service credit to any 
     officer who served on the staff of a United States joint task 
     force headquarters in an operation and during the period set 
     forth in subsection (b) and who meets the criteria specified 
     in such section. To determine which officers qualify for such 
     retroactive credit, the Secretary shall undertake a case-by-
     case review of the records of officers.
       (b) Eligible Operations.--Service in the following 
     operations, during the specified periods, may be counted for 
     credit under subsection (a):
       (1) Operation Northern Watch, during the period beginning 
     on August 1, 1992, and ending on a date to be determined.
       (2) Operation Southern Watch, during the period beginning 
     on August 27, 1992, and ending on a date to be determined.
       (3) Operation Able Sentry, during the period beginning on 
     June 26, 1993, and ending on February 28, 1999.
       (4) Operation Joint Endeavor, during the period beginning 
     on December 25, 1995, and ending on December 19, 1996.
       (5) Operation Joint Guard, during the period beginning on 
     December 20, 1996, and ending on June 20, 1998.
       (6) Operation Desert Thunder, beginning on January 24, 
     1998, and ending on December 15, 1998.
       (7) Operation Joint Forge, beginning on June 20, 1998, and 
     ending on June 10, 1999.
       (8) Operation Noble Anvil, beginning on March 24, 1999, and 
     ending on July 20, 1999.
       (9) Operation Joint Guardian, beginning on June 11, 1999, 
     and ending on a date to be determined.
       (c) Report.--Not later than one year after the date of the 
     enactment of this Act, the Secretary of Defense shall submit 
     to Congress a report of the numbers, by service, grade, and 
     operation, of the officers given joint service credit in 
     accordance with this section.

     SEC. 524. REVISION TO ANNUAL REPORT ON JOINT OFFICER 
                   MANAGEMENT.

       Section 667 of title 10, United States Code, is amended--
       (1) in paragraph (1)--
       (A) by inserting ``(A)'' after ``(1)''; and
       (B) by adding at the end the following new subparagraph:
       ``(B) The number of officers who meet the criteria for 
     selection for the joint specialty but were not selected, 
     together with the reasons why.'';
       (2) by amending paragraph (2) to read as follows:
       ``(2) The number of officers with the joint specialty, 
     shown by grade and branch or specialty and by education.'';
       (3) in paragraph (3)--
       (A) in subparagraph (A) and (B), by striking ``nominated'' 
     and inserting ``selected'';
       (B) by inserting ``and'' at the end of subparagraph (D);
       (C) by striking subparagraph (E); and
       (D) by redesignating subparagraph (F) as subparagraph (E);
       (4) in paragraph (4)(A), by striking ``nominated'' and 
     inserting ``selected'';
       (5) in paragraph (14)--
       (A) by inserting ``(A)'' after ``(14)''; and
       (B) by adding at the end the following new subparagraph:
       ``(B) An assessment of the extent to which the Secretary of 
     each military department is assigning personnel to joint duty 
     assignments in accordance with this chapter and the policies, 
     procedures, and practices established by the Secretary of 
     Defense under section 661(a) of this title.''; and
       (6) in paragraph (16), by striking ``section 664(i)'' in 
     the matter preceding subparagraph (A) and in subparagraph (B) 
     and inserting ``subparagraphs (E) and (F) of section 
     664(i)(4)''.

     SEC. 525. REQUIREMENT FOR SELECTION FOR JOINT SPECIALTY 
                   BEFORE PROMOTION TO GENERAL OR FLAG OFFICER 
                   GRADE.

       (a) Requirement.--Subsection (a) of section 619a of title 
     10, United States Code, is amended by striking ``unless'' and 
     all that follows and inserting ``unless--
       ``(1) the officer has completed a full tour of duty in a 
     joint duty assignment (as described in section 664(f) of this 
     title); and
       ``(2) for appointments after September 30, 2007, the 
     officer has been selected for the joint specialty in 
     accordance with section 661 of this title.''.
       (b) Waiver Authority.--Subsection (b) of that section is 
     amended by striking ``may waive subsection (a) in the 
     following circumstances:'' and inserting ``may waive 
     paragraph (1) or paragraph (2) of subsection (a), or both 
     paragraphs (1) and (2) of subsection (a), in the following 
     circumstances:''.
       (c) Proposed Legislative Changes.--Not later than December 
     1, 2002, the Secretary of Defense shall submit to Congress a 
     draft proposal for such legislative changes as the Secretary 
     considers needed to implement the amendment made by 
     subsections (a) and (b).

     SEC. 526. INDEPENDENT STUDY OF JOINT OFFICER MANAGEMENT AND 
                   JOINT PROFESSIONAL MILITARY EDUCATION REFORMS.

       (a) Study.--The Secretary of Defense shall provide for an 
     independent study of the joint officer management system and 
     the joint professional military education system. The 
     Secretary shall ensure that the entity conducting the study 
     is provided such information and support as required. The 
     Secretary shall include in the contract for the study a 
     requirement that the entity conducting the study submit a 
     report to Congress on the study not later than one year after 
     the date of the enactment of this Act.
       (b) Matters To Be Included With Respect to Joint Officer 
     Management.--With respect to the joint officer management 
     system, the entity conducting the independent study shall 
     provide for the following:
       (1) Assessment of implications for joint officer education, 
     development, and management that would result from proposed 
     joint organizational operational concepts (such as standing 
     joint task forces) and from emerging officer management and 
     personnel reforms (such as longer careers and more 
     stabilization), that are under consideration by the Secretary 
     of Defense.
       (2) Assessment of the effectiveness of the current joint 
     officer management system to develop and use joint specialty 
     qualified officers in meeting both current and future 
     requirements for joint specialty officers.
       (3) Recommendations, based on empirical and other data, to 
     improve the effectiveness of the joint officer management 
     system, especially with regard to the following:
       (A) The proper mix and sequencing of education assignments 
     and experience assignments (to include, with respect to both 
     types of assignments, consideration of the type and quality, 
     and the length, of such assignments) to qualify an officer as 
     a joint specialty officer, as well as the implications of 
     adopting a variable joint duty tour length and the 
     advisability and implications of a system of qualifying 
     officers as joint specialty officers that uses multiple 
     shorter qualification tracks to selection as a joint 
     specialty officer than are now codified.
       (B) The system of using joint specialty officers, including 
     the continued utility of such measures as--
       (i) the required fill of positions on the joint duty 
     assignment list, as specified in paragraphs (1) and (4) of 
     section 661(d) of title 10, United States Code;
       (ii) the fill by such officers of a required number of 
     critical billets, as prescribed by section 661(d)(2) of such 
     title;
       (iii) the mandated fill by general and flag officers of a 
     minimum number of critical billets, as prescribed by section 
     661(d)(3) of such title; and
       (iv) current promotion policy objectives for officers with 
     the joint specialty, officers serving on the Joint Staff, and 
     officers serving in joint duty assignment list positions, as 
     prescribed by section 662 of such title.
       (C) Changes in policy and law required to provide officers 
     the required joint specialty qualification before promotion 
     to general or flag officer grade.
       (D) A determination of the number of reserve component 
     officers who would be qualified for designation as a joint 
     specialty officer by reason of experience or education if the 
     standards of existing law, including waiver authorities, were 
     applied to them, and recommendations for a process for 
     qualifying and employing future reserve component officers as 
     joint specialty officers.
       (c) Matters To Be Included With Respect to Joint 
     Professional Military Education.--With respect to the joint 
     professional military education system, the entity conducting 
     the independent study shall provide for the following:
       (1) The number of officers who under the current system (A) 
     qualified as joint specialty officers by attending joint 
     professional military education programs before their first 
     joint duty assignment, (B) qualified as joint specialty 
     officers after arriving at their first joint duty assignment 
     but before completing that assignment, and (C) qualified as 
     joint specialty officers without any joint professional 
     military education.
       (2) Recommended initiatives (include changes in officer 
     personnel management law, if necessary) to provide incentives 
     and otherwise facilitate attendance at joint professional 
     military education programs before an officer's first joint 
     duty assignment.
       (3) Recommended goals for attendance at the Joint Forces 
     Staff College en route to a first joint duty assignment.
       (4) An assessment of the continuing utility of statutory 
     requirements for use of officers following joint professional 
     military education, as prescribed by section 662(d) of title 
     10, United States Code.
       (5) Determination of whether joint professional military 
     education programs should remain principally an in-resident, 
     multi-service

[[Page 25207]]

     experience and what role non-resident or distributive 
     learning can or should play in future joint professional 
     military education programs.
       (6) Examination of options for the length of and increased 
     capacity at Joint Forces Staff College, and whether other in-
     resident joint professional military education sources should 
     be opened, and if opened, how they might be properly 
     accredited and overseen to provide instruction at the level 
     of the program designated as ``joint professional military 
     education''.
       (d) Chairman of Joint Chiefs of Staff.--With respect to the 
     roles of the Secretary of Defense and the Chairman of the 
     Joint Chiefs of Staff, the entity conducting the independent 
     study shall--
       (1) provide for an evaluation of the current roles of the 
     Secretary of Defense, the Chairman of the Joint Chiefs of 
     Staff, and joint staff in law, policy, and implementation 
     with regard to establishing and maintaining oversight of 
     joint officer management, career guidelines, and joint 
     professional military education; and
       (2) make recommendations to improve and strengthen those 
     roles.
       (e) Requirements for Study Entity.--In providing for the 
     independent study required by subsection (a), the Secretary 
     of Defense shall ensure that the entity conducting the 
     study--
       (1) is not a Department of Defense organization; and
       (2) shall, at a minimum, involve in the study, in an 
     integral way, the following persons:
       (A) The Chairman of the Joint Chiefs of Staff and available 
     former Chairmen of the Joint Chiefs of Staff.
       (B) Members and former members of the Joint Staff, the 
     Armed Forces, the Congress, and congressional staff who are 
     or who have been significantly involved in the development, 
     implementation, or modification of joint officer management 
     and joint professional military education.
       (C) Experts in joint officer management and education from 
     civilian academic and research centers.

     SEC. 527. PROFESSIONAL DEVELOPMENT EDUCATION.

       (a) Executive Agent for Funding.--(1) Effective beginning 
     with fiscal year 2003, the Secretary of Defense shall be the 
     executive agent for funding professional development 
     education operations of all components of the National 
     Defense University, including the Joint Forces Staff College. 
     The Secretary may not delegate the Secretary's functions and 
     responsibilities under the preceding sentence to the 
     Secretary of a military department.
       (2) Nothing in this subsection affects policies in effect 
     on the date of the enactment of this Act with respect to--
       (A) the reporting of the President of the National Defense 
     University to the Chairman of the Joint Chiefs of Staff; or
       (B) provision of logistical and base operations support for 
     components of the National Defense University by the military 
     departments.
       (b) Preparation of Budget Requests.--Section 2162(b) of 
     title 10, United States Code, is amended--
       (1) by redesignating paragraph (2) as paragraph (3); and
       (2) by inserting after paragraph (1) the following new 
     paragraph:
       ``(2) As executive agent for funding professional 
     development education at the National Defense University, 
     including the Joint Forces Staff College, the Secretary of 
     Defense, with the advice of the Chairman of the Joint Chiefs 
     of Staff, shall prepare the annual budget for professional 
     development education operations at the National Defense 
     University and set forth that request as a separate budget 
     request in the materials submitted to Congress in support of 
     the budget request for the Department of Defense. Nothing in 
     the preceding sentence affects policies in effect on the date 
     of the enactment of this paragraph with respect to budgeting 
     for the funding of logistical and base operations support for 
     components of the National Defense University through the 
     military departments.''.
       (c) Funding Source.--(1) Section 2165 of title 10, United 
     States Code, is amended by adding at the end the following 
     new subsection:
       ``(d) Source of Funds for Professional Development 
     Education Operations.--Funding for the professional 
     development education operations of the National Defense 
     University shall be provided from funds made available to the 
     Secretary of Defense from the annual appropriation `Operation 
     and Maintenance, Defense-wide'.''.
       (2) Subsection (d) of section 2165 of title 10, United 
     States Code, as added by paragraph (1), shall become 
     effective beginning with fiscal year 2003.

     SEC. 528. AUTHORITY FOR NATIONAL DEFENSE UNIVERSITY TO ENROLL 
                   CERTAIN PRIVATE SECTOR CIVILIANS.

       (a) In General.--(1) Chapter 108 of title 10, United States 
     Code, is amended by adding at the end the following new 
     section:

     ``Sec. 2167. National Defense University: admission of 
       private sector civilians to professional military education 
       program

       ``(a) Authority for Admission.--The Secretary of Defense 
     may permit eligible private sector employees who work in 
     organizations relevant to national security to receive 
     instruction at the National Defense University in accordance 
     with this section. No more than the equivalent of 10 full-
     time student positions may be filled at any one time by 
     private sector employees enrolled under this section. Upon 
     successful completion of the course of instruction in which 
     enrolled, any such private sector employee may be awarded an 
     appropriate diploma or degree under section 2165 of this 
     title.
       ``(b) Eligible Private Sector Employees.--For purposes of 
     this section, an eligible private sector employee is an 
     individual employed by a private firm that is engaged in 
     providing to the Department of Defense or other Government 
     departments or agencies significant and substantial defense-
     related systems, products, or services or whose work product 
     is relevant to national security policy or strategy. A 
     private sector employee admitted for instruction at the 
     National Defense University remains eligible for such 
     instruction only so long as that person remains employed by 
     the same firm.
       ``(c) Annual Certification by Secretary of Defense.--
     Private sector employees may receive instruction at the 
     National Defense University during any academic year only if, 
     before the start of that academic year, the Secretary of 
     Defense determines, and certifies to the Committee on Armed 
     Services of the Senate and the Committee on Armed Services of 
     the House of Representatives, that providing instruction to 
     private sector employees under this section during that year 
     will further national security interests of the United 
     States.
       ``(d) Program Requirements.--The Secretary of Defense shall 
     ensure that--
       ``(1) the curriculum for the professional military 
     education program in which private sector employees may be 
     enrolled under this section is not readily available through 
     other schools and concentrates on national security relevant 
     issues; and
       ``(2) the course offerings at the National Defense 
     University continue to be determined solely by the needs of 
     the Department of Defense.
       ``(e) Tuition.--The President of the National Defense 
     University shall charge students enrolled under this section 
     a rate--
       ``(1) that is at least the rate charged for employees of 
     the United States outside the Department of Defense, less 
     infrastructure costs, and
       ``(2) that considers the value to the school and course of 
     the private sector student.
       ``(f) Standards of Conduct.--While receiving instruction at 
     the National Defense University, students enrolled under this 
     section, to the extent practicable, are subject to the same 
     regulations governing academic performance, attendance, norms 
     of behavior, and enrollment as apply to Government civilian 
     employees receiving instruction at the university.
       ``(g) Use of Funds.--Amounts received by the National 
     Defense University for instruction of students enrolled under 
     this section shall be retained by the university to defray 
     the costs of such instruction. The source, and the 
     disposition, of such funds shall be specifically identified 
     in records of the university.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by adding at the end the following new item:

``2167. National Defense University: admission of private sector 
              civilians to professional military education program.''.
       (b) Effective Date.--Section 2167 of title 10, United 
     States Code, as added by subsection (a), shall take effect on 
     January 1, 2002.

     SEC. 529. CONTINUATION OF RESERVE COMPONENT PROFESSIONAL 
                   MILITARY EDUCATION TEST.

       (a) Continuation of Concept Validation Test.--During fiscal 
     year 2002, the Secretary of Defense shall continue the 
     concept validation test of Reserve component joint 
     professional military education that was begun in fiscal year 
     2001 at the National Defense University.
       (b) Pilot Program.--If the Secretary of Defense determines 
     that the results of the concept validation test referred to 
     in subsection (a) warrant conducting a pilot program of the 
     concept that was the subject of the test, the Secretary shall 
     conduct such a pilot program during fiscal year 2003.
       (c) Funding.--The Secretary shall provide funds for the 
     concept validation test under subsection (a) and for any 
     pilot program under subsection (b) from funds appropriated to 
     the Secretary of Defense in addition those appropriated for 
     operations of the National Defense University.
              Subtitle D--Military Education and Training

     SEC. 531. DEFENSE LANGUAGE INSTITUTE FOREIGN LANGUAGE CENTER.

       (a) Authority To Confer Associate of Arts Degree.--Chapter 
     108 of title 10, United States Code, is amended by adding 
     after section 2167, as added by section 528(a)(1), the 
     following new section:

     ``Sec. 2168. Defense Language Institute Foreign Language 
       Center: degree of Associate of Arts in foreign language

       ``(a) Subject to subsection (b), the Commandant of the 
     Defense Language Institute may confer an Associate of Arts 
     degree in a foreign language upon any graduate of the Foreign 
     Language Center of the Institute who fulfills the 
     requirements for that degree.
       ``(b) A degree may be conferred upon a student under this 
     section only if the Provost of the Center certifies to the 
     Commandant that the student has satisfied all the 
     requirements prescribed for the degree.
       ``(c) The authority provided by subsection (a) shall be 
     exercised under regulations prescribed by the Secretary of 
     Defense.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of such chapter is amended by adding after the item 
     relating to section 2167, as added by section 528(a)(2), the 
     following new item:


[[Page 25208]]


``2168. Defense Language Institute Foreign Language Center: degree of 
              Associate of Arts in foreign language.''.

     SEC. 532. AUTHORITY FOR THE MARINE CORPS UNIVERSITY TO AWARD 
                   DEGREE OF MASTER OF STRATEGIC STUDIES.

       (a) Marine Corps War College Degree.--Section 7102 of title 
     10, United States Code, is amended--
       (1) by redesignating subsection (b) as subsection (c); and
       (2) by inserting after subsection (a) the following new 
     subsection (b):
       ``(b) Marine Corps War College.--Upon the recommendation of 
     the Director and faculty of the Marine Corps War College of 
     the Marine Corps University, the President of the Marine 
     Corps University may confer the degree of master of strategic 
     studies upon graduates of the Marine Corps War College who 
     fulfill the requirements for that degree.''.
       (b) Conforming Amendments.--(1) Subsection (a) of such 
     section is amended by striking ``upon graduates'' and all 
     that follows and inserting ``upon graduates of the Command 
     and Staff College who fulfill the requirements for that 
     degree.''.
       (2) Subsection (c) of such section, as redesignated by 
     subsection (a)(1), is amended by striking ``subsection (a)'' 
     and inserting ``subsections (a) and (b)''.
       (3)(A) The heading of such section is amended to read as 
     follows:

     ``Sec. 7102. Marine Corps University: masters degrees; board 
       of advisors''.

       (B) The item relating to such section in the table of 
     sections at the beginning of chapter 609 of such title is 
     amended to read as follows:

``7102. Marine Corps University: masters degrees; board of advisors.''.

       (c) Codification of Requirement for Board of Advisors.--(1) 
     Section 7102 of title 10, United States Code, as amended by 
     subsections (a) and (b), is further amended by adding at the 
     end the following new subsection:
       ``(d) Board of Advisors.--The Secretary of the Navy shall 
     establish a board of advisors for the Marine Corps 
     University. The Secretary shall ensure that the board is 
     established so as to meet all requirements of the appropriate 
     regional accrediting association.''.
       (2) Section 912 of the National Defense Authorization Act 
     for Fiscal Year 1995 (Public Law 103-337; 10 U.S.C. 7102 
     note) is repealed.
       (d) Effective Date.--The authority to confer the degree of 
     master of strategic studies under section 7102(b) of title 
     10, United States Code (as added by subsection (a)) may not 
     be exercised until the Secretary of Education determines, and 
     certifies to the President of the Marine Corps University, 
     that the requirements established by the Marine Corps War 
     College of the Marine Corps University for that degree are in 
     accordance with generally applicable requirements for a 
     degree of master of arts. Upon receipt of such a 
     certification, the President of the University shall promptly 
     transmit a copy of the certification to the Committee on 
     Armed Services of the Senate and Committee on Armed Services 
     of the House of Representatives.

     SEC. 533. FOREIGN STUDENTS ATTENDING THE SERVICE ACADEMIES.

       (a) United States Military Academy.--(1) Subsection (a)(1) 
     of section 4344 of title 10, United States Code, is amended 
     by striking ``not more than 40 persons'' and inserting ``not 
     more than 60 persons''.
       (2) Subsection (b) of such section is amended--
       (A) in paragraph (2), by striking ``unless a written waiver 
     of reimbursement is granted by the Secretary of Defense'' in 
     the first sentence; and
       (B) by striking paragraph (3) and inserting the following:
       ``(3) The Secretary of Defense may waive, in whole or in 
     part, the requirement for reimbursement of the cost of 
     instruction for a cadet under paragraph (2). In the case of a 
     partial waiver, the Secretary shall establish the amount 
     waived.''.
       (3) The amendments made by paragraph (2) shall not apply 
     with respect to any person who entered the United States 
     Military Academy to receive instruction under section 4344 of 
     title 10, United States Code, before the date of the 
     enactment of this Act.
       (b) United States Naval Academy.--(1) Subsection (a)(1) of 
     section 6957 of such title is amended by striking ``not more 
     than 40 persons'' and inserting ``not more than 60 persons''.
       (2) Subsection (b) of such section is amended--
       (A) in paragraph (2), by striking ``unless a written waiver 
     of reimbursement is granted by the Secretary of Defense'' in 
     the first sentence; and
       (B) by striking paragraph (3) and inserting the following:
       ``(3) The Secretary of Defense may waive, in whole or in 
     part, the requirement for reimbursement of the cost of 
     instruction for a midshipman under paragraph (2). In the case 
     of a partial waiver, the Secretary shall establish the amount 
     waived.''.
       (3) The amendments made by paragraph (2) shall not apply 
     with respect to any person who entered the United States 
     Naval Academy to receive instruction under section 6957 of 
     title 10, United States Code, before the date of the 
     enactment of this Act.
       (c) United States Air Force Academy.--(1) Subsection (a)(1) 
     of section 9344 of such title is amended by striking ``not 
     more than 40 persons'' and inserting ``not more than 60 
     persons''.
       (2) Subsection (b) of such section is amended--
       (A) in paragraph (2), by striking ``unless a written waiver 
     of reimbursement is granted by the Secretary of Defense'' in 
     the first sentence; and
       (B) by striking paragraph (3) and inserting the following:
       ``(3) The Secretary of Defense may waive, in whole or in 
     part, the requirement for reimbursement of the cost of 
     instruction for a cadet under paragraph (2). In the case of a 
     partial waiver, the Secretary shall establish the amount 
     waived.''.
       (3) The amendments made by paragraph (2) shall not apply 
     with respect to any person who entered the United States Air 
     Force Academy to receive instruction under section 9344 of 
     title 10, United States Code, before the date of the 
     enactment of this Act.
       (d) Effective Date.--The amendments made by this section 
     shall not apply with respect to any academic year that began 
     before the date of the enactment of this Act.

     SEC. 534. INCREASE IN MAXIMUM AGE FOR APPOINTMENT AS A CADET 
                   OR MIDSHIPMAN IN SENIOR RESERVE OFFICERS' 
                   TRAINING CORPS SCHOLARSHIP PROGRAMS.

       (a) General ROTC Scholarship Program.--Section 2107(a) of 
     title 10, United States Code, is amended--
       (1) by striking ``27 years of age on June 30'' and 
     inserting ``31 years of age on December 31''; and
       (2) by striking ``, except that'' and all that follows 
     through ``on such date'' the second place it appears.
       (b) Army Reserve and Army National Guard ROTC Scholarship 
     Program.--Section 2107a(a)(1) of such title is amended--
       (1) by striking ``27 years of age on June 30'' and 
     inserting ``31 years of age on December 31''; and
       (2) by striking ``, except that'' and all that follows 
     through ``on such date'' the second place it appears.

     SEC. 535. PARTICIPATION OF REGULAR ENLISTED MEMBERS OF THE 
                   ARMED FORCES IN SENIOR RESERVE OFFICERS' 
                   TRAINING CORPS PROGRAM.

       (a) Eligibility.--Section 2104(b)(3) of title 10, United 
     States Code, is amended by striking ``a reserve component 
     of''.
       (b) Pay Rate While on Field Training or Practice Cruise.--
     Section 209(c) of title 37, United States Code, is amended by 
     inserting before the period at the end the following: ``, 
     except that the rate for a cadet or midshipmen who is a 
     member of the regular component of an armed force shall be 
     the rate of basic pay applicable to the member under section 
     203 of this title''.

     SEC. 536. AUTHORITY TO MODIFY THE SERVICE OBLIGATION OF 
                   CERTAIN ROTC CADETS IN MILITARY JUNIOR COLLEGES 
                   RECEIVING FINANCIAL ASSISTANCE.

       (a) Authority To Modify Agreements.--Subsection (b) of 
     section 2107a of title 10, United States Code, is amended--
       (1) by inserting ``(1)'' after ``(b)'';
       (2) by redesignating paragraphs (1), (2), (3), (4), (5), 
     and (6) as subparagraphs (A), (B), (C), (D), (E), and (F), 
     respectively;
       (3) by designating the sentence following subparagraph (F), 
     as so redesignated, as paragraph (2); and
       (4) by adding at the end the following new paragraph:
       ``(3) In the case of a cadet under this section at a 
     military junior college, the Secretary may, at any time and 
     with the consent of the cadet concerned, modify an agreement 
     described in paragraph (1)(F) submitted by the cadet to 
     reduce or eliminate the troop program unit service obligation 
     specified in the agreement and to establish, in lieu of that 
     obligation, an active duty service obligation. Such a 
     modification may be made only if the Secretary determines 
     that it is in the best interests of the United States to do 
     so.''.
       (b) Retroactive Application.--The authority of the 
     Secretary of Defense under paragraph (3) of section 2107a(b) 
     of title 10, United States Code, as added by subsection (a), 
     may be exercised with regard to any agreement described in 
     paragraph (1)(F) of such section (including agreements 
     related to participation in the Advanced Course of the Army 
     Reserve Officers' Training Corps at a military college or 
     civilian institution) that was entered into during the period 
     beginning on January 1, 1991, and ending on July 12, 2000 (in 
     addition to any agreement described in that paragraph that is 
     entered into on or after the date of the enactment of this 
     Act).
       (c) Technical Amendment.--Subsection (h) of such section is 
     amended by striking ``military college'' in the second 
     sentence and inserting ``military junior college''.

     SEC. 537. REPEAL OF LIMITATION ON NUMBER OF JUNIOR RESERVE 
                   OFFICERS' TRAINING CORPS UNITS.

       Section 2031(a)(1) of title 10, United States Code, is 
     amended by striking the second sentence.

     SEC. 538. MODIFICATION OF NURSE OFFICER CANDIDATE ACCESSION 
                   PROGRAM RESTRICTION ON STUDENTS ATTENDING 
                   EDUCATIONAL INSTITUTIONS WITH SENIOR RESERVE 
                   OFFICERS' TRAINING PROGRAMS.

       Section 2130a of title 10, United States Code, is amended--
       (1) in subsection (a)(2), by striking ``that does not have 
     a Senior Reserve Officers' Training Program established under 
     section 2102 of this title''; and
       (2) in subsection (b)(1), by inserting before the semicolon 
     at the end ``or that has a Senior Reserve Officers' Training 
     Program for which the student is ineligible''.

[[Page 25209]]



     SEC. 539. RESERVE HEALTH PROFESSIONALS STIPEND PROGRAM 
                   EXPANSION.

       (a) Purpose of Program.--Subsection (a) of section 16201 of 
     title 10, United States Code, is amended--
       (1) by striking ``specialties critically needed in 
     wartime'';
       (2) by striking ``training in such specialties'' and 
     inserting ``training that leads to a degree in medicine or 
     dentistry or training in a health professions specialty that 
     is critically needed in wartime''; and
       (3) by striking ``training in certain health care 
     specialties'' and inserting ``health care education and 
     training''.
       (b) Medical and Dental Student Stipend.--Such section is 
     further amended--
       (1) by redesignating subsections (b), (c), (d), and (e) as 
     subsections (c), (d), (e), and (f), respectively; and
       (2) by inserting after subsection (a) the following new 
     subsection (b):
       ``(b) Medical and Dental School Students.--(1) Under the 
     stipend program under this chapter, the Secretary of the 
     military department concerned may enter into an agreement 
     with a person who--
       ``(A) is eligible to be appointed as an officer in a 
     reserve component;
       ``(B) is enrolled or has been accepted for enrollment in an 
     institution in a course of study that results in a degree in 
     medicine or dentistry;
       ``(C) signs an agreement that, unless sooner separated, the 
     person will--
       ``(i) complete the educational phase of the program;
       ``(ii) accept a reappointment or redesignation within the 
     person's reserve component, if tendered, based upon the 
     person's health profession, following satisfactory completion 
     of the educational and intern programs; and
       ``(iii) participate in a residency program; and
       ``(D) if required by regulations prescribed by the 
     Secretary of Defense, agrees to apply for, if eligible, and 
     accept, if offered, residency training in a health profession 
     skill which has been designated by the Secretary of Defense 
     as a critically needed wartime skill.
       ``(2) Under the agreement--
       ``(A) the Secretary of the military department concerned 
     shall agree to pay the participant a stipend, in the amount 
     determined under subsection (f), for the period or the 
     remainder of the period that the student is satisfactorily 
     progressing toward a degree in medicine or dentistry while 
     enrolled in an accredited medical or dental school;
       ``(B) the participant shall not be eligible to receive such 
     stipend before appointment, designation, or assignment as an 
     officer for service in the Ready Reserve;
       ``(C) the participant shall be subject to such active duty 
     requirements as may be specified in the agreement and to 
     active duty in time of war or national emergency as provided 
     by law for members of the Ready Reserve; and
       ``(D) the participant shall agree to serve in the Selected 
     Reserve, upon successful completion of the program, for the 
     period of service applicable under paragraph (3).
       ``(3)(A) Subject to subparagraph (B), the period for which 
     a participant is required to serve in the Selected Reserve 
     under the agreement pursuant to paragraph (2)(D) shall be one 
     year for each period of six months, or part thereof, for 
     which the participant is provided a stipend pursuant to the 
     agreement.
       ``(B) In the case of a participant who enters into a 
     subsequent agreement under subsection (c) and successfully 
     completes residency training in a specialty designated by the 
     Secretary of Defense as a specialty critically needed by the 
     military department in wartime, the requirement to serve in 
     the Selected Reserve may be reduced to one year for each 
     year, or part thereof, for which the stipend was provided 
     while enrolled in medical or dental school.''.
       (c) Wartime Critical Skills.--Subsection (c) of such 
     section (as redesignated by subsection (b)(1)) is amended--
       (1) by inserting ``Wartime'' after ``Critical'' in the 
     heading; and
       (2) by inserting ``or has been appointed as a medical or 
     dental officer in the Reserve of the armed force concerned'' 
     in paragraph (1)(B) before the semicolon at the end.
       (d) Service Obligation Requirement.--Paragraph (2)(D) of 
     subsection (c) of such section (as redesignated by subsection 
     (b)(1)) and paragraph (2)(D) of subsection (d) of such 
     section (as so redesignated) are amended by striking ``two 
     years in the Ready Reserve for each year,'' and inserting 
     ``one year in the Ready Reserve for each six months,''.
       (e) Cross-Reference.--Paragraph (2)(A) of subsection (c) of 
     such section (as redesignated by subsection (b)(1)) and 
     paragraph (2)(A) of subsection (d) of such section (as so 
     redesignated) are amended by striking ``subsection (e)'' and 
     inserting ``subsection (f)''.

     SEC. 540. HOUSING ALLOWANCE FOR THE CHAPLAIN FOR THE CORPS OF 
                   CADETS AT THE UNITED STATES MILITARY ACADEMY.

       (a) Authority.--The second sentence of section 4337 of 
     title 10, United States Code, is amended by striking ``the 
     same allowances'' and all that follows through ``captain'' 
     and inserting ``a monthly housing allowance in the same 
     amount as the basic allowance for housing allowed to a 
     lieutenant colonel''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall take effect on the first day of the first month 
     beginning on or after the date of the enactment of this Act.
             Subtitle E--Recruiting and Accession Programs

     SEC. 541. 18-MONTH ENLISTMENT PILOT PROGRAM.

       (a) In General.--(1) Chapter 333 of title 10, United States 
     Code, is amended by adding at the end the following new 
     section:

     ``Sec. 3264. 18-month enlistment pilot program

       ``(a) During the pilot program period, the Secretary of the 
     Army shall carry out a pilot program with the objective of 
     increasing participation of prior service persons in the 
     Selected Reserve and providing assistance in building the 
     pool of participants in the Individual Ready Reserve.
       ``(b) Under the program, the Secretary may, notwithstanding 
     section 505(c) of this title, accept persons for original 
     enlistment in the Army for a term of enlistment consisting of 
     18 months service on active duty, to be followed by three 
     years of service in the Selected Reserve and then service in 
     the Individual Ready Reserve to complete the military service 
     obligation.
       ``(c) Under regulations and conditions established by the 
     Secretary of the Army, a member enlisting under this section 
     may, at the end of the 18-month period of service on active 
     duty under that enlistment, be permitted to reenlist for 
     continued service on active duty in lieu of the service in 
     the Selected Reserve and the Individual Ready Reserve 
     otherwise required under the terms of the member's 
     enlistment.
       ``(d) No more than 10,000 persons may be accepted for 
     enlistment in the Army through the program under this 
     section.
       ``(e) A person enlisting in the Army through the program 
     under this section is eligible for an enlistment bonus under 
     section 309 of title 37, notwithstanding the enlistment time 
     period specified in subsection (a) of that section.
       ``(f) For purposes of this section, the pilot program 
     period is the period beginning on the date selected by the 
     Secretary of the Army for the commencement of the pilot 
     program, which date shall be not later than October 1, 2003, 
     and ending on December 31, 2007.
       ``(g) Not later than December 31, 2007, and December 31, 
     2012, the Secretary of the Army shall submit to the Committee 
     on Armed Services of the Senate and the Committee on Armed 
     Services of the House of Representatives a report on the 
     program under this section. In each such report, the 
     Secretary shall set forth the views of the Secretary on the 
     success of the program in meeting the objectives stated in 
     subsection (a) and whether the program should be continued 
     and, if so, whether it should be modified or expanded.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by adding at the end the following new item:

``3264. 18-month enlistment pilot program.''.
       (b) Implementation Report.--The Secretary of the Army shall 
     submit to the Committee on Armed Services of the Senate and 
     the Committee on Armed Services of the House of 
     Representatives a report on the Secretary's plan for 
     implementation of section 3264 of title 10, United States 
     Code, as added by subsection (a). Such report shall be 
     submitted not later than March 1, 2002.

     SEC. 542. IMPROVED BENEFITS UNDER THE ARMY COLLEGE FIRST 
                   PROGRAM.

       (a) Increased Maximum Period of Delayed Entry.--Section 573 
     of the National Defense Authorization Act for Fiscal Year 
     2000 (Public Law 106-65; 113 Stat. 623; 10 U.S.C. 513 note) 
     is amended--
       (1) in subsection (b)--
       (A) by striking the matter preceding paragraph (1) and 
     inserting the following:
       ``(b) Delayed Entry With Allowance for Higher Education.--
     Under the pilot program, the Secretary may--
       ``(1) exercise the authority under section 513 of title 10, 
     United States Code--'';
       (B) by redesignating paragraphs (1) and (2) as 
     subparagraphs (A) and (B), respectively, and realigning those 
     subparagraphs four ems from the left margin;
       (C) at the end of subparagraph (A), as so redesignated, by 
     inserting ``and'' after the semicolon; and
       (D) in subparagraph (B), as so redesignated, by striking 
     ``two years after the date of such enlistment as a Reserve 
     under paragraph (1)'' and inserting ``the maximum period of 
     delay determined for that person under subsection (c)''; and
       (2) in subsection (c)--
       (A) by striking ``paragraph (2)'' and inserting ``paragraph 
     (1)(B)'';
       (B) by striking ``two-year period'' and inserting ``30-
     month period''; and
       (C) by striking ``paragraph (1)'' and inserting ``paragraph 
     (1)(A)''.
       (b) Allowance Eligibility and Amount.--(1) Such section is 
     further amended--
       (A) in subsection (b), by striking paragraph (3) and 
     inserting the following:
       ``(2) subject to paragraph (2) of subsection (d) and except 
     as provided in paragraph (3) of that subsection, pay an 
     allowance to a person accepted for enlistment under paragraph 
     (1)(A) for each month of the period during which that person 
     is enrolled in and pursuing a program described in paragraph 
     (1)(B)''; and
       (B) in subsection (d)--
       (i) by redesignating paragraph (2) as paragraph (4);
       (ii) by striking paragraph (1) and inserting the following 
     new paragraphs:
       ``(1) The monthly allowance paid under subsection (b)(2) 
     shall be equal to the amount of the subsistence allowance 
     provided for certain members of the Senior Reserve Officers' 
     Training Corps with the corresponding number of years of 
     participation under section 209(a) of title 37, United States 
     Code.

[[Page 25210]]

       ``(2) An allowance may not be paid to a person under this 
     section for more than 24 months.
       ``(3) A member of the Selected Reserve of a reserve 
     component may be paid an allowance under this section only 
     for months during which the member performs satisfactorily as 
     a member of a unit of the reserve component that trains as 
     prescribed in section 10147(a)(1) of title 10, United States 
     Code, or section 502(a) of title 32, United States Code. 
     Satisfactory performance shall be determined under 
     regulations prescribed by the Secretary.''.
       (2) The heading for such subsection is amended by striking 
     ``Amount of''.
       (c) Ineligibility for Loan Repayments; Recoupment.--Such 
     section is further amended--
       (1) by redesignating subsections (e), (f), and (g) as 
     subsections (g), (h), and (i), respectively; and
       (2) by inserting after subsection (d) the following new 
     subsections:
       ``(e) Ineligibility for Loan Repayments.--A person who has 
     received an allowance under this section is not eligible for 
     any benefits under chapter 109 of title 10, United States 
     Code.
       ``(f) Recoupment of Allowance.--(1) A person who, after 
     receiving an allowance under this section, fails to complete 
     the total period of service required of that person in 
     connection with delayed entry authorized for the person under 
     section 513 of title 10, United States Code, shall repay the 
     United States the amount which bears the same ratio to the 
     total amount of that allowance paid to the person as the 
     unserved part of the total required period of service bears 
     to the total period.
         ``(2) An obligation to repay the United States imposed 
     under paragraph (1) is for all purposes a debt owed to the 
     United States.
         ``(3) A discharge of a person in bankruptcy under title 
     11, United States Code, that is entered less than five years 
     after the date on which the person was, or was to be, 
     enlisted in the regular Army pursuant to the delayed entry 
     authority under section 513 of title 10, United States Code, 
     does not discharge that person from a debt arising under 
     paragraph (1).
       ``(4) The Secretary of the Army may waive, in whole or in 
     part, a debt arising under paragraph (1) in any case for 
     which the Secretary determines that recovery would be against 
     equity and good conscience or would be contrary to the best 
     interests of the United States.''.
       (d) Effective Date.--The amendments made by this section 
     shall apply with respect to persons who, on or after the date 
     of the enactment of this Act, are enlisted as described in 
     subsection (a) of section 513 of title 10, United States 
     Code, with delayed entry authorized under that section.

     SEC. 543. CORRECTION AND EXTENSION OF CERTAIN ARMY RECRUITING 
                   PILOT PROGRAM AUTHORITIES.

       (a) Contract Recruiting Initiatives.--Subsection (d)(2) of 
     section 561 of the Floyd D. Spence National Defense 
     Authorization Act for Fiscal Year 2001 (as enacted into law 
     by Public Law 106-398; 114 Stat. 1654A-130) is amended--
       (1) in subparagraphs (A) and (D), by inserting ``and Army 
     Reserve'' after ``Regular Army''; and
       (2) in subparagraph (B), by striking ``and chain of 
     command''.
       (b) Extension of Authority.--Subsection (e) of such section 
     is amended by striking ``December 31, 2005'' and inserting 
     ``September 30, 2007''.
       (c) Extension of Time for Reports.--Subsection (g) of such 
     section is amended by striking ``February 1, 2006'' and 
     inserting ``February 1, 2008''.

     SEC. 544. MILITARY RECRUITER ACCESS TO SECONDARY SCHOOL 
                   STUDENTS.

       (a) Access to Secondary Schools.--Paragraph (1) of section 
     503(c) of title 10, United States Code, is amended to read as 
     follows:
       ``(c) Access to Secondary Schools.--(1)(A) Each local 
     educational agency receiving assistance under the Elementary 
     and Secondary Education Act of 1965--
       ``(i) shall provide to military recruiters the same access 
     to secondary school students as is provided generally to 
     postsecondary educational institutions or to prospective 
     employers of those students; and
       ``(ii) shall, upon a request made by military recruiters 
     for military recruiting purposes, provide access to secondary 
     school student names, addresses, and telephone listings, 
     notwithstanding section 444(a)(5)(B) of the General Education 
     Provisions Act (20 U.S.C. 1232g(a)(5)(B)).
       ``(B) A local educational agency may not release a 
     student's name, address, and telephone listing under 
     subparagraph (A)(ii) without the prior written consent of a 
     parent of the student if the student, or a parent of the 
     student, has submitted a request to the local educational 
     agency that the student's information not be released for a 
     purpose covered by that subparagraph without prior written 
     parental consent. Each local education agency shall notify 
     parents of the rights provided under the preceding 
     sentence.''.
       (b) Effective Date.--The amendment made by subsections (a) 
     shall take effect on July 1, 2002, immediately after the 
     amendment to section 503(c) of title 10, United States Code, 
     made, effective that date, by section 563(a) of the Floyd D. 
     Spence National Defense Authorization Act for Fiscal Year 
     2001 (as enacted into law by Public Law 106-398; 114 Stat. 
     1654A-131).
       (c) Notification.--The Secretary of Education shall provide 
     to local educational agencies notice of the provisions of 
     subsection (c) of section 503 of title 10, United States 
     Code, as in effect upon the amendments made by subsection 
     (a). Such notice shall be provided not later than 120 days 
     after the date of the enactment of this Act and shall be 
     provided in consultation with the Secretary of Defense.

     SEC. 545. PERMANENT AUTHORITY FOR USE OF MILITARY RECRUITING 
                   FUNDS FOR CERTAIN EXPENSES AT DEPARTMENT OF 
                   DEFENSE RECRUITING FUNCTIONS.

       (a) Repeal of Termination Provision.--Section 520c of title 
     10, United States Code, is amended by striking subsection 
     (c).
       (b) Technical Amendments.--Subsection (a) of such section 
     is amended--
       (1) in paragraph (4), by striking ``recruiting events'' and 
     inserting ``recruiting functions''; and
       (2) in paragraph (5), by striking ``recruiting efforts'' 
     the first place it appears and inserting ``recruiting 
     functions''.

     SEC. 546. REPORT ON HEALTH AND DISABILITY BENEFITS FOR PRE-
                   ACCESSION TRAINING AND EDUCATION PROGRAMS.

       (a) Study.--The Secretary of Defense shall conduct a review 
     of the health and disability benefit programs available to 
     recruits and officer candidates engaged in training, 
     education, or other types of programs while not yet on active 
     duty and to cadets and midshipmen attending the service 
     academies. The review shall be conducted with the 
     participation of the Secretaries of the military departments.
       (b) Report.--Not later than March 1, 2002, the Secretary 
     shall submit to the Committee on Armed Services of the Senate 
     and the Committee on Armed Services of the House of 
     Representatives a report on the findings of the review. The 
     report shall include the following with respect to persons 
     described in subsection (a):
       (1) A statement of the process and detailed procedures 
     followed by each of the Armed Forces under the jurisdiction 
     of the Secretary of a military department to provide health 
     care and disability benefits to all such persons injured in 
     training, education, or other types of programs conducted by 
     the Secretary of a military department.
       (2) Information on the total number of cases of such 
     persons requiring health care and disability benefits and the 
     total number of cases and average value of health care and 
     disability benefits provided under the authority for each 
     source of benefits available to those persons.
       (3) A discussion of the issues regarding health and 
     disability benefits for such persons that are encountered by 
     the Secretary during the review, to include discussions with 
     individuals who have received those benefits.
       (4) A statement of the processes and detailed procedures 
     followed by each of the Armed Forces under the jurisdiction 
     of the Secretary of a military department to provide recruits 
     and officer candidates with succinct information on the 
     eligibility requirements (including information on when they 
     become eligible) for health care benefits under the Defense 
     health care program, and the nature and availability of the 
     benefits under the program.
       (5) A discussion of the necessity for legislative changes 
     and specific legislative proposals needed to improve the 
     benefits provided those persons.
       (6) An analysis of health and disability benefits under 
     laws administered by the Department of Veterans Affairs and 
     the Department of Labor for which those persons become 
     eligible upon being injured in training or education and a 
     discussion of how those benefits compare to the benefits 
     those persons would received if retired for physical 
     disability by the Department of Defense.
      Subtitle F--Decorations, Awards, and Posthumous Commissions

     SEC. 551. AUTHORITY FOR AWARD OF THE MEDAL OF HONOR TO 
                   HUMBERT R. VERSACE, JON E. SWANSON, AND BEN L. 
                   SALOMON FOR VALOR.

       (a) Waiver of Time Limitations.--Notwithstanding the time 
     limitations specified in section 3744 of title 10, United 
     States Code, or any other time limitation with respect to the 
     awarding of certain medals to persons who served in the 
     military service, the President may award the Medal of Honor 
     under section 3741 of that title to any of the persons named 
     in subsections (b), (c), and (d) for the acts of valor 
     referred to in those respective subsections.
       (b) Humbert R. Versace.--Subsection (a) applies with 
     respect to Humbert R. Versace, for conspicuous acts of 
     gallantry and intrepidity at the risk of his life and beyond 
     the call of duty between October 29, 1963, and September 26, 
     1965, while interned as a prisoner of war by the Vietnamese 
     Communist National Liberation Front (Viet Cong) in the 
     Republic of Vietnam.
       (c) Jon E. Swanson.--Subsection (a) applies with respect to 
     Jon E. Swanson, for conspicuous acts of gallantry and 
     intrepidity at the risk of his life and beyond the call of 
     duty on February 26, 1971, while piloting a Scout helicopter 
     on a close-support reconnaissance mission in support of the 
     Army of the Republic of Vietnam Task Force 333 in the Kingdom 
     of Cambodia.
       (d) Ben L. Salomon.--Subsection (a) applies with respect to 
     Ben L. Salomon, for conspicuous acts of gallantry and 
     intrepidity at the risk of his life and beyond the call of 
     duty on July 7, 1944, while defending the soldiers under his 
     care as the Surgeon, 2d Battalion, 105th Infantry Regiment, 
     27th Infantry Division against an overwhelming enemy force at 
     Saipan, Marianas Islands.

[[Page 25211]]



     SEC. 552. REVIEW REGARDING AWARD OF MEDAL OF HONOR TO CERTAIN 
                   JEWISH AMERICAN AND HISPANIC AMERICAN WAR 
                   VETERANS.

       (a) Review Required.--The Secretary of each military 
     department shall review the service records of each Jewish 
     American war veteran or Hispanic American war veteran 
     described in subsection (b) to determine whether that veteran 
     should be awarded the Medal of Honor.
       (b) Covered Jewish American War Veterans and Hispanic 
     American War Veterans.--The Jewish American war veterans and 
     Hispanic American war veterans whose service records are to 
     be reviewed under subsection (a) are the following:
       (1) Any Jewish American war veteran or Hispanic American 
     war veteran who was awarded the Distinguished Service Cross, 
     the Navy Cross, or the Air Force Cross before the date of the 
     enactment of this Act.
       (2) Any other Jewish American war veteran or Hispanic 
     American war veteran whose name is submitted to the Secretary 
     concerned for such purpose before the end of the one-year 
     period beginning on the date of the enactment of this Act.
       (c) Consultations.--In carrying out the review under 
     subsection (a), the Secretary of each military department 
     shall consult with the Jewish War Veterans of the United 
     States of America and with such other veterans service 
     organizations as the Secretary considers appropriate.
       (d) Recommendation Based on Review.--If the Secretary 
     concerned determines, based upon the review under subsection 
     (a) of the service records of any Jewish American war veteran 
     or Hispanic American war veteran, that the award of the Medal 
     of Honor to that veteran is warranted, the Secretary shall 
     submit to the President a recommendation that the President 
     award the Medal of Honor to that veteran.
       (e) Authority To Award Medal of Honor.--A Medal of Honor 
     may be awarded to a Jewish American war veteran or Hispanic 
     American war veteran in accordance with a recommendation of 
     the Secretary concerned under subsection (d).
       (f) Waiver of Time Limitations.--An award of the Medal of 
     Honor may be made under subsection (e) without regard to--
       (1) section 3744, 6248, or 8744 of title 10, United States 
     Code, as applicable; and
       (2) any regulation or other administrative restriction on--
       (A) the time for awarding the Medal of Honor; or
       (B) the awarding of the Medal of Honor for service for 
     which a Distinguished Service Cross, Navy Cross, or Air Force 
     Cross has been awarded.
       (g) Definition.--For purposes of this section, the term 
     ``Jewish American war veteran'' means any person who served 
     in the Armed Forces during World War II or a later period of 
     war and who identified himself or herself as Jewish on his or 
     her military personnel records.

     SEC. 553. AUTHORITY TO ISSUE DUPLICATE MEDALS OF HONOR AND TO 
                   REPLACE STOLEN MILITARY DECORATIONS.

       (a) Army.--(1)(A) Chapter 357 of title 10, United States 
     Code, is amended by adding at the end the following new 
     section:

     ``Sec. 3754. Medal of honor: duplicate medal

       ``A person awarded a medal of honor shall, upon written 
     application of that person, be issued, without charge, one 
     duplicate medal of honor with ribbons and appurtenances. Such 
     duplicate medal of honor shall be marked, in such manner as 
     the Secretary of the Army may determine, as a duplicate or 
     for display purposes only.''.
       (B) The table of sections at the beginning of such chapter 
     is amended by adding at the end the following new item:

``3754. Medal of honor: duplicate medal.''.

       (2) Section 3747 of such title is amended by striking 
     ``lost'' and inserting ``stolen, lost,''.
       (b) Navy and Marine Corps.--(1)(A) Chapter 567 of title 10, 
     United States Code, is amended by adding at the end the 
     following new section:

     ``Sec. 6256. Medal of honor: duplicate medal

       ``A person awarded a medal of honor shall, upon written 
     application of that person, be issued, without charge, one 
     duplicate medal of honor with ribbons and appurtenances. Such 
     duplicate medal of honor shall be marked, in such manner as 
     the Secretary of the Navy may determine, as a duplicate or 
     for display purposes only.''.
       (B) The table of sections at the beginning of such chapter 
     is amended by adding at the end the following new item:

``6256. Medal of honor: duplicate medal.''.

       (2) Section 6253 of such title is amended by striking 
     ``lost'' and inserting ``stolen, lost,''.
       (c) Air Force.--(1)(A) Chapter 857 of title 10, United 
     States Code, is amended by adding at the end the following 
     new section:

     ``Sec. 8754. Medal of honor: duplicate medal

       ``A person awarded a medal of honor shall, upon written 
     application of that person, be issued, without charge, one 
     duplicate medal of honor with ribbons and appurtenances. Such 
     duplicate medal of honor shall be marked, in such manner as 
     the Secretary of the Air Force may determine, as a duplicate 
     or for display purposes only.''.
       (B) The table of sections at the beginning of such chapter 
     is amended by adding at the end the following new item:

``8754. Medal of honor: duplicate medal.''.

       (2) Section 8747 of such title is amended by striking 
     ``lost'' and inserting ``stolen, lost,''.
       (d) Coast Guard.--(1)(A) Chapter 13 of title 14, United 
     States Code, is amended by inserting after section 503 the 
     following new section:

     ``Sec. 504. Medal of honor: duplicate medal

       ``A person awarded a medal of honor shall, upon written 
     application of that person, be issued, without charge, one 
     duplicate medal of honor with ribbons and appurtenances. Such 
     duplicate medal of honor shall be marked, in such manner as 
     the Secretary may determine, as a duplicate or for display 
     purposes only.''.
       (B) The table of sections at the beginning of such chapter 
     is amended by inserting after the item relating to section 
     503 the following new item:

``504. Medal of honor: duplicate medal.''.

       (2) Section 501 of such title is amended by inserting 
     ``stolen,'' before ``lost,''.
       (e) Definition of Medal of Honor for Purposes of Federal 
     Unauthorized-Use Crime.--Section 704(b)(2)(B) of title 18, 
     United States Code, is amended to read as follows:
       ``(B) As used in this subsection, `Congressional Medal of 
     Honor' means--
       ``(i) a medal of honor awarded under section 3741, 6241, or 
     8741 of title 10 or section 491 of title 14;
       ``(ii) a duplicate medal of honor issued under section 
     3754, 6256, or 8754 of title 10 or section 504 of title 14; 
     or
       ``(iii) a replacement of a medal of honor provided under 
     section 3747, 6253, or 8747 of title 10 or section 501 of 
     title 14.''.

     SEC. 554. RETROACTIVE MEDAL OF HONOR SPECIAL PENSION.

       (a) Entitlement.--Notwithstanding any other provision of 
     law, Robert R. Ingram of Jacksonville, Florida, who was 
     awarded the Medal of Honor pursuant to Public Law 105-103 
     (111 Stat. 2218), shall be entitled to the special pension 
     provided for under section 1562 of title 38, United States 
     Code (and antecedent provisions of law), for months that 
     begin after March 1966.
       (b) Amount.--The amount of special pension payable under 
     subsection (a) for a month beginning before the date of the 
     enactment of this Act shall be the amount of special pension 
     provided for by law for that month for persons entered and 
     recorded in the Army, Navy, Air Force, and Coast Guard Medal 
     of Honor Roll (or antecedent Medal of Honor Roll required by 
     law).

     SEC. 555. WAIVER OF TIME LIMITATIONS FOR AWARD OF CERTAIN 
                   DECORATIONS TO CERTAIN PERSONS.

       (a) Waiver.--Any limitation established by law or policy 
     for the time within which a recommendation for the award of a 
     military decoration or award must be submitted shall not 
     apply to awards of decorations described in this section, the 
     award of each such decoration having been determined by the 
     Secretary concerned to be warranted in accordance with 
     section 1130 of title 10, United States Code.
       (b) Silver Star.--Subsection (a) applies to the award of 
     the Silver Star to Wayne T. Alderson, of Glassport, 
     Pennsylvania, for gallantry in action from March 15 to March 
     18, 1945, while serving as a member of the Army.
       (c) Distinguished Flying Cross.--Subsection (a) applies to 
     the award of the Distinguished Flying Cross for service 
     during World War II (including multiple awards to the same 
     individual) in the case of each individual concerning whom 
     the Secretary of the Navy (or an officer of the Navy acting 
     on behalf of the Secretary) submitted to the Committee on 
     Armed Services of the House of Representatives and the 
     Committee on Armed Services of the Senate, during the period 
     beginning on October 30, 2000, and ending on the day before 
     the date of the enactment of this Act, a notice as provided 
     in section 1130(b) of title 10, United States Code, that the 
     award of the Distinguished Flying Cross to that individual is 
     warranted and that a waiver of time restrictions prescribed 
     by law for recommendation for such award is recommended.

     SEC. 556. SENSE OF CONGRESS ON ISSUANCE OF CERTAIN MEDALS.

       It is the sense of Congress that the Secretary of Defense 
     should consider authorizing--
       (1) the issuance of a campaign medal, to be known as the 
     Korea Defense Service Medal, to each person who while a 
     member of the Armed Forces served in the Republic of Korea, 
     or the waters adjacent thereto, during the period beginning 
     on July 28, 1954, and ending on such date thereafter as the 
     Secretary considers appropriate;
       (2) the issuance of a campaign medal, to be known as the 
     Cold War Service Medal, to each person who while a member of 
     the Armed Forces served satisfactorily on active duty during 
     the Cold War; and
       (3) the award of the Vietnam Service Medal to any member or 
     former member of the Armed Forces who was awarded the Armed 
     Forces Expeditionary Medal for participation in military 
     operations designated as Operation Frequent Wind arising from 
     the evacuation of Vietnam on April 29 and 30, 1975.

     SEC. 557. SENSE OF CONGRESS ON DEVELOPMENT OF A MORE 
                   COMPREHENSIVE, UNIFORM POLICY FOR THE AWARD OF 
                   DECORATIONS TO MILITARY AND CIVILIAN PERSONNEL 
                   OF THE DEPARTMENT OF DEFENSE.

       (a) Findings.--Congress makes the following findings:
       (1) The role and importance of civilian nationals of the 
     United States as Federal employees and contractors in support 
     of operations of the Armed Forces worldwide has continued to 
     expand.
       (2) The expanded role performed by those civilians, both in 
     the United States and overseas, has greatly increased the 
     risk to those civilians of injury and death from hostile 
     actions taken

[[Page 25212]]

     against United States Armed Forces, as demonstrated by the 
     terrorist attack on the Pentagon on September 11, 2001, in 
     which scores of Department of Defense civilian and contractor 
     personnel were killed or wounded.
       (3) On September 20, 2001, the Deputy Secretary of Defense 
     approved the creation of a new award, a medal for the defense 
     of freedom, to be awarded to civilians employed by the 
     Department of Defense who are killed or wounded as a result 
     of hostile action and at the same time directed that a 
     comprehensive review be conducted to develop a more uniform 
     approach to the award of decorations to military and civilian 
     personnel of the Department of Defense.
       (b) Commendation of Creation of New Award.--Congress 
     commends the decision announced by the Deputy Secretary of 
     Defense on September 20, 2001, to approve the creation of a 
     new award, a medal for the defense of freedom, to be awarded 
     to civilians employed by the Department of Defense who are 
     killed or wounded as a result of hostile action.
       (c) Sense of Congress.--It is the sense of Congress that 
     the Secretary of Defense should act expeditiously to develop 
     a more comprehensive, uniform policy for the award of 
     decorations to military and civilian personnel of the 
     Department of Defense.

     SEC. 558. POSTHUMOUS ARMY COMMISSION IN THE GRADE OF CAPTAIN 
                   IN THE CHAPLAINS CORPS TO ELLA E. GIBSON FOR 
                   SERVICE AS CHAPLAIN OF THE FIRST WISCONSIN 
                   HEAVY ARTILLERY REGIMENT DURING THE CIVIL WAR.

       The President is authorized and requested to posthumously 
     appoint Ella E. Gibson to the grade of captain in the 
     Chaplains Corps of the Army, the commission to issue as of 
     the date of her appointment as chaplain to the First 
     Wisconsin Heavy Artillery regiment during the Civil War and 
     to be considered to have been in effect during the time 
     during which she faithfully performed the services of a 
     chaplain to that regiment and for which Congress by law 
     (Private Resolution 31 of the 40th Congress, approved March 
     3, 1869) previously provided for her to be paid the full pay 
     and emoluments of a chaplain in the United States Army as if 
     she had been regularly commissioned and mustered into 
     service.
                    Subtitle G--Funeral Honors Duty

     SEC. 561. PARTICIPATION OF MILITARY RETIREES IN FUNERAL 
                   HONORS DETAILS.

       (a) Authority.--Subsection (b)(2) of section 1491 of title 
     10, United States Code, is amended--
       (1) in the first sentence, by inserting ``(other than 
     members in a retired status)'' after ``members of the armed 
     forces''; and
       (2) in the second sentence, by inserting ``(including 
     members in a retired status),'' after ``members of the armed 
     forces''.
       (b) Funeral Honors Duty Allowance.--Section 435(a) of title 
     37, United States Code, is amended--
       (1) by inserting ``(1)'' after ``(a) Allowance 
     Authorized.--''; and
       (2) by adding at the end the following new paragraph:
       ``(2) The Secretary concerned may also authorize payment of 
     that allowance to a member of the armed forces in a retired 
     status for any day on which the member serves in a funeral 
     honors detail under section 1491 of title 10, if the time 
     required for service in such detail (including time for 
     preparation) is not less than two hours. The amount of an 
     allowance paid to a member under this paragraph shall be in 
     addition to any other compensation to which the member may be 
     entitled under this title or title 10 or 38.''.

     SEC. 562. FUNERAL HONORS DUTY PERFORMED BY RESERVE AND GUARD 
                   MEMBERS TO BE TREATED AS INACTIVE-DUTY TRAINING 
                   FOR CERTAIN PURPOSES.

       (a) Reserve Members.--Section 12503(a) of title 10, United 
     States Code, is amended by adding at the end the following 
     new sentence: ``Performance of funeral honors duty by a 
     Reserve not on active duty shall be treated as inactive-duty 
     training (including with respect to travel to and from such 
     duty) for purposes of any provision of law other than 
     sections 206 and 435 of title 37.''.
       (b) National Guard Members.--Section 115(a) of title 32, 
     United States Code, is amended by adding at the end the 
     following new sentence: ``Performance of funeral honors duty 
     by such a member not on active duty or full-time National 
     Guard duty shall be treated as inactive-duty training 
     (including with respect to travel to and from such duty) for 
     purposes of any provision of law other than sections 206 and 
     435 of title 37.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to funeral honors duty performed on or after 
     October 30, 2000.

     SEC. 563. USE OF MILITARY LEAVE FOR FUNERAL HONORS DUTY BY 
                   RESERVE MEMBERS AND NATIONAL GUARDSMEN.

       Section 6323(a)(1) of title 5, United States Code, is 
     amended by inserting ``funeral honors duty (as described in 
     section 12503 of title 10 and section 115 of title 32),'' 
     after ``(as defined in section 101 of title 37),''.

     SEC. 564. AUTHORITY TO PROVIDE APPROPRIATE ARTICLES OF 
                   CLOTHING AS A CIVILIAN UNIFORM FOR CIVILIANS 
                   PARTICIPATING IN FUNERAL HONOR DETAILS.

       Section 1491(d) of title 10, United States Code, is amended 
     by adding at the end the following new paragraph:
       ``(3) Articles of clothing for members of a veterans 
     organization or other organization referred to in subsection 
     (b)(2) that, as determined by the Secretary concerned, are 
     appropriate as a civilian uniform for persons participating 
     in a funeral honors detail.''.
            Subtitle H--Military Spouses and Family Members

     SEC. 571. IMPROVED FINANCIAL AND OTHER ASSISTANCE TO MILITARY 
                   SPOUSES FOR JOB TRAINING AND EDUCATION.

       (a) Examination of Existing Employment Assistance 
     Programs.--(1) The Secretary of Defense shall examine 
     existing Department of Defense and other Federal, State, and 
     nongovernmental programs with the objective of improving 
     retention of military personnel by increasing the 
     employability of military spouses and assisting those spouses 
     in gaining access to financial and other assistance for job 
     training and education.
       (2) In conducting the examination, the Secretary shall give 
     priority to facilitating and increasing access of military 
     spouses to existing Department of Defense, Federal, State, 
     and nongovernmental sources for the types of financial 
     assistance set forth in paragraph (3), but shall also 
     specifically assess whether the Department of Defense should 
     begin a program for direct financial assistance to military 
     spouses for some or all of those types of assistance and 
     whether such a program of direct financial assistance would 
     enhance retention.
       (3) In conducting the examination pursuant to paragraph 
     (1), the Secretary should focus on financial assistance for 
     military spouses for one or more of the following purposes:
       (A) Career-related education.
       (B) Certification and license fees for employment-related 
     purposes.
       (C) Apprenticeships and internships.
       (D) Technical training.
       (E) Training to improve job skills.
       (F) Career counseling.
       (G) Skills assessment.
       (H) Job-search skills.
       (I) Job-related transportation.
       (J) Child care.
       (K) Any additional employment-related purpose specified by 
     the Secretary for the purposes of the examination under 
     paragraph (1).
       (4) Not later than March 30, 2002, the Secretary of Defense 
     shall submit to the Committee on Armed Services of the Senate 
     and the Committee on Armed Services of the House of 
     Representatives a report on the results of the examination 
     under paragraph (1).
       (b) Review of Department of Defense Policies.--(1) The 
     Secretary of Defense shall review Department of Defense 
     policies that affect employment and education opportunities 
     for military spouses in the Department of Defense in order to 
     further expand those opportunities. The review shall include 
     the consideration of providing, to the extent authorized by 
     law, separate spouse preferences for employment by 
     appropriated and nonappropriated fund operations.
       (2) Not later than March 30, 2002, the Secretary of Defense 
     shall submit to the Committee on Armed Services of the Senate 
     and the Committee on Armed Services of the House of 
     Representatives a report on the results of the review under 
     paragraph (1).
       (c) Spouse Employment Assistance.--Section 1784 of title 
     10, United States Code, is amended by adding at the end the 
     following new subsections:
       ``(d) Space-Available Use of Facilities for Spouse Training 
     Purposes.--Under regulations prescribed by the Secretary of 
     Defense, the Secretary of a military department may make 
     available to a non-Department of Defense entity space in non-
     excess facilities controlled by that Secretary for the 
     purpose of the non-Department of Defense entity providing 
     employment-related training for military spouses.
       ``(e) Employment by Other Federal Agencies.--The Secretary 
     of Defense shall work with the Director of the Office of 
     Personnel Management and the heads of other Federal 
     departments and agencies to expand and facilitate the use of 
     existing Federal programs and resources in support of 
     military spouse employment.
       ``(f) Private-Sector Employment.--The Secretary of 
     Defense--
       ``(1) shall seek to develop partnerships with firms in the 
     private sector to enhance employment opportunities for 
     spouses of members of the armed forces and to provide for 
     improved job portability for such spouses, especially in the 
     case of the spouse of a member of the armed forces 
     accompanying the member to a new geographical area because of 
     a change of permanent duty station of the member; and
       ``(2) shall work with the United States Chamber of Commerce 
     and other appropriate private-sector entities to facilitate 
     the formation of such partnerships.
       ``(g) Employment With DOD Contractors.--The Secretary of 
     Defense shall examine and seek ways for incorporating hiring 
     preferences for qualified spouses of members of the armed 
     forces into contracts between the Department of Defense and 
     private-sector entities.''.

     SEC. 572. PERSONS AUTHORIZED TO BE INCLUDED IN SURVEYS OF 
                   MILITARY FAMILIES REGARDING FEDERAL PROGRAMS.

       (a) Extension of Survey Authority.--Subsection (a) of 
     section 1782 of title 10, United States Code, is amended to 
     read as follows:
       ``(a) Authority.--The Secretary of Defense, in order to 
     determine the effectiveness of Federal programs relating to 
     military families and the need for new programs, may conduct 
     surveys of--
       ``(1) members of the armed forces who are on active duty, 
     in an active status, or retired;

[[Page 25213]]

       ``(2) family members of such members; and
       ``(3) survivors of deceased retired members and of members 
     who died while on active duty.''.
       (b) Federal Recordkeeping Requirements.--Subsection (c) of 
     such section is amended to read as follows:
       ``(c) Federal Recordkeeping Requirements.--With respect to 
     a survey authorized under subsection (a) that includes a 
     person referred to in that subsection who is not an employee 
     of the United States or is not otherwise considered an 
     employee of the United States for the purposes of section 
     3502(3)(A)(i) of title 44, the person shall be considered as 
     being an employee of the United States for the purposes of 
     that section.''.

     SEC. 573. CLARIFICATION OF TREATMENT OF CLASSIFIED 
                   INFORMATION CONCERNING PERSONS IN A MISSING 
                   STATUS.

       Section 1506(b)(2) of title 10, United States Code, is 
     amended--
       (1) by inserting ``(A)'' after ``(2)'';
       (2) by striking the period at the end and inserting ``of 
     all missing persons from the conflict or period of war to 
     which the classified information pertains.''; and
       (3) by adding at the end the following new subparagraph:
       ``(B) For purposes of subparagraph (A), information shall 
     be considered to be made reasonably accessible if placed in a 
     separate and distinct file that is available for review by 
     persons specified in subparagraph (A) upon the request of any 
     such person either to review the separate file or to review 
     the personnel file of the missing person concerned.''.

     SEC. 574. TRANSPORTATION TO ANNUAL MEETING OF NEXT-OF-KIN OF 
                   PERSONS UNACCOUNTED FOR FROM CONFLICTS AFTER 
                   WORLD WAR II.

       (a) Authority for Department of Defense To Provide 
     Transportation.--Chapter 157 of title 10, United States Code, 
     is amended by adding at the end the following new section:

     ``Sec. 2647. Next-of-kin of persons unaccounted for from 
       conflicts after World War II: transportation to annual 
       meetings

       ``The Secretary of Defense may provide transportation for 
     the next-of-kin of persons who are unaccounted for from the 
     Korean conflict, the Cold War, Vietnam War era, or the 
     Persian Gulf War to and from an annual meeting in the United 
     States. Such transportation shall be provided under such 
     regulations as the Secretary of Defense may prescribe.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of such chapter is amended by adding at the end the 
     following new item:

``2647. Next-of-kin of persons unaccounted for from conflicts after 
              World War II: transportation to annual meetings.''.

     SEC. 575. AMENDMENTS TO CHARTER OF DEFENSE TASK FORCE ON 
                   DOMESTIC VIOLENCE.

       (a) Members Appointed From Private Sector.--Subsection 
     (h)(1) of section 591 of the National Defense Authorization 
     Act for Fiscal Year 2000 (Public Law 106-65; 113 Stat. 639; 
     10 U.S.C. 1562 note) is amended--
       (1) by inserting ``who is a member of the Armed Forces or 
     civilian officer or employee of the United States'' after 
     ``Each member of the task force'';
       (2) by striking ``, but shall'' and all that follows and 
     inserting a period; and
       (3) by adding at the end the following new sentence: 
     ``Other members of the task force shall be appointed in 
     accordance with, and subject to, section 3161 of title 5, 
     United States Code.''.
       (b) Extension of Termination Date.--Subsection (j) of such 
     section is amended by striking ``three years after the date 
     of the enactment of this Act'' and inserting ``on April 24, 
     2003''.
       Subtitle I--Military Justice and Legal Assistance Matters

     SEC. 581. BLOOD ALCOHOL CONTENT LIMIT FOR THE OFFENSE UNDER 
                   THE UNIFORM CODE OF MILITARY JUSTICE OF DRUNKEN 
                   OPERATION OF A VEHICLE, AIRCRAFT, OR VESSEL.

       Section 911 of title 10, United States Code (article 111 of 
     the Uniform Code of Military Justice), is amended--
       (1) by inserting ``(a)'' before `` Any person'';
       (2) by striking ``0.10 grams'' the first place it appears 
     and all that follows through ``chemical analysis'' and 
     inserting ``in excess of the applicable limit under 
     subsection (b)''; and
       (3) by adding at the end the following:
       ``(b)(1) For purposes of subsection (a), the applicable 
     limit on the alcohol concentration in a person's blood or 
     breath is as follows:
       ``(A) In the case of the operation or control of a vehicle, 
     aircraft, or vessel in the United States, such limit is the 
     blood alcohol content limit under the law of the State in 
     which the conduct occurred, except as may be provided under 
     paragraph (2) for conduct on a military installation that is 
     in more than one State and subject to the maximum blood 
     alcohol content limit specified in paragraph (3).
       ``(B) In the case of the operation or control of a vehicle, 
     aircraft, or vessel outside the United States, the applicable 
     blood alcohol content limit is the maximum blood alcohol 
     content limit specified in paragraph (3) or such lower limit 
     as the Secretary of Defense may by regulation prescribe.
       ``(2) In the case of a military installation that is in 
     more than one State, if those States have different blood 
     alcohol content limits under their respective State laws, the 
     Secretary may select one such blood alcohol content limit to 
     apply uniformly on that installation.
       ``(3) For purposes of paragraph (1), the maximum blood 
     alcohol content limit with respect to alcohol concentration 
     in a person's blood is 0.10 grams of alcohol per 100 
     milliliters of blood and with respect to alcohol 
     concentration in a person's breath is 0.10 grams of alcohol 
     per 210 liters of breath, as shown by chemical analysis.
       ``(4) In this subsection:
       ``(A) The term `blood alcohol content limit' means the 
     maximum permissible alcohol concentration in a person's blood 
     or breath for purposes of operation or control of a vehicle, 
     aircraft, or vessel.
       ``(B) The term `United States' includes the District of 
     Columbia, the Commonwealth of Puerto Rico, the Virgin 
     Islands, Guam, and American Samoa and the term `State' 
     includes each of those jurisdictions.''.

     SEC. 582. REQUIREMENT THAT COURTS-MARTIAL CONSIST OF NOT LESS 
                   THAN 12 MEMBERS IN CAPITAL CASES.

       (a) Classification of General Court-Martial in Capital 
     Cases.--Section 816(1)(A) of title 10, United States Code 
     (article 16(1)(A) of the Uniform Code of Military Justice) is 
     amended by inserting after ``five members'' the following: 
     ``or, in a case in which the accused may be sentenced to a 
     penalty of death, the number of members determined under 
     section 825a of this title (article 25a)''.
       (b) Number of Members Required.--(1) Chapter 47 of title 
     10, United States Code (the Uniform Code of Military 
     Justice), is amended by inserting after section 825 (article 
     25) the following new section:

     ``Sec. 825a. Art. 25a. Number of members in capital cases

       ``In a case in which the accused may be sentenced to a 
     penalty of death, the number of members shall be not less 
     than 12, unless 12 members are not reasonably available 
     because of physical conditions or military exigencies, in 
     which case the convening authority shall specify a lesser 
     number of members not less than five, and the court may be 
     assembled and the trial held with not less than the number of 
     members so specified. In such a case, the convening authority 
     shall make a detailed written statement, to be appended to 
     the record, stating why a greater number of members were not 
     reasonably available.''.
       (2) The table of sections at the beginning of subchapter V 
     of such chapter is amended by inserting after the item 
     relating to section 825 (article 25) the following new item:
``825a. 25a. Number of members in capital cases.''.

       (c) Absent and Additional Members.--Section 829(b) of such 
     title (article 29 of the Uniform Code of Military Justice) is 
     amended--
       (1) by inserting ``(1)'' after ``(b)'';
       (2) by striking ``five members'' both places it appears and 
     inserting ``the applicable minimum number of members''; and
       (3) by adding at the end the following new paragraph:
       ``(2) In this section, the term `applicable minimum number 
     of members' means five members or, in a case in which the 
     death penalty may be adjudged, the number of members 
     determined under section 825a of this title (article 25a).''.
       (d) Effective Date.--The amendments made by this section 
     shall apply with respect to offenses committed after December 
     31, 2002.

     SEC. 583. ACCEPTANCE OF VOLUNTARY LEGAL ASSISTANCE FOR THE 
                   CIVIL AFFAIRS OF MEMBERS AND FORMER MEMBERS OF 
                   THE UNIFORMED SERVICES AND THEIR DEPENDENTS.

       (a) Authority.--Subsection (a) of section 1588 of title 10, 
     United States Code, is amended by adding at the end the 
     following new paragraph:
       ``(5) Legal services voluntarily provided as legal 
     assistance under section 1044 of this title.''.
       (b) Defense of Legal Malpractice.--Subsection (d)(1) of 
     that section is amended by adding at the end the following 
     new subparagraph:
       ``(E) Section 1054 of this title (relating to legal 
     malpractice), for a person voluntarily providing legal 
     services accepted under subsection (a)(5), as if the person 
     were providing the services as an attorney of a legal staff 
     within the Department of Defense.''.
                       Subtitle J--Other Matters

     SEC. 591. CONGRESSIONAL REVIEW PERIOD FOR CHANGE IN GROUND 
                   COMBAT EXCLUSION POLICY.

       Section 542(b) of the National Defense Authorization Act 
     for Fiscal Year 1994 (Public Law 103-160; 10 U.S.C. 113 note) 
     is amended--
       (1) in paragraph (1)--
       (A) by striking ``not less than 90 days''; and
       (B) by adding at the end the following new sentence: ``Such 
     a change may then be implemented only after the end of a 
     period of 30 days of continuous session of Congress 
     (excluding any day on which either House of Congress is not 
     in session) following the date on which the report is 
     received.''; and
       (2) by adding at the end the following new paragraph:
       ``(5) For purposes of this subsection, the continuity of a 
     session of Congress is broken only by an adjournment of the 
     Congress sine die.''.

     SEC. 592. PER DIEM ALLOWANCE FOR LENGTHY OR NUMEROUS 
                   DEPLOYMENTS.

       (a) Funding Source for Allowance.--Section 436(a) of title 
     37, United States Code, is amended by adding at the end the 
     following new sentence: ``The Secretary shall pay the 
     allowance from appropriations available for operation and 
     maintenance for the armed force in which the member 
     serves.''.
       (b) Expanded Report Regarding Management of Individual 
     Member Deployments.--Section 574(d) of the Floyd D. Spence 
     National Defense Authorization Act for Fiscal Year 2001

[[Page 25214]]

     (as enacted into law by Public Law 106-398; 114 Stat. 1654A-
     138) is amended in the second sentence by striking paragraphs 
     (1) and (2) and inserting the following new paragraphs:
       ``(1) a discussion of the experience in tracking and 
     recording the deployments of members of the Armed Forces and 
     the payment of the per diem allowance for lengthy or numerous 
     deployments in accordance with section 436 of title 37, 
     United States Code;
       ``(2) specific comments regarding the effect of section 991 
     of title 10, United States Code, and section 436 of title 37, 
     United States Code, on the readiness of the Navy and Marine 
     Corps given the deployment intensive mission of these 
     services; and
       ``(3) any recommendations for revision of section 991 of 
     title 10, United States Code, or section 436 of title 37, 
     United States Code, that the Secretary considers 
     appropriate.''.

     SEC. 593. CLARIFICATION OF DISABILITY SEVERANCE PAY 
                   COMPUTATION.

       (a) Clarification.--Section 1212(a)(2) of title 10, United 
     States Code, is amended by striking ``for promotion'' in 
     subparagraph (C) and the first place it appears in 
     subparagraph (D).
       (b) Effective Date.--The amendments made by subsection (a) 
     shall apply with respect to members separated under section 
     1203 or 1206 of title 10, United States Code, on or after 
     date of the enactment of this Act.

     SEC. 594. TRANSPORTATION OR STORAGE OF PRIVATELY OWNED 
                   VEHICLES ON CHANGE OF PERMANENT STATION.

       (a) Advance Payment of Storage Costs.--Subsection (b) of 
     section 2634 of title 10, United States Code, is amended by 
     adding at the end the following new paragraph:
       ``(4) Storage costs payable under this subsection may be 
     paid in advance.''.
       (b) Shipment on Permanent Change of Station Within CONUS.--
     Subsection (h)(1) of such section is amended by striking 
     ``includes'' in the second sentence and all that follows and 
     inserting ``includes the following:
       ``(A) An authorized change in home port of a vessel.
       ``(B) A transfer or assignment between two permanent 
     stations in the continental United States when--
       ``(i) the member cannot, because of injury or the 
     conditions of the order, drive the motor vehicle between the 
     permanent duty stations; or
       ``(ii) the Secretary concerned determines that it is 
     advantageous and cost-effective to the United States for one 
     motor vehicle of the member to be transported between the 
     permanent duty stations.''.
       (c) Effective Date.--The amendments made by this section 
     apply to orders to make a change of permanent station that 
     are issued on or after the date of the enactment of this Act.

     SEC. 595. REPEAL OF REQUIREMENT FOR FINAL COMPTROLLER GENERAL 
                   REPORT RELATING TO ARMY END STRENGTH 
                   ALLOCATIONS.

       Section 552 of the National Defense Authorization Act for 
     Fiscal Year 1996 (Public Law 104-106; 110 Stat. 319; 10 
     U.S.C. 115 note) is repealed.

     SEC. 596. CONTINUED DEPARTMENT OF DEFENSE ADMINISTRATION OF 
                   NATIONAL GUARD CHALLENGE PROGRAM AND DEPARTMENT 
                   OF DEFENSE STARBASE PROGRAM.

       (a) National Guard Challenge Program.--Section 509(b) of 
     title 32, United States Code, is amended--
       (1) in paragraph (2)(A), by striking ``in a fiscal year'' 
     and inserting ``in fiscal year 2001 or 2002''; and
       (2) by adding at the end the following new paragraph:
       ``(4) The Secretary of Defense shall remain the executive 
     agent to carry out the National Guard Challenge Program 
     regardless of the source of funds for the program or any 
     transfer of jurisdiction over the program within the 
     executive branch. As provided in subsection (a), the 
     Secretary may use the National Guard to conduct the 
     program.''.
       (b) STARBASE Program.--Section 2193b(f) of title 10, United 
     States Code, is amended--
       (1) by inserting ``(1)'' before ``The Secretary''; and
       (2) by adding at the end the following new paragraph:
       ``(2) The Secretary of Defense shall remain the executive 
     agent to carry out the program regardless of the source of 
     funds for the program or any transfer of jurisdiction over 
     the program within the executive branch.''.
       (c) Repeal of Contingent Funding for JROTC.--(1) Section 
     2033 of title 10, United States Code, is repealed.
       (2) The table of sections at the beginning of chapter 102 
     of such title is amended by striking the item relating to 
     section 2033.
       (3) The amendments made by this subsection shall take 
     effect on October 1, 2002.

     SEC. 597. REPORT ON DEFENSE SCIENCE BOARD RECOMMENDATION ON 
                   ORIGINAL APPOINTMENTS IN REGULAR GRADES FOR 
                   ACADEMY GRADUATES AND CERTAIN OTHER NEW 
                   OFFICERS.

       The Secretary of Defense shall submit to the Committee on 
     Armed Services of the Senate and the Committee on Armed 
     Services of the House of Representatives a report on the 
     legislative and policy changes required to implement the 
     recommendation of the Defense Science Board (made in its 
     report entitled ``Final Report on Human Resources Strategy'' 
     and dated February 28, 2000) that all officers be given 
     initial regular commissions. The Secretary shall include in 
     that report a description of the measures necessary to 
     transition the current active-duty officer corps to an all-
     regular status, if the Board's recommendation were adopted, 
     and shall provide the Secretary's position with regard to 
     implementing that recommendation. The report shall be 
     submitted not later than six months after the date of the 
     enactment of this Act.

     SEC. 598. SENSE OF CONGRESS REGARDING THE SELECTION OF 
                   OFFICERS FOR RECOMMENDATION FOR APPOINTMENT AS 
                   COMMANDER, UNITED STATES TRANSPORTATION 
                   COMMAND.

       (a) Findings.--Congress makes the following findings:
       (1) The Goldwater-Nichols Department of Defense 
     Reorganization Act of 1986 (Public Law 99-433) envisioned 
     that officers would be selected for recommendation to the 
     President for appointment as the commander of a combatant 
     command under chapter 6 of title 10, United States Code (as 
     added by that Act), on the basis of being the best qualified 
     officer for that position, rather than the best qualified 
     officer of the armed force that had historically supplied 
     officers to serve in that position.
       (2) In order to provide for greater competition among the 
     Armed Forces for selection of officers for assignment as the 
     commanders of the combatant commands and assignment to 
     certain other joint positions in the grade of general or 
     admiral, Congress provided temporary relief from the 
     limitation on the number of officers serving on active duty 
     in the grade of general or admiral in section 405 of the 
     National Defense Authorization Act for Fiscal Year 1995 and 
     thereafter extended that relief until September 30, 2003, but 
     has also required that the Secretary of Defense be furnished 
     the name of at least one officer from each of the Armed 
     Forces for consideration for appointment to each such 
     position.
       (3) Most of the positions of commanders of the combatant 
     commands have been filled successively by officers of more 
     than one of the Armed Forces since the enactment of the 
     Goldwater-Nichols Department of Defense Reorganization Act of 
     1986.
       (4) However, general officers of the Air Force with only 
     limited experience in the transportation services have 
     usually filled the position of commander of the United States 
     Transportation Command.
       (5) The United States Transportation Command could benefit 
     from the appointment of future commanders selected from the 
     Army, Navy and Marine Corps, in addition to the Air Force.
       (b) Sense of Congress.--It is the sense of Congress that 
     the Secretary of Defense, when considering officers for 
     recommendation to the President for appointment as commander 
     of the United States Transportation Command, should not rely 
     upon officers of one service which has traditionally provided 
     officers to fill that position but should select for such 
     recommendation the best qualified officer of the Army, Navy, 
     Air Force, or Marine Corps.
          TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS

                     Subtitle A--Pay and Allowances

Sec. 601. Increase in basic pay for fiscal year 2002.
Sec. 602. Basic pay rate for certain reserve commissioned officers with 
              prior service as an enlisted member or warrant officer.
Sec. 603. Reserve component compensation for distributed learning 
              activities performed as inactive-duty training.
Sec. 604. Subsistence allowances.
Sec. 605. Eligibility for temporary housing allowance while in travel 
              or leave status between permanent duty stations.
Sec. 606. Uniform allowance for officers.
Sec. 607. Family separation allowance for members electing 
              unaccompanied tour by reason of health limitations of 
              dependents.

           Subtitle B--Bonuses and Special and Incentive Pays

Sec. 611. One-year extension of certain bonus and special pay 
              authorities for reserve forces.
Sec. 612. One-year extension of certain bonus and special pay 
              authorities for nurse officer candidates, registered 
              nurses, and nurse anesthetists.
Sec. 613. One-year extension of special pay and bonus authorities for 
              nuclear officers.
Sec. 614. One-year extension of other bonus and special pay 
              authorities.
Sec. 615. Hazardous duty pay for members of maritime visit, board, 
              search, and seizure teams.
Sec. 616. Eligibility for certain career continuation bonuses for early 
              commitment to remain on active duty.
Sec. 617. Sec.retarial discretion in prescribing submarine duty 
              incentive pay rates.
Sec. 618. Conforming accession bonus for dental officers authority with 
              authorities for other special pay and bonuses.
Sec. 619. Modification of eligibility requirements for Individual Ready 
              Reserve bonus for reenlistment, enlistment, or extension 
              of enlistment.
Sec. 620. Installment payment authority for 15-year career status 
              bonus.
Sec. 621. Accession bonus for new officers in critical skills.
Sec. 622. Education savings plan to encourage reenlistments and 
              extensions of service in critical specialties.

[[Page 25215]]

Sec. 623. Continuation of payment of special and incentive pay at 
              unreduced rates during stop loss periods.
Sec. 624. Retroactive authorization for imminent danger pay for service 
              in connection with Operation Enduring Freedom.

            Subtitle C--Travel and Transportation Allowances

Sec. 631. Minimum per diem rate for travel and transportation allowance 
              for travel performed upon a change of permanent station 
              and certain other travel.
Sec. 632. Eligibility for payment of subsistence expenses associated 
              with occupancy of temporary lodging incident to reporting 
              to first permanent duty station.
Sec. 633. Reimbursement of members for mandatory pet quarantine fees 
              for household pets.
Sec. 634. Increased weight allowance for transportation of baggage and 
              household effects for junior enlisted members.
Sec. 635. Eligibility of additional members for dislocation allowance.
Sec. 636. Partial dislocation allowance authorized for housing moves 
              ordered for Government convenience.
Sec. 637. Allowances for travel performed in connection with members 
              taking authorized leave between consecutive overseas 
              tours.
Sec. 638. Travel and transportation allowances for family members to 
              attend burial of a deceased member of the uniformed 
              services.
Sec. 639. Funded student travel for foreign study under an education 
              program approved by a United States school.

          Subtitle D--Retirement and Survivor Benefit Matters

Sec. 641. Contingent authority for concurrent receipt of military 
              retired pay and veterans' disability compensation and 
              enhancement of special compensation authority.
Sec. 642. Survivor Benefit Plan annuities for surviving spouses of 
              members who die while on active duty and not eligible for 
              retirement.

                       Subtitle E--Other Matters

Sec. 651. Payment for unused leave in excess of 60 days accrued by 
              members of reserve components on active duty for one year 
              or less.
Sec. 652. Additional authority to provide assistance for families of 
              members of the Armed Forces.
Sec. 653. Authorization of transitional compensation and commissary and 
              exchange benefits for dependents of commissioned officers 
              of the Public Health Service and the National Oceanic and 
              Atmospheric Administration who are separated for 
              dependent abuse.
Sec. 654. Transfer of entitlement to educational assistance under 
              Montgomery GI Bill by members of the Armed Forces with 
              critical military skills.

                     Subtitle A--Pay and Allowances

     SEC. 601. INCREASE IN BASIC PAY FOR FISCAL YEAR 2002.

       (a) Waiver of Sec.tion 1009 Adjustment.--The adjustment to 
     become effective during fiscal year 2002 required by section 
     1009 of title 37, United States Code, in the rates of monthly 
     basic pay authorized members of the uniformed services shall 
     not be made.
       (b) Increase in Basic Pay.--Effective on January 1, 2002, 
     the rates of monthly basic pay for members of the uniformed 
     services within each pay grade are as follows:

[[Page 25216]]


                                                                                                        COMMISSIONED OFFICERS \1\
----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                               YEARS OF SERVICE COMPUTED UNDER SECTION 205 OF TITLE 37, UNITED STATES CODE
                           Pay Grade                            ------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                 2 or less    Over 2     Over 3     Over 4     Over 6     Over 8    Over 10    Over 12    Over 14    Over 16    Over 18     Over 20     Over 22     Over 24     Over 26
----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
O-10 \2\.......................................................      $0.00      $0.00      $0.00      $0.00      $0.00      $0.00      $0.00      $0.00      $0.00      $0.00      $0.00   11,601.90   11,659.20   11,901.30   12,324.00
O-9............................................................       0.00       0.00       0.00       0.00       0.00       0.00       0.00       0.00       0.00       0.00       0.00   10,147.50   10,293.60   10,504.80   10,873.80
O-8............................................................   7,180.20   7,415.40   7,571.10   7,614.90   7,809.30   8,135.10   8,210.70   8,519.70   8,608.50   8,874.30   9,259.50    9,614.70    9,852.00    9,852.00    9,852.00
O-7............................................................   5,966.40   6,371.70   6,371.70   6,418.20   6,657.90   6,840.30   7,051.20   7,261.80   7,472.70   8,135.10   8,694.90    8,694.90    8,694.90    8,694.90    8,738.70
O-6............................................................   4,422.00   4,857.90   5,176.80   5,176.80   5,196.60   5,418.90   5,448.60   5,448.60   5,628.60   6,305.70   6,627.00    6,948.30    7,131.00    7,316.10    7,675.20
O-5............................................................   3,537.00   4,152.60   4,440.30   4,494.30   4,673.10   4,673.10   4,813.50   5,073.30   5,413.50   5,755.80   5,919.00    6,079.80    6,262.80    6,262.80    6,262.80
O-4............................................................   3,023.70   3,681.90   3,927.60   3,982.50   4,210.50   4,395.90   4,696.20   4,930.20   5,092.50   5,255.70   5,310.60    5,310.60    5,310.60    5,310.60    5,310.60
O-3 \3\........................................................   2,796.60   3,170.40   3,421.80   3,698.70   3,875.70   4,070.10   4,232.40   4,441.20   4,549.50   4,549.50   4,549.50    4,549.50    4,549.50    4,549.50    4,549.50
O-2 \3\........................................................   2,416.20   2,751.90   3,169.50   3,276.30   3,344.10   3,344.10   3,344.10   3,344.10   3,344.10   3,344.10   3,344.10    3,344.10    3,344.10    3,344.10    3,344.10
O-1 \3\........................................................   2,097.60   2,183.10   2,638.50   2,638.50   2,638.50   2,638.50   2,638.50   2,638.50   2,638.50   2,638.50   2,638.50    2,638.50    2,638.50    2,638.50    2,638.50
----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
\1\ Notwithstanding the basic pay rates specified in this table, the actual rate of basic pay for commissioned officers in pay grades 0-7 through O-10 may not exceed the rate of pay for level III of the Executive Schedule and the
  actual rate of basic pay for all other officers may not exceed the rate of pay for level V of the Executive Schedule.
\2\ Subject to the preceding footnote, while serving as Chairman or Vice Chairman of the Joint Chiefs of Staff, Chief of Staff of the Army, Chief of Naval Operations, Chief of Staff of the Air Force, Commandant of the Marine Corps,
  or Commandant of the Coast Guard, the rate of basic pay for this grade is $13,598.10, regardless of cumulative years of service computed under section 205 of title 37, United States Code.
\3\ This table does not apply to commissioned officers in pay grade O-1, O-2, or O-3 who have been credited with over 4 years of active duty service as an enlisted member or warrant officer.


                                                                 COMMISSIONED OFFICERS WITH OVER 4 YEARS OF ACTIVE DUTY SERVICE AS AN ENLISTED MEMBER OR WARRANT OFFICER
----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                 YEARS OF SERVICE COMPUTED UNDER SECTION 205 OF TITLE 37, UNITED STATES CODE
                             Pay Grade                             ---------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                    2 or less    Over 2     Over 3     Over 4     Over 6     Over 8    Over 10    Over 12    Over 14    Over 16    Over 18    Over 20    Over 22    Over 24     Over 26
----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
O-3E..............................................................      $0.00      $0.00      $0.00   3,698.70   3,875.70   4,070.10   4,232.40   4,441.20   4,617.00   4,717.50   4,855.20   4,855.20   4,855.20   4,855.20    4,855.20
O-2E..............................................................       0.00       0.00       0.00   3,276.30   3,344.10   3,450.30   3,630.00   3,768.90   3,872.40   3,872.40   3,872.40   3,872.40   3,872.40   3,872.40    3,872.40
O-1E..............................................................       0.00       0.00       0.00   2,638.50   2,818.20   2,922.30   3,028.50   3,133.20   3,276.30   3,276.30   3,276.30   3,276.30   3,276.30   3,276.30    3,276.30
----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------


                                                                                                          WARRANT OFFICERS \1\
----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                 YEARS OF SERVICE COMPUTED UNDER SECTION 205 OF TITLE 37, UNITED STATES CODE
                             Pay Grade                             ---------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                    2 or less    Over 2     Over 3     Over 4     Over 6     Over 8    Over 10    Over 12    Over 14    Over 16    Over 18    Over 20    Over 22    Over 24     Over 26
----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
W-5...............................................................      $0.00      $0.00      $0.00      $0.00      $0.00      $0.00      $0.00      $0.00      $0.00      $0.00      $0.00   4,965.60   5,136.00   5,307.00    5,478.60
W-4...............................................................   2,889.60   3,108.60   3,198.00   3,285.90   3,437.10   3,586.50   3,737.70   3,885.30   4,038.00   4,184.40   4,334.40   4,480.80   4,632.60   4,782.00    4,935.30
W-3...............................................................   2,638.80   2,862.00   2,862.00   2,898.90   3,017.40   3,152.40   3,330.90   3,439.50   3,558.30   3,693.90   3,828.60   3,963.60   4,098.30   4,233.30    4,368.90
W-2...............................................................   2,321.40   2,454.00   2,569.80   2,654.10   2,726.40   2,875.20   2,984.40   3,093.90   3,200.40   3,318.00   3,438.90   3,559.80   3,680.10   3,801.30    3,801.30
W-1...............................................................   2,049.90   2,217.60   2,330.10   2,402.70   2,511.90   2,624.70   2,737.80   2,850.00   2,963.70   3,077.10   3,189.90   3,275.10   3,275.10   3,275.10    3,275.10
----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
\1\ Notwithstanding the basic pay rates specified in this table, the actual rate of basic pay for warrant officers may not exceed the rate of pay for level V of the Executive Schedule.


[[Page 25217]]


                                                                                                          ENLISTED MEMBERS \1\
----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                YEARS OF SERVICE COMPUTED UNDER SECTION 205 OF TITLE 37, UNITED STATES CODE
                            Pay Grade                             ----------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                    2 or less     Over 2     Over 3     Over 4     Over 6     Over 8    Over 10    Over 12    Over 14    Over 16    Over 18    Over 20    Over 22    Over 24    Over 26
----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
E-9 \2\..........................................................        $0.00      $0.00      $0.00      $0.00      $0.00      $0.00   3,423.90   3,501.30   3,599.40   3,714.60   3,830.40   3,944.10   4,098.30   4,251.30   4,467.00
E-8..............................................................         0.00       0.00       0.00       0.00       0.00   2,858.10   2,940.60   3,017.70   3,110.10   3,210.30   3,314.70   3,420.30   3,573.00   3,724.80   3,937.80
E-7..............................................................     1,986.90   2,169.00   2,251.50   2,332.50   2,417.40   2,562.90   2,645.10   2,726.40   2,808.00   2,892.60   2,975.10   3,057.30   3,200.40   3,292.80   3,526.80
E-6..............................................................     1,701.00   1,870.80   1,953.60   2,033.70   2,117.40   2,254.50   2,337.30   2,417.40   2,499.30   2,558.10   2,602.80   2,602.80   2,602.80   2,602.80   2,602.80
E-5..............................................................     1,561.50   1,665.30   1,745.70   1,828.50   1,912.80   2,030.10   2,110.20   2,193.30   2,193.30   2,193.30   2,193.30   2,193.30   2,193.30   2,193.30   2,193.30
E-4..............................................................     1,443.60   1,517.70   1,599.60   1,680.30   1,752.30   1,752.30   1,752.30   1,752.30   1,752.30   1,752.30   1,752.30   1,752.30   1,752.30   1,752.30   1,752.30
E-3..............................................................     1,303.50   1,385.40   1,468.50   1,468.50   1,468.50   1,468.50   1,468.50   1,468.50   1,468.50   1,468.50   1,468.50   1,468.50   1,468.50   1,468.50   1,468.50
E-2..............................................................     1,239.30   1,239.30   1,239.30   1,239.30   1,239.30   1,239.30   1,239.30   1,239.30   1,239.30   1,239.30   1,239.30   1,239.30   1,239.30   1,239.30   1,239.30
E-1..............................................................          \3\   1,105.50   1,105.50   1,105.50   1,105.50   1,105.50   1,105.50   1,105.50   1,105.50   1,105.50   1,105.50   1,105.50   1,105.50   1,105.50   1,105.50
                                                                      1,105.50
----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
\1\ Notwithstanding the basic pay rates specified in this table, the actual rate of basic pay for enlisted members may not exceed the rate of pay for level V of the Executive Schedule.
\2\ Subject to the preceding footnote, while serving as Sergeant Major of the Army, Master Chief Petty Officer of the Navy, Chief Master Sergeant of the Air Force, Sergeant Major of the Marine Corps, or Master Chief Petty Officer of
  the Coast Guard, basic pay for this grade is $5,382.90, regardless of cumulative years of service computed under section 205 of title 37, United States Code.
\3\ In the case of members in pay grade E-1 who have served less than 4 months on active duty, the rate of basic pay is $1,022.70.


[[Page 25218]]

     SEC. 602. BASIC PAY RATE FOR CERTAIN RESERVE COMMISSIONED 
                   OFFICERS WITH PRIOR SERVICE AS AN ENLISTED 
                   MEMBER OR WARRANT OFFICER.

       (a) Service Credit.--Section 203(d) of title 37, United 
     States Code, is amended--
       (1) by inserting ``(1)'' after ``(d)'';
       (2) by striking ``active service as a warrant officer or as 
     a warrant officer and an enlisted member'' and inserting 
     ``service described in paragraph (2)''; and
       (3) by adding at the end the following new paragraph:
       ``(2) Service to be taken into account for purposes of 
     computing basic pay under paragraph (1) is as follows:
       ``(A) Active service as a warrant officer or as a warrant 
     officer and an enlisted member, in the case of--
       ``(i) a commissioned officer on active duty who is paid 
     from funds appropriated for active-duty personnel; or
       ``(ii) a commissioned officer on active Guard and Reserve 
     duty.
       ``(B) In the case of a commissioned officer (not referred 
     to in subparagraph (A)(ii)) who is paid from funds 
     appropriated for reserve personnel, service as a warrant 
     officer, or as a warrant officer and enlisted member, for 
     which at least 1,460 points have been credited to the officer 
     for the purposes of section 12732(a)(2) of title 10.''.
       (b) Application of Amendments.--The amendments made by 
     subsection (a) shall apply with respect to months beginning 
     on or after the date of the enactment of this Act.

     SEC. 603. RESERVE COMPONENT COMPENSATION FOR DISTRIBUTED 
                   LEARNING ACTIVITIES PERFORMED AS INACTIVE-DUTY 
                   TRAINING.

       (a) Compensation Authorized.--Section 206(d) of title 37, 
     United States Code, is amended--
       (1) by striking ``This section'' and inserting ``(1) Except 
     as provided in paragraph (2), this section'';
       (2) by striking ``an armed force'' and inserting ``a 
     uniformed service''; and
       (3) by adding at the end the following new paragraph:
       ``(2) A member of the Selected Reserve of the Ready Reserve 
     may be paid compensation under this section at a rate and 
     under terms determined by the Secretary of Defense, but not 
     to exceed the rate otherwise applicable to the member under 
     subsection (a), upon the member's successful completion of a 
     course of instruction undertaken by the member using 
     electronic-based distributed learning methodologies to 
     accomplish training requirements related to unit readiness or 
     mobilization, as directed for the member by the Secretary 
     concerned. The compensation may be paid regardless of whether 
     the course of instruction was under the direct control of the 
     Secretary concerned or included the presence of an 
     instructor.''.
       (b) Definition of Inactive-Duty Training.--Section 101(22) 
     of such title is amended by inserting after ``but'' the 
     following: ``(except as provided in section 206(d)(2) of this 
     title)''.

     SEC. 604. SUBSISTENCE ALLOWANCES.

       (a) Baseline Amount for Calculating Allowance for Enlisted 
     Members.--Section 402(b) of title 37, United States Code, is 
     amended by adding at the end the following new paragraph:
       ``(4) For purposes of implementing paragraph (2), the 
     monthly rate of basic allowance for subsistence that was in 
     effect for an enlisted member for calendar year 2001 is 
     deemed to be $233.''.
       (b) Rate for Enlisted Members When Messing Facilities Not 
     Available.--(1) Notwithstanding section 402 of title 37, 
     United States Code, the Secretary of Defense, and the 
     Secretary of Transportation with respect to the Coast Guard 
     when it is not operating as a service in the Navy, may 
     prescribe a rate of basic allowance for subsistence to apply 
     to enlisted members of the uniformed services when messing 
     facilities of the United States are not available. The rate 
     may be higher than the rate of basic allowance for 
     subsistence that would otherwise be applicable to the members 
     under that section, but may not be higher than the highest 
     rate that was in effect for enlisted members of the uniformed 
     services under those circumstances before the date of the 
     enactment of this Act.
       (2) Paragraph (1) shall cease to be effective on the first 
     day of the first month for which the basic allowance for 
     subsistence calculated for enlisted members of the uniformed 
     services under section 402 of title 37, United States Code, 
     exceeds the rate of the basic allowance for subsistence 
     prescribed under paragraph (1).
       (c) Continuation of BAS Transitional Authority.--
     Notwithstanding the repeal of subsections (c) through (f) of 
     section 602 of the National Defense Authorization Act for 
     Fiscal Year 1998 (Public Law 105-85; 37 U.S.C. 402 note) by 
     section 603(c) of the Floyd D. Spence National Defense 
     Authorization Act for Fiscal Year 2001 (as enacted into law 
     by Public Law 106-398; 114 Stat. 1654A-145), the basic 
     allowance for subsistence shall be paid in accordance with 
     such subsections for October, November, and December of 2001.
       (d) Eligibility for Supplemental Subsistence Allowance.--
     Section 402a(b)(1) of title 37, United States Code, is 
     amended by inserting ``with dependents'' after ``a member of 
     the armed forces''.

     SEC. 605. ELIGIBILITY FOR TEMPORARY HOUSING ALLOWANCE WHILE 
                   IN TRAVEL OR LEAVE STATUS BETWEEN PERMANENT 
                   DUTY STATIONS.

       (a) Repeal of Pay Grade Limitation.--Section 403(i) of 
     title 37, United States Code, is amended by striking ``who is 
     in a pay grade E-4 (4 or more years of service) or above''.
       (b) Effective Date; Application.--The amendment made by 
     this section shall take effect on January 1, 2003, and apply 
     to members of the uniformed services in a travel or leave 
     status between permanent duty stations on or after that date.

     SEC. 606. UNIFORM ALLOWANCE FOR OFFICERS.

       (a) Relation to Initial Uniform Allowance.--Section 
     416(b)(1) of title 37, United States Code, is amended by 
     striking ``$200'' and inserting ``$400''.
       (b) Effective Date.--The amendment made by this section 
     shall take effect as of October 1, 2000.

     SEC. 607. FAMILY SEPARATION ALLOWANCE FOR MEMBERS ELECTING 
                   UNACCOMPANIED TOUR BY REASON OF HEALTH 
                   LIMITATIONS OF DEPENDENTS.

       (a) Entitlement to Allowance.--Section 427(c) of title 37, 
     United States Code, is amended--
       (1) by striking ``A member'' in the first sentence and 
     inserting ``(1) Except as provided in paragraph (2) or (3), a 
     member'';
       (2) in the second sentence, by striking ``The Secretary 
     concerned may waive the preceding sentence'' and inserting 
     the following:
       ``(3) The Secretary concerned may waive paragraph (1)''; 
     and
       (3) by inserting after the first sentence the following new 
     paragraph:
       ``(2) The prohibition in the first sentence of paragraph 
     (1) does not apply to a member who elects to serve an 
     unaccompanied tour of duty because a dependent cannot 
     accompany the member to or at that permanent station for 
     certified medical reasons.''.
       (b) Application of Amendment.--Paragraph (2) of section 
     427(c) of title 37, United States Code, as added by 
     subsection (a)(3), shall apply with respect to pay periods 
     beginning on or after January 1, 2002, for a member of the 
     uniformed services covered by such paragraph regardless of 
     the date on which the member first made the election to serve 
     an unaccompanied tour of duty.
           Subtitle B--Bonuses and Special and Incentive Pays

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

       (a) Special Pay for Health Professionals in Critically 
     Short Wartime Specialties.--Section 302g(f ) of title 37, 
     United States Code, is amended by striking ``December 31, 
     2001'' and inserting ``December 31, 2002''.
       (b) Selected Reserve Reenlistment Bonus.--Section 308b(f ) 
     of such title is amended by striking ``December 31, 2001'' 
     and inserting ``December 31, 2002''.
       (c) Selected Reserve Enlistment Bonus.--Section 308c(e) of 
     such title is amended by striking ``December 31, 2001'' and 
     inserting ``December 31, 2002''.
       (d) Special Pay for Enlisted Members Assigned to Certain 
     High Priority Units.--Section 308d(c) of such title is 
     amended by striking ``December 31, 2001'' and inserting 
     ``December 31, 2002''.
       (e) Selected Reserve Affiliation Bonus.--Section 308e(e) of 
     such title is amended by striking ``December 31, 2001'' and 
     inserting ``December 31, 2002''.
       (f ) Ready Reserve Enlistment and Reenlistment Bonus.--
     Section 308h(g) of such title is amended by striking 
     ``December 31, 2001'' and inserting ``December 31, 2002''.
       (g) Prior Service Enlistment Bonus.--Section 308i(f ) of 
     such title is amended by striking ``December 31, 2001'' and 
     inserting ``December 31, 2002''.
       (h) Repayment of Education Loans for Certain Health 
     Professionals Who Serve in the Selected Reserve.--Section 
     16302(d) of title 10, United States Code, is amended by 
     striking ``January 1, 2002'' and inserting ``January 1, 
     2003''.

     SEC. 612. ONE-YEAR EXTENSION OF CERTAIN BONUS AND SPECIAL PAY 
                   AUTHORITIES FOR NURSE OFFICER CANDIDATES, 
                   REGISTERED NURSES, AND NURSE ANESTHETISTS.

       (a) Nurse Officer Candidate Accession Program.--Section 
     2130a(a)(1) of title 10, United States Code, is amended by 
     striking ``December 31, 2001'' and inserting ``December 31, 
     2002''.
       (b) Accession Bonus for Registered Nurses.--Section 
     302d(a)(1) of title 37, United States Code, is amended by 
     striking ``December 31, 2001'' and inserting ``December 31, 
     2002''.
       (c) Incentive Special Pay for Nurse Anesthetists.--Section 
     302e(a)(1) of title 37, United States Code, is amended by 
     striking ``December 31, 2001'' and inserting ``December 31, 
     2002''.

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

       (a) Special Pay for Nuclear-Qualified Officers Extending 
     Period of Active Service.--Section 312(e) of such title is 
     amended by striking ``December 31, 2001'' and inserting 
     ``December 31, 2002''.
       (b) Nuclear Career Accession Bonus.--Section 312b(c) of 
     such title is amended by striking ``December 31, 2001'' and 
     inserting ``December 31, 2002''.
       (c) Nuclear Career Annual Incentive Bonus.--Section 312c(d) 
     of such title is amended by striking ``December 31, 2001'' 
     and inserting ``December 31, 2002''.

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

       (a) Aviation Officer Retention Bonus.--Section 301b(a) of 
     title 37, United States Code, is

[[Page 25219]]

     amended by striking ``December 31, 2001'' and inserting 
     ``December 31, 2002''.
       (b) Reenlistment Bonus for Active Members.--Section 308(g) 
     of such title is amended by striking ``December 31, 2001'' 
     and inserting ``December 31, 2002''.
       (c) Enlistment Bonus for Active Members.--Section 309(e) of 
     such title is amended by striking ``December 31, 2001'' and 
     inserting ``December 31, 2002''.
       (d) Retention Bonus for Members With Critical Military 
     Skills.--Section 323(i) of such title is amended by striking 
     ``December 31, 2001'' and inserting ``December 31, 2002''.

     SEC. 615. HAZARDOUS DUTY PAY FOR MEMBERS OF MARITIME VISIT, 
                   BOARD, SEARCH, AND SEIZURE TEAMS.

       (a) Additional Type of Duty Eligible for Pay.--Section 
     301(a) of title 37, United States Code, is amended--
       (1) in paragraph (10), by striking ``or'' at the end;
       (2) by redesignating paragraph (11) as paragraph (12); and
       (3) by inserting after paragraph (10) the following new 
     paragraph:
       ``(11) involving regular participation as a member of a 
     team conducting visit, board, search, and seizure operations 
     aboard vessels in support of maritime interdiction 
     operations; or''.
       (b) Monthly Amount.--Subsection (c) of such section is 
     amended--
       (1) in paragraph (1), by striking ``(10)'' and inserting 
     ``(11)''; and
       (2) in paragraph (2)(A), by striking ``(11)'' and inserting 
     ``(12)''.
       (c) Application of Amendment.--Paragraph (11) of section 
     301(a) of title 37, United States Code, as added by 
     subsection (a)(3), shall apply to duty described in such 
     paragraph that is performed on or after January 1, 2002.

     SEC. 616. ELIGIBILITY FOR CERTAIN CAREER CONTINUATION BONUSES 
                   FOR EARLY COMMITMENT TO REMAIN ON ACTIVE DUTY.

       (a) Aviation Officers.--Section 301b(b)(4) of title 37, 
     United States Code, is amended by inserting before the period 
     at the end the following: ``or is within one year of 
     completing such commitment''.
       (b) Surface Warfare Officers.--Section 319(a)(3) of such 
     title is amended by inserting before the period at the end 
     the following: ``or is within one year of completing such 
     commitment''.

     SEC. 617. SECRETARIAL DISCRETION IN PRESCRIBING SUBMARINE 
                   DUTY INCENTIVE PAY RATES.

       (a) Authority of Secretary of the Navy; Maximum Rate.--
     Subsection (b) of section 301c of title 37, United States 
     Code, is amended to read as follows:
       ``(b) Monthly Rates.--The Secretary of the Navy shall 
     prescribe the monthly rates of submarine duty incentive pay, 
     except that the maximum monthly rate may not exceed 
     $1,000.''.
       (b) Conforming and Clerical Amendments.--Such section is 
     further amended--
       (1) in subsection (a)--
       (A) by inserting ``Eligibility Requirements.--'' after 
     ``(a)''; and
       (B) by striking ``set forth in'' each place it appears and 
     inserting ``prescribed pursuant to'';
       (2) in subsection (c), by inserting ``Exceptions.--'' after 
     ``(c)''; and
       (3) in subsection (d)--
       (A) by inserting ``Applicability to Certain Naval Reserve 
     Duty.--'' after ``(d)''; and
       (B) by striking ``authorized by'' and inserting 
     ``prescribed pursuant to''.
       (c) Transition.--The tables set forth in subsection (b) of 
     section 301c of title 37, United States Code, as in effect on 
     the day before the date of the enactment of this Act, shall 
     continue to apply until the later of the following:
       (1) January 1, 2002.
       (2) The date on which the Secretary of the Navy prescribes 
     new submarine duty incentive pay rates as authorized by the 
     amendment made by subsection (a).

     SEC. 618. CONFORMING ACCESSION BONUS FOR DENTAL OFFICERS 
                   AUTHORITY WITH AUTHORITIES FOR OTHER SPECIAL 
                   PAY AND BONUSES.

       Section 302h(a)(1) of title 37, United States Code, is 
     amended by striking ``the date of the enactment of this 
     section, and ending on September 30, 2002'' and inserting 
     ``September 23, 1996, and ending on December 31, 2002''.

     SEC. 619. MODIFICATION OF ELIGIBILITY REQUIREMENTS FOR 
                   INDIVIDUAL READY RESERVE BONUS FOR 
                   REENLISTMENT, ENLISTMENT, OR EXTENSION OF 
                   ENLISTMENT.

       (a) Eligibility Based on Qualifications in Critically Short 
     Wartime Skills or Specialties.--Subsection (a) of section 
     308h of title 37, United States Code, is amended to read as 
     follows:
       ``(a) Authority and Eligibility Requirements.--(1) The 
     Secretary concerned may pay a bonus as provided in subsection 
     (b) to an eligible person who reenlists, enlists, or 
     voluntarily extends an enlistment in a reserve component of 
     an armed force for assignment to an element (other than the 
     Selected Reserve) of the Ready Reserve of that armed force if 
     the reenlistment, enlistment, or extension is for a period of 
     three years, or for a period of six years, beyond any other 
     period the person is obligated to serve.
       ``(2) A person is eligible for a bonus under this section 
     if the person--
       ``(A) is or has been a member of an armed force;
       ``(B) is qualified in a skill or specialty designated by 
     the Secretary concerned as a critically short wartime skill 
     or critically short wartime specialty; and
       ``(C) has not failed to complete satisfactorily any 
     original term of enlistment in the armed forces.
       ``(3) For the purposes of this section, the Secretary 
     concerned may designate a skill or specialty as a critically 
     short wartime skill or critically short wartime specialty for 
     an armed force under the jurisdiction of the Secretary if the 
     Secretary determines that--
       ``(A) the skill or specialty is critical to meet wartime 
     requirements of the armed force; and
       ``(B) there is a critical shortage of personnel in that 
     armed force who are qualified in that skill or specialty.''.
       (b) Clerical Amendments.--Such section is further amended--
       (1) in subsection (b), by inserting ``Bonus Amounts; 
     Payment.--'' after ``(b)'';
       (2) in subsection (c), by inserting ``Repayment of Bonus.--
     '' after ``(c)'';
       (3) in subsection (d), by inserting ``Treatment of 
     Reimbursement Obligation.--'' after ``(d)'';
       (4) in subsection (e), by inserting ``Effect of 
     Bankruptcy.--'' after ``(e)'';
       (5) in subsection (f), by inserting ``Regulations.--'' 
     after ``(f)''; and
       (6) in subsection (g), by inserting ``Termination of 
     Authority.--'' after ``(g)''.
       (c) Regulations.--Not later than 180 days after the date of 
     the enactment of this Act, the Secretaries of the military 
     departments shall prescribe such regulations as may be 
     necessary for administering subsection (a) of section 308h of 
     title 37, United States Code, as amended by this section.
       (d) Application of Amendment.--Subsection (a) of section 
     308h of title 37, United States Code, as amended by this 
     section, shall apply with respect to reserve component 
     reenlistments, enlistments, and extensions of enlistments 
     that are executed on or after the first day of the first 
     month that begins more than 180 days after the date of the 
     enactment of this Act. Subsection (a) of such section 308h, 
     as in effect on the day before the date of the enactment of 
     this Act, shall continue to apply with respect to reserve 
     component reenlistments, enlistments, and extensions of 
     enlistments that are executed before the first day of that 
     first month.

     SEC. 620. INSTALLMENT PAYMENT AUTHORITY FOR 15-YEAR CAREER 
                   STATUS BONUS.

       (a) Member Election.--Section 322(d) of title 37, United 
     States Code, is amended--
       (1) in paragraph (1), by striking ``paid in a single lump 
     sum of'' and inserting ``equal to'';
       (2) by redesignating paragraph (2) as paragraph (4), and in 
     such paragraph, by striking ``The bonus'' and inserting ``The 
     lump sum payment of the bonus, and the first installment 
     payment in the case of members who elect to receive the bonus 
     in installments,''; and
       (3) by inserting after paragraph (1) the following new 
     paragraphs:
       ``(2) A member electing to receive the bonus under this 
     section shall elect one of the following payment options:
       ``(A) A single lump sum of $30,000.
       ``(B) Two installments of $15,000 each.
       ``(C) Three installments of $10,000 each.
       ``(D) Four installments of $7,500 each.
       ``(E) Five installments of $6,000 each.
       ``(3) If a member elects installment payments under 
     paragraph (2), the second installment (and subsequent 
     installments, as applicable) shall be paid on the earlier of 
     the following dates:
       ``(A) The annual anniversary date of the payment of the 
     first installment.
       ``(B) January 15 of each succeeding calendar year.''.
       (b) Application to Existing Agreements.--The Secretary 
     concerned (as defined in section 101(5) of title 37, United 
     States Code) shall extend to each member of the uniformed 
     services who has executed the written agreement required by 
     subsection (a)(2) of section 322 of such title before the 
     date of the enactment of this Act, but who has not received 
     the lump sum payment by that date, an opportunity to make the 
     election authorized by subsection (d) of such section, as 
     amended by this section.

     SEC. 621. ACCESSION BONUS FOR NEW OFFICERS IN CRITICAL 
                   SKILLS.

       (a) Bonus Authorized.--Chapter 5 of title 37, United States 
     Code, is amended by adding at the end the following new 
     section:

     ``Sec. 324. Special pay: accession bonus for new officers in 
       critical skills

       ``(a) Accession Bonus Authorized.--Under regulations 
     prescribed by the Secretary concerned, a person who executes 
     a written agreement to accept a commission as an officer of 
     the armed forces and serve on active duty in a designated 
     critical officer skill for the period specified in the 
     agreement may, upon acceptance of the agreement by the 
     Secretary concerned, be paid an accession bonus in an amount 
     determined by the Secretary concerned.
       ``(b) Designation of Critical Officer Skills.--(1) The 
     Secretary concerned shall designate the critical officer 
     skills for the purposes of this section. A skill may be 
     designated as a critical officer skill for an armed force 
     under this subsection if--
       ``(1) in order to meet requirements of the armed force, it 
     is critical for the armed force to have a sufficient number 
     of officers who are qualified in that skill; and
       ``(2) in order to mitigate a current or projected 
     significant shortage of personnel in the armed force who are 
     qualified in that skill, it is critical to access into that 
     armed force in sufficient numbers persons who are qualified 
     in that skill or are to be trained in that skill.

[[Page 25220]]

       ``(c) Limitation on Amount of Bonus.--The amount of an 
     accession bonus under subsection (a) may not exceed $60,000.
       ``(d) Payment Method.--Upon acceptance of a written 
     agreement under subsection (a) by the Secretary concerned, 
     the total amount of the accession bonus payable under the 
     agreement becomes fixed. The agreement shall specify whether 
     the accession bonus will be paid by the Secretary in a lump 
     sum or installments.
       ``(e) Relation to Other Accession Bonus Authority.--An 
     individual may not receive an accession bonus under this 
     section and section 302d, 302h, 302j, or 312b of this title 
     for the same period of service.
       ``(f) Repayment for Failure To Commence or Complete 
     Obligated Service.--(1) An individual who, after having 
     received all or part of the accession bonus under an 
     agreement referred to in subsection (a), fails to accept a 
     commission as an officer or to commence or complete the total 
     period of active duty service specified in the agreement 
     shall repay to the United States the amount that bears the 
     same ratio to the total amount of the bonus authorized for 
     such person as the unserved part of the period of agreed 
     active duty service bears to the total period of the agreed 
     active duty service. However, the amount required to be 
     repaid by the individual may not exceed the amount of the 
     accession bonus that was paid to the individual.
       ``(2) Subject to paragraph (3), an obligation to repay the 
     United States imposed under paragraph (1) is for all purposes 
     a debt owed to the United States. A discharge in bankruptcy 
     under title 11 that is entered less than five years after the 
     termination of an agreement entered into under subsection (a) 
     does not discharge the individual signing the agreement from 
     a debt arising under such agreement or under paragraph (1).
       ``(3) The Secretary concerned may waive, in whole or in 
     part, the repayment requirement under paragraph (1) on a 
     case-by-case basis if the Secretary concerned determines that 
     repayment would be against equity and good conscience or 
     would be contrary to the best interests of the United States.
       ``(g) Termination of Authority.--No agreement under this 
     section may be entered into after December 31, 2002.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of such chapter is amended by adding at the end the 
     following new item:

``324. Special pay: accession bonus for new officers in critical 
              skills.''.

     SEC. 622. EDUCATION SAVINGS PLAN TO ENCOURAGE REENLISTMENTS 
                   AND EXTENSIONS OF SERVICE IN CRITICAL 
                   SPECIALTIES.

       (a) Establishment of Savings Plan.--(1) Chapter 5 of title 
     37, United States Code, is amended by inserting after section 
     324, as added by section 621, the following new section:

     ``Sec. 325. Incentive bonus: savings plan for education 
       expenses and other contingencies

       ``(a) Benefit and Eligibility.--The Secretary concerned may 
     purchase United States savings bonds under this section for a 
     member of the armed forces who is eligible as follows:
       ``(1) A member who, before completing three years of 
     service on active duty, enters into a commitment to perform 
     qualifying service.
       ``(2) A member who, after completing three years of service 
     on active duty, but not more than nine years of service on 
     active duty, enters into a commitment to perform qualifying 
     service.
       ``(3) A member who, after completing nine years of service 
     on active duty, enters into a commitment to perform 
     qualifying service.
       ``(b) Qualifying Service.--For the purposes of this 
     section, qualifying service is service on active duty in a 
     specialty designated by the Secretary concerned as critical 
     to meet requirements (whether or not such specialty is 
     designated as critical to meet wartime or peacetime 
     requirements) for a period that--
       ``(1) is not less than six years; and
       ``(2) does not include any part of a period for which the 
     member is obligated to serve on active duty under an 
     enlistment or other agreement for which a benefit has 
     previously been paid under this section.
       ``(c) Forms of Commitment to Additional Service.--For the 
     purposes of this section, a commitment means--
       ``(1) in the case of an enlisted member, a reenlistment; 
     and
       ``(2) in the case of a commissioned officer, an agreement 
     entered into with the Secretary concerned.
       ``(d) Amounts of Bonds.--The total of the face amounts of 
     the United States savings bonds authorized to be purchased 
     for a member under this section for a commitment shall be as 
     follows:
       ``(1) In the case of a purchase for a member under 
     paragraph (1) of subsection (a), $5,000.
       ``(2) In the case of a purchase for a member under 
     paragraph (2) of subsection (a), the amount equal to the 
     excess of $15,000 over the total of the face amounts of any 
     United States savings bonds previously purchased for the 
     member under this section.
       ``(3) In the case of a purchase for a member under 
     paragraph (3) of subsection (a), the amount equal to the 
     excess of $30,000 over the total of the face amounts of any 
     United States savings bonds previously purchased for the 
     member under this section.
       ``(e) Total Amount of Benefit.--The total amount of the 
     benefit authorized for a member when United States savings 
     bonds are purchased for the member under this section by 
     reason of a commitment by that member shall be the sum of--
       ``(1) the purchase price of the United States savings 
     bonds; and
       ``(2) the amounts that would be deducted and withheld for 
     the payment of individual income taxes if the total amount 
     computed under this subsection for that commitment were paid 
     to the member as a bonus.
       ``(f) Amount Withheld for Taxes.--The total amount payable 
     for a member under subsection (e)(2) for a commitment by that 
     member shall be withheld, credited, and otherwise treated in 
     the same manner as amounts deducted and withheld from the 
     basic pay of the member.
       ``(g) Repayment for Failure To Complete Obligated 
     Service.--(1) If a person fails to complete the qualifying 
     service for which the person is obligated under a commitment 
     for which a benefit has been paid under this section, the 
     person shall refund to the United States the amount that 
     bears the same ratio to the total amount paid for the person 
     (as computed under subsection (e)) for that particular 
     commitment as the uncompleted part of the period of 
     qualifying service bears to the total period of the 
     qualifying service for which obligated.
       ``(2) Subject to paragraph (3), an obligation to reimburse 
     the United States imposed under paragraph (1) is for all 
     purposes a debt owed to the United States.
       ``(3) The Secretary concerned may waive, in whole or in 
     part, a refund required under paragraph (1) if the Secretary 
     concerned determines that recovery would be against equity 
     and good conscience or would be contrary to the best 
     interests of the United States.
       ``(4) A discharge in bankruptcy under title 11 that is 
     entered less than five years after the termination of an 
     enlistment or other agreement under this section does not 
     discharge the person signing such enlistment or other 
     agreement from a debt arising under the enlistment or 
     agreement, respectively, or this subsection.
       ``(h) Relationship to Other Special Pays.--The benefit 
     authorized under this section is in addition to any other 
     bonus or incentive or special pay that is paid or payable to 
     a member under any other provision of this chapter for any 
     portion of the same qualifying service.
       ``(i) Regulations.--This section shall be administered 
     under regulations prescribed by the Secretary of Defense for 
     the armed forces under his jurisdiction and by the Secretary 
     of Transportation for the Coast Guard when the Coast Guard is 
     not operating as a service in the Navy.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by inserting after the item relating to section 
     324, as added by section 621(b), the following new item:

``325. Incentive bonus: savings plan for education expenses and other 
              contingencies.''.

       (b) Application of Amendment.--Section 325 of title 37, 
     United States Code, as added by subsection (a), shall apply 
     with respect to reenlistments and other agreements for 
     qualifying service, as described in that section, that are 
     entered into on or after October 1, 2001.
       (c) Funding For Fiscal Year 2002.--Of the amount authorized 
     to be appropriated to the Department of Defense for military 
     personnel for fiscal year 2002 by section 421, $20,000,000 
     may be available in that fiscal year for the purchase of 
     United States savings bonds under section 325 of title 37, 
     United States Code, as added by subsection (a).

     SEC. 623. CONTINUATION OF PAYMENT OF SPECIAL AND INCENTIVE 
                   PAY AT UNREDUCED RATES DURING STOP LOSS 
                   PERIODS.

       (a) Authority To Continue.--(1) Chapter 17 of title 37, 
     United States Code, is amended by adding at the end the 
     following new section:

     ``Sec. 909. Special and incentive pay: payment at unreduced 
       rates during suspension of personnel laws

       ``(a) Authority To Continue Payment at Unreduced Rates.--To 
     ensure fairness and recognize the contributions of members of 
     the armed forces to military essential missions, the 
     Secretary of the military department concerned may authorize 
     members who are involuntarily retained on active duty under 
     section 123 or 12305 of title 10 or any other provision of 
     law and who, immediately before retention on active duty, 
     were entitled or eligible for special pay or incentive pay 
     under chapter 5 of this title, to receive that special pay or 
     incentive pay for qualifying service performed during the 
     retention period, without a reduction in the payment rate 
     below the rate the members received immediately before 
     retention on active duty, notwithstanding any requirement 
     otherwise applicable to that special pay or incentive pay 
     that would reduce the payment rate by reason of the years of 
     service of the members.
       ``(b) Suspension During Time of War.--Subsection (a) does 
     not apply with respect to a special pay or incentive pay 
     under chapter 5 of this title, whenever the authority to 
     provide that special pay or incentive pay is suspended by the 
     President or the Secretary of Defense during a time of war.
       ``(c) Qualifying Service Defined.--In this section, the 
     term `qualifying service' means service for which a 
     particular special pay or incentive pay is payable under the 
     authority of a provision of chapter 5 of this title.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by adding at the end the following new item:

``909. Special and incentive pay: payment at unreduced rates during 
              suspension of personnel laws.''.

       (b) Application of Amendments.--Section 909 of title 37, 
     United States Code, as added by

[[Page 25221]]

     subsection (a)(1), shall apply with respect to pay periods 
     beginning after September 11, 2001.

     SEC. 624. RETROACTIVE AUTHORIZATION FOR IMMINENT DANGER PAY 
                   FOR SERVICE IN CONNECTION WITH OPERATION 
                   ENDURING FREEDOM.

       (a) Retroactive Authorization.--The Secretary of Defense 
     may provide for the payment of imminent danger pay under 
     section 310 of title 37, United States Code, to members of 
     the Armed Forces assigned to duty in the areas specified in 
     subsection (b) in connection with the contingency operation 
     known as Operation Enduring Freedom with respect to periods 
     of duty served in those areas during the period beginning on 
     September 19, 2001, and ending October 31, 2001.
       (b) Specified Areas.--The areas referred to in subsection 
     (a) are the following:
       (1) The land areas of Kyrgyzstan, Oman, the United Arab 
     Emirates, and Uzbekistan.
       (2) The Red Sea, the Gulf of Aden, the Gulf of Oman, and 
     the Arabian Sea (that portion north of 10 deg. north latitude 
     and west of 68 deg. east longitude).
            Subtitle C--Travel and Transportation Allowances

     SEC. 631. MINIMUM PER DIEM RATE FOR TRAVEL AND TRANSPORTATION 
                   ALLOWANCE FOR TRAVEL PERFORMED UPON A CHANGE OF 
                   PERMANENT STATION AND CERTAIN OTHER TRAVEL.

       Section 404(d) of title 37, United States Code, is amended 
     by adding at the end the following new paragraph:
       ``(5) Effective January 1, 2003, the per diem rates 
     established under paragraph (2)(A) for travel performed in 
     connection with a change of permanent station or for travel 
     described in paragraph (2) or (3) of subsection (a) shall be 
     equal to the standard per diem rates established in the 
     Federal travel regulation for travel within the continental 
     United States of civilian employees and their dependents, 
     unless the Secretaries concerned determine that a higher rate 
     for members is more appropriate.''.

     SEC. 632. ELIGIBILITY FOR PAYMENT OF SUBSISTENCE EXPENSES 
                   ASSOCIATED WITH OCCUPANCY OF TEMPORARY LODGING 
                   INCIDENT TO REPORTING TO FIRST PERMANENT DUTY 
                   STATION.

       (a) Inclusion of Officers.--Subsection (a)(2)(C) of section 
     404a of title 37, United States Code, is amended by striking 
     ``an enlisted member'' and inserting ``a member''.
       (b) Increase in Maximum Daily Authorized Rate.--Subsection 
     (e) of such section is amended by striking ``$110'' and 
     inserting ``$180''.
       (c) Effective Date; Application.--The amendments made by 
     this section shall take effect on January 1, 2002, and apply 
     with respect to an order issued on or after that date to a 
     member of the uniformed services to report to the member's 
     first permanent duty station.

     SEC. 633. REIMBURSEMENT OF MEMBERS FOR MANDATORY PET 
                   QUARANTINE FEES FOR HOUSEHOLD PETS.

       (a) Increase in Maximum Reimbursement Amount.--Section 
     406(a)(1) of title 37, United States Code, is amended in the 
     last sentence by striking ``$275'' and inserting ``$550''.
       (b) Application of Amendment.--The amendment made by 
     subsection (a) shall apply with respect to the reimbursement 
     of members of the uniformed services for mandatory pet 
     quarantine fees incurred in connection with the mandatory 
     quarantine of a household pet underway on the date of the 
     enactment of this Act or beginning on or after that date.

     SEC. 634. INCREASED WEIGHT ALLOWANCE FOR TRANSPORTATION OF 
                   BAGGAGE AND HOUSEHOLD EFFECTS FOR JUNIOR 
                   ENLISTED MEMBERS.

       (a) Increased Weight Allowances.--The table in section 
     406(b)(1)(C) of title 37, United States Code, is amended--
       (1) by striking the two footnotes; and
       (2) by striking the items relating to pay grade E-1 through 
     E-4 and inserting the following new items:

 
 
 
``E-4.............................................      7,000      8,000
``E-3.............................................      5,000      8,000
``E-2.............................................      5,000      8,000
``E-1.............................................      5,000   8,000''.
 

       (b) Effective Date; Application.--The amendments made by 
     this section shall take effect on January 1, 2003, and apply 
     with respect to an order in connection with a change of 
     temporary or permanent station issued on or after that date.

     SEC. 635. ELIGIBILITY OF ADDITIONAL MEMBERS FOR DISLOCATION 
                   ALLOWANCE.

       (a) Eligibility for Primary Dislocation Allowance.--
     Subsection (a) of section 407 of title 37, United States 
     Code, is amended--
       (1) in paragraph (2), by adding at the end the following 
     new subparagraphs:
       ``(F) A member whose dependents actually move from the 
     member's place of residence in connection with the 
     performance of orders for the member to report to the 
     member's first permanent duty station if the move--
       ``(i) is to the permanent duty station or a designated 
     location; and
       ``(ii) is an authorized move.
       ``(G) Each of two members married to each other who--
       ``(i) is without dependents;
       ``(ii) actually moves with the member's spouse to a new 
     permanent duty station; and
       ``(iii) is assigned to family quarters of the United States 
     at or in the vicinity of the new duty station.''; and
       (2) by adding at the end the following new paragraph:
       ``(4) If a primary dislocation allowance is payable to two 
     members described in paragraph (2)(G) who are married to each 
     other, the amount of the allowance payable to such members 
     shall be the amount otherwise payable under this subsection 
     to the member in the higher pay grade, or to either member if 
     both members are in the same pay grade. The allowance shall 
     be paid jointly to both members.''.
       (b) Conforming Amendment.--Subsection (e) of such section 
     is amended by inserting ``(except as provided in subsection 
     (a)(2)(F))'' after ``first duty station''.
       (c) Application of Amendments.--The amendments made by this 
     section shall apply with respect to an order issued on or 
     after January 1, 2002, in connection with a change of 
     permanent station or for a member of the uniformed services 
     to report to the member's first permanent duty station.

     SEC. 636. PARTIAL DISLOCATION ALLOWANCE AUTHORIZED FOR 
                   HOUSING MOVES ORDERED FOR GOVERNMENT 
                   CONVENIENCE.

       (a) Authorization of Partial Dislocation Allowance.--
     Section 407 of title 37, United States Code is amended--
       (1) by redesignating subsections (f) and (g) as subsections 
     (g) and (h), respectively; and
       (2) by inserting after subsection (e) the following new 
     subsection:
       ``(f) Partial Dislocation Allowance.--(1) Under regulations 
     prescribed by the Secretary concerned, a member ordered to 
     occupy or vacate family housing provided by the United States 
     to permit the privatization or renovation of housing or for 
     any other reason (other than pursuant to a permanent change 
     of station) may be paid a partial dislocation allowance of 
     $500.
       ``(2) Effective on the same date that the monthly rates of 
     basic pay for all members are increased under section 1009 of 
     this title or another provision of law, the Secretary of 
     Defense shall adjust the rate of the partial dislocation 
     allowance authorized by this subsection by the percentage 
     equal to the average percentage increase in the rates of 
     basic pay.
       ``(3) Subsections (c) and (d) do not apply to the partial 
     dislocation allowance authorized by this subsection.''.
       (b) Application of Amendment.--Subsection (f) of title 37, 
     United States Code, as added by subsection (a)(2), shall 
     apply with respect to an order to move for a member of a 
     uniformed service that is issued on or after the date of the 
     enactment of this Act.

     SEC. 637. ALLOWANCES FOR TRAVEL PERFORMED IN CONNECTION WITH 
                   MEMBERS TAKING AUTHORIZED LEAVE BETWEEN 
                   CONSECUTIVE OVERSEAS TOURS.

       Section 411b(a)(1) of title 37, United States Code, is 
     amended by striking ``, or his designee, or to a place no 
     farther distant than his home of record''.

     SEC. 638. TRAVEL AND TRANSPORTATION ALLOWANCES FOR FAMILY 
                   MEMBERS TO ATTEND BURIAL OF A DECEASED MEMBER 
                   OF THE UNIFORMED SERVICES.

       (a) Consolidation of Authorities.--Section 411f of title 
     37, United States Code, is amended to read as follows:

     ``Sec. 411f. Travel and transportation allowances: 
       transportation for survivors of deceased member to attend 
       the member's burial ceremonies

       ``(a) Allowances Authorized.--(1) The Secretary concerned 
     may provide round trip travel and transportation allowances 
     to eligible relatives of a member of the uniformed services 
     who dies while on active duty or inactive duty in order that 
     the eligible relatives may attend the burial ceremony of the 
     deceased member.
       ``(2) The Secretary concerned may also provide round trip 
     travel and transportation allowances to an attendant who 
     accompanies an eligible relative provided travel and 
     transportation allowances under paragraph (1) for travel to 
     the burial ceremony if the Secretary concerned determines 
     that--
       ``(A) the accompanied eligible relative is unable to travel 
     unattended because of age, physical condition, or other 
     justifiable reason; and
       ``(B) there is no other eligible relative of the deceased 
     member traveling to the burial ceremony who is eligible for 
     travel and transportation allowances under paragraph (1) and 
     is qualified to serve as the attendant.
       ``(b) Limitations.--(1) Except as provided in paragraphs 
     (2) and (3), allowances under subsection (a) are limited to 
     travel and transportation to a location in the United States, 
     Puerto Rico, and the possessions of the United States and may 
     not exceed the rates for two days and the time necessary for 
     such travel.
       ``(2) If a deceased member was ordered or called to active 
     duty from a place outside the United States, Puerto Rico, or 
     the possessions of the United States, the allowances 
     authorized under subsection (a) may be provided to and from 
     such place and may not exceed the rates for two days and the 
     time necessary for such travel.
       ``(3) If a deceased member is interred in a cemetery 
     maintained by the American Battle Monuments Commission, the 
     travel and transportation allowances authorized under 
     subsection (a) may be provided to and from such cemetery and 
     may not exceed the rates for two days and the time necessary 
     for such travel.
       ``(c) Eligible Relatives.--(1) The following members of the 
     family of a deceased member of the uniformed services are 
     eligible for the travel and transportation allowances under 
     subsection (a)(1):
       ``(A) The surviving spouse (including a remarried surviving 
     spouse) of the deceased member.

[[Page 25222]]

       ``(B) The unmarried child or children of the deceased 
     member referred to in section 401(a)(2) of this title.
       ``(C) If no person described in subparagraph (A) or (B) is 
     provided travel and transportation allowances under 
     subsection (a)(1), the parent or parents of the deceased 
     member (as defined in section 401(b)(2) of this title).
       ``(2) If no person described in paragraph (1) is provided 
     travel and transportation allowances under subsection (a)(1), 
     the travel and transportation allowances may be provided to--
       ``(A) the person who directs the disposition of the remains 
     of the deceased member under section 1482(c) of title 10, or, 
     in the case of a deceased member whose remains are commingled 
     and buried in a common grave in a national cemetery, the 
     person who would have been designated under such section to 
     direct the disposition of the remains if individual 
     identification had been made; and
       ``(B) up to two additional persons closely related to the 
     deceased member who are selected by the person referred to in 
     subparagraph (A).
       ``(d) Expanded Allowances Related to Recovery of Remains 
     From Vietnam Conflict.--(1) The Secretary of Defense may 
     provide round trip travel and transportation allowances for 
     the family of a deceased member of the armed forces who died 
     while classified as a prisoner of war or as missing in action 
     during the Vietnam conflict and whose remains are returned to 
     the United States in order that the family members may attend 
     the burial ceremony of the deceased member.
       ``(2) The allowances under paragraph (1) shall include 
     round trip transportation from the places of residence of 
     such family members to the burial ceremony and such living 
     expenses and other allowances as the Secretary of Defense 
     considers appropriate.
       ``(3) For purposes of paragraph (1), eligible family 
     members of the deceased member of the armed forces include 
     the following:
       ``(A) The surviving spouse (including a remarried surviving 
     spouse) of the deceased member.
       ``(B) The child or children, including children described 
     in section 401(b)(1) of this title, of the deceased member.
       ``(C) The parent or parents of the deceased member (as 
     defined in section 401(b)(2) of this title).
       ``(D) If no person described in subparagraph (A), (B), or 
     (C) is provided travel and transportation allowances under 
     paragraph (1), any brothers, sisters, halfbrothers, 
     halfsisters, stepbrothers, and stepsisters of the deceased 
     member.
       ``(e) Burial Ceremony Defined.--In this section, the term 
     `burial ceremony' includes the following:
       ``(1) An interment of casketed or cremated remains.
       ``(2) A placement of cremated remains in a columbarium.
       ``(3) A memorial service for which reimbursement is 
     authorized under section 1482(d)(2) of title 10.
       ``(4) A burial of commingled remains that cannot be 
     individually identified in a common grave in a national 
     cemetery.
       ``(f) Regulations.--The Secretaries concerned shall 
     prescribe uniform regulations to carry out this section.''.
       (b) Repeal of Superseded Laws; Conforming Amendment.--(1) 
     Section 1482 of title 10, United States Code, is amended by 
     striking subsection (d) and redesignating subsections (e), 
     (f), and (g) as subsections (d), (e), and (f), respectively.
       (2) Section 1481(a)(9) of such title is amended by striking 
     ``section 1482(g)'' and inserting ``section 1482(f)''.
       (3) The Funeral Transportation and Living Expense Benefits 
     Act of 1974 (Public Law 93-257; 37 U.S.C. 406 note) is 
     repealed.
       (c) Application of Amendment.--Section 411f of title 37, 
     United States Code, as amended by subsection (a), shall apply 
     with respect to burial ceremonies of deceased members of the 
     uniformed services that occur on or after the date of the 
     enactment of this Act.

     SEC. 639. FUNDED STUDENT TRAVEL FOR FOREIGN STUDY UNDER AN 
                   EDUCATION PROGRAM APPROVED BY A UNITED STATES 
                   SCHOOL.

       (a) Availability of Allowance.--Subsection (a) of section 
     430 of title 37, United States Code, is amended to read as 
     follows:
       ``(a) Availability of Allowance.--(1) Under regulations 
     prescribed by the Secretary of Defense, a member of a 
     uniformed service may be paid the allowance set forth in 
     subsection (b) if the member--
       ``(A) is assigned to a permanent duty station outside the 
     continental United States;
       ``(B) is accompanied by the member's dependents at or near 
     that duty station (unless the member's only dependents are in 
     the category of dependent described in paragraph (2)); and
       ``(C) has an eligible dependent child described in 
     paragraph (2).
       ``(2) A eligible dependent child of a member referred to in 
     paragraph (1)(C) is a child who--
       ``(A) is under 23 years of age and unmarried;
       ``(B) is enrolled in a school in the continental United 
     States for the purpose of obtaining a formal education; and
       ``(C) is attending that school or is participating in a 
     foreign study program approved by that school and, pursuant 
     to that foreign study program, is attending a school outside 
     the United States for a period of not more than one year.''.
       (b) Type of Allowance Authorized.--Subsection (b) of such 
     section is amended--
       (1) by inserting ``Allowance Authorized.--'' after ``(b)'';
       (2) in the first sentence of paragraph (1), by striking 
     ``each unmarried dependent child,'' and all that follows 
     through ``the school being attended'' and inserting ``each 
     eligible dependent child of the member of one annual trip 
     between the school being attended by that child''; and
       (3) by adding at the end the following new paragraph:
       ``(3) The transportation allowance paid under paragraph (1) 
     for an annual trip of an eligible dependent child who is 
     attending a school outside the United States may not exceed 
     the transportation allowance that would be paid under this 
     section for the annual trip of that child between the child's 
     school in the continental United States and the member's duty 
     station outside the continental United States and return.''.
       (c) Clerical and Conforming Amendments.--Such section is 
     further amended--
       (1) in subsection (c), by inserting ``Use of Airlift and 
     Sealift Command.--'' after ``(c)'';
       (2) in subsection (d)--
       (A) by inserting ``Attendance at School in Alaska or 
     Hawaii.--'' after ``(d)''; and
       (B) by striking ``subsection (a)(3)'' and inserting 
     ``subsection (a)(2)'';
       (3) in subsection (e), by inserting ``Exception.--'' after 
     ``(e)''; and
       (4) in subsection (f), by inserting ``Definitions.--'' 
     after ``(f)''.
       (d) Application of Amendments.--The amendments made by this 
     section shall apply with respect to travel described in 
     subsection (b) of section 430 of title 37, United States 
     Code, as amended by this section, that commences on or after 
     the date of the enactment of this Act.
          Subtitle D--Retirement and Survivor Benefit Matters

     SEC. 641. CONTINGENT AUTHORITY FOR CONCURRENT RECEIPT OF 
                   MILITARY RETIRED PAY AND VETERANS' DISABILITY 
                   COMPENSATION AND ENHANCEMENT OF SPECIAL 
                   COMPENSATION AUTHORITY.

       (a) Restoration of Retired Pay Benefits.--Chapter 71 of 
     title 10, United States Code, is amended by adding at the end 
     the following new section:

     ``Sec. 1414. Members eligible for retired pay who have 
       service-connected disabilities: payment of retired pay and 
       veterans' disability compensation; contingent authority

       ``(a) Payment of Both Retired Pay and Compensation.--
     Subject to subsection (b), a member or former member of the 
     uniformed services who is entitled to retired pay (other than 
     as specified in subsection (c)) and who is also entitled to 
     veterans' disability compensation is entitled to be paid both 
     without regard to sections 5304 and 5305 of title 38, subject 
     to the enactment of qualifying offsetting legislation as 
     specified in subsection (f).
       ``(b) Special Rule for Chapter 61 Career Retirees.--The 
     retired pay of a member retired under chapter 61 of this 
     title with 20 years or more of service otherwise creditable 
     under section 1405 of this title at the time of the member's 
     retirement is subject to reduction under sections 5304 and 
     5305 of title 38, but only to the extent that the amount of 
     the member's retired pay under chapter 61 of this title 
     exceeds the amount of retired pay to which the member would 
     have been entitled under any other provision of law based 
     upon the member's service in the uniformed services if the 
     member had not been retired under chapter 61 of this title.
       ``(c) Exception.--Subsection (a) does not apply to a member 
     retired under chapter 61 of this title with less than 20 
     years of service otherwise creditable under section 1405 of 
     this title at the time of the member's retirement.
       ``(d) Definitions.--In this section:
       ``(1) The term `retired pay' includes retainer pay, 
     emergency officers' retirement pay, and naval pension.
       ``(2) The term `veterans' disability compensation' has the 
     meaning given the term `compensation' in section 101(12) of 
     title 38.
       ``(e) Effective Date.--If qualifying offsetting legislation 
     (as defined in subsection (f)) is enacted, the provisions of 
     subsection (a) shall take effect on--
       ``(1) the first day of the first month beginning after the 
     date of the enactment of such qualifying offsetting 
     legislation; or
       ``(2) the first day of the fiscal year that begins in the 
     calendar year in which such legislation is enacted, if that 
     date is later than the date specified in paragraph (1).
       ``(f) Effectiveness Contingent on Enactment of Offsetting 
     Legislation.--(1) The provisions of subsection (a) shall be 
     effective only if--
       ``(A) the President, in the budget for any fiscal year, 
     proposes the enactment of legislation that, if enacted, would 
     be qualifying offsetting legislation; and
       ``(B) after that budget is submitted to Congress, there is 
     enacted qualifying offsetting legislation.
       ``(2) In this subsection:
       ``(A) The term `qualifying offsetting legislation' means 
     legislation (other than an appropriations Act) that includes 
     provisions that--
       ``(i) offset fully the increased outlays to be made by 
     reason of the provisions of subsection (a) for each of the 
     first 10 fiscal years beginning after the date of the 
     enactment of such legislation;
       ``(ii) expressly state that they are enacted for the 
     purpose of the offset described in clause (i); and

[[Page 25223]]

       ``(iii) are included in full on the PayGo scorecard.
       ``(B) The term `PayGo scorecard' means the estimates that 
     are made by the Director of the Congressional Budget Office 
     and the Director of the Office of Management and Budget under 
     section 252(d) of the Balanced Budget and Emergency Deficit 
     Control Act of 1985 (2 U.S.C. 902(d)) with respect to the ten 
     fiscal years following the date of the enactment of the 
     legislation that is qualifying offsetting legislation for 
     purposes of this section.''.
       (b) Conforming Termination of Special Compensation 
     Program.--Section 1413(a) of such title is amended by adding 
     at the end the following new sentence: ``If the provisions of 
     subsection (a) of section 1414 of this title become effective 
     in accordance with subsection (f) of that section, payments 
     under this section shall be terminated effective as of the 
     month beginning on the effective date specified in subsection 
     (e) of that section.''.
       (c) Clerical Amendment.--The table of sections at the 
     beginning of such chapter is amended by adding at the end the 
     following new item:

``1414. Members eligible for retired pay who have service-connected 
              disabilities: payment of retired pay and veterans' 
              disability compensation; contingent authority.''.

       (d) Prohibition of Retroactive Benefits.--If the provisions 
     of subsection (a) of section 1414 of title 10, United States 
     Code, becomes effective in accordance with subsection (f) of 
     that section, no benefit may be paid to any person by reason 
     of those provisions for any period before the effective date 
     specified in subsection (e) of that section.
       (e) Enhancement of Special Compensation Authority.--(1) 
     Subsection (b) of section 1413 of title 10, United States 
     Code, is amended by striking paragraphs (1), (2), and (3) and 
     inserting the following:
       ``(1) For payments for months beginning with February 2002 
     and ending with December 2002, the following:
       ``(A) For any month for which the retiree has a qualifying 
     service-connected disability rated as total, $300.
       ``(B) For any month for which the retiree has a qualifying 
     service-connected disability rated as 90 percent, $200.
       ``(C) For any month for which the retiree has a qualifying 
     service-connected disability rated as 80 percent or 70 
     percent, $100.
       ``(D) For any month for which the retiree has a qualifying 
     service-connected disability rated as 60 percent, $50.
       ``(2) For payments for months beginning with January 2003 
     and ending with September 2004, the following:
       ``(A) For any month for which the retiree has a qualifying 
     service-connected disability rated as total, $325.
       ``(B) For any month for which the retiree has a qualifying 
     service-connected disability rated as 90 percent, $225.
       ``(C) For any month for which the retiree has a qualifying 
     service-connected disability rated as 80 percent, $125.
       ``(D) For any month for which the retiree has a qualifying 
     service-connected disability rated as 70 percent, $100.
       ``(E) For any month for which the retiree has a qualifying 
     service-connected disability rated as 60 percent, $50.
       ``(3) For payments for months after September 2004, the 
     following:
       ``(A) For any month for which the retiree has a qualifying 
     service-connected disability rated as total, $350.
       ``(B) For any month for which the retiree has a qualifying 
     service-connected disability rated as 90 percent, $250.
       ``(C) For any month for which the retiree has a qualifying 
     service-connected disability rated as 80 percent, $150.
       ``(D) For any month for which the retiree has a qualifying 
     service-connected disability rated as 70 percent, $125.
       ``(E) For any month for which the retiree has a qualifying 
     service-connected disability rated as 60 percent, $50.''.
       (2) Subsection (d)(2) of such section is amended by 
     striking ``70 percent'' and inserting ``60 percent''.
       (3) The amendments made by this subsection shall take 
     effect on February 1, 2002.

     SEC. 642. SURVIVOR BENEFIT PLAN ANNUITIES FOR SURVIVING 
                   SPOUSES OF MEMBERS WHO DIE WHILE ON ACTIVE DUTY 
                   AND NOT ELIGIBLE FOR RETIREMENT.

       (a) Surviving Spouse Annuity.--Paragraph (1) of section 
     1448(d) of title 10, United States Code, is amended to read 
     as follows:
       ``(1) Surviving spouse annuity.--The Secretary concerned 
     shall pay an annuity under this subchapter to the surviving 
     spouse of--
       ``(A) a member who dies while on active duty after--
       ``(i) becoming eligible to receive retired pay;
       ``(ii) qualifying for retired pay except that the member 
     has not applied for or been granted that pay; or
       ``(iii) completing 20 years of active service but before 
     the member is eligible to retire as a commissioned officer 
     because the member has not completed 10 years of active 
     commissioned service; or
       ``(B) a member not described in subparagraph (A) who dies 
     in line of duty while on active duty.''.
       (b) Computation of Annuity.--Section 1451(c)(1) of such 
     title is amended--
       (1) in subparagraph (A)--
       (A) by striking ``based upon his years of active service 
     when he died.'' and inserting ``when he died determined as 
     follows:
       ``(i) In the case of an annuity provided under section 
     1448(d) of this title (other than in a case covered by clause 
     (ii)), such retired pay shall be computed as if the member 
     had been retired under section 1201 of this title on the date 
     of the member's death with a disability rated as total.
       ``(ii) In the case of an annuity provided under section 
     1448(d)(1)(A) of this title by reason of the death of a 
     member not in line of duty, such retired pay shall be 
     computed based upon the member's years of active service when 
     he died.
       ``(iii) In the case of an annuity provided under section 
     1448(f) of this title, such retired pay shall be computed 
     based upon the member or former member's years of active 
     service when he died computed under section 12733 of this 
     title.''; and
       (2) in subparagraph (B)(i), by striking ``if the member or 
     former member'' and all that follows and inserting ``as 
     determined under subparagraph (A).''.
       (c) Conforming Amendments.--(1) The heading for subsection 
     (d) of section 1448 of such title is amended by striking 
     ``Retirement-Eligible''.
       (2) Subsection (c)(3) of section 1451 of such title is 
     amended by striking ``1448(d)(1)(B) or 1448(d)(1)(C)'' and 
     inserting ``clause (ii) or (iii) of section 1448(d)(1)(A)''.
       (d) Effective Date.--The amendments made by this section 
     shall take effect as of September 10, 2001, and shall apply 
     with respect to deaths of members of the Armed Forces 
     occurring on or after that date.
                       Subtitle E--Other Matters

     SEC. 651. PAYMENT FOR UNUSED LEAVE IN EXCESS OF 60 DAYS 
                   ACCRUED BY MEMBERS OF RESERVE COMPONENTS ON 
                   ACTIVE DUTY FOR ONE YEAR OR LESS.

       (a) Eligibility.--Section 501(b)(5) of title 37, United 
     States Code, is amended by--
       (1) striking ``or'' at the end of subparagraph (B);
       (2) striking the period at the end of subparagraph (C) and 
     inserting ``; or''; and
       (3) adding at the end the following new subparagraph:
       ``(D) by a member of a reserve component while serving on 
     active duty, full-time National Guard duty, or active duty 
     for training for a period of more than 30 days but not in 
     excess of 365 days.''.
       (b) Application of Amendment.--Subparagraph (D) of section 
     501(b)(5) of title 37, United States Code, as added by 
     subsection (a)(3), shall apply with respect to periods of 
     active duty beginning on or after October 1, 2001.

     SEC. 652. ADDITIONAL AUTHORITY TO PROVIDE ASSISTANCE FOR 
                   FAMILIES OF MEMBERS OF THE ARMED FORCES.

       (a) Authority.--During fiscal year 2002, the Secretary of 
     Defense may provide assistance for families of members of the 
     Armed Forces serving on active duty in order to ensure that 
     the children of such members obtain needed child care, 
     education, and other youth services.
       (b) Primary Purpose of Assistance.--The assistance 
     authorized by this section should be directed primarily 
     toward providing needed family support, including child care, 
     education, and other youth services, for children of members 
     of the Armed Forces who are deployed, assigned to duty, or 
     ordered to active duty in connection with the contingency 
     operation known as Operation Enduring Freedom.

     SEC. 653. AUTHORIZATION OF TRANSITIONAL COMPENSATION AND 
                   COMMISSARY AND EXCHANGE BENEFITS FOR DEPENDENTS 
                   OF COMMISSIONED OFFICERS OF THE PUBLIC HEALTH 
                   SERVICE AND THE NATIONAL OCEANIC AND 
                   ATMOSPHERIC ADMINISTRATION WHO ARE SEPARATED 
                   FOR DEPENDENT ABUSE.

       (a) Commissioned Officers of the Public Health Service.--
     Section 221(a) of the Public Health Service Act (42 U.S.C. 
     213a(a)) is amended by adding at the end the following new 
     paragraph:
       ``(17) Section 1059, Transitional compensation and 
     commissary and exchange benefits for dependents of members 
     separated for dependent abuse.''.
       (b) Commissioned Officers of the National Oceanic and 
     Atmospheric Administration.--Section 3(a) of the Act entitled 
     ``An Act to revise, codify, and enact into law, title 10 of 
     the United States Code, entitled `Armed Forces', and title 32 
     of the United States Code, entitled `National Guard' '', 
     approved August 10, 1956 (33 U.S.C. 857a(a)), is amended by 
     adding at the end the following new paragraph:
       ``(17) Section 1059, Transitional compensation and 
     commissary and exchange benefits for dependents of members 
     separated for dependent abuse.''.

     SEC. 654. TRANSFER OF ENTITLEMENT TO EDUCATIONAL ASSISTANCE 
                   UNDER MONTGOMERY GI BILL BY MEMBERS OF THE 
                   ARMED FORCES WITH CRITICAL MILITARY SKILLS.

       (a) Authority To Transfer to Family Members.--(1) 
     Subchapter II of chapter 30 of title 38, United States Code, 
     is amended by adding at the end the following new section:

     ``Sec. 3020. Transfer of entitlement to basic educational 
       assistance: members of the Armed Forces with critical 
       military skills

       ``(a) In General.--Subject to the provisions of this 
     section, each Secretary concerned may, for the purpose of 
     enhancing recruitment and retention of members of the Armed 
     Forces with critical military skills and at such Secretary's 
     sole discretion, permit an individual described in subsection 
     (b) who is entitled to basic educational assistance under 
     this subchapter to

[[Page 25224]]

     elect to transfer to one or more of the dependents specified 
     in subsection (c) a portion of such individual's entitlement 
     to such assistance, subject to the limitation under 
     subsection (d).
       ``(b) Eligible Individuals.--An individual referred to in 
     subsection (a) is any member of the Armed Forces who, at the 
     time of the approval by the Secretary concerned of the 
     member's request to transfer entitlement to basic educational 
     assistance under this section--
       ``(1) has completed six years of service in the Armed 
     Forces;
       ``(2) either--
       ``(A) has a critical military skill designated by the 
     Secretary concerned for purposes of this section; or
       ``(B) is in a military specialty designated by the 
     Secretary concerned for purposes of this section as requiring 
     critical military skills; and
       ``(3) enters into an agreement to serve at least four more 
     years as a member of the Armed Forces.
       ``(c) Eligible Dependents.--An individual approved to 
     transfer an entitlement to basic educational assistance under 
     this section may transfer the individual's entitlement as 
     follows:
       ``(1) To the individual's spouse.
       ``(2) To one or more of the individual's children.
       ``(3) To a combination of the individuals referred to in 
     paragraphs (1) and (2).
       ``(d) Limitation on Months of Transfer.--The total number 
     of months of entitlement transferred by an individual under 
     this section may not exceed 18 months.
       ``(e) Designation of Transferee.--An individual 
     transferring an entitlement to basic educational assistance 
     under this section shall--
       ``(1) designate the dependent or dependents to whom such 
     entitlement is being transferred;
       ``(2) designate the number of months of such entitlement to 
     be transferred to each such dependent; and
       ``(3) specify the period for which the transfer shall be 
     effective for each dependent designated under paragraph (1).
       ``(f) Time for Transfer; Revocation and Modification.--(1) 
     Subject to the time limitation for use of entitlement under 
     section 3031 of this title, an individual approved to 
     transfer entitlement to basic educational assistance under 
     this section may transfer such entitlement at any time after 
     the approval of the individual's request to transfer such 
     entitlement without regard to whether the individual is a 
     member of the Armed Forces when the transfer is executed.
       ``(2)(A) An individual transferring entitlement under this 
     section may modify or revoke at any time the transfer of any 
     unused portion of the entitlement so transferred.
       ``(B) The modification or revocation of the transfer of 
     entitlement under this paragraph shall be made by the 
     submittal of written notice of the action to both the 
     Secretary concerned and the Secretary of Veterans Affairs.
       ``(g) Commencement of Use.--A dependent to whom entitlement 
     to basic educational assistance is transferred under this 
     section may not commence the use of the transferred 
     entitlement until--
       ``(1) in the case of entitlement transferred to a spouse, 
     the completion by the individual making the transfer of six 
     years of service in the Armed Forces; or
       ``(2) in the case of entitlement transferred to a child, 
     both--
       ``(A) the completion by the individual making the transfer 
     of 10 years of service in the Armed Forces; and
       ``(B) either--
       ``(i) the completion by the child of the requirements of a 
     secondary school diploma (or equivalency certificate); or
       ``(ii) the attainment by the child of 18 years of age.
       ``(h) Additional Administrative Matters.--(1) The use of 
     any entitlement to basic educational assistance transferred 
     under this section shall be charged against the entitlement 
     of the individual making the transfer at the rate of one 
     month for each month of transferred entitlement that is used.
       ``(2) Except as provided under subsection (e)(2) and 
     subject to paragraphs (4) and (5), a dependent to whom 
     entitlement is transferred under this section is entitled to 
     basic educational assistance under this subchapter in the 
     same manner and at the same rate as the individual from whom 
     the entitlement was transferred.
       ``(3) The death of an individual transferring an 
     entitlement under this section shall not affect the use of 
     the entitlement by the dependent to whom the entitlement is 
     transferred.
       ``(4) Notwithstanding section 3031 of this title, a child 
     to whom entitlement is transferred under this section may not 
     use any entitlement so transferred after attaining the age of 
     26 years.
       ``(5) The administrative provisions of this chapter 
     (including the provisions set forth in section 3034(a)(1) of 
     this title) shall apply to the use of entitlement transferred 
     under this section, except that the dependent to whom the 
     entitlement is transferred shall be treated as the eligible 
     veteran for purposes of such provisions.
       ``(6) The purposes for which a dependent to whom 
     entitlement is transferred under this section may use such 
     entitlement shall include the pursuit and completion of the 
     requirements of a secondary school diploma (or equivalency 
     certificate).
       ``(i) Overpayment.--(1) In the event of an overpayment of 
     basic educational assistance with respect to a dependent to 
     whom entitlement is transferred under this section, the 
     dependent and the individual making the transfer shall be 
     jointly and severally liable to the United States for the 
     amount of the overpayment for purposes of section 3685 of 
     this title.
       ``(2) Except as provided in paragraph (3), if an individual 
     transferring entitlement under this section fails to complete 
     the service agreed to by the individual under subsection 
     (b)(3) in accordance with the terms of the agreement of the 
     individual under that subsection, the amount of any 
     transferred entitlement under this section that is used by a 
     dependent of the individual as of the date of such failure 
     shall be treated as an overpayment of basic educational 
     assistance under paragraph (1).
       ``(3) Paragraph (2) shall not apply in the case of an 
     individual who fails to complete service agreed to by the 
     individual--
       ``(A) by reason of the death of the individual; or
       ``(B) for a reason referred to in section 
     3011(a)(1)(A)(ii)(I) of this title.
       ``(j) Approvals of Transfer Subject to Availability of 
     Appropriations.--The Secretary concerned may approve 
     transfers of entitlement to basic educational assistance 
     under this section in a fiscal year only to the extent that 
     appropriations for military personnel are available in that 
     fiscal year for purposes of making deposits in the Department 
     of Defense Education Benefits Fund under section 2006 of 
     title 10 in that fiscal year to cover the present value of 
     future benefits payable from the Fund for the Department of 
     Defense portion of payments of basic educational assistance 
     attributable to increased usage of benefits as a result of 
     such transfers of entitlement in that fiscal year.
       ``(k) Regulations.--The Secretary of Defense shall 
     prescribe regulations for purposes of this section. Such 
     regulations shall specify the manner and effect of an 
     election to modify or revoke a transfer of entitlement under 
     subsection (f)(2) and shall specify the manner of the 
     applicability of the administrative provisions referred to in 
     subsection (h)(5) to a dependent to whom entitlement is 
     transferred under this section.
       ``(l) Annual Report.--(1) Not later than January 31 each 
     year (beginning in 2003), the Secretary of Defense shall 
     submit to the Committees on Armed Services and the Committees 
     on Veterans' Affairs of the Senate and House of 
     Representatives a report on the transfers of entitlement to 
     basic educational assistance under this section that were 
     approved by each Secretary concerned during the preceding 
     fiscal year.
       ``(2) Each report shall set forth--
       ``(A) the number of transfers of entitlement under this 
     section that were approved by such Secretary during the 
     preceding fiscal year; or
       ``(B) if no transfers of entitlement under this section 
     were approved by such Secretary during that fiscal year, a 
     justification for such Secretary's decision not to approve 
     any such transfers of entitlement during that fiscal year.
       ``(m) Secretary Concerned Defined.--Notwithstanding section 
     101(25) of this title, in this section, the term `Secretary 
     concerned' means--
       ``(1) the Secretary of the Army with respect to matters 
     concerning the Army;
       ``(2) the Secretary of the Navy with respect to matters 
     concerning the Navy or the Marine Corps;
       ``(3) the Secretary of the Air Force with respect to 
     matters concerning the Air Force; and
       ``(4) the Secretary of the Defense with respect to matters 
     concerning the Coast Guard, or the Secretary of 
     Transportation when it is not operating as a service in the 
     Navy.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by inserting after the item relating to section 
     3019 the following new item:

``3020. Transfer of entitlement to basic educational assistance: 
              members of the Armed Forces with critical military 
              skills.''.
       (b) Treatment Under Department of Defense Education 
     Benefits Fund.--Section 2006(b)(2) of title 10, United States 
     Code, is amended by adding at the end the following new 
     subparagraph:
       ``(D) The present value of future benefits payable from the 
     Fund for the Department of Defense portion of payments of 
     educational assistance under subchapter II of chapter 30 of 
     title 38 attributable to increased usage of benefits as a 
     result of transfers of entitlement to basic educational 
     assistance under section 3020 of that title during such 
     period.''.
       (c) Plan for Implementation.--Not later than June 30, 2002, 
     the Secretary of Defense shall submit to Congress a report 
     describing the manner in which the Secretaries of the 
     military departments and the Secretary of Transportation 
     propose to exercise the authority granted by section 3020 of 
     title 38, United States Code, as added by subsection (a). The 
     report shall include the regulations prescribed under 
     subsection (k) of that section for purposes of the exercise 
     of the authority.
       (d) Funding for Fiscal Year 2002.--Of the amount authorized 
     to be appropriated to the Department of Defense for military 
     personnel for fiscal year 2002 by section 421, $30,000,000 
     may be available in fiscal year 2002 for deposit into the 
     Department of Defense Education Benefits Fund under section 
     2006 of title 10, United States Code, for purposes of 
     covering payments of amounts under subparagraph (D) of 
     section 2006(b)(2) of such title (as added by subsection 
     (b)), as a result of transfers of entitlement to basic 
     educational assistance under section 3020 of title 38, United 
     States Code (as added by subsection (a)).
                   TITLE VII--HEALTH CARE PROVISIONS

                Subtitle A--TRICARE Program Improvements

Sec. 701. Sub-acute and long-term care program reform.

[[Page 25225]]

Sec. 702. Prosthetics and hearing aids.
Sec. 703. Durable medical equipment.
Sec. 704. Rehabilitative therapy.
Sec. 705. Report on mental health benefits.
Sec. 706. Clarification of eligibility for reimbursement of travel 
              expenses of adult accompanying patient in travel for 
              specialty care.
Sec. 707. TRICARE program limitations on payment rates for 
              institutional health care providers and on balance 
              billing by institutional and noninstitutional health care 
              providers.
Sec. 708. Improvements in administration of the TRICARE program.

                     Subtitle B--Senior Health Care

Sec. 711. Clarifications and improvements regarding the Department of 
              Defense Medicare-Eligible Retiree Health Care Fund.

                    Subtitle C--Studies and Reports

Sec. 721. Comptroller General study of health care coverage of members 
              of the reserve components of the Armed Forces and the 
              National Guard.
Sec. 722. Comptroller General study of adequacy and quality of health 
              care provided to women under the defense health program.
Sec. 723. Repeal of obsolete report requirement.
Sec. 724. Comptroller General report on requirement to provide 
              screenings, physical examinations, and other care for 
              certain members.

                       Subtitle D--Other Matters

Sec. 731. Prohibition against requiring military retirees to receive 
              health care solely through the Department of Defense.
Sec. 732. Fees for trauma and other medical care provided to civilians.
Sec. 733. Enhancement of medical product development.
Sec. 734. Pilot program providing for Department of Veterans Affairs 
              support in the performance of separation physical 
              examinations.
Sec. 735. Modification of prohibition on requirement of nonavailability 
              statement or preauthorization.
Sec. 736. Transitional health care for members separated from active 
              duty.
Sec. 737. Two-year extension of health care management demonstration 
              program.
Sec. 738. Joint DoD-VA pilot program for providing graduate medical 
              education and training for physicians.
                Subtitle A--TRICARE Program Improvements

     SEC. 701. SUB-ACUTE AND LONG-TERM CARE PROGRAM REFORM.

       (a) In General.--(1) Chapter 55 of title 10, United States 
     Code, is amended by inserting after section 1074i the 
     following new section:

     ``Sec. 1074j. Sub-acute care program

       ``(a) Establishment.--The Secretary of Defense shall 
     establish an effective, efficient, and integrated sub-acute 
     care benefits program under this chapter (hereinafter 
     referred to in this section as the `program'). Except as 
     otherwise provided in this section, the types of health care 
     authorized under the program shall be the same as those 
     provided under section 1079 of this title. The Secretary, 
     after consultation with the other administering Secretaries, 
     shall promulgate regulations to carry out this section.
       ``(b) Benefits.--(1) The program shall include a uniform 
     skilled nursing facility benefit that shall be provided in 
     the manner and under the conditions described in section 
     1861(h) and (i) of the Social Security Act (42 U.S.C. 
     1395x(h) and (i)), except that the limitation on the number 
     of days of coverage under section 1812(a) and (b) of such Act 
     (42 U.S.C. 1395d(a) and (b)) shall not be applicable under 
     the program. Skilled nursing facility care for each spell of 
     illness shall continue to be provided for as long as 
     medically necessary and appropriate.
       ``(2) In this subsection:
       ``(A) The term `skilled nursing facility' has the meaning 
     given such term in section 1819(a) of the Social Security Act 
     (42 U.S.C. 1395i-3(a)).
       ``(B) The term `spell of illness' has the meaning given 
     such term in section 1861(a) of such Act (42 U.S.C. 
     1395x(a)).
       ``(3) The program shall include a comprehensive, part-time 
     or intermittent home health care benefit that shall be 
     provided in the manner and under the conditions described in 
     section 1861(m) of the Social Security Act (42 U.S.C. 
     1395x(m)).''.
       (2) The table of sections at the beginning of such chapter 
     is amended by inserting after the item relating to section 
     1074i the following new item:

``1074j. Sub-acute care program.''.
       (b) Extended Benefits for Disabled Beneficiaries.--Section 
     1079 of title 10, United States Code, is amended by striking 
     subsections (d), (e), and (f) and inserting the following new 
     subsections:
       ``(d)(1) The Secretary of Defense shall establish a program 
     to provide extended benefits for eligible dependents, which 
     may include the provision of comprehensive health care 
     services, including case management services, to assist in 
     the reduction of the disabling effects of a qualifying 
     condition of an eligible dependent. Registration shall be 
     required to receive the extended benefits.
       ``(2) The Secretary of Defense, after consultation with the 
     other administering Secretaries, shall promulgate regulations 
     to carry out this subsection.
       ``(3) In this subsection:
       ``(A) The term `eligible dependent' means a dependent of a 
     member of the uniformed services on active duty for a period 
     of more than 30 days, as described in subparagraph (A), (D), 
     or (I) of section 1072(2) of this title, who has a qualifying 
     condition.
       ``(B) The term `qualifying condition' means the condition 
     of a dependent who is moderately or severely mentally 
     retarded, has a serious physical disability, or has an 
     extraordinary physical or psychological condition.
       ``(e) Extended benefits for eligible dependents under 
     subsection (d) may include comprehensive health care services 
     (including services necessary to maintain, or minimize or 
     prevent deterioration of, function of the patient) and case 
     management services with respect to the qualifying condition 
     of such a dependent, and include, to the extent such benefits 
     are not provided under provisions of this chapter other than 
     under this section, the following:
       ``(1) Diagnosis.
       ``(2) Inpatient, outpatient, and comprehensive home health 
     care supplies and services which may include cost effective 
     and medically appropriate services other than part-time or 
     intermittent services (within the meaning of such terms as 
     used in the second sentence of section 1861(m) of the Social 
     Security Act).
       ``(3) Training, rehabilitation, special education, and 
     assistive technology devices.
       ``(4) Institutional care in private nonprofit, public, and 
     State institutions and facilities and, if appropriate, 
     transportation to and from such institutions and facilities.
       ``(5) Custodial care, notwithstanding the prohibition in 
     section 1077(b)(1) of this title.
       ``(6) Respite care for the primary caregiver of the 
     eligible dependent.
       ``(7) Such other services and supplies as determined 
     appropriate by the Secretary, notwithstanding the limitations 
     in subsection (a)(13).
       ``(f)(1) Members shall be required to share in the cost of 
     any benefits provided to their dependents under subsection 
     (d) as follows:
       ``(A) Members in the lowest enlisted pay grade shall be 
     required to pay the first $25 incurred each month, and 
     members in the highest commissioned pay grade shall be 
     required to pay the first $250 incurred each month. The 
     amounts to be paid by members in all other pay grades shall 
     be determined under regulations to be prescribed by the 
     Secretary of Defense in consultation with the administering 
     Secretaries.
       ``(B) A member who has more than one dependent incurring 
     expenses in a given month under a plan covered by subsection 
     (d) shall not be required to pay an amount greater than would 
     be required if the member had only one such dependent.
       ``(2) In the case of extended benefits provided under 
     paragraph (3) or (4) of subsection (e) to a dependent of a 
     member of the uniformed services--
       ``(A) the Government's share of the total cost of providing 
     such benefits in any month shall not exceed $2,500, except 
     for costs that a member is exempt from paying under paragraph 
     (3); and
       ``(B) the member shall pay (in addition to any amount 
     payable under paragraph (1)) the amount, if any, by which the 
     amount of such total cost for the month exceeds the 
     Government's maximum share under subparagraph (A).
       ``(3) A member of the uniformed services who incurs 
     expenses under paragraph (2) for a month for more than one 
     dependent shall not be required to pay for the month under 
     subparagraph (B) of that paragraph an amount greater than the 
     amount the member would otherwise be required to pay under 
     that subparagraph for the month if the member were incurring 
     expenses under that subparagraph for only one dependent.
       ``(4) To qualify for extended benefits under paragraph (3) 
     or (4) of subsection (e), a dependent of a member of the 
     uniformed services shall be required to use public facilities 
     to the extent such facilities are available and adequate, as 
     determined under joint regulations of the administering 
     Secretaries.
       ``(5) The Secretary of Defense, in consultation with the 
     other administering Secretaries, shall prescribe regulations 
     to carry out this subsection.''.
       (c) Definitions of Custodial Care and Domiciliary Care.--
     Section 1072 of title 10, United States Code, is amended by 
     adding at the end the following new paragraphs:
       ``(8) The term `custodial care' means treatment or 
     services, regardless of who recommends such treatment or 
     services or where such treatment or services are provided, 
     that--
       ``(A) can be rendered safely and reasonably by a person who 
     is not medically skilled; or
       ``(B) is or are designed mainly to help the patient with 
     the activities of daily living.
       ``(9) The term `domiciliary care' means care provided to a 
     patient in an institution or homelike environment because--
       ``(A) providing support for the activities of daily living 
     in the home is not available or is unsuitable; or
       ``(B) members of the patient's family are unwilling to 
     provide the care.''.
       (d) Continuation of Individual Case Management Services for 
     Certain Eligible Beneficiaries.--(1) Notwithstanding the 
     termination of the Individual Case Management Program by 
     subsection (g), the Secretary of Defense shall, in any case 
     in which the Secretary makes the determination described in 
     paragraph (2), continue to provide payment as if such program 
     were in effect for home health care or custodial

[[Page 25226]]

     care services provided to an eligible beneficiary that would 
     otherwise be excluded from coverage under regulations 
     implementing chapter 55 of title 10, United States Code.
       (2) The determination referred to in paragraph (1) is a 
     determination that discontinuation of payment for services 
     not otherwise provided under such chapter would result in the 
     provision of services inadequate to meet the needs of the 
     eligible beneficiary and would be unjust to such beneficiary.
       (3) For purposes of this subsection, ``eligible 
     beneficiary'' means a covered beneficiary (as that term is 
     defined in section 1072 of title 10, United States Code) who, 
     before the effective date of this section, was provided 
     custodial care services under the Individual Case Management 
     Program for which the Secretary provided payment.
       (e) Report on Initiatives Regarding Long-Term Care.--The 
     Secretary of Defense shall, not later than April 1, 2002, 
     submit to Congress a report on the feasibility and 
     desirability of establishing new initiatives, taking into 
     account chapter 90 of title 5, United States Code, to improve 
     the availability of long-term care for members and retired 
     members of the uniformed services and their families.
       (f) Reference in Title 10 to Long-Term Care Program in 
     Title 5.--(1) Chapter 55 of title 10, United States Code, is 
     amended by inserting after section 1074j (as added by 
     subsection (a)) the following new section:

     ``Sec. 1074k. Long-term care insurance

       ``Provisions regarding long-term care insurance for members 
     and certain former members of the uniformed services and 
     their families are set forth in chapter 90 of title 5.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by inserting after the item relating to section 
     1074j (as added by subsection (a)) the following new item:

``1074k. Long-term care insurance.''.
       (g) Conforming Amendments.--(1) The following provisions of 
     law are repealed:
       (A) Section 703 of the National Defense Authorization Act 
     for Fiscal Year 2000 (Public Law 106-65; 113 Stat. 682; 10 
     U.S.C. 1077 note).
       (B) Section 8118 of the Department of Defense 
     Appropriations Act, 2000 (Public Law 106-79; 113 Stat. 1260).
       (C) Section 8100 of the Department of Defense 
     Appropriations Act, 2001 (Public Law 106-259; 114 Stat. 696).
       (2) Section 1079 of title 10, United States Code, is 
     amended in subsection (a) by striking paragraph (17).

     SEC. 702. PROSTHETICS AND HEARING AIDS.

       Section 1077 of title 10 United States Code, is amended--
       (1) in subsection (a), by adding at the end the following:
       ``(16) A hearing aid, but only for a dependent of a member 
     of the uniformed services on active duty and only if the 
     dependent has a profound hearing loss, as determined under 
     standards prescribed in regulations by the Secretary of 
     Defense in consultation with the administering 
     Secretaries.'';
       (2) in subsection (b)(2), by striking ``Hearing aids, 
     orthopedic footwear,'' and inserting ``Orthopedic footwear''; 
     and
       (3) by adding at the end the following new subsection:
       ``(e)(1) Authority to provide a prosthetic device under 
     subsection (a)(15) includes authority to provide the 
     following:
       ``(A) Any accessory or item of supply that is used in 
     conjunction with the device for the purpose of achieving 
     therapeutic benefit and proper functioning.
       ``(B) Services necessary to train the recipient of the 
     device in the use of the device.
       ``(C) Repair of the device for normal wear and tear or 
     damage.
       ``(D) Replacement of the device if the device is lost or 
     irreparably damaged or the cost of repair would exceed 60 
     percent of the cost of replacement.
       ``(2) An augmentative communication device may be provided 
     as a voice prosthesis under subsection (a)(15).
       ``(3) A prosthetic device customized for a patient may be 
     provided under this section only by a prosthetic practitioner 
     who is qualified to customize the device, as determined under 
     regulations prescribed by the Secretary of Defense in 
     consultation with the administering Secretaries.''.

     SEC. 703. DURABLE MEDICAL EQUIPMENT.

       (a) Items Authorized.--Section 1077 of title 10, United 
     States Code, as amended by section 702, is further amended--
       (1) in subsection (a)(12), by striking ``such as 
     wheelchairs, iron lungs, and hospital beds'' and inserting 
     ``which''; and
       (2) by adding at the end the following new subsection:
       ``(f)(1) Items that may be provided to a patient under 
     subsection (a)(12) include the following:
       ``(A) Any durable medical equipment that can improve, 
     restore, or maintain the function of a malformed, diseased, 
     or injured body part, or can otherwise minimize or prevent 
     the deterioration of the patient's function or condition.
       ``(B) Any durable medical equipment that can maximize the 
     patient's function consistent with the patient's 
     physiological or medical needs.
       ``(C) Wheelchairs.
       ``(D) Iron lungs.
       ``(E) Hospital beds.
       ``(2) In addition to the authority to provide durable 
     medical equipment under subsection (a)(12), any customization 
     of equipment owned by the patient that is durable medical 
     equipment authorized to be provided to the patient under this 
     section or section 1079(a)(5) of this title, and any 
     accessory or item of supply for any such equipment, may be 
     provided to the patient if the customization, accessory, or 
     item of supply is essential for--
       ``(A) achieving therapeutic benefit for the patient;
       ``(B) making the equipment serviceable; or
       ``(C) otherwise assuring the proper functioning of the 
     equipment.''.
       (b) Provision of Items on Rental Basis.--Paragraph (5) of 
     section 1079(a) of such title is amended to read as follows:
       ``(5) Durable equipment provided under this section may be 
     provided on a rental basis.''.

     SEC. 704. REHABILITATIVE THERAPY.

       Section 1077(a) of title 10, United States Code, as amended 
     by sections 702 and 703, is further amended by inserting 
     after paragraph (16) the following new paragraph:
       ``(17) Any rehabilitative therapy to improve, restore, or 
     maintain function, or to minimize or prevent deterioration of 
     function, of a patient when prescribed by a physician.''.

     SEC. 705. REPORT ON MENTAL HEALTH BENEFITS.

       (a) Requirement for Study.--The Secretary of Defense shall 
     carry out a study to determine the adequacy of the scope and 
     availability of outpatient mental health benefits provided 
     for members of the Armed Forces and covered beneficiaries 
     under the TRICARE program.
       (b) Report.--Not later than March 31, 2002, the Secretary 
     shall submit to the Committees on Armed Services of the 
     Senate and the House of Representatives a report on the 
     study, including the conclusions and any recommendations for 
     legislation that the Secretary considers appropriate.

     SEC. 706. CLARIFICATION OF ELIGIBILITY FOR REIMBURSEMENT OF 
                   TRAVEL EXPENSES OF ADULT ACCOMPANYING PATIENT 
                   IN TRAVEL FOR SPECIALTY CARE.

       Section 1074i of title 10, United States Code, is amended 
     by inserting before the period at the end the following: 
     ``and, when accompaniment by an adult is necessary, for a 
     parent or guardian of the covered beneficiary or another 
     member of the covered beneficiary's family who is at least 21 
     years of age''.

     SEC. 707. TRICARE PROGRAM LIMITATIONS ON PAYMENT RATES FOR 
                   INSTITUTIONAL HEALTH CARE PROVIDERS AND ON 
                   BALANCE BILLING BY INSTITUTIONAL AND 
                   NONINSTITUTIONAL HEALTH CARE PROVIDERS.

       (a) Institutional Providers.--Section 1079(j) of title 10, 
     United States Code, is amended--
       (1) in paragraph (2)(A)--
       (A) by striking ``(A)''; and
       (B) by striking ``may be determined under joint 
     regulations'' and inserting ``shall be determined under joint 
     regulations'';
       (2) by redesignating subparagraph (B) of paragraph (2) as 
     paragraph (4), and, in such paragraph, as so redesignated, by 
     striking ``subparagraph (A),'' and inserting ``this 
     subsection,''; and
       (3) by inserting before paragraph (4), as redesignated by 
     paragraph (2), the following new paragraph (3):
       ``(3) A contract for a plan covered by this section shall 
     include a clause that prohibits each provider of services 
     under the plan from billing any person covered by the plan 
     for any balance of charges for services in excess of the 
     amount paid for those services under the joint regulations 
     referred to in paragraph (2), except for any unpaid amounts 
     of deductibles or copayments that are payable directly to the 
     provider by the person.''.
       (b) Noninstitutional Providers.--Section 1079(h)(4) of such 
     title is amended--
       (1) by inserting ``(A)'' after ``(4)''; and
       (2) by adding at the end the following new subparagraph:
       ``(B) The regulations shall include a restriction that 
     prohibits an individual health care professional (or other 
     noninstitutional health care provider) from billing a 
     beneficiary for services for more than the amount that is 
     equal to--
       ``(i) the excess of the limiting charge (as defined in 
     section 1848(g)(2) of the Social Security Act (42 U.S.C. 
     1395w-4(g)(2))) that would be applicable if the services had 
     been provided by the professional (or other provider) as an 
     individual health care professional (or other 
     noninstitutional health care provider) on a nonassignment-
     related basis under part B of title XVIII of such Act over 
     the amount that is payable by the United States for those 
     services under this subsection, plus
       ``(ii) any unpaid amounts of deductibles or copayments that 
     are payable directly to the professional (or other provider) 
     by the beneficiary.''.
       (c) Effective Date.--The amendments made by this section 
     shall take effect on the date that is 90 days after the date 
     of the enactment of this Act.

     SEC. 708. IMPROVEMENTS IN ADMINISTRATION OF THE TRICARE 
                   PROGRAM.

       (a) Flexibility in Contracting.--(1) During the one-year 
     period following the date of the enactment of this Act, 
     section 1072(7) of title 10, United States Code, shall be 
     deemed to be amended by striking ``the competitive selection 
     of contractors to financially underwrite''.
       (2) The terms and conditions of any contract to provide 
     health care services under the TRICARE program entered into 
     during the period described in paragraph (1) shall not be 
     considered to be modified or terminated as a result of the 
     termination of such period.

[[Page 25227]]

       (b) Reduction of Contract Start-Up Time.--Section 1095c(b) 
     of such title is amended--
       (1) in paragraph (1)--
       (A) by striking ``The'' and inserting ``Except as provided 
     in paragraph (3), the''; and
       (B) by striking ``contract.'' and all that follows through 
     ``as soon as practicable after the award of the''; and
       (2) by adding at the end the following new paragraph:
       ``(3) The Secretary may reduce the nine-month start-up 
     period required under paragraph (1) if--
       ``(A) the Secretary--
       ``(i) determines that a shorter period is sufficient to 
     ensure effective implementation of all contract requirements; 
     and
       ``(ii) submits notification to the Committees on Armed 
     Services of the House of Representatives and the Senate of 
     the Secretary's intent to reduce the nine-month start-up 
     period; and
       ``(B) 60 days have elapsed since the date of such 
     notification.''.
                     Subtitle B--Senior Health Care

     SEC. 711. CLARIFICATIONS AND IMPROVEMENTS REGARDING THE 
                   DEPARTMENT OF DEFENSE MEDICARE-ELIGIBLE RETIREE 
                   HEALTH CARE FUND.

       (a) Clarification Regarding Coverage.--Subsection (b) of 
     section 1111 of title 10, United States Code, is amended to 
     read as follows:
       ``(b) In this chapter:
       ``(1) The term `uniformed services retiree health care 
     programs' means the provisions of this title or any other 
     provision of law creating an entitlement to or eligibility 
     for health care for a member or former member of a 
     participating uniformed service who is entitled to retired or 
     retainer pay, and an eligible dependent under such program.
       ``(2) The term `eligible dependent' means a dependent 
     described in section 1076(a)(2) (other than a dependent of a 
     member on active duty), 1076(b), 1086(c)(2), or 1086(c)(3) of 
     this title.
       ``(3) The term `medicare-eligible', with respect to any 
     person, means entitled to benefits under part A of title 
     XVIII of the Social Security Act (42 U.S.C. 1395c et seq.).
       ``(4) The term `participating uniformed service' means the 
     Army, Navy, Air Force, and Marine Corps, and any other 
     uniformed service that is covered by an agreement entered 
     into under subsection (c).''.
       (b) Participation of Other Uniformed Services.--(1) Section 
     1111 of such title is further amended by adding at the end 
     the following new subsection:
       ``(c) The Secretary of Defense may enter into an agreement 
     with any other administering Secretary (as defined in section 
     1072(3) of this title) for participation in the Fund by a 
     uniformed service under the jurisdiction of that Secretary. 
     Any such agreement shall require that Secretary to determine 
     contributions to the Fund on behalf of the members of the 
     uniformed service under the jurisdiction of that Secretary in 
     a manner comparable to the determination with respect to 
     contributions to the Fund made by the Secretary of Defense 
     under section 1116 of this title, and such administering 
     Secretary may make such contributions.''.
       (2) Section 1112 of such title is amended by adding at the 
     end the following new paragraph:
       ``(4) Amounts paid into the Fund pursuant to section 
     1111(c) of this title.''.
       (3) Section 1115 of such title is amended--
       (A) in subsection (a), by inserting ``participating'' 
     before ``uniformed services'';
       (B) in subparagraphs (A)(ii) and (B)(ii) of subsection 
     (b)(1), by inserting ``under the jurisdiction of the 
     Secretary of Defense'' after ``uniformed services'';
       (C) in subsection (b)(2), by inserting ``(or to the other 
     executive department having jurisdiction over the 
     participating uniformed service)'' after ``Department of 
     Defense''; and
       (D) in subparagraphs (A) and (B) of subsection (c)(1), by 
     inserting ``participating'' before ``uniformed services''.
       (4) Section 1116(a) of such title is amended in paragraphs 
     (1)(B) and (2)(B) by inserting ``under the jurisdiction of 
     the Secretary of Defense'' after ``uniformed services''.
       (c) Clarification of Payments From the Fund.--(1) 
     Subsection (a) of section 1113 of such title is amended to 
     read as follows:
       ``(a) There shall be paid from the Fund amounts payable for 
     the costs of all uniformed service retiree health care 
     programs for the benefit of members or former members of a 
     participating uniformed service who are entitled to retired 
     or retainer pay and are medicare eligible, and eligible 
     dependents who are medicare eligible.''.
       (2) Such section is further amended by adding at the end 
     the following new subsections:
       ``(c)(1) In carrying out subsection (a), the Secretary of 
     Defense may transfer periodically from the Fund to applicable 
     appropriations of the Department of Defense, or to applicable 
     appropriations of other departments or agencies, such amounts 
     as the Secretary determines necessary to cover the costs 
     chargeable to those appropriations for uniformed service 
     retiree health care programs for beneficiaries under those 
     programs who are medicare-eligible. Such transfers may 
     include amounts necessary for the administration of such 
     programs. Amounts so transferred shall be merged with and be 
     available for the same purposes and for the same time period 
     as the appropriation to which transferred. Upon a 
     determination that all or part of the funds transferred from 
     the Fund are not necessary for the purposes for which 
     transferred, such amounts may be transferred back to the 
     Fund. This transfer authority is in addition to any other 
     transfer authority that may be available to the Secretary.
       ``(2) A transfer from the Fund under paragraph (1) may not 
     be made to an appropriation after the end of the second 
     fiscal year after the fiscal year that the appropriation is 
     available for obligation. A transfer back to the Fund under 
     paragraph (1) may not be made after the end of the second 
     fiscal year after the fiscal year for which the appropriation 
     to which the funds were originally transferred is available 
     for obligation.
       ``(d) The Secretary of Defense shall by regulation 
     establish the method or methods for calculating amounts to be 
     transferred under subsection (c). Such method or methods may 
     be based (in whole or in part) on a proportionate share of 
     the volume (measured as the Secretary determines appropriate) 
     of health care services provided or paid for under uniformed 
     service retiree health care programs for beneficiaries under 
     those programs who are medicare-eligible in relation to the 
     total volume of health care services provided or paid for 
     under Department of Defense health care programs.
       ``(e) The regulations prescribed by the Secretary under 
     subsection (d) shall be provided to the Comptroller General 
     not less than 60 days before such regulations become 
     effective. The Comptroller General shall, not later than 30 
     days after receiving such regulations, report to the 
     Secretary of Defense and Congress on the adequacy and 
     appropriateness of the regulations.
       ``(f) If the Secretary of Defense enters into an agreement 
     with another administering Secretary pursuant to section 
     1111(c), the Secretary of Defense may take the actions 
     described in subsections (c), (d), and (e) on behalf of the 
     beneficiaries and programs of the other participating 
     uniformed service.''.
       (d) Source of Funds for Monthly Accrual Payments Into the 
     Fund.--Section 1116 of such title is further amended--
       (1) in subsection (a)(2)(B) (as amended by subsection 
     (b)(4)), by striking the sentence beginning ``Amounts paid 
     into''; and
       (2) by adding at the end the following new subsection:
       ``(c) Amounts paid into the Fund under subsection (a) shall 
     be paid from funds available for the health care programs of 
     the participating uniformed services under the jurisdiction 
     of the respective administering Secretaries.''.
       (e) Technical Amendments.--(1) Sections 1111(a), 
     1115(c)(2), 1116(a)(1)(A), and 1116(a)(2)(A) of such title 
     are amended by striking ``Department of Defense retiree 
     health care programs'' and inserting ``uniformed services 
     retiree health care programs''.
       (2) The heading for section 1111 of such title is amended 
     to read as follows:

     ``Sec. 1111. Establishment and purpose of Fund; definitions; 
       authority to enter into agreements''.

       (3) The item relating to section 1111 in the table of 
     sections at the beginning of chapter 56 of such title is 
     amended to read as follows:

``1111. Establishment and purpose of Fund; definitions; authority to 
              enter into agreements.''.
       (f) Effective Date.--The amendments made by this section 
     shall take effect as if included in the enactment of chapter 
     56 of title 10, United States Code, by section 713(a)(1) of 
     the Floyd D. Spence National Defense Authorization Act for 
     Fiscal Year 2001 (as enacted into law by Public Law 106-398; 
     114 Stat. 1654A-179).
       (g) First Year Contributions.--With respect to 
     contributions under section 1116(a) of title 10, United 
     States Code, for the first year that the Department of 
     Defense Medicare-Eligible Retiree Health Care Fund is 
     established under chapter 56 of such title, if the Board of 
     Actuaries is unable to execute its responsibilities with 
     respect to such section, the Secretary of Defense may make 
     contributions under such section using methods and 
     assumptions developed by the Secretary.
                    Subtitle C--Studies and Reports

     SEC. 721. COMPTROLLER GENERAL STUDY OF HEALTH CARE COVERAGE 
                   OF MEMBERS OF THE RESERVE COMPONENTS OF THE 
                   ARMED FORCES AND THE NATIONAL GUARD.

       (a) Requirement for Study.--The Comptroller General shall 
     carry out a study of the needs of members of the reserve 
     components of the Armed Forces and the National Guard and 
     their families for health care benefits. The study shall 
     include the following:
       (1) An analysis of how members of the reserve components of 
     the Armed Forces and the National Guard currently obtain 
     coverage for health care benefits when not on active duty, 
     together with statistics on enrollments in health care 
     benefits plans, including--
       (A) the percentage of such members who are not covered by 
     an employer health benefits plan;
       (B) the percentage of such members who are not covered by 
     an individual health benefits plan; and
       (C) the percentage of such members who are not covered by 
     any health insurance or other health benefits plan.
       (2) An assessment of the disruptions in health benefits 
     coverage that a mobilization of members of the reserve 
     components of the Armed Forces and the National Guard causes 
     for the members and their families.
       (3) An assessment of the cost and effectiveness of various 
     options for preventing or reducing disruptions described in 
     paragraph (2), including--
       (A) providing health care benefits to all members of the 
     reserve components of the Armed Forces and the National Guard 
     and their families through the TRICARE program, the Federal

[[Page 25228]]

     Employees Health Benefits Program, or otherwise;
       (B) revising and extending the program of transitional 
     medical and dental care that is provided under section 1074b 
     of title 10, United States Code, for members of the Armed 
     Forces upon release from active duty served in support of a 
     contingency operation;
       (C) requiring the health benefits plans of such members, 
     including individual health benefits plans and group health 
     benefits plans, to permit such members to elect to resume 
     coverage under such health benefits plans upon release from 
     active duty in support of a contingency operation;
       (D) allowing members of the reserve components of the Armed 
     Forces and the National Guard to participate in TRICARE 
     Standard using various cost-sharing arrangements;
       (E) providing employers of members of the reserve 
     components of the Armed Forces and the National Guard with 
     the option of paying the costs of participation in the 
     TRICARE program for such members and their families using 
     various cost-sharing arrangements;
       (F) providing financial assistance for paying premiums or 
     other subscription charges for continuation of coverage by 
     private sector health insurance or other health benefits 
     plans; and
       (G) any other options that the Comptroller General 
     determines advisable to consider.
       (b) Report.--Not later than May 1, 2002, the Comptroller 
     General shall submit to Congress a report describing the 
     findings of the study conducted under subsection (a).

     SEC. 722. COMPTROLLER GENERAL STUDY OF ADEQUACY AND QUALITY 
                   OF HEALTH CARE PROVIDED TO WOMEN UNDER THE 
                   DEFENSE HEALTH PROGRAM.

       (a) Requirement for Study.--The Comptroller General shall 
     carry out a study of the adequacy and quality of the health 
     care provided to women under chapter 55 of title 10, United 
     States Code.
       (b) Specific Consideration.--The study shall include an 
     intensive review of the availability and quality of 
     reproductive health care services.
       (c) Report.--The Comptroller General shall submit a report 
     on the results of the study to Congress not later than May 1, 
     2002.

     SEC. 723. REPEAL OF OBSOLETE REPORT REQUIREMENT.

       Section 701 of the National Defense Authorization Act for 
     Fiscal Year 2000 (Public Law 106-65; 10 U.S.C. 1074g note) is 
     amended by striking subsection (d).

     SEC. 724. COMPTROLLER GENERAL REPORT ON REQUIREMENT TO 
                   PROVIDE SCREENINGS, PHYSICAL EXAMINATIONS, AND 
                   OTHER CARE FOR CERTAIN MEMBERS.

       (a) Report Required.--The Comptroller General shall prepare 
     a report on the advisability, need, and cost effectiveness of 
     the requirements under section 1074a(d) of title 10, United 
     States Code, that the Secretary of the Army provide medical 
     and dental screenings, physical examinations, and certain 
     dental care for early deploying members of the Selected 
     Reserve. The report shall include any recommendations for 
     changes to such requirements based on the most current 
     information available on the value of periodic physical 
     examinations and any role such examinations play in 
     monitoring force and individual member pre-deployment and 
     post-deployment health status.
       (b) Deadline for Submission.--The report required by 
     subsection (a) shall be provided to the Committees on Armed 
     Services of the Senate and the House of Representatives not 
     later than June 1, 2002.
                       Subtitle D--Other Matters

     SEC. 731. PROHIBITION AGAINST REQUIRING MILITARY RETIREES TO 
                   RECEIVE HEALTH CARE SOLELY THROUGH THE 
                   DEPARTMENT OF DEFENSE.

       (a) Prohibition.--Chapter 55 of title 10, United States 
     Code, is amended by inserting after section 1086a the 
     following new section:

     ``Sec. 1086b. Prohibition against requiring retired members 
       to receive health care solely through the Department of 
       Defense

       ``The Secretary of Defense may not take any action that 
     would require, or have the effect of requiring, a member or 
     former member of the armed forces who is entitled to retired 
     or retainer pay to enroll to receive health care from the 
     Federal Government only through the Department of Defense.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of such chapter is amended by inserting after the 
     item relating to section 1086a the following new item:

``1086b. Prohibition against requiring retired members to receive 
              health care solely through the Department of Defense.''.

     SEC. 732. FEES FOR TRAUMA AND OTHER MEDICAL CARE PROVIDED TO 
                   CIVILIANS.

       (a) Requirement To Implement Procedures.--(1) Chapter 55 of 
     title 10, United States Code, is amended by inserting after 
     section 1079a the following new section:

     ``Sec. 1079b. Procedures for charging fees for care provided 
       to civilians; retention and use of fees collected

       ``(a) Requirement To Implement Procedures.--The Secretary 
     of Defense shall implement procedures under which a military 
     medical treatment facility may charge civilians who are not 
     covered beneficiaries (or their insurers) fees representing 
     the costs, as determined by the Secretary, of trauma and 
     other medical care provided to such civilians.
       ``(b) Use of Fees Collected.--A military medical treatment 
     facility may retain and use the amounts collected under 
     subsection (a) for--
       ``(1) trauma consortium activities;
       ``(2) administrative, operating, and equipment costs; and
       ``(3) readiness training.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by inserting after the item relating to section 
     1079a the following new item:

``1079b. Procedures for charging fees for care provided to civilians; 
              retention and use of fees collected.''.
       (b) Deadline for Implementation.--The Secretary of Defense 
     shall begin to implement the procedures required by section 
     1079b(a) of title 10, United States Code (as added by 
     subsection (a)), not later than one year after the date of 
     the enactment of this Act.

     SEC. 733. ENHANCEMENT OF MEDICAL PRODUCT DEVELOPMENT.

       Section 980 of title 10, United States Code, is amended--
       (1) by inserting ``(a)'' before ``Funds''; and
       (2) by adding at the end the following new subsection:
       ``(b) The Secretary of Defense may waive the prohibition in 
     this section with respect to a specific research project to 
     advance the development of a medical product necessary to the 
     armed forces if the research project may directly benefit the 
     subject and is carried out in accordance with all other 
     applicable laws.''.

     SEC. 734. PILOT PROGRAM PROVIDING FOR DEPARTMENT OF VETERANS 
                   AFFAIRS SUPPORT IN THE PERFORMANCE OF 
                   SEPARATION PHYSICAL EXAMINATIONS.

       (a) Authority.--The Secretary of Defense and the Secretary 
     of Veterans Affairs may jointly carry out a pilot program 
     under which the Secretary of Veterans Affairs may perform the 
     physical examinations required for members of the uniformed 
     services separating from the uniformed services who are in 
     one or more geographic areas designated for the pilot program 
     by the Secretaries.
       (b) Reimbursement.--The Secretary of Defense shall 
     reimburse the Secretary of Veterans Affairs for the cost 
     incurred by the Secretary of Veterans Affairs in performing, 
     under the pilot program, the elements of physical examination 
     that are required by the Secretary concerned in connection 
     with the separation of a member of a uniformed service. 
     Reimbursements shall be paid out of funds available for the 
     performance of separation physical examinations of members of 
     that uniformed service in facilities of the uniformed 
     services.
       (c) Agreement.--(1) If the Secretary of Defense and the 
     Secretary of Veterans Affairs carry out the pilot program 
     authorized by this section, the Secretaries shall enter into 
     an agreement specifying the geographic areas in which the 
     pilot program is carried out and the means for making 
     reimbursement payments under subsection (b).
       (2) The other administering Secretaries shall also enter 
     into the agreement to the extent that the Secretary of 
     Defense determines necessary to apply the pilot program, 
     including the requirement for reimbursement, to the uniformed 
     services not under the jurisdiction of the Secretary of a 
     military department.
       (d) Consultation Requirement.--In developing and carrying 
     out the pilot program, the Secretary of Defense shall consult 
     with the other administering Secretaries.
       (e) Period of Program.--The Secretary of Defense and the 
     Secretary of Veterans Affairs may carry out the pilot program 
     under this section beginning not later than July 1, 2002, and 
     terminating on December 31, 2005.
       (f) Reports.--(1) If the Secretary of Defense and the 
     Secretary of Veterans Affairs carry out the pilot program 
     authorized by this section--
       (A) not later than January 31, 2004, the Secretaries shall 
     jointly submit to Congress an interim report on the conduct 
     of the pilot program; and
       (B) not later than March 1, 2005, the Secretaries shall 
     jointly submit to Congress a final report on the conduct of 
     the pilot program.
       (2) Reports under this subsection shall include the 
     Secretaries' assessment, as of the date of the report, of the 
     efficacy of the performance of separation physical 
     examinations as provided for under the pilot program.
       (g) Definitions.--In this section:
       (1) The term ``administering Secretaries'' has the meaning 
     given that term in section 1072(3) of title 10, United States 
     Code.
       (2) The term ``Secretary concerned'' has the meaning given 
     that term in section 101(5) of title 37, United States Code.

     SEC. 735. MODIFICATION OF PROHIBITION ON REQUIREMENT OF 
                   NONAVAILABILITY STATEMENT OR PREAUTHORIZATION.

       (a) Clarification of Covered Beneficiaries.--Subsection (a) 
     of section 721 of the Floyd D. Spence National Defense 
     Authorization Act for Fiscal Year 2001 (as enacted into law 
     by Public Law 106-398; 114 Stat. 1654A-184) is amended by 
     striking ``covered beneficiary under chapter 55 of title 10, 
     United States Code, who is enrolled in TRICARE Standard,`` 
     and inserting ``covered beneficiary under TRICARE Standard 
     pursuant to chapter 55 of title 10, United States Code,''.
       (b) Repeal of Requirement for Notification Regarding Health 
     Care Received From Another Source.--Subsection (b) of such 
     section is repealed.

[[Page 25229]]

       (c) Waiver Authority.--Such section, as so amended, is 
     further amended by striking subsection (c) and inserting the 
     following new subsections:
       ``(b) Waiver Authority.--The Secretary may waive the 
     prohibition in subsection (a) if--
       ``(1) the Secretary--
       ``(A) demonstrates that significant costs would be avoided 
     by performing specific procedures at the affected military 
     medical treatment facility or facilities;
       ``(B) determines that a specific procedure must be provided 
     at the affected military medical treatment facility or 
     facilities to ensure the proficiency levels of the 
     practitioners at the facility or facilities; or
       ``(C) determines that the lack of nonavailability statement 
     data would significantly interfere with TRICARE contract 
     administration;
       ``(2) the Secretary provides notification of the 
     Secretary's intent to grant a waiver under this subsection to 
     covered beneficiaries who receive care at the military 
     medical treatment facility or facilities that will be 
     affected by the decision to grant a waiver under this 
     subsection;
       ``(3) the Secretary notifies the Committees on Armed 
     Services of the House of Representatives and the Senate of 
     the Secretary's intent to grant a waiver under this 
     subsection, the reason for the waiver, and the date that a 
     nonavailability statement will be required; and
       ``(4) 60 days have elapsed since the date of the 
     notification described in paragraph (3).
       ``(c) Waiver Exception For Maternity Care.--Subsection (b) 
     shall not apply with respect to maternity care.''.
       (d) Effective Date.--(1) Subsection (a) of such section is 
     amended by striking ``under any new contract for the 
     provision of health care services''.
       (2) Subsection (d) of such section is amended by striking 
     ``take effect on October 1, 2001.'' and inserting ``take 
     effect on the earlier of the following:
       ``(1) The date that a new contract entered into by the 
     Secretary to provide health care services under TRICARE 
     Standard takes effect.
       ``(2) The date that is two years after the date of the 
     enactment of the National Defense Authorization Act for 
     Fiscal Year 2002.''.
       (e) Report.--Not later than March 1, 2002, the Secretary of 
     Defense shall submit to the Committees on Armed Services of 
     the House of Representatives and the Senate a report on the 
     Secretary's plans for implementing section 721 of the Floyd 
     D. Spence National Defense Authorization Act for Fiscal Year 
     2001, as amended by this section.

     SEC. 736. TRANSITIONAL HEALTH CARE FOR MEMBERS SEPARATED FROM 
                   ACTIVE DUTY.

       (a) Permanent Authority for Involuntarily Separated Members 
     and Mobilized Reserves.--Subsection (a) of section 1145 of 
     title 10, United States Code, is amended--
       (1) in paragraph (1), by striking ``paragraph (2), a 
     member'' and all that follows through ``of the member),'' and 
     inserting ``paragraph (3), a member of the armed forces who 
     is separated from active duty as described in paragraph 
     (2)'';
       (2) by redesignating paragraph (2) as paragraph (3);
       (3) by inserting after paragraph (1) the following new 
     paragraph (2):
       ``(2) This subsection applies to the following members of 
     the armed forces:
       ``(A) A member who is involuntarily separated from active 
     duty.
       ``(B) A member of a reserve component who is separated from 
     active duty to which called or ordered in support of a 
     contingency operation if the active duty is active duty for a 
     period of more than 30 days.
       ``(C) A member who is separated from active duty for which 
     the member is involuntarily retained under section 12305 of 
     this title in support of a contingency operation.
       ``(D) A member who is separated from active duty served 
     pursuant to a voluntary agreement of the member to remain on 
     active duty for a period of less than one year in support of 
     a contingency operation.''; and
       (4) in paragraph (3), as redesignated by paragraph (2), by 
     striking ``involuntarily'' each place it appears.
       (b) Conforming Amendments.--Such section 1145 is further 
     amended--
       (1) in subsection (c)(1), by striking ``during the period 
     beginning on October 1, 1990, and ending on December 31, 
     2001''; and
       (2) in subsection (e), by striking the first sentence.
       (c) Repeal of Superseded Authority.--(1) Section 1074b of 
     title 10, United States Code, is repealed.
       (2) The table of sections at the beginning of chapter 55 of 
     such title is amended by striking the item relating to 
     section 1074b.
       (d) Transition Provision.--Notwithstanding the repeal of 
     section 1074b of title 10, United States Code, by subsection 
     (c), the provisions of that section, as in effect before the 
     date of the enactment of this Act, shall continue to apply to 
     a member of the Armed Forces who is released from active duty 
     in support of a contingency operation before that date.

     SEC. 737. TWO-YEAR EXTENSION OF HEALTH CARE MANAGEMENT 
                   DEMONSTRATION PROGRAM.

       (a) Extension.--Subsection (d) of section 733 of the Floyd 
     D. Spence National Defense Authorization Act for Fiscal Year 
     2001 (as enacted by Public Law 106-398; 114 Stat. 1654A-191) 
     is amended by striking ``December 31, 2001'' and inserting 
     ``December 31, 2003''.
       (b) Report.--Subsection (e) of that section is amended--
       (1) by striking ``Reports.--'' and inserting ``Report.--''; 
     and
       (2) by striking ``March 15, 2002'' and inserting ``March 
     15, 2004''.

     SEC. 738. JOINT DOD-VA PILOT PROGRAM FOR PROVIDING GRADUATE 
                   MEDICAL EDUCATION AND TRAINING FOR PHYSICIANS.

       (a) In General.--The Secretary of Defense and the Secretary 
     of Veterans Affairs may jointly carry out a pilot program 
     under which graduate medical education and training is 
     provided to military physicians and physician employees of 
     the Department of Defense and the Department of Veterans 
     Affairs through one or more programs carried out in military 
     medical treatment facilities of the Department of Defense and 
     medical centers of the Department of Veterans Affairs.
       (b) Cost-Sharing Agreement.--If the Secretary of Defense 
     and the Secretary of Veterans Affairs carry out a pilot 
     program under subsection (a), the Secretaries shall enter 
     into an agreement for carrying out the pilot program under 
     which means are established for each respective Secretary to 
     assist in paying the costs, with respect to individuals under 
     the jurisdiction of such Secretary, incurred by the other 
     Secretary in providing medical education and training under 
     the pilot program.
       (c) Use of Existing Authorities.--To carry out the pilot 
     program, the Secretary of Defense and the Secretary of 
     Veterans Affairs shall exercise authorities provided to the 
     Secretaries, respectively, under other laws relating to the 
     furnishing or support of medical education and the 
     cooperative use of facilities.
       (d) Period of Program.--If the Secretary of Defense and the 
     Secretary of Veterans Affairs carry out a pilot program under 
     subsection (a), such pilot program shall begin not later than 
     August 1, 2002, and shall terminate on July 31, 2007.
       (e) Reports.--If the Secretary of Defense and the Secretary 
     of Veterans Affairs carry out a pilot program under 
     subsection (a), not later than January 31, 2003, and January 
     31 of each year thereafter through 2008, the Secretaries 
     shall jointly submit to Congress a report on the pilot 
     program. The report shall cover the preceding year and shall 
     include each Secretary's assessment of the efficacy of 
     providing education and training under the program.
  TITLE VIII--ACQUISITION POLICY, ACQUISITION MANAGEMENT, AND RELATED 
                                MATTERS

         Subtitle A--Procurement Management and Administration

Sec. 801. Management of procurement of services.
Sec. 802. Savings goals for procurements of services.
Sec. 803. Competition requirement for purchase of services pursuant to 
              multiple award contracts.
Sec. 804. Reports on maturity of technology at initiation of major 
              defense acquisition programs. 

                  Subtitle B--Use of Preferred Sources

Sec. 811. Applicability of competition requirements to purchases from a 
              required source.
Sec. 812. Extension of mentor-protege program.
Sec. 813. Increase of assistance limitation regarding procurement 
              technical assistance program.

Subtitle C--Amendments to General Contracting Authorities, Procedures, 
                          and Related Matters

Sec. 821. Amendments to conform with administrative changes in 
              acquisition phase and milestone terminology and to make 
              related adjustments in certain requirements applicable at 
              milestone transition points.
Sec. 822. Follow-on production contracts for products developed 
              pursuant to prototype projects.
Sec. 823. One-year extension of program applying simplified procedures 
              to certain commercial items.
Sec. 824. Acquisition workforce qualifications.
Sec. 825. Report on implementation of recommendations of the 
              acquisition 2005 task force.

                       Subtitle D--Other Matters

Sec. 831. Identification of errors made by executive agencies in 
              payments to contractors and recovery of amounts 
              erroneously paid.
Sec. 832. Codification and modification of provision of law known as 
              the ``Berry amendment''.
Sec. 833. Personal services contracts to be performed by individuals or 
              organizations abroad.
Sec. 834. Requirements regarding insensitive munitions.
Sec. 835. Inapplicability of limitation to small purchases of miniature 
              or instrument ball or roller bearings under certain 
              circumstances.
Sec. 836. Temporary emergency procurement authority to facilitate the 
              defense against terrorism or biological or chemical 
              attack.
         Subtitle A--Procurement Management and Administration

     SEC. 801. MANAGEMENT OF PROCUREMENT OF SERVICES.

       (a) Responsibility of Under Secretary of Defense for 
     Acquisition, Technology, and Logistics.--Section 133(b)(2) of 
     title 10, United States Code, is amended by inserting ``of 
     goods and services'' after ``procurement''.

[[Page 25230]]

       (b) Requirement for Management Structure.--(1) Chapter 137 
     of such title is amended by inserting after section 2328 the 
     following new section:

     ``Sec. 2330. Procurement of services: management structure

       ``(a) Requirement for Management Structure.--(1) The 
     Secretary of Defense shall establish and implement a 
     management structure for the procurement of services for the 
     Department of Defense. The management structure shall be 
     comparable to the management structure that applies to the 
     procurement of products by the Department.
       ``(2) The management structure required by paragraph (1) 
     shall--
       ``(A) provide for a designated official in each military 
     department to exercise responsibility for the management of 
     the procurement of services for such department;
       ``(B) provide for a designated official for Defense 
     Agencies and other defense components outside the military 
     departments to exercise responsibility for the management of 
     the procurement of services for such Defense Agencies and 
     components;
       ``(C) include a means by which employees of the 
     departments, Defense Agencies, and components are accountable 
     to such designated officials for carrying out the 
     requirements of subsection (b); and
       ``(D) establish specific dollar thresholds and other 
     criteria for advance approvals of purchases under subsection 
     (b)(1)(C) and delegations of activity under subsection 
     (b)(2).
       ``(b) Contracting Responsibilities of Designated 
     Officials.--(1) The responsibilities of an official 
     designated under subsection (a) shall include, with respect 
     to the procurement of services for the military department or 
     Defense Agencies and components by that official, the 
     following:
       ``(A) Ensuring that the services are procured by means of 
     contracts or task orders that are in the best interests of 
     the Department of Defense and are entered into or issued and 
     managed in compliance with applicable statutes, regulations, 
     directives, and other requirements, regardless of whether the 
     services are procured through a contract or task order of the 
     Department of Defense or through a contract entered into or 
     task order issued by an official of the United States outside 
     the Department of Defense.
       ``(B) Analyzing data collected under section 2330a of this 
     title on contracts that are entered into for the procurement 
     of services.
       ``(C) Approving, in advance, any procurement of services 
     above the thresholds established pursuant to subsection 
     (a)(2)(D) that is to be made through the use of--
       ``(i) a contract or task order that is not a performance-
     based contract or task order; or
       ``(ii) a contract entered into, or a task order issued, by 
     an official of the United States outside the Department of 
     Defense.
       ``(2) The responsibilities of a designated official may be 
     delegated to other employees of the Department of Defense in 
     accordance with the criteria established by the Secretary of 
     Defense.
       ``(c) Definition.--In this section, the term `performance-
     based', with respect to a contract or a task order means that 
     the contract or task order, respectively, includes the use of 
     performance work statements that set forth requirements in 
     clear, specific, and objective terms with measurable 
     outcomes.''.
       (2) Not later than 180 days after the date of the enactment 
     of this Act--
       (A) the Secretary of Defense shall establish and implement 
     the management structure required under section 2330 of title 
     10, United States Code (as added by paragraph (1)); and
       (B) the Under Secretary of Defense for Acquisition, 
     Technology, and Logistics shall issue guidance for officials 
     in the management structure established under such section 
     2330 regarding how to carry out their responsibilities under 
     that section.
       (c) Tracking of Procurement of Services.--Chapter 137 of 
     title 10, United States Code, as amended by subsection (b), 
     is further amended by inserting after section 2330 the 
     following new section:

     ``Sec. 2330a. Procurement of services: tracking of purchases

       ``(a) Data Collection Required.--The Secretary of Defense 
     shall establish a data collection system to provide 
     management information with regard to each purchase of 
     services by a military department or Defense Agency in excess 
     of the simplified acquisition threshold, regardless of 
     whether such a purchase is made in the form of a contract, 
     task order, delivery order, military interdepartmental 
     purchase request, or any other form of interagency agreement.
       ``(b) Data To Be Collected.--The data required to be 
     collected under subsection (a) includes the following:
       ``(1) The services purchased.
       ``(2) The total dollar amount of the purchase.
       ``(3) The form of contracting action used to make the 
     purchase.
       ``(4) Whether the purchase was made through--
       ``(A) a performance-based contract, performance-based task 
     order, or other performance-based arrangement that contains 
     firm fixed prices for the specific tasks to be performed;
       ``(B) any other performance-based contract, performance-
     based task order, or performance-based arrangement; or
       ``(C) any contract, task order, or other arrangement that 
     is not performance based.
       ``(5) In the case of a purchase made through an agency 
     other than the Department of Defense, the agency through 
     which the purchase is made.
       ``(6) The extent of competition provided in making the 
     purchase and whether there was more than one offer.
       ``(7) Whether the purchase was made from--
       ``(A) a small business concern;
       ``(B) a small business concern owned and controlled by 
     socially and economically disadvantaged individuals; or
       ``(C) a small business concern owned and controlled by 
     women.
       ``(c) Compatibility With Data Collection System for 
     Information Technology Purchases.--To the maximum extent 
     practicable, a single data collection system shall be used to 
     collect data under this section and information under section 
     2225 of this title.
       ``(d) Definitions.--In this section:
       ``(1) The term `performance-based', with respect to a 
     contract, task order, or arrangement, means that the 
     contract, task order, or arrangement, respectively, includes 
     the use of performance work statements that set forth 
     contract requirements in clear, specific, and objective terms 
     with measurable outcomes.
       ``(2) The definitions set forth in section 2225(f) of this 
     title for the terms `simplified acquisition threshold', 
     `small business concern', `small business concern owned and 
     controlled by socially and economically disadvantaged 
     individuals', and `small business concern owned and 
     controlled by women' shall apply.''.
       (d) Requirement for Program Review Structure.--(1) Not 
     later than 180 days after the date of the enactment of this 
     Act, the Secretary of Defense shall issue and implement a 
     policy that applies to the procurement of services by the 
     Department of Defense a program review structure that is 
     similar to the one developed for and applied to the 
     procurement of weapon systems by the Department of Defense.
       (2) The program review structure for the procurement of 
     services shall, at a minimum, include the following:
       (A) Standards for determining which procurements should be 
     subject to review by either the senior procurement executive 
     of a military department or the senior procurement executive 
     of the Department of Defense under such section, including 
     criteria based on dollar thresholds, program criticality, or 
     other appropriate measures.
       (B) Appropriate key decision points at which those reviews 
     should take place.
       (C) A description of the specific matters that should be 
     reviewed.
       (e) Comptroller General Review.--Not later than 90 days 
     after the date on which the Secretary issues the policy 
     required by subsection (d) and the Under Secretary of Defense 
     for Acquisition, Technology, and Logistics issues the 
     guidance required by subsection (b)(2), the Comptroller 
     General shall submit to the Committees on Armed Services of 
     the Senate and the House of Representatives an assessment of 
     the compliance with the requirements of this section and the 
     amendments made by this section.
       (f) Definitions.--In this section:
       (1) The term ``senior procurement executive'' means the 
     official designated as the senior procurement executive under 
     section 16(3) of the Office of Federal Procurement Policy Act 
     (41 U.S.C. 414(3)).
       (2) The term ``performance-based'', with respect to a 
     contract or a task order means that the contract or task 
     order, respectively, includes the use of performance work 
     statements that set forth contract requirements in clear, 
     specific, and objective terms with measurable outcomes.
       (g) Clerical Amendments.--(1) The heading for section 2331 
     of title 10, United States Code, is amended to read as 
     follows:

     ``Sec. 2331. Procurement of services: contracts for 
       professional and technical services''.

       (2) The table of sections at the beginning of chapter 137 
     of such title is amended by striking the item relating to 
     section 2331 and inserting the following new items:
``2330. Procurement of services: management structure.
``2330a. Procurement of services: tracking of purchases.
``2331. Procurement of services: contracts for professional and 
              technical services.''.

     SEC. 802. SAVINGS GOALS FOR PROCUREMENTS OF SERVICES.

       (a) Goals.--(1) It shall be an objective of the Department 
     of Defense to achieve savings in expenditures for 
     procurements of services through the use of--
       (A) performance-based services contracting;
       (B) appropriate competition for task orders under services 
     contracts; and
       (C) program review, spending analyses, and improved 
     management of services contracts.
       (2) In furtherance of such objective, the Department of 
     Defense shall have goals to use improved management practices 
     to achieve, over 10 fiscal years, reductions in the total 
     amount that would otherwise be expended by the Department for 
     the procurement of services (other than military 
     construction) in a fiscal year by the amount equal to 10 
     percent of the total amount of the expenditures of the 
     Department for fiscal year 2000 for procurement of services 
     (other than military construction), as follows:
       (A) By fiscal year 2002, a three percent reduction.
       (B) By fiscal year 2003, a four percent reduction.
       (C) By fiscal year 2004, a five percent reduction.
       (D) By fiscal year 2011, a ten percent reduction.
       (b) Annual Report.--Not later than March 1, 2002, and 
     annually thereafter through March 1,

[[Page 25231]]

     2006, the Secretary of Defense shall submit to the 
     congressional defense committees a report on the progress 
     made toward meeting the objective and goals established in 
     subsection (a). Each report shall include, at a minimum, the 
     following information:
       (1) A summary of the steps taken or planned to be taken in 
     the fiscal year of the report to improve the management of 
     procurements of services.
       (2) A summary of the steps planned to be taken in the 
     following fiscal year to improve the management of 
     procurements of services.
       (3) An estimate of the amount that will be expended by the 
     Department of Defense for procurements of services in the 
     fiscal year of the report.
       (4) An estimate of the amount that will be expended by the 
     Department of Defense for procurements of services in the 
     following fiscal year.
       (5) An estimate of the amount of savings that, as a result 
     of improvement of the management practices used by the 
     Department of Defense, will be achieved for the procurement 
     of services by the Department in the fiscal year of the 
     report and in the following fiscal year.

     SEC. 803. COMPETITION REQUIREMENT FOR PURCHASE OF SERVICES 
                   PURSUANT TO MULTIPLE AWARD CONTRACTS.

       (a) Regulations Required.--Not later than 180 days after 
     the date of the enactment of this Act, the Secretary of 
     Defense shall promulgate in the Department of Defense 
     Supplement to the Federal Acquisition Regulation regulations 
     requiring competition in the purchase of services by the 
     Department of Defense pursuant to multiple award contracts.
       (b) Content of Regulations.--(1) The regulations required 
     by subsection (a) shall provide, at a minimum, that each 
     individual purchase of services in excess of $100,000 that is 
     made under a multiple award contract shall be made on a 
     competitive basis unless a contracting officer of the 
     Department of Defense--
       (A) waives the requirement on the basis of a determination 
     that--
       (i) one of the circumstances described in paragraphs (1) 
     through (4) of section 2304c(b) of title 10, United States 
     Code, applies to such individual purchase; or
       (ii) a statute expressly authorizes or requires that the 
     purchase be made from a specified source; and
       (B) justifies the determination in writing.
       (2) For purposes of this subsection, an individual purchase 
     of services is made on a competitive basis only if it is made 
     pursuant to procedures that--
       (A) require fair notice of the intent to make that purchase 
     (including a description of the work to be performed and the 
     basis on which the selection will be made) to be provided to 
     all contractors offering such services under the multiple 
     award contract; and
       (B) afford all contractors responding to the notice a fair 
     opportunity to make an offer and have that offer fairly 
     considered by the official making the purchase.
       (3) Notwithstanding paragraph (2), notice may be provided 
     to fewer than all contractors offering such services under a 
     multiple award contract described in subsection (c)(2)(A) if 
     notice is provided to as many contractors as practicable.
       (4) A purchase may not be made pursuant to a notice that is 
     provided to fewer than all contractors under paragraph (3) 
     unless--
       (A) offers were received from at least three qualified 
     contractors; or
       (B) a contracting officer of the Department of Defense 
     determines in writing that no additional qualified 
     contractors were able to be identified despite reasonable 
     efforts to do so.
       (c) Definitions.--In this section:
       (1) The term ``individual purchase'' means a task order, 
     delivery order, or other purchase.
       (2) The term ``multiple award contract'' means--
       (A) a contract that is entered into by the Administrator of 
     General Services under the multiple award schedule program 
     referred to in section 2302(2)(C) of title 10, United States 
     Code;
       (B) a multiple award task order contract that is entered 
     into under the authority of sections 2304a through 2304d of 
     title 10, United States Code, or sections 303H through 303K 
     of the Federal Property and Administrative Services Act of 
     1949 (41 U.S.C. 253h through 253k); and
       (C) any other indefinite delivery, indefinite quantity 
     contract that is entered into by the head of a Federal agency 
     with two or more sources pursuant to the same solicitation.
       (3) The term ``Defense Agency'' has the meaning given that 
     term in section 101(a)(11) of title 10, United States Code.
       (d) Applicability.--The regulations promulgated by the 
     Secretary pursuant to subsection (a) shall take effect not 
     later than 180 days after the date of the enactment of this 
     Act and shall apply to all individual purchases of services 
     that are made under multiple award contracts on or after the 
     effective date, without regard to whether the multiple award 
     contracts were entered into before, on, or after such 
     effective date.

     SEC. 804. REPORTS ON MATURITY OF TECHNOLOGY AT INITIATION OF 
                   MAJOR DEFENSE ACQUISITION PROGRAMS.

       (a) Reports Required.--Not later than March 1 of each of 
     years 2003 through 2006, the Secretary of Defense shall 
     submit to the Committees on Armed Services of the Senate and 
     the House of Representatives a report on the implementation 
     of the requirement in paragraph 4.7.3.2.2.2 of Department of 
     Defense Instruction 5000.2, as in effect on the date of 
     enactment of this Act, that technology must have been 
     demonstrated in a relevant environment (or, preferably, in an 
     operational environment) to be considered mature enough to 
     use for product development in systems integration.
       (b) Contents of Reports.--Each report required by 
     subsection (a) shall--
       (1) identify each case in which a major defense acquisition 
     program entered system development and demonstration during 
     the preceding calendar year and into which key technology has 
     been incorporated that does not meet the technological 
     maturity requirement described in subsection (a), and provide 
     a justification for why such key technology was incorporated; 
     and
       (2) identify any determination of technological maturity 
     with which the Deputy Under Secretary of Defense for Science 
     and Technology did not concur and explain how the issue has 
     been or will be resolved.
       (c) Major Defense Acquisition Program Defined.--In this 
     section, the term ``major defense acquisition program'' has 
     the meaning given that term in section 139(a)(2) of title 10, 
     United States Code.
                  Subtitle B--Use of Preferred Sources

     SEC. 811. APPLICABILITY OF COMPETITION REQUIREMENTS TO 
                   PURCHASES FROM A REQUIRED SOURCE.

       (a) Conditions for Competition.--(1) Chapter 141 of title 
     10, United States Code, is amended by adding at the end the 
     following:

     ``Sec. 2410n. Products of Federal Prison Industries: 
       procedural requirements

       ``(a) Market Research Before Purchase.--Before purchasing a 
     product listed in the latest edition of the Federal Prison 
     Industries catalog under section 4124(d) of title 18, the 
     Secretary of Defense shall conduct market research to 
     determine whether the Federal Prison Industries product is 
     comparable in price, quality, and time of delivery to 
     products available from the private sector.
       ``(b) Limited Competition Requirement.--If the Secretary 
     determines that a Federal Prison Industries product is not 
     comparable in price, quality, and time of delivery to 
     products available from the private sector, the Secretary 
     shall use competitive procedures for the procurement of the 
     product. In conducting such a competition, the Secretary 
     shall consider a timely offer from Federal Prison Industries 
     for award in accordance with the specifications and 
     evaluation factors specified in the solicitation.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by adding at the end the following:
``2410n. Products of Federal Prison Industries: procedural 
              requirements.''.
       (b) Applicability.--Section 2410n of title 10, United 
     States Code (as added by subsection (a)), shall apply to 
     purchases initiated on or after October 1, 2001.

     SEC. 812. EXTENSION OF MENTOR-PROTEGE PROGRAM.

       Section 831 of the National Defense Authorization Act for 
     Fiscal Year 1991 (Public Law 101-510; 10 U.S.C. 2302 note) is 
     amended--
       (1) in subsection (j)--
       (A) in paragraph (1), by striking ``September 30, 2002'' 
     and inserting ``September 30, 2005''; and
       (B) in paragraph (2), by striking ``September 30, 2005'' 
     and inserting ``September 30, 2008''; and
       (2) in subsection (l)(3), by striking ``2004'' and 
     inserting ``2007''.

     SEC. 813. INCREASE OF ASSISTANCE LIMITATION REGARDING 
                   PROCUREMENT TECHNICAL ASSISTANCE PROGRAM.

       Section 2414(a)(1) of title 10, United States Code, is 
     amended by striking ``$300,000'' and inserting ``$600,000''.
Subtitle C--Amendments to General Contracting Authorities, Procedures, 
                          and Related Matters

     SEC. 821. AMENDMENTS TO CONFORM WITH ADMINISTRATIVE CHANGES 
                   IN ACQUISITION PHASE AND MILESTONE TERMINOLOGY 
                   AND TO MAKE RELATED ADJUSTMENTS IN CERTAIN 
                   REQUIREMENTS APPLICABLE AT MILESTONE TRANSITION 
                   POINTS.

       (a) Acquisition Phase Terminology.--The following 
     provisions of title 10, United States Code, are amended by 
     striking ``engineering and manufacturing development'' each 
     place it appears and inserting ``system development and 
     demonstration'': sections 2366(c) and 2434(a), and 
     subsections (b)(3)(A)(i), (c)(3)(A), and (h)(1) of section 
     2432.
       (b) Milestone Transition Points.--(1) Section 811(c) of the 
     Floyd D. Spence National Defense Authorization Act for Fiscal 
     Year 2001 (as enacted into law by Public Law 106-398; 114 
     Stat. 1654A-211), is amended by striking ``Milestone I 
     approval, Milestone II approval, or Milestone III approval 
     (or the equivalent) of a major automated information system'' 
     and inserting ``approval of a major automated information 
     system at Milestone B or C or for full rate production, or an 
     equivalent approval,''.
       (2) Department of Defense Directive 5000.1, as revised in 
     accordance with subsection (b) of section 811 of such Act, 
     shall be further revised as necessary to comply with 
     subsection (c) of such section, as amended by paragraph (1), 
     within 60 days after the date of the enactment of this Act.
       (c) Adjustments to Requirement for Determination of 
     Quantity for Low-Rate Initial Production.--Section 2400(a) of 
     title 10, United States Code, is amended--
       (1) by striking ``milestone II'' each place it appears in 
     paragraphs (1)(A), (2), (4) and (5) and inserting ``milestone 
     B''; and

[[Page 25232]]

       (2) in paragraph (2), by striking ``engineering and 
     manufacturing development'' and inserting ``system 
     development and demonstration''.
       (d) Adjustments to Requirements for Baseline Description 
     and the Related Limitation.--Section 2435 of title 10, United 
     States Code, is amended--
       (1) in subsection (b), by striking ``engineering and 
     manufacturing development'' and inserting ``system 
     development and demonstration''; and
       (2) in subsection (c)--
       (A) in paragraph (1), by striking ``demonstration and 
     validation'' and inserting ``system development and 
     demonstration'';
       (B) in paragraph (2), by striking ``engineering and 
     manufacturing development'' and inserting ``production and 
     deployment''; and
       (C) in paragraph (3), by striking ``production and 
     deployment'' and inserting ``full rate production''.

     SEC. 822. FOLLOW-ON PRODUCTION CONTRACTS FOR PRODUCTS 
                   DEVELOPED PURSUANT TO PROTOTYPE PROJECTS.

       Section 845 of the National Defense Authorization Act for 
     Fiscal Year 1994 (10 U.S.C. 2371 note) is amended--
       (1) by redesignating subsection (f) as subsection (g); and
       (2) by inserting after subsection (e) the following new 
     subsection (f):
       ``(f) Follow-On Production Contracts.--(1) A transaction 
     entered into under this section for a prototype project that 
     satisfies the conditions set forth in subsection (d)(1)(B)(i) 
     may provide for the award of a follow-on production contract 
     to the participants in the transaction for a specific number 
     of units at specific target prices. The number of units 
     specified in the transaction shall be determined on the basis 
     of a balancing of the level of the investment made in the 
     project by the participants other than the Federal Government 
     with the interest of the Federal Government in having 
     competition among sources in the acquisition of the product 
     or products prototyped under the project.
       ``(2) A follow-on production contract provided for in a 
     transaction under paragraph (1) may be awarded to the 
     participants in the transaction without the use of 
     competitive procedures, notwithstanding the requirements of 
     section 2304 of title 10, United States Code, if--
       ``(A) competitive procedures were used for the selection of 
     parties for participation in the transaction;
       ``(B) the participants in the transaction successfully 
     completed the prototype project provided for in the 
     transaction;
       ``(C) the number of units provided for in the follow-on 
     production contract does not exceed the number of units 
     specified in the transaction for such a follow-on production 
     contract; and
       ``(D) the prices established in the follow-on production 
     contract do not exceed the target prices specified in the 
     transaction for such a follow-on production contract.''.

     SEC. 823. ONE-YEAR EXTENSION OF PROGRAM APPLYING SIMPLIFIED 
                   PROCEDURES TO CERTAIN COMMERCIAL ITEMS.

       Section 4202 of the Clinger-Cohen Act of 1996 (divisions D 
     and E of Public Law 104-106; 110 Stat. 652; 10 U.S.C. 2304 
     note) is amended in subsection (e) by striking ``January 1, 
     2002'' and inserting ``January 1, 2003''.

     SEC. 824. ACQUISITION WORKFORCE QUALIFICATIONS.

       (a) Qualifications.--Section 1724 of title 10, United 
     States Code, is amended--
       (1) in subsection (a)--
       (A) by striking the matter preceding paragraph (1) and 
     inserting the following:
       ``(a) Contracting Officers.--The Secretary of Defense shall 
     require that, in order to qualify to serve in an acquisition 
     position as a contracting officer with authority to award or 
     administer contracts for amounts above the simplified 
     acquisition threshold referred to in section 2304(g) of this 
     title, an employee of the Department of Defense or member of 
     the armed forces (other than the Coast Guard) must, except as 
     provided in subsections (c) and (d)--'';
       (B) in paragraph (1)--
       (i) by striking ``mandatory''; and
       (ii) by striking ``at the grade level'' and all that 
     follows and inserting ``(A) in the case of an employee, 
     serving in the position within the grade of the General 
     Schedule in which the employee is serving, and (B) in the 
     case of a member of the armed forces, in the member's 
     grade;''; and
       (C) in paragraph (3)(A), by inserting a comma after 
     ``business'';
       (2) by striking subsection (b) and inserting the following 
     new subsection:
       ``(b) GS-1102 Series Positions and Similar Military 
     Positions.--(1) The Secretary of Defense shall require that 
     in order to qualify to serve in a position in the Department 
     of Defense that is in the GS-1102 occupational series an 
     employee or potential employee of the Department of Defense 
     meet the requirements set forth in paragraph (3) of 
     subsection (a). The Secretary may not require that in order 
     to serve in such a position an employee or potential employee 
     meet any of the requirements of paragraphs (1) and (2) of 
     that subsection.
       ``(2) The Secretary of Defense shall require that in order 
     for a member of the armed forces to be selected for an 
     occupational specialty within the armed forces that (as 
     determined by the Secretary) is similar to the GS-1102 
     occupational series a member of the armed forces meet the 
     requirements set forth in paragraph (3) of subsection (a). 
     The Secretary may not require that in order to be selected 
     for such an occupational specialty a member meet any of the 
     requirements of paragraphs (1) and (2) of that subsection.''; 
     and
       (3) by striking subsections (c) and (d) inserting the 
     following new subsections:
       ``(c) Exceptions.--The qualification requirements imposed 
     by the Secretary of Defense pursuant to subsections (a) and 
     (b) shall not apply to an employee of the Department of 
     Defense or member of the armed forces who--
       ``(1) served as a contracting officer with authority to 
     award or administer contracts in excess of the simplified 
     acquisition threshold on or before September 30, 2000;
       ``(2) served, on or before September 30, 2000, in a 
     position either as an employee in the GS-1102 series or as a 
     member of the armed forces in a similar occupational 
     specialty;
       ``(3) is in the contingency contracting force; or
       ``(4) is described in subsection (e)(1)(B).
       ``(d) Waiver.--The acquisition career program board 
     concerned may waive any or all of the requirements of 
     subsections (a) and (b) with respect to an employee of the 
     Department of Defense or member of the armed forces if the 
     board certifies that the individual possesses significant 
     potential for advancement to levels of greater responsibility 
     and authority, based on demonstrated job performance and 
     qualifying experience. With respect to each waiver granted 
     under this subsection, the board shall set forth in a written 
     document the rationale for its decision to waive such 
     requirements. Such document shall be submitted to and 
     retained by the Director of Acquisition Education, Training, 
     and Career Development.
       ``(e) Developmental Opportunities.--(1) The Secretary of 
     Defense may--
       ``(A) establish or continue one or more programs for the 
     purpose of recruiting, selecting, appointing, educating, 
     qualifying, and developing the careers of individuals to meet 
     the requirements in subparagraphs (A) and (B) of subsection 
     (a)(3);
       ``(B) appoint individuals to developmental positions in 
     those programs; and
       ``(C) separate from the civil service after a three-year 
     probationary period any individual appointed under this 
     subsection who fails to meet the requirements described in 
     subsection (a)(3).
       ``(2) To qualify for any developmental program described in 
     paragraph (1)(B), an individual shall have--
       ``(A) been awarded a baccalaureate degree, with a grade 
     point average of at least 3.0 (or the equivalent), from an 
     accredited institution of higher education authorized to 
     grant baccalaureate degrees; or
       ``(B) completed at least 24 semester credit hours or the 
     equivalent of study from an accredited institution of higher 
     education in any of the disciplines of accounting, business, 
     finance, law, contracts, purchasing, economics, industrial 
     management, marketing, quantitative methods, or organization 
     and management.
       ``(f) Contingency Contracting Force.--The Secretary shall 
     establish qualification requirements for the contingency 
     contracting force consisting of members of the armed forces 
     whose mission is to deploy in support of contingency 
     operations and other operations of the Department of Defense, 
     including--
       ``(1) completion of at least 24 semester credit hours or 
     the equivalent of study from an accredited institution of 
     higher education or similar educational institution in any of 
     the disciplines of accounting, business, finance, law, 
     contracts, purchasing, economics, industrial management, 
     marketing, quantitative methods, or organization and 
     management; or
       ``(2) passing an examination that demonstrates skills, 
     knowledge, or abilities comparable to that of an individual 
     who has completed at least 24 semester credit hours or the 
     equivalent of study in any of the disciplines described in 
     paragraph (1).''.
       (b) Clerical Amendment.--Section 1732(c)(2) of such title 
     is amended by inserting a comma after ``business''.

     SEC. 825. REPORT ON IMPLEMENTATION OF RECOMMENDATIONS OF THE 
                   ACQUISITION 2005 TASK FORCE.

       (a) Requirement for Report.--Not later than March 1, 2002, 
     the Secretary of Defense shall submit to the Committees on 
     Armed Services of the Senate and the House of Representatives 
     a report on the extent of the implementation of the 
     recommendations set forth in the final report of the 
     Department of Defense Acquisition 2005 Task Force, entitled 
     ``Shaping the Civilian Acquisition Workforce of the Future''.
       (b) Content of Report.--The report shall include the 
     following:
       (1) For each recommendation in the final report that is 
     being implemented or that the Secretary plans to implement--
       (A) a summary of all actions that have been taken to 
     implement the recommendation; and
       (B) a schedule, with specific milestones, for completing 
     the implementation of the recommendation.
       (2) For each recommendation in the final report that the 
     Secretary does not plan to implement--
       (A) the reasons for the decision not to implement the 
     recommendation; and
       (B) a summary of any alternative actions the Secretary 
     plans to take to address the purposes underlying the 
     recommendation.
       (3) A summary of any additional actions the Secretary plans 
     to take to address concerns raised in the final report about 
     the size and structure of the acquisition workforce of the 
     Department of Defense.
       (c) Comptroller General Review.--Not later than 60 days 
     after the date on which the Secretary submits the report 
     required by subsection (a), the Comptroller General shall--

[[Page 25233]]

       (1) review the report; and
       (2) submit to the committees referred to in subsection (a) 
     the Comptroller General's assessment of the extent to which 
     the report--
       (A) complies with the requirements of this section; and
       (B) addresses the concerns raised in the final report about 
     the size and structure of the acquisition workforce of the 
     Department of Defense.
                       Subtitle D--Other Matters

     SEC. 831. IDENTIFICATION OF ERRORS MADE BY EXECUTIVE AGENCIES 
                   IN PAYMENTS TO CONTRACTORS AND RECOVERY OF 
                   AMOUNTS ERRONEOUSLY PAID.

       (a) Program Required.--(1) Chapter 35 of title 31, United 
     States Code, is amended by adding at the end the following 
     new subchapter:

                    ``SUBCHAPTER VI--RECOVERY AUDITS

     ``Sec. 3561. Identification of errors made by executive 
       agencies in payments to contractors and recovery of amounts 
       erroneously paid

       ``(a) Program Required.--The head of each executive agency 
     that enters into contracts with a total value in excess of 
     $500,000,000 in a fiscal year shall carry out a cost-
     effective program for identifying any errors made in paying 
     the contractors and for recovering any amounts erroneously 
     paid to the contractors.
       ``(b) Recovery Audits and Activities.--A program of an 
     executive agency under subsection (a) shall include recovery 
     audits and recovery activities. The head of the executive 
     agency shall determine, in accordance with guidance provided 
     under subsection (c), the classes of contracts to which 
     recovery audits and recovery activities are appropriately 
     applied.
       ``(c) OMB Guidance.--The Director of the Office of 
     Management and Budget shall issue guidance for the conduct of 
     programs under subsection (a). The guidance shall include the 
     following:
       ``(1) Definitions of the terms `recovery audit' and 
     `recovery activity' for the purposes of the programs.
       ``(2) The classes of contracts to which recovery audits and 
     recovery activities are appropriately applied under the 
     programs.
       ``(3) Protections for the confidentiality of--
       ``(A) sensitive financial information that has not been 
     released for use by the general public; and
       ``(B) information that could be used to identify a person.
       ``(4) Policies and procedures for ensuring that the 
     implementation of the programs does not result in duplicative 
     audits of contractor records.
       ``(5) Policies regarding the types of contracts executive 
     agencies may use for the procurement of recovery services, 
     including guidance for use, in appropriate circumstances, of 
     a contingency contract pursuant to which the head of an 
     executive agency may pay a contractor an amount equal to a 
     percentage of the total amount collected for the United 
     States pursuant to that contract.
       ``(6) Protections for a contractor's records and facilities 
     through restrictions on the authority of a contractor under a 
     contract for the procurement of recovery services for an 
     executive agency--
       ``(A) to require the production of any record or 
     information by any person other than an officer, employee, or 
     agent of the executive agency;
       ``(B) to establish, or otherwise have, a physical presence 
     on the property or premises of any private sector entity for 
     the purposes of performing the contract; or
       ``(C) to act as agents for the Government in the recovery 
     of funds erroneously paid to contractors.
       ``(7) Policies for the appropriate types of management 
     improvement programs authorized by section 3564 of this title 
     that executive agencies may carry out to address overpayment 
     problems and the recovery of overpayments.

     ``Sec. 3562. Disposition of recovered funds

       ``(a) Availability of Funds for Recovery Audits and 
     Activities Program.--Funds collected under a program carried 
     out by an executive agency under section 3561 of this title 
     shall be available to the executive agency for the following 
     purposes:
       ``(1) To reimburse the actual expenses incurred by the 
     executive agency in the administration of the program.
       ``(2) To pay contractors for services under the program in 
     accordance with the guidance issued under section 3561(c)(5) 
     of this title.
       ``(b) Funds Not Used for Program.--Any amounts erroneously 
     paid by an executive agency that are recovered under such a 
     program of an executive agency and are not used to reimburse 
     expenses or pay contractors under subsection (a)--
       ``(1) shall be credited to the appropriations from which 
     the erroneous payments were made, shall be merged with other 
     amounts in those appropriations, and shall be available for 
     the purposes and period for which such appropriations are 
     available; or
       ``(2) if no such appropriation remains available, shall be 
     deposited in the Treasury as miscellaneous receipts.
       ``(c) Priority of Other Authorized Dispositions.--
     Notwithstanding subsection (b), the authority under such 
     subsection may not be exercised to use, credit, or deposit 
     funds collected under such a program as provided in that 
     subsection to the extent that any other provision of law 
     requires or authorizes the crediting of such funds to a 
     nonappropriated fund instrumentality, revolving fund, 
     working-capital fund, trust fund, or other fund or account.

     ``Sec. 3563. Sources of recovery services

       ``(a) Consideration of Available Recovery Resources.--(1) 
     In carrying out a program under section 3561 of this title, 
     the head of an executive agency shall consider all resources 
     available to that official to carry out the program.
       ``(2) The resources considered by the head of an executive 
     agency for carrying out the program shall include the 
     resources available to the executive agency for such purpose 
     from the following sources:
       ``(A) The executive agency.
       ``(B) Other departments and agencies of the United States.
       ``(C) Private sector sources.
       ``(b) Compliance With Applicable Law and Regulations.--
     Before entering into a contract with a private sector source 
     for the performance of services under a program of the 
     executive agency carried out under section 3561 of this 
     title, the head of an executive agency shall comply with--
       ``(1) any otherwise applicable provisions of Office of 
     Management and Budget Circular A-76; and
       ``(2) any other applicable provision of law or regulation 
     with respect to the selection between employees of the United 
     States and private sector sources for the performance of 
     services.

     ``Sec. 3564. Management improvement programs

       ``In accordance with guidance provided by the Director of 
     the Office of Management and Budget under section 3561 of 
     this title, the head of an executive agency required to carry 
     out a program under such section 3561 may carry out a program 
     for improving management processes within the executive 
     agency--
       ``(1) to address problems that contribute directly to the 
     occurrence of errors in the paying of contractors of the 
     executive agency; or
       ``(2) to improve the recovery of overpayments due to the 
     agency.

     ``Sec. 3565. Relationship to authority of inspectors general

       ``Nothing in this subchapter shall be construed as 
     impairing the authority of an Inspector General under the 
     Inspector General Act of 1978 or any other provision of law.

     ``Sec. 3566. Privacy protections

       ``Any nongovernmental entity that, in the course of 
     recovery auditing or recovery activity under this subchapter, 
     obtains information that identifies an individual or with 
     respect to which there is a reasonable basis to believe that 
     the information can be used to identify an individual, may 
     not disclose the information for any purpose other than such 
     recovery auditing or recovery activity and governmental 
     oversight of such activity, unless disclosure for that other 
     purpose is authorized by the individual to the executive 
     agency that contracted for the performance of the recovery 
     auditing or recovery activity.

     ``Sec. 3567. Definition of executive agency

       ``Notwithstanding section 102 of this title, in this 
     subchapter, the term `executive agency' has the meaning given 
     that term in section 4(1) of the Office of Federal 
     Procurement Policy Act (41 U.S.C. 403(1)).''.
       (2) The table of sections at the beginning of chapter 35 of 
     such title is amended by adding at the end the following:

                    ``SUBCHAPTER VI--RECOVERY AUDITS

``3561. Identification of errors made by executive agencies in payments 
              to contractors and recovery of amounts erroneously paid.
``3562. Disposition of recovered funds.
``3563. Sources of recovery services.
``3564. Management improvement programs.
``3565. Relationship to authority of inspectors general.
``3566. Privacy protections.
``3567. Definition of executive agency.''.
       (b) Reports.--(1) Not later than 30 months after the date 
     of the enactment of this Act, and annually for each of the 
     first two years following the year of the first report, the 
     Director of the Office of Management and Budget shall submit 
     to the Committee on Government Reform of the House of 
     Representatives and the Committee on Governmental Affairs of 
     the Senate, a report on the implementation of subchapter VI 
     of chapter 35 of title 31, United States Code (as added by 
     subsection (a)).
       (2) Each report shall include--
       (A) a general description and evaluation of the steps taken 
     by the heads of executive agencies to carry out the programs 
     under such subchapter, including any management improvement 
     programs carried out under section 3564 of such title 31;
       (B) the costs incurred by executive agencies to carry out 
     the programs under such subchapter; and
       (C) the amounts recovered under the programs under such 
     subchapter.
       (c) Conforming Amendment.--Section 3501 of such title is 
     amended by inserting ``and subchapter VI'' after ``section 
     3513''.

     SEC. 832. CODIFICATION AND MODIFICATION OF PROVISION OF LAW 
                   KNOWN AS THE ``BERRY AMENDMENT''.

       (a) Buy American Requirements.--(1) Chapter 148 of title 
     10, United States Code, is amended by inserting after section 
     2533 the following new section:

     ``Sec. 2533a. Requirement to buy certain articles from 
       American sources; exceptions

       ``(a) Requirement.--Except as provided in subsections (c) 
     through (h), funds appropriated or otherwise available to the 
     Department of Defense may not be used for the procurement of 
     an item described in subsection (b) if the item is not grown, 
     reprocessed, reused, or produced in the United States.

[[Page 25234]]

       ``(b) Covered Items.--An item referred to in subsection (a) 
     is any of the following:
       ``(1) An article or item of--
       ``(A) food;
       ``(B) clothing;
       ``(C) tents, tarpaulins, or covers;
       ``(D) cotton and other natural fiber products, woven silk 
     or woven silk blends, spun silk yarn for cartridge cloth, 
     synthetic fabric or coated synthetic fabric (including all 
     textile fibers and yarns that are for use in such fabrics), 
     canvas products, or wool (whether in the form of fiber or 
     yarn or contained in fabrics, materials, or manufactured 
     articles); or
       ``(E) any item of individual equipment manufactured from or 
     containing such fibers, yarns, fabrics, or materials.
       ``(2) Specialty metals, including stainless steel flatware.
       ``(3) Hand or measuring tools.
       ``(c) Availability Exception.--Subsection (a) does not 
     apply to the extent that the Secretary of Defense or the 
     Secretary of the military department concerned determines 
     that satisfactory quality and sufficient quantity of any such 
     article or item described in subsection (b)(1) or specialty 
     metals (including stainless steel flatware) grown, 
     reprocessed, reused, or produced in the United States cannot 
     be procured as and when needed at United States market 
     prices.
       ``(d) Exception for Certain Procurements Outside the United 
     States.--Subsection (a) does not apply to the following:
       ``(1) Procurements outside the United States in support of 
     combat operations.
       ``(2) Procurements by vessels in foreign waters.
       ``(3) Emergency procurements or procurements of perishable 
     foods by an establishment located outside the United States 
     for the personnel attached to such establishment.
       ``(e) Exception for Specialty Metals and Chemical Warfare 
     Protective Clothing.--Subsection (a) does not preclude the 
     procurement of specialty metals or chemical warfare 
     protective clothing produced outside the United States if--
       ``(1) such procurement is necessary--
       ``(A) to comply with agreements with foreign governments 
     requiring the United States to purchase supplies from foreign 
     sources for the purposes of offsetting sales made by the 
     United States Government or United States firms under 
     approved programs serving defense requirements; or
       ``(B) in furtherance of agreements with foreign governments 
     in which both such governments agree to remove barriers to 
     purchases of supplies produced in the other country or 
     services performed by sources of the other country; and
       ``(2) any such agreement with a foreign government 
     complies, where applicable, with the requirements of section 
     36 of the Arms Export Control Act (22 U.S.C. 2776) and with 
     section 2457 of this title.
       ``(f) Exception for Certain Foods.--Subsection (a) does not 
     preclude the procurement of foods manufactured or processed 
     in the United States.
       ``(g) Exception for Commissaries, Exchanges, and Other 
     Nonappropriated Fund Instrumentalities.--Subsection (a) does 
     not apply to items purchased for resale purposes in 
     commissaries, exchanges, or nonappropriated fund 
     instrumentalities operated by the Department of Defense.
       ``(h) Exception for Small Purchases.--Subsection (a) does 
     not apply to purchases for amounts not greater than the 
     simplified acquisition threshold referred to in section 
     2304(g) of this title.
       ``(i) Applicability to Contracts and Subcontracts for 
     Procurement of Commercial Items.--This section is applicable 
     to contracts and subcontracts for the procurement of 
     commercial items notwithstanding section 34 of the Office of 
     Federal Procurement Policy Act (41 U.S.C. 430).
       ``(j) Geographic Coverage.--In this section, the term 
     `United States' includes the possessions of the United 
     States.''.
       (2) The table of sections at the beginning of subchapter V 
     of such chapter is amended by inserting after the item 
     relating to section 2533 the following new item:

``2533a. Requirement to buy certain articles from American sources; 
              exceptions.''.

       (b) Repeal of Source Provisions.--The following provisions 
     of law are repealed:
       (1) Section 9005 of the Department of Defense 
     Appropriations Act, 1993 (Public Law 102-396; 10 U.S.C. 2241 
     note).
       (2) Section 8109 of the Department of Defense 
     Appropriations Act, 1997 (as contained in section 101(b) of 
     Public Law 104-208; 110 Stat. 3009-111; 10 U.S.C. 2241 note).

     SEC. 833. PERSONAL SERVICES CONTRACTS TO BE PERFORMED BY 
                   INDIVIDUALS OR ORGANIZATIONS ABROAD.

       Section 2 of the State Department Basic Authorities Act of 
     1956 (22 U.S.C. 2669) is amended by adding at the end the 
     following:
       ``(n) exercise the authority provided in subsection (c), 
     upon the request of the Secretary of Defense or the head of 
     any other department or agency of the United States, to enter 
     into personal service contracts with individuals to perform 
     services in support of the Department of Defense or such 
     other department or agency, as the case may be.''.

     SEC. 834. REQUIREMENTS REGARDING INSENSITIVE MUNITIONS.

       (a) Requirement To Ensure Safety.--(1) Chapter 141 of title 
     10, United States Code, is amended by inserting after section 
     2388 the following new section:

     ``Sec. 2389. Ensuring safety regarding insensitive munitions

       ``The Secretary of Defense shall ensure, to the extent 
     practicable, that insensitive munitions under development or 
     procurement are safe throughout development and fielding when 
     subject to unplanned stimuli.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by inserting after the item relating to section 
     2388 the following new item:

``2389. Ensuring safety regarding insensitive munitions.''.

       (b) Report Requirement.--At the same time that the budgets 
     for fiscal years 2003 through 2005 are submitted to Congress 
     under section 1105(a) of title 31, United States Code, the 
     Secretary of Defense shall submit to the Committees on Armed 
     Services of the Senate and the House of Representatives a 
     report on insensitive munitions. The reports shall include 
     the following:
       (1) The number of waivers granted pursuant to Department of 
     Defense Regulation 5000.2-R (June 2001) during the preceding 
     fiscal year, together with a discussion of the justifications 
     for the waivers.
       (2) Identification of the funding proposed for insensitive 
     munitions in the budget with which the report is submitted, 
     together with an explanation of the proposed funding.

     SEC. 835. INAPPLICABILITY OF LIMITATION TO SMALL PURCHASES OF 
                   MINIATURE OR INSTRUMENT BALL OR ROLLER BEARINGS 
                   UNDER CERTAIN CIRCUMSTANCES.

       (a) In General.--Section 2534 of title 10, United States 
     Code, is amended by adding at the end the following new 
     subsection:
       ``(j) Inapplicability to Certain Contracts To Purchase Ball 
     Bearings or Roller Bearings.--(1) This section does not apply 
     with respect to a contract or subcontract to purchase items 
     described in subsection (a)(5) (relating to ball bearings and 
     roller bearings) for which--
       ``(A) the amount of the purchase does not exceed $2,500;
       ``(B) the precision level of the ball or roller bearings to 
     be procured under the contract or subcontract is rated lower 
     than the rating known as Annual Bearing Engineering Committee 
     (ABEC) 5 or Roller Bearing Engineering Committee (RBEC) 5, or 
     an equivalent of such rating;
       ``(C) at least two manufacturers in the national technology 
     and industrial base that are capable of producing the ball or 
     roller bearings have not responded to a request for quotation 
     issued by the contracting activity for that contract or 
     subcontract; and
       ``(D) no bearing to be procured under the contract or 
     subcontract has a basic outside diameter (exclusive of flange 
     diameters) in excess of 30 millimeters.
       ``(2) Paragraph (1) does not apply to a purchase if such 
     purchase would result in the total amount of purchases of 
     ball bearings and roller bearings to satisfy requirements 
     under Department of Defense contracts, using the authority 
     provided in such paragraph, to exceed $200,000 during the 
     fiscal year of such purchase.''.
       (b) Applicability.--Subsection (j) of such section 2534 (as 
     added by subsection (a)) shall apply with respect to a 
     contract or subcontract to purchase ball bearings or roller 
     bearings entered into after the date of the enactment of this 
     Act.

     SEC. 836. TEMPORARY EMERGENCY PROCUREMENT AUTHORITY TO 
                   FACILITATE THE DEFENSE AGAINST TERRORISM OR 
                   BIOLOGICAL OR CHEMICAL ATTACK.

       (a) Increased Flexibility for Use of Streamlined 
     Procedures.--The following special authorities apply to 
     procurements of property and services by or for the 
     Department of Defense for which funds are obligated during 
     fiscal year 2002 and 2003:
       (1) Micropurchase and simplified acquisition thresholds.--
     For any procurement of property or services for use (as 
     determined by the Secretary of Defense) to facilitate the 
     defense against terrorism or biological or chemical attack 
     against the United States--
       (A) the amount specified in subsections (c), (d), and (f) 
     of section 32 of the Office of Federal Procurement Policy Act 
     (41 U.S.C. 428) shall be deemed to be $15,000 in the 
     administration of that section with respect to such 
     procurement; and
       (B) the term ``simplified acquisition threshold'' means, in 
     the case of any contract to be awarded and performed, or 
     purchase to be made--
       (i) inside the United States in support of a contingency 
     operation, $250,000; or
       (ii) outside the United States in support of a contingency 
     operation, $500,000.
       (2) Commercial item treatment for procurements of 
     biotechnology.--For any procurement of biotechnology property 
     or biotechnology services for use (as determined by the 
     Secretary of Defense) to facilitate the defense against 
     terrorism or biological attack against the United States, the 
     procurement shall be treated as being a procurement of 
     commercial items.
       (b) Recommendations for Additional Emergency Procurement 
     Authority To Support Anti-Terrorism Operations.--Not later 
     than March 1, 2002, the Secretary of Defense shall submit to 
     the Committees on Armed Services of the Senate and the House 
     of Representatives a report containing the Secretary's 
     recommendations for additional emergency procurement 
     authority that the Secretary (subject

[[Page 25235]]

     to the direction of the President) determines necessary to 
     support operations carried out to combat terrorism.
       (c) Termination of Authority.--No contract may be entered 
     into pursuant to the authority provided in subsection (a) 
     after September 30, 2003.
      TITLE IX--DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT

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

Sec. 901. Deputy Under Secretary of Defense for Personnel and 
              Readiness.
Sec. 902. Sense of Congress on functions of new Office of Force 
              Transformation in the Office of the Secretary of Defense.
Sec. 903. Suspension of reorganization of engineering and technical 
              authority policy within the Naval Sea Systems Command 
              pending report to congressional committees.

                      Subtitle B--Space Activities

Sec. 911. Joint management of space programs.
Sec. 912. Requirement to establish in the Air Force an officer career 
              field for space.
Sec. 913. Secretary of Defense report on space activities.
Sec. 914. Comptroller General assessment of implementation of 
              recommendations of Space Commission.
Sec. 915. Sense of Congress regarding officers recommended to be 
              appointed to serve as Commander of United States Space 
              Command.

                          Subtitle C--Reports

Sec. 921. Revised requirement for Chairman of the Joint Chiefs of Staff 
              to advise Secretary of Defense on the assignment of roles 
              and missions to the Armed Forces.
Sec. 922. Revised requirements for content of annual report on joint 
              warfighting experimentation.
Sec. 923. Repeal of requirement for one of three remaining required 
              reports on activities of Joint Requirements Oversight 
              Council.
Sec. 924. Revised joint report on establishment of national 
              collaborative information analysis capability.

                       Subtitle D--Other Matters

Sec. 931. Conforming amendments relating to change of name of Military 
              Airlift Command to Air Mobility Command.
Sec. 932. Organizational realignment for Navy Director for 
              Expeditionary Warfare.

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

     SEC. 901. DEPUTY UNDER SECRETARY OF DEFENSE FOR PERSONNEL AND 
                   READINESS.

       (a) Establishment of Position.--(1) Chapter 4 of title 10, 
     United States Code, is amended by inserting after section 136 
     the following new section:

     ``Sec. 136a. Deputy Under Secretary of Defense for Personnel 
       and Readiness

       ``(a) There is a Deputy Under Secretary of Defense for 
     Personnel and Readiness, appointed from civilian life by the 
     President, by and with the advice and consent of the Senate.
       ``(b) The Deputy Under Secretary of Defense for Personnel 
     and Readiness shall assist the Under Secretary of Defense for 
     Personnel and Readiness in the performance of the duties of 
     that position. The Deputy Under Secretary of Defense for 
     Personnel and Readiness shall act for, and exercise the 
     powers of, the Under Secretary when the Under Secretary is 
     absent or disabled.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by inserting after the item relating to section 
     136 the following new item:

``136a. Deputy Under Secretary of Defense for Personnel and 
              Readiness.''.

       (b) Executive Level IV.--Section 5315 of title 5, United 
     States Code, is amended by inserting after ``Deputy Under 
     Secretary of Defense for Policy.'' the following:
       ``Deputy Under Secretary of Defense for Personnel and 
     Readiness.''.
       (c) Reduction in Number of Assistant Secretaries of 
     Defense.--(1) Section 138(a) of title 10, United States Code, 
     is amended by striking ``nine'' and inserting ``eight''.
       (2) Section 5315 of title 5, United States Code, is amended 
     by striking ``(9)'' after ``Assistant Secretaries of 
     Defense'' and inserting ``(8)''.
       (d) Effective Date.--The amendments made by subsection (c) 
     shall take effect on the date on which a person is first 
     appointed as Deputy Under Secretary of Defense for Personnel 
     and Readiness.

     SEC. 902. SENSE OF CONGRESS ON FUNCTIONS OF NEW OFFICE OF 
                   FORCE TRANSFORMATION IN THE OFFICE OF THE 
                   SECRETARY OF DEFENSE.

       (a) Findings.--Congress finds the following:
       (1) The Armed Forces should give careful consideration to 
     implementing transformation to meet operational challenges 
     and exploit opportunities resulting from changes in the 
     threat environment and the emergence of new technologies.
       (2) The Department of Defense 2001 Quadrennial Defense 
     Review Report, issued by the Secretary of Defense on 
     September 30, 2001, states that `The purpose of 
     transformation is to maintain or improve U.S. military 
     preeminence in the face of potential disproportionate 
     discontinuous changes in the strategic environment. 
     Transformation must therefore be focused on emerging 
     strategic and operational challenges and the opportunities 
     created by these challenges.''.
       (3) That report further states that ``To support the 
     transformation effort, and to foster innovation and 
     experimentation, the Department will establish a new office 
     reporting directly to the Secretary and Deputy Secretary of 
     Defense.''.
       (b) Sense of Congress on Functions of Office of Force 
     Transformation.--It is the sense of Congress that the 
     Director of the Office of Force Transformation within the 
     Office of the Secretary of Defense should advise the 
     Secretary on--
       (1) development of force transformation strategies to 
     ensure that the military of the future is prepared to 
     dissuade potential military competitors and, if that fails, 
     to fight and win decisively across the spectrum of future 
     conflict;
       (2) ensuring a continuous and broadly focused 
     transformation process;
       (3) service and joint acquisition and experimentation 
     efforts, funding for experimentation efforts, promising 
     operational concepts and technologies, and other 
     transformation activities, as appropriate; and
       (4) development of service and joint operational concepts, 
     transformation implementation strategies, and risk management 
     strategies.
       (c) Sense of Congress on Funding.--It is the sense of 
     Congress that the Secretary of Defense should consider 
     providing funding adequate for sponsoring selective 
     prototyping efforts, war games, and studies and analyses and 
     for appropriate staffing, as recommended by the Director of 
     the Office of Force Transformation referred to in subsection 
     (b).

     SEC. 903. SUSPENSION OF REORGANIZATION OF ENGINEERING AND 
                   TECHNICAL AUTHORITY POLICY WITHIN THE NAVAL SEA 
                   SYSTEMS COMMAND PENDING REPORT TO CONGRESSIONAL 
                   COMMITTEES.

       (a) Suspension of Reorganization.--During the period 
     specified in subsection (b), the Secretary of the Navy may 
     not grant final approval for any reorganization in 
     engineering or technical authority policy for the Naval Sea 
     Systems Command or any of the subsidiary activities of that 
     command.
       (b) Report.--Subsection (a) applies during the period 
     beginning on the date of the enactment of this Act and ending 
     45 days after the date on which the Secretary submits to the 
     congressional defense committees a report that sets forth in 
     detail the Navy's plans and justification for the 
     reorganization of engineering and technical authority policy 
     within the Naval Sea Systems Command.
                      Subtitle B--Space Activities

     SEC. 911. JOINT MANAGEMENT OF SPACE PROGRAMS.

       (a) In General.--Part IV of subtitle A of title 10, United 
     States Code, is amended by inserting after chapter 134 the 
     following new chapter:

                     ``CHAPTER 135--SPACE PROGRAMS

``Sec.
``2271. Management of space programs: joint program offices and officer 
              management programs.

     ``Sec. 2271. Management of space programs: joint program 
       offices and officer management programs

       ``(a) Joint Program Offices.--The Secretary of Defense 
     shall take appropriate actions to ensure, to the maximum 
     extent practicable, that space development and acquisition 
     programs of the Department of Defense are carried out through 
     joint program offices.
       ``(b) Officer Mangement Programs.--(1) The Secretary of 
     Defense shall take appropriate actions to ensure, to the 
     maximum extent practicable, that--
       ``(A) Army, Navy, and Marine Corps officers, as well as Air 
     Force officers, are assigned to the space development and 
     acquisition programs of the Department of Defense; and
       ``(B) Army, Navy, and Marine Corps officers, as well as Air 
     Force officers, are eligible, on the basis of qualification, 
     to hold leadership positions within the joint program offices 
     referred to in subsection (a).
       ``(2) The Secretary of Defense shall designate those 
     positions in the Office of the National Security Space 
     Architect of the Department of Defense (or any successor 
     office ) that qualify as joint duty assignment positions for 
     purposes of chapter 38 of this title.''.
       (b) Clerical Amendment.--The tables of chapters at the 
     beginning of such subtitle and the beginning of part IV of 
     such subtitle are amended by inserting after the item 
     relating to chapter 134 the following new item:

``135. Space Programs.......................................2271''.....

     SEC. 912. REQUIREMENT TO ESTABLISH IN THE AIR FORCE AN 
                   OFFICER CAREER FIELD FOR SPACE.

       (a) In General.--Chapter 807 of title 10, United States 
     Code, is amended by adding at the end the following new 
     section:

     ``Sec. 8084. Officer career field for space

       ``The Secretary of the Air Force shall establish and 
     implement policies and procedures to develop a career field 
     for officers in the Air Force with technical competence in 
     space-related matters to have the capabilty to--
       ``(1) develop space doctrine and concepts of space 
     operations;
       ``(2) develop space systems; and
       ``(3) operate space systems.''.

[[Page 25236]]

       (b) Clerical Amendment.--The table of sections at the 
     beginning of such chapter is amended by adding at the end the 
     following new item:

``8084. Officer career field for space.''.

     SEC. 913. SECRETARY OF DEFENSE REPORT ON SPACE ACTIVITIES.

       (a) Report.--(1) Not later than March 15, 2002, the 
     Secretary of Defense shall submit to the Committee on Armed 
     Services of the Senate and the Committee on Armed Services of 
     the House of Representatives a report on problems in the 
     management and organization of the Department of Defense for 
     space activities that were identified in the report of the 
     Space Commission, including a description of the actions 
     taken by the Secretary to address those problems.
       (2) For purposes of paragraph (1), the term ``report of the 
     Space Commission'' means the report of the Commission To 
     Assess United States National Security Space Management and 
     Organization, dated January 11, 2001, and submitted to 
     Congress under section 1623 of the National Defense 
     Authorization Act for Fiscal Year 2000 (Public Law 106-65; 
     113 Stat. 815).
       (b) Matters To Be Included.--The report of the Secretary of 
     Defense under subsection (a) shall include a description of, 
     and rationale for, each of the following:
       (1) Actions taken by the Secretary of Defense to realign 
     management authorities and responsibilities for space 
     programs of the Department of Defense.
       (2) Steps taken to--
       (A) establish a career field for officers in the Air Force 
     with technical competence in space-related matters, in 
     accordance with section 8084 of title 10, United States Code, 
     as added by section 912;
       (B) ensure that officers in that career field are treated 
     fairly and objectively within the overall Air Force officer 
     personnel system; and
       (C) ensure that the primary responsibility for management 
     of that career field is assigned appropriately.
       (3) Other steps taken within the Air Force to ensure proper 
     priority for development of space systems.
       (4) Steps taken to ensure that the interests of the Army, 
     the Navy, and the Marine Corps in development and acquisition 
     of space systems, and in the operations of space systems, are 
     protected.
       (5) Steps taken by the Office of the Secretary of Defense 
     and the military departments to ensure that the Army, Navy, 
     and Marine Corps continue to develop military and civilian 
     personnel with the required expertise in space system 
     development, acquisition, management, and operation.
       (6) Steps taken to ensure adequate oversight by the Office 
     of the Secretary of Defense of the actions of the Under 
     Secretary of the Air Force as the acquisition executive for 
     Department of Defense space programs.
       (7) Steps taken to improve oversight of the level of 
     funding provided for space programs and the level of 
     personnel resources provided for space programs.

     SEC. 914. COMPTROLLER GENERAL ASSESSMENT OF IMPLEMENTATION OF 
                   RECOMMENDATIONS OF SPACE COMMISSION.

       (a) Assessment.--(1) The Comptroller General shall carry 
     out an assessment through February 15, 2003, of the actions 
     taken by the Secretary of Defense in implementing the 
     recommendations in the report of the Space Commission that 
     are applicable to the Department of Defense.
       (2) For purposes of paragraph (1), the term ``report of the 
     Space Commission'' means the report of the Commission To 
     Assess United States National Security Space Management and 
     Organization, dated January 11, 2001, and submitted to 
     Congress under section 1623 of the National Defense 
     Authorization Act for Fiscal Year 2000 (Public Law 106-65; 
     113 Stat. 815).
       (b) Reports.--Not later than February 15 of each of 2002 
     and 2003, the Comptroller General shall submit to the 
     Committee on Armed Services of the Senate and the Committee 
     on Armed Services of the House of Representatives a report on 
     the assessment carried out under subsection (a). Each report 
     shall set forth the results of the assessment as of the date 
     of such report.

     SEC. 915. SENSE OF CONGRESS REGARDING OFFICERS RECOMMENDED TO 
                   BE APPOINTED TO SERVE AS COMMANDER OF UNITED 
                   STATES SPACE COMMAND.

       It is the sense of Congress that the position of commander 
     of the United States Space Command, a position of importance 
     and responsibility designated by the President under section 
     601 of title 10, United States Code, to carry the grade of 
     general or admiral and covered by section 604 of that title, 
     relating to recommendations by the Secretary of Defense for 
     appointment of officers to certain four-star joint officer 
     positions, should by filled by the best qualified officer of 
     the Army, Navy, Air Force, or Marine Corps, rather than by 
     officers from the same armed force that has traditionally 
     provided officers for that position.

                          Subtitle C--Reports

     SEC. 921. REVISED REQUIREMENT FOR CHAIRMAN OF THE JOINT 
                   CHIEFS OF STAFF TO ADVISE SECRETARY OF DEFENSE 
                   ON THE ASSIGNMENT OF ROLES AND MISSIONS TO THE 
                   ARMED FORCES.

       (a) Assessment During Quadrennial Defense Review.--Section 
     118(e) of title 10, United States Code, is amended--
       (1) by inserting ``(1)'' after ``(e) CJCS Review.--'';
       (2) by designating the second and third sentences as 
     paragraph (3); and
       (3) by inserting after paragraph (1), as designated by 
     paragraph (1) of this subsection, the following new 
     paragraph:
       ``(2) The Chairman shall include as part of that assessment 
     the Chairman's assessment of the assignment of functions (or 
     roles and missions) to the armed forces, together with any 
     recommendations for changes in assignment that the Chairman 
     considers necessary to achieve maximum efficiency of the 
     armed forces. In preparing the assessment under this 
     paragraph, the Chairman shall consider (among other matters) 
     the following:
       ``(A) Unnecessary duplication of effort among the armed 
     forces.
       ``(B) Changes in technology that can be applied effectively 
     to warfare.''.
       (b) Repeal of Requirement for Triennial Report on 
     Assignment of Roles and Missions.--Section 153 of such title 
     is amended--
       (1) by striking ``(a) Planning; Advice; Policy 
     Formulation.--''; and
       (2) by striking subsection (b).
       (c) Assessment With Respect to 2001 QDR.--With respect to 
     the 2001 Quadrennial Defense Review, the Chairman of the 
     Joint Chiefs of Staff shall submit to Congress a separate 
     assessment of functions (or roles and missions) of the Armed 
     Forces in accordance with paragraph (2) of section 118(e) of 
     title 10, United States Code, as added by subsection (a)(3). 
     Such assessment shall be based on the findings in the 2001 
     Quadrennial Defense Review, issued by the Secretary of 
     Defense on September 30, 2001, and shall be submitted to 
     Congress not later than one year after the date of the 
     enactment of this Act.

     SEC. 922. REVISED REQUIREMENTS FOR CONTENT OF ANNUAL REPORT 
                   ON JOINT WARFIGHTING EXPERIMENTATION.

       Section 485(b) of title 10, United States Code, is 
     amended--
       (1) in paragraph (4)(E)--
       (A) by inserting ``(by lease or by purchase)'' after 
     ``acquire''; and
       (B) by inserting ``(including any prototype)'' after ``or 
     equipment''; and
       (2) by adding at the end the following new paragraph:
       ``(6) A specific assessment of whether there is a need for 
     a major force program for funding--
       ``(A) joint warfighting experimentation; and
       ``(B) the development and acquisition of any technology the 
     value of which has been empirically demonstrated through such 
     experimentation.''.

     SEC. 923. REPEAL OF REQUIREMENT FOR ONE OF THREE REMAINING 
                   REQUIRED REPORTS ON ACTIVITIES OF JOINT 
                   REQUIREMENTS OVERSIGHT COUNCIL.

       Section 916 of the Floyd D. Spence National Defense 
     Authorization Act for Fiscal Year 2001 (as enacted into law 
     by Public Law 106-398; 114 Stat. 1654A-231) is amended--
       (1) in the section heading, by striking ``SEMIANNUAL 
     REPORT'' and inserting ``REPORTS'';
       (2) in subsection (a)--
       (A) by striking ``Semiannual Report'' in the subsection 
     heading and inserting ``Reports Required''; and
       (B) by striking ``five semiannual''; and
       (3) in subsection (b)--
       (A) by striking ``September 1, 2002,''; and
       (B) by striking the period at the end of the last sentence 
     and inserting ``, except that the last report shall cover all 
     of the preceding fiscal year.''.

     SEC. 924. REVISED JOINT REPORT ON ESTABLISHMENT OF NATIONAL 
                   COLLABORATIVE INFORMATION ANALYSIS CAPABILITY.

       (a) Revised Report.--At the same time as the submission of 
     the budget for fiscal year 2003 under section 1105 of title 
     31, United States Code, the Secretary of Defense and the 
     Director of Central Intelligence shall submit to the 
     congressional defense committees and the congressional 
     intelligence committees a revised report assessing 
     alternatives for the establishment of a national 
     collaborative information analysis capability.
       (b) Matters Included.--The revised report shall cover the 
     same matters required to be included in the DOD/CIA report, 
     except that the alternative architectures assessed in the 
     revised report shall be limited to architectures that include 
     the participation of all Federal agencies involved in the 
     collection of intelligence. The revised report shall also 
     identify any issues that would require legislative or 
     regulatory changes in order to implement the preferred 
     architecture identified in the revised report.
       (c) Officials To Be Consulted.--The revised report shall be 
     prepared after consultation with all appropriate Federal 
     officials, including the following:
       (1) The Secretary of the Treasury.
       (2) The Secretary of Commerce.
       (3) The Secretary of State.
       (4) The Attorney General.
       (5) The Director of the Federal Bureau of Investigation.
       (6) The Administrator of the Drug Enforcement 
     Administration.
       (d) Definitions.--In this section:
       (1) Dod/cia report.--The term ``DOD/CIA report'' means the 
     joint report required by section 933 of the Floyd D. Spence 
     National Defense Authorization Act for Fiscal Year 2001 (as 
     enacted into law by Public Law 106-398; 114 Stat. 1654A-237).
       (2) Congressional intelligence committees.--The term 
     ``congressional intelligence committees'' means the Select 
     Committee on Intelligence of the Senate and the Permanent 
     Select Committee on Intelligence of the House of 
     Representatives.

[[Page 25237]]


                       Subtitle D--Other Matters

     SEC. 931. CONFORMING AMENDMENTS RELATING TO CHANGE OF NAME OF 
                   MILITARY AIRLIFT COMMAND TO AIR MOBILITY 
                   COMMAND.

       (a) Current References in Title 10, United States Code.--
     Section 2554(d) of title 10, United States Code, and section 
     2555(a) of such title (relating to transportation services 
     for international Girl Scout events) are amended by striking 
     ``Military Airlift Command'' and inserting ``Air Mobility 
     Command''.
       (b) Repeal of Obsolete Provision.--Section 8074 of such 
     title is amended by striking subsection (c).
       (c) References in Title 37, United States Code.--Sections 
     430(c) and 432(b) of title 37, United States Code, are 
     amended by striking ``Military Airlift Command'' and 
     inserting ``Air Mobility Command''.

     SEC. 932. ORGANIZATIONAL REALIGNMENT FOR NAVY DIRECTOR FOR 
                   EXPEDITIONARY WARFARE.

       Section 5038(a) of title 10, United States Code, is amended 
     by striking ``Office of the Deputy Chief of Naval Operations 
     for Resources, Warfare Requirements, and Assessments'' and 
     inserting ``office of the Deputy Chief of Naval Operations 
     with responsibility for warfare requirements and programs''.
                      TITLE X--GENERAL PROVISIONS

          Subtitle A--Department of Defense Civilian Personnel

Sec. 1001. Transfer authority.
Sec. 1002. Incorporation of classified annex.
Sec. 1003. Authorization of supplemental appropriations for fiscal year 
              2001.
Sec. 1004. United States contribution to NATO common-funded budgets in 
              fiscal year 2002.
Sec. 1005. Limitation on funds for Bosnia and Kosovo peacekeeping 
              operations for fiscal year 2002.
Sec. 1006. Maximum amount for National Foreign Intelligence Program.
Sec. 1007. Clarification of applicability of interest penalties for 
              late payment of interim payments due under contracts for 
              services.
Sec. 1008. Reliability of Department of Defense financial statements.
Sec. 1009. Financial Management Modernization Executive Committee and 
              financial feeder systems compliance process.
Sec. 1010. Authorization of funds for ballistic missile defense 
              programs or combating terrorism programs of the 
              Department of Defense.

                Subtitle B--Naval Vessels and Shipyards

Sec. 1011. Authority to transfer naval vessels to certain foreign 
              countries.
Sec. 1012 Sale of Glomar Explorer to the lessee.
Sec. 1013. Leasing of Navy ships for university national oceanographic 
              laboratory system.
Sec. 1014. Increase in limitations on administrative authority of the 
              Navy to settle admiralty claims.

                  Subtitle C--Counter-Drug Activities

Sec. 1021. Extension and restatement of authority to provide Department 
              of Defense support for counter-drug activities of other 
              governmental agencies.
Sec. 1022. Extension of reporting requirement regarding Department of 
              Defense expenditures to support foreign counter-drug 
              activities.
Sec. 1023. Authority to transfer Tracker aircraft currently used by 
              Armed Forces for counter-drug purposes.
Sec. 1024. Limitation on use of funds for operation of Tethered 
              Aerostat Radar System pending submission of required 
              report.

                      Subtitle D--Strategic Forces

Sec. 1031. Repeal of limitation on retirement or dismantlement of 
              strategic nuclear delivery systems.
Sec. 1032. Air Force bomber force structure.
Sec. 1033. Additional element for revised nuclear posture review.
Sec. 1034. Report on options for modernization and enhancement of 
              missile wing helicopter support.

           Subtitle E--Other Department of Defense Provisions

Sec. 1041. Secretary of Defense recommendation on need for Department 
              of Defense review of proposed Federal agency actions to 
              consider possible impact on national defense.
Sec. 1042. Department of Defense reports to Congress to be accompanied 
              by electronic version upon request.
Sec. 1043. Department of Defense gift authorities.
Sec. 1044. Acceleration of research, development, and production of 
              medical countermeasures for defense against biological 
              warfare agents.
Sec. 1045. Chemical and biological protective equipment for military 
              personnel and civilian employees of the Department of 
              Defense.
Sec. 1046. Sale of goods and services by Naval Magazine, Indian Island, 
              Alaska.
Sec. 1047. Report on procedures and guidelines for embarkation of 
              civilian guests on naval vessels for public affairs 
              purposes.
Sec. 1048. Technical and clerical amendments.
Sec. 1049. Termination of referendum requirement regarding continuation 
              of military training on island of Vieques, Puerto Rico, 
              and imposition of additional conditions on closure of 
              live-fire training range.

                       Subtitle F--Other Matters

Sec. 1061. Assistance for firefighters.
Sec. 1062. Extension of times for Commission on the Future of the 
              United States Aerospace industry to report and to 
              terminate.
Sec. 1063. Appropriations to Radiation Exposure Compensation Trust 
              Fund.
Sec. 1064. Waiver of vehicle weight limits during periods of national 
              emergency.
Sec. 1065. Repair, restoration, and preservation of Lafayette 
              Escadrille Memorial, Marnes-la-Coquette, France.
                     Subtitle A--Financial Matters

     SEC. 1001. TRANSFER AUTHORITY.

       (a) Authority To Transfer Authorizations.--(1) Upon 
     determination by the Secretary of Defense that such action is 
     necessary in the national interest, the Secretary may 
     transfer amounts of authorizations made available to the 
     Department of Defense in this division for fiscal year 2002 
     between any such authorizations for that fiscal year (or any 
     subdivisions thereof). Amounts of authorizations so 
     transferred shall be merged with and be available for the 
     same purposes as the authorization to which transferred.
       (2) The total amount of authorizations that the Secretary 
     may transfer under the authority of this section may not 
     exceed $2,000,000,000.
       (b) Limitations.--The authority provided by this section to 
     transfer authorizations--
       (1) may only be used to provide authority for items that 
     have a higher priority than the items from which authority is 
     transferred; and
       (2) may not be used to provide authority for an item that 
     has been denied authorization by Congress.
       (c) Effect on Authorization Amounts.--A transfer made from 
     one account to another under the authority of this section 
     shall be deemed to increase the amount authorized for the 
     account to which the amount is transferred by an amount equal 
     to the amount transferred.
       (d) Notice to Congress.--The Secretary shall promptly 
     notify Congress of each transfer made under subsection (a).

     SEC. 1002. [H1002]. INCORPORATION OF CLASSIFIED ANNEX.

       (a) Status of Classified Annex.--The Classified Annex 
     prepared by the committee of conference to accompany the 
     conference report on the bill S. 1438 of the One Hundred 
     Seventh Congress and transmitted to the President is hereby 
     incorporated into this Act.
       (b) Construction With Other Provisions of Act.--The amounts 
     specified in the Classified Annex are not in addition to 
     amounts authorized to be appropriated by other provisions of 
     this Act.
       (c) Limitation on Use of Funds.--Funds appropriated 
     pursuant to an authorization contained in this Act that are 
     made available for a program, project, or activity referred 
     to in the Classified Annex may only be expended for such 
     program, project, or activity in accordance with such terms, 
     conditions, limitations, restrictions, and requirements as 
     are set out for that program, project, or activity in the 
     Classified Annex.
       (d) Distribution of Classified Annex.--The President shall 
     provide for appropriate distribution of the Classified Annex, 
     or of appropriate portions of the annex, within the executive 
     branch of the Government.

     SEC. 1003. AUTHORIZATION OF SUPPLEMENTAL APPROPRIATIONS FOR 
                   FISCAL YEAR 2001.

       Amounts authorized to be appropriated to the Department of 
     Defense for fiscal year 2001 in the Floyd D. Spence National 
     Defense Authorization Act for Fiscal Year 2001 (as enacted 
     into law by Public Law 106-398) are hereby adjusted, with 
     respect to any such authorized amount, by the amount by which 
     appropriations pursuant to such authorization were increased 
     (by a supplemental appropriation) or decreased (by a 
     rescission), or both, in title I of the Supplemental 
     Appropriations Act, 2001 (Public Law 107-20).

     SEC. 1004. UNITED STATES CONTRIBUTION TO NATO COMMON-FUNDED 
                   BUDGETS IN FISCAL YEAR 2002.

       (a) Fiscal Year 2002 Limitation.--The total amount 
     contributed by the Secretary of Defense in fiscal year 2002 
     for the common-funded budgets of NATO may be any amount up 
     to, but not in excess of, the amount specified in subsection 
     (b) (rather than the maximum amount that would otherwise be 
     applicable to those contributions under the fiscal year 1998 
     baseline limitation).
       (b) Total Amount.--The amount of the limitation applicable 
     under subsection (a) is the sum of the following:
       (1) The amounts of unexpended balances, as of the end of 
     fiscal year 2001, of funds appropriated for fiscal years 
     before fiscal year 2002 for payments for those budgets.
       (2) The amount specified in subsection (c)(1).
       (3) The amount specified in subsection (c)(2).
       (4) The total amount of the contributions authorized to be 
     made under section 2501.
       (c) Authorized Amounts.--Amounts authorized to be 
     appropriated by titles II and III of this Act are available 
     for contributions for the common-funded budgets of NATO as 
     follows:
       (1) Of the amount provided in section 201(1), $708,000 for 
     the Civil Budget.
       (2) Of the amount provided in section 301(a)(1), 
     $175,849,000 for the Military Budget.

[[Page 25238]]

       (d) Definitions.--For purposes of this section:
       (1) Common-funded budgets of nato.--The term ``common-
     funded budgets of NATO'' means the Military Budget, the 
     Security Investment Program, and the Civil Budget of the 
     North Atlantic Treaty Organization (and any successor or 
     additional account or program of NATO).
       (2) Fiscal year 1998 baseline limitation.--The term 
     ``fiscal year 1998 baseline limitation'' means the maximum 
     annual amount of Department of Defense contributions for 
     common-funded budgets of NATO that is set forth as the annual 
     limitation in section 3(2)(C)(ii) of the resolution of the 
     Senate giving the advice and consent of the Senate to the 
     ratification of the Protocols to the North Atlantic Treaty of 
     1949 on the Accession of Poland, Hungary, and the Czech 
     Republic (as defined in section 4(7) of that resolution), 
     approved by the Senate on April 30, 1998.

     SEC. 1005. LIMITATION ON FUNDS FOR BOSNIA AND KOSOVO 
                   PEACEKEEPING OPERATIONS FOR FISCAL YEAR 2002.

       (a) Limitation.--Of the amounts authorized to be 
     appropriated by section 301(a)(24) for the Overseas 
     Contingency Operations Transfer Fund--
       (1) no more than $1,315,600,000 may be obligated for 
     incremental costs of the Armed Forces for Bosnia peacekeeping 
     operations; and
       (2) no more than $1,528,600,000 may be obligated for 
     incremental costs of the Armed Forces for Kosovo peacekeeping 
     operations.
       (b) Presidential Waiver.--The President may waive the 
     limitation in subsection (a)(1), or the limitation in 
     subsection (a)(2), after submitting to Congress the 
     following:
       (1) The President's written certification that the waiver 
     is necessary in the national security interests of the United 
     States.
       (2) The President's written certification that exercising 
     the waiver will not adversely affect the readiness of United 
     States military forces.
       (3) A report setting forth the following:
       (A) The reasons that the waiver is necessary in the 
     national security interests of the United States.
       (B) The specific reasons that additional funding is 
     required for the continued presence of United States military 
     forces participating in, or supporting, Bosnia peacekeeping 
     operations, or Kosovo peacekeeping operations, as the case 
     may be, for fiscal year 2002.
       (C) A discussion of the impact on the military readiness of 
     United States Armed Forces of the continuing deployment of 
     United States military forces participating in, or 
     supporting, Bosnia peacekeeping operations, or Kosovo 
     peacekeeping operations, as the case may be.
       (4) A supplemental appropriations request for the 
     Department of Defense for such amounts as are necessary for 
     the additional fiscal year 2002 costs associated with United 
     States military forces participating in, or supporting, 
     Bosnia or Kosovo peacekeeping operations.
       (c) Peacekeeping Operations Defined.--For the purposes of 
     this section:
       (1) The term ``Bosnia peacekeeping operations'' has the 
     meaning given such term in section 1004(e) of the Strom 
     Thurmond National Defense Authorization Act for Fiscal Year 
     1999 (Public Law 105-261; 112 Stat. 2112).
       (2) The term ``Kosovo peacekeeping operations''--
       (A) means the operation designated as Operation Joint 
     Guardian and any other operation involving the participation 
     of any of the Armed Forces in peacekeeping or peace 
     enforcement activities in and around Kosovo; and
       (B) includes, with respect to Operation Joint Guardian or 
     any such other operation, each activity that is directly 
     related to the support of the operation.

     SEC. 1006. MAXIMUM AMOUNT FOR NATIONAL FOREIGN INTELLIGENCE 
                   PROGRAM.

       The total amount authorized to be appropriated for the 
     National Foreign Intelligence Program for fiscal year 2002 is 
     the sum of the following:
       (1) The total amount set forth for the National Foreign 
     Intelligence Program for fiscal year 2002 in the message of 
     the President to Congress transmitted by the President on 
     June 27, 2001, and printed as House Document 107-92, 
     captioned ``Communication of the President of the United 
     States Transmitting Requests for Fiscal Year 2002 Budget 
     Amendments for the Department of Defense''.
       (2) The total amount, if any, appropriated for the National 
     Foreign Intelligence Program for fiscal year 2002 pursuant to 
     the 2001 Emergency Supplemental Appropriations Act for 
     Recovery from and Response to Terrorist Attacks on the United 
     States (Public Law 107-38; 115 Stat. 220-221).
       (3) The total amount, if any, appropriated for the National 
     Foreign Intelligence Program for fiscal year 2002 in any law 
     making supplemental appropriations for fiscal year 2002 that 
     is enacted during the second session of the 107th Congress.

     SEC. 1007. CLARIFICATION OF APPLICABILITY OF INTEREST 
                   PENALTIES FOR LATE PAYMENT OF INTERIM PAYMENTS 
                   DUE UNDER CONTRACTS FOR SERVICES.

       Section 1010(d) of the Floyd D. Spence National Defense 
     Authorization Act for Fiscal Year 2001 (as enacted into law 
     by Public Law 106-398; 114 Stat. 1654A-251) is amended by 
     inserting before the period at the end of the first sentence 
     the following: ``, and shall apply with respect to interim 
     payments that are due on or after such date under contracts 
     entered into before, on, or after that date''.

     SEC. 1008. RELIABILITY OF DEPARTMENT OF DEFENSE FINANCIAL 
                   STATEMENTS.

       (a) Annual Report on Reliability.--(1) Not later than 
     September 30 of each year but subject to subsection (f), the 
     Secretary of Defense shall submit to the recipients specified 
     in paragraph (3) a report on the reliability of the 
     Department of Defense financial statements, including the 
     financial statements of each component of the Department that 
     is required to prepare a financial statement under section 
     3515(c) of title 31, United States Code.
       (2) The annual report shall contain the following:
       (A) A conclusion regarding whether the policies and 
     procedures of the Department of Defense, and the systems used 
     within the Department of Defense, for the preparation of 
     financial statements allow the achievement of reliability in 
     those financial statements.
       (B) For each of the financial statements prepared for the 
     Department of Defense for the fiscal year in which the report 
     is submitted, a conclusion regarding the expected reliability 
     of the financial statement (evaluated on the basis of Office 
     of Management and Budget guidance on financial statements), 
     together with a discussion of the major deficiencies to be 
     expected in the statement.
       (C) A summary of the specific sections of the annual 
     Financial Management Improvement Plan of the Department of 
     Defense, current as of the date of the report, that--
       (i) detail the priorities, milestones, and measures of 
     success that apply to the preparation of the financial 
     statements;
       (ii) detail the planned improvements in the process for the 
     preparation of financial statements that are to be 
     implemented within 12 months after the date on which the plan 
     is issued; and
       (iii) provide an estimate of when each financial statement 
     will convey reliable information.
       (3) The annual report shall be submitted to the following:
       (A) The Committee on Armed Services and the Committee on 
     Governmental Affairs of the Senate.
       (B) The Committee on Armed Services and the Committee on 
     Government Reform of the House of Representatives.
       (C) The Director of the Office of Management and Budget.
       (D) The Secretary of the Treasury.
       (E) The Comptroller General of the United States.
       (4) The Secretary of Defense shall make a copy of the 
     annual report available to the Inspector General of the 
     Department of Defense.
       (b) Minimization of Use of Resources for Unreliable 
     Financial Statements.--(1) With respect to each financial 
     statement for a fiscal year that the Secretary of Defense 
     assesses as being expected to be unreliable in the annual 
     report under subsection (a), the Under Secretary of Defense 
     (Comptroller) shall take appropriate actions to minimize, 
     consistent with the benefits to be derived, the resources 
     (including contractor support) that are used to develop, 
     compile, and report the financial statement.
       (2) With the annual budget justifications for the 
     Department of Defense submitted to Congress each year, the 
     Under Secretary of Defense (Comptroller) shall submit, with 
     respect to the fiscal year in which submitted, the preceding 
     fiscal year, and the following fiscal year, the following 
     information:
       (A) An estimate of the resources that the Department of 
     Defense is saving or expects to save as a result of actions 
     taken and to be taken under paragraph (1) with respect to the 
     preparation of financial statements.
       (B) A discussion of how the resources saved as estimated 
     under subparagraph (A) have been redirected or are to be 
     redirected from the preparation of financial statements to 
     the improvement of systems underlying financial management 
     within the Department of Defense and to the improvement of 
     financial management policies, procedures, and internal 
     controls within the Department of Defense.
       (c) Information to Auditors.--Not later than October 31 of 
     each year, the Under Secretary of Defense (Comptroller) and 
     the Assistant Secretary of each military department with 
     responsibility for financial management and comptroller 
     functions shall each provide to the auditors of the financial 
     statement of that official's department for the fiscal year 
     ending during the preceding month that official's preliminary 
     management representation, in writing, regarding the expected 
     reliability of the financial statement. The representation 
     shall be consistent with guidance issued by the Director of 
     the Office of Management and Budget and shall include the 
     basis for the reliability assessment stated in the 
     representation.
       (d) Limitation on Inspector General Audits.--(1) On each 
     financial statement that an official asserts is unreliable 
     under subsection (b) or (c), the Inspector General of the 
     Department of Defense shall only perform the audit procedures 
     required by generally accepted government auditing standards 
     consistent with any representation made by management.
       (2) With the annual budget justifications for the 
     Department of Defense submitted to Congress each year, the 
     Under Secretary of Defense (Comptroller) shall submit, with 
     respect to the fiscal year in which submitted, the preceding 
     fiscal year, and the following fiscal year, information which 
     the Inspector General shall report to the Under Secretary, as 
     follows:
       (A) An estimate of the resources that the Inspector General 
     is saving or expects to save as a result of actions taken and 
     to be taken under paragraph (1) with respect to the auditing 
     of financial statements.

[[Page 25239]]

       (B) A discussion of how the resources saved as estimated 
     under subparagraph (A) have been redirected or are to be 
     redirected from the auditing of financial statements to the 
     oversight and improvement of systems underlying financial 
     management within the Department of Defense and to the 
     oversight and improvement of financial management policies, 
     procedures, and internal controls within the Department of 
     Defense.
       (e) Effective Date.--The requirements of this section shall 
     apply with respect to financial statements for fiscal years 
     after fiscal year 2001 and to the auditing of those financial 
     statements.
       (f) Termination of Applicability.--If the Secretary of 
     Defense certifies to the Inspector General of the Department 
     of Defense that the financial statement for the Department of 
     Defense, or a financial statement for a component of the 
     Department of Defense, for a fiscal year is reliable, this 
     section shall not apply with respect to that financial 
     statement or to any successive financial statement for the 
     Department of Defense, or for that component, as the case may 
     be, for any later fiscal year.

     SEC. 1009. FINANCIAL MANAGEMENT MODERNIZATION EXECUTIVE 
                   COMMITTEE AND FINANCIAL FEEDER SYSTEMS 
                   COMPLIANCE PROCESS.

       (a) Executive Committee.--(1) Chapter 7 of title 10, United 
     States Code, is amended by adding at the end the following 
     new section:

     ``Sec. 185. Financial Management Modernization Executive 
       Committee

       ``(a) Establishment of Financial Management Modernization 
     Executive Committee.--(1) The Secretary of Defense shall 
     establish a Financial Management Modernization Executive 
     Committee.
       ``(2) The Committee shall be composed of the following:
       ``(A) The Under Secretary of Defense (Comptroller), who 
     shall be the chairman of the committee.
       ``(B) The Under Secretary of Defense for Acquisition, 
     Technology, and Logistics.
       ``(C) The Under Secretary of Defense for Personnel and 
     Readiness.
       ``(D) The Chief Information Officer of the Department of 
     Defense.
       ``(E) Such additional personnel of the Department of 
     Defense (including appropriate personnel of the military 
     departments and Defense Agencies) as are designated by the 
     Secretary.
       ``(3) The Committee shall be accountable to the Senior 
     Executive Council (composed of the Secretary of Defense, the 
     Deputy Secretary of Defense, the Under Secretary of Defense 
     for Acquisition, Technology, and Logistics, the Secretary of 
     the Army, the Secretary of the Navy, and the Secretary of the 
     Air Force).
       ``(b) Duties.--In addition to other matters assigned to it 
     by the Secretary of Defense, the Committee shall have the 
     following duties:
       ``(1) To establish a process that ensures that each 
     critical accounting system, financial management system, and 
     data feeder system of the Department of Defense is compliant 
     with applicable Federal financial management and reporting 
     requirements.
       ``(2) To develop a management plan for the implementation 
     of the financial and data feeder systems compliance process 
     established pursuant to paragraph (1).
       ``(3) To supervise and monitor the actions that are 
     necessary to implement the management plan developed pursuant 
     to paragraph (2), as approved by the Secretary of Defense.
       ``(4) To ensure that a Department of Defense financial 
     management enterprise architecture is developed and 
     maintained in accordance with--
       ``(A) the overall business process transformation strategy 
     of the Department; and
       ``(B) the architecture framework of the Department for 
     command, control, communications, computers, intelligence, 
     surveillance, and reconnaissance functions.
       ``(5) To ensure that investments in existing or proposed 
     financial management systems for the Department comply with 
     the overall business practice transformation strategy of the 
     Department and the financial management enterprise 
     architecture developed under paragraph (4).
       ``(6) To provide an annual accounting of each financial and 
     data feeder system investment technology project to ensure 
     that each such project is being implemented at acceptable 
     cost and within a reasonable schedule and is contributing to 
     tangible, observable improvements in mission performance.
       ``(c) Management Plan for Implementation of Financial Data 
     Feeder Systems Compliance Process.--The management plan 
     developed under subsection (b)(2) shall include among its 
     principal elements at least the following elements:
       ``(1) A requirement for the establishment and maintenance 
     of a complete inventory of all budgetary, accounting, 
     finance, and data feeder systems that support the transformed 
     business processes of the Department and produce financial 
     statements.
       ``(2) A phased process (consisting of the successive phases 
     of Awareness, Evaluation, Renovation, Validation, and 
     Compliance) for improving systems referred to in paragraph 
     (1) that provides for mapping financial data flow from the 
     cognizant Department business function source (as part of the 
     overall business process transformation strategy of the 
     Department) to Department financial statements.
       ``(3) Periodic submittal to the Secretary of Defense, the 
     Deputy Secretary of Defense, and the Senior Executive Council 
     (or any combination thereof) of reports on the progress being 
     made in achieving financial management transformation goals 
     and milestones included in the annual financial management 
     improvement plan in 2002.
       ``(4) Documentation of the completion of each phase 
     specified in paragraph (2) of improvements made to each 
     accounting, finance, and data feeder system of the 
     Department.
       ``(5) Independent audit by the Inspector General of the 
     Department, the audit agencies of the military departments, 
     and private sector firms contracted to conduct validation 
     audits (or any combination thereof) at the validation phase 
     for each accounting, finance, and data feeder system.
       ``(d) Data Feeder Systems.--In this section, the term `data 
     feeder system' has the meaning given that term in section 
     2222(c)(2) of this title.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by adding at the end the following new item:

``185. Financial Management Modernization Executive Committee.''.
       (b) Annual Financial Management Improvement Plan.--(1) 
     Subsection (a) of section 2222 of title 10, United States 
     Code, is amended--
       (A) by striking ``Biennial'' in the subsection heading and 
     inserting ``Annual'';
       (B) by striking ``a biennial'' in the first sentence and 
     inserting ``an annual''; and
       (C) by striking ``even-numbered'' in the second sentence.
       (2) Subsection (c) of such section is amended--
       (A) by redesignating paragraph (2) as paragraph (3); and
       (B) by inserting after paragraph (1) the following new 
     paragraph (2):
       ``(2) In each such plan, the Secretary shall include the 
     following:
       ``(A) A description of the actions to be taken in the 
     fiscal year beginning in the year in which the plan is 
     submitted to implement the annual performance goals, and the 
     performance milestones, included in the financial management 
     improvement plan submitted in 2002 pursuant to paragraphs (1) 
     and (2), respectively, of section 1009(c) of the National 
     Defense Authorization Act for Fiscal Year 2002.
       ``(B) An estimate of the amount expended in the fiscal year 
     ending in the year in which the plan is submitted to 
     implement the financial management improvement plan in such 
     preceding calendar year, set forth by system.
       ``(C) If an element of the financial management improvement 
     plan submitted in the fiscal year ending in the year in which 
     the plan is submitted was not implemented, a justification 
     for the lack of implementation of such element.''.
       (3)(A) The heading of such section is amended to read as 
     follows:

     ``Sec. 2222. Annual financial management improvement plan''.

       (B) The item relating to section 2222 in the table of 
     sections at the beginning of chapter 131 of such title is 
     amended to read as follows:

``2222. Annual financial management improvement plan.''.
       (c) Additional Elements for Financial Management 
     Improvement Plan in 2002.--In the annual financial management 
     improvement plan submitted under section 2222 of title 10, 
     United States Code, in 2002, the Secretary of Defense shall 
     include the following:
       (1) Measurable annual performance goals for improvement of 
     the financial management of the Department of Defense.
       (2) Performance milestones for initiatives under that plan 
     for transforming the financial management operations of the 
     Department of Defense and for implementing a financial 
     management architecture for the Department.
       (3) An assessment of the anticipated annual cost of any 
     plans for transforming the financial management operations of 
     the Department of Defense and for implementing a financial 
     management architecture for the Department.
       (4) A discussion of the following:
       (A) The roles and responsibilities of appropriate 
     Department officials to ensure the supervision and monitoring 
     of the compliance of each accounting, finance, and data 
     feeder system of the Department with--
       (i) the business practice transformation strategy of the 
     Department;
       (ii) the financial management architecture of the 
     Department; and
       (iii) applicable Federal financial management systems and 
     reporting requirements.
       (B) A summary of the actions taken by the Financial 
     Management Modernization Executive Committee to ensure that 
     such systems comply with--
       (i) the business practice transformation strategy of the 
     Department;
       (ii) the financial management architecture of the 
     Department; and
       (iii) applicable Federal financial management systems and 
     reporting requirements.
       (d) Effective Date.--Paragraph (2) of section 2222(c) of 
     title 10, United States Code, as added by subsection (b)(2), 
     shall not apply with respect to the annual financial 
     management improvement plan submitted under section 2222 of 
     title 10, United States Code, in 2002.

     SEC. 1010. AUTHORIZATION OF FUNDS FOR BALLISTIC MISSILE 
                   DEFENSE PROGRAMS OR COMBATING TERRORISM 
                   PROGRAMS OF THE DEPARTMENT OF DEFENSE.

       (a) Authorization.--There is hereby authorized to be 
     appropriated for fiscal year 2002 for the military functions 
     of the Department of Defense, in addition to amounts 
     authorized to be appropriated in titles I, II, and III, the 
     amount of $1,300,000,000, to be available, in accordance with 
     subsection (b), for the following purposes:

[[Page 25240]]

       (1) Research, development, test, and evaluation for 
     ballistic missile defense programs of the Ballistic Missile 
     Defense Organization.
       (2) Activities of the Department of Defense for combating 
     terrorism.
       (b) Allocation by President.--(1) The amount authorized to 
     be appropriated by subsection (a) shall be allocated between 
     the purposes stated in paragraphs (1) and (2) of that 
     subsection in such manner as may be determined by the 
     President based upon the national security interests of the 
     United States. The amount authorized in subsection (a) shall 
     not be available for any other purpose.


       (2) Upon an allocation of such amount by the President, the 
     amount so allocated shall be transferred to the appropriate 
     regular authorization account under this division in the same 
     manner as provided in section 1001. Transfers under this 
     paragraph shall not be counted for the purposes of section 
     1001(a)(2).
       (3) Not later than 15 days after an allocation is made 
     under this subsection, the Secretary of Defense shall submit 
     to the congressional defense committees a report describing 
     the allocation and the Secretary's plan for the use by the 
     Department of Defense of the funds made available pursuant to 
     such allocation.
                Subtitle B--Naval Vessels and Shipyards

     SEC. 1011. AUTHORITY TO TRANSFER NAVAL VESSELS TO CERTAIN 
                   FOREIGN COUNTRIES.

       (a) Transfers by Grant.--The President is authorized to 
     transfer vessels to foreign countries on a grant basis under 
     section 516 of the Foreign Assistance Act of 1961 (22 U.S.C. 
     2321j) as follows:
       (1) Poland.--To the Government of Poland, the OLIVER HAZARD 
     PERRY class guided missile frigate WADSWORTH (FFG 9).
       (2) Turkey.--To the Government of Turkey, the KNOX class 
     frigates CAPODANNO (FF 1093), THOMAS C. HART (FF 1092), 
     DONALD B. BEARY (FF 1085), McCANDLESS (FF 1084), REASONER (FF 
     1063), and BOWEN (FF 1079).
       (b) Transfers by Sale.--The President is authorized to 
     transfer vessels to foreign governments and foreign 
     governmental entities on a sale basis under section 21 of the 
     Arms Export Control Act (22 U.S.C. 2761) as follows:
       (1) Taiwan.--To the Taipei Economic and Cultural 
     Representative Office in the United States (which is the 
     Taiwan instrumentality designated pursuant to section 10(a) 
     of the Taiwan Relations Act), the KIDD class guided missile 
     destroyers KIDD (DDG 993), CALLAGHAN (DDG 994), SCOTT (DDG 
     995), and CHANDLER (DDG 996).
       (2) Turkey.--To the Government of Turkey, the OLIVER HAZARD 
     PERRY class guided missile frigates ESTOCIN (FFG 15) and 
     SAMUEL ELIOT MORISON (FFG 13).
       (c) Grants Not Counted in Annual Total of Transferred 
     Excess Defense Articles.--The value of a vessel transferred 
     to another country on a grant basis under section 516 of the 
     Foreign Assistance Act of 1961 (22 U.S.C. 2321j) pursuant to 
     authority provided by subsection (a) shall not be counted for 
     the purposes of subsection (g) of that section in the 
     aggregate value of excess defense articles transferred to 
     countries under that section in any fiscal year.
       (d) Costs of Transfers on Grant Basis.--Any expense 
     incurred by the United States in connection with a transfer 
     authorized by this section shall be charged to the recipient 
     (notwithstanding section 516(e)(1) of the Foreign Assistance 
     Act of 1961 (22 U.S.C. 2321j(e)(1))) in the case of a 
     transfer authorized to be made on a grant basis under 
     subsection (a).
       (e) Waiver Authority.--For a vessel transferred on a grant 
     basis pursuant to authority provided by subsection (a)(2), 
     the President may waive reimbursement of charges for the 
     lease of that vessel under section 61(a) of the Arms Export 
     Control Act (22 U.S.C. 2796(a)) for a period of one year 
     before the date of the transfer of that vessel.
       (f) Repair and Refurbishment in United States Shipyards.--
     To the maximum extent practicable, the President shall 
     require, as a condition of the transfer of a vessel under 
     this section, that the country to which the vessel is 
     transferred have such repair or refurbishment of the vessel 
     as is needed, before the vessel joins the naval forces of 
     that country, performed at a shipyard located in the United 
     States, including a United States Navy shipyard.
       (g) Expiration of Authority.--The authority to transfer a 
     vessel under this section shall expire at the end of the two-
     year period beginning on the date of the enactment of this 
     Act.

     SEC. 1012. SALE OF GLOMAR EXPLORER TO THE LESSEE.

       (a) Authority.--The Secretary of the Navy may convey by 
     sale all right, title, and interest of the United States in 
     and to the vessel GLOMAR EXPLORER (AG 193) to the person who, 
     on the date of the enactment of this Act, is the lessee of 
     the vessel.
       (b) Consideration.--The price for which the vessel is sold 
     under subsection (a) shall be a fair and reasonable amount 
     determined by the Secretary of the Navy.
       (c) Additional Terms.--The Secretary may require such 
     additional terms in connection with the conveyance authorized 
     by this section as the Secretary considers appropriate.
       (d) Proceeds of Sale.--Amounts received by the Secretary 
     from the sale under this section may, to the extent provided 
     in an appropriations Act, be credited to the appropriation 
     available for providing salvage facilities under section 7361 
     of title 10, United States Code, and are authorized to remain 
     available until expended for that purpose.

     SEC. 1013. LEASING OF NAVY SHIPS FOR UNIVERSITY NATIONAL 
                   OCEANOGRAPHIC LABORATORY SYSTEM.

       Subsection (g) of section 2667 of title 10, United States 
     Code, is amended by adding at the end the following new 
     paragraph:
       ``(3) Paragraph (1) does not apply to a renewal or 
     extension of a lease by the Secretary of the Navy with a 
     selected institution for operation of a ship within the 
     University National Oceanographic Laboratory System if, under 
     the lease, each of the following applies:
       ``(A) Use of the ship is restricted to federally supported 
     research programs and to non-Federal uses under specific 
     conditions with approval by the Secretary of the Navy.
       ``(B) Because of the anticipated value to the Navy of the 
     oceanographic research and training that will result from the 
     ship's operation, no monetary lease payments are required 
     from the lessee under the initial lease or under any renewal 
     or extension.
       ``(C) The lessee is required to maintain the ship in a good 
     state of repair, readiness, and efficient operating 
     condition, conform to all applicable regulatory requirements, 
     and assume full responsibility for the safety of the ship, 
     its crew, and scientific personnel aboard.''.

     SEC. 1014. INCREASE IN LIMITATIONS ON ADMINISTRATIVE 
                   AUTHORITY OF THE NAVY TO SETTLE ADMIRALTY 
                   CLAIMS.

       (a) Admiralty Claims Against the United States.--Section 
     7622 of title 10, United States Code, is amended--
       (1) in subsections (a) and (b), by striking ``$1,000,000'' 
     and inserting ``$15,000,000''; and
       (2) in subsection (c), by striking ``$100,000'' and 
     inserting ``$1,000,000''.
       (b) Admiralty Claims by the United States.--Section 7623 of 
     such title is amended--
       (1) in subsection (a)(2), by striking ``$1,000,000'' and 
     inserting ``$15,000,000''; and
       (2) in subsection (c), by striking ``$100,000'' and 
     inserting ``$1,000,000''.
       (c) Effective Date.--The amendments made by this section 
     shall apply with respect to any claim accruing on or after 
     February 1, 2001.
                  Subtitle C--Counter-Drug Activities

     SEC. 1021. EXTENSION AND RESTATEMENT OF AUTHORITY TO PROVIDE 
                   DEPARTMENT OF DEFENSE SUPPORT FOR COUNTER-DRUG 
                   ACTIVITIES OF OTHER GOVERNMENTAL AGENCIES.

       Section 1004 of the National Defense Authorization Act for 
     Fiscal Year 1991 (Public Law 101-510; 10 U.S.C. 374 note) is 
     amended to read as follows:

     ``SEC. 1004. ADDITIONAL SUPPORT FOR COUNTER-DRUG ACTIVITIES

       ``(a) Support to Other Agencies.--During fiscal years 2002 
     through 2006, the Secretary of Defense may provide support 
     for the counter-drug activities of any other department or 
     agency of the Federal Government or of any State, local, or 
     foreign law enforcement agency for any of the purposes set 
     forth in subsection (b) if such support is requested--
       ``(1) by the official who has responsibility for the 
     counter-drug activities of the department or agency of the 
     Federal Government, in the case of support for other 
     departments or agencies of the Federal Government;
       ``(2) by the appropriate official of a State or local 
     government, in the case of support for State or local law 
     enforcement agencies; or
       ``(3) by an appropriate official of a department or agency 
     of the Federal Government that has counter-drug 
     responsibilities, in the case of support for foreign law 
     enforcement agencies.
       ``(b) Types of Support.--The purposes for which the 
     Secretary of Defense may provide support under subsection (a) 
     are the following:
       ``(1) The maintenance and repair of equipment that has been 
     made available to any department or agency of the Federal 
     Government or to any State or local government by the 
     Department of Defense for the purposes of--
       ``(A) preserving the potential future utility of such 
     equipment for the Department of Defense; and
       ``(B) upgrading such equipment to ensure compatibility of 
     that equipment with other equipment used by the Department of 
     Defense.
       ``(2) The maintenance, repair, or upgrading of equipment 
     (including computer software), other than equipment referred 
     to in paragraph (1) for the purpose of--
       ``(A) ensuring that the equipment being maintained or 
     repaired is compatible with equipment used by the Department 
     of Defense; and
       ``(B) upgrading such equipment to ensure the compatibility 
     of that equipment with equipment used by the Department of 
     Defense.
       ``(3) The transportation of personnel of the United States 
     and foreign countries (including per diem expenses associated 
     with such transportation), and the transportation of supplies 
     and equipment, for the purpose of facilitating counter-drug 
     activities within or outside the United States.
       ``(4) The establishment (including an unspecified minor 
     military construction project) and operation of bases of 
     operations or training facilities for the purpose of 
     facilitating counter-drug activities of the Department of 
     Defense or any Federal, State, or local law enforcement 
     agency within or outside the United States or counter-drug 
     activities of a foreign law enforcement agency outside the 
     United States.
       ``(5) Counter-drug related training of law enforcement 
     personnel of the Federal Government, of State and local 
     governments, and of foreign countries, including associated 
     support expenses for trainees and the provision of materials 
     necessary to carry out such training.
       ``(6) The detection, monitoring, and communication of the 
     movement of--

[[Page 25241]]

       ``(A) air and sea traffic within 25 miles of and outside 
     the geographic boundaries of the United States; and
       ``(B) surface traffic outside the geographic boundary of 
     the United States and within the United States not to exceed 
     25 miles of the boundary if the initial detection occurred 
     outside of the boundary.
       ``(7) Construction of roads and fences and installation of 
     lighting to block drug smuggling corridors across 
     international boundaries of the United States.
       ``(8) Establishment of command, control, communications, 
     and computer networks for improved integration of law 
     enforcement, active military, and National Guard activities.
       ``(9) The provision of linguist and intelligence analysis 
     services.
       ``(10) Aerial and ground reconnaissance.
       ``(c) Limitation on Counter-Drug Requirements.--The 
     Secretary of Defense may not limit the requirements for which 
     support may be provided under subsection (a) only to 
     critical, emergent, or unanticipated requirements.
       ``(d) Contract Authority.--In carrying out subsection (a), 
     the Secretary of Defense may acquire services or equipment by 
     contract for support provided under that subsection if the 
     Department of Defense would normally acquire such services or 
     equipment by contract for the purpose of conducting a similar 
     activity for the Department of Defense.
       ``(e) Limited Waiver of Prohibition.--Notwithstanding 
     section 376 of title 10, United States Code, the Secretary of 
     Defense may provide support pursuant to subsection (a) in any 
     case in which the Secretary determines that the provision of 
     such support would adversely affect the military preparedness 
     of the United States in the short term if the Secretary 
     determines that the importance of providing such support 
     outweighs such short-term adverse effect.
       ``(f) Conduct of Training or Operation to Aid Civilian 
     Agencies.--In providing support pursuant to subsection (a), 
     the Secretary of Defense may plan and execute otherwise valid 
     military training or operations (including training exercises 
     undertaken pursuant to section 1206(a) of the National 
     Defense Authorization Act for Fiscal Years 1990 and 1991 
     (Public Law 101-189; 103 Stat. 1564)) for the purpose of 
     aiding civilian law enforcement agencies.
       ``(g) Relationship to Other Laws.--(1) The authority 
     provided in this section for the support of counter-drug 
     activities by the Department of Defense is in addition to, 
     and except as provided in paragraph (2), not subject to the 
     requirements of chapter 18 of title 10, United States Code.
       ``(2) Support under this section shall be subject to the 
     provisions of section 375 and, except as provided in 
     subsection (e), section 376 of title 10, United States Code.
       ``(h) Congressional Notification of Facilities Projects.--
     (1) When a decision is made to carry out a military 
     construction project described in paragraph (2), the 
     Secretary of Defense shall submit to the congressional 
     defense committees written notice of the decision, including 
     the justification for the project and the estimated cost of 
     the project. The project may be commenced only after the end 
     of the 21-day period beginning on the date on which the 
     written notice is received by Congress.
       ``(2) Paragraph (1) applies to an unspecified minor 
     military construction project that--
       ``(A) is intended for the modification or repair of a 
     Department of Defense facility for the purpose set forth in 
     subsection (b)(4); and
       ``(B) has an estimated cost of more than $500,000.''.

     SEC. 1022. EXTENSION OF REPORTING REQUIREMENT REGARDING 
                   DEPARTMENT OF DEFENSE EXPENDITURES TO SUPPORT 
                   FOREIGN COUNTER-DRUG ACTIVITIES.

       Section 1022 of the Floyd D. Spence National Defense 
     Authorization Act for Fiscal Year 2001 (as enacted into law 
     by Public Law 106-398; 114 Stat. 1654A-255) is amended--
       (1) by inserting ``and April 15, 2002,'' after ``January 1, 
     2001,''; and
       (2) by striking ``fiscal year 2000'' and inserting ``the 
     preceding fiscal year''.

     SEC. 1023. AUTHORITY TO TRANSFER TRACKER AIRCRAFT CURRENTLY 
                   USED BY ARMED FORCES FOR COUNTER-DRUG PURPOSES.

       (a) Transfer Authority.--The Secretary of Defense may 
     transfer to the administrative jurisdiction and operational 
     control of another Federal agency all Tracker aircraft in the 
     inventory of the Department of Defense.
       (b) Effect of Failure To Transfer.--If the transfer 
     authority provided by subsection (a) is not exercised by the 
     Secretary of Defense by September 30, 2002, any Tracker 
     aircraft remaining in the inventory of the Department of 
     Defense may not be used by the Armed Forces for counter-drug 
     purposes after that date.

     SEC. 1024. LIMITATION ON USE OF FUNDS FOR OPERATION OF 
                   TETHERED AEROSTAT RADAR SYSTEM PENDING 
                   SUBMISSION OF REQUIRED REPORT.

       Not more than 50 percent of the funds appropriated or 
     otherwise made available for fiscal year 2002 for operation 
     of the Tethered Aerostat Radar System, which is used by the 
     Armed Forces in maritime, air, and land counter-drug 
     detection and monitoring, may be obligated or expended until 
     such time as the Secretary of Defense submits to Congress the 
     report on the status of the Tethered Aerostat Radar System 
     required by section 1025 of the Floyd D. Spence National 
     Defense Authorization Act for Fiscal Year 2001 (as enacted 
     into law by Public Law 106-398; 114 Stat. 1654A-256).
                      Subtitle D--Strategic Forces

     SEC. 1031. REPEAL OF LIMITATION ON RETIREMENT OR 
                   DISMANTLEMENT OF STRATEGIC NUCLEAR DELIVERY 
                   SYSTEMS.

       Section 1302 of the National Defense Authorization Act for 
     Fiscal Year 1998 (Public Law 105-85; 111 Stat. 1948) is 
     repealed.

     SEC. 1032. AIR FORCE BOMBER FORCE STRUCTURE.

       (a) Limitation.--None of the funds available to the 
     Department of Defense for fiscal year 2002 may be obligated 
     or expended for retiring or dismantling any of the 93 B-1B 
     Lancer bombers in service as of June 1, 2001, or for 
     transferring or reassigning any of those aircraft from the 
     unit or facility to which assigned as of that date, until 15 
     days after the Secretary of the Air Force submits to the 
     Committee on Armed Services of the Senate and the Committee 
     on Armed Services of the House of Representatives a report on 
     the Air Force bomber force structure.
       (b) Matters To Be Included.--The report under subsection 
     (a) shall set forth the following:
       (1) The Air Force plan for the modernization of the B1-B 
     aircraft fleet, including a transition plan for 
     implementation of that modernization plan and a description 
     of the basing options for the aircraft in that fleet.
       (2) The amount and type of bomber force structure in the 
     Air Force appropriate to meet the requirements of the 
     national security strategy of the United States.
       (3) Specifications of new missions to be assigned to the 
     National Guard units that currently fly B-1 aircraft and the 
     transition of those units and their facilities from the 
     current B-1 mission to their future missions.
       (4) A description of the potential effect of the proposed 
     consolidation and reduction of the B-1 fleet on other 
     National Guard units in the affected States.
       (5) A justification of the cost and projected savings of 
     consolidating and reducing the B-1 fleet.
       (c) Amount and Type of Bomber Force Structure Defined.--In 
     this section, the term ``amount and type of bomber force 
     structure'' means the number of B-2 aircraft, B-52 aircraft, 
     and B-1 aircraft that are required to carry out the current 
     national security strategy.

     SEC. 1033. ADDITIONAL ELEMENT FOR REVISED NUCLEAR POSTURE 
                   REVIEW.

       Section 1041(b) of the Floyd D. Spence National Defense 
     Authorization Act for Fiscal Year 2001 (as enacted into law 
     by Public Law 106-398; 114 Stat. 1654A-262) is amended by 
     adding at the end the following new paragraph:
       ``(7) The possibility of deactivating or dealerting nuclear 
     warheads or delivery systems immediately, or immediately 
     after a decision to retire any specific warhead, class of 
     warheads, or delivery system.''.

     SEC. 1034. REPORT ON OPTIONS FOR MODERNIZATION AND 
                   ENHANCEMENT OF MISSILE WING HELICOPTER SUPPORT.

       (a) Report Required.--The Secretary of Defense shall 
     prepare a report regarding the options for providing the 
     helicopter support missions for the Air Force 
     intercontinental ballistic missile wings at Minot Air Force 
     Base, North Dakota, Malmstrom Air Force Base, Montana, and 
     F.E. Warren Air Force Base, Wyoming, for as long as these 
     missions are required. The report shall include the 
     Secretary's recommendations on a preferred option.
       (b) Options.--Options to be reviewed under subsection (a) 
     include the following:
       (1) The current plan of the Air Force for replacement or 
     modernization of UH-1N helicopters currently flown by the Air 
     Force at the missile wings.
       (2) Replacement of the UH-1N helicopters currently flown by 
     the Air Force with UH-60 Black Hawk helicopters, the UH-1Y 
     helicopter, or another platform.
       (3) Replacement of the UH-1N helicopters with UH-60 
     helicopters and transition of the mission to the Army 
     National Guard, as detailed in the Air Force Space Command/
     Army National Guard plan entitled ``ARNG Helicopter Support 
     to Air Force Space Command'' and dated November 2000.
       (4) Replacement of the UH-1N helicopters with UH-60 
     helicopters or another platform, and establishment of 
     composite units combining active duty Air Force and Army 
     National Guard personnel.
       (5) Such other options as the Secretary of Defense 
     considers appropriate.
       (c) Factors.--Factors to be considered in preparing the 
     report under subsection (a) include the following:
       (1) Any implications of transferring the helicopter support 
     missions on the command and control of, and responsibility 
     for, missile field force protection.
       (2) Current and future operational requirements, and the 
     capabilities of the UH-1N or UH-60 helicopter or other 
     aircraft to meet such requirements.
       (3) Cost, with particular attention to opportunities to 
     realize efficiencies over the long run.
       (4) Implications for personnel training and retention.
       (5) Evaluation of the assumptions used in the plan 
     specified in subsection (b)(3).
       (d) Consideration.--In preparing the report under 
     subsection (a), the Secretary of Defense shall consider 
     carefully the views of the Secretary of the Army, the 
     Secretary of the Air Force, the commander of the United 
     States Strategic Command, and the Chief of the National Guard 
     Bureau.

[[Page 25242]]

       (e) Submission of Report.--The report required by 
     subsection (a) shall be submitted to the congressional 
     defense committees not later than the date on which the 
     President submits to Congress the budget under section 1105 
     of title 31, United States Code, for fiscal year 2003.
           Subtitle E--Other Department of Defense Provisions

     SEC. 1041. SECRETARY OF DEFENSE RECOMMENDATION ON NEED FOR 
                   DEPARTMENT OF DEFENSE REVIEW OF PROPOSED 
                   FEDERAL AGENCY ACTIONS TO CONSIDER POSSIBLE 
                   IMPACT ON NATIONAL DEFENSE.

       (a) Recommendation on Need for Defense Impact Review 
     Process.--The Secretary of Defense shall submit to the 
     President the Secretary's recommendation as to whether there 
     should be established within the executive branch a defense 
     impact review process. The Secretary shall submit a copy of 
     such recommendation to Congress.
       (b) Defense Impact Review Process.--(1) For purposes of 
     this section, the term ```defense impact review process'' 
     means a formal process within the executive branch--
       (A) to provide for review by the Department of Defense of 
     certain proposed actions of other Federal departments and 
     agencies to identify any reasonably foreseeable significant 
     adverse impact of such a proposed action on national defense; 
     and
       (B) when such a review indicates that a proposed agency 
     action may have such an adverse impact--
       (i) to afford the Secretary of Defense a timely opportunity 
     to make recommendations for means to eliminate or mitigate 
     any such adverse impact; and
       (ii) to afford an opportunity for those recommendations to 
     be given reasonable and timely consideration by the agency to 
     which provided.
       (2) For purposes of such a review process, the proposed 
     agency actions subject to review would be those for which a 
     significant adverse impact on national defense is reasonably 
     foreseeable and that meet such additional criteria as may be 
     specified by the Secretary of Defense.
       (c) Time for Submission of Recommendation.--The Secretary 
     shall submit the Secretary's recommendation under subsection 
     (a) not later than 180 days after the date of the enactment 
     of this Act.

     SEC. 1042. DEPARTMENT OF DEFENSE REPORTS TO CONGRESS TO BE 
                   ACCOMPANIED BY ELECTRONIC VERSION UPON REQUEST.

       (a) In General.--Chapter 23 of title 10, United States 
     Code, is amended by inserting after the table of sections the 
     following new section:

     ``Sec. 480. Reports to Congress: submission in electronic 
       form

       ``(a) Requirement.--Whenever the Secretary of Defense or 
     any other official of the Department of Defense submits to 
     Congress (or any committee of either House of Congress) a 
     report that the Secretary (or other official) is required by 
     law to submit, the Secretary (or other official) shall, upon 
     request by any committee of Congress to which the report is 
     submitted or referred, provide to Congress (or each such 
     committee) a copy of the report in an electronic medium.
       ``(b) Exception.--Subsection (a) does not apply to a report 
     submitted in classified form.
       ``(c) Definition.--In this section, the term `report' 
     includes any certification, notification, or other 
     communication in writing.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of such chapter is amended by inserting before the 
     item relating to section 481 the following new item:

``480. Reports to Congress: submission in electronic form.''.

     SEC. 1043. DEPARTMENT OF DEFENSE GIFT AUTHORITIES.

       (a) Authority To Make Loans and Gifts.--(1) Subsection (a) 
     of section 7545 of title 10, United States Code, is amended 
     by striking ``(a) Subject to'' and all that follows through 
     ``to--'' and inserting the following:
       ``(a) Authority To Make Loans and Gifts.--The Secretary of 
     the Navy may lend or give, without expense to the United 
     States, items described in subsection (b) that are not needed 
     by the Department of the Navy to any of the following:''.
       (2) Such subsection is further amended--
       (A) by capitalizing the first letter after the paragraph 
     designation in each of paragraphs (1) through (12);
       (B) by striking the semicolon at the end of paragraphs (1) 
     through (10) and inserting a period;
       (C) by striking ``; or'' at the end of paragraph (11) and 
     inserting a period;
       (D) in paragraph (5), by striking ``World War I or World 
     War II'' and inserting ``a foreign war'';
       (E) in paragraph (6), by striking ``soldiers' monument'' 
     and inserting ``servicemen's monument''; and
       (F) in paragraph (8), by inserting ``or memorial'' after 
     ``museum''.
       (b) Additional Items Authorized To Be Donated by Secretary 
     of the Navy.--Such section is further amended--
       (1) by redesignating subsections (b) and (c) as subsections 
     (d) and (e), respectively;
       (2) by inserting after subsection (a) the following new 
     subsections:
       ``(b) Items Eligible for Disposal.--This section applies to 
     the following types of property held by the Department of the 
     Navy:
       ``(1) Captured, condemned, or obsolete ordnance material.
       ``(2) Captured, condemned, or obsolete combat or shipboard 
     material.
       ``(c) Regulations.--A loan or gift made under this section 
     shall be subject to regulations prescribed by the Secretary 
     and to regulations under section 205 of the Federal Property 
     and Administrative Services Act of 1949 (40 U.S.C. 486).''; 
     and
       (3) by adding at the end the following new subsection:
       ``(f) Authority To Transfer a Portion of a Vessel.--The 
     Secretary may lend, give, or otherwise transfer any portion 
     of the hull or superstructure of a vessel stricken from the 
     Naval Vessel Register and designated for scrapping to a 
     qualified organization specified in subsection (a). The terms 
     and conditions of an agreement for the transfer of a portion 
     of a vessel under this section shall include a requirement 
     that the transferee will maintain the material conveyed in a 
     condition that will not diminish the historical value of the 
     material or bring discredit upon the Navy.''.
       (c) Clerical Amendments.--Such section is further amended--
       (1) in subsection (d) (as redesignated by subsection 
     (b)(1)), by inserting ``Maintenance of the Records of the 
     Government.--'' after the subsection designation; and
       (2) in subsection (e) (as redesignated by subsection 
     (b)(1)), by inserting ``Alternative Authorities To Make Gifts 
     or Loans.--'' after the subsection designation.
       (d) Conforming Amendments.--Section 2572(a) of such title 
     is amended--
       (1) in paragraph (1), by inserting ``, county, or other 
     political subdivision of a State'' before the period at the 
     end;
       (2) in paragraph (2), by striking ``soldiers' monument'' 
     and inserting ``servicemen's monument''; and
       (3) in paragraph (4), by inserting ``or memorial'' after 
     ``An incorporated museum''.

     SEC. 1044. ACCELERATION OF RESEARCH, DEVELOPMENT, AND 
                   PRODUCTION OF MEDICAL COUNTERMEASURES FOR 
                   DEFENSE AGAINST BIOLOGICAL WARFARE AGENTS.

       (a) Aggressive Program Required.--(1) The Secretary of 
     Defense shall carry out a program to aggressively accelerate 
     the research, development, testing, and licensure of new 
     medical countermeasures for defense against the biological 
     warfare agents that are the highest threat.
       (2) The program shall include the following activities:
       (A) As the program's first priority, investment in multiple 
     new technologies for medical countermeasures for defense 
     against the biological warfare agents that are the highest 
     threat, including for the prevention and treatment of 
     anthrax.
       (B) Leveraging of ideas and technologies from the 
     biological technology industry.
       (b) Study Required.--(1) The Secretary of Defense shall 
     enter into a contract with the Institute of Medicine and the 
     National Research Council under which the Institute and 
     Council, in consultation with the Secretary, shall carry out 
     a study of the review and approval process for new medical 
     countermeasures for biological warfare agents. The purpose of 
     the study shall be to identify--
       (A) new approaches to accelerating such process; and
       (B) definitive and reasonable methods for assuring the 
     agencies responsible for regulating such countermeasures that 
     such countermeasures will be effective in preventing disease 
     in humans or in providing safe and effective therapy against 
     such agents.
       (2) Not later than June 1, 2002, the Institute and Council 
     shall jointly submit to Congress a report on the results of 
     the study.
       (c) Facility for Production of Vaccines.--(1) Subject to 
     paragraph (2) and to the availability of funds for such 
     purposes appropriated pursuant to an authorization of 
     appropriations, the Secretary of Defense may--
       (A) design and construct a facility on a Department of 
     Defense installation for the production of vaccines to meet 
     the requirements of the Department of Defense to prevent or 
     mitigate the physiological effects of exposure to biological 
     warfare agents;
       (B) operate that facility;
       (C) qualify and validate that facility for the production 
     of vaccines in accordance with the requirements of the Food 
     and Drug Administration; and
       (D) contract with a private-sector source for the 
     production of vaccines in that facility.
       (2) The authority under paragraph (1)(A) to construct a 
     facility may be exercised only to the extent that a project 
     for such construction is authorized by law in accordance with 
     section 2802 of title 10, United States Code.
       (3) The Secretary shall use competitive procedures under 
     chapter 137 of title 10, United States Code, to enter into 
     contracts to carry out subparagraphs (A), (B), and (D) of 
     paragraph (1).
       (d) Plan Required.--(1) The Secretary shall develop a long-
     range plan to provide for the production and acquisition of 
     vaccines to meet the requirements of the Department of 
     Defense to prevent or mitigate the physiological effects of 
     exposure to biological warfare agents.
       (2) The plan shall include the following:
       (A) An evaluation of the need for one or more vaccine 
     production facilities that are specifically dedicated to 
     meeting the requirements of the Department of Defense and 
     other national interests.
       (B) An evaluation of the options for the means of 
     production of such vaccines, including--
       (i) use of public facilities, private facilities, or a 
     combination of public and private facilities; and

[[Page 25243]]

       (ii) management and operation of the facilities by the 
     Federal Government, one or more private persons, or a 
     combination of the Federal Government and one or more private 
     persons.
       (C) A specification of the means that the Secretary 
     determines is most appropriate for the production of such 
     vaccines.
       (3) The Secretary shall ensure that the plan is consistent 
     with the requirement for safe and effective vaccines approved 
     by the Food and Drug Administration.
       (4) In preparing the plan, the Secretary shall--
       (A) consider and, as the Secretary determines appropriate, 
     include the information compiled and the analyses developed 
     in preparing the reports required by sections 217 and 218 of 
     the Floyd D. Spence National Defense Authorization Act for 
     Fiscal Year 2001 (as enacted into law by Public Law 106-398; 
     114 Stat. 1654A-36, 1654A-37); and
       (B) consult with the heads of other appropriate departments 
     and agencies of the Federal Government.
       (e) Report.--Not later than February 1, 2002, the Secretary 
     shall submit to the congressional defense committees a report 
     on the plan required by subsection (d). The report shall 
     include, at a minimum, the contents of the plan and the 
     following matters:
       (1) A description of the policies and requirements of the 
     Department of Defense regarding acquisition and use of such 
     vaccines.
       (2) The estimated schedule for the acquisition of such 
     vaccines in accordance with the plan.
       (3) A discussion of the options considered under subsection 
     (d)(2)(B) for the means of production of such vaccines.
       (4) The Secretary's recommendations for the most 
     appropriate course of action to meet the requirements 
     specified in subsection (d)(1), together with the 
     justification for such recommendations and the long-term cost 
     of implementing such recommendations.
       (f) Funding.--Of the amount authorized to be appropriated 
     under section 201(4) for research, development, test, and 
     evaluation, Defense-wide, $5,000,000 may be available in 
     Program Element 62384BP, and $5,000,000 may be available in 
     Program Element 63384BP, for the program required by 
     subsection (a).

     SEC. 1045. CHEMICAL AND BIOLOGICAL PROTECTIVE EQUIPMENT FOR 
                   MILITARY PERSONNEL AND CIVILIAN EMPLOYEES OF 
                   THE DEPARTMENT OF DEFENSE.

       Not later than 120 days after the date of the enactment of 
     this Act, the Secretary of Defense shall submit to Congress a 
     report on the requirements of the Department of Defense, 
     including the reserve components, regarding chemical and 
     biological protective equipment. The report shall set forth 
     the following:
       (1) A description of any current shortfalls with respect to 
     requirements regarding chemical and biological protective 
     equipment for military personnel, whether for individuals or 
     units.
       (2) An assessment of what should be the appropriate level 
     of protection for civilian employees of the Department of 
     Defense against chemical and biological attack.
       (3) A plan for providing required chemical and biological 
     protective equipment for military personnel and civilian 
     employees of the Department of Defense.
       (4) An assessment of the costs associated with carrying out 
     the plan described in paragraph (3).

     SEC. 1046. SALE OF GOODS AND SERVICES BY NAVAL MAGAZINE, 
                   INDIAN ISLAND, ALASKA.

       (a) Sale Authorized.--Subject to subsections (c) and (d) of 
     section 2563 of title 10, United States Code, the Secretary 
     of the Navy may sell to a person outside the Department of 
     Defense any article or service provided by the Naval 
     Magazine, Indian Island, Alaska, that is not available from a 
     United States commercial source.
       (b) Crediting of Proceeds.--The proceeds from the sale of 
     any article or service under this section shall be credited 
     to the appropriation supporting the maintenance and operation 
     of the Naval Magazine, Indian Island, for the fiscal year in 
     which the proceeds are received.

     SEC. 1047. REPORT ON PROCEDURES AND GUIDELINES FOR 
                   EMBARKATION OF CIVILIAN GUESTS ON NAVAL VESSELS 
                   FOR PUBLIC AFFAIRS PURPOSES.

       Not later than February 1, 2002, the Secretary of the Navy 
     shall submit to the Committee on Armed Services of the Senate 
     and the Committee on Armed Services of the House of 
     Representatives a report setting forth in detail the 
     procedures and guidelines of the Navy for the embarkation of 
     civilian guests on naval vessels for public affairs purposes. 
     The report shall include the following:
       (1) Procedures for nominating and approving civilian guests 
     for embarkation on naval vessels.
       (2) Procedures for ensuring that civilian guest 
     embarkations are conducted only as part of regularly 
     scheduled operations.
       (3) Guidelines regarding the operation of equipment by 
     civilian guests on naval vessels.
       (4) Any other procedures or guidelines the Secretary 
     considers necessary or appropriate to ensure that operational 
     readiness and safety are not hindered by activities related 
     to the embarkation of civilian guests on naval vessels.

     SEC. 1048. TECHNICAL AND CLERICAL AMENDMENTS.

       (a) Title 10, United States Code.--Title 10, United States 
     Code, is amended as follows:
       (1) The tables of chapters at the beginning of subtitle A, 
     and at the beginning of part II of subtitle A, are each 
     amended by striking the period after ``1111'' in the item 
     relating to chapter 56.
       (2) Section 119(g)(2) is amended by striking ``National 
     Security Subcommittee'' and inserting ``Subcommittee on 
     Defense''.
       (3) Section 130c(b)(3)(C) is amended by striking 
     ``subsection (f)'' and inserting ``subsection (g)''.
       (4) Section 176(a)(3) is amended by striking ``Chief 
     Medical Director'' and inserting ``Under Secretary for 
     Health''.
       (5)(A) Section 503(c) is amended in paragraph (6)(A)(i) by 
     striking ``14101(18)'' and ``8801(18)'' and inserting 
     ``14101'' and ``8801'', respectively.
       (B) The amendment made by subparagraph (A) shall take 
     effect on July 1, 2002, immediately after the amendment to 
     such section effective that date by section 563(a) of the 
     Floyd D. Spence National Defense Authorization Act for Fiscal 
     Year 2001 (as enacted into law by Public Law 106-398; 114 
     Stat. 1654A-131).
       (6) Section 663(e) is amended--
       (A) by striking ``Armed Forces Staff College'' in paragraph 
     (1) and inserting ``Joint Forces Staff College''; and
       (B) by striking ``Armed Forces Staff College'' and 
     inserting ``Joint Forces Staff College''.
       (7) Section 667(17) is amended by striking ``Armed Forces 
     Staff College'' both places it appears and inserting ``Joint 
     Forces Staff College''.
       (8) Section 874(a) is amended by inserting after ``a 
     sentence of confinement for life without eligibility for 
     parole'' the following: ``that is adjudged for an offense 
     committed after October 29, 2000''.
       (9) Section 1056(c)(2) is amended by striking ``, not later 
     than September 30, 1991,''.
       (10) The table of sections at the beginning of chapter 55 
     is amended by transferring the item relating to section 
     1074i, as inserted by section 758(b) of the Floyd D. Spence 
     National Defense Authorization Act for Fiscal Year 2001 (as 
     enacted by Public Law 106-398; 114 Stat. 1654A-200), so as to 
     appear after the item relating to section 1074h.
       (11) Section 1097a(e) is amended by striking ``section 
     1072'' and inserting ``section 1072(2)''.
       (12) Sections 1111(a) and 1114(a)(1) are each amended by 
     striking ``hereafter'' and inserting ``hereinafter''.
       (13) Section 1116 is amended--
       (A) in subsection (a)(2)(B), by inserting an open 
     parenthesis before ``other than for training''; and
       (B) in subsection (b)(2)(D), by striking ``section 
     111(c)(4)'' and inserting ``section 1115(c)(4)''.
       (14) The heading for subchapter II of chapter 75 is 
     transferred within that chapter so as to appear before the 
     table of sections at the beginning of that subchapter (as if 
     the amendment made by section 721(c)(1) of the National 
     Defense Authorization Act for Fiscal Year 2000 (Public Law 
     106-65; 113 Stat. 694) had inserted that heading following 
     section 1471 instead of before section 1475).
       (15) Section 1611(d) is amended by striking ``with''.
       (16) Section 2166(e)(9) is amended by striking ``App. 2'' 
     and inserting ``App.''.
       (17) Section 2323(a)(1)(C) is amended--
       (A) by striking ``section 1046(3)'' and inserting ``section 
     365(3)'';
       (B) by striking ``20 U.S.C. 1135d-5(3)'' and inserting ``20 
     U.S.C. 1067k''; and
       (C) by striking ``, which, for the purposes of this 
     section'' and all that follows through the period at the end 
     and inserting a period.
       (18) Section 2375(b) is amended by inserting ``(41 U.S.C. 
     430)'' after ``section 34 of the Office of Federal 
     Procurement Policy Act''.
       (19) Section 2376(1) is amended by inserting ``(41 U.S.C. 
     403)'' after ``section 4 of the Office of Federal Procurement 
     Policy Act''.
       (20) Section 2410f(a) is amended by inserting after 
     ``inscription'' the following: ``, or another inscription 
     with the same meaning,''.
       (21) Section 2461a(a)(2) is amended by striking 
     ``effeciency'' and inserting ``efficiency''.
       (22) Section 2467 is amended--
       (A) in subsection (a)(2)--
       (i) by striking ``, United States Code'' in subparagraph 
     (A); and
       (ii) by striking ``such'' in subparagraphs (B) and (C); and
       (B) in subsection (b)(2)(A), by striking ``United States 
     Code,''.
       (23) Section 2535 is amended--
       (A) in subsection (a)--
       (i) by striking ``intent of Congress'' and inserting 
     ``intent of Congress--'';
       (ii) by realigning clauses (1), (2), (3), and (4) so that 
     each such clause appears as a separate paragraph indented two 
     ems from the left margin; and
       (iii) in paragraph (1), as so realigned, by striking 
     ``Armed Forces'' and inserting ``armed forces'';
       (B) in subsection (b)(1)--
       (i) by striking ``in this section, the Secretary is 
     authorized and directed to--'' and inserting ``in subsection 
     (a), the Secretary of Defense shall--''; and
       (ii) by striking ``defense industrial reserve'' in 
     subparagraph (A) and inserting ``Defense Industrial 
     Reserve''; and
       (C) in subsection (c)--
       (i) by striking paragraph (1);
       (ii) by redesignating paragraph (2) as paragraph (1) and in 
     that paragraph--

       (I) by striking ``means'' and inserting ``means--'';
       (II) by realigning clauses (A), (B), and (C) so that each 
     such clause appears as a separate

[[Page 25244]]

     subparagraph indented four ems from the left margin; and
       (III) by inserting ``and'' at the end of subparagraph (B), 
     as so realigned; and

       (iii) by redesignating paragraph (3) as paragraph (2).
       (24) Section 2541c is amended by striking ``subtitle'' both 
     places it appears in the matter preceding paragraph (1) and 
     inserting ``subchapter''.
       (25) The second section 2582, added by section 1(a) of 
     Public Law 106-446 (114 Stat. 1932), is redesignated as 
     section 2583, and the item relating to that section in the 
     table of sections at the beginning of chapter 153 is revised 
     to conform to such redesignation.
       (26)(A) Section 2693(a) is amended--
       (i) in the matter preceding paragraph (1), by inserting 
     ``of Defense'' after ``Secretary''; and
       (ii) in paragraph (3)--
       (I) by inserting ``to the Secretary of Defense'' after 
     ``certifies'';
       (II) by inserting ``(42 U.S.C. 3762a)'' after ``of 1968''; 
     and
       (III) by striking ``to the public agencies referred to in 
     section 515(a)(1) or 515(a)(3) of title I of such Act'' and 
     inserting ``to a public agency referred to in paragraph (1) 
     or (3) of subsection (a) of such section''.
       (B)(i) The heading of such section is amended to read as 
     follows:

     ``Sec. 2693. Conveyance of certain property: Department of 
       Justice correctional options program''.

       (ii) The item relating to such section in the table of 
     sections at the beginning of chapter 159 is amended to read 
     as follows:

``2693. Conveyance of certain property: Department of Justice 
              correctional options program.''.
       (27) Section 3014(f)(3) is amended by striking ``the number 
     equal to'' and all that follows and inserting ``67.''.
       (28) Section 5014(f)(3) is amended by striking ``the number 
     equal to'' and all that follows and inserting ``74.''.
       (29) Section 8014(f)(3) is amended by striking ``the number 
     equal to'' and all that follows and inserting ``60.''.
       (30) Section 9783(e)(1) is amended by striking 
     ``40101(a)(2)'' and inserting ``40102(a)(2)''.
       (31) Section 12741(a)(2) is amended by striking 
     ``received'' and inserting ``receive''.
       (b) Amendments Relating to Change in Title of Under 
     Secretary of Defense for Acquisition, Technology, and 
     Logistics.--Title 10, United States Code, is further amended 
     as follows:
       (1) Section 133a(b) is amended by striking ``shall assist 
     the Under Secretary of Defense for Acquisition and 
     Technology'' and inserting ``shall assist the Under Secretary 
     of Defense for Acquisition, Technology, and Logistics''.
       (2) The following provisions are each amended by striking 
     ``Under Secretary of Defense for Acquisition and Technology'' 
     and inserting ``Under Secretary of Defense for Acquisition, 
     Technology, and Logistics'': sections 139(c), 139(g) (as 
     redesignated by section 263), 171(a)(3), 179(a)(1), 1702, 
     1703, 1707(a), 1722(a), 1722(b)(2)(B), 1735(c)(1), 
     1737(c)(1), 1737(c)(2)(B), 1741(b), 1746(a), 1761(b)(4), 
     1763, 2302c(a)(2), 2304(f)(1)(B)(iii), 2304(f)(6)(B), 
     2311(c)(1), 2311(c)(2)(B), 2350a(e)(1)(A), 2350a(e)(2)(B), 
     2350a(f)(1), 2399(b)(3), 2435(b), 2435(d)(2), 2521(a), and 
     2534(i)(3).
       (3)(A) The heading for section 1702 is amended to read as 
     follows:

     ``Sec. 1702. Under Secretary of Defense for Acquisition, 
       Technology, and Logistics: authorities and 
       responsibilities''.

       (B) The item relating to section 1702 in the table of 
     sections at the beginning of subchapter I of chapter 87 is 
     amended to read as follows:

``1702. Under Secretary of Defense for Acquisition, Technology, and 
              Logistics: authorities and responsibilities.''.
       (4) Section 2503(b) is amended by striking ``Under 
     Secretary of Defense for Acquisition'' and inserting ``Under 
     Secretary of Defense for Acquisition, Technology, and 
     Logistics''.
       (c) Amendments To Substitute Calendar Dates for Date-of-
     Enactment References.--Title 10, United States Code, is 
     further amended as follows:
       (1) Section 130c(d)(1) is amended by striking ``the date of 
     the enactment of the Floyd D. Spence National Defense 
     Authorization Act for Fiscal Year 2001'' and inserting 
     ``October 30, 2000,''.
       (2) Section 184(a) is amended by striking ``the date of the 
     enactment of this section,'' and inserting ``October 30, 
     2000,''.
       (3) Section 986(a) is amended by striking ``the date of the 
     enactment of this section,'' and inserting ``October 30, 
     2000,''.
       (4) Section 1074g(a)(8) is amended by striking ``the date 
     of the enactment of this section'' and inserting ``October 5, 
     1999,''.
       (5) Section 1079(h)(2) is amended by striking ``the date of 
     the enactment of this paragraph'' and inserting ``February 
     10, 1996,''.
       (6) Section 1206(5) is amended by striking ``the date of 
     the enactment of the National Defense Authorization Act for 
     Fiscal Year 2000,'' and inserting ``October 5, 1999,''.
       (7) Section 1405(c)(1) is amended by striking ``the date of 
     the enactment of the National Defense Authorization Act for 
     Fiscal Year 1995,'' and inserting ``October 5, 1994,''.
       (8) Section 1407(f)(2) is amended by striking ``the date of 
     the enactment of this subsection--'' and inserting ``October 
     30, 2000--''.
       (9) Section 1408(d)(6) is amended by striking ``the date of 
     the enactment of this paragraph'' and inserting ``August 22, 
     1996,''.
       (10) Section 1511(b) is amended by striking ``the date of 
     the enactment of this chapter.'' and inserting ``February 10, 
     1996.''.
       (11) Section 2461a(b)(1) is amended by striking ``the date 
     of the enactment of this section,'' and inserting ``October 
     30, 2000,''.
       (12) Section 4021(c)(1) is amended by striking ``the date 
     of the enactment of this section.'' and inserting ``November 
     29, 1989.''.
       (13) Section 6328(a) is amended by striking ``the date of 
     the enactment of this section'' and inserting ``February 10, 
     1996,''.
       (14) Section 7439 is amended--
       (A) in subsection (a)(2), by striking ``one year after the 
     date of the enactment of this section,'' and inserting 
     ``November 18, 1998,'';
       (B) in subsection (b)(1), by striking ``the date of the 
     enactment of this section,'' and inserting ``November 18, 
     1997,'';
       (C) in subsection (b)(2), by striking ``the end of the one-
     year period beginning on the date of the enactment of this 
     section.'' and inserting ``November 18, 1998.''; and
       (D) in subsection (f)(2), by striking ``the date of the 
     enactment of this section'' and inserting ``November 18, 
     1997,''.
       (15) Section 12533 is amended--
       (A) in each of subsections (b) and (c)(1), by striking 
     ``the date of the enactment of this section.'' and inserting 
     ``November 18, 1997.''; and
       (B) in each of subsections (c)(2) and (d), by striking 
     ``the date of the enactment of this section'' and inserting 
     ``November 18, 1997,''.
       (16) Section 12733(3) is amended--
       (A) in subparagraph (B), by striking ``the date of the 
     enactment of the Floyd D. Spence National Defense 
     Authorization Act for Fiscal Year 2001;'' and inserting 
     ``October 30, 2000;''; and
       (B) in subparagraph (C), by striking ``the date of the 
     enactment of the Floyd D. Spence National Defense 
     Authorization Act for Fiscal Year 2001'' and inserting 
     ``October 30, 2000,''.
       (d) Amendments Relating to Change in Title of McKinney-
     Vento Homeless Assistance Act.--The following provisions are 
     each amended by striking ``Stewart B. McKinney Homeless 
     Assistance Act'' and inserting ``McKinney-Vento Homeless 
     Assistance Act'':
       (1) Sections 2814(j)(2), 2854a(d)(2), and 2878(d)(4) of 
     title 10, United States Code.
       (2) Sections 2905(b)(6)(A) and 2910(11) of the Defense Base 
     Closure and Realignment Act of 1990 (part A of title XXIX of 
     Public Law 101-510; 10 U.S.C. 2687 note).
       (3) Section 204(b)(6)(A) of the Defense Authorization 
     Amendments and Base Closure and Realignment Act (Public Law 
     100-526; 10 U.S.C. 2687 note).
       (4) Section 2915(c)(10) of the National Defense 
     Authorization Act for Fiscal Year 1994 (10 U.S.C. 2687 note).
       (5) Section 2(e)(4)(A) of the Base Closure Community 
     Redevelopment and Homeless Assistance Act of 1994 (Public Law 
     103-421; 10 U.S.C. 2687 note).
       (6) Section 1053(a) of the National Defense Authorization 
     Act for Fiscal Year 1997 (110 Stat. 2650).
       (e) Amendments To Repeal Obsolete Provisions.--Title 10, 
     United States Code, is further amended as follows:
       (1) Section 1144 is amended--
       (A) in subsection (a)(3), by striking the second sentence; 
     and
       (B) by striking subsection (e).
       (2) Section 1581(b) is amended--
       (A) by striking ``(1)'' and all that follows through ``The 
     Secretary of Defense shall deposit'' and inserting ``The 
     Secretary of Defense shall deposit''; and
       (B) by striking ``on or after December 5, 1991,''.
       (3) Subsection (e) of section 1722 is repealed.
       (4) Subsection 1732(a) is amended by striking the second 
     sentence.
       (5) Section 1734 is amended--
       (A) in subsection (b)(1)(B), by striking ``on and after 
     October 1, 1991,''; and
       (B) in subsection (e)(2), by striking the last sentence.
       (6)(A) Section 1736 is repealed.
       (B) The table of sections at the beginning of subchapter 
     III of chapter 87 is amended by striking the item relating to 
     section 1736.
       (7)(A) Sections 1762 and 1764 are repealed.
       (B) The table of sections at the beginning of subchapter V 
     of chapter 87 is amended by striking the items relating to 
     sections 1762 and 1764.
       (8) Section 2112(a) is amended by striking ``, with the 
     first class graduating not later than September 21, 1982''.
       (9) Section 2218(d)(1) is amended by striking ``for fiscal 
     years after fiscal year 1993''.
       (10)(A) Section 2468 is repealed.
       (B) The table of sections at the beginning of chapter 146 
     is amended by striking the item relating to section 2468.
       (11) Section 2832 is amended--
       (A) by striking ``(a)'' before ``The Secretary of 
     Defense''; and
       (B) by striking subsection (b).
       (12) Section 7430(b)(2) is amended--
       (A) by striking ``at a price less than'' and all that 
     follows through ``the current sales price'' and inserting 
     ``at a price less than the current sales price'';
       (B) by striking ``; or'' and inserting a period; and
       (C) by striking subparagraph (B).
       (f) Public Law 106-398.--Effective as of October 30, 2000, 
     and as if included therein as enacted, the Floyd D. Spence 
     National Defense Authorization Act for Fiscal Year 2001 (as 
     enacted into law by Public Law 106-398) is amended as 
     follows:
       (1) Section 525(b)(1) (114 Stat. 1654A-109) is amended by 
     striking ``subsection (c)'' and inserting ``subsections (a) 
     and (b)''.

[[Page 25245]]

       (2) Section 1152(c)(2) (114 Stat. 1654A-323) is amended by 
     inserting ``inserting'' after ``and''.
       (g) Public Law 106-65.--Effective as of October 5, 1999, 
     and as if included therein as enacted, the National Defense 
     Authorization Act for Fiscal Year 2000 (Public Law 106-65) is 
     amended as follows:
       (1) Section 531(b)(2)(A) (113 Stat. 602) is amended by 
     inserting ``in subsection (a),'' after ``(A)''.
       (2) Section 549(a)(2) (113 Stat. 611) is amended by 
     striking ``such chapter'' and inserting ``chapter 49 of title 
     10, United States Code,''.
       (3) Section 576(a)(3) (10 U.S.C. 1501 note; 113 Stat. 625) 
     is amended by adding a period at the end.
       (4) Section 577(a)(2) (113 Stat. 625) is amended by 
     striking ``bad conduct'' in the first quoted matter and 
     inserting ``bad-conduct''.
       (5) Section 811(d)(3)(B)(v) (10 U.S.C. 2302 note; 113 Stat. 
     709) is amended by striking ``Mentor-Protegee'' and inserting 
     ``Mentor-Protege''.
       (6) Section 1052(b)(1) (113 Stat. 764) is amended by 
     striking `` `The Department'' and inserting ``the 
     `Department''.
       (7) Section 1053(a)(5) (10 U.S.C. 113 note; 113 Stat. 764) 
     is amended by inserting ``and'' before ``Marines''.
       (8) Section 1402(f)(2)(A) (22 U.S.C. 2778 note; 113 Stat. 
     799) is amended by striking ``3201 note'' and inserting 
     ``6305(4)''.
       (9) Section 2902(d) (10 U.S.C. 111 note; 113 Stat. 882) is 
     amended by striking ``section 2871(b)'' and inserting 
     ``section 2881(b)''.
       (h) Public Law 102-484.--The National Defense Authorization 
     Act for Fiscal Year 1993 (Public Law 102-484) is amended as 
     follows:
       (1) Section 3161(c)(6)(C) (42 U.S.C. 7274h(c)(6)(C)) is 
     amended by striking ``title IX of the Public Works and 
     Economic Development Act of 1965 (42 U.S.C. 3241 et seq.)'' 
     and inserting ``title II of the Public Works and Economic 
     Development Act of 1965 (42 U.S.C. 3141 et seq.)''.
       (2) Section 4416(b)(1) (10 U.S.C. 12681 note) is amended by 
     striking ``force reduction period'' and inserting ``force 
     reduction transition period''.
       (3) Section 4461(5) (10 U.S.C. 1143 note) is amended by 
     adding a period at the end.
       (i) Other Laws.--
       (1) Section 1083(c) of the National Defense Authorization 
     Act for Fiscal Year 1998 (Public Law 105-85; 10 U.S.C. 113 
     note) is amended by striking ``Names'' and inserting 
     ``Name''.
       (2) Section 845(d)(1)(B)(ii) of the National Defense 
     Authorization Act for Fiscal Year 1994 (Public Law 103-160; 
     10 U.S.C. 2371 note) is amended by inserting a closed 
     parenthesis after ``41 U.S.C. 414(3))''.
       (3) Section 1123(b) of the National Defense Authorization 
     Act for Fiscal Years 1990 and 1991 (Public Law 101-189; 103 
     Stat. 1556) is amended by striking ``Armed Forces Staff 
     College'' each place it appears and inserting ``Joint Forces 
     Staff College''.
       (4) Section 1412(g)(2)(C)(vii) of the Department of Defense 
     Authorization Act, 1986 (50 U.S.C. 1521(g)(2)(C)(vii)) is 
     amended by striking ``(c)(3)'' and inserting ``(c)(4)''.
       (5) Section 8336 of title 5, United States Code, is 
     amended--
       (A) in subsection (d)(2), by striking ``subsection (o)'' 
     and inserting ``subsection (p)''; and
       (B) by redesignating the second subsection (o), added by 
     section 1152(a)(2) of the Floyd D. Spence National Defense 
     Authorization Act for Fiscal Year 2001 (as enacted by Public 
     Law 106-398; 114 Stat. 1654A-320), as subsection (p).
       (6) Section 9001(3) of title 5, United States Code, is 
     amended by striking ``and'' at the end of subparagraph (A) 
     and inserting ``or''.
       (7) Section 318(h)(3) of title 37, United States Code, is 
     amended by striking ``subsection (a)'' and inserting 
     ``subsection (b)''.
       (8) Section 3695(a)(5) of title 38, United States Code, is 
     amended by striking ``1610'' and inserting ``1611''.
       (9) Section 13(b) of the Peace Corps Act (22 U.S.C. 
     2512(b)) is amended by striking ``, subject to section 5532 
     of title 5, United States Code''.
       (10) Section 127(g)(6) of the Trade Deficit Review 
     Commission Act (19 U.S.C. 2213 note), as amended by section 
     311(b) of the Legislative Branch Appropriations Act, 2000 
     (Public Law 106-57; 113 Stat. 428), is amended--
       (A) by striking ``authorities.--'' and all that follows 
     through ``An individual'' and inserting ``authorities.--An 
     individual''; and
       (B) by striking subparagraph (B).
       (11) Section 28 of the Atomic Energy Act of 1954 (42 U.S.C. 
     2038) is amended in the last sentence by striking '', subject 
     to'' and all that follows through the period at the end and 
     inserting a period.
       (12) Section 3212 of the National Nuclear Security 
     Administration Act (50 U.S.C. 2402) is amended by 
     redesignating the second subsection (e), added by section 
     3159(a) of the Floyd D. Spence National Defense Authorization 
     Act for Fiscal Year 2001 (as enacted by Public Law 106-398; 
     114 Stat. 1654A-469), as subsection (f).
       (j) Coordination With Other Amendments.--For purposes of 
     applying amendments made by provisions of this Act other than 
     provisions of this section, this section shall be treated as 
     having been enacted immediately before the other provisions 
     of this Act.

     SEC. 1049. TERMINATION OF REFERENDUM REQUIREMENT REGARDING 
                   CONTINUATION OF MILITARY TRAINING ON ISLAND OF 
                   VIEQUES, PUERTO RICO, AND IMPOSITION OF 
                   ADDITIONAL CONDITIONS ON CLOSURE OF TRAINING 
                   RANGE.

       (a) In General.--Title XV of the Floyd D. Spence National 
     Defense Authorization Act for Fiscal Year 2001 (as enacted 
     into law by Public Law 106-398; 114 Stat. 1654A-348) is 
     amended by striking sections 1503, 1504, and 1505 and 
     inserting the following new sections:

     ``SEC. 1503. CONDITIONS ON CLOSURE OF VIEQUES NAVAL TRAINING 
                   RANGE.

       ``(a) Conditional Authority to Close.--The Secretary of the 
     Navy may close the Vieques Naval Training Range on the island 
     of Vieques, Puerto Rico, and discontinue training at that 
     range only if the Secretary certifies to the President and 
     Congress that both of the following conditions are satisfied:
       ``(1) One or more alternative training facilities exist 
     that, individually or collectively, provide an equivalent or 
     superior level of training for units of the Navy and the 
     Marine Corps stationed or deployed in the eastern United 
     States.
       ``(2) The alternative facility or facilities are available 
     and fully capable of supporting such Navy and Marine Corps 
     training immediately upon cessation of training on Vieques.
       ``(b) Consultation Required.--In determining whether the 
     conditions specified in paragraphs (1) and (2) of subsection 
     (a) are satisfied, the Secretary of the Navy shall take into 
     account the written views and recommendations of the Chief of 
     Naval Operations and the Commandant of the Marine Corps. The 
     Secretary shall submit these written views and 
     recommendations to Congress with the certification submitted 
     under subsection (a).

     ``SEC. 1504. CLOSURE OF VIEQUES NAVAL TRAINING RANGE AND 
                   DISPOSAL OF CLOSED RANGE.

       ``(a) Termination of Training and Related Closures.--If the 
     conditions specified in section 1503(a) are satisfied and the 
     Secretary of the Navy makes a determination to close the 
     Vieques Naval Training Range and discontinue live-fire 
     training at that range the Secretary of the Navy shall--
       ``(1) terminate all Navy and Marine Corps training 
     operations on the island of Vieques;
       ``(2) terminate all Navy and Marine Corps operations at 
     Naval Station Roosevelt Roads, Puerto Rico, that are related 
     exclusively to the use of the training range on the island of 
     Vieques by the Navy and the Marine Corps; and
       ``(3) close the Navy installations and facilities on the 
     island of Vieques, other than properties exempt from 
     conveyance and transfer under section 1506.
       ``(b) Transfer to Secretary of the Interior.--Upon 
     termination of Navy and Marine Corps training operations on 
     the island of Vieques, the Secretary of the Navy shall 
     transfer, without reimbursement, to the administrative 
     jurisdiction of the Secretary of the Interior--
       ``(1) the Live Impact Area on the island of Vieques;
       ``(2) all Department of Defense real properties on the 
     eastern side of the island that are identified as 
     conservation zones; and
       ``(3) all other Department of Defense real properties on 
     the eastern side of the island.
       ``(c) Administration by Secretary of the Interior.--
       ``(1) Retention and administration.--The Secretary of the 
     Interior shall retain, and may not dispose of any of, the 
     properties transferred under paragraphs (2) and (3) of 
     subsection (b) and shall administer such properties as 
     wildlife refuges under the National Wildlife Refuge System 
     Administration Act of 1966 (16 U.S.C. 668dd et seq.) pending 
     the enactment of a law that addresses the disposition of such 
     properties.
       ``(2) Live impact area.--The Secretary of the Interior 
     shall assume responsibility for the administration of the 
     Live Impact Area upon transfer under paragraph (1) of 
     subsection (b), administer that area as a wilderness area 
     under the Wilderness Act (16 U.S.C. 1131 et seq.), and deny 
     public access to the area.
       ``(d) Live Impact Area Defined.--In this section, the term 
     `Live Impact Area' means the parcel of real property, 
     consisting of approximately 900 acres (more or less), on the 
     island of Vieques that is designated by the Secretary of the 
     Navy for targeting by live ordnance in the training of forces 
     of the Navy and Marine Corps.''.
       (b) Conforming Amendment.--Section 1507(c) of such Act (114 
     Stat. 1654A-355) is amended by striking ``the issuance of a 
     proclamation described in section 1504(a) or''.
                       Subtitle F--Other Matters

     SEC. 1061. ASSISTANCE FOR FIREFIGHTERS.

       (a) Authorization of Appropriations.--Subsection (e) of 
     section 33 of the Federal Fire Prevention and Control Act of 
     1974 (15 U.S.C. 2229) is amended to read as follows:
       ``(e) Authorization of Appropriations.--
       ``(1) In general.--There are authorized to be appropriated 
     $900,000,000 for each of the fiscal years 2002 through 2004 
     for the purposes of this section.
       ``(2) Administrative expenses.--Of the funds appropriated 
     pursuant to paragraph (1) for a fiscal year, the Director may 
     use not more than three percent of the funds to cover 
     salaries and expenses and other administrative costs incurred 
     by the Director to operate the office established under 
     subsection (b)(2) and make grants and provide assistance 
     under this section.''.
       (b) Response to Terrorism or Use of Weapons of Mass 
     Destruction.--Subsection (b)(3) of such section is amended--
       (1) in subparagraph (B), by inserting ``(including response 
     to a terrorism incident or use of a weapon of mass 
     destruction)'' after ``response'';
       (2) in subparagraph (H), by striking ``and monitoring'' and 
     inserting ``, monitoring, and response to a terrorism 
     incident or use of a weapon of mass destruction''; and
       (3) in subparagraph (I), by inserting ``, including 
     protective equipment to respond to a terrorism incident or 
     the use of a weapon of mass

[[Page 25246]]

     destruction'' after ``personnel'' the second place it 
     appears.
       (c) Technical Amendments.--Subsection (b)(3) of such 
     section is further amended--
       (1) by striking ``the grant funds--'' in the matter 
     preceding subparagraph (A) and inserting ``the grant funds 
     for one or more of the following purposes:'';
       (2) by capitalizing the initial letter of the first word of 
     each of subparagraphs (A) through (N);
       (3) by striking the semicolon at the end of each of 
     subparagraphs (A) through (L) and inserting a period; and
       (4) by striking ``; or'' at the end of subparagraph (M) and 
     inserting a period.

     SEC. 1062. EXTENSION OF TIMES FOR COMMISSION ON THE FUTURE OF 
                   THE UNITED STATES AEROSPACE INDUSTRY TO REPORT 
                   AND TO TERMINATE.

       (a) Deadline for Report.--Subsection (d)(1) of section 1092 
     of the Floyd D. Spence National Defense Authorization Act for 
     Fiscal Year 2001 (as enacted into law by Public Law 106-398; 
     114 Stat. 1654A-302) is amended by striking ``March 1, 2002'' 
     and inserting ``one year after the date of the first official 
     meeting of the Commission''.
       (b) Termination of Commission.--Subsection (g) of such 
     section is amended by striking ``30 days'' and inserting ``60 
     days''.

     SEC. 1063. APPROPRIATIONS TO RADIATION EXPOSURE COMPENSATION 
                   TRUST FUND.

       Section 3(e) of the Radiation Exposure Compensation Act (42 
     U.S.C. 2210 note) is amended to read as follows:
       ``(e) Appropriation.--
       ``(1) In general.--There are appropriated to the Fund, out 
     of any money in the Treasury not otherwise appropriated, for 
     fiscal year 2002 and each fiscal year thereafter through 
     fiscal year 2011, such sums as may be necessary, not to 
     exceed the applicable maximum amount specified in paragraph 
     (2), to carry out the purposes of the Fund.
       ``(2) Limitation.--Appropriation of amounts to the Fund 
     pursuant to paragraph (1) is subject to the following maximum 
     amounts:
       ``(A) For fiscal year 2002, $172,000,000.
       ``(B) For fiscal year 2003, $143,000,000.
       ``(C) For fiscal year 2004, $107,000,000.
       ``(D) For fiscal year 2005, $65,000,000.
       ``(E) For fiscal year 2006, $47,000,000.
       ``(F) For fiscal year 2007, $29,000,000.
       ``(G) For fiscal year 2008, $29,000,000.
       ``(H) For fiscal year 2009, $23,000,000.
       ``(I) For fiscal year 2010, $23,000,000.
       ``(J) For fiscal year 2011, $17,000,000.''.

     SEC. 1064. WAIVER OF VEHICLE WEIGHT LIMITS DURING PERIODS OF 
                   NATIONAL EMERGENCY.

       Section 127 of title 23, United States Code, is amended by 
     adding at the end the following new subsection:
       ``(h) Waiver for a Route in State of Maine During Periods 
     of National Emergency.--
       ``(1) In general.--Notwithstanding any other provision of 
     this section, the Secretary, in consultation with the 
     Secretary of Defense, may waive or limit the application of 
     any vehicle weight limit established under this section with 
     respect to the portion of Interstate Route 95 in the State of 
     Maine between Augusta and Bangor for the purpose of making 
     bulk shipments of jet fuel to the Air National Guard Base at 
     Bangor International Airport during a period of national 
     emergency in order to respond to the effects of the national 
     emergency.
       ``(2) Applicability.--Emergency limits established under 
     paragraph (1) shall preempt any inconsistent State vehicle 
     weight limits.''.

     SEC. 1065. REPAIR, RESTORATION, AND PRESERVATION OF LAFAYETTE 
                   ESCADRILLE MEMORIAL, MARNES-LA-COQUETTE, 
                   FRANCE.

       (a) Authority To Make Grant.--(1) Subject to subsections 
     (b) and (c), the Secretary of the Air Force may make a grant 
     to the Lafayette Escadrille Memorial Foundation, Inc., to be 
     used solely for the purpose of repairing, restoring, and 
     preserving the structure, plaza, and surrounding grounds of 
     the Lafayette Escadrille Memorial in Marnes la-Coquette, 
     France.
       (2) The amount of the grant may not exceed $2,000,000.
       (b) Contribution of Funds by France.--The Secretary of the 
     Air Force may not make the grant authorized by subsection (a) 
     until 30 days after the Secretary submits to Congress a 
     report indicating that the government of France has also 
     contributed funds toward the repair, restoration, and 
     preservation of the memorial. The report shall specify the 
     amount of the funds contributed by the government of France 
     and describe the purpose for which the funds are to be used.
       (c) Conditions on Receipt of Grant.--(1) The grant under 
     subsection (a) shall be subject to the following conditions:
       (A) That the Lafayette Escadrille Memorial Foundation 
     submit to the Secretary of the Air Force an annual report, 
     until the grant funds are fully expended, containing an 
     itemized accounting of expenditures of grant funds and 
     describing the progress made to repair, restore, and preserve 
     the memorial.
       (B) That the Secretary and the Comptroller General of the 
     United States, or any of their duly authorized 
     representatives, be given access for the purpose of audit and 
     examination to any books, documents, papers, and records of 
     the Lafayette Escadrille Memorial Foundation.
       (C) That none of the grant funds be used for remuneration 
     of any entity or individual associated with fundraising for 
     any project in connection with the repair, restoration, and 
     preservation of the memorial.
       (2) The Secretary shall transmit to Congress a copy of each 
     report received under paragraph (1)(A).
       (d) Report on Architectural and Engineering Costs.--Not 
     later than one year after the date of the enactment of this 
     Act, the Secretary of the Air Force shall submit to Congress 
     a report containing an estimate of the architectural and 
     engineering costs to be incurred to fully repair, restore, 
     and preserve the memorial and ensure the long-term structural 
     integrity of the memorial. The estimate shall be prepared by 
     a private United States entity, under contract with the 
     Secretary. Funds for the contract shall also be derived from 
     the amount specified in subsection (e).
       (e) Funds for Grant.--Funds for the grant under subsection 
     (a) shall be derived only from amounts authorized to be 
     appropriated under section 301(a)(4) for operation and 
     maintenance for the Air Force.
                  TITLE XI--CIVILIAN PERSONNEL MATTERS

          Subtitle A--Department of Defense Civilian Personnel

Sec. 1101. Personnel pay and qualifications authority for Department of 
              Defense Pentagon Reservation civilian law enforcement and 
              security force.
Sec. 1102. Pilot program for payment of retraining expenses.
Sec. 1103. Authority of civilian employees to act as notaries.
Sec. 1104. Authority to appoint certain health care professionals in 
              the excepted service.

          Subtitle B--Civilian Personnel Management Generally

Sec. 1111. Authority to provide hostile fire pay.
Sec. 1112. Payment of expenses to obtain professional credentials.
Sec. 1113. Parity in establishment of wage schedules and rates for 
              prevailing rate employees.
Sec. 1114. Modification of limitation on premium pay.
Sec. 1115. Participation of personnel in technical standards 
              development activities.
Sec. 1116. Retention of travel promotional items.
Sec. 1117. Applicability of certain laws to certain individuals 
              assigned to work in the Federal Government.

              Subtitle C--Intelligence Civilian Personnel

Sec. 1121. Authority to increase maximum number of positions in the 
              Defense Intelligence Senior Executive Service.

               Subtitle D--Matters Relating To Retirement

Sec. 1131. Improved portability of retirement coverage for employees 
              moving between civil service employment and employment by 
              nonappropriated fund instrumentalities.
Sec. 1132. Federal employment retirement credit for nonappropriated 
              fund instrumentality service.
Sec. 1133. Modification of limitations on exercise of voluntary 
              separation incentive pay authority and voluntary early 
              retirement authority.
          Subtitle A--Department of Defense Civilian Personnel

     SEC. 1101. PERSONNEL PAY AND QUALIFICATIONS AUTHORITY FOR 
                   DEPARTMENT OF DEFENSE PENTAGON RESERVATION 
                   CIVILIAN LAW ENFORCEMENT AND SECURITY FORCE.

       Section 2674(b) of title 10, United States Code, is 
     amended--
       (1) by inserting ``(1)'' before the text in the first 
     paragraph of that subsection;
       (2) by redesignating paragraphs (1) and (2) as 
     subparagraphs (A) and (B), respectively; and
       (3) by adding at the end the following new paragraph:
       ``(2) For positions for which the permanent duty station is 
     the Pentagon Reservation, the Secretary, in his sole and 
     exclusive discretion, may without regard to the pay 
     provisions of title 5, fix the rates of basic pay for such 
     positions occupied by civilian law enforcement and security 
     personnel appointed under the authority of this section so as 
     to place such personnel on a comparable basis with personnel 
     of other similar Federal law enforcement and security 
     organizations within the vicinity of the Pentagon 
     Reservation, not to exceed the basic pay for personnel 
     performing similar duties in the United States Secret Service 
     Uniformed Division or the United States Park Police.''.

     SEC. 1102. PILOT PROGRAM FOR PAYMENT OF RETRAINING EXPENSES.

       (a) Authority To Carry Out Pilot Program.--(1) The 
     Secretary of Defense may establish a pilot program to 
     facilitate the reemployment of eligible employees of the 
     Department of Defense who are involuntarily separated due to 
     a reduction in force, relocation as a result of a transfer of 
     function, realignment, or change of duty station. Under the 
     pilot program, the Secretary may pay retraining incentives to 
     encourage non-Federal employers to hire and retain such 
     eligible employees.
       (2) Under the pilot program, the Secretary may enter into 
     an agreement with a non-Federal employer under which the 
     employer agrees--
       (A) to employ an eligible employee for at least 12 months 
     at a salary that is mutually agreeable to the employer and 
     the eligible employee; and
       (B) to certify to the Secretary the amount of costs 
     incurred by the employer for any necessary training (as 
     defined by the Secretary) provided to such eligible employee 
     in connection with the employment.

[[Page 25247]]

       (3) The Secretary may pay a retraining incentive to the 
     non-Federal employer upon the employee's completion of 12 
     months of continuous employment with that employer. The 
     Secretary shall determine the amount of the incentive, except 
     that in no event may such amount exceed the lesser of the 
     amount certified with respect to such eligible employee under 
     paragraph (2)(B), or $10,000.
       (4) In a case in which an eligible employee does not remain 
     employed by the non-Federal employer for at least 12 months, 
     the Secretary may pay to the employer a prorated amount of 
     what would have been the full retraining incentive if the 
     eligible employee had remained employed for such 12-month 
     period.
       (b) Eligible Employees.--For purposes of this section, an 
     eligible employee is an employee of the Department of 
     Defense, serving under an appointment without time 
     limitation, who has been employed by the Department for a 
     continuous period of at least 12 months and who has been 
     given notice of separation pursuant to a reduction in force, 
     relocation as a result of a transfer of function, 
     realignment, or change of duty station, except that such term 
     does not include--
       (1) a reemployed annuitant under the retirement systems 
     described in subchapter III of chapter 83 of title 5, United 
     States Code, or chapter 84 of such title, or another 
     retirement system for employees of the Federal Government;
       (2) an employee who, upon separation from Federal service, 
     is eligible for an immediate annuity under subchapter III of 
     chapter 83 of such title, or subchapter II of chapter 84 of 
     such title; or
       (3) an employee who is eligible for disability retirement 
     under any of the retirement systems referred to in paragraph 
     (1).
       (c) Duration.--No incentive may be paid under the pilot 
     program for training commenced after September 30, 2005.
       (d) Definitions.--In this section:
       (1) The term ``non-Federal employer'' means an employer 
     that is not an Executive agency, as defined in section 105 of 
     title 5, United States Code, or an entity in the legislative 
     or judicial branch of the Federal Government.
       (2) The term ``reduction in force'' has the meaning of that 
     term as used in chapter 35 of such title 5.
       (3) The term ``realignment'' has the meaning given that 
     term in section 2910 of the Defense Base Closure and 
     Realignment Act of 1990 (title XXIX of Public Law 101-510; 10 
     U.S.C. 2687 note).

     SEC. 1103. AUTHORITY OF CIVILIAN EMPLOYEES TO ACT AS 
                   NOTARIES.

       (a) Clarification of Status of Civilian Attorneys Eligible 
     To Act as Notaries.--Subsection (b) of section 1044a of title 
     10, United States Code, is amended by striking ``legal 
     assistance officers'' in paragraph (2) and inserting ``legal 
     assistance attorneys''.
       (b) Other Civilian Employees Designated To Act as Notaries 
     Abroad.--Such subsection is further amended by adding at the 
     end the following new paragraph:
       ``(5) For the performance of notarial acts at locations 
     outside the United States, all employees of a military 
     department or the Coast Guard who are designated by 
     regulations of the Secretary concerned or by statute to have 
     those powers for exercise outside the United States.''.

     SEC. 1104. AUTHORITY TO APPOINT CERTAIN HEALTH CARE 
                   PROFESSIONALS IN THE EXCEPTED SERVICE.

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

     ``Sec. 1599c. Appointment in excepted service of certain 
       health care professionals

       ``(a) Authority.--The Secretary of Defense may appoint in 
     the excepted service without regard to the provisions of 
     subchapter I of chapter 33 of title 5 (except as provided in 
     section 3328 of such title and in subsection (c) of this 
     section) an individual who has--
       ``(1) a recognized degree or certificate from an accredited 
     institution in a covered health care profession or 
     occupation; and
       ``(2) successfully completed a clinical education program 
     affiliated with the Department of Defense or the Department 
     of Veterans Affairs.
       ``(b) Covered Health Care Profession or Occupation.--For 
     purposes of subsection (a), a covered health care profession 
     or occupation is any of the following:
       ``(1) Physician.
       ``(2) Dentist.
       ``(3) Podiatrist.
       ``(4) Optometrist.
       ``(5) Nurse.
       ``(6) Physician assistant.
       ``(7) Expanded-function dental auxiliary.
       ``(c) Preferences in Hiring.--In using the authority 
     provided by this section, the Secretary shall apply the 
     principles of preference for the hiring of veterans and other 
     individuals established in subchapter I of chapter 33 of 
     title 5.
       ``(d) Probationary Period.--There shall be an initial 
     probationary period of two years for appointments made under 
     the authority of this section.
       ``(e) Promotions and Advancement.--(1) Promotions of 
     individuals appointed under the authority of this section 
     shall be made only after an examination performed in 
     accordance with regulations prescribed by the Secretary.
       ``(2) Advancement of such individuals within a pay grade 
     may be made in increments of the minimum rate of basic pay of 
     the grade in accordance with regulations prescribed by the 
     Secretary.
       ``(f) Review of Records by Board.--The record of each 
     individual appointed under the authority of this section in 
     the medical, dental, and nursing services shall be reviewed 
     periodically by a board, which shall be appointed in 
     accordance with regulations prescribed by the Secretary. If 
     such board finds that such individual is not fully qualified 
     and satisfactory, such individual shall be separated from 
     service.
       ``(g) Adjustment of Pay.--In accordance with regulations 
     prescribed by the Secretary, the grade and annual rate of 
     basic pay of an individual appointed under this section whose 
     level of assignment is changed from a level of assignment in 
     which the grade level is based on both the nature of the 
     assignment and qualifications may be adjusted to the grade 
     and annual rate of basic pay otherwise appropriate.
       ``(h) Appointment to Additional Positions.--(1) The 
     Secretary may use the authority of this subsection (subject 
     to paragraph (2)) to establish the qualifications for, and 
     appoint and advance an individual in the Department of 
     Defense as--
       ``(A) a clinical or counseling psychologist (if such 
     psychologist holds a diploma as a diplomate in psychology 
     from an accrediting authority approved by the Secretary);
       ``(B) a certified or registered respiratory therapist;
       ``(C) a licensed physical therapist;
       ``(D) a licensed practical or vocational nurse;
       ``(E) a pharmacist; or
       ``(F) an occupational therapist.
       ``(2) Notwithstanding any other provision of this title or 
     any other law, all matters relating to adverse actions, 
     disciplinary actions, and grievance procedures involving an 
     individual appointed to a position described in paragraph (1) 
     (including such actions and procedures involving an employee 
     in a probationary status) shall be resolved under the 
     provisions of title 5 as though such individual had been 
     appointed under such title.
       ``(i) Reinstatement.--In determining eligibility for 
     reinstatement in the civil service of individuals appointed 
     to positions in the Department of Defense under this section 
     who at the time of appointment have a civil service status 
     and whose employment in the Department of Defense is 
     terminated, the period of service performed in the Department 
     shall be included in computing the period of service under 
     applicable civil service regulations.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of such chapter is amended by adding at the end the 
     following new item:

``1599c. Appointment in excepted service of certain health care 
              professionals.''.
          Subtitle B--Civilian Personnel Management Generally

     SEC. 1111. AUTHORITY TO PROVIDE HOSTILE FIRE PAY.

       (a) In General.--Subchapter IV of chapter 59 of title 5, 
     United States Code, is amended by adding at the end the 
     following new section:

     ``Sec. 5949. Hostile fire pay

       ``(a) The head of an Executive agency may pay an employee 
     hostile fire pay at the rate of $150 for any month in which 
     the employee was--
       ``(1) subject to hostile fire or explosion of hostile 
     mines;
       ``(2) on duty in an area in which the employee was in 
     imminent danger of being exposed to hostile fire or explosion 
     of hostile mines and in which, during the period on duty in 
     that area, other employees were subject to hostile fire or 
     explosion of hostile mines; or
       ``(3) killed, injured, or wounded by hostile fire, 
     explosion of a hostile mine, or any other hostile action.
       ``(b) An employee covered by subsection (a)(3) who is 
     hospitalized for the treatment of his or her injury or wound 
     may be paid hostile fire pay under this section for not more 
     than three additional months during which the employee is so 
     hospitalized.
       ``(c) An employee may be paid hostile fire pay under this 
     section in addition to other pay and allowances to which 
     entitled, except that an employee may not be paid hostile 
     fire pay under this section for periods of time during which 
     the employee receives payment under section 5925 of this 
     title because of exposure to political violence or payment 
     under section 5928 of this title.''.
       (b) Technical Amendment.--The table of sections at the 
     beginning of chapter 59 of such title is amended by inserting 
     at the end the following new item:

``5949. Hostile fire pay.''.
       (c) Effective Date.--This provision is effective as if 
     enacted into law on September 11, 2001, and may be applied 
     with respect to any hostile action that took place on or 
     after that date.

     SEC. 1112. PAYMENT OF EXPENSES TO OBTAIN PROFESSIONAL 
                   CREDENTIALS.

       (a) In General.--Chapter 57 of title 5, United States Code, 
     is amended by adding at the end the following new section:

     ``Sec. 5757. Payment of expenses to obtain professional 
       credentials

       ``(a) An agency may use appropriated funds or funds 
     otherwise available to the agency to pay for--
       ``(1) expenses for employees to obtain professional 
     credentials, including expenses for professional 
     accreditation, State-imposed and professional licenses, and 
     professional certification; and
       ``(2) examinations to obtain such credentials.
       ``(b) The authority under subsection (a) may not be 
     exercised on behalf of any employee occupying or seeking to 
     qualify for appointment to any position that is excepted from 
     the competitive service because of the confidential, policy-

[[Page 25248]]

     determining, policy-making, or policy-advocating character of 
     the position.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of such chapter is amended by adding at the end the 
     following new item:

``5757. Payment of expenses to obtain professional credentials.''.

     SEC. 1113. PARITY IN ESTABLISHMENT OF WAGE SCHEDULES AND 
                   RATES FOR PREVAILING RATE EMPLOYEES.

       (a) In General.--Paragraph (2) of section 5343(d) of title 
     5, United States Code, is amended to read as follows:
       ``(2) When the lead agency determines that there is a 
     number of comparable positions in private industry 
     insufficient to establish the wage schedules and rates, such 
     agency shall establish the wage schedules and rates on the 
     basis of--
       ``(A) local private industry rates; and
       ``(B) rates paid for comparable positions in private 
     industry in the nearest wage area that such agency determines 
     is most similar in the nature of its population, employment, 
     manpower, and industry to the local wage area for which the 
     wage survey is being made.''.
       (b) Effective Date.--Wage adjustments made pursuant to the 
     amendment made by this section shall take effect in each 
     applicable wage area on the first normal effective date of 
     the applicable wage survey adjustment that occurs after the 
     date of the enactment of this Act.

     SEC. 1114. MODIFICATION OF LIMITATION ON PREMIUM PAY.

       (a) In General.--Section 5547 of title 5, United States 
     Code, is amended to read as follows:

     ``Sec. 5547. Limitation on premium pay

       ``(a) An employee may be paid premium pay under sections 
     5542, 5545(a), (b), and (c), 5545a, and 5546(a) and (b) only 
     to the extent that the payment does not cause the aggregate 
     of basic pay and such premium pay for any pay period for such 
     employee to exceed the greater of--
       ``(1) the maximum rate of basic pay payable for GS-15 
     (including any applicable locality-based comparability 
     payment under section 5304 or similar provision of law and 
     any applicable special rate of pay under section 5305 or 
     similar provision of law); or
       ``(2) the rate payable for level V of the Executive 
     Schedule.
       ``(b)(1) Subject to regulations prescribed by the Office of 
     Personnel Management, subsection (a) shall not apply to an 
     employee who is paid premium pay by reason of work in 
     connection with an emergency (including a wildfire emergency) 
     that involves a direct threat to life or property, including 
     work performed in the aftermath of such an emergency.
       ``(2) Notwithstanding paragraph (1), no employee referred 
     to in such paragraph may be paid premium pay under the 
     provisions of law cited in subsection (a) if, or to the 
     extent that, the aggregate of the basic pay and premium pay 
     under those provisions for such employee would, in any 
     calendar year, exceed the greater of--
       ``(A) the maximum rate of basic pay payable for GS-15 in 
     effect at the end of such calendar year (including any 
     applicable locality-based comparability payment under section 
     5304 or similar provision of law and any applicable special 
     rate of pay under section 5305 or similar provision of law); 
     or
       ``(B) the rate payable for level V of the Executive 
     Schedule in effect at the end of such calendar year.
       ``(3) Subject to regulations prescribed by the Office of 
     Personnel Management, the head of an agency may determine 
     that subsection (a) shall not apply to an employee who is 
     paid premium pay to perform work that is critical to the 
     mission of the agency. Such employees may be paid premium pay 
     under the provisions of law cited in subsection (a) if, or to 
     the extent that, the aggregate of the basic pay and premium 
     pay under those provisions for such employee would not, in 
     any calendar year, exceed the greater of--
       ``(A) the maximum rate of basic pay payable for GS-15 in 
     effect at the end of such calendar year (including any 
     applicable locality-based comparability payment under section 
     5304 or similar provision of law and any applicable special 
     rate of pay under section 5305 or similar provision of law); 
     or
       ``(B) the rate payable for level V of the Executive 
     Schedule in effect at the end of such calendar year.
       ``(c) The Office of Personnel Management shall prescribe 
     regulations governing the methods of applying subsection 
     (b)(2) and (b)(3) to employees who receive premium pay under 
     section 5545(c) or 5545a, or to firefighters covered by 
     section 5545b who receive overtime pay for hours in their 
     regular tour of duty, and the method of payment to such 
     employees. Such regulations may limit the payment of such 
     premium pay on a biweekly basis.
       ``(d) This section shall not apply to any employee of the 
     Federal Aviation Administration or the Department of Defense 
     who is paid premium pay under section 5546a.''.
       (b) Conforming Amendment.--Section 118 of the Treasury and 
     General Government Appropriations Act, 2001 (as enacted into 
     law by section 1(3) of Public Law 106-554; 114 Stat. 2763A-
     134) is amended by striking ``limitation on the rate of pay 
     payable during a pay period contained in section 5547(c)(2)'' 
     and inserting ``restrictions contained in section 5547''.
       (c) Effective Date.--The amendments made by subsections (a) 
     and (b) shall take effect on the first day of the first pay 
     period beginning on or after the date that is 120 days 
     following the date of enactment of this Act.

     SEC. 1115. PARTICIPATION OF PERSONNEL IN TECHNICAL STANDARDS 
                   DEVELOPMENT ACTIVITIES.

       Subsection (d) of section 12 of the National Technology 
     Transfer and Advancement Act of 1995 (Pub. Law 104-113; 15 
     U.S.C. 272 note) is amended--
       (1) by redesignating paragraph (4) as paragraph (5); and
       (2) by inserting after paragraph (3) the following new 
     paragraph (4):
       ``(4) Expenses of government personnel.--Section 5946 of 
     title 5, United States Code, shall not apply with respect to 
     any activity of an employee of a Federal agency or department 
     that is determined by the head of that agency or department 
     as being an activity undertaken in carrying out this 
     subsection.''.

     SEC. 1116. RETENTION OF TRAVEL PROMOTIONAL ITEMS.

       (a) Definition.--In this section, the term ``agency'' has 
     the meaning given that term under section 5701 of title 5, 
     United States Code.
       (b) Retention of Travel Promotional Items.--To the extent 
     provided under subsection (c), a Federal employee, member of 
     the Foreign Service, member of a uniformed service, any 
     family member or dependent of such an employee or member, or 
     other individual who receives a promotional item (including 
     frequent flyer miles, upgrade, or access to carrier clubs or 
     facilities) as a result of using travel or transportation 
     services obtained at Federal Government expense or accepted 
     under section 1353 of title 31, United States Code, may 
     retain the promotional item for personal use if the 
     promotional item is obtained under the same terms as those 
     offered to the general public and at no additional cost to 
     the Federal Government.
       (c) Limitation.--Subsection (b)--
       (1) applies only to travel that--
       (A) is at the expense of an agency; or
       (B) is accepted by an agency under section 1353 of title 
     31, United States Code; and
       (2) does not apply to travel by any officer, employee, or 
     other official of the Government who is not in or under any 
     agency.
       (d) Regulatory Authority.--Any agency with authority to 
     prescribe regulations governing the acquisition, acceptance, 
     use, or disposal of any travel or transportation services 
     obtained at Government expense or accepted under section 1353 
     of title 31, United States Code, may prescribe regulations to 
     carry out subsection (b) with respect to those travel or 
     transportation services.
       (e) Repeal of Superseded Law.--Section 6008 of the Federal 
     Acquisition Streamlining Act of 1994 (5 U.S.C. 5702 note; 
     Public Law 103-355) is repealed.
       (f) Applicability.--This section shall apply with respect 
     to promotional items received before, on, or after the date 
     of enactment of this Act.

     SEC. 1117. APPLICABILITY OF CERTAIN LAWS TO CERTAIN 
                   INDIVIDUALS ASSIGNED TO WORK IN THE FEDERAL 
                   GOVERNMENT.

       Section 3374(c)(2) of title 5, United States Code, is 
     amended by inserting ``the Ethics in Government Act of 1978, 
     section 27 of the Office of Federal Procurement Policy Act,'' 
     after ``chapter 73 of this title,''.
              Subtitle C--Intelligence Civilian Personnel

     SEC. 1121. AUTHORITY TO INCREASE MAXIMUM NUMBER OF POSITIONS 
                   IN THE DEFENSE INTELLIGENCE SENIOR EXECUTIVE 
                   SERVICE.

       Section 1606(a) of title 10, United States Code, is amended 
     by striking ``517'' and inserting ``544''.
               Subtitle D--Matters Relating To Retirement

     SEC. 1131. IMPROVED PORTABILITY OF RETIREMENT COVERAGE FOR 
                   EMPLOYEES MOVING BETWEEN CIVIL SERVICE 
                   EMPLOYMENT AND EMPLOYMENT BY NONAPPROPRIATED 
                   FUND INSTRUMENTALITIES.

       (a) Civil Service Retirement System.--Section 8347(q) of 
     title 5, United States Code, is amended--
       (1) in paragraph (1)--
       (A) by inserting ``and'' at the end of subparagraph (A);
       (B) by striking subparagraph (B); and
       (C) by redesignating subparagraph (C) as subparagraph (B); 
     and
       (2) in paragraph (2)(B)--
       (A) by striking ``vested''; and
       (B) by striking ``, as the term'' and all that follows 
     through ``such system''.
       (b) Federal Employees' Retirement System.--Section 8461(n) 
     of such title is amended--
       (1) in paragraph (1)--
       (A) by inserting ``and'' at the end of subparagraph (A);
       (B) by striking subparagraph (B); and
       (C) by redesignating subparagraph (C) as subparagraph (B); 
     and
       (2) in paragraph (2)(B)--
       (A) by striking ``vested''; and
       (B) by striking ``, as the term'' and all that follows 
     through ``such system''.

     SEC. 1132. FEDERAL EMPLOYMENT RETIREMENT CREDIT FOR 
                   NONAPPROPRIATED FUND INSTRUMENTALITY SERVICE.

       (a) Civil Service Retirement System.--(1) Section 8332(b) 
     of title 5, United States Code, is amended--
       (A) by striking ``and'' at the end of paragraph (15);
       (B) by striking the period at the end of paragraph (16) and 
     inserting ``; and'';
       (C) by inserting after paragraph (16) the following new 
     paragraph:
       ``(17) service performed by any individual as an employee 
     paid from nonappropriated funds of an instrumentality of the 
     Department of Defense or the Coast Guard described in section

[[Page 25249]]

     2105(c) that is not covered by paragraph (16) and that is not 
     otherwise creditable, if the individual elects (in accordance 
     with regulations prescribed by the Office) to have such 
     service credited under this paragraph.'';
       (D) in the last sentence, by inserting ``or (17)'' after 
     ``service of the type described in paragraph (16)''; and
       (E) by inserting after the last sentence the following: 
     ``Service credited under paragraph (17) may not also be 
     credited under any other retirement system provided for 
     employees paid from nonappropriated funds of a 
     nonappropriated fund instrumentality.''.
       (2) Section 8334 of such title is amended by adding at the 
     end the following new subsection:
       ``(n) Notwithstanding subsection (c), no deposit may be 
     made with respect to service credited under section 
     8332(b)(17).''.
       (3) Section 8339 of such title is amended by adding at the 
     end the following new subsection:
       ``(u) The annuity of an employee retiring under this 
     subchapter with service credited under section 8332(b)(17) 
     shall be reduced by the amount necessary to ensure that the 
     present value of the annuity payable to the employee is 
     actuarially equivalent to the present value of the annuity 
     that would be payable to the employee under this subchapter 
     if it were computed--
       ``(1) on the basis of service that does not include service 
     credited under section 8332(b)(17); and
       ``(2) assuming the employee separated from service on the 
     actual date of the separation of the employee.
     ``The amount of the reduction shall be computed under 
     regulations prescribed by the Office of Personnel Management 
     for the administration of this subsection.''.
       (b) Federal Employees' Retirement System.--(1) Section 8411 
     of such title is amended--
       (A) in subsection (b)--
       (i) by striking ``and'' at the end of paragraph (4);
       (ii) by striking the period at the end of paragraph (5) and 
     inserting ``; and''; and
       (iii) by inserting after paragraph (5) the following new 
     paragraph:
       ``(6) service performed by any individual as an employee 
     paid from nonappropriated funds of an instrumentality of the 
     Department of Defense or the Coast Guard described in section 
     2105(c) that is not otherwise creditable, if the individual 
     elects (in accordance with regulations prescribed by the 
     Office) to have such service credited under this 
     paragraph.''; and
       (B) by adding at the end the following new subsection:
       ``(k)(1) The Office of Personnel Management shall accept, 
     for the purposes of this chapter, the certification of the 
     head of a nonappropriated fund instrumentality of the United 
     States concerning service of the type described in subsection 
     (b)(6) that was performed for such nonappropriated fund 
     instrumentality.
       ``(2) Service credited under subsection (b)(6) may not also 
     be credited under any other retirement system provided for 
     employees paid from nonappropriated funds of a 
     nonappropriated fund instrumentality.''.
       (2)(A) Section 8422 of such title is amended by adding at 
     the end the following new subsection:
       ``(h) No deposit may be made with respect to service 
     credited under section 8411(b)(6).''.
       (B) The heading for such section is amended to read as 
     follows:

     ``Sec. 8422. Deductions from pay; contributions for other 
       service''.

       (C) The item relating to such section in the table of 
     contents at the beginning of chapter 84 of title 5, United 
     States Code, is amended to read as follows:

``8422. Deductions from pay; contributions for other service.''.
       (3) Section 8415 of such title is amended by adding at the 
     end the following new subsection:
       ``(j) The annuity of an employee retiring under this 
     chapter with service credited under section 8411(b)(6) shall 
     be reduced by the amount necessary to ensure that the present 
     value of the annuity payable to the employee under this 
     subchapter is actuarially equivalent to the present value of 
     the annuity that would be payable to the employee under this 
     subchapter if it were computed--
       ``(1) on the basis of service that does not include service 
     credited under section 8411(b)(6); and
       ``(2) assuming the employee separated from service on the 
     actual date of the separation of the employee.
     ``The amount of the reduction shall be computed under 
     regulations prescribed by the Office of Personnel Management 
     for the administration of this subsection.''.
       (c) Applicability.--The amendments made by this section 
     shall apply only to separations from service as an employee 
     of the United States on or after the date of the enactment of 
     this Act.

     SEC. 1133. MODIFICATION OF LIMITATIONS ON EXERCISE OF 
                   VOLUNTARY SEPARATION INCENTIVE PAY AUTHORITY 
                   AND VOLUNTARY EARLY RETIREMENT AUTHORITY.

       (a) In General.--Section 1153(b) of the Floyd D. Spence 
     National Defense Authorization Act for Fiscal Year 2001 (as 
     enacted into law by Public Law 106-398; 114 Stat. 1654A-323) 
     is amended--
       (1) in paragraph (1)--
       (A) by striking ``(1) Subject to paragraph (2), the'' and 
     inserting ``The'';
       (B) by striking ``in each of fiscal years 2002 and 2003, 
     not more than 4000 employees of the Department of Defense 
     are'' and inserting ``in fiscal year 2002 not more than 2000 
     employees of the Department of Defense are, and in fiscal 
     year 2003 not more than 6000 employees of the Department of 
     Defense are''; and
       (C) by redesignating subparagraphs (A) and (B) as 
     paragraphs (1) and (2), respectively; and
       (2) by striking paragraph (2).
       (b) Construction.--The amendments made by subsection (a) 
     may be superceded by another provision of law that takes 
     effect after the date of the enactment of this Act, and 
     before October 1, 2003, establishing a uniform system of 
     providing voluntary separation incentives (including a system 
     for requiring approval of plans by the Office of Management 
     and Budget) for employees of the Federal Government.
              TITLE XII--MATTERS RELATING TO OTHER NATIONS

       Subtitle A--Matters Related to Arms Control and Monitoring

Sec. 1201. Clarification of authority to furnish nuclear test 
              monitoring equipment to foreign governments.
Sec. 1202. Limitation on funding for joint Data Exchange Center in 
              Moscow.
Sec. 1203. Support of United Nations-sponsored efforts to inspect and 
              monitor Iraqi weapons activities.
Sec. 1204. Authority for employees of Federal Government contractors to 
              accompany chemical weapons inspection teams at 
              Government-owned facilities.
Sec. 1205. Plan for securing nuclear weapons, material, and expertise 
              of the states of the former Soviet Union.

  Subtitle B--Matters Relating to Allies and Friendly Foreign Nations

Sec. 1211. Acquisition of logistical support for security forces.
Sec. 1212. Extension of authority for international cooperative 
              research and development projects.
Sec. 1213. Cooperative agreements with foreign countries and 
              international organizations for reciprocal use of test 
              facilities.
Sec. 1214. Sense of Congress on allied defense burdensharing.

                          Subtitle C--Reports

Sec. 1221. Report on significant sales and transfers of military 
              hardware, expertise, and technology to the People's 
              Republic of China.
Sec. 1222. Repeal of requirement for reporting to Congress on military 
              deployments to Haiti.
Sec. 1223. Report by Comptroller General on provision of defense 
              articles, services, and military education and training 
              to foreign countries and international organizations.

       Subtitle A--Matters Related to Arms Control and Monitoring

     SEC. 1201. CLARIFICATION OF AUTHORITY TO FURNISH NUCLEAR TEST 
                   MONITORING EQUIPMENT TO FOREIGN GOVERNMENTS.

       (a) Redesignation of Existing Section.--(1) The second 
     section 2555 of title 10, United States Code, added by 
     section 1203(a) of the Floyd D. Spence National Defense 
     Authorization Act for Fiscal Year 2001 (as enacted into law 
     by Public Law 106-398; 114 Stat. 1654A-324), is redesignated 
     as section 2565.
       (2) The item relating to that section in the table of 
     sections at the beginning of chapter 152 of that title is 
     amended to read as follows:

``2565. Nuclear test monitoring equipment: furnishing to foreign 
              governments.''.
       (b) Clarification of Authority.--Section 2565 of that 
     title, as so redesignated by subsection (a), is amended--
       (1) in subsection (a)--
       (A) by striking ``Convey or'' in the subsection heading and 
     inserting ``Transfer Title to or Otherwise'';
       (B) in paragraph (1)--
       (i) by striking ``convey'' and inserting ``transfer 
     title''; and
       (ii) by striking ``and'' at the end;
       (C) by striking the period at the end of paragraph (2) and 
     inserting ``; and''; and
       (D) by adding at the end the following new paragraph:
       ``(3) inspect, test, maintain, repair, or replace any such 
     equipment.''; and
       (2) in subsection (b)--
       (A) by striking ``conveyed or otherwise provided'' and 
     inserting ``provided to a foreign government'';
       (B) by inserting ``and'' at the end of paragraph (1);
       (C) by striking ``; and'' at the end of paragraph (2) and 
     inserting a period; and
       (D) by striking paragraph (3).

     SEC. 1202. LIMITATION ON FUNDING FOR JOINT DATA EXCHANGE 
                   CENTER IN MOSCOW.

       (a) Limitation.--Not more than 50 percent of the funds made 
     available to the Department of Defense for fiscal year 2002 
     for activities associated with the Joint Data Exchange Center 
     in Moscow, Russia, may be obligated for any such activity 
     until--
       (1) the United States and the Russian Federation enter into 
     a cost-sharing agreement as described in subsection (d) of 
     section 1231 of the Floyd D. Spence National Defense 
     Authorization Act for Fiscal Year 2001, as enacted into law 
     by Public Law 106-398 (114 Stat. 1654A-329);
       (2) the United States and the Russian Federation enter into 
     an agreement or agreements exempting the United States and 
     any United States person from Russian taxes, and from 
     liability under Russian laws, with respect to activities 
     associated with the Joint Data Exchange Center;

[[Page 25250]]

       (3) the Secretary of Defense submits to the Committee on 
     Armed Services of the Senate and the Committee on Armed 
     Services of the House of Representatives a copy of each 
     agreement referred to in paragraphs (1) and (2); and
       (4) a period of 30 days has expired after the date of the 
     final submission under paragraph (3).
       (b) Joint Data Exchange Center.--For purposes of this 
     section, the term ``Joint Data Exchange Center'' means the 
     United States-Russian Federation joint center for the 
     exchange of data to provide early warning of launches of 
     ballistic missiles and for notification of such launches that 
     is provided for in a joint United States-Russian Federation 
     memorandum of agreement signed in Moscow in June 2000.

     SEC. 1203. SUPPORT OF UNITED NATIONS-SPONSORED EFFORTS TO 
                   INSPECT AND MONITOR IRAQI WEAPONS ACTIVITIES.

       (a) Limitation on Amount of Assistance in Fiscal Year 
     2002--The total amount of the assistance for fiscal year 2002 
     that is provided by the Secretary of Defense under section 
     1505 of the Weapons of Mass Destruction Control Act of 1992 
     (22 U.S.C. 5859a) as activities of the Department of Defense 
     in support of activities under that Act may not exceed 
     $15,000,000.
       (b) Extension of Authority To Provide Assistance.--
     Subsection (f) of section 1505 of the Weapons of Mass 
     Destruction Control Act of 1992 (22 U.S.C. 5859a) is amended 
     by striking ``2001'' and inserting ``2002''.

     SEC. 1204. AUTHORITY FOR EMPLOYEES OF FEDERAL GOVERNMENT 
                   CONTRACTORS TO ACCOMPANY CHEMICAL WEAPONS 
                   INSPECTION TEAMS AT GOVERNMENT-OWNED 
                   FACILITIES.

       (a) Authority.--Section 303(b)(2) of the Chemical Weapons 
     Convention Implementation Act of 1998 (22 U.S.C. 6723(b)(2)) 
     is amended by inserting after ``designation of employees of 
     the Federal Government'' the following: ``(and, in the case 
     of an inspection of a United States Government facility, the 
     designation of contractor personnel who shall be led by an 
     employee of the Federal Government)''.
       (b) Credentials.--Section 304(c) of such Act (22 U.S.C. 
     6724(c)) is amended by striking ``Federal government'' and 
     inserting ``Federal Government (and, in the case of an 
     inspection of a United States Government facility, any 
     accompanying contractor personnel)''.

     SEC. 1205. PLAN FOR SECURING NUCLEAR WEAPONS, MATERIAL, AND 
                   EXPERTISE OF THE STATES OF THE FORMER SOVIET 
                   UNION.

       (a) Plan Required.--Not later than June 15, 2002, the 
     President shall submit to Congress a plan, that has been 
     developed in coordination with all relevant Federal 
     agencies--
       (1) for cooperating with Russia on disposing, as soon as 
     practicable, of nuclear weapons and weapons-usable nuclear 
     material in Russia that Russia does not retain in its nuclear 
     arsenals;
       (2) for assisting Russia in downsizing its nuclear weapons 
     research and production complex;
       (3) for cooperating with the other states of the former 
     Soviet Union on disposing, as soon as practicable, of all 
     nuclear weapons and weapons-usable nuclear material in such 
     states; and
       (4) for preventing the outflow from the states of the 
     former Soviet Union of scientific expertise that could be 
     used for developing nuclear weapons, other weapons of mass 
     destruction, and delivery systems for such weapons.
       (b) Content of Plan.--The plan required by subsection (a) 
     shall include the following:
       (1) Specific goals and measurable objectives for programs 
     that are designed to carry out the objectives described in 
     subsection (a).
       (2) Criteria for success for such programs, and a strategy 
     for eventual termination of United States contributions to 
     such programs and assumption of the ongoing support of those 
     programs by others.
       (3) A description of any administrative and organizational 
     changes necessary to improve the coordination and 
     effectiveness of such programs. In particular, the plan shall 
     include consideration of the creation of an interagency 
     committee that would have primary responsibilities within the 
     executive branch for--
       (A) monitoring United States nonproliferation efforts in 
     the states of the former Soviet Union;
       (B) coordinating the implementation of United States policy 
     with respect to such efforts; and
       (C) recommending to the President integrated policies, 
     budget options, and private sector and international 
     contributions for such programs.
       (4) An estimate of the cost of carrying out such programs.
       (c) Consultation.--In developing the plan required by 
     subsection (a), the President--
       (1) is encouraged to consult with the relevant states of 
     the former Soviet Union regarding the practicality of various 
     options; and
       (2) shall consult with the majority and minority leadership 
     of the appropriate committees of Congress.

  Subtitle B--Matters Relating to Allies and Friendly Foreign Nations

     SEC. 1211. ACQUISITION OF LOGISTICAL SUPPORT FOR SECURITY 
                   FORCES.

       Section 5 of the Multinational Force and Observers 
     Participation Resolution (22 U.S.C. 3424) is amended by 
     adding at the end the following new subsection:
       ``(d)(1) The United States may use contractors to provide 
     logistical support to the Multinational Force and Observers 
     under this section in lieu of providing such support through 
     a logistical support unit comprised of members of the United 
     States Armed Forces.
       ``(2) Notwithstanding subsections (a) and (b) and section 
     7(b), support by a contractor under this subsection may be 
     provided without reimbursement whenever the President 
     determines that such action enhances or supports the national 
     security interests of the United States.''.

     SEC. 1212. EXTENSION OF AUTHORITY FOR INTERNATIONAL 
                   COOPERATIVE RESEARCH AND DEVELOPMENT PROJECTS.

       (a) Eligibility of Friendly Foreign Countries.--Section 
     2350a of title 10, United States Code, is amended--
       (1) in subsection (a)--
  TITLE XIII--COOPERATIVE THREAT REDUCTION WITH STATES OF THE FORMER 
                              SOVIET UNION
Sec. 1301. Specification of Cooperative Threat Reduction programs and 
              funds.
Sec. 1302. Funding allocations.
Sec. 1303. Limitation on use of funds until submission of reports.
Sec. 1304. Requirement to consider use of revenue generated by 
              activities carried out under Cooperative Threat Reduction 
              programs.
Sec. 1305. Prohibition against use of funds for second wing of fissile 
              material storage facility.
Sec. 1306. Prohibition against use of funds for certain construction 
              activities.
Sec. 1307. Reports on activities and assistance under Cooperative 
              Threat Reduction programs.
Sec. 1308. Chemical weapons destruction.
Sec. 1309. Additional matter in annual report on activities and 
              assistance under Cooperative Threat Reduction programs.

     SEC. 1301. SPECIFICATION OF COOPERATIVE THREAT REDUCTION 
                   PROGRAMS AND FUNDS.

       (a) Specification of CTR Programs.--For purposes of section 
     301 and other provisions of this Act, Cooperative Threat 
     Reduction programs are the programs specified in section 
     1501(b) of the National Defense Authorization Act for Fiscal 
     Year 1997 (Public Law 104-201; 110 Stat. 2731; 50 U.S.C. 2362 
     note).
       (b) Fiscal Year 2002 Cooperative Threat Reduction Funds 
     Defined.--As used in this title, the term ``fiscal year 2002 
     Cooperative Threat Reduction funds'' means the funds 
     appropriated pursuant to the authorization of appropriations 
     in section 301 for Cooperative Threat Reduction programs.
       (c) Availability of Funds.--Funds appropriated pursuant to 
     the authorization of appropriations in section 301 for 
     Cooperative Threat Reduction programs shall be available for 
     obligation for three fiscal years.

     SEC. 1302. FUNDING ALLOCATIONS.

       (a) Funding for Specific Purposes.--Of the $403,000,000 
     authorized to be appropriated to the Department of Defense 
     for fiscal year 2002 in section 301(23) for Cooperative 
     Threat Reduction programs, not more than the following 
     amounts may be obligated for the purposes specified:
       (1) For strategic offensive arms elimination in Russia, 
     $133,405,000.
       (2) For strategic nuclear arms elimination in Ukraine, 
     $51,500,000.
       (3) For nuclear weapons transportation security in Russia, 
     $9,500,000.
       (4) For nuclear weapons storage security in Russia, 
     $56,000,000.
       (5) For biological weapons proliferation prevention 
     activities in the former Soviet Union, $17,000,000.
       (6) For activities designated as Other Assessments/
     Administrative Support, $13,221,000.
       (7) For defense and military contacts, $18,650,000.
       (8) For chemical weapons destruction in Russia, 
     $50,000,000.
       (9) For weapons of mass destruction infrastructure 
     elimination activities in Kazakhstan, $6,000,000.
       (10) For weapons of mass destruction infrastructure 
     elimination activities in Ukraine, $6,024,000.
       (11) For activities to assist Russia in the elimination of 
     plutonium production reactors, $41,700,000.
       (b) Report on Obligation or Expenditure of Funds for Other 
     Purposes.--No fiscal year 2002 Cooperative Threat Reduction 
     funds may be obligated or expended for a purpose other than a 
     purpose listed in paragraphs (1) through (11) of subsection 
     (a) until 30 days after the date that the Secretary of 
     Defense submits to Congress a report on the purpose for which 
     the funds will be obligated or expended and the amount of 
     funds to be obligated or expended. Nothing in the preceding 
     sentence shall be construed as authorizing the obligation or 
     expenditure of fiscal year 2002 Cooperative Threat Reduction 
     funds for a purpose for which the obligation or expenditure 
     of such funds is specifically prohibited under this title or 
     any other provision of law.
       (c) Limited Authority To Vary Individual Amounts.--(1) 
     Subject to paragraphs (2) and (3), in any case in which the 
     Secretary of Defense determines that it is necessary to do so 
     in the national interest, the Secretary may obligate amounts 
     appropriated for fiscal year 2002 for a purpose listed in any 
     of the paragraphs in subsection (a) in excess of the amount 
     specifically authorized for such purpose.
       (2) An obligation of funds for a purpose stated in any of 
     the paragraphs in subsection (a) in excess of the specific 
     amount authorized for such purpose may be made using the 
     authority provided in paragraph (1) only after--
       (A) the Secretary submits to Congress notification of the 
     intent to do so together with a complete discussion of the 
     justification for doing so; and

[[Page 25251]]

       (B) 15 days have elapsed following the date of the 
     notification.
       (3) The Secretary may not, under the authority provided in 
     paragraph (1), obligate amounts for the purposes stated in 
     paragraph (6), (7), or (11) of subsection (a) in excess of 
     115 percent of the amount specifically authorized for such 
     purposes.
       (d) Modification of Authority To Vary Individual Amounts of 
     FY 2001 Funds.--Section 1302(c)(3) of the Floyd D. Spence 
     National Defense Authorization Act for Fiscal Year 2001 (as 
     enacted into law by Public Law 106-398; 114 Stat. 1654A-340) 
     is amended by striking ``(4),''.

     SEC. 1303. LIMITATION ON USE OF FUNDS UNTIL SUBMISSION OF 
                   REPORTS.

       Not more than 50 percent of fiscal year 2002 Cooperative 
     Threat Reduction funds may be obligated or expended until 30 
     days after the date of the submission of--
       (1) the report required to be submitted in fiscal year 2001 
     under section 1308(a) of the Floyd D. Spence National Defense 
     Authorization Act for Fiscal Year 2001 (as enacted into law 
     by Public Law 106-398; 114 Stat. 1654A-341); and
       (2) the multiyear plan required to be submitted for fiscal 
     year 2001 under section 1308(h) of such Act.

     SEC. 1304. REQUIREMENT TO CONSIDER USE OF REVENUE GENERATED 
                   BY ACTIVITIES CARRIED OUT UNDER COOPERATIVE 
                   THREAT REDUCTION PROGRAMS.

       The Secretary of Defense shall consider the use of revenue 
     generated by activities carried out under Cooperative Threat 
     Reduction programs in negotiating and executing contracts 
     with Russia to carry out such programs.

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

       (a) Prohibition.--No fiscal year 2002 Cooperative Threat 
     Reduction funds and no funds authorized to be appropriated 
     for Cooperative Threat Reduction programs for any prior 
     fiscal year may be used for the construction of a second wing 
     for a storage facility for Russian fissile material.
       (b) Conforming Amendment.--Section 1304 of the Floyd D. 
     Spence National Defense Authorization Act for Fiscal Year 
     2001 (as enacted into law by Public Law 106-398; 114 Stat. 
     1654A-341) is amended to read as follows:

     ``SEC. 1304. LIMITATION ON USE OF FUNDS FOR FISSILE MATERIAL 
                   STORAGE FACILITY.

       ``Out of funds authorized to be appropriated for 
     Cooperative Threat Reduction programs for fiscal year 2001 or 
     any other fiscal year, not more than $412,600,000 may be used 
     for planning, design, or construction of the first wing for 
     the storage facility for Russian fissile material referred to 
     in section 1302(a)(5) other than planning, design, or 
     construction to improve security at such first wing.''.

     SEC. 1306. PROHIBITION AGAINST USE OF FUNDS FOR CERTAIN 
                   CONSTRUCTION ACTIVITIES.

       No fiscal year 2002 Cooperative Threat Reduction funds may 
     be used for construction activities carried out under 
     Russia's program to eliminate the production of weapons grade 
     plutonium.

     SEC. 1307. REPORTS ON ACTIVITIES AND ASSISTANCE UNDER 
                   COOPERATIVE THREAT REDUCTION PROGRAMS.

       Section 1308(c)(4) of the Floyd D. Spence National Defense 
     Authorization Act for Fiscal Year 2001 (as enacted into law 
     by Public Law 106-398; 114 Stat. 1654A-342) is amended--
       (1) in the matter preceding subparagraph (A)--
       (A) by striking ``audits'' and all that follows through 
     ``conducted'' and inserting ``means (including program 
     management, audits, examinations, and other means) used''; 
     and
       (B) by striking ``and that such assistance is being used 
     for its intended purpose'' and inserting ``, that such 
     assistance is being used for its intended purpose, and that 
     such assistance is being used efficiently and effectively'';
       (2) in subparagraph (C), by inserting ``and an assessment 
     of whether the assistance being provided is being used 
     effectively and efficiently'' before the semicolon; and
       (3) in subparagraph (D), by striking ``audits, 
     examinations, and other''.

     SEC. 1308. CHEMICAL WEAPONS DESTRUCTION.

       Section 1305 of the National Defense Authorization Act for 
     Fiscal Year 2000 (Public Law 106-65; 113 Stat. 794; 22 U.S.C. 
     5952 note) is amended by inserting before the period at the 
     end the following: ``until the Secretary of Defense submits 
     to Congress a certification that there has been--
       ``(1) information provided by Russia, that the United 
     States assesses to be full and accurate, regarding the size 
     of the chemical weapons stockpile of Russia;
       ``(2) a demonstrated annual commitment by Russia to 
     allocate at least $25,000,000 to chemical weapons 
     elimination;
       ``(3) development by Russia of a practical plan for 
     destroying its stockpile of nerve agents;
       ``(4) enactment of a law by Russia that provides for the 
     elimination of all nerve agents at a single site;
       ``(5) an agreement by Russia to destroy or convert its 
     chemical weapons production facilities at Volgograd and 
     Novocheboksark; and
       ``(6) a demonstrated commitment from the international 
     community to fund and build infrastructure needed to support 
     and operate the facility.''.

     SEC. 1309. ADDITIONAL MATTER IN ANNUAL REPORT ON ACTIVITIES 
                   AND ASSISTANCE UNDER COOPERATIVE THREAT 
                   REDUCTION PROGRAMS.

       Section 1308(c) of the Floyd D. Spence National Defense 
     Authorization Act for Fiscal Year 2001 (as enacted into law 
     by Public Law 106-398; 114 Stat. 1654A-341) (as amended by 
     section 1308) is further amended by adding at the end of the 
     following new paragraph:
       ``(6) A description of the amount of the financial 
     commitment from the international community, and from Russia, 
     for the chemical weapons destruction facility located at 
     Shchuch'ye, Russia, for the fiscal year beginning in the year 
     in which the report is submitted.''.
                TITLE XIV--ARMED FORCES RETIREMENT HOME
Sec. 1401. Amendment of Armed Forces Retirement Home Act of 1991.
Sec. 1402. Definitions.
Sec. 1403. Revision of authority establishing the Armed Forces 
              Retirement Home.
Sec. 1404. Chief Operating Officer.
Sec. 1405. Residents of Retirement Home.
Sec. 1406. Local Boards of Trustees.
Sec. 1407. Directors, Deputy Directors, Associate Directors, and staff 
              of facilities.
Sec. 1408. Disposition of effects of deceased persons and unclaimed 
              property.
Sec. 1409. Transitional provisions.
Sec. 1410. Conforming and clerical amendments and repeals of obsolete 
              provisions.

     SEC. 1401. AMENDMENT OF ARMED FORCES RETIREMENT HOME ACT OF 
                   1991.

       Except as otherwise expressly provided, whenever in this 
     title an amendment or repeal is expressed in terms of an 
     amendment to, or a repeal of, a section or other provision, 
     the reference shall be considered to be made to a section or 
     other provision of the Armed Forces Retirement Home Act of 
     1991 (title XV of Public Law 101-510; 24 U.S.C. 401 et seq.).

     SEC. 1402. DEFINITIONS.

       Section 1502 (24 U.S.C. 401) is amended--
       (1) by striking paragraphs (1), (2), (3), (4), and (5), and 
     inserting the following new paragraphs:
       ``(1) The term `Retirement Home' includes the institutions 
     established under section 1511, as follows:
       ``(A) The Armed Forces Retirement Home--Washington.
       ``(B) The Armed Forces Retirement Home--Gulfport.
       ``(2) The term `Local Board' means a Local Board of 
     Trustees established under section 1516.
       ``(3) The terms `Armed Forces Retirement Home Trust Fund' 
     and `Fund' mean the Armed Forces Retirement Home Trust Fund 
     established under section 1519(a).'';
       (2) by redesignating paragraphs (6), (7), and (8) as 
     paragraphs (4), (5), and (6), respectively; and
       (3) in paragraph (5), as so redesignated--
       (A) in subparagraph (C), by striking ``, Manpower and 
     Personnel'' and inserting ``for Personnel''; and
       (B) in subparagraph (D), by striking ``with responsibility 
     for personnel matters'' and inserting ``for Manpower and 
     Reserve Affairs''.

     SEC. 1403. REVISION OF AUTHORITY ESTABLISHING THE ARMED 
                   FORCES RETIREMENT HOME.

       Section 1511 (24 U.S.C. 411) is amended to read as follows:

     ``SEC. 1511. ESTABLISHMENT OF THE ARMED FORCES RETIREMENT 
                   HOME.

       ``(a) Independent Establishment.--The Armed Forces 
     Retirement Home is an independent establishment in the 
     executive branch.
       ``(b) Purpose.--The purpose of the Retirement Home is to 
     provide, through the Armed Forces Retirement Home--Washington 
     and the Armed Forces Retirement Home--Gulfport, residences 
     and related services for certain retired and former members 
     of the Armed Forces.
       ``(c) Facilities.--(1) Each facility of the Retirement Home 
     referred to in paragraph (2) is a separate establishment of 
     the Retirement Home.
       ``(2) The United States Soldiers' and Airmen's Home is 
     hereby redesignated as the Armed Forces Retirement Home--
     Washington. The Naval Home is hereby redesignated as the 
     Armed Forces Retirement Home--Gulfport.
       ``(d) Operation.--(1) The Chief Operating Officer of the 
     Armed Forces Retirement Home is the head of the Retirement 
     Home. The Chief Operating Officer is subject to the 
     authority, direction, and control of the Secretary of 
     Defense.
       ``(2) Each facility of the Retirement Home shall be 
     maintained as a separate establishment of the Retirement Home 
     for administrative purposes and shall be under the authority, 
     direction, and control of the Director of that facility. The 
     Director of each facility of the Retirement Home is subject 
     to the authority, direction, and control of the Chief 
     Operating Officer.
       ``(e) Property and Facilities.--(1) The Retirement Home 
     shall include such property and facilities as may be acquired 
     under paragraph (2) or accepted under section 1515(f) for 
     inclusion in the Retirement Home.
       ``(2) The Secretary of Defense may acquire, for the benefit 
     of the Retirement Home, property and facilities for inclusion 
     in the Retirement Home.
       ``(3) The Secretary of Defense may dispose of any property 
     of the Retirement Home, by sale, lease, or otherwise, that 
     the Secretary determines is excess to the needs of the 
     Retirement Home. The proceeds from such a disposal of 
     property shall be deposited in the Armed Forces Retirement 
     Home Trust Fund. No such disposal of real property shall be 
     effective earlier than 120 days after the date on which the 
     Secretary transmits a notification of the proposed disposal 
     to the Committees on Armed Services of the Senate and the 
     House of Representatives.

[[Page 25252]]

       ``(f) Department of Defense Support.--The Secretary of 
     Defense may make available from the Department of Defense to 
     the Retirement Home, on a nonreimbursable basis, 
     administrative support and office services, legal and policy 
     planning assistance, access to investigative facilities of 
     the Inspector General of the Department of Defense and of the 
     military departments, and any other support necessary to 
     enable the Retirement Home to carry out its functions under 
     this title.
       ``(g) Accreditation.--The Chief Operating Officer shall 
     endeavor to secure for each facility of the Retirement Home 
     accreditation by a nationally recognized civilian accrediting 
     organization, such as the Continuing Care Accreditation 
     Commission and the Joint Commission for Accreditation of 
     Health Organizations.
       ``(h) Annual Report.--The Secretary of Defense shall 
     transmit to Congress an annual report on the financial and 
     other affairs of the Retirement Home for each fiscal year.''.

     SEC. 1404. CHIEF OPERATING OFFICER.

       (a) Establishment and Authority of Position.--Section 1515 
     (24 U.S.C. 415) is amended to read as follows:

     ``SEC. 1515. CHIEF OPERATING OFFICER.

       ``(a) Appointment.--(1) The Secretary of Defense shall 
     appoint the Chief Operating Officer of the Retirement Home.
       ``(2) The Chief Operating Officer shall serve at the 
     pleasure of the Secretary of Defense.
       ``(3) The Secretary of Defense shall evaluate the 
     performance of the Chief Operating Officer at least once each 
     year.
       ``(b) Qualifications.--To qualify for appointment as the 
     Chief Operating Officer, a person shall--
       ``(1) be a continuing care retirement community 
     professional;
       ``(2) have appropriate leadership and management skills; 
     and
       ``(3) have experience and expertise in the operation and 
     management of retirement homes and in the provision of long-
     term medical care for older persons.
       ``(c) Responsibilities.--(1) The Chief Operating Officer 
     shall be responsible to the Secretary of Defense for the 
     overall direction, operation, and management of the 
     Retirement Home and shall report to the Secretary on those 
     matters.
       ``(2) The Chief Operating Officer shall supervise the 
     operation and administration of the Armed Forces Retirement 
     Home--Washington and the Armed Forces Retirement Home--
     Gulfport, including the Local Boards of those facilities.
       ``(3) The Chief Operating Officer shall perform the 
     following duties:
       ``(A) Issue, and ensure compliance with, appropriate rules 
     for the operation of the Retirement Home.
       ``(B) Periodically visit, and inspect the operation of, the 
     facilities of the Retirement Home.
       ``(C) Periodically examine and audit the accounts of the 
     Retirement Home.
       ``(D) Establish any advisory body or bodies that the Chief 
     Operating Officer considers to be necessary.
       ``(d) Compensation.--(1) The Secretary of Defense may 
     prescribe the pay of the Chief Operating Officer, except that 
     the annual rate of basic pay, including locality pay, of the 
     Chief Operating Officer may not exceed the annual rate of 
     basic pay payable for level III of the Executive Schedule 
     under section 5314 of title 5, United States Code.
       ``(2) In addition to basic pay and any locality pay 
     prescribed for the Chief Operating Officer, the Secretary may 
     award the Chief Operating Officer, not more than once each 
     year, a bonus based on the performance of the Chief Operating 
     Officer for the year. The Secretary shall prescribe the 
     amount of any such bonus.
       ``(3) The total amount of the basic pay and bonus paid the 
     Chief Operating Officer for a year under this section may not 
     exceed the annual rate of basic pay payable for level I of 
     the Executive Schedule under section 5312 of title 5, United 
     States Code.
       ``(e) Administrative Staff.--(1) The Chief Operating 
     Officer may, subject to the approval of the Secretary of 
     Defense, appoint a staff to assist in the performance of the 
     Chief Operating Officer's duties in the overall 
     administration of the Retirement Home.
       ``(2) The Chief Operating Officer shall prescribe the rates 
     of pay applicable to the members of the staff appointed under 
     paragraph (1), except that--
       ``(A) a staff member who is a member of the Armed Forces on 
     active duty or who is a full-time officer or employee of the 
     United States may not receive additional pay by reason of 
     service on the administrative staff; and
       ``(B) the limitations in section 5373 of title 5, United 
     States Code, relating to pay set by administrative action, 
     shall apply to the rates of pay prescribed under this 
     paragraph.
       ``(f) Acceptance of Gifts.--(1) The Chief Operating Officer 
     may accept gifts of money, property, and facilities on behalf 
     of the Retirement Home.
       ``(2) Monies received as gifts, or realized from the 
     disposition of property and facilities received as gifts, 
     shall be deposited in the Armed Forces Retirement Home Trust 
     Fund.''.
       (b) Transfer of Authorities.--(1) The following provisions 
     are amended by striking ``Retirement Home Board'' each place 
     it appears and inserting ``Chief Operating Officer'':
       (A) Section 1512 (24 U.S.C. 412), relating to eligibility 
     and acceptance for residence in the Armed Forces Retirement 
     Home.
       (B) Section 1513(a) (24 U.S.C. 412(a)), relating to 
     services provided to residents of the Armed Forces Retirement 
     Home.
       (C) Section 1518(c) (24 U.S.C. 418(c)), relating to 
     inspection of the Armed Forces Retirement Home.
       (2) Section 1519(c) (24 U.S.C. 419(c)), relating to 
     authority to invest funds in the Armed Forces Retirement Home 
     Trust Fund, is amended by striking ``Director'' and inserting 
     ``Chief Operating Officer''.
       (3) Section 1521(a) (24 U.S.C. 421(a)), relating to payment 
     of residents for services, is amended by striking ``Chairman 
     of the Armed Forces Retirement Board'' and inserting ``Chief 
     Operating Officer''.
       (4) Section 1522 (24 U.S.C. 422), relating to authority to 
     accept certain uncompensated services, is amended--
       (A) in subsection (a)--
       (i) by striking ``Chairman of the Retirement Home Board or 
     the Director of each establishment'' and inserting ``Chief 
     Operating Officer or the Director of a facility''; and
       (ii) by striking ``unless'' and all that follows through 
     ``Retirement Home Board'';
       (B) in subsection (b)(1)--
       (i) by striking ``Chairman of the Retirement Home Board or 
     the Director of the establishment'' and inserting ``Chief 
     Operating Officer or the Director of a facility''; and
       (ii) by inserting ``offering the services'' after ``notify 
     the person'';
       (C) in subsection (b)(2), by striking ``Chairman'' and 
     inserting ``Chief Operating Officer'';
       (D) in subsection (c), by striking ``Chairman of the 
     Retirement Home Board or the Director of an establishment'' 
     and inserting ``Chief Operating Officer or the Director of a 
     facility''; and
       (E) in subsection (e)--
       (i) by striking ``Chairman of the Retirement Board or the 
     Director of the establishment'' in the first sentence and 
     inserting ``Chief Operating Officer or the Director of a 
     facility''; and
       (ii) by striking ``Chairman'' in the second sentence and 
     inserting ``Chief Operating Officer''.
       (5) Section 1523(b) (24 U.S.C. 423(b)), relating to 
     preservation of historic buildings and grounds at the Armed 
     Forces Retirement Home--Washington, is amended by striking 
     ``Chairman of the Retirement Home Board'' and inserting 
     ``Chief Operating Officer''.

     SEC. 1405. RESIDENTS OF RETIREMENT HOME.

       (a) Repeal of Requirement of Resident To Reapply After 
     Substantial Absence.--Subsection (e) of section 1512 (24 
     U.S.C. 412) is repealed.
       (b) Fees Paid by Residents.--Section 1514 (24 U.S.C. 414) 
     is amended to read as follows:

     ``SEC. 1514. FEES PAID BY RESIDENTS.

       ``(a) Monthly Fees.--The Director of each facility of the 
     Retirement Home shall collect a monthly fee from each 
     resident of that facility.
       ``(b) Deposit of Fees.--The Directors shall deposit fees 
     collected under subsection (a) in the Armed Forces Retirement 
     Home Trust Fund.
       ``(c) Fixing Fees.--(1) The Chief Operating Officer, with 
     the approval of the Secretary of Defense, shall from time to 
     time prescribe the fees required by subsection (a). Changes 
     to such fees shall be based on the financial needs of the 
     Retirement Home and the ability of the residents to pay. A 
     change of a fee may not take effect until 120 days after the 
     Secretary of Defense transmits a notification of the change 
     to the Committees on Armed Services of the Senate and the 
     House of Representatives.
       ``(2) The fee shall be fixed as a percentage of the monthly 
     income and monthly payments (including Federal payments) 
     received by a resident. The percentage shall be the same for 
     each facility of the Retirement Home. The Secretary of 
     Defense may make any adjustment in a percentage that the 
     Secretary determines appropriate.
       ``(3) The fee shall be subject to a limitation on maximum 
     monthly amount. The amount of the limitation shall be 
     increased, effective on January 1 of each year, by the 
     percentage of the increase in retired pay and retainer pay 
     that takes effect on the preceding December 1 under 
     subsection (b) of section 1401a of title 10, United States 
     Code, without regard to paragraph (3) of such subsection. The 
     first increase in a limitation on maximum monthly amount 
     shall take effect on January 1, 2003.
       ``(d) Transitional Fee Structures.--(1) Until different 
     fees are prescribed and take effect under subsection (c), the 
     percentages and limitations on maximum monthly amount that 
     are applicable to fees charged residents of the Retirement 
     Home are (subject to any adjustment that the Secretary of 
     Defense determines appropriate) as follows:
       ``(A) For months beginning before January 1, 2002--
       ``(i) for a permanent health care resident, 65 percent 
     (without limitation on maximum monthly amount); and
       ``(ii) for a resident who is not a permanent health care 
     resident, 40 percent (without limitation on maximum monthly 
     amount).
       ``(B) For months beginning after December 31, 2001--
       ``(i) for an independent living resident, 35 percent, but 
     not to exceed $1,000 each month;
       ``(ii) for an assisted living resident, 40 percent, but not 
     to exceed $1,500 each month; and
       ``(iii) for a long-term care resident, 65 percent, but not 
     to exceed $2,500 each month.
       ``(2) Notwithstanding the limitations on maximum monthly 
     amount prescribed under subsection (c) or set forth in 
     paragraph (1)(B), until the earlier of December 31, 2006, or 
     the date on which an independent living resident or assisted 
     living resident of the Armed Forces Retirement Home--Gulfport 
     occupies a renovated room at that facility, as determined by 
     the Secretary of

[[Page 25253]]

     Defense, the limitation on maximum monthly amount applicable 
     to the resident for months beginning after December 31, 2001, 
     shall be--
       ``(A) in the case of an independent living resident, $800; 
     and
       ``(B) in the case of an assisted living resident, $1,300.

     SEC. 1406. LOCAL BOARDS OF TRUSTEES.

       Section 1516 (24 U.S.C. 416) is amended to read as follows:

     ``SEC. 1516. LOCAL BOARDS OF TRUSTEES.

       ``(a) Establishment.--Each facility of the Retirement Home 
     shall have a Local Board of Trustees.
       ``(b) Duties.--The Local Board for a facility shall serve 
     in an advisory capacity to the Director of the facility and 
     to the Chief Operating Officer.
       ``(c) Composition.--(1) The Local Board for a facility 
     shall consist of at least 11 members who (except as otherwise 
     specifically provided) shall be appointed by the Secretary of 
     Defense in consultation with each of the Secretaries of the 
     military departments concerned. At least one member of the 
     Local Board shall have a perspective that is oriented toward 
     the Retirement Home overall. The Local Board for a facility 
     shall consist of the following members:
       ``(A) One member who is a civilian expert in nursing home 
     or retirement home administration and financing from the 
     geographical area of the facility.
       ``(B) One member who is a civilian expert in gerontology 
     from the geographical area of the facility.
       ``(C) One member who is a service expert in financial 
     management.
       ``(D) One representative of the Department of Veterans 
     Affairs regional office nearest in proximity to the facility, 
     who shall be designated by the Secretary of Veterans Affairs.
       ``(E) One representative of the resident advisory committee 
     or council of the facility.
       ``(F) One enlisted representative of the Services' Retiree 
     Advisory Council.
       ``(G) The senior noncommissioned officer of one of the 
     Armed Forces.
       ``(H) One senior representative of the military hospital 
     nearest in proximity to the facility.
       ``(I) One senior judge advocate from one of the Armed 
     Forces.
       ``(J) The Director of the facility, who shall be a 
     nonvoting member.
       ``(K) One senior representative of one of the chief 
     personnel officers of the Armed Forces.
       ``(L) Other members designated by the Secretary of Defense 
     (if the Local Board is to have more than 11 members).
       ``(2) The Secretary of Defense shall designate one member 
     of a Local Board to serve as the chairman of the Local Board 
     at the pleasure of the Secretary of Defense.
       ``(d) Terms.--(1) Except as provided in subsections (e), 
     (f), and (g), the term of office of a member of a Local Board 
     shall be five years.
       ``(2) Unless earlier terminated by the Secretary of 
     Defense, a person may continue to serve as a member of the 
     Local Board after the expiration of the member's term until a 
     successor is appointed or designated, as the case may be.
       ``(e) Early Expiration of Term.--A member of a Local Board 
     who is a member of the Armed Forces or an employee of the 
     United States serves as a member of the Local Board only for 
     as long as the member is assigned to or serving in a position 
     for which the duties include the duty to serve as a member of 
     the Local Board.
       ``(f) Vacancies.--(1) A vacancy in the membership of a 
     Local Board shall be filled in the manner in which the 
     original appointment or designation was made, as the case may 
     be.
       ``(2) A member appointed or designated to fill a vacancy 
     occurring before the end of the term of the predecessor of 
     the member shall be appointed or designated, as the case may 
     be, for the remainder of the term for which the predecessor 
     was appointed.
       ``(3) A vacancy in a Local Board shall not affect its 
     authority to perform its duties.
       ``(g) Early Termination.--The Secretary of Defense may 
     terminate the appointment of a member of a Local Board before 
     the expiration of the member's term for any reason that the 
     Secretary determines appropriate.
       ``(h) Compensation.--(1) Except as provided in paragraph 
     (2), a member of a Local Board shall--
       ``(A) be provided a stipend consistent with the daily 
     government consultant fee for each day on which the member is 
     engaged in the performance of services for the Local Board; 
     and
       ``(B) while away from home or regular place of business in 
     the performance of services for the Local Board, be allowed 
     travel expenses (including per diem in lieu of subsistence) 
     in the same manner as a person employed intermittently in 
     Government under sections 5701 through 5707 of title 5, 
     United States Code.
       ``(2) A member of a Local Board who is a member of the 
     Armed Forces on active duty or a full-time officer or 
     employee of the United States shall receive no additional pay 
     by reason of serving a member of a Local Board.''.

     SEC. 1407. DIRECTORS, DEPUTY DIRECTORS, ASSOCIATE DIRECTORS, 
                   AND STAFF OF FACILITIES.

       Section 1517 (24 U.S.C. 417) is amended to read as follows:

     ``SEC. 1517. DIRECTORS, DEPUTY DIRECTORS, ASSOCIATE 
                   DIRECTORS, AND STAFF OF FACILITIES.

       ``(a) Appointment.--The Secretary of Defense shall appoint 
     a Director, a Deputy Director, and an Associate Director for 
     each facility of the Retirement Home.
       ``(b) Director.--The Director of a facility shall--
       ``(1) be a civilian with experience as a continuing care 
     retirement community professional or a member of the Armed 
     Forces serving on active duty in a grade below brigadier 
     general or, in the case of the Navy, rear admiral (lower 
     half);
       ``(2) have appropriate leadership and management skills; 
     and
       ``(3) be required to pursue a course of study to receive 
     certification as a retirement facilities director by an 
     appropriate civilian certifying organization, if the Director 
     is not so certified at the time of appointment.
       ``(c) Duties of Director.--(1) The Director of a facility 
     shall be responsible for the day-to-day operation of the 
     facility, including the acceptance of applicants to be 
     residents of that facility.
       ``(2) The Director of a facility shall keep accurate and 
     complete records of the facility.
       ``(d) Deputy Director.--(1) The Deputy Director of a 
     facility shall--
       ``(A) be a civilian with experience as a continuing care 
     retirement community professional or a member of the Armed 
     Forces serving on active duty in a grade below colonel or, in 
     the case of the Navy, captain; and
       ``(B) have appropriate leadership and management skills.
       ``(2) The Deputy Director of a facility shall serve at the 
     pleasure of the Secretary of Defense.
       ``(e) Duties of Deputy Director.--The Deputy Director of a 
     facility shall, under the authority, direction, and control 
     of the Director of the facility, perform such duties as the 
     Director may assign.
       ``(f) Associate Director.--(1) The Associate Director of a 
     facility shall--
       ``(A) be a member of the Armed Forces serving on active 
     duty in the grade of Sergeant Major, Master Chief Petty 
     Officer, or Chief Master Sergeant or a member or former 
     member retired in that grade; and
       ``(B) have appropriate leadership and management skills.
       ``(2) The Associate Director of a facility shall serve at 
     the pleasure of the Secretary of Defense.
       ``(g) Duties of Associate Director.--The Associate Director 
     of a facility shall, under the authority, direction, and 
     control of the Director and Deputy Director of the facility, 
     serve as ombudsman for the residents and perform such other 
     duties as the Director may assign.
       ``(h) Staff.--(1) The Director of a facility may, subject 
     to the approval of the Chief Operating Officer, appoint and 
     prescribe the pay of such principal staff as the Director 
     considers appropriate to assist the Director in operating the 
     facility.
       ``(2) The principal staff of a facility shall include 
     persons with experience and expertise in the operation and 
     management of retirement homes and in the provision of long-
     term medical care for older persons.
       ``(i) Annual Evaluation of Directors.--(1) The Chief 
     Operating Officer shall evaluate the performance of each of 
     the Directors of the facilities of the Retirement Home each 
     year.
       ``(2) The Chief Operating Officer shall submit to the 
     Secretary of Defense any recommendations regarding a Director 
     that the Chief Operating Officer determines appropriate 
     taking into consideration the annual evaluation.''.

     SEC. 1408. DISPOSITION OF EFFECTS OF DECEASED PERSONS AND 
                   UNCLAIMED PROPERTY.

       (a) Legal Representation for Retirement Home.--Subsection 
     (b)(2)(A) of section 1520 (24 U.S.C. 420) is amended by 
     inserting ``who is a full-time officer or employee of the 
     United States or a member of the Armed Forces on active 
     duty'' after ``may designate an attorney''.
       (b) Correction of Reference.--Subsection (b)(1)(B) of such 
     section is amended by inserting ``Armed Forces'' before 
     ``Retirement Home Trust Fund''.

     SEC. 1409. TRANSITIONAL PROVISIONS.

       Part B is amended by striking sections 1531, 1532, and 1533 
     and inserting the following new sections:

     ``SEC. 1531. TEMPORARY CONTINUATION OF ARMED FORCES 
                   RETIREMENT HOME BOARD.

       ``Until the Secretary of Defense appoints the first Chief 
     Operating Officer after the enactment of the National Defense 
     Authorization Act for Fiscal Year 2002, the Armed Forces 
     Retirement Home Board, as constituted on the day before the 
     date of the enactment of that Act, shall continue to serve 
     and shall perform the duties of the Chief Operating Officer.

     ``SEC. 1532. DIRECTORS OF FACILITIES.

       ``(a) Active Duty Officers.--During the three-year period 
     beginning on the date of the enactment of the National 
     Defense Authorization Act for Fiscal Year 2002, the Directors 
     and Deputy Directors of the facilities shall be members of 
     the Armed Forces serving on active duty, notwithstanding the 
     authority in subsections (b) and (d) of section 1517 for the 
     Directors and Deputy Directors to be civilians.
       ``(b) Temporary Continuation of Director of the Armed 
     Forces Retirement Home--Washington.--The person serving as 
     the Director of the Armed Forces Retirement Home--Washington 
     on the day before the enactment of the National Defense 
     Authorization Act for Fiscal Year 2002 may continue to serve 
     as the Director of that facility until April 2, 2002.

[[Page 25254]]



     ``SEC. 1533. TEMPORARY CONTINUATION OF INCUMBENT DEPUTY 
                   DIRECTORS.

       ``A person serving as the Deputy Director of a facility of 
     the Retirement Home on the day before the enactment of the 
     National Defense Authorization Act for Fiscal Year 2002 may 
     continue to serve, at the pleasure of the Secretary of 
     Defense, as the Deputy Director until the date on which a 
     Deputy Director is appointed for that facility under section 
     1517, except that the service in that position may not 
     continue under this section after December 31, 2004.''.

     SEC. 1410. CONFORMING AND CLERICAL AMENDMENTS AND REPEALS OF 
                   OBSOLETE PROVISIONS.

       (a) Conforming Amendments.--(1) Section 1513(b) (24 U.S.C. 
     413(b)), relating to services provided to residents of the 
     Armed Forces Retirement Home, is amended by striking 
     ``maintained as a separate establishment'' in the second 
     sentence.
       (2) The heading for section 1519 (24 U.S.C. 419) is amended 
     to read as follows:

     ``SEC. 1519. ARMED FORCES RETIREMENT HOME TRUST FUND.''.

       (3) Section 1520 (24 U.S.C. 420), relating to disposition 
     of effects of deceased persons and unclaimed property, is 
     amended--
       (A) in subsection (a), by striking ``each facility that is 
     maintained as a separate establishment'' and inserting ``a 
     facility'';
       (B) in subsection (b)(2)(A), by striking ``maintained as a 
     separate establishment''; and
       (C) in subsection (e), by striking ``Directors'' and 
     inserting ``Director of the facility''.
       (4)(A) Section 1523 (24 U.S.C. 423), relating to 
     preservation of historic buildings and grounds at the Armed 
     Forces Retirement Home--Washington, is amended by striking 
     ``United States Soldiers' and Airmen's Home'' each place it 
     appears and inserting ``Armed Forces Retirement Home--
     Washington''.
       (B) The heading for such section is amended to read as 
     follows:

     ``SEC. 1523. PRESERVATION OF HISTORIC BUILDINGS AND GROUNDS 
                   AT THE ARMED FORCES RETIREMENT HOME--
                   WASHINGTON.''.

       (5) Section 1524 (24 U.S.C. 424), relating to conditional 
     supervisory control of the Retirement Home Board, is 
     repealed.
       (b) Repeal of Obsolete Provisions.--The following 
     provisions are repealed:
       (1) Section 1512(f) (24 U.S.C. 412(f)), relating to the 
     applicability of certain eligibility requirements.
       (2) Section 1519(d) (24 U.S.C. 419(d)), relating to 
     transitional accounts in the Armed Forces Retirement Home 
     Trust Fund.
       (3) Part C, relating to effective date and authorization of 
     appropriations.
       (c) Addition of Table of Contents.--Section 1501 (24 U.S.C. 
     401 note) is amended--
       (1) by inserting ``(a) Short Title.--'' before ``This 
     title''; and
       (2) by adding at the end the following new subsection:
       ``(b) Table of Contents.--The table of contents for this 
     title is as follows:

``Sec. 1501. Short title; table of contents.
``Sec. 1502. Definitions.

        ``Part A--Establishment and Operation of Retirement Home

``Sec. 1511. Establishment of the Armed Forces Retirement Home.
``Sec. 1512. Residents of Retirement Home.
``Sec. 1513. Services provided residents.
``Sec. 1514. Fees paid by residents.
``Sec. 1515. Chief Operating Officer.
``Sec. 1516. Local Boards of Trustees.
``Sec. 1517. Directors, Deputy Directors, Associate Directors, and 
              staff of facilities.
``Sec. 1518. Inspection of Retirement Home.
``Sec. 1519. Armed Forces Retirement Home Trust Fund.
``Sec. 1520. Disposition of effects of deceased persons; unclaimed 
              property.
``Sec. 1521. Payment of residents for services.
``Sec. 1522. Authority to accept certain uncompensated services.
``Sec. 1523. Preservation of historic buildings and grounds at the 
              Armed Forces Retirement Home--Washington.

                   ``Part B--Transitional Provisions

``Sec. 1531. Temporary Continuation of Armed Forces Retirement Home 
              Board.
``Sec. 1532. Directors of Facilities.
``Sec. 1533. Temporary Continuation of Incumbent Deputy Directors.''.
          TITLE XV--ACTIVITIES RELATING TO COMBATING TERRORISM

         Subtitle A--Increased Funding for Combating Terrorism

Sec. 1501. Definitions.
Sec. 1502. Authorization of emergency appropriations for fiscal year 
              2001 made by Public Law 107-38 and allocated for national 
              defense functions.
Sec. 1503. Authorization of emergency supplemental appropriations for 
              fiscal year 2002.
Sec. 1504. Authorization of use of funds for military construction 
              projects.
Sec. 1505. Treatment of transferred amounts.
Sec. 1506. Quarterly reports.

       Subtitle B--Policy Matters Relating to Combating Terrorism

Sec. 1511. Study and report on the role of the Department of Defense 
              with respect to homeland security.
Sec. 1512. Combating Terrorism Readiness Initiatives Fund for combatant 
              commands.
Sec. 1513. Conveyances of equipment and related materials loaned to 
              State and local governments as assistance for emergency 
              response to a use or threatened use of a weapon of mass 
              destruction.
Sec. 1514. Two-year extension of advisory panel to assess domestic 
              response capabilities for terrorism involving weapons of 
              mass destruction.
         Subtitle A--Increased Funding for Combating Terrorism

     SEC. 1501. DEFINITIONS.

       For purposes of this subtitle:
       (1) The term ``ETR Supplemental Appropriations Act, 2001'' 
     means the 2001 Emergency Supplemental Appropriations Act for 
     Recovery from and Response to Terrorist Attacks on the United 
     States (Public Law 107-38).
       (2) The term ``Emergency Supplemental Appropriations Act, 
     2002'' means an Act (or a portion of an Act) making available 
     for obligation emergency appropriations that were provided, 
     subject to enactment in a subsequent appropriation Act, in 
     the ETR Supplemental Appropriations Act, 2001.

     SEC. 1502. AUTHORIZATION OF EMERGENCY APPROPRIATIONS FOR 
                   FISCAL YEAR 2001 MADE BY PUBLIC LAW 107-38 AND 
                   ALLOCATED FOR NATIONAL DEFENSE FUNCTIONS.

       (a) Adjustment in Authorization Amounts.--(1) Subject to 
     paragraph (2), amounts authorized to be appropriated for 
     fiscal year 2001 in the Floyd D. Spence National Defense 
     Authorization Act for Fiscal Year 2001 (as enacted into law 
     by Public Law 106-398) are hereby increased, with respect to 
     any such authorized amount, by the amount (if any) by which 
     appropriations pursuant to such authorization are increased 
     by amounts appropriated in the ETR Supplemental 
     Appropriations Act, 2001, and transferred by the President 
     (before the date of the enactment of this Act) to the 
     Department of Defense or the National Nuclear Security 
     Administration and subsequently allocated to such 
     appropriations.
       (2) Authorization amounts may not be increased under 
     paragraph (1) in excess of amounts derived from allocation of 
     the amounts specified in subsection (b), for the Department 
     of Defense, and in subsection (c), for the National Nuclear 
     Security Administration.
       (b) Department of Defense.--Amounts referred to in 
     subsection (a)(2) for the Department of Defense are amounts 
     for emergency expenses to respond to the terrorist attacks on 
     the United States that occurred on September 11, 2001, 
     allocated to the Department of Defense for fiscal year 2001 
     for the use of the Armed Forces and other activities and 
     agencies of the Department of Defense, including the purposes 
     stated in section 1504, in the total amount of 
     $13,741,000,000, as follows:
       (1) Increased situational awareness.--For Increased 
     Situational Awareness, $4,272,000,000.
       (2) Enhanced force protection.--For Enhanced Force 
     Protection, $1,509,000,000.
       (3) Improved command and control.--For Improved Command and 
     Control, $1,403,000,000.
       (4) Increased worldwide posture.--For Increased Worldwide 
     Posture, $3,603,000,000.
       (5) Offensive counterterrorism.--For Offensive 
     Counterterrorism, $1,459,000,000.
       (6) Initial crisis response.--For Initial Crisis Response, 
     $637,000,000.
       (7) Pentagon repair and upgrade.--For Pentagon Repair and 
     Upgrade Activities, $530,000,000.
       (8) Fuel costs.--For increased fuel costs, $100,000,000.
       (9) Airport and border security.--For airport and border 
     security, $228,000,000.
       (c) NNSA.--The amount referred to in subsection (a)(2) for 
     the National Nuclear Security Administration is the amount of 
     $5,000,000 for emergency expenses to respond to the terrorist 
     attacks on the United States that occurred on September 11, 
     2001, allocated for fiscal year 2001 atomic energy defense 
     activities of the National Nuclear Security Administration 
     for weapons activities.
       (d) Treatment as Additional Authorizations.--The amounts 
     authorized to be appropriated by this section are in addition 
     to amounts otherwise authorized to be appropriated by the 
     Floyd D. Spence National Defense Authorization Act for Fiscal 
     Year 2001 (as enacted into law by Public Law 106-398) or any 
     other Act, for fiscal year 2001 for the use of the Armed 
     Forces and other activities and agencies of the Department of 
     Defense and for the use of the National Nuclear Security 
     Administration.

     SEC. 1503. AUTHORIZATION OF EMERGENCY SUPPLEMENTAL 
                   APPROPRIATIONS FOR FISCAL YEAR 2002.

       (a) Department of Defense.--For emergency expenses to 
     respond to the September 11, 2001, terrorist attacks on the 
     United States, funds are hereby authorized to be appropriated 
     to the Defense Emergency Response Fund for fiscal year 2002 
     for the use of the Armed Forces and other activities and 
     agencies of the Department of Defense, including the purposes 
     stated in section 1504, in the total amount of 
     $7,349,000,000, as follows:
       (1) Increased situational awareness.--For Increased 
     Situational Awareness, $1,735,000,000.
       (2) Enhanced force protection.--For Enhanced Force 
     Protection, $881,000,000.
       (3) Improved command and control.--For Improved Command and 
     Control, $219,000,000.
       (4) Increased worldwide posture.--For Increased Worldwide 
     Posture, $2,938,000,000.
       (5) Offensive counterterrorism.--For Offensive 
     Counterterrorism, $545,000,000.

[[Page 25255]]

       (6) Initial crisis response.--For Initial Crisis Response, 
     $106,000,000.
       (7) Pentagon repair and upgrade.--For Pentagon Repair and 
     Upgrade Activities, $925,000,000.
       (b) NNSA.--For emergency expenses to respond to the 
     September 11, 2001, terrorist attacks on the United States 
     and for other expenses to increase the security of the 
     Nation's nuclear weapons complex, funds are hereby authorized 
     to be appropriated for fiscal year 2002 for the atomic energy 
     defense activities of the National Nuclear Security 
     Administration in the amount of $106,000,000, to be available 
     for weapons activities.
       (c) Department of Energy.--For emergency expenses to 
     respond to the September 11, 2001, terrorist attacks on the 
     United States, funds are hereby authorized to be appropriated 
     for fiscal year 2002 to the Department of Energy in the total 
     amount of $11,700,000, as follows:
       (1) For Defense Environmental Restoration and Waste 
     Management, $8,200,000.
       (2) For Other Defense Activities, $3,500,000.
       (d) Transfer of Defense Funds.--In order to carry out the 
     specified purposes in subsection (a), the Secretary of 
     Defense may transfer amounts authorized by subsection (a) 
     from the Defense Emergency Response Fund to any other defense 
     appropriations account, including the account ``Support for 
     International Sporting Events, Defense'' and any military 
     construction account as provided in section 1504.
       (e) Availability.--Amounts appropriated pursuant to 
     authorizations in this section may remain available until 
     expended, if so provided in appropriations Acts.
       (f) Source of Funds.--Amounts appropriated pursuant to 
     authorizations in this section shall be derived from amounts 
     provided, subject to subsequent appropriation, in the ETR 
     Supplemental Appropriations Act, 2001.
       (g) Treatment as Additional Authorizations.--The amounts 
     authorized to be appropriated by this section are in addition 
     to amounts otherwise authorized to be appropriated, by the 
     other provisions of this Act or by any other Act, for fiscal 
     year 2001 for the use of the Armed Forces and other 
     activities and agencies of the Department of Defense and for 
     the use of the National Nuclear Security Administration.

     SEC. 1504. AUTHORIZATION OF USE OF FUNDS FOR MILITARY 
                   CONSTRUCTION PROJECTS.

       (a) Authority for Use of Funds.--Qualified emergency 
     defense appropriations may be used to acquire real property 
     and carry out military construction projects not otherwise 
     authorized by law that the Secretary of Defense determines 
     are necessary to respond to or protect against acts or 
     threatened acts of terrorism or to respond to the terrorist 
     attacks on the United States that occurred on September 11, 
     2001.
       (b) Project Authorization.--Any project with respect to 
     which the Secretary makes a determination under subsection 
     (a) and that is to be carried out using qualified emergency 
     defense appropriations is hereby authorized for purposes of 
     section 2802 of title 10, United States Code.
       (c) Qualified Emergency Defense Appropriations.--For 
     purposes of this subsection, the term ``qualified emergency 
     defense appropriations'' means emergency appropriations 
     available to the Department of Defense that are authorized by 
     section 1502 or 1503.

     SEC. 1505. TREATMENT OF TRANSFERRED AMOUNTS.

       Amounts transferred under authority of section 1502 or 1503 
     shall be merged with, and shall be available for the same 
     purposes and for the same time period as, the accounts to 
     which transferred. The transfer authority under those 
     sections is in addition to the transfer authority provided by 
     section 1001 or any other provision of law.

     SEC. 1506. QUARTERLY REPORTS.

       (a) Quarterly Report.--Promptly after the end of each 
     quarter of a fiscal year, the Secretary of Defense and the 
     Director of Central Intelligence shall each submit to the 
     congressional defense committees a report (in classified and 
     unclassified form, as needed) on the use of funds authorized 
     by this subtitle. Each such report shall, at a minimum, 
     specify the following:
       (1) Any balance of funds remaining in the Defense Emergency 
     Response Fund as of the end of the quarter covered by the 
     report.
       (2) The accounts to which funds have been transferred or 
     are to be transferred and the amount of each such transfer.
       (3) Within such accounts, each project to which any such 
     funds have been transferred or are to be transferred and the 
     amount of funds obligated and the amount expended for each 
     such project as of the end of the quarter covered by the 
     report.
       (b) Initial Report.--The first report under subsection (a) 
     shall be submitted not later than January 2, 2002.
       (c) Final Report.--No further report under subsection (a) 
     is required after all funds made available to the Department 
     of Defense pursuant to such Act have been obligated.
       Subtitle B--Policy Matters Relating to Combating Terrorism

     SEC. 1511. STUDY AND REPORT ON THE ROLE OF THE DEPARTMENT OF 
                   DEFENSE WITH RESPECT TO HOMELAND SECURITY.

       (a) Study Required.--The Secretary of Defense shall conduct 
     a study on the appropriate role of the Department of Defense 
     with respect to homeland security. The study shall identify 
     and describe the policies, plans, and procedures of the 
     Department of Defense for combating terrorism, including for 
     the provision of support for the consequence management 
     activities of other Federal, State, and local agencies. The 
     study shall specifically identify the following:
       (1) The strategy, roles, and responsibilities of the 
     Department of Defense for combating terrorism.
       (2) How the Department of Defense will interact with the 
     Office of Homeland Security and how intelligence sharing 
     efforts of the Department of Defense will be organized 
     relative to other Federal agencies and departments and State 
     and local governments.
       (3) The ability of the Department of Defense to protect the 
     United States from airborne threats, including threats 
     originating from within the borders of the United States.
       (4) Improvements that could be made to enhance the security 
     of the people of the United States against terrorist threats 
     and recommended actions (including legislative action) and 
     programs to address and overcome existing vulnerabilities.
       (5) The policies, plans, and procedures relating to how the 
     civilian official in the Department of Defense responsible 
     for combating terrorism and the Joint Task Force Civil 
     Support of the Joint Forces Command will coordinate the 
     performance of functions for combating terrorism with--
       (A) teams in the Department of Defense that have 
     responsibilities for responding to acts or threats of 
     terrorism, including--
       (i) weapons of mass destruction civil support teams when 
     operating as the National Guard under the command of the 
     Governor of a State, the Governor of Puerto Rico, or the 
     Commanding General of the District of Columbia National 
     Guard;
       (ii) weapons of mass destruction civil support teams when 
     operating as the Army National Guard of the United States or 
     the Air National Guard of the United States under the command 
     of the President;
       (iii) teams in the departments and agencies of the Federal 
     Government other than the Department of Defense that have 
     responsibilities for responding to acts or threats of 
     terrorism;
       (iv) organizations outside the Federal Government, 
     including any State, local and private entities, that 
     function as first responders to acts or threats of terrorism; 
     and
       (v) units and organizations of the Reserve Components of 
     the Armed Forces that have missions relating to combating 
     terrorism;
       (B) the Director of Military Support of the Department of 
     the Army;
       (C) any preparedness plans to combat terrorism that are 
     developed for installations of the Department of Defense by 
     the commanders of the installations and the integration of 
     those plans with the plans of the teams and organizations 
     described in subparagraph (A);
       (D) the policies, plans and procedures for using and 
     coordinating the integrated vulnerability assessment teams of 
     the Joint Staff inside and outside the United States; and
       (E) the missions of Fort Leonard Wood and other 
     installations for training units, weapons of mass destruction 
     civil support teams and other teams, and individuals in 
     combating terrorism.
       (6) The appropriate number and missions of the teams 
     referred to in paragraph (5)(A)(i).
       (7) How the Department of Defense Weapons of Mass 
     Destruction Civil Support Teams should interact with the 
     Federal Bureau of Investigation and the Federal Emergency 
     Management Agency during crisis response and consequence 
     management situations.
       (b) Report.--Not later than 180 days after the date of the 
     enactment of this Act, the Secretary shall submit to Congress 
     a report including the findings of the study conducted under 
     subsection (a).

     SEC. 1512. COMBATING TERRORISM READINESS INITIATIVES FUND FOR 
                   COMBATANT COMMANDS.

       (a) Funding for Initiatives.--Chapter 6 of title 10, United 
     States Code, is amended by inserting after section 166a the 
     following new section:

     ``Sec. 166b. Combatant commands: funding for combating 
       terrorism readiness initiatives

       ``(a) Combating Terrorism Readiness Initiatives Fund.--From 
     funds made available in any fiscal year for the budget 
     account in the Department of Defense known as the `Combating 
     Terrorism Readiness Initiatives Fund', the Chairman of the 
     Joint Chiefs of Staff may provide funds to the commander of a 
     combatant command, upon the request of the commander, or, 
     with respect to a geographic area or areas not within the 
     area of responsibility of a commander of a combatant command, 
     to an officer designated by the Chairman of the Joint Chiefs 
     of Staff for such purpose. The Chairman may provide such 
     funds for initiating any activity named in subsection (b) and 
     for maintaining and sustaining the activity for the fiscal 
     year in which initiated and one additional fiscal year.
       ``(b) Authorized Activities.--Activities for which funds 
     may be provided under subsection (a) are the following:
       ``(1) Procurement and maintenance of physical security 
     equipment.
       ``(2) Improvement of physical security sites.
       ``(3) Under extraordinary circumstances--
       ``(A) physical security management planning;
       ``(B) procurement and support of security forces and 
     security technicians;
       ``(C) security reviews and investigations and vulnerability 
     assessments; and
       ``(D) any other activity relating to physical security.
       ``(c) Priority.--The Chairman of the Joint Chiefs of Staff, 
     in considering requests for funds

[[Page 25256]]

     in the Combating Terrorism Readiness Initiatives Fund, should 
     give priority consideration to emergency or emergent 
     unforeseen high-priority requirements for combating 
     terrorism.
       ``(d) Relationship to Other Funding.--Any amount provided 
     by the Chairman of the Joint Chiefs of Staff for a fiscal 
     year out of the Combating Terrorism Readiness Initiatives 
     Fund for an activity referred to in subsection (b) shall be 
     in addition to amounts otherwise available for that activity 
     for that fiscal year.
       ``(e) Limitation.--Funds may not be provided under this 
     section for any activity that has been denied authorization 
     by Congress.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of such chapter is amended by inserting after the 
     item relating to section 166a the following new item:

``166b. Combatant commands: funding for combating terrorism readiness 
              initiatives.''.

     SEC. 1513. CONVEYANCES OF EQUIPMENT AND RELATED MATERIALS 
                   LOANED TO STATE AND LOCAL GOVERNMENTS AS 
                   ASSISTANCE FOR EMERGENCY RESPONSE TO A USE OR 
                   THREATENED USE OF A WEAPON OF MASS DESTRUCTION.

       Section 1412(e) of the Defense Against Weapons of Mass 
     Destruction Act of 1996 (title XIV of Public Law 104-201; 110 
     Stat. 2718; 50 U.S.C. 2312(e)) is amended by adding at the 
     end the following new paragraph:
       ``(5) A conveyance of ownership of United States property 
     to a State or local government, without cost and without 
     regard to subsection (f) and title II of the Federal Property 
     and Administrative Services Act of 1949 (or any other 
     provision of law relating to the disposal of property of the 
     United States), if the property is equipment, or equipment 
     and related materials, that is in the possession of the State 
     or local government on the date of the enactment of the 
     National Defense Authorization Act for Fiscal Year 2002 
     pursuant to a loan of the property as assistance under this 
     section.''.

     SEC. 1514. TWO-YEAR EXTENSION OF ADVISORY PANEL TO ASSESS 
                   DOMESTIC RESPONSE CAPABILITIES FOR TERRORISM 
                   INVOLVING WEAPONS OF MASS DESTRUCTION.

       (a) Extension of Advisory Panel.--Section 1405 of the Strom 
     Thurmond National Defense Authorization Act for Fiscal Year 
     1999 (50 U.S.C. 2301 note) is amended--
       (1) in subsection (h)(2), by striking ``2001'' and 
     inserting ``2003''; and
       (2) in subsection (l), by striking ``three years'' and 
     inserting ``five years''.
       (b) Pay and Expenses of Members.--(1) Subsection (k) of 
     such section is amended to read as follows:
       ``(k) Compensation of Panel Members.--The provisions of 
     paragraph (4) of section 591(c) of the Foreign Operations, 
     Export Financing, and Related Programs Appropriations Act, 
     1999 (as contained in section 101(d) of division A of the 
     Omnibus Consolidated and Emergency Supplemental 
     Appropriations Act, 1999 (Public Law 105-277; 112 Stat. 2681-
     212)), shall apply to members of the panel in the same manner 
     as to members of the National Commission on Terrorism under 
     that paragraph.''.
       (2) The amendment made by paragraph (1) shall apply with 
     respect to periods of service on the advisory panel under 
     section 1405 of the Strom Thurmond National Defense 
     Authorization Act for Fiscal Year 1999 on or after the date 
     of the enactment of this Act.
                  TITLE XVI--UNIFORMED SERVICES VOTING
Sec. 1601. Sense of Congress regarding the importance of voting.
Sec. 1602. Voting assistance programs.
Sec. 1603. Guarantee of residency for military personnel.
Sec. 1604. Electronic voting demonstration project.
Sec. 1605. Governors' reports on implementation of recommendations for 
              changes in State law made under Federal Voting Assistance 
              Program.
Sec. 1606. Simplification of voter registration and absentee ballot 
              application procedures for absent uniformed services and 
              overseas voters.
Sec. 1607. Use of certain Department of Defense facilities as polling 
              places.

     SEC. 1601. SENSE OF CONGRESS REGARDING THE IMPORTANCE OF 
                   VOTING.

       (a) Sense of Congress.--It is the sense of Congress that 
     each person who is an administrator of a Federal, State, or 
     local election--
       (1) should be aware of the importance of the ability of 
     each uniformed services voter to exercise the right to vote; 
     and
       (2) should perform that person's duties as an election 
     administrator with the intent to ensure that--
       (A) each uniformed services voter receives the utmost 
     consideration and cooperation when voting;
       (B) each valid ballot cast by such a voter is duly counted; 
     and
       (C) all eligible American voters, regardless of race, 
     ethnicity, disability, the language they speak, or the 
     resources of the community in which they live, should have an 
     equal opportunity to cast a vote and to have that vote 
     counted.
       (b) Uniformed Services Voter Defined.--In this section, the 
     term ``uniformed services voter'' means--
       (1) a member of a uniformed service (as defined in section 
     101(a)(5) of title 10, United States Code) in active service;
       (2) a member of the merchant marine (as defined in section 
     107 of the Uniformed and Overseas Citizens Absentee Voting 
     Act (42 U.S.C. 1973ff-6)); and
       (3) a spouse or dependent of a member referred to in 
     paragraph (1) or (2) who is qualified to vote.

     SEC. 1602. VOTING ASSISTANCE PROGRAMS.

       (a) In General.--(1) Chapter 80 of title 10, United States 
     Code, is amended by adding at the end the following new 
     section:

     ``Sec. 1566. Voting assistance: compliance assessments; 
       assistance

       ``(a) Regulations.--The Secretary of Defense shall 
     prescribe regulations to require that the Army, Navy, Air 
     Force, and Marine Corps ensure their compliance with any 
     directives issued by the Secretary of Defense in implementing 
     any voting assistance program.
       ``(b) Voting Assistance Programs Defined.--In this section, 
     the term `voting assistance programs' means--
       ``(1) the Federal Voting Assistance Program carried out 
     under the Uniformed and Overseas Citizens Absentee Voting Act 
     (42 U.S.C. 1973ff et seq.); and
       ``(2) any similar program.
       ``(c) Annual Effectiveness and Compliance Reviews.--(1) The 
     Inspector General of each of the Army, Navy, Air Force, and 
     Marine Corps shall conduct--
       ``(A) an annual review of the effectiveness of voting 
     assistance programs; and
       ``(B) an annual review of the compliance with voting 
     assistance programs of that armed force.
       ``(2) Upon the completion of each annual review under 
     paragraph (1), each Inspector General specified in that 
     paragraph shall submit to the Inspector General of the 
     Department of Defense a report on the results of each such 
     review. Such report shall be submitted in time each year to 
     be reflected in the report of the Inspector General of the 
     Department of Defense under paragraph (3).
       ``(3) Not later than March 31 each year, the Inspector 
     General of the Department of Defense shall submit to Congress 
     a report on--
       ``(A) the effectiveness during the preceding calendar year 
     of voting assistance programs; and
       ``(B) the level of compliance during the preceding calendar 
     year with voting assistance programs of each of the Army, 
     Navy, Air Force, and Marine Corps.
       ``(d) Inspector General Assessments.--(1) The Inspector 
     General of the Department of Defense shall periodically 
     conduct at Department of Defense installations unannounced 
     assessments of the compliance at those installations with--
       ``(A) the requirements of the Uniformed and Overseas 
     Citizens Absentee Voting Act (42 U.S.C. 1973ff et seq.);
       ``(B) Department of Defense regulations regarding that Act 
     and the Federal Voting Assistance Program carried out under 
     that Act; and
       ``(C) other requirements of law regarding voting by members 
     of the armed forces.
       ``(2) The Inspector General shall conduct an assessment 
     under paragraph (1) at not less than 10 Department of Defense 
     installations each calendar year.
       ``(3) Each assessment under paragraph (1) shall include a 
     review of such compliance--
       ``(A) within units to which are assigned, in the aggregate, 
     not less than 20 percent of the personnel assigned to duty at 
     that installation;
       ``(B) within a representative survey of members of the 
     armed forces assigned to that installation and their 
     dependents; and
       ``(C) within unit voting assistance officers to measure 
     program effectiveness.
       ``(e) Regular Military Department Assessments.--The 
     Secretary of each military department shall include in the 
     set of issues and programs to be reviewed during any 
     management effectiveness review or inspection at the 
     installation level an assessment of compliance with the 
     Uniformed and Overseas Citizens Absentee Voting Act (42 
     U.S.C. 1973ff et seq.) and with Department of Defense 
     regulations regarding the Federal Voting Assistance Program.
       ``(f) Voting Assistance Officers.--Voting assistance 
     officers shall be appointed or assigned under Department of 
     Defense regulations. Commanders at all levels are responsible 
     for ensuring that unit voting officers are trained and 
     equipped to provide information and assistance to members of 
     the armed forces on voting matters. Performance evaluation 
     reports pertaining to a member who has been assigned to serve 
     as a voting assistance officer shall comment on the 
     performance of the member as a voting assistance officer.
       ``(g) Delivery of Mail From Overseas Preceding Federal 
     Elections.--(1) During the four months preceding a general 
     Federal election month, the Secretary of Defense shall 
     periodically conduct surveys of all overseas locations and 
     vessels at sea with military units responsible for collecting 
     mail for return shipment to the United States and all port 
     facilities in the United States and overseas where military-
     related mail is collected for shipment to overseas locations 
     or to the United States. The purpose of each survey shall be 
     to determine if voting materials are awaiting shipment at any 
     such location and, if so, the length of time that such 
     materials have been held at that location. During the fourth 
     and third months before a general Federal election month, 
     such surveys shall be conducted biweekly. During the second 
     and first months before a general Federal election month, 
     such surveys shall be conducted weekly.
       ``(2) The Secretary shall ensure that voting materials are 
     transmitted expeditiously by military postal authorities at 
     all times.

[[Page 25257]]

       ``(3) In this section, the term `general Federal election 
     month' means November in an even-numbered year.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by adding at the end the following new item:

``1566. Voting assistance: compliance assessments; assistance.''.

       (b) Initial Report.--The first report under section 
     1566(c)(3) of title 10, United States Code, as added by 
     subsection (a), shall be submitted not later than March 31, 
     2003.

     SEC. 1603. GUARANTEE OF RESIDENCY FOR MILITARY PERSONNEL.

       Article VII of the Soldiers' and Sailors' Civil Relief Act 
     of 1940 (50 U.S.C. App. 590 et seq.) is amended by adding at 
     the end the following:
       ``Sec. 704. (a) For purposes of voting for any Federal 
     office (as defined in section 301 of the Federal Election 
     Campaign Act of 1971 (2 U.S.C. 431)) or a State or local 
     office, a person who is absent from a State in compliance 
     with military or naval orders shall not, solely by reason of 
     that absence--
       ``(1) be deemed to have lost a residence or domicile in 
     that State, without regard to whether or not the person 
     intends to return to that State;
       ``(2) be deemed to have acquired a residence or domicile in 
     any other State; or
       ``(3) be deemed to have become a resident in or a resident 
     of any other State.
       ``(b) In this section, the term `State' includes a 
     territory or possession of the United States, a political 
     subdivision of a State, territory, or possession, and the 
     District of Columbia.''.

     SEC. 1604. ELECTRONIC VOTING DEMONSTRATION PROJECT.

       (a) Establishment of Demonstration Project.--
       (1) In general.--Subject to paragraph (2), the Secretary of 
     Defense shall carry out a demonstration project under which 
     absent uniformed services voters are permitted to cast 
     ballots in the regularly scheduled general election for 
     Federal office for November 2002 through an electronic voting 
     system. The project shall be carried out with participation 
     of sufficient numbers of absent uniformed services voters so 
     that the results are statistically relevant.
       (2) Authority to delay implementation.--If the Secretary of 
     Defense determines that the implementation of the 
     demonstration project under paragraph (1) with respect to the 
     regularly scheduled general election for Federal office for 
     November 2002 may adversely affect the national security of 
     the United States, the Secretary may delay the implementation 
     of such demonstration project until the regularly scheduled 
     general election for Federal office for November 2004. The 
     Secretary shall notify the Committee on Armed Services and 
     the Committee on Rules and Administration of the Senate and 
     the Committee on Armed Services and the Committee on House 
     Administration of the House of Representatives of any 
     decision to delay implementation of the demonstration 
     project.
       (b) Coordination With State Election Officials.--The 
     Secretary shall carry out the demonstration project under 
     this section through cooperative agreements with State 
     election officials of States that agree to participate in the 
     project.
       (c) Report to Congress.--Not later than June 1 of the year 
     following the year in which the demonstration project is 
     conducted under this section, the Secretary of Defense shall 
     submit to Congress a report analyzing the demonstration 
     project. The Secretary shall include in the report any 
     recommendations the Secretary considers appropriate for 
     continuing the project on an expanded basis for absent 
     uniformed services voters during the next regularly scheduled 
     general election for Federal office.
       (d) Definitions.--In this section:
       (1) Absent uniformed services voter.--The term ``absent 
     uniformed services voter'' has the meaning given that term in 
     section 107(1) of the Uniformed and Overseas Citizens 
     Absentee Voting Act (42 U.S.C. 1973ff-6(1)).
       (2) State.--The term ``State'' includes the District of 
     Columbia, the Commonwealth of Puerto Rico, Guam, the Virgin 
     Islands, and American Samoa.

     SEC. 1605. GOVERNORS' REPORTS ON IMPLEMENTATION OF 
                   RECOMMENDATIONS FOR CHANGES IN STATE LAW MADE 
                   UNDER FEDERAL VOTING ASSISTANCE PROGRAM.

       (a) Reports.--(1) Whenever a State receives a uniformed 
     services voting assistance legislative recommendation from 
     the Secretary of Defense, acting as the Presidential 
     designee, the chief executive authority of that State shall, 
     not later than 90 days after receipt of that recommendation, 
     provide a report on the status of implementation of that 
     recommendation by that State.
       (2) If a legislative recommendation referred to in 
     paragraph (1) has been implemented, in whole or in part, by a 
     State, the report of the chief executive authority of that 
     State under that paragraph with respect to that 
     recommendation shall include a description of the changes 
     made to State law to implement the recommendation. If the 
     recommendation has not been implemented, the report shall 
     include a statement of the status of the recommendation 
     before the State legislature and a statement of any 
     recommendation the chief executive officer has made or 
     intends to make to the legislature with respect to that 
     recommendation.
       (3) Any report under paragraph (1) shall be transmitted to 
     the Secretary of Defense, acting as the Presidential 
     designee. The Secretary shall transmit a copy of the response 
     to each Member of Congress who represents that State.
       (b) Period of Applicability.--This section applies with 
     respect to any uniformed services voting assistance 
     legislative recommendation transmitted to a State by the 
     Secretary of Defense, acting as the Presidential designee, 
     during the three-year period beginning on the date of the 
     enactment of this Act.
       (c) Definitions.--In this section:
       (1) The term ``uniformed services voting assistance 
     legislative recommendation'' means a recommendation of the 
     Presidential designee for a modification in the laws of a 
     State for the purpose of improving the access to the polls of 
     absent uniformed services voters and overseas voters.
       (2) The term ``Presidential designee'' means the head of 
     the executive department designated by the President under 
     section 101(a) of the Uniformed and Overseas Citizens 
     Absentee Voting Act (42 U.S.C. 1973ff(a)).
       (3) The term ``State'' includes the District of Columbia, 
     the Commonwealth of Puerto Rico, Guam, the Virgin Islands, 
     and American Samoa.
       (4) The term ``Member of Congress'' includes a Delegate or 
     Resident Commissioner to the Congress.

     SEC. 1606. SIMPLIFICATION OF VOTER REGISTRATION AND ABSENTEE 
                   BALLOT APPLICATION PROCEDURES FOR ABSENT 
                   UNIFORMED SERVICES AND OVERSEAS VOTERS.

       (a) Requirement for States To Accept Official Form for 
     Simultaneous Voter Registration and Absentee Ballot 
     Application.--
       (1) In general.--Section 102 of the Uniformed and Overseas 
     Citizens Absentee Voting Act (42 U.S.C. 1973ff-1) is 
     amended--
       (A) in paragraph (2)--
       (i) by striking ``general, special, primary, or runoff'';
       (ii) by inserting ``and absentee ballot application'' after 
     ``voter registration application'';
       (iii) by striking ``and'' after the semicolon at the end;
       (B) by striking the period at the end of paragraph (3) and 
     inserting ``; and''; and
       (C) by adding at the end the following new paragraph:
       ``(4) use the official post card form (prescribed under 
     section 101) for simultaneous voter registration application 
     and absentee ballot application.''.
       (2) Conforming amendment.--Section 101(b)(2) of such Act 
     (42 U.S.C. 1973ff(b)(2)) is amended by striking ``as 
     recommended in section 104'' and inserting ``as required 
     under section 102(4)''.
       (b) Use of Single Application for All Subsequent 
     Elections.--Section 104 of such Act (42 U.S.C. 1973ff-3) is 
     amended to read as follows:

     ``SEC. 104. USE OF SINGLE APPLICATION FOR ALL SUBSEQUENT 
                   ELECTIONS.

       ``(a) In General.--If a State accepts and processes an 
     official post card form (prescribed under section 101) 
     submitted by an absent uniformed services voter or overseas 
     voter for simultaneous voter registration and absentee ballot 
     application (in accordance with section 102(a)(4)) and the 
     voter requests that the application be considered an 
     application for an absentee ballot for each subsequent 
     election for Federal office held in the State during that 
     year, the State shall provide an absentee ballot to the voter 
     for each subsequent election for Federal office held in the 
     State during that year.
       ``(b) Exception for Voters Changing Registration.--
     Subsection (a) shall not apply with respect to a voter 
     registered to vote in a State for any election held after the 
     voter notifies the State that the voter no longer wishes to 
     be registered to vote in the State or after the State 
     determines that the voter has registered to vote in another 
     State.
       ``(c) Revision of Official Post Card Form.--The 
     Presidential designee shall revise the official post card 
     form (prescribed under section 101) to enable a voter using 
     the form to--
       ``(1) request an absentee ballot for each election for 
     Federal office held in a State during a year; or
       ``(2) request an absentee ballot for only the next 
     scheduled election for Federal office held in a State.
       ``(d) No Effect on Voter Removal Programs.--Nothing in this 
     section may be construed to prevent a State from removing any 
     voter from the rolls of registered voters in the State under 
     any program or method permitted under section 8 of the 
     National Voter Registration Act of 1993.''.

     SEC. 1607. USE OF CERTAIN DEPARTMENT OF DEFENSE FACILITIES AS 
                   POLLING PLACES.

       (a) Use of Military Facilities.--Section 2670 of title 10, 
     United States Code, is amended by adding at the end the 
     following new subsection:
       ``(b) Use of Certain Facilities as Polling Places.--(1) 
     Notwithstanding chapter 29 of title 18 (including sections 
     592 and 593 of such title) or any other provision of law, the 
     Secretary of Defense or Secretary of a military department 
     may not (except as provided in paragraph (3)) prohibit the 
     designation or use of a qualifying facility under the 
     jurisdiction of the Secretary as an official polling place 
     for local, State, or Federal elections.
       ``(2) A Department of Defense facility is a qualifying 
     facility for purposes of this subsection if as of December 
     31, 2000--
       ``(A) the facility is designated as an official polling 
     place by a State or local election official; or
       ``(B) the facility has been used as such an official 
     polling place since January 1, 1996.

[[Page 25258]]

       ``(3) The limitation in paragraph (1) may be waived by the 
     Secretary of Defense or Secretary of the military department 
     concerned with respect to a particular Department of Defense 
     facility if the Secretary of Defense or Secretary concerned 
     determines that local security conditions require prohibition 
     of the designation or use of that facility as an official 
     polling place for any election.''.
       (b) Conforming and Clerical Amendments.--(1) Such section 
     is further amended--
       (A) by striking ``Under'' and inserting ``(a) Use by Red 
     Cross.--Under''; and
       (B) by striking ``this section'' and inserting ``this 
     subsection''.
       (2) The heading of such section is amended to read as 
     follows:

     ``Sec. 2670. Military installations: use by American National 
       Red Cross; use as polling places''.

       (3) The item relating to such section in the table of 
     sections at the beginning of chapter 159 of such title is 
     amended to read as follows:

``2670. Military installations: use by American National Red Cross; use 
              as polling places.''.
            DIVISION B--MILITARY CONSTRUCTION AUTHORIZATIONS

     SEC. 2001. SHORT TITLE; DEFINITION.

       (a) Short Title.--This division may be cited as the 
     ``Military Construction Authorization Act for Fiscal Year 
     2002''.
       (b) Definition of Fiscal Year 2001 Defense Authorization 
     Act.--In this division, the term ``Spence Act'' means the 
     Floyd D. Spence National Defense Authorization Act for Fiscal 
     Year 2001, as enacted into law by Public Law 106-398 (114 
     Stat. 1654).
                            TITLE XXI--ARMY
Sec. 2101. Authorized Army construction and land acquisition projects.
Sec. 2102. Family housing.
Sec. 2103. Improvements to military family housing units.
Sec. 2104. Authorization of appropriations, Army.
Sec. 2105. Modification of authority to carry out certain fiscal year 
              2001 projects.
Sec. 2106. Modification of authority to carry out certain fiscal year 
              2000 projects.

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

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

                     Army: Inside the United States
------------------------------------------------------------------------
                                    Installation or
             State                      location             Amount
------------------------------------------------------------------------
Alabama........................  Anniston Army Depot..        $5,150,000
                                 Fort Rucker..........       $18,200,000
                                 Redstone Arsenal.....        $9,900,000
Alaska.........................  Fort Richardson......      $115,000,000
                                 Fort Wainwright......       $27,200,000
Arizona........................  Fort Huachuca........        $6,100,000
                                 Yuma Proving Ground..        $3,100,000
California.....................  Defense Language             $5,900,000
                                  Institute.
                                 Fort Irwin...........       $23,000,000
Colorado.......................  Fort Carson..........       $66,000,000
District of Columbia...........  Fort McNair..........       $11,600,000
Georgia........................  Fort Benning.........       $23,900,000
                                 Fort Gillem..........       $34,600,000
                                 Fort Gordon..........       $34,000,000
                                 Fort Stewart/Hunter         $39,800,000
                                  Army Air Field......
Hawaii.........................  Kahuku Windmill Site.          $900,000
                                 Navy Public Works           $11,800,000
                                  Center, Pearl Harbor
                                 Pohakuloa Training           $6,600,000
                                  Facility............
                                 Wheeler Army Air            $50,000,000
                                  Field.
Illinois.......................  Rock Island Arsenal..        $3,500,000
Kansas.........................  Fort Riley...........       $10,900,000
Kentucky.......................  Fort Campbell........       $88,900,000
                                 Fort Knox............       $12,000,000
Louisiana......................  Fort Polk............       $21,200,000
Maryland.......................  Aberdeen Proving            $58,300,000
                                  Ground.
                                 Fort Meade...........       $11,200,000
Missouri.......................  Fort Leonard Wood....        $7,850,000
New Jersey.....................  Fort Monmouth........       $20,000,000
                                 Picatinny Arsenal....       $10,200,000
New Mexico.....................  White Sands Missile          $7,600,000
                                  Range.
New York.......................  Fort Drum............       $56,350,000
North Carolina.................  Fort Bragg...........       $21,300,000
                                 Sunny Point Military        $11,400,000
                                  Ocean Terminal......
Oklahoma.......................  Fort Sill............        $5,100,000
South Carolina.................  Fort Jackson.........       $65,650,000
Texas..........................  Corpus Christi Army         $10,400,000
                                  Depot.
                                 Fort Sam Houston.....        $2,250,000
                                 Fort Bliss...........        $5,000,000
                                 Fort Hood............      $104,200,000
Virginia.......................  Fort Belvoir.........       $35,950,000
                                 Fort Eustis..........       $34,650,000
                                 Fort Lee.............       $23,900,000
Washington.....................  Fort Lewis...........      $238,200,000
                                                       -----------------
                                   Total:.............    $1,358,750,000
------------------------------------------------------------------------

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

                     Army: Outside the United States
------------------------------------------------------------------------
                                     Installation or
            Country                      location             Amount
------------------------------------------------------------------------
Germany........................  Area Support Group,         $36,000,000
                                  Bamberg...............
                                 Area Support Group,         $13,500,000
                                  Darmstadt.............
                                 Baumholder.............      $9,000,000
                                 Hanau..................      $7,200,000
                                 Heidelberg.............     $15,300,000
                                 Mannheim...............     $16,000,000
                                 Wiesbaden Air Base.....     $26,300,000
Japan..........................  Camp Schab.............      $3,800,000
Korea..........................  Camp Carroll...........     $16,593,000
                                 Camp Casey.............      $8,500,000
                                 Camp Hovey.............     $35,750,000
                                 Camp Humphreys.........     $14,500,000
                                 Camp Jackson...........      $6,100,000
                                 Camp Stanley...........     $28,000,000
                                 Camp Yongsan...........     $12,800,000
Kwajalein......................  Kwajalein Atoll........     $11,000,000
                                                         ---------------
                                   Total:...............    $260,343,000
------------------------------------------------------------------


[[Page 25259]]

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

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

     SEC. 2102. FAMILY HOUSING.

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

                                              Army: Family Housing
----------------------------------------------------------------------------------------------------------------
            State or Country                Installation or location             Purpose               Amount
----------------------------------------------------------------------------------------------------------------
Alaska..................................  Fort Wainwright............  32 Units...................   $12,000,000
Arizona.................................  Fort Huachuca..............  72 Units...................   $10,800,000
Kansas..................................  Fort Leavenworth...........  80 Units...................   $20,000,000
Texas...................................  Fort Bliss.................  76 Units...................   $13,600,000
                                          Fort Sam Houston...........  80 Units...................   $11,200,000
Korea...................................  Camp Humphreys.............  54 Units...................   $12,800,000
                                                                                                   -------------
                                                                         Total:...................   $80,400,000
----------------------------------------------------------------------------------------------------------------

       (b) Planning and Design.--Using amounts appropriated 
     pursuant to the authorization of appropriations in section 
     2104(a)(6)(A), the Secretary of the Army may carry out 
     architectural and engineering services and construction 
     design activities with respect to the construction or 
     improvement of family housing units in an amount not to 
     exceed $11,592,000.

     SEC. 2103. IMPROVEMENTS TO MILITARY FAMILY HOUSING UNITS.

       Subject to section 2825 of title 10, United States Code, 
     and using amounts appropriated pursuant to the authorization 
     of appropriations in section 2104(a)(6)(A), the Secretary of 
     the Army may improve existing military family housing units 
     in an amount not to exceed $220,750,000.

     SEC. 2104. AUTHORIZATION OF APPROPRIATIONS, ARMY.

       (a) In General.--Funds are hereby authorized to be 
     appropriated for fiscal years beginning after September 30, 
     2001, for military construction, land acquisition, and 
     military family housing functions of the Department of the 
     Army in the total amount of $3,155,594,000, as follows:
       (1) For military construction projects inside the United 
     States authorized by section 2101(a), $1,127,750,000.
       (2) For military construction projects outside the United 
     States authorized by section 2101(b), $260,343,000.
       (3) For a military construction project at an unspecified 
     worldwide location authorized by section 2101(c), $4,000,000.
       (4) For unspecified minor construction projects authorized 
     by section 2805 of title 10, United States Code, $18,000,000.
       (5) For architectural and engineering services and 
     construction design under section 2807 of title 10, United 
     States Code, $159,533,000.
       (6) For military family housing functions:
       (A) For construction and acquisition, planning and design, 
     and improvement of military family housing and facilities, 
     $312,742,000.
       (B) For support of military family housing (including the 
     functions described in section 2833 of title 10, United 
     States Code), $1,089,573,000.
       (7) For the construction of a cadet development center at 
     the United States Military Academy, West Point, New York, 
     authorized by section 2101(a) of the Military Construction 
     Authorization Act for Fiscal Year 1999 (division B of Public 
     Law 105-261; 112 Stat. 2182), $37,900,000.
       (8) For the construction of phase 2C of a barracks complex, 
     Tagaytay Street, at Fort Bragg, North Carolina, authorized by 
     section 2101(a) of the Military Construction Authorization 
     Act for Fiscal Year 2000 (division B of Public Law 106-65; 
     113 Stat. 825), $17,500,000.
       (9) For the construction of phase 1C of a barracks complex, 
     Wilson Street, at Schofield Barracks, Hawaii, authorized by 
     section 2101(a) of the Military Construction Authorization 
     Act for Fiscal Year 2000 (division B of Public Law 106-65; 
     113 Stat. 825), $23,000,000.
       (10) For construction of phase 2 of a basic combat training 
     complex at Fort Leonard Wood, Missouri, authorized by section 
     2101(a) of the Military Construction Authorization Act for 
     Fiscal Year 2001 (division B of the Spence Act; 114 Stat. 
     1654A-389), as amended by section 2105 of this Act, 
     $27,000,000.
       (11) For the construction of phase 2 of a battle simulation 
     center at Fort Drum, New York, authorized by section 2101(a) 
     of the Military Construction Authorization Act for Fiscal 
     Year 2001 (division B of the Spence Act; 114 Stat. 1654A-
     389), as amended by section 2105 of this Act, $9,000,000.
       (12) For the construction of phase 1 of a barracks complex, 
     Butner Road, at Fort Bragg, North Carolina, authorized by 
     section 2101(a) of the Military Construction Authorization 
     Act for Fiscal Year 2001 (division B of the Spence Act; 114 
     Stat. 1654A-389), $49,000,000.
       (13) For the construction of phase 1 of a barracks complex, 
     Longstreet Road, at Fort Bragg, North Carolina, authorized by 
     section 2101(a) of the Military Construction Authorization 
     Act for Fiscal Year 2001 (division B of the Spence Act; 114 
     Stat. 1654A-389), $27,000,000.
       (14) For the construction of a multipurpose digital 
     training range at Fort Hood, Texas, authorized by section 
     2101(a) of the Military Construction Authorization Act for 
     Fiscal Year 2001 (division B of the Spence Act; 114 Stat. 
     1654A-389), as amended by section 2105 of this Act, 
     $13,000,000.
       (15) For the homeowners assistance program, as authorized 
     by section 2832(a) of title 10, United States Code, 
     $10,119,000, to remain available until expended.
       (b) Limitation on Total Cost of Construction Projects.--
     Notwithstanding the cost variations authorized by section 
     2853 of title 10, United States Code, and any other cost 
     variation authorized by law, the total cost of all projects 
     carried out under section 2101 of this Act may not exceed--
       (1) the total amount authorized to be appropriated under 
     paragraphs (1), (2), and (3) of subsection (a);
       (2) $52,000,000 (the balance of the amount authorized under 
     section 2201(a) for construction of a barracks complex, D 
     Street, at Fort Richardson, Alaska);
       (3) $41,000,000 (the balance of the amount authorized under 
     section 2201 (a) for construction of phase 1 of a barracks 
     complex, Nelson Boulevard, at Fort Carson, Colorado);
       (4) $36,000,000 (the balance of the amount authorized under 
     section 2201(a) for construction of phase 1 of a basic combat 
     training complex at Fort Jackson, South Carolina); and
       (5) $102,000,000 (the balance of the amount authorized 
     under section 2201(a) for construction of a barracks complex, 
     17th & B Streets, at Fort Lewis, Washington).
       (c) Adjustment.--The total amount authorized to be 
     appropriated pursuant to paragraphs (1) through (15) of 
     subsection (a) is the sum of the amounts authorized to be 
     appropriated in such paragraphs, reduced by $29,866,000, 
     which represents the combination of savings resulting from 
     adjustments to foreign currency exchange rates for military 
     construction, military family housing construction, and 
     military family housing support outside the United States and 
     savings resulting from favorable bids, reduced overhead 
     charges, and cancellations due to force structure changes.

     SEC. 2105. MODIFICATION OF AUTHORITY TO CARRY OUT CERTAIN 
                   FISCAL YEAR 2001 PROJECTS.

       (a) Modification.--The table in section 2101(a) of the 
     Military Construction Authorization Act for Fiscal Year 2001 
     (division B of the Spence Act; 114 Stat. 1654A-389) is 
     amended--
       (1) in the item relating to Fort Leonard Wood, Missouri, by 
     striking ``$65,400,000'' in the amount column and inserting 
     ``$69,800,000'';
       (2) in the item relating to Fort Drum, New York, by 
     striking ``$18,000,000'' in the amount column and inserting 
     ``$21,000,000'';
       (3) in the item relating to Fort Hood, Texas, by striking 
     ``$36,492,000'' in the amount column and inserting 
     ``$39,492,000''; and
       (4) by striking the amount identified as the total in the 
     amount column and inserting ``$626,374,000''.
       (b) Conforming Amendments.--Section 2104 of that Act (114 
     Stat. 1654A-391) is amended--
       (1) in subsection (a), in the matter preceding paragraph 
     (1), by striking ``$1,925,344,000'' and inserting 
     ``$1,935,744,000''; and
       (2) in subsection (b)--
       (A) in paragraph (2), by striking ``$22,600,000'' and 
     inserting ``$27,000,000'';
       (B) in paragraph (3), by striking ``$10,000,000'' and 
     inserting ``$13,000,000''; and
       (C) in paragraph (6), by striking ``$6,000,000'' and 
     inserting ``$9,000,000''.

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

       Section 2104 of the Military Construction Authorization Act 
     for Fiscal Year 2000 (division B of Public Law 106-65; 113 
     Stat. 826), as amended

[[Page 25260]]

     by section 2105(c) of the Spence Act; 114 Stat. 1654A-393), 
     is amended --
       (1) in subsection (a)--
       (A) in the matter preceding paragraph (1), by striking 
     ``$2,358,331,000'' and inserting ``$2,321,931,000''; and
       (B) in paragraph (1), by striking ``$930,058,000'' and 
     inserting ``$893,658,000''; and
       (2) in subsection (b)(7), by striking ``$102,500,000'' and 
     inserting ``$138,900,000''.
                            TITLE XXII--NAVY
Sec. 2201. Authorized Navy construction and land acquisition projects.
Sec. 2202. Family housing.
Sec. 2203. Improvements to military family housing units.
Sec. 2204. Authorization of appropriations, Navy.
Sec. 2205. Modification of authority to carry out certain fiscal year 
              2001 projects.
Sec. 2206. Modification of authority to carry out certain fiscal year 
              2000 project.

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

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

                     Navy: Inside the United States
------------------------------------------------------------------------
                                     Installation or
             State                      location              Amount
------------------------------------------------------------------------
Arizona........................  Marine Corps Air            $22,570,000
                                  Station, Yuma........
California.....................  Marine Air-Ground Task      $75,125,000
                                  Force Training
                                  Center, Twentynine
                                  Palms................
                                 Marine Corps Air             $4,470,000
                                  Station, Camp
                                  Pendleton............
                                 Marine Corps Base,          $96,490,000
                                  Camp Pendleton.......
                                 Naval Air Facility, El      $23,520,000
                                  Centro...............
                                 Naval Air Station,          $10,010,000
                                  Lemoore..............
                                 Naval Air Warfare           $30,200,000
                                  Center, China Lake...
                                 Naval Air Warfare           $13,730,000
                                  Center, Point Mugu,
                                  San Nicholas Island..
                                 Naval Amphibious Base,       $8,610,000
                                  Coronado.............
                                 Naval Construction          $12,400,000
                                  Battalion Center,
                                  Port Hueneme.........
                                 Naval Construction           $3,780,000
                                  Training Center, Port
                                  Hueneme..............
                                 Naval Station, San          $47,240,000
                                  Diego.
District of Columbia...........  Naval Air Facility,          $9,810,000
                                  Washington...........
Florida........................  Naval Air Station, Key      $11,400,000
                                  West.
                                 Naval Air Station,           $2,140,000
                                  Whiting Field, Milton
                                 Naval Station, Mayport      $16,420,000
                                 Naval Station,               $3,700,000
                                  Pensacola.
Hawaii.........................  Marine Corps Base,          $24,920,000
                                  Kaneohe..............
                                 Naval Magazine               $6,000,000
                                  Lualualei.
                                 Naval Shipyard, Pearl       $20,000,000
                                  Harbor.
                                 Naval Station, Pearl        $54,700,000
                                  Harbor.
                                 Navy Public Works           $16,900,000
                                  Center, Pearl Harbor.
Illinois.......................  Naval Training Center,      $82,260,000
                                  Great Lakes..........
Indiana........................  Naval Surface Warfare       $14,930,000
                                  Center, Crane........
Maine..........................  Naval Air Station,          $67,395,000
                                  Brunswick.
                                 Naval Shipyard,             $14,620,000
                                  Portsmouth...........
Maryland.......................  Naval Air Warfare            $2,260,000
                                  Center, Patuxent
                                  River................
                                 Naval Air Warfare            $5,100,000
                                  Center, St. Inigoes..
                                 Naval Explosive              $1,250,000
                                  Ordinance Disposal
                                  Technology Center,
                                  Indian Head..........
Mississippi....................  Naval Air Station,           $3,370,000
                                  Meridian.
                                 Naval Construction          $21,660,000
                                  Battalion Center,
                                  Gulfport.............
                                 Naval Station,               $4,680,000
                                  Pascaguola...........
Missouri.......................  Marine Corps Support         $9,010,000
                                  Activity, Kansas City
Nevada.........................  Naval Air Station,           $6,150,000
                                  Fallon...............
New Jersey.....................  Naval Weapons Station,       $4,370,000
                                  Earle................
North Carolina.................  Marine Corps Air             $4,050,000
                                  Station, New River...
                                 Marine Corps Base,          $67,070,000
                                  Camp Lejeune.........
Pennsylvania...................  Naval Foundry and           $14,800,000
                                  Propeller Center,
                                  Philadelphia.........
Rhode Island...................  Naval Station, Newport      $15,290,000
                                 Naval Underwater             $9,370,000
                                  Warfare Center,
                                  Newport..............
South Carolina.................  Marine Corps Air             $8,020,000
                                  Station, Beaufort....
                                 Marine Corps Recruit         $5,430,000
                                  Depot, Parris Island.
Tennessee......................  Naval Support                $3,900,000
                                  Activity, Millington.
Virginia.......................  Marine Corps Air             $3,790,000
                                  Facility, Quantico...
                                 Marine Corps Combat          $9,390,000
                                  Dev Com..............
                                 Naval Amphibious Base,       $9,090,000
                                  Little Creek.........
                                 Naval Station, Norfolk     $139,270,000
Washington.....................  Naval Air Station,           $7,370,000
                                  Whidbey Island.......
                                 Naval Station, Everett       $6,820,000
                                 Strategic Weapons            $3,900,000
                                  Facility, Bangor.....
                                                        ----------------
                                   Total:..............   $1,058,750,000
------------------------------------------------------------------

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

                     Navy: Outside the United States
------------------------------------------------------------------------
                                     Installation or
            Country                      location             Amount
------------------------------------------------------------------------
Greece.........................  Naval Support Activity      $12,240,000
                                  Joint Headquarters
                                  Command, Larissa......
                                 Naval Support Activity,      $3,210,000
                                  Souda Bay.............
Guam...........................  Naval Station, Guam....      $9,300,000
                                 Navy Public Works           $14,800,000
                                  Center, Guam.
Iceland........................  Naval Air Station,           $2,820,000
                                  Keflavik.
Italy..........................  Naval Air Station,           $3,060,000
                                  Sigonella.
Spain..........................  Naval Station, Rota....      $2,240,000
                                                         ---------------
                                   Total:...............     $47,670,000
------------------------------------------------------------------------

     SEC. 2202. FAMILY HOUSING.

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

                                              Navy: Family Housing
----------------------------------------------------------------------------------------------------------------
                 State                     Installation or location             Purpose               Amount
----------------------------------------------------------------------------------------------------------------
Arizona................................  Marine Corps Air Station,    51 Units..................      $9,017,000
                                          Yuma......................
California.............................  Marine Air-Ground Task       74 Units..................     $16,250,000
                                          Force Training Center,
                                          Twentynine Palms..........
Hawaii.................................  Marine Corps Base, Kaneohe.  172 Units.................     $46,996,000
                                         Naval Station, Pearl Harbor  70 Units..................     $16,827,000

[[Page 25261]]

 
Mississippi............................  Naval Construction           160 Units.................     $23,354,000
                                          Battalion Center, Gulfport
Virginia...............................  Marine Corps Combat          60 Units..................      $7,000,000
                                          Development Command,
                                          Quantico..................
Italy..................................  Naval Air Station,           10 Units..................      $2,403,000
                                          Sigonella.................
                                                                                                 ---------------
                                                                        Total:..................    $121,847,000
----------------------------------------------------------------------------------------------------------------

       (b) Planning and Design.--Using amounts appropriated 
     pursuant to the authorization of appropriations in section 
     2204(a)(5)(A), the Secretary of the Navy may carry out 
     architectural and engineering services and construction 
     design activities with respect to the construction or 
     improvement of military family housing units in an amount not 
     to exceed $6,499,000.

     SEC. 2203. IMPROVEMENTS TO MILITARY FAMILY HOUSING UNITS.

       Subject to section 2825 of title 10, United States Code, 
     and using amounts appropriated pursuant to the authorization 
     of appropriations in section 2204(a)(5)(A), the Secretary of 
     the Navy may improve existing military family housing units 
     in an amount not to exceed $203,434,000.

     SEC. 2204. AUTHORIZATION OF APPROPRIATIONS, NAVY.

       (a) In General.--Funds are hereby authorized to be 
     appropriated for fiscal years beginning after September 30, 
     2001, for military construction, land acquisition, and 
     military family housing functions of the Department of the 
     Navy in the total amount of $2,366,742,000, as follows:
       (1) For military construction projects inside the United 
     States authorized by section 2201(a), $1,005,410,000.
       (2) For military construction projects outside the United 
     States authorized by section 2201(b), $47,670,000.
       (3) For unspecified minor construction projects authorized 
     by section 2805 of title 10, United States Code, $10,546,000.
       (4) For architectural and engineering services and 
     construction design under section 2807 of title 10, United 
     States Code, $39,557,000.
       (5) For military family housing functions:
       (A) For construction and acquisition, planning and design, 
     and improvement of military family housing and facilities, 
     $331,780,000.
       (B) For support of military housing (including functions 
     described in section 2833 of title 10, United States Code), 
     $910,095,000.
       (6) For construction of phase 6 of a large anachoic chamber 
     facility at the Patuxent River Naval Air Warfare Center, 
     Maryland, authorized by section 2201(a) of the Military 
     Construction Authorization Act for Fiscal Year 1993 (division 
     B of Public Law 102-484; 106 Stat. 2590), $10,770,000.
       (7) For construction of the Commander-in-Chief 
     Headquarters, Pacific Command, Camp H.M. Smith, Hawaii, 
     authorized by section 2201(a) of the Military Construction 
     Authorization Act for Fiscal Year 2000 (division B of Public 
     Law 106-65; 113 Stat. 828), as amended by section 2206 of 
     this Act, $37,580,000.
       (8) For repair of a pier at Naval Station, San Diego, 
     California, authorized by section 2201(a) of the Military 
     Construction Authorization Act for Fiscal Year 2001 (division 
     B of the Spence Act; 114 Stat. 1654A-396), $17,500,000.
       (9) For replacement of a pier at Naval Station, Bremerton, 
     Washington, formerly Naval Shipyard, Bremerton, Puget Sound, 
     Washington, authorized by section 2201(a) of the Military 
     Construction Authorization Act for Fiscal Year 2001 (division 
     B of the Spence Act; 114 Stat. 1654A-396), as amended by 
     section 2205 of this Act, $24,460,000.
       (10) For construction of an industrial skills center at 
     Puget Sound Naval Shipyard, Bremerton, Washington, formerly 
     Naval Shipyard, Bremerton, Puget Sound, Washington, 
     authorized by section 2201(a) of the Military Construction 
     Authorization Act for Fiscal Year 2001 (division B of the 
     Spence Act; 114 Stat. 1654A-396), as amended by section 2205 
     of this Act, $14,000,000.
       (b) Limitation on Total Cost of Construction Projects.--
     Notwithstanding the cost variations authorized by section 
     2853 of title 10, United States Code, and any other cost 
     variation authorized by law, the total cost of all projects 
     carried out under section 2201 of this Act may not exceed--
       (1) the total amount authorized to be appropriated under 
     paragraphs (1) and (2) of subsection (a);
       (2) $33,240,000 (the balance of the amount authorized under 
     section 2201(a) for replacement of a pier, increment I, at 
     Naval Station, Norfolk, Virginia); and
       (3) $20,100,000 (the balance of the amount authorized under 
     section 2201(a) for a combined propulsion and explosives lab 
     at Naval Air Warfare Center, China Lake, California).
       (c) Adjustment.--The total amount authorized to be 
     appropriated pursuant to paragraphs (1) through (10) of 
     subsection (a) is the sum of the amounts authorized to be 
     appropriated in such paragraphs, reduced by $82,626,000, 
     which represents the combination of savings resulting from 
     adjustments to foreign currency exchange rates for military 
     construction, military family housing construction, and 
     military family housing support outside the United States and 
     savings resulting from favorable bids, reduced overhead 
     charges, and cancellations due to force structure changes.

     SEC. 2205. MODIFICATION OF AUTHORITY TO CARRY OUT CERTAIN 
                   FISCAL YEAR 2001 PROJECTS.

       (a) Authorized Construction and Land Acquisition.--The 
     table in section 2201(a) of the Military Construction 
     Authorization Act for Fiscal Year 2001 (division B of the 
     Spence Act; 114 Stat. 1654A-395) is amended--
       (1) in the item relating to Naval Shipyard, Bremerton, 
     Puget Sound, Washington, by striking ``$100,740,000'' in the 
     amount column and inserting ``$102,460,000'';
       (2) in the item relating to Naval Station, Bremerton, 
     Washington, by striking ``$11,930,000'' in the amount column 
     and inserting ``$1,930,000''; and
       (3) by striking the amount identified as the total in the 
     amount column and inserting ``$803,217,000''.
       (b) Planning and Design.--Section 2204(a) of that Act (114 
     Stat. 1654A-398) is amended--
       (1) in the matter preceding paragraph (1), by striking 
     ``$2,227,995,000'' and inserting ``$2,208,407,000''; and
       (2) in paragraph (4), by striking ``$73,335,000'' and 
     inserting ``$53,747,000''.
       (c) Conforming Amendment.--Section 2204(b)(4) of that Act 
     (114 Stat. 1654A-398) is amended by striking ``$10,280,000'' 
     and inserting ``$14,000,000''.

     SEC. 2206. MODIFICATION OF AUTHORITY TO CARRY OUT CERTAIN 
                   FISCAL YEAR 2000 PROJECT.

       (a) Modification.--The table in section 2201(a) of the 
     Military Construction Authorization Act for Fiscal Year 2000 
     (division B of Public Law 106-65; 113 Stat. 828) is amended--
       (1) in the item relating to Camp H.M. Smith, Hawaii, by 
     striking ``$86,050,000'' in the amount column and inserting 
     ``$89,050,000''; and
       (2) by striking the amount identified as the total in the 
     amount column and inserting ``$820,230,000''.
       (b) Conforming Amendment.--Section 2204(b)(3) of that Act 
     (113 Stat. 831) is amended by striking ``$70,180,000'' and 
     inserting ``$73,180,000''.
                         TITLE XXIII--AIR FORCE

Sec. 2301. Authorized Air Force construction and land acquisition 
              projects.
Sec. 2302. Family housing.
Sec. 2303. Improvements to military family housing units.
Sec. 2304. Authorization of appropriations, Air Force.
Sec. 2305. Modification of authority to carry out certain fiscal year 
              2001 projects.

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

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


                   Air Force: Inside the United States
------------------------------------------------------------------------
                                     Installation or
             State                       location             Amount
------------------------------------------------------------------------
Alabama........................  Maxwell Air Force Base.     $34,400,000
Alaska.........................  Eareckson Air Force          $4,600,000
                                  Base.
                                 Elmendorf Air Force         $32,200,000
                                  Base.
Arizona........................  Davis-Monthan Air Force     $23,500,000
                                  Base..................
                                 Luke Air Force Base....      $4,500,000
Arkansas.......................  Little Rock Air Force       $18,100,000
                                  Base..................
California.....................  Beale Air Force Base...      $7,900,000
                                 Edwards Air Force Base.     $16,300,000
                                 Los Angeles Air Force       $23,000,000
                                  Base.
                                 Travis Air Force Base..     $10,100,000
                                 Vandenberg Air Force        $11,800,000
                                  Base.
Colorado.......................  Buckley Air Force Base.     $23,200,000
                                 Schriever Air Force         $30,400,000
                                  Base.

[[Page 25262]]

 
                                 United States Air Force     $25,500,000
                                  Academy...............
Delaware.......................  Dover Air Force Base...      $7,300,000
District of Columbia...........  Bolling Air Force Base.      $2,900,000
Florida........................  Cape Canaveral Air           $7,800,000
                                  Force Station.........
                                 Eglin Air Force Base...     $11,400,000
                                 Hurlburt Field.........     $10,400,000
                                 Tyndall Air Force Base.     $20,350,000
Georgia........................  Moody Air Force Base...      $8,600,000
                                 Robins Air Force Base..     $14,650,000
Idaho..........................  Mountain Home Air Force     $14,600,000
                                  Base..................
Kansas.........................  McConnell Air Force          $5,100,000
                                  Base.
Louisiana......................  Barksdale Air Force          $5,000,000
                                  Base.
Maryland.......................  Andrews Air Force Base.     $19,420,000
Massachusetts..................  Hanscom Air Force Base.      $9,400,000
Mississippi....................  Columbus Air Force Base      $5,000,000
                                 Keesler Air Force Base.     $28,600,000
Montana........................  Malmstrom Air Force          $4,650,000
                                  Base.
Nevada.........................  Nellis Air Force Base..     $31,600,000
New Jersey.....................  McGuire Air Force Base.     $36,550,000
New Mexico.....................  Cannon Air Force Base..      $9,400,000
                                 Kirtland Air Force Base     $19,800,000
North Carolina.................  Pope Air Force Base....     $17,800,000
North Dakota...................  Grand Forks Air Force        $7,800,000
                                  Base.
Ohio...........................  Wright-Patterson Air        $28,250,000
                                  Force Base............
Oklahoma.......................  Altus Air Force Base...     $20,200,000
                                 Tinker Air Force Base..     $21,400,000
South Carolina.................  Shaw Air Force Base....      $5,800,000
South Dakota...................  Ellsworth Air Force         $12,200,000
                                  Base.
Tennessee......................  Arnold Air Force Base..     $24,400,000
Texas..........................  Dyess Air Force Base...     $16,800,000
                                 Lackland Air Force Base     $12,800,000
                                 Laughlin Air Force Base     $15,600,000
                                 Sheppard Air Force Base     $45,200,000
Utah...........................  Hill Air Force Base....     $44,000,000
Virginia.......................  Langley Air Force Base.     $47,300,000
Washington.....................  Fairchild Air Force          $2,800,000
                                  Base.
                                 McChord Air Force Base.     $20,700,000
Wyoming........................  F. E. Warren Air Force      $10,200,000
                                  Base.
                                                         ---------------
                                   Total:...............    $891,270,000
------------------------------------------------------------------------

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

                  Air Force: Outside the United States
------------------------------------------------------------------------
                                     Installation or
            Country                      location             Amount
------------------------------------------------------------------------
Germany........................  Ramstein Air Force Base     $42,900,000
                                 Spangdahlem Air Base...      $8,700,000
Guam...........................  Andersen Air Force Base     $10,150,000
Italy..........................  Aviano Air Base........     $11,800,000
Korea..........................  Kunsan Air Base........     $12,000,000
                                 Osan Air Base..........    $101,142,000
Oman...........................  Masirah................      $8,000,000
Turkey.........................  Eskisehir..............      $4,000,000
                                 Incirlik...............      $5,500,000
United Kingdom.................  Royal Air Force,            $11,300,000
                                  Lakenheath.
                                 Royal Air Force,            $22,400,000
                                  Mildenhall.
Wake Island....................  Wake Island............     $25,000,000
                                                         ---------------
                                   Total:...............    $262,892,000
------------------------------------------------------------------------

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


                                        Air Force: Unspecified Worldwide
----------------------------------------------------------------------------------------------------------------
                Location                          Installation                    Amount
--------------------------------------------------------------------------------------------------
Unspecified Worldwide...................  Classified Location........  $4,458,000
----------------------------------------------------------------------------------------------------------------

     SEC. 2302. FAMILY HOUSING.

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


                                            Air Force: Family Housing
----------------------------------------------------------------------------------------------------------------
                 State                     Installation or location             Purpose               Amount
----------------------------------------------------------------------------------------------------------------
Arizona................................  Luke Air Force Base........  120 Units.................     $15,712,000
California.............................  Travis Air Force Base......  118 Units.................     $18,150,000
Colorado...............................  Buckley Air Force Base.....  55 Units..................     $11,400,000
Delaware...............................  Dover Air Force Base.......  120 Units.................     $18,145,000
District of Columbia...................  Bolling Air Force Base.....  136 Units.................     $16,926,000
Hawaii.................................  Hickam Air Force Base......  102 Units.................     $25,037,000
Idaho..................................  Mountain Home Air Force      56 Units..................     $10,000,000
                                          Base......................
Louisiana..............................  Barksdale Air Force Base...  56 Units..................      $7,300,000

[[Page 25263]]

 
South Dakota...........................  Ellsworth Air Force Base...  78 Units..................     $13,700,000
Virginia...............................  Langley Air Force Base.....  4 Units...................      $1,200,000
Portugal...............................  Lajes Field, Azores........  64 Units..................     $13,230,000
                                                                                                 ---------------
                                                                        Total:..................    $150,800,000
----------------------------------------------------------------------------------------------------------------

       (b) Planning and Design.--Using amounts appropriated 
     pursuant to the authorization of appropriations in section 
     2304(a)(6)(A), the Secretary of the Air Force may carry out 
     architectural and engineering services and construction 
     design activities with respect to the construction or 
     improvement of military family housing units in an amount not 
     to exceed $24,558,000.

     SEC. 2303. IMPROVEMENTS TO MILITARY FAMILY HOUSING UNITS.

       Subject to section 2825 of title 10, United States Code, 
     and using amounts appropriated pursuant to the authorization 
     of appropriations in section 2304(a)(6)(A), the Secretary of 
     the Air Force may improve existing military family housing 
     units in an amount not to exceed $375,345,000.

     SEC. 2304. AUTHORIZATION OF APPROPRIATIONS, AIR FORCE.

       (a) In General.--Funds are hereby authorized to be 
     appropriated for fiscal years beginning after September 30, 
     2001, for military construction, land acquisition, and 
     military family housing functions of the Department of the 
     Air Force in the total amount of $2,573,122,000, as follows:
       (1) For military construction projects inside the United 
     States authorized by section 2301(a), $879,270,000.
       (2) For military construction projects outside the United 
     States authorized by section 2301(b), $223,592,000.
       (3) For a military construction project at an unspecified 
     worldwide location authorized by section 2301(c), $4,458,000.
       (4) For unspecified minor construction projects authorized 
     by section 2805 of title 10, United States Code, $11,250,000.
       (5) For architectural and engineering services and 
     construction design under section 2807 of title 10, United 
     States Code, $94,970,000.
       (6) For military housing functions:
       (A) For construction and acquisition, planning and design, 
     and improvement of military family housing and facilities, 
     $550,703,000.
       (B) For support of military family housing (including 
     functions described in section 2833 of title 10, United 
     States Code), $844,715,000.
       (7) $12,600,000 for construction of an air freight terminal 
     and base supply complex at McGuire Air Force Base, New 
     Jersey, authorized by section 2301(a) of the Military 
     Construction Authorization Act for Fiscal Year 2001 (division 
     B of the Spence Act; 114 Stat. 1654A-399), as amended by 
     section 2305 of this Act.
       (b) Limitation on Total Cost of Construction Projects.--
     Notwithstanding the cost variations authorized by section 
     2853 of title 10, United States Code, and any other cost 
     variation authorized by law, the total cost of all projects 
     carried out under section 2301 of this Act may not exceed--
       (1) the total amount authorized to be appropriated under 
     paragraphs (1), (2), and (3) of subsection (a);
       (2) $12,000,000 (the balance of the amount authorized under 
     section 2301(a) for a maintenance depot hanger at Hill Air 
     Force Base, Utah);
       (3) $15,300,000 (the balance of the amount authorized under 
     section 2301(b) for repair of an airfield runway at Wake 
     Island); and
       (4) $24,000,000 (the balance of the amount authorized under 
     section 2301(b) for a civil engineer complex at Osan Air 
     Force Base, Korea).
       (c) Adjustment.--The total amount authorized to be 
     appropriated pursuant to paragraphs (1) through (7) of 
     subsection (a) is the sum of the amounts authorized to be 
     appropriated in such paragraphs, reduced by $48,436,000, 
     which represents the combination of savings resulting from 
     adjustments to foreign currency exchange rates for military 
     construction, military family housing construction, and 
     military family housing support outside the United States and 
     savings resulting from favorable bids, reduced overhead 
     charges, and cancellations due to force structure changes.

     SEC. 2305. MODIFICATION OF AUTHORITY TO CARRY OUT CERTAIN 
                   FISCAL YEAR 2001 PROJECTS.

       (a) McGuire Air Force Base.--The table in section 2301(a) 
     of the Military Construction Authorization Act for Fiscal 
     Year 2001 (division B of the Spence Act; 114 Stat. 1654A-399) 
     is amended--
       (1) in the item relating to McGuire Air Force Base, New 
     Jersey, by striking ``$29,772,000'' in the amount column and 
     inserting ``$32,972,000''; and
       (2) by striking the amount identified as the total in the 
     amount column and inserting ``$748,955,000''.
       (b) Mountain Home Air Force Base.--The table in section 
     2302(a) of that Act (114 Stat. 1654A-400) is amended in the 
     item relating to Mountain Home Air Force Base, Idaho, by 
     striking ``119 Units'' in the purpose column and inserting 
     ``46 Units''.
       (c) Conforming Amendment.--Section 2304(b)(2) of that Act 
     (114 Stat. 1654A-402) is amended by striking ``$9,400,000'' 
     and inserting ``$12,600,000''.
                      TITLE XXIV--DEFENSE AGENCIES
Sec. 2401. Authorized Defense Agencies construction and land 
              acquisition projects.
Sec. 2402. Energy conservation projects.
Sec. 2403. Authorization of appropriations, Defense Agencies.
Sec. 2404. Cancellation of authority to carry out certain fiscal year 
              2001 projects.
Sec. 2405. Modification of authority to carry out certain fiscal year 
              2000 projects.
Sec. 2406. Modification of authority to carry out certain fiscal year 
              1999 project.
Sec. 2407. Modification of authority to carry out certain fiscal year 
              1995 project.
Sec. 2408. Prohibition on expenditures to develop forward operating 
              location on Aruba.

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

       (a) Inside the United States.--Using amounts appropriated 
     pursuant to the authorization of appropriations in section 
     2403(a)(1), the Secretary of Defense may acquire real 
     property and carry out military construction projects for the 
     installations and locations inside the United States, and in 
     the amounts, set forth in the following table:

               Defense Agencies: Inside the United States
------------------------------------------------------------------------
                                     Installation or
             Agency                      location             Amount
------------------------------------------------------------------------
Defense Education Activity.....  Laurel Bay, South           $12,850,000
                                  Carolina..............
                                 Marine Corps Base, Camp      $8,857,000
                                  LeJeune, North
                                  Carolina..............
Defense Logistics Agency.......  Defense Distribution        $30,000,000
                                  Depot Tracy,
                                  California............
                                 Defense Distribution        $19,900,000
                                  New Cumberland,
                                  Pennsylvania..........
                                 Eielson Air Force Base,      $8,800,000
                                  Alaska................
                                 Fort Belvoir, Virginia.        $900,000
                                 Grand Forks Air Force        $9,110,000
                                  Base, North Dakota....
                                 Hickam Air Force Base,      $29,200,000
                                  Hawaii................
                                 McGuire Air Force Base,      $4,400,000
                                  New Jersey............
                                 Minot Air Force Base,       $14,000,000
                                  North Dakota..........
                                 Philadelphia,                $2,429,000
                                  Pennsylvania..........
                                 Pope Air Force Base,         $3,400,000
                                  North Carolina........
Special Operations Command.....  Aberdeen Proving             $3,200,000
                                  Ground, Maryland......
                                 CONUS Classified.......      $2,400,000
                                 Fort Benning, Georgia..      $5,100,000
                                 Fort Bragg, North           $33,562,000
                                  Carolina..............
                                 Fort Lewis, Washington.      $6,900,000
                                 Hurlburt Field, Florida     $13,400,000
                                 MacDill Air Force Base,     $12,000,000
                                  Florida...............
                                 Naval Station, San          $13,650,000
                                  Diego, California.....
TRICARE Management Activity....  Andrews Air Force Base,     $10,250,000
                                  Maryland..............
                                 Dyess Air Force Base,        $3,300,000
                                  Texas.................
                                 F. E. Warren Air Force       $2,700,000
                                  Base, Wyoming.........
                                 Fort Hood, Texas.......     $12,200,000

[[Page 25264]]

 
                                 Fort Stewart/Hunter         $11,000,000
                                  Army Air Field,
                                  Georgia...............
                                 Holloman Air Force           $5,700,000
                                  Base, New Mexico......
                                 Hurlburt Field, Florida      $8,800,000
                                 Marine Corps Base, Camp     $15,300,000
                                  Pendleton, California.
                                 Marine Corps Logistics       $5,800,000
                                  Base, Albany, Georgia.
                                 Naval Air Station,           $6,600,000
                                  Whidbey Island,
                                  Washington............
                                 Naval Hospital,              $1,600,000
                                  Twentynine Palms,
                                  California............
                                 Naval Station, Mayport,     $24,000,000
                                  Florida...............
                                 Naval Station, Norfolk,     $21,000,000
                                  Virginia..............
                                 Schriever Air Force          $4,000,000
                                  Base, Colorado........
Washington Headquarters          Pentagon Reservation,       $25,000,000
 Services......................   Virginia..............
                                                         ---------------
                                   Total:...............    $391,308,000
------------------------------------------------------------------------

       (b) Outside the United States.--Using amounts appropriated 
     pursuant to the authorization of appropriations in section 
     2403(a)(2), the Secretary of Defense may acquire real 
     property and carry out military construction projects for the 
     installations and locations outside the United States, and in 
     the amounts, set forth in the following table:

               Defense Agencies: Outside the United States
------------------------------------------------------------------------
                                     Installation or
             Agency                      location             Amount
------------------------------------------------------------------------
Defense Education Activity.....  Aviano Air Base, Italy.      $3,647,000
                                 Geilenkirchen AB,            $1,733,000
                                  Germany...............
                                 Heidelberg, Germany....      $3,312,000
                                 Kaiserslautern, Germany      $1,439,000
                                 Kitzingen, Germany.....      $1,394,000
                                 Landstuhl, Germany.....      $1,444,000
                                 Ramstein Air Force           $2,814,000
                                  Base, Germany.........
                                 Royal Air Force,            $22,132,000
                                  Feltwell, United
                                  Kingdom...............
                                 Vogelweh Annex, Germany      $1,558,000
                                 Wiesbaden Air Base,          $1,378,000
                                  Germany...............
                                 Wuerzburg, Germany.....      $2,684,000
Defense Logistics Agency.......  Anderson Air Force          $20,000,000
                                  Base, Guam............
                                 Camp Casey, Korea......      $5,500,000
                                 Naval Station, Rota,         $3,000,000
                                  Spain.................
                                 Yokota Air Base, Japan.     $13,000,000
Office Secretary of Defense....  Comalapa Air Base, El       $12,577,000
                                  Salvador..............
TRICARE Management Activity....  Heidelberg, Germany....     $28,000,000
                                 Lajes Field, Azores,         $3,750,000
                                  Portugal..............
                                 Thule, Greenland.......     $10,800,000
                                                         ---------------
                                   Total:...............    $140,162,000
------------------------------------------------------------------------

     SEC. 2402. ENERGY CONSERVATION PROJECTS.

       Using amounts appropriated pursuant to the authorization of 
     appropriations in section 2403(a)(6), the Secretary of 
     Defense may carry out energy conservation projects under 
     section 2865 of title 10, United States Code, in the amount 
     of $27,100,000.

     SEC. 2403. AUTHORIZATION OF APPROPRIATIONS, DEFENSE AGENCIES.

       (a) In General.--Funds are hereby authorized to be 
     appropriated for fiscal years beginning after September 30, 
     2001, for military construction, land acquisition, and 
     military family housing functions of the Department of 
     Defense (other than the military departments), in the total 
     amount of $1,481,208,000, as follows:
       (1) For military construction projects inside the United 
     States authorized by section 2401(a), $391,308,000.
       (2) For military construction projects outside the United 
     States authorized by section 2401(b), $140,162,000.
       (3) For unspecified minor construction projects under 
     section 2805 of title 10, United States Code, $24,492,000.
       (4) For contingency construction projects of the Secretary 
     of Defense under section 2804 of title 10, United States 
     Code, $10,000,000.
       (5) For architectural and engineering services and 
     construction design under section 2807 of title 10, United 
     States Code, $54,496,000.
       (6) For energy conservation projects authorized by section 
     2402, $27,100,000.
       (7) For base closure and realignment activities as 
     authorized by the Defense Base Closure and Realignment Act of 
     1990 (part A of title XXIX of Public Law 101-510; 10 U.S.C. 
     2687 note), $632,713,000.
       (8) For military family housing functions:
       (A) For improvement of military family housing and 
     facilities, $250,000.
       (B) For support of military family housing (including 
     functions described in section 2833 of title 10, United 
     States Code), $43,762,000, of which not more than $37,298,000 
     may be obligated or expended for the leasing of military 
     family housing units worldwide.
       (C) For credit to the Department of Defense Family Housing 
     Improvement Fund established by section 2883(a)(1) of title 
     10, United States Code, $2,000,000.
       (9) For the construction of phase 6 of an ammunition 
     demilitarization facility at Pine Bluff Arsenal, Arkansas, 
     authorized by section 2401(a) of the Military Construction 
     Authorization Act for Fiscal Year 1995 (division B of Public 
     Law 103-337; 108 Stat. 3040), as amended by section 2407 of 
     the Military Construction Authorization Act for Fiscal Year 
     1996 (division B of Public Law 104-106; 110 Stat. 539), 
     section 2408 of the Military Construction Authorization Act 
     for Fiscal Year 1998 (division B of Public Law 105-85; 111 
     Stat. 1982), section 2406 of the Military Construction 
     Authorization Act for Fiscal Year 1999 (division B of Public 
     Law 105-261; 112 Stat. 2197), and section 2407 of this Act, 
     $26,000,000.
       (10) For the construction of phase 3 of an ammunition 
     demilitarization facility at Pueblo Army Depot, Colorado, 
     authorized by section 2401(a) of the Military Construction 
     Authorization Act for Fiscal Year 1997 (division B of Public 
     Law 104-201; 110 Stat. 2775), as amended by section 2406 of 
     the Military Construction Authorization Act for Fiscal Year 
     2000 (division B of Public Law 106-65; 113 Stat. 839), 
     $11,000,000.
       (11) For construction of phase 4 of an ammunition 
     demilitarization facility at Newport Army Depot, Indiana, 
     authorized by section 2401(a) of the Military Construction 
     Authorization Act for Fiscal Year 1999 (division B of Public 
     Law 105-261; 112 Stat. 2193), $66,000,000.
       (12) For construction of phase 4 of an ammunition 
     demilitarization facility at Aberdeen Proving Ground, 
     Maryland, authorized by section 2401(a) of the Military 
     Construction Authorization Act for Fiscal Year 1999 (division 
     B of Public Law 105-261; 112 Stat. 2193), as amended by 
     section 2406 of this Act, $66,500,000.
       (13) For the construction of phase 2 of an ammunition 
     demilitarization facility at Blue Grass Army Depot, Kentucky, 
     authorized by section 2401(a) of the Military Construction 
     Authorization Act for Fiscal Year 2000 (division B of Public 
     Law 106-65, 113 Stat. 836), as amended by section 2405 of 
     this Act, $3,000,000.
       (b) Limitation on Total Cost of Construction Projects.--
     Notwithstanding the cost variations authorized by section 
     2853 of title 10, United States Code, and any other cost 
     variation authorized by law, the total cost of all projects 
     carried out under section 2401 of this Act may not exceed the 
     total amount authorized to be appropriated under paragraphs 
     (1) and (2) of subsection (a).
       (c) Adjustments.--The total amount authorized to be 
     appropriated pursuant to paragraphs (1) through (13) of 
     subsection (a) is the sum of the amounts authorized to be 
     appropriated in such paragraphs, reduced by $17,575,000, 
     which represents the combination of savings resulting from 
     adjustments to foreign currency exchange rates for military 
     construction, military family housing construction, and 
     military family housing support outside the United States and 
     savings resulting from favorable bids, reduced overhead 
     charges, and cancellations due to force structure changes.

     SEC. 2404. CANCELLATION OF AUTHORITY TO CARRY OUT CERTAIN 
                   FISCAL YEAR 2001 PROJECTS.

       (a) Cancellation of Projects at Camp Pendleton, 
     California.--The table in section 2401(a) of the Military 
     Construction Authorization Act for Fiscal Year 2001 (division 
     B of the Spence Act; 114 Stat. 1654A-402) is amended--
       (1) under the agency heading TRICARE Management Activity, 
     by striking the item relating to Marine Corps Base, Camp 
     Pendleton, California; and
       (2) by striking the amount identified as the total in the 
     amount column and inserting ``$242,756,000''.

[[Page 25265]]

       (b) Cancellation of Projects at Unspecified Worldwide 
     Locations.--Section 2401(c) of that Act (114 Stat. 1654A-404) 
     is amended by striking ``$451,135,000'' and inserting 
     ``$30,065,000''.
       (c) Treatment of Authorization of Appropriations for 
     Certain Canceled Projects.--Of the amount authorized to be 
     appropriated by section 2403(a) of that Act (114 Stat. 1654A-
     404), and paragraph (1) of that section, $14,150,000 shall be 
     available for purposes relating to construction of the 
     Portsmouth Naval Hospital, Virginia, as authorized by section 
     2401(a) of the Military Construction Authorization Act for 
     Fiscal Years 1990 and 1991 (division B of Public Law 101-189; 
     103 Stat. 1640).
       (d) Reduction in Authorization of Appropriations for 
     Projects at Unspecified Worldwide Locations.--Section 2403 of 
     that Act (114 Stat. 1654A-404) is amended--
       (1) in subsection (a)--
       (A) in the matter preceding paragraph (1), by striking 
     ``$1,883,902,000'' and inserting ``$1,828,872,000''; and
       (B) in paragraph (3), by striking ``$85,095,000'' and 
     inserting ``$30,065,000''; and
       (2) in subsection (b), by striking ``may not exceed--'' and 
     all that follows through the end of the subsection and 
     inserting ``may not exceed the total amount authorized to be 
     appropriated under paragraphs (1) and (2) of subsection 
     (a).''.

     SEC. 2405. MODIFICATION OF AUTHORITY TO CARRY OUT CERTAIN 
                   FISCAL YEAR 2000 PROJECTS.

       (a) Modification.--The table in section 2401(a) of the 
     Military Construction Authorization Act for Fiscal Year 2000 
     (division B of Public Law 106-65; 113 Stat. 835) is amended--
       (1) under the agency heading relating to Chemical 
     Demilitarization, in the item relating to Blue Grass Army 
     Depot, Kentucky, by striking ``$206,800,000'' in the amount 
     column and inserting ``$254,030,000'';
       (2) under the agency heading relating to TRICARE Management 
     Agency--
       (A) in the item relating to Fort Wainwright, Alaska, by 
     striking ``$133,000,000'' in the amount column and inserting 
     ``$215,000,000''; and
       (B) by striking the item relating to Naval Air Station, 
     Whidbey Island, Washington; and
       (3) by striking the amount identified as the total in the 
     amount column and inserting ``$711,950,000''.
       (b) Treatment of Authorization of Appropriations for 
     Canceled Whidbey Island, Project.--Of the amount authorized 
     to be appropriated by section 2405(a) of that Act (113 Stat. 
     837), and paragraph (1) of that section, $4,700,000 shall be 
     available for purposes relating to construction of the 
     Portsmouth Naval Hospital, Virginia, as authorized by section 
     2401(a) of the Military Construction Authorization Act for 
     Fiscal Years 1990 and 1991 (division B of Public Law 101-189; 
     103 Stat. 1640).
       (c) Conforming Amendments.--Section 2405(b) of that Act 
     (113 Stat. 839) is amended--
       (1) in paragraph (2), by striking ``$115,000,000'' and 
     inserting ``$197,000,000''; and
       (2) in paragraph (3), by striking ``$184,000,000'' and 
     inserting ``$231,230,000''.

     SEC. 2406. MODIFICATION OF AUTHORITY TO CARRY OUT CERTAIN 
                   FISCAL YEAR 1999 PROJECT.

       (a) Modification.--The table in section 2401(a) of the 
     Military Construction Authorization Act for Fiscal Year 1999 
     (division B of Public Law 105-261; 112 Stat. 2193) is 
     amended--
       (1) under the agency heading relating to Chemical 
     Demilitarization, in the item relating to Aberdeen Proving 
     Ground, Maryland, by striking ``$186,350,000'' in the amount 
     column and inserting ``$223,950,000''; and
       (2) by striking the amount identified as the total in the 
     amount column and inserting ``$727,616,000''.
       (b) Conforming Amendment.--Section 2404(b)(3) of that Act 
     (112 Stat. 2196) is amended by striking ``$158,000,000'' and 
     inserting ``$195,600,000''.

     SEC. 2407. MODIFICATION OF AUTHORITY TO CARRY OUT CERTAIN 
                   FISCAL YEAR 1995 PROJECT.

       The table in section 2401 of the Military Construction 
     Authorization Act for Fiscal Year 1995 (division B of Public 
     Law 103-337; 108 Stat. 3040), as amended by section 2407 of 
     the Military Construction Authorization Act for Fiscal Year 
     1996 (division B of Public Law 104-106; 110 Stat. 539), 
     section 2408 of the Military Construction Authorization Act 
     for Fiscal Year 1998 (division B of Public Law 105-85; 111 
     Stat. 1982), and section 2406 of the Military Construction 
     Authorization Act for Fiscal Year 1999 (division B of Public 
     Law 105-261; 112 Stat. 2197), is amended under the agency 
     heading relating to Chemical Agents and Munitions 
     Destruction, in the item relating to Pine Bluff Arsenal, 
     Arkansas, by striking ``$154,400,000'' in the amount column 
     and inserting ``$177,400,000''.

     SEC. 2408. PROHIBITION ON EXPENDITURES TO DEVELOP FORWARD 
                   OPERATING LOCATION ON ARUBA.

       None of the funds appropriated under the heading ``military 
     construction, defense-wide'' in chapter 3 of title III of the 
     Emergency Supplemental Act, 2000 (Public Law 106-246; 114 
     Stat. 579), may be used by the Secretary of Defense to 
     develop any forward operating location on the island of 
     Aruba.
   TITLE XXV--NORTH ATLANTIC TREATY ORGANIZATION SECURITY INVESTMENT 
                                PROGRAM
Sec. 2501. Authorized NATO construction and land acquisition projects.
Sec. 2502. Authorization of appropriations, NATO.

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

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

     SEC. 2502. AUTHORIZATION OF APPROPRIATIONS, NATO.


       Funds are hereby authorized to be appropriated for fiscal 
     years beginning after September 30, 2001, for contributions 
     by the Secretary of Defense under section 2806 of title 10, 
     United States Code, for the share of the United States of the 
     cost of projects for the North Atlantic Treaty Organization 
     Security Investment Program authorized by section 2501, in 
     the amount of $162,600,000.
                TITLE XXVI--GUARD AND RESERVE FACILITIES
Sec. 2601. Authorized guard and reserve construction and land 
              acquisition projects.

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

       (a) In General.--There are authorized to be appropriated 
     for fiscal years beginning after September 30, 2001, for the 
     costs of acquisition, architectural and engineering services, 
     and construction of facilities for the Guard and Reserve 
     Forces, and for contributions therefor, under chapter 1803 of 
     title 10, United States Code (including the cost of 
     acquisition of land for those facilities), the following 
     amounts:
       (1) For the Department of the Army--
       (A) for the Army National Guard of the United States, 
     $393,253,000; and
       (B) for the Army Reserve, $168,969,000.
       (2) For the Department of the Navy, for the Naval and 
     Marine Corps Reserve, $52,896,000.
       (3) For the Department of the Air Force--
       (A) for the Air National Guard of the United States, 
     $253,852,000; and
       (B) for the Air Force Reserve, $73,032,000.
        TITLE XXVII--EXPIRATION AND EXTENSION OF AUTHORIZATIONS
Sec. 2701. Expiration of authorizations and amounts required to be 
              specified by law.
Sec. 2702. Extension of authorizations of certain fiscal year 1999 
              projects.
Sec. 2703. Extension of authorizations of certain fiscal year 1998 
              projects.
Sec. 2704. Effective date.

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

       (a) Expiration of Authorizations After Three Years.--Except 
     as provided in subsection (b), all authorizations contained 
     in titles XXI through XXVI for military construction 
     projects, land acquisition, family housing projects and 
     facilities, and contributions to the North Atlantic Treaty 
     Organization Security Investment program (and authorizations 
     of appropriations therefor) shall expire on the later of--
       (1) October 1, 2004; or
       (2) the date of the enactment of an Act authorizing funds 
     for military construction for fiscal year 2005.
       (b) Exception.--Subsection (a) shall not apply to 
     authorizations for military construction projects, land 
     acquisition, family housing projects and facilities, and 
     contributions to the North Atlantic Treaty Organization 
     Security Investment program (and authorizations of 
     appropriations therefor) for which appropriated funds have 
     been obligated before the later of--
       (1) October 1, 2004; or
       (2) the date of the enactment of an Act authorizing funds 
     for fiscal year 2005 for military construction projects, land 
     acquisition, family housing projects and facilities, or 
     contributions to the North Atlantic Treaty Organization 
     Security Investment program.

     SEC. 2702. EXTENSION OF AUTHORIZATIONS OF CERTAIN FISCAL YEAR 
                   1999 PROJECTS.

       (a) Extension.--Notwithstanding section 2701 of the 
     Military Construction Authorization Act for Fiscal Year 1999 
     (division B of Public Law 105-261; 112 Stat. 2199), 
     authorizations set forth in the tables in subsection (b), as 
     provided in section 2302 or 2601 of that Act, shall remain in 
     effect until October 1, 2002, or the date of the enactment of 
     an Act authorizing funds for military construction for fiscal 
     year 2003, whichever is later.
       (b) Tables.--The tables referred to in subsection (a) are 
     as follows:

[[Page 25266]]



                               Air Force: Extension of 1999 Project Authorizations
----------------------------------------------------------------------------------------------------------------
                 State                   Installation or location             Project                 Amount
----------------------------------------------------------------------------------------------------------------
Delaware..............................  Dover Air Force Base.....  Replace Family Housing (55         $8,998,000
                                                                    units)......................
Florida...............................  Patrick Air Force Base...  Replace Family Housing (46         $9,692,000
                                                                    units)......................
New Mexico............................  Kirtland Air Force Base..  Replace Family Housing (37         $6,400,000
                                                                    units)......................
Ohio..................................  Wright-Patterson Air       Replace Family Housing (40         $5,600,000
                                         Force Base..............   units)......................
----------------------------------------------------------------------------------------------------------------



                          Army National Guard: Extension of 1999 Project Authorizations
----------------------------------------------------------------------------------------------------------------
                 State                   Installation or location             Project                 Amount
----------------------------------------------------------------------------------------------------------------
Massachusetts.........................  Westfield................  Army Aviation Support              $9,274,000
                                                                    Facility....................
South Carolina........................  Spartanburg..............  Readiness Center.............      $5,260,000
----------------------------------------------------------------------------------------------------------------

     SEC. 2703. EXTENSION OF AUTHORIZATIONS OF CERTAIN FISCAL YEAR 
                   1998 PROJECTS.

       (a) Extension.--Notwithstanding section 2701 of the 
     Military Construction Authorization Act for Fiscal Year 1998 
     (division B of Public Law 105-85; 111 Stat. 1984), 
     authorizations set forth in the tables in subsection (b), as 
     provided in section 2102, 2202, or 2302 of that Act and 
     extended by section 2702 of the Military Construction 
     Authorization Act for Fiscal Year 2001 (division B of the 
     Spence Act; 114 Stat. 1654A-408), shall remain in effect 
     until October 1, 2002, or the date of the enactment of an Act 
     authorizing funds for military construction for fiscal year 
     2003, whichever is later.
       (b) Tables.--The tables referred to in subsection (a) are 
     as follows:


                                  Army: Extension of 1998 Project Authorization
----------------------------------------------------------------------------------------------------------------
                 State                   Installation or location             Project                 Amount
----------------------------------------------------------------------------------------------------------------
Maryland..............................  Fort Meade...............  Family Housing Construction        $7,900,000
                                                                    (56 units)..................
----------------------------------------------------------------------------------------------------------------



                                 Navy: Extension of 1998 Project Authorizations
----------------------------------------------------------------------------------------------------------------
                 State                   Installation or location             Project                 Amount
----------------------------------------------------------------------------------------------------------------
California............................  Naval Complex, San Diego.  Replace Family Housing (94        $13,500,000
                                                                    units)......................
California............................  Marine Corps Air Station,  Family Housing Construction       $28,881,000
                                         Miramar.................   (166 units).................
Louisiana.............................  Naval Complex, New         Replace Family Housing (100       $11,930,000
                                         Orleans.................   units)......................
Texas.................................  Naval Air Station, Corpus  Family Housing Construction       $22,250,000
                                         Christi.................   (212 units).................
----------------------------------------------------------------------------------------------------------------



                               Air Force: Extension of 1998 Project Authorization
----------------------------------------------------------------------------------------------------------------
                 State                   Installation or location             Project                 Amount
----------------------------------------------------------------------------------------------------------------
New Mexico............................  Kirtland Air Force Base..  Replace Family Housing (180       $20,900,000
                                                                    units)......................
----------------------------------------------------------------------------------------------------------------

     SEC. 2704. EFFECTIVE DATE.

       Titles XXI, XXII, XXIII, XXIV, XXV, and XXVI shall take 
     effect on the later of--
       (1) October 1, 2001; or
       (2) the date of the enactment of this Act.
                    TITLE XXVIII--GENERAL PROVISIONS

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

Sec. 2801. Increase in thresholds for certain unspecified minor 
              military construction projects.
Sec. 2802. Exclusion of unforeseen environmental hazard remediation 
              from limitation on authorized cost variations.
Sec. 2803. Repeal of annual reporting requirement on military 
              construction and military family housing activities.
Sec. 2804. Funds for housing allowances of members assigned to military 
              family housing under alternative authority for 
              acquisition and improvement of military housing.
Sec. 2805. Extension of alternative authority for acquisition and 
              improvement of military housing.
Sec. 2806. Treatment of financing costs as allowable expenses under 
              contracts for utility services from utility systems 
              conveyed under privatization initiative.

        Subtitle B--Real Property and Facilities Administration

Sec. 2811. Use of military installations for certain recreational 
              activities.
Sec. 2812. Availability of proceeds of sales of Department of Defense 
              property from certain closed military installations.
Sec. 2813. Pilot program to provide additional tools for efficient 
              operation of military installations.
Sec. 2814. Demonstration program on reduction in long-term facility 
              maintenance costs.
Sec. 2815. Base efficiency project at Brooks Air Force Base, Texas.

Subtitle C--Implementation of Prior Base Closure and Realignment Rounds

Sec. 2821. Lease back of base closure property.

                      Subtitle D--Land Conveyances

                        Part I--Army Conveyances

Sec. 2831. Land conveyance, Whittier-Anchorage Pipeline Tank Farm, 
              Anchorage, Alaska.
Sec. 2832. Lease authority, Fort DeRussy, Hawaii.
Sec. 2833. Modification of land exchange, Rock Island Arsenal, 
              Illinois.
Sec. 2834. Land conveyance, Fort Des Moines, Iowa.
Sec. 2835. Modification of land conveyances, Fort Dix, New Jersey.
Sec. 2836. Land conveyance, Engineer Proving Ground, Fort Belvoir, 
              Virginia.
Sec. 2837. Land exchange and consolidation, Fort Lewis, Washington.
Sec. 2838. Land conveyance, Army Reserve Center, Kewaunee, Wisconsin.

                       Part II--Navy Conveyances

Sec. 2841. Transfer of jurisdiction, Centerville Beach Naval Station, 
              Humboldt County, California.
Sec. 2842. Land conveyance, Port of Long Beach, California.
Sec. 2843. Conveyance of pier, Naval Base, San Diego, California.

[[Page 25267]]

Sec. 2844. Modification of authority for conveyance of Naval Computer 
              and Telecommunications Station, Cutler, Maine.
Sec. 2845. Land transfer and conveyance, Naval Security Group Activity, 
              Winter Harbor, Maine.
Sec. 2846. Land acquisition, Perquimans County, North Carolina.
Sec. 2847. Land conveyance, Naval Weapons Industrial Reserve Plant, 
              Toledo, Ohio.
Sec. 2848. Modification of land conveyance, former United States Marine 
              Corps Air Station, Eagle Mountain Lake, Texas.

                    Part III--Air Force Conveyances

Sec. 2851. Conveyance of avigation easements, former Norton Air Force 
              Base, California.
Sec. 2852. Reexamination of land conveyance, Lowry Air Force Base, 
              Colorado.
Sec. 2853. Water rights conveyance, Andersen Air Force Base, Guam.
Sec. 2854. Conveyance of segment of Loring petroleum pipeline, Maine, 
              and related easements.
Sec. 2855. Land conveyance, petroleum terminal serving former Loring 
              Air Force Base and Bangor Air National Guard Base, Maine.
Sec. 2856. Land conveyances, certain former Minuteman III ICBM 
              facilities in North Dakota.
Sec. 2857. Land conveyances, Charleston Air Force Base, South Carolina.
Sec. 2858. Transfer of jurisdiction, Mukilteo Tank Farm, Everett, 
              Washington.

                       Subtitle E--Other Matters

Sec. 2861. Management of the Presidio of San Francisco.
Sec. 2862. Transfer of jurisdiction for development of Air Force 
              morale, welfare, and recreation facility, Park City, 
              Utah.
Sec. 2863. Alternate site for United States Air Force Memorial, 
              preservation of open space on Arlington Ridge tract, and 
              related land transfer at Arlington National Cemetery, 
              Virginia.
Sec. 2864. Establishment of memorial to victims of terrorist attack on 
              Pentagon Reservation and authority to accept monetary 
              contributions for memorial and repair of Pentagon.
Sec. 2865. Repeal of limitation on cost of renovation of Pentagon 
              Reservation.
Sec. 2866. Development of United States Army Heritage and Education 
              Center at Carlisle Barracks, Pennsylvania.
Sec. 2867. Effect of limitation on construction of roads or highways, 
              Marine Corps Base, Camp Pendleton, California.
Sec. 2868. Establishment of World War II memorial at additional 
              location on Guam.
Sec. 2869. Demonstration project for purchase of fire, security, 
              police, public works, and utility services from local 
              government agencies.
Sec. 2870. Report on future land needs of United States Military 
              Academy, New York, and adjacent community.
Sec. 2871. Naming of Patricia C. Lamar Army National Guard Readiness 
              Center, Oxford, Mississippi.
 Subtitle A--Military Construction Program and Military Family Housing 
                                Changes

     SEC. 2801. INCREASE IN THRESHOLDS FOR CERTAIN UNSPECIFIED 
                   MINOR MILITARY CONSTRUCTION PROJECTS.

       (a) Projects Requiring Advance Approval of Secretary 
     Concerned.--Subsection (b)(1) of section 2805 of title 10, 
     United States Code, is amended by striking ``$500,000'' and 
     inserting ``$750,000''.
       (b) Projects Using Amounts for Operation and Maintenance.--
     Subsection (c)(1) of that section is amended--
       (1) in subparagraph (A), by striking ``$1,000,000'' and 
     inserting ``$1,500,000''; and
       (2) in subparagraph (B), by striking ``$500,000'' and 
     inserting ``$750,000''.

     SEC. 2802. EXCLUSION OF UNFORESEEN ENVIRONMENTAL HAZARD 
                   REMEDIATION FROM LIMITATION ON AUTHORIZED COST 
                   VARIATIONS.

       Subsection (d) of section 2853 of title 10, United States 
     Code, is amended to read as follows:
       ``(d) The limitation on cost increases in subsection (a) 
     does not apply to the following:
       ``(1) The settlement of a contractor claim under a 
     contract.
       ``(2) The costs associated with the required remediation of 
     an environmental hazard in connection with a military 
     construction project or military family housing project, such 
     as asbestos removal, radon abatement, lead-based paint 
     removal or abatement, or any other legally required 
     environmental hazard remediation, if the required remediation 
     could not have reasonably been anticipated at the time the 
     project was approved originally by Congress.''.

     SEC. 2803. REPEAL OF ANNUAL REPORTING REQUIREMENT ON MILITARY 
                   CONSTRUCTION AND MILITARY FAMILY HOUSING 
                   ACTIVITIES.

       (a) Repeal.--Section 2861 of title 10, United States Code, 
     is repealed.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of subchapter III of chapter 169 of such title is 
     amended by striking the item relating to section 2861.

     SEC. 2804. FUNDS FOR HOUSING ALLOWANCES OF MEMBERS ASSIGNED 
                   TO MILITARY FAMILY HOUSING UNDER ALTERNATIVE 
                   AUTHORITY FOR ACQUISITION AND IMPROVEMENT OF 
                   MILITARY HOUSING.

       (a) In General.--Subchapter IV of chapter 169 of title 10, 
     United States Code, is amended by inserting after section 
     2883 the following new section:

     ``Sec. 2883a. Funds for housing allowances of members of the 
       armed forces assigned to certain military family housing 
       units

       ``(a) Authority to Transfer Funds to Cover Housing 
     Allowances.--During the fiscal year in which a contract is 
     awarded for the acquisition or construction of military 
     family housing units under this subchapter that are not to be 
     owned by the United States, the Secretary of Defense may 
     transfer the amount determined under subsection (b) with 
     respect to such housing from appropriations available for 
     support of military housing for the armed force concerned for 
     that fiscal year to appropriations available for pay and 
     allowances of military personnel of that same armed force for 
     that same fiscal year.
       ``(b) Amount Transferred.--The total amount authorized to 
     be transferred under subsection (a) in connection with a 
     contract under this subchapter may not exceed an amount equal 
     to any additional amounts payable during the fiscal year in 
     which the contract is awarded to members of the armed forces 
     assigned to the acquired or constructed housing units as 
     basic allowance for housing under section 403 of title 37 
     that would not otherwise have been payable to such members if 
     not for assignment to such housing units.
       ``(c) Transfers Subject to Appropriations.--The transfer of 
     funds under the authority of subsection (a) is limited to 
     such amounts as may be provided in advance in appropriations 
     Acts.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of that subchapter is amended by inserting after 
     the item relating to section 2883 the following new item:

``2883a. Funds for housing allowances of members of the armed forces 
              assigned to certain military family housing units.''.

     SEC. 2805. EXTENSION OF ALTERNATIVE AUTHORITY FOR ACQUISITION 
                   AND IMPROVEMENT OF MILITARY HOUSING.

       Section 2885 of title 10, United States Code, is amended by 
     striking ``2004'' and inserting ``2012''.

     SEC. 2806. TREATMENT OF FINANCING COSTS AS ALLOWABLE EXPENSES 
                   UNDER CONTRACTS FOR UTILITY SERVICES FROM 
                   UTILITY SYSTEMS CONVEYED UNDER PRIVATIZATION 
                   INITIATIVE.

       (a) Evaluation of Federal Acquisition Regulation.--The 
     Secretary of Defense shall conduct an evaluation of the 
     Federal Acquisition Regulation to determine whether or not it 
     is advisable to modify the Federal Acquisition Regulation to 
     provide that a contract for utility services from a utility 
     system conveyed under section 2688(a) of title 10, United 
     States Code, may include terms and conditions that recognize 
     financing costs, such as return on equity and interest on 
     debt, as an allowable expense when incurred by the conveyee 
     of the utility system to acquire, operate, renovate, replace, 
     upgrade, repair, or expand the utility system. The Secretary 
     shall complete the evaluation not later than 90 days after 
     the date of the enactment of this Act.
       (b) Submission of Recommendation to Federal Acquisition 
     Regulatory Council.--If the Secretary determines under 
     subsection (a) that it is advisable to modify the Federal 
     Acquisition Regulation to provide that a contract described 
     in such subsection may include terms and conditions described 
     in such subsection, the Secretary shall submit the results of 
     the evaluation to the Federal Acquisition Regulatory Council 
     together with a recommendation regarding the amendments to 
     the Federal Acquisition Regulation necessary to effectuate 
     the modification.
        Subtitle B--Real Property and Facilities Administration

     SEC. 2811. USE OF MILITARY INSTALLATIONS FOR CERTAIN 
                   RECREATIONAL ACTIVITIES.

       (a) Waiver Authority.--Section 2671 of title 10, United 
     States Code, is amended--
       (1) in subsection (b), by striking ``(b)'' and inserting 
     ``(e) Regulations.--'' and transferring the subsection to the 
     end of the section; and
       (2) by inserting after subsection (a) the following new 
     subsection (b):
       ``(b) Waiver Authority.--(1) The Secretary of Defense may 
     waive or otherwise modify the fish and game laws of a State 
     or Territory otherwise applicable under subsection (a)(1) to 
     hunting, fishing, or trapping at a military installation or 
     facility if the Secretary determines that the application of 
     such laws to such hunting, fishing, or trapping without 
     modification could result in undesirable consequences for 
     public health or safety at the installation or facility. The 
     authority to waive such laws includes the authority to 
     extend, but not reduce, the specified season for certain 
     hunting, fishing, or trapping. The Secretary may not waive 
     the requirements under subsection (a)(2) regarding a license 
     for such hunting, fishing, or trapping or

[[Page 25268]]

     any fee imposed by a State or Territory to obtain such a 
     license.
       ``(2) If the Secretary determines that a waiver of fish and 
     game laws of a State or Territory is appropriate under 
     paragraph (1), the Secretary shall provide written 
     notification to the appropriate State or Territory officials 
     stating the reasons for, and extent of, the waiver. The 
     notification shall be provided at least 30 days before 
     implementation of the waiver.''.
       (b) Clerical Amendments.--Such section is further amended--
       (1) in subsection (a), by inserting ``General Requirements 
     for Hunting, Fishing, and Trapping.--'' after ``(a)'';
       (2) in subsection (c), by inserting ``Violations.--'' after 
     ``(c)''; and
       (3) in subsection (d), by inserting ``Relation to Treaty 
     Rights.--'' after ``(d)''.

     SEC. 2812. AVAILABILITY OF PROCEEDS OF SALES OF DEPARTMENT OF 
                   DEFENSE PROPERTY FROM CERTAIN CLOSED MILITARY 
                   INSTALLATIONS.

       (a) Modification of Availability Percentages.--Subsection 
     (h)(2) of section 204 of the Federal Property and 
     Administrative Services Act of 1949 (40 U.S.C. 485) is 
     amended by striking subparagraphs (A) and (B) and inserting 
     the following new subparagraphs:
       ``(A) In the case of property located at a military 
     installation that is closed, such amount shall be available 
     for facility maintenance and repair or environmental 
     restoration by the military department that had jurisdiction 
     over such property before the closure of the military 
     installation.
       ``(B) In the case of property located at any other military 
     installation--
       ``(i) 50 percent of such amount shall be available for 
     facility maintenance and repair or environmental restoration 
     at the military installation where such property was located 
     before it was disposed of or transferred; and
       ``(ii) 50 percent of such amount shall be available for 
     facility maintenance and repair and for environmental 
     restoration by the military department that had jurisdiction 
     over such property before it was disposed of or 
     transferred.''.
       (b) Relation to Other Laws.--Subsection (h) of such section 
     is further amended--
       (1) in paragraph (1), by inserting ``pursuant to a base 
     closure law'' after ``realignment'' in the first sentence; 
     and
       (5) in paragraph (5), by inserting before the period at the 
     end the following: ``, and the term `base closure law' shall 
     have the meaning given that term in section 2667(h)(2) of 
     such title''.

     SEC. 2813. PILOT PROGRAM TO PROVIDE ADDITIONAL TOOLS FOR 
                   EFFICIENT OPERATION OF MILITARY INSTALLATIONS.

       (a) Initiative Authorized.--The Secretary of Defense may 
     carry out a pilot program (to be known as the ``Pilot 
     Efficient Facilities Initiative'') for purposes of 
     determining the potential for increasing the efficiency and 
     effectiveness of the operation of military installations.
       (b) Designation of Participating Military Installations.--
     (1) The Secretary of Defense may designate up to two military 
     installations of each military department for participation 
     in the Initiative.
       (2) Before designating a military installation under 
     paragraph (1), the Secretary shall consult with employees at 
     the installation and communities in the vicinity of the 
     installation regarding the Initiative.
       (3) The Secretary shall transmit to Congress written 
     notification of the designation of a military installation to 
     participate in the Initiative not later than 30 days before 
     taking any action to carry out the Initiative at the 
     installation. The notification shall include a description of 
     the steps taken by the Secretary to comply with paragraph 
     (2).
       (c) Management Plan.--(1) As part of the notification 
     required under subsection (b), the Secretary of Defense shall 
     submit a management plan for the Initiative at the military 
     installation designated in the notification.
       (2) The management plan for a designated military 
     installation shall include a description of--
       (A) each proposed lease of real or personal property 
     located at the military installation;
       (B) each proposed disposal of real or personal property 
     located at the installation;
       (C) each proposed leaseback of real or personal property 
     leased or disposed of at the installation;
       (D) each proposed conversion of services at the 
     installation from Federal Government performance to non-
     Federal Government performance, including performance by 
     contract with a State or local government or private entity 
     or performance as consideration for the lease or disposal of 
     property at the installation; and
       (E) each other action proposed to be taken to improve 
     mission effectiveness and reduce the cost of providing 
     quality installation support at the installation.
       (3) With respect to each proposed action described under 
     paragraph (2), the management plan shall include--
       (A) an estimate of the savings expected to be achieved as a 
     result of the action;
       (B) each regulation not required by statute that is 
     proposed to be waived to implement the action; and
       (C) each statute or regulation required by statute that is 
     proposed to be waived to implement the action, including--
       (i) an explanation of the reasons for the proposed waiver; 
     and
       (ii) a description of the action to be taken to protect the 
     public interests served by the statute or regulation, as the 
     case may be, in the event of the waiver.
       (4) The management plan shall include measurable criteria 
     for the evaluation of the effects of the actions taken 
     pursuant to the Initiative at the designated military 
     installation.
       (d) Waiver of Statutory Requirements.--The Secretary of 
     Defense may waive any statute, or regulation required by 
     statute, for purposes of carrying out the Initiative only if 
     specific authority for the waiver of such statute or 
     regulation is provided in a law that is enacted after the 
     date of the enactment of this Act.
       (e) Installation Efficiency Initiative Fund.--(1) There is 
     established on the books of the Treasury a fund to be known 
     as the ``Installation Efficiency Initiative Fund''.
       (2) There shall be deposited in the Fund all cash rents, 
     payments, reimbursements, proceeds, and other amounts from 
     leases, sales, or other conveyances or transfers, joint 
     activities, and other actions taken under the Initiative.
       (3) To the extent provided in advance in authorization Acts 
     and appropriations Acts, amounts in the Fund shall be 
     available to the Secretary of Defense for purposes of 
     managing capital assets and providing support services at 
     military installations participating in the Initiative. 
     Amounts in the Fund may be used for such purposes in addition 
     to, or in combination with, other amounts authorized to 
     appropriated for such purposes. Amounts in the Fund shall be 
     available for such purposes for five years.
       (4) Subject to applicable financial management regulations, 
     the Secretary shall structure the Fund, and provide 
     administrative policies and procedures, in order provide 
     proper control of deposits in and disbursements from the 
     Fund.
       (f) Report.--Not later than December 31, 2004, the 
     Secretary of Defense shall submit to Congress a report on the 
     Initiative. The report shall contain a description of the 
     actions taken under the Initiative and include such other 
     information, including recommendations, as the Secretary 
     considers appropriate regarding the Initiative.
       (g) Definitions.--In this section:
       (1) The term ``Initiative'' means the Pilot Efficient 
     Facilities Initiative.
       (2) The term ``Fund'' means the Installation Efficiency 
     Initiative Fund.
       (3) The term ``military installation'' has the meaning 
     given such term in section 2687(e) of title 10, United States 
     Code.
       (h) Termination.--The authority of the Secretary of Defense 
     to carry out the Initiative shall terminate December 31, 
     2005.

     SEC. 2814. DEMONSTRATION PROGRAM ON REDUCTION IN LONG-TERM 
                   FACILITY MAINTENANCE COSTS.

       (a) Authority To Carry Out Program.--The Secretary of the 
     Army may conduct a demonstration program to assess the 
     feasibility and desirability of including facility 
     maintenance requirements in construction contracts for 
     military construction projects for the purpose of determining 
     whether such requirements facilitate reductions in the long-
     term facility maintenance costs of the military departments.
       (b) Contracts.--Not more than three contracts entered into 
     in any year may contain requirements referred to in 
     subsection (a) for the purpose of the demonstration program. 
     The demonstration program may only cover contracts entered 
     into on or after the date of the enactment of this Act.
       (c) Effective Period of Requirements.--The effective period 
     of a requirement referred to in subsection (a) that is 
     included in a contract for the purpose of the demonstration 
     program may not exceed five years.
       (d) Reporting Requirements.--Not later than January 31, 
     2005, the Secretary of the Army shall submit to Congress a 
     report on the demonstration program, including the following:
       (1) A description of all contracts that contain 
     requirements referred to in subsection (a) for the purpose of 
     the demonstration program.
       (2) An evaluation of the demonstration program and a 
     description of the experience of the Secretary with respect 
     to such contracts.
       (3) Any recommendations, including recommendations for the 
     termination, continuation, or expansion of the demonstration 
     program, that the Secretary considers appropriate.
       (e) Expiration.--The authority under subsection (a) to 
     include requirements referred to in that subsection in 
     contracts under the demonstration program shall expire on 
     September 30, 2006.
       (f) Funding.--Amounts authorized to be appropriated for the 
     Army for a fiscal year for military construction shall be 
     available for the demonstration program under this section in 
     such fiscal year.

     SEC. 2815. BASE EFFICIENCY PROJECT AT BROOKS AIR FORCE BASE, 
                   TEXAS.

       (a) Administration of Project.--Section 136(m)(9) of the 
     Military Construction Appropriations Act, 2001 (division A of 
     Public Law 106-246; 114 Stat. 524), is amended by striking 
     ``, who shall be a civilian official of the Department 
     appointed by the President with the advice and consent of the 
     Senate''.
       (b) Indemnification of Transferees.--Not later than March 
     1, 2002, the Secretary of Defense shall submit to Congress a 
     report evaluating the base efficiency project conducted under 
     section 136 of the Military Construction Appropriations Act, 
     2001 (division A of Public Law 106-246; 114 Stat. 520). The 
     evaluation shall address whether the disposal of real 
     property under subsection (e) or other provisions of that 
     section requires any additional authority for the Secretary 
     beyond the authority provided under existing law to hold 
     harmless, defend, and indemnify the recipients of the 
     property against

[[Page 25269]]

     claims arising out of Department of Defense activities on the 
     property before disposal. If the Secretary determines that 
     inclusion of such an indemnity provision would facilitate 
     activities under the base efficiency project, the Secretary 
     shall include a recommendation in the report regarding the 
     nature and extent of the indemnification to be provided.
Subtitle C--Implementation of Prior Base Closure and Realignment Rounds

     SEC. 2821. LEASE BACK OF BASE CLOSURE PROPERTY.

       (a) 1988 Law.--Section 204(b)(4) of the Defense 
     Authorization Amendments and Base Closure and Realignment Act 
     (Public Law 100-526; 10 U.S.C. 2687 note) is amended--
       (1) by redesignating subparagraphs (E), (F), (G), (H), and 
     (I) as subparagraphs (F), (G), (H), (I), and (J), 
     respectively; and
       (2) by inserting after subparagraph (D) the following new 
     subparagraph (E):
       ``(E)(i) The Secretary may transfer real property at an 
     installation approved for closure or realignment under this 
     title (including property at an installation approved for 
     realignment which will be retained by the Department of 
     Defense or another Federal agency after realignment) to the 
     redevelopment authority for the installation if the 
     redevelopment authority agrees to lease, directly upon 
     transfer, one or more portions of the property transferred 
     under this subparagraph to the Secretary or to the head of 
     another department or agency of the Federal Government. 
     Subparagraph (B) shall apply to a transfer under this 
     subparagraph.
       ``(ii) A lease under clause (i) shall be for a term of not 
     to exceed 50 years, but may provide for options for renewal 
     or extension of the term by the department or agency 
     concerned.
       ``(iii) A lease under clause (i) may not require rental 
     payments by the United States.
       ``(iv) A lease under clause (i) shall include a provision 
     specifying that if the department or agency concerned ceases 
     requiring the use of the leased property before the 
     expiration of the term of the lease, the remainder of the 
     lease term may be satisfied by the same or another department 
     or agency of the Federal Government using the property for a 
     use similar to the use under the lease. Exercise of the 
     authority provided by this clause shall be made in 
     consultation with the redevelopment authority concerned.
       ``(v) Notwithstanding clause (iii), if a lease under clause 
     (i) involves a substantial portion of the installation, the 
     department or agency concerned may obtain facility services 
     for the leased property and common area maintenance from the 
     redevelopment authority or the redevelopment authority's 
     assignee as a provision of the lease. The facility services 
     and common area maintenance shall be provided at a rate no 
     higher than the rate charged to non-Federal tenants of the 
     transferred property. Facility services and common area 
     maintenance covered by the lease shall not include--
       ``(I) municipal services that a State or local government 
     is required by law to provide to all landowners in its 
     jurisdiction without direct charge; or
       ``(II) firefighting or security-guard functions.''.
       (b) 1990 Law.--Section 2905(b)(4)(E) of the Defense Base 
     Closure and Realignment Act of 1990 (part A of title XXIX of 
     Public Law 101-510; 10 U.S.C. 2687 note) is amended by adding 
     at the end the following new clause:
       ``(v) Notwithstanding clause (iii), if a lease under clause 
     (i) involves a substantial portion of the installation, the 
     department or agency concerned may obtain facility services 
     for the leased property and common area maintenance from the 
     redevelopment authority or the redevelopment authority's 
     assignee as a provision of the lease. The facility services 
     and common area maintenance shall be provided at a rate no 
     higher than the rate charged to non-Federal tenants of the 
     transferred property. Facility services and common area 
     maintenance covered by the lease shall not include--
       ``(I) municipal services that a State or local government 
     is required by law to provide to all landowners in its 
     jurisdiction without direct charge; or
       ``(II) firefighting or security-guard functions.''.
                      Subtitle D--Land Conveyances

                        PART I--ARMY CONVEYANCES

     SEC. 2831. LAND CONVEYANCE, WHITTIER-ANCHORAGE PIPELINE TANK 
                   FARM, ANCHORAGE, ALASKA.

       (a) Conveyance Authorized.--The Secretary of the Army may 
     convey to the Port of Anchorage, an entity of the 
     Municipality of Anchorage, Alaska (in this section referred 
     to as the ``Port''), all right, title, and interest of the 
     United States in and to two adjoining parcels of real 
     property, including any improvements thereon, consisting of 
     approximately 48 acres in Anchorage, Alaska, which are known 
     as of the Whittier-Anchorage Pipeline Tank Farm, for the 
     purpose of permitting the Port to use the parcels for 
     economic development.
       (b) Consideration.--As consideration for the conveyance 
     under subsection (a), the Port shall pay to the United States 
     an amount, in cash or in-kind, equal to not less than the 
     fair market value of the conveyed property, as determined by 
     the Secretary. The Secretary may authorize the Port to carry 
     out, as in-kind consideration, environmental remediation 
     activities for the property to be conveyed.
       (c) Time for Conveyance.--The Secretary may delay the 
     conveyance under subsection (a) until such time as the Army 
     studies relating to the Alaska deployment of the Interim 
     Brigade Combat Team in Alaska are completed.
       (d) Description of Property.--The exact acreage and legal 
     description of the real property to be conveyed under 
     subsection (a) shall be determined by a survey satisfactory 
     to the Secretary. The cost of the survey shall be borne by 
     the Port.
       (e) Additional Terms and Conditions.--The Secretary may 
     require such additional terms and conditions in connection 
     with the conveyance under subsection (a) as the Secretary 
     considers appropriate to protect the interests of the United 
     States.

     SEC. 2832. LEASE AUTHORITY, FORT DERUSSY, HAWAII.

       (a) Lease Authorized.--Notwithstanding section 809 of the 
     Military Construction Authorization Act, 1968 (Public Law 90-
     110; 81 Stat. 309), and section 2814(b) of the Military 
     Construction Authorization Act, 1989 (Public Law 100-456; 102 
     Stat. 2117), the Secretary of the Army may enter into a lease 
     with the City and County of Honolulu, Hawaii, for the purpose 
     of making available to the City and County a parcel of real 
     property at Fort DeRussy, Hawaii, for the construction and 
     operation of a parking facility. The size and location of the 
     parcel shall be determined by the Secretary.
       (b) Terms and Conditions.--The lease under subsection (a) 
     may be for such term of years, require such consideration, 
     and contain such other terms and conditions as the Secretary 
     considers appropriate to protect the interests of the United 
     States.
       (c) Relationship to Other Lease Authority.--Section 2667 of 
     title 10, United States Code, shall not apply to the lease 
     under subsection (a).
       (d) Disposition of Money Rentals.--All money rentals 
     received pursuant to the lease under subsection (a) shall 
     be--
       (1) retained by the Secretary;
       (2) credited to an appropriation account that supports the 
     operation and maintenance of Fort DeRussy; and
       (3) available for such purpose until expended.

     SEC. 2833. MODIFICATION OF LAND EXCHANGE, ROCK ISLAND 
                   ARSENAL, ILLINOIS.

       (a) Additional Conveyance Authorized.--Subsection (a) of 
     section 2832 of the Military Construction Authorization Act 
     for Fiscal Year 2000 (division B of Public Law 106-65; 113 
     Stat. 857) is amended--
       (1) by inserting ``(1)'' after ``Conveyance Authorized.--
     ''; and
       (2) by adding at the end the following new paragraph:
       ``(2) The Secretary may convey to the City all right, 
     title, and interest of the United States in and to an 
     additional parcel of real property, including improvements 
     thereon, at the Rock Island Arsenal consisting of 
     approximately .513 acres.''.
       (b) Consideration.--Subsection (b) of such section is 
     amended--
       (1) by inserting ``(1)'' after ``Consideration.--'';
       (2) by striking ``subsection (a)'' both places it appears 
     and inserting ``subsection (a)(1)''; and
       (3) by adding at the end the following new paragraph:
       ``(2) As consideration for the conveyance under subsection 
     (a)(2), the City shall convey to the Secretary all right, 
     title, and interest of the City in and to a parcel of real 
     property consisting of approximately .063 acres and construct 
     on the parcel, at the City's expense, a new access ramp to 
     the Rock Island Arsenal.''.

     SEC. 2834. LAND CONVEYANCE, FORT DES MOINES, IOWA.

       (a) Conveyance Authorized.--The Secretary of the Army may 
     convey, without consideration, to Fort Des Moines Memorial 
     Park, Inc., a nonprofit organization (in this section 
     referred to as the ``Memorial Park''), all right, title, and 
     interest of the United States in and to a parcel of real 
     property, including improvements thereon, consisting of 
     approximately 4.6 acres located at Fort Des Moines United 
     States Army Reserve Center, Des Moines, Iowa, for the purpose 
     of the establishment of the Fort Des Moines Memorial Park and 
     Education Center.
       (b) Condition of Conveyance.--The conveyance under 
     subsection (a) shall be subject to the condition that the 
     Memorial Park use the property for museum and park purposes.
       (c) Reversion.--If the Secretary determines at any time 
     that the real property conveyed under subsection (a) is not 
     being used for museum and park purposes, all right, title, 
     and interest in and to the real property, including any 
     improvements thereon, shall revert to the United States, and 
     the United States shall have the right of immediate entry 
     thereon.
       (d) Reimbursement for Costs of Conveyance.--(1) The 
     Memorial Park shall reimburse the Secretary for the excess 
     costs incurred by the Secretary for any environmental 
     assessment, study, or analysis, or for any other excess costs 
     incurred by the Secretary, in connection with the conveyance 
     authorized by this section, if the excess costs were incurred 
     as a result of a request by the Memorial Park. In this 
     paragraph, the term ``excess costs'' means costs in excess of 
     those costs considered reasonable and necessary by the 
     Secretary to comply with existing law to make the conveyance 
     authorized by subsection (a).
       (2) Section 2695(c) of title 10 United States Code, shall 
     apply to any amount received under this subsection.
       (e) Description of Property.--The exact acreage and legal 
     description of the real property to be conveyed under 
     subsection (a) shall be determined by a survey satisfactory 
     to the Secretary. The cost of the survey shall be borne by 
     the Memorial Park.

[[Page 25270]]

       (f) Additional Terms and Conditions.--The Secretary may 
     require such additional terms and conditions in connection 
     with the conveyance under subsection (a) as the Secretary 
     considers appropriate to protect the interests of the United 
     States.

     SEC. 2835. MODIFICATION OF LAND CONVEYANCES, FORT DIX, NEW 
                   JERSEY.

       Section 2835(c) of the Military Construction Authorization 
     Act for Fiscal Year 1998 (division B of Public Law 105-85; 
     111 Stat. 2004) is amended by adding at the end the following 
     new paragraph:
       ``(3) Notwithstanding paragraph (1) or (2), the Borough and 
     Board may exchange between each other, without the consent of 
     the Secretary, all or any portion of the property conveyed 
     under subsection (a) so long as the property continues to be 
     used by the grantees for economic development or educational 
     purposes.''.

     SEC. 2836. LAND CONVEYANCE, ENGINEER PROVING GROUND, FORT 
                   BELVOIR, VIRGINIA.

       (a) Conveyance Authorized.--The Secretary of the Army may 
     convey to the Commonwealth of Virginia (in this section 
     referred to as the ``Commonwealth'') all right, title, and 
     interest of United States in and to two parcels of real 
     property, including any improvements thereon, located at the 
     Engineer Proving Ground, Fort Belvoir, Virginia, as follows:
       (1) The parcel, consisting of approximately 170 acres, that 
     is to be used for construction of a portion of the Fairfax 
     County Parkway.
       (2) The parcel, consisting of approximately 11.45 acres, 
     that is subject to an easement previously granted to the 
     Commonwealth as Army easement DACA 31-3-96-440 for the 
     construction of a portion of Interstate Highway 95.
       (b) Consideration.--As consideration for the conveyance 
     under subsection (a), the Commonwealth shall--
       (1) design and construct, at its expense and for public 
     benefit, the portion of the Fairfax County Parkway through 
     the Engineer Proving Ground;
       (2) provide a conceptual design for eventual incorporation 
     and construction by others of access into the Engineer 
     Proving Ground at the Rolling Road Interchange from Fairfax 
     County Parkway as specified in Virginia Department of 
     Transportation Project #R000-029-249, C514;
       (3) provide such easements or rights of way for utilities 
     under or across the Fairfax County Parkway as the Secretary 
     considers appropriate for the optimum development of the 
     Engineer Proving Ground; and
       (4) pay the United States an amount, jointly determined by 
     the Secretary and the Commonwealth, appropriate to cover the 
     costs of constructing a replacement building for building 
     5089 located on the Engineer Proving Ground.
       (c) Responsibility for Environmental Cleanup.--The 
     Secretary shall retain liability under the Comprehensive 
     Environmental Response, Compensation, and Liability Act of 
     1980 (42 U.S.C. 9601 et seq.), and any other applicable 
     environmental statute or regulation, for any environmental 
     hazard on the property conveyed under subsection (a) as of 
     the date of the conveyance under that subsection.
       (d) Acceptance and Disposition of Funds.--(1) The Secretary 
     of the Army may accept the funds paid by the Commonwealth as 
     consideration under subsection (b)(4) and shall credit the 
     accepted funds to the appropriation or appropriations that 
     are appropriate for paying the costs of the replacement of 
     Building 5089, located on the Engineer Proving Ground, Fort 
     Belvoir, Virginia, consistent with paragraphs (2) and (3) of 
     this subsection.
       (2) Funds accepted under paragraph (1) shall be available, 
     until expended, for the replacement of Building 5089.
       (3) Funds appropriated pursuant to the authorization of 
     appropriations in section 301(a)(1), and funds appropriated 
     pursuant to the authorization of appropriations in section 
     2104(a)(4), shall be available in accordance with section 
     2805 of title 10, United States Code, for the excess, if any, 
     of the cost of the replacement of Building 5089 over the 
     amount available for such project under paragraph (2).
       (e) Description of Property.--(1) The exact acreage and 
     legal description of the real property to be conveyed under 
     subsection (a)(1) shall be determined by a survey 
     satisfactory to the Secretary. The cost of the survey shall 
     be borne by the Commonwealth.
       (2) The exact acreage and legal description of the real 
     property to be conveyed under subsection (a)(2) are as set 
     forth in Army easement DACA 31-3-96-440.
       (f) Additional Terms and Conditions.--The Secretary may 
     require such additional terms and conditions in connection 
     with the conveyance under subsection (a) as the Secretary 
     considers appropriate to protect the interests of the United 
     States.

     SEC. 2837. LAND EXCHANGE AND CONSOLIDATION, FORT LEWIS, 
                   WASHINGTON.

       (a) Exchange Authorized.--(1) The Secretary of the Army may 
     convey to the Nisqually Tribe, a federally recognized Indian 
     tribe whose tribal lands are located within the State of 
     Washington, all right, title, and interest of the United 
     States in and to two parcels of real property, including any 
     improvements thereon, consisting of approximately 138 acres 
     at Fort Lewis, Washington, in exchange for the real property 
     described in subsection (b).
       (2) The property authorized for conveyance under paragraph 
     (1) does not include Bonneville Power Administration 
     transmission facilities or the right of way described in 
     subsection (c).
       (b) Consideration.--As consideration for the conveyance 
     under subsection (a), the Nisqually Tribe shall--
       (1) acquire from Thurston County, Washington, several 
     parcels of real property consisting of approximately 416 
     acres that are owned by the county, are located within the 
     boundaries of Fort Lewis, and are currently leased by the 
     Army; and
       (2) convey fee title over the acquired property to the 
     Secretary.
       (c) Right-of-Way for Bonneville Power Administration.--The 
     Secretary may use the authority provided in section 2668 of 
     title 10, United States Code, to convey to the Bonneville 
     Power Administration a right-of-way that authorizes the 
     Bonneville Power Administration to use real property at Fort 
     Lewis as a route for the Grand Coulee-Olympia and Olympia-
     White River electric transmission lines and appurtenances for 
     the purpose of facilitating the removal of such transmission 
     lines from tribal lands of the Nisqually Tribe.
       (d) Description of Property.--The exact acreage and legal 
     description of the real property to be conveyed under 
     subsection (a) and acquired under subsection (b) shall be 
     determined by surveys satisfactory to the Secretary and the 
     Nisqually Tribe. The cost of a survey shall be borne by the 
     recipient of the property being surveyed.
       (e) Additional Terms and Conditions.--The Secretary may 
     require such additional terms and conditions in connection 
     with the conveyances under this section as the Secretary 
     considers appropriate to protect the interests of the United 
     States.

     SEC. 2838. LAND CONVEYANCE, ARMY RESERVE CENTER, KEWAUNEE, 
                   WISCONSIN.

       (a) Conveyance Authorized.--The Administrator of General 
     Services may convey, without consideration, to the City of 
     Kewaunee, Wisconsin (in this section referred to as the 
     ``City''), all right, title, and interest of the United 
     States in and to a parcel of Federal real property, including 
     improvements thereon, that is located at 401 5th Street in 
     Kewaunee, Wisconsin, and contains a surplus Army Reserve 
     Center. After such conveyance, the property may be used and 
     occupied only by the City or by another local or State 
     government entity approved by the City.
       (b) Reversionary Interest.--(1) During the 20-year period 
     beginning on the date the Administrator makes the conveyance 
     under subsection (a), if the Administrator determines that 
     the conveyed property is not being used and occupied in 
     accordance with such subsection, all right, title, and 
     interest in and to the property, including any improvements 
     thereon, shall revert to the United States.
       (2) Upon reversion, the Administrator shall immediately 
     proceed to a public sale of the property. The Administrator 
     shall deposit the net proceeds from the public sale in the 
     land and water conservation fund established under section 2 
     of the Land and Water Conservation Fund Act of 1965 (16 U.S.C 
     460l-5).
       (c) Additional Limitation on Use.--The property conveyed 
     under subsection (a) shall not be used for commercial 
     purposes.
       (d) Description of Property.--The exact acreage and legal 
     description of the real property to be conveyed under 
     subsection (a) shall be determined by a survey satisfactory 
     to the Administrator. The cost of the survey shall be borne 
     by the City.
       (e) Additional Terms and Conditions.--The Administrator may 
     require such additional terms and conditions in connection 
     with the conveyance under subsection (a) as the Administrator 
     considers appropriate to protect the interests of the United 
     States.

     PART II--NAVY CONVEYANCES

     SEC. 2841. TRANSFER OF JURISDICTION, CENTERVILLE BEACH NAVAL 
                   STATION, HUMBOLDT COUNTY, CALIFORNIA.

       (a) Transfer Authorized.--The Secretary of the Navy may 
     transfer, without reimbursement, to the administrative 
     jurisdiction of the Secretary of the Interior the real 
     property, including any improvements thereon, consisting of 
     the closed Centerville Beach Naval Station in Humboldt 
     County, California, for the purpose of permitting the 
     Secretary of the Interior to manage the real property as open 
     space or for other public purposes.
       (b) Legal Description.--The exact acreage and legal 
     description of the real property to be transferred under this 
     section shall be determined by a survey satisfactory to the 
     Secretary of the Navy. The cost of the survey shall be borne 
     by the Secretary of the Interior.
       (c) Additional Terms and Conditions.--The Secretary of the 
     Navy may require such additional terms and conditions in 
     connection with the transfer under subsection (a) as the 
     Secretary of the Navy considers appropriate to protect the 
     interests of the United States.

     SEC. 2842. LAND CONVEYANCE, PORT OF LONG BEACH, CALIFORNIA.

       (a) Conveyance Authorized.--The Secretary of the Navy may 
     convey to the City of Long Beach, California, acting by and 
     through its Board of Harbor Commissioners (in this section 
     referred to as the ``City''), all right, title, and interest 
     of the United States in and to up to 11.08 acres of real 
     property, including any improvements thereon, comprising a 
     portion of the Navy Mole at the former Long Beach Naval 
     Complex, Long Beach, California, for the purpose of 
     permitting the City to use the property to support the reuse 
     of other former Navy property conveyed to the City.
       (b) Consideration.--(1) Subject to paragraph (2), as 
     consideration for the conveyance under subsection (a), the 
     City shall--

[[Page 25271]]

       (A) convey to the Secretary all right, title, and interest 
     of the City in and to a parcel of real property of equal size 
     on the Mole that is acceptable to the Secretary; and
       (B) construct on the property conveyed under subparagraph 
     (A) suitable replacement fuel transfer and storage facilities 
     for the Navy, similar or equivalent to the facilities on the 
     property to be conveyed under subsection (a), as determined 
     necessary by the Secretary.
       (2) If the Secretary determines that replacement fuel 
     transfer and storage facilities are not required by the Navy, 
     the Secretary may make the conveyance under subsection (a) at 
     no cost to the City.
       (c) Time for Conveyance.--Unless the Secretary makes the 
     determination referred to in subsection (b)(2), the 
     conveyance to the City authorized by subsection (a) shall be 
     made only after the Secretary determines that the replacement 
     fuel transfer and storage facilities have been constructed 
     and are ready for use.
       (d) Construction Schedule.--The City shall construct the 
     replacement fuel transfer and storage facilities pursuant to 
     such schedule and in such a manner so as to not interrupt or 
     otherwise adversely affect the capability of the Navy to 
     accomplish its mission.
       (e) Description of Property.--The exact acreage and legal 
     description of the real property to be conveyed under 
     subsections (a) and (b) shall be determined by surveys 
     satisfactory to the Secretary. The City shall be responsible 
     for conducting the surveys.
       (f) Additional Terms and Conditions.--The Secretary may 
     require such additional terms and conditions in connection 
     with the conveyances under this section as the Secretary 
     considers appropriate to protect the interests of the United 
     States.

     SEC. 2843. CONVEYANCE OF PIER, NAVAL BASE, SAN DIEGO, 
                   CALIFORNIA.

       (a) Conveyance Authorized.--(1) The Secretary of the Navy 
     may convey, without consideration, to the San Diego Aircraft 
     Carrier Museum or its designee (in this section referred to 
     as the ``Museum'') all right, title, and interest of the 
     United States in and to the property known as Pier 11A at 
     Naval Base, San Diego, California, together with associated 
     structures and interests in the land underlying the pier, if 
     any, for the purpose of permitting the Museum to use the 
     property to berth a vessel and operate a museum for the 
     general public.
       (2) The Secretary may not make the conveyance until such 
     time as the Museum certifies that the Museum has acquired an 
     interest in property from the State of California or a 
     political subdivision of the State to facilitate the use of 
     the conveyed pier to berth a vessel and operate a museum for 
     the general public.
       (b) Assumption of Liability.--The Museum shall expressly 
     accept any and all liability pertaining to the physical 
     condition of the property conveyed under subsection (a) and 
     shall hold the United States harmless from any and all 
     liability arising from the property's physical condition.
       (c) Reimbursement for Costs of Conveyance.--(1) The Museum 
     shall reimburse the Secretary for the excess costs incurred 
     by the Secretary for any environmental assessment, study, or 
     analysis, or for any other excess costs incurred by the 
     Secretary, in connection with the conveyance authorized by 
     this section, if the excess costs were incurred as a result 
     of a request by the Museum. In this paragraph, the term 
     ``excess costs'' means costs in excess of those costs 
     considered reasonable and necessary by the Secretary to 
     comply with existing law to make the conveyance authorized by 
     subsection (a).
       (2) Section 2695(c) of title 10, United States Code, shall 
     apply to any amount received by the Secretary under this 
     subsection.
       (d) Description of Property.--The exact acreage and legal 
     description of the property to be conveyed under subsection 
     (a) shall be determined by a survey satisfactory to the 
     Secretary. The cost of the survey shall be borne by the 
     Museum.
       (e) Additional Terms and Conditions.--The Secretary may 
     require such additional terms and conditions in connection 
     with the conveyance under subsection (a) as the Secretary 
     considers appropriate to protect the interests of the United 
     States.

     SEC. 2844. MODIFICATION OF AUTHORITY FOR CONVEYANCE OF NAVAL 
                   COMPUTER AND TELECOMMUNICATIONS STATION, 
                   CUTLER, MAINE.

       Section 2853(a) of the Military Construction Authorization 
     Act for Fiscal Year 2001 (division B of the Spence Act; 114 
     Stat. 1654A-430) is amended by inserting ``any or'' before 
     ``all right''.

     SEC. 2845. LAND TRANSFER AND CONVEYANCE, NAVAL SECURITY GROUP 
                   ACTIVITY, WINTER HARBOR, MAINE.

       (a) Transfer of Jurisdiction of Schoodic Point Property 
     Authorized.--(1) The Secretary of the Navy may transfer to 
     the Secretary of the Interior administrative jurisdiction of 
     a parcel of real property, including any improvements thereon 
     and appurtenances thereto, consisting of approximately 26 
     acres as generally depicted as Tract 15-116 on the map 
     entitled ``Acadia National Park Schoodic Point Area'', 
     numbered 123/80,418 and dated May 2001. The map shall be on 
     file and available for inspection in the appropriate offices 
     of the National Park Service.
       (2) The transfer authorized by this subsection shall occur, 
     if at all, concurrently with the reversion of administrative 
     jurisdiction of a parcel of real property consisting of 
     approximately 71 acres, as depicted as Tract 15-115 on the 
     map referred to in paragraph (1), from the Secretary of the 
     Navy to the Secretary of the Interior as authorized by Public 
     Law 80-260 (61 Stat. 519) and to be executed on or about June 
     30, 2002.
       (b) Conveyance of Corea and Winter Harbor Properties 
     Authorized.--The Secretary of the Navy may convey, without 
     consideration, to the State of Maine, any political 
     subdivision of the State of Maine, or any tax-supported 
     agency in the State of Maine, all right, title, and interest 
     of the United States in and to any of the parcels of real 
     property, including any improvements thereon and 
     appurtenances thereto, consisting of approximately 485 acres 
     and comprising the former facilities of the Naval Security 
     Group Activity, Winter Harbor, Maine, located in Hancock 
     County, Maine, less the real property described in subsection 
     (a)(1), for the purpose of economic redevelopment.
       (c) Transfer of Personal Property.--The Secretary of the 
     Navy may transfer, without consideration, to the Secretary of 
     the Interior in the case of the real property transferred 
     under subsection (a), or to any recipient of such real 
     property in the case of real property conveyed under 
     subsection (b), any or all personal property associated with 
     the real property so transferred or conveyed, including any 
     personal property required to continue the maintenance of the 
     infrastructure of such real property (including the 
     generators for an uninterrupted power supply in building 154 
     at the Corea site).
       (d) Maintenance of Property Pending Conveyance.--(1) The 
     Secretary of the Navy shall maintain any real property, 
     including any improvements thereon, appurtenances thereto, 
     and supporting infrastructure, to be conveyed under 
     subsection (b) in accordance with the protection and 
     maintenance standards specified in section 101-47.4913 of 
     title 41, Code of Federal Regulations, until the earlier of--
       (A) the date of the conveyance of such real property under 
     subsection (b); or
       (B) September 30, 2003.
       (2) The requirement in paragraph (1) shall not be construed 
     as authority to improve the real property, improvements, and 
     infrastructure referred to in that paragraph so as to bring 
     such real property, improvements, or infrastructure into 
     compliance with any zoning or property maintenance codes or 
     to repair any damage to such improvements and infrastructure 
     caused by natural accident or disaster.
       (e) Interim Lease.--(1) Until such time as any parcel of 
     real property to be conveyed under subsection (b) is conveyed 
     by deed under that subsection, the Secretary of the Navy may 
     lease such parcel to any person or entity determined by the 
     Secretary to be an appropriate lessee of such parcel.
       (2) The amount of rent for a lease under paragraph (1) 
     shall be the amount determined by the Secretary to be 
     appropriate, and may be an amount less than the fair market 
     value of the lease.
       (f) Reimbursement for Environmental and Other 
     Assessments.--(1) The Secretary of the Navy may require each 
     recipient of real property conveyed under subsection (b) to 
     reimburse the Secretary for the excess costs incurred by the 
     Secretary for any environmental assessment, study, or 
     analysis carried out by the Secretary in connection with the 
     conveyance of such property, if the excess costs were 
     incurred as a result of a request by the recipient. In this 
     paragraph, the term ``excess costs'' means costs in excess of 
     those costs considered reasonable and necessary by the 
     Secretary to comply with existing law to make the conveyance 
     to the recipient.
       (2) Section 2695(c) of title 10, United States Code, shall 
     apply to any amount received by the Secretary under this 
     subsection.
       (g) Description of Property.--The exact acreage and legal 
     description of the real property transferred under subsection 
     (a), and each parcel of real property conveyed under 
     subsection (b), shall be determined by a survey satisfactory 
     to the Secretary of the Navy. The cost of any survey for real 
     property conveyed under subsection (b) shall be borne by the 
     recipient of the real property.
       (h) Additional Terms and Conditions.--The Secretary of the 
     Navy may require such additional terms and conditions in 
     connection with any conveyance under subsection (b), and any 
     lease under subsection (e), as the Secretary considers 
     appropriate to protect the interests of the United States.

     SEC. 2846. LAND ACQUISITION, PERQUIMANS COUNTY, NORTH 
                   CAROLINA.

       The Secretary of the Navy may, using funds previously 
     appropriated for such purpose, acquire any and all right, 
     title, and interest in and to a parcel of real property, 
     including improvements thereon, consisting of approximately 
     240 acres, or any portion thereof, in Perquimans County, 
     North Carolina, for purposes of including such parcel in the 
     Harvey Point Defense Testing Activity, Hertford, North 
     Carolina.

     SEC. 2847. LAND CONVEYANCE, NAVAL WEAPONS INDUSTRIAL RESERVE 
                   PLANT, TOLEDO, OHIO.

       (a) Conveyance Authorized.--(1) The Secretary of the Navy 
     may convey, without consideration, to the Toledo-Lucas County 
     Port Authority, Ohio (in this section referred to as the 
     ``Port Authority''), any or all right, title, and interest of 
     the United States in and to a parcel of real property, 
     including any improvements thereon, consisting of 
     approximately 29 acres and comprising the Naval Weapons 
     Industrial Reserve Plant, Toledo, Ohio.
       (2) The Secretary may include in the conveyance under 
     paragraph (1) such facilities, equipment, fixtures, and other 
     personal property located or based on the parcel conveyed 
     under that paragraph, or used in connection with the

[[Page 25272]]

     parcel, as the Secretary determines to be excess to the Navy.
       (b) Lease Authority.--Until such time as the real property 
     described in subsection (a)(1) is conveyed by deed, the 
     Secretary may lease such real property, and any personal 
     property described in subsection (a)(2), to the Port 
     Authority in exchange for such security, fire protection, and 
     maintenance services as the Secretary considers appropriate.
       (c) Conditions of Conveyance.--The conveyance under 
     subsection (a), and any lease under subsection (b), shall be 
     subject to the conditions that the Port Authority--
       (1) accept the real and personal property concerned in 
     their condition at the time of the conveyance or lease, as 
     the case may be; and
       (2) except as provided in subsection (d), use the real and 
     personal property concerned, whether directly or through an 
     agreement with a public or private entity, for economic 
     development or such other public purposes as the Port 
     Authority considers appropriate.
       (d) Subsequent Use.--(1) Subject to the approval of the 
     Secretary, the Port Authority may sublease real property or 
     personal property covered by a lease under subsection (b) to 
     another person for economic development or such other public 
     purposes as the Port Authority considers appropriate.
       (2) Following the conveyance of real property under 
     subsection (a), the Port Authority may lease or reconvey the 
     real property, and any personal property conveyed with such 
     real property under that subsection, for economic development 
     or such other public purposes as the Port Authority considers 
     appropriate.
       (e) Reimbursement for Costs of Conveyance and Lease.--(1) 
     The Port Authority shall reimburse the Secretary for the 
     excess costs incurred by the Secretary for any environmental 
     assessment, study, or analysis, or for any other excess costs 
     incurred by the Secretary, in connection with the conveyance 
     authorized by this section, if the excess costs were incurred 
     as a result of a request by the Port Authority. In this 
     paragraph, the term ``excess costs'' means costs in excess of 
     those costs considered reasonable and necessary by the 
     Secretary to comply with existing law to make the conveyance 
     authorized by subsection (a).
       (2) Section 2695(c) of title 10, United States Code, shall 
     apply to any amount received by the Secretary under this 
     subsection.
       (f) Description of Property.--The exact acreage and legal 
     description of the real property to be conveyed under 
     subsection (a)(1), and an appropriate inventory or other 
     description of the personal property to be conveyed under 
     subsection (a)(2), shall be determined by a survey and other 
     means satisfactory to the Secretary. The cost of the survey 
     shall be borne by the Port Authority.
       (g) Additional Terms and Conditions.--The Secretary may 
     require such additional terms and conditions in connection 
     with the conveyance under subsection (a)(1), and any lease 
     under subsection (b), as the Secretary considers appropriate 
     to protect the interests of the United States.

     SEC. 2848. MODIFICATION OF LAND CONVEYANCE, FORMER UNITED 
                   STATES MARINE CORPS AIR STATION, EAGLE MOUNTAIN 
                   LAKE, TEXAS.

       Section 5 of Public Law 85-258 (71 Stat. 583) is amended by 
     inserting before the period at the end the following: ``or 
     for the protection, maintenance, and operation of other Texas 
     National Guard facilities''.

     PART III--AIR FORCE CONVEYANCES

     SEC. 2851. CONVEYANCE OF AVIGATION EASEMENTS, FORMER NORTON 
                   AIR FORCE BASE, CALIFORNIA.

       (a) Conveyance Required.--The Administrator of General 
     Services shall convey, without consideration, to the Inland 
     Valley Development Agency (the redevelopment authority for 
     former Norton Air Force Base, California) two avigation 
     easements (identified as APN 289-231-08 and APN 289-232-08) 
     held by the United States.
       (b) Condition of Conveyance.--The conveyance required by 
     subsection (a) shall be subject to the condition that, if the 
     recipient sells one or both of the easements conveyed under 
     subsection (a), the recipient shall pay to the United States 
     an amount equal to the lesser of--
       (1) the sale price of the easement; or
       (2) the fair market value of the easement.
       (c) Duration of Condition.--The condition specified in 
     subsection (b) shall apply only to a conveyance that occurs 
     during the 10-year period beginning on the date the 
     Administrator makes the conveyance required by subsection 
     (a).

     SEC. 2852. REEXAMINATION OF LAND CONVEYANCE, LOWRY AIR FORCE 
                   BASE, COLORADO.

       The Secretary of the Air Force shall reevaluate the terms 
     and conditions of the pending negotiated sale agreement with 
     the Lowry Redevelopment Authority for certain real property 
     at Lowry Air Force Base, Colorado, in light of changed 
     circumstances regarding the property, including changes in 
     the flood plain designations affecting some of the property, 
     to determine whether the changed circumstances warrant a 
     reduction in the amount of consideration otherwise required 
     under the agreement or other modifications to the agreement.

     SEC. 2853. WATER RIGHTS CONVEYANCE, ANDERSEN AIR FORCE BASE, 
                   GUAM.

       (a) Authority To Convey.--In conjunction with the 
     conveyance of the water supply system for Andersen Air Force 
     Base, Guam, under the authority of section 2688 of title 10, 
     United States Code, and in accordance with all the 
     requirements of that section, the Secretary of the Air Force 
     may convey all right, title, and interest of the United 
     States, or such lesser estate as the Secretary considers 
     appropriate to serve the interests of the United States, in 
     the water rights related to the following Air Force 
     properties located on Guam:
       (1) Andy South, also known as the Andersen Administrative 
     Annex.
       (2) Marianas Bonins Base Command.
       (3) Andersen Water Supply Annex, also known as the Tumon 
     Water Well or the Tumon Maui Well.
       (b) Additional Requirements.--The Secretary may exercise 
     the authority contained in subsection (a) only if the 
     Secretary--
       (1) determines that adequate supplies of potable 
     groundwater exist under the main base and northwest field 
     portions of Andersen Air Force Base to meet the current and 
     long-term requirements of the installation for water;
       (2) determines that such supplies of groundwater are 
     economically obtainable; and
       (3) requires the conveyee of the water rights under 
     subsection (a) to provide a water system capable of meeting 
     the water supply needs of the main base and northwest field 
     portions of Andersen Air Force Base, as determined by the 
     Secretary.
       (c) Interim Water Supplies.--If the Secretary determines 
     that it is in the best interests of the United States to 
     transfer title to the water rights and utility systems at 
     Andy South and Andersen Water Supply Annex before placing 
     into service a replacement water system and well field on 
     Andersen Air Force Base, the Secretary may require that the 
     United States have the primary right to all water produced 
     from Andy South and Andersen Water Supply Annex until the 
     replacement water system and well field is placed into 
     service and operates to the satisfaction of the Secretary. In 
     exercising the authority provided by this subsection, the 
     Secretary may retain a reversionary interest in the water 
     rights and utility systems at Andy South and Andersen Water 
     Supply Annex until such time as the replacement water system 
     and well field is placed into service and operates to the 
     satisfaction of the Secretary.
       (d) Sale of Excess Water Authorized.--(1) As part of the 
     conveyance of water rights under subsection (a), the 
     Secretary may authorize the conveyee of the water system to 
     sell to public or private entities such water from Andersen 
     Air Force Base as the Secretary determines to be excess to 
     the needs of the United States. In the event the Secretary 
     authorizes the conveyee to resell water, the Secretary shall 
     negotiate a reasonable return to the United States of the 
     value of such excess water sold by the conveyee, which return 
     the Secretary may receive in the form of reduced charges for 
     utility services provided by the conveyee.
       (2) If the Secretary cannot meet the requirements of 
     subsection (b), and the Secretary determines to proceed with 
     a water utility system conveyance under section 2688 of title 
     10, United States Code, without the conveyance of water 
     rights, the Secretary may provide in any such conveyance that 
     the conveyee of the water system may sell to public or 
     private entities such water from Andy South and Andersen 
     Water Supply Annex as the Secretary determines to be excess 
     to the needs of the United States. The Secretary shall 
     negotiate a reasonable return to the United States of the 
     value of such excess water sold by the conveyee, which return 
     the Secretary may receive in the form of reduced charges for 
     utility services provided by the conveyee.
       (e) Treatment of Water Rights.--For purposes of section 
     2688 of title 10, United States Code, the water rights 
     referred to in subsection (a) shall be considered as part of 
     a utility system (as that term is defined in subsection 
     (h)(2) of such section).

     SEC. 2854. CONVEYANCE OF SEGMENT OF LORING PETROLEUM 
                   PIPELINE, MAINE, AND RELATED EASEMENTS.

       (a) Conveyance Authorized.--The Secretary of the Air Force 
     may convey, without consideration, to the Loring Development 
     Authority, Maine (in this section referred to as the 
     ``Authority''), all right, title, and interest of the United 
     States in and to the segment of the Loring Petroleum (POL) 
     Pipeline, Maine, consisting of approximately 27 miles in 
     length and running between the Searsport terminal and Bangor 
     Air National Guard Base.
       (b) Related Easements.--As part of the conveyance 
     authorized by subsection (a), the Secretary may convey to the 
     Authority, without consideration, all right, title, and 
     interest of the United States in and to any easements or 
     rights-of-way necessary for the operation or maintenance of 
     the segment of pipeline conveyed under that subsection.
       (c) Reimbursement for Costs of Conveyance.--(1) The 
     Authority shall reimburse the Secretary for the excess costs 
     incurred by the Secretary for any environmental assessment, 
     study, or analysis, or for any other excess costs incurred by 
     the Secretary, in connection with the conveyance authorized 
     by this section, if the excess costs were incurred as a 
     result of a request by the Authority. In this paragraph, the 
     term ``excess costs'' means costs in excess of those costs 
     considered reasonable and necessary by the Secretary to 
     comply with existing law to make the conveyance authorized by 
     subsection (a).
       (2) Section 2695(c) of title 10, United States Code, shall 
     apply to any amount received by the Secretary under this 
     subsection.
       (d) Description of Property.--The exact acreage and legal 
     description of the segment of

[[Page 25273]]

     pipeline conveyed under subsection (a), and of any easements 
     or rights-of-way conveyed under subsection (b), shall be 
     determined by surveys and other means satisfactory to the 
     Secretary. The cost of any survey or other services performed 
     at the direction of the Secretary under the preceding 
     sentence shall be borne by the Authority.
       (e) Additional Terms and Conditions.--The Secretary may 
     require such additional terms and conditions in connection 
     with the conveyances under this section as the Secretary 
     considers appropriate to protect the interests of the United 
     States.

     SEC. 2855. LAND CONVEYANCE, PETROLEUM TERMINAL SERVING FORMER 
                   LORING AIR FORCE BASE AND BANGOR AIR NATIONAL 
                   GUARD BASE, MAINE.

       (a) Conveyance Authorized.--(1) The Secretary of the Air 
     Force may convey to the Maine Port Authority of the State of 
     Maine (in this section referred to as the ``Authority'') all 
     right, title, and interest of the United States in and to the 
     Petroleum Terminal (POL) at Mack Point, Searsport, Maine, 
     which served former Loring Air Force Base and Bangor Air 
     National Guard Base, Maine.
       (2) The conveyance under paragraph (1) may include the 
     following:
       (A) A parcel of real property, including any improvements 
     thereon, consisting of approximately 20 acres and comprising 
     a portion of the Petroleum Terminal.
       (B) Any additional fuel tanks, other improvements, and 
     equipment located on the 43-acre parcel of property adjacent 
     to the property described in subparagraph (A), and leased by 
     the Secretary as of the date of the enactment of this Act, 
     which constitutes the remaining portion of the Petroleum 
     Terminal.
       (b) Condition of Conveyance.--The Secretary may not make 
     the conveyance under subsection (a) unless the Authority 
     agrees to utilize the property to be conveyed under that 
     subsection solely for economic development purposes.
       (c) Consideration.--(1) As consideration for the conveyance 
     under subsection (a), the Authority shall lease to the 
     Secretary approximately one acre of the real property 
     conveyed under that subsection, together with any 
     improvements thereon, that constitutes the Aerospace Fuels 
     Laboratory (also known as Building 14).
       (2) The real property leased under this subsection shall 
     include the parking lot, outbuildings, and other improvements 
     associated with the Aerospace Fuels Laboratory and such 
     easements of ingress and egress to the real property, 
     including easements for utilities, as are required for the 
     operations of the Aerospace Fuels Laboratory.
       (3) As part of the lease of real property under this 
     subsection, the Authority shall maintain around the real 
     property for the term of the lease a zone, not less than 75 
     feet in depth, free of improvements or encumbrances.
       (4) The lease under this subsection shall be without cost 
     to the United States.
       (5) The term of the lease under this subsection may not 
     exceed 25 years. If operations at the Aerospace Fuels 
     Laboratory cease before the expiration of the term of the 
     lease otherwise provided for under this subsection, the lease 
     shall be deemed to have expired upon the cessation of such 
     operations.
       (d) Conveyance Contingent on Expiration of Lease of Fuel 
     Tanks.--The Secretary may not make the conveyance under 
     subsection (a) until the expiration of the lease referred to 
     in paragraph (2)(B) of that subsection.
       (e) Reimbursement for Costs of Conveyance.--(1) The 
     Authority shall reimburse the Secretary for the excess costs 
     incurred by the Secretary for any environmental assessment, 
     study, or analysis, or for any other excess costs incurred by 
     the Secretary, in connection with the conveyance authorized 
     by this section, if the excess costs were incurred as a 
     result of a request by the Authority. In this paragraph, the 
     term ``excess costs'' means costs in excess of those costs 
     considered reasonable and necessary by the Secretary to 
     comply with existing law to make the conveyance authorized by 
     subsection (a).
       (2) Section 2695(c) of title 10, United States Code, shall 
     apply to any amount received by the Secretary under this 
     subsection.
       (f) Description of Property.--The exact acreage and legal 
     description of the real property conveyed under subsection 
     (a) shall be determined by a survey satisfactory to the 
     Secretary. The cost of the survey shall be borne by the 
     Authority.
       (g) Additional Terms and Conditions.--The Secretary may 
     require such additional terms and conditions in connection 
     with the conveyance under subsection (a), and the lease under 
     subsection (c), as the Secretary considers appropriate to 
     protect the interests of the United States.

     SEC. 2856. LAND CONVEYANCES, CERTAIN FORMER MINUTEMAN III 
                   ICBM FACILITIES IN NORTH DAKOTA.

       (a) Conveyances Authorized.--(1) The Secretary of the Air 
     Force may convey, without consideration, to the State 
     Historical Society of North Dakota (in this section referred 
     to as the ``Historical Society'') all right, title, and 
     interest of the United States in and to parcels of real 
     property, together with any improvements thereon, of the 
     Minuteman III ICBM facilities of the former 321st Missile 
     Group at Grand Forks Air Force Base, North Dakota, as 
     follows:
       (A) The parcel consisting of the launch facility designated 
     ``November-33''.
       (B) The parcel consisting of the missile alert facility and 
     launch control center designated ``Oscar-O''.
       (2) The purpose of the conveyance of the facilities is to 
     provide for the establishment of an historical site allowing 
     for the preservation, protection, and interpretation of the 
     facilities.
       (b) Consultation.--The Secretary shall consult with the 
     Secretary of State and the Secretary of Defense in order to 
     ensure that the conveyances required by subsection (a) are 
     carried out in accordance with applicable treaties.
       (c) Historical Site.--The Secretary may, in cooperation 
     with the Historical Society, enter into one or more 
     cooperative agreements with appropriate public or private 
     entities or individuals in order to provide for the 
     establishment and maintenance of the historic site referred 
     to in subsection (a)(2).
       (d) Description of Property.--The exact acreage and legal 
     description of the real property to be conveyed under 
     subsection (a) shall be determined by survey satisfactory to 
     the Secretary. The cost of the survey shall be borne by the 
     Secretary.
       (e) Additional Terms and Conditions.--The Secretary may 
     require such additional terms and conditions in connection 
     with the conveyances under subsection (a) as the Secretary 
     considers appropriate to protect the interests of the United 
     States.

     SEC. 2857. LAND CONVEYANCES, CHARLESTON AIR FORCE BASE, SOUTH 
                   CAROLINA.

       (a) Conveyance to State of South Carolina Authorized.--The 
     Secretary of the Air Force may convey, without consideration, 
     to the State of South Carolina (in this section referred to 
     as the ``State''), all right, title, and interest of the 
     United States in and to a portion (as determined under 
     subsection (c)) of the real property, including any 
     improvements thereon, consisting of approximately 24 acres at 
     Charleston Air Force Base, South Carolina, and comprising the 
     Air Force Family Housing Annex. The purpose of the conveyance 
     is to facilitate the Remount Road Project.
       (b) Conveyance to City of North Charleston Authorized.--The 
     Secretary may convey, without consideration, to the City of 
     North Charleston, South Carolina (in this section referred to 
     as the ``City''), all right, title, and interest of the 
     United States in and to a portion (as determined under 
     subsection (c)) of the real property, including any 
     improvements thereon, referred to in subsection (a). The 
     purpose of the conveyance is to permit the use of the 
     property by the City for municipal purposes.
       (c) Determination of Portions of Property To Be Conveyed.--
     (1) Subject to paragraph (2), the Secretary, the State, and 
     the City shall jointly determine the portion of the property 
     referred to in subsection (a) that is to be conveyed to the 
     State under subsection (a) and the portion of the property 
     that is to be conveyed to the City under subsection (b).
       (2) In determining under paragraph (1) the portions of 
     property to be conveyed under this section, the portion to be 
     conveyed to the State shall be the minimum portion of the 
     property required by the State for the purpose specified in 
     subsection (a), and the portion to be conveyed to the City 
     shall be the balance of the property.
       (d) Limitation on Conveyances.--The Secretary may not carry 
     out the conveyance of property authorized by subsection (a) 
     or (b) until the completion of an assessment of environmental 
     contamination of the property authorized to be conveyed by 
     such subsection for purposes of determining responsibility 
     for environmental remediation of such property.
       (e) Description of Property.--The exact acreage and legal 
     description of the real property to be conveyed under 
     subsections (a) and (b) shall be determined by surveys 
     satisfactory to the Secretary. The cost of the survey for the 
     property to be conveyed under subsection (a) shall be borne 
     by the State, and the cost of the survey for the property to 
     be conveyed under subsection (b) shall be borne by the City.
       (f) Additional Terms and Conditions.--The Secretary may 
     require such additional terms and conditions in connection 
     with the conveyances under subsections (a) and (b) as the 
     Secretary considers appropriate to protect the interests of 
     the United States.

     SEC. 2858. TRANSFER OF JURISDICTION, MUKILTEO TANK FARM, 
                   EVERETT, WASHINGTON.

       (a) Transfer Authorized.--The Secretary of the Air Force 
     shall transfer, without reimbursement, to the Secretary of 
     Commerce administrative jurisdiction over a parcel of real 
     property, including improvements thereon, consisting of 
     approximately 1.1 acres located at the Mukilteo Tank Farm in 
     Everett, Washington, and containing the Mukilteo Research 
     Center facility of the National Marine Fisheries Service.
       (b) Time for Conveyance.--The Secretary of the Air Force 
     shall make the transfer under subsection (a) at the same time 
     that the Secretary makes the conveyance authorized by section 
     2866 of the Military Construction Authorization Act for 
     Fiscal Year 2001 (division B of the Spence Act; 114 Stat. 
     1654A-436).
       (c) Exchange.--With the consent of the Port Authority for 
     Everett, Washington, the Secretary of Commerce may exchange 
     with the Port Authority all or any portion of the property 
     transferred under subsection (a) for a parcel of real 
     property of equal area at the Mukilteo Tank Farm that is 
     owned by the Port Authority.
       (d) Administration.--The Secretary of Commerce shall 
     administer the property transferred under subsection (a) or 
     received under subsection (c) through the Administrator of 
     the National Oceanic and Atmospheric Administration as part 
     of the Administration. The Administrator shall use the 
     property as the location of

[[Page 25274]]

     a research facility, and may construct a new facility on the 
     property for such research purposes as the Administrator 
     considers appropriate.
       (e) Effect of Failure to Utilize Transferred Property.--(1) 
     If, after the 12-year period beginning on the date of the 
     enactment of this Act, the Administrator is not using any 
     portion of the property transferred under subsection (a) or 
     received under subsection (c) for the purpose specified in 
     subsection (d), the Administrator shall convey, without 
     consideration, to the Port Authority for Everett, Washington, 
     all right, title, and interest in and to such portion of the 
     real property, including improvements thereon.
       (2) The Port Authority shall use any real property conveyed 
     to the Port Authority under this subsection for development 
     and operation of a port facility and for other public 
     purposes.
       (f) Legal Description.--The exact acreage and legal 
     description of the real property to be transferred under 
     subsection (a) shall be determined by a survey satisfactory 
     to the Secretary of the Air Force. The cost of the survey 
     shall be borne by the Secretary of Commerce.
       (g) Additional Terms and Conditions.--The Secretary of the 
     Air Force may require such additional terms and conditions in 
     connection with the transfer under subsection (a) as the 
     Secretary of the Air Force considers appropriate to protect 
     the interests of the United States.
       (h) Conforming Amendment.--Section 2866(a) of the Military 
     Construction Authorization Act for Fiscal Year 2001 (division 
     B of the Spence Act; 114 Stat. 1654A-436) is amended by 
     striking ``22 acres'' and inserting ``20.9 acres''.
                       Subtitle E--Other Matters

     SEC. 2861. MANAGEMENT OF THE PRESIDIO OF SAN FRANCISCO.

       (a) Authority to Lease Certain Housing Units for Use as 
     Army Housing.--Title I of division I of the Omnibus Parks and 
     Public Lands Management Act of 1996 (Public Law 104-333; 16 
     U.S.C. 460bb note) is amended by adding at the end the 
     following new section:

     ``SEC. 107. CONDITIONAL AUTHORITY TO LEASE CERTAIN HOUSING 
                   UNITS WITHIN THE PRESIDIO.

       ``(a) Availability of Housing Units for Long-Term Army 
     Lease.--Subject to subsection (c), the Trust shall make 
     available for lease, to those persons designated by the 
     Secretary of the Army and for such length of time as 
     requested by the Secretary of the Army, 22 housing units 
     located within the Presidio that are under the administrative 
     jurisdiction of the Trust and specified in the agreement 
     between the Trust and the Secretary of the Army in existence 
     as of the date of the enactment of this section.
       ``(b) Lease Amount.--The monthly amount charged by the 
     Trust for the lease of a housing unit under this section 
     shall be equivalent to the monthly rate of the basic 
     allowance for housing that the occupant of the housing unit 
     is entitled to receive under section 403 of title 37, United 
     States Code.
       ``(c) Condition on Continued Availability of Housing 
     Units.--Effective after the end of the four-year period 
     beginning on the date of the enactment of this section, the 
     Trust shall have no obligation to make housing units 
     available under subsection (a) unless, during that four-year 
     period, the Secretary of the Treasury purchases new 
     obligations of at least $80,000,000 issued by the Trust under 
     section 104(d)(2). In the event that this condition is not 
     satisfied, the existing agreement referred to in subsection 
     (a) shall be renewed on the same terms and conditions for an 
     additional five years.''.
       (b) Increased Borrowing Authority and Technical 
     Corrections.--Paragraphs (2) and (3) of section 104(d) of 
     title I of division I of the Omnibus Parks and Public Lands 
     Management Act of 1996, as amended by section 334 of appendix 
     C of Public Law 106-113 (113 Stat. 1501A-198) and amended and 
     redesignated by section 101(13) of Public Law 106-176 (114 
     Stat. 25), are amended--
       (1) in paragraph (2), by striking ``including a review of 
     the creditworthiness of the loan and establishment of a 
     repayment schedule,'' the second place it appears; and
       (2) in paragraph (3)--
       (A) by striking ``$50,000,000'' and inserting 
     ``$150,000,000''; and
       (B) by striking ``paragraph (3) of''.

     SEC. 2862. TRANSFER OF JURISDICTION FOR DEVELOPMENT OF AIR 
                   FORCE MORALE, WELFARE, AND RECREATION FACILITY, 
                   PARK CITY, UTAH.

       (a) Transfer Authorized.--(1) The Secretary of the Interior 
     may transfer, without reimbursement, to the administrative 
     jurisdiction of the Secretary of the Air Force a parcel of 
     real property in Park City, Utah, including any improvements 
     thereon, that consists of approximately 35 acres, is located 
     on the north side of State highway 248 in township 2 south, 
     range 4 east, Salt Lake meridian, and is designated as parcel 
     3 by the Bureau of Land Management. The real property to be 
     transferred under this paragraph does not include any lands 
     located on the south side of State highway 248.
       (2) The transfer shall be subject to existing rights, 
     except that the Secretary of the Interior shall terminate any 
     lease with respect to the parcel issued under the Act of June 
     14, 1926 (commonly known as the Recreation and Public 
     Purposes Act; 43 U.S.C. 689 et seq.), and still in effect as 
     of the date of the enactment of this Act.
       (b) Use of Transferred Land.--(1) The Secretary of the Air 
     Force may use the real property transferred under subsection 
     (a) as the location for an Air Force morale, welfare, and 
     recreation facility to be developed using nonappropriated 
     funds.
       (2) The Secretary of the Air Force may return the 
     transferred property (or property acquired in exchange for 
     the transferred property under subsection (c)) to the 
     administrative jurisdiction of the Secretary of the Interior 
     at any time upon certifying that development of the morale, 
     welfare, and recreation facility would not be in the best 
     interests of the Government.
       (c) Subsequent Conveyance Authority.--(1) In lieu of 
     developing the Air Force morale, welfare, and recreation 
     facility on the real property transferred under subsection 
     (a), the Secretary of the Air Force may convey or lease the 
     property to the State of Utah, a local government, or a 
     private entity in exchange for other property to be used as 
     the site of the facility.
       (2) The values of the properties exchanged by the Secretary 
     under this subsection either shall be equal, or if they are 
     not equal, the values shall be equalized by the payment of 
     money to the grantor or to the Secretary as the circumstances 
     require. The conveyance or lease shall be on such other terms 
     as the Secretary of the Air Force considers to be 
     advantageous to the development of the facility.
       (d) Alternative Development Authority.--The Secretary of 
     the Air Force may lease the real property transferred under 
     subsection (a), or any property acquired pursuant to 
     subsection (c), to another party and may enter into a 
     contract with the party for the design, construction, and 
     operation of the Air Force morale, welfare, and recreation 
     facility. The Secretary of the Air Force may authorize the 
     contractor to operate the facility as both a military and a 
     commercial operation if the Secretary determines that such an 
     authorization is a necessary incentive for the contractor to 
     agree to design, construct, and operate the facility.
       (e) Legal Description.--The exact acreage and legal 
     description of the real property to be transferred under 
     subsection (a) shall be determined by a survey. The cost of 
     the survey shall be borne by the Secretary of the Air Force.

     SEC. 2863. ALTERNATE SITE FOR UNITED STATES AIR FORCE 
                   MEMORIAL, PRESERVATION OF OPEN SPACE ON 
                   ARLINGTON RIDGE TRACT, AND RELATED LAND 
                   TRANSFER AT ARLINGTON NATIONAL CEMETERY, 
                   VIRGINIA.

       (a) Definitions.--In this section:
       (1) The term ``Arlington Naval Annex'' means the parcel of 
     Federal land located in Arlington County, Virginia, that is 
     subject to transfer to the administrative jurisdiction of the 
     Secretary of the Army under section 2881 of the Military 
     Construction Authorization Act for Fiscal Year 2000 (division 
     B of Public Law 106-65; 113 Stat. 879).
       (2) The term ``Foundation'' means the Air Force Memorial 
     Foundation, which was authorized in Public Law 103-163 (107 
     Stat. 1973; 40 U.S.C. 1003 note) to establish a memorial in 
     the District of Columbia or its environs to honor the men and 
     women who have served in the United States Air Force and its 
     predecessors.
       (3) The term ``Air Force Memorial'' means the United States 
     Air Force Memorial to be established by the Foundation.
       (4) The term ``Arlington Ridge tract'' means the parcel of 
     Federal land in Arlington County, Virginia, known as the 
     Nevius Tract and transferred to the Department of the 
     Interior in 1953, that is bounded generally by--
       (A) Arlington Boulevard (United States Route 50) to the 
     north;
       (B) Jefferson Davis Highway (Virginia Route 110) to the 
     east;
       (C) Marshall Drive to the south; and
       (D) North Meade Street to the west.
       (5) The term ``Section 29'' means a parcel of Federal land 
     in Arlington County, Virginia, that is currently administered 
     by the Secretary of the Interior within the boundaries of 
     Arlington National Cemetery and is identified as ``Section 
     29''.
       (b) Use of Arlington Naval Annex as Site for Air Force 
     Memorial.--
       (1) Availability of site.--The Secretary of Defense shall 
     make available to the Foundation, without reimbursement, up 
     to three acres of the Arlington Naval Annex, which the 
     Foundation shall use as the location for the Air Force 
     Memorial in lieu of any previously approved location for the 
     Air Force Memorial. The land made available shall include the 
     promontory adjacent to, and the land underlying, Wing 8 of 
     Federal Office Building #2 in the northeast quadrant of the 
     Arlington Naval Annex.
       (2) Exception.--The requirement to use the land made 
     available under paragraph (1) as the location for the Air 
     Force Memorial, and the prohibition on the use of any 
     previously approved location, shall not apply if the 
     Secretary of Defense determines that it is physically 
     impracticable to construct the Air Force Memorial on such 
     land on account of the geological nature of the land.
       (3) Relation to other transfer authority.--Not later than 
     six months after the date of the enactment of this Act, the 
     Secretary of Defense shall transfer to the Secretary of the 
     Army administrative jurisdiction over the Arlington Naval 
     Annex site made available under this subsection for 
     construction of the Air Force Memorial. Nothing in this 
     subsection alters the deadline for transfer of the remainder 
     of the Arlington Naval Annex to the Secretary of the Army and 
     remediation of the transferred land for use as part of 
     Arlington National Cemetery, as required by section 2881 of 
     the Military Construction Authorization Act for Fiscal Year 
     2000.
       (c) Site Preparation.--
       (1) Preparation for construction.--Upon receipt of 
     notification from the Foundation that the Foundation has 
     sufficient funds to commence construction of the Air Force 
     Memorial,

[[Page 25275]]

     the Secretary of Defense, in coordination with the 
     Foundation, shall remove Wing 8 of Federal Office Building #2 
     at the Arlington Naval Annex, as well as its associated 
     outbuilding and parking lot, and prepare the land made 
     available under subsection (b) for construction of the Air 
     Force Memorial. In addition to demolition and removal, such 
     site preparation work may include environmental remediation, 
     installation of water, sewer, telephone, electrical, and 
     storm water management infrastructure necessary for the 
     memorial, installation of sidewalks consistent with the 
     design of the memorial compliant with the requirements of the 
     Americans with Disabilities Act of 1990 (42 U.S.C. 12101 et 
     seq.), and the placement of screening berms and mature 
     evergreen trees between Federal Office Building #2 and the 
     memorial.
       (2) Completion.--Not later than two years after the date on 
     which the Foundation provides the notification referred to in 
     paragraph (1), the Secretary of Defense shall complete the 
     demolition and removal of the structures and such site 
     preparation work as the Secretary agrees to undertake under 
     this subsection.
       (3) Funding source.--The Secretary of Defense shall use 
     amounts appropriated for operation and maintenance to carry 
     out the demolition and removal work and site preparation 
     described in paragraph (1).
       (4) Assistance for displaced agency.--The Secretary of the 
     Army shall serve as the Executive Agent for the Ballistic 
     Missile Defense Organization in securing suitable sites, 
     including, if necessary, sites not currently owned by the 
     United States, to replace offices lost as a result of the 
     demolition of Wing 8 of Federal Office Building #2 at the 
     Arlington Naval Annex.
       (d) Construction of Air Force Memorial.--
       (1) Commencement.--Upon the demolition and removal of the 
     structures required to be removed under subsection (c)(1), 
     the Secretary of Defense shall permit the Foundation to 
     commence construction of the Air Force Memorial on the 
     Arlington Naval Annex site made available under subsection 
     (b).
       (2) Oversight.--The Secretary of Defense shall have 
     exclusive authority in all matters relating to approval of 
     the siting and design of the Air Force Memorial on the 
     Arlington Naval Annex site, and the siting, design, and 
     construction of the memorial on such site shall not be 
     subject to the requirements of the Commemorative Works Act 
     (40 U.S.C. 1001 et seq.).
       (3) Effect of failure to commence construction.--If, within 
     five years after the date of the enactment of this Act, the 
     Foundation has not commenced construction of the Air Force 
     Memorial on the Arlington Naval Annex site made available 
     under subsection (b), the Secretary of Defense may revoke the 
     authority of the Foundation to use the site as the location 
     of the memorial.
       (e) Access and Management of Air Force Memorial.--The 
     Secretary of the Army may enter into a cooperative agreement 
     with the Foundation to provide for management, maintenance, 
     and repair of the Air Force Memorial constructed on the 
     Arlington Naval Annex site made available under subsection 
     (b) and to guarantee public access to the memorial.
       (f) Limitation on Use of Arlington Naval Annex as Site for 
     Other Memorials or Museums.--Section 2881(b) of the Military 
     Construction Authorization Act for Fiscal Year 2000 (division 
     B of Public Law 106-65; 113 Stat. 879) is amended by striking 
     paragraph (2) and inserting the following new paragraph (2):
       ``(2) The Secretary of Defense shall reserve not more than 
     four acres of the Navy Annex property south of the existing 
     Columbia Pike as a site for--
       ``(A) a National Military Museum, if such site is 
     recommended for such purpose by the Commission on the 
     National Military Museum established under section 2901 and 
     the Secretary of Defense considers such site compatible with 
     Arlington National Cemetery and the Air Force Memorial; or
       ``(B) such other memorials or museums that the Secretary of 
     Defense considers compatible with Arlington National Cemetery 
     and the Air Force Memorial.''.
       (g) Preservation of Arlington Ridge Tract.--
       (1) General rule.--After the date of the enactment of this 
     Act, no additional structure or memorials shall be 
     constructed on the Arlington Ridge tract.
       (2) Option for future burials.--Paragraph (1) does not 
     prohibit the eventual use of a portion of the Arlington Ridge 
     tract as a location for in-ground burial sites and 
     columbarium for the burial of individuals eligible for burial 
     in Arlington National Cemetery, if the development of such 
     sites is specifically authorized in a law enacted after the 
     date of the enactment of this Act.
       (h) Land Transfer, Section 29.--
       (1) Transfer required.--Not later than 30 days after the 
     date of the enactment of this Act, the Secretary of the 
     Interior shall transfer, without reimbursement, to the 
     Secretary of the Army administrative jurisdiction over that 
     portion of Section 29 designated as the interment zone and 
     consisting of approximately 12 acres. The Secretary of the 
     Interior shall modify the boundaries of the George Washington 
     Memorial Parkway as may be necessary to reflect the land 
     transfer required by this subsection.
       (2) Use of transferred land.--The Secretary of the Army 
     shall use the transferred property for the development of in-
     ground burial sites and columbarium that are designed to meet 
     the contours of Section 29.
       (3) Management of remainder.--The Secretary of the Interior 
     shall manage that portion of Section 29 not transferred under 
     this subsection in perpetuity to provide a natural setting 
     and visual buffer for Arlington House, the Robert E. Lee 
     Memorial.
       (4) Repeal of obsolete law.--Section 2821(a) of the 
     Military Construction Authorization Act for Fiscal Year 1997 
     (division B of Public Law 104-201; 110 Stat. 2791) is 
     repealed.

     SEC. 2864. ESTABLISHMENT OF MEMORIAL TO VICTIMS OF TERRORIST 
                   ATTACK ON PENTAGON RESERVATION AND AUTHORITY TO 
                   ACCEPT MONETARY CONTRIBUTIONS FOR MEMORIAL AND 
                   REPAIR OF PENTAGON.

       (a) Memorial Authorized.--The Secretary of Defense may 
     establish a memorial at the Pentagon Reservation dedicated to 
     the victims of the terrorist attack on the Pentagon that 
     occurred on September 11, 2001. The Secretary shall use 
     necessary amounts in the Pentagon Reservation Maintenance 
     Revolving Fund established by section 2674(e) of title 10, 
     United States Code, including amounts deposited in the Fund 
     under subsection (c), to plan, design, construct, and 
     maintain the memorial.
       (b) Acceptance of Contributions.--The Secretary of Defense 
     may accept monetary contributions made for the purpose of 
     assisting in--
       (1) the establishment of the memorial to the victims of the 
     terrorist attack; and
       (2) the repair of the damage caused to the Pentagon 
     Reservation by the terrorist attack.
       (c) Deposit of Contributions.--The Secretary of Defense 
     shall deposit contributions accepted under subsection (b) in 
     the Pentagon Reservation Maintenance Revolving Fund. The 
     contributions shall be available for expenditure only for the 
     purposes specified in subsection (b).

     SEC. 2865. REPEAL OF LIMITATION ON COST OF RENOVATION OF 
                   PENTAGON RESERVATION.

       Section 2864 of the Military Construction Authorization Act 
     for Fiscal Year 1997 (division B of Public Law 104-201; 110 
     Stat. 2806) is repealed.

     SEC. 2866. DEVELOPMENT OF UNITED STATES ARMY HERITAGE AND 
                   EDUCATION CENTER AT CARLISLE BARRACKS, 
                   PENNSYLVANIA.

       (a) Authority To Enter into Agreement.--(1) The Secretary 
     of the Army may enter into an agreement with the Military 
     Heritage Foundation, a nonprofit organization, for the 
     design, construction, and operation of a facility for the 
     United States Army Heritage and Education Center at Carlisle 
     Barracks, Pennsylvania (in this section referred to as the 
     ``facility'').
       (2) The facility is to be used for curation and storage of 
     artifacts, research facilities, classrooms, and offices, and 
     for education and other activities, agreed to by the 
     Secretary, relating to the heritage of the Army. The facility 
     may also be used to support such education and training as 
     the Secretary considers appropriate.
       (b) Design and Construction.--The design of the facility 
     shall be subject to the approval of the Secretary. At the 
     election of the Secretary, the Secretary may--
       (1) accept funds from the Military Heritage Foundation for 
     the design and construction of the facility; or
       (2) permit the Military Heritage Foundation to contract for 
     the design and construction of the facility.
       (c) Acceptance of Facility.--(1) Upon satisfactory 
     completion, as determined by the Secretary, of the facility, 
     and upon the satisfaction of any and all financial 
     obligations incident thereto by the Military Heritage 
     Foundation, the Secretary shall accept the facility from the 
     Military Heritage Foundation, and all right, title, and 
     interest in and to the facility shall vest in the United 
     States.
       (2) Upon becoming property of the United States, the 
     facility shall be under the jurisdiction of the Secretary.
       (d) Use of Certain Gifts.--(1) Under regulations prescribed 
     by the Secretary, the Commandant of the Army War College may, 
     without regard to section 2601 of title 10, United States 
     Code, accept, hold, administer, invest, and spend any gift, 
     devise, or bequest of personnel property of a value of 
     $250,000 or less made to the United States if such gift, 
     devise, or bequest is for the benefit of the United States 
     Army Heritage and Education Center.
       (2) The Secretary may pay or authorize the payment of any 
     reasonable and necessary expense in connection with the 
     conveyance or transfer of a gift, devise, or bequest under 
     this subsection.
       (e) Additional Terms and Conditions.--The Secretary may 
     require such additional terms and conditions in connection 
     with the agreement authorized to be entered into by 
     subsection (a) as the Secretary considers appropriate to 
     protect the interests of the United States.

     SEC. 2867. EFFECT OF LIMITATION ON CONSTRUCTION OF ROADS OR 
                   HIGHWAYS, MARINE CORPS BASE, CAMP PENDLETON, 
                   CALIFORNIA.

       Section 2851(a) of the Military Construction Authorization 
     Act for Fiscal Year 1999 (division B of Public Law 105-261; 
     112 Stat. 2219) is amended in the first sentence by inserting 
     after ``maintain'' the following: ``, notwithstanding any 
     provision of State law to the contrary,''.

     SEC. 2868. ESTABLISHMENT OF WORLD WAR II MEMORIAL AT 
                   ADDITIONAL LOCATION ON GUAM.

       Section 2886 of the Military Construction Authorization Act 
     for Fiscal Year 2001 (division B of the Spence Act; 114 Stat. 
     1654A-441) is amended--
       (1) in subsection (a), by inserting ``, and on Federal 
     lands near Yigo,'' after ``Fena Caves'';
       (2) in the heading of subsection (b), by striking 
     ``Memorial'' and inserting ``Memorials''; and

[[Page 25276]]

       (3) in subsections (b) and (c), by striking ``memorial'' 
     each place it appears and inserting ``memorials''.

     SEC. 2869. DEMONSTRATION PROJECT FOR PURCHASE OF FIRE, 
                   SECURITY, POLICE, PUBLIC WORKS, AND UTILITY 
                   SERVICES FROM LOCAL GOVERNMENT AGENCIES.

       (a) Extension.--Subsection (c) of section 816 of the 
     National Defense Authorization Act for Fiscal Year 1995 
     (Public Law 103-337; 108 Stat. 2820), as added by section 
     2873 of the Strom Thurmond National Defense Authorization Act 
     for Fiscal Year 1999 (Public Law 105-261; 112 Stat. 2225), is 
     amended by striking ``September 30, 2001.'' and inserting 
     ``January 31, 2002, with regard to fire-fighting and police 
     services, and September 30, 2003, with regard to other 
     services described in subsection (a).''.
       (b) Conforming Amendment.--Section 1206 of the Supplemental 
     Appropriations Act, 2001 (Public Law 107-20; 115 Stat. 161), 
     is repealed.

     SEC. 2870. REPORT ON FUTURE LAND NEEDS OF UNITED STATES 
                   MILITARY ACADEMY, NEW YORK, AND ADJACENT 
                   COMMUNITY.

       (a) Report Required.--Not later than February 1, 2002, the 
     Secretary of the Army shall submit to Congress a report 
     evaluating the future needs of the United States Military 
     Academy for lands suitable for use for military training and 
     the feasibility of making unneeded lands available to the 
     Village of Highland Falls, New York, through fee simple 
     conveyance, long-term lease under section 2667 of title 10, 
     United States Code, or other means.
       (b) Consultation.--The Secretary shall prepare the report 
     in consultation with appropriate officials of the Village of 
     Highland Falls.

     SEC. 2871. NAMING OF PATRICIA C. LAMAR ARMY NATIONAL GUARD 
                   READINESS CENTER, OXFORD, MISSISSIPPI.

       The Oxford Army National Guard Readiness Center, Oxford, 
     Mississippi, shall be known and designated as the ``Patricia 
     C. Lamar Army National Guard Readiness Center''. Any 
     reference to that readiness center in any law, regulation, 
     map, document, record, or other paper of the United States 
     shall be considered to be a reference to the Patricia C. 
     Lamar Army National Guard Readiness Center.
            TITLE XXIX--FORT IRWIN MILITARY LAND WITHDRAWAL

Sec. 2901. Short title.
Sec. 2902. Withdrawal and reservation of lands for National Training 
              Center.
Sec. 2903. Map and legal description.
Sec. 2904. Management of withdrawn and reserved lands.
Sec. 2905. Water rights.
Sec. 2906. Environmental compliance and environmental response 
              requirements.
Sec. 2907. West Mojave Coordinated Management Plan.
Sec. 2908. Release of wilderness study areas.
Sec. 2909. Training activity separation from utility corridors.
Sec. 2910. Duration of withdrawal and reservation.
Sec. 2911. Extension of initial withdrawal and reservation.
Sec. 2912. Termination and relinquishment.
Sec. 2913. Delegation of authority.

     SEC. 2901. SHORT TITLE.

       This title may be cited as the ``Fort Irwin Military Land 
     Withdrawal Act of 2001''.

     SEC. 2902. WITHDRAWAL AND RESERVATION OF LANDS FOR NATIONAL 
                   TRAINING CENTER.

       (a) Withdrawal.--Subject to valid existing rights and 
     except as otherwise provided in this title, all public lands 
     and interests in lands described in subsection (c) are hereby 
     withdrawn from all forms of appropriation under the general 
     land laws, including the mining laws and mineral and 
     geothermal leasing laws, and jurisdiction over such lands and 
     interests in lands withdrawn and reserved by this title is 
     hereby transferred to the Secretary of the Army.
       (b) Reservation.--The lands withdrawn under subsection (a) 
     are reserved for use by the Secretary of the Army for the 
     following purposes:
       (1) The conduct of combined arms military training at the 
     National Training Center.
       (2) The development and testing of military equipment at 
     the National Training Center.
       (3) Other defense-related purposes consistent with the 
     purposes specified in paragraphs (1) and (2).
       (4) Conservation and related research purposes.
       (c) Land Description.--The public lands and interests in 
     lands withdrawn and reserved by this section comprise 
     approximately 110,000 acres in San Bernardino County, 
     California, as generally depicted as ``Proposed Withdrawal 
     Land'' on the map entitled ``National Training Center--
     Proposed Withdrawal of Public Lands for Training Purposes'', 
     dated September 21, 2000, and filed in accordance with 
     section 2903.
       (d) Changes in Use.--The Secretary of the Army shall 
     consult with the Secretary of the Interior before using the 
     lands withdrawn and reserved by this section for any purpose 
     other than those purposes identified in subsection (b).
       (e) Indian Tribes.--Nothing in this title shall be 
     construed as altering any rights reserved for tribal use by 
     treaty or Federal law. The Secretary of the Army shall 
     consult with federally recognized Indian tribes in the 
     vicinity of the lands withdrawn under subsection (a) before 
     taking action affecting rights or cultural resources 
     protected by treaty or Federal law.

     SEC. 2903. MAP AND LEGAL DESCRIPTION.

       (a) Preparation of Map and Legal Description.--As soon as 
     practicable after the date of the enactment of this Act, the 
     Secretary of the Interior shall--
       (1) publish in the Federal Register a notice containing the 
     legal description of the lands withdrawn and reserved by this 
     title; and
       (2) file a map and legal description of the lands withdrawn 
     and reserved by this title with the Committee on Energy and 
     Natural Resources of the Senate and the Committee on 
     Resources of the House of Representatives.
       (b) Legal Effect.--The map and legal description shall have 
     the same force and effect as if included in this title, 
     except that the Secretary of the Interior may correct 
     clerical and typographical errors in the map and legal 
     description.
       (c) Availability.--Copies of the map and the legal 
     description shall be available for public inspection in the 
     following offices:
       (1) The offices of the California State Director, 
     California Desert District Office, and Riverside and Barstow 
     Field Offices of the Bureau of Land Management.
       (2) The Office of the Commander, National Training Center 
     and Fort Irwin.
       (d) Costs.--The Secretary of the Army shall reimburse the 
     Secretary of the Interior for the costs incurred by the 
     Secretary of the Interior in implementing this section.

     SEC. 2904. MANAGEMENT OF WITHDRAWN AND RESERVED LANDS.

       (a) General Management Authority.--During the period of the 
     withdrawal and reservation made by this title, the Secretary 
     of the Army shall manage the lands withdrawn and reserved by 
     this title for the purposes specified in section 2902.
       (b) Temporary Prohibition on Certain Use.--Military use of 
     the lands withdrawn and reserved by this title that result in 
     ground disturbance, as determined by the Secretary of the 
     Army and the Secretary of the Interior, are prohibited until 
     the Secretary of the Army and the Secretary of the Interior 
     certify to Congress that there has been full compliance with 
     respect to such lands with the appropriate provisions of this 
     title, the Endangered Species Act of 1973 (16 U.S.C. 1531 et 
     seq.), the National Environmental Policy Act of 1969 (42 
     U.S.C. 4321 et seq.), and other applicable laws.
       (c) Access Restrictions.--
       (1) In general.--If the Secretary of the Army determines 
     that military operations, public safety, or national security 
     require the closure to the public of any road, trail, or 
     other portion of the lands withdrawn and reserved by this 
     title, the Secretary may take such action as the Secretary 
     determines necessary or desirable to effect and maintain such 
     closure.
       (2) Limitation.--Any closure under paragraph (1) shall be 
     limited to the minimum areas and periods that the Secretary 
     of the Army determines are required for the purposes 
     specified in such paragraph.
       (3) Notice.--Immediately preceding and during any closure 
     under paragraph (1), the Secretary of the Army shall post 
     appropriate warning notices and take other steps, as 
     necessary, to notify the public of the closure.
       (d) Integrated Natural Resources Management Plan.--The 
     Secretary of the Army shall prepare and implement, in 
     accordance with title I of the Sikes Act (16 U.S.C. 670 et 
     seq.), an integrated natural resources management plan for 
     the lands withdrawn and reserved by this title. In addition 
     to the elements required under the Sikes Act, the integrated 
     natural resources management plan shall include the 
     following:
       (1) A requirement that any hunting, fishing, and trapping 
     on the lands withdrawn and reserved by this title be 
     conducted in accordance with section 2671 of title 10, United 
     States Code.
       (2) A requirement that the Secretary of the Army take 
     necessary actions to prevent, suppress, and manage brush and 
     range fires occurring within the boundaries of Fort Irwin and 
     brush and range fires occurring outside the boundaries of 
     Fort Irwin that result from military activities at Fort 
     Irwin.
       (e) Firefighting.--Notwithstanding section 2465 of title 
     10, United States Code, the Secretary of the Army may 
     obligate funds appropriated or otherwise available to the 
     Secretary of the Army to enter into a memorandum of 
     understanding, cooperative agreement, or contract for fire 
     fighting services to carry out the requirements of subsection 
     (d)(2). The Secretary of the Army shall reimburse the 
     Secretary of the Interior for costs incurred by the Secretary 
     of the Interior to assist in carrying out the requirements of 
     such subsection.
       (f) Consultation With National Aeronautics and Space 
     Administration.--In preparing and implementing any plan, 
     report, assessment, survey, opinion, or impact statement 
     regarding the lands withdrawn and reserved by this title, the 
     Secretary of the Army shall consult with the Administrator of 
     the National Aeronautics and Space Administration whenever 
     proposed Army actions have the potential to affect the 
     operations or the environmental management of the Goldstone 
     Deep Space Communications Complex. The requirement for 
     consultation shall apply, at a minimum, to the following:
       (1) Plans for military training, military equipment 
     testing, or related activities that have the potential of 
     impacting communications between Goldstone Deep Space 
     Communications Complex and space flight missions or other 
     transmission or receipt of signals from outer space by the 
     Goldstone Deep Space Communications Complex.
       (2) The integrated natural resources management plan 
     required by subsection (d).

[[Page 25277]]

       (3) The West Mojave Coordinated Management Plan referred to 
     in section 2907.
       (4) Any document prepared in compliance with the Endangered 
     Species Act of 1973, the National Environmental Policy Act of 
     1969, and other laws applicable to the lands withdrawn and 
     reserved by this title.
       (g) Use of Mineral Materials.--Notwithstanding any other 
     provision of this title or the Act of July 31, 1947 (commonly 
     known as the Materials Act of 1947; 30 U.S.C. 601 et seq.), 
     the Secretary of the Army may use sand, gravel, or similar 
     mineral material resources of the type subject to disposition 
     under such Act from the lands withdrawn and reserved by this 
     title if the use of such resources is required for 
     construction needs of the National Training Center.

     SEC. 2905. WATER RIGHTS.

       (a) No Reserved Water Right Established.--Nothing in this 
     title shall be construed--
       (1) to establish a reservation in favor of the United 
     States with respect to any water or water right on the lands 
     withdrawn and reserved by this title; or
       (2) to authorize the appropriation of water on such lands 
     by the United States after the date of the enactment of this 
     Act, except in accordance with applicable State law.
       (b) Effect on Previously Acquired or Reserved Water 
     Rights.--This section shall not be construed to affect any 
     water rights acquired or reserved by the United States before 
     the date of the enactment of this Act, and the Secretary of 
     the Army may exercise any such previously acquired or 
     reserved water rights.

     SEC. 2906. ENVIRONMENTAL COMPLIANCE AND ENVIRONMENTAL 
                   RESPONSE REQUIREMENTS.

       (a) Agreements Concerning the Environment and Public 
     Health.--The Secretary of the Army and the Secretary of the 
     Interior shall enter into such agreements as are necessary, 
     appropriate, and in the public interest to carry out the 
     purposes of this title.
       (b) Relation to Other Environmental Laws.--Nothing in this 
     title shall relieve, and no action taken under this title may 
     relieve, the Secretary of the Army or the Secretary of the 
     Interior, or any other person from any liability or other 
     obligation under the Comprehensive Environmental Response, 
     Compensation, and Liability Act of 1980 (42 U.S.C. 9601 et 
     seq.), the Resource Conservation and Recovery Act of 1976 (42 
     U.S.C. 6901 et seq.) or any other Federal or State law.

     SEC. 2907. WEST MOJAVE COORDINATED MANAGEMENT PLAN.

       (a) Completion.--The Secretary of the Interior shall make 
     every effort to complete the West Mojave Coordinated 
     Management Plan not later than two years after the date of 
     the enactment of this Act.
       (b) Consideration of Withdrawal and Reservation Impacts.--
     The Secretary of the Interior shall ensure that the West 
     Mojave Coordinated Management Plan considers the impacts of 
     the availability or nonavailability of the lands withdrawn 
     and reserved by this title on the plan as a whole.
       (c) Consultation.--The Secretary of the Interior shall 
     consult with the Secretary of the Army and the Administrator 
     of the National Aeronautics and Space Administration in the 
     development of the West Mojave Coordinated Management Plan.

     SEC. 2908. RELEASE OF WILDERNESS STUDY AREAS.

       Congress hereby finds and directs that lands withdrawn and 
     reserved by this title have been adequately studied for 
     wilderness designation pursuant to section 603(c) of the 
     Federal Land Policy and Management Act of 1976 (43 U.S.C. 
     1782(c)), and are no longer subject to the requirement of 
     such section pertaining to the management of wilderness study 
     areas in a manner that does not impair the suitability of 
     such areas for preservation as wilderness.

     SEC. 2909. TRAINING ACTIVITY SEPARATION FROM UTILITY 
                   CORRIDORS.

       (a) Required Separation.--All military ground activity 
     training on the lands withdrawn and reserved by this title 
     shall remain at least 500 meters from any utility system, in 
     existence as of the date of the enactment of this Act, in 
     Utility Planning Corridor D, as described in the California 
     Desert Conservation Area Plan, dated 1980 and subsequently 
     amended.
       (b) Exception.--Subsection (a) does not modify the use of 
     any lands used, as of the date of the enactment of this Act, 
     by the National Training Center for training or alter any 
     right of access granted by interagency agreement.

     SEC. 2910. DURATION OF WITHDRAWAL AND RESERVATION.

       (a) Termination Date.--Unless extended pursuant to section 
     2911, unless relinquishment is postponed by the Secretary of 
     the Interior pursuant to section 2912(b), and except as 
     provided in section 2912(d), the withdrawal and reservation 
     made by this title shall terminate 25 years after the date of 
     the enactment of this Act.
       (b) Limitation on Subsequent Availability for 
     Appropriation.--At the time of termination of the withdrawal 
     and reservation made by this title, the previously withdrawn 
     lands shall not be open to any forms of appropriation under 
     the general land laws, including the mining laws and the 
     mineral and geothermal leasing laws, until the Secretary of 
     the Interior publishes in the Federal Register an appropriate 
     order specifying the date upon which such lands shall be 
     restored to the public domain and opened.

     SEC. 2911. EXTENSION OF INITIAL WITHDRAWAL AND RESERVATION.

       (a) Notification Requirement.--Not later than three years 
     before the termination date specified in section 2910(a), the 
     Secretary of the Army shall notify Congress and the Secretary 
     of the Interior whether the Army will have a continuing 
     military need, beyond the termination date, for all or any 
     portion of the lands withdrawn and reserved by this title.
       (b) Process for Extension of Withdrawal and Reservation.--
       (1) Consultation and application.--If the Secretary of the 
     Army determines that there will be a continuing military need 
     after the termination date for any of the lands withdrawn and 
     reserved by this title, the Secretary of the Army shall--
       (A) consult with the Secretary of the Interior concerning 
     any adjustments to be made to the extent of, or to the 
     allocation of management responsibility for, such needed 
     lands; and
       (B) file with the Secretary of the Interior, within one 
     year after the notice required by subsection (a), an 
     application for extension of the withdrawal and reservation 
     of such needed lands.
       (2) Application requirements.--Notwithstanding any general 
     procedure of the Department of the Interior for processing 
     Federal land withdrawals, an application for extension of the 
     land withdrawal and reservation made by this title shall be 
     considered to be complete if the application includes the 
     information required by section 3 of Public Law 85-337 
     (commonly known as the Engle Act; 43 U.S.C. 157), except that 
     no information shall be required concerning the use or 
     development of mineral, timber, or grazing resources unless, 
     and only to the extent, the Secretary of the Army proposes to 
     use or develop such resources during the period of extension.
       (c) Submission of Proposed Extension to Congress.--The 
     Secretary of the Interior and the Secretary of the Army may 
     submit to Congress a legislative proposal for the extension 
     of the withdrawal and reservation made by this title. The 
     legislative proposal shall be accompanied by an appropriate 
     analysis of environmental impacts associated with the 
     proposal, as required by section 102(2)(C) of the National 
     Environmental Policy Act of 1969 (42 U.S.C. 4332(2)(C)).

     SEC. 2912. TERMINATION AND RELINQUISHMENT.

       (a) Notice of Termination.--During the first 22 years of 
     the withdrawal and reservation made by this title, if the 
     Secretary of the Army determines that there is no continuing 
     military need for the lands withdrawn and reserved by this 
     title, or any portion of such lands, the Secretary of the 
     Army shall submit to the Secretary of the Interior a notice 
     of intent to relinquish jurisdiction over such lands. The 
     notice shall specify the proposed date of relinquishment.
       (b) Acceptance of Jurisdiction.--The Secretary of the 
     Interior may accept jurisdiction over any lands covered by a 
     notice under subsection (a) if the Secretary of the Interior 
     determines that the Secretary of the Army has taken or will 
     take all environmental response and restoration activities 
     required under applicable laws and regulations with respect 
     to such lands.
       (c) Notice of Acceptance.--If the Secretary of the Interior 
     decides to accept jurisdiction over lands covered by a notice 
     under subsection (a) before the termination date of the 
     withdrawal and reservation, the Secretary shall publish in 
     the Federal Register an appropriate order that shall--
       (1) terminate the withdrawal and reservation of such lands 
     under this title;
       (2) constitute official acceptance of administrative 
     jurisdiction over the lands by the Secretary of the Interior; 
     and
       (3) state the date upon which such lands shall be opened to 
     the operation of the general land laws, including the mining 
     laws and the mineral and geothermal leasing laws, if 
     appropriate.
       (d) Retained Army Jurisdiction.--Notwithstanding the 
     termination date specified in section 2910, unless and until 
     the Secretary of the Interior accepts jurisdiction of land 
     proposed for relinquishment pursuant to this section, such 
     land shall remain withdrawn and reserved for the Secretary of 
     the Army for the limited purposes of environmental response 
     and restoration actions under section 2906 and continued land 
     management responsibilities pursuant to the integrated 
     natural resources management plan required under section 
     2904, until such environmental response and restoration 
     activities on those lands are completed.
       (e) Severability of Functions.--All functions described 
     under this section, including transfers, relinquishments, 
     extensions, and other determinations, may be made on a 
     parcel-by-parcel basis.

     SEC. 2913. DELEGATION OF AUTHORITY.

       (a) Secretary of the Army.--The Secretary of the Army may 
     delegate to officials in the Department of the Army such 
     functions as the Secretary of the Army may determine 
     appropriate to carry out this title.
       (b) Secretary of the Interior.--The functions of the 
     Secretary of the Interior under this title may be delegated, 
     except that the order described in section 2912(c) may be 
     approved and signed only by the Secretary of the Interior, 
     the Deputy Secretary of the Interior, or an Assistant 
     Secretary of the Department of the Interior.
   TITLE XXX--REALIGNMENT AND CLOSURE OF MILITARY INSTALLATIONS AND 
   PREPARATION OF INFRASTRUCTURE PLAN FOR THE NUCLEAR WEAPONS COMPLEX
Sec. 3001. Authorization of round of realignments and closures of 
              military installations in 2005.

[[Page 25278]]

Sec. 3002. Selection criteria.
Sec. 3003. Revised procedures for making recommendations for 
              realignments and closures and commission consideration of 
              recommendations.
Sec. 3004. Limitations on privatization in place.
Sec. 3005. Department of Defense Base Closure Account 2005.
Sec. 3006. Implementation of closure and realignment decisions.
Sec. 3007. Technical and clarifying amendments.
Sec. 3008. Preparation of infrastructure plan for the nuclear weapons 
              complex.

     SEC. 3001. AUTHORIZATION OF ROUND OF REALIGNMENTS AND 
                   CLOSURES OF MILITARY INSTALLATIONS IN 2005.

       The Defense Base Closure and Realignment Act of 1990 (part 
     A of title XXIX of Public Law 101-510; 10 U.S.C. 2687 note) 
     is amended by adding at the end the following new section:

     ``SEC. 2912. 2005 ROUND OF REALIGNMENTS AND CLOSURES OF 
                   MILITARY INSTALLATIONS.

       ``(a) Force-Structure Plan and Infrastructure Inventory.--
       ``(1) Preparation and submission.--As part of the budget 
     justification documents submitted to Congress in support of 
     the budget for the Department of Defense for fiscal year 
     2005, the Secretary shall include the following:
       ``(A) A force-structure plan for the Armed Forces based on 
     an assessment by the Secretary of the probable threats to the 
     national security during the 20-year period beginning with 
     fiscal year 2005, the probable end-strength levels and major 
     military force units (including land force divisions, carrier 
     and other major combatant vessels, air wings, and other 
     comparable units) needed to meet these threats, and the 
     anticipated levels of funding that will be available for 
     national defense purposes during such period.
       ``(B) A comprehensive inventory of military installations 
     world-wide for each military department, with specifications 
     of the number and type of facilities in the active and 
     reserve forces of each military department.
       ``(2) Relationship of plan and inventory.--Using the force-
     structure plan and infrastructure inventory prepared under 
     paragraph (1), the Secretary shall prepare (and include as 
     part of the submission of such plan and inventory) the 
     following:
       ``(A) A description of the infrastructure necessary to 
     support the force structure described in the force-structure 
     plan.
       ``(B) A discussion of categories of excess infrastructure 
     and infrastructure capacity.
       ``(C) An economic analysis of the effect of the closure or 
     realignment of military installations to reduce excess 
     infrastructure.
       ``(3) Special considerations.--In determining the level of 
     necessary versus excess infrastructure under paragraph (2), 
     the Secretary shall consider the following:
       ``(A) The anticipated continuing need for and availability 
     of military installations outside the United States, taking 
     into account current restrictions on the use of military 
     installations outside the United States and the potential for 
     future prohibitions or restrictions on the use of such 
     military installations.
       ``(B) Any efficiencies that may be gained from joint 
     tenancy by more than one branch of the Armed Forces at a 
     military installation.
       ``(4) Revision.--The Secretary may revise the force-
     structure plan and infrastructure inventory. If the Secretary 
     makes such a revision, the Secretary shall submit the revised 
     plan or inventory to Congress as part of the budget 
     justification documents submitted to Congress for fiscal year 
     2006.
       ``(b) Certification of Need for Further Closures and 
     Realignments.--
       ``(1) Certification required.--On the basis of the force-
     structure plan and infrastructure inventory prepared under 
     subsection (a) and the descriptions and economic analysis 
     prepared under such subsection, the Secretary shall include 
     as part of the submission of the plan and inventory--
       ``(A) a certification regarding whether the need exists for 
     the closure or realignment of additional military 
     installations; and
       ``(B) if such need exists, a certification that the 
     additional round of closures and realignments would result in 
     annual net savings for each of the military departments 
     beginning not later than fiscal year 2011.
       ``(2) Effect of failure to certify.--If the Secretary does 
     not include the certifications referred to in paragraph (1), 
     the process by which military installations may be selected 
     for closure or realignment under this part in 2005 shall be 
     terminated.
       ``(c) Comptroller General Evaluation.--
       ``(1) Evaluation required.--If the certification is 
     provided under subsection (b), the Comptroller General shall 
     prepare an evaluation of the following:
       ``(A) The force-structure plan and infrastructure inventory 
     prepared under subsection (a) and the final selection 
     criteria prepared under section 2913, including an evaluation 
     of the accuracy and analytical sufficiency of such plan, 
     inventory, and criteria.
       ``(B) The need for the closure or realignment of additional 
     military installations.
       ``(2) Submission.--The Comptroller General shall submit the 
     evaluation to Congress not later than 60 days after the date 
     on which the force-structure plan and infrastructure 
     inventory are submitted to Congress.
       ``(d) Authorization of Additional Round; Commission.--
       ``(1) Appointment of commission.--Subject to the 
     certifications required under subsection (b), the President 
     may commence an additional round for the selection of 
     military installations for closure and realignment under this 
     part in 2005 by transmitting to the Senate, not later than 
     March 15, 2005, nominations pursuant to section 2902(c) for 
     the appointment of new members to the Defense Base Closure 
     and Realignment Commission.
       ``(2) Effect of failure to nominate.--If the President does 
     not transmit to the Senate the nominations for the Commission 
     by March 15, 2005, the process by which military 
     installations may be selected for closure or realignment 
     under this part in 2005 shall be terminated.
       ``(3) Members.--Notwithstanding section 2902(c)(1), the 
     Commission appointed under the authority of this subsection 
     shall consist of nine members.
       ``(4) Terms; meetings; termination.--Notwithstanding 
     subsections (d), (e)(1), and (l) of section 2902, the 
     Commission appointed under the authority of this subsection 
     shall meet during calendar year 2005 and shall terminate on 
     April 15, 2006.
       ``(5) Funding.--If no funds are appropriated to the 
     Commission by the end of the second session of the 108th 
     Congress for the activities of the Commission in 2005, the 
     Secretary may transfer to the Commission for purposes of its 
     activities under this part in that year such funds as the 
     Commission may require to carry out such activities. The 
     Secretary may transfer funds under the preceding sentence 
     from any funds available to the Secretary. Funds so 
     transferred shall remain available to the Commission for such 
     purposes until expended.''.

     SEC. 3002. SELECTION CRITERIA.

       The Defense Base Closure and Realignment Act of 1990 (part 
     A of title XXIX of Public Law 101-510; 10 U.S.C. 2687 note) 
     is amended by inserting after section 2912, as added by 
     section 3001, the following new section:

     ``SEC. 2913. SELECTION CRITERIA FOR 2005 ROUND.

       ``(a) Preparation of Proposed Selection Criteria.--
       ``(1) In general.--Not later than December 31, 2003, the 
     Secretary shall publish in the Federal Register and transmit 
     to the congressional defense committees the criteria proposed 
     to be used by the Secretary in making recommendations for the 
     closure or realignment of military installations inside the 
     United States under this part in 2005.
       ``(2) Public comment.--The Secretary shall provide an 
     opportunity for public comment on the proposed criteria for a 
     period of at least 30 days and shall include notice of that 
     opportunity in the publication required under this 
     subsection.
       ``(b) Military Value as Primary Consideration.--The 
     selection criteria prepared by the Secretary shall ensure 
     that military value is the primary consideration in the 
     making of recommendations for the closure or realignment of 
     military installations under this part in 2005. Military 
     value shall include at a minimum the following:
       ``(1) Preservation of training areas suitable for maneuver 
     by ground, naval, or air forces to guarantee future 
     availability of such areas to ensure the readiness of the 
     Armed Forces.
       ``(2) Preservation of military installations in the United 
     States as staging areas for the use of the Armed Forces in 
     homeland defense missions.
       ``(3) Preservation of military installations throughout a 
     diversity of climate and terrain areas in the United States 
     for training purposes.
       ``(4) The impact on joint warfighting, training, and 
     readiness.
       ``(5) Contingency, mobilization, and future total force 
     requirements at both existing and potential receiving 
     locations to support operations and training.
       ``(c) Special Considerations.--The selection criteria for 
     military installations shall also address at a minimum the 
     following:
       ``(1) The extent and timing of potential costs and savings, 
     including the number of years, beginning with the date of 
     completion of the closure or realignment, for the savings to 
     exceed the costs.
       ``(2) The economic impact on existing communities in the 
     vicinity of military installations.
       ``(3) The ability of both existing and potential receiving 
     communities' infrastructure to support forces, missions, and 
     personnel.
       ``(4) The impact of costs related to potential 
     environmental restoration, waste management, and 
     environmental compliance activities.
       ``(d) Effect on Department and Other Agency Costs.--Any 
     selection criteria proposed by the Secretary relating to the 
     cost savings or return on investment from the proposed 
     closure or realignment of military installations shall take 
     into account the effect of the proposed closure or 
     realignment on the costs of any other activity of the 
     Department of Defense or any other Federal agency that may be 
     required to assume responsibility for activities at the 
     military installations.
       ``(e) Final Selection Criteria.--Not later than February 
     16, 2004, the Secretary shall publish in the Federal Register 
     and transmit to the congressional defense committees the 
     final criteria to be used in making recommendations for the 
     closure or realignment of military installations inside the 
     United States under this part in 2005. Such criteria shall be 
     the final criteria to be used, along with the force-structure 
     plan and infrastructure inventory referred to in section 
     2912, in making such recommendations unless disapproved by an 
     Act of Congress enacted on or before March 15, 2004.
       ``(f) Relation to Criteria for Earlier Rounds.--Section 
     2903(b), and the selection criteria prepared under such 
     section, shall not

[[Page 25279]]

     apply with respect to the process of making recommendations 
     for the closure or realignment of military installations in 
     2005.''.

     SEC. 3003. REVISED PROCEDURES FOR MAKING RECOMMENDATIONS FOR 
                   REALIGNMENTS AND CLOSURES AND COMMISSION 
                   CONSIDERATION OF RECOMMENDATIONS.

       The Defense Base Closure and Realignment Act of 1990 (part 
     A of title XXIX of Public Law 101-510; 10 U.S.C. 2687 note) 
     is amended by inserting after section 2913, as added by 
     section 3002, the following new section:

     ``SEC. 2914. SPECIAL PROCEDURES FOR MAKING RECOMMENDATIONS 
                   FOR REALIGNMENTS AND CLOSURES FOR 2005 ROUND; 
                   COMMISSION CONSIDERATION OF RECOMMENDATIONS.

       ``(a) Recommendations Regarding Closure or Realignment of 
     Military Installations.--If the Secretary makes the 
     certifications required under section 2912(b), the Secretary 
     shall publish in the Federal Register and transmit to the 
     congressional defense committees and the Commission, not 
     later than May 16, 2005, a list of the military installations 
     inside the United States that the Secretary recommends for 
     closure or realignment on the basis of the force-structure 
     plan and infrastructure inventory prepared by the Secretary 
     under section 2912 and the final selection criteria prepared 
     by the Secretary under section 2913.
       ``(b) Preparation of Recommendations.--
       ``(1) In general.--The Secretary shall comply with 
     paragraphs (2) through (6) of section 2903(c) in preparing 
     and transmitting the recommendations under this section. 
     However, paragraph (6) of section 2903(c) relating to 
     submission of information to Congress shall be deemed to 
     require such submission within 48 hours.
       ``(2) Consideration of local government views.--(A) In 
     making recommendations to the Commission in 2005, the 
     Secretary shall consider any notice received from a local 
     government in the vicinity of a military installation that 
     the government would approve of the closure or realignment of 
     the installation.
       ``(B) Notwithstanding the requirement in subparagraph (A), 
     the Secretary shall make the recommendations referred to in 
     that subparagraph based on the force-structure plan, 
     infrastructure inventory, and final selection criteria 
     otherwise applicable to such recommendations.
       ``(C) The recommendations shall include a statement of the 
     result of the consideration of any notice described in 
     subparagraph (A) that is received with respect to a military 
     installation covered by such recommendations. The statement 
     shall set forth the reasons for the result.
       ``(c) Recommendations to Retain Bases in Inactive Status.--
     In making recommendations for the closure or realignment of 
     military installations, the Secretary may recommend that an 
     installation be placed in an inactive status if the Secretary 
     determines that--
       ``(1) the installation may be needed in the future for 
     national security purposes; or
       ``(2) retention of the installation is otherwise in the 
     interest of the United States.
       ``(d) Commission Review and Recommendations.--
       ``(1) In general.--Except as provided in this subsection, 
     section 2903(d) shall apply to the consideration by the 
     Commission of the recommendations transmitted by the 
     Secretary in 2005. The Commission's report containing its 
     findings and conclusions, based on a review and analysis of 
     the Secretary's recommendations, shall be transmitted to the 
     President not later than September 8, 2005.
       ``(2) Availability of recommendations to congress.--After 
     September 8, 2005, the Commission shall promptly provide, 
     upon request, to any Member of Congress information used by 
     the Commission in making its recommendations.
       ``(3) Limitations on authority to add to closure or 
     realignment lists.--The Commission may not consider making a 
     change in the recommendations of the Secretary that would add 
     a military installation to the Secretary's list of 
     installations recommended for closure or realignment unless, 
     in addition to the requirements of section 2903(d)(2)(C)--
       ``(A) the Commission provides the Secretary with at least a 
     15-day period, before making the change, in which to submit 
     an explanation of the reasons why the installation was not 
     included on the closure or realignment list by the Secretary; 
     and
       ``(B) the decision to add the installation for Commission 
     consideration is supported by at least seven members of the 
     Commission.
       ``(4) Testimony by secretary.--The Commission shall invite 
     the Secretary to testify at a public hearing, or a closed 
     hearing if classified information is involved, on any 
     proposed change by the Commission to the Secretary's 
     recommendations.
       ``(5) Comptroller general report.--The Comptroller General 
     report required by section 2903(d)(5)(B) analyzing the 
     recommendations of the Secretary and the selection process in 
     2005 shall be transmitted to the congressional defense 
     committees not later than July 1, 2005.
       ``(e) Review by the President.--
       ``(1) In general.--Except as provided in this subsection, 
     section 2903(e) shall apply to the review by the President of 
     the recommendations of the Commission under this section, and 
     the actions, if any, of the Commission in response to such 
     review, in 2005. The President shall review the 
     recommendations of the Secretary and the recommendations 
     contained in the report of the Commission under subsection 
     (d) and prepare a report, not later than September 23, 2005, 
     containing the President's approval or disapproval of the 
     Commission's recommendations.
       ``(2) Commission reconsideration.--If the Commission 
     prepares a revised list of recommendations under section 
     2903(e)(3) in 2005 in response to the review of the President 
     in that year under paragraph (1), the Commission shall 
     transmit the revised list to the President not later than 
     October 20, 2005.
       ``(3) Effect of failure to transmit.--If the President does 
     not transmit to Congress an approval and certification 
     described in paragraph (2) or (4) of section 2903(e) by 
     November 7, 2005, the process by which military installations 
     may be selected for closure or realignment under this part in 
     2005 shall be terminated.
       ``(4) Effect of transmittal.--A report of the President 
     under this subsection containing the President's approval of 
     the Commission's recommendations is deemed to be a report 
     under section 2903(e) for purposes of sections 2904 and 
     2908.''.

     SEC. 3004. LIMITATIONS ON PRIVATIZATION IN PLACE.

       Section 2904(a) of the Defense Base Closure and Realignment 
     Act of 1990 (part A of title XXIX of Public Law 101-510; 10 
     U.S.C. 2687 note) is amended--
       (1) by redesignating paragraphs (3) and (4) as paragraphs 
     (4) and (5), respectively; and
       (2) by inserting after paragraph (2) the following new 
     paragraph (3):
       ``(3) carry out the privatization in place of a military 
     installation recommended for closure or realignment by the 
     Commission in the 2005 report only if privatization in place 
     is a method of closure or realignment of the military 
     installation specified in the recommendations of the 
     Commission in such report and is determined by the Commission 
     to be the most cost-effective method of implementation of the 
     recommendation;''.

     SEC. 3005. DEPARTMENT OF DEFENSE BASE CLOSURE ACCOUNT 2005.

       (a) Establishment.--The Defense Base Closure and 
     Realignment Act of 1990 (part A of title XXIX of Public Law 
     101-510; 10 U.S.C. 2687 note) is amended by inserting after 
     section 2906 the following new section:

     ``SEC. 2906A. DEPARTMENT OF DEFENSE BASE CLOSURE ACCOUNT 
                   2005.

       ``(a) In General.--(1) If the Secretary makes the 
     certifications required under section 2912(b), there shall be 
     established on the books of the Treasury an account to be 
     known as the `Department of Defense Base Closure Account 
     2005' (in this section referred to as the `Account'). The 
     Account shall be administered by the Secretary as a single 
     account.
       ``(2) There shall be deposited into the Account--
       ``(A) funds authorized for and appropriated to the Account;
       ``(B) any funds that the Secretary may, subject to approval 
     in an appropriation Act, transfer to the Account from funds 
     appropriated to the Department of Defense for any purpose, 
     except that such funds may be transferred only after the date 
     on which the Secretary transmits written notice of, and 
     justification for, such transfer to the congressional defense 
     committees; and
       ``(C) except as provided in subsection (d), proceeds 
     received from the lease, transfer, or disposal of any 
     property at a military installation that is closed or 
     realigned under this part pursuant to a closure or 
     realignment the date of approval of which is after January 1, 
     2005.
       ``(3) The Account shall be closed at the time and in the 
     manner provided for appropriation accounts under section 1555 
     of title 31, United States Code. Unobligated funds which 
     remain in the Account upon closure shall be held by the 
     Secretary of the Treasury until transferred by law after the 
     congressional defense committees receive the final report 
     transmitted under subsection (c)(2).
       ``(b) Use of Funds.--(1) The Secretary may use the funds in 
     the Account only for the purposes described in section 2905 
     with respect to military installations the date of approval 
     of closure or realignment of which is after January 1, 2005.
       ``(2) When a decision is made to use funds in the Account 
     to carry out a construction project under section 2905(a) and 
     the cost of the project will exceed the maximum amount 
     authorized by law for a minor military construction project, 
     the Secretary shall notify in writing the congressional 
     defense committees of the nature of, and justification for, 
     the project and the amount of expenditures for such project. 
     Any such construction project may be carried out without 
     regard to section 2802(a) of title 10, United States Code.
       ``(c) Reports.--(1)(A) No later than 60 days after the end 
     of each fiscal year in which the Secretary carries out 
     activities under this part using amounts in the Account, the 
     Secretary shall transmit a report to the congressional 
     defense committees of the amount and nature of the deposits 
     into, and the expenditures from, the Account during such 
     fiscal year and of the amount and nature of other 
     expenditures made pursuant to section 2905(a) during such 
     fiscal year.
       ``(B) The report for a fiscal year shall include the 
     following:
       ``(i) The obligations and expenditures from the Account 
     during the fiscal year, identified by subaccount, for each 
     military department and Defense Agency.
       ``(ii) The fiscal year in which appropriations for such 
     expenditures were made and the fiscal year in which funds 
     were obligated for such expenditures.
       ``(iii) Each military construction project for which such 
     obligations and expenditures were made, identified by 
     installation and project title.
       ``(iv) A description and explanation of the extent, if any, 
     to which expenditures for military

[[Page 25280]]

     construction projects for the fiscal year differed from 
     proposals for projects and funding levels that were included 
     in the justification transmitted to Congress under section 
     2907(1), or otherwise, for the funding proposals for the 
     Account for such fiscal year, including an explanation of--
       ``(I) any failure to carry out military construction 
     projects that were so proposed; and
       ``(II) any expenditures for military construction projects 
     that were not so proposed.
       ``(2) No later than 60 days after the termination of the 
     authority of the Secretary to carry out a closure or 
     realignment under this part with respect to military 
     installations the date of approval of closure or realignment 
     of which is after January 1, 2005, and no later than 60 days 
     after the closure of the Account under subsection (a)(3), the 
     Secretary shall transmit to the congressional defense 
     committees a report containing an accounting of--
       ``(A) all the funds deposited into and expended from the 
     Account or otherwise expended under this part with respect to 
     such installations; and
       ``(B) any amount remaining in the Account.
       ``(d) Disposal or Transfer of Commissary Stores and 
     Property Purchased With Nonappropriated Funds.--(1) If any 
     real property or facility acquired, constructed, or improved 
     (in whole or in part) with commissary store funds or 
     nonappropriated funds is transferred or disposed of in 
     connection with the closure or realignment of a military 
     installation under this part the date of approval of closure 
     or realignment of which is after January 1, 2005, a portion 
     of the proceeds of the transfer or other disposal of property 
     on that installation shall be deposited in the reserve 
     account established under section 204(b)(7)(C) of the Defense 
     Authorization Amendments and Base Closure and Realignment Act 
     (10 U.S.C. 2687 note).
       ``(2) The amount so deposited shall be equal to the 
     depreciated value of the investment made with such funds in 
     the acquisition, construction, or improvement of that 
     particular real property or facility. The depreciated value 
     of the investment shall be computed in accordance with 
     regulations prescribed by the Secretary.
       ``(3) The Secretary may use amounts in the reserve account, 
     without further appropriation, for the purpose of acquiring, 
     constructing, and improving--
       ``(A) commissary stores; and
       ``(B) real property and facilities for nonappropriated fund 
     instrumentalities.
       ``(4) In this subsection, the terms `commissary store 
     funds', `nonappropriated funds', and `nonappropriated fund 
     instrumentality' shall have the meaning given those terms in 
     section 2906(d)(4).
       ``(e) Account Exclusive Source of Funds for Environmental 
     Restoration Projects.--Except as provided in section 2906(e) 
     with respect to funds in the Department of Defense Base 
     Closure Account 1990 under section 2906 and except for funds 
     deposited into the Account under subsection (a), funds 
     appropriated to the Department of Defense may not be used for 
     purposes described in section 2905(a)(1)(C). The prohibition 
     in this subsection shall expire upon the closure of the 
     Account under subsection (a)(3).''.
       (b) Conforming Amendments.--Section 2906 of that Act is 
     amended--
       (1) in subsection (a)(2)(C), by inserting ``the date of 
     approval of closure or realignment of which is before January 
     1, 2005'' after ``under this part'';
       (2) in subsection (b)(1), by inserting ``with respect to 
     military installations the date of approval of closure or 
     realignment of which is before January 1, 2005,'' after 
     ``section 2905'';
       (3) in subsection (c)(2)--
       (A) in the matter preceding subparagraph (A), by inserting 
     ``with respect to military installations the date of approval 
     of closure or realignment of which is before January 1, 
     2005,'' after ``under this part''; and
       (B) in subparagraph (A), by inserting ``with respect to 
     such installations'' after ``under this part'';
       (4) in subsection (d)(1), by inserting ``the date of 
     approval of closure or realignment of which is before January 
     1, 2005'' after ``under this part''; and
       (5) in subsection (e), by striking ``Except for'' and 
     inserting ``Except as provided in section 2906A(e) with 
     respect to funds in the Department of Defense Base Closure 
     Account 2005 under section 2906A and except for''.
       (c) Clerical Amendment.--The section heading of section 
     2906 of that Act is amended by striking ``ACCOUNT'' and 
     inserting ``DEPARTMENT OF DEFENSE BASE CLOSURE ACCOUNT 
     1990''.

     SEC. 3006. IMPLEMENTATION OF CLOSURE AND REALIGNMENT 
                   DECISIONS.

       (a) Requirement to Receive Fair Market Value.--Section 
     2905(b)(4)(B) of that Act is amended--
       (1) in the first sentence, by striking ``shall be without 
     consideration'' in the matter preceding clause (i) and 
     inserting ``may be without consideration''; and
       (2) by inserting after ``(B)'' the following new sentence: 
     ``With respect to military installations for which the date 
     of approval of closure or realignment is after January 1, 
     2005, the Secretary shall seek to obtain consideration in 
     connection with any transfer under this paragraph of property 
     located at the installation in an amount equal to the fair 
     market value of the property, as determined by the 
     Secretary.''.
       (b) Transfers in Connection with Payment of Environmental 
     Remediation.--Section 2905(e) of that Act is amended--
       (1) in paragraph (1)(B), by adding at the end the following 
     new sentence: ``The real property and facilities referred to 
     in subparagraph (A) are also the real property and facilities 
     located at an installation approved for closure or 
     realignment under this part after 2001 that are available for 
     purposes other than to assist the homeless.'';
       (2) in paragraph (2)(A), by striking ``to be paid by the 
     recipient of the property or facilities'' and inserting 
     ``otherwise to be paid by the Secretary with respect to the 
     property or facilities'';
       (3) by striking paragraph (6);
       (4) by redesignating paragraphs (3), (4), and (5) as 
     paragraphs (4), (5), (6), respectively; and
       (5) by inserting after paragraph (2) the following new 
     paragraph (3):
       ``(3) In the case of property or facilities covered by a 
     certification under paragraph (2)(A), the Secretary may pay 
     the recipient of such property or facilities an amount equal 
     to the lesser of--
       ``(A) the amount by which the costs incurred by the 
     recipient of such property or facilities for all 
     environmental restoration, waste, management, and 
     environmental compliance activities with respect to such 
     property or facilities exceed the fair market value of such 
     property or facilities as specified in such certification; or
       ``(B) the amount by which the costs (as determined by the 
     Secretary) that would otherwise have been incurred by the 
     Secretary for such restoration, management, and activities 
     with respect to such property or facilities exceed the fair 
     market value of such property or facilities as so 
     specified.''.
       (c) Scope of Indemnification of Transferees in Connection 
     With Payment of Environmental Remediation.--Paragraph (6) of 
     section 2905(e) of that Act, as redesignated by subsection 
     (b)(4), is amended by inserting before the period the 
     following: ``, except in the case of releases or threatened 
     releases not disclosed pursuant to paragraph (4)''.

     SEC. 3007. TECHNICAL AND CLARIFYING AMENDMENTS.

       (a) Relationship to Other Base Closure Authority.--Section 
     2909(a) of the Defense Base Closure and Realignment Act of 
     1990 (part A of title XXIX of Public Law 101-510; 10 U.S.C. 
     2687 note) is amended by striking ``the date of the enactment 
     of this Act and ending on December 31, 1995,'' and inserting 
     ``November 5, 1990, and ending on April 15, 2006,''.
       (b) Commencement of Period for Notice of Interest in 
     Property for Homeless.--Section 2905(b)(7)(D)(ii)(I) of that 
     Act is amended by striking ``that date'' and inserting ``the 
     date of publication of such determination in a newspaper of 
     general circulation in the communities in the vicinity of the 
     installation under subparagraph (B)(i)(IV)''.
       (c) Committee Name.--That Act is further amended by 
     striking ``National Security'' and inserting ``Armed 
     Services'' each place it appears in the following provisions:
       (A) Section 2902(e)(2)(B)(ii).
       (B) Section 2908(b).
       (d) Other Clarifying Amendments.--(1) That Act is further 
     amended by inserting ``or realignment'' after ``closure'' 
     each place it appears in the following provisions:
       (A) Section 2905(b)(3).
       (B) Section 2905(b)(5).
       (C) Section 2905(b)(7)(B)(iv).
       (D) Section 2905(b)(7)(N).
       (E) Section 2910(10)(B).
       (2) That Act is further amended by inserting ``or 
     realigned'' after ``closed'' each place it appears in the 
     following provisions:
       (A) Section 2905(b)(3)(C)(ii).
       (B) Section 2905(b)(3)(D).
       (C) Section 2905(b)(3)(E).
       (D) Section 2905(b)(5)(A).
       (E) Section 2910(9).
       (F) Section 2910(10).
       (3) Section 2905(e)(1)(B) of that Act is amended by 
     inserting ``, or realigned or to be realigned,'' after 
     ``closed or to be closed''.

     SEC. 3008. PREPARATION OF INFRASTRUCTURE PLAN FOR THE NUCLEAR 
                   WEAPONS COMPLEX.

       (a) Infrastructure Plan for Nuclear Weapons Complex.--
       (1) Preparation and submission.--Not later than the date on 
     which the budget for the Department of Energy for fiscal year 
     2004 is submitted to Congress, the Secretary of Energy shall 
     submit to Congress an infrastructure plan for the nuclear 
     weapons complex adequate to support the nuclear weapons 
     stockpile, the naval reactors program, and nonproliferation 
     and national security activities.
       (2) Special considerations.--In preparing the 
     infrastructure plan, the Secretary shall take into 
     consideration the following:
       (A) The Department of Defense Nuclear Posture Review 
     required pursuant to section 1041 of the Floyd D. Spence 
     National Defense Authorization Act for Fiscal Year 2001 (as 
     enacted into law by Public Law 106-398; 114 Stat. 1654A-262).
       (B) Any efficiencies and security benefits of consolidation 
     of facilities of the nuclear weapons complex.
       (C) The necessity to have a residual production capability.
       (b) Recommendations Regarding Realignments and Closures.--
     On the basis of the infrastructure plan prepared under 
     subsection (a), the Secretary shall make such recommendations 
     regarding the need to close or realign facilities of the 
     nuclear weapons complex as the Secretary considers 
     appropriate, including the Secretary's recommendations on 
     whether to establish a

[[Page 25281]]

     process by which a round of closures and realignments would 
     be carried out and any additional legislative authority 
     necessary to implement the recommendations. The Secretary 
     shall submit the recommendations as part of the 
     infrastructure plan under subsection (a).
       (c) Definitions.--In this section:
       (1) The terms ``Secretary'' and ``Secretary of Energy'' 
     mean the Secretary of Energy, acting after consideration of 
     the recommendations of the Administrator for Nuclear 
     Security.
       (2) The term ``nuclear weapons complex'' means the national 
     security laboratories and nuclear weapons production 
     facilities (as such terms are defined in section 3281 of the 
     National Nuclear Security Administration Act (50 U.S.C. 
     2471)) and the facilities of the Naval Nuclear Propulsion 
     Program provided for under the Naval Nuclear Propulsion 
     Executive Order (as such term is defined in section 3216 of 
     such Act (50 U.S.C. 2406)).
 DIVISION C--DEPARTMENT OF ENERGY NATIONAL SECURITY AUTHORIZATIONS AND 
                          OTHER AUTHORIZATIONS
      TITLE XXXI--DEPARTMENT OF ENERGY NATIONAL SECURITY PROGRAMS

         Subtitle A--National Security Programs Authorizations

Sec. 3101. National Nuclear Security Administration.
Sec. 3102. Defense environmental restoration and waste management.
Sec. 3103. Other defense activities.
Sec. 3104. Defense environmental management privatization.
Sec. 3105. Defense nuclear waste disposal.

                Subtitle B--Recurring General Provisions

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

   Subtitle C--Program Authorizations, Restrictions, and Limitations

Sec. 3131. Consolidation of Nuclear Cities Initiative program with 
              Initiatives for Proliferation Prevention program.
Sec. 3132. Nuclear Cities Initiative.
Sec. 3133. Limitation on availability of funds for weapons activities 
              for facilities and infrastructure.
Sec. 3134. Limitation on availability of funds for other defense 
              activities for national security programs administrative 
              support.
Sec. 3135. Termination date of Office of River Protection, Richland, 
              Washington.
Sec. 3136. Support for public education in the vicinity of Los Alamos 
              National Laboratory, New Mexico.
Sec. 3137. Reports on achievement of milestones for National Ignition 
              Facility.

  Subtitle D--Matters Relating to Management of the National Nuclear 
                        Security Administration

Sec. 3141. Establishment of Principal Deputy Administrator of National 
              Nuclear Security Administration.
Sec. 3142. Elimination of requirement that national security 
              laboratories and nuclear weapons production facilities 
              report to Deputy Administrator for Defense Programs.
Sec. 3143. Repeal of duplicative provision relating to dual office 
              holding by personnel of National Nuclear Security 
              Administration.
Sec. 3144. Report on adequacy of Federal pay and hiring authorities to 
              meet personnel requirements of National Nuclear Security 
              Administration.

                       Subtitle E--Other Matters

Sec. 3151. Improvements to Energy Employees Occupational Illness 
              Compensation Program.
Sec. 3152. Department of Energy counterintelligence polygraph program.
Sec. 3153. One-year extension of authority of Department of Energy to 
              pay voluntary separation incentive payments.
Sec. 3154. Annual assessment and report on vulnerability of Department 
              of Energy facilities to terrorist attack.
Sec. 3155. Disposition of surplus defense plutonium at Savannah River 
              Site, Aiken, South Carolina.
Sec. 3156. Modification of date of report of panel to assess the 
              reliability, safety, and security of the United States 
              nuclear stockpile.

            Subtitle F--Rocky Flats National Wildlife Refuge

Sec. 3171. Short title.
Sec. 3172. Findings and purposes.
Sec. 3173. Definitions.
Sec. 3174. Future ownership and management.
Sec. 3175. Transfer of management responsibilities and jurisdiction 
              over Rocky Flats.
Sec. 3176. Administration of retained property; continuation of cleanup 
              and closure.
Sec. 3177. Rocky Flats National Wildlife Refuge.
Sec. 3178. Comprehensive planning process.
Sec. 3179. Property rights.
Sec. 3180. Liabilities and other obligations.
Sec. 3181. Rocky Flats Museum.
Sec. 3182. Annual report on funding.
         Subtitle A--National Security Programs Authorizations

     SEC. 3101. NATIONAL NUCLEAR SECURITY ADMINISTRATION.

       Funds are hereby authorized to be appropriated to the 
     Department of Energy for fiscal year 2002 for the activities 
     of the National Nuclear Security Administration in carrying 
     out programs necessary for national security in the amount of 
     $7,121,094,000, to be allocated as follows:
       (1) Weapons activities.--For weapons activities, 
     $5,343,567,000, to be allocated as follows:
       (A) For stewardship operation and maintenance, 
     $4,601,871,000, to be allocated as follows:
       (i) For directed stockpile work, $1,002,274,000.
       (ii) For campaigns, $2,074,473,000, to be allocated as 
     follows:

       (I) For operation and maintenance, $1,704,501,000.
       (II) For construction, $369,972,000, to be allocated as 
     follows:

       Project 01-D-101, distributed information systems 
     laboratory, Sandia National Laboratories, Livermore, 
     California, $5,400,000.
       Project 00-D-103, terascale simulation facility, Lawrence 
     Livermore National Laboratory, Livermore, California, 
     $22,000,000.
       Project 00-D-105, strategic computing complex, Los Alamos 
     National Laboratory, Los Alamos, New Mexico, $11,070,000.
       Project 00-D-107, joint computational engineering 
     laboratory, Sandia National Laboratories, Albuquerque, New 
     Mexico, $5,377,000.
       Project 98-D-125, tritium extraction facility, Savannah 
     River Plant, Aiken, South Carolina, $81,125,000.
       Project 96-D-111, national ignition facility (NIF), 
     Lawrence Livermore National Laboratory, Livermore, 
     California, $245,000,000.
       (iii) For readiness in technical base and facilities, 
     $1,525,124,000, to be allocated as follows:

       (I) For operation and maintenance, $1,348,260,000.
       (II) For plant projects (including maintenance, 
     restoration, planning, construction, acquisition, 
     modification of facilities, and the continuation of projects 
     authorized in prior years, and land acquisition related 
     thereto), $176,864,000, to be allocated as follows:

       Project 02-D-103, project engineering and design (PED), 
     various locations, $22,830,000.
       Project 02-D-105, engineering technology complex upgrade, 
     Lawrence Livermore National Laboratory, Livermore, 
     California, $4,750,000.
       Project 02-D-107, electrical power systems safety 
     communications and bus upgrades, Nevada Test Site, Nevada, 
     $3,507,000.
       Project 01-D-101, microsystems and engineering sciences 
     applications (MESA), Sandia National Laboratories, 
     Albuquerque, New Mexico, $39,000,000.
       Project 01-D-103, preliminary project design and 
     engineering, various locations, $16,379,000.
       Project 01-D-107, Atlas relocation, Nevada Test Site, 
     Nevada, $3,300,000.
       Project 01-D-126, weapons evaluation test laboratory, 
     Pantex Plant, Amarillo, Texas, $7,700,000.
       Project 01-D-800, sensitive compartmented information 
     facility, Lawrence Livermore National Laboratory, Livermore, 
     California, $12,993,000.
       Project 99-D-103, isotope sciences facilities, Lawrence 
     Livermore National Laboratory, Livermore, California, 
     $4,400,000.
       Project 99-D-104, protection of real property (roof 
     reconstruction, phase II), Lawrence Livermore National 
     Laboratory, Livermore, California, $2,800,000.
       Project 99-D-106, model validation and system certification 
     center, Sandia National Laboratories, Albuquerque, New 
     Mexico, $4,955,000.
       Project 99-D-108, renovate existing roadways, Nevada Test 
     Site, Nevada, $2,000,000.
       Project 99-D-125, replace boilers and controls, Kansas City 
     Plant, Kansas City, Missouri, $300,000.
       Project 99-D-127, stockpile management restructuring 
     initiative, Kansas City plant, Kansas City, Missouri, 
     $22,200,000.
       Project 99-D-128, stockpile management restructuring 
     initiative, Pantex Plant, Amarillo, Texas, $3,300,000.
       Project 98-D-123, stockpile management restructuring 
     initiative, tritium facility modernization and consolidation, 
     Savannah River Plant, Aiken, South Carolina, $13,700,000.
       Project 98-D-124, stockpile management restructuring 
     initiative, Y-12 consolidation, Oak Ridge, Tennessee, 
     $6,850,000.
       Project 97-D-123, structural upgrades, Kansas City Plant, 
     Kansas City, Missouri, $3,000,000.
       Project 96-D-102, stockpile stewardship facilities 
     revitalization, Phase VI, various locations, $2,900,000.
       (B) For secure transportation asset, $121,800,000, to be 
     allocated as follows:
       (i) For operation and maintenance, $77,571,000.
       (ii) For program direction, $44,229,000.
       (C) For safeguards and security, $448,881,000, to be 
     allocated as follows:
       (i) For operations and maintenance, $439,281,000.
       (ii) For plant projects (including maintenance, 
     restoration, planning, construction, acquisition,

[[Page 25282]]

     modification of facilities, and the continuation of projects 
     authorized in prior years, and land acquisition related 
     thereto), $9,600,000, to be allocated as follows:

       Project 99-D-132, stockpile management restructuring 
     initiative, nuclear material safeguards and security upgrades 
     project, Los Alamos National Laboratory, Los Alamos, New 
     Mexico, $9,600,000.

       (D) For facilities and infrastructure, $200,000,000.
       (E) The total amount authorized by this paragraph is the 
     sum of the amounts authorized to be appropriated by 
     subparagraphs (A) through (D), reduced by $28,985,000, to be 
     derived from a security charge for reimbursable work.
       (2) Defense nuclear nonproliferation.--For defense nuclear 
     nonproliferation activities, $776,886,000, to be allocated as 
     follows:
       (A) For nonproliferation and verification research and 
     development, $244,306,000, to be allocated as follows:
       (i) For operation and maintenance, $208,500,000.
       (ii) For plant projects (including maintenance, 
     restoration, planning, construction, acquisition, 
     modification of facilities, and the continuation of projects 
     authorized in prior years, and land acquisition related 
     thereto), $35,806,000, to be allocated as follows:

       Project 00-D-192, nonproliferation and international 
     security center (NISC), Los Alamos National Laboratory, Los 
     Alamos, New Mexico, $35,806,000.

       (B) For arms control and Russian transition initiatives, 
     $117,741,000.
       (C) For international materials protection, control, and 
     accounting, $143,800,000.
       (D) For highly enriched uranium transparency 
     implementation, $13,950,000.
       (E) For international nuclear safety, $10,000,000.
       (F) For fissile materials control and disposition, 
     $289,089,000, to be allocated as follows:
       (i) For United States surplus fissile materials 
     disposition, $228,089,000, to be allocated as follows:

       (I) For operation and maintenance, $130,089,000.
       (II) For plant projects (including maintenance, 
     restoration, planning, construction, acquisition, 
     modification of facilities, and the continuation of projects 
     authorized in prior years, and land acquisition related 
     thereto), $98,000,000, to be allocated as follows:

       Project 01-D-407, highly enriched uranium blend-down, 
     Savannah River Site, Aiken, South Carolina, $24,000,000.
       Project 99-D-141, pit disassembly and conversion facility, 
     Savannah River Site, Aiken, South Carolina, $11,000,000.
       Project 99-D-143, mixed oxide fuel fabrication facility, 
     Savannah River Site, Aiken, South Carolina, $63,000,000.
       (ii) For Russian surplus fissile materials disposition, 
     $61,000,000.
       (G) The total amount authorized by this paragraph is the 
     sum of the amounts authorized to be appropriated by 
     subparagraphs (A) through (F), reduced by $42,000,000, to be 
     derived from offsets and use of prior year balances.
       (3) Naval reactors.--For naval reactors, $688,045,000, to 
     be allocated as follows:
       (A) For naval reactors development, $665,445,000, to be 
     allocated as follows:
       (i) For operation and maintenance, $652,245,000.
       (ii) For plant projects (including maintenance, 
     restoration, planning, construction, acquisition, 
     modification of facilities, and the continuation of projects 
     authorized in prior years, and land acquisition related 
     thereto), $13,200,000, to be allocated as follows:

       Project 01-D-200, major office replacement building, 
     Schenectady, New York, $9,000,000.
       Project 90-N-102, expended core facility dry cell project, 
     Naval Reactors Facility, Idaho, $4,200,000.

       (B) For program direction, $22,600,000.
       (4) Office of administrator for nuclear security.--For the 
     Office of the Administrator for Nuclear Security, and for 
     program direction for the National Nuclear Security 
     Administration (other than for naval reactors and secure 
     transportation asset), $312,596,000.

     SEC. 3102. DEFENSE ENVIRONMENTAL RESTORATION AND WASTE 
                   MANAGEMENT.

       (a) In General.--Funds are hereby authorized to be 
     appropriated to the Department of Energy for fiscal year 2002 
     for environmental restoration and waste management activities 
     in carrying out programs necessary for national security in 
     the amount of $6,022,415,000, to be allocated as follows:
       (1) Closure projects.--For closure projects carried out in 
     accordance with section 3143 of the National Defense 
     Authorization Act for Fiscal Year 1997 (Public Law 104-201; 
     110 Stat. 2836; 42 U.S.C. 7277n), $1,080,538,000.
       (2) Site/project completion.--For site completion and 
     project completion in carrying out environmental management 
     activities necessary for national security programs, 
     $959,696,000, to be allocated as follows:
       (A) For operation and maintenance, $919,030,000.
       (B) For plant projects (including maintenance, restoration, 
     planning, construction, acquisition, modification of 
     facilities, and the continuation of projects authorized in 
     prior years, and land acquisition related thereto), 
     $40,666,000, to be allocated as follows:
       Project 01-D-402, Intec cathodic protection system 
     expansion, Idaho National Engineering and Environmental 
     Laboratory, Idaho Falls, Idaho, $3,256,000.
       Project 02-D-420, plutonium stabilization and packaging, 
     Savannah River Site, Aiken, South Carolina, $20,000,000.
       Project 01-D-414, preliminary project, engineering and 
     design (PE&D), various locations, $2,754,000.
       Project 99-D-402, tank farm support services, F&H areas, 
     Savannah River Site, Aiken, South Carolina, $5,040,000.
       Project 99-D-404, health physics instrumentation 
     laboratory, Idaho National Engineering and Environmental 
     Laboratory, Idaho Falls, Idaho, $2,700,000.
       Project 98-D-453, plutonium stabilization and handling 
     system for plutonium finishing plant, Richland, Washington, 
     $1,910,000.
       Project 96-D-471, chlorofluorocarbon heating, ventilation, 
     and air conditioning and chiller retrofit, Savannah River 
     Site, Aiken, South Carolina, $4,244,000.
       Project 86-D-103, decontamination and waste treatment 
     facility, Lawrence Livermore National Laboratory, Livermore, 
     California, $762,000.
       (3) Post-2006 completion.--For post-2006 completion in 
     carrying out environmental restoration and waste management 
     activities necessary for national security programs, 
     $3,265,201,000, to be allocated as follows:
       (A) For operation and maintenance, $1,955,979,000.
       (B) For uranium enrichment decontamination and 
     decommissioning fund contribution, $420,000,000.
       (C) For plant projects (including maintenance, restoration, 
     planning, construction, acquisition, modification of 
     facilities, and the continuation of projects authorized in 
     prior years, and land acquisition related thereto), 
     $6,754,000, to be allocated as follows:
       Project 93-D-187, high-level waste removal from filled 
     waste tanks, Savannah River Site, Aiken, South Carolina, 
     $6,754,000.
       (D) For the Office of River Protection in carrying out 
     environmental restoration and waste management activities 
     necessary for national security programs, $882,468,000, to be 
     allocated as follows:
       (i) For operation and maintenance, $322,151,000.
       (ii) For plant projects (including maintenance, 
     restoration, planning, construction, acquisition, 
     modification of facilities, and the continuation of projects 
     authorized in prior years, and land acquisition related 
     thereto), $560,317,000, to be allocated as follows:

       Project 01-D-416, waste treatment and immobilization plant, 
     Richland, Washington, $520,000,000.
       Project 97-D-402, tank farm restoration and safe 
     operations, Richland, Washington, $33,473,000.

       Project 94-D-407, initial tank retrieval systems, Richland, 
     Washington, $6,844,000.

       (4) Science and technology development.--For science and 
     technology development in carrying out environmental 
     restoration and waste management activities necessary for 
     national security programs, $216,000,000.
       (5) Excess facilities.--For excess facilities in carrying 
     out environmental restoration and waste management activities 
     necessary for national security programs, $1,300,000.
       (6) Safeguards and security.--For safeguards and security 
     in carrying out environmental restoration and waste 
     management activities necessary for national security 
     programs, $205,621,000.
       (7) Program direction.--For program direction in carrying 
     out environmental restoration and waste management activities 
     necessary for national security programs, $355,761,000.
       (b) Adjustment.--The total amount authorized to be 
     appropriated by subsection (a) is the sum of the amounts 
     authorized to be appropriated by paragraphs (1) through (7) 
     of that subsection, reduced by $61,702,000, of which 
     $56,311,000 is to reflect an offset provided by use of prior 
     year balances and $5,391,000 is to be derived from a security 
     charge for reimbursable work.

     SEC. 3103. OTHER DEFENSE ACTIVITIES.

       (a) In General.--Funds are hereby authorized to be 
     appropriated to the Department of Energy for fiscal year 2002 
     for other defense activities in carrying out programs 
     necessary for national security in the amount of 
     $499,663,000, to be allocated as follows:
       (1) Intelligence.--For intelligence, $40,844,000.
       (2) Counterintelligence.--For counterintelligence, 
     $46,000,000.
       (3) Security and emergency operations.--For security and 
     emergency operations, $250,427,000, to be allocated as 
     follows:
       (A) For nuclear safeguards and security, $116,500,000.
       (B) For security investigations, $44,927,000.
       (C) For corporate management information programs, 
     $10,000,000.
       (D) For program direction, $79,000,000.
       (4) Independent oversight and performance assurance.--For 
     independent oversight and performance assurance, $14,904,000.
       (5) Environment, safety, and health.--For the Office of 
     Environment, Safety, and Health, $113,307,000, to be 
     allocated as follows:
       (A) For environment, safety, and health (defense), 
     $91,307,000.
       (B) For program direction, $22,000,000.
       (6) Worker and community transition assistance.--For worker 
     and community transition assistance, $20,000,000, to be 
     allocated as follows:
       (A) For worker and community transition, $18,000,000.
       (B) For program direction, $2,000,000.
       (7) Office of hearings and appeals.--For the Office of 
     Hearings and Appeals, $2,893,000.

[[Page 25283]]

       (8) National security programs administrative support.--For 
     national security programs administrative support, 
     $22,000,000.
       (b) Adjustment.--The amount authorized to be appropriated 
     pursuant to subsection (a) is the total of the amounts 
     authorized to be appropriated by paragraphs (1) through (8) 
     of that subsection, reduced by $10,712,000, of which 
     $10,000,000 is to reflect an offset provided by use of prior 
     year balances and $712,000 is to be derived from a security 
     charge for reimbursable work.

     SEC. 3104. DEFENSE ENVIRONMENTAL MANAGEMENT PRIVATIZATION.

       Funds are hereby authorized to be appropriated to the 
     Department of Energy for fiscal year 2002 for privatization 
     initiatives in carrying out environmental restoration and 
     waste management activities necessary for national security 
     programs in the amount of $153,537,000, to be allocated as 
     follows:
       Project 02-PVT-1, Paducah disposal facility, Paducah, 
     Kentucky, $13,329,000.
       Project 02-PVT-2, Portsmouth disposal facility, Portsmouth, 
     Ohio, $2,000,000.
       Project 98-PVT-2, spent nuclear fuel dry storage, Idaho 
     Falls, Idaho, $49,332,000.
       Project 98-PVT-5, environmental management/waste management 
     disposal, Oak Ridge, Tennessee, $26,065,000.
       Project 97-PVT-2, advanced mixed waste treatment project, 
     Idaho Falls, Idaho, $52,000,000.
       Project 97-PVT-3, transuranic waste treatment, Oak Ridge, 
     Tennessee, $10,826,000.

     SEC. 3105. DEFENSE NUCLEAR WASTE DISPOSAL.

       Funds are hereby authorized to be appropriated to the 
     Department of Energy for fiscal year 2002 for payment to the 
     Nuclear Waste Fund established in section 302(c) of the 
     Nuclear Waste Policy Act of 1982 (42 U.S.C. 10222(c)) in the 
     amount of $280,000,000.
                Subtitle B--Recurring General Provisions

     SEC. 3121. REPROGRAMMING.

       (a) In General.--Except as provided in sections 3129 and 
     3130, until the Secretary of Energy submits to the 
     congressional defense committees the report referred to in 
     subsection (b) and a period of 30 days has elapsed after the 
     date on which such committees receive the report, the 
     Secretary may not use amounts appropriated pursuant to this 
     title for any program--
       (1) in amounts that exceed, in a fiscal year, the amount 
     authorized for that program by this title; or
       (2) which has not been presented to, or requested of, 
     Congress.
       (b) Report.--(1) The report referred to in subsection (a) 
     is a report containing a full and complete statement of the 
     action proposed to be taken and the facts and circumstances 
     relied upon in support of the proposed action.
       (2) In the computation of the 30-day period under 
     subsection (a), there shall be excluded any day on which 
     either House of Congress is not in session because of an 
     adjournment of more than 3 days to a day certain.
       (c) Limitations.--(1) In no event may the total amount of 
     funds obligated pursuant to this title exceed the total 
     amount authorized to be appropriated by this title.
       (2) Funds appropriated pursuant to this title may not be 
     used for an item for which Congress has specifically denied 
     funds.

     SEC. 3122. LIMITS ON MINOR CONSTRUCTION PROJECTS.

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

     SEC. 3123. LIMITS ON CONSTRUCTION PROJECTS.

       (a) In General.--(1) Except as provided in paragraph (2), 
     construction on a construction project may not be started or 
     additional obligations incurred in connection with the 
     project above the total estimated cost, whenever the current 
     estimated cost of the construction project, authorized by 
     3101, 3102, or 3103, or which is in support of national 
     security programs of the Department of Energy and was 
     authorized by any previous Act, exceeds by more than 25 
     percent the higher of--
       (A) the amount authorized for the project; or
       (B) the amount of the total estimated cost for the project 
     as shown in the most recent budget justification data 
     submitted to Congress.
       (2) An action described in paragraph (1) may be taken if--
       (A) the Secretary of Energy has submitted to the 
     congressional defense committees a report on the actions and 
     the circumstances making such action necessary; and
       (B) a period of 30 days has elapsed after the date on which 
     the report is received by the committees.
       (3) In the computation of the 30-day period under paragraph 
     (2), there is excluded any day on which either House of 
     Congress is not in session because of an adjournment of more 
     than 3 days to a day certain.
       (b) Exception.--Subsection (a) does not apply to a 
     construction project with a current estimated cost of less 
     than $5,000,000.

     SEC. 3124. FUND TRANSFER AUTHORITY.

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

     SEC. 3125. AUTHORITY FOR CONCEPTUAL AND CONSTRUCTION DESIGN.

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

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

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

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

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

[[Page 25284]]



     SEC. 3128. AVAILABILITY OF FUNDS.

       (a) In General.--Except as provided in subsection (b), when 
     so specified in an appropriations Act, amounts appropriated 
     for operation and maintenance or for plant projects may 
     remain available until expended.
       (b) Exception for Program Direction Funds.--Amounts 
     appropriated for program direction pursuant to an 
     authorization of appropriations in subtitle A shall remain 
     available to be expended only until the end of fiscal year 
     2003.

     SEC. 3129. TRANSFER OF DEFENSE ENVIRONMENTAL MANAGEMENT 
                   FUNDS.

       (a) Transfer Authority for Defense Environmental Management 
     Funds.--The Secretary of Energy shall provide the manager of 
     each field office of the Department of Energy with the 
     authority to transfer defense environmental management funds 
     from a program or project under the jurisdiction of that 
     office to another such program or project.
       (b) Limitations.--(1) Not more than three transfers may be 
     made to or from any program or project under subsection (a) 
     in a fiscal year.
       (2) The amount transferred to or from a program or project 
     under in any one transfer under subsection (a) may not exceed 
     $5,000,000.
       (3) A transfer may not be carried out by a manager of a 
     field office under subsection (a) unless the manager 
     determines that the transfer is necessary--
       (A) to address a risk to health, safety, or the 
     environment; or
       (B) to assure the most efficient use of defense 
     environmental management funds at the field office.
       (4) Funds transferred pursuant to subsection (a) may not be 
     used for an item for which Congress has specifically denied 
     funds or for a new program or project that has not been 
     authorized by Congress.
       (c) Exemption From Reprogramming Requirements.--The 
     requirements of section 3121 shall not apply to transfers of 
     funds pursuant to subsection (a).
       (d) Notification.--The Secretary, acting through the 
     Assistant Secretary of Energy for Environmental Management, 
     shall notify Congress of any transfer of funds pursuant to 
     subsection (a) not later than 30 days after such transfer 
     occurs.
       (e) Definitions.--In this section:
       (1) The term ``program or project'' means, with respect to 
     a field office of the Department of Energy, any of the 
     following:
       (A) A program referred to or a project listed in paragraph 
     (2) or (3) of section 3102(a).
       (B) A program or project not described in subparagraph (A) 
     that is for environmental restoration or waste management 
     activities necessary for national security programs of the 
     Department, that is being carried out by that office, and for 
     which defense environmental management funds have been 
     authorized and appropriated before the date of the enactment 
     of this Act.
       (2) The term ``defense environmental management funds'' 
     means funds appropriated to the Department of Energy pursuant 
     to an authorization for carrying out environmental 
     restoration and waste management activities necessary for 
     national security programs.
       (f) Duration of Authority.--The managers of the field 
     offices of the Department may exercise the authority provided 
     under subsection (a) during the period beginning on October 
     1, 2001, and ending on September 30, 2002.

     SEC. 3130. TRANSFER OF WEAPONS ACTIVITIES FUNDS.

       (a) Transfer Authority for Weapons Activities Funds.--The 
     Secretary of Energy shall provide the manager of each field 
     office of the Department of Energy with the authority to 
     transfer weapons activities funds from a program or project 
     under the jurisdiction of that office to another such program 
     or project.
       (b) Limitations.--(1) Not more than one transfer may be 
     made to or from any program or project under subsection (a) 
     in a fiscal year.
       (2) The amount transferred to or from a program or project 
     in any one transfer under subsection (a) may not exceed 
     $5,000,000.
       (3) A transfer may not be carried out by a manager of a 
     field office under subsection (a) unless the manager 
     determines that the transfer--
       (A) is necessary to address a risk to health, safety, or 
     the environment; or
       (B) will result in cost savings and efficiencies.
       (4) A transfer may not be carried out by a manager of a 
     field office under subsection (a) to cover a cost overrun or 
     scheduling delay for any program or project.
       (5) Funds transferred pursuant to subsection (a) may not be 
     used for an item for which Congress has specifically denied 
     funds or for a new program or project that has not been 
     authorized by Congress.
       (c) Exemption From Reprogramming Requirements.--The 
     requirements of section 3121 shall not apply to transfers of 
     funds pursuant to subsection (a).
       (d) Notification.--The Secretary, acting through the 
     Administrator for Nuclear Security, shall notify Congress of 
     any transfer of funds pursuant to subsection (a) not later 
     than 30 days after such transfer occurs.
       (e) Definitions.--In this section:
       (1) The term ``program or project'' means, with respect to 
     a field office of the Department of Energy, any of the 
     following:
       (A) A program referred to or a project listed in 3101(1).
       (B) A program or project not described in subparagraph (A) 
     that is for weapons activities necessary for national 
     security programs of the Department, that is being carried 
     out by that office, and for which weapons activities funds 
     have been authorized and appropriated before the date of the 
     enactment of this Act.
       (2) The term ``weapons activities funds'' means funds 
     appropriated to the Department of Energy pursuant to an 
     authorization for carrying out weapons activities necessary 
     for national security programs.
       (f) Duration of Authority.--The managers of the field 
     offices of the Department may exercise the authority provided 
     under subsection (a) during the period beginning on October 
     1, 2001, and ending on September 30, 2002.
   Subtitle C--Program Authorizations, Restrictions, and Limitations

     SEC. 3131. CONSOLIDATION OF NUCLEAR CITIES INITIATIVE PROGRAM 
                   WITH INITIATIVES FOR PROLIFERATION PREVENTION 
                   PROGRAM.

       The Administrator for Nuclear Security shall consolidate 
     the Nuclear Cities Initiative program with the Initiatives 
     for Proliferation Prevention program under a single 
     management line.

     SEC. 3132. NUCLEAR CITIES INITIATIVE.

       (a) Limitations on Use of Funds.--No funds authorized to be 
     appropriated for the Nuclear Cities Initiative after fiscal 
     year 2001 may be obligated or expended with respect to more 
     than three nuclear cities, or more than two serial production 
     facilities in Russia, until 30 days after the Administrator 
     for Nuclear Security submits to the appropriate congressional 
     committees an agreement signed by the Russian Federation on 
     access under the Nuclear Cities Initiative to the ten closed 
     nuclear cities and four serial production facilities of the 
     Nuclear Cities Initiative.
       (b) Annual Report.--(1) Not later than the first Monday in 
     February each year, the Administrator shall submit to the 
     appropriate congressional committees a report on financial 
     and programmatic activities with respect to the Nuclear 
     Cities Initiative during the preceding fiscal year.
       (2) Each report shall include, for the fiscal year covered 
     by such report, the following:
       (A) A list of each project that is or was completed, 
     ongoing, or planned under the Nuclear Cities Initiative 
     during such fiscal year.
       (B) For each project listed under subparagraph (A), 
     information, current as of the end of such fiscal year, on 
     the following:
       (i) The purpose of such project.
       (ii) The budget for such project.
       (iii) The life-cycle costs of such project.
       (iv) Participants in such project.
       (v) The commercial viability of such project.
       (vi) The number of jobs in Russia created or to be created 
     by or through such project.
       (vii) Of the total amount of funds spent on such project, 
     the percentage of such amount spent in the United States and 
     the percentage of such amount spent overseas.
       (C) A certification by the Administrator that each project 
     listed under subparagraph (A) did contribute, is 
     contributing, or will contribute, as the case may be, to the 
     downsizing of the nuclear weapons complex in Russia, together 
     with a description of the evidence utilized to make such 
     certification.
       (c) Definitions.--In this section:
       (1) Appropriate congressional committees.--The term 
     ``appropriate congressional committees'' means the Committee 
     on Armed Services of the Senate and the Committee on Armed 
     Services of the House of Representatives.
       (2) Nuclear cities initiative.--The term ``Nuclear Cities 
     Initiative'' means the initiative arising pursuant to the 
     March 1998 discussion between the Vice President of the 
     United States and the Prime Minister of the Russian 
     Federation and between the Secretary of Energy of the United 
     States and the Minister of Atomic Energy of the Russian 
     Federation.
       (3) Nuclear city.--The term ``nuclear city'' means any of 
     the nuclear cities within the complex of the Russia Ministry 
     of Atomic Energy (MINATOM) as follows:
       (A) Sarov (Arzamas-16 and Avangard).
       (B) Zarechnyy (Penza-19).
       (C) Novoural'sk (Sverdlovsk-44).
       (D) Lesnoy (Sverdlovsk-45).
       (E) Ozersk (Chelyabinsk-65).
       (F) Snezhinsk (Chelyabinsk-70).
       (G) Trechgornyy (Zlatoust-36).
       (H) Seversk (Tomsk-7).
       (I) Zhelenznogorsk (Krasnoyarsk-26).
       (J) Zelenogorsk (Krasnoyarsk-45).

     SEC. 3133. LIMITATION ON AVAILABILITY OF FUNDS FOR WEAPONS 
                   ACTIVITIES FOR FACILITIES AND INFRASTRUCTURE.

       Not more than 50 percent of the funds authorized to be 
     appropriated by section 3101(a)(1)(D) for the National 
     Nuclear Security Administration for weapons activities for 
     facilities and infrastructure may be obligated or expended 
     until the Administrator for Nuclear Security submits to the 
     congressional defense committees a report setting forth the 
     following:
       (1) Criteria for the selection of projects to be carried 
     out using such funds.
       (2) Criteria for establishing priorities among projects so 
     selected.
       (3) A list of the projects so selected, including the 
     priority assigned to each such project.

     SEC. 3134. LIMITATION ON AVAILABILITY OF FUNDS FOR OTHER 
                   DEFENSE ACTIVITIES FOR NATIONAL SECURITY 
                   PROGRAMS ADMINISTRATIVE SUPPORT.

       Not more than $5,000,000 of the funds authorized to be 
     appropriated by section 3103(a)(8) for other defense 
     activities for national security programs administrative 
     support may be obligated or expended until the latest of the 
     following:

[[Page 25285]]

       (1) The date on which the Secretary of Energy submits to 
     Congress a report setting forth the purposes for which the 
     Secretary plans to obligate and expend such funds.
       (2) The date on which the Administrator for Nuclear 
     Security submits to Congress the future-years nuclear 
     security program for fiscal year 2002 required by section 
     3253 of the National Nuclear Security Administration Act 
     (title XXXII of Public Law 106-65; 50 U.S.C. 2453).
       (3) The date on which the Secretary of Energy submits to 
     Congress the report on the feasibility of using an energy 
     savings performance contract mechanism to offset, or possibly 
     cover, the cost of a new office building for the Albuquerque 
     operations office of the Department of Energy, as completed 
     by the Secretary in accordance with the directive contained 
     in Senate Report 106-50 (the report of the Committee on Armed 
     Services of the Senate to accompany the bill S. 1059 of the 
     One Hundred Sixth Congress, relating to the National Defense 
     Authorization Act for Fiscal Year 2000; p. 470).

     SEC. 3135. TERMINATION DATE OF OFFICE OF RIVER PROTECTION, 
                   RICHLAND, WASHINGTON.

       Subsection (f) of section 3139 of the Strom Thurmond 
     National Defense Authorization Act for Fiscal Year 1999 
     (Public Law 105-261; 112 Stat. 2250), as amended by section 
     3141 of the Floyd D. Spence National Defense Authorization 
     Act for Fiscal Year 2001 (as enacted into law by Public Law 
     106-398; 114 Stat. 1654A-462), is amended to read as follows:
       ``(f) Termination.--(1) The Office shall terminate on the 
     later to occur of the following dates:
       ``(A) September 30, 2010.
       ``(B) The date on which the Assistant Secretary of Energy 
     for Environmental Management determines, in consultation with 
     the head of the Office, that continuation of the Office is no 
     longer necessary to carry out the responsibilities of the 
     Department of Energy under the Tri-Party Agreement.
       ``(2) The Assistant Secretary shall notify, in writing, the 
     committees referred to in subsection (d) of a determination 
     under paragraph (1).
       ``(3) In this subsection, the term `Tri-Party Agreement' 
     means the Hanford Federal Facility Agreement and Consent 
     Order entered into among the Department of Energy, the 
     Environmental Protection Agency, and the State of Washington 
     Department of Ecology.''.

     SEC. 3136. SUPPORT FOR PUBLIC EDUCATION IN THE VICINITY OF 
                   LOS ALAMOS NATIONAL LABORATORY, NEW MEXICO.

       (a) Support for Fiscal 2002.--From amounts appropriated or 
     otherwise made available to the Secretary of Energy by this 
     title--
       (1) $6,900,000 shall be available for payment by the 
     Secretary for fiscal year 2002 to the Los Alamos National 
     Laboratory Foundation, a not-for-profit foundation chartered 
     in accordance with section 3167(a) of the National Defense 
     Authorization Act for Fiscal Year 1998 (Public Law 105-85; 
     111 Stat. 2052); and
       (2) $8,000,000 shall be available for extension of the 
     contract between the Department of Energy and the Los Alamos 
     Public Schools through fiscal year 2002.
       (b) Support for Fiscal 2003.--Subject to the availability 
     of appropriations, the Secretary is authorized to--
       (1) make payment for fiscal year 2003 similar to the 
     payment referred to in subsection (a)(1); and
       (2) provide for a contract extension through fiscal 2003 
     similar to the contract extension referred to in subsection 
     (a)(2).
       (c) Use of Funds.--The foundation referred to in subsection 
     (a)(1) shall--
       (1) utilize funds provided under this section as a 
     contribution to the endowment fund for the foundation; and
       (2) use the income generated from investments in the 
     endowment fund that are attributable to payments made under 
     this section to fund programs to support the educational 
     needs of children in public schools in the vicinity of Los 
     Alamos National Laboratory.
       (d) Report.--Not later than March 1, 2002, the Secretary 
     shall submit to the congressional defense committees a report 
     setting forth the following:
       (1) An evaluation of the requirements for continued 
     payments beyond fiscal year 2003 into the endowment fund of 
     the foundation referred to in subsection (a) to enable the 
     foundation to meet the goals of the Department to support the 
     recruitment and retention of staff at the Los Alamos National 
     Laboratory.
       (2) The Secretary's recommendations for any further support 
     beyond fiscal year 2003 directly to the Los Alamos Public 
     Schools.

     SEC. 3137. REPORTS ON ACHIEVEMENT OF MILESTONES FOR NATIONAL 
                   IGNITION FACILITY.

       (a) Notification of Achievement.--The Administrator for 
     Nuclear Security shall notify the congressional defense 
     committees when the National Ignition Facility (NIF), 
     Lawrence Livermore National Laboratory, Livermore, 
     California, achieves each Level I milestone and Level II 
     milestone for the National Ignition Facility.
       (b) Report on Failure of Timely Achievement.--Not later 
     than 10 days after the date on which the National Ignition 
     Facility fails to achieve a Level I milestone or Level II 
     milestone for the National Ignition Facility in a timely 
     manner, the Administrator shall submit to the congressional 
     defense committees a report on such failure. Each such report 
     shall include--
       (1) a statement of the failure of the National Ignition 
     Facility to achieve the milestone concerned in a timely 
     manner;
       (2) an explanation for the failure; and
       (3) either--
       (A) an estimate when that milestone will be achieved; or
       (B) if that milestone will not be achieved--
       (i) a statement that that milestone will not be achieved;
       (ii) an explanation why that milestone will not be 
     achieved; and
       (iii) the implications for the overall scope, schedule, and 
     budget of the National Ignition Facility project of not 
     achieving that milestone.
       (c) Milestones.--For purposes of this section, the Level I 
     milestones and Level II milestones for the National Ignition 
     Facility are as established in the August 2000 revised 
     National Ignition Facility baseline document.
       (d) Termination.--The requirements of this section shall 
     terminate on September 30, 2004.
  Subtitle D--Matters Relating to Management of the National Nuclear 
                        Security Administration

     SEC. 3141. ESTABLISHMENT OF PRINCIPAL DEPUTY ADMINISTRATOR OF 
                   NATIONAL NUCLEAR SECURITY ADMINISTRATION.

       (a) Establishment.--Subtitle A of the National Nuclear 
     Security Administration Act (title XXXII of Public Law 106-
     65; 50 U.S.C. 2401 et seq.) is amended--
       (1) by redesignating section 3213 as section 3220 and 
     transferring such section, as so redesignated, to the end of 
     that subtitle; and
       (2) by inserting after section 3212 the following new 
     section 3213:

     ``SEC. 3213. PRINCIPAL DEPUTY ADMINISTRATOR FOR NUCLEAR 
                   SECURITY.

       ``(a) In General.--(1) There is in the Administration a 
     Principal Deputy Administrator, who is appointed by the 
     President, by and with the advice and consent of the Senate.
       ``(2) The Principal Deputy Administrator shall be appointed 
     from among persons who have extensive background in 
     organizational management and are well qualified to manage 
     the nuclear weapons, nonproliferation, and materials 
     disposition programs of the Administration in a manner that 
     advances and protects the national security of the United 
     States.
       ``(b) Duties.--Subject to the authority, direction, and 
     control of the Administrator, the Principal Deputy 
     Administrator shall perform such duties and exercise such 
     powers as the Administrator may prescribe, including the 
     coordination of activities among the elements of the 
     Administration. The Principal Deputy Administrator shall act 
     for, and exercise the powers of, the Administrator when the 
     Administrator is disabled or the position of Administrator is 
     vacant.''.
       (b) Pay Level.--Section 5315 of title 5, United States 
     Code, is amended--
       (1) by inserting before the item relating to Deputy 
     Administrators of the National Nuclear Security 
     Administration the following new item:
       ``Principal Deputy Administrator, National Nuclear Security 
     Administration.''; and
       (2) by inserting ``Additional'' before ``Deputy 
     Administrators of the National Nuclear Security 
     Administration''.
       (c) Clerical Amendments.--The table of contents preceding 
     section 3201 of such Act is amended--
       (1) by striking the item relating to section 3213 and 
     inserting the following:

``Sec. 3213. Principal Deputy Administrator for National Security.'';
     and
       (2) by inserting after the item relating to section 3218 
     the following new items:

``Sec. 3219. Scope of authority of Secretary of Energy to modify 
              organization of Administration.
``Sec. 3220. Status of Administration and contractor personnel within 
              Department of Energy.''.

     SEC. 3142. ELIMINATION OF REQUIREMENT THAT NATIONAL SECURITY 
                   LABORATORIES AND NUCLEAR WEAPONS PRODUCTION 
                   FACILITIES REPORT TO DEPUTY ADMINISTRATOR FOR 
                   DEFENSE PROGRAMS.

       Section 3214 of the National Nuclear Security 
     Administration Act (title XXXII of Public Law 106-65; 113 
     Stat. 959; 50 U.S.C. 2404) is amended by striking subsection 
     (c).

     SEC. 3143. REPEAL OF DUPLICATIVE PROVISION RELATING TO DUAL 
                   OFFICE HOLDING BY PERSONNEL OF NATIONAL NUCLEAR 
                   SECURITY ADMINISTRATION.

       Section 3245 of the National Nuclear Security 
     Administration Act (50 U.S.C. 2443), as added by section 315 
     of the Energy and Water Development Appropriations Act, 2001 
     (as enacted into law by Public Law 106-377; 114 Stat. 1441B-
     23), is repealed.

     SEC. 3144. REPORT ON ADEQUACY OF FEDERAL PAY AND HIRING 
                   AUTHORITIES TO MEET PERSONNEL REQUIREMENTS OF 
                   NATIONAL NUCLEAR SECURITY ADMINISTRATION.

       (a) Report Required.--Not later than March 1, 2002, the 
     Administrator for Nuclear Security shall submit to the 
     congressional committees specified in subsection (b) a report 
     on the adequacy of Federal pay and hiring authorities to meet 
     the personnel requirements of the National Nuclear Security 
     Administration. The report shall include the following:
       (1) A description of the Federal pay and hiring authorities 
     available to the Administrator.
       (2) A description of the Federal pay and hiring authorities 
     that are not available to the Administrator, and an 
     explanation why such authorities are not available.
       (3) If any Federal pay and hiring authorities referred to 
     in paragraph (1) are not being used, an explanation why such 
     authorities are not being used.

[[Page 25286]]

       (4) An assessment of whether or not existing Federal pay 
     and hiring authorities are adequate or inadequate to meet the 
     personnel requirements of the Administration.
       (5) Any recommendations that the Administrator considers 
     appropriate for modifications or enhancements of existing 
     Federal pay and hiring authorities in order to meet the 
     personnel requirements of the Administration.
       (6) Any recommendations that the Administrator considers 
     appropriate for new Federal pay and hiring authorities in 
     order to meet the personnel requirements of the 
     Administration.
       (7) A plan for structuring the pay and hiring authorities 
     with respect to the Federal workforce of the Administration 
     so to ensure that such workforce meets applicable 
     requirements of the most current five-year program plan for 
     the Administration.
       (b) Specified Committees.--The congressional committees 
     referred to in subsection (a) are the following:
       (1) The Committee on Armed Services and the Committee on 
     Governmental Affairs of the Senate.
       (2) The Committee on Armed Services and the Committee on 
     Government Reform of the House of Representatives.
                       Subtitle E--Other Matters

     SEC. 3151. IMPROVEMENTS TO ENERGY EMPLOYEES OCCUPATIONAL 
                   ILLNESS COMPENSATION PROGRAM.

       (a) Amendments to Energy Employees Program.--The Energy 
     Employees Occupational Illness Compensation Program Act of 
     2000 (title XXXVI of the Floyd D. Spence National Defense 
     Authorization Act for Fiscal Year 2001 (as enacted into law 
     by Public Law 106-398; 114 Stat. 1654A-394); 42 U.S.C. 7384 
     et seq.) is amended as follows:
       (1) Certain leukemia as specified cancer.--Section 3621(17) 
     (114 Stat. 1654A-502; 42 U.S.C. 7384l(17)), as amended by 
     section 2403 of the Supplemental Appropriations Act, 2001 
     (Public Law 107-20; 115 Stat. 175), is further amended by 
     adding at the end the following new subparagraph:
       ``(D) Leukemia (other than chronic lymphocytic leukemia), 
     if initial occupation exposure occurred before 21 years of 
     age and onset occurred more than two years after initial 
     occupational exposure.''.
       (2) Additional members of special exposure cohort.--Section 
     3626(b) (114 Stat. 1654A-505; 42 U.S.C. 7384q(b)) is amended 
     in the matter preceding paragraph (1) by inserting after 
     ``Department of Energy facility'' the following: ``, or at an 
     atomic weapons employer facility,''.
       (3) Establishment of chronic silicosis.--Section 
     3627(e)(2)(A) (114 Stat. 1654A-506; 42 U.S.C. 7384r(e)(2)(A)) 
     is amended by striking ``category 1/1'' and inserting 
     ``category 1/0''.
       (4) Survivors.--
       (A) Section 3628(e) (114 Stat. 1654A-506; 42 U.S.C. 
     7384s(e)) is amended to read as follows:
       ``(e) Payments in the case of deceased persons.--(1) In the 
     case of a covered employee who is deceased at the time of 
     payment of compensation under this section, whether or not 
     the death is the result of the covered employee's 
     occupational illness, such payment may be made only as 
     follows:
       ``(A) If the covered employee is survived by a spouse who 
     is living at the time of payment, such payment shall be made 
     to such surviving spouse.
       ``(B) If there is no surviving spouse described in 
     subparagraph (A), such payment shall be made in equal shares 
     to all children of the covered employee who are living at the 
     time of payment.
       ``(C) If there is no surviving spouse described in 
     subparagraph (A) and if there are no children described in 
     subparagraph (B), such payment shall be made in equal shares 
     to the parents of the covered employee who are living at the 
     time of payment.
       ``(D) If there is no surviving spouse described in 
     subparagraph (A), and if there are no children described in 
     subparagraph (B) or parents described in subparagraph (C), 
     such payment shall be made in equal shares to all 
     grandchildren of the covered employee who are living at the 
     time of payment.
       ``(E) If there is no surviving spouse described in 
     subparagraph (A), and if there are no children described in 
     subparagraph (B), parents described in subparagraph (C), or 
     grandchildren described in subparagraph (D), then such 
     payment shall be made in equal shares to the grandparents of 
     the covered employee who are living at the time of payment.
       ``(F) Notwithstanding the other provisions of this 
     paragraph, if there is--
       ``(i) a surviving spouse described in subparagraph (A); and
       ``(ii) at least one child of the covered employee who is 
     living and a minor at the time of payment and who is not a 
     recognized natural child or adopted child of such surviving 
     spouse,

     then half of such payment shall be made to such surviving 
     spouse, and the other half of such payment shall be made in 
     equal shares to each child of the covered employee who is 
     living and a minor at the time of payment.
       ``(2) If a covered employee eligible for payment dies 
     before filing a claim under this title, a survivor of that 
     employee who may receive payment under paragraph (1) may file 
     a claim for such payment.
       ``(3) For purposes of this subsection--
       ``(A) the `spouse' of an individual is a wife or husband of 
     that individual who was married to that individual for at 
     least one year immediately before the death of that 
     individual;
       ``(B) a `child' includes a recognized natural child, a 
     stepchild who lived with an individual in a regular parent-
     child relationship, and an adopted child;
       ``(C) a `parent' includes fathers and mothers through 
     adoption;
       ``(D) a `grandchild' of an individual is a child of a child 
     of that individual; and
       ``(E) a `grandparent' of an individual is a parent of a 
     parent of that individual.''.
       (B) Section 3630(e) (114 Stat. 1654A-507; 42 U.S.C. 
     7384u(e)) is amended to read as follows:
       ``(e) Payments in the case of deceased persons.--(1) In the 
     case of a covered employee who is deceased at the time of 
     payment of compensation under this section, whether or not 
     the death is the result of the covered employee's 
     occupational illness, such payment may be made only as 
     follows:
       ``(A) If the covered employee is survived by a spouse who 
     is living at the time of payment, such payment shall be made 
     to such surviving spouse.
       ``(B) If there is no surviving spouse described in 
     subparagraph (A), such payment shall be made in equal shares 
     to all children of the covered employee who are living at the 
     time of payment.
       ``(C) If there is no surviving spouse described in 
     subparagraph (A) and if there are no children described in 
     subparagraph (B), such payment shall be made in equal shares 
     to the parents of the covered employee who are living at the 
     time of payment.
       ``(D) If there is no surviving spouse described in 
     subparagraph (A), and if there are no children described in 
     subparagraph (B) or parents described in subparagraph (C), 
     such payment shall be made in equal shares to all 
     grandchildren of the covered employee who are living at the 
     time of payment.
       ``(E) If there is no surviving spouse described in 
     subparagraph (A), and if there are no children described in 
     subparagraph (B), parents described in subparagraph (C), or 
     grandchildren described in subparagraph (D), then such 
     payment shall be made in equal shares to the grandparents of 
     the covered employee who are living at the time of payment.
       ``(F) Notwithstanding the other provisions of this 
     paragraph, if there is--
       ``(i) a surviving spouse described in subparagraph (A); and
       ``(ii) at least one child of the covered employee who is 
     living and a minor at the time of payment and who is not a 
     recognized natural child or adopted child of such surviving 
     spouse,

     then half of such payment shall be made to such surviving 
     spouse, and the other half of such payment shall be made in 
     equal shares to each child of the covered employee who is 
     living and a minor at the time of payment.
       ``(2) If a covered employee eligible for payment dies 
     before filing a claim under this title, a survivor of that 
     employee who may receive payment under paragraph (1) may file 
     a claim for such payment.
       ``(3) For purposes of this subsection--
       ``(A) the `spouse' of an individual is a wife or husband of 
     that individual who was married to that individual for at 
     least one year immediately before the death of that 
     individual;
       ``(B) a `child' includes a recognized natural child, a 
     stepchild who lived with an individual in a regular parent-
     child relationship, and an adopted child;
       ``(C) a `parent' includes fathers and mothers through 
     adoption;
       ``(D) a `grandchild' of an individual is a child of a child 
     of that individual; and
       ``(E) a `grandparent' of an individual is a parent of a 
     parent of that individual.''.
       (C) Paragraph (18) of section 3621 (114 Stat. 1654A-502; 42 
     U.S.C. 7384l) is repealed.
       (D) The amendments made by this paragraph shall take effect 
     on July 1, 2001.
       (5) Election of remedies.--Section 3645 (114 Stat. 1654A-
     510; 42 U.S.C. 7385d) is amended by amending subsections (a) 
     through (d) to read as follows:
       ``(a) Effect of Tort Cases Filed Before Enactment of 
     Original Law.--(1) Except as provided in paragraph (2), if an 
     otherwise eligible individual filed a tort case specified in 
     subsection (d) before October 30, 2000, such individual shall 
     be eligible for compensation and benefits under subtitle B.
       ``(2) If such tort case remained pending as of the date of 
     the enactment of the National Defense Authorization Act for 
     Fiscal Year 2002, and such individual does not dismiss such 
     tort case before December 31, 2003, such individual shall not 
     be eligible for such compensation or benefits.
       ``(b) Effect of Tort Cases Filed Between Enactment of 
     Original Law and Enactment of 2001 Amendments.--(1) Except as 
     provided in paragraph (2), if an otherwise eligible 
     individual filed a tort case specified in subsection (d) 
     during the period beginning on October 30, 2000, and ending 
     on the date of the enactment of the National Defense 
     Authorization Act for Fiscal Year 2002, such individual shall 
     not be eligible for such compensation or benefits.
       ``(2) If such individual dismisses such tort case on or 
     before the last permissible date specified in paragraph (3), 
     such individual shall be eligible for such compensation or 
     benefits.
       ``(3) The last permissible date referred to in paragraph 
     (2) is the later of the following dates:
       ``(A) April 30, 2003.
       ``(B) The date that is 30 months after the date the 
     individual first becomes aware that an illness covered by 
     subtitle B of a covered employee may be connected to the 
     exposure of the covered employee in the performance of duty 
     under section 3623.

[[Page 25287]]

       ``(c) Effect of Tort Cases Filed After Enactment of 2001 
     Amendments.--(1) If an otherwise eligible individual files a 
     tort case specified in subsection (d) after the date of the 
     enactment of the National Defense Authorization Act for 
     Fiscal Year 2002, such individual shall not be eligible for 
     such compensation or benefits if a final court decision is 
     entered against such individual in such tort case.
       ``(2) If such a final court decision is not entered, such 
     individual shall nonetheless not be eligible for such 
     compensation or benefits, except as follows: If such 
     individual dismisses such tort case on or before the last 
     permissible date specified in paragraph (3), such individual 
     shall be eligible for such compensation and benefits.
       ``(3) The last permissible date referred to in paragraph 
     (2) is the later of the following dates:
       ``(A) April 30, 2003.
       ``(B) The date that is 30 months after the date the 
     individual first becomes aware that an illness covered by 
     subtitle B of a covered employee may be connected to the 
     exposure of the covered employee in the performance of duty 
     under section 3623.
       ``(d) Covered Tort Cases.--A tort case specified in this 
     subsection is a tort case alleging a claim referred to in 
     section 3643 against a beryllium vendor or atomic weapons 
     employer.''.
       (6) Attorney fees.--Section 3648 (114 Stat. 1654A-511; 42 
     U.S.C. 7385g) is amended--
       (A) in subsection (a), by inserting after ``the claim of an 
     individual'' the following: ``for payment of lump-sum 
     compensation'';
       (B) in subsection (b)(1), by inserting after ``initial 
     claim'' the following: ``for payment of lump-sum 
     compensation'';
       (C) in subsection (b)(2), by striking ``with respect to any 
     claim'' and all that follows through the period at the end 
     and inserting ``with respect to objections to a recommended 
     decision denying payment of lump-sum compensation.'';
       (D) by redesignating subsection (c) as subsection (d); and
       (E) by inserting after subsection (b) the following new 
     subsection (c):
       ``(c) Inapplicability to Other Services.--This section 
     shall not apply with respect to services rendered that are 
     not in connection with such a claim for payment of lump-sum 
     compensation.''.
       (b) Study of Residual Contamination of Facilities.--(1) The 
     National Institute for Occupational Safety and Health shall, 
     with the cooperation of the Department of Energy and the 
     Department of Labor, carry out a study on the following 
     matters:
       (A) Whether or not significant contamination remained in 
     any atomic weapons employer facility or facility of a 
     beryllium vendor after such facility discontinued activities 
     relating to the production of nuclear weapons.
       (B) If so, whether or not such contamination could have 
     caused or substantially contributed to the cancer of a 
     covered employee with cancer or a covered beryllium illness, 
     as the case may be.
       (2)(A) The National Institute for Occupational Safety and 
     Health shall submit to the applicable congressional 
     committees the following reports:
       (i) Not later than 180 days after the date of the enactment 
     of this Act, a report on the progress made as of the date of 
     the report on the study required by paragraph (1).
       (ii) Not later than one year after the date of the 
     enactment of this Act, a final report on the study required 
     by paragraph (1).
       (B) In this paragraph, the term ``applicable congressional 
     committees'' means--
       (i) the Committee on Armed Services, Committee on 
     Appropriations, Committee on the Judiciary, and Committee on 
     Health, Education, Labor, and Pensions of the Senate; and
       (ii) the Committee on Armed Services, Committee on 
     Appropriations, Committee on the Judiciary, and Committee on 
     Education and the Workforce of the House of Representatives.
       (3) Amounts for the study under paragraph (1) shall be 
     derived from amounts authorized to be appropriated by section 
     3614(a) of the Energy Employees Occupational Illness 
     Compensation Program Act of 2000 (114 Stat. 1654A-498).
       (4) In this subsection:
       (A) The terms ``atomic weapons employer facility'', 
     ``beryllium vendor'', ``covered employee with cancer'', and 
     ``covered beryllium illness'' have the meanings given those 
     terms in section 3621 of the Energy Employees Occupational 
     Illness Compensation Program Act of 2000 (114 Stat. 1654A-
     498; 42 U.S.C. 7384l).
       (B) The term ``contamination'' means the presence of any--
       (i) material that emitted radiation and was used in the 
     production of an atomic weapon, excluding uranium mining and 
     milling; or
       (ii) beryllium dust, particles, or vapor,

     exposure to which could cause or substantially contribute to 
     the cancer of a covered employee with cancer or a covered 
     beryllium illness, as the case may be.

     SEC. 3152. DEPARTMENT OF ENERGY COUNTERINTELLIGENCE POLYGRAPH 
                   PROGRAM.

       (a) New Counterintelligence Polygraph Program Required.--
     The Secretary of Energy shall carry out, under regulations 
     prescribed under this section, a new counterintelligence 
     polygraph program for the Department of Energy. The purpose 
     of the new program is to minimize the potential for release 
     or disclosure of classified data, materials, or information.
       (b) Authorities and Limitations.--(1) The Secretary shall 
     prescribe regulations for the new counterintelligence 
     polygraph program required by subsection (a) in accordance 
     with the provisions of subchapter II of chapter 5 of title 5, 
     United States Code (commonly referred to as the 
     Administrative Procedures Act).
       (2) In prescribing regulations for the new program, the 
     Secretary shall take into account the results of the 
     Polygraph Review.
       (3) Not later than six months after obtaining the results 
     of the Polygraph Review, the Secretary shall issue a notice 
     of proposed rulemaking for the new program.
       (c) Repeal of Existing Polygraph Program.--Effective 30 
     days after the Secretary submits to the congressional defense 
     committees the Secretary's certification that the final rule 
     for the new counterintelligence polygraph program required by 
     subsection (a) has been fully implemented, section 3154 of 
     the Department of Energy Facilities Safeguards, Security, and 
     Counterintelligence Enhancement Act of 1999 (subtitle D of 
     title XXXI of Public Law 106-65; 42 U.S.C. 7383h) is 
     repealed.
       (d) Report on Further Enhancement of Personnel Security 
     Program.--(1) Not later than January 1, 2003, the 
     Administrator for Nuclear Security shall submit to Congress a 
     report setting forth the recommendations of the Administrator 
     for any legislative action that the Administrator considers 
     appropriate in order to enhance the personnel security 
     program of the Department of Energy.
       (2) Any recommendations under paragraph (1) regarding the 
     use of polygraphs shall take into account the results of the 
     Polygraph Review.
       (e) Polygraph Review Defined.--In this section, the term 
     ``Polygraph Review'' means the review of the Committee to 
     Review the Scientific Evidence on the Polygraph of the 
     National Academy of Sciences.

     SEC. 3153. ONE-YEAR EXTENSION OF AUTHORITY OF DEPARTMENT OF 
                   ENERGY TO PAY VOLUNTARY SEPARATION INCENTIVE 
                   PAYMENTS.

       (a) In General.--Section 3161(a) of the National Defense 
     Authorization Act for Fiscal Year 2000 (Public Law 106-65; 
     113 Stat. 942; 5 U.S.C. 5597 note) is amended by striking 
     ``January 1, 2003'' and inserting ``January 1, 2004''.
       (b) Construction.--The amendment made by subsection (a) may 
     be superseded by another provision of law that takes effect 
     after the date of the enactment of this Act, and before 
     January 1, 2004, establishing a uniform system for providing 
     voluntary separation incentives (including a system for 
     requiring approval of plans by the Office of Management and 
     Budget) for employees of the Federal Government.

     SEC. 3154. ANNUAL ASSESSMENT AND REPORT ON VULNERABILITY OF 
                   DEPARTMENT OF ENERGY FACILITIES TO TERRORIST 
                   ATTACK.

       (a) In General.--Part C of title VI of the Department of 
     Energy Organization Act (42 U.S.C. 7251 et seq.) is amended 
     by adding at the end the following new section:


   ``annual assessment and report on vulnerability of facilities to 
                            terrorist attack

       ``Sec. 663. (a) The Secretary shall, on an annual basis, 
     conduct a comprehensive assessment of the vulnerability of 
     Department facilities to terrorist attack.
       ``(b) Not later than January 31 each year, the Secretary 
     shall submit to Congress a report on the assessment conducted 
     under subsection (a) during the preceding year. Each report 
     shall include the results of the assessment covered by such 
     report, together with such findings and recommendations as 
     the Secretary considers appropriate.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of that Act is amended by inserting after the item 
     relating to section 662 the following new item:

``Sec. 663. Annual assessment and report on vulnerability of facilities 
              to terrorist attack.''.

     SEC. 3155. DISPOSITION OF SURPLUS DEFENSE PLUTONIUM AT 
                   SAVANNAH RIVER SITE, AIKEN, SOUTH CAROLINA.

       (a) Consultation Required.--The Secretary of Energy shall 
     consult with the Governor of the State of South Carolina 
     regarding any decisions or plans of the Secretary related to 
     the disposition of surplus defense plutonium and defense 
     plutonium materials located at the Savannah River Site, 
     Aiken, South Carolina.
       (b) Notice Required.--For each shipment of defense 
     plutonium or defense plutonium materials to the Savannah 
     River Site, the Secretary shall, not less than 30 days before 
     the commencement of such shipment, submit to the 
     congressional defense committees a report providing notice of 
     such shipment.
       (c) Plan for Disposition.--The Secretary shall prepare a 
     plan for disposal of the surplus defense plutonium and 
     defense plutonium materials currently located at the Savannah 
     River Site and for disposal of defense plutonium and defense 
     plutonium materials to be shipped to the Savannah River Site 
     in the future. The plan shall include the following:
       (1) A review of each option considered for such disposal.
       (2) An identification of the preferred option for such 
     disposal.
       (3) With respect to the facilities for such disposal that 
     are required by the Department of Energy's Record of Decision 
     for the Storage and Disposition of Weapons-Usable Fissile 
     Materials Final Programmatic Environmental Impact Statement 
     dated January 14, 1997--
       (A) a statement of the cost of construction and operation 
     of such facilities;
       (B) a schedule for the expeditious construction of such 
     facilities, including milestones; and
       (C) a firm schedule for funding the cost of such 
     facilities.
       (4) A specification of the means by which all such defense 
     plutonium and defense plutonium

[[Page 25288]]

     materials will be removed in a timely manner from the 
     Savannah River Site for storage or disposal elsewhere.
       (d) Plan for Alternative Disposition.--If the Secretary 
     determines not to proceed at the Savannah River Site with 
     construction of the plutonium immobilization plant, or with 
     the mixed oxide fuel fabrication facility, the Secretary 
     shall prepare a plan that identifies a disposition path for 
     all defense plutonium and defense plutonium materials that 
     would otherwise have been disposed of at such plant or such 
     facility, as applicable.
       (e) Submission of Plans.--Not later than February 1, 2002, 
     the Secretary shall submit to Congress the plan required by 
     subsection (c) (and the plan prepared under subsection (d), 
     if applicable).
       (f) Limitation on Plutonium Shipments.--If the Secretary 
     does not submit to Congress the plan required by subsection 
     (c) (and the plan prepared under subsection (d), if 
     applicable) by February 1, 2002, the Secretary shall be 
     prohibited from shipping defense plutonium or defense 
     plutonium materials to the Savannah River Site during the 
     period beginning on February 1, 2002, and ending on the date 
     on which such plans are submitted to Congress.
       (g) Rule of Construction.--Nothing in this section may be 
     construed to prohibit or limit the Secretary from shipping 
     defense plutonium or defense plutonium materials to sites 
     other than the Savannah River Site during the period referred 
     to in subsection (f) or any other period.
       (h) Annual Report on Funding for Fissile Materials 
     Disposition Activities.--The Secretary shall include with the 
     budget justification materials submitted to Congress in 
     support of the Department of Energy budget for each fiscal 
     year (as submitted with the budget of the President under 
     section 1105(a) of title 31, United States Code) a report 
     setting forth the extent to which amounts requested for the 
     Department for such fiscal year for fissile materials 
     disposition activities will enable the Department to meet 
     commitments for the disposition of surplus defense plutonium 
     and defense plutonium materials located at the Savannah River 
     Site, and for any other fissile materials disposition 
     activities, in such fiscal year.

     SEC. 3156. MODIFICATION OF DATE OF REPORT OF PANEL TO ASSESS 
                   THE RELIABILITY, SAFETY, AND SECURITY OF THE 
                   UNITED STATES NUCLEAR STOCKPILE.

       Section 3159(d) of the Strom Thurmond National Defense 
     Authorization Act for Fiscal Year 1999 (Public Law 105-261; 
     42 U.S.C. 2121 note) is amended by striking ``of each year, 
     beginning with 1999,'' and inserting ``of 1999 and 2000, and 
     not later than February 1, 2002,''.
            Subtitle F--Rocky Flats National Wildlife Refuge

     SEC. 3171. SHORT TITLE.

       This subtitle may be cited as the ``Rocky Flats National 
     Wildlife Refuge Act of 2001''.

     SEC. 3172. FINDINGS AND PURPOSES.

       (a) Findings.--Congress finds the following:
       (1) The Federal Government, through the Atomic Energy 
     Commission, acquired the Rocky Flats site in 1951 and began 
     operations there in 1952. The site remains a Department of 
     Energy facility. Since 1992, the mission of the Rocky Flats 
     site has changed from the production of nuclear weapons 
     components to cleanup and closure in a manner that is safe, 
     environmentally and socially responsible, physically secure, 
     and cost-effective.
       (2) The majority of the Rocky Flats site has generally 
     remained undisturbed since its acquisition by the Federal 
     Government.
       (3) The State of Colorado is experiencing increasing growth 
     and development, especially in the metropolitan Denver Front 
     Range area in the vicinity of the Rocky Flats site. That 
     growth and development reduces the amount of open space and 
     thereby diminishes for many metropolitan Denver communities 
     the vistas of the striking Front Range mountain backdrop.
       (4) Some areas of the Rocky Flats site contain 
     contamination and will require further response action. The 
     national interest requires that the ongoing cleanup and 
     closure of the entire site be completed safely, effectively, 
     and without unnecessary delay and that the site thereafter be 
     retained by the United States and managed so as to preserve 
     the value of the site for open space and wildlife habitat.
       (5) The Rocky Flats site provides habitat for many wildlife 
     species, including a number of threatened and endangered 
     species, and is marked by the presence of rare xeric 
     tallgrass prairie plant communities. Establishing the site as 
     a unit of the National Wildlife Refuge System will promote 
     the preservation and enhancement of those resources for 
     present and future generations.
       (b) Purposes.--The purposes of this subtitle are--
       (1) to provide for the establishment of the Rocky Flats 
     site as a national wildlife refuge following cleanup and 
     closure of the site;
       (2) to create a process for public input on the management 
     of the refuge referred to in paragraph (1) before transfer of 
     administrative jurisdiction to the Secretary of the Interior; 
     and
       (3) to ensure that the Rocky Flats site is thoroughly and 
     completely cleaned up.

     SEC. 3173. DEFINITIONS.

       In this subtitle:
       (1) CERCLA.--The term ``CERCLA'' means the Comprehensive 
     Environmental Response, Compensation, and Liability Act of 
     1980 (42 U.S.C. 9601 et seq.).
       (2) Cleanup and closure.--The term ``cleanup and closure'' 
     means the response actions for covered substances carried out 
     at Rocky Flats, as required by any of the following:
       (A) The RFCA.
       (B) CERCLA.
       (C) RCRA.
       (D) The Colorado Hazardous Waste Act, 25-15-101 to 25-15-
     327, Colorado Revised Statutes.
       (3) Covered substance.--The term ``covered substance'' 
     means any of the following:
       (A) Any hazardous substance, as such term is defined in 
     paragraph (14) of section 101 of CERCLA (42 U.S.C. 9601).
       (B) Any pollutant or contaminant, as such term is defined 
     in paragraph (33) of such section 101.
       (C) Any petroleum, including crude oil or any fraction 
     thereof which is not otherwise specifically listed or 
     designated as a hazardous substance under subparagraphs (A) 
     through (F) of paragraph (14) of such section 101.
       (4) RCRA.--The term ``RCRA'' means the Solid Waste Disposal 
     Act (42 U.S.C. 6901 et seq.), popularly known as the Resource 
     Conservation and Recovery Act.
       (5) Refuge.--The term ``refuge'' means the Rocky Flats 
     National Wildlife Refuge established under section 3177.
       (6) Response action.--The term ``response action'' means 
     any of the following:
       (A) A response, as such term is defined in paragraph (25) 
     of section 101 of CERCLA (42 U.S.C. 9601).
       (B) A corrective action under RCRA or under the Colorado 
     Hazardous Waste Act, 25-15-101 to 25-15-327, Colorado Revised 
     Statutes.
       (C) Any requirement for institutional controls imposed by 
     any of the laws referred to in subparagraph (A) or (B).
       (7) RFCA.--The term ``RFCA'' means the Rocky Flats Cleanup 
     Agreement, an intergovernmental agreement, dated July 19, 
     1996, among--
       (A) the Department of Energy;
       (B) the Environmental Protection Agency; and
       (C) the Department of Public Health and Environment of the 
     State of Colorado.
       (8) Rocky flats.--
       (A) In general.--Except as provided in subparagraph (B), 
     the term ``Rocky Flats'' means the Rocky Flats Environmental 
     Technology Site, Colorado, a defense nuclear facility, as 
     depicted on the map titled ``Rocky Flats Environmental 
     Technology Site'', dated October 22, 2001, and available for 
     inspection in the appropriate offices of the United States 
     Fish and Wildlife Service.
       (B) Exclusions.--The term ``Rocky Flats'' does not 
     include--
       (i) the land and facilities of the Department of Energy's 
     National Renewable Energy Laboratory, including the acres 
     retained by the Secretary under section 3174(f); and
       (ii) any land and facilities not within the boundaries 
     depicted on the map referred to in subparagraph (A).
       (9) Secretary.--The term ``Secretary'' means the Secretary 
     of Energy.

     SEC. 3174. FUTURE OWNERSHIP AND MANAGEMENT.

       (a) Federal Ownership.--Except as expressly provided in 
     this subtitle, all right, title, and interest of the United 
     States, held on or acquired after the date of the enactment 
     of this Act, to land or interest therein, including minerals, 
     within the boundaries of Rocky Flats shall be retained by the 
     United States.
       (b) Lindsay Ranch.--The structures that comprise the former 
     Lindsay Ranch homestead site in the Rock Creek Reserve area 
     of the buffer zone, as depicted on the map referred to in 
     section 3173(8)(A), shall be permanently preserved and 
     maintained in accordance with the National Historic 
     Preservation Act (16 U.S.C. 470 et seq.).
       (c) Prohibition on Annexation.--Neither the Secretary nor 
     the Secretary of the Interior shall allow the annexation of 
     land within the refuge by any unit of local government.
       (d) Prohibition on Through Roads.--Except as provided in 
     subsection (e), no public road shall be constructed through 
     Rocky Flats.
       (e) Transportation Right-of-Way.--


       (1) In general.--
       (A) Availability of land.--On submission of an application 
     meeting each of the conditions specified in paragraph (2), 
     the Secretary, in consultation with the Secretary of the 
     Interior, shall make available land along the eastern 
     boundary of Rocky Flats for the sole purpose of 
     transportation improvements along Indiana Street.
       (B) Boundaries.--Land made available under this paragraph 
     may not extend more than 300 feet from the west edge of the 
     Indiana Street right-of-way, as that right-of-way exists as 
     of the date of the enactment of this Act.
       (C) Easement or sale.--Land may be made available under 
     this paragraph by easement or sale to one or more appropriate 
     entities.
       (D) Compliance with applicable law.--Any action under this 
     paragraph shall be taken in compliance with applicable law.
       (2) Conditions.--An application referred to in paragraph 
     (1) meets the conditions specified in this paragraph if the 
     application--
       (A) is submitted by any county, city, or other political 
     subdivision of the State of Colorado; and
       (B) includes documentation demonstrating that the 
     transportation improvements for which the land is to be made 
     available--
       (i) are carried out so as to minimize adverse effects on 
     the management of Rocky Flats as a wildlife refuge; and
       (ii) are included in the regional transportation plan of 
     the metropolitan planning organization

[[Page 25289]]

     designated for the Denver metropolitan area under section 
     5303 of title 49, United States Code.
       (f) Wind Technology Expansion Area.--The Secretary shall 
     retain, for the use of the National Renewable Energy 
     Laboratory, the approximately 25 acres identified on the map 
     referred to in section 3173(8)(A) as the ``Wind Technology 
     Expansion Area''.

     SEC. 3175. TRANSFER OF MANAGEMENT RESPONSIBILITIES AND 
                   JURISDICTION OVER ROCKY FLATS.

       (a) Transfer Required.--
       (1) In general.--Subject to the other provisions of this 
     section, the Secretary shall transfer administrative 
     jurisdiction over the property that is to comprise the refuge 
     to the Secretary of the Interior.
       (2) Date of transfer.--The transfer shall be carried out 
     not earlier than the completion certification date, and not 
     later than 30 business days after that date.
       (3) Completion certification date.--For purposes of 
     paragraph (2), the completion certification date is the date 
     on which the Administrator of the Environmental Protection 
     Agency certifies to the Secretary and to the Secretary of the 
     Interior that cleanup and closure at Rocky Flats has been 
     completed, except for the operation and maintenance 
     associated with response actions, and that all response 
     actions are operating properly and successfully.
       (b) Memorandum of Understanding.--
       (1) Required elements.--The transfer required by subsection 
     (a) shall be carried out pursuant to a memorandum of 
     understanding between the Secretary and the Secretary of the 
     Interior. The memorandum of understanding shall--
       (A) provide for the division of responsibilities between 
     the Secretary and the Secretary of the Interior necessary to 
     carry out such transfer;
       (B) address the impacts that any property rights referred 
     to in section 3179(a) may have on the management of the 
     refuge, and provide strategies for resolving or mitigating 
     these impacts;
       (C) identify the land the administrative jurisdiction of 
     which is to be transferred to the Secretary of the Interior; 
     and
       (D) specify the allocation of the Federal costs incurred at 
     the refuge after the date of such transfer for any site 
     investigations, response actions, and related activities for 
     covered substances.
       (2) Publication of draft.--Not later than one year after 
     the date of the enactment of this Act, the Secretary and the 
     Secretary of the Interior shall publish in the Federal 
     Register a draft of the memorandum of understanding.
       (3) Finalization and implementation.--
       (A) Not later than 18 months after the date of the 
     enactment of this Act, the Secretary and Secretary of the 
     Interior shall finalize and implement the memorandum of 
     understanding.
       (B) In finalizing the memorandum of understanding, the 
     Secretary and Secretary of the Interior shall specifically 
     identify the land the administrative jurisdiction of which is 
     to be transferred to the Secretary of the Interior and 
     provide for a determination of the exact acreage and legal 
     description of such land by a survey mutually satisfactory to 
     the Secretary and the Secretary of the Interior.
       (c) Transfer of Improvements.--The transfer required by 
     subsection (a) may include such buildings or other 
     improvements as the Secretary of the Interior has requested 
     in writing for purposes of managing the refuge.
       (d) Property Retained for Response Actions.--
       (1) In general.--The transfer required by subsection (a) 
     shall not include, and the Secretary shall retain 
     jurisdiction, authority, and control over, the following real 
     property and facilities at Rocky Flats:
       (A) Any engineered structure, including caps, barrier 
     walls, and monitoring or treatment wells, to be used in 
     carrying out a response action for covered substances.
       (B) Any real property or facility to be used for any other 
     purpose relating to a response action or any other action 
     that is required to be carried out by the Secretary at Rocky 
     Flats.
       (2) Consultation.--The Secretary shall consult with the 
     Secretary of the Interior, the Administrator of the 
     Environmental Protection Agency, and the Governor of the 
     State of Colorado on the identification of all real property 
     and facilities to be retained under this subsection.
       (e) Cost.--The transfer required by subsection (a) shall be 
     completed without cost to the Secretary of the Interior.
       (f) No Reduction in Funds.--The transfer required by 
     subsection (a), and the memorandum of understanding required 
     by subsection (b), shall not result in any reduction in funds 
     available to the Secretary for cleanup and closure of Rocky 
     Flats.

     SEC. 3176. ADMINISTRATION OF RETAINED PROPERTY; CONTINUATION 
                   OF CLEANUP AND CLOSURE.

       (a) Administration of Retained Property.--
       (1) In general.--In administering the property retained 
     under section 3175(d), the Secretary shall consult with the 
     Secretary of the Interior to minimize any conflict between--
       (A) the administration by the Secretary of such property 
     for a purpose relating to a response action; and
       (B) the administration by the Secretary of the Interior of 
     land the administrative jurisdiction of which is transferred 
     under section 3175(a).
       (2) Priority in case of conflict.--In the case of any such 
     conflict, the Secretary and the Secretary of the Interior 
     shall ensure that the administration for a purpose relating 
     to a response action, as described in paragraph (1)(A), shall 
     take priority.
       (3) Access.--The Secretary of the Interior shall provide to 
     the Secretary such access and cooperation with respect to the 
     refuge as the Secretary requires to carry out operation and 
     maintenance, future response actions, natural resources 
     restoration, or any other obligations.
       (b) Ongoing Cleanup and Closure.--
       (1) In general.--The Secretary shall carry out to 
     completion cleanup and closure at Rocky Flats.
       (2) Cleanup levels.--The Secretary shall carry out such 
     cleanup and closure to the levels established for soil, 
     water, and other media, following a thorough review by the 
     parties to the RFCA and the public (including the United 
     States Fish and Wildlife Service and other interested 
     government agencies) of the appropriateness of the interim 
     levels in the RFCA.
       (3) No restriction on use of new technologies.--Nothing in 
     this subtitle, and no action taken under this subtitle, 
     restricts the Secretary from using at Rocky Flats any new 
     technology that may become available for remediation of 
     contamination.
       (c) Opportunity to Comment.--The Secretary of the Interior 
     shall have the opportunity to comment with respect to any 
     proposed response action as to the impacts, if any, of such 
     proposed response action on the refuge.
       (d) Rules of Construction.--
       (1) No relief from obligations under other law.--Nothing in 
     this subtitle, and no action taken under this subtitle--
       (A) relieves the Secretary, the Administrator of the 
     Environmental Protection Agency, the Secretary of the 
     Interior, or any other person from any obligation or other 
     liability with respect to Rocky Flats under the RFCA or any 
     Federal or State law;
       (B) impairs or alters any provision of the RFCA; or
       (C) alters any authority of the Administrator of the 
     Environmental Protection Agency under section 120(e) of 
     CERCLA (42 U.S.C. 9620(e)), or any authority of the State of 
     Colorado.
       (2) Cleanup levels.--Nothing in this subtitle shall reduce 
     the level of cleanup and closure at Rocky Flats required 
     under the RFCA or any Federal or State law.
       (3) Payment of response action costs.--Nothing in this 
     subtitle affects the obligation of a Federal department or 
     agency that had or has operations at Rocky Flats resulting in 
     the release or threatened release of a covered substance to 
     pay the costs of response actions carried out to abate the 
     release of, or clean up, the covered substance.

     SEC. 3177. ROCKY FLATS NATIONAL WILDLIFE REFUGE.

       (a) In General.--On completion of the transfer required by 
     section 3175(a), and subject to section 3176(a), the 
     Secretary of the Interior shall commence administration of 
     the real property comprising the refuge in accordance with 
     this subtitle.
       (b) Establishment of Refuge.--Not later than 30 days after 
     the transfer required by section 3175(a), the Secretary of 
     the Interior shall establish at Rocky Flats a national 
     wildlife refuge to be known as the Rocky Flats National 
     Wildlife Refuge.
       (c) Composition.--The refuge shall be comprised of the 
     property the administrative jurisdiction of which was 
     transferred as required by section 3175(a).
       (d) Notice.--The Secretary of the Interior shall publish in 
     the Federal Register a notice of the establishment of the 
     refuge.
       (e) Administration and Purposes.--
       (1) In general.--The Secretary of the Interior shall manage 
     the refuge in accordance with applicable law, including this 
     subtitle, the National Wildlife Refuge System Administration 
     Act of 1966 (16 U.S.C. 668dd et seq.), and the purposes 
     specified in that Act.
       (2) Refuge purposes.--The refuge shall be managed for the 
     purposes of--
       (A) restoring and preserving native ecosystems;
       (B) providing habitat for, and population management of, 
     native plants and migratory and resident wildlife;
       (C) conserving threatened and endangered species (including 
     species that are candidates for listing under the Endangered 
     Species Act of 1973 (16 U.S.C. 1531 et seq.)); and
       (D) providing opportunities for compatible scientific 
     research.
       (3) Management.--In managing the refuge, the Secretary of 
     the Interior shall--
       (A) ensure that wildlife-dependent recreation and 
     environmental education and interpretation are the priority 
     public uses of the refuge; and
       (B) comply with all response actions.

     SEC. 3178. COMPREHENSIVE PLANNING PROCESS.

       (a) In General.--Not later than 180 days after the date of 
     the enactment of this Act, in developing a comprehensive 
     conservation plan for the refuge in accordance with section 
     4(e) of the National Wildlife Refuge System Administration 
     Act of 1966 (16 U.S.C. 668dd(e)), the Secretary of the 
     Interior shall establish a comprehensive planning process 
     that involves the public and local communities. The Secretary 
     of the Interior shall establish such process in consultation 
     with the Secretary, the members of the Coalition, the 
     Governor of the State of Colorado, and the Federal and State 
     of Colorado officials who have been designated as trustees 
     for Rocky Flats under section 107(f)(2) of CERCLA (42 U.S.C. 
     9607(f)(2)).

[[Page 25290]]

       (b) Other Participants.--In addition to the entities 
     specified in subsection (a), the comprehensive planning 
     process required by subsection (a) shall include the 
     opportunity for direct involvement of entities that are not 
     members of the Coalition as of the date of the enactment of 
     this Act, including the Rocky Flats Citizens' Advisory Board 
     and the cities of Thornton, Northglenn, Golden, Louisville, 
     and Lafayette, Colorado.
       (c) Dissolution of Coalition.--If the Coalition dissolves, 
     or if any Coalition member elects to leave the Coalition 
     during the comprehensive planning process required by 
     subsection (a)--
       (1) such comprehensive planning process shall continue; and
       (2) an opportunity shall be provided to each entity that is 
     a member of the Coalition as of September 1, 2000, for direct 
     involvement in such comprehensive planning process.
       (d) Contents.--In addition to the requirements of section 
     4(e) of the National Wildlife Refuge System Administration 
     Act of 1966 (16 U.S.C. 668dd(e)), the comprehensive 
     conservation plan referred to in subsection (a) shall address 
     and make recommendations on the following:
       (1) The identification of any land referred to in 
     subsection (e) of section 3174 that could be made available 
     under that subsection.
       (2) The characteristics and configuration of any perimeter 
     fencing that may be appropriate or compatible for cleanup and 
     closure purposes, refuge purposes, or other purposes.
       (3) The feasibility of locating, and the potential location 
     for, a visitor and education center at the refuge.
       (4) Any other issues relating to Rocky Flats.
       (e) Coalition Defined.--In this section, the term 
     ``Coalition'' means the Rocky Flats Coalition of Local 
     Governments established by the Intergovernmental Agreement, 
     dated February 16, 1999, among--
       (1) the city of Arvada, Colorado;
       (2) the city of Boulder, Colorado;
       (3) the city of Broomfield, Colorado;
       (4) the city of Westminster, Colorado;
       (5) the town of Superior, Colorado;
       (6) Boulder County, Colorado; and
       (7) Jefferson County, Colorado.
       (f) Report.--Not later than three years after the date of 
     the enactment of this Act, the Secretary of the Interior 
     shall submit to Congress--
       (1) the comprehensive conservation plan referred to in 
     subsection (a); and
       (2) a report that contains--
       (A) an outline of the involvement of the public and local 
     communities in the comprehensive planning process, as 
     required by subsection (a);
       (B) to the extent that any input or recommendation from the 
     comprehensive planning process is not accepted, a clear 
     statement of the reasons why such input or recommendation is 
     not accepted; and
       (C) a discussion of the impacts of any property rights 
     referred to in section 3179(a) on management of the refuge, 
     and an identification of strategies for resolving and 
     mitigating these impacts.

     SEC. 3179. PROPERTY RIGHTS.

       (a) In General.--Except as provided in subsections (c) and 
     (d), nothing in this subtitle limits any valid, existing 
     property right at Rocky Flats that is owned by any person or 
     entity, including, but not limited to--
       (1) any mineral right;
       (2) any water right or related easement; and
       (3) any facility or right-of-way for a utility.
       (b) Access.--Except as provided in subsection (c), nothing 
     in this subtitle affects any right of an owner of a property 
     right referred to in subsection (a) to access the owner's 
     property.
       (c) Reasonable Conditions.--
       (1) In general.--The Secretary or the Secretary of the 
     Interior may impose such reasonable conditions on access to 
     property rights referred to in subsection (a) as are 
     appropriate for the cleanup and closure of Rocky Flats and 
     for the management of the refuge.
       (2) No effect on other law.--Nothing in this subtitle 
     affects any Federal, State, or local law (including any 
     regulation) relating to the use, development, and management 
     of property rights referred to in subsection (a).
       (3) No effect on access rights.--Nothing in this subsection 
     precludes the exercise of any access right, in existence on 
     the date of the enactment of this Act, that is necessary to 
     perfect or maintain a water right in existence on that date.
       (d) Utility Extension.--
       (1) In general.--The Secretary or the Secretary of the 
     Interior may allow not more than one extension from an 
     existing utility right-of-way on Rocky Flats, if necessary.
       (2) Conditions.--An extension under paragraph (1) shall be 
     subject to the conditions specified in subsection (c).
       (e) Easement Surveys.--Subject to subsection (c), until the 
     date that is 180 days after the date of the enactment of this 
     Act, an entity that possesses a decreed water right or 
     prescriptive easement relating to land at Rocky Flats may 
     carry out such surveys at Rocky Flats as the entity 
     determines are necessary to perfect the right or easement.

     SEC. 3180. LIABILITIES AND OTHER OBLIGATIONS.

       (a) In General.--Nothing in this subtitle shall relieve, 
     and no action may be taken under this subtitle to relieve, 
     the Secretary, the Secretary of the Interior, or any other 
     person from any liability or other obligation at Rocky Flats 
     under CERCLA, RCRA, or any other Federal or State law.
       (b) Cost Recovery, Contribution, and Other Action.--Nothing 
     in this subtitle is intended to prevent the United States 
     from bringing a cost recovery, contribution, or other action 
     that would otherwise be available under Federal or State law.

     SEC. 3181. ROCKY FLATS MUSEUM.

       (a) Museum.--To commemorate the contribution that Rocky 
     Flats and its worker force provided to winning the Cold War 
     and the impact that such contribution has had on the nearby 
     communities and the State of Colorado, the Secretary may 
     establish a Rocky Flats Museum.
       (b) Location.--The Rocky Flats Museum shall be located in 
     the city of Arvada, Colorado, unless, after consultation 
     under subsection (c), the Secretary determines otherwise.
       (c) Consultation.--The Secretary shall consult with the 
     city of Arvada, other local communities, and the Colorado 
     State Historical Society on--
       (1) the development of the museum;
       (2) the siting of the museum; and
       (3) any other issues relating to the development and 
     construction of the museum.
       (d) Report.--Not later than three years after the date of 
     the enactment of this Act, the Secretary, in coordination 
     with the city of Arvada, shall submit to Congress a report on 
     the costs associated with the construction of the museum and 
     any other issues relating to the development and construction 
     of the museum.

     SEC. 3182. ANNUAL REPORT ON FUNDING.

       For each of fiscal years 2003 through 2007, at the time of 
     submission of the budget of the President under section 
     1105(a) of title 31, United States Code, for such fiscal 
     year, the Secretary and the Secretary of the Interior shall 
     jointly submit to Congress a report on the costs of 
     implementation of this subtitle. The report shall include--
       (1) the costs incurred by each Secretary in implementing 
     this subtitle during the preceding fiscal year; and
       (2) the funds required by each Secretary to implement this 
     subtitle during the current and subsequent fiscal years.
          TITLE XXXII--DEFENSE NUCLEAR FACILITIES SAFETY BOARD
Sec. 3201. Authorization.

     SEC. 3201. AUTHORIZATION.

       There are authorized to be appropriated for fiscal year 
     2002, $18,500,000 for the operation of the Defense Nuclear 
     Facilities Safety Board under chapter 21 of the Atomic Energy 
     Act of 1954 (42 U.S.C. 2286 et seq.).
                TITLE XXXIII--NATIONAL DEFENSE STOCKPILE
Sec. 3301. Definitions.
Sec. 3302. Authorized uses of stockpile funds.
Sec. 3303. Authority to dispose of certain materials in National 
              Defense Stockpile.
Sec. 3304. Revision of limitations on required disposals of certain 
              materials in National Defense Stockpile.
Sec. 3305. Acceleration of required disposal of cobalt in National 
              Defense Stockpile.
Sec. 3306. Restriction on disposal of manganese ferro.

     SEC. 3301. DEFINITIONS.

       In this title:
       (1) The term ``National Defense Stockpile'' means the 
     stockpile provided for in section 4 of the Strategic and 
     Critical Materials Stock Piling Act (50 U.S.C. 98c).
       (2) The term ``National Defense Stockpile Transaction 
     Fund'' means the fund established under section 9(a) of the 
     Strategic and Critical Materials Stock Piling Act (50 U.S.C. 
     98h(a)).
       (3) The term ``Market Impact Committee'' means the Market 
     Impact Committee appointed under section 10(c) of the 
     Strategic and Critical Materials Stock Piling Act (50 U.S.C. 
     98h-1(c)).

     SEC. 3302. AUTHORIZED USES OF STOCKPILE FUNDS.

       (a) Obligation of Stockpile Funds.--During fiscal year 
     2002, the National Defense Stockpile Manager may obligate up 
     to $65,200,000 of the funds in the National Defense Stockpile 
     Transaction Fund for the authorized uses of such funds under 
     section 9(b)(2) of the Strategic and Critical Materials Stock 
     Piling Act (50 U.S.C. 98h(b)(2)), including the disposal of 
     hazardous materials that are environmentally sensitive.
       (b) Additional Obligations.--The National Defense Stockpile 
     Manager may obligate amounts in excess of the amount 
     specified in subsection (a) if the National Defense Stockpile 
     Manager notifies Congress that extraordinary or emergency 
     conditions necessitate the additional obligations. The 
     National Defense Stockpile Manager may make the additional 
     obligations described in the notification after the end of 
     the 45-day period beginning on the date on which Congress 
     receives the notification.
       (c) Limitations.--The authorities provided by this section 
     shall be subject to such limitations as may be provided in 
     appropriations Acts.

     SEC. 3303. AUTHORITY TO DISPOSE OF CERTAIN MATERIALS IN 
                   NATIONAL DEFENSE STOCKPILE.

       (a) Disposal Authorized.--Subject to the conditions 
     specified in subsection (b), the President may dispose of 
     obsolete and excess materials contained in the National 
     Defense Stockpile. The materials subject to disposal under 
     this subsection and the quantity of each material authorized 
     to be disposed of by the President are set forth in the 
     following table:


                     Authorized Stockpile Disposals
------------------------------------------------------------------------
   Material for disposal                              Quantity
------------------------------------------------------------------------
Bauxite...................................  40,000 short tons

[[Page 25291]]

 
Chromium Metal............................  3,512 short tons
Iridium...................................  25,140 troy ounces
Jewel Bearings............................  30,273,221 pieces
Manganese Ferro HC........................  209,074 short tons
Palladium.................................  11 troy ounces
Quartz Crystal............................  216,648 pounds
Tantalum Metal Ingot......................  120,228 pounds contained
Tantalum Metal Powder.....................  36,020 pounds contained
Thorium Nitrate...........................  600,000 pounds.
------------------------------------------------------------------------

       (b) Minimization of Disruption and Loss.--The President may 
     not dispose of materials under subsection (a) to the extent 
     that the disposal will result in--
       (1) undue disruption of the usual markets of producers, 
     processors, and consumers of the materials proposed for 
     disposal; or
       (2) avoidable loss to the United States.
       (c) Relationship to Other Disposal Authority.--The disposal 
     authority provided in subsection (a) is new disposal 
     authority and is in addition to, and shall not affect, any 
     other disposal authority provided by law regarding the 
     materials specified in such subsection.

     SEC. 3304. REVISION OF LIMITATIONS ON REQUIRED DISPOSALS OF 
                   CERTAIN MATERIALS IN NATIONAL DEFENSE 
                   STOCKPILE.

       (a) Public Law 105-261.--Section 3303 of the Strom Thurmond 
     National Defense Authorization Act for Fiscal Year 1999 
     (Public Law 105-261; 50 U.S.C. 98d note) is amended--
       (1) in subsection (a)--
       (A), by striking ``the amount of--'' and inserting ``total 
     amounts not less than--'';
       (B) by striking ``and'' at the end of paragraph (3); and
       (C) by striking paragraph (4) and inserting the following 
     new paragraphs:
       ``(4) $760,000,000 by the end of fiscal year 2005; and
       ``(5) $770,000,000 by the end of fiscal year 2011.''; and
       (2) in subsection (b)(2), by striking ``receipts in the 
     amounts specified in subsection (a)'' and inserting 
     ``receipts in the total amount specified in subsection 
     (a)(5)''.
       (b) Public Law 105-85.--Section 3305 of the National 
     Defense Authorization Act for Fiscal Year 1998 (Public Law 
     105-85; 50 U.S.C. 98d note) is amended--
       (1) in subsection (a), by striking ``amounts equal to--'' 
     and inserting ``total amounts not less than--''; and
       (2) in subsection (b), by striking paragraph (2) and 
     inserting the following new paragraph:
       ``(2) The President may not dispose of cobalt under this 
     section in fiscal year 2006 in excess of the disposals 
     necessary to result in receipts during that fiscal year in 
     the total amount specified in subsection (a)(5).''.
       (c) Public Law 104-201.--Section 3303 of the National 
     Defense Authorization Act for Fiscal Year 1997 (Public Law 
     104-201; 50 U.S.C. 98d note) is amended--
       (1) in subsection (a), by striking ``amounts equal to--'' 
     and inserting ``total amounts not less than--''; and
       (2) in subsection (b), by striking paragraph (2) and 
     inserting the following new paragraph:
       ``(2) The President may not dispose of materials under this 
     section during the 10-fiscal year period referred to in 
     subsection (a)(2) in excess of the disposals necessary to 
     result in receipts during that period in the total amount 
     specified in such subsection.''.

     SEC. 3305. ACCELERATION OF REQUIRED DISPOSAL OF COBALT IN 
                   NATIONAL DEFENSE STOCKPILE.

       Section 3305(a) of the National Defense Authorization Act 
     for Fiscal Year 1998 (Public Law 105-85; 50 U.S.C. 98d note), 
     as amended by section 3304(b) of this Act, is amended--
       (1) in paragraph (1), by striking ``2003'' and inserting 
     ``2002'';
       (2) in paragraph (2), by striking ``2004'' and inserting 
     ``2003'';
       (3) in paragraph (3), by striking ``2005'' and inserting 
     ``2004'';
       (4) in paragraph (4), by striking ``2006'' and inserting 
     ``2005''; and
       (5) in paragraph (5), by striking ``2007'' and inserting 
     ``2006''.

     SEC. 3306. RESTRICTION ON DISPOSAL OF MANGANESE FERRO.

       (a) Temporary Quantity Restrictions.--During fiscal years 
     2002 through 2005, the disposal of manganese ferro in the 
     National Defense Stockpile may not exceed the following 
     quantities:
       (1) During fiscal year 2002, 25,000 short tons of all 
     grades of manganese ferro.
       (2) During fiscal year 2003, 25,000 short tons of high 
     carbon manganese ferro of the highest grade.
       (3) During each of the fiscal years 2004 and 2005, 50,000 
     short tons of high carbon manganese ferro of the highest 
     grade.
       (b) Conforming Amendment.--Section 3304 of the National 
     Defense Authorization Act for Fiscal Year 1996 (Public Law 
     104-106; 110 Stat. 629) is repealed.
                 TITLE XXXIV--NAVAL PETROLEUM RESERVES
Sec. 3401. Authorization of appropriations.

     SEC. 3401. AUTHORIZATION OF APPROPRIATIONS.

       (a) Amount.--There are hereby authorized to be appropriated 
     to the Secretary of Energy $17,371,000 for fiscal year 2002 
     for the purpose of carrying out activities under chapter 641 
     of title 10, United States Code, relating to the naval 
     petroleum reserves.
       (b) Period of Availability.--Funds appropriated pursuant to 
     the authorization of appropriations in subsection (a) shall 
     remain available until expended.
                  TITLE XXXV--MARITIME ADMINISTRATION
Sec. 3501. Authorization of appropriations for fiscal year 2002.
Sec. 3502. Define ``war risks'' to vessels to include confiscation, 
              expropriation, nationalization, and deprivation of the 
              vessels.
Sec. 3503. Holding obligor's cash as collateral under title XI of 
              Merchant Marine Act, 1936.

     SEC. 3501. AUTHORIZATION OF APPROPRIATIONS FOR FISCAL YEAR 
                   2002.

       Funds are hereby authorized to be appropriated for fiscal 
     year 2002, to be available without fiscal year limitation if 
     so provided in appropriations Acts, for the use of the 
     Department of Transportation for the Maritime Administration 
     as follows:
       (1) For expenses necessary for operations and training 
     activities, $89,054,000.
       (2) For expenses under the loan guarantee program 
     authorized by title XI of the Merchant Marine Act, 1936 (46 
     App. U.S.C. 1271 et seq.), $103,978,000, of which--
       (A) $100,000,000 is for the cost (as defined in section 
     502(5) of the Federal Credit Reform Act of 1990 (2 U.S.C. 
     661a(5))) of loan guarantees under the program; and
       (B) $3,978,000 is for administrative expenses related to 
     loan guarantee commitments under the program.
       (3) For expenses to dispose of obsolete vessels in the 
     National Defense Reserve Fleet, $10,000,000.

     SEC. 3502. DEFINE ``WAR RISKS'' TO VESSELS TO INCLUDE 
                   CONFISCATION, EXPROPRIATION, NATIONALIZATION, 
                   AND DEPRIVATION OF THE VESSELS.

       Section 1201(c) of the Merchant Marine Act, 1936 (46 App. 
     U.S.C. 1281(c)) is amended to read as follows:
       ``(c) The term `war risks' includes to such extent as the 
     Secretary may determine--
       ``(1) all or any part of any loss that is excluded from 
     marine insurance coverage under a `free of capture or 
     seizure' clause, or under analogous clauses; and
       ``(2) other losses from hostile acts, including 
     confiscation, expropriation, nationalization, or 
     deprivation.''.

     SEC. 3503. HOLDING OBLIGOR'S CASH AS COLLATERAL UNDER TITLE 
                   XI OF MERCHANT MARINE ACT, 1936.

       Title XI of the Merchant Marine Act, 1936 (46 App. U.S.C. 
     1271 et seq.) is amended by inserting after section 1108 the 
     following:

     ``SEC. 1109. DEPOSIT FUND.

       ``(a) Establishment of Deposit Fund.--There is established 
     in the Treasury a deposit fund for purposes of this section. 
     The Secretary may, in accordance with an agreement under 
     subsection (b), deposit into and hold in the deposit fund 
     cash belonging to an obligor to serve as collateral for a 
     guarantee under this title made with respect to the obligor.
       ``(b) Agreement.--
       ``(1) In general.--The Secretary and an obligor shall enter 
     into a reserve fund or other collateral account agreement to 
     govern the deposit, withdrawal, retention, use, and 
     reinvestment of cash of the obligor held in the deposit fund 
     established by subsection (a).
       ``(2) Terms.--The agreement shall contain such terms and 
     conditions as are required under this section and such 
     additional terms as are considered by the Secretary to be 
     necessary to protect fully the interests of the United 
     States.
       ``(3) Security interest of united states.--The agreement 
     shall include terms that grant to the United States a 
     security interest in all amounts deposited into the deposit 
     fund.
       ``(c) Investment.--The Secretary may invest and reinvest 
     any part of the amounts in the deposit fund established by 
     subsection (a) in obligations of the United States with such 
     maturities as ensure that amounts in the deposit fund will be 
     available as required for purposes of agreements under 
     subsection (b). Cash balances of the deposit fund in excess 
     of current requirements shall be maintained in a form of 
     uninvested funds and the Secretary of the Treasury shall pay 
     interest on these funds.
       ``(d) Withdrawals.--
       ``(1) In general.--The cash deposited into the deposit fund 
     established by subsection (a) may not be withdrawn without 
     the consent of the Secretary.
       ``(2) Use of income.--Subject to paragraph (3), the 
     Secretary may pay any income earned on cash of an obligor 
     deposited into the deposit fund in accordance with the terms 
     of the agreement with the obligor under subsection (b).
       ``(3) Retention against default.--The Secretary may retain 
     and offset any or all of the cash of an obligor in the 
     deposit fund, and any income realized thereon, as part of the 
     Secretary's recovery against the obligor in case of a default 
     by the obligor on an obligation.''.
       And the House agree to the same.
     From the Committee on Armed Services, for consideration of 
     the Senate Bill and the House amendment, and modifications 
     committed to conference:
     Bob Stump,
     Duncan Hunter,
     James V. Hansen,
     Curt Weldon,
     Jim Saxton,
     John M. McHugh,
     Terry Everett,
     Roscoe G. Bartlett,
     Howard ``Buck'' McKeon,
     J.C. Watts, Jr.,
     Mac Thornberry,
     Saxby Chambliss,

[[Page 25292]]

     Ike Skelton,
     Solomon P. Ortiz,
     Lane Evans,
     Neil Abercrombie,
     Martin T. Meehan,
     Robert A. Underwood,
     Thomas Allen,
     Vic Snyder,
     From the Committee on Education and the Workforce, for 
     consideration of secs. 304, 305, 1123, 3151, and 3157 of the 
     Senate bill, and secs. 341, 342, 509, and 584 of the House 
     amendment, and modifications committed to conference:
     Michael N. Castle,
     Johnny Isakson,
     George Miller,
     From the Committee on Government Reform, for consideration of 
     secs. 564, 622, 803, 813, 901, 1044, 1047, 1051, 1065, 1075, 
     1102, 1111-1113, 1124-1126, 2832, 3141, 3144, and 3153 of the 
     Senate bill, and secs. 333, 519, 588, 802, 803, 811-819, 
     1101, 1103-1108, 1110, and 3132 of the House amendment, and 
     modifications committed to conference:
     Dan Burton,
     Dave Weldon,
     Henry A. Waxman,
     Provided that Mr. Tom Davis of Virginia is appointed in lieu 
     of Mr. Weldon of Florida for consideration of secs. 803 and 
     2832 of the Senate bill, and secs. 333 and 803 of the House 
     amendment, and modifications committed to conference:
     Tom Davis,
     Provided that Mr. Horn is appointed in lieu of Mr. Weldon of 
     Florida for consideration of secs. 811-819 of the House 
     amendment, and modifications committed to conference:
     Stephen Horn,
     From the Committee on House Administration, for consideration 
     of secs. 572, 574-577, and 579 of the Senate bill, and sec. 
     552 of the House amendment, and modifications committed to 
     conference:
     Robert W. Ney,
     John L. Mica,
     From the Committee on International Relations, for 
     consideration of secs. 331, 333, 1201-1205, and 1211-1218 of 
     the Senate bill, and secs. 1011, 1201, 1202, 1205, and 1209, 
     title XIII, and sec. 3133 of the House amendment, and 
     modifications committed to conference:
     Henry Hyde,
     Ben Gilman,
     Tom Lantos,
     From the Committee on the Judiciary, for consideration of 
     secs. 821, 1066, and 3151 of the Senate bill, and secs. 323 
     and 818 of the House amendment, and modifications committed 
     to conference:
     F. James Sensenbrenner, Jr.,
     Lamar Smith,
     From the Committee on Resources, for consideration of secs. 
     601, 663, 2823, and 3171-3181 of the Senate bill, and secs. 
     601, 1042, 2841, 2845, 2861-2863, and 2865 and title XXIX of 
     the House amendment, and modifications committed to 
     conference:
     Jim Gibbons,
     George Radanovich,
     Provided that Mr. Udall of Colorado is appointed in lieu of 
     Mr. Rahall for consideration of secs. 3171-3181 of the Senate 
     bill, and modifications committed to conference:
     Mark Udall,
     From the Committee on Science, for consideration of secs. 
     1071 and 1124 of the Senate bill, and modifications committed 
     to conference:
     Sherwood Boehlert,
     Nick Smith,
     Ralph M. Hall,
     Provided that Mr. Ehlers is appointed in lieu of Mr. Smith of 
     Michigan for consideration of sec. 1124 of the Senate bill, 
     and modifications committed to conference:
     Vernon J. Ehlers,
     From the Committee on Small Business, for consideration of 
     secs. 822-824 and 1068 of the Senate bill, and modifications 
     committed to conference:
     Donald A. Manzulo,
     Larry Combest,
     From the Committee on Transportation and Infrastructure, for 
     consideration of secs. 563, 601, and 1076 of the Senate bill, 
     and secs. 543, 544, 601, 1049, and 1053 of the House 
     amendment, and modifications committed to conference:
     Don Young,
     Frank A. LoBiondo,
     Corrine Brown,
     Provided that Mr. Pascrell is appointed in lieu of Ms. Brown 
     of Florida for consideration of sec. 1049 of the House 
     amendment, and modifications committed to conference:
     Bill Pascrell, Jr.,
     From the Committee on Veterans' Affairs, for consideration of 
     secs. 538, 539, 573, 651, 717, and 1064 of the Senate bill, 
     and sec. 641 of the House amendment, and modifications 
     committed to conference:
     Christopher H. Smith,
       (except sec. 641 of House amendment and secs. 539 and 651 
     of Senate bill),
     Mike Bilirakis,
                                Managers on the Part of the House.

     Carl Levin,
     Ted Kennedy,
     Joseph Lieberman,
     Max Cleland,
     Mary Landrieu,
     Jack Reed,
     Daniel K. Akaka,
     Bill Nelson,
     Ben Nelson,
     Jean Carnahan,
     Mark Dayton,
     Jeff Bingaman,
     John Warner,
     Strom Thurmond,
     Bob Smith,
     Jim Inhofe,
     Rick Santorum,
     Pat Roberts,
     Wayne Allard
     Tim Hutchinson,
     Jeff Sessions,
     Susan Collins,
     Jim Bunning,
                               Managers on the Part of the Senate.

       JOINT EXPLANATORY STATEMENT OF THE COMMITTEE OF CONFERENCE

       The managers on the part of the House and the Senate at the 
     conference on the disagreeing votes of the two Houses on the 
     amendment of the House to the bill (S. 1438), to authorize 
     appropriations for fiscal year 2002 for military activities 
     of the Department of Defense, for military construction, and 
     for defense activities of the Department of Energy, to 
     prescribe personnel strengths for such fiscal year for the 
     Armed Forces, and for other purposes, submit the following 
     joint statement to the House and the Senate in explanation of 
     the effect of the action agreed upon by the managers and 
     recommended in the accompanying conference report:
       The House amendment struck all of the Senate bill after the 
     enacting clause and inserted a substitute text.
       The Senate recedes from its disagreement to the amendment 
     of the House with an amendment that is a substitute for the 
     Senate bill and the House amendment. The differences between 
     the Senate bill, the House amendment, and the substitute 
     agreed to in conference are noted below, except for clerical 
     corrections, conforming changes made necessary by agreements 
     reached by the conferees, and minor drafting and clerical 
     changes.

                 Summary Statement of Conference Action

       The conferees recommend authorization of appropriations for 
     fiscal year 2002 for the Department of Defense for 
     procurement; research and development; test and evaluation; 
     operation and maintenance; working capital funds; military 
     construction and family housing; and for weapons and 
     environmental restoration programs of the Department of 
     Energy, that have a budget authority implication of $343.3 
     billion for the national defense function.

                    Summary Table of Authorizations

       The defense authorization act provides authorizations for 
     appropriations but does not generally provide budget 
     authority. Budget authority is provided in appropriations 
     acts.
       In order to relate the conference recommendations to the 
     Budget Resolution, matters in addition to the dollar 
     authorizations contained in this bill must be taken into 
     account. A number of programs in the national defense 
     function are authorized permanently or, in certain instances, 
     authorized in other annual legislation.
       The following table summarizes authorizations included in 
     the bill for fiscal year 2002 and, in addition, summarizes 
     the implications of the conference action for the budget 
     authority totals for national defense (budget function 050).

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                    Congressional Defense Committees

       The term ``congressional defense committees'' is often used 
     in this statement of managers. It means the Defense 
     Authorization and Appropriations Committees of the Senate and 
     the House of Representatives.

                           Committee Reports

       The Senate bill contained a provision (sec. 4) regarding 
     the applicability of the report of the Committee on Armed 
     Services of the Senate to accompany S. 1416 to this bill.
       The House amendment contained no similar provision.
       The Senate recedes. The conferees agree that the report of 
     the Committee on Armed Services of the Senate to accompany S. 
     1416 (Senate Report 107-62) shall apply to this Act to the 
     same extent, and in the same manner, as the report of the 
     Committee on Armed Services of the House of Representatives 
     to accompany H.R. 2586 (House Report 107-194).

            DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATIONS

                          Title I--Procurement

     Procurement overview
       The budget request for fiscal year 2002 included an 
     authorization of $61,813.6 million for Procurement for the 
     Department of Defense.
       The Senate bill would authorize $62,532.7 million.
       The House amendment would authorize $62,312.8 million.
       The conferees recommended an authorization of $62,477.7 
     million. Unless noted explicitly in the statement of 
     managers, all changes are made without prejudice.

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     Management reform initiatives
       The conferees agree to reduce procurement accounts by $90.0 
     million to reflect savings from management reform 
     initiatives, as discussed in Title VIII.
     Aircraft Procurement, Army--Overview
       The budget request for fiscal year 2002 included an 
     authorization of $1,925.5 million for Aircraft Procurement, 
     Army in the Department of Defense.
       The Senate bill would authorize $2,123.4 million.
       The House amendment would authorize $1,987.5 million.
       The conferees recommended an authorization of $2,075.4 
     million. Unless noted explicitly in the statement of 
     managers, all changes are made without prejudice.

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     Missile Procurement, Army--Overview
       The budget request for fiscal year 2002 included an 
     authorization of $1,859.6 million for Missile Procurement, 
     Army in the Department of Defense.
       The Senate bill would authorize $1,807.4 million.
       The House amendment would authorize $1,097.3 million.
       The conferees recommended an authorization of $1,087.0 
     million. Unless noted explicitly in the statement of 
     managers, all changes are made without prejudice.

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     Procurement of Weapons and Tracked Combat Vehicles, Army--
         Overview
       The budget request for fiscal year 2002 included an 
     authorization of $2,276.7 million for Procurement of Weapons 
     and Tracked Combat Vehicles, Army in the Department of 
     Defense.
       The Senate bill would authorize $2,276.7 million.
       The House amendment would authorize $2,367.0 million.
       The conferees recommended an authorization of $2,348.1 
     million. Unless noted explicitly in the statement of 
     managers, all changes are made without prejudice.

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     Procurement of Ammunition, Army--Overview
       The budget request for fiscal year 2002 included an 
     authorization of $1,193.4 million for Procurement of 
     Ammunition, Army in the Department of Defense.
       The Senate bill would authorize $1,187.6 million.
       The House amendment would authorize $1,208.6 million.
       The conferees recommended an authorization of $1,187.2 
     million. Unless noted explicitly in the statement of 
     managers, all changes are made without prejudice.

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     Other Procurement, Army--Overview
       The budget request for fiscal year 2002 included an 
     authorization of $3,961.7 million for Other Procurement, Army 
     in the Department of Defense.
       The Senate bill would authorize $4,024.5 million.
       The House amendment would authorize $4,144.0 million.
       The conferees recommended an authorization of $4,044.1 
     million. Unless noted explicitly in the statement of 
     managers, all changes are made without prejudice.

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     Chemical Agents and Munitions Destruction, Army--Overview
       The budget request for fiscal year 2002 included an 
     authorization of $1,153.6 million for Chemical Agents & 
     Munitions Destruction, Army in the Department of Defense.
       The Senate bill would authorize $1,153.6 million for 
     Chemical Agents & Munitions Destruction, Defense.
       The House amendment would authorize $1,078.6 million for 
     Chemical Agents & Munitions Destruction, Defense.
       The conferees recommended an authorization of $1,153.6 
     million for Chemical Agents & Munitions Destruction, Defense. 
     Unless noted explicitly in the statement of managers, all 
     changes are made without prejudice.

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     Aircraft Procurement, Navy--Overview
       The budget request for fiscal year 2002 included an 
     authorization of $8,252.5 million for Aircraft Procurement, 
     Navy in the Department of Defense.
       The Senate bill would authorize $8,169.0 million.
       The House amendment would authorize $8,337.2 million.
       The conferees recommended an authorization of $8,323.1 
     million. Unless noted explicitly in the statement of 
     managers, all changes are made without prejudice.

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     Weapons Procurement, Navy--Overview
       The budget request for fiscal year 2002 included an 
     authorization of $1,433.5 million for Weapons Procurement, 
     Navy in the Department of Defense.
       The Senate bill would authorize $1,503.5 million.
       The House amendment would authorize $1,476.7 million.
       The conferees recommended an authorization of $1,484.3 
     million. Unless noted explicitly in the statement of 
     managers, all changes are made without prejudice.

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     Procurement of Ammunition, Navy and Marine Corps--Overview
       The budget request for fiscal year 2002 included an 
     authorization of $457.1 million for Procurement of 
     Ammunition, Navy and Marine Corps in the Department of 
     Defense.
       The Senate bill would authorize $476.1 million.
       The House amendment would authorize $463.6 million.
       The conferees recommended an authorization of $466.9 
     million. Unless noted explicitly in the statement of 
     managers, all changes are made without prejudice.

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     Shipbuilding and Conversion, Navy--Overview
       The budget request for fiscal year 2002 included an 
     authorization of $9,344.1 million for Shipbuilding and 
     Conversion, Navy in the Department of Defense.
       The Senate bill would authorize $9,522.1 million.
       The House amendment would authorize $9,378.2 million.
       The conferees recommended an authorization of $9,371.0 
     million. Unless noted explicitly in the statement of 
     managers, all changes are made without prejudice.

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     Other Procurement, Navy--Overview
       The budget request for fiscal year 2002 included an 
     authorization of $4,097.6 million for Other Procurement, Navy 
     in the Department of Defense.
       The Senate bill would authorize $4,293.5 million.
       The House amendment would authorize $4,157.3 million.
       The conferees recommended an authorization of $4,282.5 
     million. Unless noted explicitly in the statement of 
     managers, all changes are made without prejudice.

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     Procurement, Marine Corps--Overview
       The budget request for fiscal year 2002 included an 
     authorization of $981.7 million for Procurement, Marine Corps 
     in the Department of Defense.
       The Senate bill would authorize $981.7 million.
       The House amendment would authorize $1,025.6 million.
       The conferees recommended an authorization of $1,014.6 
     million. Unless noted explicitly in the statement of 
     managers, all changes are made without prejudice.

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     Aircraft Procurement, Air Force--Overview
       The budget request for fiscal year 2002 included an 
     authorization of $10,744.5 million for Aircraft Procurement, 
     Air Force in the Department of Defense.
       The Senate bill would authorize $10,893.0 million.
       The House amendment would authorize $10,705.7 million.
       The conferees recommended an authorization of $10,789.2 
     million. Unless noted explicitly in the statement of 
     managers, all changes are made without prejudice.

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     High altitude endurance unmanned aerial vehicle
       The budget request included $33.5 million for advanced 
     procurement of additional Global Hawk high altitude endurance 
     unmanned aerial vehicles (HAE-UAVs).
       The Senate bill and the House amendment would authorize the 
     budget request.
       The House Intelligence Authorization for Fiscal Year 2002 
     (H.R. 2883) would not authorize any of the requested funds.
       The conferees agree to authorize the budget request.
       The conferees are aware that much has been evolving in the 
     Global Hawk HAE-UAV program in recent months. At the time of 
     the budget request, the plan for these funds was to procure 
     HAE-UAVs in the less capable Block 5 configuration, which 
     contributed to the House recommendation. The accelerated 
     program that is now underway would make these funds available 
     for advanced procurement of the Block 10 configuration, which 
     will provide the electrical power, cooling, and interfaces 
     for sensor packages, which should meet the evolving Global 
     Hawk requirement. These changes have addressed some of the 
     concerns expressed in the House report (H. Rept. 107-219).
       Another concern shared by the conferees is the fact that 
     the requirements for this system are evolving at the very 
     time that the program is being accelerated. The conferees 
     would expect requirements documentation with completed 
     mission area annexes to be the basis for future program 
     decisions. The conferees want to ensure that existing 
     intelligence, surveillance, and reconnaissance (ISR) assets, 
     such as the U-2, continue to be operated and upgraded as 
     necessary until such time that any new systems, like the 
     Global Hawk HAE-UAV and its sensors, are fully tested and 
     integrated with the required ground architecture and satisfy 
     the operational mission requirements.
       Finally, the conferees expect, before these advanced 
     procurement funds are released, that the milestone decision 
     authority approve this production in an acquisition decision 
     memorandum that approves a coordinated and integrated 
     acquisition strategy, taking into account the requirement, 
     platform and sensor integration, ground architecture plan, 
     and test plan for this spiral of the program.
     Missile Procurement, Air Force--Overview
       The budget request for fiscal year 2002 included an 
     authorization of $3,233.5 million for Missile Procurement, 
     Air Force in the Department of Defense.
       The Senate bill would authorize $3,286.1 million.
       The House amendment would authorize $3,226.3 million.
       The conferees recommended an authorization of $3,222.6 
     million. Unless noted explicitly in the statement of 
     managers, all changes are made without prejudice.

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     Procurement of Ammunition, Air Force--Overview
       The budget request for fiscal year 2002 included an 
     authorization of $865.3 million for Procurement of 
     Ammunition, Air Force in the Department of Defense.
       The Senate bill would authorize $885.3 million.
       The House amendment would authorize $871.3 million.
       The conferees recommended an authorization of $881.8 
     million. Unless noted explicitly in the statement of 
     managers, all changes are made without prejudice.

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     Other Procurement, Air Force--Overview
       The budget request for fiscal year 2002 included an 
     authorization of $8,159.5 million for Other Procurement, Air 
     Force in the Department of Defense.
       The Senate bill would authorize $8,081.7 million.
       The House amendment would authorize $8,250.8 million.
       The conferees recommended an authorization of $8,196.0 
     million. Unless noted explicitly in the statement of 
     managers, all changes are made without prejudice.

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     Procurement, Defense-Wide--Overview
       The budget request for fiscal year 2002 included an 
     authorization of $1,603.9 million for Procurement, Defense-
     Wide in the Department of Defense.
       The Senate bill would authorize $1,596.7 million.
       The House amendment would authorize $2,267.3 million.
       The conferees recommended an authorization of $2,279.5 
     million. Unless noted explicitly in the statement of 
     managers, all changes are made without prejudice.

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     Chemical Agents and Munitions Destruction, Defense--Overview
       The budget request for fiscal year 2002 included an 
     authorization of $1,153.6 million for Chemical Agents & 
     Munitions Destruction, Army in the Department of Defense.
       The Senate bill would authorize $1,153.6 million.
       The House amendment would authorize $1,078.6 million.
       The conferees recommended an authorization of $1,153.6 
     million for Chemical Agents & Munitions Destruction, Defense. 
     Unless noted explicitly in the statement of managers, all 
     changes are made without prejudice.

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                       Items of Special Interest

     Acquisition programs at the National Reconnaissance Office
       The Senate report (S. Rept. 107-62) raised several concerns 
     about acquisition programs at the National Imagery and 
     Mapping Agency (NIMA). The report expressed concern that the 
     requirements trade-off process for the future imagery 
     architecture (FIA) may not have provided sufficient attention 
     to all aspects of an end-to-end capability, focusing too 
     narrowly on the collection aspects of the problem.
       The Senate report insisted that the requirements trade-off 
     process consider the complete picture, not just the more 
     narrow question of the collection instrument. The report 
     further directed the Secretary of Defense and the Director of 
     Central Intelligence to ensure that the acquisition policies 
     of the Office of the Secretary of Defense, the Community 
     Management Staff, and the National Reconnaissance Office 
     (NRO) be changed to prevent recurrences of these problems at 
     the NIMA. The report stated that these policies should 
     prevent NRO satellite programs from entering acquisition 
     until the Joint Requirements Oversight Council (JROC) and 
     Mission Requirements Board (MRB) have approved a set of 
     requirements for end-to-end system performance (i.e., ground 
     and space segments together), and cost and schedule estimates 
     to meet those requirements have been prepared by the NRO and 
     its mission partners or other appropriate organizations.
       The report accompanying the House amendment (H. Rept. 107-
     194) expressed no similar sentiment.
       The conferees agree that the requirements trade-off process 
     should consider the entire end-to-end system, not just the 
     collection instruments. NRO satellite programs should include 
     an assessment of the costs and impacts to the mission 
     partners before being approved to enter acquisition. The JROC 
     and MRB should also have an approved set of requirements for 
     end-to-end system performance, i.e., ground, communications 
     and space segments together. Complete cost and schedule 
     estimates to meet these requirements should be presented by 
     the NRO and its mission partners or other appropriate 
     organizations and presented to the Director of Central 
     Intelligence, the Secretary of Defense, and Congress.
       However, the conferees do not believe that this should be 
     an absolute prohibition placed on all NRO systems. For 
     example, there are technology demonstration activities and 
     other non-major systems procurement where spending resources 
     on fielding an end-to-end capability is neither required nor 
     appropriate.
       The conferees believe that there has been progress in this 
     area, but that the Secretary of Defense and the DCI should 
     further ensure major new acquisition programs that support 
     national-level requirements and the Department of Defense 
     customers have completed the appropriate level of 
     documentation in a formal requirements process, and the cost 
     and schedule estimates to meet these end-to-end requirements 
     have been prepared, before such programs enter into 
     acquisition.
     Acquisition programs at the National Security Agency
       The Senate report (S. Rept. 107-62) raised several concerns 
     about acquisition programs at the National Security Agency 
     (NSA). The report noted that the Director of the NSA has made 
     progress in transforming the NSA. The report, however, 
     expressed concern that more progress needs to be made in the 
     NSA processes if the NSA is to achieve the capabilities that 
     the nation will require.
       The report identified a number of specific actions that the 
     NSA would have to complete before December 1, 2001. 
     Otherwise, the report would direct that the NSA modernization 
     effort be designated a major defense acquisition program and 
     milestone decision authority reside with the Under Secretary 
     of Defense (Acquisition, Technology & Logistics).
       In light of the problems identified in the Senate report, 
     the report would direct that the Office of the Secretary of 
     Defense (OSD) and the Community Management Staff (CMS) 
     conduct a ``baselining'' of the NSA that parallels the 
     successful and productive effort performed at the National 
     Imagery and Mapping Agency in fiscal year 2001. There were a 
     number of specific actions identified in the Senate report to 
     help improve the situation at the NSA, including the 
     following:
       (1) The NSA must create a rational requirements process and 
     produce a prioritized requirements baseline that is 
     structured to support a spiral-development approach to major 
     elements of the modernization program;
       (2) The NSA must produce a rationalized, integrated 
     schedule and requirements allocation for all the major 
     elements of its modernization effort;
       (3) The NSA must develop plans for turning over most or all 
     of the systems integration job to a single industry team;
       (4) The NSA must create a detailed plan to subordinate the 
     interim Trailblazer program under the Objective Trailblazer 
     program upon contract award;
       (5) The NSA must produce a detailed audit of all the 
     hundreds of ongoing development activities and programs 
     within the Agency;
       (6) The NSA must produce a detailed plan and schedule to 
     establish a rigorous ``make-versus-buy'' decision process for 
     all the NSA acquisition activities; and
       (7) The NSA must produce a plan acceptable to the 
     Department of Defense and the Director of Central 
     Intelligence for enterprise-wide systems engineering.
       The House report (H. Rept. 107-194) expressed no similar 
     sentiments.
       The conferees believe that the senior acquisition executive 
     (SAE) and the NSA have made significant improvements in the 
     acquisition process. For example, the SAE has initiated an 
     orderly review process and has increased the percentage of 
     competitive acquisitions.
       However, much needed progress still remains to be achieved. 
     The SAE is operating within a requirements and architecture 
     vacuum, is not responsible for technology selection, has no 
     control over correcting deficiencies in systems or software 
     engineering disciplines, and appears to lack the authority to 
     cancel or redirect troubled programs. The chief financial 
     manager (CFM) is understaffed and has struggled to gain 
     internal support to implement a cost accounting system that 
     would enable the NSA to conduct an accurate financial 
     baselining of all programs.
       To its credit, the NSA has acknowledged that its major 
     modernization programs were proceeding in isolation, and over 
     the past several months, there has been an attempt to address 
     the integration problem within the Signals Intelligence 
     Directorate. However, such revelations must be accompanied by 
     concrete plans for improvement.
       The conferees agree with the need for the OSD and the CMS 
     to enforce the baselining activities identified in the Senate 
     report. In addition to the specific tasks identified above, 
     the baselining effort should oversee and verify effective 
     implementation of the CFM's plans for cost centers that will 
     comprise the fiscal year 2003 budget request. The conferees 
     further encourage the NSA to seek the advice of independent, 
     outside experts to assist in guiding its selection of 
     technologies under this baselining effort.
       The conferees agree that, unless the OSD, the CMS and the 
     NSA complete the baselining by December 1, 2002, the Congress 
     will direct that the NSA's modernization effort be designated 
     a major defense acquisition program, with milestone decision 
     authority likely residing with the Under Secretary of Defense 
     (Acquisition, Technology, and Logistics) until initial 
     operational capability is achieved.
     Airborne signals intelligence recapitalization and 
         modernization
       The conferees remain interested in sustaining and improving 
     airborne reconnaissance platforms, sensors and payloads, and 
     the architecture under which they operate. These systems 
     provide theater and operational commanders with the bulk of 
     real-time tactical imagery and signals intelligence (SIGINT).
       The current fleet of reconnaissance platforms, consisting 
     of the RC-135, the EP-3, and the U-2, is aging. In addition 
     to the platforms under development, including the Aerial 
     Common Sensor and the Global Hawk High Altitude Endurance 
     Unmanned Aerial Vehicle (HAE-UAV), the conferees are aware of 
     Army, Navy and Air Force initiatives to consider the 
     replacement of their older reconnaissance platforms.
       The conferees are also aware of the current status of 
     collection systems used by the reconnaissance platforms, and 
     are particularly concerned with SIGINT systems. The recent 
     cancellation of the low-band subsystem (LBSS) portion of the 
     Joint SIGINT Avionics Family (JSAF) program has necessitated 
     a complete review of the way ahead for this vital capability. 
     Although the development of the JSAF high-band subsystem has 
     been more successful, without LBSS the SIGINT requirement 
     will not have been fully met. Prior to establishment of the 
     JSAF program, the individual services had disparate upgrade 
     programs. Although technology sharing occurred, it was 
     sporadic and uncoordinated.
       The Department of Defense's approach must be coordinated 
     and based on architectural standards. The conferees are 
     pleased with the National Security Agency efforts to develop 
     the Joint Airborne SIGINT Architecture and the associated 
     maritime SIGINT architecture. The conferees believe the 
     Assistant Secretary of Defense for Command, Control, 
     Communications, and Intelligence should develop an 
     architectural plan to provide standards-based policy 
     direction to the services, whose platform program offices can 
     develop systems and, to the maximum extent possible, share 
     developments. The conferees expect the plan to include: (1) a 
     robust spiral development approach; and (2) adequate emphasis 
     on fielding and modernizing the appropriate ground support 
     infrastructure.
       The conferees believe the time is right to begin the formal 
     discussion of the recapitalization and modernization of the 
     airborne signals intelligence platforms, systems, and 
     architecture. The conferees are specifically not endorsing 
     any option for recapitalization. In fact, with several 
     options under consideration, the conferees believe the 
     Department of Defense should conduct an analysis

[[Page 25413]]

     of alternatives to determine the most cost effective approach 
     to this recapitalization and modernization. The conferees 
     believe, in weighing the various options, consideration 
     should be given to: (1) collaborative, network-centric 
     operations that allow the various platforms to coordinate 
     their various collection and analytical functions; (2) the 
     ability to control unmanned aerial vehicles and their 
     payloads; (3) a reach-back capability allowing analysts not 
     on the platform to operate systems; (4) software re-
     programmable systems to allow for rapid threat updates; and 
     (5) the ability to share in system upgrades.
     Arleigh Burke-class destroyer procurement
       The conferees agree with the Navy assessment that the 
     destroyer industrial base is at risk unless three destroyers 
     are built each year or unless the destroyer shipbuilders 
     attain significant other work beyond their historic level of 
     the past 10 years. Therefore, the conferees agree that the 
     Secretary of the Navy should include procurement of three 
     Arleigh Burke-class destroyers in the fiscal year 2003 budget 
     request to attain an economic rate of production and consider 
     options for maintaining and transitioning the industrial 
     base, including second tier suppliers, to future destroyer 
     production.
     Attack submarine force structure study
       Section 123 of the Floyd D. Spence National Defense 
     Authorization Act for Fiscal Year 2001 required the Secretary 
     of Defense to provide a report on the Navy's fleet of attack 
     submarines. That provision required that the Secretary submit 
     this report with the fiscal year 2002 budget request.
       Although the amended budget request was submitted to 
     Congress on June 27, 2001, the Secretary has not yet 
     submitted the required report. The conferees urge the 
     Secretary of Defense to submit the required report, which is 
     intended to provide the Congress with the information 
     required to review the plans for recapitalizing the attack 
     submarine force structure.

                     Legislative Provisions Adopted

              Subtitle A--Authorization of Appropriations

     Authorization of appropriations (secs. 101-107)
       The Senate bill contained provisions (secs. 101-107) that 
     would authorize the recommended fiscal year 2002 funding 
     levels for procurement for the Army, Navy, Marine Corps, Air 
     Force, Defense-Wide activities, Defense Inspector General, 
     Chemical Demilitarization Program, and Defense Health 
     Program.
       The House amendment contained similar provisions.
       The conference agreement includes these provisions.
     Chemical agents and munitions destruction, Defense (sec. 106)
       The Senate bill contained a provision (sec. 106) that would 
     authorize the requested amount of $1.2 billion for the Office 
     of the Secretary of Defense for destruction of chemical 
     agents, weapons and materiel.
       The House amendment contained a similar provision (sec. 
     106) that would authorize $1.1 billion for chemical 
     demilitarization.
       The House recedes with an amendment that would authorize 
     the requested $1.2 billion for the Department of Defense for 
     Chemical Agents and Munitions Destruction, Defense.
       The conferees are disappointed that the Department of 
     Defense requested funds for chemical demilitarization for 
     fiscal year 2002 in an Army account, contrary to the 
     requirements of law. Section 1521(f) of title 50, United 
     States Code, requires that funds for this program shall not 
     be included in the budget accounts for any military 
     department. The conferees expect the Department of Defense to 
     comply with the law in future budget requests for the 
     chemical demilitarization program.
       The conferees note that the Department of Defense has 
     initiated a high-level review of the entire chemical 
     demilitarization program and all its component elements. The 
     conferees direct the Department to provide the congressional 
     defense committees with the results and recommendations of 
     this review, including an updated assessment required by 
     section 141(a) of the National Defense Authorization Act for 
     Fiscal Year 2000, as directed in the House report 
     accompanying H.R. 2586 (H. Rept. 107-194), by March 1, 2002.

                       Subtitle B--Army Programs

     Repeal of limitations on bunker defeat munitions program 
         (sec. 111)
       The House amendment contained a provision (sec. 112) to 
     repeal section 115 of the National Defense Authorization Act 
     for Fiscal Year 1995, which limits the acquisition of bunker 
     defeat munitions.
       The Senate bill contained no similar provision.
       The Senate recedes.
     Extension of pilot program on sales of manufactured articles 
         and services of certain Army industrial facilities 
         without regard to availability from domestic sources 
         (sec. 112)
       The Senate bill contained a provision (sec. 141) that would 
     extend the pilot program for sales of manufactured articles 
     and services from up to three Army industrial facilities 
     enacted by section 141 of the National Defense Authorization 
     Act for Fiscal Year 1998 through fiscal year 2002.
       The House amendment contained no similar provision.
       The House recedes with an amendment that would extend the 
     authority for the pilot program through fiscal year 2002 but 
     would limit the program to one facility. The conferees direct 
     that the facility that has demonstrated the most success with 
     the pilot program to date be selected as the facility to 
     continue the pilot program.
     Limitations on acquisition of interim armored vehicles and 
         deployment of interim brigade combat teams (sec. 113)
       The conferees agree to a provision that would amend section 
     113 of the Floyd D. Spence National Defense Authorization Act 
     for Fiscal Year 2001, which required the Secretary of the 
     Army to submit a report on the process for developing the 
     Objective Force in the transformation of the Army. The 
     provision also required the Secretary of the Army to conduct 
     a comparative cost and operational effectiveness evaluation 
     of the interim armored vehicles (IAV) selected for the 
     Interim Brigade Combat Team (IBCT) with the infantry troop-
     carrying medium armored vehicles currently in the Army 
     inventory.
       The provision further prohibited the obligation of funds 
     for a third IBCT until: the comparative evaluation is carried 
     out; the Secretary of Defense submits the results of the 
     evaluation to the congressional defense committees; and the 
     Secretary certifies that (1) he approves of the obligation of 
     funds for that purpose and (2) the force structure resulting 
     from the acquisition and subsequent operational capability of 
     Interim Brigade Combat Teams will not diminish the combat 
     power of the Army.
       The Secretary of the Army has requested relief from the 
     requirement for the comparative evaluation directed in this 
     provision. The Secretary stated that the comparative 
     evaluation would replicate the comparison accomplished during 
     source selection, and duplicate more comprehensive testing 
     already required by law.
       Last year, the conferees concluded that the costs 
     associated with the comparative evaluation were worth 
     incurring for a better understanding of whether the 
     differences in operational effectiveness, if any, justify the 
     increased cost of new IAV procurement compared to using 
     current inventory equipment.
       While the conferees continue to believe that there is merit 
     to the comparative evaluation, the conferees recommend a 
     modification to section 113 that would grant the Secretary of 
     Defense the authority to waive those portions of section 113 
     pertaining to the comparative evaluation, subject to certain 
     certifications.
       The conferees direct the Secretary of the Army to conduct 
     an operational evaluation of the initial IBCT, to include 
     deployment to the evaluation site and the execution of combat 
     missions across the full spectrum of potential threats and 
     operational scenarios. The plan for the operational 
     evaluation must be approved by the Director of Operational 
     Test and Evaluation, Department of Defense, prior to 
     execution.
       The Army is prohibited from acquiring interim armored 
     vehicles for other than the first three brigades, and from 
     deploying any IBCT, until 30 days after a report on the 
     operational evaluation is forwarded to the Congress and the 
     Secretary of Defense certifies to the Congress that the 
     results of the evaluation indicate that the IBCT design is 
     operationally effective and suitable.
       The Secretary of Defense can waive the deployment 
     prohibition if he determines it to be in the national 
     security interests of the United States, and reports to 
     Congress the reasons for the waiver.
       The conferees expect the Army to develop and resource an 
     experimentation program that will inform the design of the 
     Objective Force, including a formal linkage of the Interim 
     Brigade Combat Teams to that experimentation.

                       Subtitle C--Navy Programs

     Virginia class submarine program (sec. 121)
       The Senate bill contained a provision (sec. 121) that would 
     modify section 123(b)(1) of the Floyd D. Spence National 
     Defense Authorization Act for Fiscal Year 2001 by authorizing 
     the Secretary of the Navy to enter into contracts for the 
     procurement of material in economic order quantities, when 
     cost savings are achievable, for up to seven Virginia-class 
     submarines. This authority would apply to boats to be 
     procured during the period from fiscal years 2003 through 
     2007.
       The House amendment contained no similar provision.
       The House recedes with a clarifying amendment.
     Multiyear procurement authority for F/A-18E/F aircraft 
         engines (sec. 122)
       The Senate bill contained a provision (sec. 122) that would 
     authorize the Secretary of the Navy to enter a multiyear 
     contract for procurement of F/A-18E/F aircraft engines in 
     accordance with section 2306b of title 10, United States 
     Code.
       The House amendment contained no similar provision.
       The House recedes with an amendment that would require the 
     Secretary to certify that each of the conditions listed in 
     subsection (a) of section 2306b of title 10, United States 
     Code, has been satisfied. The provision would also require 
     that this multiyear

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     procurement contract could not be entered into until 30 days 
     after the aforementioned certification has been transmitted.
       The Navy procures engines for F/A-18E/F aircraft directly 
     from the engine contractor and provides the engines to the 
     prime airframe contractor as government-furnished equipment. 
     The Navy is currently procuring the F/A-18E/F airframe under 
     a multiyear contract that covers the fiscal years from 2000 
     to 2004. The conferees understand that this provision would 
     authorize a multiyear procurement contract that may not cover 
     exactly the same time period as that for the airframe itself. 
     The conferees believe that the Secretary of the Navy should, 
     if he chooses to enter into a multiyear contract for these 
     engines, consider synchronizing the time periods of the 
     contracts for these two items.
     V-22 Osprey aircraft program (sec. 123)
       The Senate bill contained a provision (sec. 123) that would 
     keep the production rate of V-22 aircraft at the minimum 
     sustaining rate, defined as the number for which funds are 
     authorized to be appropriated in this Act, until the 
     Secretary of Defense certifies to Congress that operational 
     testing has successfully demonstrated certain effectiveness 
     and suitability aspects not yet demonstrated.
       The House amendment contained no similar provision.
       The House recedes.
       The conferees note that this provision is consistent with 
     the recommendations of the report of the Panel to Review the 
     V-22 Program, which was released in May 2001.
     Report on status of V-22 Osprey aircraft before resumption of 
         flight testing (sec. 124)
       The Senate bill contained two provisions relating to 
     reports that would be required before the V-22 could return 
     to flight status.
       One provision (sec. 124) would require the Secretary of 
     Defense to notify Congress of the waiver, if any, of any item 
     capability or other requirement specified in the V-22 Joint 
     Operational Requirements Document, along with justification 
     for any such waiver. The provision would require that any 
     such notice be given at least 30 days before the V-22 resumes 
     flight operations.
       The second provision (sec. 215) would require the Under 
     Secretary of Defense (Acquisition, Technology, and Logistics) 
     to submit a report, 30 days before V-22 resumption of flight, 
     that would include: (1) a description of any hydraulics and 
     flight control software deficiencies and corrective actions; 
     (2) actions to implement the recommendations of the Panel to 
     Review the V-22 Program; and (3) an assessment of the 
     recommendations of the National Aeronautics and Space 
     Administration in its report on tiltrotor aeromechanics.
       The House amendment contained no similar provisions.
       The House recedes with an amendment that would combine the 
     reporting requirements into one provision, and would require 
     the Secretary of Defense to submit the report no later than 
     30 days prior to V-22 resumption of flight.

                     Subtitle D--Air Force Programs

     Multiyear procurement authority for C-17 aircraft (sec. 131)
       The Senate bill contained a provision (sec. 131) that would 
     authorize a multiyear procurement of up to 60 additional C-17 
     aircraft in accordance with section 2306b of title 10, United 
     States Code.
       The House amendment contained a similar provision (sec. 
     121) that would authorize a multiyear procurement of up to 60 
     additional C-17 aircraft after the Secretary of Defense 
     certifies that such a procurement is in the interest of the 
     Department of Defense.
       The conferees agree to a provision that would authorize the 
     Secretary of the Air Force to enter into a multiyear contract 
     for procurement of up to 60 additional C-17 aircraft in 
     accordance with section 2306b of title 10, United States 
     Code, except that the contract could cover a period of up to 
     six program years.
       The provision would require that the Secretary certify that 
     each of the conditions listed in subsection (a) of section 
     2306b of title 10, United States Code, has been satisfied. 
     The provision would also require that this multiyear 
     procurement contract could not be entered into until 30 days 
     after the aforementioned certification has been transmitted.

                   Legislative Provisions Not Adopted

     Additional amount for Shipbuilding and Conversion, Navy
       The House amendment contained a provision (sec. 108) that 
     would authorize an increase of $57.1 million for a ship 
     overhaul.
       The Senate bill contained no similar provision.
       The House recedes.
     Destruction of existing stockpile of lethal chemical agents 
         and munitions
       The House amendment contained a provision (sec. 141) that 
     would amend section 152 of the National Defense Authorization 
     Act for Fiscal Year 1996 (Public Law 104-106; 50 U.S.C. 1521 
     note) to add to the requirements that must be satisfied 
     before the Secretary of Defense may initiate destruction of 
     the chemical munition stockpile stored at a chemical 
     stockpile destruction site. The provision would require the 
     Under Secretary of Defense (Acquisition, Technology, and 
     Logistics) to convene independent oversight boards that would 
     make a recommendation to the Under Secretary on whether the 
     destruction of the chemical munitions stockpile should be 
     initiated at a particular chemical stockpile destruction 
     site. Finally, the provision would require that the Under 
     Secretary, after considering a negative recommendation of a 
     board, may not recommend commencing destruction of the 
     chemical munitions stockpile at the site until 90 days after 
     the Under Secretary notifies the Congress of his intent to 
     recommend initiation of chemical munitions destruction 
     operations.
       The Senate bill contained no similar provision.
       The House recedes.
     Extension of multiyear contract for Family of Medium Tactical 
         Vehicles
       The House amendment contained a provision (sec. 111) that 
     would give the Secretary of the Army discretionary authority 
     to extend the existing multiyear procurement contract for the 
     Family of Medium Tactical Vehicles for one additional year.
       The Senate bill contained no similar provision.
       The House recedes.
     Procurement of additional M291 skin decontamination kits
       The Senate bill contained a provision (sec. 142) that would 
     authorize an increase of $2.4 million in the Defense-Wide 
     procurement account for procurement of additional M291 skin 
     decontamination kits.
       The House amendment contained no similar provision.
       The Senate recedes.
       The Senate bill would separately authorize an additional 
     increase of $1.0 million for procurement of M291 skin 
     decontamination kits.
       The conferees agree to authorize an increase of $3.4 
     million for procurement of M291 skin decontamination kits, as 
     noted elsewhere in this report.

         Title II--Research, Development, Test, and Evaluation

     Research, Development, Test, and Evaluation overview
       The budget request for fiscal year 2002 included an 
     authorization of $47,429.4 million for Research and 
     Development for the Department of Defense.
       The Senate bill would authorize $46,602.5 million.
       The House amendment would authorize $47,424.9 million.
       The conferees recommended an authorization of $46,460.8 
     million. Unless noted explicitly in the statement of 
     managers, all changes are made without prejudice.

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     Management reform initiatives
       The conferees agree to reduce the research, development, 
     test and evaluation accounts by $140.0 million to reflect 
     savings from management reform initiatives, as discussed in 
     Title VIII.
     Research, Development, Test and Evaluation, Army--Overview
       The budget request for fiscal year 2002 included an 
     authorization of $6,693.9 million for Research, Development, 
     Test and Evaluation, Army in the Department of Defense.
       The Senate bill would authorize $6,901.7 million.
       The House amendment would authorize $6,749.0 million.
       The conferees recommended an authorization of $6,675.3 
     million. Unless noted explicitly in the statement of 
     managers, all changes are made without prejudice.

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     Army missile defense technology
       To support critical missile defense technology activities, 
     the conferees agree that of the funding authorized in the 
     Army research and development account, certain amounts may be 
     used for advanced technology activities as specified below:
       (1) up to $1.9 million for the Short-range missile defense 
     With Optimal Radar Distribution (SWORD) program in PE 62303A;
       (2) up to $7.6 million for Patriot ground equipment 
     upgrades and life extension efforts in PE 23801A;
       (3) up to $3.8 million for the Aerostat Design and 
     Manufacture (ADAM) program in PE 12419A; and
       (4) up to $11.0 million for the Army Space and Missile 
     Defense Battle Lab in PE 63308A.
     Comanche
       The budget request contained $787.9 million in PE 64223A 
     for continued engineering and manufacturing development (EMD) 
     of the RAH-66 Comanche reconnaissance attack helicopter.
       The Senate bill would authorize an increase of $28.3 
     million for the development of a communications suite that is 
     compatible with air and ground components in a joint 
     environment.
       The House amendment would authorize an increase of $28.5 
     million for a similar purpose.
       The conferees agree to authorize an increase of $28.3 
     million in PE 64223A for this requirement.
       The conferees believe the Comanche is a necessary and 
     integral weapon system to the Army's transformation and have 
     been supportive of this program in past fiscal years. The 
     Army has stated that the Comanche is its top modernization 
     program. However, the conferees note that there has been a 
     $3.0 billion increase in research, development, test and 
     evaluation (RDT&E) costs since fiscal year 1991. Despite 
     these substantial cost increases, the program continues to be 
     plagued by delays, which the conferees now understand could 
     result in a full two-year delay of the currently scheduled 
     initial operating capability (IOC) of December 2006 to 
     December 2008. The conferees are disappointed to learn once 
     again of the need to restructure and delay this program for 
     at least a sixth time since fiscal year 1988, and the need to 
     add approximately $1.5 billion to the program to complete 
     EMD.
       The conferees question the reliability of any new cost 
     estimates and EMD program milestones, especially since the 
     EMD contract was awarded only slightly over a year ago, in 
     June 2000, and numerous changes in requirements have been 
     made since then.
       The conferees believe that as the aircraft continues in the 
     EMD phase, an adequately funded and disciplined development 
     program is absolutely essential to fielding this aircraft as 
     part of the Army's Objective Force. Therefore, the conferees 
     expect the Secretary of the Army, in coordination with the 
     Under Secretary of Defense for Acquisition, Technology, and 
     Logistics, and its industry team, to present to Congress in 
     the fiscal year 2003 budget request an accurate estimate of 
     funds required to complete EMD and the new time line and plan 
     for bringing the Comanche to IOC.
     Rapid acquisition program for transformation
       The budget request included $23.6 million in PE 23761A for 
     the Rapid Acquisition Program for Transformation (RAPT).
       The Senate bill would authorize $23.6 million for RAPT, but 
     would transfer the funding from the RAPT program element to 
     the program elements supporting the systems chosen by the 
     Army for entry into the program for fiscal year 2002.
       The House amendment would authorize $23.6 million for RAPT, 
     but would transfer the funding from the RAPT program element 
     to PE 63001A, Warfighter Advanced Technology.
       The conferees agree to authorize $23.6 million in PE 23761A 
     for RAPT or counter-terrorism initiatives and direct the 
     Secretary of the Army to provide a detailed list of how these 
     funds are executed.
     Tactical high energy laser
       The budget request included no funds for the Tactical High 
     Energy Laser (THEL) program, a joint U.S.-Israeli development 
     program to demonstrate the feasibility of defeating short-
     range rockets using directed energy.
       The Senate bill would authorize $9.0 million of the funds 
     available in PE 63882C to evaluate the development of a 
     Mobile THEL (MTHEL) system.
       The House amendment would authorize an increase of $10.0 
     million to PE 65605A for continuing work on THEL and 
     exploring the option of a mobile version of THEL.
       The conferees agree to authorize, from within the funds 
     available in the Army research and development account, an 
     increase of $10.0 million to PE 65605A for evaluating 
     development of THEL as a mobile system.
     Thermionics technology
       The budget request included $19.5 million in PE 63308A for 
     Army missile defense systems integration, but did not include 
     funds for thermionics technology development.
       The Senate bill would authorize, of the funds authorized in 
     PE 63882C for the Midcourse Ground Defense System, $8.0 
     million for thermionics technology development.
       The House amendment would authorize an increase of $3.0 
     million in PE 63308A for thermionics technology development.
       The conferees agree to authorize an increase of $1.0 
     million in PE 63308A for thermionics technology development. 
     Of the amounts authorized for Army research and development, 
     an additional $7.0 million may be used for thermionics 
     technology development.
     Research, Development, Test and Evaluation, Navy--Overview
       The budget request for fiscal year 2002 included an 
     authorization of $11,123.4 million for Research, Development, 
     Test and Evaluation, Navy in the Department of Defense.
       The Senate bill would authorize $11,134.8 million.
       The House amendment would authorize $10,863.3 million.
       The conferees recommended an authorization of $10,784.3 
     million. Unless noted explicitly in the statement of 
     managers, all changes are made without prejudice.

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     Follow-on support jamming aircraft
       The budget request included $112.5 million in PE 64270N for 
     electronic warfare development, but included no funds for 
     pre-engineering and manufacturing development (EMD) risk 
     reduction activities for a follow-on support jamming aircraft 
     program to replace the EA-6B.
       The House amendment would authorize an increase of $10.0 
     million for pre-EMD risk reduction activities for a follow-on 
     support jamming aircraft program.
       The Senate bill included no similar authorization.
       The conferees agree to authorize no additional funds for a 
     follow-on support jamming aircraft program.
       The conferees recognize that the Department of Defense is 
     scheduled to complete the Analysis of Alternatives (AoA) in 
     December 2001 and believe that the Department will identify a 
     need to replace the capability currently provided by the EA-
     6B fleet of electronic warfare aircraft. The conferees 
     believe that the Department should move expeditiously to 
     translate the results of that AoA into a plan that will avoid 
     having the Nation presented with any gap in this important 
     mission area.
     Future destroyer program
       The budget request included $288.4 million in PE 63513N and 
     $355.1 million in PE 64300N for the DD-21 program.
       The Senate bill would authorize the budget request.
       The House amendment would authorize a decrease of $25.0 
     million in PE 63513N.
       Subsequent to passage of both the Senate bill and the House 
     amendment, the Navy announced intentions to restructure the 
     DD-21 program to a family of surface combatants including a 
     destroyer version, DD(X). However, the specifics of the 
     proposed programs for development of the family of surface 
     combatants were not available for the conferees to review.
       Therefore, the conferees agree to authorize a decrease of 
     $50.0 million in PE 63513N resulting from the delay in the 
     down-select to a future destroyer detail design. The 
     conferees will review the Navy's decision to restructure DD-
     21 when the Navy makes available details of the cancellation 
     of the current request for proposals and the proposed 
     replacement program.
     Littoral support craft--experimental
       The budget request included $85.3 million in PE 63123N for 
     force protection advanced technology, including $20.0 million 
     for development and demonstration of experimental craft for 
     littoral support operations. The Office of Naval Research has 
     proposed to conduct a phased program to develop and 
     demonstrate an experimental littoral support craft 
     demonstrator (LSC-X) that would build upon development and 
     evaluation of operational concepts at the component and 
     subsystem level and provide the basis for operational 
     experiments on the contribution that such craft could make to 
     naval operations in the littoral.
       The House amendment would authorize a total of $39.0 
     million in PE 63123N for development and demonstration of an 
     LSC-X, including an increase of $19.0 million for 
     demonstration and development of an experimental craft for 
     littoral support operations.
       The Senate bill included no similar authorization. However, 
     the Senate report accompanying S. 1438 (S. Rept. 107-62) 
     identified at least six efforts that the Navy has underway to 
     test key technologies for future ship programs. The Senate 
     report also would encourage the Navy to focus ship design 
     efforts on programs that will collect the type of information 
     that will be needed to make decisions on future combatant 
     ships, the future amphibious ship (LH(X)), the future joint 
     command and control ship (JCC(X)), and the maritime 
     prepositioning force ship of the future (MPF(F)), rather than 
     duplicating efforts already underway.
       The conferees agree to authorize a total of $31.0 million 
     in PE 63123N, an increase of $11.0 million, to continue the 
     ONR program for development and demonstration of the LSC-X.
       The conferees direct that the Secretary of the Navy 
     identify the set of experimental objectives that the LSC-X 
     program is intended to explore, and the objective measures of 
     effectiveness that will be used to determine whether those 
     objectives have been achieved. The conferees also direct the 
     Secretary to define the program plan, the schedule, and the 
     funding requirements for development of LSC-X. The Secretary 
     should provide all of this information to the congressional 
     defense committees by March 31, 2002.
     Research, Development, Test and Evaluation, Air Force--
         Overview
       The budget request for fiscal year 2002 included an 
     authorization of $14,344.0 million for Research, Development, 
     Test and Evaluation, Air Force in the Department of Defense.
       The Senate bill would authorize $14,459.5 million.
       The House amendment would authorize $14,485.7 million.
       The conferees recommended an authorization of $14,407.2 
     million. Unless noted explicitly in the statement of 
     managers, all changes are made without prejudice.

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     Joint Strike Fighter
       The budget request included no funding for PE 63800N or PE 
     63800F for continuing demonstration and validation (DEMVAL) 
     of the joint strike fighter (JSF). The budget request 
     included $767.3 million for PE 64800N and $769.5 million for 
     PE 64800F for initiating the engineering and manufacturing 
     development (EMD) of the JSF.
       The Senate bill would authorize an increase of $30.0 
     million for PE 63800N and an increase of $30.0 million for PE 
     63800F to continue JSF DEMVAL. The Senate bill would also 
     authorize a decrease of $153.6 million for PE 64800N and a 
     decrease of $153.6 million for PE 64800F. The Senate bill 
     based these actions on a possible delay in the award of the 
     EMD contract.
       The House amendment would authorize the budget request for 
     PE 64800N, and an increase of $10.0 million for PE 64800F for 
     the JSF alternate engine program.
       The conferees agree to authorize the budget request.
       The conferees remain concerned about the technical risks 
     associated with the JSF aircraft engine and expect the 
     Department to develop and integrate the JSF alternate engine 
     within the EMD program. The conferees believe that the 
     Department should execute the alternate engine program with a 
     goal of having that engine integrated into the JSF prior to 
     full rate production.
       The conferees are aware of the potential long-term impact 
     to the military aircraft industrial base as a result of the 
     recently completed source selection. Source selection talking 
     points, released by the Department of Defense (DOD) at the 
     announcement of the selection, stated: ``The JSF downselect 
     may lead companies to reassess their strategic position and 
     teaming arrangements. The expertise resident in the teams not 
     selected today can still make a contribution to the JSF 
     effort through revised industrial teaming arrangements. DoD 
     will encourage teaming arrangements that make the most 
     efficient use of the expertise in the industrial base to 
     deliver the `best value' product.''
       The conferees direct the Under Secretary of Defense for 
     Acquisition, Technology, and Logistics to submit a report, 
     with the submission of the fiscal year 2003 budget request, 
     which details: (1) projections for the military aircraft 
     industrial base, to include foreign military sales, between 
     now and fiscal year 2015; and (2) actions taken by the DOD to 
     encourage teaming arrangements in the JSF program that make 
     the most efficient use of the expertise in the industrial 
     base.
     Low cost launch technologies
       The budget request included $54.5 million in PE 63401F for 
     advanced spacecraft technology, but included no funds for low 
     cost launch technology.
       The Senate bill would authorize, of the funds authorized in 
     PE 63882C for the Midcourse Ground Defense System, $15.0 
     million for the Excalibur and Scorpius low cost launch 
     concepts.
       The House amendment would authorize $15.0 million in PE 
     63401F for low cost launch technologies, including Scorpius.
       The conferees note that the Air Force has terminated the 
     Excalibur project. The conferees agree to authorize an 
     increase of $2.0 million in PE 63401F for low cost launch 
     technologies, including Scorpius. Of the funds authorized in 
     PE 63401F, an additional $13.0 million may be used for low 
     cost launch technologies, including Scorpius.
     Special aerospace materials and materials manufacturing 
         processes
       The budget request included $77.2 million for PE 62102F for 
     applied research in materials, $32.7 million for PE 63112F 
     for advanced development of advanced materials for weapons 
     systems, and $53.8 million in PE 78011F for the Air Force's 
     manufacturing technology program.
       The House amendment would authorize increases of $4.5 
     million in PE 62102F, $4.5 million in PE63112F, and $3.5 
     million in PE 78011F to continue the program for development 
     and demonstration of special aerospace materials and 
     materials manufacturing processes.
       The Senate bill would authorize an increase of $16.5 in PE 
     62102F, including $5.0 million for improvements in the 
     manufacturing of speciality aerospace materials.
       The conferees agree to an increase of $3.5 million in PE 
     62102F to continue the program for applied research and 
     development in special aerospace materials and materials 
     manufacturing processes.
       The conferees note the continuing need of the military 
     services for advances in speciality aerospace metals and 
     metal alloys for aircraft and space vehicle structures, 
     propulsion, components, and weapon systems. The conferees 
     direct the Secretary of the Air Force, in coordination with 
     the Secretary of the Navy, to assess the requirements for 
     advanced aerospace metals and alloys and report to the 
     congressional defense committees on the plan, including 
     budget, schedule, and technology demonstrations, for meeting 
     these requirements with the submission of the fiscal year 
     2004 budget request.
     Research, Development, Test and Evaluation, Defense-Wide--
         Overview
       The budget request for fiscal year 2002 included an 
     authorization of $15,050.8 million for Research, Development, 
     Test and Evaluation, Defense-Wide in the Department of 
     Defense.
       The Senate bill would authorize $13,878.7 million.
       The House amendment would authorize $15,109.6 million.
       The conferees recommended an authorization of $14,372.6 
     million. Unless noted explicitly in the statement of 
     managers, all changes are made without prejudice.

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     Arrow missile defense system
       The budget request included $65.7 million in PE 63881C for 
     the Arrow ballistic missile defense system, a joint 
     development program between the United States and Israel.
       The Senate bill would authorize an increase of $76.0 
     million in PE 63881C for the Arrow System Improvement Program 
     and for continued joint interoperability efforts.
       The House amendment would authorize an increase of $30.0 
     million in PE 63881C for acceleration of the Arrow System 
     Improvement Program.
       The conferees agree to authorize, from within funds 
     available to the Ballistic Missile Defense Organization, an 
     increase of $53.0 million in PE 63881C to accelerate the 
     Arrow System Improvement Program and to continue joint 
     interoperability efforts for U.S. and Israeli missile defense 
     systems.
     Ballistic missile defense advanced technology
       To support critical ballistic missile defense technology 
     activities, the conferees agree that, of the funding 
     authorized for the Ballistic Missile Defense Organization, 
     certain amounts may be used for advanced technology 
     activities as specified below:
       (1) up to $9.0 million for the Magdalena Ridge Observatory 
     in PE 63175C;
       (2) up to $5.0 million for Phase III of the Software 
     Defined Radio program in PE 63175C;
       (3) up to $8.0 million for the Army Space and Missile 
     Defense Command's Advanced Research Center (ARC) in PE 
     63880C;
       (4) up to $8.0 million for the Airborne Infrared 
     Surveillance System (AIRS) in PE 63175C;
       (5) up to $2.5 million for Bottom Anti-Reflective Coatings 
     (BARC) for circuit boards in PE 63175C;
       (6) up to $7.5 million for ultra-flat planarization 
     technology for integrated circuits in PE 63175C; and
       (7) up to $10.0 million for the Atmospheric Interceptor 
     Technology (AIT) program in PE 63175C.
     Common database asset for biological security
       The budget request included $125.5 million in PE 62384BP 
     for applied research in chemical and biological defense.
       The Senate bill would authorize an increase of $1.5 million 
     to develop a database of biological pathogen information and 
     bioinformatics tools to support development of medical 
     biological countermeasures.
       The House amendment included no similar authorization.
       The conferees agree to authorize an increase of $1.5 
     million for the development of a common database asset to 
     support development of medical biological countermeasures. 
     The database would integrate genomic and other biological 
     data about high-priority pathogens, underlying scientific 
     research and bioinformatics tools, and would serve those 
     agencies addressing threats to biological security.

                       Items of Special Interest

     Navy research and development budget exhibits
       The Senate report accompanying S. 1438 (S. Rept. 107-62) 
     would require the Navy to comply with the research and 
     development budget justification guidelines included in the 
     Department of Defense (DOD) Financial Management Regulation 
     (DOD 7000.14-R). Subsequent to the passage of the Senate 
     bill, the Navy provided additional budget justification 
     information to the congressional defense committees.
       The conferees share the concern expressed in the Senate 
     report regarding the reorganization of the Navy's science and 
     technology program elements in the fiscal year 2002 budget 
     justification material. The failure of the Navy to display 
     explicitly the transition between the fiscal year 2001 
     program element structure and the new fiscal year 2002 
     structure detracted from the ability of the defense 
     authorizing committees to exercise their oversight 
     responsibilities.
       The conferees also share the Senate's concern about the 
     priority given to Fleet and Force operational and support 
     issues in the Navy's science and technology program and 
     direct the Secretary of the Navy to report to the 
     congressional defense committees by March 31, 2002, on the 
     measures being taken to address these issues.
       The conferees direct the Secretary of the Navy and the 
     Under Secretary of Defense (Comptroller) to ensure that the 
     Navy's budget justification information accompanying the 
     fiscal year 2003 budget request adequately describes the 
     Navy's science and technology program and complies with the 
     requirements of DOD 7000.14-R. The Under Secretary shall 
     report to the congressional defense committees with 
     submission of the budget request any deficiencies in the 
     budget justification material and the estimated date by which 
     those deficiencies will be resolved.

                     Legislative Provisions Adopted

              Subtitle A--Authorization of Appropriations

     Authorization of appropriations (secs. 201-202)
       The Senate bill contained provisions (secs. 201-202) that 
     would authorize the recommended fiscal year 2002 funding 
     levels for all research, development, test, and evaluation 
     accounts.
       The House amendment contained similar provisions.
       The conference agreement includes these provisions.
     Supplemental authorization of appropriations for fiscal year 
         2001 for Research, Development, Test, and Evaluation 
         Defense-Wide (sec. 203)
       The Senate bill contained a provision (sec. 233) that would 
     authorize an increase of $1.0 million in fiscal year 2001 for 
     intelligent spatial technologies for smart maps.
       The House amendment contained no similar provision.
       The House recedes.

    Subtitle B--Program Requirements, Restrictions, and Limitations

     Naval surface fire support assessment (sec. 211)
       The House amendment contained a provision (sec. 212) that 
     would direct the Secretary of Defense to establish a 
     competitive program for the development of an advanced land 
     attack missile (ALAM) for the DD-21, and would designate 
     $20.0 million in PE 63795N for that purpose. The provision 
     would also require the Secretary to submit a report on the 
     program plan, schedule and funding for the ALAM program.
       The Senate bill contained no similar provision.
       The Senate recedes with an amendment that would require the 
     Secretary of Defense to carry out an assessment of the 
     requirements for naval surface fire support of ground forces 
     operating in the littoral environment, including the role of 
     an advanced fire support missile system for Navy combatant 
     vessels. The amended provision would require that the 
     Secretary submit a report on the results of that assessment 
     by March 31, 2002.
     Collaborative program for development of advanced radar 
         systems (sec. 212)
       The House amendment contained a provision (sec. 213) that 
     would establish a cooperative research program to develop 
     electronic materials for advanced radar applications.
       The Senate bill contained no similar provision.
       The Senate recedes with an amendment that would eliminate 
     reference to specific dollar amounts for the programs. These 
     dollar issues are treated in the funding tables in this 
     report.
       The conferees agree to a provision that would establish a 
     cooperative research program to develop electronic materials 
     for advanced radar applications. The conferees recognize the 
     emerging importance of advanced electronic materials on 
     future military systems, including advanced radar systems and 
     other applications across services.
       The provision would direct the Director of Defense Research 
     and Engineering, the Secretary of the Navy, the Director of 
     Defense Advanced Research Projects Agency (DARPA), and other 
     appropriate services and agencies to enter into a 
     collaborative agreement in order to coordinate ongoing 
     efforts within this critical emerging technology area. The 
     conferees believe that the agreement should focus on: (1) 
     activities needed for technology development to extend the 
     range and sensitivity of naval radars, including high 
     frequency and high power wide band gap semiconductor 
     materials and devices; and (2) acquisition systems to 
     accelerate the deployment of the new technology.
       The conferees expect the agreement to be constructed in a 
     manner such that the Services and Agencies will increase 
     financial investments to support necessary research, 
     technology transition, and technology insertion activities. 
     The conferees are concerned that, despite a recognition 
     within the Navy of the importance of this emerging 
     technology, the Office of Naval Research budget submission 
     includes only very limited funding for wide band gap 
     electronics research.
       In addition, the conferees expect that any agreement will 
     enable DARPA to maintain the flexibility to invest in a 
     variety of research programs and directions associated with 
     wide band gap technologies that will apply to numerous cross-
     service applications. This will preserve DARPA's role of 
     developing revolutionary technologies and capabilities, while 
     remaining relatively unconstrained from near-term 
     requirements.
     Repeal of limitations on total cost of engineering and 
         manufacturing development for F-22 aircraft program (sec. 
         213)
       The Senate bill contained a provision (sec. 211) that would 
     repeal the cost limitation on the engineering and 
     manufacturing development (EMD) phase for the F-22 aircraft 
     program.
       The House amendment contained a provision (sec. 214) that 
     would have raised the cost limitation on the F-22 EMD program 
     by $250.0 million.
       The House recedes with an amendment that would clarify that 
     the repeal of the cost limitation would apply only to the EMD 
     phase of the program.
     Joint biological defense program (sec. 214)
       The Senate bill contained a provision (sec. 214) that would 
     extend through fiscal year 2002 section 217 (a) of the Floyd 
     D. Spence National Defense Authorization Act for Fiscal Year 
     2001 to define permissible obligations and identify reports 
     to be provided to Congress concerning procurement of anthrax 
     vaccine.
       The House amendment contained no similar provision.
       The House recedes.

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     Cooperative Department of Defense-Department of Veterans 
         Affairs Medical Research Program (sec. 215)
       The House amendment contained a provision (sec. 211) that 
     would authorize funding for the cooperative Department of 
     Defense/Department of Veterans Affairs medical research 
     program.
       The Senate bill contained no similar provision.
       The Senate recedes with an amendment.
       The conferees agree to authorize $2.5 million in PE 
     63738D8Z for the cooperative Department of Defense/Department 
     of Veterans Affairs medical research program for research on 
     the efficacy of antiarrythmic drugs with implantable 
     cardioverter defibrillators. The conferees direct the 
     Secretary of Defense to transfer such amount no later than 30 
     days after the date of the enactment of this Act.
     C-5 aircraft reliability enhancement and reengining program 
         (sec. 216)
       The Senate bill contained a provision (sec. 212) that would 
     require the Secretary of the Air Force to ensure that 
     engineering and manufacturing development (EMD) under the C-5 
     aircraft reliability enhancement and reengining program 
     (RERP) includes kit development for an equal number of C-5A 
     and C-5B aircraft. The Air Force program envisioned a total 
     of four aircraft in the RERP EMD program.
       The House amendment contained no similar provision.
       The House recedes with an amendment that would require the 
     Secretary to include at least one aircraft from among the 74 
     C-5A aircraft in the C-5 RERP EMD program.

                 Subtitle C--Ballistic Missile Defense

       Transfer of responsibility for procurement for missile 
     defense programs from Ballistic Missile Defense Organization 
     to military departments (sec. 231)
       The House amendment contained a provision (sec. 231) that 
     would amend section 224 of title 10, United States Code, to 
     change the term ``procurement'' to the term ``research, 
     development, test and evaluation'' with respect to the 
     display of budget amounts in budget requests for the 
     Ballistic Missile Defense Organization (BMDO). The provision 
     would also require the Secretary of Defense to establish 
     criteria for the transfer of ballistic missile defense 
     programs from the BMDO to the military departments and to 
     submit these criteria to the congressional defense 
     committees. Prior to the transfer of such a program, the 
     Secretary would be required to notify Congress of his intent 
     to make such a transfer and to certify that the program had 
     met the criteria for transfer. The provision would permit 
     such a transfer 60 days after Congress is notified.
       The Senate bill contained no similar provision.
       The Senate recedes with an amendment that would require the 
     Secretary of Defense to ensure that, for any transferred 
     program, all appropriate conforming changes are made to 
     proposed or projected funding allocations in the future years 
     defense program. This will ensure that the funding is 
     transferred with a program from the BMDO to a military 
     department. The amendment would also require that, before a 
     program is transferred, the roles and responsibilities are 
     clearly defined for follow-on research, development, test and 
     evaluation related to system improvement for that program.
       The budget request proposed transferring the Patriot PAC-3 
     and the Medium Extended Air Defense System (MEADS) to the 
     Army, and the Navy Area Defense system to the Navy. This 
     provision would delay any such transfer until the 
     requirements of the provision have been met. Consequently, 
     the conferees agree to authorize funding for these ballistic 
     missile defense programs within the BMDO accounts, and not 
     with the military departments.
     Program elements for Ballistic Missile Defense Organization 
         (sec. 232)
       The House amendment contained a provision (sec. 232) that 
     would repeal section 223 of title 10, United States Code, 
     which established program elements for ballistic missile 
     defense (BMD) programs.
       The Senate bill contained no similar provision.
       The Senate recedes with an amendment that would revise the 
     program elements for ballistic missile defense and require 
     certain information and reviews concerning BMD activities.
       The amendment would establish six new functional program 
     elements and require that additional program elements be 
     established for BMD programs entering into engineering and 
     manufacturing development (EMD).
       The amendment would require the Secretary of Defense to 
     establish cost, schedule, testing and performance goals for 
     BMD programs for the period covered by the future years 
     defense program and to submit a statement of those goals to 
     Congress each year.
       The amendment would require the Secretary of Defense to 
     submit to Congress each year an annual program plan for BMD 
     programs that enter EMD or the equivalent phase, including a 
     funding profile that displays estimated total funding and 
     expenditures for significant procurement, construction and 
     research and development, as well as a program schedule for 
     significant procurement, construction, research and 
     development, flight tests, and other significant test 
     activities. Information included in annual budget 
     justification documents need not be included in the plan.
       The amendment would require that specified Department of 
     Defense officials and elements review and comment on the 
     development of goals and the annual program plan required in 
     the provision.
       The amendment would require the Director of the Ballistic 
     Missile Defense Organization (BMDO) to develop a plan to 
     ensure that each critical technology for a BMD program is 
     demonstrated in an appropriate environment before entering 
     operational service. The Director of Operational Test and 
     Evaluation would review and comment on the plan.
       The amendment would require, at the end of fiscal years 
     2002 and 2003, the Comptroller General of the United States 
     to assess the extent to which the BMDO achieved the goals 
     established by the Secretary of Defense for BMD programs, as 
     required by the provision, and to report to Congress on the 
     assessment.
       The amendment would also require the Director of 
     Operational Test and Evaluation to assess each year the 
     adequacy and sufficiency of the BMDO test program for the 
     preceding year, and to report to Congress on the assessment.
       Ballistic missile defense budget justification
       The President's budget proposed moving most ballistic 
     missile defense programs into Research, Development, Test and 
     Evaluation, Defense-Wide, and grouping them primarily into 
     five large program elements.
       The conferees are concerned that this year's budget 
     justification documentation does not include the level of 
     detail provided in past years for many of the projects within 
     the new program elements. While supportive of the 
     administration's intent to experiment with and test new 
     technologies prior to committing to system development and 
     acquisition, the conferees expect to receive appropriate 
     levels of detailed funding, schedule, and test event 
     information as required by annual budget justification 
     reporting guidelines.
       In addition to information provided for those programs that 
     have entered engineering and manufacturing development, or an 
     equivalent phase as described in the legislative provision, 
     the Secretary of Defense shall ensure that each year's budget 
     justification documents include the following information for 
     programs and projects in earlier stages of research and 
     development:
       (1) funding appropriated in the previous year;
       (2) the expected funding requirement for the next six 
     years, by year; and
       (3) detailed schedule including hardware and software 
     deliveries, to the extent known, and planned decision points 
     and test events, at least through completion of the planned 
     testing and evaluation of the prototype or experiment.
       This information shall be provided as part of the annual 
     program plan report required by the provision, for programs 
     and projects as identified above and any program or project 
     identified as a matter of special interest, provided the 
     information is not already included in budget justification 
     materials accompanying the annual budget request.
       Ballistic missile defense programs are among the most 
     technologically challenging and complex in the Department of 
     Defense. The exploration of leading edge technologies 
     associated with missile defense programs often involves 
     significant costs. Department of Defense directives and 
     instructions (e.g., Department of Defense Instruction 5000.2) 
     require the compilation of acquisition cost, life-cycle cost, 
     and total ownership costs for defense projects and programs 
     where available and approved. The conferees direct the 
     Department of Defense to fully comply with the requirements 
     of these DOD directives and instructions, including 
     Department of Defense Instruction 5000.2.
     Support of ballistic missile defense activities of the 
         Department of Defense by the National Defense 
         Laboratories of the Department of Energy (sec. 233)
       The House amendment contained a provision (sec. 233) that 
     would, at the discretion of the Director of the Ballistic 
     Missile Defense Organization (BMDO), make available from 
     funds authorized to be appropriated for the BMDO up to $25.0 
     million for research development and demonstration activities 
     at the national laboratories of the Department of Energy 
     National Nuclear Security Administration (NNSA) in support of 
     the missions of the BMDO. The funds would be available 
     subject to the provision of matching funds by the NNSA. 
     Activities funded using this authority would be conducted 
     under terms of the September 14, 2001 Memorandum of 
     Understanding (MOU) between the Director of the BMDO and the 
     Administrator of the National Nuclear Security Administration 
     for use of the national laboratories by the BMDO.
       The Senate bill contained no similar provision.
       The Senate recedes.
       The provision would authorize the Director of the BMDO to 
     use funds available to

[[Page 25487]]

     BMDO, on a discretionary basis, to utilize the national 
     laboratories of the NNSA under the terms and conditions of 
     the MOU. The terms of this MOU require that jointly-funded 
     work done pursuant to the MOU be mutually beneficial to the 
     missions of the two Departments.
       The conferees note that the NNSA laboratories do a 
     substantial amount of work for the Department of Defense in 
     their role as federally funded research and development 
     centers on a Work for Others basis. The conferees do not 
     intend for this provision in any way to affect the ability of 
     the BMDO to contract with the NNSA laboratories to conduct 
     work under the Work for Others program. On the contrary, the 
     conferees urge the Director to look closely at the 
     capabilities of the NNSA laboratories and to utilize these 
     capabilities fully.
     Missile defense testing initiative (sec. 234)
       The House amendment contained a provision (sec. 234) that 
     would establish certain guidelines and requirements for the 
     ballistic missile defense testing program of the Department 
     of Defense.
       The Senate bill contained no similar provision.
       The Senate recedes with a clarifying amendment.
     Construction of test bed facilities for missile defense 
         system (sec. 235)
       The House amendment contained a provision (sec. 235) that 
     would authorize the Secretary of Defense to use up to $500.0 
     million of funds appropriated for research, development, test 
     and evaluation for fiscal years after fiscal year 2001 that 
     are available for the Ballistic Missile Defense Organization 
     to carry out construction projects, including construction of 
     facilities ``of general utility,'' to establish and operate 
     the missile defense system test bed. The provision would also 
     authorize the Secretary of Defense to use such funds to 
     provide assistance to communities to meet increased needs for 
     services or facilities resulting from construction or 
     operation of the test bed, subject to certain conditions.
       The Senate bill contained no similar provision.
       The Senate recedes with an amendment that would make clear 
     that funds may be used for all construction projects 
     necessary to establish and operate the test bed, but removes 
     the reference to facilities ``of general utility.'' The 
     conferees understand that this authorization would permit the 
     construction of such facilities as a power generation plant, 
     a heating plant and roads. The conferees believe that the 
     term ``of general utility'' could have been construed to mean 
     facilities not necessary for establishing or operating the 
     test bed, which would be inconsistent with congressional 
     intent.
       The amendment would also limit the use of funds for 
     community assistance to funds appropriated for fiscal year 
     2002. If the Secretary of Defense determines that additional 
     authority is needed to use funds for community assistance, 
     the conferees direct the Secretary to provide full and 
     specific justification for such authority.

   Subtitle D--Air Force Science and Technology for the 21st Century

       Air Force science and technology for the 21st Century Act 
     (sec. 251-252)
       The House amendment contained two provisions (secs. 251 and 
     252) that establish a sense of Congress regarding the Air 
     Force science and technology development planning process.
       The Senate bill contained no similar provisions.
       The Senate recedes.
     Study and report on effectiveness of Air Force science and 
         technology program changes (sec. 253)
       The House amendment contained a provision (sec. 253) that 
     would require the Air Force and the National Research Council 
     to study how changes to the Air Force science and technology 
     program implemented over the past two years affect the future 
     capabilities of the Air Force.
       The Senate bill contained no similar provision.
       The Senate recedes with a clarifying amendment.
       The conferees direct the Air Force to ensure that the 
     National Research Council is provided sufficient resources to 
     adequately conduct the study called for by the provision.

                       Subtitle E--Other Matters

     Establishment of unmanned aerial vehicle joint operational 
         test bed system (sec. 261)
       The House amendment contained a provision (sec. 241) that 
     would require the Commander in Chief, U.S. Joint Forces 
     Command to establish a joint operational test bed (JOTB) 
     system to evaluate and ensure joint interoperability of 
     unmanned aerial vehicle (UAV) systems. The provision would 
     also direct the Secretary of the Navy to transfer certain 
     Predator UAVs and related equipment to the Joint Forces 
     Command for use in the JOTB system.
       The Senate bill contained no similar provision.
       The Senate recedes with an amendment that would delete the 
     requirement for the transfer, but ensure that the Commander-
     in-Chief, U.S. Joint Forces Command controls the priority for 
     use of these predators and UAVs.
     Demonstration project to increase small business and 
         university participation in Office of Naval Research 
         efforts to extend benefits of science and technology 
         research to fleet (sec. 262)
       The House amendment contained a provision (sec. 242) that 
     would require the Chief of Naval Research to carry out a 
     demonstration project to increase access to Navy facilities 
     of small businesses and universities that are engaged in 
     science and technology research beneficial to the fleet.
       The Senate bill contained no similar provision.
       The Senate recedes with an amendment that would ensure that 
     the Secretary of the Navy has discretion over which Navy 
     facilities to make available for the demonstration project 
     and is able to charge an appropriate fee for the use of these 
     facilities.
       The conferees strongly encourage the Chief of Naval 
     Research to reach out to small, high-technology companies and 
     encourage them to participate in this demonstration program. 
     As a part of this outreach effort, the conferees encourage 
     the Chief of Naval Research to consider the use of third-
     party partners, where appropriate, to help create and 
     maintain contacts and relationships with the high-technology 
     communities.
     Communication of safety concerns from operational test and 
         evaluation officials to program managers (sec. 263)
       The Senate bill contained a provision (sec. 232) that would 
     amend section 139 of title 10, United States Code. The 
     provision would add a subsection requiring the Director of 
     Operational Test and Evaluation to ensure that any safety 
     concerns found during the operational test and evaluation of 
     a weapon system under a major defense acquisition program are 
     communicated in a timely manner to the program manager 
     responsible for the acquisition of that weapon system.
       The House amendment contained no similar provision.
       The House recedes.

                   Legislative Provisions Not Adopted

     Big Crow
       The Senate bill contained a provision (sec. 216) that would 
     authorize funding for the Big Crow program.
       The House amendment contained no similar provision.
       The Senate recedes on the provision.
       The conferees agree to authorize an increase of $2.0 
     million in PE 65118D8Z for the Big Crow program for test and 
     evaluation activities to support electronic warfare, space 
     operations, and other missions.
     C-5 aircraft modernization
       The House amendment contained a provision (sec. 215) that 
     would restore a reduction of $30.0 million in the amount 
     requested in Research, Development, Test, and Evaluation, Air 
     Force, for re-engining and avionics modernization programs 
     for the C-5 aircraft.
       The Senate bill contained no similar provision.
       The House recedes.
       The conferees agree to authorize the budget request.
     Enhanced scramjet mixing
       The Senate bill contained a provision (sec. 203) that would 
     authorize funding for enhanced scramjet mixing.
       The House amendment contained no similar provision.
       The Senate recedes on the provision.
       The conferees agree to authorize an increase of $2.5 
     million in PE 62303A for research in enhanced scramjet 
     mixing.
     Management responsibility for Navy mine countermeasures 
         programs
       The House amendment contained a provision (sec. 243) that 
     would extend the time period during which the Secretary of 
     Defense and the Chairman of the Joint Chiefs would have to 
     provide an annual certification about the adequacy of the 
     Navy's mine countermeasures programs. The provision would 
     change the ending date of that requirement from fiscal year 
     2003 to fiscal year 2008.
       The Senate bill contained no similar provision.
       The House recedes.
     Review of alternatives to the V-22 Osprey aircraft
       The Senate bill contained a provision (sec. 213) that would 
     require the Under Secretary of Defense (Acquisition, 
     Technology, and Logistics) to conduct a review of Marine 
     Corps and Special Operations Command requirements that are 
     expected to be met by the V-22 Osprey aircraft in order to 
     identify potential alternatives to the V-22 in the event that 
     the V-22 program were to be terminated. The provision would 
     also set aside $5.0 million that would be available to 
     conduct this review.
       The House amendment contained no similar provision.
       The Senate recedes.
     Special operations forces command, control, communications, 
         computers, and intelligence systems threat warning and 
         situational awareness program
       The Senate bill contained a provision (sec. 204) that would 
     authorize an increase of $2.8 in PE 116405BB for the special 
     operations forces command, control, communications,

[[Page 25488]]

     computers, and intelligence (SOF C4I) systems threat warning 
     and situational awareness (PRIVATEER) program.
       The House amendment contained no similar provision.
       The Senate recedes on the provision.
       The conferees agree to authorize an increase of $1.0 
     million in PE 116444BB for the special operations forces 
     command, control, communications, computers, and intelligence 
     (SOF C4I) systems threat warning and situational awareness 
     (PRIVATEER) program, as noted elsewhere in this conference 
     report.
     Technology ``Challenge'' program
       The House amendment contained a provision (sec. 244) that 
     would establish a technology ``Challenge'' program for the 
     acceleration of innovative technology in defense acquisition 
     programs.
       The Senate bill contained no similar provision.
       The House recedes.
     Technology transition initiative
       The Senate bill contained a provision (sec. 231) that would 
     establish a technology transition initiative within the 
     Department of Defense.
       The House amendment contained no similar provision.
       The Senate recedes.
       The conferees direct the Department of Defense to continue 
     and expand efforts to accelerate the rapid transition of 
     technologies into operational environments.

                  Title III--Operation and Maintenance

     Overview
       The budget request for fiscal year 2002 requested an 
     authorization of $125,350.0 million for operation and 
     maintenance programs and $2,458.4 million for working capital 
     fund accounts for the Department of Defense for fiscal year 
     2002.
       The Senate bill would authorize $125,386.3 million for 
     operation and maintenance accounts and $2,408.1 million for 
     working capital fund accounts.
       The House amendment would authorize $124,025.0 million for 
     operation and maintenance accounts and $2,359.7 million for 
     working capital fund accounts.
       The conferees recommend an authorization of $123,259.9 
     million for the operation and maintenance accounts and 
     $1,656.4 million for the working capital fund accounts of the 
     Department of Defense for fiscal year 2002. The conferees 
     agree to a reduction of $295.6 million in the Defense Working 
     Capital Fund to reflect lower fuel prices; and a reduction of 
     $125.0 million to reflect adjustments in utility prices, to 
     be allocated proportionately among the Army, Navy, Marine 
     Corps, Air Force and Defense-Wide accounts. Unless noted 
     explicitly in the statement of managers, all funding changes 
     are made without prejudice.
       The following table lists the amounts authorized to be 
     appropriated for each program in the operation and 
     maintenance accounts of the Department of Defense.

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     Management reform initiatives
       The conferees agree to reduce operations and maintenance 
     accounts by $1.07 billion to reflect savings from management 
     reform initiatives, as discussed in Title VIII.
     Combating terrorism initiative
       The budget request included $5.6 billion to continue 
     improving the ability of U.S. forces to deter and defend 
     against the growing terrorist threat.
       The House amendment would authorize the requested amount.
       The Senate bill would authorize the $5.6 billion request, 
     but included an additional $217.2 million to further improve 
     U.S. capabilities to combat terrorism. Of this increase, 
     $108.0 million was added to operation and maintenance 
     accounts. This included: $77.7 million to address force 
     protection vulnerabilities on Army installations; $14.3 
     million for enhanced counterterrorism training for U.S. 
     Special Operations Forces; $10.0 million for the combating 
     terrorism readiness initiatives fund for combatant commands; 
     and $6.0 million to purchase hand-held explosive detectors 
     for seagoing Navy vessels.
       The conferees note that many of the vulnerabilities to 
     terrorist attacks have become high priorities for the 
     Department of Defense. This is reflected in the fact that a 
     significant portion of the additional funds included in the 
     Senate bill have already been funded in the fiscal year 2001 
     emergency supplemental appropriations act. Specifically, the 
     conferees understand that, as of the end of September 2001, 
     the Army had received $257.0 million in supplemental funding 
     for force protection improvements at its installations, and 
     the Special Operations Command had received $151.0 million 
     for combating terrorism, including immediate counterterrorism 
     training needs. The conferees agree, therefore, to authorize 
     an additional $10.0 million for the combatant commands' 
     Combating Terrorism Readiness Initiatives Fund, and $3.0 
     million to purchase hand-held explosive detectors for the 
     Navy.
     Commercial imagery to support military requirements
       The budget request included $30.0 million for purchasing 
     commercial imagery products in support of national needs.
       The Senate bill would authorize an increase of $10.0 
     million to establish prototype contracts that the National 
     Imagery and Mapping Agency (NIMA) would use to establish 
     stronger ties with the private sector to satisfy commercial 
     satellite imagery needs. The Senate report (S. Rept. 107-62) 
     indicated that NIMA officials have suggested that the NIMA 
     might enter into prototype contracts with commercial remote 
     sensing entities to provide commercial satellite imagery for 
     the NIMA.
       The conferees understand that, under such an approach, the 
     NIMA would contract with one or more U.S. commercial 
     satellite imagery providers to provide a portion of this 
     imagery directly to a network of geospatial production 
     companies, each of which supports NIMA customers with 
     interests in a particular region.
       The House amendment would approve the budget request.
       The conferees believe that the United States should 
     prioritize the use of commercial remote sensing as envisioned 
     in Presidential Decision Directive-23. Moreover, the 
     conferees believe that allocating certain satellite imagery 
     requirements to the U.S. commercial remote sensing industry 
     will allow the government to focus its own assets on more 
     demanding intelligence requirements. The conferees continue 
     to support using commercial satellite imagery and geospatial 
     products and services to satisfy the non-time-critical low 
     and medium resolution requirements of the Secretary of 
     Defense, including the regional commanders in chief, and the 
     intelligence community.
       The conferees also understand that the administration is 
     developing a commercial imagery strategy to support these 
     requirements and endorses the development and implementation 
     of such a strategy. The conferees believe, however, that the 
     U.S. Government must become a reliable, long-term customer of 
     commercial satellite imagery if the strategy is to be 
     successful. The conferees recognize that there are budgetary 
     and contracting issues, but do not believe these are beyond 
     solution.
       Therefore, the conferees direct the Secretary of Defense 
     and the Director of Central Intelligence to plan and carry 
     out a program to purchase a significant portion of their non-
     time-critical low and medium resolution satellite imagery 
     requirements from the U.S. commercial remote sensing industry 
     by 2005.
       The conferees note that substantial resources relating to 
     commercial imagery activities have been included in the 
     Emergency Terrorism Response Supplemental Appropriations Act, 
     2001. Therefore, the conferees recommend no additional 
     funding above the President's budget request for fiscal year 
     2002. The conferees expect that the NIMA and the 
     administration will make appropriate use of these funds to 
     implement this commercial imagery strategy.

                     Legislative Provisions Adopted

              Subtitle A--Authorization of Appropriations

     Authorization of appropriations (secs. 301-302)
       The Senate bill contained provisions (secs. 301-302) that 
     would authorize the recommended fiscal year 2002 funding 
     levels for all operation and maintenance and working capital 
     fund accounts.
       The House amendment contained similar provisions (secs. 
     301-302).
       The conference agreement includes these provisions.
     Armed Forces Retirement Home (sec. 303)
       The Senate bill contained a provision (sec. 303) that would 
     authorize the appropriation of $71.4 million from the Armed 
     Forces Retirement Home Trust Fund for fiscal year 2002 and 
     $22.4 million for the development and construction of a 
     blended use, multicare facility and acquisition of land at 
     the Naval Home.
       The House amendment contained a similar provision (sec. 
     303).
       The House recedes with a clarifying amendment.
     Transfer from National Defense Stockpile Transaction Fund 
         (sec. 304)
       The House amendment contained a provision (sec. 304) that 
     would authorize the transfer of $150.0 million from the 
     National Defense Stockpile Transaction Fund to operation and 
     maintenance accounts of the Army, Navy and Air Force.
       The Senate bill contained no similar provision.
       The Senate recedes.
     Funds for renovation of Department of Veterans Affairs 
         facilities adjacent to Naval Training Center, Great 
         Lakes, Illinois (sec. 305 )
       The Senate bill contained a provision (sec. 309) that would 
     authorize the Secretary of the Navy to use up to $2.0 million 
     to fund the renovation and relocation of Department of 
     Veterans Affairs facilities in the proximity of the Naval 
     Training Center, Great Lakes, Illinois. The provision would 
     make the authorization contingent on the Secretary of 
     Veterans Affairs and the Secretary of the Navy entering into 
     an agreement to provide 48 acres of Department of Veterans 
     Affairs property for the expansion of the Naval Training 
     Center.
       The House amendment contained no similar provision.
       The House recedes.
     Defense Language Institute Foreign Language Center expanded 
         Arabic language program (sec. 306)
       The Senate bill contained a provision (sec. 338) that would 
     authorize $650,000 of the amounts available in the Operation 
     and Maintenance, Army, account for an expanded Arabic 
     language program at the Defense Language Institute.
       The House amendment contained no similar provision.
       The House recedes.

                  Subtitle B--Environmental Provisions

     Inventory of unexploded ordnance, discarded military 
         munitions, and munitions constituents at defense sites 
         (other than operational ranges) (sec. 311)
       The House amendment contained a provision (sec. 311) that 
     would require the Department of Defense to inventory sites 
     that are known or suspected to contain abandoned military 
     munitions.
       The Senate bill contained no similar provision.
       The Senate recedes with an amendment that would: (1) 
     provide that the inventory requirement does not apply to 
     operating storage and manufacturing facilities, operational 
     ranges, or locations outside the United States; (2) clarify 
     the definitions of military munitions, operational ranges, 
     unexploded ordnance and other key terms; (3) require 
     consultation with representatives of States and Tribes in the 
     development of a protocol for site prioritization; (4) 
     clarify that the prioritization of sites does not impair, 
     alter or diminish the Department's obligations under federal 
     or state law; and (5) extend the time period available for 
     the Department to complete the inventory and prioritization 
     of sites.
     Establishment of new program element for remediation of 
         unexploded ordnance, discarded military munitions, and 
         munitions constituents (sec. 312)
       The Senate bill contained a provision (sec. 311) that would 
     require the Secretary of Defense to establish within each 
     environmental restoration account established for the 
     Department of Defense a sub-account for the remediation of 
     unexploded ordnance and related constituents.
       The House amendment contained no similar provision.
       The House recedes with an amendment that would: (1) 
     establish program elements, rather than sub-accounts, within 
     each of the environmental restoration accounts; and (2) 
     clarify that the accounts cover discarded munitions as well 
     as unexploded ordnance and related constituents.
     Assessment of environmental remediation of unexploded 
         ordnance, discarded military munitions, and munitions 
         constituents (sec. 313)
       The Senate bill contained a provision (sec. 312) that would 
     require the Department of Defense to conduct a comprehensive 
     assessment and develop a plan for addressing unexploded 
     ordnance, discarded munitions and related constituents on 
     Department of Defense facilities and installations.

[[Page 25519]]

       The House amendment contained no similar provision.
       The House recedes with an amendment that would: (1) 
     harmonize the terminology and scope of this provision with 
     other provisions related to unexploded ordnance; and (2) 
     delay from calendar year 2002 to calendar year 2003 the due 
     date of the required report. The conference report would 
     require the Department of Defense to provide an interim 
     report containing all available information in calendar year 
     2002.
     Conformity of surety authority under environmental 
         restoration program with surety authority under CERCLA 
         (sec. 314)
       The Senate bill contained a provision (sec. 316) that would 
     eliminate the sunset date for the surety provisions in 
     section 2701 of title 10, United States Code.
       The House amendment contained no similar provision.
       The House recedes with a technical amendment to the title.
     Elimination of annual report on contractor reimbursement for 
         costs of environmental response actions (sec. 315)
       The House amendment contained a provision (sec. 315) that 
     would remove the requirement for the Department of Defense to 
     report to Congress on contractor reimbursement for costs of 
     environmental response actions for the top 20 defense 
     contractors.
       The Senate bill contained no similar provision.
       The Senate recedes with a technical amendment.
     Pilot program for sale of air pollution emission reduction 
         incentives (sec. 316)
       The Senate bill contained a provision (sec. 314) that would 
     extend through September 30, 2003, the authority for the 
     Department of Defense to conduct a pilot program for the sale 
     of air pollution emission reduction incentives.
       The House amendment contained no similar provision.
       The House recedes with an amendment requiring the Secretary 
     of Defense to report to Congress on the use of the program.
     Department of Defense energy efficiency program (sec. 317)
       The Senate bill contained a provision (sec. 313) that would 
     require the Secretary of Defense to carry out a program to 
     significantly improve the energy efficiency of the Department 
     of Defense over the next 10 years, and require the Department 
     to report to Congress on progress in implementing that 
     program.
       The House amendment contained a provision (sec. 1050) 
     expressing the sense of Congress that the Department should 
     work to implement fuel efficiency reforms.
       The House recedes with an amendment that would incorporate 
     the sense of Congress into the provision and ensure that the 
     reports to Congress include the same information in the same 
     format as is already generated for executive branch purposes.
     Procurement of alternative fueled and hybrid light duty 
         trucks (sec. 318)
       The Senate bill contained a provision (sec. 317) that would 
     require the Secretary of Defense to purchase hybrid electric 
     vehicles, to the extent that such vehicles are commercially 
     available and meet the Department of Defense's requirements, 
     for the Department of Defense fleet of light duty trucks that 
     is not already subject to the requirement to purchase 
     alternative fueled vehicles pursuant to the Energy Policy Act 
     of 1992 (42 U.S.C. 13212).
       The House amendment contained no similar provision.
       The House recedes with an amendment that would expand the 
     coverage of the provision to all types of hybrid vehicles, to 
     ensure that hybrid vehicles other than hybrid-electric 
     vehicles (such as hybrid hydrogen or fuel-cell vehicles) 
     would also be eligible for purchase under the provision.
     Reimbursement of Environmental Protection Agency for certain 
         response costs in connection with Hooper Sands site, 
         South Berwick, Maine (sec. 319)
       The Senate bill contained a provision (sec. 315) that would 
     authorize the Secretary of Defense to reimburse the 
     Environmental Protection Agency (EPA) for environmental costs 
     incurred by the EPA consistent with the January 2001 
     agreement between the Navy and the EPA.
       The House amendment contained a similar provision (sec. 
     313).
       The House recedes with a technical amendment.
     River mitigation studies (sec. 320)
       The House amendment contained a provision (sec. 314) that 
     would authorize the Secretary of Defense to conduct 
     mitigation studies in two locations and to work with federal, 
     state, local and private entities to address problems that 
     may be identified.
       The Senate bill contained no similar provision.
       The Senate recedes with an amendment that would authorize 
     the studies and require that each study address the extent, 
     if any, to which the Department of Defense (DOD) is 
     responsible for any problems identified. The conference 
     agreement does not authorize the use of DOD funds to address 
     these problems. The conferees understand that any action 
     would be conducted only under existing authority and in 
     accordance with applicable procedures and requirements.

  Subtitle C--Commissaries and Nonappropriated Fund Instrumentalities

     Commissary benefits for new members of the Ready Reserve 
         (sec. 331)
       The Senate bill contained a provision (sec. 662) that would 
     grant new members of the Ready Reserve access to commissary 
     stores.
       The House amendment contained a similar provision (sec. 
     321).
       The House recedes.
     Reimbursement for use of commissary facilities by military 
         departments for purposes other than commissary sales 
         (sec. 332)
       The Senate bill contained a provision (sec. 322) that would 
     require service secretaries to reimburse the Defense 
     Commissary Agency for a share of the depreciated value of a 
     commissary facility when a military department uses, for non-
     commissary related purposes, a facility previously acquired, 
     constructed, or improved with commissary surcharge funds.
       The House amendment contained a similar provision (sec. 
     322).
       The House recedes.
     Public releases of commercially valuable information of 
         commissary stores (sec. 333)
       The Senate bill contained a provision (sec. 323) that would 
     authorize the Secretary of Defense to limit release to the 
     public of commercially valuable commissary store information 
     and to use competitive contracting procedures to sell 
     commissary sales data, customer demographic information, and 
     information pertaining to commissary transactions and 
     operations.
       The House amendment contained no similar provision.
       The House recedes with a clarifying amendment.
     Rebate agreements with producers of foods provided under 
         special supplemental food program (sec. 334)
       The Senate bill contained a provision (sec. 321) that would 
     authorize the Secretary of Defense to enter into annual 
     contracts for rebates with producers of food products for the 
     exclusive right to provide food in commissary stores as 
     supplemental food for the Women, Infants, and Children (WIC) 
     Overseas Program.
       The House amendment contained no similar provision.
       The House recedes with a clarifying amendment.
     Civil recovery for nonappropriated fund instrumentality costs 
         related to shoplifting (sec. 335)
       The House amendment contained a provision (sec. 323) that 
     would authorize the military exchanges to pursue federal debt 
     collection remedies against shoplifters in the military 
     exchange stores.
       The Senate bill contained no similar provision.
       The Senate recedes.

                 Subtitle D--Workforce and Depot Issues

     Revision of authority to waive limitation on performance of 
         depot-level maintenance (sec. 341)
       The Senate bill contained a provision (sec. 335) that would 
     elevate the current authority to waive limitations on 
     performance of depot-level maintenance to the Secretary of 
     Defense. The provision also required the Secretary to submit 
     to the Congress a strategic plan on the operations of public 
     depots.
       The House amendment contained no similar provision.
       The House recedes with an amendment that would remove the 
     statutory requirement for a report. The conferees are aware, 
     however, that the Air Force is developing a strategic plan 
     for the future operation and use of the Air Logistics 
     Centers. The conferees believe that such a plan is essential, 
     and direct the Secretary of the Air Force to submit this plan 
     to the Committees on Armed Services of the Senate and the 
     House of Representatives not later than January 31, 2002.
     Exclusion of certain expenditures from limitation on private 
         sector performance of depot-level maintenance (sec. 342)
       The House amendment contained a provision (sec. 335) that 
     would establish a five-year pilot program at three Air Force 
     depots. The program would exclude work performed in a public 
     depot under a public-private partnership from restrictions 
     included in title 10, United States Code relating to private 
     sector work.
       The Senate bill contained a similar provision (sec. 332).
       The House recedes with an amendment that would expand the 
     program to all Centers of Industrial and Technical Excellence 
     and set the program length at four years.
     Protections for purchasers of articles and services 
         manufactured or performed by working-capital funded 
         industrial facilities of the Department of Defense (sec. 
         343)
       The House amendment contained a provision (sec. 336) that 
     would permit a private sector entity that has contracted with 
     the public sector in a working capital-funded activity of the 
     Department of Defense to file a claim if the public sector 
     fails to comply with quality, schedule, or cost performance 
     as required by the contract.
       The Senate bill contained no similar provision.

[[Page 25520]]

       The Senate recedes.
     Revision of deadline for annual report on commercial and 
         industrial activities (sec. 344)
       The Senate bill contained a provision (sec. 1024) that 
     would change the due date for the Commercial Activities 
     Report to Congress, required by section 2461(g) of title 10, 
     United States Code, from February 1 to June 30 of each year, 
     as requested by the Department of Defense.
       The House amendment contained no similar provision.
       The House recedes.
     Pilot manpower reporting system in Department of the Army 
         (sec. 345)
       The House amendment contained a provision (sec. 333) that 
     would require the Department of the Army to report annually 
     on the size of its contractor workforce.
       The Senate bill contained no similar provision.
       The Senate recedes with an amendment that would require the 
     Secretary of the Army to provide to Congress an annual report 
     describing the use of non-federal entities that provide 
     services to the Department of the Army during fiscal years 
     2002 through 2004. The amendment would also clarify that the 
     Secretary of the Army would be required to use existing data 
     collection and reporting systems to compile this report, and 
     would not be permitted to impose any new data requirements on 
     non-federal entities.
       The conferees note that a similar provision, applicable to 
     all three military services, was included in section 343 of 
     the National Defense Authorization Act for Fiscal Year 2000. 
     The Navy and the Air Force complied with this provision 
     without establishing any new data collection systems or 
     imposing any new data requirements on contractors. The 
     conferees expect the Army to implement the new provision in a 
     similar manner, without establishing any new data collection 
     systems or imposing any new data requirements on contractors.
     Development of Army Workload and Performance System and 
         Wholesale Logistics Modernization Program (sec. 346)
       The House amendment contained a provision (sec. 334) that 
     prohibited the Secretary of the Army from expanding the 
     Wholesale Logistics Modernization Program (WLMP) beyond the 
     original legacy systems until those legacy systems have been 
     replaced.
       The Senate bill contained no similar provision.
       The Senate recedes with an amendment that requires the 
     Secretary of the Army to maintain the functionality and 
     identity of the Army Workload and Performance System (AWPS) 
     as the WLMP moves forward. The Secretary of Army will also 
     ensure that the AWPS continues to be the standard Army-wide 
     manpower system.
       The amendment requires an annual report to the Congress on 
     AWPS implementation. The report will be evaluated by the 
     General Accounting Office.

                Subtitle E--Defense Dependents Education

     Assistance to local educational agencies that benefit 
         dependents of members of the armed forces and Department 
         of Defense civilian employees (sec. 351)
       The House amendment contained a provision (sec. 341) that 
     would authorize $30.0 million for educational assistance to 
     local education agencies where the standard for the minimum 
     level of education within the state could not be maintained 
     because of the large number of military connected students, 
     and $1.0 million for payments to local education agencies to 
     assist in adjusting to reductions in military dependent 
     students resulting from the closure or realignment of 
     military installations.
       The Senate bill contained a similar provision (sec. 304) 
     that would authorize $35.0 million for impact aid to local 
     education agencies.
       The Senate recedes.
     Impact aid for children with severe disabilities (sec. 352)
       The Senate bill contained a provision (sec. 305) that would 
     authorize $5.0 million for continuation of the Department of 
     Defense assistance program to local educational agencies that 
     benefit dependents with severe disabilities.
       The House amendment contained no similar provision.
       The House recedes with a technical amendment.
     Availability of auxiliary services of defense dependents' 
         education system for dependents who are home school 
         students (sec. 353)
       The House amendment contained a provision (sec. 342) that 
     would require the Department of Defense (DOD) to provide 
     support for home schooled students who are otherwise eligible 
     to attend DOD schools.
       The Senate bill contained no similar provision.
       The Senate recedes with an amendment that would remove 
     participation in individual academic courses from the 
     services available to dependents who are home schooled and 
     add a requirement that the home schooled students must comply 
     with the standards of conduct applicable to other students 
     using or receiving the same auxiliary services.
     Comptroller General study of adequacy of compensation 
         provided for teachers in the Department of Defense 
         overseas dependents' schools (sec. 354)
       The Senate bill contained a provision (sec. 1122) that 
     would require the Comptroller General to conduct a study and 
     report on whether compensation for teachers in the defense 
     dependents' education program is adequate for recruiting and 
     retaining high quality teachers, and whether changes in the 
     methodology for computing teacher pay are necessary.
       The House amendment contained a similar provision (sec. 
     343) that would require the Secretary of Defense to conduct 
     the study.
       The House recedes with an amendment that would change the 
     date to May 1, 2002, that the Comptroller General must report 
     to Congress on the results of the study.

                       Subtitle F--Other Matters

     Availability of excess defense personal property to support 
         Department of Veterans Affairs initiative to assist 
         homeless veterans (sec. 361)
       The House amendment contained a provision (sec. 351) that 
     would permit the Secretary of Defense to make excess 
     clothing, shoes, sleeping bags, and related non-lethal excess 
     supplies available, without reimbursement, to the Secretary 
     of Veterans Affairs for distribution to homeless veterans and 
     programs assisting homeless veterans.
       The Senate bill contained no similar provision.
       The Senate recedes.
       The conferees direct the Secretary of Defense to ensure 
     that adequate safeguards are in place to prevent procurement 
     of those items and declaring them excess and available for 
     distribution shortly after receipt.
     Incremental implementation of Navy-Marine Corps Intranet 
         contract (sec. 362)
       The House amendment contained a provision (sec. 352) that 
     permanently excluded the Marine Corps from the Navy-Marine 
     Corps Intranet (NMCI) program, and extended exclusions for 
     naval aviation depots and shipyards through fiscal year 2002.
       The Senate bill contained a provision (sec. 334) that 
     codified the Department of Defense's plan to rephase the 
     implementation of the NMCI program, based on achievement of 
     specified testing and performance milestones.
       The House recedes with an amendment that more fully 
     describes additional phase-in authority for the NMCI. The 
     amendment allows the Secretary of the Navy to contract for an 
     additional 100,000 work stations (the ``second increment''), 
     pending joint approval by the Under Secretary of Defense 
     (Acquisition, Technology, and Logistics) and the Department 
     of Defense (DOD) Chief Information Officer (CIO). This 
     approval is dependent on successful completion of a three-
     phase customer test and evaluation (known as CT&E3), as 
     detailed in the Master Test Plan maintained by the NMCI 
     contractor. Tests shall be conducted on a representative, 
     statistically-significant sample population of NMCI work 
     stations. The validity of the results will be independently 
     evaluated and confirmed by the Institute for Defense 
     Analyses.
       The amendment permits the Secretary of the Navy to order a 
     third increment of an additional 150,000 work stations, 
     pending successful performance of at least 20,000 work 
     stations operating on the NMCI network. Certification of this 
     performance must be made by the Navy CIO to the Secretary of 
     the Navy and the DOD CIO. The amendment further restricts the 
     NMCI contractor from assuming responsibility for more than 
     half of the work stations allowed to be ordered in the third 
     increment until the Navy CIO certifies to the Secretary of 
     the Navy and the DOD CIO that the work stations for the full 
     headquarters at the Naval Air Systems Command (NAVAIR) are 
     meeting applicable service-level agreements.
       The amendment also requires the Secretary of the Navy to 
     submit to Congress a report on the scope and status of 
     testing and implementation of the NMCI network at the point 
     at which the second and third increments of work stations are 
     ordered. The same information shall be submitted when the 
     performance requirements for NAVAIR headquarters have been 
     met and authority for the NMCI contractor to assume 
     responsibility for the remaining 75,000 seats in the third 
     increment is granted. The conferees intend for these reports 
     to be complete but succinct, and to the extent possible to 
     draw upon information already reported within the Department 
     of Defense.
       The amendment also requires the General Accounting Office 
     to conduct a study of the impact of NMCI implementation on 
     the rate structure of naval shipyards and depots. Finally, 
     the amendment requires the Secretary of the Navy to identify 
     a single individual whose sole responsibility will be to 
     direct and oversee the NMCI program.
       The conferees are concerned that schedule delays have 
     limited the amount of empirical information about the 
     viability and performance of the NMCI. The slowdowns in the 
     NMCI program have resulted in a difficult situation. 
     Continuing the program requires additional orders of work 
     stations, but so few work stations have been converted to the 
     network that it is not yet clear whether the

[[Page 25521]]

     program will operate as intended. Despite some lingering 
     concerns, the conferees have adopted a plan, based on 
     continued demonstrations of successful testing and 
     performance capabilities, that is intended to allow the 
     program to move forward in a prudent manner. The conferees 
     expect that the Navy, in a departure from past practice, will 
     be fully and readily forthcoming with information about and 
     explanations for any future delays or performance concerns. 
     The conferees' designation of a single NMCI manager is 
     intended to facilitate such communication with the Congress, 
     which is of particular importance given the size and 
     operational impact of the NMCI program.
     Comptroller General Study and Report of National Guard 
         Distributive Training Technology Project (sec. 363)
       The Senate bill contained a provision (sec. 1027) that 
     directed the Comptroller General to conduct a study of the 
     interconnectivity between the voice, data, and video networks 
     of the National Guard Distributive Training Technology 
     Project (DTTP) and other Department of Defense, federal, 
     state and private networks.
       The purpose of the study was to identify existing 
     capabilities and future networking requirements for 
     operational support of disaster response, homeland defense, 
     command and control of premobilization forces, training of 
     military personnel, training of first responders and shared 
     use of the DTTP networks by government and members of the 
     networks. The Comptroller General was also directed to 
     identify appropriate connections between DTTP networks and 
     those networks at the federal and state level responsible for 
     disaster response and to identify requirements for, 
     impediments to, and means of improving connectivity between 
     DTTP and the other networks. The Comptroller General was 
     required to submit a report on the study to the Armed 
     Services Committees of the Senate and the House of 
     Representatives no more than 180 days after the date of 
     enactment of the Act.
       The House amendment contained no similar provision.
       The House recedes with an amendment that clarifies the need 
     for the Army National Guard to establish the current and 
     future requirements associated with the DTTP. In order for 
     the Comptroller General to conduct a proper review and 
     analysis, the Army National Guard must first clearly 
     articulate these requirements. Under the conference agreement 
     the Comptroller General shall submit its report to the Armed 
     Services Committees of the Senate and the House of 
     Representatives within 270 days after the date of enactment 
     of this Act.
     Reauthorization of warranty claims recovery pilot program 
         (sec. 364)
       The Senate bill contained a provision (sec. 336) that would 
     reauthorize a pilot program allowing the Secretary of Defense 
     to use commercial services to improve the collection of 
     Department of Defense claims for aircraft engine warranties.
       The House amendment contained no similar provision.
       The House recedes.
     Evaluation of current demonstration programs to improve 
         quality of personal property shipments of members (sec. 
         365)
       The House amendment contained a provision (sec. 353) that 
     would require the Department of Defense to complete all 
     demonstration programs to improve the movement on household 
     goods for members of the Armed Forces. The provision also 
     required the Secretary of Defense to submit to the Congress 
     an evaluation of these programs no later than August 31, 
     2002.
       The Senate bill contained no similar provision.
       The conferees understand that the Department of Defense has 
     cancelled the remaining pilot program that would have been 
     continued under the House provision. The conferees maintain 
     that reengineering the household goods moving process 
     continues to be an important quality of life initiative, and 
     that termination of the Full Service Moving Project does not 
     relieve the Department of Defense of its responsibilities to 
     improve the moving process. The Senate therefore recedes with 
     an amendment that would require the Secretary of Defense to 
     complete an evaluation of all ongoing test programs for 
     household goods moves. No later than March 31, 2002, the 
     Secretary shall submit to the Congress a report on the 
     findings of this evaluation, recommendations for policy 
     improvements, and an estimate of associated costs.
     Sense of Congress regarding security to be provided at 2002 
         Winter Olympic Games (sec. 366)
       The House amendment contained a provision (sec. 355) that 
     would express the sense of Congress that the Secretary of 
     Defense should provide public safety support for the 2002 
     Winter Olympic Games in Salt Lake City, Utah.
       The Senate bill contained no similar provision.
       The Senate recedes with a clarifying amendment that notes 
     the need for the certification of the Attorney General 
     pursuant to section 2564(a) of title 10, United States Code.

                   Legislative Provisions Not Adopted

     Applicability of core logistics capability requirements to 
         nuclear aircraft carriers
       The House amendment contained a provision (sec. 332) that 
     would exclude refueling of nuclear aircraft carriers, rather 
     than all maintenance work on such ships, from the core 
     logistics capabilities that the Department of Defense 
     maintains.
       The Senate bill contained no similar provision.
       The House recedes.
     Authorization of additional funds
       The Senate bill contained a provision (sec. 308) that would 
     authorize the use of $2.0 million of operation and 
     maintenance funds for Defense-Wide accounts to refurbish and 
     replace air handlers and related control systems at Air Force 
     medical centers.
       The House amendment contained no similar provision.
       The Senate recedes on the provision.
       The conferees agree to authorize $2.0 million of the funds 
     available for Operation and Maintenance, Defense-Wide, for 
     Air Force air handlers.
     Consequence management training
       The Senate bill contained a provision (sec. 339) that would 
     authorize the use of $5.0 million of operation and 
     maintenance funds for Defense-Wide activities to provide 
     training for members of the armed forces (including reserve 
     component personnel) in managing the consequences of an 
     incident involving the use or threat of use of a weapon of 
     mass destruction.
       The House amendment contained no similar provision.
       The Senate recedes on the provision.
       The conferees agree to authorize $5.0 million of the funds 
     available for Operation and Maintenance, Defense-Wide, for 
     consequence management training for both active and reserve 
     component military personnel.
     Critical infrastructure protection initiative of the Navy
       The Senate bill contained a provision (sec. 340) that would 
     authorize the use of $6.0 million of operation and 
     maintenance funds for the Navy for the critical 
     infrastructure protection initiative.
       The House amendment contained no similar provision.
       The Senate recedes on the provision.
       The conferees agree to authorize $6.0 million of the funds 
     available for Operation and Maintenance, Navy, for the 
     critical infrastructure protection initiative.
     Environmental restoration, Formerly Used Defense Sites
       The Senate bill contained a provision (sec. 307) that would 
     increase the authorized funding for the environmental 
     restoration of Formerly Used Defense Sites (FUDS) by $40.0 
     million.
       The House amendment contained no similar provision.
       The Senate recedes.
       The conferees agree to increase funding for environmental 
     restoration of FUDS by $40.0 million.
       The conferees note that there are over 9,000 properties 
     identified for inclusion in the FUDS program, hundreds of 
     which could be categorized as former ranges. Historically, 
     the FUDS program has experienced significant funding 
     shortfalls, making it difficult to execute much needed 
     remediation projects at these sites. In an effort to address 
     this problem, Congress included additional funds for FUDS 
     remediation in fiscal years 2000 and 2001. These funding 
     increases merely helped to address some, not all of the 
     funding shortfalls. The fiscal year 2002 budget request again 
     failed to adequately address this funding problem.
       The conferees direct the Secretary of Defense to 
     comprehensively resolve this issue within the Department of 
     Defense with a special emphasis on the Department of the 
     Army. The conferees expect the Secretary of Defense to ensure 
     that the fiscal year 2003 budget request reflects progress in 
     this area. In addition, the conferees direct the Secretary of 
     Defense to submit a report in conjunction with the fiscal 
     year 2003 budget request that provides a future years plan 
     for resolution of the FUDS funding shortfalls.
     Expansion of entities eligible for loan, gift, and exchange 
         of documents, historical artifacts, and obsolete combat 
         materiel
       The House amendment contained a provision (sec. 354) that 
     would expand the list of entities eligible to receive certain 
     materials from the Department of Defense.
       The Senate bill contained no similar provision.
       The House recedes. The text of the House provision is 
     incorporated into a separate provision addressing Department 
     of Defense gift authorities (sec. 1043).
     Funding for land forces information operations sustainment
       The Senate bill contained a provision (sec. 337) that would 
     authorize the use of $5.0 million of operation and 
     maintenance funds for the Army Reserve for information 
     operations sustainment.
       The House amendment contained no similar provision.
       The Senate recedes on the provision.
       The conferees agree to authorize $5.0 million of the funds 
     available for Operation and

[[Page 25522]]

     Maintenance, Army Reserve, for information operations 
     sustainment.
     Improvements in instrumentation and targets at Army live-fire 
         training ranges
       The Senate bill contained a provision (sec. 306) that would 
     increase funding for improvements in Army live-fire ranges by 
     $11.9 million, offset by reductions in the fuel accounts of 
     the Defense Working Capital Fund.
       The House amendment contained no similar provision.
       The Senate recedes on the provision, and the conferees 
     agree to authorize additional funds.
     Limitation on workforce reviews
       The House amendment contained a provision (sec. 331) that 
     would: (1) limit the number of workforce reviews that could 
     be performed by the Department of Defense until certain 
     conditions were met; and (2) prohibit the conversion of 
     Department of Defense functions to private sector performance 
     unless the cost savings from doing so would be at least 10 
     percent.
       The Senate bill contained no similar provision.
       The House recedes.

              Title IV--Military Personnel Authorizations

                     Legislative Provisions Adopted

                       Subtitle A--Active Forces

     End strengths for active forces (sec. 401)
       The Senate bill contained a provision (sec. 401) that would 
     authorize active duty end strengths for fiscal year 2002, as 
     shown below:

----------------------------------------------------------------------------------------------------------------
                                                                                           Fiscal year--
                                                                       2001      -------------------------------
                                                                   Authorization                       2002
                                                                                   2002 request   recommendation
----------------------------------------------------------------------------------------------------------------
Army............................................................         480,000         480,000         480,000
Navy............................................................         372,642         376,000         376,000
Marine Corps....................................................         172,600         172,600         172,600
Air Force.......................................................         357,000         358,800         358,800
----------------------------------------------------------------------------------------------------------------

       The House amendment contained an identical provision (sec. 
     401).
       The conference agreement includes this provision.
     Revision in permanent end strength minimum levels (sec. 402)
       The House amendment contained a provision (sec. 402) that 
     would establish end strength floors for the active forces at 
     the end strengths contained in the budget request.
       The Senate bill contained no similar provision.
       The Senate recedes with a clarifying amendment.
     Increase in senior enlisted active duty grade limit for Navy, 
         Marine Corps, and Air Force (sec. 403)
       The House amendment contained a provision (sec. 504) that 
     would increase the limitation on the authorized daily average 
     number of enlisted members serving on active duty within an 
     armed force in the pay grade of E-8 from two percent to two 
     and one half percent of the total number of enlisted members 
     of that armed force on active duty on the first day of that 
     fiscal year.
       The Senate bill contained a similar provision (sec. 402).
       The Senate recedes with a clarifying amendment.

                       Subtitle B--Reserve Forces

     End strengths for Selected Reserve (sec. 411)
       The Senate bill contained a provision (sec. 411) that would 
     authorize Selected Reserve end strengths for fiscal year 
     2002, as shown below:

----------------------------------------------------------------------------------------------------------------
                                                                                           Fiscal year--
                                                                       2001      -------------------------------
                                                                   authorization                       2002
                                                                                   2002 request   recommendation
----------------------------------------------------------------------------------------------------------------
The Army National Guard of the United States....................         350,526         350,000         350,000
The Army Reserve................................................         205,300         205,000         205,000
The Navy Reserve................................................          88,900          87,000          87,000
The Marine Corps Reserve........................................          39,558          39,558          39,558
The Air National Guard of the United States.....................         108,022         108,400         108,400
The Air Force Reserve...........................................          74,358          74,700          74,700
The Coast Guard Reserve.........................................           8,000           8,000           8,000
----------------------------------------------------------------------------------------------------------------

       The House amendment contained an identical provision (sec. 
     411).
       The conference agreement includes this provision.
     End strengths for reserves on active duty in support of the 
         reserves (sec. 412)
       The Senate bill contained a provision (sec. 412) that would 
     authorize the full-time support end strengths for fiscal year 
     2002, as shown below:

----------------------------------------------------------------------------------------------------------------
                                                                                           Fiscal year--
                                                                       2001      -------------------------------
                                                                   authorization                       2002
                                                                                   2002 request   recommendation
----------------------------------------------------------------------------------------------------------------
The Army National Guard of the United States....................          22,974          22,974          23,698
The Army Reserve................................................          13,106          13,108          13,406
The Navy Reserve................................................          14,649          14,811          14,811
The Marine Corps Reserve........................................           2,261           2,261           2,261
The Air National Guard of the United States.....................          11,170          11,591          11,591
The Air Force Reserve...........................................           1,336           1,437           1,437
----------------------------------------------------------------------------------------------------------------

       The House amendment contained a similar provision (sec. 
     412).
       The House recedes.
     End strengths for military technicians (dual status) (sec. 
         413)
       The Senate bill contained a provision (sec. 413) that would 
     authorize the minimum level of dual status technician end 
     strengths for fiscal year 2002, as shown below:

----------------------------------------------------------------------------------------------------------------
                                                                                           Fiscal year--
                                                                       2001      -------------------------------
                                                                   authorization                       2002
                                                                                   2002 request   recommendation
----------------------------------------------------------------------------------------------------------------
The Army Reserve................................................           5,921           5,999           6,249
The Army National Guard of the United States....................          23,128          23,128          23,615
The Air Force Reserve...........................................           9,785           9,818           9,818
The Air National Guard of the United States.....................          22,247          22,422          22,422
----------------------------------------------------------------------------------------------------------------

       The House amendment contained a provision (sec. 413) that 
     would authorize the following end strengths for military 
     technicians (dual status) as of September 30, 2002:

----------------------------------------------------------------------------------------------------------------
                                                                                           Fiscal year--
                                                                       2001      -------------------------------
                                                                   authorization                       2002
                                                                                   2002 request   recommendation
----------------------------------------------------------------------------------------------------------------
The Army Reserve................................................           5,921           5,999           5,999
The Army National Guard of the United States....................          23,128          23,128          23,128
The Air Force Reserve...........................................           9,785           9,818           9,818
The Air National Guard of the United States.....................          22,247          22,422          22,422
----------------------------------------------------------------------------------------------------------------

       The House recedes.
     Fiscal year 2002 limitation on non-dual status technicians 
         (sec. 414)
       The House amendment contained a provision (sec. 414) that 
     would establish the following limits on the numbers of non-
     dual status technicians as of September 30, 2002:

----------------------------------------------------------------------------------------------------------------
                                                                                           Fiscal year--
                                                                                 -------------------------------
                                                                    2001 limit                         2002
                                                                                   2002 request   recommendation
----------------------------------------------------------------------------------------------------------------
The Army Reserve................................................           1,195           1,095           1,095
The Army National Guard of the United States....................           1,600           1,600           1,600
The Air Force Reserve...........................................              10               0              90
The Air National Guard of the United States.....................             326             350             350
----------------------------------------------------------------------------------------------------------------

       The Senate bill contained a similar provision (sec. 414). 
     The Senate recedes.
     Limitations on numbers of reserve personnel serving on active 
         duty or full-time National Guard duty in certain grades 
         for administration of reserve components (sec. 415)
       The House amendment contained a provision (sec. 415) that 
     would authorize new grade tables for all reserve components 
     of the military departments to limit the number of officers 
     and senior enlisted members serving on active duty or full-
     time National Guard Duty in the pay grades of 0-6, 0-5, 0-4, 
     E-9, and E-8.
       The Senate bill contained a similar provision (sec. 415).
       The Senate recedes with a clarifying amendment.

       Subtitle C--Other Matters Relating to Personnel Strengths

     Administration of end strengths (sec. 421)
       The House amendment contained a provision (sec. 421) that 
     would authorize the Secretary of Defense to increase the 
     active duty end strength of a military service up to two 
     percent above the authorized end strengths for that service.
       The Senate bill contained no similar provision.
       The Senate recedes with an amendment that would authorize 
     the President to waive any statutory end strength at the end 
     of any fiscal year during which there is in effect a war or 
     national emergency.
     Active duty end strength exemption for National Guard and 
         reserve personnel performing funeral honors functions 
         (sec. 422)
       The House amendment contained a provision (sec. 422) that 
     would permit members of the reserve components on active duty 
     and members on full-time National Guard duty to prepare for 
     and perform funeral honors functions without counting against 
     the active duty end strengths of the armed forces.
       The Senate bill contained a similar provision (sec. 561).
       The Senate recedes.

              Subtitle D--Authorization of Appropriations

     Authorization of appropriations for military personnel (sec. 
         431)
       The Senate bill contained a provision (sec. 421) that would 
     authorize a total of $82,396.9 million to be appropriated to 
     the Department of Defense for military personnel.
       The House amendment contained a provision (sec. 431) that 
     would authorize $82,279.1 million to be appropriated to the 
     Department of Defense for military personnel.
       The House recedes with an amendment that would authorize 
     $82,307.3 million to be appropriated to the Department of 
     Defense for military personnel.
       The conferees provide the following itemization of the 
     increases and decreases from the budget request related to 
     the military personnel accounts:

                      MILITARY PERSONNEL ACCOUNTS

                        [Additions in millions]

                                                             Conference
                                                              agreement
Officer Uniform Allowances..........................................4.0

[[Page 25523]]

Authorize TLE for Officer First Duty Station........................6.0
Increase TLE to $180 per day.......................................39.0
Pet Quarantine Reimbursement........................................1.0
Additional Army Guard AGR End Strength.............................24.7
Additional Army Reserve AGR End Strength............................8.3
Transferability of MGIB Benefits...................................30.0
DLA for Members w/Dependents at First Duty Station.................36.0
Education Savings Bonds............................................20.0
                                                               ________
                                                                169.0

                      MILITARY PERSONNEL ACCOUNTS

                        [Reductions in millions]

                                                             Conference
                                                              agreement
Savings from Installment Payments for 15-year Career Status Bonus..30.0
Air Force End Strength and Grade Underexecution...................129.0
Savings from DOD Proposals Not Enacted.............................10.0
                                                               ________
                                                                169.0

                   Legislative Provisions Not Adopted

     Increase in authorized strengths for Air Force officers on 
         active duty in the grade of major
       The House amendment contained a provision (sec. 423) that 
     would authorize a seven percent increase in the maximum 
     number of officers serving on active duty in the grade of 
     major.
       The Senate bill contained no similar provision.
       The House recedes.
     Strength and grade limitation accounting for reserve 
         component members on active duty in support of a 
         contingency operation
       The Senate bill contained a provision (sec. 416) that would 
     authorize the Secretary of Defense to increase the limit on 
     active duty end strengths of members of the reserve 
     components in pay grades E-8, E-9, 0-4, 0-5, 0-6, and general 
     and flag officers by the number in those pay grades serving 
     on active duty, with their consent, in support of a 
     contingency operation.
       The House amendment contained no similar provision.
       The Senate recedes.

                   Title V--Military Personnel Policy

                     Legislative Provisions Adopted

                  Subtitle A--Officer Personnel Policy

     Enhanced flexibility for management of senior general and 
         flag officer positions (sec. 501)
       The Senate bill contained a provision (sec. 501) that would 
     increase the grade of the Vice Chief of the National Guard 
     Bureau to lieutenant general, the grades of the heads of the 
     Nurse Corps for the Army and the Air Force to major general 
     and of the Navy to rear admiral (upper half), and the grade 
     of the Chief of Army Veterinary Corps to brigadier general. 
     The provision would also authorize one additional Marine 
     general above the grade of major general and exclude an 
     officer serving as the Senior Military Assistant to the 
     Secretary of Defense in the grade of general or lieutenant 
     general, or admiral or vice admiral, from the limit on 
     officers serving in that grade for his or her service, and 
     would repeal the limit on the number of officers on active 
     duty in the grades of general or admiral.
       The House amendment contained a provision (sec. 501) that 
     would repeal the limit on the number of officers on active 
     duty in the grades of general or admiral.
       The House recedes with an amendment that would repeal the 
     limit on the number of officers on active duty in the grades 
     of general or admiral.
       The conferees are concerned about the various proposals 
     received each year for authorizing new general or flag 
     officer positions, increasing the total number of general and 
     flag officers, and exempting general and flag officers from 
     current grade limits. The conferees are also aware that 
     changes made as a result of the Defense Strategy Review and 
     the Quadrennial Defense Review may result in changes in 
     requirements for general and flag officers.
       Rather than addressing individual proposals piecemeal, the 
     conferees direct the Secretary of Defense, using current data 
     and requirements, to conduct a comprehensive review, as 
     delineated by section 1213 of the National Defense 
     Authorization Act for Fiscal Year 1997, of the existing 
     statutory reserve and active general and flag officer 
     authorizations. The Secretary should report the results of 
     the review to Congress no later than six months after the 
     date of enactment of this Act, together with any 
     recommendations for revisions to those authorizations.
     Certifications of satisfactory performance for retirement of 
         officers in grades above major general and rear admiral 
         (sec. 502)
       The Senate bill contained a provision (sec. 507) that would 
     authorize the Secretary of Defense to delegate to the Under 
     Secretary of Defense for Personnel and Readiness or the 
     Deputy Under Secretary of Defense for Personnel and Readiness 
     the authority to certify to the President and to Congress 
     that certain officers have served satisfactorily in the grade 
     of general, admiral, lieutenant general, or vice admiral 
     before authorizing retirement in that grade. The provision 
     would require the Secretary of Defense to act personally on 
     cases where there is potentially adverse information that has 
     not previously been reported to the Senate in connection with 
     a previous appointment.
       The House amendment contained no similar provision.
       The House recedes with a clarifying amendment.
     Review of actions of selection boards (sec. 503)
       The Senate bill contained a provision (sec. 585) that would 
     provide that service members or former service members 
     challenging the results of selection boards or promotion 
     boards are not entitled to relief in a judicial proceeding 
     unless the matter was first considered by a special board or 
     a special selection board, or the secretary concerned denied 
     such consideration.
       The House amendment contained no similar provision.
       The House recedes with a clarifying amendment.
       The conferees do not intend, by this provision, to change 
     the existing authority of the federal courts to determine the 
     validity of any statute, regulation or policy relating to 
     selection boards in any applicable form of action, including, 
     when authorized by law or by the rules of the court, a class 
     action.
     Temporary reduction of time-in-grade requirement for 
         eligibility for promotion for certain active-duty list 
         officers in grades of first lieutenant and lieutenant 
         (junior grade) (sec. 504)
       The Senate bill contained a provision (sec. 502) that would 
     reduce the minimum time-in-grade for promotion of lieutenants 
     and lieutenants (junior grade) from two years to 18 months.
       The House amendment contained a similar provision (sec. 
     503).
       The House recedes with an amendment that would limit this 
     provision to officers with 18 months time-in-grade as first 
     lieutenants and lieutenants (junior grade) before October 1, 
     2005.
     Authority for promotion without selection board consideration 
         for all fully qualified officers in grade of first 
         lieutenant or lieutenant (junior grade) in the Navy (sec. 
         505)
       The Senate bill contained a provision (sec. 503) that would 
     authorize the promotion of officers on the active-duty list 
     and on the reserve active-status list to captain in the Army, 
     Air Force, or Marine Corps, or to the grade of lieutenant in 
     the Navy without selection board action when the secretary 
     concerned determines that all fully qualified officers 
     eligible for consideration for promotion are needed in the 
     next higher grade to accomplish mission objectives. The 
     recommended provision would provide that an officer who is 
     not promoted because the secretary concerned determines that 
     the officer is not fully qualified for promotion would be 
     treated as having failed of selection for promotion.
       The House amendment contained no similar provision.
       The House recedes with a clarifying amendment.
     Authority to adjust date of rank of certain promotions 
         delayed by reason of unusual circumstances (sec. 506)
       The Senate bill contained a provision (sec. 504) that would 
     authorize the service secretaries to adjust dates of rank of 
     officers in grades 0-6 and below when the officers' 
     promotions are delayed because of unusual circumstances 
     causing an unintended delay in the processing or approval of 
     a report of a selection board or promotion list.
       The House amendment contained no similar provision.
       The House recedes with a clarifying amendment.
     Authority for limited extension of medical deferment of 
         mandatory retirement or separation (sec. 507)
       The House amendment contained a provision (sec. 505) that 
     would authorize the secretaries of the military departments 
     to extend for an additional 30 days the deferment of 
     mandatory retirement or separation for medical reasons to 
     provide a member additional time to prepare for retirement or 
     separation.
       The Senate bill contained a similar provision (sec. 505).
       The Senate recedes.
     Authority for limited extension on active duty of members 
         subject to mandatory retirement or separation (sec. 508)
       The House amendment contained a provision (sec. 506) that 
     would authorize the secretaries of the military departments 
     to extend for an additional 90 days the deferment of 
     mandatory retirement or separation due to the implementation 
     of stop loss authority to provide the military member 
     additional time to prepare for retirement or separation.
       The Senate bill contained a similar provision (sec. 508).
       The Senate recedes with a clarifying amendment.
     Exemption from certain administrative limitations for retired 
         officers ordered to active duty as defense or service 
         attaches (sec. 509)
       The Senate bill contained a provision (sec. 506) that would 
     exclude retired members recalled to active duty for service 
     as defense or service attaches from the limitations on the 
     number of retired members who can be recalled to active duty 
     and from the time limit on the period of a recall to active 
     duty.

[[Page 25524]]

       The House amendment contained no similar provision.
       The House recedes with a clarifying amendment.
       The Secretary of Defense has repeatedly sought additional 
     exceptions to the limitations on retired members recalled to 
     active duty. The conferees believe that the Secretary of 
     Defense should have more flexibility to recall retired 
     members without seeking legislative authority to do so. 
     Accordingly, the conferees direct the Secretary of Defense to 
     report, not later than March 31, 2002, to the Committees on 
     Armed Services of the Senate and the House of Representatives 
     on an appropriate limit on the number of retirees in pay 
     grade 0-6 and below who could serve on active duty at any one 
     time if the exceptions contained in sections 688(e)(2) and 
     690(b)(2) of title 10, United States Code, were eliminated.
     Officer in charge of United States Navy Band (sec. 510)
       The House amendment contained a provision (sec. 508) that 
     would permit a Navy limited duty officer who holds the rank 
     of at least lieutenant commander to be detailed to serve in 
     the rank of captain while holding the position of officer in 
     charge of the United States Navy Band.
       The Senate bill contained a similar provision (sec. 509).
       The Senate recedes with a clarifying amendment.

             Subtitle B--Reserve Component Personnel Policy

     Placement on active-duty list of certain reserve officers on 
         active duty for a period of three years or less (sec. 
         511)
       The House amendment contained a provision (sec. 511) that 
     would require members recalled to active duty for three years 
     or less to be placed on the active-duty list unless the 
     service secretary specifies in the service member's orders 
     that the member will be retained on the reserve active-status 
     list.
       The Senate bill contained a similar provision (sec. 512).
       The Senate recedes.
     Exception to baccalaureate degree requirement for appointment 
         of reserve officers to grades above first lieutenant 
         (sec. 512)
       The Senate bill contained a provision (sec. 511) that would 
     extend by three years, to September 30, 2003, the authority 
     of the Secretary of the Army to waive, on a case by case 
     basis, the requirement for reserve officers commissioned 
     through the Army Officer Candidate School to have been 
     awarded a baccalaureate degree before being promoted to the 
     grade of captain.
       The House amendment contained a similar provision (sec. 
     513).
       The House recedes with an amendment that would also 
     authorize the Secretary of the Navy to waive, on a case by 
     case basis, the requirement for a baccalaureate degree in the 
     case of reserve officers whose original appointment as a 
     reserve officer in the Marine Corps was through the Marine 
     Corps meritorious commissioning program.
       The conferees intend that the service secretaries grant 
     waivers only to those officers who have demonstrated 
     substantial progress toward achieving the goal of earning a 
     baccalaureate degree.
     Improved disability benefits for certain reserve component 
         members (sec. 513)
       The House amendment contained a provision (sec. 514) that 
     would remove the requirement that reservists must be 
     performing inactive-duty for training at a site that is 
     outside normal commuting distance before being eligible for 
     disability benefits and programs if they incur or aggravate 
     an injury, illness, or disease in the line of duty when 
     remaining overnight at training locations before or between 
     inactive-duty training periods.
       The Senate bill contained a similar provision (sec. 515).
       The Senate recedes with a clarifying amendment.
     Time-in-grade requirement for reserve component officers 
         retired with a nonservice-connected disability (sec. 514)
       The House amendment contained a provision (sec. 515) that 
     would authorize retirement eligible reserve officers with 
     non-service-connected physical disabilities that disqualify 
     the officer from continued service to be retired in the 
     highest grade held by the officer for six months, regardless 
     of other time-in-grade requirements.
       The Senate bill contained no similar provision.
       The Senate recedes with an amendment that would limit 
     application of this provision to members whose nonservice-
     connected disabilities are incurred in the line of duty.
     Equal treatment of reserves and full-time active duty members 
         for purposes of managing personnel deployments (sec. 515)
       The Senate bill contained a provision (sec. 513) that would 
     amend the definition of deployment for reservists to include 
     performance of duty that makes it impossible or infeasible to 
     spend off-duty time in the housing that the member usually 
     occupies during off-duty time when on garrison duty.
       The House amendment contained a similar provision (sec. 
     516).
       The House recedes with a clarifying amendment.
     Modification of physical examination requirements for members 
         of the Individual Ready Reserve (sec. 516)
       The Senate bill contained a provision (sec. 514) that would 
     eliminate the requirement that members of the Individual 
     Ready Reserve receive a physical examination every five years 
     and would require a physical examination as necessary to 
     determine the member's physical fitness for military duty or 
     for promotion, attendance at an armed forces' school, or 
     other action related to career progression.
       The House amendment contained no similar provision.
       The House recedes with a clarifying amendment.
     Retirement of reserve members without requirement for formal 
         application or request (sec. 517)
       The Senate bill contained a provision (sec. 516) that would 
     authorize the service secretaries to transfer to the Retired 
     Reserve officers who are required to be removed from active 
     status because of failure of selection for promotion, length 
     of service or age, and warrant officers and enlisted members 
     who are required to be discharged or removed from active 
     status because of years of service or age, unless the member 
     requests not to be transferred to the Retired Reserve.
       The House amendment contained no similar provision.
       The House recedes with a clarifying amendment.
     Space-required travel by reserves on military aircraft (sec. 
         518)
       The Senate bill contained a provision (sec. 517) that would 
     correct an impairment to authorized travel with allowances 
     for reservists performing annual training duty.
       The House amendment contained no similar provision.
       The House recedes with a clarifying amendment.
     Payment of Federal Employee Health Benefit Program premiums 
         for certain reservists called to active duty in support 
         of contingency operations (sec. 519)
       The House amendment contained a provision (sec. 588) that 
     would authorize federal agencies to pay both the employee and 
     government contributions to the Federal Employee Health 
     Benefit Program for federal employees who are members of a 
     reserve component who are called to active duty for more than 
     30 days in support of a contingency operation.
       The Senate bill contained no similar provision.
       The Senate recedes.

 Subtitle C--Joint Specialty Officers and Joint Professional Military 
                               Education

     Nominations and promotions for joint specialty officers (sec. 
         521)
       The House amendment contained a provision (sec. 521) that 
     would provide for the automatic nomination of any officer 
     who, before or after the enactment of this provision, meets 
     the statutory education and service requirements for 
     nomination as a joint specialty officer (JSO).
       The Senate bill contained no similar provision.
       The Senate recedes with an amendment that would provide 
     that, during the three-year period following enactment, 
     officers with a joint specialty are expected, as a group, to 
     be promoted at a rate not less than the rate for officers of 
     the same armed force in the same grade and competitive 
     category.
       The conferees intend that JSOs must remain highly qualified 
     and competitive for promotion within their services. 
     Following an assessment of recommendations made by an 
     independent study of joint officer management and joint 
     professional military education reforms, Congress will 
     reassess the promotion standard.
     Joint duty credit (sec. 522)
       The House amendment contained a provision (sec. 522) that 
     would prescribe standards and requirements for the Secretary 
     of Defense to award joint duty credit to officers serving in 
     temporary joint task force headquarters that are not engaged 
     in combat or near combat operations.
       The Senate bill contained no similar provision.
       The Senate recedes.
     Retroactive joint service credit for duty in certain joint 
         task forces (sec. 523)
       The House amendment contained a provision (sec. 523) that 
     would authorize the Secretary of Defense, after a case-by-
     case review, to award joint service credit to an officer who 
     served in the headquarters of a temporary joint task force 
     employed by the United States during one or more of nine 
     specific joint operations that began during the period August 
     1, 1992, and June 11, 1999.
       The Senate bill contained no similar provision.
       The Senate recedes.
     Revision to annual report on joint officer management (sec. 
         524)
       The House amendment contained a provision (sec. 524) that 
     would change some annual reporting requirements to reflect 
     the committee's recommended amendments to the joint officer 
     management system.
       The Senate bill contained no similar provision.

[[Page 25525]]

       The Senate recedes.
     Requirement for selection for joint specialty before 
         promotion to general or flag officer grade (sec. 525)
       The House amendment contained a provision (sec. 525) that 
     would require that after September 20, 2007, officers 
     promoted to brigadier general or rear admiral (lower half) 
     must be selected as a joint specialty officer (JSO) prior to 
     their promotion.
       The Senate bill contained no similar provision.
       The Senate recedes with an amendment that would permit 
     waiver of the requirement that officers must be selected as a 
     JSO as a condition for promotion to flag or general officer 
     under certain circumstances.
       The conferees note that the Goldwater-Nichols Defense 
     Reorganization Act provided that both joint professional 
     military education and completion of one full tour of joint 
     duty, or, in certain circumstances, completion of two full 
     tours of duty in a joint duty assignment, were required to 
     qualify an officer as a JSO. In addition, the Goldwater-
     Nichols Act required not only that all future senior leaders 
     of joint forces be joint specialty officers as a condition of 
     assignment as commander of a unified or specified command, 
     but also established that future Vice Chairmen of the Joint 
     Chiefs of Staff would also come from the ranks of JSOs. 
     However, as a precondition for promotion to brigadier 
     general, or rear admiral (lower half) the Goldwater-Nichols 
     Act established a less demanding standard, requiring only the 
     completion of one ``full tour'' of joint duty, and not 
     requiring Joint Professional Military Education (JPME). 
     Fifteen years after the enactment of the Goldwater-Nichols 
     Act, the conferees believe that it is appropriate to require 
     that officers selected for general and flag officer rank 
     should be drawn from the ranks of JSOs.
       The conferees believe that persons promoted to flag and 
     general officer should be held at least to the same standard 
     as other officers qualifying as JSOs. The conferees also 
     believe that it is not unreasonable to expect the services to 
     include completion of JPME and a joint duty tour in the 
     career paths of officers who are ultimately selected for 
     promotion to general and flag officer rank. To that end, the 
     conferees desire that the serving-in waiver be eliminated, if 
     possible, through creative approaches to career management, 
     such as extending mandatory retirement dates upon completion 
     of JPME and/or designation as a JSO; and require that the 
     independent study required elsewhere in this report 
     specifically address the feasibility and implications of 
     eliminating the serving-in waiver.
     Independent study of joint officer management and joint 
         professional military education reforms (sec. 526)
       The House amendment contained a provision (sec. 526) that 
     would require that the Secretary of Defense commission an 
     independent study of issues related to joint officer 
     management, joint professional military education, and the 
     roles of the Secretary and the Chairman of the Joint Chiefs 
     of Staff in managing and educating joint officers.
       The Senate bill contained no similar provision.
       The Senate recedes with an amendment that would require 
     that the entity conducting the study submit a report on the 
     study to Congress not later than one year after the date of 
     enactment of this Act.
     Professional development education (sec. 527)
       The House amendment contained a provision (sec. 527) that 
     would make the Secretary of Defense the executive agent for 
     funding professional development education operations at the 
     National Defense University beginning in fiscal year 2003.
       The Senate bill contained no similar provision.
       The Senate recedes.
     Authority for National Defense University to enroll certain 
         private sector civilians (sec. 528)
       The House amendment contained a provision (sec. 528) that 
     would permit up to 10 private sector employees of 
     organizations relevant to national security to receive 
     instruction at the National Defense University.
       The Senate bill contained no similar provision.
       The Senate recedes with a clarifying amendment.
     Continuation of reserve component professional military 
         education test (sec. 529)
       The House amendment contained a provision (sec. 529) that 
     would require the Secretary of Defense to continue the 
     concept validation test of the Joint Professional Military 
     Education (JPME) course for reserve component officers in 
     fiscal year 2002, and would authorize a broader pilot program 
     in fiscal year 2003 for reserve component JPME, if the 
     Secretary determines that the results of the concept 
     validation test merit it.
       The Senate bill contained no similar provision.
       The Senate recedes.

              Subtitle D--Military Education and Training

     Defense Language Institute Foreign Language Center (sec. 531)
       The House amendment contained a provision (sec. 531) that 
     would authorize the commandant of the Defense Language 
     Institute to award an associate of arts degree in a foreign 
     language to graduates of the Institute's Foreign Language 
     Center who meet the requirements for the degree.
       The Senate bill contained a similar provision (sec. 534).
       The Senate recedes.
     Authority for the Marine Corps University to award degree of 
         master of strategic studies (sec. 532)
       The House amendment contained a provision (sec. 532) that 
     would authorize the president of the Marine Corps University 
     to confer the degree of master of strategic studies upon 
     graduates of the Marine Corps War College who meet the 
     requirements for that degree.
       The Senate bill contained a similar provision (sec. 535).
       The Senate recedes.
     Foreign students attending the service academies (sec. 533)
       The Senate bill contained a provision (sec. 536) that would 
     authorize the service secretaries to permit 60 persons from 
     foreign countries to attend the service's academy at any one 
     time and would authorize the Secretary of Defense to waive, 
     in whole or in part, the requirement for reimbursement of the 
     cost of providing instruction to a foreign cadet or 
     midshipman.
       The conferees expect the Department of Defense to exercise 
     its authority to waive reimbursement in a fiscally prudent 
     manner, recognizing the extraordinary value of a service 
     academy education. The Department should give full 
     consideration to all the factors concerning the ability of 
     the foreign country to provide partial or complete 
     reimbursement. The conferees direct the Secretary of Defense 
     to include in the justification materials submitted with the 
     annual budget request an exhibit describing the number of 
     waivers granted and the rationale for approving the waivers 
     in each service.
       The House amendment contained a similar provision (sec. 
     533).
       The House recedes with a clarifying amendment.
     Increase in maximum age for appointment as a cadet or 
         midshipman in Senior Reserve Officers' Training Corps 
         scholarship programs (sec. 534)
       The House amendment contained a provision (sec. 534) that 
     would increase the maximum allowable age for the Senior 
     Reserve Officers' Training Corps scholarship program from age 
     27 on June 30 of the year in which the officer candidate is 
     expected to be commissioned to age 35 on December 31 of the 
     year in which the officer candidate is expected to be 
     commissioned.
       The Senate bill contained no similar provision.
       The Senate recedes with an amendment that would increase 
     the age to 31 years of age on December 31 of the year in 
     which the officer candidate is expected to be commissioned.
     Participation of regular enlisted members of the armed forces 
         in Senior Reserve Officers' Training Corps program (sec. 
         535)
       The Senate bill contained a provision (sec. 540) that would 
     authorize active duty enlisted members to participate in the 
     Senior Reserve Officers' Training Corps program.
       The House amendment contained a similar provision (sec. 
     535).
       The House recedes with a clarifying amendment.
     Authority to modify the service obligation of certain ROTC 
         cadets in military junior colleges receiving financial 
         assistance (sec. 536)
       The House amendment contained a provision (sec. 536) that 
     would authorize the Secretary of the Army to permit military 
     junior college cadets who sign future Guaranteed Reserve 
     Forces Duty contracts to satisfy their service obligation 
     through either active duty service or reserve service in a 
     troop program unit.
       The Senate bill contained no similar provision.
       The Senate recedes with a clarifying amendment.
     Repeal of limitation on number of Junior Reserve Officers' 
         Training Corps units (sec. 537)
       The Senate bill contained a provision (sec. 532) that would 
     repeal the limitation on the number of Junior Reserve 
     Officers Training Corps units.
       The House amendment contained an identical provision (sec. 
     538).
       The conference agreement includes this provision.
     Modification of nurse officer candidate accession program 
         restriction on students attending educational 
         institutions with Senior Reserve Officers' Training 
         programs (sec. 538)
       The House amendment contained a provision (sec. 537) that 
     would remove the restriction on nurse officer candidates 
     receiving financial assistance while training to be nurses at 
     institutions with Reserve Officer Training Corps programs.
       The Senate bill contained a similar provision (sec. 620).
       The Senate recedes.
     Reserve health professionals stipend program expansion (sec. 
         539)
       The House amendment contained a provision (sec. 539) that 
     would expand the stipend

[[Page 25526]]

     program for reserve health professionals by authorizing 
     medical and dental school students to receive stipends and by 
     authorizing continuing compensation for medical and dental 
     school graduates participating in residency programs 
     involving critical wartime specialties.
       The Senate bill contained a similar provision (sec. 537).
       The Senate recedes with a clarifying amendment.
     Housing allowance for the chaplain for the Corps of Cadets at 
         the United States Military Academy (sec. 540)
       The House amendment contained a provision (sec. 540) that 
     would authorize a housing allowance for the chaplain for the 
     Corps of Cadets at the United States Military Academy.
       The Senate bill contained a similar provision (sec. 1121).
       The Senate recedes with a clarifying amendment.

             Subtitle E--Recruiting and Accession Programs

     18-month enlistment pilot program (sec. 541)
       The House amendment contained a provision (sec. 589) that 
     would authorize, during the period beginning on October 1, 
     2003 and ending on December 31, 2007, an 18-month enlistment 
     pilot program to increase the participation of prior service 
     persons in the Selected Reserve and increase the pool of 
     participants in the Individual Ready Reserve.
       The Senate bill contained no similar provision.
       The Senate recedes with an amendment that would authorize 
     members who enlist under this program the option of 
     reenlisting for continued service on active duty.
     Improved benefits under the Army College First program (sec. 
         542)
       The Senate bill contained a provision (sec. 531) that would 
     modify the Army College First program by extending the period 
     of delayed entry from two years to 30 months and increasing 
     the monthly allowance to the higher of $250 or the amount of 
     subsistence allowance for members of the Senior Reserve 
     Officers' Training Corps.
       The House amendment contained no similar provision.
       The House recedes with a clarifying amendment that would 
     change the amount of the subsistence allowance to be the same 
     as the amount of the subsistence allowance provided to 
     members of the Senior Officers' Training Corps with the 
     corresponding number of years of participation.
     Correction and extension of certain Army recruiting pilot 
         program authorities (sec. 543)
       The Senate bill contained a provision (sec. 582) that would 
     extend certain Army recruiting pilot programs and, for the 
     pilot program involving contract recruiting initiatives, 
     require replacement of Army Reserve recruiters and remove the 
     requirement that contract recruiters operate under the 
     military recruiter chain of command.
       The House amendment contained no similar provision.
       The House recedes.
     Military recruiter access to secondary school students (sec. 
         544)
       The House amendment contained a provision (sec. 584) that 
     would specify that secondary schools shall provide directory 
     information to recruiters in the same way that such 
     information is provided to institutions of higher education 
     when the student has indicated a desire or intent to enroll 
     in that institution.
       The Senate bill contained no similar provision.
       The Senate recedes with an amendment that would require 
     local educational agencies receiving assistance under the 
     Elementary and Secondary Education Act of 1965 to provide to 
     military recruiters the same access to secondary school 
     students as is provided generally to postsecondary 
     educational institutions or to prospective employers and, 
     upon request by military recruiters, access to secondary 
     school student names, addresses, and telephone listings 
     unless the parent or student has submitted a request that 
     this information not be released without prior written 
     parental consent.
     Permanent authority for use of military recruiting funds for 
         certain expenses at Department of Defense recruiting 
         functions (sec. 545)
       The House amendment contained a provision (sec. 583) that 
     would make permanent the authority for the secretaries of the 
     military departments to conduct social functions involving 
     recruit candidates and recruits awaiting active duty entry, 
     and other persons known to influence the career decisions of 
     recruitment-age youth.
       The Senate bill contained no similar provision.
       The Senate recedes.
     Report on health and disability benefits for pre-accession 
         training and education programs (sec. 546)
       The Senate bill contained a provision (sec. 589) that would 
     require the Secretary of Defense to conduct a review of and 
     report on the health and disability benefits available to 
     recruits and officer candidates engaged in training, 
     education, or other types of programs while not yet on active 
     duty and to cadets and midshipmen attending the service 
     academies.
       The House amendment contained a similar provision (sec. 
     592).
       The House recedes with an amendment that would require that 
     the Secretary of Defense include in his report an analysis of 
     health and disability benefits administered by the Department 
     of Veterans Affairs and the Department of Labor available to 
     persons injured in training or education.

      Subtitle F--Decorations, Awards, and Posthumous Commissions

     Authority for award of the Medal of Honor to Humbert R. 
         Versace, Jon E. Swanson, and Ben L. Salomon for valor 
         (sec. 551)
       The Senate bill contained a provision (sec. 551) that would 
     waive statutory time limits and authorize the President to 
     award the Medal of Honor to Humbert R. Versace for valor 
     during the Vietnam War.
       The House amendment contained a similar provision (sec. 
     541).
       The House recedes with an amendment that would also waive 
     statutory time limits and authorize the President to award 
     the Medal of Honor to Jon E. Swanson for valor during the 
     Vietnam War and Ben L. Salomon for valor during World War II.
     Review regarding award of Medal of Honor to certain Jewish 
         American and Hispanic American war veterans (sec. 552)
       The House amendment contained a provision (sec. 542) that 
     would require the secretaries of the military departments to 
     review the service records of certain Jewish and Hispanic 
     veterans from World War II and later periods to determine if 
     the award of the Medal of Honor is appropriate and would 
     waive the statutory time limitations for award where the 
     secretaries determine that service records support the award 
     of Medals of Honor.
       The Senate bill contained a similar provision requiring 
     review of the service records of Jewish American war veterans 
     (sec. 552).
       The Senate recedes with a clarifying amendment.
     Authority to issue duplicate Medals of Honor and to replace 
         stolen military decorations (sec. 553)
       The House amendment contained a provision (sec. 543) that 
     would authorize the service secretaries to issue one 
     duplicate Medal of Honor to recipients for display purposes, 
     and a provision (sec. 544) that would clarify that the 
     service secretaries are authorized to replace stolen 
     decorations.
       The Senate bill contained a similar provision (sec. 553).
       The Senate recedes with an amendment that would combine the 
     provisions.
     Retroactive Medal of Honor special pension (sec. 554)
       The Senate bill contained a provision (sec. 556) that would 
     entitle Robert R. Ingram to retroactive payment of the Medal 
     of Honor special pension.
       The House amendment contained no similar provision.
       The House recedes.
     Waiver of time limitations for award of certain decorations 
         to certain persons (sec. 555)
       The Senate bill contained a provision (sec. 554) that would 
     waive the statutory time limits for award of military 
     decorations to certain individuals who have been recommended 
     by the service secretaries for these awards.
       The House amendment contained a similar provision (sec. 
     545).
       The House recedes.
     Sense of Congress on issuance of certain medals (sec. 556)
       The Senate bill contained a provision (sec. 555) that would 
     express the sense of the Senate that the Secretary of Defense 
     should consider authorizing the issuance of the Korea Defense 
     Service Medal to persons who served in the armed forces in or 
     adjacent to the Republic of Korea between July 28, 1954, and 
     a date determined by the Secretary.
       The House amendment contained a provision (sec. 546) that 
     would require the secretaries of the military departments to 
     issue the Korea Defense Service Medal.
       The House amendment also contained a provision (sec. 547) 
     that would require the secretaries of the military 
     departments to issue a Cold War Service Medal to persons who 
     served honorably on active duty in the armed forces during 
     the period beginning on September 2, 1945, and ending on 
     December 26, 1991.
       The House amendment also contained a provision (sec. 548) 
     that would authorize participants in Operation Frequent Wind 
     to return the award of the Armed Forces Expeditionary Medal 
     and to receive the Vietnam Service Medal in its place.
       The House recedes with an amendment that would consolidate 
     these provisions to express the sense of the Congress that 
     the Secretary of Defense should consider authorizing the 
     award of the Korea Defense Service Medal, the Cold War 
     Service Medal, and the Vietnam Service Medal to persons in 
     the categories described above.
       The conferees believe that the decision of whether or not 
     to award campaign medals should be the prerogative of the 
     Secretary of Defense.

[[Page 25527]]


     Sense of Congress on development of a more comprehensive, 
         uniform policy for the award of decorations to military 
         and civilian personnel of the Department of Defense (sec. 
         557)
       The House amendment contained a provision (sec. 549) that 
     would commend the decision by the Department of Defense to 
     create a new award, a medal for the defense of freedom, to be 
     awarded to Department of Defense civilians who are killed or 
     wounded as a result of hostile action.
       The Senate bill contained no similar provision.
       The Senate recedes with a clarifying amendment.
     Posthumous Army commission in the grade of captain in the 
         Chaplains Corps to Ella E. Gibson for service as chaplain 
         of the First Wisconsin Heavy Artillery Regiment during 
         the Civil War (sec. 558)
       The House amendment contained a provision (sec. 586) that 
     would authorize and request the President to posthumously 
     appoint Ella E. Gibson to the grade of captain for her 
     service as a chaplain in the First Wisconsin Heavy Artillery 
     Regiment during the Civil War.
       The Senate bill contained no similar provision.
       The Senate recedes.

                    Subtitle G--Funeral Honors Duty

     Participation of military retirees in funeral honors details 
         (sec. 561)
       The Senate bill contained a provision (sec. 562) that would 
     authorize military retirees to serve as members of funeral 
     honors details.
       The House amendment contained a similar provision (sec. 
     651).
       The House recedes with a clarifying amendment.
     Funeral honors duty performed by reserve and guard members to 
         be treated as inactive-duty training for certain purposes 
         (sec. 562)
       The House amendment contained a provision (sec. 517) that 
     would authorize reserve and National Guard members performing 
     funeral honors duty the same rights, benefits, and 
     protections that would be provided members performing 
     inactive-duty training.
       The Senate bill contained a similar provision (sec. 563).
       The Senate recedes.
     Use of military leave for funeral honors duty by reserve 
         members and National Guardsmen (sec. 563)
       The House amendment contained a provision (sec. 519) that 
     would authorize federal employees who are members of the 
     reserve components to use military leave to perform funeral 
     honors duty.
       The Senate bill contained a similar provision (sec. 564).
       The Senate recedes.
     Authority to provide appropriate articles of clothing as a 
         civilian uniform for civilians participating in funeral 
         honor details (sec. 564)
       The House amendment contained a provision (sec. 593) that 
     would require the secretary of a military department to 
     provide, upon a showing of financial need, articles of 
     clothing as a civilian uniform for civilians participating in 
     funeral honor details for veterans.
       The Senate bill contained no similar provision.
       The Senate recedes with an amendment that would authorize 
     the secretaries to provide the articles of clothing.
       The conferees are aware of the challenges the services face 
     in providing funeral honors details for all veterans' 
     funerals where a funeral honors detail is requested. The 
     conferees encourage the services to work closely with and 
     provide support to veterans organizations to increase their 
     participation in funeral honors details.

            Subtitle H--Military Spouses and Family Members

     Improved financial and other assistance to military spouses 
         for job training and education (sec. 571)
       The House amendment contained a provision (sec. 561) that 
     would require the Secretary of Defense to examine existing 
     Department of Defense and other federal, state and non-
     governmental programs with the objective of improving 
     retention of military personnel by increasing the 
     employability of military spouses and helping those spouses 
     gain access to financial and other assistance for training 
     and education.
       The Senate bill contained no similar provision.
       The Senate recedes.
     Persons authorized to be included in surveys of military 
         families regarding federal programs (sec. 572)
       The Senate bill contained a provision (sec. 581) that would 
     authorize the Secretary of Defense to add family members of 
     retirees and surviving spouses to those who may be surveyed 
     to determine the effectiveness of federal programs relating 
     to military families and the need for new programs.
       The House amendment contained a similar provision (sec. 
     562).
       The House recedes with a clarifying amendment.
     Clarification of treatment of classified information 
         concerning persons in a missing status (sec. 573)
       The House amendment contained a provision (sec. 563) that 
     would amend section 1506 of title 10, United States Code, to 
     require the Secretary of Defense to maintain a separate file 
     available for review by next-of-kin that would provide notice 
     of the existence of classified information which may pertain 
     to one or more missing persons.
       The Senate bill contained no similar provision.
       The Senate recedes with a clarifying amendment.
     Transportation to annual meeting of next-of-kin of persons 
         unaccounted for from conflicts after World War II (sec. 
         574)
       The House amendment contained a provision (sec. 564) that 
     would authorize the Secretary of Defense to provide 
     transportation for the next-of-kin of persons who are 
     unaccounted for from the Korean War, the Cold War, the 
     Vietnam War, and the Persian Gulf Conflict to an annual 
     meeting concerning ongoing efforts to resolve the fate of 
     their missing family member.
       The Senate bill contained a similar provision (sec. 588).
       The Senate recedes with a clarifying amendment.
     Amendments to charter of Defense Task Force on Domestic 
         Violence (sec. 575)
       The House amendment contained a provision (sec. 565) that 
     would extend the original three-year authorization of the 
     Defense Task Force on Domestic Violence from October, 2002, 
     to April 24, 2003 and authorize reimbursement to be paid to 
     task force members who are not Department of Defense or 
     federal civilian employees.
       The Senate bill contained a similar provision (sec. 587).
       The Senate recedes.

       Subtitle I--Military Justice and Legal Assistance Matters

     Blood alcohol content limit for the offense under the Uniform 
         Code of Military Justice of drunken operation of a 
         vehicle, aircraft, or vessel (sec. 581)
       The Senate bill contained a provision (sec. 583) that would 
     amend Article 111 of the Uniform Code of Military Justice (10 
     U.S.C. 911) to lower the blood alcohol concentration 
     necessary to establish drunken operation of a motor vehicle, 
     aircraft, or vessel from 0.1 to 0.08 grams or more of alcohol 
     per 100 milliliters of blood or 0.08 per 210 liters of 
     breath.
       The House amendment contained no similar provision.
       The House recedes with an amendment that would establish 
     the blood alcohol content limit as the limit under the law of 
     the state in which the conduct occurred. Where the military 
     installation is in more than one state, the Secretary would 
     select the blood alcohol limit of one of the states if the 
     states have different limits.
     Requirement that courts-martial consist of not less than 12 
         members in capital cases (sec. 582)
       The House amendment contained a provision (sec. 571) that 
     would amend chapter 47 of title 10, United States Code, to 
     increase the minimum number of required court-martial members 
     to 12 in cases in which the death penalty may be adjudged as 
     a sentence.
       The Senate bill contained no similar provision.
       The Senate recedes with an amendment that would make this 
     provision effective for offenses committed after December 31, 
     2002.
       The conferees understand that a similar proposal is 
     currently being reviewed by the Joint Service Committee on 
     Military Justice. The conferees expect the Secretary of 
     Defense to provide any comments the Secretary may have on 
     such a proposal to the Committees on Armed Services of the 
     Senate and the House of Representatives no later than March 
     1, 2002.
     Acceptance of voluntary legal assistance for the civil 
         affairs of members and former members of the uniformed 
         services and their dependents (sec. 583)
       The Senate bill contained a provision (sec. 586) that would 
     authorize the service secretaries to accept voluntary legal 
     services. The recommended provision would treat a volunteer 
     providing legal services the same as an attorney on the legal 
     staff within the Department of Defense for defense of legal 
     malpractice.
       The House amendment contained a similar provision (sec. 
     574).
       The House recedes.

                       Subtitle J--Other Matters

     Congressional review period for change in ground combat 
         exclusion policy (sec. 591)
       The House amendment contained a provision (sec. 591) that 
     would change to 60 days of continuous session of Congress the 
     congressional notification period required of the Secretary 
     of Defense before implementing revised policies concerning 
     the assignment of women to ground combat units or positions.
       The Senate bill contained no similar provision.
       The Senate recedes with an amendment that would change the 
     notification period to 30 days of continuous session of 
     Congress.
     Per diem allowance for lengthy or numerous deployments (sec. 
         592)
       The House amendment contained a provision (sec. 590) that 
     would expand the scope of

[[Page 25528]]

     the report by the Secretary of Defense on the management of 
     individual member deployments and would require that high-
     deployment per diem be paid from operations and maintenance 
     accounts.
       The Senate bill contained no similar provision.
       The Senate recedes with a clarifying amendment.
       The conferees note that the Secretary of Defense, using the 
     authority under section 991(d) of title 10, United States 
     Code, recently suspended the requirement for general or flag 
     officers to manage the deployment of certain members and the 
     accumulation of deployment days by individual members. This 
     suspension was justified, and, by delaying the actual payment 
     of high-deployment per diem to individual members, provides 
     additional time for the services to analyze its impact on 
     personnel and assignment policies. To ensure a smooth 
     transition upon termination of this suspension, the conferees 
     urge the Secretary of Defense to afford the services 
     sufficient time to initiate any necessary policy changes to 
     optimize the efficient deployment of military personnel.
       The conferees are pleased that effective tracking systems 
     for individual tempo of operations are being developed in all 
     the services and that a robust dialogue within the Department 
     of Defense about the policy, based on facts, is in progress. 
     The Commandant of the Marine Corps and the Chief of Naval 
     Operations, in particular, have expressed concern about 
     potential adverse impact on sailors and Marines who volunteer 
     for extended sea duty and operational deployments. The 
     Secretary's timely report on the administration of section 
     991 of title 10, United States Code, due on March 31, 2002, 
     will be a key factor in determining the future course of the 
     management of deployments of service members.
     Clarification of disability severance pay computation (sec. 
         593)
       The House amendment contained a provision (sec. 507) that 
     would authorize disability severance pay to be computed based 
     on the grade to which a member would be promoted regardless 
     of the purpose of the physical examination that identifies 
     the disqualifying physical disability.
       The Senate bill contained no similar provision.
       The Senate recedes.
     Transportation or storage of privately owned vehicles on 
         change of permanent station (sec. 594)
       The Senate bill contained a provision (sec. 638) that would 
     authorize advance payment of vehicle storage costs in 
     commercial facilities and payment for shipping privately 
     owned vehicles between permanent duty stations in the 
     continental United States when it is more advantageous and 
     cost effective for the government.
       The House amendment contained similar provisions (sec. 581 
     and 582).
       The House recedes with a clarifying amendment.
     Repeal of requirement for final Comptroller General report 
         relating to Army end strength allocations (sec. 595)
       The House amendment contained a provision (sec. 585) that 
     would repeal the requirement for the final report by the 
     Comptroller General of the United States on the Total Army 
     Analysis process.
       The Senate bill contained no similar provision.
       The Senate recedes.
     Continued Department of Defense administration of National 
         Guard Challenge Program and Department of Defense 
         STARBASE Program (sec. 596)
       The House amendment contained a provision (sec. 587) that, 
     effective October 1, 2002, would eliminate the $62.5 million 
     statutory limit on Department of Defense spending for the 
     National Guard Youth Challenge Program, and revise the 
     Department of Defense cost share for each state's program 
     from 60 percent to 75 percent.
       The Senate bill contained a provision (sec. 1061) that 
     would require the Secretary of Defense to conduct the 
     National Guard Challenge Program and the STARBASE Program.
       The House recedes with an amendment that would eliminate 
     the $62.5 million statutory limit on Department of Defense 
     spending for the National Guard Youth Challenge Program, and 
     provide that the Secretary of Defense would remain the 
     executive agent to carry out the National Guard Challenge 
     Program and the STARBASE Program regardless of the source of 
     funds for the programs or any transfer of jurisdiction over 
     the programs within the Executive Branch.
       The conferees believe that both the Challenge and STARBASE 
     programs are being effectively administered by the Department 
     of Defense, and do not mean to suggest by the recommended 
     amendments that either program should be transferred from the 
     DOD to another department of the Executive Branch. 
     Furthermore, the conferees believe that to effect such a 
     transfer would require amendments to current law. If such a 
     transfer were to be proposed and subsequently approved by 
     Congress, the conferees believe that the continuing 
     involvement of the Secretary of Defense would be essential to 
     the long-term effectiveness of both programs. The conferees 
     intend to ensure that the Department of Defense remains 
     closely involved in the conduct of both the STARBASE and 
     Challenge programs.
     Report on Defense Science Board recommendation on original 
         appointments in regular grades for academy graduates and 
         certain other new officers (sec. 597)
       The House amendment contained a provision (sec. 502) that 
     would require that graduates of the service academies, 
     Reserve Officer Training Corps distinguished graduates, and 
     distinguished graduates of other officer commissioning 
     programs, such as officer candidate schools, be given an 
     initial appointment as an officer in the Regular Army, Navy, 
     Marine Corps and Air Force, as long as they meet the criteria 
     for such appointment.
       The Senate bill contained no similar provision.
       The Senate recedes with an amendment that would require the 
     Secretary of Defense to submit, within six months of 
     enactment of this Act, a report to the Committees on Armed 
     Services of the Senate and the House of Representatives on 
     the legislative and policy changes required to implement the 
     recommendation of the Defense Science Board that all officers 
     be given initial regular commissions.
     Sense of Congress regarding the selection of officers for 
         recommendation for appointment as Commander, United 
         States Transportation Command (sec. 598)
       The Senate bill contained a provision (sec. 903) that would 
     have expressed the sense of Congress that the Secretary of 
     Defense should give careful consideration to recommending an 
     officer from the Army or Marine Corps to serve as Commander, 
     U.S. Transportation Command.
       The House amendment contained no similar provision.
       The House recedes with an amendment that would express the 
     sense of Congress that, when deciding on the next officer to 
     be recommended for appointment as Commander, U.S. 
     Transportation Command, the Secretary of Defense should not 
     rely upon one service which has traditionally provided 
     officers to fill that position, but should select for such 
     recommendation the best qualified officer of the Army, Navy, 
     Air Force, or Marine Corps.

                   Legislative Provisions Not Adopted

     Acceptance of fellowships, scholarships, or grants for legal 
         education of officers participating in the Funded Legal 
         Education Program
       The Senate bill contained a provision (sec. 533) that would 
     authorize an officer attending law school under the Funded 
     Legal Education Program to accept a scholarship from the law 
     school or other entity.
       The House amendment contained no similar provision.
       The Senate recedes.
     Codification of requirement for regulations for delivery of 
         military personnel to civil authorities when charged with 
         certain offenses
       The House amendment contained a provision (sec. 573) that 
     would codify the requirement for the Secretary of Defense to 
     prescribe regulations to provide for the delivery of a member 
     accused by a civil authority of parental kidnapping or a 
     similar offense to the appropriate civil authority for trial.
       The Senate bill contained no similar provision.
       The House recedes.
     Expanded application of reserve special selection board
       The House amendment contained a provision (sec. 512) that 
     would authorize the reserve special selection boards to 
     consider officers from below the promotion zone who were 
     either not considered for promotion because of administrative 
     error, or were considered but not selected for promotion 
     because of material error.
       The Senate bill contained no similar provision.
       The House recedes.
     Members of the National Guard performing funeral honors duty 
         while in non-federal status
       The House amendment contained a provision (sec. 518) that 
     would specify that National Guard members when serving on 
     funeral honors details shall be considered members of the 
     armed forces for the purpose of meeting requirements for the 
     minimum number of service members and service affiliation on 
     a funeral honors detail.
       The Senate bill contained no similar provision.
       The House recedes.
       The conferees note that section 1491(b)(2) of title 10, 
     United States Code, requires that a funeral honors detail for 
     a deceased veteran include at least two members of the armed 
     forces, at least one of whom is a member of the veteran's 
     armed force. Members of the Army National Guard of the United 
     States and the Air National Guard of the United States are 
     members of the armed forces even when performing in a state 
     status. They can participate in a funeral honors detail in 
     either a state or federal status, and should be considered as 
     one of the required members of the armed forces.

[[Page 25529]]


     One-year extension of expiration date for certain force 
         management authorities
       The House amendment contained a provision (sec. 509) that 
     would extend through December 31, 2002, certain force 
     drawdown transition authorities.
       The Senate bill contained no similar provision.
       The House recedes.
     Preparation for, participation in, and conduct of athletic 
         competitions by the National Guard and members of the 
         National Guard
       The House amendment contained a provision (sec. 520) that 
     would authorize members and units of the National Guard to 
     conduct and compete in qualifying athletic competitions and 
     small arms competitions, and to use appropriated funds and 
     National Guard facilities and equipment in connection with 
     the conduct of or participation in these competitions.
       The Senate bill contained no similar provision.
       The House recedes.
     Right of convicted accused to request sentencing by military 
         judge
       The House amendment contained a provision (sec. 572) that 
     would permit an accused who had been convicted by a court-
     martial with service members to elect to have the sentencing 
     phase of the trial conducted by the military judge sitting 
     alone, rather than by the members.
       The Senate bill contained no similar provision.
       The House recedes.
       The conferees are aware that this issue has been submitted 
     to the Joint Service Committee on Military Justice for 
     review. The conferees direct that the Secretary of Defense 
     report the results of this review to the Committees on Armed 
     Services of the Senate and the House of Representatives no 
     later than March 1, 2002.

          Title VI--Compensation and Other Personnel Benefits

                       Items of Special Interest

     Personal and family financial management programs
       The conferees are concerned that the secretaries of the 
     military departments are not providing service members 
     sufficient training on the management of personal and family 
     finances, including matters relating to the purchase and 
     financing of automobiles and the use of payday-lender 
     services. The conferees are also concerned that when personal 
     financial problems do occur, the secretaries are not 
     providing adequate supervision to ensure that service members 
     and their families regain financial security.


       Accordingly, the conferees direct the secretaries of the 
     military departments to conduct a comprehensive examination 
     of the personal financial management programs operated within 
     their respective departments. The examination shall include, 
     at a minimum: an assessment of the severity and type of 
     personal financial challenges confronting service members; 
     the magnitude of personal debt accumulated by service 
     members; the adequacy of training and assistance programs 
     available to service members; and the merits of other 
     programs recommended to meet the needs of service members.
       The conferees further direct the Secretary of Defense to 
     consolidate and review the examinations conducted by the 
     secretaries of the military departments, identify the best 
     practices from each examination, and assess the need to 
     improve and standardize the programs operated by the 
     secretaries of the military departments. The conferees direct 
     the Secretary of Defense to report the findings of his review 
     to the Committees on Armed Services of the Senate and the 
     House of Representatives by March 31, 2002.

                     Legislative Provisions Adopted

                     Subtitle A--Pay and Allowances

     Increase in basic pay for fiscal year 2002 (sec. 601)
       The Senate bill contained a provision (sec. 601) that would 
     provide a targeted pay raise ranging from five percent to 10 
     percent, effective January 1, 2002.
       The House amendment contained an identical provision (sec. 
     601).
       The conference agreement includes this provision.
     Basic pay rate for certain reserve commissioned officers with 
         prior service as an enlisted member or warrant officer 
         (sec. 602)
       The Senate bill contained a provision (sec. 602) that would 
     authorize payment at the 0-1E, 0-2E or 0-3E rate to reserve 
     component commissioned officers in the pay grade of 0-1, 0-2, 
     or 0-3, who are not on active duty, but have accumulated the 
     equivalent of four years of active duty as a warrant officer 
     or enlisted member.
       The House amendment contained a similar provision (sec. 
     602).
       The House recedes with an amendment that would make this 
     provision effective on the date of enactment of this Act.
     Reserve component compensation for distributed learning 
         activities performed as inactive-duty training (sec. 603)
       The Senate bill contained a provision (sec. 603) that would 
     authorize compensation for members in grades EB6 and below 
     for distributed learning activities performed as inactive-
     duty training.
       The House amendment contained no similar provision.
       The House recedes with an amendment that would authorize 
     compensation for members of the Selected Reserve upon 
     successful completion of a course of instruction using 
     electronic-based distributed learning technologies to 
     accomplish training requirements related to unit readiness or 
     mobilization.
     Subsistence allowances (sec. 604)
       The Senate bill contained provisions (sec. 604 and 606) 
     that would define the baseline for determining future rates 
     for basic allowance for subsistence and clarify that only 
     members with dependents are entitled to payment of the 
     supplemental subsistence allowance.
       The House amendment contained a similar provision (sec. 
     603).
       The House recedes with a clarifying amendment.
     Eligibility for temporary housing allowance while in travel 
         or leave status between permanent duty stations (sec. 
         605)
       The House amendment contained a provision (sec. 604) that 
     would require the secretaries of the military departments to 
     pay members of the uniformed services in pay grades below E-4 
     (with less than 4 years of service) a temporary housing 
     allowance while on travel or leave status between permanent 
     duty stations.
       The Senate bill contained a similar provision (sec. 631).
       The Senate recedes with a clarifying amendment.
     Uniform allowance for officers (sec. 606)
       The House amendment contained a provision (sec. 605) that 
     would clarify that an additional allowance of $200 for 
     uniforms may be paid to an officer so long as any previous 
     allowance received did not exceed $400.
       The Senate bill contained a similar provision (sec. 607).
       The Senate recedes.
     Family separation allowance for members electing 
         unaccompanied tour by reason of health limitations of 
         dependents (sec. 607)
       The House amendment contained a provision (sec. 606) that 
     would require the secretaries of the military departments to 
     pay family separation allowance to members of the uniformed 
     services who elect to serve unaccompanied tours of duty 
     because the movement of dependents of the member to the 
     permanent duty station is denied for certified medical 
     reasons.
       The Senate bill contained a similar provision (sec. 636).
       The Senate recedes with a clarifying amendment.

             Subtitle B--Bonuses and Special Incentive Pays

     One-year extension of certain bonus and special pay 
         authorities for reserve forces (sec. 611)
       The House amendment contained a provision (sec. 611) that 
     would extend, until December 31, 2002, the authority to pay 
     the special pay for critically short wartime health care 
     specialists in the Selected Reserve, the Selected Reserve re-
     enlistment bonus, the Selected Reserve enlistment bonus, the 
     special pay for enlisted members assigned to certain high 
     priority units in the Selected Reserve, the Selected Reserve 
     affiliation bonus, the Ready Reserve enlistment and re-
     enlistment bonus, and the prior service enlistment bonus, and 
     would extend, until January 1, 2003, the authority for the 
     repayment of education loans for certain health professionals 
     who serve in the Selected Reserve.
       The Senate bill contained a similar provision (sec. 611).
       The Senate recedes.
     One-year extension of certain bonus and special pay 
         authorities for nurse officer candidates, registered 
         nurses, and nurse anesthetists (sec. 612)
       The House amendment contained a provision (sec. 612) that 
     would extend the authority for the nurse officer candidate 
     accession program, the accession bonus for registered nurses, 
     and the incentive special pay for nurse anesthetists until 
     December 31, 2002.
       The Senate bill contained a similar provision (sec. 612).
       The Senate recedes.
     One-year extension of special pay and bonus authorities (sec. 
         613-614)
       The Senate bill contained two provisions that would extend 
     until December 31, 2002 certain bonus and special pay 
     authorities. The first provision (sec. 613) would extend the 
     authority for special pay for nuclear-qualified officers 
     extending their period of active service, the nuclear career 
     accession bonus, and the nuclear career annual incentive 
     bonus. The second provision (sec. 614) would extend the 
     authority to pay the aviation officer retention bonus, the 
     reenlistment bonus for active members, the bonus for 
     enlistment for two or more years, and the retention bonus for 
     members with critical skills.
       The House amendment contained a similar provision (sec. 
     613).
       The House recedes with a clarifying amendment.
     Hazardous duty pay for members of maritime visit, board, 
         search, and seizure teams (sec. 615)
       The House amendment contained a provision (sec. 615) that 
     would authorize members

[[Page 25530]]

     of the uniformed services to be paid hazardous duty incentive 
     pay for duties involving regular participation as a member of 
     a team conducting visit, board, search, and seizure aboard 
     vessels in support of maritime interdiction operations.
       The Senate bill contained a similar provision (sec. 615).
       The Senate recedes with a clarifying amendment.
     Eligibility for certain career continuation bonuses for early 
         commitment to remain on active duty (sec. 616)
       The Senate bill contained a provision (sec. 621) that would 
     extend authority for payment of aviation career pay and 
     surface warfare continuation pay to eligible officers who, 
     when within one year of completing a service commitment, sign 
     a written agreement to remain on active duty.
       The House amendment contained no similar provision.
       The House recedes with a clarifying amendment.
     Secretarial discretion in prescribing submarine duty 
         incentive pay rates (sec. 617)
       The House amendment contained a provision (sec. 617) that 
     would authorize the Secretary of the Navy to prescribe the 
     amount of submarine duty incentive pay by grade and years of 
     service within a maximum of $1,000 per month.
       The Senate bill contained a similar provision (sec. 616).
       The Senate recedes with a clarifying amendment.
     Conforming accession bonus for dental officers authority with 
         authorities for other special pay and bonuses (sec. 618)
       The House amendment contained a provision (sec. 614) that 
     would extend the authority to pay accession bonuses to dental 
     officers until December 31, 2002.
       The Senate bill contained no similar provision.
       The Senate recedes.
     Modification of eligibility requirements for Individual Ready 
         Reserve bonus for reenlistment, enlistment, or extension 
         of enlistment (sec. 619)
       The Senate bill contained a provision (sec. 618) that would 
     modify existing provisions to authorize payment of a bonus to 
     individuals who possess a skill that is designated as 
     critically short to meet wartime requirements and who agree 
     to enlist, reenlist or voluntarily extend an enlistment in 
     the Individual Ready Reserve.
       The House amendment contained a similar provision (sec. 
     618).
       The House recedes with a clarifying amendment.
     Installment payment authority for 15-year career status bonus 
         (sec. 620)
       The House amendment contained a provision (sec. 619) that 
     would authorize members of the uniformed services to elect to 
     be paid the 15-year career status bonus in a lump sum or in 
     annual installments.
       The Senate bill contained no similar provision.
       The Senate recedes with a clarifying amendment.
     Accession bonus for new officers in critical skills (sec. 
         621)
       The House amendment contained a provision (sec. 620) that 
     would authorize the service secretaries to pay an accession 
     bonus of up to $100,000 to officer candidates who enter into 
     written service agreements to accept commissions as officers.
       The Senate bill contained a similar provision (sec. 619).
       The Senate recedes with a clarifying amendment that would 
     limit the maximum amount of the bonus to $60,000.
     Education savings plan to encourage reenlistments and 
         extensions of service in critical specialities (sec. 622)
       The Senate bill contained a provision (sec. 661) that would 
     authorize the Secretary of Defense to purchase U.S. savings 
     bonds with a face value of up to $30,000 for military 
     personnel who have completed specified periods of active duty 
     and enter into a commitment to perform at least six 
     additional years of active duty service in a specialty 
     designated as critical by the Secretary.
       The House amendment contained no similar provision.
       The House recedes with a clarifying amendment.
     Continuation of payment of special and incentive pay at 
         unreduced rates during stop loss periods (sec. 623)
       The conference agreement includes a provision that would 
     authorize the service secretaries to permit service members 
     involuntarily retained on active duty under stop loss 
     authority to continue to receive special and incentive pays 
     at unreduced rates.
     Retroactive authorization for imminent danger pay for service 
         in connection with Operation Enduring Freedom (sec. 624)
       The conference agreement includes a provision that would 
     authorize the Secretary of Defense to provide for retroactive 
     payment of imminent danger pay to service members who served 
     in specified areas in connection with Operation Enduring 
     Freedom for duty performed between September 19, 2001 and 
     October 31, 2001.

            Subtitle C--Travel and Transportation Allowances

     Minimum per diem rate for travel and transportation allowance 
         for travel performed upon a change of permanent station 
         and certain other travel (sec. 631)
       The House amendment contained a provision (sec. 631) that 
     would equate per diem rates for military members for travel 
     performed in connection with a change of permanent station 
     and per diem rates for official travel within the continental 
     United States of federal civilian employees and their 
     dependents.
       The Senate bill contained no similar provision.
       The Senate recedes with a clarifying amendment.
     Eligibility for payment of subsistence expenses associated 
         with occupancy of temporary lodging incident to reporting 
         to first permanent duty station (sec. 632)
       The House amendment contained a provision (sec. 632) that 
     would authorize payment of subsistence expenses to officers 
     making their first permanent change of station and would 
     increase from $110 to $180 per day the maximum amount that 
     may be paid to members of the uniformed services as 
     reimbursement for temporary lodging and subsistence expenses 
     incurred in the United States as a result of a permanent 
     change of station.
       The Senate bill contained a similar provision (sec. 632).
       The Senate recedes with a clarifying amendment.
     Reimbursement of members for mandatory pet quarantine fees 
         for household pets (sec. 633)
       The House amendment contained a provision (sec. 634) that 
     would authorize an increase in the amount of reimbursement 
     for pet quarantine fees from $275 to $675 per change of 
     station.
       The Senate bill contained no similar provision.
       The Senate recedes with an amendment that would increase 
     the amount to $550 per change of station.
     Increased weight allowance for transportation of baggage and 
         household effects for junior enlisted members (sec. 634)
       The House amendment contained a provision (sec. 633) that 
     would increase the maximum weight allowance for shipment of 
     household effects for enlisted military members in grades E-4 
     and below.
       The Senate bill contained no similar provision.
       The Senate recedes.
     Eligibility of additional members for dislocation allowance 
         (sec. 635)
       The Senate bill contained a provision (sec. 633) that would 
     authorize payment of a dislocation allowance to a member when 
     the member's dependents make an authorized move in connection 
     with the member's move to the first duty station. The 
     provision would also authorize payment of a single 
     dislocation allowance to married service members, where both 
     husband and wife are members without dependents, when both 
     move to a new duty station and occupy government family 
     quarters.
       The House amendment contained similar provisions (sec. 635 
     and 636).
       The House recedes with a clarifying amendment.
     Partial dislocation allowance authorized for housing moves 
         ordered for government convenience (sec. 636)
       The House amendment contained a provision (sec. 637) that 
     would authorize the service secretaries to pay a $500 partial 
     dislocation allowance to members of the uniformed services 
     who are ordered to occupy or vacate government family housing 
     to permit privatization or renovation, or for another reason 
     unrelated to changes in permanent station.
       The Senate bill contained a similar provision (sec. 634).
       The Senate recedes with an amendment that would make this 
     provision effective for moves for which the order to move is 
     issued on or after the date of enactment of this Act.
     Allowances for travel performed in connection with members 
         taking authorized leave between consecutive overseas 
         tours (sec. 637)
       The House amendment contained a provision (sec. 638) that 
     would authorize the service secretaries to designate the 
     locations to which members of the uniformed services may 
     travel at government expense while on leave between 
     consecutive overseas tours.
       The Senate bill contained no similar provision.
       The Senate recedes.
     Travel and transportation allowances for family members to 
         attend burial of a deceased member of the uniformed 
         services (sec. 638)
       The Senate bill contained a provision (sec. 635) that would 
     authorize allowances for family members and others to attend 
     burial ceremonies of deceased members of the uniformed forces 
     who die while on active duty or inactive duty.
       The House amendment contained no similar provision.
       The House recedes with an amendment that would grandfather 
     the benefit level authorized for surviving families of 
     service members who died during the Vietnam era.

[[Page 25531]]


     Funded student travel for foreign study under an education 
         program approved by a United States school (sec. 639)
       The Senate bill contained a provision (sec. 637) that would 
     extend the authority to pay funded student travel to certain 
     dependents of members who are stationed outside the 
     continental United States.
       The House amendment contained a similar provision (sec. 
     639).
       The House recedes with a clarifying amendment.

          Subtitle D--Retirement and Survivor Benefit Matters

     Contingent authority for concurrent receipt of military 
         retired pay and veterans' disability compensation and 
         enhancement of special compensation authority (sec. 641)
       The House amendment contained a provision (sec. 641) that 
     would authorize members of the uniformed services who are 
     qualified for retirement to receive Department of Veterans 
     Affairs disability compensation without a reduction in 
     retired pay if the President proposes and the Congress enacts 
     legislation that would offset the ``PayGo''costs of this 
     initiative.
       The Senate bill contained a provision (sec. 651) that would 
     authorize retired members of the armed forces who have a 
     service-connected-disability to receive military retired pay 
     concurrently with veterans' disability compensation.
       The Senate recedes with an amendment that would: authorize 
     payment of special compensation for retirees with service-
     connected-disabilities rated at 60 percent in fiscal year 
     2002; increase the amount of special compensation for 
     retirees with disabilities rated at 80 percent or higher in 
     fiscal year 2003; and increase the amount of special 
     compensation for retirees with disabilities rated at 70 
     percent or higher in fiscal year 2005.
     Survivor Benefit Plan annuities for surviving spouses of 
         members who die while on active duty and not eligible for 
         retirement (sec. 642)
       The Senate bill contained a provision (sec. 652) that would 
     authorize Survivor Benefit Plan (SPB) benefits for surviving 
     spouses of service members who are not eligible for 
     retirement and who die in the line of duty while on active 
     duty.
       The House amendment contained no similar provision.
       The House recedes with a clarifying amendment.
       The conferees are concerned about the current inconsistent 
     practice involving expedited approval of physical disability 
     retirement when death of a service member is imminent and the 
     service member is unable to elect SBP options. In many cases, 
     the services authorize benefits greater than those chosen by 
     most retirees who elect to participate in the Survivor 
     Benefit Plan. The conferees direct the Secretary of Defense 
     to issue regulations by July 1, 2002, governing imminent 
     death retirements.

                       Subtitle E--Other Matters

     Payment for unused leave in excess of 60 days accrued by 
         members of reserve components on active duty for one year 
         or less (sec. 651)
       The Senate bill contained a provision (sec. 608) that would 
     authorize payment for accrued leave in excess of the current 
     limit of 60 days to certain members of the reserve 
     components.
       The House amendment contained no similar provision.
       The House recedes with a clarifying amendment.
     Additional authority to provide assistance for families of 
         members of the armed forces (sec. 652)
       The Senate bill contained two provisions regarding 
     assistance to families of members of the armed forces. One 
     provision (sec. 681) would authorize the Secretary of Defense 
     to provide assistance to families of members of the armed 
     forces serving on active duty during fiscal year 2002 in 
     order to ensure that the children of such families obtain 
     needed child care and youth services. Another provision (sec. 
     682) would authorize the Secretary of Defense to provide 
     family education and support services to families of members 
     of the armed services to the same extent that these services 
     were provided during the Persian Gulf War.
       The House amendment contained no similar provision.
       The House recedes with an amendment that would combine 
     these provisions.
       The conferees' intent is to ensure that the Secretary of 
     Defense has authority to provide the types of family support 
     services provided during the Persian Gulf War.
       The conferees recognize that families of deployed members 
     may need expanded family support services, such as crisis 
     intervention, family counseling, family support groups, 
     respite care, and transportation assistance. The conferees 
     encourage the Secretary to expand family support programs 
     associated with military installations and to establish 
     family support centers in other communities that have large 
     populations of families of deployed members. In overseas 
     areas, the Secretary is encouraged to take all reasonable 
     precautions to ensure the safety of children during 
     transportation to and from Department of Defense schools. The 
     conferees also encourage the Secretary to accelerate the 
     completion and dissemination of the High Stress Parenting 
     Materials currently under development through an agreement 
     with the Department of Agriculture.
       The conferees are particularly concerned that families of 
     National Guard and Reserve members who are geographically 
     separated from military installations have services 
     comparable to those provided at active duty installations. 
     These services should be available at rates comparable to 
     rates paid by families using military child care and youth 
     programs. Providing affordable child care and youth services 
     to these families may require cooperative agreements between 
     the military and other government or community-based 
     organizations, as well as non-governmental organizations.
     Authorization of transitional compensation and commissary and 
         exchange benefits for dependents of commissioned officers 
         of the Public Health Service and the National Oceanic and 
         Atmospheric Administration who are separated for 
         dependent abuse (sec. 653)
       The Senate bill contained a provision (sec. 663) that would 
     authorize transitional benefits for the dependents of 
     commissioned officers of the Public Health Service and the 
     National Oceanic and Atmospheric Administration separated for 
     dependent abuse.
       The House amendment contained no similar provision.
       The House recedes.
     Transfer of entitlement to educational assistance under 
         Montgomery GI Bill by members of the Armed Forces with 
         critical military skills (sec. 654)
       The Senate bill contained a provision (sec. 539) that would 
     authorize the service secretaries to permit certain service 
     members with critical military skills to transfer up to 18 
     months of unused basic Montgomery GI Bill benefits to family 
     members.
       The House amendment contained no similar provision.
       The House recedes with a clarifying amendment.

                   Legislative Provisions Not Adopted

     Career sea pay
       The Senate bill contained a provision (sec. 617) that would 
     ensure receipt of career sea pay by all military members, 
     regardless of rank, pay grade, or accrued time in service, if 
     they are assigned to qualifying sea duty.
       The House amendment contained no similar provision.
       The Senate recedes.
       The conferees are pleased that the Navy has recently 
     approved new enhanced sea pay rates and prescribed career sea 
     pay to all sailors on sea duty, including those in pay grades 
     EB-1, EB-2, and EB-3. The conferees expect advance notice of 
     any change in policy that would exclude members of any pay 
     grade from receiving career sea pay who are otherwise 
     eligible.
     Equal treatment of reservists performing inactive-duty 
         training for receipt of aviation career incentive pay
       The House amendment contained a provision (sec. 616) that 
     would entitle qualified reserve aviators to be paid the full 
     amount of monthly Aviation Career Incentive Pay in the same 
     amount as paid to active duty aviators with the same number 
     of years of aviation service.
       The Senate bill contained no similar provision.
       The House recedes.
     Increase in basic allowance for housing in the United States
       The Senate bill contained a provision (sec. 605) that would 
     accelerate the current five-year plan to eliminate out-of-
     pocket housing expenses by two years, increasing the Basic 
     Allowance for Housing so that, after September 30, 2002, it 
     would not be less than the median cost of adequate housing 
     for members in that grade and dependency status in that area.
       The House amendment contained no similar provision.
       The Senate recedes.
       The conferees believe that service members should not be 
     required to pay out-of-pocket a percentage of their housing 
     costs when they are unable to live in government quarters. 
     The conferees support the plan to eliminate these out-of-
     pocket expenses and strongly encourage the Secretary of 
     Defense to accelerate this plan.

                   Title VII--Health Care Provisions

                     Legislative Provisions Adopted

                Subtitle A--Tricare Program Improvements

     Sub-acute and long-term care program reform (sec. 701)
       The House amendment contained a provision (sec. 704) that 
     would reform the Department of Defense Program for care 
     provided in skilled nursing facilities or at home.
       The Senate bill contained several similar provisions (sec. 
     701-705).
       The Senate recedes with an amendment that would increase 
     the limit of the government's share of the cost for certain 
     covered benefits from $1000 to $2500 and require the use of 
     public facilities in some circumstances.
     Prosthetics and hearing aids (sec. 702)
       The Senate bill contained a provision (sec. 706) that would 
     authorize providing prosthetics and hearing aids to military 
     dependents.

[[Page 25532]]

       The House amendment contained no similar provision.
       The House recedes.
     Durable medical equipment (sec. 703)
       The Senate bill contained a provision (sec. 707) that would 
     expand the kinds of durable medical equipment that can be 
     provided to military dependents.
       The House amendment contained no similar provision.
       The House recedes.
     Rehabilitative therapy (sec. 704)
       The Senate bill contained a provision (sec. 708) that would 
     authorize providing rehabilitative therapy to military 
     dependents to improve, restore, or maintain function, or to 
     minimize or prevent deterioration of function, of a patient 
     when prescribed by a physician.
       The House amendment contained no similar provision.
       The House recedes.
     Report on mental health benefits (sec. 705)
       The Senate bill contained a provision (sec. 709) that would 
     require the Secretary of Defense to conduct a study to 
     determine the adequacy of the scope and availability of 
     outpatient mental health benefits provided for members of the 
     armed forces and covered beneficiaries under the TRICARE 
     program.
       The House amendment contained no similar provision.
       The House recedes.
     Clarification of eligibility for reimbursement of travel 
         expenses of adult accompanying patient in travel for 
         specialty care (sec. 706)
       The Senate bill contained a provision (sec. 712) that would 
     clarify the eligibility for coverage of travel expenses by a 
     parent, guardian or family member while accompanying a 
     covered beneficiary referred for specialty care to be 
     received more than 100 miles from the location of primary 
     care.
       The House amendment contained a similar provision (sec. 
     705).
       The House recedes.
     TRICARE program limitations on payment rates for 
         institutional health care providers and on balance 
         billing by institutional and noninstitutional health care 
         providers (sec. 707)
       The Senate bill contained a provision (sec. 713) that would 
     reinforce and expedite reform of TRICARE payment methods. The 
     recommended provision would expedite adoption of Medicare's 
     prospective payments rates for nursing home care, outpatient 
     services, and durable medical equipment.
       The House amendment contained a similar provision (sec. 
     701).
       The House recedes with an amendment that would make the 
     effective date 90 days after the date of enactment.
     Improvements in administration of the TRICARE program (sec. 
         708)
       The House amendment contained a provision (sec. 703) that 
     would authorize the Secretary of Defense to enter into new 
     contracts for support of delivery of health care under 
     TRICARE by providing flexibility in the choice of contract 
     vehicle and to reduce the nine-month contract start-up time 
     for certain managed care support contractors.
       The Senate bill contained no similar provision.
       The Senate recedes with a clarifying amendment that would 
     authorize the flexibility in the choice for contract vehicle 
     during the one-year period after the date of enactment of 
     this Act.
       The current legislative restrictions pertaining to health 
     care contracting were the result of considerable review and 
     oversight of the Defense Health Program by Congress. This 
     provision will provide the Department of Defense the ability 
     to employ the best contracting practices to improve TRICARE 
     contracts. The conferees wish to allow for review of any 
     proposed changes and careful evaluation prior to permanent 
     modification of legislation pertaining to the program, given 
     the significant impact on beneficiaries and potential cost 
     implications. It is the conferees' intent that any new 
     contacting practices employed by the Department under this 
     provision ensure a smooth transition for beneficiaries and 
     strengthen the integration of health care delivery.

                     Subtitle B--Senior Health Care

     Clarifications and improvements regarding the Department of 
         Defense Medicare-Eligible Retiree Health Care Fund (sec. 
         711)
       The House amendment contained a provision (sec. 715) that 
     would: authorize all uniformed services to participate in 
     TRICARE for Life; clarify that funding for the accrual fund 
     must come from funds available for the health care programs 
     of the participating uniformed services; clarify that 
     Military Treatment Facilities may receive payments from the 
     accrual fund; and limit the Department of Defense's annual 
     cost contribution to the accrual fund to an amount not to 
     exceed expected payments from the fund in a given year.
       The Senate bill contained no similar provision.
       The Senate recedes with an amendment that would authorize 
     all uniformed services to participate in TRICARE for Life, 
     clarify that funding for the accrual fund must come from 
     funds available for the health care programs of the 
     participating uniformed services, and clarify that Military 
     Treatment Facilities may receive payments from the accrual 
     fund.

                    Subtitle C--Studies and Reports

     Comptroller General study of health care coverage of members 
         of the reserve components of the Armed Forces and the 
         National Guard (sec. 721)
       The Senate bill contained a provision (sec. 715) that would 
     require the Comptroller General of the United States to 
     conduct a study of the health care coverage of members of the 
     Selected Reserve and to report on cost effective options for 
     providing health care benefits to members of the Selected 
     Reserve and their families.
       The House amendment contained no similar provision.
       The House recedes with a clarifying amendment.
     Comptroller General study of adequacy and quality of health 
         care provided to women under the Defense Health Program 
         (sec. 722)
       The Senate bill contained a provision (sec. 716) that would 
     require the Comptroller General of the United States to 
     conduct a study of the adequacy and quality of the health 
     care provided to women under the Defense Health Program.
       The House amendment contained no similar provision.
       The House recedes with an amendment that would change the 
     date to May 1, 2002, by which the Comptroller General must 
     report the results of the study to Congress.
     Repeal of obsolete report requirement (sec. 723)
       The House amendment contained a provision (sec. 714) that 
     would repeal a reporting requirement in the National Defense 
     Authorization Act for Fiscal Year 2000 (Public Law 106-65; 10 
     U.S.C. 1074g note) by striking subsection 701(d).
       The Senate bill contained no similar provision.
       The Senate recedes.
     Comptroller General report on requirement to provide 
         screenings, physical examinations, and other care for 
         certain members (sec. 724)
       The Senate bill contained a provision (sec. 711) that would 
     repeal the requirement to provide certain medical and dental 
     services to members of the Selected Reserve of the Army 
     scheduled for deployment within 75 days after mobilization.
       The House amendment contained no similar provision.
       The House recedes with an amendment that would require the 
     Comptroller General to report on the advisability, need, and 
     cost effectiveness of providing these services.

                       Subtitle D--Other Matters

     Prohibition against requiring military retirees to receive 
         health care solely through the Department of Defense 
         (sec. 731)
       The House amendment contained a provision (sec. 711) that 
     would prohibit the Secretary of Defense from implementing a 
     policy of forced choice enrollment by military retirees who 
     are eligible for care in the health care facilities and 
     programs of both the Department of Defense and the Department 
     of Veterans Affairs.
       The Senate bill contained no similar provision.
       The Senate recedes with a clarifying amendment.
     Fees for trauma and other medical care provided to civilians 
         (sec. 732)
       The House amendment contained a provision (sec. 712) that 
     would direct the Secretary of Defense to conduct a pilot 
     program under which the Brooke Army Medical Center and the 
     Wilford Hall Air Force Medical Center in San Antonio, Texas, 
     may charge civilians, who are not covered TRICARE 
     beneficiaries, fees representing the actual costs of trauma 
     and other medical care provided.
       The Senate bill contained no similar provision.
       The Senate recedes with an amendment that would require the 
     Secretary of Defense to implement procedures throughout the 
     military health care system to charge civilians who are not 
     covered TRICARE beneficiaries, or their insurers, fees 
     representing the costs of trauma and other medical care 
     provided to those civilians.
     Enhancement of medical product development (sec. 733)
       The House amendment contained a provision (sec. 713) that 
     would authorize the Secretary of Defense to waive the 
     prohibition against the use of human subjects in research in 
     order to advance research into the treatment of combat 
     casualties.
       The Senate bill contained no similar provision.
       The Senate recedes with an amendment that would require the 
     research project to directly benefit the subject and to 
     comply with all other applicable laws and regulations.
       The conferees intend that the Secretary of Defense would be 
     authorized to waive the requirement for informed consent for 
     research on human subjects only when: (1) the subjects are in 
     a life threatening situation; (2) obtaining informed consent 
     is not feasible; and (3) the research holds out the prospect 
     of direct benefit to the health of the subject. Furthermore, 
     the conferees intend that the research project and the waiver 
     of informed consent must comply with all other statutes and 
     implementing regulations governing human subjects' 
     protection.

[[Page 25533]]


     Pilot program providing for Department of Veterans Affairs 
         support in the performance of separation physical 
         examinations (sec. 734)
       The Senate bill contained a provision (sec. 717) that would 
     authorize the Secretary of Defense and the Secretary of 
     Veterans Affairs to carry out a pilot program in which the 
     Veterans Health Administration would conduct physical 
     examinations of members separating from the uniformed 
     services.
       The House amendment contained no similar provision.
       The House recedes.
       The conferees are aware that the Department of Veterans 
     Affairs is currently conducting a congressionally mandated 
     pilot program for the performance of the physical 
     examinations required in connection with the separation of 
     members of the uniformed services, as well as other 
     disability evaluations.
       Several software tools have been developed and implemented 
     and incorporated into the ongoing pilot program. These 
     software tools have resulted in a more streamlined, efficient 
     and accurate disability evaluation process. The software 
     creates the information needed by the Department of Defense 
     for the separating service member and concurrently provides 
     the Department of Veterans Affairs with the information 
     required to determine compensation benefits. This eliminates 
     the need for a second exam and standardizes a ``one exam'' 
     process while automatically providing the specific 
     information required by the Department of Defense and the 
     Department of Veterans Affairs on their own unique forms.
       The conferees direct that, in order to insure consistency 
     in both pilot programs, the Department of Veterans Affairs 
     conduct the separation exams for the Department of Defense 
     utilizing the software developed and implemented in the 
     ongoing pilot program.
     Modification of prohibition on requirement of nonavailability 
         statement or preauthorization (sec. 735)
       The Senate bill contained a provision (sec. 718) that would 
     authorize the Secretary of Defense to waive the prohibition 
     against requiring statements of nonavailability for 
     authorized health care services, other than mental health 
     services, if certain conditions are met and both beneficiary 
     and congressional notification occurs, with a waiting period 
     prior to implementation. The nonavailability requirement 
     applies to those beneficiaries receiving care under TRICARE 
     Standard.
       The House amendment contained a similar provision (sec. 
     702).
       The House recedes with a clarifying amendment that would 
     preclude the Secretary of Defense from waiving the 
     prohibition against requiring nonavailability statements for 
     maternity care.
     Transitional health care for members separated from active 
         duty (sec. 736)
       The Senate bill contained a provision (sec. 719) that would 
     make permanent the authority for transitional health care 
     benefits for members who are involuntarily separated from 
     active duty, members of reserve components who are separated 
     from active duty of more than 30 days in support of a 
     contingency operation, and members separated from active duty 
     when involuntarily retained on active duty under section 
     12305 of title 10, United States Code.
       The House amendment contained no similar provision.
       The House recedes.
     Two-year extension of health care management demonstration 
         program (sec. 737)
       The Senate bill contained a provision (sec. 714) that would 
     extend, until December 31, 2003, the demonstration program of 
     simulation modeling to improve health care delivery in the 
     Defense Health Program authorized in section 733 of the Floyd 
     D. Spence National Defense Authorization Act for Fiscal Year 
     2001.
       The House amendment contained no similar provision.
       The House recedes.
     Joint DOD-VA pilot program for providing graduate medical 
         education and training for physicians (sec. 738)
       The Senate bill contained a provision (sec. 538) that would 
     authorize the Secretary of Defense and the Secretary of 
     Veterans Affairs to jointly carry out a pilot program of 
     graduate medical education and training for medical personnel 
     of the armed forces in Department of Veterans Affairs' 
     medical centers.
       The House amendment contained no similar provision.
       The House recedes with an amendment that would include the 
     authority to provide graduate medical education and training 
     of physician employees of the Department of Veterans Affairs 
     as part of the pilot program.

                   Legislative Provisions Not Adopted

     Effective date
       The Senate bill contained a provision (sec. 710) that would 
     make the TRICARE Benefits Modernization provisions effective 
     on October 1, 2001.
       The House amendment contained no similar provision.
       The Senate recedes.

  Title VIII--Acquisition Policy, Acquisition Management, and Related 
                                Matters

                       Items of Special Interest

     Management reform initiatives
       The Secretary of Defense has testified that the Department 
     of Defense (DOD) should be able to achieve five percent 
     savings throughout the Department through management 
     improvements. These savings goals are consistent with 
     analysis presented in numerous governmental and advisory 
     commission reports in past years. For example, in November 
     2000 the General Accounting Office (GAO) reported that 
     ``[m]ost DOD contracting officers included in our review did 
     not follow the General Services Administration's established 
     procedures intended to ensure fair and reasonable prices when 
     using the Federal Supply Schedule.'' The GAO also found, in 
     its January 2001 assessment of performance and accountability 
     in the DOD, that ``a number of the Department's key business 
     processes are inefficient and ineffective,'' including 
     acquisition processes that are ``still too slow and costly'' 
     and systems deficiencies that ``significantly contribute to 
     improper payments.'' In addition, the DOD Inspector General, 
     in an August 2001 report, stated that the DOD is ``not 
     obtaining the benefits of sustained competition and reduced 
     costs'' that are permitted under current law. The Business 
     Executives for National Security (BENS) Tail-to-Tooth 
     Commission also stated in its October 1997 report that 
     ``billions continue to be wasted on inefficient business 
     practices.'' Based on these and other reports, and the 
     Secretary's commitment to improvements in this area, the 
     conferees believe that the Department should be able to 
     achieve significant savings in fiscal year 2002 through more 
     efficient management; reform of business processes; improved 
     processes for the procurement of property and services; and 
     increased use of best business practices adopted from the 
     private sector.
       Titles I, II and III of the conference report include 
     reductions totaling $1.3 billion, to be achieved through 
     management reform initiatives. The conferees expect the 
     Department of Defense to achieve these savings by 
     implementing the requirements of Title VIII, and by pursuing 
     other management efficiencies developed by the Department's 
     Business Initiative Council. The conferees expect the 
     Department to distribute these reductions across budget 
     activities and programs within the relevant appropriations 
     accounts, based on the dollar value of contracts within those 
     budget activities and programs to which improvements may be 
     appropriately applied.

                     Legislative Provisions Adopted

         Subtitle A--Procurement Management and Administration

     Management of procurement of services (sec. 801)
       The Senate bill contained a provision (sec. 801) that would 
     improve the Department of Defense's management of the 
     acquisition of services by requiring the Department to: (1) 
     establish a management structure for purchases of services; 
     (2) collect and analyze data on purchases of services; and 
     (3) establish a program review process for major purchases of 
     services.
       The House amendment contained no similar provision.
       The House recedes with an amendment that would: (1) ensure 
     that the management structure for the procurement of services 
     shall be comparable to the management structure already in 
     place for the procurement of products; (2) clarify that 
     officials designated to exercise responsibility for the 
     management of the procurement of services may delegate their 
     authority in accordance with criteria established by the 
     Department; and (3) delete redundant requirements and 
     streamline the reporting requirements in the provision.
     Savings goals for procurements of services (sec. 802)
       The Senate bill contained a provision (sec. 802) that would 
     establish savings goals for the Department of Defense to 
     achieve through the use of improved management practices for 
     procurements of services, including performance-based 
     services contracting; competition for task orders under 
     services contracts; and program review, spending analyses, 
     and other best practices commonly used in the commercial 
     sector.
       The House amendment contained no similar provision.
       The House recedes with an amendment deleting the 
     requirement for a report by the Comptroller General. The 
     conferees note that this provision directs the Department to 
     achieve savings through improved management practices. It is 
     not intended to require the Department to reduce needed 
     support services provided by contractors.
     Competition requirement for purchase of services pursuant to 
         multiple award contracts (sec. 803)
       The Senate bill contained a provision (sec. 803) that would 
     require that purchases of products and services in excess of 
     $50,000 awarded under a multiple award contract shall be made 
     on a competitive basis, subject to limited exceptions.
       The House amendment contained no similar provision.
       The House recedes with an amendment that would: (1) apply 
     the competition requirement only to purchases of services; 
     (2)

[[Page 25534]]

     raise the threshold for the competition requirement to 
     $100,000; (3) require that notice to offerors include a 
     description of the work to be performed and the basis on 
     which the selection will be made; and (4) clarify the manner 
     in which the provision would apply to purchases pursuant to 
     the multiple award schedules administered by the 
     Administrator for General Services (GSA schedules). Under the 
     conference agreement, notice could be provided to fewer than 
     all contractors under the GSA schedules, provided that: (1) 
     notice is provided to as many contractors as practicable; and 
     (2) offers are received from at least three qualified 
     contractors or a contracting officer of the Department of 
     Defense determines in writing that he or she was unable to 
     identify additional qualified contractors despite making a 
     reasonable effort to do so.
     Reports on maturity of technology at initiation of Major 
         Defense Acquisition Programs (sec. 804)
       The Senate bill contained a provision (sec. 804) that would 
     require that critical technologies be successfully 
     demonstrated in a relevant environment before they may be 
     incorporated into a major defense acquisition program.
       The House amendment contained no similar provision.
       The House recedes with an amendment that would substitute 
     an annual report, in calendar years 2003 through 2006, on the 
     compliance of the Department of Defense (DOD) with the 
     technological maturity requirement established in DOD 
     Instruction 5000.2. Paragraph 4.7.3.2.2.2 of that Instruction 
     states in relevant part:

       ``Technology must have been demonstrated in a relevant 
     environment . . . or, preferably, in an operational 
     environment . . . to be considered mature enough to use for 
     product development in systems integration. If technology is 
     not mature, the DOD Component shall use alternative 
     technology that is mature and that can meet the user's 
     needs.''

     The report required by the conference agreement would 
     identify and explain any circumstance in which the DOD fails 
     to comply with this requirement with regard to a Major 
     Defense Acquisition Program.

                  Subtitle B--Use of Preferred Sources

     Applicability of competition requirements to purchases from a 
         required source (sec. 811)
       The Senate bill contained a provision (sec. 821) that would 
     require Federal Prison Industries (FPI) to compete for future 
     Department of Defense contracts.
       The House amendment contained no similar provision.
       The House recedes. Under this provision, the Department of 
     Defense, not Federal Prison Industries, will be responsible 
     for determining whether Federal Prison Industries can best 
     meet the Department's needs in terms of price, quality, and 
     time of delivery. If the Department determines that the FPI 
     product is not the best available in terms of price, quality, 
     and time of delivery, the Department is directed to purchase 
     the product on a competitive basis.
     Extension of mentor-protege program (sec. 812)
       The Senate bill contained a provision (sec. 823) that would 
     codify the pilot mentor-protege program of the Department of 
     Defense and authorize the program in permanent law.
       The House amendment contained no similar provision.
       The House recedes with an amendment that would extend the 
     program for three years, through September 30, 2005.
     Increase of assistance limitation regarding Procurement 
         Technical Assistance Program (sec. 813)
       The House amendment contained a provision (sec. 806) that 
     would increase the assistance limitation for the Procurement 
     Technical Assistance Program under section 2414 of title 10, 
     United States Code from $300,000 to $600,000.
       The Senate bill contained no similar provision.
       The Senate recedes. The conferees believe that the 
     Procurement Technical Assistance Program provides valuable 
     support to both state-wide and local centers across the 
     country. The conferees expect the Department of Defense to 
     continue to implement the program in a broad-based manner 
     that supports a variety of both state-wide and local centers.

Subtitle C--Amendments to General Contracting Authorities, Procedures, 
                          and Related Matters

     Amendments to conform with administrative changes in 
         acquisition phase and milestone terminology and to make 
         related adjustments in certain requirements applicable at 
         milestone transition points (sec. 821)
       The Senate bill contained a provision (sec. 831) that would 
     make a series of modifications to title 10, United States 
     Code, and related statutes, to substitute references to the 
     acquisition milestones established by revised Department of 
     Defense Instruction 5000.2 for obsolete references currently 
     contained in those statutes.
       The House amendment contained a similar provision (sec. 
     801).
       The House recedes with a technical amendment.
     Follow-on production contracts for products developed 
         pursuant to prototype projects (sec. 822)
       The Senate bill contained a provision (sec. 805) that would 
     authorize the Department of Defense to enter follow-on 
     production contracts for a limited number of items developed 
     pursuant to transactions (other than contracts, grants, or 
     cooperative agreements) on a sole-source basis.
       The House amendment contained no similar provision.
       The House recedes.
     One-year extension of program applying simplified procedures 
         to certain commercial items (sec. 823)
       The House amendment contained a provision (sec. 803) that 
     would extend the test program authorized by section 4202 of 
     the Clinger-Cohen Act of 1996 (Divisions D and E of Public 
     Law 104-106; 110 Stat 654) until January 1, 2004.
       The Senate bill contained no similar provision.
       The Senate recedes with an amendment that would extend the 
     program until January 1, 2003.
     Acquisition workforce qualifications (sec. 824)
       The Senate bill contained a provision (sec. 813) that would 
     clarify the applicability of the acquisition workforce 
     qualifications in section 1724 of title 10, United States 
     Code and authorize the Secretary of Defense to establish a 
     contracting workforce to deploy in support of contingency 
     operations.
       The House amendment contained a similar provision (sec. 
     802) that would also authorize the Secretary to establish a 
     developmental workforce.
       The Senate recedes with an amendment that would clarify 
     that individuals serving in developmental positions may be 
     separated from the civil service if, after a three-year 
     probationary period, they do not meet the qualification 
     requirements established in section 1724 for members of the 
     acquisition workforce.
     Report on implementation of recommendations of the 
         Acquisition 2005 Task Force (sec. 825)
       The Senate bill contained a provision (sec. 811) that would 
     require the Secretary of Defense to report on the 
     implementation of the recommendations of the Department of 
     Defense Acquisition 2005 Task Force included in the report 
     entitled ``Shaping the Civilian Acquisition Workforce of the 
     Future.''
       The House amendment contained no similar provision.
       The House recedes.

                       Subtitle D--Other Matters

     Identification of errors made by executive agencies in 
         payments to contractors and recovery of amounts 
         erroneously paid (sec. 831)
       The House amendment contained a series of provisions (sec. 
     811-819) that would require executive agencies to conduct a 
     program to recover erroneously made payments.
       The Senate bill contained no similar provision.
       The Senate recedes with an amendment that would modify the 
     recovery audit provisions to: (1) modify requirements for the 
     disposition of recovered funds; (2) delete funding 
     requirements for the management improvement program; and (3) 
     delete a provision relating to liability for violation of 
     privacy requirements.
     Codification and modification of provision of law known as 
         the ``Berry Amendment'' (sec. 832)
       The House amendment contained a provision (sec. 805) that 
     would codify the requirements of the ``Berry Amendment'' 
     enacted as section 9005 of the Department of Defense 
     Appropriations Act, 1993 (P.L. 102-396), and modify those 
     requirements to: (1) require advance congressional 
     notification of all waivers; (2) specifically include 
     parachutes on the list of items covered; and (3) clarify that 
     non-appropriated fund entities are not covered.
       The Senate bill contained no similar provision.
       The Senate recedes with an amendment that would codify the 
     requirements of the ``Berry Amendment'' and clarify that non-
     appropriated fund entities are not covered. The conferees 
     expect the Department to comply with a reasonable 
     notification request from the Armed Services Committee of the 
     Senate or the House of Representatives. The conferees also 
     expect the Department to ensure that no United States 
     manufacturer can provide the required item in a sufficient 
     quality or quantity before granting a waiver.
     Personal services contracts to be performed by individuals or 
         organizations abroad (sec. 833)
       The Senate bill contained a provision (sec. 1218) that 
     would amend section 2669 of title 22, United States Code, to 
     authorize the Secretary of State, upon the request of the 
     Secretary of Defense or the head of any other department or 
     agency of the United States, to enter into personal service 
     contracts with individuals to perform services in support of 
     the Department of Defense or such other department or agency.
       The House amendment contained a provision (sec. 804) that 
     would authorize the Secretary of Defense to contract with 
     individuals or organizations to perform services in countries 
     with which the United States has no Status of Forces 
     Agreement.

[[Page 25535]]

       The House recedes.
     Requirements regarding insensitive munitions (sec. 834)
       The Senate bill contained a provision (sec. 833) that would 
     require the Secretary of Defense to have a program ensuring 
     that munitions are resistant to unplanned stimuli. The 
     provision also required a report to Congress, submitted with 
     the annual budget request. The report would identify all 
     waivers, and the reasons for such decisions, granted under 
     insensitive munitions regulations, as well as all funding for 
     insensitive munitions programs in the current budget request.
       The House amendment contained no similar provision.
       The House recedes with an amendment that would clarify the 
     requirement for the Secretary of Defense to ensure that 
     munitions are made as insensitive as possible to unplanned 
     stimuli. It limits the report on waivers granted under 
     insensitive munitions regulations and on associated funding 
     to three years, from fiscal year 2003-2005.
     Inapplicability of limitation to small purchases of miniature 
         or instrument ball or roller bearings under certain 
         circumstances (sec. 835)
       The Senate bill contained a provision (sec. 832) that would 
     provide certain exceptions to the requirement in section 2534 
     of title 10, United States Code, to purchase ball and roller 
     bearings from domestic sources.
       The House amendment contained no similar provision.
       The House recedes with an amendment that would authorize 
     the Department of Defense (DOD) to make purchases of ball and 
     roller bearings from other than domestic sources without 
     obtaining a waiver under section 2534, provided that: (1) no 
     such purchase exceeds the micropurchase threshold of $2,500; 
     and (2) the cumulative total of such purchases does not 
     exceed $200,000 in any fiscal year. The DOD would be required 
     to keep track of such purchases to the extent necessary to 
     ensure that it remains in compliance with the annual 
     limitation.
     Temporary emergency procurement authority to facilitate the 
         defense against terrorism or biological or chemical 
         attack (sec. 836)
       The conference agreement includes a provision that would 
     provide temporary emergency procurement authority to assist 
     the Department of Defense in the defense against terrorism 
     and biological or chemical attack. The provision would 
     provide the following authorities in fiscal years 2002 and 
     2003: (1) an increase of the micro-purchase threshold to 
     $15,000 for purchases of property and services that would 
     facilitate the defense against terrorism or biological or 
     chemical attack against the United States; (2) an increase of 
     the simplified acquisition threshold to $250,000 (inside the 
     United States) and to $500,000 (outside the United States) 
     for contracts awarded in support of a contingency operation 
     or a humanitarian or peacekeeping operation; and (3) 
     authority to treat as commercial items any biotechnology 
     goods and services purchased to facilitate the defense 
     against terrorism or biological or chemical attack. In 
     addition, the provision would require the Secretary of 
     Defense to recommend any additional emergency procurement 
     authority that the Secretary determines is necessary to 
     support operations carried out to combat terrorism.

                   Legislative Provisions Not Adopted

     Consolidation of defense contracts
       The Senate bill contained a provision (sec. 822) that would 
     prohibit the consolidation of contract requirements in excess 
     of $5.0 million absent a written determination that the 
     benefits of the acquisition strategy, including the 
     consolidated contract requirements, substantially exceed the 
     benefits of alternative contracting approaches that would 
     involve a lesser degree of consolidation.
       The House amendment contained a provision (sec. 807) that 
     would require the Secretary of Defense to track 
     consolidations of contract requirements.
       The conference report does not include either provision.
       The conferees note that Section 15(p) of the Small Business 
     Act (15 U.S.C. Section 644(p)) requires the Small Business 
     Administration (SBA) to maintain certain data and provide 
     certain reports regarding bundled contracts. This provision 
     also states that the head of a contracting agency shall 
     assist the SBA by providing ``procurement information 
     collected through existing agency data collection sources.''
       There is no requirement in Section 15(p) for the Secretary 
     of Defense to modify existing data collection systems. The 
     conferees direct the Secretary of Defense, when complying 
     with this provision, to ensure that the Department of Defense 
     does not modify existing data collection systems, create new 
     data collection systems, or collect information not available 
     in existing data collection systems to collect data on the 
     consolidation or bundling of contract requirements.
     HUBzone small business concerns
       The Senate bill contained a provision (sec. 824) that would 
     modify requirements relating to HUBZone small business 
     concerns.
       The House amendment contained no similar provision.
       The Senate recedes.
     Small business procurement competition
       The Senate bill contained a provision (sec. 1068) that 
     would address teaming arrangements among small businesses.
       The House amendment contained no similar provision.
       The Senate recedes.

      Title IX--Department of Defense Organization and Management

                       Items of Special Interest

     Organizational changes to the Office of the Secretary of 
         Defense
       The conferees considered a number of legislative proposals 
     made by the Secretary of Defense to change the organizational 
     structure of the Office of the Secretary of Defense (OSD) to 
     deal with terrorism, homeland defense, and intelligence 
     matters.
       While the conferees acknowledge the importance of aligning 
     appropriate organizational resources to address these 
     matters, the conferees decided not to act at this time 
     because of the lack of specificity of the legislative 
     requests and supporting materials, including the insufficient 
     explanation as to how the proposed changes would fit into the 
     existing statutory structure. The conferees believe that any 
     further changes to the organizational structure of OSD must 
     be made within the context of a unified and consistent 
     framework addressing all elements within the Office.
       To that end, the conferees urge the Secretary of Defense to 
     submit to the Committees on Armed Services of the Senate and 
     the House of Representatives a comprehensive plan that would 
     address the following issues related to the organization of 
     the office of the Secretary of Defense: the number and roles 
     of the under secretaries; the appropriate uses of deputy 
     under secretary and principal deputy under secretary 
     positions; the appropriate number and uses of assistant 
     secretaries and their relationship to other positions within 
     the OSD; the consistency of the requirement for Senate 
     confirmation across positions; and the most beneficial 
     organizational structures for increasingly important 
     functions such as combating terrorism, homeland security, and 
     intelligence.

                     Legislative Provisions Adopted

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

     Deputy Under Secretary of Defense for Personnel and Readiness 
         (sec. 901)
       The Senate bill contained a provision (sec. 901) that would 
     establish a new position requiring Senate confirmation within 
     the Office of the Secretary of Defense (OSD) known as the 
     Deputy Under Secretary of Defense for Personnel and 
     Readiness. The provision would also reduce the number of 
     assistant secretaries of defense from nine to eight.
       The House amendment contained no similar provision.
       The House recedes with a clarifying amendment.
       The conferees note that the creation of a Deputy Under-
     Secretary for Personnel and Readiness will bring the number 
     of deputy under secretaries within the OSD to nine, only four 
     of which require Senate confirmation. Further, there is no 
     consistent organizational approach to the responsibilities 
     and authorities of deputy under secretaries, assistant 
     secretaries, and directors of programmatic offices throughout 
     the four under secretariats within the OSD. The conferees are 
     concerned with this arrangement and have urged the Secretary 
     of Defense elsewhere in this report to submit a comprehensive 
     plan to the Committees on Armed Services of the Senate and 
     the House of Representatives on the optimal organizational 
     structure for the OSD.
     Sense of Congress on functions of new Office of Force 
         Transformation in the Office of the Secretary of Defense 
         (sec. 902)
       The House amendment contained a provision (sec. 902) that 
     would express the sense of Congress that the Secretary of 
     Defense should consider the establishment of an Office of 
     Transformation within the Office of the Secretary of Defense 
     to advise the Secretary on the various aspects of force 
     transformation and would further express the sense of 
     Congress that the Secretary should consider providing funding 
     adequate for sponsoring selective prototyping efforts, 
     wargames, and studies and analysis and for appropriate 
     staffing, as recommended by the director of such an Office of 
     Transformation.
       The Senate bill contained no similar provision.
       The Senate recedes with an amendment that reflects the 
     latest developments in the Department of Defense, including 
     the decision by the Secretary of Defense to establish an 
     Office of Transformation.
     Suspension of reorganization of engineering and technical 
         authority policy within the Naval Sea Systems Command 
         pending report to congressional committees (sec. 903)
       The Senate bill contained a provision (sec. 906) that would 
     delay the implementation of a Naval Sea Systems Command 
     (NAVSEA) reorganization of engineering and technical 
     authority policy until 60 days after the Secretary of the 
     Navy provides a report on the Navy's plans and justification 
     for the proposed realignment.
       The House amendment contained no similar provision.

[[Page 25536]]

       The House recedes with an amendment that would prohibit the 
     Secretary of the Navy from granting final approval for the 
     reorganization of engineering and technical authority policy 
     within NAVSEA until 45 days after the Secretary submits to 
     the congressional defense committees a report on the details 
     of the reorganization.

                      Subtitle B--Space Activities

     Space Activities (secs. 911-915)
       The Senate bill contained a series of provisions (sec. 911-
     916) that would address concerns about the Department of 
     Defense (DOD) management structure for space activities. The 
     provisions would provide the Secretary of Defense 
     discretionary authority to establish a new position of Under 
     Secretary of Defense for Space, Intelligence and Information; 
     would establish the duties of the position, including serving 
     as the Director of the National Reconnaissance Office; and 
     would require a report from the Secretary on the proposed 
     organization of that office. Upon establishment of the new 
     Under Secretary, the provisions would establish an additional 
     Assistant Secretary of Defense and require that two of the 
     total number of assistant secretaries would have as their 
     principle duties supervision of activities relating to space, 
     intelligence, and information. Both would report to the Under 
     Secretary of Defense for Space, Intelligence, and 
     Information. If the Secretary of Defense failed to exercise 
     the authority to establish the new Under Secretary position, 
     he would be required to submit a report describing the 
     actions he had taken to address the problems in the 
     management and organization of the Department of Defense for 
     space activities that were identified by the Commission to 
     Assess United States National Security Space Management and 
     Organization (Space Commission). The provisions would also 
     require the Comptroller General to assess the progress of the 
     DOD in implementing the recommendations of the Space 
     Commission; designate the Air Force as the executive agent 
     for space; require the Secretary of Defense to designate 
     space as a major force program; require that the officer 
     commanding the Air Force Space Command have the grade of 
     general; establish a separate space career field; and 
     prohibit the commander of Air Force Space Command from 
     serving simultaneously as the Commander-in-Chief, U.S. Space 
     Command and the commander of the North American Air Defense 
     Command.
       The House amendment contained a series of similar 
     provisions (secs. 1401-1408) that would provide discretionary 
     authority for the Secretary of Defense to take the following 
     actions: establish a new position of Under Secretary of 
     Defense for Space Information and Intelligence; establish two 
     new Assistant Secretaries of Defense to serve under the new 
     Under Secretary of Defense; assign the Secretary of the Air 
     Force to be the executive agent of the Department of Defense 
     for planning and execution of space acquisition programs, 
     projects and activities; establish a major force program for 
     the space programs of the Department of Defense; and require 
     that the officer serving as the commander of Air Force Space 
     Command not serve simultaneously as the commander of the 
     North American Air Defense Command or the Commander-in-Chief, 
     U. S. Space Command. The House amendment also included 
     provisions that: would provide discretionary authority to the 
     Secretary of the Air Force to establish a separate space 
     career field and to designate the Under Secretary of the Air 
     Force as the acquisition executive of the Air Force for 
     Department of Defense space programs; and would require an 
     assessment by the Comptroller General of the actions taken by 
     the Secretary of Defense to implement the recommendations 
     contained in the report of the Commission to Assess United 
     States National Security Space Management and Organization. 
     The House amendment also included a provision to clarify that 
     nothing in the foregoing provisions changed the 
     responsibilities of the Director of Central Intelligence.
       The conferees recognize that the importance of space 
     programs, projects and activities in support of military 
     activities continues to grow. In the interest of improving 
     the efficiency and effectiveness of U.S. military operations, 
     the conferees agree to a provision (sec. 912) that would 
     require the Secretary of the Air Force to establish and 
     implement policies and procedures to develop a space career 
     field.
       The conferees agree to a provision (sec. 913) that would 
     require the Secretary of Defense to submit a report on steps 
     taken to improve management, organization and oversight of 
     space programs, space activities, and funding and personnel 
     resources.
       The conferees agree to a provision (sec. 911) that would 
     require the Secretary of Defense to take appropriate actions 
     to ensure that space development and acquisition programs are 
     carried out through joint program offices and, to the maximum 
     extent practicable, ensure that officers of the Army, Navy, 
     Marine Corps, and Air Force are assigned to and hold 
     leadership positions in such joint program offices. This 
     section would also direct the Secretary to designate 
     positions in the Office of the National Security Space 
     Architect as joint duty assignments as appropriate.
       The conferees have also included a provision (sec. 914) 
     that requires the Comptroller General to assess the actions 
     taken by the Secretary of Defense to implement the 
     recommendations contained in the Space Commission report.
       The conferees also express their view in section 902 that 
     the best qualified officer from any service should be 
     appointed as Commander-in-Chief, U.S. Space Command, and that 
     the appointee be a four-star general or flag officer 
     position.
       Both the House and Senate provisions were motivated by a 
     desire to encourage the implementation of the recommendations 
     of the Space Commission, which concluded that the Department 
     of Defense is not adequately organized or focused to meet 
     U.S. national security space needs.
       One of the central reforms recommended by the Space 
     Commission was the establishment of a new Under Secretary of 
     Defense for Space, Intelligence, and Information to provide 
     high-level attention and guidance to space programs. This 
     recommendation is not included in the provisions in this 
     conference report primarily because the Secretary of Defense 
     has indicated that he is in the process of implementing the 
     recommendations of the Space Commission and that such a 
     provision would interfere with his freedom to manage the DOD. 
     The conferees, however, do not agree that these provisions 
     would reduce the Secretary's freedom to manage the 
     Department, as the provisions were intended to provide him 
     additional flexibility. The conferees understand, however, 
     that the Secretary has stated his intent not to exercise this 
     authority if it is provided to him.
       The conferees also note that the Secretary has stated his 
     intent to designate the Secretary of the Air Force as the 
     executive agent for DOD space programs. The conferees remain 
     concerned that the continuing absence of a coherent, senior-
     level focus for space programs within the Office of the 
     Secretary of Defense and the concentration of authority and 
     resources for space programs in the Air Force may not be 
     sufficient to resolve the space management and organizational 
     challenges identified by the Space Commission and may 
     inadvertently be a source of new problems. The conferees will 
     carefully review the reports required in sections 913 and 914 
     and will consider whether there is a need in the future for 
     additional organization and management reforms.
       Noting that the Space Commission also concluded that the 
     depth of experience and technical expertise in space 
     operations and technology has suffered over the past decade, 
     the conferees believe establishing a space career field in 
     the Air Force that includes development and operation of 
     space systems and development of space doctrine and 
     operational concepts is key to sustaining U.S. leadership in 
     space. The Chief of Staff of the Air Force recently stated 
     that ``space * * * is a separate culture * * * different than 
     what airmen experience in the air * * * We have to respect 
     that, and we have to grow and nurture that culture until it 
     matures.''
       The conferees are encouraged by the progress made by the 
     Air Force in this direction to date, but believe that the 
     detailed planning and implementation of a space career field 
     must be carefully monitored. The conferees recognize that the 
     commander of Air Force Space Command will be provided the 
     resources and assigned responsibility to organize, train, and 
     equip for Air Force space development, acquisition and 
     operations. Furthermore, consistent with the implementation 
     guidance issued by the Secretary of Defense on October 18, 
     2001, the conferees expect that the commander of Air Force 
     Space Command will be assigned appropriate responsibility for 
     managing the space career field.
       The conferees further understand that the Secretary of 
     Defense has stated his intent to establish a ``virtual major 
     force program'' to provide better visibility and insight into 
     DOD funding for space programs and activities. The conferees 
     note that senior DOD officials have contended that 
     establishing a major force program (MFP) for space programs 
     might have serious unintended consequences, although no such 
     consequences have ever been described. The conferees 
     recognize, however, that a virtual MFPC--the designation of 
     funding for space programs and activities without formally 
     creating a space MFP--could represent a more flexible 
     approach. Therefore, the conferees expect the virtual MFP for 
     space to be included in the Future Years Defense Program 
     submitted with the 2003 fiscal year budget request.
       The conferees, in section 912 of this bill, provided 
     sufficient flexibility in general officer limits to ensure 
     that the commander of Air Force Space Command will serve in 
     the grade of general. The conferees also believe that the 
     officer in this position should not serve concurrently as 
     commander of the North American Air Defense Command or as 
     Commander-in-Chief, U.S. Space Command. The conferees 
     understand that the Secretary intends to implement these 
     Space Commission recommendations and will continue to monitor 
     the Department's actions in these matters.

[[Page 25537]]



                          Subtitle C--Reports

     Revised requirement for Chairman of the Joint Chiefs of Staff 
         to advise Secretary of Defense on the assignment of roles 
         and missions to the armed forces (sec. 921)
       The House amendment contained a provision (sec. 904) that 
     would repeal the requirement contained in section 153(b) of 
     title 10, United States Code, for the Chairman of the Joint 
     Chiefs of Staff to submit a review of the assignment of roles 
     and missions of the armed forces to the Secretary of Defense 
     every three years. The provision would also amend section 118 
     of title 10, United States Code, to require the Chairman to 
     conduct such a review as part of the Quadrennial Defense 
     Review (QDR) process and that the results of that review be 
     included in the Chairman's assessment of the QDR that is 
     submitted to Congress.
       The Senate bill contained a similar provision (sec. 1023).
       The Senate recedes with an amendment that also requires the 
     Chairman of the Joint Chiefs of Staff to submit to Congress 
     no later than one year after the date of the enactment of 
     this Act a separate assessment of the assignment of roles and 
     missions of the armed forces based upon the findings in the 
     2001 QDR issued by the Secretary of Defense on September 30, 
     2001.
     Revised requirements for content of annual report on joint 
         warfighting experimentation (sec. 922)
       The Senate bill contained a provision (sec. 905) that would 
     amend section 485 of title 10, United States Code, to clarify 
     some of the contents of the annual joint warfighting report 
     and require the inclusion of a specific assessment of whether 
     there is a need for a major force program, or some other 
     resource mechanism, for funding joint experimentation and for 
     funding the rapid development and acquisition of uniquely 
     joint warfighting technologies that have been empirically 
     demonstrated through such experimentation.
       The House amendment contained no similar provision.
       The House recedes with a technical amendment.
     Repeal of requirement for one of three remaining required 
         reports on activities of Joint Requirements Oversight 
         Council (sec. 923)
       The House amendment contained a provision (sec. 905) that 
     would repeal section 916 of the Floyd D. Spence National 
     Defense Authorization Act for Fiscal Year 2001 that requires 
     the Chairman of the Joint Chiefs of Staff to submit a semi-
     annual report to the Committees on Armed Services of the 
     Senate and House of Representatives on specific activities of 
     the Joint Requirements Oversight Council through March 1, 
     2003.
       The Senate bill contained no similar provision.
       The Senate recedes with an amendment that repeals the 
     requirement for one of the three remaining reports and 
     provides for the March 1, 2003 report to cover all of the 
     preceding fiscal year.
     Revised joint report on establishment of national 
         collaborative information analysis capability (sec. 924)
       The House amendment contained a provision (sec. 903) that 
     would require the Secretary of Defense and the Director of 
     Central Intelligence to submit a revised report assessing 
     alternatives for the establishment of a national 
     collaborative information analysis capability. The provision 
     would direct that the revised report focus on only the range 
     of architecture alternatives that would involve the 
     participation of all federal agencies involved in the 
     collection of intelligence.
       The Senate bill contained no similar provision.
       The Senate recedes with an amendment that would require 
     that the report identify legislative or regulatory changes 
     that would be needed in order to implement the preferred 
     architecture in the report.
       The conferees note that the original provision in the Floyd 
     D. Spence National Defense Authorization Act for Fiscal Year 
     2001 included direction that the architectures contemplated 
     for the original report, and, by reference, this revised 
     report, should be consistent with requirements of the Privacy 
     Act of 1974, as amended.

                       Subtitle D--Other Matters

     Conforming amendments relating to change of name of Military 
         Airlift Command to Air Mobility Command (sec. 931)
       The Senate bill contained a provision (sec. 907) that would 
     change references in the United States Code to the former 
     Military Airlift Command to refer to the command by its 
     current designation as the Air Mobility Command.
       The House amendment contained a similar provision (sec. 
     906).
       The House recedes with an amendment that would clarify that 
     the changes would be made to current references to the 
     Military Airlift Command.
     Organizational realignment for Navy Director for 
         Expeditionary Warfare (sec. 932)
       The House amendment contained a provision (sec. 907) that 
     would amend section 5038(a) of title 10, United States Code, 
     with respect to the specific office of the Deputy Chief of 
     Naval Operations within which the Director for Expeditionary 
     Warfare shall be located.
       The Senate bill contained a similar provision (sec. 904).
       The Senate recedes.

                   Legislative Provisions Not Adopted

     Reductions in acquisition and support workforce
       The Senate bill contained a provision (sec. 812) that would 
     establish a moratorium on further cuts in the acquisition 
     workforce for three years.
       The House amendment contained a provision (sec. 901) that 
     would mandate a reduction of 13,000 in the acquisition 
     workforce in fiscal year 2002.
       The conference agreement does not include either provision.
     Responsibility of the Under Secretary of the Air Force for 
         acquisition of space launch vehicles and space launch 
         services
       The Senate bill contained a provision (sec. 902) that would 
     assign responsibility for the acquisition of space launch 
     vehicles and space launch services for the Department of 
     Defense and the National Reconnaissance Office (NRO) to the 
     Under Secretary of the Air Force.
       The House amendment contained no similar provision.
       The Senate recedes.
       The conferees note that the Air Force has managed and 
     contracted for the acquisition of space launch vehicles and 
     services for both the Air Force and the NRO. This arrangement 
     has allowed the Air Force to achieve cost savings and 
     efficiencies of scale for both organizations. The conferees 
     continue to oppose proposals that would require the NRO to 
     manage and contract for its own launch vehicles and services.

                      Title X--General Provisions

                        Counter-Drug Activities

       The budget request for drug interdiction and other counter-
     drug activities of the Department of Defense (DOD) for fiscal 
     year 2002 totaled approximately $1.0 billion: $820.4 million 
     in the central transfer account; $166.8 million in the 
     operating budgets of the military services for authorized 
     counter-drug operations; and $12.5 million in the military 
     construction account for infrastructure improvements at the 
     forward operating locations.
       The conferees recommend the following fiscal year 2002 
     budget for the Department's central transfer account.

DRUG INTERDICTION AND COUNTER-DRUG ACTIVITIES, CENTRAL TRANSFER ACCOUNT

         [In millions of dollars; may not add due to rounding]

Fiscal Year 2002 Counter-drug Request..........................$820.381
Increases:
    National Guard Support........................................16.0 
    Operation Caper Focus..........................................4.0 
    Southwest Border Fence.........................................5.0 
Decreases:
    AWACs Tactical Operations Support..............................2.5 
    Counter-drug Tanker Operations Support.........................1.0 
    E-2 Support....................................................1.0 
    Peru Riverine Program..........................................5.0 
    Tracker Aircraft...............................................2.0 
    Research, Development, Test & Evaluation.......................4.0 
    Patrol Coastals................................................1.5 
    Tethered Aerostat Radar System.................................8.0 
Fiscal Year 2002 Counter-drug Funding...........................820.381
     National Guard counter-drug activities
       The conferees agree to authorize an additional $16.0 
     million for the counter-drug activities of the National 
     Guard, including National Guard State Plans and the National 
     Guard Counter-drug Schools.
     Operation Caper Focus
       The conferees also agree to authorize an additional $4.0 
     million for Operation Caper Focus, an important initiative to 
     disrupt narcotics trafficking in the Eastern Pacific. To the 
     extent that assets become available, the conferees expect the 
     Secretary of Defense to make them available for Operation 
     Caper Focus.
     Tethered Aerostat Radar System
       The conferees direct that a higher priority be given to 
     operational availability of the Tethered Aerostat Radar 
     System than to its modernization.

                       Items of Special Interest

     Automobile Safety Program
       The conferees are concerned with the number of deaths and 
     serious injuries to military service members and Department 
     of Defense civilian employees due to automobile collisions 
     and strongly support innovative safety programs designed to 
     eliminate these accidents. The conferees understand that an 
     automobile safety program recently conducted at Fort Polk, 
     Louisiana is proving to be a sound and successful attempt at 
     accident reduction. The conferees recommend that the 
     Secretary of Defense consider an expansion of the program to 
     assist in achieving the Department's safe driving goals.

                     Legislative Provisions Adopted

                     Subtitle A--Financial Matters

     Transfer authority (sec. 1001)
       The Senate bill contained a provision (sec. 1001) that 
     would provide the reprogramming

[[Page 25538]]

     authority for the transfer of authorized funds made available 
     in Division A of this Act.
       The House amendment contained an identical provision.
       The conference agreement includes this provision.
     Incorporation of classified annex (sec. 1002)
       The House amendment contained a provision (sec. 1002) that 
     would incorporate the classified annex prepared by the 
     Committee on Armed Services into this Act.
       The Senate bill contained no similar provision.
       The Senate recedes with a technical amendment that would 
     provide that the classified annex prepared by the committee 
     of conference be incorporated into this Act.
     Authorization of supplemental appropriations for fiscal year 
         2001 (sec. 1003)
       The Senate bill contained a provision (sec. 1003) that 
     would authorize the supplemental appropriations enacted in 
     the Supplemental Appropriations Act, 2001 (Public Law 107-20) 
     which provided supplemental funding for Department of Defense 
     programs including increased health care costs, operating 
     expenses, and utility costs.
       The House amendment contained no similar provision.
       The House recedes.
     United States contribution to NATO common-funded budgets in 
         fiscal year 2002 (sec. 1004)
       The Senate bill contained a provision (sec. 1004) that 
     would authorize the U.S. contribution to NATO common-funded 
     budgets for fiscal year 2002, including the use of unexpended 
     balances. The resolution of ratification for the Protocol to 
     the North Atlantic Treaty of 1949 on the Accession of Poland, 
     Hungary and the Czech Republic contained a provision (section 
     3(2)(c)(ii)) requiring a specific authorization for U.S. 
     payments to the common-funded budgets of NATO for each fiscal 
     year, beginning in fiscal year 1989, that payments exceed the 
     fiscal year 1998 total.
       The House amendment contained no similar provision.
       The House recedes.
     Limitation on funds for Bosnia and Kosovo Peacekeeping 
         Operations for fiscal year 2002 (sec. 1005)
       The House amendment contained a provision (sec. 1003) that 
     would limit the amount of funds authorized to be appropriated 
     for incremental costs of the armed forces for peacekeeping 
     operations in Bosnia and Kosovo in fiscal year 2002 to the 
     amounts contained in the budget request: $1,315.6 million for 
     Bosnia and $1,528.6 million for Kosovo. The provision would 
     authorize the President to waive the limitation after 
     submitting to Congress: (1) a written certification that the 
     waiver is necessary in the national security interests of the 
     United States and that the exercise of the waiver will not 
     adversely affect the readiness of U.S. military forces; (2) a 
     report setting forth the reasons for the waiver, to include a 
     discussion of the impact of U.S. military involvement in 
     Balkan peacekeeping operations on U.S. military readiness; 
     and (3) a supplemental appropriations request for the 
     Department of Defense for the additional fiscal year 2002 
     costs associated with U.S. military participation in or 
     support for peacekeeping operations in Bosnia and Kosovo.
       The Senate bill contained no similar provision.
       The Senate recedes.
     Maximum amount for National Foreign Intelligence Program 
         (sec. 1006)
       The conferees agree to include a provision that would 
     establish a ceiling for authorization for the National 
     Foreign Intelligence Program (NFIP) equal to the amounts 
     requested by the President in the budget request for fiscal 
     year 2002. The provision would allow this ceiling to be 
     increased by any amounts provided for the NFIP in the 
     Emergency Terrorism Response Supplemental Appropriations Act, 
     2001, and any fiscal year 2002 supplemental appropriations 
     bills.
     Clarification of applicability of interest penalties for late 
         payment of interim payments due under contracts for 
         services (sec. 1007)
       The Senate bill contained a provision (sec. 1005) that 
     would clarify the effective date of section 1010 of the Floyd 
     D. Spence National Defense Authorization Act for Fiscal Year 
     2001.
       The House amendment contained no similar provision.
       The House recedes.
     Reliability of Department of Defense financial statements 
         (sec. 1008)
       The Senate bill contained a provision (sec. 1006) that 
     would direct the Department of Defense (DOD) to identify in 
     advance financial statements that will be unreliable because 
     of the Department's flawed finance and accounting systems, 
     and to minimize the resources that are used to prepare and 
     audit these statements.
       The House amendment contained no similar provision.
       The House recedes with an amendment that would clarify that 
     the Comptroller of the Department of Defense is authorized to 
     make the determination which statements will be unreliable, 
     and adjust the deadline for making such a determination.
     Financial Management Modernization Executive Committee and 
         financial feeder systems compliance process (sec. 1009)
       The Senate bill contained a provision (sec. 1007) that 
     would require the Department of Defense to establish an 
     oversight council and a management process for implementing 
     changes identified in the congressionally-mandated financial 
     management improvement plans.
       The House amendment contained no similar provision.
       The House recedes with a technical amendment.
     Authorization of funds for ballistic missile defense programs 
         or combating terrorism programs of the Department of 
         Defense (sec. 1010)
       The Senate bill contained a provision (sec. 1009) that 
     would authorize $1.3 billion, the amount by which the Senate 
     bill reduced funding for ballistic missile defense programs, 
     for whichever of the following purposes the President 
     determines to be in the national security interests of the 
     United States:
       (1) research, development, test and evaluation of ballistic 
     missile defense programs; and
       (2) activities for combating terrorism.
       The House amendment contained a comparable provision (sec. 
     1501) that would increase by $400.0 million the funding for 
     the following activities to combat terrorism: intelligence 
     programs, anti-terrorism initiatives, counter-terrorism 
     initiatives, and consequence management activities. The 
     provision included transfer authority and provided offsetting 
     reductions of $265.0 million for ballistic missile defense 
     activities, and $135.0 million for consulting services in the 
     Defense-Wide operation and maintenance account.
       The House amendment also contained a provision (sec. 1502) 
     that would require that funds transferred under the authority 
     of section 1501 be merged with and available for the same 
     period of time as the appropriations to which transferred.
       The House recedes with an amendment that would authorize 
     the $1.3 billion for whichever of the following purposes the 
     President determines to be in the national security interests 
     of the United States:
       (1) research, development, test and evaluation of ballistic 
     missile defense programs of the Ballistic Missile Defense 
     Organization; and
       (2) activities of the Department of Defense for combating 
     terrorism.
       The amendment would also require the Secretary of Defense 
     to report to the congressional defense committees on the 
     allocation of the funds pursuant to the President's 
     determination.

                Subtitle B--Naval Vessels and Shipyards

     Authority to transfer naval vessels to certain foreign 
         countries (sec. 1011)
       The Senate bill contained a provision (sec. 1216) that 
     would transfer to various countries:
       (1) on a grant basis, one Oliver Hazard Perry-class frigate 
     and six Knox-class frigates; and
       (2) on a sale basis, four Kidd-class destroyers and two 
     Oliver Hazard Perry-class frigates.
       The provision would direct that, to the maximum extent 
     practicable, the President shall require, as a condition of 
     transfer, that repair and refurbishment associated with the 
     transfer be accomplished in a shipyard located in the United 
     States.
       The authority under this provision would expire at the end 
     of the two-year period that begins on the date of enactment 
     of the National Defense Authorization Act for Fiscal Year 
     2002.
       The House amendment contained no similar provision.
       The House recedes with an amendment that would provide 
     authority for the President to waive lease payments for up to 
     one year for vessel transfers that:
       (1) would be converted, under the provisions of this Act, 
     from a lease to a grant; and
       (2) are among the grant transfers approved in this Act.
     Sale of Glomar Explorer to the lessee (sec. 1012)
       The Senate bill and the House amendment did not contain any 
     provision relating to the current lease arrangement for the 
     vessel Glomar Explorer.
       The conferees agree to include a provision that would 
     authorize the Secretary of the Navy, at his discretion, to 
     sell the Glomar Explorer (AG-193) to the current lessee. Any 
     such sale would have to be based on a price that represents a 
     fair and reasonable amount, as determined by the Secretary.
     Leasing of Navy ships for University National Oceanographic 
         Laboratory System (sec. 1013)
       The Senate bill contained a provision (sec. 1067) that 
     would modify section 2667, title 10, United States Code to 
     allow the Navy to renew the five-year leases for certain Navy 
     research vessels without recompeting them, as long as the 
     initial lease was awarded competitively.
       The House amendment contained a similar provision (sec. 
     1047).
       The conference agreement includes this provision.

[[Page 25539]]


     Increase in limitations on administrative authority of the 
         Navy to settle admiralty claims (sec. 1014)
       The House amendment contained a provision (sec. 1004) that 
     would increase the administrative authority of the Navy to 
     settle admiralty claims.
       The Senate bill contained no similar provision.
       The Senate recedes.

                  Subtitle C--Counter-Drug Activities

     Extension and restatement of authority to provide Department 
         of Defense support for counter-drug activities of other 
         governmental agencies (sec. 1021)
       The Senate bill contained a provision (sec. 331) that would 
     codify section 1004 of the National Defense Authorization Act 
     for Fiscal Year 1991, as amended, in title 10, United States 
     Code.
       The House amendment contained no similar provision.
       The House recedes with an amendment that restates section 
     1004 but does not codify it, makes it effective during fiscal 
     years 2002 through 2006, and makes several technical changes.
     Extension of reporting requirement regarding Department of 
         Defense expenditures to support foreign counter-drug 
         activities (sec. 1022)
       The House amendment contained a provision (sec. 1021) that 
     would extend for an additional year the requirement in the 
     Floyd D. Spence National Defense Authorization Act for Fiscal 
     Year 2001 that the Secretary of Defense report to the 
     congressional defense committees detailing the expenditure of 
     funds in direct or indirect support of the counter-drug 
     activities of foreign governments.
       The Senate bill contained no similar provisions.
       The Senate recedes.
     Authority to transfer Tracker aircraft currently used by 
         Armed Forces for counter-drug purposes (sec. 1023)
       The House amendment contained a provision (sec. 1022) that 
     would authorize the Secretary of Defense to transfer all 
     Tracker aircraft in the inventory of the Department of 
     Defense to the administrative jurisdiction and operational 
     control of another federal agency. The provision also 
     provided that any Tracker aircraft remaining in the inventory 
     of the Department of Defense after September 30, 2002 may not 
     be used by the armed forces for counter-drug purposes after 
     that date.
       The Senate bill contained no similar provision.
       The Senate recedes.
     Limitation on use of funds for operation of Tethered Aerostat 
         Radar System pending submission of required report (sec. 
         1024)
       The House amendment contained a provision (sec. 1023) that 
     would authorize the Secretary of Defense to transfer to the 
     administrative jurisdiction and operational control of 
     another federal agency the Tethered Aerostat Radar System 
     (TARS) currently used by the armed forces in counter-drug 
     detection and monitoring. The provision also provided that if 
     the TARS is not transferred by September 30, 2002, it may not 
     be used by the armed forces for counter-drug purposes after 
     that date.
       The Senate bill contained no similar provision.
       The Senate recedes with an amendment that provides that not 
     more than 50 percent of the funds available for fiscal year 
     2002 for operation of the TARS may be obligated or expended 
     until such time as the Secretary of Defense submits to 
     Congress the report on the status of the TARS required to be 
     submitted by the Secretary, in consultation with the 
     Secretary of the Treasury, by the Floyd D. Spence National 
     Defense Authorization Act for Fiscal Year 2001. The conferees 
     direct that the report contain a new review of the 
     requirements of the Department of Defense and the Department 
     of the Treasury, including the U.S. Customs Service, and a 
     new assessment of the value of the TARS in the conduct of 
     counter-drug detection and monitoring and border security and 
     air sovereignty operations in light of the changed 
     circumstances in the aftermath of the September 11, 2001 
     terrorist attacks.

                      Subtitle D--Strategic Forces

     Repeal of limitation on retirement or dismantlement of 
         strategic nuclear delivery systems (sec. 1031)
       The Senate bill contained a provision (sec. 1011) that 
     would repeal section 1302 of the National Defense 
     Authorization Act for Fiscal Year 1998, which prohibits the 
     obligation or expenditure of funds to retire or prepare to 
     retire certain strategic nuclear delivery systems until the 
     START II Treaty enters into force.
       The House amendment contained a similar provision (sec. 
     1043) that would amend section 1302 to allow the retirement 
     of Peacekeeper Intercontinental Ballistic Missiles.
       The House recedes.
     Air Force bomber force structure (sec. 1032)
       The Senate bill contained a provision (sec. 1012) that 
     would prevent the Department of Defense from retiring or 
     dismantling any of the 93 B-1B Lancer bombers in the Air 
     National Guard, or from transferring or reassigning any of 
     those aircraft, until 30 days after delivery of a series of 
     reports to the Armed Services Committees of the Senate and 
     House of Representatives, including: (1) the national 
     security strategy; (2) the Quadrennial Defense Review; (3) a 
     report detailing the analysis for any consolidation and force 
     structure reduction, along with Department plans for the 
     National Guard units currently flying B-1B bombers; and (4) 
     the revised Nuclear Posture Review. The provision would also 
     require the Comptroller General to conduct a study and submit 
     a Government Accounting Office (GAO) report on the proposed 
     consolidation and force structure reduction by January 31, 
     2002.
       The House amendment contained a similar provision (sec. 
     1045) that would differ from the Senate position only in that 
     the GAO report would not be due until 180 days after the 
     Department's report of analysis of the consolidation and 
     force structure reduction.
       The conferees agree to a provision that would greatly 
     streamline the reporting requirements. The provision would 
     prevent the obligation of funds for retiring, dismantling, 
     transferring, or reassigning any of the 93 B-1B bombers until 
     15 days after the Secretary of the Air Force submits a report 
     that provides details of the proposed consolidation, force 
     structure reduction, and plans for affected National Guard 
     units. This provision is not intended in any way to prevent 
     the initiation of planning activities for the execution of 
     this plan.
     Additional element for revised nuclear posture review (sec. 
         1033)
       The Senate bill contained a provision (sec. 1013) that 
     would amend section 1041 of the Floyd D. Spence National 
     Defense Authorization Act for Fiscal Year 2001 by adding a 
     new element to the nuclear posture review. The new element 
     would direct the Secretary of Defense to look at the 
     possibility of deactivating or dealerting nuclear warheads or 
     delivery systems.
       The House amendment contained no similar provision.
       The House recedes.
       The conferees are aware that the concepts of dealerting and 
     early deactivation of nuclear weapons and systems have been 
     the subject of debate and discussion, and that there are a 
     range of views with respect to these critical issues. By 
     adding this additional requirement to the Nuclear Posture 
     Review (NPR), the conferees wish to have the benefit of a 
     careful and thorough review of these concepts in the broader 
     context of the NPR. Inclusion of this additional element is 
     not intended by the conferees to presuppose the outcome of 
     this review.
     Report on options for modernization and enhancement of 
         missile wing helicopter support (sec. 1034)
       The Senate bill contained a provision (sec. 1073) that 
     would require the Secretary of Defense to submit a report, 
     with submission of the fiscal year 2003 budget request, that 
     would provide information on the Secretary's preferred option 
     for furnishing helicopter support for the Air Force 
     intercontinental ballistic missile wings. The provision 
     included certain options that should be considered, allowed 
     additional options to be considered, and included factors 
     that should be considered in the review process.
       The House amendment contained no similar provision.
       The House recedes with an amendment that would specify that 
     the report must be submitted not later than the date of the 
     submission of the fiscal year 2003 budget request.

           Subtitle E--Other Department of Defense Provisions

     Secretary of Defense recommendation on need for Department of 
         Defense review of proposed federal agency actions to 
         consider possible impact on national defense (sec. 1041)
       The House amendment contained a provision (sec. 312) that 
     would require the Secretary of Defense to include a national 
     security impact statement in each environmental impact 
     statement or environmental assessment prepared in connection 
     with a Department of Defense action.
       The Senate bill contained no similar provision.
       The Senate recedes with an amendment that would require the 
     Secretary of Defense to submit to the President the 
     Secretary's recommendation as to whether there should be 
     established within the Executive Branch a defense impact 
     review process and to submit a copy of that recommendation to 
     Congress. For the purposes of this section, a defense impact 
     review process means a process that provides for review of 
     certain proposed actions of other federal agencies to 
     identify any reasonably foreseeable significant adverse 
     impact of such a proposed action on national defense.
     Department of Defense reports to Congress to be accompanied 
         by electronic version upon request (sec. 1042)
       The House amendment contained a provision (sec. 1031) that 
     would require that the Department of Defense submit copies of 
     reports to Congress in an electronic medium.
       The Senate bill contained no similar provision.
       The Senate recedes with an amendment providing that the 
     Department must provide electronic reports only upon request.

[[Page 25540]]


     Department of Defense gift authorities (sec. 1043)
       The House amendment contained a provision (sec. 1041) that 
     would clarify items that may be loaned or given under section 
     7545 of title 10, United States Code. The House amendment 
     also contained a provision (sec. 354) addressing the entities 
     to which such items may be loaned or given.
       The Senate bill contained no similar provision.
       The Senate recedes with an amendment combining the two 
     provisions.
     Acceleration of research, development, and production of 
         medical countermeasures for defense against biological 
         warfare agents (sec. 1044)
       The Senate bill contained a provision (sec. 1025) that 
     would authorize the Secretary of Defense, subject to the 
     availability of authorized and appropriated funds for such 
     purpose, to design, construct and operate on an installation 
     of the Department of Defense a government-owned, contractor-
     operated (GOCO) vaccine production facility. The provision 
     would also require the Secretary of Defense to develop a 
     long-range plan for the production and acquisition of 
     vaccines to defend against biological warfare agents, 
     including an evaluation of vaccine production options, and to 
     report to the congressional defense committees on that plan 
     by February 1, 2002.
       The House amendment contained no similar provision.
       The House recedes with an amendment that would require the 
     Secretary of Defense to carry out an accelerated program of 
     research, development and production of medical 
     countermeasures to defend against the highest threat 
     biological warfare agents. In order to accomplish this 
     objective, the conferees believe that the Department of 
     Defense should invest in multiple new technologies for the 
     prevention and treatment of anthrax and should take advantage 
     of ideas and candidate technologies from the bio-tech 
     industry. The conferees believe that the Department should 
     consider the following approaches in this effort: 
     understanding the germination process of anthrax spores and 
     the means to inhibit this process; identifying the molecular 
     behavior of the anthrax toxin and the means to intervene 
     against it at the cellular level; investigating recombinant 
     protein antigens and formulating new vaccines, including 
     multivalent vaccines that may be effective against multiple 
     strains of pathogens; investigating technologies to be used 
     as an adjunct to antibiotic treatment that may be more 
     effective in clearing pathogens from circulation; and 
     determining potential means for optimizing and extending 
     immunity in humans.
       The amendment would also require a study by the National 
     Research Council and the Institute of Medicine of the review 
     and approval process for such medical countermeasures. 
     Finally, the amendment would provide discretion for the 
     Defense Department to use up to $10.0 million of available 
     research and development funds for the accelerated program.
       The conferees note the importance to the Department of 
     Defense of producing and acquiring products needed to prevent 
     or mitigate the physiological effects of exposure to 
     biological warfare agents, including vaccines, 
     decontamination capabilities and therapeutic treatments. The 
     Department of Defense has made significant progress in this 
     area, as indicated in the July 2001 Annual Report to Congress 
     on the Department of Defense Chemical and Biological Defense 
     Program.
       However, the conferees believe that more needs to be done 
     to ensure the development and acquisition of needed products, 
     including the transition of developmental items through the 
     review and approval process, particularly vaccines and drugs. 
     The conferees urge the Department to expand its efforts to 
     acquire new technologies and products to defend against 
     biological warfare agents.
     Chemical and biological protective equipment for military 
         personnel and civilian employees of the Department of 
         Defense (sec. 1045)
       The Senate bill contained a provision (sec. 1069) that 
     would require a report on the requirements of the Department 
     of Defense regarding chemical and biological protective 
     equipment for military personnel and civilian employees of 
     the Department. The provision would also express the sense of 
     Congress on possible sources of funding for such equipment.
       The House amendment contained no similar provision.
       The House recedes with an amendment that would include an 
     assessment of an appropriate level of protection for civilian 
     employees of the Department of Defense against chemical and 
     biological attack, and would eliminate the proposed sense of 
     Congress.
     Sale of goods and services by Naval Magazine, Indian Island, 
         Alaska (sec. 1046)
       The Senate bill contained a provision (sec. 1070) that 
     would allow the Secretary of the Navy to sell, on a 
     reimbursable basis, goods and services from Naval Magazine, 
     Indian Island, that are not available from other commercial 
     sources.
       The House amendment contained no similar provision.
       The House recedes with a clarifying amendment.
     Report on procedures and guidelines for embarkation of 
         civilian guests on naval vessels for public affairs 
         purposes (sec. 1047)
       The Senate bill contained a provision (sec. 1072) that 
     would require the Secretary of the Navy to submit a plan to 
     Congress to ensure that the embarkation of civilian guests 
     for the purpose of furthering public awareness of the Navy 
     and its mission does not interfere with the operational 
     readiness and safe operation of Navy vessels. The plan would 
     cover a number of specific areas.
       The House amendment contained no similar provision.
       The House recedes with an amendment that requires the 
     Secretary of the Navy to submit a report to the Committees on 
     Armed Services of the Senate and the House of Representatives 
     setting forth the procedures and guidelines of the Navy for 
     the embarkation of civilian guests on naval vessels for 
     public affairs purposes and that modifies the specific areas 
     to be covered in the report.
     Technical and clerical amendments (sec. 1048)
       The House amendment contained a provision (sec. 1046) 
     making technical and clerical amendments to title 10, United 
     States Code, and related statutes.
       The Senate bill contained no similar provision.
       The Senate recedes.
     Termination of referendum requirement regarding continuation 
         of military training on the island of Vieques, Puerto 
         Rico, and imposition of additional conditions on closure 
         of training range (sec. 1049)
       The House amendment contained a provision (sec. 1042) that 
     would repeal the provisions contained in Title XV of the 
     Floyd D. Spence National Defense Authorization Act for Fiscal 
     Year 2001 that would require a referendum on the continuation 
     of military training on Vieques and authorize additional 
     economic assistance for Vieques in the event continued 
     training was approved by such referendum. The House amendment 
     would specify that the Secretary of the Navy could close the 
     Vieques range only if the Chief of Naval Operations and the 
     Commandant of the Marine Corps jointly certified that an 
     alternative training facility was available that provided an 
     equivalent or superior level of training at a single 
     location.
       The House amendment would also revise the provisions of 
     that Act transferring jurisdiction of the training range and 
     other lands on the eastern end of Vieques to the Secretary of 
     the Interior if training operations on Vieques were 
     terminated, and would instead require that the land be 
     retained by the Secretary of the Navy.
       The Senate bill contained no similar provision.
       The Senate recedes with an amendment that would give the 
     Secretary of the Navy the authority to close the Vieques 
     Naval Training Range if the Secretary certifies to the 
     President and Congress that an alternative training facility 
     or facilities that provide equivalent or superior training 
     exist and are available. The Secretary's certification would 
     take into account the views and recommendations of the Chief 
     of Naval Operations and the Commandant of the Marine Corps. 
     If the Secretary terminates training operations on Vieques, 
     the lands on the eastern end of the island would be 
     transferred to the jurisdiction of the Secretary of the 
     Interior.
       The conferees note the views of the administration on this 
     matter, as stated in a letter from the Deputy Secretary of 
     Defense on November 29, 2001:

     Consistent with the commitments made by both the President 
     and Secretary England, the Navy remains committed to 
     identifying a suitable alternative and is planning to 
     discontinue training operations on the island of Vieques in 
     May of 2003, contingent upon the identification and 
     establishment of a suitable alternative. However, until a 
     suitable alternative is established, Vieques remains an 
     important element in the training of our forces deploying to 
     fight the war.

                       Subtitle F--Other Matters

     Assistance for firefighters (sec. 1061)
       The Senate bill contained a provision (sec. 1071) that 
     would increase the authorization of appropriations for 
     federal grants to state or local firefighters in section 33 
     of the Federal Fire Prevention and Control Act of 1974, as 
     added by title XVII of the Floyd D. Spence National Defense 
     Authorization Act for Fiscal Year 2001, from $300.0 million 
     to $600.0 million in fiscal year 2002, and would extend and 
     increase the authorizations to $800.0 million in fiscal year 
     2003 and $1.0 billion in fiscal year 2004.
       The House amendment contained a provision (sec. 1049) that 
     would name the program after the late Floyd D. Spence and 
     would state the sense of Congress that the grant program 
     should be reauthorized at increased funding levels.
       The House recedes with an amendment that would increase the 
     authorization of appropriations for these grants to $900.0 
     million per year for fiscal years 2002, 2003 and 2004, 
     clarify that grants under this program would be available for 
     training and equipment to respond to terrorism or the use of 
     weapons of mass destruction, and specify

[[Page 25541]]

     that up to three percent of the funds authorized for these 
     grants could be used for administration of the grant program 
     by the Federal Emergency Management Agency.
     Extension of times for Commission on the Future of the United 
         States Aerospace Industry to report and to terminate 
         (sec. 1062)
       The Senate bill contained a provision (sec. 1026) that 
     would ensure that the Commission on the Future of the United 
     States Aerospace Industry has a full year to carry out its 
     work and to allow the commission 60 rather than 30 days to 
     archive documents and complete other activities after the 
     submission of its final report.
       The House amendment contained a similar provision (sec. 
     1054).
       The Senate recedes with a technical amendment.
     Appropriations to Radiation Exposure Compensation Trust Fund 
         (sec. 1063)
       The Senate bill contained a provision (sec. 1066) that 
     would amend the Radiation Exposure Compensation Act to make 
     mandatory appropriations for fiscal years 2002 through 2011.
       The House amendment contained no similar provision.
       The House recedes.
     Waiver of vehicle weight limits during periods of national 
         emergency (sec. 1064)
       The Senate bill contained a provision (sec. 1076) that 
     would authorize the Secretary of Transportation, in 
     consultation with the Secretary of Defense, to waive certain 
     vehicle weight limits on specified portions of the Interstate 
     highway system during a period of national emergency.
       The House amendment contained no similar provision.
       The House recedes.
     Repair, restoration, and preservation of Lafayette Escadrille 
         Memorial, Marnes-la-Coquette, France (sec. 1065)
       The Senate bill contained a provision (sec. 333) that would 
     authorize the Secretary of the Air Force to make a grant to 
     the Lafayette Escadrille Memorial Foundation, Inc. of up to 
     $2.0 million for repair, restoration, and preservation of the 
     Lafayette Escadrille Memorial.
       The House amendment contained a similar provision (sec. 
     1048) that contained findings regarding the volunteer 
     aviators who fought with the Lafayette Escadrille during 
     World War I and the state of the memorial, and that would 
     express the sense of Congress that funds should be provided 
     to restore the memorial.
       The House recedes with an amendment that would authorize 
     the Secretary of the Air Force to make the grant after he 
     submits a report on the contributions to the restoration made 
     by the government of France. The conferees also agree to 
     require an annual report on the use of the grant funds, to 
     require that the Foundation make their records available for 
     audit by the Air Force and the General Accounting Office, and 
     to require an engineering analysis of and report on the cost 
     of fully restoring the memorial. The additional cost of the 
     engineering analysis is not intended to reduce the amount of 
     the grant to the Foundation. The cost of both the grant and 
     the engineering analysis would be funded from the operation 
     and maintenance account of the Air Force.
       The conferees do not intend this provision to establish a 
     precedent for federal funding of privately operated 
     memorials.

                   Legislative Provisions Not Adopted

     Action to promote national defense features program
       The House amendment contained a provision (sec. 1053) that 
     would direct the Secretary of Defense to certify to the 
     Federal Maritime Commission restrictive trade practices for 
     cases in which vessels built, or to be built, under the 
     National Defense Features (NDF) program are involved.
       The Senate bill contained no similar provision.
       The House recedes.
       The conferees agree the NDF program has the potential to 
     provide incentive for construction of commercial ships in the 
     U.S.
       The strategic sealift NDF program provides compensation for 
     commercial ships that have Defense Department unique 
     alterations required for carrying defense cargo. The program 
     was intended to reduce the requirement for government-owned 
     ships by supplementing them, when required, with commercial 
     shipping capable of carrying Defense Department unique cargo 
     such as tanks, heavy vehicles, and ammunition.
       The NDF program can only be successful if commercial ship 
     owners decide to build ships in U.S. shipyards based on the 
     potential for successful operations when not involved in 
     defense department operations.
       Although it is not the responsibility of the Secretary of 
     Defense to monitor commercial shipping trade issues, it is 
     within the purview of the Secretary to assess and report to 
     Congress on the Defense Department's ability to provide the 
     required strategic sealift.
       Thus, the Secretary is directed to notify Congress when he 
     determines that a strategic sealift deficiency exists, and 
     measures to correct such a deficiency are not being 
     undertaken because of the unwillingness of commercial ship 
     owners to participate in the NDF program.
     Assignment of members to assist border patrol and control
       The House amendment contained a provision (sec. 1024) that 
     would authorize the use of military personnel to assist the 
     Immigration and Naturalization Service and the Customs 
     Service in preventing the entry of terrorists, drug 
     traffickers, weapons of mass destruction, illegal narcotics 
     and related items into the United States.
       The Senate bill contained no similar provision.
       The House recedes.
       In the wake of the events of September 11, the conferees 
     believe that a full review of the strategy, roles and 
     responsibilities of the Department of Defense in combating 
     terrorism is warranted. Therefore, the conferees direct 
     elsewhere in this report that the Secretary of Defense 
     conduct a study of the appropriate role of the Department 
     with respect to homeland security and report to Congress on 
     such matters.
     Authority to pay gratuity to members of the armed forces and 
         civilian employees of the United States for slave labor 
         performed for Japan during World War II
       The Senate bill contained a provision (sec. 1064) that 
     would authorize the Secretary of Veterans Affairs to pay a 
     $20,000 gratuity to a veteran or civilian internee who: (1) 
     served in or with United States combat forces during World 
     War II; (2) was captured and held as a prisoner of war by 
     Japan; and (3) was required to perform slave labor for Japan.
       The House amendment contained no similar provision.
       The Senate recedes.
     Contingent authorization of appropriations
       The Senate bill contained a title (title XIII) making the 
     authorization of certain funds contingent upon future action 
     by the Congress.
       The House amendment contained no similar provision.
       The Senate recedes.
     Demilitarization of significant military equipment
       The Senate bill contained a provision (sec. 1062) that 
     would provide authority to ensure demilitarization of 
     significant military equipment formerly owned by the 
     Department of Defense (DOD).
       The House amendment contained no similar provision.
       The Senate recedes.
     Information and recommendations on congressional reporting 
         requirements applicable to the Department of Defense
       The Senate bill contained a provision (sec. 1021) that 
     would require the Secretary of Defense to identify recurring 
     reporting requirements in the Department of Defense (DOD) 
     that the Secretary believes to be unnecessary.
       The House amendment contained no similar provision.
       The Senate recedes.
     Reductions in authorizations of appropriations for Department 
         of Defense for management efficiencies
       The Senate bill contained a provision (sec. 1002) that 
     would have reduced the amounts authorized to be appropriated 
     to the Department of Defense for fiscal year 2002 by $1.6 
     billion to reflect savings to be achieved through the 
     implementation of the provisions of title VIII of the Senate 
     bill and other management efficiencies.
       The House amendment contained no similar provision.
       The Senate recedes.
       The conferees agreed to reductions of $1.3 billion for 
     management reform initiatives. These reductions are included 
     in titles I, II and III of this Act.
     Release of restriction on use of certain vessels previously 
         authorized to be sold
       The Senate bill contained a provision (sec. 1220) that 
     would relax certain restrictions placed on the sale of two 
     vessels authorized by section 3603(a) of the Strom Thurmond 
     National Defense Authorization Act for Fiscal Year 1999.
       The House amendment contained no similar provision.
       The Senate recedes.
     Revision in types of excess naval vessels for which approval 
         by law is required for disposal to foreign nations
       The House amendment contained a provision (sec. 1011) that 
     would amend subsection (a) of section 7307 of title 10 to 
     change the requirement for specific congressional approval of 
     disposal of vessels to foreign nations from ``naval vessels'' 
     to ``combatant naval vessels.''
       The Senate bill contained no similar provision.
       The House recedes.
     Revision of annual report to Congress on National Guard and 
         reserve component equipment
       The House amendment contained a provision (sec. 1033) that 
     would revise the annual report to Congress on National Guard 
     and reserve component equipment.
       The Senate bill contained no similar provision.
       The House recedes.

[[Page 25542]]


     Sense of the Senate that the Secretary of the Treasury should 
         immediately issue savings bonds, to be designated as 
         ``Unity Bonds''
       The Senate bill contained a provision (sec. 1074) that 
     would express the sense of the Senate that the Secretary of 
     the Treasury should immediately issue savings bonds, to be 
     designated as ``Unity Bonds,'' in response to the terrorist 
     attacks against the United States on September 11, 2001.
       The House amendment contained no similar provision.
       The Senate recedes.
       The decision not to include this provision in this 
     conference report does not reflect any change in the strong 
     support for the issuance of savings bonds in both Houses of 
     Congress, as expressed by the Senate when it approved this 
     provision and by the House of Representatives when it 
     approved H.R. 2899, the ``Freedom Bonds Act of 2001''.
     Transfer of Vietnam-era F-4 to non-profit museum
       The House amendment contained a provision (sec. 1044) that 
     would authorize the Secretary of the Air Force to convey a 
     surplus F-4 aircraft to the National Aviation Museum and 
     Foundation of Oklahoma.
       The Senate bill contained no similar provision.
       The House recedes.

                      Title XI--Civilian Personnel

                     Legislative Provisions Adopted

          Subtitle A--Department of Defense Civilian Personnel

     Personnel pay and qualifications authority for Department of 
         Defense Pentagon Reservation civilian law enforcement and 
         security force (sec. 1101)
       The Senate bill contained a provision (sec. 1075) that 
     would authorize the Secretary of Defense to establish pay 
     rates for Pentagon civilian law enforcement and security 
     personnel that are comparable to other federal law 
     enforcement and security organizations within the vicinity of 
     the Pentagon.
       The House amendment contained no similar provision.
       The House recedes.
     Pilot program for payment of retraining expenses (sec. 1102)
       The House amendment contained a provision (sec. 1102) that 
     would authorize the Department of Defense (DOD) to establish 
     a pilot program to pay retraining expenses for DOD employees 
     scheduled for involuntary separation.
       The Senate bill contained a similar provision (sec. 1123).
       The Senate recedes with a clarifying amendment.
     Authority of civilian employees to act as notaries (sec. 
         1103)
       The Senate bill contained a provision (sec. 584) that would 
     clarify the authority of civilian attorneys in military legal 
     assistance offices and certain civilian employees to perform 
     notarial acts.
       The House amendment contained a similar provision (sec. 
     1109).
       The House recedes.
     Authority to appoint certain health care professionals in the 
         excepted service (sec. 1104)
       The Senate bill contained a provision (sec. 1125) that 
     would authorize the Secretary of Defense to exempt certain 
     health care professionals from examination for appointment in 
     the competitive civil service.
       The House amendment contained no similar provision.
       The House recedes with an amendment that would authorize 
     the Secretary of Defense to appoint certain health care 
     professionals in the excepted service without regard to 
     certain provisions of chapter 33 of title 5, United States 
     Code regarding examination, certification, and appointment in 
     the civil service.

          Subtitle B--Civilian Personnel Management Generally

     Authority to provide hostile fire pay (sec. 1111)
       The Senate bill contained a provision (sec. 622) that would 
     authorize hostile fire or imminent danger pay for civilians.
       The House amendment contained no similar provision.
       The House recedes with a clarifying amendment that removes 
     limitations to duty in the United States and duty in 
     specified areas of the Pentagon.
     Payment of expenses to obtain professional credentials (sec. 
         1112)
       The House amendment contained a provision (sec. 1103) that 
     would authorize federal agencies to pay for employee 
     credentials, professional licenses, and professional 
     certification.
       The Senate bill contained a similar provision (sec. 1126).
       The Senate recedes.
     Parity in establishment of wage schedules and rates for 
         prevailing rate employees (sec. 1113)
       The House amendment contained a provision (sec. 1110) that 
     would require the Department of Defense, when establishing 
     wage schedules and rates for prevailing wage employees, to 
     consider rates paid for comparable positions in private 
     industry in the nearest wage area that is most similar to the 
     wage area for which wage rates are being established when 
     there are insufficient positions in the local industry upon 
     which to establish wage schedules and rates.
       The Senate bill contained no similar provision.
       The Senate recedes with a clarifying amendment that would 
     make this provision effective on the first normal effective 
     date of the applicable wage survey adjustment occurring after 
     the enactment of this Act.
     Modification of limitation on premium pay (sec. 1114)
       The House amendment contained a provision (sec. 1107) that 
     would amend section 5547 of title 5, United States Code, to 
     change the period used for limiting the amount of overtime 
     pay an employee may earn from a biweekly to an annual basis, 
     permitting more flexibility in scheduling overtime across the 
     Federal Government.
       The Senate bill contained no similar provision.
       The Senate recedes with an amendment that would give heads 
     of agencies discretionary authority to use the calendar year 
     as the period for limiting the amount of overtime pay for 
     employees performing work that is critical to the mission of 
     the agency.
     Participation of personnel in technical standards development 
         activities (sec. 1115)
       The Senate bill contained a provision (sec. 1124) that 
     would authorize the use of appropriated funds for Department 
     of Defense personnel to participate in meetings to set 
     technical standards for products, manufacturing processes, 
     and management practices.
       The House amendment contained no similar provision.
       The House recedes.
     Retention of travel promotional items (sec. 1116)
       The Senate bill contained a provision (sec. 1065) that 
     would authorize federal employees of the Executive Branch, 
     members of the foreign service, military members, and their 
     family members to retain for personal use promotional items 
     received as a result of using travel or transportation 
     services paid for by the Executive Branch.
       The House amendment contained no similar provision.
       The House recedes with an amendment that would extend the 
     benefit to employees of the Judicial Branch and certain 
     employees of the Legislative Branch.
     Applicability of certain laws to certain individuals assigned 
         to work in the Federal Government (sec. 1117)
       The House amendment contained a provision (sec. 1106) that 
     would clarify that state and local government officials 
     detailed to work in federal agencies are subject to the same 
     standards of official conduct that apply to other federal 
     employees.
       The Senate bill contained no similar provision.
       The Senate recedes with a technical amendment.

              Subtitle C--Intelligence Civilian Personnel

     Authority to increase maximum number of positions in the 
         Defense Intelligence Senior Executive Service (sec. 1121)
       The Senate bill contained a provision (sec. 1101) that 
     would authorize the Secretary of Defense to increase the 
     number of Defense Intelligence Senior Executive Service 
     positions by the number of Senior Intelligence Service 
     positions eliminated from the Central Intelligence Agency.
       The House amendment contained no similar provision.
       The House recedes with an amendment that would increase the 
     maximum number of positions in the Defense Intelligence 
     Senior Executive Service from 517 to 544.
       The conferees intend that the increase of 27 Defense 
     Intelligence Senior Executive Service positions is to meet 
     the increased senior level requirements of the National 
     Imagery and Mapping Agency (NIMA) resulting from the transfer 
     of responsibilities from the Central Intelligence Agency to 
     NIMA.

               Subtitle D--Matters Relating to Retirement

     Improved portability of retirement coverage for employees 
         moving between civil service employment and employment by 
         nonappropriated fund instrumentalities (sec. 1131)
       The Senate bill contained a provision (sec. 1112) that 
     would remove the requirement that employees who transfer 
     between non-appropriated and appropriated fund employment 
     systems have five or more years of service in a system to 
     elect to continue in the Civil Service Retirement System, 
     Federal Employees Retirement System, or Non-appropriated Fund 
     Retirement System, as applicable.
       The House amendment contained a similar provision (sec. 
     1104).
       The House recedes.
     Federal employment retirement credit for nonappropriated fund 
         instrumentality service (sec. 1132)
       The Senate bill contained a provision (sec. 1111) that 
     would authorize federal employees the opportunity to elect to 
     receive either Civil Service Retirement System or Federal 
     Employees Retirement System credit for prior nonappropriated 
     fund service.
       The House amendment contained no similar provision.
       The House recedes with a clarifying amendment.

[[Page 25543]]


     Modification of limitations on exercise of voluntary 
         separation incentive pay authority and voluntary early 
         retirement authority (sec. 1133)
       The Senate bill contained a provision (sec. 1113) that 
     would authorize the Secretary of Defense, during fiscal year 
     2003, to use voluntary separation incentives and voluntary 
     early retirement authority for workforce restructuring to 
     meet mission needs, achieve strength reductions, correct 
     skill imbalances or reduce the number of high-grade, 
     managerial, or supervisory positions.
       The House amendment contained no similar provision.
       The House recedes with an amendment that would establish a 
     limit of 2000 employees in fiscal year 2002 and 6000 
     employees in fiscal year 2003 who could be separated under 
     this provision, and would provide that this provision may be 
     superceded by another provision of law taking effect after 
     the effective date of this Act.

                   Legislative Provisions Not Adopted

     Continued applicability of certain civil service protections 
         for employees integrated into the National Imagery and 
         Mapping Agency from the Defense Mapping Agency
       The Senate bill contained a provision (sec. 1102) that 
     would clarify that former Defense Mapping Agency personnel 
     transferred into the National Imagery and Mapping Agency 
     pursuant to the National Defense Authorization Act for Fiscal 
     Year 1997 retain certain civil service protections for as 
     long as they remain Department of Defense employees employed 
     without a break in service in the National Imagery and 
     Mapping Agency.
       The House amendment contained no similar provision.
       The Senate recedes.
     Removal of requirement that granting civil service 
         compensatory time be based on amount of irregular or 
         occasional overtime work
       The House amendment contained a provision (sec. 1105) that 
     would repeal the requirement that compensatory time only be 
     granted to federal employees if the overtime performed is 
     irregular or occasional.
       The Senate bill contained no similar provision.
       The House recedes.
     Undergraduate training program for employees of the National 
         Imagery and Mapping Agency
       The House amendment contained a provision (sec. 1101) that 
     would authorize the National Imagery and Mapping Agency to 
     establish an undergraduate training program to recruit 
     employees with critical skills.
       The Senate bill contained no similar provision.
       The House recedes.
     Use of common occupational and health standards as a basis 
         for differential payments made as a consequence of 
         exposure to asbestos
       The House amendment contained a provision (sec. 1108) that 
     would establish a common standard for payment of hazardous 
     duty differential pay for reason of exposure to asbestos for 
     prevailing rate and general schedule federal employees.
       The Senate bill contained no similar provision.
       The House recedes.
       The conferees direct the Secretary of Defense to coordinate 
     with interested parties to develop an appropriate standard 
     for exposure to asbestos for prevailing rate and general 
     schedule federal employees, taking into account the nature of 
     the work and the increased likelihood of exposure to asbestos 
     of prevailing rate and general schedule federal employees.

              Title XII--Matters Relating to Other Nations

                     Legislative Provisions Adopted

       Subtitle A--Matters Related to Arms Control and Monitoring

     Clarification of authority to furnish nuclear test monitoring 
         equipment to foreign governments (sec. 1201)
       The Senate bill contained a provision (sec. 1214) that 
     would amend section 1203 of the Floyd D. Spence National 
     Defense Authorization Act for Fiscal Year 2001 to clarify 
     that the Department of Defense has the authority to transfer 
     title of existing nuclear test monitoring equipment to 
     foreign host nation governments, and to inspect and maintain 
     such equipment to ensure that it continues to provide the 
     data needed to satisfy United States nuclear test monitoring 
     requirements. The provision would also redesignate the 
     existing authority as section 2565 of title 10, United States 
     Code.
       The House amendment contained a similar provision.
       The House recedes with a technical amendment.
     Limitation on funding for Joint Data Exchange Center in 
         Moscow (sec. 1202)
       The House amendment contained a provision (sec. 1204) that 
     would prohibit the Secretary of Defense from obligating or 
     expending any fiscal year 2002 funds for the Joint Data 
     Exchange Center (JDEC) in Moscow until 30 days after the 
     Secretary of Defense submits to the congressional defense 
     committees an agreement between the United States and Russia 
     to share the costs of the JDEC and to exempt U.S. government 
     personnel from liability under Russian laws for activities 
     associated with the JDEC.
       The Senate bill contained no similar provision.
       The Senate recedes with an amendment that would prohibit 50 
     percent of the funds available for the JDEC from being 
     obligated or expended until the agreement is submitted to the 
     congressional defense committees.
       The conferees believe that the JDEC is an important element 
     of the increased cooperation between the United States and 
     Russia and urge the Secretary to complete the necessary 
     negotiations as quickly as possible.
     Support of United Nations-sponsored efforts to inspect and 
         monitor Iraqi weapons activities (sec. 1203)
       The House amendment contained a provision (sec. 1205) that 
     would extend the authority under section 1505 of the Weapons 
     of Mass Destruction Act of 1992 (section 5859a of title 22, 
     United States Code) for the Department of Defense to expend 
     up to $15.0 million in fiscal year 2002 in support of United 
     Nations-sponsored inspection and monitoring efforts in Iraq. 
     The provision would also change the requirement for quarterly 
     reports by the Department of Defense to an annual report.
       The Senate bill contained a provision (sec. 1211) that 
     would similarly extend the authority to expend $15.0 million 
     in support of the United Nations-sponsored inspection and 
     monitoring effort but did not change the requirement for 
     quarterly reports.
       The House recedes.
     Authority for employees of Federal Government contractors to 
         accompany chemical weapons inspection teams at 
         government-owned facilities (sec. 1204)
       The Senate bill contained a provision (sec. 1215) that 
     would amend section 303(b)(2) and section 304(c) of the 
     Chemical Weapons Convention Implementation Act of 1998 (22 
     U.S.C. 6723(b)(2) and 6724(c)) to permit Federal Government 
     contractor personnel to participate in inspections of United 
     States Government-owned facilities conducted under that Act 
     if led by a Federal Government employee.
       The House amendment contained a similar provision.
       The Senate recedes with a technical amendment.
     Plan for securing nuclear weapons, material, and expertise of 
         the states of the former Soviet Union (sec. 1205)
       The House amendment contained a provision (sec. 1051) that 
     would direct the President to submit to Congress a plan for 
     cooperation with Russia to dispose of excess nuclear 
     materials and nuclear weapons, and to prevent the outflow of 
     Russian scientific expertise in the area of weapons of mass 
     destruction. The provision included specific plan elements 
     and required the President to consult with Russia and 
     Congress in developing the plan.
       The Senate bill contained no similar provision.
       The Senate recedes with an amendment.
       The amendment expands the scope of the plan to include the 
     other states of the former Soviet Union and adds the 
     requirement that the plan include programs to assist Russia 
     in downsizing its nuclear weapons research and production 
     complex. In addition, the amendment requires the President to 
     consider establishing an interagency committee to coordinate 
     and monitor the nonproliferation efforts of the United 
     States, to recommend policy and budget options for the U.S. 
     nonproliferation program, and to encourage increased 
     coordination with and greater participation of international 
     partners, including efforts to increase international 
     contributions for such programs.
       The conferees note that the administration has been 
     reviewing the current nonproliferation programs. The 
     conferees urge the administration to bring this review to a 
     close, decide on a path forward for these important programs, 
     and implement a coordinated government-wide nonproliferation 
     strategy as soon as possible. As President Bush stated in his 
     November 13, 2001 joint statement with Russian President 
     Putin: ``Our highest priority is to keep terrorists from 
     acquiring weapons of mass destruction. Today we agreed that 
     Russian and American experts will work together to share 
     information and expertise to counter the threat from 
     bioterrorism. We agreed that it is urgent that we improve the 
     physical protection and accounting on nuclear materials and 
     prevent illicit nuclear trafficking.''

  Subtitle B--Matters Relating to Allies and Friendly Foreign Nations

     Acquisition of logistical support for security forces (sec. 
         1211)
       The House amendment contained a provision (sec. 1202) that 
     would amend the Multinational Force and Observers (MFO) 
     Participation Resolution (Public Law 97-132) to authorize the 
     President to approve contracting out the logistical and 
     aviation support for the MFO mission currently performed by 
     U.S. soldiers. The provision would also provide that U.S. 
     sponsored contract support could be provided to the MFO 
     mission without reimbursement if the President determines 
     that such action enhances or supports the national security 
     of the United States.
       The Senate bill contained an identical provision (sec. 
     1217).

[[Page 25544]]

       The conference agreement includes this provision.
     Extension of authority for international cooperative research 
         and development projects (sec. 1212)
       The Senate bill contained a provision (sec 1212) that would 
     amend section 2350 of title 10, United States Code, to expand 
     the entities, to include friendly foreign countries, with 
     which the Department of Defense is authorized to enter into 
     cooperative research and development agreements.
       The House amendment contained no similar provision.
       The House recedes with a clarifying amendment and an 
     amendment that requires the Secretary of Defense to submit a 
     report to Congress 30 days prior to implementation of any 
     proposed memorandum of understanding (or other formal 
     agreement) for cooperative research and development with a 
     country that is not a NATO member nation or a major non-NATO 
     ally.
     Cooperative agreements with foreign countries and 
         international organizations for reciprocal use of test 
         facilities (sec. 1213)
       The Senate bill contained a provision (sec. 1213) that 
     would authorize the Secretary of Defense, with the 
     concurrence of the Secretary of State, to enter into a 
     memorandum of understanding with a foreign country or 
     international organization to provide for the testing, on a 
     reciprocal basis, of defense equipment. The provision would 
     require the charging of direct costs and would authorize the 
     charging of indirect costs, but only to the extent specified 
     in the memorandum or other agreement.
       The House amendment contained no similar provision.
       The House recedes with a clarifying amendment.
     Sense of Congress on allied defense burdensharing (sec. 1214)
       The Senate bill contained a provision (sec. 1219) that 
     would express the sense of the Senate that the efforts of the 
     President to increase burdensharing by allied and friendly 
     nations deserve strong support. The provision also expressed 
     the sense of the Senate that host nation support agreements 
     with those nations in which U.S. military personnel are 
     permanently assigned should be negotiated consistent with 
     section 1221(a)(1) of the National Defense Authorization Act 
     for Fiscal Year 1998, which sets forth a goal of obtaining 
     financial contributions from such host nations that amount to 
     75 percent of the nonpersonnel costs.
       The House amendment contained no similar provision.
       The House recedes with a clarifying amendment and an 
     amendment that makes the provision a sense of Congress.

                          Subtitle C--Reports

     Report on significant sales and transfers of military 
         hardware, expertise, and technology to the People's 
         Republic of China (sec. 1221)
       The House amendment contained a provision (sec. 1203) that 
     would amend section 1202 of the National Defense 
     Authorization Act for Fiscal Year 2000. This amendment would 
     require the Secretary of Defense to submit, as part of the 
     existing report requirement, a one-time report to the 
     Congress no later than March 1, 2002 on the transfer of 
     equipment, expertise, and technology from the former Soviet 
     states to the People's Republic of China.
       The Senate bill contained no such provision.
       The Senate recedes with an amendment that would require the 
     Secretary of Defense to report to Congress on significant 
     transfers of equipment, expertise and technology to the 
     People's Republic of China. The amendment would remove the 
     reference to the former states of the Soviet Union, and 
     modifies the reporting requirement.
     Repeal of requirement for reporting to Congress on military 
         deployments to Haiti (sec. 1222)
       The House amendment contained a provision (sec. 1206) that 
     would repeal the report required by section 1232 of the 
     National Defense Authorization Act for Fiscal Year 2000 
     concerning military deployments to Haiti.
       The Senate bill contained no similar provision.
       The Senate recedes.
     Report by Comptroller General on provision of defense 
         articles, services, and military education and training 
         to foreign countries and international organizations 
         (sec. 1223)
       The House amendment contained a provision (sec. 1207) that 
     would require the Comptroller General of the United States to 
     study the benefits, costs, and readiness impact to the U.S. 
     Armed Forces with regard to defense articles, services, or 
     military education and training provided under the authority 
     of the Foreign Assistance Act of 1961 (Public Law 87-195 as 
     amended) or any similar provision of law. The provision would 
     require the Comptroller General to submit to Congress an 
     interim report no later than April 15, 2002, and a final 
     report by August 1, 2002, on the findings of the study.
       The Senate bill contained no similar provision.
       The Senate recedes.

                   Legislative Provisions Not Adopted

     Limitation on number of military personnel in Colombia
       The House amendment contained a provision (sec. 1208) that 
     would limit to 500 the number of U.S. military personnel 
     authorized to be on duty in the Republic of Colombia at any 
     time. The limit would not apply to military personnel 
     deployed to Colombia for the purpose of rescuing or 
     retrieving U.S. Government personnel, military personnel 
     attached to the U.S. Embassy, military personnel engaged in 
     relief operations, or nonoperational transient military 
     personnel.
       The Senate bill contained no similar provision.
       The House recedes.

  Title XIII--Cooperative Threat Reduction With States of the Former 
                              Soviet Union

                     Legislative Provisions Adopted

     Specification of Cooperative Threat Reduction programs and 
         funds (sec. 1301)
       The Senate bill contained a provision (sec. 1201) that 
     would define the Cooperative Threat Reduction (CTR) program, 
     define the CTR funds as those authorized to be appropriated 
     in section 301 of this conference report, and authorize the 
     CTR funds to be available for obligation for three fiscal 
     years.
       The House amendment contained an identical provision (sec. 
     1301).
       The conference agreement includes this provision.
     Funding allocations (sec. 1302)
       The Senate bill contained a provision (sec. 1202) that 
     would authorize $403.0 million, the amount included in the 
     budget request, for the Cooperative Threat Reduction (CTR) 
     programs. The provision would also establish the funding 
     levels for each of the program elements in the CTR program 
     and provide limited authority to vary the amounts for 
     specific program elements.
       The House amendment contained a similar provision (sec. 
     1302).
       The Senate recedes with a technical amendment.
       The conferees include a provision that would authorize 
     $403.0 million for the CTR programs, specify the funding 
     levels for the component parts of the program, and provide 
     limited authority to vary the amounts for specific program 
     elements. The provision combines the amounts provided for 
     chemical weapons destruction activity in Russia into a single 
     category. The conferees have excluded nuclear weapons 
     transportation security from the funding limitation. The 
     provision would also remove the funding limitation for 
     nuclear weapons transportation security contained in section 
     1302 (c)(3) of the Floyd D. Spence National Defense 
     Authorization Act for Fiscal Year 2001.
     Limitation on use of funds until submission of reports (sec. 
         1303)
       The House amendment contained a provision (sec. 1303) that 
     would prohibit the obligation or expenditure of fiscal year 
     2002 Cooperative Threat Reduction (CTR) program funds until 
     30 days after submission of the reports required by section 
     1308 of the Floyd D. Spence National Defense Authorization 
     Act for Fiscal Year 2001.
       The Senate bill contained no similar provision.
       The Senate recedes with an amendment that would prohibit 
     the Secretary of Defense from spending more than 50 percent 
     of the funds available for the CTR program for fiscal year 
     2002 until the Secretary submits the reports required by the 
     Floyd D. Spence National Defense Authorization Act for Fiscal 
     Year 2001.
     Requirement to consider use of revenue generated by 
         activities carried out under Cooperative Threat Reduction 
         programs (sec. 1304)
       The House amendment contained a provision (sec. 1304) that 
     would require the Secretary of Defense to submit a report 
     describing plans to monitor the use of revenue generated by 
     Cooperative Threat Reduction (CTR) program activities in 
     Russia and Ukraine.
       The Senate bill contained no similar provision.
       The Senate recedes with an amendment that would direct the 
     Secretary of Defense to consider the revenue generated by CTR 
     program-related activities in Russia when carrying out the 
     CTR program.
     Prohibition against use of funds for second wing of fissile 
         material storage facility (sec. 1305)
       The House amendment contained a provision (sec. 1305) that 
     would prohibit the use of all Cooperative Threat Reduction 
     (CTR) program funds for construction of a second wing for the 
     fissile material storage facility in Mayak, Russia. The 
     provision would also cap the amount of funds spent on the 
     first wing of the facility at $412.6 million.
       The Senate bill contained no similar provision.
       The Senate recedes with an amendment that would prohibit 
     fiscal year 2002 CTR funds, and CTR funds previously 
     authorized and appropriated, from being used to construct a 
     second wing of the storage facility for fissile material 
     storage in Mayak, Russia. The conferees believe that if the 
     Department of Defense should decide in the future that a 
     second wing of the facility is needed, the Secretary should 
     specifically request funds for this purpose. The provisions 
     would also clarify that the spending cap on the Mayak 
     facility would not apply to any expenditures related to 
     security.

[[Page 25545]]


     Prohibition against use of funds for certain construction 
         activities (sec. 1306)
       The House amendment contained a provision (sec. 1306) that 
     would prohibit the use of Cooperative Threat Reduction (CTR) 
     program funds from being used for construction or 
     refurbishment of fossil fuel energy plants in Russia.
       The Senate bill contained no similar provision.
       The Senate recedes with an amendment that would prohibit 
     the use of fiscal year 2002 funds from being used for 
     construction activities associated with the program with the 
     Russian government to eliminate the production of weapons 
     grade plutonium. The conferees direct the Secretary of 
     Defense to use the funds authorized in section 1302 to 
     identify a workable cooperative program and plan that would 
     allow these reactors to be shut down or to stop producing 
     plutonium as quickly and as inexpensively as possible. The 
     plan should include specific milestones and budgetary 
     information for all construction, manufacturing, and 
     operational costs associated with the plan. In formulating 
     the approach, the Secretary should take into consideration 
     the ability of the Russian government and the international 
     community to contribute to this effort. The conferees 
     continue to support the goal of eliminating plutonium 
     production and urge the Secretary to request funds in the 
     future for this effort to support an agreed-upon program 
     plan. The conferees note that this program has been delayed 
     by the lack of an agreed-upon program plan for several years.
     Reports on activities and assistance under Cooperative Threat 
         Reduction programs (sec. 1307)
       The House amendment contained a provision (sec. 1307) that 
     would amend section 1308 of the Floyd D. Spence National 
     Defense Authorization Act for Fiscal Year 2001 to modify the 
     report on activities and assistance under Cooperative Threat 
     Reduction (CTR) programs.
       The Senate bill contained no similar provision.
       The Senate recedes.
     Chemical weapons destruction (sec. 1308)
       The Senate bill contained a provision (sec. 1203) that 
     would amend section 1305 of the National Defense 
     Authorization Act for Fiscal Year 2000 to establish a 
     certification process by the Secretary of Defense that must 
     be completed before any funds could be spent for construction 
     of a chemical weapons destruction facility at Shchuch'ye, 
     Russia. The provision would also provide authority for the 
     President to waive the prerequisite dealing with information 
     provided by Russia about its stockpile of chemical munitions. 
     The provision also required a commitment on the part of 
     others to assist with the costs related to the facility.
       The House amendment contained a similar provision (sec. 
     1309) that would require preconditions but did not provide 
     authority to waive the one prerequisite and did not contain 
     the requirement for a commitment by others to assist with the 
     costs.
       The Senate recedes with an amendment that would include the 
     requirement on cost contributions by others and would clarify 
     the requirements of the certification with respect to the 
     Russian disclosure of its chemical weapons. This 
     clarification will allow the certification to be made as soon 
     as the United States assesses that the disclosure by Russia 
     is accurate. The conferees believe that the certification, as 
     clarified, can be made promptly, and thus believe that the 
     waiver authority is not required. The conferees support this 
     important program and urge the Secretary to implement this 
     program as soon as possible.
     Additional matter in annual report on activities and 
         assistance under Cooperative Threat Reduction programs 
         (sec. 1309)
       The Senate bill contained a provision (sec. 1205) that 
     would amend the annual report to include a new section 
     describing the amount of the annual commitment from the 
     international community and from Russia for the chemical 
     weapons destruction facility at Shchuch'ye.
       The House amendment contained no similar provision.
       The House recedes.

                   Legislative Provisions Not Adopted

     Report on responsibility for carrying out Cooperative Threat 
         Reduction programs
       The House amendment contained a provision (sec. 1308) that 
     would require the Secretary of Defense to submit a report 
     containing an assessment of Cooperative Threat Reduction 
     (CTR) projects currently under the auspices of the Department 
     of Defense (DOD) and describing options for transferring 
     responsibility for CTR projects to other agencies, as 
     appropriate.
       The Senate bill contained a related provision (sec. 1204) 
     that would require the CTR program to continue to be 
     financed, managed, and implemented by the DOD.
       The House recedes and the Senate recedes.
       The Floyd D. Spence National Defense Authorization Act for 
     Fiscal Year 2001 (NDAA) directed the Secretary to submit a 
     report similar to that requested in the House provision. The 
     Secretary has not submitted this report, which was due in 
     January, 2001. The conferees are aware that the report is 
     complete. The conferees urge the Secretary to submit the 
     required report and other required reports on the CTR 
     program, which are also late, as quickly as possible. The 
     conferees note that in spite of statutory changes made in the 
     NDAA to the reporting requirements to accommodate DOD 
     concerns, the DOD still has not submitted the reports 
     required by law.

                Title XIV--Armed Forces Retirement Home

                     Legislative Provisions Adopted

     Amendment of Armed Forces Retirement Home Act of 1991 (sec. 
         1401)
       The Senate bill contained a provision (sec. 1041) that 
     would revise the Armed Forces Retirement Home Act of 1991 to 
     implement changes resulting from a Department of Defense 
     review of the management structure of the Armed Forces 
     Retirement Home.
       The House amendment contained no similar provision.
       The House recedes.
       The conferees note that the organizational and operational 
     changes reflected in Title XIV reflect the collective 
     judgment and recommendations of the Assistant Secretary of 
     Defense (Force Management Policy), the Vice Chief of Staff of 
     the Army, the Vice Chief of Naval Operations, the Vice Chief 
     of Staff of the Air Force, and the Assistant Commandant of 
     the Marine Corps. The conferees compliment the determined 
     efforts of all involved in reaching a consensus on 
     initiatives to be taken. The commitment of the Department of 
     Defense and the services to the operational efficiency and 
     fiscal well-being of the Armed Forces Retirement Homes is an 
     essential precondition for success.
       The conferees anticipate that the legislative changes in 
     Title XIV will be complemented by additional departmental and 
     service initiatives (e.g., implementation of a fifty cent 
     increase in the active duty military payroll deduction and 
     recapitalization of facilities). To this end, the conferees 
     urge the Committees on Armed Services of the Senate and the 
     House of Representatives to provide maximum opportunities 
     during the second session of the 107th Congress for 
     interested individuals and groups to provide information and 
     recommendations for additional improvements needed in the 
     management and organization of the Armed Forces Retirement 
     Homes.
     Definitions (sec. 1402)
       The Senate bill contained a provision (sec. 1042) that 
     would define the terms Retirement Home, Local Board, Armed 
     Forces Retirement Home Trust Fund, and Fund.
       The House amendment contained no similar provision.
       The House recedes.
     Revision of authority establishing the Armed Forces 
         Retirement Home (sec. 1403)
       The Senate bill contained a provision (sec. 1043) that 
     would establish the Armed Forces Retirement Home as an 
     independent establishment of the Executive Branch to provide 
     residences and related services for certain retired and 
     former members of the armed forces.
       The House amendment contained no similar provision.
       The House recedes.
     Chief Operating Officer (sec. 1404)
       The Senate bill contained a provision (sec. 1044) that 
     would authorize the Secretary of Defense to appoint a Chief 
     Operating Officer for the Retirement Home who would be 
     responsible for the overall direction, operation, and 
     management of the Armed Forces Retirement Home and who would 
     report to the Secretary of Defense.
       The House amendment contained no similar provision.
       The House recedes with a clarifying amendment.
     Residents of Retirement Home (sec. 1405)
       The Senate bill contained a provision (sec. 1045) that 
     would repeal the requirement for a resident to reapply for 
     acceptance as a resident when absent from the home for more 
     than 45 consecutive days and establish fees to be paid by 
     residents.
       The House amendment contained no similar provision.
       The House recedes with a clarifying amendment.
     Local boards of trustees (sec. 1406)
       The Senate bill contained a provision (sec. 1046) that 
     would require the Secretary of Defense to appoint a local 
     board of trustees for each facility of the Armed Forces 
     Retirement Home to serve in an advisory capacity to the 
     Director of the facility and to the Chief Operating Officer.
       The House amendment contained no similar provision.
       The House recedes with a clarifying amendment.
     Directors, Deputy Directors, Associate Directors, and staff 
         of facilities (sec. 1407)
       The Senate bill contained a provision (sec. 1047) that 
     would require the Secretary of Defense to appoint a Director 
     and a Deputy Director for each facility of the Armed Forces 
     Retirement Home.
       The House amendment contained no similar provision.
       The House recedes with a clarifying amendment that would 
     also require appointment of an Associate Director to serve as 
     an

[[Page 25546]]

     ombudsman for the residents and to perform other duties 
     assigned by the Director.
     Disposition of effects of deceased persons and unclaimed 
         property (sec. 1408)
       The Senate bill contained a provision (sec. 1048) that 
     would authorize the Director of a facility of the Armed 
     Forces Retirement Home to designate an attorney who is a 
     full-time officer or employee of the United States or a 
     member of the armed forces on active duty to serve as 
     attorney or agent for the facility in certain probate 
     proceedings.
       The House amendment contained no similar provision.
       The House recedes.
     Transitional provisions (sec. 1409)
       The Senate bill contained a transitional provision (sec. 
     1049) that would authorize the Armed Forces Retirement Home 
     Board to continue to serve and perform the duties of the 
     Chief Operating Officer until the Secretary of Defense 
     appoints the first Chief Operating Officer, and for the 
     temporary continuation of the Director of the Armed Forces 
     Retirement Home--Washington and the incumbent Deputy 
     Directors.
       The House amendment contained no similar provision.
       The House recedes.
     Conforming and clerical amendments and repeals of obsolete 
         provisions (sec. 1410)
       The Senate bill contained a provision (sec. 1050) that 
     would make conforming technical amendments to title 24, 
     United States Code.
       The House amendment contained no similar provision.
       The House recedes.

                   Legislative Provisions Not Adopted

     Amendments of other laws
       The Senate bill contained a provision (sec. 1051) that 
     would amend section 4301(2) of title 5, United States Code, 
     to exclude the Chief Operating Officer and the Deputy 
     Directors of the Armed Forces Retirement Home from the 
     definition of employee for purposes of performance appraisals 
     under chapter 43 of title 5, United States Code.
       The House amendment contained no similar provision.
       The Senate recedes.

          Title XV--Activities Relating To Combating Terrorism

                     Legislative Provisions Adopted

         Subtitle A--Increased Funding for Combating Terrorism

     Authorization of emergency appropriations under the 2001 
         Emergency Supplemental Appropriations Act for Recovering 
         From and Response to Terrorist Attacks on the United 
         States (secs. 1501-1506)
       The Senate bill contained a provision (sec. 1010) that 
     would authorize the supplemental appropriations for the 
     Department of Defense enacted in the Emergency Terrorist 
     Response Supplemental Appropriations Act, 2001 (Public Law 
     107-38), which provided supplemental funding for Department 
     of Defense programs in response to terrorist attacks against 
     the United States. The Senate bill would also require 
     quarterly reports by the Secretary of Defense to the 
     Committees on Armed Services of the Senate and the House of 
     Representatives on the use of funds made available to the 
     Department of Defense, as well as reports on the allocation 
     of funds under that Act that are made available to the 
     Department of Defense subject to the 15-day notification 
     requirement.
       The House amendment contained no similar provision.
       The House recedes with an amendment that would: authorize 
     supplemental appropriations for the Department of Defense and 
     the national security activities of the Department of Energy, 
     including the National Nuclear Security Administration, for 
     combating terrorism for fiscal year 2001 and 2002, including 
     the use of such appropriations to carry out military 
     construction projects; and clarify the reporting requirement. 
     The conferees expect the information provided by the 
     Department of Defense and the Department of Energy on the use 
     of funds appropriated in this supplemental, regardless of 
     whether the funds were available immediately, subject to 15-
     day notification, or required subsequent appropriation by 
     Congress, to be consistent with the level of detail provided 
     for previous supplementals, including a description of the 
     accounts and programs for which the funds were used for each 
     service.

       Subtitle B--Policy Matters Relating To Combating Terrorism

     Study and report on the role of the Department of Defense 
         with respect to homeland security (sec. 1511)
       The Senate bill contained a provision (sec. 1022) that 
     directed the Secretary of Defense to submit a report to 
     Congress on the Department of Defense (DOD) policies, plans 
     and procedures for combating terrorism. The intent of the 
     provision was to achieve a clear description of the 
     structure, strategy, roles, relationships and 
     responsibilities of the various DOD entities with 
     responsibilities relating to combating terrorism. The report 
     was to serve as the means for the single designated civilian 
     in the DOD to address the various issues pertaining to 
     combating terrorism.
       The House amendment contained four provisions related to 
     the Department's role in homeland security or combating 
     terrorism. One provision (sec. 1032) required the Secretary 
     of Defense to submit to Congress a report on the appropriate 
     role of the DOD in homeland security matters. A second House 
     provision (sec. 1511) required the Secretary of Defense to 
     submit to Congress and the President a report containing an 
     assessment of the Department's ability to provide support for 
     the consequence management activities of other federal, 
     state, and local agencies, taking into account the terrorist 
     attacks on the United States on September 11, 2001. A third 
     House provision (sec. 1512) directed the Secretary of Defense 
     to report on the ability of the DOD to protect the United 
     States from airborne threats, including those originating 
     from within U.S. borders. A fourth House provision (sec. 
     1514) directed the Secretary of Defense to seek an agreement 
     with the Directors of the Federal Bureau of Investigation and 
     Federal Emergency Management Agency that clarifies the roles 
     and missions of the DOD Weapons of Mass Destruction-Civil 
     Support Teams (WMD-CSTs) relative to those agencies in crisis 
     response and consequence management efforts.
       The conferees agreed to merge the four House amendment 
     provisions into the Senate bill provision. The conferees 
     direct the Secretary of Defense to conduct a study on the 
     appropriate role for the Department of Defense with respect 
     to homeland security. The study would include a description 
     of the plans, policies, and procedures of the Department of 
     Defense for combating terrorism. It would also identify how 
     the DOD will interact with the Office of Homeland Security, 
     and how intelligence-sharing efforts of the Department will 
     be coordinated relative to other federal, state and local 
     entities. In addition, the report would address the ability 
     of the DOD to protect the United States from airborne 
     attacks, and the manner in which the WMD-CSTs interact with 
     lead federal agencies during crisis response or consequence 
     management situations. The report will also discuss 
     improvements that could be made to enhance homeland security 
     and recommended actions and programs aimed at addressing 
     vulnerabilities.
     Combating Terrorism Readiness Initiatives Fund for combatant 
         commands (sec. 1512)
       The Senate bill contained a provision (sec. 1008) that 
     would codify in title 10, United States Code, the authority 
     and specific activities to be funded under the Combating 
     Terrorism Readiness Initiative Fund.
       The House amendment contained no similar provision.
       The House recedes.
     Conveyances of equipment and related materials loaned to 
         state and local governments as assistance for emergency 
         response to a use or threatened use of a weapon of mass 
         destruction (sec. 1513)
       The Senate bill contained a provision (sec. 1063) that 
     would require the Department of Defense (DOD) to transfer to 
     state and local authorities training equipment it has loaned 
     to them as part of the Domestic Preparedness Program, which 
     was established in accordance with the Defense Against 
     Weapons of Mass Destruction Act of 1996 (otherwise known as 
     the Nunn-Lugar-Domenici Act) (Title XIV of the National 
     Defense Authorization Act for Fiscal Year 1997).
       The equipment was purchased by the Department on behalf of 
     cities participating in the Domestic Preparedness Program. 
     That equipment has been permanently retained and maintained 
     on loan due to the legal prohibition against transferring DOD 
     property directly to non-Federal Government agencies. As a 
     result, the Department has been required to inventory, and to 
     hold some liability for, this equipment. In addition, local 
     authorities have incurred the additional task of maintaining 
     records to DOD standards. This one-time transfer was intended 
     to eliminate the financial cost, labor and liabilities 
     associated with this equipment so long as it remains DOD 
     property.
       The House amendment contained no similar provision.
       The House recedes.
       The conferees agree that this is a one-time transfer and 
     will not set any precedent.
     Two-year extension of the Advisory Panel to Assess Domestic 
         Response Capabilities for Terrorism Involving Weapons of 
         Mass Destruction (sec. 1514)
       The House amendment contained a provision (sec. 1052) that 
     would amend section 1405 of the Strom Thurmond National 
     Defense Authorization Act for Fiscal Year 1999 to extend the 
     Advisory Panel to Assess Domestic Response Capabilities for 
     Terrorism Involving Weapons of Mass Destruction (WMD) by two 
     additional years. The life of the panel would thereby be 
     extended until 2003.
       The Senate bill contained no such provision.
       The Senate recedes with an amendment to provide 
     compensation to the members of the panel for the days that 
     they serve from the enactment of this Act until they complete 
     their work in 2003.
       The conferees recognize that the panel can continue to 
     provide valuable assessments and recommendations to the 
     Federal Government in its efforts to improve federal homeland 
     security efforts. The conferees expect that the panel will 
     study not only WMD, but also conventional and cyber terrorist 
     threats.

[[Page 25547]]



                   Legislative Provisions Not Adopted

     Establishment of combating terrorism as a national security 
         mission
       The House amendment contained a provision (sec. 1513) that 
     would amend section 108(b)(2) of the National Security Act of 
     1947 to establish that acts of terrorism are included in the 
     term ``aggression.''
       The Senate bill contained no similar provision.
       The House recedes.
       The conferees note that there is general agreement that 
     acts of terrorism are included in the term ``aggression.''

                  Title XVI--Uniformed Services Voting

                     Legislative Provisions Adopted

     Sense of Congress regarding the importance of voting (sec. 
         1601)
       The Senate bill contained a provision (sec. 571) that would 
     express the sense of the Senate that each administrator of a 
     federal, state, or local election should be aware of the 
     importance of the ability of each uniformed services voter to 
     exercise the right to vote; that the administrators should 
     perform their duties with the intent to ensure that each 
     uniformed services voter receives the utmost consideration 
     and cooperation when voting; that each valid ballot cast by 
     such a voter is duly counted; and that all eligible American 
     voters should have an equal opportunity to cast a vote and to 
     have that vote counted.
       The House amendment contained no similar provision.
       The House recedes with a clarifying amendment that would 
     express a sense of the Congress.
     Voting assistance programs (sec. 1602)
       The Senate bill contained a provision (sec. 578) that would 
     require the Secretary of Defense to promulgate regulations to 
     ensure that each service complies with directives 
     implementing the Federal Voting Assistance Program (FVAP) and 
     require the Inspector General of each service to conduct an 
     annual review of compliance with the FVAP and report the 
     results to the Department of Defense Inspector General, who 
     would report annually to Congress.
       The House amendment contained a similar provision (sec. 
     551) that would also establish certain requirements for 
     voting assistance officers, and require polling of units and 
     ships at sea regarding the availability of voting materials 
     prior to congressional elections.
       The House recedes with an amendment that would combine 
     elements of the two provisions.
     Guarantee of residency for military personnel (sec. 1603)
       The Senate bill contained a provision (sec. 573) that would 
     provide that for purposes of voting in any federal, state or 
     local election, a person absent from a state pursuant to 
     military orders would not, solely by reason of that absence, 
     be deemed to have: (1) lost a residence or domicile in that 
     state; (2) acquired a residence or domicile in another state; 
     or (3) become a resident in or of any other state.
       The House amendment contained no similar provision.
       The House recedes.
     Electronic voting demonstration project (sec. 1604)
       The Senate bill contained a provision (sec. 577) that would 
     require the Department of Defense to conduct an electronic 
     voting demonstration for absent military voters in the 
     November, 2002, federal elections.
       The House amendment contained a similar provision (sec. 
     552).
       The House recedes with a clarifying amendment.
       The conferees are aware of the Department's concern about 
     having sufficient lead time to prepare for a meaningful 
     demonstration project in 2002. The conferees encourage the 
     Department to consider use of commercially available, off-
     the-shelf, electronic voting products to expedite preparation 
     for the 2002 demonstration.
     Governors' reports on implementation of recommendations for 
         changes in state law made under Federal Voting Assistance 
         Program (sec. 1605)
       The Senate bill contained a provision (sec. 580) that would 
     require the chief executive officer of a state to report on 
     the implementation of a uniformed services voting assistance 
     legislative recommendation within 90 days of receipt of that 
     recommendation.
       The House amendment contained no similar provision.
       The House recedes with a clarifying amendment.
     Simplification of voter registration and absentee ballot 
         application procedures for absent uniformed services and 
         overseas voters (sec. 1606)
       The Senate bill contained a provision (sec. 575) that would 
     require states to accept and process the official postcard 
     form as a simultaneous absentee voter register application 
     and absentee ballot application. The Senate bill also 
     contained a provision (sec. 576) that would require states to 
     accept and process a single absentee ballot application from 
     an absent uniformed services voter or overseas voter for all 
     general, special, primary, and runoff federal elections 
     occurring during a year if the application is received not 
     less than 30 days before the first federal election occurring 
     that year.
       The House amendment contained no similar provision.
       The House recedes with an amendment that would combine the 
     two provisions and require states to provide absentee ballots 
     for each subsequent federal election during a year only if 
     the voter requests that the application be considered an 
     application for each subsequent federal election.
     Use of certain Department of Defense facilities as polling 
         places (sec. 1607)
       The House amendment contained a provision (sec. 2813) that 
     would authorize the service secretaries to make buildings 
     located on military installations and reserve component 
     facilities available for use as polling places for federal, 
     state, and local elections.
       The Senate bill contained no similar provision.
       The Senate recedes with an amendment that would permit use 
     of Department of Defense facilities as polling places if the 
     facilities were designated as of December 31, 2000, or have 
     been used since January 1, 1996, as official polling places, 
     unless local security conditions preclude such use.

                   Legislative Provisions not Adopted

     Extension of registration and balloting rights for absent 
         uniformed services voters to state and local elections
       The Senate bill contained a provision (sec. 574) that would 
     require states to permit uniformed services voters to use 
     absentee procedures to register and vote in state and local 
     elections.
       The House amendment contained no similar provision.
       The Senate recedes.
     Maximization of access of recently separated uniformed 
         service voters to the polls
       The Senate bill contained a provision (sec. 579) that would 
     require states to accept absentee registration applications 
     by military personnel before they separate from the military 
     and that would allow them, after they leave the military, to 
     vote in any election for which they are properly registered.
       The House amendment contained no similar provision.
       The Senate recedes.
     Standard for invalidation of ballots cast by absent uniformed 
         services voters in federal elections
       The Senate bill contained a provision (sec. 572) that would 
     prescribe standards for invalidation of ballots cast by 
     absent uniformed services voters in federal elections.
       The House amendment contained no similar provision.
       The Senate recedes.

            DIVISION B--MILITARY CONSTRUCTION AUTHORIZATIONS

     Overview
       The budget request for fiscal year 2002 requested 
     authorization of appropriations of $9,971.3 million for the 
     military construction and family housing construction and 
     operation accounts of the Department of Defense.
       The Senate bill would authorize $10,430.5 million for 
     military construction and family housing.
       The House amendment would authorize $10,324.7 million for 
     these accounts.
       The conferees recommend authorization of appropriations of 
     $10,681.3 million for the military construction and family 
     housing accounts of the Department of Defense for fiscal year 
     2002. Including the impact of reductions in the authorization 
     of appropriations for military construction for prior years 
     made in this Act, and of the rescission of military 
     construction appropriations for prior years for foreign 
     currency savings and for a Forward Operating Location in 
     Aruba contained in the Military Construction Appropriations 
     Act, 2002 (Public Law 107-64), the conference agreement is 
     consistent with a budget authority level of $10,500.0 million 
     for military construction and family housing.
       The following tables list the amounts authorized to be 
     appropriated for the military construction and family housing 
     accounts, and for each military construction and family 
     housing project.

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     Short title; definition (sec. 2001)
       The Senate bill contained a provision (sec. 2001) that 
     would cite Division B of this Act as the Military 
     Construction Authorization Act for Fiscal Year 2002.
       The House amendment contained a similar provision (sec. 
     2001) that would also define all references in division B to 
     the Floyd D. Spence National Defense Authorization Act for 
     Fiscal Year 2001.
       The Senate recedes.

                            Title XXI--Army

     Overview
       The Senate bill would authorize $3,068.3 million for Army 
     military construction and family housing programs for fiscal 
     year 2002.
       The House amendment would authorize $3,018.1 million for 
     this purpose.
       The conferees recommend authorization of appropriations of 
     $3,155.6 million for Army military construction and family 
     housing for fiscal year 2002.
       The conferees agree to general reductions of $29.9 million 
     in the Army military construction and military family housing 
     accounts. The reductions are to be achieved through savings 
     from favorable bids, reduced overhead costs, and 
     cancellations due to force structure changes. The general 
     reductions shall not cancel any military construction 
     authorized by Title XXI of this Act.
       The conference agreement provides the planning and design 
     funds needed to execute the construction projects authorized 
     by this Act as well as any planning and design specifically 
     directed in the House report (H. Rept. 107-194) or the Senate 
     report (S. Rept. 107-62).

                       Items of Special Interest

     Renovation of Womack Army Medical Center, Fort Bragg, North 
         Carolina
       The conferees understand that the Army intends to renovate 
     the old Womack Army Medical Center at Fort Bragg, North 
     Carolina, for use as a soldier support center. The soldier 
     support center would not only provide a convenient one-stop 
     processing center for soldiers, it would also allow for the 
     demolition of 87 World War II-era wooden buildings, resulting 
     in considerable savings in maintenance and utilities. While 
     the conferees endorse this creative initiative, the conferees 
     are disappointed that the Secretary of the Army does not 
     intend to request funding for the project until fiscal year 
     2007. The conferees urge the Secretary of the Army to 
     accelerate this important project and upon completion 
     consider naming the facility for the recently retired former 
     Chairman of the Joint Chiefs of Staff, General Hugh Shelton.

                     Legislative Provisions Adopted

     Authorized Army construction and land acquisition projects 
         (sec. 2101)
       The Senate bill contained a provision (sec. 2101) that 
     would authorize Army construction projects for fiscal year 
     2002. The authorized amounts are listed on an installation-
     by-installation basis.
       The House amendment contained a similar provision (sec. 
     2101).
       The conference agreement includes this provision.
       The authorized amounts are listed on an installation-by-
     installation basis. The state list of projects contained in 
     this report provides the binding list of specific projects 
     authorized at each location.
     Family housing (sec. 2102)
       The Senate bill included a provision (sec. 2102) that would 
     authorize new construction and planning and design of family 
     housing units for the Army for fiscal year 2002. The 
     authorized amounts are listed on an installation-by-
     installation basis.
       The House amendment contained a similar provision (sec. 
     2102).
       The conference agreement includes this provision.
       The authorized amounts are listed on an installation-by-
     installation basis. The state list of projects contained in 
     this report provides the binding list of specific projects 
     authorized at each location.
     Improvements to military family housing units (sec. 2103)
       The Senate bill contained a provision (sec. 2103) that 
     would authorize improvements to existing units of family 
     housing for fiscal year 2002.
       The House amendment contained a similar provision (sec. 
     2103).
       The conference agreement includes this provision.
     Authorization of appropriations, Army (sec. 2104)
       The Senate bill contained a provision (sec. 2104) that 
     would authorize specific appropriations for each line item 
     contained in the Army's budget for fiscal year 2002. This 
     section would also provide an overall limit on the amount the 
     Army may spend on military construction projects.
       The House amendment contained a similar provision (sec. 
     2104).
       The conference agreement includes this provision.
     Modification of authority to carry out certain fiscal year 
         2001 projects (sec. 2105)
       The Senate bill contained a provision (sec. 2105) that 
     would amend the Military Construction Authorization Act for 
     Fiscal Year 2001 (division B of the Floyd D. Spence National 
     Defense Authorization Act for Fiscal Year 2001; Public Law 
     106-398) to increase the total project authorizations for the 
     following projects by the following amounts: $4.4 million for 
     a basic training barracks project at Fort Leonard Wood, 
     Missouri; $3.0 million for a battle simulation center at Fort 
     Drum, New York; and $3.0 million for a digital training range 
     at Fort Hood, Texas.
       The House amendment contained a similar provision.
       The House recedes with a technical amendment.
     Modification of authority to carry out certain fiscal year 
         2000 projects (sec. 2106)
       The conferees agreed to a provision that would amend the 
     Military Construction Authorization Act for Fiscal Year 2000 
     (division B of Public Law 106-65) to cancel the authorization 
     of appropriations of $36.4 million in section 2014 of that 
     Act for a project for which the appropriated funds were 
     rescinded by the Military Construction Appropriations Act, 
     2002 (Public Law 107-64). This reduction is made without 
     prejudice. The conferees understand that funds may be 
     requested for this project in the future and have agreed to 
     retain the authorization for this project contained in 
     section 2101 of that Act.

                            Title XXII--Navy

     Overview
       The Senate bill would authorize $2,377.6 million for Navy 
     military construction and family housing programs for fiscal 
     year 2002.
       The House amendment would authorize $2,393.0 million for 
     this purpose.
       The conferees recommend authorization of appropriations of 
     $2,366.7 million for Navy military construction and family 
     housing for fiscal year 2002.
       The conferees agree to general reductions of $82.6 million 
     in the Navy military construction and military family housing 
     accounts. The reductions are to be achieved through savings 
     from favorable bids, reduction in overhead costs, and 
     cancellation of projects due to force structure changes. The 
     general reductions shall not cancel any military construction 
     authorized by Title XXII of this Act.
       The conference agreement provides the planning and design 
     funds needed to execute the construction projects authorized 
     by this Act as well as any planning and design specifically 
     directed in the House report (H. Rept. 107-194) or the Senate 
     report (S. Rept. 107-62).

                     Legislative Provisions Adopted

     Authorized Navy construction and land acquisition projects 
         (sec. 2201)
       The Senate bill contained a provision (sec. 2201) that 
     would authorize Navy construction projects for fiscal year 
     2002. The authorized amounts are listed on an installation-
     by-installation basis.
       The House amendment contained a similar provision (sec. 
     2201).
       The conference agreement includes this provision.
       The authorized amounts are listed on an installation-by-
     installation basis. The state list of projects contained in 
     this report provides the binding list of specific projects 
     authorized at each location.
     Family housing (sec. 2202)
       The Senate bill contained a provision (sec. 2202) that 
     would authorize new construction and planning and design of 
     family housing units for the Navy for fiscal year 2002. The 
     authorized amounts are listed on an installation-by-
     installation basis.
       The House amendment contained a similar provision (sec. 
     2202).
       The conference agreement includes this provision.
       The authorized amounts are listed on an installation-by-
     installation basis. The state list of projects contained in 
     this report provides the binding list of specific projects 
     authorized at each location.
     Improvements to military family housing units (sec. 2203)
       The Senate bill contained a provision (sec. 2203) that 
     would authorize improvements to existing units of family 
     housing for fiscal year 2002.
       The House amendment contained a similar provision (sec. 
     2203).
       The conference agreement includes this provision and 
     includes funding for the additional housing improvements 
     contained in the House amendment.
     Authorization of appropriations, Navy (sec. 2204)
       The Senate bill contained a provision (sec. 2204) that 
     would authorize specific appropriations for each line item in 
     the Navy's budget for fiscal year 2002. This section would 
     also provide an overall limit on the amount the Navy may 
     spend on military construction projects.
       The House amendment contained a similar provision (sec. 
     2204).
       The conference agreement includes this provision.
     Modification of authority to carry out certain fiscal year 
         2001 projects (sec. 2205)
       The Senate bill contained a provision (sec. 2205) that 
     would amend section 2201(a) of the Military Construction Act 
     for Fiscal Year 2001 (division B of Public Law 106-398; 114 
     Stat. 1654A-395) to correct the funding authorization for the 
     Naval Shipyard, Bremerton, Puget Sound, Washington, from

[[Page 25570]]

     $100,740,000 to $102,460,000, and for Naval Station, 
     Bremerton, Washington, from $11,930,000 to $1,930,000. The 
     provision would also correct the total funding authorized for 
     construction projects inside the United States from 
     $811,497,000 to $803,217,000.
       The House amendment contained no similar provision.
       The House recedes with an amendment that would increase the 
     authorization for Industrial Skills Center, Puget Sound Naval 
     Shipyard from $20,280,000 to $24,000,000. The amendment would 
     also reduce the fiscal year 2001 authorization of 
     appropriations for planning and design by $19.6 million to 
     reflect the rescission of unobligated balances of this amount 
     in the Military Construction Appropriations Act, 2002 (Public 
     Law 107-64), and would make certain conforming changes.
     Modification of authority to carry out certain fiscal year 
         2000 project (sec. 2206)
       The Senate bill contained a provision (sec. 2206) that 
     would amend the Military Construction Authorization Act for 
     Fiscal Year 2000 (division B of Public Law 106-65) to 
     increase the total project authorization for the headquarters 
     facility for the Commander in Chief of the Pacific Fleet at 
     Camp Smith, Hawaii by $3.0 million.
       The House amendment contained a similar provision.
       The House recedes.

                         Title XXIII--Air Force

     Overview
       The Senate bill would authorize $2,587.8 million for Air 
     Force military construction and family housing programs for 
     fiscal year 2002.
       The House amendment would authorize $2,526.0 million for 
     this purpose.
       The conferees recommend authorization of appropriations of 
     $2,573.1 million for Air Force military construction and 
     family housing for fiscal year 2002.
       The conferees agree to general reductions of $48.4 million 
     in the Air Force military construction and military family 
     housing accounts. The reductions are to be achieved through 
     savings from favorable bids, reduction in overhead costs, and 
     cancellation of projects due to force structure changes. The 
     general reductions shall not cancel any military construction 
     authorized by Title XXIII of this Act.
       The conference agreement provides the planning and design 
     funds needed to execute the construction projects authorized 
     by this Act as well as any planning and design specifically 
     directed in the House report (H. Rept. 107-194) or the Senate 
     report (S. Rept. 107-62).

                     Legislative Provisions Adopted

     Authorized Air Force construction and land acquisition 
         projects (sec. 2301)
       The Senate bill contained a provision (sec. 2301) that 
     would authorize Air Force construction projects for fiscal 
     year 2002. The authorized amounts are listed on an 
     installation-by-installation basis.
       The House amendment contained a similar provision (sec. 
     2301).
       The conference agreement includes this provision.
       The authorized amounts are listed on an installation-by-
     installation basis. The state list of projects contained in 
     this report provides the binding list of specific projects 
     authorized at each location.
     Family housing (sec. 2302)
       The Senate bill included a provision (sec. 2302) that would 
     authorize new construction and planning and design of family 
     housing units for the Air Force for fiscal year 2002. The 
     authorized amounts are listed on an installation-by-
     installation basis.
       The House amendment contained a similar provision (sec. 
     2302).
       The conference agreement includes this provision.
       The authorized amounts are listed on an installation-by-
     installation basis. The state list of projects contained in 
     this report provides the binding list of specific projects 
     authorized at each location.
     Improvements to military family housing units (sec. 2303)
       The Senate bill contained a provision (sec. 2303) that 
     would authorize improvements to existing units of family 
     housing for fiscal year 2002.
       The House amendment contained a similar provision (sec. 
     2303).
       The conference agreement includes this provision and 
     includes funding for the additional housing improvements 
     contained in the Senate bill and the House amendment.
     Authorization of appropriations, Air Force (sec. 2304)
       The Senate bill contained a provision (sec. 2304) that 
     would authorize specific appropriations for each line item in 
     the Air Force budget for fiscal year 2002. This section would 
     also provide an overall limit on the amount the Air Force may 
     spend on military construction projects.
       The House amendment contained a similar provision (sec. 
     2304).
       The conference agreement includes this provision.
     Modification of authority to carry out certain fiscal year 
         2001 projects (sec. 2305)
       The Senate bill contained a provision (sec. 2305) that 
     would amend section 2302(a) of the Military Construction Act 
     for Fiscal Year 2001 (division B of Public Law 106-398; 114 
     Stat. 1654A-400) to correct the number of family housing 
     units authorized for construction at Mountain Home Air Force 
     Base, Idaho, from 119 units to 46 units.
       The House amendment contained a provision (sec. 2305) that 
     would amend the table in section 2301 of the Military 
     Construction Authorization Act for Fiscal Year 2001 (division 
     B of Public Law 106-398) to provide for an increase in the 
     amounts authorized for military construction at McGuire Air 
     Force Base, New Jersey.
       The House recedes to the Senate provision. The Senate 
     recedes to the House provision.

                      Title XXIV--Defense Agencies

     Overview
       The Senate bill would authorize $905.8 million for Defense 
     Agencies military construction and family housing programs 
     for fiscal year 2002, and an additional $592.2 million for 
     base closure activities.
       The House amendment would authorize $885.0 million for 
     Defense Agencies military construction and family housing 
     programs and $532.2 million for base closure activities.
       The conferees recommend authorization of appropriations of 
     $848.5 million for Defense Agencies military construction and 
     family housing for fiscal year 2002. The conferees also 
     recommend authorization of appropriations of $632.7 million 
     for base closure activities.
       The conferees agree to a general reduction of $17.6 million 
     in the authorization of appropriations for the Defense 
     Agencies military construction account. The general reduction 
     is to be achieved through savings from favorable bids and 
     reductions in overhead costs. The conferees further agree to 
     a general reduction of $10.0 million in the authorization of 
     appropriations for planning and design for the chemical 
     demilitarization program. The reduction to the entire 
     chemical demilitarization program is based on unobligated 
     prior year funds. The conferees do not intend this reduction 
     to interfere with timely compliance with the Chemical Weapons 
     Convention. The general reductions shall not cancel any 
     military construction projects authorized by Title XXIV of 
     this Act.
       The conference agreement provides the planning and design 
     funds needed to execute the construction projects authorized 
     by this Act as well as any planning and design specifically 
     directed in the House report (H. Rept. 107-194) or the Senate 
     report (S. Rept. 107-62).

                     Legislative Provisions Adopted

     Authorized Defense Agencies construction and land acquisition 
         projects (sec. 2401)
       The Senate bill contained a provision (sec. 2401) that 
     would authorize Defense Agencies construction projects for 
     fiscal year 2002. The authorized amounts are listed on an 
     installation-by-installation basis.
       The House amendment contained a similar provision (sec. 
     2401).
       The conference agreement includes this provision.
       The authorized amounts are listed on an installation-by-
     installation basis. The state list contained in this report 
     is intended to be the binding list of the specific projects 
     authorized at each location.
     Energy conservation projects (sec. 2402)
       The Senate bill contained a provision (sec. 2402) that 
     would authorize the Secretary of Defense to carry out energy 
     conservation projects.
       The House amendment contained a similar provision.
       The Senate recedes with a technical amendment.
     Authorization of appropriations, Defense Agencies (sec. 2403)
       The Senate bill contained a provision (sec. 2403) that 
     would authorize specific appropriations for each line item in 
     the Defense Agencies' budgets for fiscal year 2002. This 
     section would also provide an overall limit on the amount the 
     Defense Agencies may spend on military construction projects.
       The House amendment contained a similar provision (sec. 
     2403).
       The conference agreement includes this provision.
     Cancellation of authority to carry out certain fiscal year 
         2001 projects (sec. 2404)
       The Senate bill contained a provision (sec. 2404) that 
     would amend the Military Construction Authorization Act for 
     Fiscal Year 2001 (division B of Public Law 106-398) to cancel 
     the project authorizations for four TRICARE Management Agency 
     medical/dental clinic and support facility projects at Camp 
     Pendleton, California since the funds authorized in fiscal 
     year 2001 were used for payment of a claim related to the 
     construction of the Portsmouth Naval Hospital, Virginia. 
     These projects would be authorized for fiscal year 2002 in 
     section 2403 of this Act.
       The House amendment contained a provision (sec. 2404) that 
     would amend the table in section 2401 of the Military 
     Construction Authorization Act for Fiscal Year 2001 (division 
     B of Public Law 106-398) to provide for an increase in the 
     amounts authorized for construction at Marine Corps Base, 
     Camp Pendleton, California.
       The House recedes with an amendment that would reduce the 
     fiscal year 2001 project

[[Page 25571]]

     authorization and the authorization of appropriations for 
     military construction for a national missile defense system 
     by $55.0 million to reflect the administration's proposal in 
     the fiscal year 2002 budget to build any facilities related 
     to ballistic missile defenses with research and development 
     funds rather than military construction funds.
     Modification of authority to carry out certain fiscal year 
         2000 projects (sec. 2405)
       The Senate bill contained a provision (sec. 2406) that 
     would amend the Military Construction Authorization Act for 
     Fiscal Year 2000 (division B of Public Law 106-65) to 
     increase the project authorization for a chemical 
     demilitarization facility at Blue Grass Army Depot, Kentucky 
     by $47.2 million and the authorization for a hospital at Fort 
     Wainwright, Alaska by $82.0 million.
       The provision would also cancel the project authorization 
     for an aircrew water survival training facility at Whidbey 
     Island Naval Air Station, Washington since the funds 
     authorized in fiscal year 2000 were used for payment of a 
     claim related to the construction of the Portsmouth Naval 
     Hospital, Virginia. This project would be authorized for 
     fiscal year 2002 in section 2403 of this Act.
       The House amendment contained a provision (sec. 2405) that 
     would amend the table in section 2401 of the Military 
     Construction Authorization Act for Fiscal Year 2000 (division 
     B of Public Law 106-65) to provide for an increase in the 
     amounts authorized for construction at Naval Air Station, 
     Whidbey Island, Washington and Blue Grass Army Depot, 
     Kentucky.
       The House recedes with a technical amendment.
     Modification of authority to carry out certain fiscal year 
         1999 project (sec. 2406)
       The Senate bill contained a provision (sec. 2407) that 
     would amend the Military Construction Authorization Act for 
     Fiscal Year 1999 (division B of Public Law 105-261) to 
     increase the project authorization for a chemical 
     demilitarization facility at Aberdeen Proving Ground, 
     Maryland by $37.6 million.
       The House amendment contained a similar provision.
       The Senate recedes.
     Modification of authority to carry out certain fiscal year 
         1995 project (sec. 2407)
       The Senate bill contained a provision (sec. 2408) that 
     would amend the table in section 2401 of the Military 
     Construction Authorization Act for Fiscal Year 1995 (division 
     B of Public Law 103-337; 108 Stat. 3040), as amended, to 
     increase the funding for Chemical Weapons and Munitions 
     Destruction facilities at Pine Bluff, Arkansas, by $23.0 
     million.
       The House amendment contained an identical provision.
       The conference agreement includes this provision.
     Procedures for the Department of Defense
       The conferees agree to authorize a round of base 
     realignment and closure for the Department of Defense in 
     2005. The conference agreement modifies the procedures used 
     in the 1991, 1993 and 1995 rounds as described below.
       Recommendations by the Secretary
       With respect to the recommendations of the Secretary of 
     Defense, the conferees have modified the process used in 
     prior rounds as follows.
       The force structure plan submitted by the Secretary of 
     Defense with the fiscal year 2005 budget would include 
     detailed information on probable end-strength and force 
     levels for the military services, including major ground 
     combat units, combatant vessels and air wings. The Secretary 
     would be required to review every type of installation and to 
     take into account the anticipated need for and availability 
     of overseas installations in the future.
       The Secretary would be permitted to submit a revised force 
     structure plan with the fiscal year 2006 budget.
       The Secretary would be required to include with the force 
     structure plan: an inventory of military installations; a 
     description of the categories of excess infrastructure; and 
     an economic analysis of the options for eliminating or 
     reducing that excess infrastructure, including potential 
     efficiencies from joint use and tenancy of military 
     installations by more than one service.
       The Secretary would be required to certify, when the force 
     structure plan and infrastructure inventory are submitted, 
     whether the need exists for closure or realignment of 
     additional military installations and, if such need exists, 
     that a round of such closures and realignments in 2005 would 
     produce annual net savings within six years. If the Secretary 
     failed to provide this certification, the process for closure 
     or realignment of installations under the provisions of this 
     Act for 2005 would be terminated.
       The conferees have specified factors that must be evaluated 
     and incorporated in the Secretary's final list of criteria, 
     including the military value of installations for both the 
     preservation of land for traditional warfighting missions and 
     the preservation of installations for homeland defense. 
     However, the Secretary is not limited to the criteria 
     contained in this Act. Any selection criteria relating to the 
     cost or savings of proposed closures would have to take into 
     account the impact of the closure on other federal agency 
     operations on that installation.
       The General Accounting Office would be required to submit 
     to Congress an evaluation of the force structure plan, the 
     installation inventory and the selection criteria.
       Consideration of the Secretary's proposal by the commission
       With respect to the proceedings of the commission, the 
     conferees agree to the following changes.
       The number of commissioners for the 2005 round would be 
     increased from eight to nine.
       The commission would have 48 hours rather than 24 hours to 
     provide information received from certain individuals of the 
     Department of Defense to the Congress.
       The Secretary of Defense would be given an opportunity to 
     testify before the commission on changes proposed by the 
     commission to the Secretary's recommendations.
       Prior to any decision to add an installation not proposed 
     to be closed or realigned by the Secretary to the list of 
     installations to be considered for closure or realignment by 
     the commission, the commission would be required to give the 
     Secretary 15 days to submit an explanation of why the 
     Secretary did not propose that installation for closure or 
     realignment. A decision to add that installation to the list 
     of installations being considered would then have to be 
     supported by at least seven commissioners.
       Privatization in place of closed or realigned facilities 
     would be prohibited unless it was specifically recommended by 
     the commission and determined to be the most cost-effective 
     option.
       Disposal of property
       With respect to the disposal of property from closed or 
     realigned facilities, the conferees have modified the process 
     as follows.
       The conference agreement would require the Secretary of 
     Defense to obtain fair market value for economic development 
     conveyances in most cases, unless the Secretary determines 
     the circumstances warrant a below-cost or no-cost conveyance.
       The conferees agree to allow the Secretary to recommend 
     that an installation be placed in an inactive or caretaker 
     status if the Secretary determines that the installation may 
     be needed in the future for national security purposes, but 
     is not needed at the present time, or that retention of the 
     installation by the Department of Defense is otherwise in the 
     interests of the United States.
       The conferees agree to allow payment to a local 
     redevelopment authority for services provided on property 
     leased back by the United States.
       The DOD would be authorized to pay to the recipient of the 
     former DOD property the amount by which the estimated cost to 
     the recipient to clean up a BRAC site exceeds the value of 
     the property.
       A Department of Defense Closure Account 2005 would be 
     created to fund the costs of implementing any closures or 
     realignments from the 2005 round.
     Procedures for the Department of Energy
       The conferees agree to authorize the Secretary of Energy to 
     propose facilities of the nuclear weapons complex for closure 
     or realignment in the 2005 BRAC round. The recommendations of 
     the Secretary for closure or realignment of facilities of the 
     nuclear weapons complex, if any, would be considered by the 
     same commission that would also consider any recommendations 
     of the Secretary of Defense. The conferees urge the President 
     to nominate some individuals with knowledge of the operations 
     of the nuclear weapons complex to serve on the commission.
       The procedures for evaluating facilities of the nuclear 
     weapons complex by the Secretary and the commission would 
     generally follow those used for Department of Defense 
     facilities. However, the conferees have modified those 
     procedures, where appropriate, to reflect the differing 
     missions, types of facilities, and property disposal 
     practices of the respective Departments.
       The Secretary would be required to provide an 
     organizational plan for the nuclear weapons complex 
     sufficient to support the nuclear weapons stockpile, the 
     Naval Reactor Program and the non-proliferation and national 
     security activities. In preparing the plan, the Secretary 
     would take into consideration the Department of Defense 
     Nuclear Posture Review, the efficiencies and security 
     benefits of consolidation and the necessity to have a 
     residual production capacity.
       The Secretary would be required to certify, when the plan 
     is submitted, whether the need exists for closure or 
     realignment of facilities of the nuclear weapons complex and 
     that, if such need exists, a round of such closures and 
     realignments in 2005 would produce annual net savings within 
     six years. If the Secretary failed to provide this 
     certification, the process for closure or realignment of 
     installations for the Department of Energy under the 
     provisions of this Act for 2005 would be terminated.
       Property at facilities of the nuclear weapons complex 
     recommended for closure by the commission would be disposed 
     of under current statutes providing for the disposal of 
     property of the Department of Energy and would not be subject 
     to section 2905 of the Defense Base Closure and Realignment 
     Act of 1990.
       A Nuclear Weapons Complex Closure Account 2005 would be 
     created to fund the costs

[[Page 25572]]

     of implementing any closures or realignments of facilities of 
     the nuclear weapons complex.
     Prohibition on expenditures to develop forward operating 
         location on Aruba (sec. 2408)
       The House amendment contained a provision (sec. 2408) that 
     would prohibit funds appropriated in chapter 3 of title II of 
     the Emergency Supplemental Appropriations Act, 2000 (Public 
     Law 106-246) to be used by the Secretary of Defense to 
     develop any forward operating location of the island of 
     Aruba.
       The Senate bill contained no similar provision.
       The Senate recedes with a clarifying amendment.

                   Legislative Provisions Not Adopted

     Cancellation of authority to carry out additional fiscal year 
         2001 project
       The Senate bill contained a provision (sec. 2405) that 
     would reduce the fiscal year 2001 project authorization and 
     the authorization of appropriations for military construction 
     for a national missile defense system by $55.0 million to 
     reflect the administration's proposal in the fiscal year 2002 
     budget to build any facilities related to ballistic missile 
     defenses with research and development funds rather than 
     military construction funds.
       The House amendment contained no similar provision.
       The Senate recedes.
       The conferees agree to include this reduction in another 
     provision in this title.

   Title XXV--North Atlantic Treaty Organization Security Investment 
                                Program

     Overview
       The Senate bill, the House amendment, and the conference 
     agreement would all authorize $162.6 million for the U.S. 
     contribution to the North Atlantic Treaty Organization (NATO) 
     Security Investment Program for fiscal year 2002.

                     Legislative Provisions Adopted

     Authorized NATO construction and land acquisition projects 
         (sec. 2501)
       The Senate bill contained a provision (sec. 2501) that 
     would authorize the Secretary of Defense to make 
     contributions to the North Atlantic Treaty Organization 
     Security Investment program in an amount equal to the sum of 
     the amount specifically authorized in section 2502 of the 
     Senate bill and the amount of recoupment due to the United 
     States for construction previously financed by the United 
     States.
       The House amendment contained an identical provision.
       The conference agreement includes this provision.
     Authorization of appropriations, NATO (sec. 2502)
       The Senate bill contained a provision (sec. 2502) that 
     would authorize appropriations of $162,600,000 as the United 
     States contribution to the North Atlantic Treaty Organization 
     (NATO) Security Investment Program.
       The House amendment contained an identical provision.
       The conference agreement includes this provision.

                Title XXVI--Guard and Reserve Facilities

     Overview
       The Senate bill would authorize $791.2 million for military 
     construction and land acquisition for fiscal year 2002 for 
     the Guard and Reserve components.
       The House amendment would authorize $807.8 million for this 
     purpose.
       The conferees recommend authorization of appropriations of 
     $942.0 million for military construction and land acquisition 
     for fiscal year 2002. Funds are authorized for the Guard and 
     Reserve Components as follows:

Army National Guard........................................$393,253,000
Air National Guard..........................................253,852,000
Army Reserve................................................168,969,000
Naval and Marine Corps Reserve...............................52,896,000
Air Force Reserve............................................73,032,000
                                                               ________
                                                               
                                                       ________________
                                                       
    Total...................................................942,002,000

       The conference agreement provides the planning and design 
     funds needed to execute the construction projects authorized 
     by this Act, as well as any planning and design specifically 
     directed in the House report (H. Rept. 107-194) or the Senate 
     report (S. Rept. 107-62).

                       Items of Special Interest

     Improvement of National Guard infrastructure
       The conferees are aware of the pressing problems facing 
     state National Guard facilities and the general need to 
     improve aging infrastructure, in particular deteriorated and 
     unsafe roofs. The conferees note the efforts in certain 
     states, in particular those of the Oklahoma National Guard, 
     to develop plans to address this problem. The conferees 
     direct the Director of the National Guard Bureau to make 
     every effort to identify the necessary funding sources for 
     roof replacement and other critical infrastructure 
     improvements to state guard facilities.
     Planning and design, Army National Guard
       The report accompanying the House amendment, H.R. 2586, 
     contained a recommendation that within the amounts authorized 
     for planning and design for the Air National Guard, the 
     Secretary of the Air Force execute the following project: 
     $1,331,000 for a joint headquarters building at McEntire Air 
     National Guard Base, South Carolina.
       The conferees have been notified that the Army National 
     Guard would be the appropriate lead agency for the 
     construction of the joint headquarters. Therefore, the 
     conferees agreed to revise the recommendation of the House 
     report and recommend that the Secretary of the Army, within 
     authorized amounts for planning and design, execute the 
     following project: $1,331,000 for a joint headquarters 
     building at McEntire Air National Guard, Base, South 
     Carolina.

                     Legislative Provisions Adopted

     Authorized guard and reserve construction and land 
         acquisition projects (sec. 2601)
       The Senate bill contained a provision (sec. 2601) that 
     would authorize appropriations for military construction for 
     the Guard and Reserve by service component for fiscal year 
     2002.
       The House amendment contained a similar provision (sec. 
     2601).
       The conference agreement includes this provision. The state 
     list of projects contained in this report provides the 
     binding list of specific projects authorized at each 
     location.

        Title XXVII--Expiration and Extension of Authorizations

                     Legislative Provisions Adopted

     Expiration of authorizations and amounts required to be 
         specified by law (sec. 2701)
       The Senate bill contained a provision (sec. 2701) that 
     would provide that authorizations for military construction 
     projects, repair of real property, land acquisition, family 
     housing projects and facilities, contributions to the North 
     Atlantic Treaty Organization Security Investment Program, and 
     guard and reserve projects will expire on October 1, 2004, or 
     the date of enactment of an Act authorizing funds for 
     military construction for fiscal year 2005, whichever is 
     later. This expiration would not apply to authorizations for 
     which appropriated funds have been obligated before October 
     1, 2004, or the date of enactment of an Act authorizing funds 
     for these projects, whichever is later.
       The House amendment contained an identical provision.
       The conference agreement includes this provision.
     Extension of authorizations of certain fiscal year 1999 
         projects (sec. 2702)
       The Senate bill contained a provision (sec. 2702) that 
     would extend the authorization for certain fiscal year 1999 
     military construction projects until October 1, 2002, or the 
     date of the enactment of the Act authorizing funds for 
     military construction for fiscal year 2003, whichever is 
     later.
       The House amendment contained a similar provision.
       The House recedes.
     Extension of authorizations of certain fiscal year 1998 
         projects (sec. 2703)
       The Senate bill contained a provision (sec. 2703) that 
     would extend the authorization for certain fiscal year 1998 
     military construction projects until October 1, 2002, or the 
     date of the enactment of the Act authorizing funds for 
     military construction for fiscal year 2003, whichever is 
     later.
       The House amendment contained a similar provision.
       The Senate recedes with a technical amendment.
     Effective date (sec. 2704)
       The Senate bill contained a provision (sec. 2704) that 
     would provide that Titles XXI, XXII, XXIII, XXIV, XV, and 
     XXVI of this bill shall take effect on October 1, 2001, or 
     the date of the enactment of this Act, whichever is later.
       The House amendment contained an identical provision.
       The conference agreement includes this provision.

                    Title XXVIII--General Provisions

                       Items of Special Interest

     Remediation of former Fort Ord, California
       The conferees are aware that two parcels of land at the 
     former Fort Ord, California, will be transferred at no cost 
     to the City of Seaside, California, for the purpose of 
     providing recreational opportunities for disadvantaged youth, 
     once environmental remediation of the land is complete. The 
     conferees understand that the priority has been to transfer 
     the cleanest parcels on the former Fort Ord first, deferring 
     to the future the transfer of land possibly contaminated with 
     unexploded ordnance. Nevertheless, the conferees observe that 
     Fort Ord was selected for closure more than ten years ago and 
     are disappointed that parcels such as these, though 
     encumbered with greater cleanup challenges, are still pending 
     remediation and transfer. The conferees endorse the intended 
     use of these parcels and urge the Secretary of the Army to 
     speed the environmental remediation.

[[Page 25573]]



                     Legislative Provisions Adopted

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

     Increase in thresholds for certain unspecified minor military 
         construction projects (sec. 2801)
       The Senate bill contained a provision (sec. 2801) that 
     would amend section 2805 of title 10, United States Code to 
     increase from $500,000 to $750,000 the cost threshold for an 
     unspecified minor construction project requiring approval by 
     the service secretary concerned. The provision would further 
     amend section 2805 to increase the amount the secretary 
     concerned may spend from appropriated operation and 
     maintenance amounts for projects intended to correct 
     deficiencies that are a threat to life, health, or safety 
     from $1.0 million to $1.5 million and for other unspecified 
     minor construction projects from $500,000 to $750,000.
       The House amendment contained a similar provision.
       The House recedes.
     Exclusion of unforseen environmental hazard remediation from 
         limitation on authorized cost variations (sec. 2802)
       The Senate bill contained a provision (sec. 2802) that 
     would amend section 2853 of title 10, United States Code, to 
     exclude the cost associated with unforseen environmental 
     hazard remediation from the limitation on cost increases in 
     military construction projects. Costs that could be excluded 
     would include asbestos removal, radon abatement, lead-based 
     paint removal or abatement, and any other environmental 
     hazard remediation required by law that could not be 
     reasonably anticipated at the time the funding for the 
     project was approved by the Congress.
       The House amendment contained a similar provision.
       The Senate recedes with a technical amendment.
     Repeal of annual reporting requirement on military 
         construction and military family housing activities (sec. 
         2803)
       The Senate bill contained a provision (sec. 2803) that 
     would repeal a statutory requirement for an annual report to 
     Congress on the status of military construction and family 
     housing projects and trends in the funding for various 
     aspects of military construction.
       The House amendment contained a similar provision.
       The Senate recedes.
     Funds for housing allowances of members assigned to military 
         family housing under alternative authority for 
         acquisition and improvement of military housing (sec. 
         2804)
       The Senate bill contained a provision (sec. 2805) that 
     would authorize the Secretary of Defense, to the extent 
     provided in advance in appropriations acts, during the year 
     in which a contract is awarded for a family housing 
     privatization project, to reimburse the Military Personnel 
     appropriations account from the Family Housing Maintenance 
     and Operations appropriations the amounts necessary to offset 
     the additional cost of housing allowances that would be paid 
     as a result of a housing privatization project. The provision 
     would also make certain technical changes.
       The House amendment contained no similar provision.
       The House recedes with a technical amendment.
     Extension of alternative authority for acquisition and 
         improvement of military housing (sec. 2805)
       The House amendment contained a provision (sec. 2804) that 
     would amend section 2885 of title 10, United States Code, to 
     make permanent the authorities contained in subchapter 169 of 
     title 10, United States Code.
       The Senate bill contained no similar provision.
       The Senate recedes with an amendment that would extend the 
     authorities contained in subchapter 169 of title 10, United 
     States Code through December 31, 2012.
     Treatment of financing costs as allowable expenses under 
         contracts for utility services from utility systems 
         conveyed under privatization initiative (sec. 2806)
       The Senate bill contained a provision (sec. 2806) that 
     would require the Secretary of Defense to determine, within 
     90 days, whether or not modifying the Federal Acquisition 
     Regulation (FAR) is advisable so that a contract for utility 
     services may include terms and conditions that recognize 
     financing costs as an allowable expense when incurred in the 
     process of acquiring, operating, renovating, replacing, 
     upgrading, repairing and expanding the installation utility 
     system. If within 180 days, the Federal Acquisition 
     Regulatory Council has not modified the FAR, the Secretary 
     would be required to submit a report justifying such action.
       The House amendment contained no similar provision.
       The House recedes with an amendment that would direct the 
     Secretary of Defense, if he determines that modifying the 
     Federal Acquisition Regulation is advisable, to request that 
     the Federal Acquisition Regulatory Council make the 
     appropriate changes.

        Subtitle B--Real Property and Facilities Administration

     Use of military installations for certain recreational 
         activities (sec. 2811)
       The House amendment contained a provision (sec. 2811) that 
     would amend section 2671 of title 10, United States Code, to 
     allow the Secretary of Defense to waive state or territory 
     fish and game laws to permit hunting, fishing, or trapping on 
     military installations to promote public safety or morale, 
     welfare and recreation activities.
       The Senate bill contained no similar provision.
       The Senate recedes with an amendment that would authorize 
     the Secretary of Defense to waive state or territory fish and 
     game laws relating to hunting, fishing or trapping if such a 
     waiver is required for health or safety reasons at military 
     installations and that would require the Secretary of Defense 
     to notify state officials 30 days prior to implementing any 
     such waiver.
     Availability of proceeds of sales of Department of Defense 
         property from certain closed military installations (sec. 
         2812)
       The Senate bill contained a provision (sec. 2811) that 
     would increase from 50 percent to 100 percent the share of 
     the proceeds from the sale of surplus Department of Defense 
     property at closed installations that may be used for 
     infrastructure maintenance and environmental restoration at 
     other installations within the service that operated the 
     closed installation.
       The House amendment contained no similar provision.
       The House recedes with an amendment that would clarify that 
     this provision applies to proceeds of property that is 
     disposed of other than through the base realignment and 
     closure statutes.
     Pilot program to provide additional tools for efficient 
         operation of military installations (sec. 2813)
       The Senate bill contained a provision (sec. 2812) that 
     would authorize the Secretary of Defense to carry out a pilot 
     program to determine the potential for increasing the 
     efficiency and effectiveness of the operation of military 
     installations. The pilot program would terminate four years 
     after the date of enactment of this Act.
       The provision would permit the Secretary to designate up to 
     two installations in each military department as participants 
     in the efficient facilities initiative. The Secretary would 
     be required to develop a management plan to carry out the 
     initiative at each designated installation and submit that 
     plan to the Congress. The Secretary would be required to 
     identify any statutes or regulations he proposes to waive 
     under this authority. Such waivers would have to be enacted 
     into law in subsequent legislation before they would take 
     effect.
       Funds received by the military departments pursuant to this 
     authority would be deposited in an Installation Efficiency 
     Project Fund, which could be used to manage capital assets 
     and provide support services at installations participating 
     in the initiative.
       The House amendment contained no similar provision.
       The House recedes with a technical amendment. The conferees 
     agree that the provisions of section 2461 of title 10, United 
     States Code would apply to any changes to Office of 
     Management and Budget Circular A-76 that would be proposed 
     under this authority.
     Demonstration program on reduction in long-term facility 
         maintenance costs (sec. 2814)
       The Senate bill contained a provision (sec. 2813) that 
     would authorize the Secretary of the Army to enter into no 
     more than three contracts in any fiscal year that would 
     require the contractor to maintain a facility constructed for 
     the Army for up to the first five years of operation of that 
     facility and would include any costs for the performance of 
     such maintenance in the cost of construction of the project. 
     The demonstration program would be authorized for fiscal 
     years 2002 through 2006.
       The House amendment contained no similar provision.
       The House recedes with an amendment that would direct the 
     Secretary of the Army to submit a report to the congressional 
     defense committees not later than January 31, 2005.
     Base efficiency project at Brooks Air Force Base, Texas (sec. 
         2815)
       The House amendment contained a provision (sec. 2812) that 
     would amend section 136 of the Military Construction 
     Appropriations Act, 2001 (division A of Public Law 106-246) 
     to authorize the Secretary of the Air Force to provide 
     environmental indemnification to the San Antonio community 
     and other persons for personal injury or property damage 
     resulting from environmental contamination resulting from 
     Department of Defense activities at Brooks Air Force Base. No 
     indemnification would be provided unless the person or entity 
     making the claim provided the required documentation. This 
     section would authorize the Secretary to settle or defend a 
     claim for cases where the Secretary determines that the 
     Department of Defense may be required to make indemnification 
     payments.
       The House amendment would also amend section 136(m)(9) of 
     the Military Construction Appropriations Act, 2001, to allow 
     the Secretary of the Air Force to delegate his authorities to 
     officials in the Air Force that have not been confirmed by 
     the Senate.
       The Senate bill contained no similar provision.

[[Page 25574]]

       The Senate recedes with an amendment that would allow the 
     Secretary of the Air Force to further delegate his 
     authorities and would direct the Secretary of Defense to 
     evaluate the base efficiency project at Brooks Air Force 
     Base, Texas, and report to the Congress on whether the 
     effective implementation of this project requires additional 
     authority for the Secretary of the Air Force to indemnify the 
     recipients of the property against claims arising out of 
     Department of Defense activities on the property prior to 
     disposal. The report would be submitted not later than March 
     1, 2002. If the Secretary of Defense determines that 
     indemnification is appropriate, the report would include a 
     recommendation on the nature and extent of additional 
     indemnification the Secretary of Defense recommends be 
     provided.

  Subtitle C--Implementation of Defense Base Closures and Realignments

     Lease Back of Base Closure Property (sec. 2821)
       The House amendment contained a provision (sec. 2821) that 
     would amend the Defense Authorization Amendments and Base 
     Closure and Realignment Act (Public Law 100-526; section 2687 
     of title 10, United States Code), which governs the 1988 
     round of base closures and the Defense Base Closure and 
     Realignment Act of 1990 (part A of title XXIX of Public Law 
     101-510; 10 U.S.C. 2687 note) which governs the 1991, 1993 
     and 1995 rounds of base closures, to authorize the secretary 
     concerned to transfer real property at a closed or realigned 
     military installation to the redevelopment authority for the 
     installation if the redevelopment authority agrees, directly 
     upon transfer, to lease one or more portions of the property 
     transferred to the secretary or to the head of another 
     department or agency of the Federal Government.


       Such leases could not exceed 50 years and may not require 
     rental payments by the United States. This section would 
     permit the use of the leased property by the same or another 
     department or agency of the Federal Government if the 
     original department concerned ceases requiring the use of the 
     lease.
       The Senate bill contained a provision (sec. 2911) that 
     would amend the 1988 base closure authorities to allow 
     payment to a local redevelopment authority for services 
     provided on property leased back by the United States. 
     Section 2903 of the Senate bill contained similar language 
     modifying the 1990 base closure authorities.
       The Senate recedes with an amendment that would authorize 
     the department and agency concerned to obtain facility 
     services for the leased property, and common area maintenance 
     for the redevelopment authority or the redevelopment 
     authority's assignees, as a provision of the lease, but would 
     require that contracts for such services be awarded in 
     compliance with Chapter 137 of title 10, United States Code.

                      Subtitle D--Land Conveyances

                        Part I--Army Conveyances

     Lease authority, Fort DeRussy, Hawaii (sec. 2832)
       The Senate bill contained a provision (sec. 2844) that 
     would permit the Secretary of the Army to authorize the Army 
     Morale, Welfare and Recreation Fund to enter into an 
     agreement for the construction of a parking garage at Fort 
     DeRussy, Hawaii. The agreement could be in the form of a non-
     appropriated fund contract, conditional gift, or other 
     agreement determined by the fund to be appropriate for the 
     construction of the garage. The agreement may permit use of 
     the garage by the general public if the fund determines that 
     it will be advantageous to the fund. Amounts received by the 
     fund would be treated as non-appropriated funds, and would 
     accrue to the benefit of the fund or its component funds.
       The House amendment contained a provision (sec. 2833) that 
     would authorize the Secretary of the Army to enter into a 
     lease with the City of Honolulu, Hawaii for the purpose of 
     making available to the City a parcel of real property for 
     the construction and operation of a parking facility.
       The Senate recedes with an amendment that would authorize 
     the Secretary of the Army to enter into a lease with the City 
     and County of Honolulu to allow the City and County to 
     construct and operate a parking facility. The amendment would 
     also direct that any lease under this section would not be 
     subject to section 2667 of title 10, United States Code and 
     that all money rentals from the lease be retained by the 
     Secretary and credited to an account that supports the 
     operation and maintenance of Army facilities including Fort 
     DeRussy. The conferees expect the Secretary to ensure that an 
     appropriate share of the revenues is applied to support the 
     activities and facilities at Fort DeRussy.
     Modification of land exchange, Rock Island Arsenal, Illinois 
         (sec. 2833)
       The House amendment contained a provision (sec. 2831) that 
     would amend section 2832 of the Military Construction 
     Authorization Act for Fiscal Year 2001 (division B of Public 
     Law 106-398) by authorizing the Secretary of the Army to 
     transfer a parcel of real property of approximately .513 
     acres to the City of Moline, Illinois. As consideration for 
     the transfer, the City would convey to the Secretary a parcel 
     of real property of approximately .063 acres to construct a 
     new access ramp for the Rock Island Arsenal, Illinois.
       The Senate bill contained no similar provision.
       The Senate recedes with a technical amendment.
     Land conveyance, Fort Des Moines, Iowa (sec. 2834)
       The Senate bill contained a provision (sec. 2829) that 
     would authorize the Secretary of the Army to convey to Fort 
     Des Moines Memorial Park, Inc. approximately 4.6 acres 
     located at the Fort Des Moines United States Army Reserve 
     Center. The conveyance would be for the purpose of 
     establishing the Fort Des Moines Memorial Park and Education 
     Center and would require the recipient to reimburse the 
     Secretary for any costs associated with the conveyance.
       The House amendment contained no similar provision.
       The House recedes with an amendment that would make 
     technical corrections and would clarify that the recipient of 
     the property would be required to reimburse the Secretary for 
     any excess costs that result from a request by the recipient 
     for any environmental assessments or other activities that 
     result in additional costs to the Army beyond those 
     considered reasonable and necessary by the Secretary to 
     convey the property in compliance with existing law.
     Modification of land conveyances, Fort Dix, New Jersey (sec. 
         2835)
       The House amendment contained a provision (sec. 2832) that 
     would amend section 2835 of the Military Construction 
     Authorization Act for Fiscal Year 1998 (division B of Public 
     Law 105-85) to authorize the exchange between the Borough of 
     Wrightstown and the New Hanover Board of Education, without 
     the consent of the Secretary of the Army, of all or any 
     portion of the property conveyed so long as the property 
     continues to be used for economic or educational purposes.
       The Senate bill contained no similar provision.
       The Senate recedes.
     Land conveyance, Engineer Proving Ground, Fort Belvoir, 
         Virginia (sec. 2836)
       The Senate bill contained a provision (sec. 2821) that 
     would authorize the Secretary of the Army to convey to the 
     Commonwealth of Virginia 11.45 acres located at the Engineer 
     Proving Ground, Fort Belvoir, Virginia for the purpose of 
     constructing a portion of Interstate Highway 95 through the 
     Engineer Proving Ground, and 170 acres for the purpose of 
     constructing a portion of the Fairfax County Parkway through 
     the Engineer Proving Ground. The Commonwealth of Virginia 
     would agree to design and construct that portion of the 
     Fairfax County Parkway through the Engineer Proving Ground; 
     design, for eventual construction, the necessary access into 
     the Engineer Proving Ground; provide utility permits; and 
     provide funding to replace an existing building located on 
     the property to be conveyed.
       The House amendment contained no similar provision.
       The House recedes with a technical amendment.
     Land exchange and consolidation, Fort Lewis, Washington (sec. 
         2837)
       The House amendment contained a provision (sec. 2834) that 
     would authorize the Secretary of the Army to convey two 
     parcels of real property, with improvements, consisting of 
     approximately 138 acres at Fort Lewis, Washington, to the 
     Nisqually Tribe. As consideration for the exchange, the Tribe 
     shall acquire from Thurston County, Washington several 
     parcels of real property consisting of approximately 416 
     acres and convey fee title to the Secretary. This section 
     would authorize the Secretary to convey to the Bonneville 
     Power Administration a right-of-way to permit the 
     Administration to use the real property at Fort Lewis as a 
     route for the Grand Coulee-Olympia and Olympia-White River 
     electrical transmission lines. The cost of any survey would 
     be borne by the recipient of the property.
       The Senate bill contained no similar provision.
       The Senate recedes.
     Land conveyance, Army Reserve Center, Kewaunee, Wisconsin 
         (sec. 2838)
       The Senate bill contained a provision (sec. 2832) that 
     would authorize the Administrator of the General Services 
     Administration to convey the former Army Reserve Center in 
     Kewaunee, Wisconsin, to the City of Kewaunee for public use. 
     The provision includes a 20-year reversionary clause and 
     directs that, in the event of a reversion of the property, 
     the property shall be disposed of by public sale.
       The House amendment contained no similar provision.
       The House recedes with an amendment that would direct that 
     proceeds received by the United States from the public sale 
     of the property, in the event that the property reverts to 
     the United States, would be deposited into the Land and Water 
     Conservation Fund.

                       Part II--Navy Conveyances

     Transfer of jurisdiction, Centerville Beach Naval Station, 
         Humbolt County, California (sec. 2841)
       The House amendment contained a provision (sec. 2841) that 
     would authorize the Secretary of the Navy to transfer, 
     without reimbursement, to the administrative jurisdiction of 
     the Secretary of the Interior the real

[[Page 25575]]

     property with improvements consisting of the closed 
     Centerville Beach Naval Station in Humboldt County, 
     California, for the purpose of permitting the Secretary of 
     the Interior to manage the real property as open space or for 
     other public purposes.
       The Senate bill contained no similar provision.
       The Senate recedes.
     Land conveyance, Port of Long Beach, California (sec. 2842)
       The conferees agree to include a provision that would 
     authorize the Secretary of the Navy to convey to the City of 
     Long Beach, California, up to 11 acres of real property, 
     including any improvements, comprising part of the Navy Mole 
     pier at the former Long Beach Naval Complex, Long Beach, 
     California. In exchange, the City would convey to the 
     Secretary a parcel of real property of equal size at the same 
     pier that is acceptable to the Secretary, and would construct 
     suitable replacement fuel transfer and storage facilities on 
     the conveyed property as determined necessary by the 
     Secretary. The Secretary would not be authorized to make the 
     conveyance until he determines that the City has constructed 
     suitable replacement facilities and that they are ready for 
     use. The provision would authorize the Secretary to convey 
     the parcel of real property and improvements at no cost if he 
     determines prior to the conveyance that the Department of the 
     Navy does not require replacement fuel transfer and storage 
     facilities.
     Conveyance of Pier, Naval Base, San Diego, California (sec. 
         2843)
       The conferees agree to include a provision that would 
     authorize the Secretary of the Navy to convey, without 
     consideration, Pier 11A and associated structures and 
     interests in underlying land located at Naval Base, San Diego 
     to the San Diego Aircraft Carrier Museum or its designee. The 
     conveyance would be contingent upon the recipient obtaining 
     permission from the State of California or the appropriate 
     political subdivision to use the property to berth a vessel 
     and operate a museum for the general public. The recipient of 
     the property would be required to reimburse the Secretary for 
     any excess costs that result from a request by the recipient 
     for any environmental assessments or other activities that 
     result in additional costs to the Navy beyond those 
     considered reasonable and necessary by the Secretary to 
     convey the property in compliance with existing law. Any 
     funds collected by the Secretary as reimbursement for 
     administrative expenses of the conveyance would be credited 
     to the appropriation, fund, or account from which the 
     expenses were paid and would be available for the same 
     purpose and subject to the same limitation.
       The provision would require that the recipient accept any 
     liability pertaining to the property's physical condition and 
     hold the Federal Government harmless from such liability.
     Modification of authority for conveyance of Naval Computer 
         and Telecommunications Station, Cutler, Maine (sec. 2844)
       The Senate bill contained a provision (sec. 2822) that 
     would make certain technical corrections to section 2853(a) 
     of the Military Construction Act for Fiscal Year 2001 
     (division B of Public Law 106-398: 114 Stat. 1654A) to 
     clarify that all or part of the specified property may be 
     conveyed.
       The House amendment contained an identical provision.
       The conference agreement includes this provision.
     Land transfer and conveyance, Naval Security Group Activity, 
         Winter Harbor, Maine (sec. 2845)
       The Senate bill contained a provision (sec. 2823) that 
     would authorize the Secretary of the Navy to transfer 
     administrative jurisdiction of a parcel of real property 
     consisting of approximately 26 acres located at the former 
     facilities of the Naval Security Group Activity in Winter 
     Harbor, Maine to the Secretary of the Interior. The transfer 
     would be concurrent with the reversion of administrative 
     jurisdiction of approximately 71 acres from the Secretary of 
     Navy to the Secretary of Interior.
       The provision would also authorize the Secretary of the 
     Navy to convey for public benefit purposes to the State of 
     Maine, any political subdivision of the State of Maine, or 
     any tax-supported agency in the State of Maine a parcel of 
     real property and associated personal property consisting of 
     approximately 485 acres comprising the facilities of the 
     former Naval Security Group Activity at Winter Harbor. Prior 
     to the conveyance of the property, the Secretary of the Navy 
     would be authorized to lease all or part of the property. The 
     Secretary would credit any amount received for a lease of 
     real property to the appropriate account providing funds for 
     the operation and maintenance of the property or for 
     procurement of utilities.
       The House amendment contained a similar provision (sec. 
     2845).
       The House recedes with an amendment that would make 
     technical corrections and would require that the proceeds 
     from any lease be distributed under current law. The 
     amendment would also clarify that the recipient of the 
     property would be required to reimburse the Secretary for any 
     excess costs that result from a request by the recipient for 
     any environmental assessments or other activities that result 
     in additional costs to the Navy beyond those considered 
     reasonable and necessary by the Secretary to convey the 
     property in compliance with existing law.
     Land acquisition, Perquimans County, North Carolina (sec. 
         2846)
       The Senate bill contained a provision (sec. 2831) that 
     would authorize the Secretary of the Navy to acquire 
     approximately 240 acres in Perquimans County, North Carolina. 
     The purpose of the acquisition would be to provide a buffer 
     zone for the Harvey Point Defense Testing Activity, Hertford, 
     North Carolina.
       The House amendment contained no similar provision.
       The House recedes.
     Land conveyance, Naval Weapons Industrial Reserve Plant, 
         Toledo, Ohio (sec. 2847)
       The Senate bill contained a provision (sec. 2826) that 
     would authorize the Secretary of the Navy to convey, without 
     consideration, to the Toledo-Lucas County Port Authority, 
     Ohio a parcel of real property consisting of approximately 29 
     acres comprising the Naval Industrial Reserve Plant in 
     Toledo, Ohio. The Secretary would be authorized to convey 
     such facilities, equipment, fixtures and other personal 
     property located or based on the parcel that the Secretary 
     considers excess to the Navy.
       The provision would also permit the Secretary to lease the 
     property to the Port Authority before the conveyance takes 
     place and would require as conditions of the conveyance that 
     the Port Authority accept all property in its current 
     condition at the time of conveyance or lease, and that the 
     property be used for economic development. The Port Authority 
     would be authorized to sublease the facility with the prior 
     approval of the Secretary.
       The House amendment contained a similar provision (sec. 
     2842).
       The House recedes with an amendment that would clarify that 
     the recipient of the property would be required to reimburse 
     the Secretary for any excess costs that result from a request 
     by the recipient for any environmental assessments or other 
     activities that result in additional costs to the Navy beyond 
     those considered reasonable and necessary by the Secretary to 
     convey the property in compliance with existing law.
     Modification of land conveyance, former United States Marine 
         Corps Air Station, Eagle Mountain Lake, Texas (sec. 2848)
       The House amendment contained a provision (sec. 2844) that 
     would amend section 5 of Public Law 85-258, to permit the 
     Texas Military Facilities Commission to use funds acquired 
     through the leasing of Eagle Mountain Lake National Guard 
     Training Site for other Texas National Guard facilities.
       The Senate bill contained no similar provision.
       The Senate recedes.

                    Part III--Air Force Conveyances

     Conveyance of avigation easements, former Norton Air Force 
         Base, California (sec. 2851)
       The House amendment contained a provision (sec. 2867) that 
     would direct the Administrator of General Services to convey 
     to the Inland Valley Development Agency the avigation 
     easements APN 289-231-08 and APN 289-232-08.
       The Senate bill contained no similar provision.
       The Senate recedes with an amendment that would direct, as 
     a condition of conveyance, that if the Inland Valley 
     Development Agency sells one or both easements within 10 
     years of conveyance, the Agency shall pay the United States 
     an amount equal to the lesser of the sale price of the 
     easement or the fair market value of the easement.
     Reexamination of land conveyance, Lowry Air Force Base, 
         Colorado (sec. 2852)
       The House amendment contained a provision (sec. 2852) that 
     would direct the Secretary of the Air Force to reevaluate the 
     terms and conditions of the pending negotiated sale agreement 
     at Lowry Air Force Base, Colorado with the Lowry 
     Redevelopment Authority for certain real property in light of 
     changed circumstances regarding the property. The 
     reexamination shall determine whether changed circumstances 
     warrant a reduction in the amount of consideration otherwise 
     required under the agreement or other modifications to the 
     agreement.
       The Senate bill contained no similar provision.
       The Senate recedes.
     Water rights conveyance, Andersen Air Force Base, Guam (sec. 
         2853)
       The House amendment contained a provision (sec. 2851) that 
     would authorize the Secretary of the Air Force to convey 
     water rights related to the Air Force properties Andy South, 
     also known as the Andersen Administrative Annex; Marianas 
     Bonis Base Command; and Andersen Water Supply Annex, also 
     known as the Tumon Water Well or the Tumon Maui Well, located 
     on Guam. The Secretary may exercise authority under certain 
     specified conditions. This section would authorize the 
     Secretary, if he determines that it is in the best interest 
     of the United States to transfer title to the water rights 
     and utility system before a replacement water system is in 
     place, to require

[[Page 25576]]

     that the United States have the primary right to all water 
     produced from Andy South and Andersen Water Supply Annex. The 
     Secretary may authorize the conveyee of the water system to 
     sell to public or private entities such water from Andersen 
     Air Force Base as the Secretary determines to be excess to 
     the needs of the United States.
       The Senate bill contained no similar provision.
       The Senate recedes.
       The conferees expect the Secretary of the Air Force to 
     follow the reporting requirements of section 2688 of title 
     10, United States Code with respect to this conveyance.
     Conveyance of segment of Loring Petroleum Pipeline, Maine, 
         and related easements (sec. 2854)
       The Senate bill contained a provision (sec. 2824) that 
     would authorize the Secretary of the Air Force to convey to 
     the Loring Development Authority, Maine, a segment of 
     approximately 27 miles of the Loring Petroleum Pipeline, 
     along with related easements. The provision would require the 
     Loring Development Authority to reimburse the Secretary for 
     any environmental assessment, study, analysis or other 
     expenses incurred for the conveyance.
       The House amendment contained no similar provision.
       The House recedes with an amendment that would make 
     technical corrections and would clarify that the recipient of 
     the property would be required to reimburse the Secretary for 
     any excess costs that result from a request by the recipient 
     for any environmental assessments or other activities that 
     result in additional costs to the Air Force beyond those 
     considered reasonable and necessary by the Secretary to 
     convey the property in compliance with existing law.
     Land conveyance, petroleum terminal serving former Loring Air 
         Force Base and Bangor Air National Guard Base, Maine 
         (sec. 2855)
       The Senate bill contained a provision (sec. 2825) that 
     would authorize the Secretary of the Air Force to convey to 
     the Maine Port Authority of the State of Maine the petroleum 
     terminal at Mack Point in Searsport, Maine for the purpose of 
     economic development. The conveyance may include a parcel of 
     real property consisting of approximately 20 acres and 
     comprising a portion of the petroleum terminal and any 
     additional fuel tanks, other improvements, and equipment 
     located at the 43-acre parcel located adjacent to the 
     petroleum terminal and currently leased by the Secretary. The 
     Secretary could not convey the 43 acres until the lease 
     expires and until the Secretary completes any environmental 
     remediation required by law.
       As consideration for the conveyance, the Authority would 
     lease to the Air Force, at no cost for a period of no more 
     than 25 years, approximately one acre that constitutes the 
     Aerospace Fuels Laboratory. As part of the lease, the 
     Authority would maintain around the real property a zone free 
     of improvements or encumbrances. The provision would also 
     require the Authority to reimburse the Secretary for the 
     costs incurred by the Secretary for any environmental 
     assessment, study, or analysis, or for any other expense 
     incurred by the Secretary for the conveyance.
       The House amendment contained no similar provision.
       The House recedes with an amendment that would make 
     technical corrections and would clarify that the recipient of 
     the property would be required to reimburse the Secretary for 
     any excess costs that result from a request by the recipient 
     for any environmental assessments or other activities that 
     result in additional costs to the Air Force beyond those 
     considered reasonable and necessary by the Secretary to 
     convey the property in compliance with existing law.
     Land conveyances, certain former Minuteman III ICBM 
         facilities in North Dakota (sec. 2856)
       The Senate bill contained a provision (sec. 2830) that 
     would authorize the Secretary of the Air Force to convey to 
     the State Historical Society of North Dakota the launch 
     facility designated ``November 33'' and the missile alert 
     facility and launch control center designated ``Oscar O'' 
     located at Grand Forks Air Force Base, North Dakota. The 
     purpose of the conveyance would be to establish an historical 
     site. The provision would direct the Secretary of the Air 
     Force to consult with the Secretary of Defense and the 
     Secretary of State to ensure that the conveyance of the site 
     is accomplished in accordance with applicable treaties.
       The House amendment contained no similar provision.
       The House recedes with a technical amendment.
     Land conveyances, Charleston Air Force Base, South Carolina 
         (sec. 2857)
       The Senate bill contained a provision (sec. 2828) that 
     would authorize the Secretary of the Air Force to convey 
     approximately 24 acres at Charleston Air Force Base known as 
     the Air Force Military Family Housing Annex to the City of 
     North Charleston and the State of South Carolina. The 
     conveyances would be for the purpose of road construction and 
     for municipal use.
       The House amendment contained no similar provision.
       The House recedes.
     Transfer of jurisdiction, Mukilteo Tank Farm, Everett, 
         Washington (sec. 2858)
       The Senate bill contained a provision (sec. 2827) that 
     would modify section 2866 of the Military Construction 
     Authorization Act for Fiscal Year 2001 to direct the 
     Secretary of the Air Force to transfer approximately 1.1 
     acres at the Mukilteo Tank Farm to the administrative 
     jurisdiction of the Secretary of Commerce for a research 
     center for the National Marine Fisheries Service. The 
     provision would also make certain technical corrections and 
     provide certain authorities to the Secretary of Commerce to 
     exchange the property and would require the Secretary of 
     Commerce to convey the property to the Port of Everett after 
     12 years if it is no longer required.
       The House amendment contained no similar provision.
       The House recedes with a technical amendment.

                       Subtitle E--Other Matters

     Management of the Presidio of San Francisco (sec. 2861)
       The House amendment contained a provision (sec. 2863) that 
     would amend title I of the Omnibus Parks and Public Lands 
     Management Act of 1996 (Public Law 104-333) to authorize the 
     Trust to make available to lease certain housing units to 
     persons designated by the Secretary of the Army, within the 
     Presidio of San Francisco, California. The monthly amount 
     charged by the Trust for the lease of a housing unit, 
     including utilities and municipal services, shall not exceed 
     the monthly rate of the basic allowance for housing. This 
     section would also increase the borrowing authority in 
     section 104 of title I of division I of the Omnibus Parks and 
     Public Lands Management Act of 1996 (Public Law 104-333) from 
     $50.0 million to $150.0 million.
       The Senate bill contained no similar provision.
       The Senate recedes with a technical amendment.
     Transfer of jurisdiction for development of Air Force morale, 
         welfare, and recreation facility, Park City, Utah (sec. 
         2862)
       The House amendment contained a provision (sec. 2861) that 
     would direct the Secretary of the Interior to transfer, 
     without reimbursement, administrative jurisdiction of a 
     parcel of real property, including improvements, consisting 
     of approximately 35 acres located in Park City, Utah to the 
     Secretary of the Air Force. The transfer would be completed 
     not later than one year after the date of the enactment of 
     this Act.
       The House amendment would authorize the Secretary of the 
     Air Force to use the real property as the location for an 
     armed forces recreation facility to be developed using non-
     appropriated funds. In lieu of developing the recreation 
     facility on this site, the Secretary of the Air Force could 
     convey or lease the property to other entities in exchange 
     for other property that would be used as the site for the 
     recreation facility, and could lease the property selected as 
     the site for the recreation facility to another entity or 
     enter into a contract with another entity for the 
     construction and operation of the recreation facility as a 
     mixed military and commercial facility.
       The Senate bill contained no similar provision.
       The Senate recedes with an amendment that would authorize, 
     rather than require, the Secretary of the Interior to 
     transfer the property, that would exclude lands south of 
     state Highway 248 that may be contaminated from the transfer, 
     and would also provide that the property be transferred to 
     allow for the development of an Air Force morale, welfare and 
     recreation facility rather than an armed forces recreation 
     facility.
       The conferees direct the Secretary of the Air Force to 
     ensure that any morale, welfare and recreation facility 
     constructed under the authority of this section be operated 
     primarily for the benefit of military personnel and their 
     families.
     Alternative site for United States Air Force Memorial, 
         preservation of open space on Arlington Ridge Tract, and 
         related land transfer at Arlington National Cemetery, 
         Virginia (sec. 2863)
       The House amendment contained a provision (sec. 2862) that 
     would require the Secretary of Defense to offer to the Air 
     Force Memorial Foundation an option to use, without 
     reimbursement, up to three acres of the Arlington Naval Annex 
     as the site for the construction of the Air Force Memorial. 
     Within 90 days after the date on which the Secretary of 
     Defense makes the offer, the Foundation would provide written 
     notice to the Secretary of the decision of the Foundation to 
     accept or decline the offer. If the Foundation accepted the 
     offer, the Foundation would relinquish all claims to the 
     previously approved site for the memorial on Arlington Ridge. 
     If the Foundation declined the offer, the Foundation could 
     resume its efforts to construct the memorial on the Arlington 
     Ridge tract. Not later than two years after the date on which 
     the Foundation accepted the offer, and had made sufficient 
     funds available to construct the memorial, the Secretary, in 
     coordination with the Foundation, would remove all structures 
     and

[[Page 25577]]

     prepare the Arlington Naval Annex site for construction of 
     the memorial. Upon removal of structures and preparation of 
     the property for use, the Secretary of Defense would permit 
     the Foundation to commence construction.
       The House amendment would direct the Secretary of the 
     Interior to transfer, without reimbursement, to the Secretary 
     of the Army administrative jurisdiction over: most of an 
     approximately 24-acre parcel of land within the boundaries of 
     Arlington National Cemetery known as Section 29 for the 
     purpose of providing additional land for burial sites; and 
     the Arlington Ridge tract in order to make up to 15 acres of 
     additional land available for burial sites. The amendment 
     would also amend section 2902 of the Military Construction 
     Authorization Act for Fiscal Year 2000 (division B of Public 
     Law 106-65) to prohibit consideration of the Arlington Naval 
     Annex property as a possible site for a national military 
     museum.
       The Senate bill contained no similar provision.
       The Senate recedes with an amendment that would direct the 
     Secretary of Defense to make available to the Air Force 
     Memorial Foundation up to three acres of the Naval Annex 
     property for use as the location for the Air Force Memorial. 
     The three acres would be in lieu of the Arlington Ridge tract 
     and shall be the site of the memorial unless the Secretary of 
     Defense determines that constructing the Air Force Memorial 
     on the Naval Annex property is impracticable due to 
     geological conditions at the site. In the event construction 
     at the Naval Annex site is impracticable, the location of the 
     memorial would revert to the Arlington Ridge tract location. 
     If the Foundation fails to commence construction of the 
     memorial within five years of the date of enactment of this 
     Act, the Secretary of Defense may revoke the authority to use 
     the Naval Annex property for the Air Force Memorial.
       The amendment would require, upon notification by the 
     Foundation that it had accumulated sufficient funds to begin 
     construction, the Secretary of Defense to demolish and remove 
     Wing 8 of the Naval Annex and associated facilities and carry 
     out environmental remediation and such site preparation as 
     the Secretary agreed to undertake, within two years. The 
     amendment would also designate the Department of the Army as 
     the executive agent for finding replacement facilities for 
     the Ballistic Missile Defense Organization, which currently 
     occupies the facilities on this site.
       The amendment would direct the Secretary of the Interior to 
     transfer to the administrative jurisdiction of the Secretary 
     of the Army 12 acres, known as the interment zone, as 
     depicted in Map VI-4 on page VI-23 of the Concept Utilization 
     Plan for Arlington National Cemetery dated October 2000. The 
     transferred property would be used by Arlington National 
     Cemetery for additional burial sites. The Secretary of the 
     Interior would be required to preserve in perpetuity the 
     remaining acreage of Section 29, including the portion known 
     as the preservation zone, as an appropriate backdrop and 
     aesthetic setting for Arlington House, The Robert E. Lee 
     Memorial.
       The amendment would also prohibit any new structures on the 
     Arlington Ridge tract and would specify that the only other 
     land use to be contemplated in the future for this site would 
     be as additional burial space for Arlington National 
     Cemetery.
       The amendment would also amend section 2881 of the Military 
     Construction Authorization Act for Fiscal Year 2000 (division 
     B of Public Law 106-65) to direct the Secretary of Defense to 
     reserve no more than four acres of the Naval Annex property, 
     south of Columbia Pike, as a site for memorials or museums 
     that the Secretary of Defense considers compatible with 
     Arlington Cemetery and the Air Force Memorial.
       The conferees direct the Secretary of Defense to provide a 
     report to Congress, prior to the date on which he transfers 
     the three-acre parcel on the Naval Annex site to the 
     Secretary of the Army, providing his determination as to 
     whether construction of the Air Force Memorial on this site, 
     together with the public access required for the Memorial, is 
     consistent with the security requirements of the Pentagon and 
     the Naval Annex. If the Secretary determines this location is 
     not fully consistent with such security requirements, the 
     Secretary shall include in his recommendations the steps that 
     should be taken to address any security concerns.
     Establishment of memorial to victims of terrorist attack on 
         Pentagon Reservation and authority to accept monetary 
         contributions for memorial and repair of Pentagon (sec. 
         2864)
       The Senate bill contained a provision (sec. 2845) that 
     would authorize the Secretary of Defense to accept monetary 
     contributions made for the purpose of establishing a memorial 
     or assisting in repair and reconstruction of the Pentagon 
     Reservation following the terrorist attack that occurred on 
     September 11, 2001. The funds would be deposited in the 
     Pentagon Reservation Maintenance Revolving Fund.
       The House amendment contained a provision (sec. 1055) that 
     would authorize the Secretary of Defense to accept monetary 
     contributions to finance the repair and reconstruction of the 
     Pentagon Reservation following the terrorist attack that 
     occurred on September 11, 2001. The funds would be deposited 
     in the Pentagon Reservation Maintenance Revolving Fund.
       The House recedes with an amendment that would authorize 
     the Secretary of Defense to establish the memorial and would 
     direct that contributions received could be used only for 
     establishing a memorial or to repair the damage to the 
     Pentagon Reservation caused by the terrorist attack.
     Repeal of limitation on cost of renovation of Pentagon 
         Reservation (sec. 2865)
       The Senate bill contained a provision (sec. 2842) that 
     would repeal section 2864 of the Military Construction 
     Authorization Act for Fiscal Year 1997 (division B of Public 
     Law 104-210;110 Stat. 2806) limiting the cost of renovating 
     the Pentagon Reservation to $1.1 billion.
       The House amendment contained no similar provision.
       The House recedes.
     Development of United States Army Heritage and Education 
         Center at Carlisle Barracks, Pennsylvania (sec. 2866)
       The Senate bill contained a provision (sec. 2841) that 
     would authorize the Secretary of the Army to enter into a 
     partnership with the Military Heritage Foundation for the 
     design, construction and operation of a U.S. Army Heritage 
     and Education Center at Carlisle Barracks, Pennsylvania. The 
     facility would provide research facilities, classrooms, 
     offices and associated activities for the study and storage 
     of artifacts. The Secretary would be authorized to accept 
     funds from the Heritage Foundation for the design and 
     construction of the U.S. Army Heritage and Education Center 
     or to permit the Military Heritage Foundation to contract for 
     the design and construction of the facility. The facility 
     would become the property of the Department of the Army upon 
     the satisfaction of any and all financial obligations 
     incurred by the Military Heritage Foundation. The provision 
     would also authorize the Commandant of the U.S. Army War 
     College, under regulations prescribed by the Secretary, to 
     accept gifts for the benefit of the United States Army 
     Heritage and Education Center.
       The House amendment contained no similar provision.
       The House recedes with an amendment that would clarify that 
     the design of the facility must be approved by the Secretary 
     whether the facility is constructed by the Army or by the 
     Foundation.
     Effect of limitation on construction of roads or highways, 
         Marine Corps Base, Camp Pendleton, California (sec. 2867)
       The House amendment contained a provision (sec. 2864) that 
     would amend section 2851 of the Military Construction 
     Authorization Act for Fiscal Year 1999 (division B of Public 
     Law 105-261), as amended, by authorizing limitations of State 
     law enacted after January 1, 2001 that directly or indirectly 
     prohibit or restrict the construction or approval of a road 
     or highway within the easements granted under this section at 
     Marine Corps Base, Camp Pendleton, California.
       The Senate bill contained no similar provision.
       The Senate recedes with a technical amendment.
     Establishment of World War II Memorial at additional location 
         on Guam (sec. 2868)
       The House amendment contained a provision (sec. 2865) that 
     would amend section 2886 of the Military Construction 
     Authorization Act for Fiscal Year 2001 (division B of Public 
     Law 106-398) by authorizing the establishment of an 
     additional World War II Memorial on federal lands near Yigo, 
     Guam.
       The Senate bill contained no similar provision.
       The Senate recedes.
       The conferees expect that in establishing the additional 
     memorial, the Secretary of Defense shall apply the same 
     minimal maintenance criteria as required in the previous 
     authorization.
     Demonstration project for purchase of fire, security, police, 
         public works, and utility services from local government 
         agencies (sec. 2869)
       The House amendment contained a provision (sec. 2866) that 
     would amend section 816 of the National Defense Authorization 
     Act for Fiscal Year 1995, as amended by section 2873 of the 
     Strom Thurmond National Defense Authorization Act for Fiscal 
     Year 1999, to extend the authority for the purchase of 
     services from local government agencies at Monterey, 
     California authorized under this project, other than fire-
     fighting and police services, through fiscal year 2003.
       The Senate bill contained no similar provision.
       The Senate recedes with an amendment that would extend the 
     authority for the purchase of fire-fighting and police 
     services through January 31, 2002, and would extend the 
     authority for the purchase of other services, including 
     utilities and public works, through fiscal year 2003.

[[Page 25578]]


     Report on future land needs of United States Military 
         Academy, New York, and adjacent community (sec. 2870)
       The House amendment contained a provision (sec. 2868) that 
     would direct the Secretary of the Army to submit to the 
     Congress not later than February 1, 2002, a report evaluating 
     various options by which the Secretary may promote economic 
     development in the Village of Highland Falls, New York.
       The Senate bill contained no similar provision.
       The Senate recedes with an amendment that would direct the 
     Secretary of the Army to assess the land requirements of the 
     United States Military Academy and determine if any excess 
     real property is available for either transfer or lease to 
     the Village of Highland Falls. The Secretary would be 
     required to report his findings to the Congress by February 
     1, 2002.
     Naming of Patricia C. Lamar Army National Guard Readiness 
         Center, Oxford, Mississippi (sec. 2871)
       The Senate bill contained a provision (sec. 2843) that 
     would name the Oxford Army National Guard Readiness Center as 
     the Patricia C. Lamar Army National Guard Readiness Center.
       The House amendment contained no similar provision.
       The House recedes with a technical amendment.

                   Legislative Provisions Not Adopted

     Authority available for lease of property and facilities 
         under alternative authority for acquisition and 
         improvement of military housing
       The Senate bill contained a provision (sec. 2804) that 
     would amend the authorities for lease or conveyance of 
     property in connection with military family housing 
     privatization to allow the military departments to use the 
     authorities contained in section 2667 of title 10, United 
     States Code. This provision would provide additional 
     flexibility for the military departments to make use of the 
     value of assets at one installation for use at privatization 
     projects at other installations.
       The House amendment contained no similar provision.
       The Senate recedes.
       The conferees urge the Secretary of Defense to explore 
     innovative approaches to maximize the Department's fiscal and 
     real property resources in executing the housing 
     privatization projects.
     Land conveyance, Defense Fuel Support Point, Lynn Haven, 
         Florida
       The House amendment contained a provision (sec. 2853) that 
     would authorize the Secretary of the Air Force to convey to 
     Florida State University approximately 200 acres located at 
     the Defense Fuel Support Point, Lynn Haven, Florida. The 
     purpose of the conveyance would be to establish a National 
     Coastal Research Center.
       The Senate bill contained no similar provision.
       The House recedes.
     Payment for certain services provided by redevelopment 
         authorities for property leased back by the United States
       The Senate bill contained a provision (sec. 2911) that 
     would amend the Defense Authorization Amendments and Base 
     Closure and Realignment Act (Public Law 100-526; section 2687 
     of title 10, United States Code) that governs the 1988 round 
     of base closures to authorize the secretary concerned to 
     transfer real property at a closed or realigned military 
     installation to the redevelopment authority for the 
     installation, if the redevelopment authority agrees, directly 
     upon transfer, to lease one or more portions of the property 
     transferred to the secretary concerned or to the head of 
     another department or agency of the Federal Government. The 
     provision would also allow the United States to pay the 
     redevelopment authority for facility services and common area 
     maintenance.
       The House amendment contained a similar provision (sec. 
     2821) that would amend both the Defense Authorization 
     Amendments and Base Closure and Realignment Act and the 
     Defense Base Closure and Realignment Act of 1990 (part A of 
     title XXIX of Public Law 101-510; 10 U.S.C. 2687 note) that 
     governs the 1991, 1993 and 1995 rounds of base closures to 
     provide these authorities.
       The Senate recedes.
       The conferees agreed to include the amendments to both the 
     1998 and 1990 base closure laws in a single provision 
     elsewhere in this Act.
     Treatment of amounts received
       The Senate bill contained a provision (sec. 2833) that 
     would require any proceeds received from the sale of a former 
     Army Reserve Center in Kewaunee, Wisconsin that would be 
     authorized to be conveyed by section 2832 of the Senate bill 
     to be deposited into the Land and Water Conservation Fund in 
     the event the property reverted to the United States.
       The House amendment contained no similar provision.
       The Senate recedes. The conferees agreed to include this 
     condition in the provision authorizing the conveyance of the 
     property in Kewaunee, Wisconsin that is included in title 
     XXVIII of this Act.

            Title XXIX--Fort Irwin Military Land Withdrawal

       The House amendment contained a series of provisions (secs. 
     2901-2913) that would provide for the withdrawal of 110,000 
     acres to support the expansion of the National Training 
     Center (NTC) at Fort Irwin, California.
       The Senate bill contained no similar provision.
       The Senate recedes with an amendment to the provision 
     regarding environmental compliance agreements (sec. 2906) as 
     described below.
     Short title (sec. 2901)
       This provision would designate title XXIX of this Act as 
     the ``Fort Irwin Military Land Withdrawal Act of 2001.''
     Withdrawal and reservation of lands for National Training 
         Center (sec. 2902)
       This provision would withdraw approximately 110,000 acres 
     of public lands in San Bernardino County, California from 
     general land laws and would transfer jurisdiction of these 
     lands to the Secretary of the Army for military testing, 
     training, and other defense-related purposes at the NTC.
     Map and legal description (sec. 2903)
       This provision would require the Secretary of the Interior 
     to publish in the Federal Register the legal description of 
     the lands withdrawn and reserved by this title and to file a 
     map and legal description of such lands with the Committee on 
     Energy and Natural Resources of the Senate and the Committee 
     on Resources of the House of Representatives. These documents 
     would also be available for public inspection. The Secretary 
     of the Army would be required to reimburse the Secretary of 
     the Interior for costs related to the implementation of this 
     provision.
     Management of withdrawn and reserved lands (sec. 2904)
       This provision would require the Secretary of the Army, 
     during the period of the withdrawal and reservation, to 
     manage such lands for the training and testing purposes 
     specified in section 2902. However, military use of the lands 
     that result in ground disturbances would be prohibited until 
     the Secretary of the Army and the Secretary of the Interior 
     certify to Congress that there has been full compliance with 
     this title, the Endangered Species Act of 1973 (16 U.S.C 1531 
     et seq.), the National Environmental Policy Act of 1969 (42 
     U.S.C. 4321 et seq.), and other applicable laws. The 
     Secretary of the Army would be authorized to restrict public 
     access on the withdrawn lands. The provision would also 
     require the Secretary of the Army to prepare and implement an 
     integrated natural resource management plan for the withdrawn 
     lands, in accordance with the Sikes Act (16 U.S.C. 670 et 
     seq.), and to consult with the National Aeronautics and Space 
     Administration (NASA) regarding potential disruptions to NASA 
     operations.
     Water rights (sec. 2905)
       This provision would clarify that this title does not 
     create any water rights for the United States on the 
     withdrawn lands. The provision would not affect any water 
     rights acquired or reserved by the United States before the 
     date of enactment of this Act.
     Environmental compliance and environmental response 
         requirements (sec. 2906)
       The conferees agreed to a provision that would require, 
     rather than permit, the Secretary of the Army and the 
     Secretary of the Interior to enter into such agreements as 
     are necessary, appropriate, and in the public interest to 
     carry out the purposes of this title. Such agreements should 
     provide that the Secretary of the Army consult with the 
     Secretary of the Interior with respect to proposed and final 
     response actions. Such agreements should also provide that 
     the Secretary of the Army reimburse the Secretary of the 
     Interior for any costs incurred by the Secretary of the 
     Interior as a result of the Army's activities on the 
     withdrawn and reserved lands.
     West Mojave Coordinated Management Plan (sec. 2907)
       This provision would urge the Secretary of the Interior to 
     complete the West Mojave Coordinated Management Plan not 
     later than two years after the date of enactment of this Act. 
     The Secretary of the Interior would ensure that this plan 
     considers the impacts of this title. The provision would also 
     require the Secretary of the Interior to consult with the 
     Secretary of the Army and the Administrator of the National 
     Aeronautics and Space Administration on the development of 
     the plan.
     Release of wilderness study areas (sec. 2908)
       This provision would determine that the public lands 
     withdrawn under this title have been adequately studied for 
     wilderness designation.
     Training activity separation from utility corridors (sec. 
         2909)
       This provision would require that all military ground 
     activity training conducted on withdrawn lands remain at 
     least 500 meters from any existing utility system.
     Duration of withdrawal and reservation (sec. 2910)
       Under this provision, the withdrawal and reservation made 
     by this title would terminate 25 years after the date of the 
     enactment

[[Page 25579]]

     of this Act, unless otherwise extended, postponed, or 
     affected by a delay in the Secretary of the Interior in 
     accepting jurisdiction.
     Extension of initial withdrawal and reservation (sec. 2911)
       This provision would require the Secretary of the Army, no 
     later than three years before the termination of the 25-year 
     withdrawal, to notify Congress and the Secretary of the 
     Interior whether the Army has a continuing military need for 
     the withdrawn lands. If the Secretary of the Army determines 
     there is a continuing military need, the Secretary of the 
     Army shall consult with the Secretary of the Interior 
     regarding any adjustments in the allocation of land 
     management responsibility and file an application for an 
     extension of the withdrawal and reservation with the 
     Secretary of the Interior. The provision would also authorize 
     the Secretary of the Army and the Secretary of the Interior 
     to submit a legislative proposal to Congress on the extension 
     of the land withdrawal. The legislative proposal would be 
     accompanied by an analysis of the environmental impacts, 
     consistent with the National Environmental Policy Act of 1969 
     (42 U.S.C. 4321 et seq.).
     Termination and relinquishment (sec. 2912)
       Under this provision, if the Secretary of the Army 
     determines that there is no continuing military need for any 
     withdrawn lands during the first 22 years of the withdrawal 
     period, the Secretary of the Army shall notify the Secretary 
     of the Interior of the intent to relinquish jurisdiction over 
     such lands. If the Secretary of the Interior accepts 
     jurisdiction, the Secretary shall publish in the Federal 
     Register an appropriate order terminating the withdrawal.
     Delegation of Authority (sec. 2913)
       This provision would authorize the Secretary of the Army 
     and the Secretary of the Interior to delegate the functions 
     necessary to implement this title.

   Title XXX--Realignment and Closure of Military Installations and 
   Preparation of Infrastructure Plan for the Nuclear Weapons Complex

       Title XXIX of the Senate bill contained a series of 
     provisions (secs. 2901-2904) that would extend the 
     authorities of the Defense Base Closure and Realignment Act 
     of 1990 (part A of title XXIX of Public Law 101-510, as 
     amended) and authorize a new base realignment and closure 
     (BRAC) round in 2003.
       Section 2901 of the Senate bill would extend the 
     authorities of the 1990 Act, which expired after the 1995 
     BRAC round, to authorize a new BRAC round in 2003 for the 
     Department of Defense (DOD).
       Section 2902 of the Senate bill would establish a separate 
     account to track the costs and savings of the 2003 round.
       Section 2903 of the Senate bill would make substantive 
     changes in the 1990 Act that would apply to the 2003 round. 
     This provision would: increase the number of commissioners 
     from eight to nine; require that the selection criteria 
     emphasize the military value of installations; require that 
     any selection criteria relating to the cost or savings of 
     proposed closures take into account the impact of the closure 
     on other federal agency operations on that installation; 
     require the Secretary of Defense to review every type of 
     installation and to take into account the anticipated need 
     for and availability of overseas installations in the future; 
     and require the Secretary to consider any notice from a local 
     government that the government would approve of the closure 
     of a neighboring installation.
       This section would also: give the commission an additional 
     24 hours to provide information received from certain 
     individuals to the Congress; require that the Secretary of 
     Defense be given an opportunity to testify before the 
     commission on changes made by the commission to the 
     Secretary's recommendations; prohibit privatization in place 
     of closed or realigned facilities unless it was specifically 
     recommended by the base closure commission and determined to 
     be the most cost-effective option; allow payment to a local 
     redevelopment authority for services provided on property 
     leased back by the United States; and allow the DOD to pay 
     the difference to the recipient if the estimated cost to the 
     recipient to clean up a BRAC site exceeds the value of the 
     property.
       Section 2904 of the Senate bill would make technical and 
     clarifying changes to the 1990 Act.
       The House amendment contained no similar provisions.
       The House recedes with an amendment that would authorize an 
     additional BRAC round in 2005 rather than 2003 and make 
     additional changes to the process authorized under the 1990 
     Act for the 2005 round.
       Unless specifically changed by the provisions of this Act, 
     the 2005 BRAC round would operate under the authorities and 
     requirements of the Defense Base Closure and Realignment Act 
     of 1990 (part A of title XXIX of Public Law 101-510, as 
     amended).
     Procedures for the Department of Defense (secs. 3001-3007)
       The conferees agree to authorize a round of base 
     realignment and closure for the Department of Defense in 
     2005. The conference agreement modifies the procedures used 
     in the 1991, 1993 and 1995 rounds as described below.
       Recommendations by the Secretary
       With respect to the recommendations of the Secretary of 
     Defense, the conferees have modified the process used in 
     prior rounds as follows.
       The force structure plan submitted by the Secretary of 
     Defense with the fiscal year 2005 budget would include 
     detailed information on probable end-strength and force 
     levels for the military services, including major ground 
     combat units, combatant vessels and air wings. The Secretary 
     would be required to review every type of installation and to 
     take into account the anticipated need for and availability 
     of overseas installations in the future.
       The Secretary would be permitted to submit a revised force 
     structure plan with the fiscal year 2006 budget.
       The Secretary would be required to include with the force 
     structure plan: an inventory of military installations; a 
     description of the categories of excess infrastructure; and 
     an economic analysis of the options for eliminating or 
     reducing that excess infrastructure, including potential 
     efficiencies from joint use and tenancy of military 
     installations by more than one service.
       The Secretary would be required to certify, when the force 
     structure plan and infrastructure inventory are submitted, 
     whether the need exists for closure or realignment of 
     additional military installations and, if such need exists, 
     that a round of such closures and realignments in 2005 would 
     produce annual net savings within six years. If the Secretary 
     failed to provide this certification, the process for closure 
     or realignment of installations under the provisions of this 
     Act for 2005 would be terminated.
       The conferees have specified factors that must be evaluated 
     and incorporated in the Secretary's final list of criteria, 
     including the military value of installations for both the 
     preservation of training areas for traditional warfighting 
     missions and the preservation of installations for homeland 
     defense. However, the Secretary is not limited to the 
     criteria contained in this Act. Any selection criteria 
     relating to the cost or savings of proposed closures would 
     have to take into account the impact of the closure on other 
     federal agency operations on that installation.
       The General Accounting Office would be required to submit 
     to Congress an evaluation of the force structure plan, the 
     installation inventory and the selection criteria.
       Consideration of the Secretary's proposal by the commission
       With respect to the proceedings of the commission, the 
     conferees agree to the following changes.
       The number of commissioners for the 2005 round would be 
     increased from eight to nine.
       The commission would have 48 hours rather than 24 hours to 
     provide information received from certain individuals of the 
     Department of Defense to the Congress.
       Prior to any decision to add an installation not proposed 
     to be closed or realigned by the Secretary to the list of 
     installations to be considered for closure or realignment by 
     the commission, the commission would be required to give the 
     Secretary 15 days to submit an explanation of why the 
     Secretary did not propose that installation for closure or 
     realignment. A decision to add that installation to the list 
     of installations being considered would then have to be 
     supported by at least seven commissioners.
       The Secretary of Defense would be given an opportunity to 
     testify before the commission on changes proposed by the 
     commission to the Secretary's recommendations.
       Privatization in place of closed or realigned facilities 
     would be prohibited unless it was specifically recommended by 
     the commission and determined to be the most cost-effective 
     option.
       Disposal of property
       With respect to the disposal of property from closed or 
     realigned facilities, the conferees have modified the process 
     as follows.
       The conference agreement would require the Secretary of 
     Defense to obtain fair market value for economic development 
     conveyances in most cases, unless the Secretary determines 
     the circumstances warrant a below-cost or no-cost conveyance.
       The conferees agree to allow the Secretary to recommend 
     that an installation be placed in an inactive or caretaker 
     status if the Secretary determines that the installation may 
     be needed in the future for national security purposes, but 
     is not needed at the present time, or that retention of the 
     installation by the Department of Defense is otherwise in the 
     interests of the United States.
       The DOD would be authorized to pay to the recipient of the 
     former DOD property the amount by which the estimated cost to 
     the recipient to clean up a BRAC site exceeds the value of 
     the property.
       A Department of Defense Closure Account 2005 would be 
     created to fund the costs of implementing any closures or 
     realignments from the 2005 round.
     Preparation of infrastructure plan for the nuclear weapons 
         complex (sec. 3008)
       The conferees agree to a provision that would require the 
     Secretary of Energy to develop an infrastructure plan for the 
     nuclear weapons complex adequate to support the nuclear 
     weapons stockpile, the Naval Reactor Program and the non-
     proliferation and

[[Page 25580]]

     national security activities. In preparing the plan, the 
     Secretary would take into consideration the Department of 
     Defense Nuclear Posture Review, any efficiencies and security 
     benefits of consolidation, and the necessity to have a 
     residual nuclear weapons production capacity. The provision 
     would require the Secretary to submit the plan to Congress, 
     along with any implementing recommendations the Secretary 
     considers appropriate, including whether to establish a 
     formal process by which a round of closures and realignments 
     should take place. Finally, the Secretary would also be 
     required to submit a legislative proposal if the Secretary 
     determines the need for additional legislative authority to 
     implement the Secretary's recommendations.

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

      Title XXXI--Department of Energy National Security Programs

     Overview
       Title XXXI authorizes appropriations for the atomic energy 
     defense activities of the Department of Energy (DOE) for 
     fiscal year 2002, including: the purchase, construction, and 
     acquisition of plant and capital equipment; research and 
     development; nuclear weapons; naval nuclear propulsion; 
     environmental restoration and waste management; operating 
     expenses; and other expenses necessary to carry out the 
     purposes of the Department of Energy Organization Act (Public 
     Law 95-91). The title would authorize appropriations in six 
     categories: national nuclear security administration; defense 
     environmental restoration and waste management; defense 
     facilities closure projects; defense environmental management 
     privatization; other defense activities; and defense nuclear 
     waste disposal.
       The budget request for atomic energy defense activities at 
     the Department of Energy totaled $13.4 billion, a 1.2 percent 
     decrease from the adjusted fiscal year 2001 level. Of the 
     total amount requested: $5.3 billion would be for weapons 
     activities; $773.7 million would be for defense nuclear 
     nonproliferation activities; $688.0 million would be for 
     naval reactors; $4.5 billion would be for defense 
     environmental restoration and waste management activities; 
     $1.1 billion would be for defense facilities closure 
     projects; $141.5 million would be for defense environmental 
     management privatization; $527.6 million would be for other 
     defense activities; and $310.0 million would be for defense 
     nuclear waste disposal.
       The conferees agree to authorize $14.1 billion for atomic 
     energy defense activities at the Department of Energy, an 
     increase of $721.5 million to the budget request. The 
     conferees agree to authorize $7.1 billion for the National 
     Nuclear Security Administration (NNSA), an increase of $344.3 
     million. Of the amount authorized for the NNSA: $5.3 billion 
     would be for weapons activities, an increase of $43.5 
     million; $688.0 million would be for naval reactors, the same 
     as the budget request; and $776.9 million would be for 
     defense nuclear nonproliferation, a $3.2 million increase to 
     the budget request. The conferees agree to authorize $6.2 
     billion for defense environmental management activities, an 
     increase of $435.2 million. The amount authorized for defense 
     environmental management would be: $4.9 billion for defense 
     environmental restoration and waste management, an increase 
     of $393.2 million; $1.1 billion for defense facilities 
     closure projects, an increase of $30.0 million; $959.7 
     million for site and project completion, an increase of $47.7 
     million; $3.3 billion for post 2006 completion, an increase 
     of $345.0 million; $216.0 million for science and technology 
     development, an increase of $20.0 million; $1.3 million for 
     excess facilities, the amount of the request; $355.8 million 
     for program direction, the amount of the request; and $153.5 
     million for defense environmental management privatization, 
     an increase of $12.0 million. The conferees agree to 
     authorize $499.7 million for other defense activities, a 
     decrease of $28.0 million. The amount authorized for other 
     defense activities would include: $250.4 million for security 
     and emergency operations, a decrease of $18.8 million; $40.8 
     million for the office of intelligence, the amount of the 
     request; $46.0 million for counterintelligence, a decrease of 
     $0.4 million; $14.9 million for independent oversight, the 
     amount of the request; $113.3 million for environmental 
     safety and health, a decrease of $1.3 million; $20.0 million 
     for worker and community transition, a decrease of $4.4 
     million; $22.0 million for national security program 
     administration support, a decrease of $3.0 million; and $2.9 
     million for the office of hearings and appeals, the amount of 
     the request. The conferees agree to authorize $280.0 million 
     for defense nuclear waste disposal, a decrease of $30.0 
     million.
       The following table summarizes the budget request and the 
     conferees recommendations:

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                     Legislative Provisions Adopted

         Subtitle A--National Security Programs Authorizations

     National Nuclear Security Administration (sec. 3101)
       The budget request included $6.8 billion for activities of 
     the Department of Energy National Nuclear Security 
     Administration (NNSA), subject to reductions and offsets.
       The Senate bill contained a provision (sec. 3101) that 
     would authorize $7.4 billion for the activities of the NNSA, 
     subject to offsets and reductions.
       The House amendment contained a similar provision (sec. 
     3101) that would authorize, after reductions and offsets, 
     $6.9 billion for the activities of the NNSA.
       The conferees agree to include a provision that would 
     authorize, after reductions and offsets, $7.1 billion for the 
     activities of the NNSA. The amounts authorized for the 
     individual program lines reflect the full amount authorized 
     for each program line without the reductions and offsets. The 
     offsets and reductions are included in paragraphs(1)(E) and 
     (2)(G) of this provision. The conferees have included the 
     reduced total amount for the NNSA for convenience only. The 
     total amount authorized is the sum total of the individual 
     program lines. The conferees note that each program is 
     authorized at the full amount reflected in the individual 
     program line prior to application of reductions and offsets.
       The conferees agree to combine the program direction 
     accounts for weapons activities and nonproliferation and 
     national security with the funds for the Office of the 
     Administrator of the NNSA in order to create a single account 
     reflecting the efforts of the Administrator to have a more 
     unified NNSA. Not included in this account, however, are the 
     program direction accounts for the Naval Reactors activities 
     and the program direction account for the secure 
     transportation asset.
       The conferees also agree to include $200.0 million for a 
     new account for facilities and infrastructure improvements at 
     the NNSA sites.
     Defense environmental restoration and waste management (sec. 
         3102)
       The budget request included $5.6 billion for environmental 
     management activities, including defense facilities closure 
     projects, subject to reductions and offsets.
       The Senate bill contained a provision (sec. 3102) that 
     would authorize, subject to offsets and reductions, $6.0 
     billion for environmental management activities, including 
     defense facilities closure projects.
       The House amendment contained a similar provision (sec. 
     3102) that would authorize $4.6 billion for defense 
     environmental restoration and waste management activities, 
     after offsets and reductions, but not including closure 
     projects. An additional $1.0 billion was authorized 
     separately for closure projects.
       The conferees agree to include a provision that would 
     authorize, after reductions and offsets, $6.0 billion for 
     defense environmental management activities, including 
     defense facilities closure projects. The amounts authorized 
     for individual program lines reflect the full amount 
     authorized for each program line without the reductions and 
     offsets. The offsets and reductions are included in 
     subsection (b) of this provision. The conferees have included 
     the reduced total amount for convenience only. The total 
     amount authorized is the sum total of the individual program 
     lines. The conferees note that each program is authorized at 
     the full amount reflected in the individual program line 
     prior to application of reductions and offsets.
     Other defense activities (sec. 3103)
       The budget request included $538.3 million for other 
     defense activities, subject to reductions and offsets.
       The Senate bill contained a provision (sec. 3103) that 
     would authorize $512.2 million for other defense activities, 
     subject to reductions and offsets.
       The House amendment contained a provision (sec. 3103) that 
     would authorize $502.1 million, after reductions and offsets.
       The conferees agree to include a provision that would 
     authorize, after reductions and offsets, $499.7 million for 
     other defense activities. The amounts authorized for 
     individual program lines reflect the full amount authorized 
     for each program line without the reductions and offsets. The 
     offsets and reductions are included in subsection (b) of this 
     provision. The conferees have included the reduced total 
     amount for convenience only. The total amount authorized is 
     the sum total of the individual program lines. The conferees 
     note that each program is authorized at the full amount 
     reflected in the individual program lines prior to 
     application of reductions and offsets.
     Defense environmental management privatization (sec. 3104)
       The budget request included $141.5 million for defense 
     environmental management privatization projects.
       The Senate bill contained a provision (sec. 3104) that 
     would authorize $157.5 million for defense environmental 
     management privatization projects.
       The House amendment contained a provision (sec. 3104) that 
     would authorize $126.2 million for defense environmental 
     management privatization projects.
       The conferees agree to authorize $153.5 million for defense 
     environmental management privatization accounts.
     Defense nuclear waste disposal (sec. 3105)
       The budget request included $310.0 million for defense 
     nuclear waste disposal.
       The Senate bill contained a provision (sec. 3105) that 
     would authorize $250.0 million for defense nuclear waste 
     disposal.
       The House amendment contained a provision (sec. 3105) that 
     would authorize $310.0 million for defense nuclear waste 
     disposal.
       The conferees agree to authorize $280.0 million for defense 
     nuclear waste disposal.

                Subtitle B--Recurring General Provisions

     Reprogramming (sec. 3121)
       The House amendment contained a provision (sec. 3121) that 
     would prohibit the reprogramming of funds excess of the 
     amount authorized for the program until the Secretary of 
     Energy has notified the congressional defense committees and 
     a period of 30 days has elapsed after the date on which the 
     notification is received.
       The Senate bill contained a similar provision (sec. 3121).
       The Senate recedes with a technical amendment.
       The conferees note that this provision significantly limits 
     the ability of the Department of Energy (DOE) to reprogram 
     funds and urge the DOE to work with the congressional defense 
     committees to re-establish an internal reprogramming process.
     Limits on minor construction projects (sec. 3122)
       The Senate bill contained a provision (sec. 3122) that 
     would authorize the Secretary of Energy to carry out minor 
     construction projects using operation and maintenance funds, 
     or facilities and infrastructure funds, if the total 
     estimated cost of the minor construction project does not 
     exceed $5.0 million. In addition, the provision would require 
     the Secretary to submit an annual report identifying each 
     minor construction project undertaken during the previous 
     fiscal year.
       The House amendment contained a similar provision (sec. 
     3122) that maintained the description of minor construction 
     projects as general plant projects and that would require a 
     cost variance report.
       The House recedes with an amendment that would require the 
     Secretary of Energy to submit immediately a report to the 
     congressional defense committees when any minor construction 
     project is revised so that the cost of the project exceeds 
     $5.0 million.
       The conferees direct the annual report required by this 
     section to be submitted with the budget request. The first 
     report, which would cover fiscal year 2002, should be 
     submitted with the budget request for fiscal year 2004.
     Limits on construction projects (sec. 3123)
       The Senate bill contained a provision (sec. 3123) that 
     would permit any construction project to be initiated and 
     continued only if the estimated cost for the project does not 
     exceed 125 percent of the higher of the amount authorized for 
     the project or the most recent total estimated cost presented 
     to the Congress as justification for such project. The 
     Secretary of Energy could not exceed such limits until 30 
     legislative days after the Secretary submits to the 
     congressional defense committees a detailed report setting 
     forth the reasons for the increase. The provision would also 
     specify that the 125 percent limitation would not apply to 
     projects estimated to cost under $5.0 million.
       The House amendment contained an identical provision (sec. 
     3123).
       The conference agreement includes this provision.
     Fund transfer authority (sec. 3124)
       The Senate bill contained a provision (sec. 3124) that 
     would permit funds authorized by this Act to be transferred 
     to other agencies of the Federal Government for performance 
     of work for which funds were authorized and appropriated. The 
     provision would permit the merger of such transferred funds 
     with the authorizations of the agency to which they are 
     transferred. The provision would also limit, to not more than 
     five percent of the account, the amount of funds authorized 
     by the Act that may be transferred between authorization 
     accounts within the Department of Energy.
       The House amendment contained an identical provision (sec. 
     3124).
       The conference agreement includes this provision.
     Authority for conceptual and construction design (sec. 3125)
       The Senate bill contained a provision (sec. 3125) that 
     would limit the Secretary of Energy's authority to request 
     construction funding until the Secretary has completed a 
     conceptual design. This limitation would apply to 
     construction projects with a total estimated cost greater 
     than $5.0 million. If the estimated cost to prepare the 
     construction design exceeds $600,000, the provision would 
     require the Secretary to obtain a specific authorization to 
     obligate such funds. If the estimated cost to prepare a 
     conceptual design exceeds $3.0 million, the provision would 
     further require the Secretary to submit to Congress a report 
     on each conceptual design completed under this provision. The 
     provision would also provide an exception to these 
     requirements in the case of an emergency.

[[Page 25598]]

       The House amendment contained a similar provision (sec. 
     3125).
       The House recedes with a technical amendment.
     Authority for emergency planning, design, and construction 
         activities (sec. 3126)
       The Senate bill contained a provision (sec. 3126) that 
     would permit the Secretary of Energy to perform planning and 
     design with funds available to the Department of Energy (DOE) 
     pursuant to sections 3101-3104 of title XXXI, including those 
     funds authorized for advanced planning and construction 
     design, whenever the Secretary determines that the design 
     must proceed expeditiously to protect the public health and 
     safety, to meet the needs of national defense, or to protect 
     property.
       The House amendment contained a similar provision that 
     included funds authorized pursuant to sections 3101-3103 of 
     title XXXI (sec. 3126).
       The House recedes.
     Funds available for all national security programs of the 
         Department of Energy (sec. 3127)
       The Senate bill contained a provision (sec. 3127) that 
     would authorize, subject to section 3121 of title XXXI of 
     this Act, amounts appropriated for management and support 
     activities and for general plant projects to be made 
     available for use in connection with all national security 
     programs of the Department of Energy.
       The House amendment contained an identical provision (sec. 
     3127).
       The conference agreement includes this provision.
     Availability of funds (sec. 3128)
       The House amendment contained a provision (sec. 3128) that 
     would authorize amounts appropriated for operating expenses 
     for plant and capital equipment for the Department of Energy 
     to remain available until expended. Program direction funds 
     would remain available until the end of fiscal year 2003.
       The Senate bill contained a similar provision but would 
     make program direction funds available until the end of 
     fiscal year 2004.
       The Senate recedes.
     Transfer of defense environmental management funds (sec. 
         3129)
       The Senate bill contained a provision (sec. 3129) that 
     would provide the manager of each Department of Energy (DOE) 
     field office with limited authority to transfer up to $5.0 
     million in fiscal year 2002 defense environmental management 
     funds from one program or project. The DOE manager could use 
     this authority to transfer funds outside of the normal 
     reprogramming process three times in a fiscal year.
       The House amendment contained a provision (sec. 3129) that 
     would provide the manager of the DOE field office authority 
     to make one transfer per fiscal year.
       The House recedes.
       The conferees agree that this authority shall not be 
     aggregated and that each transfer shall not exceed $5.0 
     million.
     Transfer of weapons activities funds (sec. 3130)
       The Senate bill contained a provision (sec. 3130) that 
     would provide the manager of a Department of Energy/National 
     Nuclear Security Administration (DOE/NNSA) field office with 
     limited authority to transfer up to $5.0 million in fiscal 
     year 2002 weapons activities funds from one program or 
     project to another, outside of the normal reprogramming 
     process. The DOE/NNSA manager could use this authority up to 
     three times per year.
       The House amendment contained a similar provision (sec. 
     3130) that would provide authority to make one transfer per 
     year and provide the authority to the contractor operator of 
     the DOE/NNSA plant or laboratory.
       The Senate recedes with an amendment that would provide the 
     authority to the DOE/NNSA manager to make one transfer per 
     year.

   Subtitle C--Program Authorizations, Restrictions, and Limitations

     Consolidation of Nuclear Cities Initiative program with 
         Initiatives for Proliferation Prevention program (sec. 
         3131)
       The House amendment contained a provision (sec. 3133) that 
     would consolidate the Nuclear Cities Initiative (NCI) program 
     and the Initiatives for Proliferation Prevention (IPP) 
     program under a common management structure by July 1, 2002.
       The Senate bill contained no similar provision, but 
     included language in Senate Report No. 107-62, accompanying 
     S. 1416, that directed the Administrator of the National 
     Nuclear Security Administration to consolidate the IPP 
     program and the NCI program under a single management 
     structure.
       The Senate recedes with an amendment that would delete the 
     date.
       The conferees agree to include a provision that would 
     direct the Administrator of the National Nuclear Security 
     Administration to consolidate the management of the IPP and 
     the NCI programs under a single management division. The 
     conferees believe, however, that these two programs should 
     remain separate, have different funding lines within the 
     division, retain their individual programmatic requirements 
     as established by statute and retain separate program 
     managers. The two managers should report to a single manager. 
     The conferees note that the Administrator has already begun 
     to implement this direction.
       In order to maintain the two program identities, the 
     conferees direct the Deputy Administrator for Defense Nuclear 
     Nonproliferation to submit a plan to the congressional 
     defense committees 30 days prior to obligating fiscal year 
     2002 funds, for each program laying out how each program 
     intends to utilize fiscal year 2002 funds. Further, the 
     conferees direct the Deputy Administrator to submit to the 
     congressional defense committees a program plan for the IPP 
     and the NCI programs that describes how: (1) the programs 
     will be managed under common senior management; (2) they will 
     share administrative support; (3) management improvements 
     will be made for each program; and (4) greater coordination 
     will be established between the programs and with the 
     relevant interagency working groups. This report is due to 
     the congressional defense committees no later than four 
     months after enactment of the National Defense Authorization 
     Act for Fiscal Year 2002.
     Nuclear Cities Initiative (sec. 3132)
       The Senate bill contained a provision (sec. 3133) that 
     would prohibit the use of funds authorized to be appropriated 
     after fiscal year 2001 for the Nuclear Cities Initiative 
     (NCI) from being obligated or expended to expand the NCI 
     program beyond its current scope until thirty days after the 
     Administrator of the National Nuclear Security Administration 
     (NNSA) submits to Congress an agreement on access signed by 
     the United States and Russia. The provision also requires an 
     annual report on the NCI program's financial and programmatic 
     activities.
       The House amendment contained no similar provision.
       The House recedes.
     Limitation on availability of funds for weapons activities 
         for facilities and infrastructure (sec. 3133)
       The Senate bill contained a provision (sec. 3131) that 
     would direct the Administrator of the National Nuclear 
     Security Administration (NNSA) to establish criteria for the 
     facilities and infrastructure projects. The provision would 
     prohibit the Administrator from obligating or expending more 
     than fifty percent of the facilities and infrastructure 
     account funds until he has submitted to the congressional 
     defense committees the criteria and a list of the projects 
     that will be funded based on the criteria.
       The House amendment contained no similar provision.
       The House recedes.
       The conferees support this new effort to address a backlog 
     of deferred maintenance at NNSA sites, but directs the 
     Administrator to include projects in the fund based on the 
     objective criteria established.
     Limitation on availability of funds for other defense 
         activities for national security programs administrative 
         support (sec. 3134)
       The Senate bill contained a provision (sec. 3132) that 
     would prevent the Secretary of Energy from using more than 
     $5.0 million of the funds authorized to be appropriated for 
     national security programs administrative support pursuant to 
     section 3103(a)(8) of this Act until such time as the 
     Secretary submits the future years nuclear security program 
     required by section 3253 of the National Nuclear Security Act 
     (Title XXXII of Public Law 106-65) and until the Secretary 
     submits a justification document for the national security 
     programs administrative support activities describing the 
     activities to be carried out with the funds provided.
       The House amendment contained no similar provision.
       The House recedes with an amendment that would add an 
     additional condition to be met by the Secretary before 
     obligating more than $5.0 million of the funds authorized to 
     be appropriated for this activity. The conferees note that 
     the report requested of the Secretary on the feasibility of 
     using an energy savings performance contract mechanism to 
     offset or possibly cover the cost of a new office building 
     for the Albuquerque operations office of the Department of 
     Energy (DOE) has not been submitted. This report was 
     requested in Senate Report 106-50, the report of the 
     Committee on Armed Services of the Senate to accompany S. 
     1059, the National Defense Authorization Act for Fiscal Year 
     2000. The amendment would direct the Secretary to submit this 
     report as the third prerequisite to spending more than $5.0 
     million of the funds authorized.
     Termination date of Office of River Protection, Richland, 
         Washington (sec. 3135)
       The House amendment contained a provision (sec. 3131) that 
     would extend the statutory termination date of the Office of 
     River Protection from September 30, 2004 to September 30, 
     2010 or upon determination that continuation of the Office is 
     no longer necessary to carry out the Department Of Energy 
     responsibilities under the Hanford Federal Facility 
     Compliance Agreement, whichever is later.
       The Senate bill contained no similar provision.
       The Senate recedes.
     Support for public education in the vicinity of Los Alamos 
         National Laboratory, New Mexico (sec. 3136)
       The Senate bill contained a provision (sec. 3157) that 
     would extend the period of time in

[[Page 25599]]

     which the Department of Energy (DOE) may make contributions 
     to the Los Alamos Education Foundation and authorizes $6.9 
     million, the amount contained in the budget request, to be 
     paid to the Foundation in fiscal year 2002. In addition, the 
     provision would authorize $8.0 million for the fiscal year 
     2002 payment to be made from funds available to the DOE to 
     offset cost of living expenses for school teachers at the Los 
     Alamos Public Schools. The provision would also allow the DOE 
     to extend the current contract with the Los Alamos Public 
     Schools, pursuant to which these funds are paid, through 
     fiscal year 2004. The provision would also require the 
     Secretary of Energy to submit a report evaluating and making 
     recommendations for future payments to the Foundation and the 
     schools.
       The House amendment contained a similar provision (sec. 
     3135) that would authorize the Secretary of Energy to pay 
     $5.0 million to the Foundation and $8.0 million to the Los 
     Alamos Public Schools. The provision would allow the DOE to 
     extend the current contract with the schools through fiscal 
     year 2003. The provision would also require a report.
       The Senate recedes with an amendment that would authorize a 
     payment of $6.9 million to the Foundation for fiscal year 
     2002 and that would direct the Secretary to submit the 
     required report by March 1, 2002.
     Reports on achievement of milestones for National Ignition 
         Facility (sec. 3137)
       The Senate bill contained a provision (sec. 3156) that 
     would direct the Administrator of the National Nuclear 
     Security Administration to notify the congressional defense 
     committees when the National Ignition Facility (NIF) achieves 
     each level one and level two milestone.
       The House amendment contained no similar provision.
       The House recedes with an amendment that would terminate 
     the notification requirement at the end of fiscal year 2004.
       The conferees have designated the end date of the reporting 
     obligation to coincide with the date on which the NIF should 
     achieve first light of the laser.

  Subtitle D--Matters Relating to Management of the National Nuclear 
                        Security Administration

     Establishment of Principal Deputy Administrator of National 
         Nuclear Security Administration (sec. 3141)
       The Senate bill contained a provision (sec. 3141) that 
     would establish a Principle Deputy Administrator for nuclear 
     security at the National Nuclear Security Administration 
     (NNSA). The new position would be appointed by the President 
     with the advice and consent of the Senate.
       The House amendment contained a similar provision (sec. 
     3132(a)) that would establish the position and spell out 
     qualifications for the individual to be appointed to that 
     position.
       The House recedes with an amendment that would require that 
     the person appointed for the position has extensive 
     background in organizational management and is well-qualified 
     to manage the nuclear weapons programs, nonproliferation, and 
     material disposition programs of the NNSA.
     Elimination of requirement that national security 
         laboratories and nuclear weapons production facilities 
         report to Deputy Administrator for Defense Programs (sec. 
         3142)
       The Senate bill contained a provision (sec. 3142) that 
     would amend section 3214 of the National Nuclear Security 
     Administration Act by striking subsection (c), which directs 
     the contractor managers and directors of the National Nuclear 
     Security Administration weapons production plants and 
     national laboratories to report to the Deputy Administrator 
     for Defense Programs.
       The House amendment contained an identical provision (sec. 
     3132(b)).
       The conference agreement includes this provision.
     Repeal of duplicative provision relating to dual office 
         holding by personnel of National Nuclear Security 
         Administration (sec. 3143)
       The House amendment contained a provision (sec. 3132(c)) 
     that would repeal a duplicative statutory prohibition on the 
     ability of non-National Nuclear Security Administration 
     (NNSA) employees of the Department of Energy to serve 
     concurrently in the NNSA.
       The Senate bill contained no similar provision.
       The Senate recedes.
     Report on adequacy of federal pay and hiring authorities to 
         meet personnel requirements of National Nuclear Security 
         Administration (sec. 3144)
       The Senate bill contained a provision (sec. 3144) that 
     would amend section 3241 of the National Nuclear Security 
     Administration Act to allow the National Nuclear Security 
     Administration (NNSA) to expand the number of scientific and 
     technical positions from the current 300 positions to 500 
     positions.
       The House amendment contained no similar provision.
       The House recedes with an amendment that would require the 
     Administrator of the NNSA to prepare a report on what hiring 
     and pay authorities are available to the NNSA, what 
     authorities are being used, and what additional authorities 
     are required.
       The conferees believe that the Administrator should work 
     with the Office of Personnel Management to determine the 
     appropriate status of all employees in the NNSA. The 
     conferees are aware that the Administrator would like to 
     convert all federal employees of the NNSA to an excepted 
     service type status. The report required should discuss the 
     Administrator's plans and options for appropriate pay and 
     hiring authorities at the NNSA.

                       Subtitle E--Other Matters

     Improvements to energy employees occupational illness 
         compensation program (sec. 3151)
       The Senate bill contained a provision (sec. 3151) that 
     would amend the Energy Employees Occupational Illness 
     Compensation Program Act of 2000 (EEOICPA)(title XXXVI of the 
     Floyd D. Spence National Defense Authorization Act for Fiscal 
     Year 2001). These amendments were designed to create greater 
     parity between certain provisions in the EEOICPA and similar 
     provisions in the Radiation Employees Compensation Act.
       The House amendment contained no similar provision.
       The House recedes with an amendment.
       The conferees have agreed to include language that would 
     amend the EEOICPA in several areas, including: revising the 
     threshold standard for determining if a covered employee has 
     contracted silicosis; clarifying attorney's fees provisions; 
     clarifying who qualifies as survivors and their entitlement 
     to lump-sum benefits not paid to the covered employee; adding 
     a technical amendment dealing with covered Leukemias; 
     clarifying the effect of the EEOICPA on tort actions filed 
     both before and after the EEOICPA date of enactment, and 
     subsequent to the date of enactment of this Act; and 
     directing the director of the National Institute for 
     Occupational Safety and Health to conduct a new study on 
     potential health effects of any residual contamination at 
     certain facilities.
       The provision clarifies that Leukemia, other than chronic 
     Lymphocytic Leukemia, is covered if the initial occupational 
     exposure occurred before the age of twenty-one and if the 
     onset of the Leukemia occurred more than two years after such 
     exposure. This amendment makes it clear that occupational 
     exposure received prior to age twenty-one falls within the 
     purview of the EEOICPA.
       The provision amends section 3626(b) of the EEOICPA to 
     include employees of an atomic energy weapons employer 
     facility for consideration as a member of the special 
     exposure cohort.
       The provision amends section 3627(e)(2)(A) of the EEOICPA 
     to change the threshold criteria for determining if a covered 
     employee has silicosis to a 1/0 reading from a 1/1 reading. 
     This change brings the EEOICPA in line with the Radiation 
     Exposure Compensation Act (42 U.S.C. 2210 note).
       The provision amends sections 3628(e) and 3630(e) of the 
     EEOICPA to clarify that any compensation payments not made to 
     covered employees prior to their death shall be paid to 
     survivors living at the time payment is to be made and to 
     define who qualifies as survivors for purposes of receiving 
     such payments. The provision ensures that certain surviving 
     minor children will receive the benefit owed to the deceased 
     covered employee. The provision would also repeal paragraph 
     18 of section 3621 of the EEOICPA, defining survivors.
       The provision amends section 3645 of the EEOICPA to clarify 
     the election of remedies under certain circumstances. The 
     amendments were included to address the situation where a 
     tort case for compensation filed prior to October 30, 2000 
     had been dismissed, but where the dismissal was not a 
     voluntary dismissal sought by the plaintiff. Under such a 
     circumstance, the plaintiff would still be eligible to seek 
     compensation under EEOICPA if the non-voluntary dismissal 
     occurs prior to December 31, 2003. The provision would 
     retain, however, the prohibition that if the tort case has 
     not been involuntarily dismissed prior to December 31, 2003, 
     the plaintiff would not be eligible to seek compensation 
     under the EEOICPA unless the plaintiff voluntarily dismissed 
     the case. The conferees were primarily concerned that a 
     plaintiff in a previously filed case that had been 
     involuntarily dismissed prior to December 31, 2003 would not 
     be eligible to seek compensation under the EEOICPA. Under 
     this provision, this individual would be eligible to file a 
     claim for compensation. The amendment would, however, 
     preclude any individual who had filed a tort case between 
     October 30, 2000 and the date of the enactment of this Act, 
     from being eligible to receive compensation or benefits under 
     the EEOICPA unless the case is dismissed by the individual 
     before the last permissible date. The permissible date is the 
     later of April 30, 2003 or 30 months after discovering that 
     the individual has a covered illness that results from the 
     individual's covered occupational exposure.
       In addition, the provision would provide that if the 
     individual files a tort case after the date of enactment of 
     this Act, the individual is not eligible for compensation if 
     there is a final court decision adverse to the plaintiff 
     rendered prior to the last permissible date for a voluntary 
     dismissal. The last permissible date for a voluntary 
     dismissal is the later of April 30, 2003 or 30 months after

[[Page 25600]]

     discovering that the individual has a covered illness that 
     results from the individual's covered occupational exposure.
       The provision would amend section 3648 of the EEOICPA to 
     clarify that the two-percent limitation on attorney fees 
     applies to initial claims for lump-sum compensation and that 
     the ten- percent limitation on attorney fees applies to 
     assistance provided with respect to objections to a 
     recommended decision denying payment of a lump-sum 
     compensation. The provision would also clarify that the 
     limitations on attorney fees does not apply to attorney fees 
     for services rendered for matters not pertaining to or in 
     connection with lump-sum claims.
       Finally, the provision would require the National Institute 
     for Occupational Safety and Health to conduct a study in 
     coordination with the Department of Energy (DOE) and the 
     Department of Labor to determine whether there is any 
     significant residual contamination at beryllium vendors or 
     atomic weapons employer facilities that could have caused or 
     substantially contributed to the cancer or beryllium illness 
     of a covered employee. An interim report is due 180 days 
     after enactment of this Act, and the final report is due one 
     year after the date of enactment.
       The conferees are aware of draft regulations promulgated by 
     the DOE and intended to implement subtitle D of the EEOICPA. 
     The conferees are concerned that the DOE appears to have 
     misinterpreted the intent of Congress in this area. Subtitle 
     D was intended to provide an alternative path to state 
     workers compensation systems that would rely on the 
     independent judgment of a physicians panel as to whether a 
     worker's illness was related to exposure to a toxic substance 
     while working at a DOE facility. In cases where this 
     independent panel finds that the illness was related to 
     occupational exposure, the conferees expect that the DOE will 
     direct its contractors not to contest the worker's claim in 
     the state proceedings. Subtitle D was intended to overcome 
     existing procedural barriers within state workers 
     compensation systems that prevent workers with occupational 
     illnesses from receiving assistance from these systems. In 
     implementing subtitle D, the DOE should not re-impose the 
     same or similar procedural barriers that subtitle D was 
     designed to remove or overcome.
     Department of Energy counterintelligence polygraph program 
         (sec. 3152)
       The Senate bill contained a provision (sec. 3152) that 
     would direct the Secretary of Energy to develop a new interim 
     polygraph program, and then establish a new permanent 
     polygraph program. The new permanent program would be 
     established by regulations issued pursuant to the 
     Administrative Procedures Act, after the DOE completes the 
     ongoing Polygraph Review. The provision would also repeal 
     section 3154 of the Department of Energy Facilities 
     Safeguards, Security and Counterintelligence Enhancement Act 
     of 1999 (Title XXXI of the National Defense Authorization Act 
     for Fiscal Year 2000).
       The House amendment contained no similar provision.
       The House recedes with an amendment that would direct the 
     Secretary of Energy to establish a new permanent polygraph 
     program by regulations issued pursuant to the Administrative 
     Procedures Act. The provision would repeal section 3154 only 
     after the DOE has implemented the final rule and the 
     Secretary submits a certification to the congressional 
     defense committees to that effect.
     One-year extension of authority of Department of Energy to 
         pay voluntary separation incentive payments (sec. 3153)
       The Senate bill contained a provision (sec. 3153) that 
     would amend section 3161(a) of the National Defense 
     Authorization Act for Fiscal Year 2000 to provide a one-year 
     extension of the Department of Energy (DOE) authority to make 
     voluntary separation incentive payments through January 1, 
     2004.
       The House amendment contained no similar provision.
       The House recedes with an amendment stating that the 
     provision may be superceded by an applicable government-wide 
     statute providing voluntary separation incentive payments.
       The conferees note that the administration is seeking 
     government-wide authority setting uniform standards to be 
     applied by federal agencies in making voluntary separation 
     incentive payments. In the event that Congress enacts such a 
     law, the conferees anticipate that it would supercede this 
     provision and conform the DOE and Department of Defense 
     authority to that provided to all federal agencies.
     Annual assessment and report on vulnerability of Department 
         of Energy facilities to terrorist attack (sec. 3154)
       The Senate bill contained a provision (sec. 3159) that 
     would direct the Secretary of Energy to conduct an annual 
     assessment on the vulnerabilities of Department of Energy 
     (DOE) facilities to terrorist attack. The report would be due 
     on January 31 of each year. The first report would be due on 
     January 31, 2003.
       The House amendment contained no similar provision.
       The House recedes.
     Disposition of surplus defense plutonium at Savannah River 
         Site, Aiken, South Carolina (sec. 3155)
       The House amendment contained a provision (sec. 3134) that 
     would require the Secretary of Energy to consult with the 
     Governor of South Carolina on any decisions or plans 
     regarding the disposition of surplus defense plutonium at the 
     Savannah River Site and to submit a plan to Congress by 
     February 1, 2002, for the disposal of surplus defense 
     plutonium currently located at the site, as well as for 
     defense plutonium that may be shipped to the site in the 
     future. If the plan is not submitted by February 1, 2002, 
     then no shipments of plutonium could be made to the Savannah 
     River Site.
       The Senate bill contained no similar provision.
       The Senate recedes with an amendment that would require the 
     Secretary to provide a notice to the congressional defense 
     committees 30 days before the Secretary shipped any defense 
     plutonium or defense plutonium materials to the Savannah 
     River Site. The conferees note that a similar report is 
     required by the conference report for the Energy and Water 
     Development Appropriations Act for Fiscal Year 2002 (Public 
     Law 107-66).
       The provision would also require the Secretary to prepare a 
     comprehensive plan for the long-term disposition of defense 
     plutonium and defense plutonium materials. If the Secretary 
     should decide not to proceed with the immobilization facility 
     or the mixed oxide facility, then the Secretary shall include 
     in the plan required to be submitted on February 1, 2002 a 
     disposition path for the material.
     Modification of date of report of Panel to Assess the 
         Reliability, Safety, and Security of the United States 
         Nuclear Stockpile (sec. 3156)
       The Senate bill contained a provision (sec. 3155) that 
     would amend section 3159(d) of the Strom Thurmond National 
     Defense Authorization Act for Fiscal Year 1999 by extending 
     the due date for the third report required by that section 
     from October 1, 2001 to February 1, 2002.
       The House amendment contained no similar provision.
       The House recedes.

            Subtitle F--Rocky Flats National Wildlife Refuge

     Rocky Flats National Wildlife Refuge (sec. 3171-3182)
       The Senate bill contained a series of provisions (sec. 
     3171-3181) that would transfer the Department of Energy Rocky 
     Flats site to the Department of Interior (DOI) to establish 
     the Rocky Flats National Wildlife Refuge. The transfer would 
     occur after the DOE has completed the environmental cleanup 
     of the site.
       The House amendment contained no similar provision.
       The House recedes with amendments that would clarify the 
     relationship between the Department of Energy (DOE) and the 
     DOI and remove the requirement for the DOI to conduct any 
     interim management activities prior to the transfer of 
     jurisdiction over Rocky Flats.
       This designation will ensure that appropriate land uses are 
     maintained and that an environmentally sound end state will 
     result. As cleanup and closure continues, the committee urges 
     the DOE to consult with the U.S. Fish and Wildlife Service to 
     ensure a smooth transition from the DOE to the DOI.
       Through a Memorandum of Understanding (MOU), the DOE and 
     the DOI should address any remaining issues related to the 
     transition, determine how to resolve those issues, and 
     develop the best path forward for transferring the land. The 
     MOU should also address longer term relationships between the 
     DOE and the DOI and address such things as indemnification 
     for any costs that may result after the transfer.
       The provisions would also require that any conflicts 
     between the two agencies over cleanup activities on the land 
     retained by the DOE be resolved so that cleanup activities 
     take priority.
       The Act provides that prior to the transfer, the 
     Environmental Protection Agency must certify that the site is 
     cleaned up and closed as a DOE facility pursuant to existing 
     laws, regulations, and agreements. The conferees note that 
     the State of Colorado has recently passed a new statute 
     concerning the enforceability of environmental real 
     covenants. Several federal agencies have raised questions 
     about the applicability of this provision to federal lands. 
     The conferees do not attempt to resolve any issues associated 
     with the applicability of this new Colorado statute and do 
     not intend these provisions to be interpreted as either 
     supporting or refuting the applicability of this statute to 
     federal lands, including the wildlife refuge that would be 
     created in this Act.
       While it is expected that most structures will be 
     demolished when the property is transferred from the DOE to 
     the Fish and Wildlife Service, any cleanup facilities or 
     structures related to long-term treatment and control of 
     contamination that the DOE must maintain and remain liable 
     for will be excluded from transfer. In addition, the 
     provision also allows the DOI to designate any buildings that 
     it might need for managing the refuge.
       The Act also anticipates that wastes and materials will be 
     removed for off-site disposal and that there should not be 
     any need for a long-term storage facility at the site.

[[Page 25601]]

       The provision clarifies that these provisions shall not be 
     interpreted or construed to reduce the required cleanup 
     levels, and that these levels should reflect a cleanup level 
     that is fully protective of human health and the environment 
     for the long-term.
       The provisions also require that the refuge shall be 
     managed in accordance with the National Wildlife Refuge 
     System Administration Act. Accordingly, the Fish and Wildlife 
     Service must consult with local communities and ensure public 
     participation during development of the Rocky Flats Wildlife 
     Refuge plans. This Act also recognizes and preserves the 
     existence of other property rights on the Rocky Flats site, 
     such as mineral rights, water rights, and utility rights-of-
     way for all relevant parties. The conferees recognize that 
     the DOE's top priority at Rocky Flats is safe cleanup and 
     closure, and strongly support continuation of efforts to 
     achieve the 2006 closure date. The conferees further 
     recognize that the accelerated cleanup at Rocky Flats and 
     creation of the Wildlife Refuge has been achieved through 
     strong support and cooperation from the surrounding 
     communities, the State of Colorado, and the Colorado 
     Congressional delegation. Creation of the Rocky Flats 
     National Wildlife Refuge provides an important path forward 
     for Rocky Flats and a model for other DOE cleanup sites 
     across the nation.

                   Legislative Provisions Not Adopted

     Additional objective for Department of Energy defense nuclear 
         facility workforce restructuring plan
       The Senate bill contained a provision (sec. 3154) that 
     would amend section 3161(c) of the National Defense 
     Authorization Act for Fiscal Year 1993 by adding a new 
     requirement to the workforce restructuring plan. The new 
     requirement would direct the Secretary of Energy to provide 
     assistance to promote the diversification of the economies of 
     the communities in the vicinity of the Department of Energy 
     (DOE).
       The House amendment contained no similar provision.
       The Senate recedes.
       The conferees believe that the DOE, in its work with the 
     Department of Commerce and the Department of Labor in 
     preparing and carrying out workforce restructuring plans, 
     already looks at economic diversification as an element of 
     the plan. The conferees direct the Secretary to continue to 
     promote diversification of the economies in the vicinity of 
     any DOE defense nuclear facility that may be affected by a 
     workforce restructuring and to include in the plan a 
     description of the steps taken in support of this goal.
     Clarification of status within the Department of Energy of 
         Administration and contractor personnel of the National 
         Nuclear Security Administration
       The Senate bill contained a provision (sec. 3143) that 
     would amend section 3219 of the National Nuclear Security 
     Administration Act (Title XXXII of the National Defense Act 
     for Fiscal Year 2000) to clarify that when work is performed 
     at National Nuclear Security Administration (NNSA) facilities 
     and sponsored by offices outside of the NNSA, the sponsoring 
     office can supervise the work being performed and that NNSA 
     employees can serve on DOE task forces.
       The House amendment contained no similar provision.
       The Senate recedes.
       The conferees do not include this provision because they do 
     not believe that the existing law prohibits or limits either 
     non-NNSA agencies and offices from providing authority 
     direction and control over programs that they sponsor at NNSA 
     facilities or NNSA employees from serving as full members of 
     any DOE task force.
     Construction of Department of Energy operations office 
         complex
       The Senate bill contained a provision (sec. 3134) that 
     would authorize the Secretary of Energy to provide for the 
     design and construction of a new operations office complex 
     for the Department of Energy (DOE) in accordance with the 
     feasibility study regarding such operations office complex 
     conducted under the National Defense Authorization Act for 
     Fiscal Year 2000. The provision would provide authority to 
     the Secretary to use one or more energy savings performance 
     (ESP) contracts, entered into under Title VII of the National 
     Energy Policy Conservation Act, 42 U.S.C. 8287 et seq., to 
     design and construct the complex. The provision would require 
     that the construction and operation costs of the complex be 
     paid from the energy savings and ancillary operations and 
     maintenance savings that result from the replacement of a 
     current DOE operations office complex.
       The House amendment contained no similar provision.
       The Senate recedes.
     Improvements to Corral Hollow Road, Livermore, California
       The Senate bill contained a provision (sec. 3158) that 
     would authorize up to $0.3 million for safety improvements to 
     Corral Hollow Road, the amount of the budget request.
       The House amendment contained no similar provision.
       The Senate recedes.
       The conferees agree that funds for road improvements that 
     are for roads not on Department of Energy (DOE) sites should 
     be specifically requested in the DOE budget request. The 
     conferees also agree that specific authorization is not 
     required for such road projects unless the total project cost 
     for the project exceeds $5.0 million.
     Increased amount for nonproliferation and verification
       The House amendment contained a provision (sec. 3106) that 
     would increase the amounts authorized for defense nuclear 
     nonproliferation by $10.0 million for operation and 
     maintenance for nonproliferation and verification research 
     and development.
       The Senate bill contained no similar provision.
       The House recedes.
       The conferees have included funds for the defense nuclear 
     nonproliferation programs in section 3101 of this conference 
     report.

          Title XXXII--Defense Nuclear Facilities Safety Board

                     Legislative Provisions Adopted

     Authorization (sec. 3201)
       The Senate bill contained a provision (sec. 3201) that 
     would authorize $18.5 million for the Defense Nuclear 
     Facilities Safety Board (DNFSB).
       The House amendment contained an identical provision (sec. 
     3201).
       The conference agreement includes this provision.

                Title XXXIII--National Defense Stockpile

                     Legislative Provisions Adopted

     Definitions (sec. 3301)
       The House amendment contained a provision (sec. 3301) that 
     would provide the definitions used in the title.
       The Senate bill contained no similar provision.
       The Senate recedes.
     Authorized uses of stockpile funds (sec. 3302)
       The House amendment contained a provision (sec. 3302) that 
     would authorize $65.2 million from the National Defense 
     Stockpile Transaction Fund for the operation and maintenance 
     of the National Defense Stockpile for fiscal year 2002. The 
     provision would also permit the use of additional funds for 
     extraordinary or emergency conditions 45 days after a 
     notification to the Congress.
       The Senate bill contained no similar provision.
       The Senate recedes.
     Authority to dispose of certain materials in National Defense 
         Stockpile (sec. 3303)
       The House amendment contained a provision (sec. 3303) that 
     would authorize the disposal of specific materials in the 
     National Defense Stockpile that are no longer needed.
       The Senate bill contained an identical provision (sec. 
     3301).
       The conference agreement includes this provision.
     Revision of limitations on required disposals of certain 
         materials in National Defense Stockpile (sec. 3304)
       The Senate bill contained a provision (sec. 3302) that 
     would provide the Secretary of Defense with greater 
     flexibility in the disposal of materials from the National 
     Defense Stockpile. The provision would allow the sale of 
     materials over 10 years, based on market conditions, rather 
     than according to a specific timetable limiting quantities 
     that could be disposed of in any given year.
       The House amendment contained no similar provision.
       The House recedes.
     Acceleration of required disposal of cobalt in National 
         Defense Stockpile (sec. 3305)
       The House amendment contained a provision (sec. 3304) that 
     would accelerate by one year the disposal of cobalt from the 
     National Defense Stockpile that was authorized for sale in 
     previous authorization acts.
       The Senate bill contained a similar provision (sec. 3303).
       The House recedes.
     Restriction on disposal of manganese ferro (sec. 3306)
       The Senate bill contained a provision (sec. 3304) that 
     would prohibit the sale of manganese ferro from the National 
     Defense Stockpile during fiscal year 2002.
       The House amendment contained no similar provision.
       The House recedes with an amendment that would authorize 
     sales of 25,000 short tons of manganese ferro in fiscal year 
     2002 (of all grades), 25,000 short tons of high-grade 
     manganese ferro in fiscal year 2003, and 50,000 short tons of 
     high-grade manganese ferro in fiscal years 2004 and 2005.

                 Title XXXIV--Naval Petroleum Reserves

                     Legislative Provisions Adopted

     Authorization of appropriations (sec. 3401)
       The House amendment contained a provision (sec. 3401) that 
     authorized the appropriation of $17.4 million during fiscal 
     year 2002 for activities relating to the naval petroleum 
     reserves.
       The Senate bill contained a similar provision (sec. 3401).
       The Senate recedes.

                  Title XXXV--Maritime Administration

                     Legislative Provisions Adopted

     Authorization of appropriations for fiscal year 2002 (sec. 
         3501)
       The budget request included $103.0 million for the Maritime 
     Administration.

[[Page 25602]]

       The House amendment contained a provision (sec. 3501) that 
     would authorize an increase of $100.0 million for the 
     Maritime Administration. Of the funds authorized, $89.1 
     million would be for operations and training programs, $100.0 
     million would be for the cost as defined in section 402 of 
     the Federal Credit Reform Act of 1990, of loan guarantees 
     authorized by title XI of the Merchant Marine Act, 1936, as 
     amended (46 App. U.S.C. 1271 et seq.), $4.0 million would be 
     for administrative expenses related to providing those loan 
     guarantees, and $10.0 million would be to dispose of obsolete 
     vessels in the National Defense Reserve Fleet.
       The Senate bill contained no similar provision.
       The Senate recedes.
     Define ``war risks'' to vessels to include confiscation, 
         expropriation, nationalization, and deprivation of the 
         vessels (sec. 3502)
       The House amendment contained a provision (sec. 3502) that 
     would clarify and expand the authority of the Maritime 
     Administration to issue war risk insurance coverage for 
     losses from hostile acts including confiscation, 
     expropriation, nationalization, and deprivation.
       The Senate bill contained no similar provision.
       The Senate recedes.
     Holding obligor's cash as collateral under title XI of 
         Merchant Marine Act, 1936 (sec. 3503)
       The House amendment contained a provision (sec. 3503) that 
     would amend title XI of the Merchant Marine Act, 1936, as 
     amended, by establishing a new section that would allow the 
     Maritime Administration to hold and invest cash collateral 
     derived from title XI proceeds in the U.S. Treasury.
       The Senate bill contained no similar provision.
       The Senate recedes.

     From the Committee on Armed Services, for consideration of 
     the Senate Bill and the House amendment, and modifications 
     committed to conference:
     Bob Stump,
     Duncan Hunter,
     James V. Hansen,
     Curt Weldon,
     Jim Saxton,
     John M. McHugh,
     Terry Everett,
     Roscoe G. Bartlett,
     Howard ``Buck'' McKeon,
     J.C. Watts, Jr.,
     Mac Thornberry,
     Saxby Chambliss,
     Ike Skelton,
     Solomon P. Ortiz,
     Lane Evans,
     Neil Abercrombie,
     Martin T. Meehan,
     Robert A. Underwood,
     Thomas Allen,
     Vic Snyder,
     From the Committee on Education and the Workforce, for 
     consideration of secs. 304, 305, 1123, 3151, and 3157 of the 
     Senate bill, and secs. 341, 342, 509, and 584 of the House 
     amendment, and modifications committed to conference:
     Michael N. Castle,
     Johnny Isakson,
     George Miller,
     From the Committee on Government Reform, for consideration of 
     secs. 564, 622, 803, 813, 901, 1044, 1047, 1051, 1065, 1075, 
     1102, 1111-1113, 1124-1126, 2832, 3141, 3144, and 3153 of the 
     Senate bill, and secs. 333, 519, 588, 802, 803, 811-819, 
     1101, 1103-1108, 1110, and 3132 of the House amendment, and 
     modifications committed to conference:
     Dan Burton,
     Dave Weldon,
     Henry A. Waxman,
     Provided that Mr. Tom Davis of Virginia is appointed in lieu 
     of Mr. Weldon of Florida for consideration of secs. 803 and 
     2832 of the Senate bill, and secs. 333 and 803 of the House 
     amendment, and modifications committed to conference:
     Tom Davis,
     Provided that Mr. Horn is appointed in lieu of Mr. Weldon of 
     Florida for consideration of secs. 811-819 of the House 
     amendment, and modifications committed to conference:
     Stephen Horn,
     From the Committee on House Administration, for consideration 
     of secs. 572, 574-577, and 579 of the Senate bill, and sac. 
     552 of the House amendment, and modifications committed to 
     conference:
     Bob Ney,
     John L. Mica,
     From the Committee on International Relations, for 
     consideration of secs. 331, 333, 1201-1205, and 1211-1218 of 
     the Senate bill, and secs. 1011, 1201, 1202, 1205, and 1209, 
     title XIII, and sec. 3133 of the House amendment, and 
     modifications committed to conference:
     Henry Hyde,
     Ben Gilman,
     Tom Lantos,
     From the Committee on the Judiciary, for consideration of 
     secs. 821, 1066, and 3151 of the Senate bill, and secs. 323 
     and 818 of the House amendment, and modifications committed 
     to conference:
     F. James Sensenbrenner,
     Lamar Smith,
     From the Committee on Resources, for consideration of secs. 
     601, 663, 2823, and 3171-3181 of the Senate bill, and secs. 
     601, 1042, 2841, 2845, 2861-2863, and 2865 and title XXIX of 
     the House amendment, and modifications committed to 
     conference:
     Jim Gibbons,
     George Radanovich,
     Provided that Mr. Udall of Colorado is appointed in lieu of 
     Mr. Rahall for consideration of secs. 3171-3181 of the Senate 
     bill, and modifications committed to conference:
     Mark Udall,
     From the Committee on Science, for consideration of secs. 
     1071 and 1124 of the Senate bill, and modifications committed 
     to conference:
     Sherwood Boehlert,
     Nick Smith,
     Ralph M. Hall,
     Provided that Mr. Ehlers is appointed in lieu of Mr. Smith of 
     Michigan for consideration of sec. 1124 of the Senate bill, 
     and modifications committed to conference:
     Vernon J. Ehlers,
     From the Committee on Small Business, for consideration of 
     secs. 822-824 and 1068 of the Senate bill, and modifications 
     committed to conference:
     Donald A. Manzullo,
     Larry Combest,
     From the Committee on Transportation and Infrastructure, for 
     consideration of secs. 563, 601, and 1076 of the Senate bill, 
     and secs. 543, 544, 601, 1049, and 1053 of the House 
     amendment, and modifications committed to conference:
     Don Young,
     Frank A. LoBiondo,
     Corrine Brown,
     Provided that Mr. Pascrell is appointed in lieu of Ms. Brown 
     of Florida for consideration of sec. 1049 of the House 
     amendment, and modifications committed to conference:
     Bill Pascrell, Jr.,
     From the Committee on Veterans' Affairs, for consideration of 
     secs. 538, 539, 573, 651, 717, and 1064 of the Senate bill, 
     and sec. 641 of the House amendment, and modifications 
     committed to conference:
     Christopher H. Smith,
       (except sec. 641 of House amendment and secs. 539 and 651 
     of Senate bill),
     Mike Bilirakis,
                                Managers on the Part of the House.

     Carl Levin,
     Ted Kennedy,
     Joseph Lieberman,
     Max Cleland,
     Mary Landrieu,
     Jack Reed,
     Daniel K. Akaka,
     Bill Nelson,
     Ben Nelson,
     Jean Carnahan,
     Mark Dayton,
     Jeff Bingaman,
     John Warner,
     Strom Thurmond,
     Bob Smith,
     Jim Inhofe,
     Rick Santorum,
     Pat Roberts,
     Wayne Allard,
     Tim Hutchinson,
     Jeff Sessions,
     Susan Collins,
     Jim Bunning,
     Managers on the Part of the Senate.

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