[Congressional Record (Bound Edition), Volume 147 (2001), Part 20]
[House]
[Pages 27176-27465]
[From the U.S. Government Publishing Office, www.gpo.gov]


[[Page 27176]]

                   EXECUTIVE OFFICE OF THE PRESIDENT

                        Office of Administration


                         salaries and expenses

       For emergency expenses to respond to the September 11, 
     2001, terrorist attacks on the United States, for ``Salaries 
     and Expenses'', $126,512,000, to remain available until 
     expended, to be obligated from amounts made available in 
     Public Law 107-38.

                          INDEPENDENT AGENCIES

                    General Services Administration


                        REAL PROPERTY ACTIVITIES

                         Federal Buildings Fund

       For emergency expenses to respond to the September 11, 
     2001, terrorist attacks on the United States, for ``Federal 
     Buildings Fund'', $126,512,000, to remain available until 
     expended, to be obligated from amounts made available in 
     Public Law 107-38.

              National Archives and Records Administration


                           Operating Expenses

       For emergency expenses to respond to the September 11, 
     2001, terrorist attacks on the United States, for ``Operating 
     Expenses'', $1,600,000, to remain available until expended, 
     to be obligated from amounts made available in Public Law 
     107-38.


                        Repairs and Restoration

       For emergency expenses to respond to the September 11, 
     2001, terrorist attacks on the United States, for ``Repairs 
     and Restoration'', $1,000,000, to remain available until 
     expended, to be obligated from amounts made available in 
     Public Law 107-38.

                    GENERAL PROVISION, THIS CHAPTER

       Sec. 1201. Section 652(c)(1) of Public Law 107-67 is 
     amended by striking ``Section 414(c)'' and inserting 
     ``Section 416(c)''.

                               CHAPTER 13

                     DEPARTMENT OF VETERANS AFFAIRS

                      Departmental Administration


                       general operating expenses

       For emergency expenses to respond to the September 11, 
     2001, terrorist attacks on the United States for ``General 
     operating expenses'', $2,000,000, to remain available until 
     expended, to be obligated from amounts made available in 
     Public Law 107-38.

              DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

                   Community Planning and Development


                       COMMUNITY DEVELOPMENT FUND

       For emergency expenses to respond to the September 11, 
     2001, terrorist attacks on the United States, for ``Community 
     Development Fund'', $2,000,000,000, to remain available until 
     expended, to be obligated from amounts made available in 
     Public Law 107-38: Provided, That such funds shall be subject 
     to the first through sixth provisos in section 434 of Public 
     Law 107-73: Provided further, That the State of New York, in 
     conjunction with the City of New York, shall, through the 
     Lower Manhattan Redevelopment Corporation (``the 
     corporation''): (1) distribute the funds provided for the 
     ``Community Development Fund''; (2) within 45 days of 
     enactment of this Act, issue the initial criteria and 
     requirements necessary to accept applications from 
     individuals, nonprofits and small businesses for economic 
     losses from the September 11, 2001, terrorist attacks; and 
     (3) begin processing such applications: Provided further, 
     That the corporation shall expeditiously respond to any 
     application from an individual, nonprofit or small business 
     for economic losses under this heading: Provided further, 
     that of the total amount made available for the ``Community 
     Development Fund'', including amounts previously made 
     available by transfer pursuant to the fifth proviso of Public 
     Law 107-38, no less than $500,000,000 shall be made available 
     for individuals, nonprofits or small businesses described in 
     the prior three provisos, with a limit of $500,000 per small 
     business for economic losses: Provided further, That amounts 
     made available in the previous proviso shall only be 
     available for individuals, nonprofits or small businesses 
     located in New York City in the area located on or south of 
     West 14th Street (west of its intersection with 5th Avenue), 
     or on or south of East 14th Street (east of its intersection 
     with 5th Street): Provided further, That, of the amount 
     provided in this paragraph, $10,000,000 shall be used for a 
     program to aid the travel and tourism industry in New York 
     City.

                     Management and Administration


                      OFFICE OF INSPECTOR GENERAL

       For emergency expenses to respond to the September 11, 
     2001, terrorist attacks on the United States, for ``Office of 
     Inspector General'', $1,000,000, to remain available until 
     expended, to be obligated from amounts made available in 
     Public Law 107-38.

                          INDEPENDENT AGENCIES

                DEPARTMENT OF HEALTH AND HUMAN SERVICES

                     National Institutes of Health


          national institute of environmental health sciences

       For emergency expenses to respond to the September 11, 
     2001, terrorist attacks on the United States for ``National 
     Institute of Environmental Health Sciences'' for carrying out 
     under current authorities, worker training, research, and 
     education activities, $10,500,000, to remain available until 
     expended, to be obligated from amounts made available in 
     Public Law 107-38.
         Public Law 107-73 is amended under this heading by adding 
     ``and section 126(g) of the Superfund Amendments and 
     Reauthorization Act of 1986,'' after the words, ``as 
     amended,''.

                    Environmental Protection Agency


                         SCIENCE AND TECHNOLOGY

       For emergency expenses to respond to the September 11, 
     2001, terrorist attacks on the United States, and to support 
     activities related to countering terrorism, for ``Science and 
     technology'', $90,308,000, to remain available until 
     expended, to be obligated from amounts made available in 
     Public Law 107-38.


                 ENVIRONMENTAL PROGRAMS AND MANAGEMENT

       For emergency expenses to respond to the September 11, 
     2001, terrorist attacks on the United States, and to support 
     activities related to countering terrorism, for 
     ``Environmental programs and management'', $39,000,000, to 
     remain available until expended, to be obligated from amounts 
     made available in Public Law 107-38.


                     HAZARDOUS SUBSTANCE SUPERFUND

       For emergency expenses to respond to the September 11, 
     2001, terrorist attacks on the United States, and to support 
     activities related to countering terrorism, for ``Hazardous 
     substance superfund'', $41,292,000, to remain available until 
     expended, to be obligated from amounts made available in 
     Public Law 107-38.


                   STATE AND TRIBAL ASSISTANCE GRANTS

       For making grants for emergency expenses to respond to the 
     September 11, 2001, terrorist attacks on the United States, 
     and to support activities related to countering potential 
     biological and chemical threats to populations, for ``State 
     and tribal assistance grants'', $5,000,000, to remain 
     available until expended, to be obligated from amounts made 
     available in Public Law 107-38.
         The referenced statement of the managers under this 
     heading in Public Law 107-73 is deemed to be amended by 
     striking ``Florida Department of Environmental Protection'' 
     in reference to item number 92, and inserting ``Southwest 
     Florida Water Management District''; and by striking 
     ``Southeast'' in reference to item number 9, and inserting 
     ``Southwest''.
       The referenced statement of the managers under this heading 
     in Public Law 106-377 is deemed to be amended by striking 
     ``repairs to water and sewer lines'' in reference to item 
     number 171 and inserting ``water and waterwater 
     infrastructure improvements''.

                  Federal Emergency Management Agency


                            disaster relief

       For emergency expenses to respond to the September 11, 
     2001, terrorist attacks on the United States, for ``Disaster 
     relief'', $4,356,871,000, to remain available until expended, 
     to be obligated from amounts made available in Public Law 
     107-38.


                         salaries and expenses

       For emergency expenses to respond to the September 11, 
     2001, terrorist attacks on the United States, for ``Salaries 
     and expenses'', $25,000,000 to remain available until 
     expended, to be obligated from amounts made available in 
     Public Law 107-38 of which not less than $10,000,000 shall be 
     used to enhance the capabilities of the National Security 
     Division.


              emergency management planning and assistance

                     (INCLUDING TRANSFER OF FUNDS)

       For emergency expenses to respond to the September 11, 
     2001, terrorist attacks on the United States, for ``Emergency 
     management planning and assistance'', $10,000,000, to remain 
     available until expended, to be obligated from amounts made 
     available in Public Law 107-38, which shall be available for 
     support of the 2002 Winter Olympics.
       For an additional amount for emergency expenses to respond 
     to the September 11, 2001, terrorist attacks on the United 
     States and to support activities related to countering 
     terrorism, for ``Emergency management planning and 
     assistance'', $210,000,000, to remain available until 
     September 30, 2003, for programs as authorized by section 33 
     of the Federal Fire Prevention and Control Act of 1974, as 
     amended (15 U.S.C. 2201 et seq.), as in effect on December 7, 
     2001, to be obligated from amounts made available in Public 
     Law 107-38: Provided, That up to 5 percent of this amount 
     shall be transferred to ``Salaries and expenses'' for program 
     administration.

             National Aeronautics and Space Administration


                           human space flight

       For emergency expenses to respond to the September 11, 
     2001, terrorist attacks on the United States, for ``Human 
     space flight'', $76,000,000, to remain available until 
     expended, to be obligated from amounts made available in 
     Public Law 107-38.


                  science, aeronautics and technology

       For emergency expenses to respond to the September 11, 
     2001, terrorist attacks on the United States, for ``Science, 
     aeronautics and technology'', $32,500,000, to remain 
     available until expended, to be obligated from amounts made 
     available in Public Law 107-38.

                      National Science Foundation


                    research and related activities

       For emergency expenses to respond to the September 11, 
     2001, terrorist attacks on the United States, for ``Research 
     and related activities'',

[[Page 27177]]

     $300,000 to remain available until expended, to be obligated 
     from amounts made available in Public Law 107-38.

                    GENERAL PROVISIONS, THIS CHAPTER

       Sec. 1301.(a) This section may be cited as the ``Unity in 
     the Spirit of America Act'' or the ``USA Act''.
       (b) The National and Community Service Act of 1990 (42 
     U.S.C. 12501 et seq.) is amended by inserting before title V 
     the following:
       ``TITLE IV--PROJECTS HONORING VICTIMS OF TERRORIST ATTACKS

     ``SEC. 401. PROJECTS.

       ``(a) Definition.--In this section, the term `Foundation' 
     means the Points of Light Foundation funded under section 
     301, or another nonprofit private organization, that enters 
     into an agreement with the Corporation to carry out this 
     section.
       ``(b) Identification of Projects.--
       ``(1) Estimated number.--Not later than March 1, 2002, the 
     Foundation, after obtaining the guidance of the heads of 
     appropriate Federal agencies, such as the Director of the 
     Office of Homeland Security and the Attorney General, shall--
       ``(A) make an estimate of the number of victims killed as a 
     result of the terrorist attacks on September 11, 2001 
     (referred to in this section as the `estimated number'); and
       ``(B) compile a list that specifies, for each individual 
     that the Foundation determines to be such a victim, the name 
     of the victim and the State in which the victim resided.
       ``(2) Identified projects.--The Foundation may identify 
     approximately the estimated number of community-based 
     national and community service projects that meet the 
     requirements of subsection (d). The Foundation may name 
     projects in honor of victims described in subsection 
     (b)(1)(A), after obtaining the permission of an appropriate 
     member of the victim's family and the entity carrying out the 
     project.
       ``(c) Eligible Entities.--To be eligible to have a project 
     named under this section, the entity carrying out the project 
     shall be a political subdivision of a State, a business, a 
     nonprofit organization (which may be a religious 
     organization), an Indian tribe, or an institution of higher 
     education.
       ``(d) Projects.--The Foundation shall name, under this 
     section, projects--
       ``(1) that advance the goals of unity, and improving the 
     quality of life in communities; and
       ``(2) that will be planned, or for which implementation 
     will begin, within a reasonable period after the date of 
     enactment of the Unity in the Spirit of America Act, as 
     determined by the Foundation.
       ``(e) Website and Database.--The Foundation shall create 
     and maintain websites and databases, to describe projects 
     named under this section and serve as appropriate vehicles 
     for recognizing the projects.''.
       Sec. 1302. Within funds previously appropriated as 
     authorized under the Native American Housing and Self 
     Determination Act of 1996 (Pub. L. 104-330, Sec. 1(a), 110 
     Stat. 4016) and made available to Cook Inlet Housing 
     Authority, Cook Inlet Housing Authority may use up to 
     $9,500,000 of such funds to construct student housing for 
     Native college students, including an on-site computer lab 
     and related study facilities, and, notwithstanding any 
     provision of such Act to the contrary, Cook Inlet Housing 
     Authority may use a portion of such funds to establish a 
     reserve fund and to provide for maintenance of the project.
       Sec. 1303. Of the amounts made available under both the 
     heading ``Housing Certificate Fund'' and the heading 
     ``Salaries and expenses'' in title II of Public Law 107-73, 
     not to exceed $11,300,000 shall be for the recordation and 
     liquidation of obligations and deficiencies incurred in prior 
     years in connection with the provision of technical 
     assistance authorized under section 514 of the Multifamily 
     Assisted Housing Reform and Affordability Act of 1997 
     (``section 514''), and notwithstanding any other provision of 
     law, for new obligations for such technical assistance: 
     Provided, That of the $11,300,000 made available, up to 
     $1,300,000 shall be for reimbursement of vouchers submitted 
     by section 514 grantees as of October 15, 2001: Provided 
     further, That of the total amount provided under the heading 
     ``Salaries and expenses'' in title II of Public Law 107-73, 
     $500,000 shall be made available from salaries and expenses 
     allocated to the Office of General Counsel and $1,000,000 
     shall be made available from salaries and expenses allocated 
     to the Office of Multifamily Housing Assistance Restructuring 
     in the Department of Housing and Urban Development for new 
     obligations for the provision of technical assistance 
     authorized under section 514: Provided further, That of the 
     $11,300,000 provided under this section, no more than 
     $10,000,000 shall be made available for new obligations for 
     technical assistance under section 514: Provided further, 
     That from amounts made available under this section, the 
     Inspector General of the Department of Housing and Urban 
     Development (``HUD Inspector General'') shall audit each 
     provision of technical assistance obligated under the 
     requirements of section 514 over the last 4 years: Provided 
     further, That to the extent the HUD Inspector General 
     determines that the use of any funding for technical 
     assistance does not meet the requirements of section 514, the 
     Secretary of Housing and Urban Development (``Secretary'') 
     shall recapture any such funds: Provided further, That no 
     funds appropriated under title II of Public Law 107-73 and 
     subsequent appropriations acts for the Department of Housing 
     and Urban Development shall be made available for four years 
     to any entity (or any subsequent entity comprised of 
     significantly the same officers) that has been identified as 
     having violated the requirements of section 514 by the HUD 
     Inspector General: Provided further, That, notwithstanding 
     any other provision of law, no funding for technical 
     assistance shall be available for carryover from any previous 
     year: Provided further, That the recordation and liquidation 
     of obligations and deficiencies under this heading shall not 
     pardon or release an officer or employee of the United States 
     Government for an act or acts in violation of the Anti-
     deficiency Act (31 U.S.C. 1341): Provided further, That the 
     Secretary shall implement the provisions under this section 
     in a manner that does not accelerate outlays.
       Sec. 1304. The referenced statement of the managers 
     pertaining to economic development initiatives under the 
     heading ``Community Development Fund'' in Public Law 107-73 
     is deemed to be amended by striking ``Willacacy County Boys 
     and Girls Club in Willacacy County, Texas'' in reference to 
     an appropriation for the Willacy County Boys and Girls Club, 
     and inserting ``Willacy County Boys and Girls Club in Willacy 
     County, Texas''; by striking ``Acres Home Community 
     Development Corporation'' in reference to an appropriation in 
     Houston, Texas, and inserting ``Old Acres Homes Citizens 
     Council''; and by striking ``$250,000 to the Good Shepard 
     School in Braddock, Pennsylvania for facility renovation;'' 
     in reference to an appropriation in Braddock, Pennsylvania, 
     and inserting ``$250,000 for facility renovation, of which 
     $50,000 is for the Good Shepard School in Braddock, 
     Pennsylvania and $200,000 is for the Phipps Conservatory and 
     Botanical Gardens in Pittsburgh, Pennsylvania;''.

                               CHAPTER 14

                   GENERAL PROVISIONS, THIS DIVISION

       Sec. 1401. Amounts which may be obligated pursuant to this 
     division are subject to the terms and conditions provided in 
     Public Law 107-38.
       Sec. 1402. No part of any appropriation contained in this 
     division shall remain available for obligation beyond the 
     current fiscal year unless expressly so provided herein.
       Sec. 1403. Notwithstanding any other provision of law, of 
     the funds made available in this or any other Act, funds may 
     be transferred to the Department of Defense from an agency 
     receiving National Guard services related to homeland 
     security to cover the costs of such services that the agency 
     incurred after the date of enactment of this Act: Provided, 
     That such authority to transfer shall expire on April 30, 
     2002: Provided further, That each agency receiving National 
     Guard services related to homeland security shall submit to 
     the House and Senate Committees on Appropriations a detailed 
     report of the National Guard's homeland defense activities 
     and expenses incurred after the date of enactment of this Act 
     and planned for the remainder of fiscal year 2002 for that 
     agency and any proposed transfers fifteen days prior to such 
     transfers pursuant to this authority.
       This division may be cited as the ``Emergency Supplemental 
     Act, 2002''.

 DIVISION C--SPENDING LIMITS AND BUDGETARY ALLOCATIONS FOR FISCAL YEAR 
                                  2002

       Sec. 101. (a) Discretionary Spending Limits.--Section 
     251(c)(6) of the Balanced Budget and Emergency Deficit 
     Control Act of 1985 is amended--
       (1) by striking subparagraph (A) and inserting the 
     following:
       ``(A) for the discretionary category: $681,441,000,000 in 
     new budget authority and $670,206,000,000 in outlays;'';
       (2) in subparagraph (C), by striking the second ``and'' 
     after the semicolon; and
       (3) in subparagraph (D), by striking ``$1,232,000,000'' and 
     inserting ``$1,473,000,000''.
       (b) Revised Aggregates and Allocations.--Upon the enactment 
     of this section, the chairman of the Committee on the Budget 
     of the House of Representatives and the chairman of the 
     Committee on the Budget of the Senate shall each--
       (1) revise the aggregate levels of new budget authority and 
     outlays for fiscal year 2002 set in sections 101(2) and 
     101(3) of the concurrent resolution on the budget for fiscal 
     year 2002 (H. Con. Res. 83, 107th Congress), to the extent 
     necessary to reflect the revised limits on discretionary 
     budget authority and outlays for fiscal year 2002 provided in 
     subsection (a);
       (2) revise allocations under section 302(a) of the 
     Congressional Budget Act of 1974 to the Committee on 
     Appropriations of their respective House as initially set 
     forth in the joint explanatory statement of managers 
     accompanying the conference report on that concurrent 
     resolution, to the extent necessary to reflect the revised 
     limits on discretionary budget authority and outlays for 
     fiscal year 2002 provided in subsection (a); and
       (3) publish those revised aggregates and allocations in the 
     Congressional Record.
       (c) Repeal of Section 203 of Budget Resolution for Fiscal 
     Year 2002.--Section 203 of the concurrent resolution on the 
     budget for fiscal year 2002 (H. Con. Res. 83, 107th Congress) 
     is repealed.
       (d) Adjustments.--If, for fiscal year 2002, the amount of 
     new budget authority provided in appropriation Acts exceeds 
     the discretionary spending limit on new budget authority for 
     any category due to technical estimates made by the Director 
     of the Office of Management and

[[Page 27178]]

     Budget, the Director shall make an adjustment equal to the 
     amount of the excess, but not to exceed an amount equal to 
     0.12 percent of the sum of the adjusted discretionary limits 
     on new budget authority for all categories for fiscal year 
     2002.
       Sec. 102. Pay-As-You-Go Adjustment.--In preparing the final 
     sequestration report for fiscal year 2002 required by section 
     254(f)(3) of the Balanced Budget and Emergency Deficit 
     Control Act of 1985, the Director of the Office of Management 
     and Budget shall change any balance of direct spending and 
     receipts legislation for fiscal years 2001 and 2002 under 
     section 252 of that Act to zero.
       Sec. 103. When the President submits a budget of the United 
     States Government under section 1105(a) of title 31, United 
     States Code, for fiscal year 2003, he shall submit a report 
     to the Congress that identifies any emergency-designated 
     funding (pursuant to section 251(b)(2)(A) or section 252(e) 
     of the Balanced Budget and Emergency Deficit Control Act of 
     1985) in legislation enacted after September 11, 2001, and 
     before such submission in response to the events of September 
     11, 2001, that is of an ongoing and recurring nature.
       Sec. 104. (a) Adjustments made to the section 302(a) 
     allocations pursuant to section 101(b) shall be deemed to be 
     allocations set forth in the joint explanatory statement of 
     managers accompanying the concurrent resolution on the budget 
     for fiscal year 2002 for all purposes under titles III and IV 
     of the Congressional Budget Act of 1974.
       (b) Repealer.--Section 221(d)(2) of the concurrent 
     resolution on the budget for fiscal year 2002 (H. Con. Res. 
     83, 107th Congress, 1st session) is repealed.

                  DIVISION D--MISCELLANEOUS PROVISIONS

                 TITLE I--CONVEYANCE OF HOMESTAKE MINE

     SEC. 101. SHORT TITLE.

       This title may be cited as the ``Homestake Mine Conveyance 
     Act of 2001''.

     SEC. 102. FINDINGS.

       Congress finds the following:
       (1) The United States is among the leading nations in the 
     world in conducting basic scientific research.
       (2) That leadership position strengthens the economy and 
     national defense of the United States and provides other 
     important benefits.
       (3) The Homestake Mine in Lead, South Dakota, owned by the 
     Homestake Mining Company of California, is approximately 
     8,000 feet deep and is situated in a unique physical setting 
     that is ideal for carrying out certain types of particle 
     physics and other research.
       (4) The Mine has been selected by the National Underground 
     Science Laboratory Committee, an independent panel of 
     distinguished scientists, as the preferred site for the 
     construction of the National Underground Science Laboratory.
       (5) Such a laboratory would be used to conduct scientific 
     research that would be funded and recognized as significant 
     by the United States.
       (6) The establishment of the laboratory is in the national 
     interest and would substantially improve the capability of 
     the United States to conduct important scientific research.
       (7) For economic reasons, Homestake intends to cease 
     operations at the Mine in 2001.
       (8) On cessation of operations of the Mine, Homestake 
     intends to implement reclamation actions that would preclude 
     the establishment of a laboratory at the Mine.
       (9) Homestake has advised the State that, after cessation 
     of operations at the Mine, instead of closing the entire 
     Mine, Homestake is willing to donate the underground portion 
     of the Mine and certain other real and personal property of 
     substantial value at the Mine for use as the National 
     Underground Science Laboratory.
       (10) Use of the Mine as the site for the laboratory, 
     instead of other locations under consideration, would result 
     in a savings of millions of dollars for the Federal 
     Government.
       (11) If the Mine is selected as the site for the 
     laboratory, it is essential that closure of the Mine not 
     preclude the location of the laboratory at the Mine.
       (12) Homestake is unwilling to donate, and the State is 
     unwilling to accept, the property at the Mine for the 
     laboratory if Homestake and the State would continue to have 
     potential liability with respect to the transferred property.
       (13) To secure the use of the Mine as the location for the 
     laboratory and to realize the benefits of the proposed 
     laboratory it is necessary for the United States to--
       (A) assume a portion of any potential future liability of 
     Homestake concerning the Mine; and
       (B) address potential liability associated with the 
     operation of the laboratory.

     SEC. 103. DEFINITIONS.

       In this title:
       (1) Administrator.--The term ``Administrator'' means the 
     Administrator of the Environmental Protection Agency.
       (2) Affiliate.--
       (A) In general.--The term ``affiliate'' means any 
     corporation or other person that controls, is controlled by, 
     or is under common control with Homestake.
       (B) Inclusions.--The term ``affiliate'' includes a 
     director, officer, or employee of an affiliate.
       (3) Conveyance.--The term ``conveyance'' means the 
     conveyance of the Mine to the State under section 104(a).
       (4) Fund.--The term ``Fund'' means the Environment and 
     Project Trust Fund established under section 108.
       (5) Homestake.--
       (A) In general.--The term ``Homestake'' means the Homestake 
     Mining Company of California, a California corporation.
       (B) Inclusion.--The term ``Homestake'' includes--
       (i) a director, officer, or employee of Homestake;
       (ii) an affiliate of Homestake; and
       (iii) any successor of Homestake or successor to the 
     interest of Homestake in the Mine.
       (6) Independent entity.--The term ``independent entity'' 
     means an independent entity selected jointly by Homestake, 
     the South Dakota Department of Environment and Natural 
     Resources, and the Administrator--
       (A) to conduct a due diligence inspection under section 
     104(b)(2)(A); and
       (B) to determine the fair value of the Mine under section 
     105(a).
       (7) Indian tribe.--The term ``Indian tribe'' has the 
     meaning given the term in section 4 of the Indian Self-
     Determination and Education Assistance Act (25 U.S.C. 450b).
       (8) Laboratory.--
       (A) In general.--The term ``laboratory'' means the national 
     underground science laboratory proposed to be established at 
     the Mine after the conveyance.
       (B) Inclusion.--The term ``laboratory'' includes operating 
     and support facilities of the laboratory.
       (9) Mine.--
       (A) In general.--The term ``Mine'' means the portion of the 
     Homestake Mine in Lawrence County, South Dakota, proposed to 
     be conveyed to the State for the establishment and operation 
     of the laboratory.
       (B) Inclusions.--The term ``Mine'' includes--
       (i) real property, mineral and oil and gas rights, shafts, 
     tunnels, structures, backfill, broken rock, fixtures, 
     facilities, and personal property to be conveyed for 
     establishment and operation of the laboratory, as agreed upon 
     by Homestake and the State; and
       (ii) any water that flows into the Mine from any source.
       (C) Exclusions.--The term ``Mine'' does not include--
       (i) the feature known as the ``Open Cut'';
       (ii) any tailings or tailings storage facility (other than 
     backfill in the portion of the Mine described in subparagraph 
     (A)); or
       (iii) any waste rock or any site used for the dumping of 
     waste rock (other than broken rock in the portion of the Mine 
     described in subparagraph (A)).
       (10) Person.--The term ``person'' means--
       (A) an individual;
       (B) a trust, firm, joint stock company, corporation 
     (including a government corporation), partnership, 
     association, limited liability company, or any other type of 
     business entity;
       (C) a State or political subdivision of a State;
       (D) a foreign governmental entity;
       (E) an Indian tribe; and
       (F) any department, agency, or instrumentality of the 
     United States.
       (11) Project sponsor.--The term ``project sponsor'' means 
     an entity that manages or pays the costs of 1 or more 
     projects that are carried out or proposed to be carried out 
     at the laboratory.
       (12) Scientific advisory board.--The term ``Scientific 
     Advisory Board'' means the entity designated in the 
     management plan of the laboratory to provide scientific 
     oversight for the operation of the laboratory.
       (13) State.--
       (A) In general.--The term ``State'' means the State of 
     South Dakota.
       (B) Inclusions.--The term ``State'' includes an 
     institution, agency, officer, or employee of the State.

     SEC. 104. CONVEYANCE OF REAL PROPERTY.

       (a) In General.--
       (1) Delivery of documents.--Subject to paragraph (2) and 
     subsection (b) and notwithstanding any other provision of 
     law, on the execution and delivery by Homestake of 1 or more 
     quitclaim deeds or bills of sale conveying to the State all 
     right, title, and interest of Homestake in and to the Mine, 
     title to the Mine shall pass from Homestake to the State.
       (2) Condition of mine on conveyance.--The Mine shall be 
     conveyed as is, with no representations as to the condition 
     of the property.
       (b) Requirements for Conveyance.--
       (1) In general.--The Administrator's acceptance of the 
     final report or certification of the independent entity under 
     paragraph (4) is a condition precedent of the conveyance and 
     of the assumption of liability by the United States in 
     accordance with this title.
       (2) Due diligence inspection.--
       (A) In general.--As a condition precedent of conveyance and 
     of Federal participation described in this title, Homestake 
     shall permit an independent entity to conduct a due diligence 
     inspection of the Mine to determine whether any condition of 
     the Mine may present an imminent and substantial endangerment 
     to public health or the environment.
       (B) Consultation.--As a condition precedent of the conduct 
     of a due diligence inspection, the Administrator, in 
     consultation with Homestake, the South Dakota Department of 
     Environment and Natural Resources, and the independent 
     entity, shall define the methodology and standards to be 
     used, and other factors to be considered, by the independent 
     entity in--
       (i) the conduct of the due diligence inspection;
       (ii) the scope of the due diligence inspection; and

[[Page 27179]]

       (iii) the time and duration of the due diligence 
     inspection.
       (C) Participation by homestake.--Nothing in this paragraph 
     requires Homestake to participate in the conduct of the due 
     diligence inspection.
       (3) Report to the administrator.--
       (A) In general.--The independent entity shall submit to the 
     Administrator a report that--
       (i) describes the results of the due diligence inspection 
     under paragraph (2); and
       (ii) identifies any condition of or in the Mine that may 
     present an imminent and substantial endangerment to public 
     health or the environment.
       (B) Procedure.--
       (i) Draft report.--Before finalizing the report under this 
     paragraph, the independent entity shall--

       (I) issue a draft report;
       (II) submit to the Administrator, Homestake, and the State 
     a copy of the draft report;
       (III) issue a public notice requesting comments on the 
     draft report that requires all such comments to be filed not 
     later than 45 days after issuance of the public notice; and
       (IV) during that 45-day public comment period, conduct at 
     least 1 public hearing in Lead, South Dakota, to receive 
     comments on the draft report.

       (ii) Final report.--In the final report submitted to the 
     Administrator under this paragraph, the independent entity 
     shall respond to, and incorporate necessary changes suggested 
     by, the comments received on the draft report.
       (4) Review and approval by administrator.--
       (A) In general.--Not later than 60 days after receiving the 
     final report under paragraph (3), the Administrator shall--
       (i) review the report; and
       (ii) notify the State in writing of acceptance or rejection 
     of the final report.
       (B) Conditions for rejection.--The Administrator may reject 
     the final report if the report discloses 1 or more conditions 
     that--
       (i) as determined by the Administrator, may present an 
     imminent and substantial endangerment to the public health or 
     the environment and require a response action; or
       (ii) otherwise make the conveyance in section 104, or the 
     assumption of liability, the release of liability, or the 
     indemnification in section 106 contrary to the public 
     interest.
       (C) Response actions and certification.--
       (i) Response actions.--

       (I) In general.--If the Administrator rejects the final 
     report, Homestake may carry out or bear the cost of, or 
     permit the State or another person to carry out or bear the 
     cost of, such response actions as are necessary to correct 
     any condition identified by the Administrator under 
     subparagraph (B)(i) that may present an imminent and 
     substantial endangerment to public health or the environment.
       (II) Long-term response actions.--

       (aa) In general.--In a case in which the Administrator 
     determines that a condition identified by the Administrator 
     under subparagraph (B)(i) requires continuing response 
     action, or response action that can be completed only as part 
     of the final closure of the laboratory, it shall be a 
     condition of conveyance that Homestake, the State, or another 
     person deposit into the Fund such amount as is estimated by 
     the independent entity, on a net present value basis and 
     after taking into account estimated interest on that basis to 
     be sufficient to pay the costs of the long-term response 
     action or the response action that will be completed as part 
     of the final closure of the laboratory.
       (bb) Limitation on use of funds.--None of the funds 
     deposited into the Fund under item (aa) shall be expended for 
     any purpose other than to pay the costs of the long-term 
     response action, or the response action that will be 
     completed as part of the final closure of the Mine, 
     identified under that item.
       (ii) Contribution by homestake.--The total amount that 
     Homestake may expend, pay, or deposit into the Fund under 
     subclauses (I) and (II) of clause (i) shall not exceed--

       (I) $75,000,000; less
       (II) the fair value of the Mine as determined under section 
     105(a).

       (iii) Certification.--

       (I) In general.--After any response actions described in 
     clause (i)(I) are carried out and any required funds are 
     deposited under clause (i)(II), the independent entity may 
     certify to the Administrator that the conditions for 
     rejection identified by the Administrator under subparagraph 
     (B) have been corrected.
       (II) Acceptance or rejection of certification.--Not later 
     than 60 days after an independent entity makes a 
     certification under subclause (I), the Administrator shall 
     accept or reject the certification.

       (c) Review of Conveyance.--For the purposes of the 
     conveyance, the requirements of this section shall be 
     considered to be sufficient to meet any requirement of the 
     National Environmental Policy Act of 1969 (42 U.S.C. 4321 et 
     seq.).

     SEC. 105. ASSESSMENT OF PROPERTY.

       (a) Valuation of Property.--The independent entity shall 
     assess the fair value of the Mine.
       (b) Fair Value.--For the purposes of this section, the fair 
     value of the Mine shall be the fair market value as 
     determined by an appraisal in conformance with the Uniform 
     Appraisal Standards for Federal Land Acquisition. To the 
     extent appraised items only have value to the Federal 
     Government for the purpose of constructing the laboratory, 
     the appraiser shall also add to the assessment of fair value 
     the estimated cost of replacing the shafts, winzes, hoists, 
     tunnels, ventilation system and other equipment and 
     improvements at the Mine that are expected to be used at, or 
     that will be useful to, the laboratory.
       (c) Report.--Not later than the date on which each report 
     developed in accordance with section 104(b)(3) is submitted 
     to the Administrator, the independent entity described in 
     subsection (a) shall submit to the State a report that 
     identifies the fair value assessed under subsection (a).

     SEC. 106. LIABILITY.

       (a) Assumption of Liability.--
       (1) Assumption.--Subject to paragraph (2), notwithstanding 
     any other provision of law, on completion of the conveyance 
     in accordance with this title, the United States shall assume 
     any and all liability relating to the Mine and laboratory, 
     including liability for--
       (A) damages;
       (B) reclamation;
       (C) the costs of response to any hazardous substance (as 
     defined in section 101 of the Comprehensive Environmental 
     Response, Compensation, and Liability Act of 1980 (42 U.S.C. 
     9601)), contaminant, or other material on, under, or relating 
     to the Mine and laboratory; and
       (D) closure of the Mine and laboratory.
       (2) Claims against united states.--In the case of any claim 
     brought against the United States, the United States shall be 
     liable for--
       (A) damages under paragraph (1)(A), only to the extent that 
     an award of damages is made in a civil action brought under 
     chapter 171 of title 28, United States Code, notwithstanding 
     that the act or omission giving rise to the claim was not 
     committed by an employee of the United States; and
       (B) response costs under paragraph (1)(C), only to the 
     extent that an award of response costs is made in a civil 
     action brought under--
       (i) the Federal Water Pollution Control Act (33 U.S.C. 1251 
     et seq.);
       (ii) the Solid Waste Disposal Act (42 U.S.C. 6901 et seq.);
       (iii) the Comprehensive Environmental Response, 
     Compensation, and Liability Act of 1980 (42 U.S.C. 9601 et 
     seq.); or
       (iv) any other applicable Federal environmental law, as 
     determined by the Administrator.
       (b) Liability Protection.--On completion of the conveyance, 
     neither Homestake nor the State shall be liable to any person 
     or the United States for injuries, costs, injunctive relief, 
     reclamation, damages (including damages to natural resources 
     or the environment), or expenses, or liable under any other 
     claim (including claims for indemnification or contribution, 
     claims by third parties for death, personal injury, illness, 
     or loss of or damage to property, or claims for economic 
     loss), under any law (including a regulation) for any claim 
     arising out of or in connection with contamination, 
     pollution, or other condition, use, or closure of the Mine 
     and laboratory, regardless of when a condition giving rise to 
     the liability originated or was discovered.
       (c) Indemnification.--Notwithstanding any other provision 
     of law, on completion of the conveyance in accordance with 
     this title, the United States shall indemnify, defend, and 
     hold harmless Homestake and the State from and against--
       (1) any and all liabilities and claims described in 
     subsection (a), without regard to any limitation under 
     subsection (a)(2); and
       (2) any and all liabilities and claims described in 
     subsection (b).
       (d) Waiver of Sovereign Immunity.--For purposes of this 
     title, the United States waives any claim to sovereign 
     immunity with respect to any claim of Homestake or the State 
     under this title.
       (e) Timing for Assumption of Liability.--If the conveyance 
     is effectuated by more than 1 legal transaction, the 
     assumption of liability, liability protection, 
     indemnification, and waiver of sovereign immunity provided 
     for under this section shall apply to each legal transaction, 
     as of the date on which the transaction is completed and with 
     respect to such portion of the Mine as is conveyed under that 
     transaction.
       (f) Exceptions for Certain Claims.--Nothing in this section 
     constitutes an assumption of liability by the United States, 
     or relief of liability of Homestake, for--
       (1) any unemployment, worker's compensation, or other 
     employment-related claim or cause of action of an employee of 
     Homestake that arose before the date of conveyance;
       (2) any claim or cause of action that arose before the date 
     of conveyance, other than claims relating to environmental 
     response costs or natural resource damages; or
       (3) any violation of any provision of criminal law.
       (g) Exception for Off-Site Environmental Claims.--Nothing 
     in this title constitutes an assumption of liability by the 
     United States, relief of liability for Homestake, or 
     obligation to indemnify Homestake, for any claim, injury, 
     damage, liability, or reclamation or cleanup obligation with 
     respect to any property or asset that is not conveyed under 
     this title, except to the extent that any such claim, injury, 
     damage, liability, or reclamation or cleanup obligation is 
     based on activities or events at the Mine subsequent to the 
     date of conveyance.

     SEC. 107. INSURANCE COVERAGE.

       (a) Property and Liability Insurance.--
       (1) In general.--To the extent property and liability 
     insurance is available and subject to the requirements 
     described in paragraph (2), the State shall purchase property 
     and liability insurance for the Mine and the operation of the

[[Page 27180]]

     laboratory to provide coverage against the liability 
     described in subsections (a) and (b) of section 106.
       (2) Requirements.--The requirements referred to in 
     paragraph (1) are the following:
       (A) Terms of insurance.--In determining the type, extent of 
     coverage, and policy limits of insurance purchased under this 
     subsection, the State shall--
       (i) periodically consult with the Administrator and the 
     Scientific Advisory Board; and
       (ii) consider certain factors, including--

       (I) the nature of the projects and experiments being 
     conducted in the laboratory;
       (II) the availability and cost of commercial insurance; and
       (III) the amount of funding available to purchase 
     commercial insurance.

       (B) Additional terms.--The insurance purchased by the State 
     under this subsection may provide coverage that is--
       (i) secondary to the insurance purchased by project 
     sponsors; and
       (ii) in excess of amounts available in the Fund to pay any 
     claim.
       (3) Financing of insurance purchase.--
       (A) In general.--Subject to section 108, the State may 
     finance the purchase of insurance required under this 
     subsection by using--
       (i) funds made available from the Fund; and
       (ii) such other funds as are received by the State for the 
     purchase of insurance for the Mine and laboratory.
       (B) No requirement to use state funds.--Nothing in this 
     title requires the State to use State funds to purchase 
     insurance required under this subsection.
       (4) Additional insured.--Any insurance purchased by the 
     State under this subsection shall--
       (A) name the United States as an additional insured; or
       (B) otherwise provide that the United States is a 
     beneficiary of the insurance policy having the primary right 
     to enforce all rights of the United States under the policy.
       (5) Termination of obligation to purchase insurance.--The 
     obligation of the State to purchase insurance under this 
     subsection shall terminate on the date on which--
       (A) the Mine ceases to be used as a laboratory; or
       (B) sufficient funding ceases to be available for the 
     operation and maintenance of the Mine or laboratory.
       (b) Project Insurance.--
       (1) In general.--The State, in consultation with the 
     Administrator and the Scientific Advisory Board, may require, 
     as a condition of approval of a project for the laboratory, 
     that a project sponsor provide property and liability 
     insurance or other applicable coverage for potential 
     liability associated with the project described in 
     subsections (a) and (b) of section 106.
       (2) Additional insured.--Any insurance obtained by the 
     project sponsor under this section shall--
       (A) name the State and the United States as additional 
     insureds; or
       (B) otherwise provide that the State and the United States 
     are beneficiaries of the insurance policy having the primary 
     right to enforce all rights under the policy.
       (c) State Insurance.--
       (1) In general.--To the extent required by State law, the 
     State shall purchase, with respect to the operation of the 
     Mine and the laboratory--
       (A) unemployment compensation insurance; and
       (B) worker's compensation insurance.
       (2) Prohibition on use of funds from fund.--A State shall 
     not use funds from the Fund to carry out paragraph (1).

     SEC. 108. ENVIRONMENT AND PROJECT TRUST FUND.

       (a) Establishment.--On completion of the conveyance, the 
     State shall establish, in an interest-bearing account at an 
     accredited financial institution located within the State, 
     the Environment and Project Trust Fund.
       (b) Amounts.--The Fund shall consist of--
       (1) an annual deposit from the operation and maintenance 
     funding provided for the laboratory in an amount to be 
     determined--
       (A) by the State, in consultation with the Administrator 
     and the Scientific Advisory Board; and
       (B) after taking into consideration--
       (i) the nature of the projects and experiments being 
     conducted at the laboratory;
       (ii) available amounts in the Fund;
       (iii) any pending costs or claims that may be required to 
     be paid out of the Fund; and
       (iv) the amount of funding required for future actions 
     associated with the closure of the facility;
       (2) an amount determined by the State, in consultation with 
     the Administrator and the Scientific Advisory Board, and to 
     be paid by the appropriate project sponsor, for each project 
     to be conducted, which amount--
       (A) shall be used to pay--
       (i) costs incurred in removing from the Mine or laboratory 
     equipment or other materials related to the project;
       (ii) claims arising out of or in connection with the 
     project; and
       (iii) if any portion of the amount remains after paying the 
     expenses described in clauses (i) and (ii), other costs 
     described in subsection (c); and
       (B) may, at the discretion of the State, be assessed--
       (i) annually; or
       (ii) in a lump sum as a prerequisite to the approval of the 
     project;
       (3) interest earned on amounts in the Fund, which amount of 
     interest shall be used only for a purpose described in 
     subsection (c); and
       (4) all other funds received and designated by the State 
     for deposit in the Fund.
       (c) Expenditures From Fund.--Amounts in the Fund shall be 
     used only for the purposes of funding--
       (1) waste and hazardous substance removal or remediation, 
     or other environmental cleanup at the Mine;
       (2) removal of equipment and material no longer used, or 
     necessary for use, in conjunction with a project conducted at 
     the laboratory;
       (3) a claim arising out of or in connection with the 
     conducting of such a project;
       (4) purchases of insurance by the State as required under 
     section 107;
       (5) payments for and other costs relating to liability 
     described in section 106; and
       (6) closure of the Mine and laboratory.
       (d) Federal Payments From Fund.--The United States--
       (1) to the extent the United States assumes liability under 
     section 106--
       (A) shall be a beneficiary of the Fund; and
       (B) may direct that amounts in the Fund be applied to pay 
     amounts and costs described in this section; and
       (2) may take action to enforce the right of the United 
     States to receive 1 or more payments from the Fund.
       (e) No Requirement of Deposit of Public Funds.--Nothing in 
     this section requires the State to deposit State funds as a 
     condition of the assumption by the United States of 
     liability, or the relief of the State or Homestake from 
     liability, under section 106.

     SEC. 109. WASTE ROCK MIXING.

       After completion of the conveyance, the State shall obtain 
     the approval of the Administrator before disposing of any 
     material quantity of laboratory waste rock if--
       (1) the disposal site is on land not conveyed under this 
     title; and
       (2) the State determines that the disposal could result in 
     commingling of laboratory waste rock with waste rock disposed 
     of by Homestake before the date of conveyance.

     SEC. 110. REQUIREMENTS FOR OPERATION OF LABORATORY.

       After the conveyance, nothing in this title exempts the 
     laboratory from compliance with any law (including a Federal 
     environmental law).

     SEC. 111. CONTINGENCY.

       This title shall be effective contingent on approval by the 
     National Science Board and the making of an award by the 
     National Science Foundation for the establishment of the 
     laboratory at the Mine.

     SEC. 112. OBLIGATION IN THE EVENT OF NONCONVEYANCE.

       If the conveyance under this title does not occur, any 
     obligation of Homestake relating to the Mine shall be limited 
     to such reclamation or remediation as is required under any 
     applicable law other than this title.

     SEC. 113. PAYMENT AND REIMBURSEMENT OF COSTS.

       The United States may seek payment--
       (1) from the Fund, under section 108(d), to pay or 
     reimburse the United States for amounts payable or 
     liabilities incurred under this title; and
       (2) from available insurance, to pay or reimburse the 
     United States and the Fund for amounts payable or liabilities 
     incurred under this title.

     SEC. 114. CONSENT DECREES.

       Nothing in this title affects any obligation of a party 
     under--
       (1) the 1990 Remedial Action Consent Decree (Civ. No. 90-
     5101 D. S.D.); or
       (2) the 1999 Natural Resource Damage Consent Decree (Civ. 
     Nos. 97-5078 and 97-5100, D. S.D.).

     SEC. 115. AUTHORIZATION OF APPROPRIATIONS.

       There are authorized to be appropriated such sums as are 
     necessary to carry out this title.

     SEC. 116. CONGRESSIONAL BUDGET ACT.

       Notwithstanding Rule 3 of the Budget Scorekeeping 
     Guidelines set forth in the joint explanatory statement of 
     the committee of conference accompanying Conference Report 
     105-217, the provisions of this title that would have been 
     estimated by the Office of Management and Budget as changing 
     direct spending or receipts under section 252 of the Balanced 
     Budget and Emergency Deficit Control Act of 1985 were it 
     included in an Act other than an appropriations Act shall be 
     treated as direct spending or receipts legislation, as 
     appropriate, under section 252 of the Balanced Budget and 
     Emergency Deficit Control Act of 1985, and by the Chairmen of 
     the House and Senate Budget Committees, as appropriate, under 
     the Congressional Budget act.

               TITLE II--GENERAL PROVISION, THIS DIVISION

       Sec. 201. Trustees of the John F. Kennedy Center for the 
     Performing Arts. (a) Membership.--Section 2(a) of the John F. 
     Kennedy Center Act (20 U.S.C. 76h(a)) is amended--
       (1) by striking ``There is hereby'' and inserting the 
     following:
       ``(1) In general.--There is''; and
       (2) by striking the second sentence and inserting the 
     following:
       ``(2) Membership.--The Board shall be composed of--
       ``(A) the Secretary of Health and Human Services;
       ``(B) the Librarian of Congress;
       ``(C) the Secretary of State;

[[Page 27181]]

       ``(D) the Chairman of the Commission of Fine Arts;
       ``(E) the Mayor of the District of Columbia;
       ``(F) the Superintendent of Schools of the District of 
     Columbia;
       ``(G) the Director of the National Park Service;
       ``(H) the Secretary of Education;
       ``(I) the Secretary of the Smithsonian Institution;
       ``(J)(i) the Speaker and the Minority Leader of the House 
     of Representatives;
       ``(ii) the chairman and ranking minority member of the 
     Committee on Public Works and Transportation of the House of 
     Representatives; and
       ``(iii) 3 additional Members of the House of 
     Representatives appointed by the Speaker of the House of 
     Representatives;
       ``(K)(i) the Majority Leader and the Minority Leader of the 
     Senate;
       ``(ii) the chairman and ranking minority member of the 
     Committee on Environment and Public Works of the Senate; and
       ``(iii) 3 additional Members of the Senate appointed by the 
     President of the Senate; and
       ``(L) 36 general trustees, who shall be citizens of the 
     United States, to be appointed in accordance with subsection 
     (b).''.
       (b) Terms of Office for New General Trustees.--Section 2(b) 
     of the John F. Kennedy Center Act (20 U.S.C. 76h(b)) shall 
     apply to each general trustee of the John F. Kennedy Center 
     for the Performing Arts whose position is established by the 
     amendment made by subsection (a)(2) (referred to in this 
     subsection as a ``new general trustee''), except that the 
     initial term of office of each new general trustee shall--
       (1) commence on the date on which the new general trustee 
     is appointed by the President; and
       (2) terminate on September 1, 2007.
       This Act may be cited as the ``Department of Defense and 
     Emergency Supplemental Appropriations for Recovery from and 
     Response to Terrorist Attacks on the United States Act, 
     2002''.
       And the Senate agree to the same.

     For consideration of Division A of the House bill and 
     Division A of the Senate amendment, and modifications 
     committed to conference:
     Jerry Lewis,
     Bill Young,
     Joe Skeen,
     Dave Hobson,
     Henry Bonilla,
     George R. Nethercutt, Jr.,
     Randy ``Duke'' Cunningham,
     Rodney P. Frelinghuysen,
     Todd Tiahrt,
     John P. Murtha,
     Norman D. Dicks,
     Martin Olav Sabo,
     Peter J. Visclosky,
     James P. Moran,
     David R. Obey,
       (except for aircraft leasing),
     For consideration of all other matters of the House bill and 
     other matters of the Senate amendment, and modifications 
     committed to conference:
     Bill Young,
     Jerry Lewis,
     David Obey,
                                Managers on the Part of the House.

     Daniel K. Inouye,
     Ernest F. Hollings,
     Robert C. Byrd,
     Patrick J. Leahy,
     Tom Harkin,
     Byron L. Dorgan,
     Richard J. Durbin,
     Harry Reid,
     Dianne Feinstein,
     Herb Kohl,
     Ted Stevens,
     Thad Cochran,
     Arlen Spector,
     Pete Domenici,
     Christopher Bond,
     Mitch McConnel,
     Ricahrd C. Shelby,
     Judd Gregg,
     Kay Bailey Hutchison, Managers on the Part of the Senate.

                      JOINT EXPLANATORY STATEMENT

       The managers on the part of the House and the Senate at the 
     conference on the disagreeing votes of the two Houses on the 
     amendment of the Senate to the bill (H.R. 3338), making 
     appropriations for the Department of Defense for the fiscal 
     year ending September 30, 2002, and for other purposes, 
     submit the following joint statement to the House and the 
     Senate in explanation of the effect of the action agreed upon 
     by the managers and recommended in the accompanying 
     conference report.
       The conference agreement on the Department of Defense 
     Appropriations Act, 2002, incorporates some of the provisions 
     of both the House and Senate versions of the bill. The 
     language and allocations set forth in House Report 107-298 
     and Senate Report 107-109 should be complied with unless 
     specifically addressed in the accompanying bill and statement 
     of the managers to the contrary.
       Senate Amendment: The Senate deleted the entire House bill 
     after the enacting clause and inserted the Senate bill. The 
     conference agreement includes a revised bill.

              Definition of Program, Project, and Activity

       The conferees agree that for the purposes of the Balanced 
     Budget and Emergency Deficit Control Act of 1985 (Public Law 
     99-177) as amended by the Balanced Budget and Emergency 
     Deficit Control Reaffirmation Act of 1987 (Public Law 100-
     119) and by the Budget Enforcement Act of 1990 (Public Law 
     101-508), the term program, project, and activity for 
     appropriations contained in this Act shall be defined as the 
     most specific level of budget items identified in the 
     Department of Defense Appropriations Act, 2002, the 
     accompanying House and Senate Committee reports, the 
     conference report and accompanying joint explanatory 
     statement of the managers of the Committee of Conference, the 
     related classified annexes and reports, and the P-1 and R-1 
     budget justification documents as subsequently modified by 
     Congressional action. The following exception to the above 
     definition shall apply:
       For the Military Personnel and the Operation and 
     Maintenance accounts, the term ``program, project, and 
     activity'' is defined as the appropriations accounts 
     contained in the Department of Defense Appropriations Act. At 
     the time the President submits his budget for fiscal year 
     2003, the conferees direct the Department of Defense to 
     transmit to the congressional defense committees budget 
     justification documents to be known as the ``M-1'' and ``O-
     1'' which shall identify, at the budget activity, activity 
     group, and subactivity group level, the amount requested by 
     the President to be appropriated to the Department of Defense 
     for operation and maintenance in any budget request, or 
     amended budget request, for fiscal year 2003.

                      TITLE I--MILITARY PERSONNEL

       The conferees agree to the following amounts for the 
     Military Personnel accounts:

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                             Budget         House        Senate      Conference
----------------------------------------------------------------------------------------------------------------
Active Personnel:
    Army................................................    23,626,684    23,336,884    23,446,734    23,752,384
    Navy................................................    19,606,984    19,574,184    19,465,964    19,551,484
    Marine Corps........................................     7,365,040     7,343,640     7,335,370     7,345,340
    Air Force...........................................    20,151,514    19,784,614    20,032,704    19,724,014
Reserve Personnel:
    Army................................................     2,604,197     2,629,197     2,670,197     2,670,197
    Navy................................................     1,643,523     1,644,823     1,650,523     1,654,523
    Marine Corps........................................       463,300       466,800       466,300       471,200
    Air Force...........................................     1,055,160     1,055,160     1,061,160     1,061,160
National Guard Personnel:
    Army................................................     4,014,135     4,004,225     4,052,695     4,041,695
    Air Force...........................................     1,776,744     1,777,654     1,783,744     1,784,654
                                                         -------------------------------------------------------
      Total, Military Personnel.........................    82,307,281    81,617,291    81,965,391    82,056,651
----------------------------------------------------------------------------------------------------------------

                    Personnel Underexecution Savings

       The conferees recommend a total reduction of $313,200,000, 
     instead of $324,200,000 as proposed by the House, to the 
     Active Military Personnel accounts due to lower than budgeted 
     fiscal year 2001 end strengths, and differences in the actual 
     grade mix of officers and enlisted recommended in the budget 
     request. The General Accounting Office estimates that the 
     active components will have fewer personnel on board to begin 
     fiscal year 2002, and as a result, the fiscal year 2002 pay 
     and allowances requirements for personnel are incorrect and 
     the budgets overstated.

                   Permanent Change of Station Moves

       The conferees recommend a total reduction of $180,000,000, 
     instead of $317,000,000 as proposed by the Senate to the 
     active Military Personnel accounts for permanent change of 
     station (PCS) moves. The conferees direct the Secretary of 
     Defense to develop a comprehensive plan to reduce the 
     quantity of PCS moves by 25 percent by the end of fiscal year 
     2004, and to report to the congressional defense committees 
     on that plan no later than May 1, 2002.

[[Page 27182]]



                        Force Structure Changes

       The conferees recommend a total of $88,500,000 in the 
     Military Personnel and Operation and Maintenance accounts for 
     force structure that was not included in the budget request, 
     as follows:

                        [In thousands of dollars]
------------------------------------------------------------------------
                                   Milpers     O&M      Proc.     Total
------------------------------------------------------------------------
Air Force B-52 aircraft.........     2,300    26,000    14,300    42,600
Army Reserve Full-Time Support..    10,000  ........  ........    10,000
Army National Guard Full-Time       24,700    11,200  ........    35,900
 Support........................
------------------------------------------------------------------------


                                               Active End Strength
                                               [Fiscal year 2002]
----------------------------------------------------------------------------------------------------------------
                                                                                                  Conference vs.
                                                                    Budget         Conference         budget
----------------------------------------------------------------------------------------------------------------
Army.........................................................          480,000          480,000  ...............
Navy.........................................................          376,000          376,000  ...............
Marine Corps.................................................          172,600          172,600  ...............
Air Force....................................................          358,800          358,800  ...............
                                                              --------------------------------------------------
      Total, Active Personnel................................        1,387,400        1,387,400  ...............
----------------------------------------------------------------------------------------------------------------


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[[Page 27222]]

                          ARMY REORGANIZATION

       The conferees commend the Secretary of the Army for 
     undertaking a comprehensive review of Army requirements 
     generation, acquisition, resource management, and 
     Departmental headquarters functions and systems. The Center 
     for Naval Analyses study required by the conferees in fiscal 
     year 2001 identified serious management issues that merited 
     careful review and analysis. The Army has taken several 
     promising steps in response to this report to reduce 
     duplication and improve efficiency in the acquisition and 
     headquarters management area, and the conferees are hopeful 
     that the final Army plan will realize the full benefits 
     identified in the CNA analysis. The conferees have included a 
     Provision (Sec. 8149) requiring the Secretary of the Army to 
     submit a final report to the congressional defense committees 
     describing the complete reorganization plan that he intends 
     to implement by no later than April 15, 2002. This report 
     shall describe the final realignments contemplated for all 
     functional areas, and identify the operational efficiencies, 
     personnel realignments and cost savings to be derived from 
     this comprehensive reorganization on an annual basis through 
     fiscal year 2008. The conferees believe the Army also will 
     benefit from a close-out review by the CNA review team to 
     comment on and validate the realignments. Section 8149 calls 
     for a final CNA review to undertake this activity. The 
     conferees view these management reforms as an important step 
     to improve the Army's ability to deliver its bold 
     transformation plan in the timeframe articulated by Army 
     leaders.


                   INNOVATIVE SAFETY MANAGEMENT PILOT

       The conferees recognize that there are initiatives underway 
     in the private sector that dramatically reduce the incidence 
     of workplace injuries and their related costs. The conferees 
     therefore direct the Secretary of the Army to adopt for use 
     in the workplace of civilian employees of the Department of 
     the Army such work safety models used by employers in the 
     private sector that the Secretary considers as being 
     representative of the best work safety practices in use by 
     private sector employers. The conferees recommend an 
     additional $2,500,000 in Operation and Maintenance, Army to 
     begin this initiative in fiscal year 2002.


                       UNUTILIZED PLANT CAPACITY

       The conference agreement provides an additional $17,500,000 
     for industrial preparedness, or unutilized plant capacity, 
     above the funds identified in the budget request. The 
     conferees direct the Army to allocate no less then 
     $25,000,000 above the request for unutilized plant capacity. 
     Of these funds, $7,500,000 shall be available for the Arsenal 
     Support Initiative.


                      ROTC FACILITY REHABILITATION

       The conferees provide an additional $200,000 in Operation 
     and Maintenance, Army only for rehabilitation of the athletic 
     facility used for the joint Husson College and University of 
     Maine ROTC program.


                    ST. LOUIS ARMY AMMUNITION PLANT

       The conferees direct that of the funds provided in 
     Operation and Maintenance, Army, $5,000,000 shall be 
     available only for St. Louis Army Ammunition Plant clean up 
     and disposal costs.


                             OTHER PROGRAMS

       The conferees agree to provide funds for the Expert Radar 
     Signature Solutions in the appropriate Research, Development, 
     Test and Evaluation account.
       The conferees agree that funds provided for language 
     training programs should be used to meet critical advanced 
     language training requirements.

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                         ship depot maintenance

       The conferees are aware that the ship depot maintenance 
     account has been underfunded in recent years. This 
     underfunding was caused by several factors, including a 
     deficient calculation that understated the requirement, 
     underfunding of the requirement which was identified, and the 
     added costs associated with high deployment levels. The 
     conferees applaud the Navy's efforts to revise the 
     maintenance calculation to more adequately reflect the real 
     requirement, and to fully fund maintenance in the future. The 
     conferees recognize, however, that the FY02 budget lacks the 
     necessary funds to implement them. The conferees expect that 
     for FY03 and future years the Navy will implement the revised 
     maintenance calculations to properly align depot maintenance 
     requirements and necessary funding. The conferees direct the 
     Secretary of the Navy to provide with the FY03 budget 
     submission a plan to eliminate the maintenance backlog that 
     has accumulated as a result of previous underfunding.


                  manual reverse osmosis desalinators

       The Committee has provided an additional $1,000,000 for the 
     refurbishment of Manual Reverse Osmosis Desalinators (MROD). 
     Of the additional funds provided, $500,000 is to be used for 
     Navy surface fleet MROD refurbishment, and $500,000 is to be 
     used for Navy Aviation MROD refurbishment.


                              point molate

       In view of the public safety and historic preservation 
     issues involved, the conferees believe the Navy should 
     continue the level of effort it provided in FY 2001 in 
     carrying out its joint caretaker responsibilities for the 
     base at Point Molate while it is being prepared for 
     conveyance. The conferees expect the Naval Facilities 
     Engineering Command and the City of Richmond, CA to operate 
     under similar terms and conditions as agreed to in their 
     Cooperative Agreement through the balance of fiscal year 
     2002.

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                   CONTAMINANT AIR PROCESSING SYSTEMS

       The conferees commend the Secretary of the Air Force for 
     standardizing mission critical equipment that allows Air 
     Force personnel to be effectively processed after contact 
     with biological, chemical or nuclear agents. The conferees 
     instruct the Secretary to use $1,000,000 within available 
     funds to enable installations to purchase contaminant air 
     processing systems and related components to ensure all Air 
     Force installations are standardized in this methodology and 
     equipment.


                         INTERNATIONAL SUPPORT

       The conferees are pleased with efforts and progress made in 
     programs funded in the Air Force subactivity group for 
     International Support. The conferees are aware that these 
     funds support U.S. Central Command's military contacts with 
     Central Asian States. The conferees encourage continued 
     progress in the Cooperative Defense Initiative that is 
     underway to assess the ability of regional partners to 
     respond to chemical or biological attacks. Funding reductions 
     in this line to limit overall growth are not punitive in 
     nature, and the Secretary of the Air Force is encouraged to 
     support this worthy program.


                             OTHER PROGRAMS

       The conferees agree to reduce U-2 operation and maintenance 
     (O&M) funding by $3,000,000 due to availability of funds in 
     the appropriate Research, Development, Test and Evaluation 
     account and recommends that these funds be transferred to O&M 
     to offset this reduction.
       The conferees agree to provide an additional $1,500,000 for 
     the Threat Representation and Validation project and an 
     additional $2,500,000 for operation of the Eagle Vision 
     System for the Air National Guard.

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                     Biofuels and Biobased Products

       With the heavy Department of Defense reliance on gasoline 
     and diesel fuels derived from foreign oil production, the 
     conferees agree that it is important for the Department to 
     investigate new ways to increase the usage of alternative 
     domestically produced fuels, including biofuels and biobased 
     products. The conferees direct the Department to submit a 
     report to the congressional defense committees by March 15, 
     2002 detailing its best estimates of: (1) the total annual 
     volume and cost of fuels of fuels by fuel type (gasoline, 
     diesel, ethanol, biodiesel, methanol, and other) used by the 
     Department, and the country source of these fuels; (2) a 
     description of the procedures in place to procure 
     domestically produced alternative fuels; (3) a description of 
     the procedures in place to encourage the procurement of 
     flexible fuel vehicles, such as those equipped with E-85 (85% 
     ethanol) engines; (4) an explanation of changes to programs, 
     plans, or procedures under consideration by the Department to 
     maximize the use of biofuels and biobased products in DoD 
     operations; (5) a description of practices and procedures to 
     track the actual DoD usage of biofuels; and (6) a description 
     of possible incentives the DoD could employ to increase the 
     acquisition of alternative or variable fuel vehicles and 
     encourage the use of such fuels as specified by the National 
     Environmental Policy Act. The conferees also direct the 
     Department to work with the Office of Energy Policy and New 
     Uses of the U.S. Department of Agriculture to support 
     independent testing of biofuels and biobased products. The 
     Department should also cooperate with industry suppliers to 
     facilitate inclusion of such biofuels and biobased products 
     on the Defense Logistics Agency list of items approved for 
     DoD purchase.

                    Defense Threat Reduction Agency

       Funding for the Operation and Maintenance activities of the 
     Defense Threat Reduction Agency were provided for in Title IX 
     of the House bill and report. These funds are provided in 
     Title II of the Conference Report.

                                 DLAMP

       The conferees recommend a reduction to the Defense 
     Leadership and Management Program for overhead costs and 
     backfills.

               National Foreign Language Skills Registry

       The Conferees direct the Secretary of Defense to establish 
     an internet-based data registry of United States citizens who 
     state that they are willing to be recruited in times of 
     national emergency to assist the Department with translation 
     and interpretation. The Secretary shall designate the foreign 
     languages and levels of fluency deemed to be critical to the 
     needs of the Department. The Director, Defense Manpower Data 
     Center shall maintain the registry. In implementing this 
     registry, the Director may collaborate with the National 
     Foreign language Center and the Defense Language Institute.

   Study on Intelligence Capabilities and Data Resources Integration

       To enhance intelligence gathering capabilities and data 
     resource integration following the events of September 11, 
     2001, the conferees recommend an increase of $5,000,000 for 
     preparing a management action plan to assess how measurement 
     and signature intelligence can be integrated with other 
     intelligence activities and data. The goal of this plan 
     should be to improve support for warfighter operations and 
     policy decision-making. A primary focus of this study should 
     be to complete the concept development and associated 
     operations and design requirements for a measurement and 
     signature intelligence data archive to provide back-up 
     capability and enabling cross-disciplinary integration of 
     distributed data. The study should consider all shortfalls in 
     MASINT capabilities and their integration. The conferees 
     direct the Assistant Secretary of Defense for Command, 
     Control, Communications, and Intelligence to provide to the 
     congressional defense committees an interim report containing 
     an outline of the content and expected milestones this study 
     no later than 45 days after enactment of this Act and a final 
     report no later than June 1, 2002.

                    Base Communications Sustainment

       The conferees recommend a reduction in base communications 
     sustainment and reiterate the Senate position that more focus 
     must be placed on funding deployable and mobile 
     communications requirements, rather than placing such items 
     on unfunded lists. The conferees provide an additional 
     $3,000,000 for AN/PRC-148 Multi-band Intra/Inter Team Radios 
     in Procurement, Defense Wide which is the number one unfunded 
     requirement for Special Operations units in the field.

                Assistance to Local Educational Agencies

       The conferees direct that of the funds provided in 
     ``Operation and Maintenance, Defense-Wide'' for the Impact 
     Aid program, $1,000,000 be available only for the purpose of 
     making payments to local educational agencies to assist them 
     in adjusting to reductions in the number of military 
     dependent students as a result of the closure or realignment 
     of military installations. 

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[[Page 27252]]

                    Adjustments to Budget Activities

       Adjustments to the budget activities are as follows:

                       [In thousands of dollars]

Budget Activity 1: Operating Forces:
  24900  Primary Combat Forces/Unjustified Program Growth........-6,000
Undistributed:
  25670  C-17 Reserve Base Planning and Design....................1,000

                   Air Force Reserve Airlift Planning

       The conferees support the creation of an Air Reserve 
     Station or Stations for C-17's and provide $1,000,000 for 
     planning and site assessment.

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                        Camp McCain, Mississippi

       The conferees agree to provide $2,200,000 for improvements 
     to roads at or near the Camp McCain training site. In 
     addition, of the funds provided to the Army National Guard 
     for operation and maintenance, $2,200,000, shall be available 
     for minor construction projects.

                  Center for Civil-Military Relations

       The conferees direct that of the funds provided in 
     Operation and Maintenance, Army National Guard $2,000,000 be 
     used only for National Guard education programs at the Naval 
     Postgraduate School's Center for Civil-Military Relations.

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[[Page 27258]]

                    Adjustments to Budget Activities

       Adjustments to the budget activities are as follows:

                       [In thousands of dollars]

Budget Activity 1: Operating Forces:
  27650  Aircraft Operations/B-1B Operations....................100,000
  27750  Base Support/Eagle Vision................................8,500
Undistributed:
  28240  National Guard State Partnership Program.................1,000
  28250  Project Alert............................................2,900
  28255  Extended Cold Weather Clothing System....................2,500
  28310  Defense System Evaluation................................1,700
  28315  Bangor International Airport Runway Repairs..............5,000

          Consolidated Interactive Virtual Information Center

       The conferees agree to provide $5,000,000 from within 
     available funds in ``Operation and Maintenance, Air National 
     Guard'' for the Consolidated Interactive Virtual Information 
     Center of the National Guard.

             Overseas Contingency Operations Transfer Fund

       The conferees agree to provide $50,000,000 for the Overseas 
     Contingency Operations Transfer Fund. This amount provides a 
     central response fund from which the Secretary of Defense can 
     address unknown and unexpected overseas contingency costs. In 
     the budget request, the Department allocated the costs for 
     ongoing operations in Southwest Asia to service operation and 
     maintenance accounts. Consistent with this determination, the 
     conferees are providing $1,679,222,000 for Balkan operations 
     within the operation and maintenance accounts (Operation and 
     Maintenance, Army $1,308,500,000; Operation and Maintenance, 
     Navy $27,101,000; Operation and Maintenance, Marine Corps 
     $2,000,000; Operation and Maintenance, Air Force 
     $122,721,000; Operation and Maintenance, Defense-Wide 
     $192,900,000 and Defense Health Program $26,000,000). OCOTF 
     funds for military personnel expenses for Balkan operations 
     ($464,900,000) have been redistributed within service 
     accounts of the active components as well (Military 
     Personnel, Army $399,800,000; Military Personnel, Navy 
     $28,500; Military Personnel, Marine Corps $5,600,000; and 
     Military Personnel, Air Force $31,000,000).
       The total amount recommended is a reduction of $650,104,000 
     below the budget request.

          United States Court of Appeals for the Armed Forces

       The conference agreement provides $9,096,000 for the United 
     States Court of Appeals for the Armed Forces.

                    Environmental Restoration, Army

       The conference agreement provides $389,800,000 for 
     Environmental Restoration, Army.

                    Environmental Restoration, Navy

       The conference agreement provides $257,517,000 for 
     Environmental Restoration, Navy.

                  Environmental Restoration, Air Force

       The conference agreement provides $385,437,000 for 
     Environmental Restoration, Air Force.

                Environmental Restoration, Defense-Wide

       The conference agreement provides $23,492,000 for 
     Environmental Restoration, Defense-Wide.

         Environmental Restoration, Formerly Used Defense Sites

       The conference agreement provides $222,255,000 for 
     Environmental Restoration, Formerly Used Defense Sites.

             Overseas Humanitarian, Disaster, and Civic Aid

       The conference agreement provides $49,700,000 for Overseas 
     Humanitarian, Disaster and Civic Aid.
        The conferees agree to provide $5,000,000 to be available 
     if matched by private funds, only for the acquisition, 
     transportation and distribution of wheelchairs to victims of 
     overseas conflicts, landmines and other disturbances. The 
     Secretary of Defense should work with appropriate non-
     government organizations, such as the Wheelchair Foundation, 
     to implement this initiative on a matching basis with private 
     resources. The conferees expect special attention and 
     emphasis to be made to respond to the need and circumstances 
     in Afghanistan as rapidly as possible.

        Support for International Sporting Competitions, Defense

       The conference agreement provides $15,800,000 for the 
     Support for International Sporting Competitions, Defense 
     account.

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[[Page 27289]]

                    Tactical Unmanned Aerial Vehicle

       The House recommended $63,000,000 for the TUAV, a reduction 
     of $21,000,000 from the budget request. The House included 
     language directing that funds provided for the low-rate 
     initial production (LRIP) III of the TUAV may not be 
     obligated or expended until the TUAV successfully completes 
     the planned AEC assessment the Fall/Winter of 2001 and the 
     Secretary of the Army certifies that the TUAV has been 
     adequately tested and justifies the initiation of the LRIP 
     III prior to the completion of initial operational test and 
     evaluation. The Senate recommended $48,500,000 for the TUAV, 
     a reduction of $35,800,000 from the budget request. The 
     Senate included language stating that the system's viability 
     should be validated prior to procurement of additional units. 
     The conferees recommended $57,300,000 for the TUAV, a 
     reduction of $27,000,000 from the budget request. The 
     conferees agree that the language contained in both the House 
     and Senate reports conveys the same concerns and should be 
     implemented by the Army.

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[[Page 27333]]

                  SBIRS High Radiation Hardened Parts

       The conferees are very troubled by recent developments in 
     the SBIRS High program. DoD and Air Force officials have 
     provided new indications that the previously reported 
     $2,000,000,000 shortfall and 2 year slip may, in fact, 
     understate the severity of the problems. Not only is DoD 
     considering a variety of major program restructures, but it 
     is also considering whole new satellite approaches.
       The conferees are also aware of the issue of diminished 
     manufacturing sources for selected radiation hardened parts 
     in the current SBIRS High design. The Air Force has requested 
     that funds be retained in advance procurement for a 
     ``lifetime buy'' of these parts. The conferees are 
     sympathetic to the issues involved with this request but 
     given the unclear status of the program, it is premature to 
     make a definitive judgment with respect to funding these 
     parts. The conferees encourage DoD, once it has determined 
     how best to proceed with the program, to submit a 
     reprogramming request to fund these parts as needed at that 
     time.

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[[Page 27349]]

                               TELEPORTS

       The conferees provide $97,351,000 for teleports, however, 
     only 429,200,000 of the funds provided are available for 
     obligation until (the service chiefs unanimously agree on a 
     procurement plan. DISA shall not obligate any amount of funds 
     over $29,200,000 until the agreed upon plan is provided to 
     the Congress.


                     PATRIOT ADVANCED CAPABILITY--3

       The Conferees agree to provide $736,574,000 for the PATRIOT 
     Advanced Capability--3 (PAC-3), an increase of $60,000,000 to 
     the program. The increase includes $15,000,000 for the 
     efficient purchase of hard to acquire parts, eliminating the 
     need for a near term redesign of the missile. It also 
     includes $45,000,000 available either to purchase additional 
     missiles in fiscal year 2002 or for additional equipment for 
     the production facility. The Conferees encourage the 
     Department to increase production of this missile in an 
     efficient but prudent manner and direct the Department to 
     ensure that enough funds are in the Future Years Defense Plan 
     to begin purchasing at least 20 missiles a month as soon as 
     possible.

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[[Page 27352]]

                        miscellaneous equipment

       The conferees agree that each of the Chiefs of the Reserve 
     and National Guard components should exercise control of 
     modernization funds provided in this account including 
     aircraft and aircraft modernization. The conferees further 
     agree that separate submissions of a detailed assessment of 
     its modernization priorities by the component commanders is 
     required to be submitted to the defense committees. The 
     conferees expect the component commanders to give priority 
     consideration tot he following items: AN/AAQ-24 directional 
     Infrared Countermeasure (DIRCM), C-130 Radar Modernization, 
     Guard Net XXI, Integrated Training Management Program, Family 
     of Medium Tactical Vehicles, Commercial Construction 
     Equipment, Project ALERT, the Striker Advanced Grenade 
     Launcher, advanced display processor, and F-15 IFF for ANG 
     NORAD alert mission aircraft.

                  National Guard and Reserve Aircraft

       The conferees agree to provide $436,030,000 specifically 
     for the acquisition and modernization of the following 
     aircraft to support Reserve and National Guard missions:

UH-60 Blackhawk for the Army Reserve (6)....................$87,000,000
UH-60 Blackhawk for the Army Guard (4)......................58,000,0900
C-130J for the Air Force Reserve (1).........................71,300,000
C-130J for the Air Force National Guard, western states firefighting 
  (2).......................................................148,430,000
C-130J for the Air Force National Guard (1)..................71,300,000

                         Defense Production Act

       The conferees agree to provide a total of $40,000,000 for 
     the Defense Production Act, a decrease of $10,000,000 from 
     the budget request amount. Of this amount $2,000,000 is only 
     for a Processible Rigid-Rod Polymeric Material Supplier 
     Initiative.

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[[Page 27373]]

       Army Venture Capital Science and Technology Demonstration

       The conferees agree with the concept, as proposed in the 
     House passed Department of Defense Appropriations bill for 
     fiscal year 2002, of establishing a Venture Capital fund 
     demonstration to enhance Army access to advances in science 
     and technology. Accordingly, the conferees have included a 
     general provision, Sec., 8150 that provides $25,000,000 for 
     the formation of such a corporation pursuant to authority of 
     10 U.S.C. 2371.

                     Hybrid Electric Drive Research

       The conferees agree to fully fund the Army's request for 
     Combat Hybrid Power Systems (PE 603005/441), an amount of 
     $18,000,000. These funds should be used to accelerate the 
     development of critical hybrid electric technology components 
     and integration into FCS ground vehicles. These funds also 
     should be applied to development of hybrid electric 
     architectures for combat vehicles. The conferees direct the 
     Secretary of the Army to provide to the congressional defense 
     committees a report detailing the Army's plan for 
     implementing this direction with the submission of the fiscal 
     year 2003 Department of Defense budget request.
       Though the conferees are encouraged by recent developments 
     in the area of hybrid electric drive, there is concern that 
     the Army has not performed adequate testing and evaluation of 
     hybrid electric technology in extreme temperature 
     environments. In particular, the conferees are concerned that 
     the sources necessary to ensure stable, consistent and 
     adequate power to the overall system have not been developed 
     and tested in extreme cold-weather environments. Therefore, 
     the conferees recommend that the Army conduct testing of 
     hybrid electric technology, including the power sources 
     associated with the technology, in extreme cold weather 
     environments to ensure adequate power and performance to this 
     critical technology.

                  Starstreak-Stinger Operational Test

       The conferees agree to provide an additional $13,600,000 
     for the Starstreak-Stinger operational test program. Of this 
     amount, $12,000,000 should be used to conduct the live-fire, 
     side-by-side operational test of the Starstreak and Stinger 
     missile for the Apache helicopter. The remainder should be 
     made available to conduct test firing from the Apache against 
     ground targets.

        Army High Performance Computing Research Center (AHPCRC)

       The conferees have added $10,500,000 for the activities of 
     the Army High Performance Computing Research Center. Of these 
     funds, $2,000,000 is only for basic research at the Center's 
     academic partner institutions; and $8,500,000 is only for (1) 
     the use, operation and maintenance of the Center's high 
     performance computing systems and networks; (2) staff 
     scientist services to support Army research activities; (3) 
     technology exchange programs with Army laboratories, outreach 
     and education programs; and (4) management activities of the 
     research program and center, including publications, seminars 
     and workshops.

                          Domed Housing Units

       From within funds made available in Research, Development, 
     Test and Evaluation, Army, the conferees direct that the 
     Commanding General of the Army Space and Missile Defense 
     Command acquire and maintain domed housing units for military 
     personnel on Kwajalein Atoll and other island locations in 
     support of the mission of the command.

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[[Page 27392]]

                                CCS-MK2

       The conferees agree that it is vital that the future 
     development and evolution of combat control capabilities for 
     the nation's submarine force takes place in a fully 
     competitive acquisition environment and that the technical 
     architecture of submarine combat control systems utilizes 
     open systems compute processing standards. The conferees 
     therefore, direct the Department of the Navy to submit an 
     acquisition plan for the CCS-MK2 program to Congress no later 
     than April 15th, 2002 which addresses these concerns to 
     include potential options to compete the role of prime system 
     integrator. The conferees do not agree to House language 
     restricting the use of funds for the CCS-MK2 program.

                         Joint Experimentation

       The conferees agree to provide $103,802,000 for Joint 
     Experimentation, a decrease of $15,000,000 to the budget 
     request. The conferees also direct the Secretary of Defense 
     to provide a report to the Appropriations Committees no later 
     than May 15, 2002 which examines whether the Office of the 
     Director, Force Transformation should assume responsibility 
     for the oversight and funding of the direction, preparation, 
     execution and assessment of the U.S. Joint Forces Command 
     Joint Experimentation program.

      Tactical Input Segment (TIS) and Navy Input Station (NAVIS)

       In an effort to assist the Navy in ensuring an on-time 
     delivery of a next generation real-time reconnaissance 
     imagery receiving and display system, the conferees recommend 
     that within amounts appropriated to the Office of Naval 
     Research, up to $2,000,000 may be made available to build 
     additional Navy Input Stations (NAVIS) ground stations that 
     meet emergent operational requirements and provide risk 
     mitigation for the Tactical Input Segment (TIS).
       In addition, the conferees direct the Navy to continue to 
     integrate the technologies developed in NAVIS into the TIS 
     architecture to ensure the best capabilities of both systems 
     are delivered to the Fleet in time for the first F/A-18 SHARP 
     deployment. The conferees believe that combining such 
     technologies will best serve the tactical precision strike 
     requirements for the Navy now and in the future.

                        Spray Cooling Technology

       The Conferees are concerned to learn that despite 
     appropriations in two prior years, arrangements for the 
     manufacture of spray cooling technology have yet to be 
     finalized. The conferees direct the Marine Corps to act in an 
     expedited manner to resolve this issue.

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[[Page 27432]]

                       Ballistic Missile Defense

       The conferees agree to provide a total of $7,766,999,000 
     for ballistic missile defense research and development and 
     related procurement activities. Coupled with increases for 
     new and expanded counter-terrorism programs, the conference 
     agreement provides a combined total of $8,244,999,000 for 
     ballistic missile defense and increased counter-terrorism 
     activities.
       The Department of Defense is about to initiate a radical 
     restructuring of the ballistic missile defense program 
     management organization. The conferees support the efforts of 
     the Department to devise a management structure that 
     facilitates integration of the various ballistic missile 
     defense research and development efforts. The Department, 
     however, is cautioned against implementing a management 
     structure and related decision-making process that limit 
     adequate oversight of the program by the Pentagon's 
     operational testing, financial, and programmatic review 
     groups. Also, the conferees will continue to monitor this 
     program's management activities to ensure Congressional 
     oversight.
       Within each program element, the conferees have identified 
     several special interest projects for purposes of 
     reprogramming and budget justification material. (The 
     conferees agree with the House language regarding 
     reprogramming rules and budget justification material for 
     ballistic missile defense programs.) The special interest 
     projects are as follows:
       Terminal Phase Systems: MEADS and ARROW;
       Midcourse Phase Systems: Ground-based Midcourse, Pacific 
     Test Bed, and Sea-based Midcourse (Navy Theater Wide);
       Boost Phase Systems: Sea-based Boost, Air-base Boost 
     (Airborne Laser) and Space-based Boost (Space based Laser);
       Sensors: Satellite Sensor Technology and RAMOS.

                   Theater High Altitude Area Defense

       The conferees agree to provide $872,481,000 for the Theater 
     High Altitude Area Defense (THAAD) program, a reduction of 
     $50,000,000 to the request. This amount includes $160,000,000 
     for the Block 2004 THAAD research and development program. 
     The Block 2004 funds should be used to reduce risk in the 
     THAAD research and development program and acquire a 
     sufficient number of test assets to ensure a robust testing 
     profile. Further, the conferees direct that none of the funds 
     provided be used to accelerate THAAD pre-production or 
     deployment unless the Secretary of Defense certifies to the 
     Congressional defense committees that threats to our national 
     security or military forces warrant otherwise.

                      Satellite Sensor Technology

       The conferees agree with House funding recommendations 
     regarding SBIRS Low and the Satellite Sensor Technology 
     program. This agreement is based, in part, on discussions 
     with the Undersecretary of Defense (AT&L) who indicated that 
     the problems in the precursor SBIRS High program are so 
     significant as to make the current schedule for SBIRS Low 
     unexecutable. The conference agreement allows BMDO to step 
     off the acquisition track to place greater emphasis on risk 
     reduction and maturation of new technologies. These efforts, 
     to be performed within the Satellite Sensor Technology 
     program, should proceed at a measured pace. The conferees 
     note that this agreement in no way precludes continued 
     technology efforts on the current SBIRS Low program. The 
     conferees agree that the Secretary may obligate the funding 
     provided for the Satellite Sensor Technology program as he 
     determines necessary for the SBIRS Low program. The conferees 
     direct DoD to develop specific plans for the Satellite Sensor 
     Technology program for fiscal year 2002 and out and provide 
     this plan to the congressional defense committees no later 
     than May 15, 2002. The conferees further direct that the 
     congressional defense committees be notified of any funding 
     realignments regarding this program.


                     radiation hardened electronics

       The conferees support the House language regarding 
     radiation hardened electronics, except that they direct that 
     not less than $14,500,000 in program element 602715BR and 
     $38,000,000 provided in ``Domestic Radiation Hardened 
     Electronics'' in the Defense Production Act be used for the 
     purpose described in the House report.


                      miniaturized wireless system

       The conferees agree to provide $5,000,000 for miniaturized 
     wireless systems and agree that these funds be used only to 
     initiate a university-industry program to utilize advances in 
     three-dimensional chip scale packaging and high temperature 
     superconducting transceiver performance, to reduce the size, 
     weight, power consumption and cost of advanced wireless 
     communication systems for covert military and intelligence 
     operations.


   challenge program for innovative technology in defense acquisition

       The conferees support the actions taken by the Department 
     in response to section 818 of the Strom Thurmond National 
     Defense Authorization Act for Fiscal Year 1999 (Public Law 
     105-261) and the initial improvements made in facilitating 
     the rapid transition into Defense acquisition programs of 
     technologies developed in successful Small Business 
     Innovative Research (SBIR) phase two projects. The conferees 
     provide $12,500,000 only for the further development and 
     rapid insertion of innovative SBIR technologies as 
     competitive alternatives to Defense acquisition program 
     technologies. The Secretary of Defense shall select from 
     third phase SBIR proposals, which will result in improvements 
     in performance, affordability, manufacturability, or 
     operational capability at the component, subsystem, or system 
     level. The Secretary shall report to the Defense Committees 
     the technologies selected and the improvements expected by 
     June 1, 2001. In addition, the conferees direct the Office of 
     the Secretary of Defense to work with the congressional 
     defense committees to establish a more rigorous management 
     and oversight structure of the burgeoning number of rapid 
     acquisition programs within the Department. The conferees 
     expect this management and oversight structure to be 
     reflected in the fiscal year 2003 Defense budget request.

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[[Page 27435]]

                    implementing dsb recommendations

       The President's budget requests $1,000,000 to implement 
     Defense Science Board recommendations. While the Congress 
     does not oppose such an effort, resources should be found 
     from within existing funds.

                TITLE V--REVOLVING AND MANAGEMENT FUNDS

       The conference agreement is as follows:

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                    Budget          House            Senate         Conference
----------------------------------------------------------------------------------------------------------------
Defense Working Capital Funds...............        1,951,986        1,826,986        1,826,986        1,312,986
Nation Defense Sealift Fund.................          506,408          412,708          407,408          432,408
                                             -------------------------------------------------------------------
      Total, Related Agencies...............        2,458,394        1,937,694        2,234,394        1,745,394
----------------------------------------------------------------------------------------------------------------

                     Defense Working Capital Funds

       The conferees agree to provide $1,312,986,000 for the 
     Defense Working Capital Fund.


                     NATIONAL DEFENSE SEALIFT FUND

       The Conferees agree to provide to $432,408,000 for the 
     National Defense Sealift Fund, a decrease of $74,000,000 from 
     the budget request amount. This includes a reduction of 
     $99,000,000 originally requested for MARAD and an increase of 
     $25,000,000 to finance the cost of constructing additional 
     sealift capacity.


                       Strategic Sealift Capacity

       The conference agreement reserves $25,000,000 of amounts 
     appropriated to the National Defense Sealift Fund to 
     accelerate the introduction of next-generation high-speed 
     sealift ships to support the Navy's global military sealift 
     requirements. The conferees expect the Navy to work with 
     other federal agencies using interagency agreements, economy 
     act procedures, or other mechanisms to provide loan 
     guarantees to shipbuilders to meet this objective. These 
     funds may not be used for research and development, or for 
     defense-features on commercial sealift ships.


                        Mobile Deployable Assets

       In the wake of the tragic events of September 11, 2001, the 
     conferees are concerned that future deployments of United 
     States forces may expose personnel to the risk of terrorist 
     attach similar to the bombing of Khobar Towers in Saudi 
     Arabia and the Marine barracks in Beirut. Instead of building 
     vulnerable fixed barracks for United States forces deployed 
     in highly dangerous locations, the conferees believe the Navy 
     should give the highest consideration to acquiring mobile, 
     deployable assets, which could provide additional ``in situ'' 
     hospital, housing, MWR, or command and control capability. 
     The conferees recommend that the Navy expeditiously pursue 
     the possibility of capitalizing MARAD loan guarantees for up 
     to two multipurpose passenger ships presently under 
     construction in a United States shipyard.

             TITLE VI--OTHER DEPARTMENT OF DEFENSE PROGRAMS

       The conference agreement is as follows:

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                    Budget          House            Senate         Conference
----------------------------------------------------------------------------------------------------------------
Defense Working Program.....................       17,898,969       18,277,403       18,376,404       18,391,194
Chemical Agents and Munitions Destruction,          1,153,557        1,093,057        1,104,557        1,105,557
 Army.......................................
Drug Interdiction and Counter Drug                    820,381          827,381          865,981          842,581
 Activities, Defense........................
Office of the Inspector General.............          152,021          152,021          152,021          152,021
                                             -------------------------------------------------------------------
      Total, Other Department of Defense           20,024,928       20,349,862       20,498,963       20,491,353
       Programs.............................
----------------------------------------------------------------------------------------------------------------


[[Page 27436]]

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[[Page 27437]]

[GRAPHIC] [TIFF OMITTED] TH19DE01.244


[[Page 27438]]

[GRAPHIC] [TIFF OMITTED] TH19DE01.245

 
[[Page 27439]]

                             Reprogramming

       The conferees share the concerns expressed in the report 
     accompanying the House version of the Department of Defense 
     Appropriations bill for fiscal year 2002 regarding the 
     diversion of funds from the DoD military medical facilities 
     (MTFs) to pay for contractor-provided medical care. To limit 
     such transfers within the Defense Health Program operation 
     and maintenance account, the conferees agree that the 
     Department of Defense shall follow prior approval 
     reprogramming procedures for transfers with a cumulative 
     value in excess of $25,000,000, into the Private Sector Care 
     activity group.
       In addition, the conferees agree that the Department of 
     Defense shall provide budget execution data for all of the 
     operation and maintenance budget activities as well as the 
     procurement and research, development, test and evaluation 
     accounts of the Defense Health Program. Such budget execution 
     data shall be provided quarterly to the congressional defense 
     committees through the DD-COMP(M) 1002.

                 Peer Reviewed Medical Research Program

       The Senate recommended $50,000,000 for a Peer Reviewed 
     Medical Research program. The conferees agree to provide 
     $50,000,000 for this program, and recommend that the 
     Department of Defense consider the following projects as 
     candidates for study: Complex rAD-Vector vaccine for MGBV; 
     chemo-preventative approaches to smoking related illness; 
     childhood asthma; chiropractic care; closed loop frozen blood 
     processing systems; Counter Narcotics Tactical Operations 
     Medical Support Program (CONTOMS); Dengue Fever vaccine; high 
     risk infectious disease; medications for fungal and bacterial 
     infections such as Fungi Free; metabolically engineered 
     tissue for trauma care; military nutrition research; Padget's 
     disease; pre-clinical & clinical activities of the Novonex/
     Ex-Rad drugs; radiation protection; real-time heart rate 
     variability; self test methods of screening for cervical 
     cancer; smoking cessation; social work research; Traumatic 
     Brain injury; Volume Angio Cat (VAC) research, and VRE 
     research.

                   Tricare: Next Generation Contracts

       The conferees are aware that the Department of Defense is 
     presently considering the issuance of new requirements for 
     future TRICARE managed care contracts. A major revision under 
     consideration is the prospect of ``unbundling'' healthcare 
     and administrative services and using different contractors 
     with different geographic coverage responsibilities. While 
     the conferees support DoD efforts to improve and streamline 
     the provision of healthcare services, the conferees note that 
     the Department's deliberations have caused great concern 
     among health care providers and, if not managed carefully and 
     thoughtfully, could reignite the instability and confusion 
     that has existed in the past years as this program was being 
     implemented. Accordingly, the conferees direct that before 
     any proposals for significant structural changes to the 
     TRICARE managed care contract are made public, that the 
     Assistant Secretary of Defense (Health Affairs) solicit the 
     views of the congressional defense committees. The conferees 
     also direct the Department to allow sufficient time for full 
     congressional review before any final decisions are made in 
     this respect.

            CHEMICAL AGENTS AND MUNITIONS DESTRUCTION, ARMY

       The conference agreement on items addressed by either the 
     House or the Senate is as follows:

----------------------------------------------------------------------------------------------------------------
 
----------------------------------------------------------------------------------------------------------------
CHEM AGENTS & MUNITIONS DESTRUCTION, ARMY:
    CHEM DEMILITARIZATION--O&M..............................      789,020      728,520      739,020      739,020
    CHEM DEMILITARIZATION--PROC.............................      164,158      164,158      164,158      164,158
    CHEM DEMILITARIZATION--RDTE.............................      200,379      200,379      201,379      202,379
                                                             ---------------------------------------------------
      TOTAL, CHEM AGENTS & MUNITIONS DESTRUCTION, ARMY......    1,153,557    1,093,057    1,104,557    1,105,557
----------------------------------------------------------------------------------------------------------------


[[Page 27440]]

[GRAPHIC] [TIFF OMITTED] TH19DE01.246

 
[[Page 27441]]

             Program Manager for Chemical Demilitarization

       The conferees support the guidance provided in the Senate 
     report under this heading with two changes. The conferees 
     agree that for the quarterly report the Department may use an 
     existing report provided it includes the data requested and 
     is available within 14 days of the end of each quarter. In 
     addition, there is no requirement for a restructuring report. 
     All other direction, including the January 15th report and 
     the language regarding incentive programs remains as written.

                 Anniston Chemical Destruction Facility

       The conferees share the Senate's concern regarding 
     emergency preparedness measures at the Anniston Chemical 
     Destruction Facility. In lieu of the language in the Senate 
     report, the conferees support the current agreement 
     established by the Department, FEMA, and state and local 
     officials, concerning the commencement of destruction 
     operations and critical safety matters, as stated in the 
     letter from the Under Secretary of Defense (AT&L) dated 
     November 1, 2001.

         DRUG INTERDICTION AND COUNTER-DRUG ACTIVITIES, DEFENSE

       The conference agreement on items addressed by either the 
     House or the Senate is as follows:

[[Page 27442]]

     [GRAPHIC] [TIFF OMITTED] TH19DE01.247
     
      

[[Page 27443]]

                       National Guard Activities

       The conferees agree that adequate funding has not been 
     provided to meet National Guard counter-drug requirements and 
     have recommended an increase of $33,000,000 in this account 
     for a number of specific National Guard activities. In view 
     of this increase the conferees do not agree with the Senate 
     proposed direction for a general earmark of funds for the 
     National Guard.

                    Office of the Inspector General

       The conferees agree to provide $152,021,000 for the Office 
     of the Inspector General. Of this amount $150,221,000 shall 
     be for operation and maintenance and $1,800,000 shall be for 
     procurement.

                      TITLE VII--RELATED AGENCIES

       The conference agreement is as follows:

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                   Budget           House            Senate         Conference
----------------------------------------------------------------------------------------------------------------
Central Intelligence Agency Retirement &              212,000          212,000          212,000          212,000
 Disability System..........................
Intelligence Community Management Account...          152,776          144,929          144,776          160,429
Payment to Kaho'olawe Island Conveyance,               25,000           25,000           75,000           67,500
 Remediation, and Environmental Restoration
 Fund.......................................
National Security Education Trust Fund......            8,000            8,000            8,000            8,000
                                             -------------------------------------------------------------------
      Total, Related Agencies...............          397,776          389,929          439,776      

                        Office of Administration


                         Salaries and Expenses

       The conferees agree to provide $50,040,000 for emergency 
     expenses of the Office of Administration, as proposed by the 
     Senate instead of no funding as proposed by the House. The 
     conferees are concerned by the lack of detail and background 
     submitted by the Office of Administration in support of 
     emergency appropriations for the Executive Office of 
     President and, more specifically, by limitations in cost 
     estimates for various projects. Although the conferees are 
     aware that many of the cost estimates were prepared in rapid 
     response to the events of September 11, 2001, the conferees 
     are concerned that estimates for some projects may have 
     changed by as much as 250 percent. For instance, while 
     original estimates for building modifications and 
     communication installation activities for the Office of 
     Homeland Security were $2,000,000, the conferees understand 
     that the cost of this project may now be closer to 
     $7,000,000. The conferees have fully funded the President's 
     request for emergency expenses of the Office of 
     Administration, for the specific projects, and in the 
     specific amounts requested, as follows:


                       EOP estimated obligations

                         [Dollars in thousands]

Move Related (less IT):
  Sensitive Compartmentalized Information Facility................3,500
  Telecommunciations Costs........................................3,000
  Move and Facilities Cost........................................2,500
  Systems Furniture...............................................2,500
  Office Rent.....................................................1,903
  Additional 20 FTE...............................................1,325
  Space Renovation................................................1,000
  Second Print Shop...............................................1,000
  Overtime..........................................................500
  Additional Copiers and Fax Machines (including maintenance).......110
  Additional Safes and Shredders.....................................75
                                                       ________________
                                                       
    Subtotal--Move Related.......................................17,413
                                                       ================

Information Technology:
  Enhance Information Technology Reliability.....................15,000
  Additional IT Intrusion Security................................3,000
  EOP-Wide Teleconferencing Capability............................3,000
  Information Security..............................................700
  Anti-Hacking Software.............................................400
  Dedicated Technician Support......................................350
  Network Components.................................................61
                                                       ________________
                                                       
    Subtotal--Information Technology.............................22,511
                                                       ================

Emergency Response:
  Air Quality, Building Modifications and Communications Installs, 
    Backup Power, and Voice Announcers............................8,019
                                                       ________________
                                                       
    Subtotal--Emergency Response..................................8,019
                                                       ================

Uncategorized Misc.:
  Enhance Telecommunications......................................1,000
  Additional White House Operators (10).............................600
  Reorganization of RDS Warehouse...................................250
  Temporary Data Entry Personnel in WHO Correspondence..............164
  Paper..............................................................44
  Catridges and Copier Supplies......................................20
  General Office Supplies............................................20
                                                       ________________
                                                       
    Subtotal--Uncategorized Misc..................................2,098


[[Page 27463]]

       In the event that there are deviations from these line 
     items, the conferees direct the Office of Administration to 
     follow the appropriate reprogramming and transfer guidelines, 
     as included in the joint explanatory statement accompanying 
     the fiscal year 2002 conference report for the Treasury and 
     General Government Appropriations Act, 2002. In particular, 
     the conferees note the requirement that a reprogramming 
     request must be submitted for any action where funds 
     earmarked for a specific activity are proposed to be used for 
     a different activity. Finally, the conferees expect the 
     Office of Administration to fully coordinate the 
     implementation of these, and any future, security changes 
     with the General Services Administration, the Secret Service, 
     the White House Military Office, and other Executive Office 
     of the President offices and agencies.

                          Independent Agencies

                    General Services Administration

                        Real Property Activities


                         federal buildings fund

       The conferees agree to provide $126,512,000, instead of 
     $126,500,000 as proposed by the Senate and $87,360,000 as 
     proposed by the House. Within this amount, full funding is 
     provided for the requested replacement space costs and 
     security costs in New York and Washington, D.C. The conferees 
     understand that sufficient funding has been provided 
     elsewhere for relocation costs in Washington, D.C., and do 
     not include any funding for that purpose in this account. The 
     conferees strongly encourage the General Services 
     Administration to allocate that portion of the funds provided 
     to meet nationwide security needs in a way that addresses the 
     greatest threats, risks, and vulnerabilities on a national 
     basis regardless of regional boundaries.

              National Archives and Records Administration


                           operating expenses

       The conferees agree to provide $1,600,000 instead of no 
     funding as proposed by the House and $4,818,000 as proposed 
     by the Senate. Within this amount the conferees have provided 
     full funding for the requested increases in security 
     operating expenses at Archives I and Archives II and direct 
     that the balance of the funds be used to address the greatest 
     security concerns of the Presidential libraries.


                        repairs and restoration

       The conferees agree to provide $1,000,000 instead of no 
     funding as proposed by the House and $2,180,000 as proposed 
     by the Senate. Within this amount the conferees have provided 
     full funding for the requested increases in security repairs 
     and restoration expenses at Archives I and Archives II and 
     direct that the balance of the funds be used to address the 
     greatest security concerns of the Presidential libraries.

                    General Provision, This Chapter

       The conferees agree not to include Section 1101 as proposed 
     by the Senate regarding telecommunications access.
       Sec. 1201. The conferees agree to include a technical 
     amendment to the ``9/11 Heroes Stamp Act of 2001'', as 
     proposed by the Senate in Division D.

                               CHAPTER 13

                     DEPARTMENT OF VETERANS AFFAIRS

                      Departmental Administration


                       general operating expenses

       The conferees recommend $2,000,000 in general operating 
     expenses as proposed by the House for a comprehensive 
     security evaluation of the VA which should include and 
     consider security actions and recommendations implemented by 
     other Federal, State and local government agencies. The 
     Senate included funds for similar purposes under 
     construction, major projects.
       None of these funds may be used to create an new Office of 
     Operations and Preparedness as the Department has not 
     provided specific information on the creation of such office.


                      construction, major projects

       The conferees have not provided funds in this account for 
     security evaluations as proposed by the Senate but instead 
     included funding under general operating expenses as proposed 
     by the House.

              DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

                   Community Planning and Development


                       community development fund

       The conference agreement includes $2,000,000 from funds 
     appropriated in Public Law 107-38 for economic recovery 
     assistance for affected areas in New York City as proposed by 
     the Senate, instead of $1,875,000,000 as proposed by the 
     House.
       The conference agreement includes language designating 
     $10,000,000 for a program to aid the travel and tourism 
     industry in New York City as proposed by the House.
       Modified language is included, similar to language proposed 
     by the Senate, requiring the Lower Manhattan Redevelopment 
     Corporation to develop criteria and process applications for 
     the distribution of funds mad available under Community 
     Development Fund from funds provided in Public Law 107-38. 
     Modified language is also included, similar to language 
     proposed by the Senate, requiring the corporation to process 
     expeditiously applications for assistance. The conferees 
     expect the corporation to make every effort to respond to 
     applications from individuals, nonprofit and small businesses 
     for economic losses within 45 days of submission of an 
     application.
       Modified language is also included, similar to language 
     proposed by the Senate, designating not less than 
     $500,000,000 of the $2,700,000,000 made available for the 
     Community Development Fund from amounts provided in Public 
     Law 107-38 for assistance to individuals, nonprofits and 
     small businesses located on or south of 14th Street, with a 
     limitation of $500,000 per small businesses.
       The conferees adopt the language included in the Senate 
     report related to semi-annual audits by the Inspector General 
     of the Department of Housing and Urban Development. In lieu 
     of the requirement in the Senate report related to reports 
     related to disposition of claims, the conferees instead 
     direct the Department of Housing and Urban Development to 
     provide quarterly reports to the Committees on Appropriations 
     on the obligation and expenditure of these funds.
       The conferees recognize the unique benefits the New York 
     board of trade (NYBOT) beings to the economy of the City of 
     New York, as well as to the country. In this regard, the 
     conferees strongly encourage the Corporation to consider the 
     needs of the NYBOT as it allocates assistance provided from 
     the Community Development Fund.

                     Management and Administration


                      office of inspector general

       The conference agreement includes $1,000,000 from funds 
     appropriated in Public Law 107-38 to replace office and 
     investigative equipment damaged in the terrorist attacks, as 
     proposed by both the House and Senate.

                          INDEPENDENT AGENCIES

                DEPARTMENT OF HEALTH AND HUMAN SERVICES

                     National Institutes of Health


          national institute of environmental health sciences

       Provides $10,500,000 for the National Institute of 
     Environmental Health Sciences (NIEHS) as proposed by the 
     House and the Senate. Bill language has been adopted by the 
     conferees which clarifies that funds may be used for all 
     NIEHS research and worker training programs as authorized by 
     law. Bill language has also been included amending Public Law 
     107-73 to clarify the intent of Congress with respect to 
     funds provided for NIEHS for fiscal year 2002.

                    Environmental Protection Agency


                           science technology

       Provides $90,308,000 for science and technology instead of 
     $10,000,000 as proposed by the House and $41,514,000 as 
     proposed by the Senate. Funds are intended to be used to 
     assess and improve building security at EPA laboratory sites 
     as well as perform drinking water vulnerability assessments, 
     and anthrax decontamination activities.


                 environemental programs and management

       Provides $39,000,000 for environmental program and 
     management instead of $140,360,000 as proposed by the House 
     and $38,194,000 as proposed by the Senate. The conferees have 
     provided funds necessary to assess and improve building 
     security at EPA sites, pay for the temporary relocation and 
     other costs for EPA's Region 2 office, provide technical 
     materials and contingency planning manuals for wastewater 
     treatment plants, pay for anthrax decontamination activities, 
     and assume additional personnel costs associated with EPA's 
     increased responsibilities in criminal investations and 
     enforcement actions related to bioterrorism and other 
     counterterriorism activities. The conferees recognize and 
     acknowledge that the hiring of additional employees will 
     increase the Agency-wide FTE level. The conferees also 
     recognize that additional Agency-wide requirements to respond 
     to the terrorist attacks of September 11, 2001 as well as 
     subsequent counterterrorism activities will result in 
     increased travel costs of the Agency. In this regard, the 
     conferees agree that the travel ceiling assumed as part of 
     the fiscal year 2002 appropriation is no longer valid, and 
     requests the Agency to provide a quarterly letter detailing 
     the variance in travel relative to the 2002 budget 
     submission.


                     hazardous substance superfund

       Provides $41,292,000 for hazardous substance superfund as 
     proposed by the Senate instead of $5,800,000 as proposed by 
     the House. The conferees agree that funds will provide fro a 
     new West Coast ``Immediate Response Team'', pay for the 
     temporary relocation and other costs for EPA's Region 2 
     office, pay for anthrax decontamination activities, and 
     provides for personnel, training, equipment, and planning 
     related to increased responsibilities in responding to 
     terrorism and counterterrorism activities. The conferees note 
     that in addition to funds provided for future such activities 
     by EPA, funds provided herein are also intended to reimburse 
     expenses of the Agency incurred while assisting anthrax 
     investigations and cleanup actions at the United States 
     Capitol and Congressional office building complex, the 
     Brentwood and other United States Post Office locations, and 
     other such work performed prior to enactment of this Act.

[[Page 27464]]




                   state and tribal assistance grants

       Provides $5,000,000 for state and tribal assistance grants 
     as proposed by the House and the Senate. Funds are provided 
     for State grants for counterterrorism coordinators to work 
     with EPA and drinking water utilities in assessing drinking 
     water safety.
       Bill language has been included making technical 
     corrections for two targeted water and wastewater grants 
     provided in previous appropriations Acts.
       The conferees note that the cost-share requirement for a 
     National Community Decentralized Demonstration project in 
     Missouri, provided under this heading in Public Law 107-73 
     (item number 173), should be the same as that required for 
     the previous six such demonstration projects approved in 
     fiscal years 1999 and 2000.

                  Federal Emergency Management Agency


                            disaster relief

       The conferees agree to provide $4,356,871,000 for disaster 
     relief to fund additional efforts in response to the 
     September 11, 2001 terrorist attacks. The amount provided 
     includes $10,000,000 for expenses related to traffic control 
     and detours in New York City and for the repair and 
     reconstruction of non-Federal-aid-eligible highways destroyed 
     or damaged by the collapse of the World Trade Center 
     buildings.
       The conferees are concerned that there may be some gaps in 
     assistance to those affected by the terrorist attacks on 
     September 11, 2001. The conferees have been informed by FEMA 
     that all firefighters, law enforcement personnel, emergency 
     medical personnel, and victims of this incident will be 
     compensated through FEMA or other federal programs. FEMA has 
     indicated in writing that they are unaware of any gaps in 
     assistance with respect to the terrorism attacks. FEMA is 
     expected to provide funding for all eligible recipients in an 
     expeditious manner.


                         salaries and expenses

       Provides $25,000,000 for salaries and expenses instead of 
     $30,000,000 as proposed by the House and $20,000,000 as 
     proposed by the Senate. The amount provided includes 
     $10,000,000 for the national security division. The conferees 
     are concerned about the continuing lack of information 
     regarding a new Office of National Preparedness within FEMA 
     and agree, that while a portion of the funding provided by 
     this appropriation may be used to establish the Office, FEMA 
     must inform the Congress of the structure, responsibilities, 
     and roles of this new Office, with particular emphasis on its 
     relationships to the Office of Homeland Security and the 
     Department of Justice. Therefore, the conferees direct FEMA 
     to report to the Committees on Appropriations by February 15, 
     2002 on the structure of the Office of National Preparedness, 
     including a staffing plan, and its duties and functions in 
     relation to other agencies involved in Homeland security.


              emergency management planning and assistance

       Provides $220,000,000 for emergency planning and 
     assistance, instead of $290,000,000 as proposed by the Senate 
     and $35,000,000 as proposed by the House. Of the amount 
     provided, $21,000,000 shall be used to carry out the fire 
     grants program as authorized by the Federal Fire Prevention 
     and Control Act of 1974, as amended by Public Law 106-398. 
     The conferees have included bill language which provides that 
     up to 5 percent of the funds may be transferred to salaries 
     and expenses for administrative costs associated with this 
     program. In addition $10,000,000 is to be used for 
     enhancement of FEMA's ability to support the 2002 Winter 
     Olympics.
       Within 90 days of enactment of this Act, the Director of 
     the Federal Emergency Management Agency (FEMA) shall submit 
     to the Director of the Office of Homeland Security and to the 
     Congress a report which shall include:
       (1) a complete accounting of all emergency and terrorism 
     preparedness training courses offered by FEMA and all 
     departments and agencies of the federal government;
       (2) a discussion of the effectiveness of those courses, the 
     possible consolidation of all federal emergency and terrorism 
     preparedness training courses, the adequacy of federal 
     training courses in the area of chemical and biological 
     weapons, and training models used in the private sector that 
     the Director considers as being representative of the best 
     safety and security practices, particularly relating to the 
     aftermath of a chemical or biological attack.

             National Aeronautics and Space Administration


                           human space flight

       The conferees have agreed to provide $76,000,000 for human 
     space flight instead of $81,000,000 as proposed by the House 
     and $64,500,000 as proposed by the Senate. The amount 
     provided includes $8,000,000 for information security, 
     $60,000,000 for security and counterintelligence, and 
     $5,000,000 for communications capabilities. An additional 
     $3,000,000 is provided for enhanced radar capability (TPS-75 
     mobile radar system) to provide low-altitude coverage for 
     security needs at the Kennedy Space Center.


                  science, aeronautics and technology

       The conferees agree to provide $32,500,000 for science, 
     aeronautics and technology, instead of $36,500,000 as 
     proposed by the House and $28,600,000 as proposed by the 
     Senate. The amount provided includes $12,000,000 for 
     information security, $15,000,000 for security and 
     counterintelligence and $5,500,000 for communications 
     capability.


                           office of security

       In August 2001, NASA established the Office of Security 
     Management and Safeguards under the direction of an Associate 
     Administrator reporting directly to the NASA Administrator. 
     The Associate Administrator for Security Management and 
     Safeguards is the senior security and counterintelligence 
     advisor to the NASA Administrator, with ultimate authority 
     for NASA-wide security and counterintelligence operations, 
     processes, functions, and activities, as well as 
     administrative authority over NASA security funds. The 
     conferees support the establishment of the Office of Security 
     Management and Safeguards, and the full authority of this 
     Office over Agency-wide security and counterintelligence 
     activities and funding. Furthermore, the conferees agree with 
     direction included in the Senate Report that NASA shall 
     identify funding from within available Agency resources to 
     provide for approximately 35 additional FTE to staff the 
     Office of Security Management and Safeguards at NASA 
     Headquarters and at NASA's field Centers. The conferees also 
     agree that responsibilities of the NASA Office of Security 
     Management and Safeguards shall in no way prevent the Office 
     of Inspector General from conducting its lawful investigative 
     activities, including investigations into cyber crime. 
     Further, the conferees expect that the Office of Security 
     Management and Safeguards and the Office of the Inspector 
     General will continue to share counter-intelligence and 
     intelligence threat information concerning NASA information 
     technology networks as it pertains to cyber-based threats to 
     NASA.


                      Office of Inspector General

       The conferees have not included any additional funding for 
     the Office of Inspector General. The House had proposed an 
     increase of $3,000,000 and the Senate had proposed no 
     additional funding.

                      National Science Foundation


                    Research and Related Activities

       Provides $300,000 for research and related activities as 
     proposed by the House and the Senate. Funds are provided for 
     additional security measures at NSF research facilities.

                    General Provisions, This Chapter

       Retains language proposed by the Senate authorizing the 
     Points of Light Foundation to name community service projects 
     after individual victims of the September 11, 2001 attacks 
     and create a website and database to catalogue such projects. 
     No federal funds are to be used for these activities. The 
     House did not include a similar provision.
       Retains language proposed by the Senate authorizing the 
     Cook Inlet Housing Authority to use the previously 
     appropriated funds for a tribal student housing project. The 
     House did not include a similar provision.
       The conference agreement includes modified language, 
     similar to language proposed by the Senate, making available 
     up to $11,300,000 for obligations under section 514 of the 
     Multifamily Assisted Housing Reform and Affordability Act 
     (MAHRAA). Of this amount, up to $1,300,000 in fiscal year 
     2002 funds is authorized to be used to reimburse vouchers 
     submitted by section 514 grantees through October 15, 2001 
     for prior year commitments which were probable violations of 
     the Anti-Deficiency Act (ADA). The conferees note that the 
     Department of Housing and Urban Development has yet to 
     provide sufficient information to the Committees on 
     Appropriations related to violations of the ADA related to 
     section 514 grants. The conferees expect the Department to 
     investigate fully this matter and provide the necessary 
     notifications to the President and the Congress in accordance 
     with the requirements set forth in the Anti-Deficiency Act 
     and Office of Management and Budget Circular A-34. Pending 
     conclusion of the investigation and notification 
     requirements, the Department is authorized to use a portion 
     of the $10,000,000 provided in fiscal year 2002 for new grant 
     awards to reimburse grantees for activities completed 
     pursuant to prior year grant agreements. Should the 
     Department use funds for this purpose, the amount made 
     available for new grant awards shall be reduced accordingly. 
     The conferees direct the Secretary of the Department of 
     Housing and Urban Development to provide bimonthly reports to 
     the Committees on Appropriations on the status of technical 
     assistance funds spent under section 514 of MAHRAA, including 
     the status of the investigation of probable ADA violations, a 
     spending plan for the $11,300,000 made available under this 
     section, and the status and findings of audits conducted by 
     the Inspector General, with the first report due no later 
     than January 15, 2002.
       Modified language is also included earmarking $1,500,000 
     from funds provided to the Office of General Counsel and the 
     Office of Multifamily Housing Assistance Restructuring to be 
     used for section 514 technical assistance grants, similar to 
     language proposed by the Senate.
       New language is included clarifying that the authorization 
     to use funds to rectify a

[[Page 27465]]

     violation of the Anti-Deficiency Act in no way releases an 
     officer or employees from the requirements set forth pursuant 
     to the Act.
       Inserts language making several technical corrections to 
     economic development initiatives under the heading 
     ``Community Development Fund'' in Public Law 107-73.

                               CHAPTER 14

                           General Provisions

       The conference agreement includes section 1401, as proposed 
     by the Senate, which states that amounts obligated pursuant 
     to this division are subject to the terms and conditions 
     provided in Public Law 107-38. The House had no similar 
     provision.
       The conference agreement includes section 1402, as proposed 
     by the House and the Senate, concerning availability of funds 
     appropriated within this division.
       The conference agreement includes section 1403 concerning 
     transfer authority for national guard expenses for services 
     related to homeland security. Each request for transfer shall 
     include a declaration that, as of the date of the request, 
     none of the funds proposed for transfer have been obligated, 
     and none will be obligated, until the Committees on 
     Appropriations have approved the request.

 DIVISION C--SPENDING LIMITS AND BUDGETARY ALLOCATIONS FOR FISCAL YEAR 
                                  2002

       The conference agreement includes, as division C, budgetary 
     provisions that are necessary to conform existing budget law 
     with final appropriations agreements. Sections 101 adjusts 
     the fiscal year 2002 discretionary caps in the Balanced 
     Budget and Emergency Deficit Control Act of 1985 to levels 
     consistent with final appropriations action. This section 
     also provides for conforming adjustments to the fiscal year 
     2002 budget resolution, and includes a small budget authority 
     allowance for technical scoring differences that may exist 
     between the Office of Management and Budget and the 
     Congressional Budget Office. Section 102 resets the Pay-As-
     You-Go scorecard to zero.

                  DIVISION D--MISCELLANEOUS PROVISIONS

       The conference agreement modifies a provision, proposed by 
     the Senate in Division E, related to certain real property in 
     South Dakota. The House bill contained no similar provision.
       The conference agreement includes the text of a provision, 
     proposed by the Senate in Division E, Title II, section 201, 
     which expands the number of Trustees of the John F. Kennedy 
     Center for the Performing Arts. The House had no similar 
     provision.

                               DIVISION A

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

                       [In thousands of dollars]

New budget (obligational) authority, fiscal year 2001.......298,515,154
Budget estimates of new (obligational) authority, fiscal yea319,547,116
House bill, fiscal year 2002................................317,624,089
Senate bill, fiscal year 2002...............................317,623,483
Conference agreement, fiscal year 2002......................317,623,747
Conference agreement compared with:
  New budget (obligational) authority, fiscal year 2001.....+19,108,593
  Budget estimates of new (obligational) authority, fiscal ye-1,923,369
  House bill, fiscal year 2002.....................................-342
  Senate bill, fiscal year 2002....................................+264

                               DIVISION B

       The total new budget (obligational) authority for the 
     fiscal year 2002 recommended by the committee of conference, 
     with comparisons to the fiscal year 2002 budget estimates, 
     and the House and Senate bills for 2002 follow:

                       [In thousands of dollars]

Budget estimates of new (obligational) authority, fiscal year20,000,000
House bill, fiscal year 2002.................................20,000,000
Senate bill, fiscal year 2002................................20,000,000
Conference agreement, fiscal year 2002.......................20,000,000
Conference agreement compared with:
  Budget estimates of new (obligational) authority, fiscal year 2002...
  House bill, fiscal year 2002.........................................
  Senate bill, fiscal year 2002........................................

     For consideration of Division A of the House bill and 
     Division A of the Senate amendment, and modifications 
     committed to conference:
     Jerry Lewis,
     Bill Young,
     Joe Skeen,
     Dave Hobson,
     Henry Bonilla,
     George R. Nethercutt, Jr.,
     Randy ``Duke'' Cunningham,
     Rodney P. Frelinghuysen,
     Todd Tiahrt,
     John P. Murtha,
     Norman D. Dicks,
     Martin Olav Sabo,
     Peter J. Visclosky,
     James P. Moran,
     David R. Obey
       (except for aircraft leasing),
     For consideration of all other matters of the House bill and 
     other matters of the Senate amendment, and modifications 
     committed to conference:
     Bill Young,
     Jerry Lewis,
     David Obey,
                                Managers on the Part of the House.

     Daniel K. Inouye,
     Ernest F. Hollings,
     Robert C. Byrd,
     Patrick J. Leahy,
     Tom Harkin,
     Byron L. Dorgan,
     Richard J. Durbin,
     Harry Reid,
     Dianne Feinstein,
     Herb Kohl,
     Ted Stevens,
     Thad Cochran,
     Arlen Specter,
     Pete Domenici,
     Christopher Bond,
     Mitch McConnell,
     Richard C. Shelby,
     Judd Gregg,
     Kay Bailey Hutchison,
     Managers on the Part of the Senate.

                          ____________________