[Congressional Record (Bound Edition), Volume 148 (2002), Part 14]
[House]
[Pages 19807-19838]
[From the U.S. Government Publishing Office, www.gpo.gov]




  CONFERENCE REPORT ON H.R. 5011, MILITARY CONSTRUCTION APPROPRIATION 
                               ACT, 2003

  Mr. HOBSON submitted the following conference report and statement on 
the bill (H.R. 5011) making appropriations for military construction, 
family housing, and base realignment and closure for the Department of 
Defense for the fiscal year ending September 30, 2003, and for other 
purposes.

                  Conference Report (H. Rept. 107-731)

       The committee of conference on the disagreeing votes of the 
     two Houses on the amendment of the Senate to the bill (H.R. 
     5011) ``making appropriations for military construction, 
     family housing, and base realignment and closure for the 
     Department of Defense for the fiscal year ending September 
     30, 2003, and for other purposes,'' having met, after full 
     and free conference, have agreed to recommend and do 
     recommend to their respective Houses as follows:
       That the House recede from its disagreement to the 
     amendment of the Senate, and agree to the same with an 
     amendment, as follows:
       In lieu of the matter stricken and inserted by said 
     amendment, insert:

     That the following sums are appropriated, out of any money in 
     the Treasury not otherwise appropriated for military 
     construction, family housing, and base realignment and 
     closure functions administered by the Department of Defense, 
     for the fiscal year ending September 30, 2003, and for other 
     purposes, namely:

                      Military Construction, Army


                         (including rescission)

       For acquisition, construction, installation, and equipment 
     of temporary or permanent public works, military 
     installations, facilities, and real property for the Army as 
     currently authorized by law, including personnel in the Army 
     Corps of Engineers and other personal services necessary for 
     the purposes of this appropriation, and for construction and 
     operation of facilities in support of the functions of the 
     Commander in Chief, $1,683,710,000, to remain available until 
     September 30, 2007: Provided, That of this amount, not to 
     exceed $163,135,000 shall be available for study, planning, 
     design, architect and engineer services, and host nation 
     support, as authorized by law, unless the Secretary of 
     Defense determines that additional obligations are necessary 
     for such purposes and notifies the Committees on 
     Appropriations of both Houses of Congress of his 
     determination and the reasons therefor: Provided further, 
     That of the funds appropriated for ``Military Construction, 
     Army'' in previous Military Construction Appropriation Acts, 
     $49,376,000 are rescinded.

                      Military Construction, Navy


                         (including rescission)

       For acquisition, construction, installation, and equipment 
     of temporary or permanent public works, naval installations, 
     facilities, and real property for the Navy as currently 
     authorized by law, including personnel in the Naval 
     Facilities Engineering Command and other personal services 
     necessary for the purposes of this appropriation, 
     $1,305,128,000, to remain available until September 30, 2007: 
     Provided, That of this amount, not to exceed $87,043,000 
     shall be available for study, planning, design, architect and 
     engineer services, as authorized by law, unless the Secretary 
     of Defense determines that additional obligations are 
     necessary for such purposes and notifies the Committees on 
     Appropriations of both Houses of Congress of his 
     determination and the reasons therefor: Provided further, 
     That of the funds appropriated for ``Military Construction, 
     Navy'' in previous Military Construction Appropriation Acts, 
     $1,340,000 are rescinded.

                    Military Construction, Air Force


                         (including rescission)

       For acquisition, construction, installation, and equipment 
     of temporary or permanent public works, military 
     installations, facilities, and real property for the Air 
     Force as currently authorized by law, $1,080,247,000, to 
     remain available until September 30, 2007: Provided, That of 
     this amount, not to exceed $72,283,000 shall be available for 
     study, planning, design, architect and engineer services, as 
     authorized by law, unless the Secretary of Defense determines 
     that additional obligations are necessary for such purposes 
     and notifies the Committees on Appropriations of both Houses 
     of Congress of his determination and the reasons therefor: 
     Provided further, That of the funds appropriated for 
     ``Military Construction, Air Force'' in previous Military 
     Construction Appropriation Acts, $13,281,000 are rescinded.

                  Military Construction, Defense-wide


              (including transfer and rescission of funds)

       For acquisition, construction, installation, and equipment 
     of temporary or permanent public works, installations, 
     facilities, and real property for activities and agencies of 
     the Department of Defense (other than the military 
     departments), as currently authorized by law, $874,645,000, 
     to remain available until September 30, 2007: Provided, That 
     such amounts of this appropriation as may be determined by 
     the Secretary of Defense may be transferred to such 
     appropriations of the Department of Defense available for 
     military construction or family housing as he may designate, 
     to be merged with and to be available for the same purposes, 
     and for the same time period, as the appropriation or fund to 
     which transferred: Provided further, That of the amount 
     appropriated, not to exceed $50,432,000 shall be available 
     for study, planning, design, architect and engineer services, 
     as authorized by law, unless the Secretary of Defense 
     determines that additional obligations are necessary for such 
     purposes and notifies the Committees on Appropriations of 
     both Houses of Congress of his determination and the reasons 
     therefor: Provided further, That of the funds appropriated 
     for ``Military Construction, Defense-wide'' in previous 
     Military Construction Appropriation Acts, $2,976,000 are 
     rescinded.

               Military Construction, Army National Guard

       For construction, acquisition, expansion, rehabilitation, 
     and conversion of facilities for the training and 
     administration of the Army National Guard, and contributions 
     therefor, as authorized by chapter 1803 of title 10, United 
     States Code, and Military Construction Authorization Acts, 
     $241,377,000, to remain available until September 30, 2007.

               Military Construction, Air National Guard

       For construction, acquisition, expansion, rehabilitation, 
     and conversion of facilities for the training and 
     administration of the Air National Guard, and contributions 
     therefor, as authorized by chapter 1803 of title 10, United 
     States Code, and Military Construction Authorization Acts, 
     $203,813,000, to remain available until September 30, 2007.

                  Military Construction, Army Reserve

       For construction, acquisition, expansion, rehabilitation, 
     and conversion of facilities for the training and 
     administration of the Army Reserve as authorized by chapter 
     1803 of title 10, United States Code, and Military 
     Construction Authorization Acts, $100,554,000, to remain 
     available until September 30, 2007.

                  Military Construction, Naval Reserve

       For construction, acquisition, expansion, rehabilitation, 
     and conversion of facilities for the training and 
     administration of the reserve components of the Navy and 
     Marine Corps as authorized by chapter 1803 of title 10, 
     United

[[Page 19808]]

     States Code, and Military Construction Authorization Acts, 
     $74,921,000, to remain available until September 30, 2007.

                Military Construction, Air Force Reserve

       For construction, acquisition, expansion, rehabilitation, 
     and conversion of facilities for the training and 
     administration of the Air Force Reserve as authorized by 
     chapter 1803 of title 10, United States Code, and Military 
     Construction Authorization Acts, $67,226,000, to remain 
     available until September 30, 2007.

     North Atlantic Treaty Organization Security Investment Program

       For the United States share of the cost of the North 
     Atlantic Treaty Organization Security Investment Program for 
     the acquisition and construction of military facilities and 
     installations (including international military headquarters) 
     and for related expenses for the collective defense of the 
     North Atlantic Treaty Area as authorized in Military 
     Construction Authorization Acts and section 2806 of title 10, 
     United States Code, $167,200,000, to remain available until 
     expended.

                   Family Housing Construction, Army


                         (including rescission)

       For expenses of family housing for the Army for 
     construction, including acquisition, replacement, addition, 
     expansion, extension and alteration, as authorized by law, 
     $280,356,000, to remain available until September 30, 2007: 
     Provided, That of the funds appropriated for ``Family Housing 
     Construction, Army'' in previous Military Construction 
     Appropriation Acts, $4,920,000 are rescinded.

             Family Housing Operation and Maintenance, Army

       For expenses of family housing for the Army for operation 
     and maintenance, including debt payment, leasing, minor 
     construction, principal and interest charges, and insurance 
     premiums, as authorized by law, $1,106,007,000.

           Family Housing Construction, Navy and Marine Corps


                         (including rescission)

       For expenses of family housing for the Navy and Marine 
     Corps for construction, including acquisition, replacement, 
     addition, expansion, extension and alteration, as authorized 
     by law, $376,468,000, to remain available until September 30, 
     2007: Provided, That of the funds appropriated for ``Family 
     Housing Construction, Navy and Marine Corps'' in previous 
     Military Construction Appropriation Acts, $2,652,000 are 
     rescinded.

    Family Housing Operation and Maintenance, Navy and Marine Corps

       For expenses of family housing for the Navy and Marine 
     Corps for operation and maintenance, including debt payment, 
     leasing, minor construction, principal and interest charges, 
     and insurance premiums, as authorized by law, $861,788,000.

                 Family Housing Construction, Air Force


                         (including rescission)

       For expenses of family housing for the Air Force for 
     construction, including acquisition, replacement, addition, 
     expansion, extension and alteration, as authorized by law, 
     $684,824,000, to remain available until September 30, 2007: 
     Provided, That of the funds appropriated for ``Family Housing 
     Construction, Air Force'' in previous Military Construction 
     Appropriation Acts, $8,782,000 are rescinded.

          Family Housing Operation and Maintenance, Air Force

       For expenses of family housing for the Air Force for 
     operation and maintenance, including debt payment, leasing, 
     minor construction, principal and interest charges, and 
     insurance premiums, as authorized by law, $863,050,000.

               Family Housing Construction, Defense-wide

       For expenses of family housing for the activities and 
     agencies of the Department of Defense (other than the 
     military departments) for construction, including 
     acquisition, replacement, addition, expansion, extension and 
     alteration, as authorized by law, $5,480,000, to remain 
     available until September 30, 2007.

         Family Housing Operation and Maintenance, Defense-wide

       For expenses of family housing for the activities and 
     agencies of the Department of Defense (other than the 
     military departments) for operation and maintenance, leasing, 
     and minor construction, as authorized by law, $42,395,000.

         Department of Defense Family Housing Improvement Fund

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

                  Base Realignment and Closure Account

       For deposit into the Department of Defense Base Closure 
     Account 1990 established by section 2906(a)(1) of the 
     Department of Defense Authorization Act, 1991 (Public Law 
     101-510), $561,138,000, to remain available until expended.

                           GENERAL PROVISIONS

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


                          (transfer of funds)

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

[[Page 19809]]




                          (transfer of funds)

       Sec. 118. During the 5-year period after appropriations 
     available to the Department of Defense for military 
     construction and family housing operation and maintenance and 
     construction have expired for obligation, upon a 
     determination that such appropriations will not be necessary 
     for the liquidation of obligations or for making authorized 
     adjustments to such appropriations for obligations incurred 
     during the period of availability of such appropriations, 
     unobligated balances of such appropriations may be 
     transferred into the appropriation ``Foreign Currency 
     Fluctuations, Construction, Defense'' to be merged with and 
     to be available for the same time period and for the same 
     purposes as the appropriation to which transferred.
       Sec. 119. The Secretary of Defense is to provide the 
     Committees on Appropriations of the Senate and the House of 
     Representatives with an annual report by February 15, 
     containing details of the specific actions proposed to be 
     taken by the Department of Defense during the current fiscal 
     year to encourage other member nations of the North Atlantic 
     Treaty Organization, Japan, Korea, and United States allies 
     bordering the Arabian Sea to assume a greater share of the 
     common defense burden of such nations and the United States.


                          (transfer of funds)

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


                          (transfer of funds)

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


                          (transfer of funds)

       Sec. 126. During the current fiscal year, in addition to 
     any other transfer authority available to the Department of 
     Defense, amounts may be transferred from the account 
     established by section 2906(a)(1) of the Department of 
     Defense Authorization Act, 1991, to the fund established by 
     section 1013(d) of the Demonstration Cities and Metropolitan 
     Development Act of 1966 (42 U.S.C. 3374) to pay for expenses 
     associated with the Homeowners Assistance Program. Any 
     amounts transferred shall be merged with and be available for 
     the same purposes and for the same time period as the fund to 
     which transferred.
       Sec. 127. Notwithstanding this or any other provision of 
     law, funds appropriated in Military Construction 
     Appropriations Acts for operations and maintenance of family 
     housing shall be the exclusive source of funds for repair and 
     maintenance of all family housing units, including general or 
     flag officer quarters: Provided, That not more than $35,000 
     per unit may be spent annually for the maintenance and repair 
     of any general or flag officer quarters without 30 days 
     advance prior notification to the appropriate committees of 
     Congress, except that an after-the-fact notification shall be 
     submitted if the limitation is exceeded solely due to costs 
     associated with environmental remediation that could not be 
     reasonably anticipated at the time of the budget submission: 
     Provided further, That the Under Secretary of Defense 
     (Comptroller) is to report annually to the Committees on 
     Appropriations all operations and maintenance expenditures 
     for each individual general or flag officer quarters for the 
     prior fiscal year.
       Sec. 128. Notwithstanding any other provision of law, the 
     Secretary of the Navy is authorized to use funds received 
     pursuant to section 2601 of title 10, United States Code, for 
     the construction, improvement, repair, and maintenance of the 
     historic residences located at Marine Corps Barracks, 8th and 
     I Streets, Washington, D.C.: Provided, That the Secretary 
     notifies the appropriate committees of Congress 30 days in 
     advance of the intended use of such funds: Provided further, 
     That this section remains effective until September 30, 2004.
       Sec. 129. None of the funds made available in this Act may 
     be transferred to any department, agency, or instrumentality 
     of the United States Government, except pursuant to a 
     transfer made by, or transfer authority provided in, this Act 
     or any other appropriation Act.
       Sec. 130. Amounts appropriated for a military construction 
     project at Camp Kyle, Korea, relating to construction of a 
     physical fitness center, as authorized by section 8160 of the 
     Department of Defense Appropriations Act, 2000 (Public Law 
     106-79; 113 Stat. 1274), shall be available instead for a 
     similar project at Camp Bonifas, Korea.
       Sec. 131. (a) Requests for Funds for Environmental 
     Restoration at BRAC Sites in Future Fiscal Years.--In the 
     budget justification materials submitted to Congress in 
     support of the Department of Defense budget for any fiscal 
     year after fiscal year 2003, the amount requested for 
     environmental restoration, waste management, and 
     environmental compliance activities in such fiscal year with 
     respect to military installations approved for closure or 
     realignment under the base closure laws shall accurately 
     reflect the anticipated cost of such activities in such 
     fiscal year.
       (b) Base Closure Laws Defined.--In this section, the term 
     ``base closure laws'' means the following:
       (1) Section 2687 of title 10, United States Code.
       (2) The Defense Base Closure and Realignment Act of 1990 
     (part A of title XXIX of Public Law 101-510; 10 U.S.C. 2687 
     note).
       (3) Title II of the Defense Authorization Amendments and 
     Base Closure and Realignment Act (Public Law 100-526; 10 
     U.S.C. 2687 note).
       This Act may be cited as the ``Military Construction 
     Appropriation Act, 2003''.

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

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

       Joint Explanatory Statement of the Committee of Conference

       The managers on the part of the House and the Senate at the 
     conference on the disagreeing votes of the two Houses on the 
     amendment of the Senate to the bill (H.R. 5011) making 
     appropriations for the Department of Defense for the fiscal 
     year ending September 30, 2003, and for other purposes, 
     submit the following joint statement to the House of 
     Representatives and the Senate in

[[Page 19810]]

     explanation of the effect of the action agreed upon by the 
     managers and recommended in the accompanying conference 
     report.
       The Senate deleted the entire House bill after the enacting 
     clause and inserted the Senate bill (S. 2709). The conference 
     agreement includes a revised bill.

                       Items of General Interest

       Matters Addressed by Only One Committee.--The language and 
     allocations set forth in House Report 107-533 and Senate 
     Report 107-202 should be complied with unless specifically 
     addressed to the contrary in the conference report and 
     statement of the managers. Report language included by the 
     House which is not changed by the report of the Senate or the 
     conference, and Senate report language which is not changed 
     by the conference is approved by the committee of conference. 
     The statement of the managers, while repeating some report 
     language for emphasis, does not intend to negate the language 
     referred to above unless expressly provided herein. In cases 
     where the House or the Senate have directed the submission of 
     a report from the Department of Defense, such report is to be 
     submitted to both House and Senate Committees on 
     Appropriations.
       Foreign Currency Fluctuation Savings.--The conference 
     agreement rescinds funds from the following accounts in the 
     specified amounts to reflect savings from favorable foreign 
     currency fluctuations:

        Account                                                  Amount
Military Construction, Army.................................$13,676,000
Military Construction, Navy...................................1,340,000
Military Construction, Air Force.............................10,281,000
Military Construction, Defense-wide...........................2,976,000
Family Housing Construction, Army.............................4,920,000
Family Housing Construction, Navy and Marine Corps............2,652,000
Family Housing Construction, Air Force........................8,782,000
                                                       ________________
                                                       
    Total....................................................44,627,000

       Revised Economic Assumptions.--The conference agreement 
     includes reductions totaling $57,000,000, which result from 
     the Office of Management and Budget's (OMB's) re-estimation 
     of inflation in its mid-session review of the budget request. 
     The conferees direct the Department to distribute these 
     reductions proportionally against each project and activity 
     in each account as follows:

        Account                                                  Amount
Military Construction, Army..................................$8,000,000
Military Construction, Navy...................................5,000,000
Military Construction, Air Force..............................5,000,000
Military Construction, Defense-wide...........................3,000,000
Military Construction, Army National Guard....................1,000,000
NATO Security Investment Program..............................1,000,000
Family Housing Construction, Army.............................2,000,000
Family Housing Operation and Maintenance, Army................8,000,000
Family Housing Construction, Navy and Marine Corps............3,000,000
Family Housing Operation and Maintenance, Navy and Marine Corp6,000,000
Family Housing Construction, Air Force........................5,000,000
Family Housing Operation and Maintenance, Air Force...........6,000,000
Base Realignment and Closure..................................4,000,000
                                                       ________________
                                                       
    Total....................................................57,000,000

       United States Army South.--In the statement of the managers 
     accompanying the Fiscal Year 2002 Department of Defense 
     Appropriations Act (Public Law 107-117), the conferees 
     directed the Department of the Army to provide information to 
     the House and Senate Committees on Appropriations by February 
     28, 2002, regarding the relocation of the headquarters of 
     U.S. Army South. The Army failed to comply with this 
     direction for several reasons, some of which were not within 
     its control. Nonetheless, the conferees remind the Department 
     of the Army that it expects compliance with specific 
     direction included in committee reports. If the Army is 
     unable to comply with that direction or changes the manner in 
     which the direction is to be implemented, the committees 
     should be given the courtesy of an explanation.
       Sustainment, Restoration, and Modernization: Reporting 
     Requirement.--The conferees agree to the following general 
     rules for repairing a facility under operation and 
     maintenance funding:
       Components of the facility may be repaired by replacement, 
     and such replacement can be up to current standards or code;
       Interior arrangements and restorations may be included as 
     repair, but additions, new facilities, and functional 
     conversions must be performed as military construction 
     projects;
       Such projects may be done concurrent with repair projects, 
     as long as the final conjunctively funded project is a 
     complete and usable facility; and
       The appropriate Service Secretary shall notify the 
     appropriate Committees 21 days prior to carrying out any 
     repair project with an estimated cost in excess of 
     $7,500,000.
       In future budget requests, the Department is directed to 
     provide the sustainment, restoration, and modernization 
     backlog at all installations for which there is a requested 
     construction project. This information is to be provided on 
     the form 1390. In addition, for all troop housing requests, 
     the form 1391 is to show all sustainment, restoration, and 
     modernization conducted in the past two years and future 
     requirements for such housing at the installation.
       Family Housing Operation and Maintenance: Financial 
     Management.--The conferees agree to continue the restriction 
     on the transfer of funds between the family housing operation 
     and maintenance accounts. The limitation is ten percent to 
     all primary accounts and subaccounts. Such transfers are to 
     be reported to the appropriate Committees within thirty days 
     of such action.
       Erosion Study.--The conferees direct the General Accounting 
     Office to conduct a study of Alaska Native villages affected 
     by flooding and erosion including but not limited to 
     Kaktovik, Barrow, Point Hope, Kivalina, Unalakleet, and 
     Bethel.
       The General Accounting Office should consult with the 
     following agencies: (a) the Secretary of the Army to 
     determine: (1) which villages can reasonably be protected 
     through construction of seawalls, rip rap, and other 
     engineered structures and at what cost, and; (2) which 
     villages cannot reasonably be protected and will be required 
     to relocate; (b) the Secretary of the Interior to identify 
     possible relocation sites including federal lands and 
     existing villages; (c) the Secretary of Housing and Urban 
     Development to determine the cost of constructing housing and 
     water and sewer systems in relocated villages; (d) the 
     Secretary of Health and Human Services to determine the cost 
     of constructing health facilities in relocated villages; (e) 
     the Secretary of Agriculture to determine the cost of 
     constructing power systems in relocated villages; and (f) the 
     Secretary of Transportation to determine the cost of 
     constructing airports, roads, and dock facilities in 
     relocated villages. This report should be submitted to the 
     House and Senate Committees on Appropriations no later than 
     October 1, 2003.


                      military construction, army

                         (including rescission)

       The conference agreement appropriates $1,683,710,000 for 
     Military Construction, Army, instead of $1,514,557,000 as 
     proposed by the House and $1,679,212,000 as proposed by the 
     Senate. This amount reflects $8,000,000 in savings that 
     result from the re-estimation of inflation. Within this 
     amount, the conference agreement earmarks $163,135,000 for 
     study, planning, design, architect and engineer services, and 
     host nation support instead of $158,664,000 as proposed by 
     the House and $136,835,000 as proposed by the Senate. The 
     conference agreement rescinds $49,376,000 from funds provided 
     to this account in previous Military Construction 
     Appropriation Acts. The rescission includes $13,676,000 to 
     reflect savings from favorable foreign currency fluctuations 
     as proposed by the Senate. The House bill proposed rescinding 
     these savings in section 128 of the General Provisions. In 
     addition, the rescission includes $5,000,000 from a project 
     that is no longer needed at Fort Bliss in Texas as proposed 
     by the House, and $30,700,000 from three projects that are no 
     longer needed at Fort Buchanan in Puerto Rico.
       Kansas--Fort Leavenworth: U.S. Disciplinary Barracks.--The 
     conferees are concerned that the Department of the Army is 
     planning to relinquish its current mission of confining level 
     III military inmates convicted under the Uniformed Code of 
     Military Justice by transferring the mission to the Bureau of 
     Prisons. This decision appears to have been made despite the 
     Army's recent completion of the new maximum security U.S. 
     Disciplinary Barracks at Fort Leavenworth, Kansas. The 
     conferees direct the Army to submit a report to the 
     congressional defense committees no later than December 15, 
     2002, on the rationale for this proposal as well as the 
     impact a policy change will have on the operation of the new 
     U.S. Disciplinary Barracks at Fort Leavenworth, Kansas.
       New Mexico--White Sands Missile Range: Anechoic Chamber.--
     Of the additional funds provided for planning and design in 
     this account, the conferees direct that not less than 
     $1,000,000 be made available for the planning and design of 
     this facility.
       Puerto Rico--Fort Buchanan: Rescission of Funds.--The 
     conferees agree to rescind $30,700,000 from unobligated 
     balances in this account. The National Defense Authorization 
     Act, 2001 (Public Law 106-398) established a construction 
     moratorium in Puerto Rico due to concern over long-term 
     stationing requirements. This moratorium halted three 
     previously appropriated construction projects totaling 
     $30,700,000 at Fort Buchanan in Puerto Rico. As a result of 
     the recent decision to relocate the headquarters of U.S. Army 
     South from Fort Buchanan to Fort Sam Houston, Texas, these 
     projects are

[[Page 19811]]

     no longer needed and the conferees agree to rescind the 
     funds.
       Stryker Brigade Combat Team (SBCT) Initiative.--The 
     conference agreement includes $25,000,000 above the budget 
     request to assist in the Army's transformation effort. The 
     Senate proposed $100,000,000 for this initiative. The House 
     did not include a similar proposal. This funding is to 
     support infrastructure requirements relating to fielding of 
     the Stryker Brigade Combat Teams (SBCTs). It is the intent of 
     the conferees that the Army has the discretion to determine 
     how these funds will be allocated in support of 
     transformation, subject to notification to the congressional 
     defense committees 15 days prior to the obligation of these 
     funds.


                      military construction, navy

                         (including rescission)

       The conference agreement appropriates $1,305,128,000 for 
     Military Construction, Navy, instead of $1,245,765,000 as 
     proposed by the House and $1,216,643,000 as proposed by the 
     Senate. This amount reflects $5,000,000 in savings that 
     result from the re-estimation of inflation. Within this 
     amount, the conference agreement earmarks $87,043,000 for 
     study, planning, design, architect and engineer services 
     instead of $94,825,000 as proposed by the House and 
     $91,620,000 as proposed by the Senate. The conference 
     agreement rescinds $1,340,000 from funds provided to this 
     account in previous Military Construction Appropriation Acts 
     to reflect savings from favorable foreign currency 
     fluctuations as proposed by the Senate. The House bill 
     proposed rescinding these funds in section 128 of the General 
     Provisions.


                    military construction, air force

                         (Including Rescission)

       The conference agreement appropriates $1,080,247,000 for 
     Military Construction, Air Force, instead of $964,302,000 as 
     proposed by the House and $1,175,617,000 as proposed by the 
     Senate. This amount reflects $5,000,000 in savings that 
     result from the re-estimation of inflation. Within this 
     amount, the conference agreement earmarks $72,283,000 for 
     study, planning, design, architect and engineer services 
     instead of $78,951,000 as proposed by the House and 
     $87,555,000 as proposed by the Senate. The conference 
     agreement rescinds $13,281,000 from funds provided to this 
     account in previous Military Construction Appropriation Acts. 
     The rescission includes $10,281,000 to reflect savings from 
     favorable foreign currency fluctuations as proposed by the 
     Senate. The House bill proposed rescinding these savings in 
     section 128 of the General Provisions. In addition, the 
     rescission includes $3,000,000 from funds appropriated in 
     Public Law 107-64 for the civil engineer maintenance complex 
     at Osan Air Base in Korea. The Defense Department has 
     informed Congress that this project was canceled due to the 
     U.S.-Korea Land Partnership Plan signed on March 29, 2002.
       Air Mobility Modernization Program.--The conference 
     agreement includes $25,000,000 above the budget request to 
     assist in the Air Force's mobility modernization program. The 
     Senate proposed $100,000,000 for this initiative. The House 
     did not include a similar proposal. This funding is to 
     support infrastructure requirements related to the 
     implementation of this program. It is the intent of the 
     conferees that the Air Force has the discretion to determine 
     how these funds will be allocated in support of 
     transformation, subject to notification to the congressional 
     defense committees 15 days prior to the obligation of these 
     funds.
       Arizona--Luke Air Force Base: Land Acquisition.--The 
     conferees agree to provide $13,000,000 to be used for a land 
     acquisition to preserve access to the Barry M. Goldwater 
     Range (BMGR), to prevent incompatible land uses and 
     encroachment, and to increase the margin of safety in the 
     Live Ordnance Departure Area (LODA) southwest of Luke Air 
     Force Base.
       North Dakota--Minot Air Force Base: Cruise Missile Storage 
     Facility, Phase I.--Although the conferees were able to fund 
     only Phase I of this project due to funding constraints, the 
     conferees recognize the importance of this facility and 
     strongly urge the Air Force to include full funding to 
     complete the project in its fiscal year 2004 budget 
     submission.


                  Military Construction, Defense-wide

              (Including Transfer and Rescission of Funds)

       The conference agreement appropriates $874,645,000 for 
     Military Construction, Defense-wide, instead of $901,066,000 
     as proposed by the House and $927,242,000 as proposed by the 
     Senate. This amount reflects $3,000,000 in savings that 
     result from the re-estimation of inflation. Within this 
     amount, the conference agreement earmarks $50,432,000 for 
     study, planning, design, architect and engineer services 
     instead of $45,432,000 as proposed by the House and 
     $57,789,000 as proposed by the Senate. The conference 
     agreement rescinds $2,976,000 from funds provided to this 
     account in previous Military Construction Appropriation Acts 
     to reflect savings from favorable foreign currency 
     fluctuations as proposed by the Senate. The House bill 
     proposed rescinding these funds in section 128 of the General 
     Provisions.
       California--Presidio of Monterey: Medical Clinic 
     Expansion.--The conferees are aware that the current medical 
     clinic located at the Presidio of Monterey, which serves both 
     the Defense Language Institute and the Naval Postgraduate 
     School, must annually turn away 10,000 active duty family 
     members and a large retiree population of 20,000 because of 
     insufficient clinic space for primary care and selected 
     specialty care. This situation is further exacerbated by the 
     increased student enrollment at the Defense Language 
     Institute to meet the language training demands of Operation 
     Enduring Freedom. Therefore, the conferees encourage the 
     Department to make this project a priority and program the 
     requirement within the Future Years Defense Plan.
       Chemical Demilitarization.--The conference agreement 
     reduces the budget request for the Ammunition 
     Demilitarization Facility (Phase V) project at Aberdeen 
     Proving Ground, Maryland by $10,000,000 rather than a general 
     reduction to the chemical demilitarization program as 
     proposed by the Senate. The House did not include a similar 
     reduction. The reduced amount reflects revised facility 
     requirements resulting from the acceleration initiative for 
     the destruction of chemical agents at Aberdeen Proving 
     Ground.
       The conferees are pleased with the Army's proposal to 
     accelerate the neutralization of chemical agents and urge the 
     Department of Defense to execute it as quickly as possible. 
     The chemicals stored at these sites create health and 
     environmental hazards.
       As a result of revisions to accelerate the chemical 
     demilitarization program, several military construction 
     projects at Aberdeen Proving Ground have been terminated, 
     leaving partially-completed structures. The conferees support 
     the Department of the Army efforts to redesign and complete 
     these partially-constructed buildings to meet other military 
     construction needs. The conferees urge the Department of 
     Defense to reach firm decisions on the re-use of these 
     buildings without further delay. The Department is directed 
     to submit a report to the congressional defense committees no 
     later than December 31, 2002, on plans for re-use of existing 
     and partially-constructed chemical demilitarization buildings 
     at Aberdeen Proving Ground that are not needed as a result of 
     the accelerated program. The conferees encourage the use of 
     available funds to complete planning and design for re-use of 
     the partially-constructed buildings during fiscal year 2003, 
     and urge the Department to include the redesigned projects in 
     the fiscal year 2004 budget submission.
       In addition, the conferees agree to delete language 
     proposed by the House and not included by the Senate, that 
     makes $84,400,000 contingent upon the program meeting 
     milestones agreed upon by the Secretary of Defense and the 
     Office of Management and Budget. This language is not 
     necessary and potentially could cause Chemical Weapons 
     Convention Treaty compliance issues.
       Energy Conservation Improvement Program.--The conferees 
     agree to reduce this program by $15,000,000 due to 
     substantial prior year unobligated balances.
       Texas--Kingsville Naval Air Station: Replace Fuel Farm.--
     The conferees agree this project should be executed with 
     funds made available for planning and design in this account 
     rather than with funds in the ``Military Construction, Navy'' 
     account, as proposed by the Senate.


               Military Construction, Army National Guard

       The conference agreement appropriates $241,377,000 for 
     Military Construction, Army National Guard, instead of 
     $159,672,000 as proposed by the House and $208,482,000 as 
     proposed by the Senate. This amount reflects $1,000,000 in 
     savings that result from the re-estimation of inflation.
       Indiana--Gary: Army Aviation Support Facility and Readiness 
     Center.--In response to the additional needs of homeland 
     security and the protection of metropolitan areas, the 
     conferees encourage the Army National Guard to include this 
     project in its fiscal year 2004 budget submission.
       Iowa--Waterloo: Readiness Center Addition.--Of the funds 
     provided for unspecified minor construction in this account, 
     the conferees urge the Army National Guard to provide 
     $1,388,400 for an addition to the Readiness Center at 
     Waterloo, Iowa.
       Mississippi--Tupelo: Army Aviation Support Facility.--Of 
     the amount provided for planning and design in this account, 
     the conferees direct that not less than $891,000 be made 
     available to design this facility instead of $879,000 for 
     design of the Readiness Center at Tupelo, Mississippi as 
     proposed by the House.
       Pennsylvania--Fort Indiantown Gap: Multipurpose Training 
     Range.--Of the funds provided for planning and design in this 
     account, the conferees direct that not less than $1,400,000 
     be made available to design this project.


               Military Construction, Air National Guard

       The conference agreement appropriates $203,813,000 for 
     Military Construction, Air National Guard, instead of 
     $119,613,000 as proposed by the House and $217,988,000 as 
     proposed by the Senate.
       Massachusetts--Otis Air National Guard Base: Fire Crash 
     Rescue Station/Control Tower.--The conferees agree this 
     project

[[Page 19812]]

     should be executed with funds made available for planning and 
     design in this account as proposed by the House rather than 
     with funds in the ``Military Construction, Air Force'' 
     account, as proposed by the Senate.
       Minnesota--Duluth International Airport: Aircraft 
     Maintenance Complex and Shops, Phase II.--The conferees were 
     unable to fully fund the final phases of this project due to 
     funding constraints. Mindful of the importance of the 
     facility, the conferees strongly urge the Air National Guard 
     to provide full funding to complete the project in its fiscal 
     year 2004 budget submission.
       Ohio--Toledo Express Airport: Replace Logistics Complex.--
     Of the funds provided for planning and design in this 
     account, the conferees direct that not less than $472,000 be 
     made available for the design of this facility.


                  Military Construction, Army Reserve

       The conference agreement appropriates $100,554,000 for 
     Military Construction, Army Reserve, instead of $99,059,000 
     as proposed by the House and $66,487,000 as proposed by the 
     Senate.


                  Military Construction, Naval Reserve

       The conference agreement appropriates $74,921,000 for 
     Military Construction, Naval Reserve, instead of $75,821,000 
     as proposed by the House and $58,671,000 as proposed by the 
     Senate.


                Military Construction, Air Force Reserve

       The conference agreement appropriates $67,226,000 for 
     Military Construction, Air Force Reserve, instead of 
     $75,276,000 as proposed by the House and $58,209,000 as 
     proposed by the Senate.


     North Atlantic Treaty Organization Security Investment Program

       Due to savings that result from the re-estimation of 
     inflation, the conferees agree to reduce this appropriation 
     from $168,200,000 to $167,200,000.
       The conferees agree to clarify Senate report language 
     directing the Department to identify the level of funding 
     anticipated for NATO enlargement and Partnership for Peace. 
     This report should be provided to the Committees on 
     Appropriations no later than June 15, 2003.


                   Family Housing Construction, Army

                         (Including Rescission)

       The conference agreement appropriates $280,356,000 for 
     Family Housing Construction, Army, instead of $283,346,000 as 
     proposed by the House and $282,856,000 as proposed by the 
     Senate. This amount reflects $2,000,000 in savings that 
     result from the re-estimation of inflation. The conference 
     agreement rescinds $4,920,000 from funds provided to this 
     account in previous Military Construction Appropriation Acts 
     to reflect savings from favorable foreign currency 
     fluctuations as proposed by the Senate. The House bill 
     proposed rescinding these funds in section 128 of the General 
     Provisions.
       Germany-Stuttgart: General Officer Quarters.--In light of 
     the symbolic importance of the Deputy Commander-in-Chief's 
     European Command residence in Stuttgart, the conferees deny 
     the budget request for $990,000 to build the new on-post 
     General Officer Quarters (GOQ). The House proposed to fully 
     fund the project. The Senate proposed to reduce the project 
     by $490,000.


             Family Housing Operation and Maintenance, Army

       Due to savings that result from the re-estimation of 
     inflation and a $5,000,000 reduction for excessive housing 
     privatization consulting costs, the conferees agree to reduce 
     this appropriation from $1,119,007,000 to $1,106,007,000.


           Family Housing Construction, Navy and Marine Corps

                         (Including Rescission)

       The conference agreement appropriates $376,468,000 for 
     Family Housing Construction, Navy and Marine Corps, instead 
     of $380,268,000 as proposed by the House and $374,468,000 as 
     proposed by the Senate. This amount reflects $3,000,000 in 
     savings that result from the re-estimation of inflation. The 
     conference agreement rescinds $2,652,000 from funds provided 
     to this account in previous Military Construction 
     Appropriation Acts to reflect savings from favorable foreign 
     currency fluctuations. The House bill proposed rescinding 
     these funds in section 128 of the General Provisions.


    Family Housing Operation and Maintenance, Navy and Marine Corps

       Due to savings that result from the re-estimation of 
     inflation, the conferees agree to reduce this appropriation 
     from $867,788,000 to $861,788,000.


                 Family Housing Construction, Air Force

                         (Including Rescission)

       The conference agreement appropriates $684,824,000 for 
     Family Housing Construction, Air Force, instead of 
     $689,824,000 as proposed by the House and $676,694,000 as 
     proposed by the Senate. This amount reflects $5,000,000 in 
     savings that result from the re-estimation of inflation. The 
     conference agreement rescinds $8,782,000 from funds provided 
     to this account in previous Military Construction 
     Appropriation Acts to reflect savings from favorable foreign 
     currency fluctuations as proposed by the Senate. The House 
     bill proposed rescinding these funds in section 128 of the 
     General Provisions.


          Family Housing Operation and Maintenance, Air Force

       Due to savings that result from the re-estimation of 
     inflation and a $5,000,000 reduction for excessive housing 
     privatization consulting costs, the conferees agree to reduce 
     this appropriation from $874,050,000 to $863,050,000.


                  Base Realignment and Closure Account

       The conference agreement appropriates $561,138,000 for the 
     Base Realignment and Closure Account, instead of $545,138,000 
     as proposed by the House and $645,138,000 as proposed by the 
     Senate. This amount reflects $4,000,000 in savings that 
     result from the re-estimation of inflation.
       Environmental Cleanup Acceleration Initiative.--The 
     conference agreement includes $20,000,000 above the budget 
     request to accelerate the pace of environmental cleanup at 
     closed or realigned military installations. The Senate 
     proposed $100,000,000 for this initiative. The House did not 
     include a similar proposal. Based on requirements identified 
     by the services, the conferees direct that, of the additional 
     funding provided, $11,000,000 be made available for the Navy, 
     $6,000,000 for the Air Force, and $3,000,000 for the Army.


                           General Provisions

       The conference agreement includes general provisions 
     (sections 101-120) that were not amended by either the House 
     or Senate in their versions of the bill.
       The conference agreement includes a provision, section 121, 
     as proposed by the House, which prohibits the expenditure of 
     funds except in compliance with the Buy American Act. The 
     Senate bill contained no similar provision.
       The conference agreement includes a provision, section 122, 
     as proposed by the House, which states the recipients of 
     equipment or products purchased with funds provided in this 
     Act should be notified that they must purchase American-made 
     equipment and products. The Senate bill contained no similar 
     provision.
       The conference agreement includes a provision renumbered 
     section 123, as proposed by the Senate, permitting the 
     transfer of funds from Family Housing Construction accounts 
     to the Family Housing Improvement Fund. The House bill 
     contained a similar provision with additional language 
     permitting the transfer of funds from unaccompanied housing 
     projects in the Military Construction accounts to the Family 
     Housing Improvement Fund to support barracks privatization. 
     Without prejudice to the concept, the conferees agree to 
     delete language as proposed by the House allowing the service 
     components to intermingle family housing and unaccompanied 
     housing funds for the purpose of privatizing barracks 
     projects. Rather than authorizing these expenditures, the 
     conferees prefer to wait for policy guidance from the 
     authorizing committees.
       Areas of concern, however, are the unknown consequences of 
     co-mingling these funds to the integrity of the audit trail. 
     Specifically, the conferees are concerned that the Department 
     of Defense and Congress must be able to clearly identify and 
     track the financial advantages of privatizing unaccompanied 
     barracks versus the traditional military construction 
     approach. Especially during this pilot program, a merger of 
     family housing and unaccompanied housing funding would not 
     allow for a true comparison. Without that analysis, the 
     Congress will not be able to determine the best approach to 
     provide funds for unaccompanied housing.
       The conference agreement includes a provision renumbered 
     section 124, as proposed by the Senate, to prohibit the 
     obligation of funds for Partnership for Peace programs in the 
     New Independent States of the former Soviet Union. The House 
     bill contained no similar provision. The Administration 
     requested eliminating this limitation on providing NATO 
     Security Investment Program (NSIP) funds for non-NATO 
     countries that participate in Partnership for Peace programs. 
     The conferees are concerned that NSIP funds are already 
     oversubscribed and that expanding the scope of the program 
     beyond NATO membership would compound an already serious 
     problem. However, the conferees agree that the matter can be 
     re-addressed should the Department have compelling and 
     specific reasons to make NSIP funds available beyond the 
     alliance.
       The conference agreement includes a provision renumbered 
     section 125, as proposed by the House and the Senate, which 
     requires the Secretary of Defense to notify Congressional 
     Committees sixty days prior to issuing a solicitation for a 
     contract with the private sector for military family housing.
       The conference agreement includes a provision renumbered 
     section 126, as proposed by the Senate, which provides 
     transfer authority from the Base Realignment and Closure 
     (BRAC) account to the Homeowners Assistance Program. The 
     House bill contained a similar provision with additional 
     language providing transfer authority from the operation and 
     maintenance accounts in the Department of Defense 
     Appropriations Bill to the Homeowners Assistance Program.
       The conference agreement includes a provision renumbered 
     section 127, as proposed by the Senate, regarding funding for 
     operation and maintenance of general officer quarters. The 
     House provision did not authorize after-the-fact notification 
     for costs associated with environmental remediation.

[[Page 19813]]

       The conference agreement includes a provision renumbered 
     section 128, as proposed by the House, authorizing the use of 
     private funds for the construction, improvement, repair, and 
     maintenance of historic residences at 8th and I Marine 
     Barracks in Washington, D.C. The conferees agree to modify 
     the provision by changing the authorization expiration from 
     September 30, 2006 to September 30, 2004. The conferees 
     direct the Secretary of the Navy to submit a report no later 
     than February 28, 2003, outlining: (1) the current status of 
     renovation efforts at 8th and I; (2) the total funds expended 
     to date on renovation efforts (appropriated funds and private 
     funds); (3) the current balance of the Friends of the Home of 
     the Commandant's Fund, Fund activities to date, and future 
     activities planned for the Fund; and (4) the overall 
     projected cost of the renovation efforts at 8th and I.
       The conference agreement includes a provision renumbered 
     section 129, as proposed by the House, which limits funds 
     from being transferred from this appropriation measure into 
     any new instrumentality without authority from an 
     appropriation Act. The Senate bill contained no similar 
     provision.
       The conference agreement includes a provision renumbered 
     section 130, as proposed by the House, which transfers 
     amounts appropriated for a physical fitness center at Camp 
     Kyle, Korea, to a similar project at Camp Bonifas, Korea. The 
     Senate bill contained no similar provision.
       The conference agreement includes a provision renumbered 
     section 131, as proposed by the Senate, which directs the 
     Department of Defense to accurately reflect the cost of 
     environmental remediation activities in its future budget 
     submissions for the Base Realignment and Closure (BRAC) 
     account. The House bill contained no similar provision.
       Those general provisions not included in the conference 
     agreement are as follows:
       The conference agreement deletes the House provision 
     rescinding funds from various accounts to reflect savings 
     from favorable foreign currency fluctuations.
       The conference agreement deletes the House provision 
     limiting funds from being expended to prepare conveyance 
     documents at the former Fort Ord in California.
       The conference agreement deletes the House provision 
     limiting funds provided in this Act from being used to 
     relocate the headquarters of U.S. Army, South.
       The conference agreement deletes Senate sections 127 
     through 131. The projects provided in these provisions were 
     considered within the full scope of projects in conference. 
     Projects included in the conference agreement are provided in 
     the state list accompanying this report.

[[Page 19814]]

     
     


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                   CONFERENCE TOTAL--WITH COMPARISONS

       The total new budget (obligational) authority for the 
     fiscal year 2003 recommended by the Committee of Conference, 
     with comparisons to the fiscal year 2002 amount, the 2003 
     budget estimates, and the House and Senate bills for 2003 
     follows:

                       [In thousands of dollars]

New budget (obligational) authority, fiscal year 2002.......$10,604,400
Budget estimates of new (obligational) authority, fiscal year 29,664,04
House bill, fiscal year 2003.................................10,083,000
Senate bill, fiscal year 2003................................10,622,000
Conference agreement, fiscal year 2003.......................10,499,000
Conference agreement compared with:
  New budget (obligational) authority, fiscal year 2002........-105,400
  Budget estimates of new (obligational) authority, fiscal year+834,959
  House bill, fiscal year 2003.................................+416,000
  Senate bill, fiscal year 2003................................-123,000

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

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

                          ____________________