[Congressional Record (Bound Edition), Volume 148 (2002), Part 9]
[Senate]
[Pages 12150-12220]
[From the U.S. Government Publishing Office, www.gpo.gov]




        NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 2003

  On June 27, 2002, the Senate amended and passed S. 2514, as follows:

                                S. 2514

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``National Defense 
     Authorization Act for Fiscal Year 2003''.

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

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

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

            DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATIONS

                          TITLE I--PROCUREMENT

              Subtitle A--Authorization of Appropriations

Sec. 101. Army.
Sec. 102. Navy and Marine Corps.
Sec. 103. Air Force.
Sec. 104. Defense-wide activities.
Sec. 105. Defense Inspector General.
Sec. 106. Chemical agents and munitions destruction, defense.
Sec. 107. Defense health programs.

                       Subtitle B--Army Programs

Sec. 111. Pilot program on sales of manufactured articles and services 
              of certain Army industrial facilities without regard to 
              availability from domestic sources.

                       Subtitle C--Navy Programs

Sec. 121. Integrated bridge system.
Sec. 122. Extension of multiyear procurement authority for DDG-51 class 
              destroyers.
Sec. 123. Maintenance of scope of cruiser conversion of Ticonderoga 
              class AEGIS cruisers.
Sec. 124. Marine Corps live fire range improvements.

                     Subtitle D--Air Force Programs

Sec. 131. C-130J aircraft program.
Sec. 132. Pathfinder programs.
Sec. 133. Oversight of acquisition for defense space programs.
Sec. 134. Leasing of tanker aircraft.
Sec. 135. Compass Call program.
Sec. 136. Sense of Congress regarding assured access to space.
Sec. 137. Mobile emergency broadband system.

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

              Subtitle A--Authorization of Appropriations

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

    Subtitle B--Program Requirements, Restrictions, and Limitations

Sec. 211. Basic seismic research program for support of national 
              requirements for monitoring nuclear explosions.
Sec. 212. Advanced SEAL Delivery System.
Sec. 213. Army experimentation program regarding design of the 
              objective force.
Sec. 214. Reallocation of amount available for indirect fire programs.
Sec. 215. Laser welding and cutting demonstration.
Sec. 216. Analysis of emerging threats.
Sec. 217. Prohibition on transfer of Medical Free Electron Laser 
              program.
Sec. 218. Demonstration of renewable energy use.
Sec. 219A. Radar power technology for the Army.
Sec. 219B. Critical infrastructure protection.
Sec. 219C. Theater Aerospace Command and Control Simulation Facility 
              upgrades.
Sec. 219D. DDG optimized manning initiative.
Sec. 219E. Agroterrorist attacks.
Sec. 219F. Very high speed support vessel for the Army.
Sec. 219G. Full-scale high-speed permanent magnet generator.
Sec. 219H. Aviation-shipboard information technology initiative.
Sec. 219I. Aerospace Relay Mirror System (ARMS) Demonstration.
Sec. 219J. Littoral ship program.

                  Subtitle C--Missile Defense Programs

Sec. 221. Annual operational assessments and reviews of ballistic 
              missile defense program.
Sec. 222. Report on Midcourse Defense program.
Sec. 223. Report on Air-based Boost program.
Sec. 224. Report on Theater High Altitude Area Defense program.
Sec. 225. References to new name for Ballistic Missile Defense 
              Organization.
Sec. 226. Limitation on use of funds for nuclear armed interceptors.
Sec. 227. Reports on flight testing of Ground-based Midcourse national 
              missile defense system.

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

Sec. 231. Department of Defense Test and Evaluation Resource 
              Enterprise.
Sec. 232. Transfer of testing funds from program accounts to 
              infrastructure accounts.
Sec. 233. Increased investment in test and evaluation facilities.
Sec. 234. Uniform financial management system for Department of Defense 
              test and evaluation facilities.
Sec. 235. Test and evaluation workforce improvements.
Sec. 236. Compliance with testing requirements.
Sec. 237. Report on implementation of Defense Science Board 
              recommendations.

                       Subtitle E--Other Matters

Sec. 241. Pilot programs for revitalizing Department of Defense 
              laboratories.
Sec. 242. Technology transition initiative.
Sec. 243. Encouragement of small businesses and nontraditional defense 
              contractors to submit proposals potentially beneficial 
              for combating terrorism.
Sec. 244. Vehicle fuel cell program.
Sec. 245. Defense nanotechnology research and development program.
Sec. 246. Activities and assessment of the Defense Experimental Program 
              to Stimulate Competitive Research.
Sec. 247. Four-year extension of authority of DARPA to award prizes for 
              advanced technology achievements.

                  TITLE III--OPERATION AND MAINTENANCE

              Subtitle A--Authorization of Appropriations

Sec. 301. Operation and maintenance funding.
Sec. 302. Working capital funds.
Sec. 303. Armed Forces Retirement Home.
Sec. 304. Range Enhancement Initiative Fund.
Sec. 305. Navy Pilot Human Resources Call Center, Cutler, Maine.
Sec. 306. National Army Museum, Fort Belvoir, Virginia.
Sec. 307. Disposal of obsolete vessels of the National Defense Reserve 
              Fleet.

                  Subtitle B--Environmental Provisions

Sec. 311. Enhancement of authority on cooperative agreements for 
              environmental purposes.
Sec. 312. Modification of authority to carry out construction projects 
              for environmental responses.
Sec. 313. Increased procurement of environmentally preferable products.
Sec. 314. Cleanup of unexploded ordnance on Kaho'olawe Island, Hawaii.

               Subtitle C--Defense Dependents' Education

Sec. 331. Assistance to local educational agencies that benefit 
              dependents of members of the Armed Forces and Department 
              of Defense civilian employees.
Sec. 332. Impact aid for children with severe disabilities.
Sec. 333. Options for funding dependent summer school programs.
Sec. 334. Comptroller General study of adequacy of compensation 
              provided for teachers in the Department of Defense 
              Overseas Dependents' Schools.

                       Subtitle D--Other Matters

Sec. 341. Use of humanitarian and civic assistance funds for reserve 
              component members of Special Operations Command engaged 
              in activities relating to clearance of landmines.
Sec. 342. Calculation of five-year period of limitation for Navy-Marine 
              Corps Intranet contract.
Sec. 343. Reimbursement for reserve component intelligence support.
Sec. 344. Rebate agreements under the special supplemental food 
              program.

[[Page 12151]]

Sec. 345. Logistics support and services for weapon systems 
              contractors.
Sec. 346. Continuation of Arsenal support program initiative.
Sec. 347. Two-year extension of authority of the Secretary of Defense 
              to engage in commercial activities as security for 
              intelligence collection activities abroad.
Sec. 348. Installation and connection policy and procedures regarding 
              Defense Switch Network.
Sec. 349. Engineering study and environmental analysis of road 
              modifications in vicinity of Fort Belvoir, Virginia.
Sec. 350. Extension of work safety demonstration program.
Sec. 351. Lift support for mine warfare ships and other vessels.
Sec. 352. Navy data conversion activities.

              TITLE IV--MILITARY PERSONNEL AUTHORIZATIONS

                       Subtitle A--Active Forces

Sec. 401. End strengths for active forces.
Sec. 402. Authority to increase strength and grade limitations to 
              account for reserve component members on active duty in 
              support of a contingency operation.
Sec. 403. Increased allowance for number of Marine Corps general 
              officers on active duty in grades above major general.
Sec. 404. Increase in authorized strengths for Marine Corps officers on 
              active duty in the grade of colonel.

                       Subtitle B--Reserve Forces

Sec. 411. End strengths for Selected Reserve.
Sec. 412. End strengths for Reserves on active duty in support of the 
              reserves.
Sec. 413. End strengths for military technicians (dual status).
Sec. 414. Fiscal year 2003 limitations on non-dual status technicians.

              Subtitle C--Authorization of Appropriations

Sec. 421. Authorization of appropriations for military personnel.

                   TITLE V--MILITARY PERSONNEL POLICY

                  Subtitle A--Officer Personnel Policy

Sec. 501. Extension of certain requirements and exclusions applicable 
              to service of general and flag officers on active duty in 
              certain joint duty assignments.
Sec. 502. Extension of authority to waive requirement for significant 
              joint duty experience for appointment as a chief of a 
              reserve component or a National Guard director.
Sec. 503. Repeal of limitation on authority to grant certain officers a 
              waiver of required sequence for joint professional 
              military education and joint duty assignment.
Sec. 504. Extension of temporary authority for recall of retired 
              aviators.
Sec. 505. Increased grade for heads of nurse corps.
Sec. 506. Reinstatement of authority to reduce service requirement for 
              retirement in grades above O-4.

             Subtitle B--Reserve Component Personnel Policy

Sec. 511. Time for commencement of initial period of active duty for 
              training upon enlistment in reserve component.
Sec. 512. Authority for limited extension of medical deferment of 
              mandatory retirement or separation of reserve component 
              officer.
Sec. 513. Repeal of prohibition on use of Air Force Reserve AGR 
              personnel for Air Force base security functions.

                   Subtitle C--Education and Training

Sec. 521. Increase in authorized strengths for the service academies.

           Subtitle D--Decorations, Awards, and Commendations

Sec. 531. Waiver of time limitations for award of certain decorations 
              to certain persons.
Sec. 532. Korea Defense Service Medal.

                  Subtitle E--National Call to Service

Sec. 541. Enlistment incentives for pursuit of skills to facilitate 
              national service.
Sec. 542. Military recruiter access to institutions of higher 
              education.

                       Subtitle F--Other Matters

Sec. 551. Biennial surveys on racial, ethnic, and gender issues.
Sec. 552. Leave required to be taken pending review of a recommendation 
              for removal by a board of inquiry.
Sec. 553. Stipend for participation in funeral honors details.
Sec. 554. Wear of abayas by female members of the Armed Forces in Saudi 
              Arabia.

          TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS

                     Subtitle A--Pay and Allowances

Sec. 601. Increase in basic pay for fiscal year 2003.
Sec. 602. Rate of basic allowance for subsistence for enlisted 
              personnel occupying single Government quarters without 
              adequate availability of meals.
Sec. 603. Basic allowance for housing in cases of low-cost or no-cost 
              moves.
Sec. 604. Temporary authority for higher rates of partial basic 
              allowance for housing for certain members assigned to 
              housing under alternative authority for acquisition and 
              improvement of military housing.

           Subtitle B--Bonuses and Special and Incentive Pays

Sec. 611. One-year extension of certain bonus and special pay 
              authorities for reserve forces.
Sec. 612. One-year extension of certain bonus and special pay 
              authorities for certain health care professionals.
Sec. 613. One-year extension of special pay and bonus authorities for 
              nuclear officers.
Sec. 614. One-year extension of other bonus and special pay 
              authorities.
Sec. 615. Increased maximum amount payable as multiyear retention bonus 
              for medical officers of the Armed Forces.
Sec. 616. Increased maximum amount payable as incentive special pay for 
              medical officers of the Armed Forces.
Sec. 617. Assignment incentive pay.
Sec. 618. Increased maximum amounts for prior service enlistment bonus.

            Subtitle C--Travel and Transportation Allowances

Sec. 631. Deferral of travel in connection with leave between 
              consecutive overseas tours.
Sec. 632. Transportation of motor vehicles for members reported 
              missing.
Sec. 633. Destinations authorized for Government paid transportation of 
              enlisted personnel for rest and recuperation upon 
              extending duty at designated overseas locations.
Sec. 634. Vehicle storage in lieu of transportation to certain areas of 
              the United States outside continental United States.

          Subtitle D--Retirement and Survivor Benefit Matters

Sec. 641. Payment of retired pay and compensation to disabled military 
              retirees.
Sec. 642. Increased retired pay for enlisted Reserves credited with 
              extraordinary heroism.
Sec. 643. Expanded scope of authority to waive time limitations on 
              claims for military personnel benefits.

                       Subtitle E--Other Matters

Sec. 651. Additional authority to provide assistance for families of 
              members of the Armed Forces.
Sec. 652. Time limitation for use of Montgomery GI Bill entitlement by 
              members of the Selected Reserve.
Sec. 653. Status of obligation to refund educational assistance upon 
              failure to participate satisfactorily in Selected 
              Reserve.
Sec. 654. Prohibition on acceptance of honoraria by personnel at 
              certain Department of Defense schools.
Sec. 655. Rate of educational assistance under Montgomery GI Bill of 
              dependents transferred entitlement by members of the 
              Armed Forces with critical skills.
Sec. 656. Payment of interest on student loans.
Sec. 657. Modification of amount of back pay for members of Navy and 
              Marine Corps selected for promotion while interned as 
              prisoners of war during World War II to take into account 
              changes in Consumer Price Index.

                         TITLE VII--HEALTH CARE

Sec. 701. Eligibility of surviving dependents for TRICARE dental 
              program benefits after discontinuance of former 
              enrollment.
Sec. 702. Advance authorization for inpatient mental health services.
Sec. 703. Continued TRICARE eligibility of dependents residing at 
              remote locations after departure of sponsors for 
              unaccompanied assignments.
Sec. 704. Approval of medicare providers as TRICARE providers.
Sec. 705. Claims information.
Sec. 706. Department of Defense Medicare-Eligible Retiree Health Care 
              Fund.
Sec. 707. Technical corrections relating to transitional health care 
              for members separated from active duty.
Sec. 708. Extension of temporary authority for entering into personal 
              services contracts for the performance of health care 
              responsibilities for the Armed Forces at locations other 
              than military medical treatment facilities.
Sec. 709. Restoration of previous policy regarding restrictions on use 
              of Department of Defense medical facilities.

[[Page 12152]]

Sec. 710. Health care under TRICARE for TRICARE beneficiaries receiving 
              medical care as veterans from the Department of Veterans 
              Affairs.

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

             Subtitle A--Major Defense Acquisition Programs

Sec. 801. Buy-to-budget acquisition of end items.
Sec. 802. Report to Congress on incremental acquisition of major 
              systems.
Sec. 803. Pilot program for spiral development of major systems.
Sec. 804. Improvement of software acquisition processes.
Sec. 805. Independent technology readiness assessments.
Sec. 806. Timing of certification in connection with waiver of 
              survivability and lethality testing requirements.

              Subtitle B--Procurement Policy Improvements

Sec. 811. Performance goals for contracting for services.
Sec. 812. Grants of exceptions to cost or pricing data certification 
              requirements and waivers of cost accounting standards.
Sec. 813. Extension of requirement for annual report on defense 
              commercial pricing management improvement.
Sec. 814. Internal controls on the use of purchase cards.
Sec. 815. Assessment regarding fees paid for acquisitions under other 
              agencies' contracts.
Sec. 816. Pilot program for transition to follow-on contracts for 
              certain prototype projects.
Sec. 817. Waiver authority for domestic source or content requirements.

                       Subtitle C--Other Matters

Sec. 821. Extension of the applicability of certain personnel 
              demonstration project exceptions to an acquisition 
              workforce demonstration project.
Sec. 822. Moratorium on reduction of the defense acquisition and 
              support workforce.
Sec. 823. Extension of contract goal for small disadvantaged businesses 
              and certain institutions of higher education.
Sec. 824. Mentor-Protege Program eligibility for HUBZone small business 
              concerns and small business concerns owned and controlled 
              by service-disabled veterans.
Sec. 825. Repeal of requirements for certain reviews by the Comptroller 
              General.
Sec. 826. Multiyear procurement authority for purchase of dinitrogen 
              tetroxide, hydrazine, and hydrazine-related products.
Sec. 827. Multiyear procurement authority for environmental services 
              for military installations.
Sec. 828. Increased maximum amount of assistance for tribal 
              organizations or economic enterprises carrying out 
              procurement technical assistance programs in two or more 
              service areas.
Sec. 829. Authority for nonprofit organizations to self-certify 
              eligibility for treatment as qualified organizations 
              employing severely disabled under Mentor-Protege Program.
Sec. 830. Report on effects of Army Contracting Agency.

      TITLE IX--DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT

Sec. 901. Time for submittal of report on Quadrennial Defense Review.
Sec. 902. Increased number of Deputy Commandants authorized for the 
              Marine Corps.
Sec. 903. Base operating support for Fisher Houses.
Sec. 904. Prevention and mitigation of corrosion.
Sec. 905. Western Hemisphere Institute for Security Cooperation.
Sec. 906. Veterinary Corps of the Army.
Sec. 907. Under Secretary of Defense for Intelligence.

                      TITLE X--GENERAL PROVISIONS

                     Subtitle A--Financial Matters

Sec. 1001. Transfer authority.
Sec. 1002. Reallocation of authorizations of appropriations from 
              ballistic missile defense to shipbuilding.
Sec. 1003. Authorization of appropriations for continued operations for 
              the war on terrorism.
Sec. 1004. Authorization of emergency supplemental appropriations for 
              fiscal year 2002.
Sec. 1005. United States contribution to NATO common-funded budgets in 
              fiscal year 2003.
Sec. 1006. Development and implementation of financial management 
              enterprise architecture.
Sec. 1007. Departmental accountable officials in the Department of 
              Defense.
Sec. 1008. Department-wide procedures for establishing and liquidating 
              personal pecuniary liability.
Sec. 1009. Travel card program integrity.
Sec. 1010. Clearance of certain transactions recorded in Treasury 
              suspense accounts and resolution of certain check 
              issuance discrepancies.
Sec. 1011. Additional amount for ballistic missile defense or combating 
              terrorism in accordance with national security priorities 
              of the President.
Sec. 1012. Availability of amounts for Oregon Army National Guard for 
              Search and Rescue and Medical Evacuation missions in 
              adverse weather conditions.

                Subtitle B--Naval Vessels and Shipyards

Sec. 1021. Number of Navy surface combatants in active and reserve 
              service.
Sec. 1022. Plan for fielding the 155-millimeter gun on a surface 
              combatant.
Sec. 1023. Report on initiatives to increase operational days of Navy 
              ships.
Sec. 1024. Annual long-range plan for the construction of ships for the 
              Navy.

                   Subtitle C--Reporting Requirements

Sec. 1031. Repeal and modification of various reporting requirements 
              applicable with respect to the Department of Defense.
Sec. 1032. Annual report on weapons to defeat hardened and deeply 
              buried targets.
Sec. 1033. Revision of date of annual report on counterproliferation 
              activities and programs.
Sec. 1034. Quadrennial quality of life review.
Sec. 1035. Reports on efforts to resolve whereabouts and status of 
              Captain Michael Scott Speicher, United States Navy.
Sec. 1036. Report on efforts to ensure adequacy of fire fighting staffs 
              at military installations.
Sec. 1037. Report on designation of certain Louisiana highway as 
              defense access road.
Sec. 1038. Plan for five-year program for enhancement of measurement 
              and signatures intelligence capabilities.
Sec. 1039. Report on volunteer services of members of the reserve 
              components in emergency response to the terrorist attacks 
              of September 11, 2001.
Sec. 1040. Biannual reports on contributions to proliferation of 
              weapons of mass destruction and delivery systems by 
              countries of proliferation concern.

                      Subtitle D--Homeland Defense

Sec. 1041. Homeland security activities of the National Guard.
Sec. 1042. Conditions for use of full-time Reserves to perform duties 
              relating to defense against weapons of mass destruction.
Sec. 1043. Weapon of mass destruction defined for purposes of the 
              authority for use of Reserves to perform duties relating 
              to defense against weapons of mass destruction.
Sec. 1044. Report on Department of Defense homeland defense activities.
Sec. 1045. Strategy for improving preparedness of military 
              installations for incidents involving weapons of mass 
              destruction.

                       Subtitle E--Other Matters

Sec. 1061. Continued applicability of expiring Governmentwide 
              information security requirements to the Department of 
              Defense.
Sec. 1062. Acceptance of voluntary services of proctors for 
              administration of Armed Services Vocational Aptitude 
              Battery.
Sec. 1063. Extension of authority for Secretary of Defense to sell 
              aircraft and aircraft parts for use in responding to oil 
              spills.
Sec. 1064. Amendments to Impact Aid program.
Sec. 1065. Disclosure of information on Shipboard Hazard and Defense 
              project to Department of Veterans Affairs.
Sec. 1066. Transfer of historic DF-9E Panther aircraft to Women 
              Airforce Service Pilots Museum.
Sec. 1067. Rewards for assistance in combating terrorism.
Sec. 1068. Provision of space and services to military welfare 
              societies.
Sec. 1069. Commendation of military chaplains.
Sec. 1070. Grant of Federal charter to Korean War Veterans Association, 
              Incorporated.

       TITLE XI--DEPARTMENT OF DEFENSE CIVILIAN PERSONNEL POLICY

Sec. 1101. Extension of authority to pay severance pay in a lump sum.
Sec. 1102. Extension of voluntary separation incentive pay authority.

[[Page 12153]]

Sec. 1103. Extension of cost-sharing authority for continued FEHBP 
              coverage of certain persons after separation from 
              employment.
Sec. 1104. Eligibility of nonappropriated funds employees to 
              participate in the Federal employees long-term care 
              insurance program.
Sec. 1105. Increased maximum period of appointment under the 
              experimental personnel program for scientific and 
              technical personnel.
Sec. 1106. Qualification requirements for employment in Department of 
              Defense professional accounting positions.
Sec. 1107. Housing benefits for unaccompanied teachers required to live 
              at Guantanamo Bay Naval Station, Cuba.

              TITLE XII--MATTERS RELATING TO OTHER NATIONS

  Subtitle A--Cooperative Threat Reduction With States of the Former 
                              Soviet Union

Sec. 1201. Specification of Cooperative Threat Reduction programs and 
              funds.
Sec. 1202. Funding allocations.
Sec. 1203. Authorization of use of Cooperative Threat Reduction funds 
              for projects and activities outside the former Soviet 
              Union.
Sec. 1204. Waiver of limitations on assistance under programs to 
              facilitate cooperative threat reduction and 
              nonproliferation.
Sec. 1205. Russian tactical nuclear weapons.

                       Subtitle B--Other Matters

Sec. 1211. Administrative support and services for coalition liaison 
              officers.
Sec. 1212. Use of Warsaw Initiative funds for travel of officials from 
              partner countries.
Sec. 1213. Support of United Nations-sponsored efforts to inspect and 
              monitor Iraqi weapons activities.
Sec. 1214. Arctic and Western Pacific Environmental Cooperation 
              Program.
Sec. 1215. Department of Defense HIV/AIDS prevention assistance 
              program.
Sec. 1216. Monitoring implementation of the 1979 United States-China 
              Agreement on Cooperation in Science and Technology.

            DIVISION B--MILITARY CONSTRUCTION AUTHORIZATIONS

Sec. 2001. Short title.

                            TITLE XXI--ARMY

Sec. 2101. Authorized Army construction and land acquisition projects.
Sec. 2102. Family housing.
Sec. 2103. Improvements to military family housing units.
Sec. 2104. Authorization of appropriations, Army.
Sec. 2105. Modification of authority to carry out certain fiscal year 
              2002 projects.
Sec. 2106. Modification of authority to carry out certain fiscal year 
              2000 project.
Sec. 2107. Modification of authority to carry out certain fiscal year 
              1999 project.
Sec. 2108. Modification of authority to carry out certain fiscal year 
              1997 project.
Sec. 2109. Modification of authority to carry out certain fiscal year 
              2001 project.
Sec. 2110. Planning and design for anechoic chamber at White Sands 
              Missile Range, New Mexico.

                            TITLE XXII--NAVY

Sec. 2201. Authorized Navy construction and land acquisition projects.
Sec. 2202. Family housing.
Sec. 2203. Improvements to military family housing units.
Sec. 2204. Authorization of appropriations, Navy.
Sec. 2205. Modification to carry out certain fiscal year 2002 projects.

                         TITLE XXIII--AIR FORCE

Sec. 2301. Authorized Air Force construction and land acquisition 
              projects.
Sec. 2302. Family housing.
Sec. 2303. Improvements to military family housing units.
Sec. 2304. Authorization of appropriations, Air Force.
Sec. 2305. Authority for use of military construction funds for 
              construction of public road near Aviano Air Base, Italy, 
              closed for force protection purposes.
Sec. 2306. Additional project authorization for air traffic control 
              facility at Dover Air Force Base, Delaware.
Sec. 2307. Availability of funds for consolidation of materials 
              computational research facility at Wright-Patterson Air 
              Force Base, Ohio.

                      TITLE XXIV--DEFENSE AGENCIES

Sec. 2401. Authorized Defense Agencies construction and land 
              acquisition projects.
Sec. 2402. Improvements to military family housing units.
Sec. 2403. Energy conservation projects.
Sec. 2404. Authorization of appropriations, Defense Agencies.

   TITLE XXV--NORTH ATLANTIC TREATY ORGANIZATION SECURITY INVESTMENT 
                                PROGRAM

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

            TITLE XXVI--GUARD AND RESERVE FORCES FACILITIES

Sec. 2601. Authorized guard and reserve construction and land 
              acquisition projects.
Sec. 2602. Army National Guard Reserve Center, Lane County, Oregon.
Sec. 2603. Additional project authorization for Composite Support 
              Facility for Illinois Air National Guard.

        TITLE XXVII--EXPIRATION AND EXTENSION OF AUTHORIZATIONS

Sec. 2701. Expiration of authorizations and amounts required to be 
              specified by law.
Sec. 2702. Extension of authorizations of certain fiscal year 2000 
              projects.
Sec. 2703. Extension of authorizations of certain fiscal year 1999 
              projects.
Sec. 2704. Effective date.

                    TITLE XXVIII--GENERAL PROVISIONS

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

Sec. 2801. Lease of military family housing in Korea.
Sec. 2802. Repeal of source requirements for family housing 
              construction overseas.
Sec. 2803. Modification of lease authorities under alternative 
              authority for acquisition and improvement of military 
              housing.

        Subtitle B--Real Property and Facilities Administration

Sec. 2811. Agreements with private entities to enhance military 
              training, testing, and operations.
Sec. 2812. Conveyance of surplus real property for natural resource 
              conservation.
Sec. 2813. Modification of demonstration program on reduction in long-
              term facility maintenance costs.

                      Subtitle C--Land Conveyances

Sec. 2821. Conveyance of certain lands in Alaska no longer required for 
              National Guard purposes.
Sec. 2822. Land conveyance, Fort Campbell, Kentucky.
Sec. 2823. Modification of authority for land transfer and conveyance, 
              Naval Security Group Activity, Winter Harbor, Maine.
Sec. 2824. Land conveyance, Westover Air Reserve Base, Massachusetts.
Sec. 2825. Land conveyance, Naval Station Newport, Rhode Island.
Sec. 2826. Land exchange, Buckley Air Force Base, Colorado.
Sec. 2827. Land acquisition, Boundary Channel Drive Site, Arlington, 
              Virginia.
Sec. 2828. Land conveyances, Wendover Air Force Base Auxiliary Field, 
              Nevada.
Sec. 2829. Land conveyance, Fort Hood, Texas.
Sec. 2830. Land conveyances, Engineer Proving Ground, Fort Belvoir, 
              Virginia.
Sec. 2831. Master plan for use of Navy Annex, Arlington, Virginia.
Sec. 2832. Land conveyance, Sunflower Army Ammunition Plant, Kansas.
Sec. 2833. Land conveyance, Bluegrass Army Depot, Richmond, Kentucky.

                       Subtitle D--Other Matters

Sec. 2841. Transfer of funds for acquisition of replacement property 
              for National Wildlife Refuge system lands in Nevada.

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

      TITLE XXXI--DEPARTMENT OF ENERGY NATIONAL SECURITY PROGRAMS

         Subtitle A--National Security Programs Authorizations

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

                Subtitle B--Recurring General Provisions

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

[[Page 12154]]

Sec. 3130. Transfer of weapons activities funds.

   Subtitle C--Program Authorizations, Restrictions, and Limitations

Sec. 3131. Availability of funds for environmental management cleanup 
              reform.
Sec. 3132. Robust Nuclear Earth Penetrator.
Sec. 3133. Database to track notification and resolution phases of 
              Significant Finding Investigations.
Sec. 3134. Requirements for specific request for new or modified 
              nuclear weapons.
Sec. 3135. Requirement for authorization by law for funds obligated or 
              expended for Department of Energy national security 
              activities.
Sec. 3136. Limitation on availability of funds for program to eliminate 
              weapons grade plutonium production in Russia.

                   Subtitle D--Proliferation Matters

Sec. 3151. Administration of program to eliminate weapons grade 
              plutonium production in Russia.
Sec. 3152. Repeal of requirement for reports on obligation of funds for 
              programs on fissile materials in Russia.
Sec. 3153. Expansion of annual reports on status of nuclear materials 
              protection, control, and accounting programs.
Sec. 3154. Testing of preparedness for emergencies involving nuclear, 
              radiological, chemical, or biological weapons.
Sec. 3155. Program on research and technology for protection from 
              nuclear or radiological terrorism.
Sec. 3156. Expansion of international materials protection, control, 
              and accounting program.
Sec. 3157. Accelerated disposition of highly enriched uranium and 
              plutonium.
Sec. 3158. Disposition of plutonium in Russia.
Sec. 3159. Strengthened international security for nuclear materials 
              and safety and security of nuclear operations.
Sec. 3160. Export control programs.
Sec. 3161. Improvements to nuclear materials protection, control, and 
              accounting program of the Russian Federation.
Sec. 3162. Comprehensive annual report to Congress on coordination and 
              integration of all United States nonproliferation 
              activities.
Sec. 3163. Utilization of Department of Energy national laboratories 
              and sites in support of counterterrorism and homeland 
              security activities.

                       Subtitle E--Other Matters

Sec. 3171. Indemnification of Department of Energy contractors.
Sec. 3172. Worker health and safety rules for Department of Energy 
              facilities.
Sec. 3173. One-year extension of authority of Department of Energy to 
              pay voluntary separation incentive payments.
Sec. 3174. Support for public education in the vicinity of Los Alamos 
              National Laboratory, New Mexico.

Subtitle F--Disposition of Weapons-Usable Plutonium at Savannah River, 
                             South Carolina

Sec. 3181. Findings.
Sec. 3182. Disposition of weapons-usable plutonium at Savannah River 
              Site.
Sec. 3183. Study of facilities for storage of plutonium and plutonium 
              materials at Savannah River Site.

          TITLE XXXII--DEFENSE NUCLEAR FACILITIES SAFETY BOARD

Sec. 3201. Authorization.
Sec. 3202. Authorization of appropriations for the formerly used sites 
              remedial action program of the Corps of Engineers.

     SEC. 3. CONGRESSIONAL DEFENSE COMMITTEES DEFINED.

       For purposes of this Act, the term ``congressional defense 
     committees'' means--
       (1) the Committee on Armed Services and the Committee on 
     Appropriations of the Senate; and
       (2) the Committee on Armed Services and the Committee on 
     Appropriations of the House of Representatives.

            DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATIONS

                          TITLE I--PROCUREMENT

              Subtitle A--Authorization of Appropriations

     SEC. 101. ARMY.

       Funds are hereby authorized to be appropriated for fiscal 
     year 2003 for procurement for the Army as follows:
       (1) For aircraft, $2,144,386,000.
       (2) For missiles, $1,653,150,000.
       (3) For weapons and tracked combat vehicles, 
     $2,242,882,000.
       (4) For ammunition, $1,205,499,000.
       (5) For other procurement, $5,513,679,000.

     SEC. 102. NAVY AND MARINE CORPS.

       (a) Navy.--Funds are hereby authorized to be appropriated 
     for fiscal year 2003 for procurement for the Navy as follows:
       (1) For aircraft, $9,037,209,000.
       (2) For weapons, including missiles and torpedoes, 
     $2,505,820,000.
       (3) For shipbuilding and conversion, $8,624,160,000.
       (4) For other procurement, $4,515,500,000.
       (b) Marine Corps.--Funds are hereby authorized to be 
     appropriated for fiscal year 2003 for procurement for the 
     Marine Corps in the amount of $1,341,219,000.
       (c) Navy and Marine Corps Ammunition.--Funds are hereby 
     authorized to be appropriated for fiscal year 2003 for 
     procurement of ammunition for the Navy and the Marine Corps 
     in the amount of $1,173,157,000.

     SEC. 103. AIR FORCE.

       Funds are hereby authorized to be appropriated for fiscal 
     year 2003 for procurement for the Air Force as follows:
       (1) For aircraft, $12,613,605,000.
       (2) For ammunition, $1,275,864,000.
       (3) For missiles, $3,258,162,000.
       (4) For other procurement, $10,477,840,000.

     SEC. 104. DEFENSE-WIDE ACTIVITIES.

       Funds are hereby authorized to be appropriated for fiscal 
     year 2003 for Defense-wide procurement in the amount of 
     $3,054,943,000.

     SEC. 105. DEFENSE INSPECTOR GENERAL.

       Funds are hereby authorized to be appropriated for fiscal 
     year 2003 for procurement for the Inspector General of the 
     Department of Defense in the amount of $2,000,000.

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

       There is hereby authorized to be appropriated for the 
     Office of the Secretary of Defense for fiscal year 2003 the 
     amount of $1,490,199,000 for--
       (1) the destruction of lethal chemical agents and munitions 
     in accordance with section 1412 of the Department of Defense 
     Authorization Act, 1986 (50 U.S.C. 1521); and
       (2) the destruction of chemical warfare materiel of the 
     United States that is not covered by section 1412 of such 
     Act.

     SEC. 107. DEFENSE HEALTH PROGRAMS.

       Funds are hereby authorized to be appropriated for fiscal 
     year 2003 for the Department of Defense for procurement for 
     carrying out health care programs, projects, and activities 
     of the Department of Defense in the total amount of 
     $278,742,000.

                       Subtitle B--Army Programs

     SEC. 111. PILOT PROGRAM ON SALES OF MANUFACTURED ARTICLES AND 
                   SERVICES OF CERTAIN ARMY INDUSTRIAL FACILITIES 
                   WITHOUT REGARD TO AVAILABILITY FROM DOMESTIC 
                   SOURCES.

       (a) Extension of Program.--Subsection (a) of section 141 of 
     the National Defense Authorization Act for Fiscal Year 1998 
     (Public Law 105-85; 10 U.S.C. 4543 note) is amended by 
     striking ``through 2002'' in the first sentence and inserting 
     ``through 2004''.
       (b) Use of Overhead Funds Made Surplus by Sales.--Such 
     section is further amended--
       (1) by redesignating subsection (c) as subsection (d); and
       (2) by inserting after subsection (b) the following new 
     subsection (c):
       ``(c) For each Army industrial facility participating in 
     the pilot program that sells manufactured articles and 
     services in a total amount in excess of $20,000,000 in any 
     fiscal year, the amount equal to one-half of one percent of 
     such total amount shall be transferred from the sums in the 
     Army Working Capital Fund for unutilized plant capacity to 
     appropriations available for the following fiscal year for 
     the demilitarization of conventional ammunition by the 
     Army.''.
       (c) Update of Inspector General's Review.--The Inspector 
     General of the Department of Defense shall review the 
     experience under the pilot program carried out under section 
     141 of Public Law 105-85 and, not later than July 1, 2003, 
     submit to Congress a report on the results of the review. The 
     report shall contain the views, information, and 
     recommendations called for under subsection (d) of such 
     section (as redesignated by subsection (b)(1)). In carrying 
     out the review and preparing the report, the Inspector 
     General shall take into consideration the report submitted to 
     Congress under such subsection (as so redesignated).

                       Subtitle C--Navy Programs

     SEC. 121. INTEGRATED BRIDGE SYSTEM.

       (a) Amount for Program.--Of the amount authorized to be 
     appropriated by section 102(a)(4), $5,000,000 shall be 
     available for the procurement of the integrated bridge system 
     in items less than $5,000,000.
       (b) Offsetting Reduction.--Of the total amount authorized 
     to be appropriated by section 102(a)(4), the amount available 
     for the integrated bridge system in Aegis support equipment 
     is hereby reduced by $5,000,000.

     SEC. 122. EXTENSION OF MULTIYEAR PROCUREMENT AUTHORITY FOR 
                   DDG-51 CLASS DESTROYERS.

       Section 122(b) of the National Defense Authorization Act 
     for Fiscal Year 1997 (Public Law 104-201; 110 Stat. 2446), as 
     amended by section 122 of Public Law 106-65 (113 Stat. 534) 
     and section 122(a) of the Floyd D. Spence National Defense 
     Authorization Act for Fiscal Year 2001 (as enacted into law 
     by Public Law 106-398; 114 Stat. 1654A-24), is further

[[Page 12155]]

     amended by striking ``October 1, 2005'' in the first sentence 
     and inserting ``October 1, 2007''.

     SEC. 123. MAINTENANCE OF SCOPE OF CRUISER CONVERSION OF 
                   TICONDEROGA CLASS AEGIS CRUISERS.

       The Secretary of the Navy should maintain the scope of the 
     cruiser conversion program for the Ticonderoga class of AEGIS 
     cruisers such that the program--
       (1) covers all 27 Ticonderoga class AEGIS cruisers; and
       (2) modernizes the class of cruisers to include an 
     appropriate mix of upgrades to ships' capabilities for 
     theater missile defense, naval fire support, and air 
     dominance.

     SEC. 124. MARINE CORPS LIVE FIRE RANGE IMPROVEMENTS.

       (a) Increase in Authorization of Appropriations.--The 
     amount authorized to be appropriated by section 102(b) for 
     procurement for the Marine Corps is hereby increased by 
     $1,900,000, with the amount of the increase to be allocated 
     to Training Devices.
       (b) Availability.--(1) Of the amount authorized to be 
     appropriated by section 102(b) for procurement for the Marine 
     Corps, as increased by subsection (a), $1,900,000 shall be 
     available as follows:
       (A) For upgrading live fire range target movers.
       (B) To bring live fire range radio controls into compliance 
     with Federal Communications Commission narrow band 
     requirements.
       (2) Amounts available under paragraph (1) for the purposes 
     set forth in that paragraph are in addition to any other 
     amounts available in this Act for such purposes.
       (c) Offsetting Reduction.--The amount authorized to be 
     appropriated by section 103(1) for the C-17 interim 
     contractor support is reduced by $1,900,000.

                     Subtitle D--Air Force Programs

     SEC. 131. C-130J AIRCRAFT PROGRAM.

       (a) Multiyear Procurement Authority.--Beginning with the 
     fiscal year 2003 program year, the Secretary of the Air Force 
     may, in accordance with section 2306b of title 10, United 
     States Code, enter into a multiyear contract for the 
     procurement of C-130J aircraft and variants of the C-130J 
     aircraft, subject to subsection (b), and except that, 
     notwithstanding subsection (k) of such section, such a 
     contract may be for a period of six program years.
       (b) Limitation.--The Secretary of the Air Force may not 
     enter into a multiyear contract authorized by subsection (a) 
     until the C-130J aircraft has been cleared for worldwide 
     over-water capability.

     SEC. 132. PATHFINDER PROGRAMS.

       (a) Spiral Development Plan for Selected Pathfinder 
     Programs.--Not later than February 1, 2003, the Secretary of 
     the Air Force shall--
       (1) identify among the pathfinder programs listed in 
     subsection (e) each pathfinder program that the Secretary 
     shall conduct as a spiral development program; and
       (2) submit to the Secretary of Defense for each pathfinder 
     program identified under paragraph (1) a spiral development 
     plan that meets the requirements of section 803(c).
       (b) Approval or Disapproval of Spiral Development Plans.--
     Not later than March 15, 2003, the Secretary of Defense 
     shall--
       (1) review each spiral development plan submitted under 
     subsection (a)(2);
       (2) approve or disapprove the conduct as a spiral 
     development plan of the pathfinder program covered by each 
     such spiral development plan; and
       (3) submit to the congressional defense committees a copy 
     of each spiral development plan approved under paragraph (2).
       (c) Assessment of Pathfinder Programs Not Selected or 
     Approved for Spiral Development.--Not later than March 15, 
     2003, each official of the Department of Defense specified in 
     subsection (d) shall submit to the congressional defense 
     committees the assessment required of such official under 
     that subsection for the acquisition plan for each pathfinder 
     program as follows:
       (1) Each pathfinder program that is not identified by the 
     Secretary of the Air Force under subsection (a)(1) as a 
     program that the Secretary shall conduct as a spiral 
     development program.
       (2) Each pathfinder program that is disapproved by the 
     Secretary of Defense for conduct as a spiral development 
     program under subsection (b)(2).
       (d) Officials and Required Assessments for Programs Outside 
     Spiral Development.--The officials specified in this 
     subsection, and the assessment required of such officials, 
     are as follows:
       (1) The Director of Operational Test and Evaluation, who 
     shall assess the test contents of the acquisition plan for 
     each pathfinder program covered by subsection (c).
       (2) The Chairman of the Joint Requirements Oversight 
     Council, who shall assess the extent to which the acquisition 
     plan for each such pathfinder program addresses validated 
     military requirements.
       (3) The Under Secretary of Defense (Comptroller), in 
     coordination with the Under Secretary of Defense for 
     Acquisition, Technology, and Logistics, who shall conduct an 
     independent programmatic evaluation of the acquisition plan 
     for each such pathfinder program, including an analysis of 
     the total cost, schedule, and technical risk associated with 
     development of such program.
       (e) Pathfinder Programs.--The pathfinder programs listed in 
     this subsection are the program as follows:
       (1) Space Based Radar.
       (2) Global Positioning System.
       (3) Global Hawk.
       (4) Combat Search and Rescue.
       (5) B-2 Radar.
       (6) Predator B.
       (7) B-1 Defensive System Upgrade.
       (8) Multi Mission Command and Control Constellation.
       (9) Unmanned Combat Air Vehicle.
       (10) Global Transportation Network.
       (11) C-5 Avionics Modernization Program.
       (12) Hunter/Killer.
       (13) Tanker/Lease.
       (14) Small Diameter Bomb.
       (15) KC-767.
       (16) AC-130 Gunship.

     SEC. 133. OVERSIGHT OF ACQUISITION FOR DEFENSE SPACE 
                   PROGRAMS.

       (a) In General.--The Office of the Secretary of Defense 
     shall maintain oversight of acquisition for defense space 
     programs.
       (b) Report on Oversight.--(1) Not later than March 15, 
     2003, the Secretary of Defense shall submit to the 
     congressional defense committees a detailed plan on how the 
     Office of the Secretary of Defense shall provide oversight of 
     acquisition for defense space programs.
       (2) The plan shall set forth the following:
       (A) The organizations in the Office of the Secretary of 
     Defense, and the Joint Staff organizations, to be involved in 
     oversight of acquisition for defense space programs.
       (B) The process for the review of defense space programs by 
     the organizations specified under subparagraph (A).
       (C) The process for the provision by such organizations of 
     technical, programmatic, scheduling, and budgetary advice on 
     defense space programs to the Deputy Secretary of Defense and 
     the Under Secretary of the Air Force.
       (D) The process for the development of independent cost 
     estimates for defense space programs, including the 
     organization responsible for developing such cost estimates 
     and when such cost estimates shall be required.
       (E) The process for the development of the budget for 
     acquisition for defense space programs.
       (F) The process for the resolution of issues regarding 
     acquisition for defense space programs that are raised by the 
     organizations specified under subparagraph (A).
       (c) Defense Space Program Defined.--In this section, the 
     term ``defense space program'' means any major defense 
     acquisition program (as that term is defined in section 2430 
     of title 10, United States Code) for the acquisition of--
       (1) space-based assets, space launch assets, or user 
     equipment for such assets; or
       (2) earth-based or spaced-based assets dedicated primarily 
     to space surveillance or space control.

     SEC. 134. LEASING OF TANKER AIRCRAFT.

       The Secretary of the Air Force shall not enter into any 
     lease for tanker aircraft until the Secretary submits the 
     report required by section 8159(c)(6) of the Department of 
     Defense Appropriations Act, 2002 (division A of Public Law 
     107-117; 115 Stat. 2284) and obtains authorization and 
     appropriation of funds necessary to enter into a lease for 
     such aircraft consistent with his publicly stated commitments 
     to the Congress to do so.

     SEC. 135. COMPASS CALL PROGRAM.

       Of the amount authorized to be appropriated by section 
     103(1), $12,700,000 shall be available for the Compass Call 
     program within classified projects and not within the Defense 
     Airborne Reconnaissance Program.

     SEC. 136. SENSE OF CONGRESS REGARDING ASSURED ACCESS TO 
                   SPACE.

       (a) Findings.--Congress makes the following findings:
       (1) Assured access to space is a vital national security 
     interest of the United States.
       (2) The Evolved Expendable Launch Vehicle program of the 
     Department of Defense is a critical element of the 
     Department's plans for assuring United States access to 
     space.
       (3) Significant contractions in the commercial space launch 
     marketplace have eroded the overall viability of the United 
     States space launch industrial base and could hamper the 
     ability of the Department of Defense to provide assured 
     access to space in the future.
       (4) The continuing viability of the United States space 
     launch industrial base is a critical element of any strategy 
     to ensure the long-term ability of the United States to 
     assure access to space.
       (5) The Under Secretary of the Air Force, as acquisition 
     executive for space programs in the Department of Defense, 
     has been authorized to develop a strategy to address United 
     States space launch and assured access to space requirements.
       (b) Sense of Congress.--It is the sense of Congress that 
     the Under Secretary of the Air Force should--
       (1) evaluate all options for sustaining the United States 
     space launch industrial base;
       (2) develop an integrated, long-range, and adequately 
     funded plan for assuring United States access to space; and
       (3) submit to Congress a report on the plan at the earliest 
     opportunity practicable.

[[Page 12156]]



     SEC. 137. MOBILE EMERGENCY BROADBAND SYSTEM.

       (a) Amount for Program.--Of the total amount authorized to 
     be appropriated by section 103(4), $1,000,000 may be 
     available for the procurement of technical communications-
     electronics equipment for the Mobile Emergency Broadband 
     System.
       (b) Offsetting Reduction.--Of the total amount authorized 
     to be appropriated by section 103(4), the amount available 
     under such section for the Navy for other procurement for gun 
     fire control equipment, SPQ-9B solid state transmitter, is 
     hereby reduced by $1,000,000.

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

              Subtitle A--Authorization of Appropriations

     SEC. 201. AUTHORIZATION OF APPROPRIATIONS.

       Funds are hereby authorized to be appropriated for fiscal 
     year 2003 for the use of the Department of Defense for 
     research, development, test, and evaluation as follows:
       (1) For the Army, $7,297,033,000.
       (2) For the Navy, $12,927,135,000.
       (3) For the Air Force, $18,608,684,000.
       (4) For Defense-wide activities, $17,543,927,000, of which 
     $361,554,000 is authorized for the Director of Operational 
     Test and Evaluation.

     SEC. 202. AMOUNT FOR SCIENCE AND TECHNOLOGY.

       (a) Amount for Projects.--Of the total amount authorized to 
     be appropriated by section 201, $10,164,358,000 shall be 
     available for science and technology projects.
       (b) Science and Technology Defined.--In this section, the 
     term ``science and technology project'' means work funded in 
     program elements for defense research, development, test, and 
     evaluation under Department of Defense budget activities 1, 
     2, or 3.

     SEC. 203. DEFENSE HEALTH PROGRAMS.

       Funds are hereby authorized to be appropriated for fiscal 
     year 2003 for the Department of Defense for research, 
     development, test, and evaluation for carrying out health 
     care programs, projects, and activities of the Department of 
     Defense in the total amount of $67,214,000.

    Subtitle B--Program Requirements, Restrictions, and Limitations

     SEC. 211. BASIC SEISMIC RESEARCH PROGRAM FOR SUPPORT OF 
                   NATIONAL REQUIREMENTS FOR MONITORING NUCLEAR 
                   EXPLOSIONS.

       (a) Management of Program.--(1) The Secretary of the Air 
     Force shall manage the Department of Defense program of basic 
     seismic research in support of national requirements for 
     monitoring nuclear explosions. The Secretary shall manage the 
     program in the manner necessary to support Air Force mission 
     requirements relating to the national requirements.
       (2) The Secretary shall act through the Director of the Air 
     Force Research Laboratory in carrying out paragraph (1).
       (c) Amount for Program.--Of the amount authorized to be 
     appropriated by section 201(4), $20,000,000 shall be 
     available for the program referred to in subsection (a).

     SEC. 212. ADVANCED SEAL DELIVERY SYSTEM.

       To the extent provided in appropriations Acts, the 
     Secretary of Defense may use for research, development, test, 
     and evaluation for the Advanced SEAL Delivery System any 
     funds that were authorized to be appropriated to the 
     Department of Defense for fiscal year 2002 for the 
     procurement of that system, were appropriated pursuant to 
     such authorization of appropriations, and are no longer 
     needed for that purpose.

     SEC. 213. ARMY EXPERIMENTATION PROGRAM REGARDING DESIGN OF 
                   THE OBJECTIVE FORCE.

       (a) Requirement for Report.--Not later than March 30, 2003, 
     the Secretary of the Army shall submit to Congress a report 
     on the experimentation program regarding design of the 
     objective force that is required by subsection (g) of section 
     113 of the Floyd D. Spence National Defense Authorization Act 
     for Fiscal Year 2001, as added by section 113 of the National 
     Defense Authorization Act for Fiscal Year 2002 (Public Law 
     107-107; 115 Stat. 1029).
       (b) Budget Display.--Amounts provided for the 
     experimentation program in the budget for fiscal year 2004 
     that is submitted to Congress under section 1105(a) of title 
     31, United States Code, shall be displayed as a distinct 
     program element in that budget and in the supporting 
     documentation submitted to Congress by the Secretary of 
     Defense.

     SEC. 214. REALLOCATION OF AMOUNT AVAILABLE FOR INDIRECT FIRE 
                   PROGRAMS.

       (a) Reduction of Amount for Crusader.--Of the amount 
     authorized to be appropriated by section 201(1) for the Army 
     for research, development, test, and evaluation, the amount 
     available for continued research and development of the 
     Crusader artillery system is hereby reduced by $475,600,000.
       (b) Increase of Amount for Future Combat Systems.--Of the 
     amount authorized to be appropriated by section 201(1) for 
     the Army for research, development, test, and evaluation, the 
     amount available for research and development for the 
     Objective Force indirect fire systems is hereby increased by 
     $475,600,000. The amount of the increase shall be available 
     only for meeting the needs of the Army for indirect fire 
     capabilities, and may not be used under the authority of this 
     section until 30 days after the date on which the Secretary 
     of Defense submits to the congressional defense committees 
     the report required by subsection (d), together with a 
     notification of the Secretary's plan to use such funds to 
     meet the needs of the Army for indirect fire capabilities.
       (c) Use of Funds.--Subject to subsection (b), the Secretary 
     of Defense may use the amount available under such subsection 
     for any program for meeting the needs of the Army for 
     indirect fire capabilities.
       (d) Reporting Requirement.--(1) Not later than 30 days 
     after the date of the enactment of this Act, the Chief of 
     Staff of the Army shall complete a review of the full range 
     of Army programs that could provide improved indirect fire 
     for the Army over the next 20 years and shall submit to the 
     Secretary of Defense a report containing the recommendation 
     of the Chief of Staff on which alternative for improving 
     indirect fire for the Army is the best alternative for that 
     purpose. The report shall also include information on each of 
     the following funding matters:
       (A) The manner in which the amount available under 
     subsection (b) should be best invested to support the 
     improvement of indirect fire capabilities for the Army.
       (B) The manner in which the amount provided for indirect 
     fire programs of the Army in the future-years defense program 
     submitted to Congress with respect to the budget for fiscal 
     year 2003 under section 221 of title 10, United States Code, 
     should be best invested to support improved indirect fire for 
     the Army.
       (C) The manner in which the amounts described in 
     subparagraphs (A) and (B) should be best invested to support 
     the improvement of indirect fire capabilities for the Army in 
     the event of a termination of the Crusader artillery system 
     program.
       (D) The portion of the amount available under subsection 
     (b) that should be reserved for paying costs associated with 
     a termination of the Crusader artillery system program in the 
     event of such a termination.
       (2) The Secretary of Defense shall submit the report, 
     together with any comments and recommendations that the 
     Secretary considers appropriate, to the congressional defense 
     committees.
       (e) Annual Updates.--(1) The Secretary shall submit to the 
     congressional defense committees, at the same time that the 
     President submits the budget for a fiscal year referred to in 
     paragraph (4) to Congress under section 1105(a) of title 31, 
     United States Code, a report on the investments proposed to 
     be made in indirect fire programs for the Army.
       (2) If the Crusader artillery system program has been 
     terminated by the time the annual report is submitted in 
     conjunction with the budget for a fiscal year, the report 
     shall--
       (A) identify the amount proposed for expenditure for the 
     Crusader artillery system program for that fiscal year in the 
     future-years defense program that was submitted to Congress 
     in 2002 under section 221 of title 10, United States Code; 
     and
       (B) specify--
       (i) the manner in which the amount provided in that budget 
     would be expended for improved indirect fire capabilities for 
     the Army; and
       (ii) the extent to which the expenditures in that manner 
     would improve indirect fire capabilities for the Army.
       (3) The requirement to submit an annual report under 
     paragraph (1) shall apply with respect to budgets for fiscal 
     years 2004, 2005, 2006, 2007, and 2008.

     SEC. 215. LASER WELDING AND CUTTING DEMONSTRATION.

       (a) Amount for Program.--Of the total amount authorized to 
     be appropriated by section 201(2) for research, development, 
     test, and evaluation for the Navy, $6,000,000 shall be 
     available for the laser welding and cutting demonstration in 
     force protection applied research (PE 0602123N).
       (b) Offsetting Reduction.--Of the total amount authorized 
     to be appropriated by section 201(2) for research, 
     development, test, and evaluation for the Navy, the amount 
     available for laser welding and cutting demonstration in 
     surface ship and submarine HM&E advanced technology (PE 
     0603508N) is hereby reduced by $6,000,000.

     SEC. 216. ANALYSIS OF EMERGING THREATS.

       (a) Increase in Authorization of Appropriations.--The 
     amount authorized to be appropriated by section 201(2) for 
     research, development, test, and evaluation for the Navy is 
     hereby increased by $2,000,000 with the amount of the 
     increase to be allocated to Marine Corps Advanced Technology 
     Demonstration (ATD) (PE 0603640M).
       (b) Availability.--(1) Of the amount authorized to be 
     appropriated by section 201(2) for research, development, 
     test, and evaluation for the Navy, as increased by subsection 
     (a), $2,000,000 may be available for analysis of emerging 
     threats.
       (2) The amount available under paragraph (1) for analysis 
     of emerging threats is in addition to any other amounts 
     available under this Act for analysis of emerging threats.
       (c) Offset.--The amount authorized to be appropriated by 
     section 201(1) for research, development, test, and 
     evaluation for the Army is hereby reduced by $2,000,000, with

[[Page 12157]]

     the amount of the reduction allocated as follows:
       (1) $1,000,000 may be allocated to Weapons and Munitions 
     Technology (PE 0602624A) and available for countermobility 
     systems.
       (2) $1,000,000 may be allocated to Warfighter Advanced 
     Technology (PE 0603001A) and available for Objective Force 
     Warrior technologies.

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

       Notwithstanding any other provision of law, the Medical 
     Free Electron Laser Program (PE 0602227D8Z) may not be 
     transferred from the Department of Defense to the National 
     Institutes of Health, or to any other department or agency of 
     the Federal Government.

     SEC. 218. DEMONSTRATION OF RENEWABLE ENERGY USE.

       Of the amount authorized to be appropriated by section 
     201(2), $2,500,000 shall be available for the demonstration 
     of renewable energy use program within the program element 
     for the Navy energy program and not within the program 
     element for facilities improvement.

     SEC. 219A. RADAR POWER TECHNOLOGY FOR THE ARMY.

       (a) Increase in Authorization of Appropriations.--The 
     amount authorized to be appropriated by section 201(1) for 
     the Department of Defense for research, development, test, 
     and evaluation for the Army is hereby increased by 
     $4,500,000, with the amount of the increase to be allocated 
     to Army missile defense systems integration (DEM/VAL) (PE 
     0603308A).
       (b) Availability for Radar Power Technology.--(1) Of the 
     amount authorized to be appropriated by section 201(1) for 
     the Department of Defense for research, development, test, 
     and evaluation for the Army, as increased by subsection (a), 
     $4,500,000 shall be available for radar power technology.
       (2) The amount available under paragraph (1) for radar 
     power technology is in addition to any other amounts 
     available under this Act for such technology.
       (c) Offset.--The amount authorized to be appropriated by 
     section 201(2) for research, development, test, and 
     evaluation for the Navy is hereby reduced by $4,500,000, with 
     the amount of the reduction to be allocated to common picture 
     advanced technology (PE 0603235N).

     SEC. 219B. CRITICAL INFRASTRUCTURE PROTECTION.

       (a) Amount for Program.--Of the amount authorized to be 
     appropriated in section 201(4), $4,500,000 may be available 
     for critical infrastructure protection (PE 35190D8Z).
       (b) Offset.--Of the amount authorized to be appropriated by 
     section 201(2), the amount for power projection advanced 
     technology (PE 63114N) is hereby reduced by $4,500,000.

     SEC. 219C. THEATER AEROSPACE COMMAND AND CONTROL SIMULATION 
                   FACILITY UPGRADES.

       (a) Availability of Funds.--(1) The amount authorized to be 
     appropriated by section 201(3) for the Air Force for 
     wargaming and simulation centers (PE 0207605F) is increased 
     by $2,500,000. The total amount of the increase may be 
     available for Theater Aerospace Command and Control 
     Simulation Facility (TACCSF) upgrades.
       (2) The amount available under paragraph (1) for Theater 
     Aerospace Command and Control Simulation Facility upgrades is 
     in addition to any other amounts available under this Act for 
     such upgrades.
       (b) Offset.--The amount authorized to be appropriated by 
     section 201(2) for the Navy for Mine and Expeditionary 
     Warfare Applied Research (PE 0602782N) is reduced by 
     $2,500,000.

     SEC. 219D. DDG OPTIMIZED MANNING INITIATIVE.

       (a) Increase in Authorization of Appropriations.--The 
     amount authorized to be appropriated by section 201(2) for 
     research, development, test, and evaluation for the Navy is 
     hereby increased by $2,500,000, with the amount of the 
     increase to be allocated to surface combatant combat system 
     engineering (PE 0604307N).
       (b) Availability.--(1) Of the amount authorized to be 
     appropriated by section 201(2) for research, development, 
     test, and evaluation for the Navy, as increased by subsection 
     (a), $2,500,000 may be available for the DDG optimized 
     manning initiative.
       (2) The amount available under paragraph (1) for the 
     initiative referred to in that paragraph is in addition to 
     any other amounts available under this Act for that 
     initiative.
       (c) Offset.--The amount authorized to be appropriated by 
     section 201(1) for research, development, test, and 
     evaluation for artillery systems DEM/VAL (PE 0603854A), by 
     $2,500,000.

     SEC. 219E. AGROTERRORIST ATTACKS.

       (a) Availability.--(1) Of the amount authorized to be 
     appropriated by section 201(4) for research, development, 
     test, and evaluation, defense-wide, the amount available for 
     basic research for the Chemical and Biological Defense 
     Program (PE 0601384BP) is hereby increased by $1,000,000, 
     with the amount of such increase to be available for 
     research, analysis, and assessment of efforts to counter 
     potential agroterrorist attacks.
       (2) The amount available under paragraph (1) for research, 
     analysis, and assessment described in that paragraph is in 
     addition to any other amounts available in this Act for such 
     research, analysis, and assessment.
       (b) Offset.--Of the amount authorized to be appropriated by 
     section 201(4) for research, development, test, and 
     evaluation, Defense-wide, the amount available for biological 
     terrorism and agroterrorism risk assessment and prediction in 
     the program element relating to the Chemical and Biological 
     Defense Program (PE 0603384BP) is hereby reduced by 
     $1,000,000.

     SEC. 219F. VERY HIGH SPEED SUPPORT VESSEL FOR THE ARMY.

       (a) Increase in Authorization of Appropriations.--The 
     amount authorized to be appropriated by section 201(1) for 
     research, development, test, and evaluation for the Army is 
     hereby increased by $5,500,000, with the amount of the 
     increase to be allocated to logistics and engineering 
     equipment-advanced development (PE 0603804A).
       (b) Availability.--(1) Of the amount authorized to be 
     appropriated by section 201(1) for research, development, 
     test, and evaluation for the Army, as increased by subsection 
     (a), $5,500,000 may be available for development of a 
     prototype composite hull design to meet the theater support 
     vessel requirement.
       (2) The amount available under paragraph (1) for 
     development of the hull design referred to in that paragraph 
     is in addition to any other amounts available under this Act 
     for development of that hull design.
       (c) Offset.--The amount authorized to be appropriated by 
     section 201(2) for research, development, test, and 
     evaluation for the Navy is hereby decreased by $5,500,000, 
     with the amount of the decrease to be allocated to submarine 
     tactical warfare system (PE 0604562N) and amounts available 
     under that program element for upgrades of combat control 
     software to commercial architecture.

     SEC. 219G. FULL-SCALE HIGH-SPEED PERMANENT MAGNET GENERATOR.

       (a) Increase in Authorization of Appropriations.--The 
     amount authorized to be appropriated by section 201(2) for 
     research, development, test, and evaluation for the Navy is 
     hereby increased by $1,000,000, with the amount of the 
     increase to be allocated to Force Protection Advanced 
     Technology (PE 0603123N).
       (b) Availability.--(1) Of the amount authorized to be 
     appropriated by section 201(2) for research, development, 
     test, and evaluation for the Navy, as increased by subsection 
     (a), $1,000,000 may be available for development and 
     demonstration of a full-scale high-speed permanent magnet 
     generator.
       (2) The amount available under paragraph (1) for 
     development and demonstration of the generator described in 
     that paragraph is in addition to any other amounts available 
     in this Act for development and demonstration of that 
     generator.
       (c) Offset.--The amount authorized to be appropriated by 
     section 201(1) for research, development, test, and 
     evaluation for the Army is hereby reduced by $1,000,000, with 
     the amount of the reduction to be allocated to Artillery 
     Systems-Dem/Val (PE 0603854A).

     SEC. 219H. AVIATION-SHIPBOARD INFORMATION TECHNOLOGY 
                   INITIATIVE.

       Of the amount authorized to be appropriated by section 
     201(2) for shipboard aviation systems, up to $8,200,000 may 
     be used for the aviation-shipboard information technology 
     initiative.

     SEC. 219I. AEROSPACE RELAY MIRROR SYSTEM (ARMS) 
                   DEMONSTRATION.

       Of the amount authorized to be appropriated by section 
     201(3) for the Department of Defense for research, 
     development, test, and evaluation for the Air Force, 
     $6,000,000 may be available for the Aerospace Relay Mirror 
     System (ARMS) Demonstration.

     SEC. 219J. LITTORAL SHIP PROGRAM.

        (a) Amount for Program.--Of the amount authorized to be 
     appropriated by section 201(2) for research and development, 
     test and evaluation, Navy, $4,000,000 may be available for 
     requirements development of a littoral ship in Ship Concept 
     Advanced Design (PE 0603563N).
        (b) Offsetting Reduction.--Of the total amount authorized 
     to be appropriated by section 201(2) for research and 
     development, test and evaluation, Navy, the amount available 
     for FORCENET in Tactical Command System (PE 0604231N), is 
     hereby reduced by an additional $4,000,000.

                  Subtitle C--Missile Defense Programs

     SEC. 221. ANNUAL OPERATIONAL ASSESSMENTS AND REVIEWS OF 
                   BALLISTIC MISSILE DEFENSE PROGRAM.

       (a) Annual Operational Assessment.--(1)(A) During the first 
     quarter of each fiscal year, the Director of Operational Test 
     and Evaluation shall conduct an operational assessment of the 
     missile defense programs listed in paragraph (3).
       (B) The annual assessment shall include--
       (i) a detailed, quantitative evaluation of the potential 
     operational effectiveness, reliability, and suitability of 
     the system or systems under each program as the program 
     exists during the fiscal year of the assessment;
       (ii) an evaluation of the adequacy of testing through the 
     end of the previous fiscal year to measure and predict the 
     effectiveness of the systems; and
       (iii) a determination of the threats, or type of threats, 
     against which the systems would be expected to be effective 
     and those against which the systems would not be expected to 
     be effective.

[[Page 12158]]

       (C) The first assessment under this paragraph shall be 
     conducted during fiscal year 2003.
       (2) Not later than January 15 of each year, the Director of 
     Operational Test and Evaluation shall submit to the Secretary 
     of Defense and the congressional defense committees a report 
     on the assessment conducted during the preceding quarter-
     year. The report shall include the evaluation of the 
     potential of the system or systems together with a discussion 
     of the basis for the evaluation.
       (3) The requirement for an annual operational assessment 
     under paragraph (1) shall apply to programs under the United 
     States Missile Defense Agency as follows:
       (A) The Ground-based Midcourse Defense program.
       (B) The Sea-based Midcourse Defense program.
       (C) The Theater High Altitude Area Defense (THAAD) program.
       (D) The Air-based Boost program (formerly known as the 
     Airborne Laser Defense program).
       (b) Annual Requirements Reviews.--(1) During the first 
     quarter of each fiscal year, the Joint Requirements Oversight 
     Council established under section 181 of title 10, United 
     States Code, shall review the cost, schedule, and performance 
     criteria for the missile defense programs under the United 
     States Missile Defense Agency and assess the validity of the 
     criteria in relation to military requirements. The first 
     review shall be carried out in fiscal year 2003.
       (2) Not later than January 15 of each year, the Chairman of 
     the Joint Requirements Oversight Council shall submit to the 
     Secretary of Defense and the congressional defense committees 
     a report on the results of the review carried out under 
     paragraph (1) during the preceding quarter-year.

     SEC. 222. REPORT ON MIDCOURSE DEFENSE PROGRAM.

       (a) Requirement for Report.--Not later than January 15, 
     2003, the Secretary of Defense shall submit to the 
     congressional defense committees a report on the Midcourse 
     Defense program of the United States Missile Defense Agency. 
     The report shall include the following information:
       (1) The development schedule, together with an estimate of 
     the annual costs through the completion of development.
       (2) The planned procurement schedule, together with the 
     Secretary's best estimates of the annual costs of, and number 
     of units to be procured under, the program through the 
     completion of the procurement.
       (3) The current program acquisition unit cost and the 
     history of acquisition unit costs from the date the program 
     (including its antecedent program) was first included in a 
     Selected Acquisition Report under section 2432 of title 10, 
     United States Code.
       (4) The current procurement unit cost, and the history of 
     procurement unit costs from the date the program (including 
     any antecedent program) was first included in a Selected 
     Acquisition Report under such section 2432.
       (5) The reasons for any changes in program acquisition 
     cost, program acquisition unit cost, procurement cost, or 
     procurement unit cost, and the reasons for any changes in 
     program schedule.
       (6) The major contracts under the program and the reasons 
     for any changes in cost or schedule variances under the 
     contracts.
       (7) The Test and Evaluation Master Plan developed for the 
     program in accordance with the requirements and guidance of 
     Department of Defense regulation 5000.2-R.
       (b) Segregation of Ground-Based and Sea-Based Efforts.--The 
     report under subsection (a) shall separately display the 
     schedules, cost estimates, cost histories, contracts, and 
     test plans for--
       (1) the National Missile Defense/Ground-based Midcourse 
     Defense program; and
       (2) the Navy TheaterWide/Sea-based Midcourse Defense 
     program.

     SEC. 223. REPORT ON AIR-BASED BOOST PROGRAM.

       Not later than January 15, 2003, the Secretary of Defense 
     shall submit to the congressional defense committees a report 
     on the Air-based Boost program (formerly known as the 
     Airborne Laser program). The report shall contain the 
     following information:
       (1) The development schedule together with the estimated 
     annual costs of the program through the completion of 
     development.
       (2) The planned procurement schedule, together with the 
     Secretary's best estimates of the annual costs of, and number 
     of units to be procured under, the program through the 
     completion of the procurement.
       (3) The current program acquisition unit cost, and the 
     history of program acquisition unit costs from the date the 
     program (including any antecedent program) was first included 
     in a Selected Acquisition Report under section 2432 of title 
     10, United States Code.
       (4) The current procurement unit cost, and the history of 
     procurement unit costs from the date the program (including 
     any antecedent program) was first included in a Selected 
     Acquisition Report under such section 2432.
       (5) The reasons for any changes in program acquisition 
     cost, program acquisition unit cost, procurement cost, or 
     procurement unit cost, and the reasons for any changes in 
     program schedule.
       (6) The major contracts under the program and the reasons 
     for any changes in cost or schedule variances under the 
     contracts.
       (7) The Test and Evaluation Master Plan developed for the 
     program in accordance with the requirements and guidance of 
     Department of Defense regulation 5000.2-R.

     SEC. 224. REPORT ON THEATER HIGH ALTITUDE AREA DEFENSE 
                   PROGRAM.

       (a) Requirement for Report.--Not later than January 15, 
     2003, the Secretary of Defense shall submit to the 
     congressional defense committees a report on the Theater High 
     Altitude Area Defense program. The report shall contain the 
     following information:
       (1) The development schedule together with the estimated 
     annual costs of the program through the completion of 
     development.
       (2) The planned procurement schedule, together with the 
     Secretary's best estimates of the annual costs of, and number 
     of units to be procured under, the program through the 
     completion of the procurement.
       (3) The current program acquisition unit cost and the 
     history of program acquisition unit costs from the date the 
     program (including any antecedent program) was first included 
     in a Selected Acquisition Report under section 2432 of title 
     10, United States Code.
       (4) The current procurement unit cost, and the history of 
     procurement unit costs from the date the program (including 
     any antecedent program) was first included in a Selected 
     Acquisition Report under such section 2432.
       (5) The reasons for any changes in program acquisition 
     cost, program acquisition unit cost, procurement cost, or 
     procurement unit cost, and the reasons for any changes in 
     program schedule.
       (6) The major contracts under the program and the reasons 
     for any changes in cost or schedule variances under the 
     contracts.
       (7) The Test and Evaluation Master Plan developed for the 
     program in accordance with the requirements and guidance of 
     Department of Defense regulation 5000.2-R.
       (b) Funding Limitation.--Not more than 50 percent of the 
     amount authorized to be appropriated by this Act for the 
     United States Missile Defense Agency for the Theater High 
     Altitude Area Defense program may be expended until the 
     submission of the report required under subsection (a).

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

       (a) Conforming Amendments.--The following provisions of law 
     are amended by striking ``Ballistic Missile Defense 
     Organization'' each place it appears and inserting ``United 
     States Missile Defense Agency'':
       (1) Sections 223 and 224 of title 10, United States Code.
       (2) Sections 232, 233, and 235 of the National Defense 
     Authorization Act for Fiscal Year 2002 (Public Law 107-107).
       (b) Other References.--Any reference to the Ballistic 
     Missile Defense Organization in any other provision of law or 
     in any regulation, map, document, record, or other paper of 
     the United States shall be considered to be a reference to 
     the United States Missile Defense Agency.

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

       None of the funds authorized to be appropriated by this or 
     any other Act may be used for research, development, test, 
     evaluation, procurement, or deployment of nuclear armed 
     interceptors of a missile defense system.

     SEC. 227. REPORTS ON FLIGHT TESTING OF GROUND-BASED MIDCOURSE 
                   NATIONAL MISSILE DEFENSE SYSTEM.

       (a) Requirement.--The Director of the United States Missile 
     Defense Agency shall submit to the congressional defense 
     committees a report on each flight test of the Ground-based 
     Midcourse national missile defense system. The report shall 
     be submitted not later than 120 days after the date of the 
     test.
       (b) Content.--A report on a flight test under subsection 
     (a) shall include the following matters:
       (1) A thorough discussion of the content and objectives of 
     the test.
       (2) For each test objective, a statement regarding whether 
     the objective was achieved.
       (3) For any test objective not achieved--
       (A) a thorough discussion describing the reasons for not 
     achieving the objective; and
       (B) a discussion of any plans for future tests to achieve 
     the objective.
       (c) Format.--The reports required under subsection (a) 
     shall be submitted in classified and unclassified form.

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

     SEC. 231. DEPARTMENT OF DEFENSE TEST AND EVALUATION RESOURCE 
                   ENTERPRISE.

       (a) Establishment.--Section 139 of title 10, United States 
     Code, is amended by adding at the end the following new 
     subsection:
       ``(k)(1) There is a Test and Evaluation Resource Enterprise 
     within the Department of Defense. The head of the Test and 
     Evaluation Resource Enterprise shall report to the Director 
     of Operational Test and Evaluation.

[[Page 12159]]

       ``(2)(A) The head of the Test and Evaluation Resource 
     Enterprise shall manage all funds available to the Department 
     of Defense for the support of investment in, operation and 
     maintenance of, development of, and management of the test 
     and evaluation facilities and resources of the Major Range 
     and Test Facility Base. All such funds shall be transferred 
     to and placed under the control of the head of the Department 
     of Defense Test and Evaluation Resource Enterprise.
       ``(B) Subparagraph (A) shall not be construed to authorize 
     the head of the Test and Evaluation Enterprise, nor to impair 
     the authority of the Secretary of a military department, to 
     manage the funds available to that military department for 
     the support of investment in, operation and maintenance of, 
     development of, and management of the training facilities and 
     resources of the Major Range and Test Facility Base.
       ``(3) The head of the Test and Evaluation Resource 
     Enterprise shall--
       ``(A) ensure that the planning for and execution of the 
     testing of a system within the Major Range and Test Facility 
     Base is performed by the activity of a military department 
     that is responsible for the testing;
       ``(B) ensure that the military department operating a 
     facility or resource within the Major Range and Test Facility 
     Base charges an organization using the facility or resource 
     for testing only the incremental cost of the operation of the 
     facility or resource that is attributable to the testing;
       ``(C) ensure that the military department operating a 
     facility or resource within the Major Range and Test Facility 
     Base comprehensively and consistently applies sound 
     enterprise management practices in the management of the 
     facility or resource;
       ``(D) make investments that are prudent for ensuring that 
     Department of Defense test and evaluation facilities and 
     resources are adequate to meet the current and future testing 
     requirements of Department of Defense programs;
       ``(E) ensure that there is in place a simplified financial 
     management and accounting system for Department of Defense 
     test and evaluation facilities and resources and that the 
     system is uniformly applied to the operation of such 
     facilities and resources throughout the Department; and
       ``(F) ensure that unnecessary costs of owning and operating 
     Department of Defense test and evaluation resources are not 
     incurred.
       ``(4) In this section, the term `Major Range and Test 
     Facility Base' means the test and evaluation facilities and 
     resources that are designated by the Director of Operational 
     Test and Evaluation as facilities and resources comprising 
     the Major Range and Test Facility Base.''.
       (b) Effective Date and Transition Requirements.--(1) The 
     amendment made by paragraph (1) shall take effect one year 
     after the date of the enactment of this Act.
       (2)(A) The Secretary of Defense shall develop a transition 
     plan to ensure that the head of the Test and Evaluation 
     Resource Enterprise is prepared to assume the 
     responsibilities under subsection (k) of section 139 of title 
     10, United States Code (as added by subsection (a)), on the 
     effective date provided in paragraph (1).
       (B) Until the Test and Evaluation Resource Enterprise has 
     been established, all investments of $500,000 or more in the 
     Major Range and Test Facility Base of the Department of 
     Defense shall be subject to the approval of the Director of 
     Operational Test and Evaluation.
       (C) In this paragraph, the term ``Major Range and Test 
     Facility Base'' has the meaning given that term in section 
     139(k)(4) of title 10, United States Code, as added by 
     subsection (a).

     SEC. 232. TRANSFER OF TESTING FUNDS FROM PROGRAM ACCOUNTS TO 
                   INFRASTRUCTURE ACCOUNTS.

       (a) Transfer of Funds.--Notwithstanding any other provision 
     of this Act, amounts authorized to be appropriated by this 
     title for demonstration and validation, engineering and 
     manufacturing development, and operational systems 
     development shall be transferred to the major test and 
     evaluation investment programs of the military departments 
     and to the Central Test and Evaluation Investment Program of 
     the Department of Defense, as follows:
       (1) For transfer to the major test and evaluation 
     investment program of the Army, the amount equal to 0.625 
     percent of the total amount authorized to be appropriated by 
     this title for the Army for demonstration and validation, 
     engineering and manufacturing development, and operational 
     systems development.
       (2) For transfer to the major test and evaluation 
     investment program of the Navy, the amount equal to 0.625 
     percent of the total amount authorized to be appropriated by 
     this title for the Navy for demonstration and validation, 
     engineering and manufacturing development, and operational 
     systems development.
       (3) For transfer to the major test and evaluation 
     investment program of the Air Force, the amount equal to 
     0.625 percent of the total amount authorized to be 
     appropriated by this title for the Air Force for 
     demonstration and validation, engineering and manufacturing 
     development, and operational systems development.
       (4) For transfer to the Central Test and Evaluation 
     Investment Program of the Department of Defense, the amount 
     equal to 0.625 percent of the total amount authorized to be 
     appropriated by this title for Defense-wide demonstration and 
     validation, engineering and manufacturing development, and 
     operational systems development.
       (b) Institutional Funding of Test and Evaluation 
     Facilities.--(1)(A) Chapter 433 of title 10, United States 
     Code, is amended by inserting after the table of sections at 
     the beginning of such chapter the following new section:

     ``Sec. 4531. Test and evaluation: use of facilities

       ``(a) Charges for Use.--The Secretary of the Army may 
     charge an entity for using a facility or resource of the Army 
     within the Major Range and Test Facility Base for testing. 
     The amount charged may not exceed the incremental cost to the 
     Army of the use of the facility or resource by that user for 
     the testing.
       ``(b) Institutional and Overhead Costs.--The institutional 
     and overhead costs of a facility or resource of the Army that 
     is within the Major Range and Test Facility Base shall be 
     paid out of the major test and evaluation investment accounts 
     of the Army, the Central Test and Evaluation Investment 
     Program of the Department of Defense, and other appropriate 
     appropriations made directly to the Army.
       ``(c) Major Range and Test Facility Base Defined.--In this 
     section:
       ``(1) The term `Major Range and Test Facility Base' has the 
     meaning given the term in section 139(k)(4) of this title.
       ``(2) The term `institutional and overhead costs', with 
     respect to a facility or resource within the Major Range Test 
     and Facility Base--
       ``(A) means the costs of maintaining, operating, upgrading, 
     and modernizing the facility or resource; and
       ``(B) does not include an incremental cost of operating the 
     facility or resource that is attributable to the use of the 
     facility or resource for testing under a particular 
     program.''.
       (B) The table of section at the beginning of such chapter 
     is amended by inserting before the item relating to section 
     7522 the following new item:

``4531. Test and evaluation: use of facilities.''.
       (2)(A) Chapter 645 of title 10, United States Code, is 
     amended by inserting after the table of sections at the 
     beginning of such chapter the following new section:

     ``Sec. 7521. Test and evaluation: use of facilities

       ``(a) Charges for Use.--The Secretary of the Navy may 
     charge an entity for using a facility or resource of the Navy 
     within the Major Range and Test Facility Base for testing. 
     The amount charged may not exceed the incremental cost to the 
     Navy of the use of the facility or resource by that user for 
     the testing.
       ``(b) Institutional and Overhead Costs.--The institutional 
     and overhead costs of a facility or resource of the Navy that 
     is within the Major Range and Test Facility Base shall be 
     paid out of the major test and evaluation investment accounts 
     of the Navy, the Central Test and Evaluation Investment 
     Program of the Department of Defense, and other appropriate 
     appropriations made directly to the Navy.
       ``(c) Major Range and Test Facility Base Defined.--In this 
     section:
       ``(1) The term `Major Range and Test Facility Base' has the 
     meaning given the term in section 139(k)(4) of this title.
       ``(2) The term `institutional and overhead costs', with 
     respect to a facility or resource within the Major Range Test 
     and Facility Base--
       ``(A) means the costs of maintaining, operating, upgrading, 
     and modernizing the facility or resource; and
       ``(B) does not include an incremental cost of operating the 
     facility or resource that is attributable to the use of the 
     facility or resource for testing under a particular 
     program.''.
       (B) The table of section at the beginning of such chapter 
     is amended by inserting before the item relating to section 
     7522 the following new item:

``7521. Test and evaluation: use of facilities.''.
       (3)(A) Chapter 933 of title 10, United States Code, is 
     amended by inserting after the table of sections at the 
     beginning of such chapter the following new section:

     ``Sec. 9531. Test and evaluation: use of facilities

       ``(a) Charges for Use.--The Secretary of the Air Force may 
     charge an entity for using a facility or resource of the Air 
     Force within the Major Range and Test Facility Base for 
     testing. The amount charged may not exceed the incremental 
     cost to the Air Force of the use of the facility or resource 
     by that user for the testing.
       ``(b) Institutional and Overhead Costs.--The institutional 
     and overhead costs of a facility or resource of the Air Force 
     that is within the Major Range and Test Facility Base shall 
     be paid out of the major test and evaluation investment 
     accounts of the Air Force, the Central Test and Evaluation 
     Investment Program of the Department of Defense, and other 
     appropriate appropriations made directly to the Air Force.
       ``(c) Major Range and Test Facility Base Defined.--In this 
     section:

[[Page 12160]]

       ``(1) The term `Major Range and Test Facility Base' has the 
     meaning given the term in section 139(k)(4) of this title.
       ``(2) The term `institutional and overhead costs', with 
     respect to a facility or resource within the Major Range Test 
     and Facility Base--
       ``(A) means the costs of maintaining, operating, upgrading, 
     and modernizing the facility or resource; and
       ``(B) does not include an incremental cost of operating the 
     facility or resource that is attributable to the use of the 
     facility or resource for testing under a particular 
     program.''.
       (B) The table of section at the beginning of such chapter 
     is amended by inserting before the item relating to section 
     9532 the following new item:

``9531. Test and evaluation: use of facilities.''.
       (4) Not later than 30 days after the date of the enactment 
     of this Act, the Under Secretary of Defense (Comptroller) 
     shall review the funding policies of each military department 
     to ensure that the Secretary of the military department has 
     in place the policies necessary to comply with the 
     Secretary's responsibilities under section 4531, 7521, or 
     9531 of title 10, United States Code (as added by this 
     subsection), as the case may be. The Under Secretary shall 
     consult with the Director of Operational Test and Evaluation 
     in carrying out the review.

     SEC. 233. INCREASED INVESTMENT IN TEST AND EVALUATION 
                   FACILITIES.

       (a) Amount.--Of the amount authorized to be appropriated 
     under section 201(4), $251,276,000 shall be available for the 
     Central Test and Evaluation Investment Program of the 
     Department of Defense.
       (b) Additional Available Funding.--In addition to the 
     amount made available under subsection (a), amounts 
     transferred pursuant to section 232(a)(4) shall be available 
     for the Central Test and Evaluation Investment Program of the 
     Department of Defense.

     SEC. 234. UNIFORM FINANCIAL MANAGEMENT SYSTEM FOR DEPARTMENT 
                   OF DEFENSE TEST AND EVALUATION FACILITIES.

       (a) Requirement for System.--Not later than two years after 
     the date of the enactment of this Act, the Secretary of 
     Defense shall implement a single financial management and 
     accounting system for all test and evaluation facilities of 
     the Department of Defense.
       (b) System Features.--The financial management and 
     accounting system shall be designed to achieve, at a minimum, 
     the following functional objectives:
       (1) Enable managers within the Department of Defense to 
     compare the costs of conducting test and evaluation 
     activities in the various facilities of the military 
     departments.
       (2) Enable the Secretary of Defense--
       (A) to make prudent investment decisions; and
       (B) to reduce the extent to which unnecessary costs of 
     owning and operating Department of Defense test and 
     evaluation facilities are incurred.
       (3) Enable the Department of Defense to track the total 
     cost of test and evaluation activities.
       (4) Comply with the financial management enterprise 
     architecture developed by the Secretary of Defense under 
     section 1006.

     SEC. 235. TEST AND EVALUATION WORKFORCE IMPROVEMENTS.

       (a) Report on Capabilities.--Not later than March 15, 2003, 
     the Under Secretary of Defense for Acquisition, Technology, 
     and Logistics shall submit to Congress a report on the 
     capabilities of the test and evaluation workforce of the 
     Department of Defense. The Under Secretary shall consult with 
     the Under Secretary of Defense for Personnel and Readiness 
     and the Director of Operational Test and Evaluation in 
     preparing the report.
       (b) Requirement for Plan.--(1) The report shall contain a 
     plan for taking the actions necessary to ensure that the test 
     and evaluation workforce of the Department of Defense is of 
     sufficient size and has the expertise necessary to timely and 
     accurately identify issues of military suitability and 
     effectiveness of Department of Defense systems through 
     testing of the systems.
       (2) The plan shall set forth objectives for the size, 
     composition, and qualifications of the workforce, and shall 
     specify the actions (including recruitment, retention, and 
     training) and milestones for achieving the objectives.
       (c) Additional Matters.--The report shall also include the 
     following matters:
       (1) An assessment of the changing size and demographics of 
     the test and evaluation workforce, including the impact of 
     anticipated retirements among the most experienced personnel 
     over the five-year period beginning with 2003, together with 
     a discussion of the management actions necessary to address 
     the changes.
       (2) An assessment of the anticipated workloads and 
     responsibilities of the test and evaluation workforce over 
     the ten-year period beginning with 2003, together with the 
     number and qualifications of military and civilian personnel 
     necessary to carry out such workloads and responsibilities.
       (3) The Secretary's specific plans for using the 
     demonstration authority provided in section 4308 of the 
     National Defense Authorization Act for Fiscal Year 1996 
     (Public Law 104-106; 10 U.S.C. 1701 note) and other special 
     personnel management authorities of the Secretary to attract 
     and retain qualified personnel in the test and evaluation 
     workforce.
       (4) Any recommended legislation or additional special 
     authority that the Secretary considers appropriate for 
     facilitating the recruitment and retention of qualified 
     personnel for the test and evaluation workforce.
       (5) Any other matters that are relevant to the capabilities 
     of the test and evaluation workforce.

     SEC. 236. COMPLIANCE WITH TESTING REQUIREMENTS.

       (a) Annual OT&E Report.--Subsection (g) of section 139 of 
     title 10, United States Code, is amended by inserting after 
     the fourth sentence the following: ``The report for a fiscal 
     year shall also include an assessment of the waivers of and 
     deviations from requirements in test and evaluation master 
     plans and other testing requirements that occurred during the 
     fiscal year, any concerns raised by the waivers or 
     deviations, and the actions that have been taken or are 
     planned to be taken to address the concerns.''.
       (b) Reorganization of Provision.--Subsection (g) of such 
     section, as amended by subsection (a), is further amended--
       (1) by inserting ``(1)'' after ``(g)'';
       (2) by designating the second sentence as paragraph (2);
       (3) by designating the third sentence as paragraph (3);
       (4) by designating the matter consisting of the fourth and 
     fifth sentences as paragraph (4);
       (5) by designating the sixth sentence as paragraph (5); and
       (6) by realigning paragraphs (2), (3), (4), and (5), as so 
     designated, two ems from the left margin.

     SEC. 237. REPORT ON IMPLEMENTATION OF DEFENSE SCIENCE BOARD 
                   RECOMMENDATIONS.

       (a) Requirement.--Not later than March 1, 2003, the 
     Secretary of Defense shall submit to the congressional 
     defense committees a report on the extent of the 
     implementation of the recommendations set forth in the 
     December 2000 Report of the Defense Science Board Task Force 
     on Test and Evaluation Capabilities.
       (b) Content.--The report shall include the following:
       (1) For each recommendation that is being implemented or 
     that the Secretary plans to implement--
       (A) a summary of all actions that have been taken to 
     implement the recommendation; and
       (B) a schedule, with specific milestones, for completing 
     the implementation of the recommendation.
       (2) For each recommendation that the Secretary does not 
     plan to implement--
       (A) the reasons for the decision not to implement the 
     recommendation; and
       (B) a summary of any alternative actions the Secretary 
     plans to take to address the purposes underlying the 
     recommendation.
       (3) A summary of any additional actions the Secretary plans 
     to take to address concerns raised in the December 2000 
     Report of the Defense Science Board Task Force on Test and 
     Evaluation Capabilities about the state of the test and 
     evaluation infrastructure of the Department of Defense.

                       Subtitle E--Other Matters

     SEC. 241. PILOT PROGRAMS FOR REVITALIZING DEPARTMENT OF 
                   DEFENSE LABORATORIES.

       (a) Additional Pilot Program.--(1) The Secretary of Defense 
     may carry out a pilot program to demonstrate improved 
     efficiency in the performance of research, development, test, 
     and evaluation functions of the Department of Defense.
       (2) Under the pilot program, the Secretary of Defense shall 
     provide the director of one science and technology 
     laboratory, and the director of one test and evaluation 
     laboratory, of each military department with authority for 
     the following:
       (A) To use innovative methods of personnel management 
     appropriate for ensuring that the selected laboratories can--
       (i) employ and retain a workforce appropriately balanced 
     between permanent and temporary personnel and among workers 
     with appropriate levels of skills and experience; and
       (ii) effectively shape workforces to ensure that the 
     workforces have the necessary sets of skills and experience 
     to fulfill their organizational missions.
       (B) To develop or expand innovative methods of entering 
     into and expanding cooperative relationships and arrangements 
     with private sector organizations, educational institutions 
     (including primary and secondary schools), and State and 
     local governments to facilitate the training of a future 
     scientific and technical workforce that will contribute 
     significantly to the accomplishment of organizational 
     missions.
       (C) To develop or expand innovative methods of establishing 
     cooperative relationships and arrangements with private 
     sector organizations and educational institutions to promote 
     the establishment of the technological industrial base in 
     areas critical for Department of Defense technological 
     requirements.

[[Page 12161]]

       (D) To waive any restrictions not required by law that 
     apply to the demonstration and implementation of methods for 
     achieving the objectives set forth in subparagraphs (A), (B), 
     and (C).
       (3) The Secretary may carry out the pilot program under 
     this subsection at each selected laboratory for a period of 
     three years beginning not later than March 1, 2003.
       (b) Relationship to Fiscal Years 1999 and 2000 
     Revitalization Pilot Programs.--The pilot program under this 
     section is in addition to, but may be carried out in 
     conjunction with, the fiscal years 1999 and 2000 
     revitalization pilot programs.
       (c) Reports.--(1) Not later than January 1, 2003, the 
     Secretary shall submit to Congress a report on the experience 
     under the fiscal years 1999 and 2000 revitalization pilot 
     programs in exercising the authorities provided for the 
     administration of those programs. The report shall include a 
     description of--
       (A) barriers to the exercise of the authorities that have 
     been encountered;
       (B) the proposed solutions for overcoming the barriers; and
       (C) the progress made in overcoming the barriers.
       (2) Not later than September 1, 2003, the Secretary of 
     Defense shall submit to Congress a report on the 
     implementation of the pilot program under subsection (a) and 
     the fiscal years 1999 and 2000 revitalization pilot programs. 
     The report shall include, for each such pilot program, the 
     following:
       (A) Each laboratory selected for the pilot program.
       (B) To the extent practicable, a description of the 
     innovative methods that are to be tested at each laboratory.
       (C) The criteria to be used for measuring the success of 
     each method to be tested.
       (3) Not later than 90 days after the expiration of the 
     period for the participation of a laboratory in a pilot 
     program referred to in paragraph (2), the Secretary of 
     Defense shall submit to Congress a final report on the 
     participation of that laboratory in the pilot program. The 
     report shall include the following:
       (A) A description of the methods tested.
       (B) The results of the testing.
       (C) The lessons learned.
       (D) Any proposal for legislation that the Secretary 
     recommends on the basis of the experience at that laboratory 
     under the pilot program.
       (d) Extension of Authority for Other Revitalization Pilot 
     Programs.--(1) Section 246(a)(4) of the Strom Thurmond 
     National Defense Authorization Act for Fiscal Year 1999 
     (Public Law 105-261; 112 Stat. 1956; 10 U.S.C. 2358 note) is 
     amended by striking ``a period of three years'' and inserting 
     ``up to six years''.
       (2) Section 245(a)(4) of the National Defense Authorization 
     Act for Fiscal Year 2000 (Public Law 106-65; 113 Stat. 553; 
     10 U.S.C. 2358 note) is amended by striking ``a period of 
     three years'' and inserting ``up to five years''.
       (e) Partnerships Under Pilot Program.--(1) The Secretary of 
     Defense may authorize one or more laboratories and test 
     centers participating in the pilot program under subsection 
     (a) or in one of the fiscal years 1999 and 2000 
     revitalization pilot programs to enter into a cooperative 
     arrangement (in this subsection referred to as a ``public-
     private partnership'') with entities in the private sector 
     and institutions of higher education for the performance of 
     work.
       (2) A competitive process shall be used for the selection 
     of entities outside the Government to participate in a 
     public-private partnership.
       (3)(A) Not more than one public-private partnership may be 
     established as a limited liability corporation.
       (B) An entity participating in a limited liability 
     corporation as a party to a public-private partnership under 
     the pilot program may contribute funds to the corporation, 
     accept contribution of funds for the corporation, and provide 
     materials, services, and use of facilities for research, 
     technology, and infrastructure of the corporation, if it is 
     determined under regulations prescribed by the Secretary of 
     Defense that doing so will improve the efficiency of the 
     performance of research, test, and evaluation functions of 
     the Department of Defense.
       (f) Excepted Service Under Pilot Program.--(1) To 
     facilitate recruitment of experts in science and engineering 
     to improve the performance of research, test, and evaluation 
     functions of the Department of Defense, the Secretary of 
     Defense may--
       (A) designate a total of not more than 30 scientific, 
     engineering, and technology positions at the laboratories and 
     test centers participating in the pilot program under 
     subsection (a) or in any of the fiscal years 1999 and 2000 
     revitalization pilot programs as positions in the excepted 
     service (as defined in section 2103(a) of title 5, United 
     States Code);
       (B) appoint individuals to such positions; and
       (C) fix the compensation of such individuals.
       (2) The maximum rate of basic pay for a position in the 
     excepted service pursuant to a designation made under 
     paragraph (1) may not exceed the maximum rate of basic pay 
     authorized for senior-level positions under section 5376 of 
     title 5, United States Code, notwithstanding any provision of 
     such title governing the rates of pay or classification of 
     employees in the executive branch.
       (g) Fiscal Years 1999 and 2000 Revitalization Pilot 
     Programs Defined.--In this section, the term ``fiscal years 
     1999 and 2000 revitalization pilot programs'' means the pilot 
     programs authorized by--
       (1) section 246 of the Strom Thurmond National Defense 
     Authorization Act for Fiscal Year 1999 (Public Law 105-261; 
     112 Stat. 1955; 10 U.S.C. 2358 note); and
       (2) section 245 of the National Defense Authorization Act 
     for Fiscal Year 2000 (Public Law 106-65; 113 Stat. 552; 10 
     U.S.C. 2358 note).

     SEC. 242. TECHNOLOGY TRANSITION INITIATIVE.

       (a) Establishment and Conduct.--(1) Chapter 139 of title 
     10, United States Code, is amended by inserting after section 
     2359 the following new section:

     ``Sec. 2359a. Technology Transition Initiative

       ``(a) Requirement for Program.--The Secretary of Defense 
     shall carry out a Technology Transition Initiative to 
     facilitate the rapid transition of new technologies from 
     science and technology programs of the Department of Defense 
     into acquisition programs for the production of the 
     technologies.
       ``(b) Objectives.--The objectives of the Initiative are as 
     follows:
       ``(1) To accelerate the introduction of new technologies 
     into Department of Defense acquisition programs appropriate 
     for the technologies.
       ``(2) To successfully demonstrate new technologies in 
     relevant environments.
       ``(3) To ensure that new technologies are sufficiently 
     mature for production.
       ``(c) Management.--(1) The Secretary of Defense shall 
     designate a senior official in the Office of the Secretary of 
     Defense to manage the Initiative.
       ``(2) In administering the Initiative, the Initiative 
     Manager shall--
       ``(A) report directly to the Under Secretary of Defense for 
     Acquisition, Technology, and Logistics; and
       ``(B) obtain advice and other assistance from the 
     Technology Transition Council established under subsection 
     (e).
       ``(3) The Initiative Manager shall--
       ``(A) in consultation with the Technology Transition 
     Council established under subsection (e), identify promising 
     technologies that have been demonstrated in science and 
     technology programs of the Department of Defense;
       ``(B) develop a list of those technologies that have 
     promising potential for transition into acquisition programs 
     of the Department of Defense and transmit the list to the 
     acquisition executive of each military department and to 
     Congress;
       ``(C) identify potential sponsors in the Department of 
     Defense to undertake the transition of such technologies into 
     production;
       ``(D) work with the science and technology community and 
     the acquisition community to develop memoranda of agreement, 
     joint funding agreements, and other cooperative arrangements 
     to provide for the transition of the technologies into 
     production; and
       ``(E) provide funding support for selected projects under 
     subsection (d).
       ``(d) Jointly Funded Projects.--(1) The acquisition 
     executive of each military department shall select technology 
     projects of the military department to recommend for funding 
     support under the Initiative and shall submit a list of the 
     recommended projects, ranked in order of priority, to the 
     Initiative Manager. The projects shall be selected, in a 
     competitive process, on the basis of the highest potential 
     benefits in areas of interest identified by the Secretary of 
     that military department.
       ``(2) The Initiative Manager, in consultation with the 
     Technology Transition Council established under subsection 
     (e), shall select projects for funding support from among the 
     projects on the lists submitted under paragraph (1). The 
     Initiative Manager shall provide funds for each selected 
     project. The total amount provided for a project shall be 
     determined by agreement between the Initiative Manager and 
     the acquisition executive of the military department 
     concerned, but shall not be less than the amount equal to 50 
     percent of the total cost of the project.
       ``(3) The Initiative Manager shall not fund any one project 
     under this subsection for more than 3 years.
       ``(4) The acquisition executive of the military department 
     shall manage each project selected under paragraph (2) that 
     is undertaken by the military department. Memoranda of 
     agreement, joint funding agreements, and other cooperative 
     arrangements between the science and technology community and 
     the acquisition community shall be used in carrying out the 
     project if the acquisition executive determines that it is 
     appropriate to do so to achieve the objectives of the 
     project.
       ``(e) Technology Transition Council.--(1) There is a 
     Technology Transition Council in the Department of Defense. 
     The Council is composed of the following members:
       ``(A) The science and technology executives of the military 
     departments and Defense Agencies.
       ``(B) The acquisition executives of the military 
     departments.
       ``(C) The members of the Joint Requirements Oversight 
     Council.
       ``(2) The Technology Transition Council shall provide 
     advice and assistance to the Initiative Manager under this 
     section.

[[Page 12162]]

       ``(f) Definitions.--In this section:
       ``(1) The term `acquisition executive', with respect to a 
     military department, means the official designated as the 
     senior procurement executive for that military department 
     under section 16(3) of the Office of Federal Procurement 
     Policy Act (41 U.S.C. 414(3)).
       ``(2) The term `Initiative' means the Technology Transition 
     Initiative carried out under this section.
       ``(3) The term `Initiative Manager' means the official 
     designated to manage the Initiative under subsection (c).''.
       (2) The table of sections at the beginning of such chapter 
     is amended by inserting after the item relating to section 
     2395 the following new item:

``2359a. Technology Transition Initiative.''.
       (b) Authorization of Appropriations.--Of the amount 
     authorized to be appropriated under section 201(4), 
     $50,000,000 shall be available for the Technology Transition 
     Initiative under section 2359a of title 10, United States 
     Code (as added by subsection (a)), and for other technology 
     transition activities of the Department of Defense.

     SEC. 243. ENCOURAGEMENT OF SMALL BUSINESSES AND 
                   NONTRADITIONAL DEFENSE CONTRACTORS TO SUBMIT 
                   PROPOSALS POTENTIALLY BENEFICIAL FOR COMBATING 
                   TERRORISM.

       (a) Establishment of Outreach Program.--During the 3-year 
     period beginning on the date of the enactment of this Act, 
     the Secretary of Defense shall carry out a program of 
     outreach to small businesses and nontraditional defense 
     contractors for the purpose set forth in subsection (b).
       (b) Purpose.--The purpose of the outreach program is to 
     provide a process for reviewing and evaluating research 
     activities of, and new technologies being developed by, small 
     businesses and nontraditional defense contractors that have 
     the potential for meeting a defense requirement or technology 
     development goal of the Department of Defense that relates to 
     the mission of the Department of Defense to combat terrorism.
       (c) Goals.--The goals of the outreach program are as 
     follows:
       (1) To increase efforts within the Department of Defense to 
     survey and identify technologies being developed outside the 
     Department that have the potential described in subsection 
     (b).
       (2) To provide the Under Secretary of Defense for 
     Acquisition, Technology, and Logistics with a source of 
     expert advice on new technologies for combating terrorism.
       (3) To increase efforts to educate nontraditional defense 
     contractors on Department of Defense acquisition processes, 
     including regulations, procedures, funding opportunities, 
     military needs and requirements, and technology transfer so 
     as to encourage such contractors to submit proposals 
     regarding research activities and technologies described in 
     subsection (b).
       (4) To increase efforts to provide timely response by the 
     Department of Defense to acquisition proposals (including 
     unsolicited proposals) submitted to the Department by small 
     businesses and by nontraditional defense contractors 
     regarding research activities and technologies described in 
     subsection (b), including through the use of electronic 
     transactions to facilitate the processing of proposals.
       (d) Review Panel.--(1) The Secretary shall appoint, under 
     the outreach program, a panel for the review and evaluation 
     of proposals described in subsection (c)(4).
       (2) The panel shall be composed of qualified personnel from 
     the military departments, relevant Defense Agencies, 
     industry, academia, and other private sector organizations.
       (3) The panel shall review and evaluate proposals that, as 
     determined by the panel, may present a unique and valuable 
     approach for meeting a defense requirement or technology 
     development goal related to combating terrorism. In carrying 
     out duties under this paragraph, the panel may act through 
     representatives designated by the panel.
       (4) The panel shall--
       (A) within 60 days after receiving such a proposal, 
     transmit to the source of the proposal a notification 
     regarding whether the proposal has been selected for review 
     by the panel;
       (B) to the maximum extent practicable, complete the review 
     of each selected proposal within 120 days after the proposal 
     is selected for review by the panel; and
       (C) after completing the review, transmit an evaluation of 
     the proposal to the source of the proposal.
       (5) The Secretary shall ensure that the panel, in reviewing 
     and evaluating proposals under this subsection, has the 
     authority to obtain assistance, to a reasonable extent, from 
     the appropriate technical resources of the laboratories, 
     research, development, and engineering centers, test and 
     evaluation activities, and other elements of the Department 
     of Defense.
       (6) If, after completing the review of a proposal, the 
     panel determines that the proposal represents a unique and 
     valuable approach to meeting a defense requirement or 
     technology development goal related to combating terrorism, 
     the panel shall submit that determination to the Under 
     Secretary of Defense for Acquisition, Technology, and 
     Logistics together with any recommendations that the panel 
     considers appropriate regarding the proposal.
       (7) The Secretary of Defense shall ensure that there is no 
     conflict of interest on the part of a member of the panel 
     with respect to the review and evaluation of a proposal by 
     the panel.
       (e) Definitions.--In this section:
       (1) The term ``nontraditional defense contractor'' means an 
     entity that has not, for at least one year prior to the date 
     of the enactment of this Act, entered into, or performed with 
     respect to, any contract described in paragraph (1) or (2) of 
     section 845(e) of the National Defense Authorization Act for 
     Fiscal Year 1994 (10 U.S.C. 2371 note).
       (2) The term ``small business'' means a business concern 
     that meets the applicable size standards prescribed pursuant 
     to section 3(a) of the Small Business Act (15 U.S.C. 632(a)).

     SEC. 244. VEHICLE FUEL CELL PROGRAM.

       (a) Program.--The Secretary of Defense shall carry out a 
     vehicle fuel cell technology development program in 
     cooperation with the Secretary of Energy, the heads of other 
     Federal agencies appropriate for participation in the 
     program, and industry.
       (b) Goals and Objectives.--The goals and objectives of the 
     program shall be as follows:
       (1) To identify and support technological advances that are 
     necessary for the development of fuel cell technology for use 
     in vehicles of types to be used by the Department of Defense.
       (2) To ensure that critical technology advances are shared 
     among the various fuel cell technology programs within the 
     Federal Government.
       (3) To ensure maximum leverage of Federal Government 
     funding for fuel cell technology development.
       (c) Content of Program.--The program shall include--
       (1) development of vehicle propulsion technologies and fuel 
     cell auxiliary power units, together with pilot 
     demonstrations of such technologies, as appropriate; and
       (2) development of technologies necessary to address 
     critical issues such as hydrogen storage and the need for a 
     hydrogen fuel infrastructure.
       (d) Cooperation With Industry.--(1) The Secretary shall 
     include the automobile and truck manufacturing industry and 
     its systems and component suppliers in the cooperative 
     involvement of industry in the program.
       (2) The Secretary of Defense shall consider whether, in 
     order to facilitate the cooperation of industry in the 
     program, the Secretary and one or more companies in industry 
     should enter into a cooperative agreement that establishes an 
     entity to carry out activities required under subsection (c). 
     An entity established by any such agreement shall be known as 
     a defense industry fuel cell partnership.
       (3) The Secretary of Defense shall provide for industry to 
     bear, in cash or in kind, at least one-half of the total cost 
     of carrying out the program.
       (e) Amount for Program.--Of the amount authorized to be 
     appropriated by section 201(4), $10,000,000 shall be 
     available for the program required by this section.

     SEC. 245. DEFENSE NANOTECHNOLOGY RESEARCH AND DEVELOPMENT 
                   PROGRAM.

       (a) Establishment.--The Secretary of Defense shall carry 
     out a defense nanotechnology research and development 
     program.
       (b) Purposes.--The purposes of the program are as follows:
       (1) To ensure United States global superiority in 
     nanotechnology necessary for meeting national security 
     requirements.
       (2) To coordinate all nanoscale research and development 
     within the Department of Defense, and to provide for 
     interagency cooperation and collaboration on nanoscale 
     research and development between the Department of Defense 
     and other departments and agencies of the United States that 
     are involved in nanoscale research and development.
       (3) To develop and manage a portfolio of fundamental and 
     applied nanoscience and engineering research initiatives that 
     is stable, consistent, and balanced across scientific 
     disciplines.
       (4) To accelerate the transition and deployment of 
     technologies and concepts derived from nanoscale research and 
     development into the Armed Forces, and to establish policies, 
     procedures, and standards for measuring the success of such 
     efforts.
       (5) To collect, synthesize, and disseminate critical 
     information on nanoscale research and development.
       (c) Administration.--In carrying out the program, the 
     Secretary shall act through the Director of Defense Research 
     and Engineering, who shall supervise the planning, 
     management, and coordination of the program. The Director, in 
     consultation with the Secretaries of the military departments 
     and the heads of participating Defense Agencies and other 
     departments and agencies of the United States, shall--
       (1) prescribe a set of long-term challenges and a set of 
     specific technical goals for the program;
       (2) develop a coordinated and integrated research and 
     investment plan for meeting

[[Page 12163]]

     the long-term challenges and achieving the specific technical 
     goals; and
       (3) develop memoranda of agreement, joint funding 
     agreements, and other cooperative arrangements necessary for 
     meeting the long-term challenges and achieving the specific 
     technical goals.
       (d) Annual Report.--Not later than March 1 of each of 2004, 
     2005, 2006, and 2007, the Director of Defense Research and 
     Engineering shall submit to the congressional defense 
     committees a report on the program. The report shall contain 
     the following matters:
       (1) A review of--
       (A) the long-term challenges and specific goals of the 
     program; and
       (B) the progress made toward meeting the challenges and 
     achieving the goals.
       (2) An assessment of current and proposed funding levels, 
     including the adequacy of such funding levels to support 
     program activities.
       (3) A review of the coordination of activities within the 
     Department of Defense and with other departments and 
     agencies.
       (4) An assessment of the extent to which effective 
     technology transition paths have been established as a result 
     of activities under the program.
       (5) Recommendations for additional program activities to 
     meet emerging national security requirements.

     SEC. 246. ACTIVITIES AND ASSESSMENT OF THE DEFENSE 
                   EXPERIMENTAL PROGRAM TO STIMULATE COMPETITIVE 
                   RESEARCH.

       (a) Authorized Activities.--Subsection (c) of section 257 
     of the National Defense Authorization Act for Fiscal Year 
     1995 (Public Law 103-337; 10 U.S.C. 2358 note), is amended--
       (1) in paragraph (1), by striking ``research grants'' and 
     inserting ``grants for research and instrumentation to 
     support such research''; and
       (2) by adding at the end the following new paragraph:
       ``(3) Any other activities that are determined necessary to 
     further the achievement of the objectives of the program.''.
       (b) Coordination.--Subsection (e) of such section is 
     amended by adding at the end the following:
       ``(4) The Secretary shall contract with the National 
     Research Council to assess the effectiveness of the Defense 
     Experimental Program to Stimulate Competitive Research in 
     achieving the program objectives set forth in subsection (b). 
     The assessment provided to the Secretary shall include the 
     following:
       ``(A) An assessment of the eligibility requirements of the 
     program and the relationship of such requirements to the 
     overall research base in the States, the stability of 
     research initiatives in the States, and the achievement of 
     the program objectives, together with any recommendations for 
     modification of the eligibility requirements.
       ``(B) An assessment of the program structure and the 
     effects of that structure on the development of a variety of 
     research activities in the States and the personnel available 
     to carry out such activities, together with any 
     recommendations for modification of program structure, 
     funding levels, and funding strategy.
       ``(C) An assessment of the past and ongoing activities of 
     the State planning committees in supporting the achievement 
     of the program objectives.
       ``(D) An assessment of the effects of the various 
     eligibility requirements of the various Federal programs to 
     stimulate competitive research on the ability of States to 
     develop niche research areas of expertise, exploit 
     opportunities for developing interdisciplinary research 
     initiatives, and achieve program objectives.''.

     SEC. 247. FOUR-YEAR EXTENSION OF AUTHORITY OF DARPA TO AWARD 
                   PRIZES FOR ADVANCED TECHNOLOGY ACHIEVEMENTS.

       (a) Extension.--Section 2374a(f) of title 10, United States 
     Code, is amended by striking ``September 30, 2003'' and 
     inserting ``September 30, 2007''.
       (b) Report on Administration of Program.--(1) Not later 
     than December 31, 2002, the Director of the Defense Advanced 
     Research Projects Agency shall submit to the congressional 
     defense committees a report on the proposal of the Director 
     for the administration of the program to award prizes for 
     advanced technology achievements under section 2374a of title 
     10, United States Code.
       (2) The report shall include the following:
       (A) A description of the proposed goals of the competition 
     under the program, including the technology areas to be 
     promoted by the competition and the relationship of such area 
     to military missions of the Department of Defense.
       (B) The proposed rules of the competition under the program 
     and a description of the proposed management of the 
     competition.
       (C) A description of the manner in which funds for cash 
     prizes under the program will be allocated within the 
     accounts of the Agency if a prize is awarded and claimed.
       (D) A statement of the reasons why the competition is a 
     preferable means of promoting basic, advanced, and applied 
     research, technology development, or prototype projects than 
     other means of promotion of such activities, including 
     contracts, grants, cooperative agreements, and other 
     transactions.

                  TITLE III--OPERATION AND MAINTENANCE

              Subtitle A--Authorization of Appropriations

     SEC. 301. OPERATION AND MAINTENANCE FUNDING.

       (a) Authorization of Appropriations.--Funds are hereby 
     authorized to be appropriated for fiscal year 2003 for the 
     use of the Armed Forces and other activities and agencies of 
     the Department of Defense for expenses, not otherwise 
     provided for, for operation and maintenance, in amounts as 
     follows:
       (1) For the Army, $24,180,742,000.
       (2) For the Navy, $29,368,961,000.
       (3) For the Marine Corps, $3,558,732,000.
       (4) For the Air Force, $27,445,764,000.
       (5) For Defense-wide activities, $14,492,266,000.
       (6) For the Army Reserve, $1,962,610,000.
       (7) For the Naval Reserve, $1,233,759,000.
       (8) For the Marine Corps Reserve, $190,532,000.
       (9) For the Air Force Reserve, $2,165,004,000.
       (10) For the Army National Guard, $4,506,267,000.
       (11) For the Air National Guard, $4,114,910,000.
       (12) For the Defense Inspector General, $155,165,000.
       (13) For the United States Court of Appeals for the Armed 
     Forces, $9,614,000.
       (14) For Environmental Restoration, Army, $395,900,000.
       (15) For Environmental Restoration, Navy, $256,948,000.
       (16) For Environmental Restoration, Air Force, 
     $389,773,000.
       (17) For Environmental Restoration, Defense-wide, 
     $23,498,000.
       (18) For Environmental Restoration, Formerly Used Defense 
     Sites, $252,102,000.
       (19) For Overseas Humanitarian, Disaster, and Civic Aid 
     programs, $58,400,000.
       (20) For Drug Interdiction and Counter-drug Activities, 
     Defense-wide, $873,907,000.
       (21) For the Kaho'olawe Island Conveyance, Remediation, and 
     Environmental Restoration Trust Fund, $25,000,000.
       (22) For Defense Health Program, $14,202,441,000.
       (23) For Cooperative Threat Reduction programs, 
     $416,700,000.
       (24) For Overseas Contingency Operations Transfer Fund, 
     $50,000,000.
       (25) For Support for International Sporting Competitions, 
     Defense, $19,000,000.
       (b) Adjustment.--The total amount authorized to be 
     appropriated pursuant to subsection (a) is reduced by--
       (1) $159,790,000, which represents savings resulting from 
     reduced travel; and
       (2) $615,200,000, which represents savings resulting from 
     foreign currency fluctuations.

     SEC. 302. WORKING CAPITAL FUNDS.

       Funds are hereby authorized to be appropriated for fiscal 
     year 2003 for the use of the Armed Forces and other 
     activities and agencies of the Department of Defense for 
     providing capital for working capital and revolving funds in 
     amounts as follows:
       (1) For the Defense Working Capital Funds, $387,156,000.
       (2) For the National Defense Sealift Fund, $934,129,000.
       (3) For the Defense Commissary Agency Working Capital Fund, 
     $969,200,000.
       (4) For the Pentagon Reservation Maintenance Revolving 
     Fund, $328,000,000.

     SEC. 303. ARMED FORCES RETIREMENT HOME.

       There is hereby authorized to be appropriated for fiscal 
     year 2003 from the Armed Forces Retirement Home Trust Fund 
     the sum of $69,921,000 for the operation of the Armed Forces 
     Retirement Home, including the Armed Forces Retirement Home--
     Washington and the Armed Forces Retirement Home--Gulfport.

     SEC. 304. RANGE ENHANCEMENT INITIATIVE FUND.

       (a) Availability of Funds.--Of the amount authorized to be 
     appropriated by section 301(a)(5) for operation and 
     maintenance for defense-wide activities, $20,000,000 shall be 
     available for the Range Enhancement Initiative Fund for the 
     purpose specified in subsection (b).
       (b) Purpose.--Subject to subsection (c), amounts authorized 
     to be appropriated for the Range Enhancement Initiative Fund 
     shall be available to the Secretary of Defense and the 
     Secretaries of the military departments to purchase 
     restrictive easements, including easements that implement 
     agreements entered into under section 2697 of title 10, 
     United States Code, as added by section 2811 of this Act.
       (c) Transfer of Amounts.--(1) Amounts in the Range 
     Enhancement Initiative Fund shall, subject to applicable 
     limitations in appropriations Acts, be made available to the 
     Secretary of a military department under subsection (b) by 
     transfer from the Fund to the applicable operation and 
     maintenance account of the military department, including the 
     operation and maintenance account for the active component, 
     or for a reserve component, of the military department.
       (2) Authority to transfer amounts under paragraph (1) is in 
     addition to any other authority to transfer funds under this 
     Act.

     SEC. 305. NAVY PILOT HUMAN RESOURCES CALL CENTER, CUTLER, 
                   MAINE.

       Of the amount authorized to be appropriated by section 
     301(a)(2) for operation and maintenance for the Navy, 
     $1,500,000 may be

[[Page 12164]]

     available for the Navy Pilot Human Resources Call Center, 
     Cutler, Maine.

     SEC. 306. NATIONAL ARMY MUSEUM, FORT BELVOIR, VIRGINIA.

       (a) Activation Efforts.--The Secretary of the Army may 
     carry out efforts to facilitate the commencement of 
     development for the National Army Museum at Fort Belvoir, 
     Virginia.
       (b) Funding.--(1) The amount authorized to be appropriated 
     by section 301(a)(1) for operation and maintenance for the 
     Army is hereby increased by $100,000.
       (2) Of the amount authorized to be appropriated by section 
     301(a)(1) for operation and maintenance for the Army, as 
     increased by paragraph (1), $100,000 shall be available to 
     carry out the efforts authorized by subsection (a).
       (c) Offset.--The amount authorized to be appropriated by 
     section 201(1) for research, development, test, and 
     evaluation for the Army is hereby reduced by $100,000.

     SEC. 307. DISPOSAL OF OBSOLETE VESSELS OF THE NATIONAL 
                   DEFENSE RESERVE FLEET.

       Of the amount authorized to be appropriated by section 
     301(a)(2) for operation and maintenance for the Navy, 
     $20,000,000 may be available, without fiscal year limitation 
     if so provided in appropriations Acts, for expenses related 
     to the disposal of obsolete vessels in the Maritime 
     Administration National Defense Reserve Fleet.

                  Subtitle B--Environmental Provisions

     SEC. 311. ENHANCEMENT OF AUTHORITY ON COOPERATIVE AGREEMENTS 
                   FOR ENVIRONMENTAL PURPOSES.

       Section 2701(d) of title 10, United States Code, is 
     amended--
       (1) by redesignating paragraphs (2) and (3) as paragraphs 
     (3) and (4), respectively; and
       (2) by inserting after paragraph (1) the following new 
     paragraph (2):
       ``(2) Cross-fiscal year agreements.--An agreement with an 
     agency under paragraph (1) may be for a period that begins in 
     one fiscal year and ends in another fiscal year if (without 
     regard to any option to extend the period of the agreement) 
     the period of the agreement does not exceed two years.''.

     SEC. 312. MODIFICATION OF AUTHORITY TO CARRY OUT CONSTRUCTION 
                   PROJECTS FOR ENVIRONMENTAL RESPONSES.

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

     ``Sec. 2711. Environmental restoration projects for 
       environmental responses

       ``(a) The Secretary of Defense or the Secretary of a 
     military department may carry out an environmental 
     restoration project if that Secretary determines that the 
     project is necessary to carry out a response under this 
     chapter or CERCLA.
       ``(b) Any construction, development, conversion, or 
     extension of a structure or installation of equipment that is 
     included in an environmental restoration project may not be 
     considered military construction (as that term is defined in 
     section 2801(a) of this title).
       ``(c) Funds authorized for deposit in an account 
     established by section 2703(a) of this title shall be the 
     only source of funds to conduct an environmental restoration 
     project under this section.
       ``(d) In this section, the term `environmental restoration 
     project' includes construction, development, conversion, or 
     extension of a structure or installation of equipment in 
     direct support of a response.''.
       (2) The table of sections at the beginning of that chapter 
     is amended by adding at the end the following new item:

``2711. Environmental restoration projects for environmental 
              responses.''.
       (b) Repeal of Superseded Provision.--(1) Section 2810 of 
     title 10, United States Code, is repealed.
       (2) The table of sections at the beginning of chapter 169 
     of that title is amended by striking the item relating to 
     section 2810.

     SEC. 313. INCREASED PROCUREMENT OF ENVIRONMENTALLY PREFERABLE 
                   PRODUCTS.

       (a) Procurement Goals.--(1) The Secretary of Defense shall 
     establish goals for the increased procurement by the 
     Department of Defense of procurement items that are 
     environmentally preferable or are made with recovered 
     materials.
       (2) The goals established under paragraph (1) shall be 
     consistent with the requirements of section 6002 of the Solid 
     Waste Disposal Act (42 U.S.C. 6962).
       (3) In establishing goals under paragraph (1), the 
     Secretary shall review the Comprehensive Procurement 
     Guidelines and Guidance on Acquisition of Environmentally 
     Preferable Products and Services developed pursuant to 
     Executive Order 13101 and products identified as 
     environmentally preferable in the Federal Logistics 
     Information System.
       (4) In establishing goals under paragraph (1), the 
     Secretary shall establish a procurement goal for each 
     category of procurement items that is environmentally 
     preferable or is made with recovered materials.
       (5) The goals established under paragraph (1) shall apply 
     to Department purchases in each category of procurement items 
     designated by the Secretary for purposes of paragraph (4), 
     but shall not apply to--
       (A) products or services purchased by Department 
     contractors and subcontractors, even if such products or 
     services are incorporated into procurement items purchased by 
     the Department; or
       (B) credit card purchases or other local purchases that are 
     made outside the requisitioning process of the Department.
       (b) Assessment of Training and Education.--The Secretary 
     shall assess the need to establish a program, or enhance 
     existing programs, for training and educating Department of 
     Defense procurement officials and contractors to ensure that 
     they are aware of Department requirements, preferences, and 
     goals for the procurement of items that are environmentally 
     preferable or are made with recovered materials.
       (c) Tracking System.--The Secretary shall develop a 
     tracking system to identify the extent to which the 
     Department of Defense is procuring items that are 
     environmentally preferable or are made with recovered 
     materials. The tracking system shall separately track 
     procurement of each category of procurement items for which a 
     goal has been established under subsection (a)(4).
       (d) Initial Report.--Not later than 120 days after the date 
     of the enactment of this Act, the Secretary shall submit to 
     the congressional defense committees a report that sets 
     forth--
       (1) the initial goals the Secretary plans to establish 
     under subsection (a); and
       (2) the findings of the Secretary as a result of the 
     assessment under subsection (b), together with any 
     recommendations of the Secretary as a result of the 
     assessment.
       (e) Implementation.--Not later than 180 days after the date 
     of the enactment of this Act, the Secretary shall--
       (1) establish an initial set of goals in accordance with 
     subsection (a);
       (2) begin the implementation of any recommendations of the 
     Secretary under subsection (d)(2) as a result of the 
     assessment under subsection (b); and
       (3) implement the tracking system required by subsection 
     (c).
       (f) Annual Report.--Not later than March 1 of each year 
     from 2004 through 2007, the Secretary shall submit to 
     Congress a report on the progress made in the implementation 
     of this section. Each report shall--
       (1) identify each category of procurement items for which a 
     goal has been established under subsection (a) as of the end 
     of such year; and
       (2) provide information from the tracking system required 
     by subsection (b) that indicates the extent to which the 
     Department has met the goal for the category of procurement 
     items as of the end of such year.
       (g) Definitions.--In this section:
       (1) Environmentally preferable.--The term ``environmentally 
     preferable'', in the case of a procurement item, means that 
     the item has a lesser or reduced effect on human health and 
     the environment when compared with competing procurement 
     items that serve the same purpose. The comparison may be 
     based upon consideration of raw materials acquisition, 
     production, manufacturing, packaging, distribution, reuse, 
     operation, maintenance, or disposal of the procurement item, 
     or other appropriate matters.
       (2) Procurement item.--The term ``procurement item'' has 
     the meaning given that term in section 1004(16) of the Solid 
     Waste Disposal Act (40 U.S.C. 6903(16)).
       (3) Recovered materials.--The term ``recovered materials'' 
     means waste materials and by-products that have been 
     recovered or diverted from solid waste, but does not include 
     materials and by-products generated from, and commonly used 
     within, an original manufacturing process.

     SEC. 314. CLEANUP OF UNEXPLODED ORDNANCE ON KAHO'OLAWE 
                   ISLAND, HAWAII.

       (a) Level of Cleanup Required.--The Secretary of the Navy 
     shall continue activities for the clearance and removal of 
     unexploded ordnance on the Island of Kaho'olawe, Hawaii, and 
     related remediation activities, until the later of the 
     following dates:
       (1) The date on which the Kaho'olawe Island access control 
     period expires.
       (2) The date on which the Secretary achieves each of the 
     following objectives:
       (A) The inspection and assessment of all of Kaho'olawe 
     Island in accordance with current procedures.
       (B) The clearance of 75 percent of Kaho'olawe Island to the 
     degree specified in the Tier One standards in the memorandum 
     of understanding.
       (C) The clearance of 25 percent of Kaho'olawe Island to the 
     degree specified in the Tier Two standards in the memorandum 
     of understanding.
       (b) Definitions.--In this section:
       (1) The term ``Kaho'olawe Island access control period'' 
     means the period for which the Secretary of the Navy is 
     authorized to retain the control of access to the Island of 
     Kaho'olawe, Hawaii, under title X of the Department of 
     Defense Appropriations Act, 1994 (Public Law 103-139; 107 
     Stat. 1480).
       (2) The term ``memorandum of understanding'' means the 
     Memorandum of Understanding Between the United States 
     Department of the Navy and the State of Hawaii Concerning the 
     Island of Kaho'olawe, Hawaii.

[[Page 12165]]



               Subtitle C--Defense Dependents' Education

     SEC. 331. ASSISTANCE TO LOCAL EDUCATIONAL AGENCIES THAT 
                   BENEFIT DEPENDENTS OF MEMBERS OF THE ARMED 
                   FORCES AND DEPARTMENT OF DEFENSE CIVILIAN 
                   EMPLOYEES.

       (a) Continuation of Department of Defense Program for 
     Fiscal Year 2003.--Of the amount authorized to be 
     appropriated pursuant to section 301(a)(5) for operation and 
     maintenance for Defense-wide activities, $30,000,000 shall be 
     available only for the purpose of providing educational 
     agencies assistance to local educational agencies.
       (b) Notification.--Not later than June 30, 2003, the 
     Secretary of Defense shall notify each local educational 
     agency that is eligible for assistance or a payment under 
     subsection (a) for fiscal year 2003 of--
       (1) that agency's eligibility for the assistance or 
     payment; and
       (2) the amount of the assistance or payment for which that 
     agency is eligible.
       (c) Disbursement of Funds.--The Secretary of Defense shall 
     disburse funds made available under subsection (a) not later 
     than 30 days after the date on which notification to the 
     eligible local educational agencies is provided pursuant to 
     subsection (b).
       (d) Definitions.--In this section:
       (1) The term ``educational agencies assistance'' means 
     assistance authorized under section 386(b) of the National 
     Defense Authorization Act for Fiscal Year 1993 (Public Law 
     102-484; 20 U.S.C. 7703 note).
       (2) The term ``local educational agency'' has the meaning 
     given that term in section 8013(9) of the Elementary and 
     Secondary Education Act of 1965 (20 U.S.C. 7713(9)).

     SEC. 332. IMPACT AID FOR CHILDREN WITH SEVERE DISABILITIES.

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

     SEC. 333. OPTIONS FOR FUNDING DEPENDENT SUMMER SCHOOL 
                   PROGRAMS.

       Section 1402(d)(2) of the Defense Dependents' Education Act 
     of 1978 (20 U.S.C. 921(d)(2)) is amended to read as follows:
       ``(2) The Secretary shall provide any summer school program 
     under this subsection on the same financial basis as programs 
     offered during the regular school year, except that the 
     Secretary may charge reasonable fees for all or portions of 
     such summer school programs to the extent that the Secretary 
     determines appropriate.''.

     SEC. 334. COMPTROLLER GENERAL STUDY OF ADEQUACY OF 
                   COMPENSATION PROVIDED FOR TEACHERS IN THE 
                   DEPARTMENT OF DEFENSE OVERSEAS DEPENDENTS' 
                   SCHOOLS.

       (a) Additional Consideration for Study.--Subsection (b) of 
     section 354 of the National Defense Authorization Act for 
     Fiscal Year 2002 (Public Law 107-107; 115 Stat. 1064) is 
     amended by inserting after paragraph (2) the following new 
     paragraph:
       ``(3) Whether the process for setting teacher compensation 
     is efficient and cost effective.''.
       (b) Extension of Time for Reporting.--Subsection (c) of 
     such section is amended by striking ``May 1, 2002'' and 
     inserting ``December 12, 2002''.

                       Subtitle D--Other Matters

     SEC. 341. USE OF HUMANITARIAN AND CIVIC ASSISTANCE FUNDS FOR 
                   RESERVE COMPONENT MEMBERS OF SPECIAL OPERATIONS 
                   COMMAND ENGAGED IN ACTIVITIES RELATING TO 
                   CLEARANCE OF LANDMINES.

       Section 401(c) of title 10, United States Code, is amended 
     by adding at the end the following new paragraph (5):
       ``(5) Up to 10 percent of the amount available for a fiscal 
     year for activities described in subsection (e)(5) may be 
     expended for the pay and allowances of reserve component 
     members of the Special Operations Command performing duty in 
     connection with training and activities related to the 
     clearing of landmines for humanitarian purposes.''.

     SEC. 342. CALCULATION OF FIVE-YEAR PERIOD OF LIMITATION FOR 
                   NAVY-MARINE CORPS INTRANET CONTRACT.

       (a) Commencement of Period.--The five-year period of 
     limitation that is applicable to the multiyear Navy-Marine 
     Corps Intranet contract under section 2306c of title 10, 
     United States Code, shall be deemed to have begun on the date 
     on which the Under Secretary of Defense for Acquisition, 
     Technology, and Logistics and the Chief Information Officer 
     of the Department of Defense approved the ordering of 
     additional workstations under such contract in accordance 
     with subsection (c) of section 814 of the Floyd D. Spence 
     National Defense Authorization Act for Fiscal Year 2001, as 
     added by section 362(a) of the National Defense Authorization 
     Act for Fiscal Year 2002 (Public Law 107-107; 115 Stat. 
     1065).
       (b) Definition.--In this section, the term ``Navy-Marine 
     Corps Intranet contract'' has the meaning given such term in 
     section 814(i)(1) of the Floyd D. Spence National Defense 
     Authorization Act for Fiscal Year 2001 (as amended by section 
     362(c) of Public Law 107-107 (115 Stat. 1067)).

     SEC. 343. REIMBURSEMENT FOR RESERVE COMPONENT INTELLIGENCE 
                   SUPPORT.

       (a) Source of Funds.--Chapter 1003 of title 10, United 
     States Code, is amended by adding at the end the following 
     new section:

     ``Sec. 10115. Reimbursement for reserve component 
       intelligence support

       ``(a) Authority.--Funds appropriated or otherwise made 
     available to a military department, Defense Agency, or 
     combatant command for operation and maintenance shall be 
     available for the pay, allowances, and other costs that would 
     be charged to appropriations for a reserve component for the 
     performance of duties by members of that reserve component in 
     providing intelligence or counterintelligence support to--
       ``(1) such military department, Defense Agency, or 
     combatant command; or
       ``(2) a joint intelligence activity, including any such 
     activity for which funds are authorized to be appropriated 
     within the National Foreign Intelligence Program, the Joint 
     Military Intelligence Program, or the Tactical Intelligence 
     and Related Activities aggregate (or any successor to such 
     program or aggregate).
       ``(b) Construction of Provision.--Nothing in this section 
     shall be construed to authorize deviation from established 
     reserve component personnel or training procedures.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of such chapter is amended by adding at the end the 
     following new item:

``10115. Reimbursement for reserve component intelligence support.''.

     SEC. 344. REBATE AGREEMENTS UNDER THE SPECIAL SUPPLEMENTAL 
                   FOOD PROGRAM.

       (a) Applicability to Navy Exchange Markets.--Paragraph 
     (1)(A) of section 1060a(e) of title 10, United States Code, 
     is amended by inserting ``or Navy Exchange Markets'' after 
     ``commissary stores''.
       (b) Increased Maximum Period of Agreement.--Paragraph (3) 
     of such section 1060a(e) is amended by striking ``subsection 
     may not exceed one year'' in the first sentence and inserting 
     ``subsection, including any period of extension of the 
     contract by modification of the contract, exercise of an 
     option, or other cause, may not exceed three years''.

     SEC. 345. LOGISTICS SUPPORT AND SERVICES FOR WEAPON SYSTEMS 
                   CONTRACTORS.

       (a) Authority.--The Secretary of Defense may make 
     available, in accordance with this section and the 
     regulations prescribed under subsection (e), logistics 
     support and logistics services to a contractor in support of 
     the performance by the contractor of a contract for the 
     construction, modification, or maintenance of a weapon system 
     that is entered into by an official of the Department of 
     Defense.
       (b) Support Contracts.--Any logistics support and logistics 
     services that is to be provided under this section to a 
     contractor in support of the performance of a contract shall 
     be provided under a separate contract that is entered into by 
     the Director of the Defense Logistics Agency with that 
     contractor.
       (c) Scope of Support and Services.--The logistics support 
     and logistics services that may be provided under this 
     section in support of the performance of a contract described 
     in subsection (a) are the distribution, disposal, and 
     cataloging of materiel and repair parts necessary for the 
     performance of that contract.
       (d) Limitations.--(1) The number of contracts described in 
     subsection (a) for which the Secretary makes logistics 
     support and logistics services available under the authority 
     of this section may not exceed five contracts. The total 
     amount of the estimated costs of all such contracts for which 
     logistics support and logistics services are made available 
     under this section may not exceed $100,000,000.
       (2) No contract entered into by the Director of the Defense 
     Logistics Agency under subsection (b) may be for a period in 
     excess of five years, including periods for which the 
     contract is extended under options to extend the contract.
       (e) Regulations.--Before exercising the authority under 
     this section, the Secretary of Defense shall prescribe in 
     regulations such requirements, conditions, and restrictions 
     as the Secretary determines appropriate to ensure that 
     logistics support and logistics services are provided under 
     this section only when it is in the best interests of the 
     United States to do so. The regulations shall include, at a 
     minimum, the following:
       (1) A requirement for the authority under this section to 
     be used only for providing logistics support and logistics 
     services in support of the performance of a contract that is 
     entered into using competitive procedures (as defined in 
     section 4 of the Office of Federal Procurement Policy Act (41 
     U.S.C. 403)).
       (2) A requirement for the solicitation of offers for a 
     contract described in subsection (a), for which logistics 
     support and logistics services are to be made available under 
     this section, to include--
       (A) a statement that the logistics support and logistics 
     services are to be made available under the authority of this 
     section to

[[Page 12166]]

     any contractor awarded the contract, but only on a basis that 
     does not require acceptance of the support and services; and
       (B) a description of the range of the logistics support and 
     logistics services that are to be made available to the 
     contractor.
       (3) A requirement for the rates charged a contractor for 
     logistics support and logistics services provided to a 
     contractor under this section to reflect the full cost to the 
     United States of the resources used in providing the support 
     and services, including the costs of resources used, but not 
     paid for, by the Department of Defense.
       (4) A requirement to credit to the General Fund of the 
     Treasury amounts received by the Department of Defense from a 
     contractor for the cost of logistics support and logistics 
     services provided to the contractor by the Department of 
     Defense under this section but not paid for out of funds 
     available to the Department of Defense.
       (5) With respect to a contract described in subsection (a) 
     that is being performed for a department or agency outside 
     the Department of Defense, a prohibition, in accordance with 
     applicable contracting procedures, on the imposition of any 
     charge on that department or agency for any effort of 
     Department of Defense personnel or the contractor to correct 
     deficiencies in the performance of such contract.
       (6) A prohibition on the imposition of any charge on a 
     contractor for any effort of the contractor to correct a 
     deficiency in the performance of logistics support and 
     logistics services provided to the contractor under this 
     section.
       (f) Relationship to Treaty Obligations.--The Secretary 
     shall ensure that the exercise of authority under this 
     section does not conflict with any obligation of the United 
     States under any treaty or other international agreement.
       (g) Termination of Authority.--(1) The authority provided 
     in this section shall expire on September 30, 2007, subject 
     to paragraph (2).
       (2) The expiration of the authority under this section does 
     not terminate--
       (A) any contract that was entered into by the Director of 
     the Defense Logistics Agency under subsection (b) before the 
     expiration of the authority or any obligation to provide 
     logistics support and logistics services under that contract; 
     or
       (B) any authority--
       (i) to enter into a contract described in subsection (a) 
     for which a solicitation of offers was issued in accordance 
     with the regulations prescribed pursuant to subsection (e)(2) 
     before the date of the expiration of the authority; or
       (ii) to provide logistics support and logistics services to 
     the contractor with respect to that contract in accordance 
     with this section.

     SEC. 346. CONTINUATION OF ARSENAL SUPPORT PROGRAM INITIATIVE.

       (a) Extension Through Fiscal Year 2004.--Subsection (a) of 
     section 343 of the Floyd D. Spence National Defense 
     Authorization Act for Fiscal Year 2001 (as enacted into law 
     by Public Law 106-398; 114 Stat. 1654A-65) is amended by 
     striking ``and 2002'' and inserting ``through 2004''.
       (b) Reporting Requirements.--Subsection (g) of such section 
     is amended--
       (1) in paragraph (1), by striking ``2002'' and inserting 
     ``2004''; and
       (2) in paragraph (2), by striking the first sentence and 
     inserting the following new sentence: ``Not later than July 
     1, 2003, the Secretary of the Army shall submit to the 
     congressional defense committees a report on the results of 
     the demonstration program since its implementation, including 
     the Secretary's views regarding the benefits of the program 
     for Army manufacturing arsenals and the Department of the 
     Army and the success of the program in achieving the purposes 
     specified in subsection (b).''.

     SEC. 347. TWO-YEAR EXTENSION OF AUTHORITY OF THE SECRETARY OF 
                   DEFENSE TO ENGAGE IN COMMERCIAL ACTIVITIES AS 
                   SECURITY FOR INTELLIGENCE COLLECTION ACTIVITIES 
                   ABROAD.

       Section 431(a) of title 10, United States Code, is amended 
     by striking ``December 31, 2002'' in the second sentence and 
     inserting ``December 31, 2004''.

     SEC. 348. INSTALLATION AND CONNECTION POLICY AND PROCEDURES 
                   REGARDING DEFENSE SWITCH NETWORK.

       (a) Establishment of Policy and Procedures.--Not later than 
     180 days after the date of the enactment of this Act, the 
     Secretary of Defense shall establish clear and uniform policy 
     and procedures, applicable to the military departments and 
     Defense Agencies, regarding the installation and connection 
     of telecom switches to the Defense Switch Network.
       (b) Elements of Policy and Procedures.--The policy and 
     procedures shall address at a minimum the following:
       (1) Clear interoperability and compatibility requirements 
     for procuring, certifying, installing, and connecting telecom 
     switches to the Defense Switch Network.
       (2) Current, complete, and enforceable testing, validation, 
     and certification procedures needed to ensure the 
     interoperability and compatibility requirements are 
     satisfied.
       (c) Exceptions.--(1) The Secretary of Defense may specify 
     certain circumstances in which--
       (A) the requirements for testing, validation, and 
     certification of telecom switches may be waived; or
       (B) interim authority for the installation and connection 
     of telecom switches to the Defense Switch Network may be 
     granted.
       (2) Only the Assistant Secretary of Defense for Command, 
     Control, Communications, and Intelligence, after consultation 
     with the Chairman of the Joint Chiefs of Staff, may approve a 
     waiver or grant of interim authority under paragraph (1).
       (d) Inventory of Defense Switch Network.--The Secretary of 
     Defense shall prepare and maintain an inventory of all 
     telecom switches that, as of the date on which the Secretary 
     issues the policy and procedures--
       (1) are installed or connected to the Defense Switch 
     Network; but
       (2) have not been tested, validated, and certified by the 
     Defense Information Systems Agency (Joint Interoperability 
     Test Center).
       (e) Interoperability Risks.--(1) The Secretary of Defense 
     shall, on an ongoing basis--
       (A) identify and assess the interoperability risks that are 
     associated with the installation or connection of uncertified 
     switches to the Defense Switch Network and the maintenance of 
     such switches on the Defense Switch Network; and
       (B) develop and implement a plan to eliminate or mitigate 
     such risks as identified.
       (2) The Secretary shall initiate action under paragraph (1) 
     upon completing the initial inventory of telecom switches 
     required by subsection (d).
       (f) Telecom Switch Defined.--In this section, the term 
     ``telecom switch'' means hardware or software designed to 
     send and receive voice, data, or video signals across a 
     network that provides customer voice, data, or video 
     equipment access to the Defense Switch Network or public 
     switched telecommunications networks.

     SEC. 349. ENGINEERING STUDY AND ENVIRONMENTAL ANALYSIS OF 
                   ROAD MODIFICATIONS IN VICINITY OF FORT BELVOIR, 
                   VIRGINIA.

       (a) Study and Analysis.--(1) The Secretary of the Army 
     shall conduct a preliminary engineering study and 
     environmental analysis to evaluate the feasibility of 
     establishing a connector road between Richmond Highway 
     (United States Route 1) and Telegraph Road in order to 
     provide an alternative to Beulah Road (State Route 613) and 
     Woodlawn Road (State Route 618) at Fort Belvoir, Virginia, 
     which were closed as a force protection measure.
       (2) It is the sense of Congress that the study and analysis 
     should consider as one alternative the extension of Old Mill 
     Road between Richmond Highway and Telegraph Road.
       (b) Consultation.--The study required by subsection (a) 
     shall be conducted in consultation with the Department of 
     Transportation of the Commonwealth of Virginia and Fairfax 
     County, Virginia.
       (c) Report.--The Secretary shall submit to Congress a 
     summary report on the study and analysis required by 
     subsection (a). The summary report shall be submitted 
     together with the budget justification materials in support 
     of the budget of the President for fiscal year 2006 that is 
     submitted to Congress under section 1105(a) of title 31, 
     United States Code.
       (d) Funding.--Of the amount authorized to be appropriated 
     by section 301(a)(1) for the Army for operation and 
     maintenance, $5,000,000 may be available for the study and 
     analysis required by subsection (a).

     SEC. 350. EXTENSION OF WORK SAFETY DEMONSTRATION PROGRAM.

       Section 1112 of the Floyd D. Spence National Defense 
     Authorization Act for Fiscal Year 2001 (as enacted into law 
     by Public Law 106-398; 114 Stat. 1654A-313) is amended--
       (1) in subsection (d), by striking ``September 30, 2002'' 
     and inserting ``September 30, 2003''; and
       (2) in subsection (e)(2), by striking ``December 1, 2002'' 
     and inserting ``December 1, 2003''.

     SEC. 351. LIFT SUPPORT FOR MINE WARFARE SHIPS AND OTHER 
                   VESSELS.

       (a) Amount.--Of the amount authorized to be appropriated by 
     section 302(2), $10,000,000 shall be available for 
     implementing the recommendations resulting from the Navy's 
     Non-Self Deployable Watercraft (NDSW) Study and the Joint 
     Chiefs of Staff Focused Logistics Study, which are to 
     determine the requirements of the Navy for providing lift 
     support for mine warfare ships and other vessels.
       (b) Offsetting Reduction.--Of the amount authorized to be 
     appropriated by section 302(2), the amount provided for the 
     procurement of mine countermeasures ships cradles is hereby 
     reduced by $10,000,000.

     SEC. 352. NAVY DATA CONVERSION ACTIVITIES.

       (a) Amount for Activities.--The amount authorized to be 
     appropriated by section 301(a)(2) is hereby increased by 
     $1,500,000. The total amount of such increase may be 
     available for the Navy Data Conversion and Management 
     Laboratory to support data conversion activities for the 
     Navy.
       (b) Offset.--The amount authorized to be appropriated by 
     section 301(a)(1) is hereby reduced by $1,500,000 to reflect 
     a reduction in

[[Page 12167]]

     the utilities privatization efforts previously planned by the 
     Army.

              TITLE IV--MILITARY PERSONNEL AUTHORIZATIONS

                       Subtitle A--Active Forces

     SEC. 401. END STRENGTHS FOR ACTIVE FORCES.

       The Armed Forces are authorized strengths for active duty 
     personnel as of September 30, 2003, as follows:
       (1) The Army, 485,000.
       (2) The Navy, 379,200.
       (3) The Marine Corps, 175,000.
       (4) The Air Force, 362,500.

     SEC. 402. AUTHORITY TO INCREASE STRENGTH AND GRADE 
                   LIMITATIONS TO ACCOUNT FOR RESERVE COMPONENT 
                   MEMBERS ON ACTIVE DUTY IN SUPPORT OF A 
                   CONTINGENCY OPERATION.

       (a) Active Duty Strength.--Section 115(c)(1) of title 10, 
     United States Code, is amended to read as follows:
       ``(1) increase the end strength authorized pursuant to 
     subsection (a)(1)(A) for a fiscal year for any of the armed 
     forces by--
       ``(A) a number equal to not more than 2 percent of that end 
     strength;
       ``(B) a number equal to the number of members of the 
     reserve components of that armed force on active duty under 
     section 12301(d) of this title in support of a contingency 
     operation in that fiscal year; or
       ``(C) a number not greater than the sum of the numbers 
     authorized by subparagraphs (A) and (B).''.
       (b) Authorized Daily Average for Members in Pay Grades E-8 
     and E-9 on Active Duty.--Section 517 of such title is amended 
     by adding at the end the following new paragraph:
       ``(d) The Secretary of Defense may increase the authorized 
     daily average number of enlisted members on active duty in an 
     armed force in pay grades E-8 and E-9 in a fiscal year under 
     subsection (a) by the number of enlisted members of reserve 
     components of that armed force in pay grades E-8 and E-9, 
     respectively, that are on active duty in that fiscal year 
     under section 12301(d) of this title in support of a 
     contingency operation.''.
       (c) Authorized Strengths for Commissioned Officers in Pay 
     Grades O-4, O-5, and O-6 on Active Duty.--Section 523 of such 
     title is amended--
       (1) in subsection (a), by striking ``subsection (c)'' in 
     paragraphs (1) and (2) and inserting ``subsections (c) and 
     (e)''; and
       (2) by adding at the end the following new subsection:
       ``(e) The Secretary of Defense may increase the authorized 
     total number of commissioned officers serving on active duty 
     in the Army, Navy, Air Force, or Marine Corps in a grade 
     referred to in subsection (c) at the end of any fiscal year 
     under that subsection by the number of commissioned officers 
     of reserve components of the Army, Navy, Air Force, or Marine 
     Corps, respectively, that are then serving on active duty in 
     that grade under section 12301(d) of this title in support of 
     a contingency operation.''.
       (d) Authorized Strengths for General and Flag Officers on 
     Active Duty.--Section 526(a) of such title is amended--
       (1) by redesignating paragraphs (1), (2), (3), and (4) as 
     subparagraphs (A), (B), (C), and (D), respectively;
       (2) by striking ``Limitations.--The'' and inserting 
     ``Limitations.--(1) Except as provided in paragraph (2), 
     the''; and
       (3) by adding at the end the following new paragraph (2):
       ``(2) The Secretary of Defense may increase the number of 
     general and flag officers authorized to be on active duty in 
     the Army, Navy, Air Force, or Marine Corps under paragraph 
     (1) by the number of reserve general or flag officers of 
     reserve components of the Army, Navy, Air Force, or Marine 
     Corps, respectively, that are on active duty under section 
     12301(d) of this title in support of a contingency 
     operation.''.

     SEC. 403. INCREASED ALLOWANCE FOR NUMBER OF MARINE CORPS 
                   GENERAL OFFICERS ON ACTIVE DUTY IN GRADES ABOVE 
                   MAJOR GENERAL.

       Section 525(b)(2)(B) of title 10, United States Code, is 
     amended by striking ``16.2 percent'' and inserting ``17.5 
     percent''.

     SEC. 404. INCREASE IN AUTHORIZED STRENGTHS FOR MARINE CORPS 
                   OFFICERS ON ACTIVE DUTY IN THE GRADE OF 
                   COLONEL.

       The table in section 523(a)(1) of title 10, United States 
     Code, is amended by striking the figures under the heading 
     ``Colonel'' in the portion of the table relating to the 
     Marine Corps and inserting the following:

   ``571
    632
    653
    673
    694
    715
    735''.

                       Subtitle B--Reserve Forces

     SEC. 411. END STRENGTHS FOR SELECTED RESERVE.

       (a) In General.--The Armed Forces are authorized strengths 
     for Selected Reserve personnel of the reserve components as 
     of September 30, 2003, as follows:
       (1) The Army National Guard of the United States, 350,000.
       (2) The Army Reserve, 205,000.
       (3) The Naval Reserve, 87,800.
       (4) The Marine Corps Reserve, 39,558.
       (5) The Air National Guard of the United States, 106,600.
       (6) The Air Force Reserve, 75,600.
       (7) The Coast Guard Reserve, 9,000.
       (b) Adjustments.--The end strengths prescribed by 
     subsection (a) for the Selected Reserve of any reserve 
     component shall be proportionately reduced by--
       (1) the total authorized strength of units organized to 
     serve as units of the Selected Reserve of such component 
     which are on active duty (other than for training) at the end 
     of the fiscal year; and
       (2) the total number of individual members not in units 
     organized to serve as units of the Selected Reserve of such 
     component who are on active duty (other than for training or 
     for unsatisfactory participation in training) without their 
     consent at the end of the fiscal year.

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

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

       Within the end strengths prescribed in section 411(a), the 
     reserve components of the Armed Forces are authorized, as of 
     September 30, 2003, the following number of Reserves to be 
     serving on full-time active duty or full-time duty, in the 
     case of members of the National Guard, for the purpose of 
     organizing, administering, recruiting, instructing, or 
     training the reserve components:
       (1) The Army National Guard of the United States, 24,492.
       (2) The Army Reserve, 13,888.
       (3) The Naval Reserve, 14,572.
       (4) The Marine Corps Reserve, 2,261.
       (5) The Air National Guard of the United States, 11,727.
       (6) The Air Force Reserve, 1,498.

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

       The minimum number of military technicians (dual status) as 
     of the last day of fiscal year 2003 for the reserve 
     components of the Army and the Air Force (notwithstanding 
     section 129 of title 10, United States Code) shall be the 
     following:
       (1) For the Army Reserve, 6,599.
       (2) For the Army National Guard of the United States, 
     24,102.
       (3) For the Air Force Reserve, 9,911.
       (4) For the Air National Guard of the United States, 
     22,495.

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

       (a) Limitations.--(1) Within the limitation provided in 
     section 10217(c)(2) of title 10, United States Code, the 
     number of non-dual status technicians employed by the 
     National Guard as of September 30, 2003, may not exceed the 
     following:
       (A) For the Army National Guard of the United States, 
     1,600.
       (B) For the Air National Guard of the United States, 350.
       (2) The number of non-dual status technicians employed by 
     the Army Reserve as of September 30, 2003, may not exceed 
     995.
       (3) The Air Force Reserve may not employ any person as a 
     non-dual status technician during fiscal year 2003.
       (b) Non-Dual Status Technicians Defined.--In this section, 
     the term ``non-dual status technician'' has the meaning given 
     the term in section 10217(a) of title 10, United States Code.

              Subtitle C--Authorization of Appropriations

     SEC. 421. AUTHORIZATION OF APPROPRIATIONS FOR MILITARY 
                   PERSONNEL.

       There is hereby authorized to be appropriated to the 
     Department of Defense for military personnel for fiscal year 
     2003 a total of $94,352,208,000. The authorization in the 
     preceding sentence supersedes any other authorization of 
     appropriations (definite or indefinite) for such purpose for 
     fiscal year 2003.

                   TITLE V--MILITARY PERSONNEL POLICY

                  Subtitle A--Officer Personnel Policy

     SEC. 501. EXTENSION OF CERTAIN REQUIREMENTS AND EXCLUSIONS 
                   APPLICABLE TO SERVICE OF GENERAL AND FLAG 
                   OFFICERS ON ACTIVE DUTY IN CERTAIN JOINT DUTY 
                   ASSIGNMENTS.

       (a) Recommendations for Assignment to Senior Joint Officer 
     Positions.--Section 604(c) of title 10, United States Code, 
     is amended by striking ``September 30, 2003'' and inserting 
     ``December 31, 2003''.
       (b) Inapplicability of Grade Distribution Requirements.--
     Section 525(b)(5)(C) of such title is amended by striking 
     ``September 30, 2003'' and inserting ``December 31, 2003''.
       (c) Exclusion From Strength Limitation.--Section 526(b)(3) 
     of such title is amended by striking ``October 1, 2002'' and 
     inserting ``December 31, 2003''.

     SEC. 502. EXTENSION OF AUTHORITY TO WAIVE REQUIREMENT FOR 
                   SIGNIFICANT JOINT DUTY EXPERIENCE FOR 
                   APPOINTMENT AS A CHIEF OF A RESERVE COMPONENT 
                   OR A NATIONAL GUARD DIRECTOR.

       (a) Chief of Army Reserve.--Section 3038(b)(4) of title 10, 
     United States Code, is amended by striking ``October 1, 
     2003'' and inserting ``December 31, 2003''.

[[Page 12168]]

       (b) Chief of Naval Reserve.--Section 5143(b)(4) of such 
     title is amended by striking ``October 1, 2003'' and 
     inserting ``December 31, 2003''.
       (c) Commander, Marine Forces Reserve.--Section 5144(b)(4) 
     of such title is amended by striking ``October 1, 2003'' and 
     inserting ``December 31, 2003''.
       (d) Chief of Air Force Reserve.--Section 8038(b)(4) of such 
     title 10, United States Code, is amended by striking 
     ``October 1, 2003'' and inserting ``December 31, 2003''.
       (e) Directors of the National Guard.--Section 
     10506(a)(3)(D) of such title is amended by striking ``October 
     1, 2003'' and inserting ``December 31, 2003''.

     SEC. 503. REPEAL OF LIMITATION ON AUTHORITY TO GRANT CERTAIN 
                   OFFICERS A WAIVER OF REQUIRED SEQUENCE FOR 
                   JOINT PROFESSIONAL MILITARY EDUCATION AND JOINT 
                   DUTY ASSIGNMENT.

       Section 661(c)(3)(D) of title 10, United States Code, is 
     amended by striking ``In the case of officers in grades below 
     brigadier general'' and all that follows through ``selected 
     for the joint specialty during that fiscal year.''.

     SEC. 504. EXTENSION OF TEMPORARY AUTHORITY FOR RECALL OF 
                   RETIRED AVIATORS.

       Section 501(e) of the National Defense Authorization Act 
     for Fiscal Year 2000 (Public Law 106-65; 113 Stat. 589) is 
     amended by striking ``September 30, 2002'' and inserting 
     ``September 30, 2008''.

     SEC. 505. INCREASED GRADE FOR HEADS OF NURSE CORPS.

       (a) Army.--Section 3069(b) of title 10, United States Code, 
     is amended by striking ``brigadier general'' in the second 
     sentence and inserting ``major general''.
       (b) Navy.--The first sentence of section 5150(c) of such 
     title is amended--
       (1) by inserting ``rear admiral (upper half) in the case of 
     an officer in the Nurse Corps or'' after ``for promotion to 
     the grade of''; and
       (2) by inserting ``in the case of an officer in the Medical 
     Service Corps'' after ``rear admiral (lower half)''.
       (c) Air Force.--Section 8069(b) of such title is amended by 
     striking ``brigadier general'' in the second sentence and 
     inserting ``major general''.

     SEC. 506. REINSTATEMENT OF AUTHORITY TO REDUCE SERVICE 
                   REQUIREMENT FOR RETIREMENT IN GRADES ABOVE O-4.

       (a) Officers on Active Duty.--Subsection (a)(2)(A) of 
     section 1370 of title 10, United States Code, is amended--
       (1) by striking ``may authorize'' and all that follows and 
     inserting ``may, in the case of retirements effective during 
     the period beginning on September 1, 2002, and ending on 
     December 31, 2004, authorize--''; and
       (2) by adding at the end the following:
       ``(1) the Deputy Under Secretary of Defense for Personnel 
     and Readiness to reduce such 3-year period of required 
     service to a period not less than two years for retirements 
     in grades above colonel or, in the case of the Navy, captain; 
     and
       ``(2) the Secretary of a military department or the 
     Assistant Secretary of a military department having 
     responsibility for manpower and reserve affairs to reduce 
     such 3-year period to a period of required service not less 
     than two years for retirements in grades of lieutenant 
     colonel and colonel or, in the case of the Navy, commander 
     and captain.''.
       (b) Reserve Officers.--Subsection (d)(5) of such section is 
     amended--
       (1) in the first sentence--
       (A) by striking ``may authorize'' and all that follows and 
     inserting ``may, in the case of retirements effective during 
     the period beginning on September 1, 2002, and ending on 
     December 31, 2004, authorize--''; and
       (B) by adding at the end the following:
       ``(A) the Deputy Under Secretary of Defense for Personnel 
     and Readiness to reduce such 3-year period of required 
     service to a period not less than two years for retirements 
     in grades above colonel or, in the case of the Navy, captain; 
     and
       ``(B) the Secretary of a military department or the 
     Assistant Secretary of a military department having 
     responsibility for manpower and reserve affairs to reduce 
     such 3-year period of required service to a period not less 
     than two years for retirements in grades of lieutenant 
     colonel and colonel or, in the case of the Navy, commander 
     and captain.'';
       (2) by designating the second sentence as paragraph (6) and 
     realigning such paragraph, as so redesignated 2 ems from the 
     left margin; and
       (3) in paragraph (6), as so redesignated, by striking 
     ``this paragraph'' and inserting ``paragraph (5)''.
       (c) Advance Notice to the President and Congress.--Such 
     section is further amended by adding at the end the following 
     new subsection:
       ``(e) Advance Notice to Congress.--(1) The Secretary of 
     Defense shall notify the Committees on Armed Services of the 
     Senate and House of Representatives of--
       ``(A) an exercise of authority under paragraph (2)(A) of 
     subsection (a) to reduce the 3-year minimum period of 
     required service on active duty in a grade in the case of an 
     officer to whom such paragraph applies before the officer is 
     retired in such grade under such subsection without having 
     satisfied that 3-year service requirement; and
       ``(B) an exercise of authority under paragraph (5) of 
     subsection (d) to reduce the 3-year minimum period of service 
     in grade required under paragraph (3)(A) of such subsection 
     in the case of an officer to whom such paragraph applies 
     before the officer is credited with satisfactory service in 
     such grade under subsection (d) without having satisfied that 
     3-year service requirement.
       ``(2) The requirement for a notification under paragraph 
     (1) is satisfied in the case of an officer to whom subsection 
     (c) applies if the notification is included in the 
     certification submitted with respect to such officer under 
     paragraph (1) of such subsection.
       ``(3) The notification requirement under paragraph (1) does 
     not apply to an officer being retired in the grade of 
     lieutenant colonel or colonel or, in the case of the Navy, 
     commander or captain.''.

             Subtitle B--Reserve Component Personnel Policy

     SEC. 511. TIME FOR COMMENCEMENT OF INITIAL PERIOD OF ACTIVE 
                   DUTY FOR TRAINING UPON ENLISTMENT IN RESERVE 
                   COMPONENT.

       Section 12103(d) of title 10, United States Code, is 
     amended by striking ``270 days'' in the second sentence and 
     inserting ``one year''.

     SEC. 512. AUTHORITY FOR LIMITED EXTENSION OF MEDICAL 
                   DEFERMENT OF MANDATORY RETIREMENT OR SEPARATION 
                   OF RESERVE COMPONENT OFFICER.

       (a) Authority.--Chapter 1407 of title 10, United States 
     Code, is amended by adding at the end the following new 
     section:

     ``Sec. 14519. Deferment of retirement or separation for 
       medical reasons

       ``(a) Authority.--If, in the case of an officer required to 
     be retired or separated under this chapter or chapter 1409 of 
     this title, the Secretary concerned determines that the 
     evaluation of the physical condition of the officer and 
     determination of the officer's entitlement to retirement or 
     separation for physical disability require hospitalization or 
     medical observation and that such hospitalization or medical 
     observation cannot be completed with confidence in a manner 
     consistent with the officer's well being before the date on 
     which the officer would otherwise be required to retire or be 
     separated, the Secretary may defer the retirement or 
     separation of the officer.
       ``(b) Period of Deferment.--A deferral of retirement or 
     separation under subsection (a) may not extend for more than 
     30 days after the completion of the evaluation requiring 
     hospitalization or medical observation.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of such chapter is amended by adding at the end the 
     following new item:

``14519. Deferment of retirement or separation for medical reasons.''.

     SEC. 513. REPEAL OF PROHIBITION ON USE OF AIR FORCE RESERVE 
                   AGR PERSONNEL FOR AIR FORCE BASE SECURITY 
                   FUNCTIONS.

       (a) Repeal.--Section 12551 of title 10, United States Code, 
     is repealed.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of chapter 1215 of such title is amended by 
     striking the item relating to section 12551.

                   Subtitle C--Education and Training

     SEC. 521. INCREASE IN AUTHORIZED STRENGTHS FOR THE SERVICE 
                   ACADEMIES.

       (a) United States Military Academy.--Section 4342 of title 
     10, United States Code, is amended--
       (1) in subsection (a), by striking ``4,000'' in the first 
     sentence and inserting ``4,400''; and
       (2) in subsection (i), by striking ``variance in that 
     limitation'' and inserting ``variance above that 
     limitation''.
       (b) United States Naval Academy.--Section 6954 of title 10, 
     United States Code, is amended--
       (1) in subsection (a), by striking ``4,000'' in the first 
     sentence and inserting ``4,400'; and
       (2) in subsection (g), by striking ``variance in that 
     limitation'' and inserting ``variance above that 
     limitation''.
       (c) United States Air Force Academy.--Section 9342 of title 
     10, United States Code, is amended--
       (1) in subsection (a), by striking ``4,000'' in the first 
     sentence and inserting ``4,400''; and
       (2) in subsection (i), by striking ``variance in that 
     limitation'' and inserting ``variance above that 
     limitation''.

           Subtitle D--Decorations, Awards, and Commendations

     SEC. 531. WAIVER OF TIME LIMITATIONS FOR AWARD OF CERTAIN 
                   DECORATIONS TO CERTAIN PERSONS.

       (a) Waiver.--Any limitation established by law or policy 
     for the time within which a recommendation for the award of a 
     military decoration or award must be submitted shall not 
     apply to awards of decorations described in this section, the 
     award of each such decoration having been determined by the 
     Secretary concerned to be warranted in accordance with 
     section 1130 of title 10, United States Code.
       (b) Distinguished-Service Cross of the Army.--Subsection 
     (a) applies to the award

[[Page 12169]]

     of the Distinguished-Service Cross of the Army as follows:
       (1) To Henry Johnson of Albany, New York, for extraordinary 
     heroism in France during the period of May 13 to 15, 1918, 
     while serving as a member of the Army.
       (2) To Hilliard Carter of Jackson, Mississippi, for 
     extraordinary heroism in actions near Troung Loung, Republic 
     of Vietnam, on September 28, 1966, while serving as a member 
     of the Army.
       (3) To Albert C. Welch of Highland Ranch, Colorado, for 
     extraordinary heroism in actions in Ong Thanh, Binh Long 
     Province, Republic of Vietnam, on October 17, 1967, while 
     serving as a member of the Army.
       (c) Distinguished Flying Cross of the Navy.--Subsection (a) 
     applies to the award of the Distinguished Flying Cross of the 
     Navy as follows:
       (1) To Eduguardo Coppola of Falls Church, Virginia, for 
     extraordinary achievement while participating in aerial 
     flight during World War II, while serving as a member of the 
     Navy.
       (2) To James Hoisington, Jr., of Stillman Valley, Illinois, 
     for extraordinary achievement while participating in aerial 
     flight during World War II, while serving as a member of the 
     Navy.
       (3) To William M. Melvin of Lawrenceburg, Tennessee, for 
     extraordinary achievement while participating in aerial 
     flight during World War II, while serving as a member of the 
     Navy.
       (4) To Vincent Urbank of Tom River, New Jersey, for 
     extraordinary achievement while participating in aerial 
     flight during World War II, while serving as a member of the 
     Navy.

     SEC. 532. KOREA DEFENSE SERVICE MEDAL.

       (a) Findings.--Congress makes the following findings:
       (1) More than 40,000 members of the United States Armed 
     Forces have served on the Korean Peninsula each year since 
     the signing of the cease-fire agreement in July 1953 ending 
     the Korean War.
       (2) An estimated 1,200 members of the United States Armed 
     Forces died as a direct result of their service in Korea 
     since the cease-fire agreement in July 1953.
       (b) Army.--(1) Chapter 357 of title 10, United States Code, 
     is amended by adding at the end the following new section:

     ``Sec. 3755. Korea Defense Service Medal

       ``(a) The Secretary of the Army shall issue a campaign 
     medal, to be known as the Korea Defense Service Medal, to 
     each person who while a member of the Army served in the 
     Republic of Korea or the waters adjacent thereto during the 
     KDSM eligibility period and met the service requirements for 
     the award of that medal prescribed under subsection (c).
       ``(b) In this section, the term `KDSM eligibility period' 
     means the period beginning on July 28, 1954, and ending on 
     such date after the date of the enactment of this section as 
     may be determined by the Secretary of Defense to be 
     appropriate for terminating eligibility for the Korea Defense 
     Service Medal.
       ``(c) The Secretary of the Army shall prescribe service 
     requirements for eligibility for the Korea Defense Service 
     Medal. Those requirements shall not be more stringent than 
     the service requirements for award of the Armed Forces 
     Expeditionary Medal for instances in which the award of that 
     medal is authorized.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by adding at the end the following new item:

``3755. Korea Defense Service Medal.''.

       (c) Navy and Marine Corps.--(1) Chapter 567 of title 10, 
     United States Code, is amended by adding at the end the 
     following new section:

     ``Sec. 6257. Korea Defense Service Medal

       ``(a) The Secretary of the Navy shall issue a campaign 
     medal, to be known as the Korea Defense Service Medal, to 
     each person who while a member of the Navy or Marine Corps 
     served in the Republic of Korea or the waters adjacent 
     thereto during the KDSM eligibility period and met the 
     service requirements for the award of that medal prescribed 
     under subsection (c).
       ``(b) In this section, the term `KDSM eligibility period' 
     means the period beginning on July 28, 1954, and ending on 
     such date after the date of the enactment of this section as 
     may be determined by the Secretary of Defense to be 
     appropriate for terminating eligibility for the Korea Defense 
     Service Medal.
       ``(c) The Secretary of the Navy shall prescribe service 
     requirements for eligibility for the Korea Defense Service 
     Medal. Those requirements shall not be more stringent than 
     the service requirements for award of the Armed Forces 
     Expeditionary Medal for instances in which the award of that 
     medal is authorized.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by adding at the end the following new item:

``6257. Korea Defense Service Medal.''.

       (d) Air Force.--(1) Chapter 857 of title 10, United States 
     Code, is amended by adding at the end the following new 
     section:

     ``Sec. 8755. Korea Defense Service Medal

       ``(a) The Secretary of the Air Force shall issue a campaign 
     medal, to be known as the Korea Defense Service Medal, to 
     each person who while a member of the Air Force served in the 
     Republic of Korea or the waters adjacent thereto during the 
     KDSM eligibility period and met the service requirements for 
     the award of that medal prescribed under subsection (c).
       ``(b) In this section, the term `KDSM eligibility period' 
     means the period beginning on July 28, 1954, and ending on 
     such date after the date of the enactment of this section as 
     may be determined by the Secretary of Defense to be 
     appropriate for terminating eligibility for the Korea Defense 
     Service Medal.
       ``(c) The Secretary of the Air Force shall prescribe 
     service requirements for eligibility for the Korea Defense 
     Service Medal. Those requirements shall not be more stringent 
     than the service requirements for award of the Armed Forces 
     Expeditionary Medal for instances in which the award of that 
     medal is authorized.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by adding at the end the following new item:

``8755. Korea Defense Service Medal.''.

       (e) Award for Service Before Date of Enactment.--The 
     Secretary of the military department concerned shall take 
     appropriate steps to provide in a timely manner for the 
     issuance of the Korea Defense Service Medal, upon application 
     therefor, to persons whose eligibility for that medal is by 
     reason of service in the Republic of Korea or the waters 
     adjacent thereto before the date of the enactment of this 
     Act.

                  Subtitle E--National Call to Service

     SEC. 541. ENLISTMENT INCENTIVES FOR PURSUIT OF SKILLS TO 
                   FACILITATE NATIONAL SERVICE.

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

     ``Sec. 326. Enlistment incentives for pursuit of skills to 
       facilitate national service

       ``(a) Incentives Authorized.--The Secretary of Defense may 
     carry out a program in accordance with the provisions of this 
     section under which program a National Call to Service 
     participant described in subsection (b) shall be entitled to 
     an incentive specified in subsection (d).
       ``(b) National Call to Service Participant.--In this 
     section, the term `National Call to Service participant' 
     means a person who first enlists in the armed forces pursuant 
     to a written agreement (prescribed by the Secretary of the 
     military department concerned) under which agreement the 
     person shall--
       ``(1) upon completion of initial entry training (as 
     prescribed by the Secretary of Defense), serve on active duty 
     in the armed forces in a military occupational specialty 
     designated by the Secretary of Defense under subsection (c) 
     for a period of 15 months; and
       ``(2) upon completion of such service on active duty, and 
     without a break in service, serve the minimum period of 
     obligated service specified in the agreement under this 
     section--
       ``(A) on active duty in the armed forces;
       ``(B) in the Selected Reserve;
       ``(C) in the Individual Ready Reserve;
       ``(D) in the Peace Corps, Americorps, or another national 
     service program jointly designated by the Secretary of 
     Defense and the head of such program for purposes of this 
     section; or
       ``(E) in any combination of service referred to in 
     subparagraphs (A) through (D) that is approved by the 
     Secretary of the military department concerned pursuant to 
     regulations prescribed by the Secretary of Defense.
       ``(c) Designated Military Occupational Specialties.--The 
     Secretary of Defense shall designate military occupational 
     specialties for purposes of subsection (b)(1). Such military 
     occupational specialties shall be military occupational 
     specialties that will facilitate, as determined by the 
     Secretary, pursuit of national service by National Call to 
     Service participants during and after their completion of 
     duty or service under an agreement under subsection (b).
       ``(d) Incentives.--The incentives specified in this 
     subsection are as follows:
       ``(1) Payment of a bonus in the amount of $5,000.
       ``(2) Payment of outstanding principal and interest on 
     qualifying student loans of the National Call to Service 
     participant in an amount not to exceed $18,000.
       ``(3) Entitlement to an allowance for educational 
     assistance at the monthly rate equal to the monthly rate 
     payable for basic educational assistance allowances under 
     section 3015(a)(1) of title 38 for a total of 12 months.
       ``(4) Entitlement to an allowance for educational 
     assistance at the monthly rate equal to \2/3\ of the monthly 
     rate payable for basic educational assistance allowances 
     under section 3015(b)(1) of title 38 for a total of 36 
     months.
       ``(e) Election of Incentives.--A National Call to Service 
     participant shall elect in the agreement under subsection (b) 
     which incentive under subsection (d) to receive. An election 
     under this subsection is irrevocable.
       ``(f) Payment of Bonus Amounts.--(1) Payment to a National 
     Call to Service participant of the bonus elected by the 
     National Call to Service participant under subsection (d)(1) 
     shall be made in such time and manner as the Secretary of 
     Defense shall prescribe.
       ``(2)(A) Payment of outstanding principal and interest on 
     the qualifying student loans

[[Page 12170]]

     of a National Call to Service participant, as elected under 
     subsection (d)(2), shall be made in such time and manner as 
     the Secretary of Defense shall prescribe.
       ``(B) Payment under this paragraph of the outstanding 
     principal and interest on the qualifying student loans of a 
     National Call to Service participant shall be made to the 
     holder of such student loans, as identified by the National 
     Call to Service participant to the Secretary of the military 
     department concerned for purposes of such payment.
       ``(3) Payment of a bonus or incentive in accordance with 
     this subsection shall be made by the Secretary of the 
     military department concerned.
       ``(g) Coordination With Montgomery GI Bill Benefits.--(1) A 
     National Call to Service participant who elects an incentive 
     under paragraph (3) or (4) of subsection (d) is not entitled 
     to educational assistance under chapter 1606 of title 10 or 
     basic educational assistance under subchapter II of chapter 
     30 of title 38.
       ``(2)(A) The Secretary of Defense shall, to the maximum 
     extent practicable, administer the receipt by National Call 
     to Service participants of incentives under paragraph (3) or 
     (4) of subsection (d) as if such National Call to Service 
     participants were, in receiving such incentives, receiving 
     educational assistance for members of the Selected Reserve 
     under chapter 1606 of title 10.
       ``(B) The Secretary of Defense shall, in consultation with 
     the Secretary of Veterans Affairs, prescribe regulations for 
     purposes of subparagraph (A). Such regulations shall, to the 
     maximum extent practicable, take into account the 
     administrative provisions of chapters 30 and 36 of title 38 
     that are specified in section 16136 of title 10.
       ``(3) Except as provided in paragraph (1), nothing in this 
     section shall prohibit a National Call to Service participant 
     who satisfies through service under subsection (b) the 
     eligibility requirements for educational assistance under 
     chapter 1606 of title 10 or basic educational assistance 
     under chapter 30 of title 38 from an entitlement to such 
     educational assistance under chapter 1606 of title 10 or 
     basic educational assistance under chapter 30 of title 38, as 
     the case may be.
       ``(h) Repayment.--(1) If a National Call to Service 
     participant who has entered into an agreement under 
     subsection (b) and received or benefited from an incentive 
     under subsection (d)(1) or (d)(2) fails to complete the total 
     period of service specified in such agreement, the National 
     Call to Service participant shall refund to the United States 
     the amount that bears the same ratio to the amount of the 
     incentive as the uncompleted part of such service bears to 
     the total period of such service.
       ``(2) Subject to paragraph (3), an obligation to reimburse 
     the United States imposed under paragraph (1) is for all 
     purposes a debt owed to the United States.
       ``(3) The Secretary concerned may waive, in whole or in 
     part, a reimbursement required under paragraph (1) if the 
     Secretary concerned determines that recovery would be against 
     equity and good conscience or would be contrary to the best 
     interests of the United States.
       ``(4) A discharge in bankruptcy under title 11 that is 
     entered into less than 5 years after the termination of an 
     agreement entered into under subsection (b) does not 
     discharge the person signing the agreement from a debt 
     arising under the agreement or under paragraph (1).
       ``(i) Funding.--Amounts for payment of incentives under 
     subsection (d), including payment of allowances for 
     educational assistance under that subsection, shall be 
     derived from amounts available to the Secretary of the 
     military department concerned for payment of pay, allowances, 
     and other expenses of the members of the armed force 
     concerned.
       ``(j) Regulations.--The Secretary of Defense and the 
     Secretaries of the military departments shall prescribe 
     regulations for purposes of the program under this section.
       ``(k) Definitions.--In this section:
       ``(1) The term `Americorps' means the Americorps program 
     carried out under subtitle C of title I of the National and 
     Community Service Act of 1990 (42 U.S.C. 12571 et seq.).
       ``(2) The term `qualifying student loan' means a loan, the 
     proceeds of which were used to pay the cost of attendance (as 
     defined in section 472 of the Higher Education Act of 1965 
     (20 U.S.C. 1087ll) at an institution of higher education (as 
     defined in section 101 of the Higher Education Act of 1965 
     (20 U.S.C. 1001).
       ``(3) The term `Secretary of a military department' 
     includes the Secretary of Transportation, with respect to 
     matters concerning the Coast Guard when it is not operating 
     as a service in the Navy.''.
       (2) The table of sections at the beginning of that chapter 
     is amended by inserting after the item relating to section 
     325 the following new item:

``326. Enlistment incentives for pursuit of skills to facilitate 
              national service.''.

       (b) Effective Date.--The amendments made by subsection (a) 
     shall take effect on October 1, 2002. No individual entering 
     into an enlistment before that date may participate in the 
     program under section 326 of title 37, United States Code, as 
     added by that subsection.

     SEC. 542. MILITARY RECRUITER ACCESS TO INSTITUTIONS OF HIGHER 
                   EDUCATION.

       (a) Access to Institutions of Higher Education.--Section 
     503 of title 10, United States Code, is amended--
       (1) by redesignating subsection (d) as subsection (e); and
       (2) by inserting after subsection (c) the following new 
     subsection (d):
       ``(d) Access to Institutions of Higher Education.--(1) Each 
     institution of higher education receiving assistance under 
     the Higher Education Act of 1965 (20 U.S.C. 1001 et seq.)--
       ``(A) shall provide to military recruiters the same access 
     to students at the institution as is provided generally to 
     prospective employers of those students; and
       ``(B) shall, upon a request made by military recruiters for 
     military recruiting purposes, provide access to the names, 
     addresses, and telephone listings of students at the 
     institution, notwithstanding section 444(a)(5)(B) of the 
     General Education Provisions Act (20 U.S.C. 1232g(a)(5)(B)).
       ``(2) An institution of higher education may not release a 
     student's name, address, and telephone listing under 
     paragraph (1)(B) without the prior written consent of the 
     student or the parent of the student (in the case of a 
     student under the age of 18) if the student, or a parent of 
     the student, as appropriate, has submitted a request to the 
     institution of higher education that the student's 
     information not be released for a purpose covered by that 
     subparagraph without prior written consent. Each institution 
     of higher education shall notify students and parents of the 
     rights provided under the preceding sentence.
       ``(3) In this subsection, the term `institution of higher 
     education' has the meaning given the term in section 101 of 
     the Higher Education Act of 1965 (20 U.S.C. 1001).''.
       (b) Notification.--The Secretary of Education shall provide 
     to institutions of higher education notice of the provisions 
     of subsection (d) of section 503 of title 10, United States 
     Code, as amended by subsection (a) of this section. Such 
     notice shall be provided not later than 120 days after the 
     date of the enactment of this Act, and shall be provided in 
     consultation with the Secretary of Defense.

                       Subtitle F--Other Matters

     SEC. 551. BIENNIAL SURVEYS ON RACIAL, ETHNIC, AND GENDER 
                   ISSUES.

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

     ``Sec. 481. Racial, ethnic, and gender issues: biennial 
       surveys

       ``(a) In General.--The Secretary of Defense shall carry out 
     two separate biennial surveys in accordance with this section 
     to identify and assess racial, ethnic, and gender issues and 
     discrimination among members of the armed forces serving on 
     active duty and the extent (if any) of activity among such 
     members that may be seen as so-called `hate group' activity.
       ``(b) Biennial Survey on Racial and Ethnic Issues.--One of 
     the surveys conducted every two years under this section 
     shall solicit information on racial and ethnic issues and the 
     climate in the armed forces for forming professional 
     relationships among members of the armed forces of the 
     various racial and ethnic groups. The information solicited 
     shall include the following:
       ``(1) Indicators of positive and negative trends for 
     professional and personal relationships among members of all 
     racial and ethnic groups.
       ``(2) The effectiveness of Department of Defense policies 
     designed to improve relationships among all racial and ethnic 
     groups.
       ``(3) The effectiveness of current processes for complaints 
     on and investigations into racial and ethnic discrimination.
       ``(c) Biennial Survey on Gender Issues.--One of the surveys 
     conducted every two years under this section shall solicit 
     information on gender issues, including issues relating to 
     gender-based harassment and discrimination, and the climate 
     in the armed forces for forming professional relationships 
     between male and female members of the armed forces. The 
     information solicited shall include the following:
       ``(1) Indicators of positive and negative trends for 
     professional and personal relationships between male and 
     female members of the armed forces.
       ``(2) The effectiveness of Department of Defense policies 
     designed to improve professional relationships between male 
     and female members of the armed forces.
       ``(3) The effectiveness of current processes for complaints 
     on and investigations into gender-based discrimination.
       ``(d) Surveys To Alternate Every Year.--The biennial survey 
     under subsection (b) shall be conducted in odd-numbered 
     years. The biennial survey under subsection (c) shall be 
     conducted in even-numbered years.
       ``(e) Implementing Entity.--The Secretary shall carry out 
     the biennial surveys through entities in the Department of 
     Defense as follows:
       ``(1) The biennial review under subsection (b), through the 
     Armed Forces Survey on Racial and Ethnic Issues.

[[Page 12171]]

       ``(2) The biennial review under subsection (c), through the 
     Armed Forces Survey on Gender Issues.
       ``(f) Reports to Congress.--Upon the completion of a 
     biennial survey under this section, the Secretary shall 
     submit to Congress a report containing the results of the 
     survey.
       ``(g) Inapplicability to Coast Guard.--The requirements for 
     surveys under this section do not apply to the Coast 
     Guard.''.
       (b) Clerical Amendment.--The item relating to such section 
     in the table of sections at the beginning of chapter 23 of 
     such title is amended to read as follows:

``481. Racial, ethnic, and gender issues: biennial surveys.''.

     SEC. 552. LEAVE REQUIRED TO BE TAKEN PENDING REVIEW OF A 
                   RECOMMENDATION FOR REMOVAL BY A BOARD OF 
                   INQUIRY.

       (a) Requirement.--Section 1182(c) of title 10, United 
     States Code, is amended--
       (1) by inserting ``(1)'' after ``(c)''; and
       (2) by adding at the end the following new paragraph:
       ``(2) Under regulations prescribed by the Secretary 
     concerned, an officer referred to in paragraph (1) may be 
     required to take leave pending the completion of the action 
     under this chapter in the case of that officer. The officer 
     may be required to begin such leave at any time following the 
     officer's receipt of the report of the board of inquiry, 
     including the board's recommendation for removal from active 
     duty, and the expiration of any period allowed for submission 
     by the officer of a rebuttal to that report. The leave may be 
     continued until the date on which action by the Secretary 
     concerned under this chapter is completed in the case of the 
     officer or may be terminated at any earlier time.''.
       (b) Payment for Mandatory Excess Leave Upon Disapproval of 
     Certain Involuntary Separation Recommendations.--Chapter 40 
     of such title is amended by inserting after section 707 the 
     following new section:

     ``Sec. 707a. Payment upon disapproval of certain board of 
       inquiry recommendations for excess leave required to be 
       taken

       ``(a) An officer--
       ``(1) who is required to take leave under section 
     1182(c)(2) of this title, any period of which is charged as 
     excess leave under section 706(a) of this title, and
       ``(2) whose recommendation for removal from active duty in 
     a report of a board of inquiry is not approved by the 
     Secretary concerned under section 1184 of this title,
     shall be paid, as provided in subsection (b), for the period 
     of leave charged as excess leave.
       ``(b)(1) An officer entitled to be paid under this section 
     shall be deemed, for purposes of this section, to have 
     accrued pay and allowances for each day of leave required to 
     be taken under section 1182(c)(2) of this title that is 
     charged as excess leave (except any day of accrued leave for 
     which the officer has been paid under section 706(b)(1) of 
     this title and which has been charged as excess leave).
       ``(2) The officer shall be paid the amount of pay and 
     allowances that is deemed to have accrued to the officer 
     under paragraph (1), reduced by the total amount of his 
     income from wages, salaries, tips, other personal service 
     income, unemployment compensation, and public assistance 
     benefits from any Government agency during the period the 
     officer is deemed to have accrued pay and allowances. Except 
     as provided in paragraph (3), such payment shall be made 
     within 60 days after the date on which the Secretary 
     concerned decides not to remove the officer from active duty.
       ``(3) If an officer is entitled to be paid under this 
     section, but fails to provide sufficient information in a 
     timely manner regarding the officer's income when such 
     information is requested under regulations prescribed under 
     subsection (c), the period of time prescribed in paragraph 
     (2) shall be extended until 30 days after the date on which 
     the member provides the information requested.
       ``(c) This section shall be administered under uniform 
     regulations prescribed by the Secretaries concerned. The 
     regulations may provide for the method of determining an 
     officer's income during any period the officer is deemed to 
     have accrued pay and allowances, including a requirement that 
     the officer provide income tax returns and other 
     documentation to verify the amount of the officer's 
     income.''.
       (c) Conforming Amendments.--(1) Section 706 of such title 
     is amended by inserting ``or 1182(c)(2)'' after ``section 
     876a'' in subsections (a), (b), and (c).
       (2) The heading for such section is amended to read as 
     follows:

     ``Sec. 706. Administration of required leave''.

       (d) Clerical Amendments.--The table of sections at the 
     beginning of chapter 40 of title 10, United States Code, is 
     amended--
       (1) by striking the item relating to section 706 and 
     inserting the following:

``706. Administration of required leave.'';

     and
       (2) by inserting after the item relating to section 707 the 
     following new item:

``707a. Payment upon disapproval of certain board of inquiry 
              recommendations for excess leave required to be taken.''.

     SEC. 553. STIPEND FOR PARTICIPATION IN FUNERAL HONORS 
                   DETAILS.

       Section 1491(d) of title 10, United States Code, is 
     amended--
       (1) by striking paragraph (1) and inserting the following:
       ``(A) For a participant in the funeral honors detail who is 
     a member or former member of the armed forces in a retired 
     status or is not a member of the armed forces (other than a 
     former member in a retired status) and not an employee of the 
     United States, either--
       ``(i) transportation; or
       ``(ii) a daily stipend prescribed annually by the Secretary 
     of Defense at a single rate that is designed to defray the 
     costs for transportation and other expenses incurred by the 
     participant in connection with participation in the funeral 
     honors detail.'';
       (2) by inserting ``(1)'' after ``(d) Support.--'';
       (3) by redesignating paragraph (2) as subparagraph (B);
       (4) in subparagraph (B), as so redesignated, by inserting 
     ``members of the armed forces in a retired status and'' after 
     ``training for''; and
       (5) by adding at the end the following:
       ``(2) A stipend paid under paragraph (1)(A) to a member or 
     former member of the armed forces in a retired status shall 
     be in addition to any other compensation to which the retired 
     member may be entitled.''.

     SEC. 554. WEAR OF ABAYAS BY FEMALE MEMBERS OF THE ARMED 
                   FORCES IN SAUDI ARABIA.

       (a) Prohibitions Relating to Wear of Abayas.--No member of 
     the Armed Forces having authority over a member of the Armed 
     Forces and no officer or employee of the United States having 
     authority over a member of the Armed Forces may--
       (1) require or encourage that member to wear the abaya 
     garment or any part of the abaya garment while the member is 
     in the Kingdom of Saudi Arabia pursuant to a permanent change 
     of station or orders for temporary duty; or
       (2) take any adverse action, whether formal or informal, 
     against the member for choosing not to wear the abaya garment 
     or any part of the abaya garment while the member is in the 
     Kingdom of Saudi Arabia pursuant to a permanent change of 
     station or orders for temporary duty.
       (b) Instruction.--(1) The Secretary of Defense shall 
     provide each female member of the Armed Forces ordered to a 
     permanent change of station or temporary duty in the Kingdom 
     of Saudi Arabia with instructions regarding the prohibitions 
     in subsection (a) immediately upon the arrival of the member 
     at a United States military installation within the Kingdom 
     of Saudi Arabia. The instructions shall be presented orally 
     and in writing. The written instruction shall include the 
     full text of this section.
       (2) In carrying out paragraph (1), the Secretary shall act 
     through the Commander in Chief, United States Central Command 
     and Joint Task Force Southwest Asia, and the commanders of 
     the Army, Navy, Air Force, and Marine Corps components of the 
     United States Central Command and Joint Task Force Southwest 
     Asia.
       (c) Prohibition on Use of Funds for Procurement of 
     Abayas.--Funds appropriated or otherwise made available to 
     the Department of Defense may not be used to procure abayas 
     for regular or routine issuance to members of the Armed 
     Forces serving in the Kingdom of Saudi Arabia or for any 
     personnel of contractors accompanying the Armed Forces in the 
     Kingdom of Saudi Arabia in the performance of contracts 
     entered into with such contractors by the United States.

          TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS

                     Subtitle A--Pay and Allowances

     SEC. 601. INCREASE IN BASIC PAY FOR FISCAL YEAR 2003.

       (a) Waiver of Section 1009 Adjustment.--The adjustment to 
     become effective during fiscal year 2003 required by section 
     1009 of title 37, United States Code, in the rates of monthly 
     basic pay authorized members of the uniformed services shall 
     not be made.
       (b) Increase in Basic Pay.--Effective on January 1, 2003, 
     the rates of monthly basic pay for members of the uniformed 
     services within each pay grade are as follows:

                        COMMISSIONED OFFICERS\1\
 Years of service computed under section 205 of title 37, United States
                                  Code
------------------------------------------------------------------------
    Pay Grade     2 or less    Over 2     Over 3     Over 4     Over 6
------------------------------------------------------------------------
O-10\2\.........      $0.00      $0.00      $0.00      $0.00       $0.00

[[Page 12172]]

 
O-9.............       0.00       0.00       0.00       0.00        0.00
O-8.............   7,474.50   7,719.30   7,881.60   7,927.20    8,129.40
O-7.............   6,210.90   6,499.20   6,633.00   6,739.20    6,930.90
O-6.............   4,603.20   5,057.10   5,388.90   5,388.90    5,409.60
O-5.............   3,837.60   4,323.00   4,622.40   4,678.50    4,864.80
O-4.............   3,311.10   3,832.80   4,088.70   4,145.70    4,383.00
O-3\3\..........   2,911.20   3,300.30   3,562.20   3,883.50    4,069.50
O-2\3\..........   2,515.20   2,864.70   3,299.40   3,410.70    3,481.20
O-1\3\..........   2,183.70   2,272.50   2,746.80   2,746.80    2,746.80
                 -------------------------------------------------------
                    Over 8    Over 10    Over 12    Over 14     Over 16
                 -------------------------------------------------------
O-10\2\.........      $0.00      $0.00      $0.00      $0.00       $0.00
O-9.............       0.00       0.00       0.00       0.00        0.00
O-8.............   8,468.70   8,547.30   8,868.90   8,961.30    9,238.20
O-7.............   7,120.80   7,340.40   7,559.40   7,779.00    8,468.70
O-6.............   5,641.20   5,672.10   5,672.10   5,994.60    6,564.30
O-5.............   4,977.00   5,222.70   5,403.00   5,635.50    5,991.90
O-4.............   4,637.70   4,954.50   5,201.40   5,372.70    5,471.10
O-3\3\..........   4,273.50   4,405.80   4,623.30   4,736.10    4,736.10
O-2\3\..........   3,481.20   3,481.20   3,481.20   3,481.20    3,481.20
O-1\3\..........   2,746.80   2,746.80   2,746.80   2,746.80    2,746.80
                 -------------------------------------------------------
                   Over 18    Over 20    Over 22    Over 24     Over 26
                 -------------------------------------------------------
O-10\2\.........      $0.00  $12,077.7  $12,137.1  $12,389.4  $12,829.20
                                     0          0          0
O-9.............       0.00  10,563.60  10,715.70  10,935.60   11,319.60
O-8.............   9,639.00  10,008.90  10,255.80  10,255.80   10,255.80
O-7.............   9,051.30   9,051.30   9,051.30   9,051.30    9,096.90
O-6.............   6,898.80   7,233.30   7,423.50   7,616.10    7,989.90
O-5.............   6,161.70   6,329.10   6,519.60   6,519.60    6,519.60
O-4.............   5,528.40   5,528.40   5,528.40   5,528.40    5,528.40
O-3\3\..........   4,736.10   4,736.10   4,736.10   4,736.10    4,736.10
O-2\3\..........   3,481.20   3,481.20   3,481.20   3,481.20    3,481.20
O-1\3\..........   2,746.80   2,746.80   2,746.80   2,746.80    2,746.80
------------------------------------------------------------------------
\1\Notwithstanding the basic pay rates specified in this table, the
  actual rate of basic pay for commissioned officers in pay grades O-7
  through O-10 may not exceed the rate of pay for level III of the
  Executive Schedule and the actual rate of basic pay for all other
  officers may not exceed the rate of pay for level V of the Executive
  Schedule.
\2\Subject to the preceding footnote, while serving as Chairman or Vice
  Chairman of the Joint Chiefs of Staff, Chief of Staff of the Army,
  Chief of Naval Operations, Chief of Staff of the Air Force, Commandant
  of the Marine Corps, or Commandant of the Coast Guard, the rate of
  basic pay for this grade is $14,155.50, regardless of cumulative years
  of service computed under section 205 of title 37, United States Code.
\3\This table does not apply to commissioned officers in pay grade O-1,
  O-2, or O-3 who have been credited with over 4 years of active duty
  service as an enlisted member or warrant officer.


  COMMISSIONED OFFICERS WITH OVER 4 YEARS OF ACTIVE DUTY SERVICE AS AN
                   ENLISTED MEMBER OR WARRANT OFFICER
 Years of service computed under section 205 of title 37, United States
                                  Code
------------------------------------------------------------------------
    Pay Grade     2 or less    Over 2     Over 3     Over 4     Over 6
------------------------------------------------------------------------
O-3E............      $0.00      $0.00      $0.00  $3,883.50   $4,069.50
O-2E............       0.00       0.00       0.00   3,410.70    3,481.20
O-1E............       0.00       0.00       0.00   2,746.80    2,933.70
                 -------------------------------------------------------
                    Over 8    Over 10    Over 12    Over 14     Over 16
                 -------------------------------------------------------
O-3E............  $4,273.50  $4,405.80  $4,623.30  $4,806.30   $4,911.00
O-2E............   3,591.90   3,778.80   3,923.40   4,031.10    4,031.10
O-1E............   3,042.00   3,152.70   3,261.60   3,410.70    3,410.70
                 -------------------------------------------------------
                   Over 18    Over 20    Over 22    Over 24     Over 26
                 -------------------------------------------------------
O-3E............  $5,054.40  $5,054.40  $5,054.40  $5,054.40   $5,054.40
O-2E............   4,031.10   4,031.10   4,031.10   4,031.10    4,031.10
O-1E............   3,410.70   3,410.70   3,410.70   3,410.70    3,410.70
------------------------------------------------------------------------


                           WARRANT OFFICERS\1\
 Years of service computed under section 205 of title 37, United States
                                  Code
------------------------------------------------------------------------
    Pay Grade      2 or less    Over 2     Over 3     Over 4     Over 6
------------------------------------------------------------------------
W-5..............      $0.00      $0.00      $0.00      $0.00      $0.00
W-4..............   3,008.10   3,236.10   3,329.10   3,420.60   3,578.10
W-3..............   2,747.10   2,862.00   2,979.30   3,017.70   3,141.00
W-2..............   2,416.50   2,554.50   2,675.10   2,763.00   2,838.30
W-1..............   2,133.90   2,308.50   2,425.50   2,501.10   2,662.50
                  ------------------------------------------------------
                     Over 8    Over 10    Over 12    Over 14    Over 16
                  ------------------------------------------------------
W-5..............      $0.00      $0.00      $0.00      $0.00      $0.00
W-4..............   3,733.50   3,891.00   4,044.60   4,203.60   4,356.00
W-3..............   3,281.70   3,467.40   3,580.50   3,771.90   3,915.60
W-2..............   2,993.10   3,148.50   3,264.00   3,376.50   3,453.90
W-1..............   2,782.20   2,888.40   3,006.90   3,085.20   3,203.40
                  ------------------------------------------------------

[[Page 12173]]

 
                    Over 18    Over 20    Over 22    Over 24    Over 26
                  ------------------------------------------------------
W-5..............      $0.00  $5,169.30  $5,346.60  $5,524.50  $5,703.30
W-4..............   4,512.00   4,664.40   4,822.50   4,978.20   5,137.50
W-3..............   4,058.40   4,201.50   4,266.30   4,407.00   4,548.00
W-2..............   3,579.90   3,705.90   3,831.00   3,957.30   3,957.30
W-1..............   3,320.70   3,409.50   3,409.50   3,409.50   3,409.50
------------------------------------------------------------------------
\1\Notwithstanding the basic pay rates specified in this table, the
  actual rate of basic pay for warrant officers may not exceed the rate
  of pay for level V of the Executive Schedule.


                           ENLISTED MEMBERS\1\
 Years of service computed under section 205 of title 37, United States
                                  Code
------------------------------------------------------------------------
    Pay Grade      2 or less    Over 2     Over 3     Over 4     Over 6
------------------------------------------------------------------------
E-9\2\...........      $0.00      $0.00      $0.00      $0.00      $0.00
E-8..............       0.00       0.00       0.00       0.00       0.00
E-7..............   2,068.50   2,257.80   2,343.90   2,428.20   2,516.40
E-6..............   1,770.60   1,947.60   2,033.70   2,117.10   2,204.10
E-5..............   1,625.40   1,733.70   1,817.40   1,903.50   2,037.00
E-4..............   1,502.70   1,579.80   1,665.30   1,749.30   1,824.00
E-3..............   1,356.90   1,442.10   1,528.80   1,528.80   1,528.80
E-2..............   1,290.00   1,290.00   1,290.00   1,290.00   1,290.00
E-1\3\...........   1,150.80   1,150.80   1,150.80   1,150.80   1,150.80
                  ------------------------------------------------------
                     Over 8    Over 10    Over 12    Over 14    Over 16
                  ------------------------------------------------------
E-9\2\...........      $0.00  $3,564.30  $3,645.00  $3,747.00  $3,867.00
E-8..............   2,975.40   3,061.20   3,141.30   3,237.60   3,342.00
E-7..............   2,667.90   2,753.40   2,838.30   2,990.40   3,066.30
E-6..............   2,400.90   2,477.40   2,562.30   2,636.70   2,663.10
E-5..............   2,151.90   2,236.80   2,283.30   2,283.30   2,283.30
E-4..............   1,824.00   1,824.00   1,824.00   1,824.00   1,824.00
E-3..............   1,528.80   1,528.80   1,528.80   1,528.80   1,528.80
E-2..............   1,290.00   1,290.00   1,290.00   1,290.00   1,290.00
E-1\3\...........   1,150.80   1,150.80   1,150.80   1,150.80   1,150.80
                  ------------------------------------------------------
                    Over 18    Over 20    Over 22    Over 24    Over 26
                  ------------------------------------------------------
E-9\2\...........  $3,987.30  $4,180.80  $4,344.30  $4,506.30  $4,757.40
E-8..............   3,530.10   3,625.50   3,787.50   3,877.50   4,099.20
E-7..............   3,138.60   3,182.70   3,331.50   3,427.80   3,671.40
E-6..............   2,709.60   2,709.60   2,709.60   2,709.60   2,709.60
E-5..............   2,283.30   2,283.30   2,283.30   2,283.30   2,283.30
E-4..............   1,824.00   1,824.00   1,824.00   1,824.00   1,824.00
E-3..............   1,528.80   1,528.80   1,528.80   1,528.80   1,528.80
E-2..............   1,290.00   1,290.00   1,290.00   1,290.00   1,290.00
E-1\3\...........   1,150.80   1,150.80   1,150.80   1,150.80   1,150.80
------------------------------------------------------------------------
\1\Notwithstanding the basic pay rates specified in this table, the
  actual rate of basic pay for enlisted members may not exceed the rate
  of pay for level V of the Executive Schedule.
\2\Subject to the preceding footnote, while serving as Sergeant Major of
  the Army, Master Chief Petty Officer of the Navy, Chief Master
  Sergeant of the Air Force, Sergeant Major of the Marine Corps, or
  Master Chief Petty Officer of the Coast Guard, the rate of basic pay
  for this grade is $5,732.70, regardless of cumulative years of service
  computed under section 205 of title 37, United States Code.
\3\In the case of members in pay grade E-1 who have served less than 4
  months on active duty, the rate of basic pay is $1,064.70.

     SEC. 602. RATE OF BASIC ALLOWANCE FOR SUBSISTENCE FOR 
                   ENLISTED PERSONNEL OCCUPYING SINGLE GOVERNMENT 
                   QUARTERS WITHOUT ADEQUATE AVAILABILITY OF 
                   MEALS.

       (a) Authority To Pay Increased Rate.--Section 402(d) of 
     title 37, United States Code, is amended to read as follows:
       ``(d) Special Rate for Enlisted Members Occupying Single 
     Quarters Without Adequate Availability of Meals.--The 
     Secretary of Defense, and the Secretary of Transportation 
     with respect to the Coast Guard when it is not operating as a 
     service in the Navy, may pay an enlisted member the basic 
     allowance for subsistence under this section at a monthly 
     rate that is twice the amount in effect under subsection 
     (b)(2) while--
       ``(1) the member is assigned to single Government quarters 
     which have no adequate food storage or preparation facility 
     in the quarters; and
       ``(2) there is no Government messing facility serving those 
     quarters that is capable of making meals available to the 
     occupants of the quarters.''.
       (b) Effective Date.--Subsection (a) and the amendment made 
     by such subsection shall take effect on October 1, 2002.

     SEC. 603. BASIC ALLOWANCE FOR HOUSING IN CASES OF LOW-COST OR 
                   NO-COST MOVES.

       Section 403 of title 37, United States Code, is amended--
       (1) by transferring paragraph (7) of subsection (b) to the 
     end of the section; and
       (2) in such paragraph--
       (A) by striking ``(7)'' and all that follows through 
     ``circumstances of which make it necessary that the member 
     be'' and inserting ``(o) Treatment of Low-Cost and No-Cost 
     Moves as Not Being Reassignments.--In the case of a member 
     who is assigned to duty at a location or under circumstances 
     that make it necessary for the member to be''; and
       (B) by inserting ``for the purposes of this section'' after 
     ``may be treated''.

     SEC. 604. TEMPORARY AUTHORITY FOR HIGHER RATES OF PARTIAL 
                   BASIC ALLOWANCE FOR HOUSING FOR CERTAIN MEMBERS 
                   ASSIGNED TO HOUSING UNDER ALTERNATIVE AUTHORITY 
                   FOR ACQUISITION AND IMPROVEMENT OF MILITARY 
                   HOUSING.

       (a) Authority.--The Secretary of Defense may prescribe and, 
     under section 403(n) of title 37, United States Code, pay for 
     members of the Armed Forces (without dependents) in 
     privatized housing higher rates of partial basic allowance 
     for housing than those that are authorized under paragraph 
     (2) of such section 403(n).
       (b) Members in Privatized Housing.--For the purposes of 
     this section, a member of the Armed Forces (without 
     dependents) is a member of the Armed Forces (without 
     dependents) in privatized housing while the member is 
     assigned to housing that is acquired or constructed under the 
     authority of subchapter IV of chapter 169 of title 10, United 
     States Code.
       (c) Treatment of Housing as Government Quarters.--For 
     purposes of section 403 of title 37, United States Code, a 
     member of the Armed Forces (without dependents) in

[[Page 12174]]

     privatized housing shall be treated as residing in quarters 
     of the United States or a housing facility under the 
     jurisdiction of the Secretary of a military department while 
     a higher rate of partial allowance for housing is paid for 
     the member under this section.
       (d) Payment to Private Source.--The partial basic allowance 
     for housing paid for a member at a higher rate under this 
     section may be paid directly to the private sector source of 
     the housing to whom the member is obligated to pay rent or 
     other charge for residing in such housing if the private 
     sector source credits the amount so paid against the amount 
     owed by the member for the rent or other charge.
       (e) Termination of Authority.--Rates prescribed under 
     subsection (a) may not be paid under the authority of this 
     section in connection with contracts that are entered into 
     after December 31, 2007, for the construction or acquisition 
     of housing under the authority of subchapter IV of chapter 
     169 of title 10, United States Code.

           Subtitle B--Bonuses and Special and Incentive Pays

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

       (a) Selected Reserve Reenlistment Bonus.--Section 308b(f) 
     of title 37, United States Code, is amended by striking 
     ``December 31, 2002'' and inserting ``December 31, 2003''.
       (b) Selected Reserve Enlistment Bonus.--Section 308c(e) of 
     such title is amended by striking ``December 31, 2002'' and 
     inserting ``December 31, 2003''.
       (c) Special Pay for Enlisted Members Assigned to Certain 
     High Priority Units.--Section 308d(c) of such title is 
     amended by striking ``December 31, 2002'' and inserting 
     ``December 31, 2003''.
       (d) Selected Reserve Affiliation Bonus.--Section 308e(e) of 
     such title is amended by striking ``December 31, 2002'' and 
     inserting ``December 31, 2003''.
       (e) Ready Reserve Enlistment and Reenlistment Bonus.--
     Section 308h(g) of such title is amended by striking 
     ``December 31, 2002'' and inserting ``December 31, 2003''.
       (f) Prior Service Enlistment Bonus.--Section 308i(f) of 
     such title is amended by striking ``December 31, 2002'' and 
     inserting ``December 31, 2003''.

     SEC. 612. ONE-YEAR EXTENSION OF CERTAIN BONUS AND SPECIAL PAY 
                   AUTHORITIES FOR CERTAIN HEALTH CARE 
                   PROFESSIONALS.

       (a) Nurse Officer Candidate Accession Program.--Section 
     2130a(a)(1) of title 10, United States Code, is amended by 
     striking ``December 31, 2002'' and inserting ``December 31, 
     2003''.
       (b) Repayment of Education Loans for Certain Health 
     Professionals Who Serve in the Selected Reserve.--Section 
     16302(d) of such title is amended by striking ``January 1, 
     2003'' and inserting ``January 1, 2004''.
       (c) Accession Bonus for Registered Nurses.--Section 
     302d(a)(1) of title 37, United States Code, is amended by 
     striking ``December 31, 2002'' and inserting ``December 31, 
     2003''.
       (d) Incentive Special Pay for Nurse Anesthetists.--Section 
     302e(a)(1) of such title is amended by striking ``December 
     31, 2002'' and inserting ``December 31, 2003''.
       (e) Special Pay for Selected Reserve Health Professionals 
     in Critically Short Wartime Specialties.--Section 302g(f) of 
     such title is amended by striking ``December 31, 2002'' and 
     inserting ``December 31, 2003''.
       (f) Accession Bonus for Dental Officers.--Section 
     302h(a)(1) of such title is amended by striking ``December 
     31, 2002'' and inserting ``December 31, 2003''.

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

       (a) Special Pay for Nuclear-Qualified Officers Extending 
     Period of Active Service.--Section 312(e) of title 37, United 
     States Code, is amended by striking ``December 31, 2002'' and 
     inserting ``December 31, 2003''.
       (b) Nuclear Career Accession Bonus.--Section 312b(c) of 
     such title is amended by striking ``December 31, 2002'' and 
     inserting ``December 31, 2003''.
       (c) Nuclear Career Annual Incentive Bonus.--Section 312c(d) 
     of such title is amended by striking ``December 31, 2002'' 
     and inserting ``December 31, 2003''.

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

       (a) Aviation Officer Retention Bonus.--Section 301b(a) of 
     title 37, United States Code, is amended by striking 
     ``December 31, 2002'' and inserting ``December 31, 2003''.
       (b) Reenlistment Bonus for Active Members.--Section 308(g) 
     of such title is amended by striking ``December 31, 2002'' 
     and inserting ``December 31, 2003''.
       (c) Enlistment Bonus for Active Members.--Section 309(e) of 
     such title is amended by striking ``December 31, 2002'' and 
     inserting ``December 31, 2003''.
       (d) Retention Bonus for Members With Critical Military 
     Skills.--Section 323(i) of such title is amended by striking 
     ``December 31, 2002'' and inserting ``December 31, 2003''.
       (e) Accession Bonus for New Officers in Critical Skills.--
     Section 324(g) of such title is amended by striking 
     ``December 31, 2002'' and inserting ``December 31, 2003''.

     SEC. 615. INCREASED MAXIMUM AMOUNT PAYABLE AS MULTIYEAR 
                   RETENTION BONUS FOR MEDICAL OFFICERS OF THE 
                   ARMED FORCES.

       Section 301d(a)(2) of title 37, United States Code, is 
     amended by striking ``$14,000'' and inserting ``$25,000''.

     SEC. 616. INCREASED MAXIMUM AMOUNT PAYABLE AS INCENTIVE 
                   SPECIAL PAY FOR MEDICAL OFFICERS OF THE ARMED 
                   FORCES.

       Section 302(b)(1) of title 37, United States Code, is 
     amended--
       (1) by striking ``fiscal year 1992, and'' in the second 
     sentence and inserting ``fiscal year 1992,''; and
       (2) by inserting before the period at the end of such 
     sentence the following: ``and before fiscal year 2003, and 
     $50,000 for any twelve-month period beginning after fiscal 
     year 2002''.

     SEC. 617. ASSIGNMENT INCENTIVE PAY.

       (a) Authority.--(1) Chapter 5 of title 37, United States 
     Code, is amended by inserting after section 305a the 
     following new section:

     ``Sec. 305b. Special pay: assignment incentive pay

       ``(a) Authority.--The Secretary concerned, with the 
     concurrence of the Secretary of Defense, may pay monthly 
     incentive pay under this section to a member of a uniformed 
     service for a period that the member performs service, while 
     entitled to basic pay, in an assignment that is designated by 
     the Secretary concerned.
       ``(b) Maximum Rate.--The maximum monthly rate of incentive 
     pay payable to a member under this section is $1,500.
       ``(c) Relationship to Other Pay and Allowances.--Incentive 
     pay paid to a member under this section is in addition to any 
     other pay and allowances to which the member is entitled.
       ``(d) Status Not Affected by Temporary Duty or Leave.--The 
     service of a member in an assignment referred to in 
     subsection (a) shall not be considered discontinued during 
     any period that the member is not performing service in such 
     assignment by reason of temporary duty performed by the 
     member pursuant to orders or absence of the member for 
     authorized leave.
       ``(e) Termination of Authority.--No assignment incentive 
     pay may be paid under this section for months beginning more 
     than three years after the date of the enactment of the 
     National Defense Authorization Act for Fiscal Year 2003.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by inserting after the item relating to section 
     305a the following new item:

``305b. Special pay: assignment incentive pay.''.

       (b) Annual Report.--Not later than February 28 of each of 
     2004 and 2005, the Secretary of Defense shall submit to the 
     Committees on Armed Services of the Senate and the House of 
     Representatives a report on the administration of the 
     authority under section 305b of title 37, United States Code, 
     as added by subsection (a). The report shall include an 
     assessment of the utility of that authority.

     SEC. 618. INCREASED MAXIMUM AMOUNTS FOR PRIOR SERVICE 
                   ENLISTMENT BONUS.

       Section 308i(b)(1) of title 37, United States Code, is 
     amended--
       (1) in subparagraph (A), by striking ``$5,000'' and 
     inserting ``$8,000'';
       (2) in subparagraph (B), by striking ``$2,500'' and 
     inserting ``$4,000''; and
       (3) in subparagraph (C), by striking ``$2,000'' and 
     inserting ``$3,500''.

            Subtitle C--Travel and Transportation Allowances

     SEC. 631. DEFERRAL OF TRAVEL IN CONNECTION WITH LEAVE BETWEEN 
                   CONSECUTIVE OVERSEAS TOURS.

       (a) Date to Which Travel May Be Deferred.--Section 
     411b(a)(2) of title 37, United States Code, is amended by 
     striking ``not more than one year'' in the first sentence and 
     all that follows through ``operation ends.'' in the second 
     sentence and inserting the following: ``the date on which the 
     member departs the duty station in termination of the 
     consecutive tour of duty at that duty station or reports to 
     another duty station under the order involved, as the case 
     may be.''.
       (b) Effective Date and Savings Provision.--(1) The 
     amendment made by subsection (a) shall take effect on October 
     1, 2002.
       (2) Section 411b(a) of title 37, United States Code, as in 
     effect on September 30, 2002, shall continue to apply with 
     respect to travel described in subsection (a)(2) of such 
     title (as in effect on such date) that commences before 
     October 1, 2002.

     SEC. 632. TRANSPORTATION OF MOTOR VEHICLES FOR MEMBERS 
                   REPORTED MISSING.

       (a) Authority To Ship Two Motor Vehicles.--Subsection (a) 
     of section 554 of title 37, United States Code, is amended by 
     striking ``one privately owned motor vehicle'' both places it 
     appears and inserting ``two privately owned motor vehicles''.
       (b) Payments for Late Delivery.--Subsection (i) of such 
     section is amended by adding at the end the following: ``In a 
     case in which two motor vehicles of a member (or the 
     dependent or dependents of a member) are transported at the 
     expense of the United

[[Page 12175]]

     States, no reimbursement is payable under this subsection 
     unless both motor vehicles do not arrive at the authorized 
     destination of the vehicles by the designated delivery 
     date.''.
       (c) Applicability.--The amendments made by subsection (a) 
     shall apply with respect to members whose eligibility for 
     benefits under section 554 of title 37, United States Code, 
     commences on or after the date of the enactment of this Act.

     SEC. 633. DESTINATIONS AUTHORIZED FOR GOVERNMENT PAID 
                   TRANSPORTATION OF ENLISTED PERSONNEL FOR REST 
                   AND RECUPERATION UPON EXTENDING DUTY AT 
                   DESIGNATED OVERSEAS LOCATIONS.

       Section 705(b)(2) of title 10, United States Code, is 
     amended by inserting before the period at the end the 
     following: ``, or to an alternative destination at a cost not 
     to exceed the cost of the round-trip transportation from the 
     location of the extended tour of duty to such nearest port 
     and return''.

     SEC. 634. VEHICLE STORAGE IN LIEU OF TRANSPORTATION TO 
                   CERTAIN AREAS OF THE UNITED STATES OUTSIDE 
                   CONTINENTAL UNITED STATES.

       Section 2634(b) of title 10, United States Code, is 
     amended:
       (1) by redesignating paragraphs (2), (3), and (4) as 
     paragraphs (3), (4), and (5), respectively; and
       (2) by inserting after paragraph (1) the following new 
     paragraph (2):
       ``(2) In lieu of transportation authorized by this section, 
     if a member is ordered to make a change of permanent station 
     to Alaska, Hawaii, Puerto Rico, the Northern Mariana Islands, 
     Guam, or any territory or possession of the United States and 
     laws, regulations, or other restrictions preclude 
     transportation of a motor vehicle described in subsection (a) 
     to the new station, the member may elect to have the vehicle 
     stored at the expense of the United States at a location 
     approved by the Secretary concerned.''.

          Subtitle D--Retirement and Survivor Benefit Matters

     SEC. 641. PAYMENT OF RETIRED PAY AND COMPENSATION TO DISABLED 
                   MILITARY RETIREES.

       (a) In General.--Section 1414 of title 10, United States 
     Code, is amended to read as follows:

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

       ``(a) Payment of Both Retired Pay and Compensation.--Except 
     as provided in subsection (b), a member or former member of 
     the uniformed services who is entitled to retired pay (other 
     than as specified in subsection (c)) and who is also entitled 
     to veterans' disability compensation is entitled to be paid 
     both without regard to sections 5304 and 5305 of title 38.
       ``(b) Special Rule for Chapter 61 Career Retirees.--The 
     retired pay of a member retired under chapter 61 of this 
     title with 20 years or more of service otherwise creditable 
     under section 1405 of this title at the time of the member's 
     retirement is subject to reduction under sections 5304 and 
     5305 of title 38, but only to the extent that the amount of 
     the member's retired pay under chapter 61 of this title 
     exceeds the amount of retired pay to which the member would 
     have been entitled under any other provision of law based 
     upon the member's service in the uniformed services if the 
     member had not been retired under chapter 61 of this title.
       ``(c) Exception.--Subsection (a) does not apply to a member 
     retired under chapter 61 of this title with less than 20 
     years of service otherwise creditable under section 1405 of 
     this title at the time of the member's retirement.
       ``(d) Definitions.--In this section:
       ``(1) The term `retired pay' includes retainer pay, 
     emergency officers' retirement pay, and naval pension.
       ``(2) The term `veterans' disability compensation' has the 
     meaning given the term `compensation' in section 101(13) of 
     title 38.''.
       (b) Repeal of Special Compensation Program.--Section 1413 
     of such title is repealed.
       (c) Conforming Amendment.--Section 641(d) of the National 
     Defense Authorization Act for Fiscal Year 2002 (Public Law 
     107-107; 115 Stat. 1150; 10 U.S.C. 1414 note) is repealed.
       (d) Clerical Amendments.--The table of sections at the 
     beginning of chapter 71 of title 10, United States Code, is 
     amended by striking the items relating to sections 1413 and 
     1414 and inserting the following new item:

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

       (e) Effective Date.--The amendments made by this section 
     shall take effect on--
       (1) the first day of the first month that begins after the 
     date of the enactment of this Act; or
       (2) the first day of the fiscal year that begins in the 
     calendar year in which this Act is enacted, if later than the 
     date specified in paragraph (1).
       (f) Prohibition on Retroactive Benefits.--No benefits may 
     be paid to any person by reason of section 1414 of title 10, 
     United States Code, as amended by subsection (a), for any 
     period before the effective date specified in subsection (e).

     SEC. 642. INCREASED RETIRED PAY FOR ENLISTED RESERVES 
                   CREDITED WITH EXTRAORDINARY HEROISM.

       (a) Authority.--Section 12739 of title 10, United States 
     Code, is amended--
       (1) by redesignating subsections (b) and (c) as subsections 
     (c) and (d), respectively;
       (2) by inserting after subsection (a) the following new 
     subsection (b):
       ``(b) If an enlisted member retired under section 12731 of 
     this title has been credited by the Secretary concerned with 
     extraordinary heroism in the line of duty, the member's 
     retired pay shall be increased by 10 percent of the amount 
     determined under subsection (a). The Secretary's 
     determination as to extraordinary heroism is conclusive for 
     all purposes.''; and
       (3) in subsection (c), as redesignated by paragraph (1), by 
     striking ``amount computed under subsection (a),'' and 
     inserting ``total amount of the monthly retired pay computed 
     under subsections (a) and (b)''.
       (b) Effective Date.--The amendments made by subsection (a) 
     shall take effect on October 1, 2002, and shall apply with 
     respect to retired pay for months beginning on or after that 
     date.

     SEC. 643. EXPANDED SCOPE OF AUTHORITY TO WAIVE TIME 
                   LIMITATIONS ON CLAIMS FOR MILITARY PERSONNEL 
                   BENEFITS.

       (a) Authority.--Section 3702(e)(1) of title 31, United 
     States Code, is amended by striking ``a claim for pay, 
     allowances, or payment for unused accrued leave under title 
     37 or a claim for retired pay under title 10'' and inserting 
     ``a claim referred to in subsection (a)(1)(A)''.
       (b) Applicability.--The amendment made by subsection (a) 
     shall apply with respect to claims presented to the Secretary 
     of Defense under section 3702 of title 31, United States 
     Code, on or after the date of the enactment of this Act.

                       Subtitle E--Other Matters

     SEC. 651. ADDITIONAL AUTHORITY TO PROVIDE ASSISTANCE FOR 
                   FAMILIES OF MEMBERS OF THE ARMED FORCES.

       (a) Authority.--(1) Subchapter I of chapter 88 of title 10, 
     United States Code, is amended by adding at the end the 
     following new section:

     ``Sec. 1788. Additional family assistance

       ``(a) Authority.--The Secretary of Defense may provide for 
     the families of members of the armed forces serving on active 
     duty, in addition to any other assistance available for such 
     families, any assistance that the Secretary considers 
     appropriate to ensure that the children of such members 
     obtain needed child care, education, and other youth 
     services.
       ``(b) Primary Purpose of Assistance.--The assistance 
     authorized by this section should be directed primarily 
     toward providing needed family support, including child care, 
     education, and other youth services, for children of members 
     of the Armed Forces who are deployed, assigned to duty, or 
     ordered to active duty in connection with a contingency 
     operation.''.
       (2) The table of sections at the beginning of such 
     subchapter is amended by adding at the end the following new 
     item:

``1788. Additional family assistance.''.

       (b) Effective Date.--Section 1788 of title 10, United 
     States Code, as added by subsection (a), shall take effect on 
     October 1, 2002.

     SEC. 652. TIME LIMITATION FOR USE OF MONTGOMERY GI BILL 
                   ENTITLEMENT BY MEMBERS OF THE SELECTED RESERVE.

       (a) Extension of Limitation Period.--Section 16133(a)(1) of 
     title 10, United States Code, is amended by striking ``10-
     year'' and inserting ``14-year''.
       (b) Effective Date and Applicability.--The amendment made 
     by subsection (a) shall take effect on October 1, 2002, and 
     shall apply with respect to periods of entitlement to 
     educational assistance under chapter 1606 of title 10, United 
     States Code, that begin on or after October 1, 1992.

     SEC. 653. STATUS OF OBLIGATION TO REFUND EDUCATIONAL 
                   ASSISTANCE UPON FAILURE TO PARTICIPATE 
                   SATISFACTORILY IN SELECTED RESERVE.

       Section 16135 of title 10, United States Code, is amended 
     by adding at the end the following new subsection:
       ``(c)(1) An obligation to pay a refund to the United States 
     under subsection (a)(1)(B) in an amount determined under 
     subsection (b) is, for all purposes, a debt owed to the 
     United States.
       ``(2) A discharge in bankruptcy under title 11 that is 
     entered for a person less than five years after the 
     termination of the person's enlistment or other service 
     described in subsection (a) does not discharge the person 
     from a debt arising under this section with respect to that 
     enlistment or other service.''.

     SEC. 654. PROHIBITION ON ACCEPTANCE OF HONORARIA BY PERSONNEL 
                   AT CERTAIN DEPARTMENT OF DEFENSE SCHOOLS.

       (a) Repeal of Exemption.--Section 542 of the National 
     Defense Authorization Act for Fiscal Year 1993 (Public Law 
     102-484; 106 Stat. 2413; 10 U.S.C. prec. 2161 note) is 
     repealed.
       (b) Effective Date and Applicability.--The amendment made 
     by subsection (a) shall

[[Page 12176]]

     take effect on October 1, 2002, and shall apply with respect 
     to appearances made, speeches presented, and articles 
     published on or after that date.

     SEC. 655. RATE OF EDUCATIONAL ASSISTANCE UNDER MONTGOMERY GI 
                   BILL OF DEPENDENTS TRANSFERRED ENTITLEMENT BY 
                   MEMBERS OF THE ARMED FORCES WITH CRITICAL 
                   SKILLS.

       (a) Clarification.--Section 3020(h) of title 38, United 
     States Code, is amended--
       (1) in paragraph (2)--
       (A) by striking ``paragraphs (4) and (5)'' and inserting 
     ``paragraphs (5) and (6)''; and
       (B) by striking ``and at the same rate'';
       (2) by redesignating paragraphs (3) through (6) as 
     paragraphs (4) through (7), respectively; and
       (3) by inserting after paragraph (2) the following new 
     paragraph (3):
       ``(3)(A) Subject to subparagraph (B), the monthly rate of 
     educational assistance payable to a dependent to whom 
     entitlement is transferred under this section shall be the 
     monthly amount payable under sections 3015 and 3022 of this 
     title to the individual making the transfer.
       ``(B) The monthly rate of assistance payable to a dependent 
     under subparagraph (A) shall be subject to the provisions of 
     section 3032 of this title, except that the provisions of 
     subsection (a)(1) of that section shall not apply even if the 
     individual making the transfer to the dependent under this 
     section is on active duty during all or any part of 
     enrollment period of the dependent in which such entitlement 
     is used.''.
       (b) Effective Date.--The amendments made by subsection (a) 
     shall take effect as if included in the enactment of the 
     National Defense Authorization Act for Fiscal Year 2002 
     (Public Law 107-107), to which such amendments relate.

     SEC. 656. PAYMENT OF INTEREST ON STUDENT LOANS.

       (a) Authority.--(1) Chapter 109 of title 10, United States 
     Code, is amended by adding at the end the following new 
     section:

     ``Sec. 2174. Interest payment program: members on active duty

       ``(a) Authority.--(1) The Secretary concerned may pay in 
     accordance with this section the interest and any special 
     allowances that accrue on one or more student loans of an 
     eligible member of the armed forces.
       ``(2) The Secretary of a military department may exercise 
     the authority under paragraph (1) only if approved by the 
     Secretary of Defense and subject to such requirements, 
     conditions, and restrictions as the Secretary of Defense may 
     prescribe.
       ``(b) Eligible Personnel.--A member of the armed forces is 
     eligible for the benefit under subsection (a) while the 
     member--
       ``(1) is serving on active duty in fulfillment of the 
     member's first enlistment in the armed forces or, in the case 
     of an officer, is serving on active duty and has not 
     completed more than three years of service on active duty;
       ``(2) is the debtor on one or more unpaid loans described 
     in subsection (c); and
       ``(3) is not in default on any such loan.
       ``(c) Student Loans.--The authority to make payments under 
     subsection (a) may be exercised with respect to the following 
     loans:
       ``(1) A loan made, insured, or guaranteed under part B of 
     title IV of the Higher Education Act of 1965 (20 U.S.C. 1071 
     et seq.).
       ``(2) A loan made under part D of such title (20 U.S.C. 
     1087a et seq.).
       ``(3) A loan made under part E of such title (20 U.S.C. 
     1087aa et seq.).
       ``(d) Maximum Benefit.--The months for which interest and 
     any special allowance may be paid on behalf of a member of 
     the armed forces under this section are any 36 consecutive 
     months during which the member is eligible under subsection 
     (b).
       ``(e) Funds for Payments.--Appropriations available for the 
     pay and allowances of military personnel shall be available 
     for payments under this section.
       ``(f) Coordination.--(1) The Secretary of Defense and, with 
     respect to the Coast Guard when it is not operating as a 
     service in the Navy, the Secretary of Transportation shall 
     consult with the Secretary of Education regarding the 
     administration of the authority under this section.
       ``(2) The Secretary concerned shall transfer to the 
     Secretary of Education the funds necessary--
       ``(A) to pay interest and special allowances on student 
     loans under this section (in accordance with sections 428(o) 
     and 464(j) of the Higher Education Act of 1965 (20 U.S.C. 
     1078(o) and 1087dd(j)); and
       ``(B) to reimburse the Secretary of Education for any 
     reasonable administrative costs incurred by the Secretary in 
     coordinating the program under this section with the 
     administration of the student loan programs under parts B, D, 
     and E of title IV of the Higher Education Act of 1965.
       ``(g) Special Allowance Defined.--In this section, the term 
     `special allowance' means a special allowance that is payable 
     under section 438 of the Higher Education Act of 1965 (20 
     U.S.C. 1087-1).''.
       (2) The table of sections at the beginning of such chapter 
     is amended by adding at the end the following new item:

``2174. Interest payment program: members on active duty.''.

       (b) Federal Family Education Loans and Direct Loans.--(1) 
     Subsection (c)(3) of section 428 of the Higher Education Act 
     of 1965 (20 U.S.C. 1078) is amended--
       (A) in clause (i) of subparagraph (A)--
       (i) by striking ``or'' at the end of subclause (II);
       (ii) by inserting ``or'' at the end of subclause (III); and
       (iii) by adding at the end the following new subclause:

       ``(IV) is eligible for interest payments to be made on such 
     loan for service in the Armed Forces under section 2174 of 
     title 10, United States Code, and, pursuant to that 
     eligibility, the interest is being paid on such loan under 
     subsection (o);'';

       (B) in clause (ii)(II) of subparagraph (A), by inserting 
     ``or (i)(IV)'' after ``clause (i)(II)''; and
       (C) by striking subparagraph (C) and inserting the 
     following:
       ``(C) shall contain provisions that specify that--
       ``(i) the form of forbearance granted by the lender 
     pursuant to this paragraph, other than subparagraph 
     (A)(i)(IV), shall be temporary cessation of payments, unless 
     the borrower selects forbearance in the form of an extension 
     of time for making payments, or smaller payments than were 
     previously scheduled; and
       ``(ii) the form of forbearance granted by the lender 
     pursuant to subparagraph (A)(i)(IV) shall be the temporary 
     cessation of all payments on the loan other than payments of 
     interest on the loan, and payments of any special allowance 
     payable with respect to the loan under section 438 of this 
     Act, that are made under subsection (o); and''.
       (2) Section 428 of such Act is further amended by adding at 
     the end the following new subsection:
       ``(o) Armed Forces Student Loan Interest Payment Program.--
       ``(1) Authority.--Using funds received by transfer to the 
     Secretary under section 2174 of title 10, United States Code, 
     for the payment of interest and any special allowance on a 
     loan to a member of the Armed Forces that is made, insured, 
     or guaranteed under this part, the Secretary shall pay the 
     interest and special allowance on such loan as due for a 
     period not in excess of 36 consecutive months. The Secretary 
     may not pay interest or any special allowance on such a loan 
     out of any funds other than funds that have been so 
     transferred.
       ``(2) Forbearance.--During the period in which the 
     Secretary is making payments on a loan under paragraph (1), 
     the lender shall grant the borrower forbearance in accordance 
     with the guaranty agreement under subsection 
     (c)(3)(A)(i)(IV).
       ``(3) Special allowance defined.--For the purposes of this 
     subsection, the term `special allowance', means a special 
     allowance that is payable with respect to a loan under 
     section 438 of this Act.''.
       (c) Federal Perkins Loans.--Section 464 of the Higher 
     Education Act of 1965 (20 U.S.C. 1087dd) is amended--
       (1) in subsection (e)--
       (A) by striking ``or'' at the end of paragraph (1);
       (B) by striking the period at the end of paragraph (2) and 
     inserting ``; or''; and
       (C) by adding at the end the following new paragraph:
       ``(3) the borrower is eligible for interest payments to be 
     made on such loan for service in the Armed Forces under 
     section 2174 of title 10, United States Code, and, pursuant 
     to that eligibility, the interest on such loan is being paid 
     under subsection (j), except that the form of a forbearance 
     under this paragraph shall be a temporary cessation of all 
     payments on the loan other than payments of interest on the 
     loan that are made under subsection (j).''; and
       (2) by adding at the end the following new subsection:
       ``(j) Armed Forces Student Loan Interest Payment Program.--
       ``(1) Authority.--Using funds received by transfer to the 
     Secretary under section 2174 of title 10, United States Code, 
     for the payment of interest on a loan made under this part to 
     a member of the Armed Forces, the Secretary shall pay the 
     interest on the loan as due for a period not in excess of 36 
     consecutive months. The Secretary may not pay interest on 
     such a loan out of any funds other than funds that have been 
     so transferred.
       ``(2) Forbearance.--During the period in which the 
     Secretary is making payments on a loan under paragraph (1), 
     the institution of higher education shall grant the borrower 
     forbearance in accordance with subsection (e)(3).''.
       (d) Effective Date.--The amendments made by this section 
     shall apply with respect to interest, and any special 
     allowance under section 438 of the Higher Education Act of 
     1965, that accrue for months beginning on or after October 1, 
     2003, on student loans described in subsection (c) of section 
     2174 of title 10, United States Code (as added by subsection 
     (a)), that were made before, on, or after such date to 
     members of the Armed Forces who are on active duty (as 
     defined in section 101(d) of title 10, United States Code) on 
     or after that date.

[[Page 12177]]



     SEC. 657. MODIFICATION OF AMOUNT OF BACK PAY FOR MEMBERS OF 
                   NAVY AND MARINE CORPS SELECTED FOR PROMOTION 
                   WHILE INTERNED AS PRISONERS OF WAR DURING WORLD 
                   WAR II TO TAKE INTO ACCOUNT CHANGES IN CONSUMER 
                   PRICE INDEX.

       (a) Modification.--Section 667(c) of the Floyd D. Spence 
     National Defense Authorization Act for Fiscal Year 2001 (as 
     enacted into law by Public Law 106-398; 114 Stat. 1654A-170) 
     is amended by adding at the end the following new paragraph:
       ``(3) The amount determined for a person under paragraph 
     (1) shall be increased to reflect increases in cost of living 
     since the basic pay referred to in paragraph (1)(B) was paid 
     to or for that person, calculated on the basis of the 
     Consumer Price Index (all items--United States city average) 
     published monthly by the Bureau of Labor Statistics.''.
       (b) Recalculation of Previous Payments.--In the case of any 
     payment of back pay made to or for a person under section 667 
     of the Floyd D. Spence National Defense Authorization Act for 
     Fiscal Year 2001 before the date of the enactment of this 
     Act, the Secretary of the Navy shall--
       (1) recalculate the amount of back pay to which the person 
     is entitled by reason of the amendment made by subsection 
     (a); and
       (2) if the amount of back pay, as so recalculated, exceeds 
     the amount of back pay so paid, pay the person, or the 
     surviving spouse of the person, an amount equal to the 
     excess.

                         TITLE VII--HEALTH CARE

     SEC. 701. ELIGIBILITY OF SURVIVING DEPENDENTS FOR TRICARE 
                   DENTAL PROGRAM BENEFITS AFTER DISCONTINUANCE OF 
                   FORMER ENROLLMENT.

       Section 1076a(k)(2) of title 10, United States Code, is 
     amended by striking ``if the dependent is enrolled on the 
     date of the death of the members in a dental benefits plan 
     established under subsection (a)'' and inserting ``if, on the 
     date of the death of the member, the dependent is enrolled in 
     a dental benefits plan established under subsection (a) or is 
     not enrolled in such a plan by reason of a discontinuance of 
     a former enrollment under subsection (f)''.

     SEC. 702. ADVANCE AUTHORIZATION FOR INPATIENT MENTAL HEALTH 
                   SERVICES.

       Section 1079(i)(3) of title 10, United States Code, is 
     amended--
       (1) by inserting ``(A)'' after ``(3)'';
       (2) by striking ``Except in the case of an emergency,'' and 
     inserting ``Except as provided in subparagraphs (B) and 
     (C),''; and
       (3) by adding at the end the following new subparagraph:
       ``(B) Preadmission authorization for inpatient mental 
     health services is not required under subparagraph (A) in the 
     case of an emergency.
       ``(C) Preadmission authorization for inpatient mental 
     health services is not required under subparagraph (A) in a 
     case in which any benefits are payable for such services 
     under part A of title XVIII of the Social Security Act (42 
     U.S.C. 1395c et seq.). The Secretary shall require, however, 
     advance authorization for the continued provision of the 
     inpatient mental health services after benefits cease to be 
     payable for such services under part A of such title in such 
     case.''.

     SEC. 703. CONTINUED TRICARE ELIGIBILITY OF DEPENDENTS 
                   RESIDING AT REMOTE LOCATIONS AFTER DEPARTURE OF 
                   SPONSORS FOR UNACCOMPANIED ASSIGNMENTS.

       Section 1079(p) of title 10, United States Code, is 
     amended--
       (1) in paragraph (1), by striking ``dependents referred to 
     in subsection (a) of a member of the uniformed services 
     referred to in section 1074(c)(3) of this title who are 
     residing with the member'' and inserting ``dependents 
     described in paragraph (3)'';
       (2) by redesignating paragraph (3) as paragraph (4); and
       (3) by inserting after paragraph (2), the following new 
     paragraph (3):
       ``(3) This subsection applies with respect to a dependent 
     referred to in subsection (a) who--
       ``(A) is a dependent of a member of the uniformed services 
     referred to in section 1074(c)(3) of this title and is 
     residing with the member; or
       ``(B) is a dependent of a member who, after having served 
     in a duty assignment described in section 1074(c)(3) of this 
     title, has relocated without the dependent pursuant to orders 
     for a permanent change of duty station from a remote location 
     described in subparagraph (B)(ii) of such section where the 
     member and the dependent resided together while the member 
     served in such assignment, if the orders do not authorize 
     dependents to accompany the member to the new duty station at 
     the expense of the United States and the dependent continues 
     to reside at the same remote location.''.

     SEC. 704. APPROVAL OF MEDICARE PROVIDERS AS TRICARE 
                   PROVIDERS.

       Section 1079 of title 10, United States Code, is amended by 
     adding at the end the following new subsection:
       ``(q) A physician or other health care practitioner who is 
     eligible to receive reimbursement for services provided under 
     the Medicare Program under title XVIII of the Social Security 
     Act (42 U.S.C. 1395 et seq.) shall be considered approved to 
     provide medical care under this section and section 1086 of 
     this title.''.

     SEC. 705. CLAIMS INFORMATION.

       (a) Correspondence to Medicare Claims Information 
     Requirements.--Section 1095c of title 10, United States Code, 
     is amended by adding at the end the following new subsection:
       ``(d) Correspondence to Medicare Claims Information 
     Requirements.--The Secretary of Defense, in consultation with 
     the other administering Secretaries, shall limit the 
     requirements for information in support of claims for payment 
     for health care items and services provided under the TRICARE 
     program so that the information required under the program is 
     substantially the same as the information that would be 
     required for claims for reimbursement for those items and 
     services under title XVIII of the Social Security Act (42 
     U.S.C. 1395 et seq.).''.
       (b) Applicability.--The Secretary of Defense, in 
     consultation with the other administering Secretaries 
     referred to in section 1072(3) of title 10, United States 
     Code, shall apply the limitations required under subsection 
     (d) of section 1095c of such title (as added by subsection 
     (a)) with respect to contracts entered into under the TRICARE 
     program on or after October 1, 2002.

     SEC. 706. DEPARTMENT OF DEFENSE MEDICARE-ELIGIBLE RETIREE 
                   HEALTH CARE FUND.

       (a) Source of Funds for Monthly Accrual Payments Into the 
     Fund.--Section 1116(c) of title 10, United States Code, is 
     amended by striking ``health care programs'' and inserting 
     ``pay of members''.
       (b) Mandatory Participation of Other Uniformed Services.--
     Section 1111(c) of such title is amended--
       (1) in the first sentence, by striking ``may enter into an 
     agreement with any other administering Secretary'' and 
     inserting ``shall enter into an agreement with each other 
     administering Secretary''; and
       (2) in the second sentence, by striking ``Any such'' and 
     inserting ``The''.

     SEC. 707. TECHNICAL CORRECTIONS RELATING TO TRANSITIONAL 
                   HEALTH CARE FOR MEMBERS SEPARATED FROM ACTIVE 
                   DUTY.

       (a) Continued Applicability to Dependents.--Subsection 
     (a)(1) of section 736 of the National Defense Authorization 
     Act for Fiscal Year 2002 (Public Law 107-107; 115 Stat. 1172) 
     is amended to read as follows:
       ``(1) in paragraph (1), by striking `paragraph (2), a 
     member' and all that follows through `of the member),' and 
     inserting `paragraph (3), a member of the armed forces who is 
     separated from active duty as described in paragraph (2) (and 
     the dependents of the member)';''.
       (b) Clarification Regarding the Coast Guard.--Subsection 
     (b)(2) of such section is amended to read as follows:
       ``(2) in subsection (e)--
       ``(A) by striking the first sentence; and
       ``(B) by striking `the Coast Guard' in the second sentence 
     and inserting `the members of the Coast Guard and their 
     dependents'.''.
       (c) Effective Date.--The amendments made by this section 
     shall take effect as of December 28, 2001, and as if included 
     in the National Defense Authorization Act for Fiscal Year 
     2002 as enacted.

     SEC. 708. EXTENSION OF TEMPORARY AUTHORITY FOR ENTERING INTO 
                   PERSONAL SERVICES CONTRACTS FOR THE PERFORMANCE 
                   OF HEALTH CARE RESPONSIBILITIES FOR THE ARMED 
                   FORCES AT LOCATIONS OTHER THAN MILITARY MEDICAL 
                   TREATMENT FACILITIES.

       Section 1091(a)(2) of title 10, United States Code, is 
     amended by striking ``December 31, 2002'' and inserting 
     ``December 31, 2003''.

     SEC. 709. RESTORATION OF PREVIOUS POLICY REGARDING 
                   RESTRICTIONS ON USE OF DEPARTMENT OF DEFENSE 
                   MEDICAL FACILITIES.

       Section 1093 of title 10, United States Code, is amended--
       (1) by striking subsection (b); and
       (2) in subsection (a), by striking ``Restriction on Use of 
     Funds.--''.

     SEC. 710. HEALTH CARE UNDER TRICARE FOR TRICARE BENEFICIARIES 
                   RECEIVING MEDICAL CARE AS VETERANS FROM THE 
                   DEPARTMENT OF VETERANS AFFAIRS.

       Section 1097 of title 10, United States Code, is amended by 
     adding at the end the following new subsection:
       ``(f) Persons Receiving Medical Care From the Department of 
     Veterans Affairs.--A covered beneficiary who is enrolled in 
     and seeks care under the TRICARE program may not be denied 
     such care on the ground that the covered beneficiary is 
     receiving health care from the Department of Veterans Affairs 
     on an ongoing basis if the Department of Veterans Affairs 
     cannot provide the covered beneficiary with the particular 
     care sought by the covered beneficiary within the maximum 
     period provided in the access to care standards that are 
     applicable to that particular care under TRICARE program 
     policy.''.

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

             Subtitle A--Major Defense Acquisition Programs

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

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

[[Page 12178]]



     ``Sec. 2228. Buy-to-budget acquisition: end items

       ``(a) Authority To Acquire Additional End Items.--Using 
     funds available to the Department of Defense for the 
     acquisition of an end item, the head of agency making the 
     acquisition may acquire a higher quantity of the end item 
     than the quantity specified for the end item in a law 
     providing for the funding of that acquisition if that head of 
     an agency makes each of the following findings:
       ``(1) The agency has an established requirement for the end 
     item that is expected to remain substantially unchanged 
     throughout the period of the acquisition.
       ``(2) It is possible to acquire the higher quantity of the 
     end item without additional funding because of production 
     efficiencies or other cost reductions.
       ``(3) The amount of the funds used for the acquisition of 
     the higher quantity of the end item will not exceed the 
     amount provided under that law for the acquisition of the end 
     item.
       ``(4) The amount so provided is sufficient to ensure that 
     each unit of the end item acquired within the higher quantity 
     is fully funded as a complete end item.
       ``(b) Regulations.--The Secretary of Defense shall 
     prescribe regulations for the administration of this section. 
     The regulations shall include, at a minimum, the following:
       ``(1) The level of approval within the Department of 
     Defense that is required for a decision to acquire a higher 
     quantity of an end item under subsection (a).
       ``(2) Authority to exceed by up to 10 percent the quantity 
     of an end item approved in a justification and approval of 
     the use of procedures other than competitive procedures for 
     the acquisition of the end item under section 2304 of this 
     title, but only to the extent necessary to acquire a quantity 
     of the end item permitted in the exercise of authority under 
     subsection (a).
       ``(c) Notification of Congress.--The head of an agency is 
     not required to notify Congress in advance regarding a 
     decision under the authority of this section to acquire a 
     higher quantity of an end item than is specified in a law 
     described in subsection (a), but shall notify the 
     congressional defense committees of the decision not later 
     than 30 days after the date of the decision.
       ``(d) Waiver by Other Law.--A provision of law may not be 
     construed as prohibiting the acquisition of a higher quantity 
     of an end item under this section unless that provision of 
     law--
       ``(1) specifically refers to this section; and
       ``(2) specifically states that the acquisition of the 
     higher quantity of the end item is prohibited notwithstanding 
     the authority provided in this section.
       ``(e) Definitions.--(1) For the purposes of this section, a 
     quantity of an end item shall be considered specified in a 
     law if the quantity is specified either in a provision of 
     that law or in any related representation that is set forth 
     separately in a table, chart, or explanatory text included in 
     a joint explanatory statement or governing committee report 
     accompanying the law.
       ``(2) In this section:
       ``(A) The term `congressional defense committees' means--
       ``(i) the Committee on Armed Services and the Committee on 
     Appropriations of the Senate; and
       ``(ii) the Committee on Armed Services and the Committee on 
     Appropriations of the House of Representatives.
       ``(B) The term `head of an agency' means the Secretary of 
     Defense, the Secretary of the Army, the Secretary of the 
     Navy, and the Secretary of the Air Force.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by adding at the end the following new item:

``2228. Buy-to-budget acquisition: end items.''.
       (b) Time for Issuance of Final Regulations.--The Secretary 
     of Defense shall issue the final regulations under section 
     2228(b) of title 10, United States Code (as added by 
     subsection (a)), not later than 120 days after the date of 
     the enactment of this Act.

     SEC. 802. REPORT TO CONGRESS ON INCREMENTAL ACQUISITION OF 
                   MAJOR SYSTEMS.

       (a) Report Required.--Not later than 120 days after the 
     date of the enactment of this Act, the Secretary of Defense 
     shall submit to the congressional defense committees a report 
     on the approach that the Secretary plans to take to applying 
     the requirements of chapter 144 of title 10, United States 
     Code, sections 139, 181, 2366, 2399, and 2400 of such title, 
     Department of Defense Directive 5000.1, Department of Defense 
     Instruction 5000.2, and Chairman of the Joint Chiefs of Staff 
     Instruction 3170.01B, and other provisions of law and 
     regulations applicable to incremental acquisition programs.
       (b) Content of Report.--The report shall, at a minimum, 
     address the following matters:
       (1) The manner in which the Secretary plans to establish 
     and approve, for each increment of an incremental acquisition 
     program--
       (A) operational requirements; and
       (B) cost and schedule goals.
       (2) The manner in which the Secretary plans, for each 
     increment of an incremental acquisition program--
       (A) to meet requirements for operational testing and live 
     fire testing;
       (B) to monitor cost and schedule performance; and
       (C) to comply with laws requiring reports to Congress on 
     results testing and on cost and schedule performance.
       (3) The manner in which the Secretary plans to ensure that 
     each increment of an incremental acquisition program is 
     designed--
       (A) to achieve interoperability within and among United 
     States forces and United States coalition partners; and
       (B) to optimize total system performance and minimize total 
     ownership costs by giving appropriate consideration to--
       (i) logistics planning;
       (ii) manpower, personnel, and training;
       (iii) human, environmental, safety, occupational health, 
     accessibility, survivability, operational continuity, and 
     security factors;
       (iv) protection of critical program information; and
       (v) spectrum management.
       (c) Definitions.--In this section:
       (1) The term ``incremental acquisition program'' means an 
     acquisition program that is to be conducted in discrete 
     phases or blocks, with each phase or block consisting of the 
     planned production and acquisition of one or more units of a 
     major system.
       (2) The term ``increment'' refers to one of the discrete 
     phases or blocks of an incremental acquisition program.
       (3) The term ``major system'' has the meaning given such 
     term in section 2302(5) of title 10, United States Code.

     SEC. 803. PILOT PROGRAM FOR SPIRAL DEVELOPMENT OF MAJOR 
                   SYSTEMS.

       (a) Authority.--The Secretary of Defense is authorized to 
     conduct a pilot program for the spiral development of major 
     systems and to designate research and development programs of 
     the military departments and Defense Agencies to participate 
     in the pilot program.
       (b) Designation of Participating Programs.--(1) A research 
     and development program for a major system of a military 
     department or Defense Agency may be conducted as a spiral 
     development program only if the Secretary of Defense approves 
     a spiral development plan submitted by the Secretary of that 
     military department or head of that Defense Agency, as the 
     case may be, and designates the program as a participant in 
     the pilot program under this section.
       (2) The Secretary of Defense shall submit a copy of each 
     spiral development plan approved under this section to the 
     congressional defense committees.
       (c) Spiral Development Plans.--A spiral development plan 
     for a participating program shall, at a minimum, include the 
     following matters:
       (1) A rationale for dividing the program into separate 
     spirals, together with a preliminary identification of the 
     spirals to be included.
       (2) A program strategy, including overall cost, schedule, 
     and performance goals for the total program.
       (3) Specific cost, schedule, and performance parameters, 
     including measurable exit criteria, for the first spiral to 
     be conducted.
       (4) A testing plan to ensure that performance goals, 
     parameters, and exit criteria are met.
       (5) An appropriate limitation on the number of prototype 
     units that may be produced under the program.
       (6) Specific performance parameters, including measurable 
     exit criteria, that must be met before the program proceeds 
     into production of units in excess of the limitation on the 
     number of prototype units.
       (d) Guidance.--Not later than 120 days after the date of 
     the enactment of this Act, the Secretary of Defense shall 
     issue guidance for the implementation of the spiral 
     development pilot program authorized by this section. The 
     guidance shall, at a minimum, include the following matters:
       (1) A process for the development, review, and approval of 
     each spiral development plan submitted by the Secretary of a 
     military department or head of a Defense Agency.
       (2) A process for establishing and approving specific cost, 
     schedule, and performance parameters, including measurable 
     exit criteria, for spirals to be conducted after the first 
     spiral.
       (3) Appropriate planning, testing, reporting, oversight, 
     and other requirements to ensure that the spiral development 
     program--
       (A) satisfies realistic and clearly-defined performance 
     standards, cost objectives, and schedule parameters 
     (including measurable exit criteria for each spiral);
       (B) achieve interoperability within and among United States 
     forces and United States coalition partners; and
       (C) optimize total system performance and minimize total 
     ownership costs by giving appropriate consideration to--
       (i) logistics planning;
       (ii) manpower, personnel, and training;
       (iii) human, environmental, safety, occupational health, 
     accessibility, survivability, operational continuity, and 
     security factors;
       (iv) protection of critical program information; and
       (v) spectrum management.
       (4) A process for independent validation of the 
     satisfaction of exit criteria and other relevant 
     requirements.
       (5) A process for operational testing of fieldable 
     prototypes to be conducted before

[[Page 12179]]

     or in conjunction with the fielding of the prototypes.
       (e) Reporting Requirement.--The Secretary shall submit to 
     Congress at the end of each quarter of a fiscal year a status 
     report on each research and development program that is a 
     participant in the pilot program. The report shall contain 
     information on unit costs that is similar to the information 
     on unit costs under major defense acquisition programs that 
     is required to be provided to Congress under chapter 144 of 
     title 10, United States Code, except that the information on 
     unit costs shall address projected prototype costs instead of 
     production costs.
       (f) Applicability of Existing Law.--Nothing in this section 
     shall be construed to exempt any program of the Department of 
     Defense from the application of any provision of chapter 144 
     of title 10, United States Code, section 139, 181, 2366, 
     2399, or 2400 of such title, or any requirement under 
     Department of Defense Directive 5000.1, Department of Defense 
     Instruction 5000.2, or Chairman of the Joint Chiefs of Staff 
     Instruction 3170.01B in accordance with the terms of such 
     provision or requirement.
       (g) Termination of Program Participation.--The conduct of a 
     participating program as a spiral development program under 
     the pilot program shall terminate when the decision is made 
     for the participating program to proceed into the production 
     of units in excess of the number of prototype units permitted 
     under the limitation provided in spiral development plan for 
     the program pursuant to subsection (c)(5).
       (h) Termination of Pilot Program.--(1) The authority to 
     conduct a pilot program under this section shall terminate 
     three years after the date of the enactment of this Act.
       (2) The termination of the pilot program shall not 
     terminate the authority of the Secretary of a military 
     department or head of a Defense Agency to continue to 
     conduct, as a spiral development program, any research and 
     development program that was designated to participate in the 
     pilot program before the date on which the pilot program 
     terminates. In the continued conduct of such a research and 
     development program as a spiral development program on and 
     after such date, the spiral development plan approved for the 
     program, the guidance issued under subsection (d), and 
     subsections (e), (f), and (g) shall continue to apply.
       (i) Definitions.--In this section:
       (1) The term ``spiral development program'' means a 
     research and development program that--
       (A) is conducted in discrete phases or blocks, each of 
     which will result in the development of fieldable prototypes; 
     and
       (B) will not proceed into acquisition until specific 
     performance parameters, including measurable exit criteria, 
     have been met.
       (2) The term ``spiral'' means one of the discrete phases or 
     blocks of a spiral development program.
       (3) The term ``major system'' has the meaning given such 
     term in section 2302(5) of title 10, United States Code.
       (4) The term ``participating program'' means a research and 
     development program that is designated to participate in the 
     pilot program under subsection (b).

     SEC. 804. IMPROVEMENT OF SOFTWARE ACQUISITION PROCESSES.

       (a) Establishment of Programs.--(1) The Secretary of each 
     military department shall establish a program to improve the 
     software acquisition processes of that military department.
       (2) The head of each Defense Agency that manages a major 
     defense acquisition program with a substantial software 
     component shall establish a program to improve the software 
     acquisition processes of that Defense Agency.
       (3) The programs required by this subsection shall be 
     established not later than 120 days after the date of the 
     enactment of this Act.
       (b) Program Requirements.--A program to improve software 
     acquisition processes under this section shall, at a minimum, 
     include the following:
       (1) A documented process for software acquisition planning, 
     requirements development and management, project management 
     and oversight, and risk management.
       (2) Efforts to develop systems for performance measurement 
     and continual process improvement.
       (3) A system for ensuring that each program office with 
     substantial software responsibilities implements and adheres 
     to established processes and requirements.
       (c) Department of Defense Guidance.--The Assistant 
     Secretary of Defense for Command, Control, Communications, 
     and Intelligence, in consultation with the Under Secretary of 
     Defense for Acquisition, Technology, and Logistics, shall--
       (1) prescribe uniformly applicable guidance for the 
     administration of all of the programs established under 
     subsection (a) and take such actions as are necessary to 
     ensure that the military departments and Defense Agencies 
     comply with the guidance; and
       (2) assist the Secretaries of the military departments and 
     the heads of the Defense Agencies to carry out such programs 
     effectively by identifying, and serving as a clearinghouse 
     for information regarding, best practices in software 
     acquisition processes in both the public and private sectors.
       (d) Definitions.--In this section:
       (1) The term ``Defense Agency'' has the meaning given the 
     term in section 101(a)(11) of title 10, United States Code.
       (2) The term ``major defense acquisition program'' has the 
     meaning given the term in section 2430 of title 10, United 
     States Code.

     SEC. 805. INDEPENDENT TECHNOLOGY READINESS ASSESSMENTS.

       Section 804(b) of the National Defense Authorization Act 
     for Fiscal Year 2002 (Public Law 107-107; 115 Stat. 1180) is 
     amended--
       (1) by striking ``and'' at the end of paragraph (1);
       (2) by striking the period at the end of paragraph (2) and 
     inserting ``; and''; and
       (3) by adding at the end the following new paragraph:
       ``(3) identify each case in which an authoritative decision 
     has been made within the Department of Defense not to conduct 
     an independent technology readiness assessment for a critical 
     technology on a major defense acquisition program and explain 
     the reasons for the decision.''.

     SEC. 806. TIMING OF CERTIFICATION IN CONNECTION WITH WAIVER 
                   OF SURVIVABILITY AND LETHALITY TESTING 
                   REQUIREMENTS.

       (a) Certification for Expedited Programs.--Paragraph (1) of 
     subsection (c) of section 2366 of title 10, United States 
     Code, is amended to read as follows:
       ``(1) The Secretary of Defense may waive the application of 
     the survivability and lethality tests of this section to a 
     covered system, munitions program, missile program, or 
     covered product improvement program if the Secretary 
     determines that live-fire testing of such system or program 
     would be unreasonably expensive and impractical and submits a 
     certification of that determination to Congress--
       ``(A) before Milestone B approval for the system or 
     program; or
       ``(B) in the case of a system or program initiated at--
       ``(i) Milestone B, as soon as is practicable after the 
     Milestone B approval; or
       ``(ii) Milestone C, as soon as is practicable after the 
     Milestone C approval.''.
       (b) Definitions.--Subsection (e) of such section is amended 
     by adding at the end the following new paragraphs:
       ``(8) The term `Milestone B approval' means a decision to 
     enter into system development and demonstration pursuant to 
     guidance prescribed by the Secretary of Defense for the 
     management of Department of Defense acquisition programs.
       ``(9) The term `Milestone C approval' means a decision to 
     enter into production and deployment pursuant to guidance 
     prescribed by the Secretary of Defense for the management of 
     Department of Defense acquisition programs.''.

              Subtitle B--Procurement Policy Improvements

     SEC. 811. PERFORMANCE GOALS FOR CONTRACTING FOR SERVICES.

       (a) Individual Purchases of Services.--Subsection (a) of 
     section 802 of the National Defense Authorization Act for 
     Fiscal Year 2002 (Public Law 107-107; 10 U.S.C. 2330 note) is 
     amended by adding at the end the following new paragraphs:
       ``(3) To support the attainment of the goals established in 
     paragraph (2), the Department of Defense shall have the 
     following goals:
       ``(A) To increase, as a percentage of all of the individual 
     purchases of services made by or for the Department of 
     Defense under multiple award contracts for a fiscal year 
     (calculated on the basis of dollar value), the volume of the 
     individual purchases of services that are made on a 
     competitive basis and involve the receipt of two or more 
     offers from qualified contractors to a percentage as follows:
       ``(i) For fiscal year 2003, a percentage not less than 50 
     percent.
       ``(ii) For fiscal year 2004, a percentage not less than 60 
     percent.
       ``(iii) For fiscal year 2011, a percentage not less than 80 
     percent.
       ``(B) To increase, as a percentage of all of the individual 
     purchases of services made by or for the Department of 
     Defense under multiple award contracts for a fiscal year 
     (calculated on the basis of dollar value), the use of 
     performance-based purchasing specifying firm fixed prices for 
     the specific tasks to be performed to a percentage as 
     follows:
       ``(i) For fiscal year 2003, a percentage not less than 30 
     percent.
       ``(ii) For fiscal year 2004, a percentage not less than 40 
     percent.
       ``(iii) For fiscal year 2005, a percentage not less than 50 
     percent.
       ``(iv) For fiscal year 2011, a percentage not less than 80 
     percent.''.
       (b) Extension and Revision of Reporting Requirement.--
     Subsection (b) of such section is amended--
       (1) by striking ``March 1, 2006'', and inserting ``March 1, 
     2011''; and
       (2) by adding at the end the following new paragraphs:
       ``(6) Regarding the individual purchases of services that 
     were made by or for the Department of Defense under multiple 
     award contracts in the fiscal year preceding the fiscal year 
     in which the report is required to be submitted, information 
     (determined using

[[Page 12180]]

     the data collection system established under section 2330a of 
     title 10, United States Code) as follows:
       ``(A) The percentage (calculated on the basis of dollar 
     value) of such purchases that are purchases that were made on 
     a competitive basis and involved receipt of two or more 
     offers from qualified contractors.
       ``(B) The percentage (calculated on the basis of dollar 
     value) of such purchases that are performance-based purchases 
     specifying firm fixed prices for the specific tasks to be 
     performed.''.
       (c) Definitions.--Such section is further amended by adding 
     at the end the following new subsection:
       ``(c) Definitions.--In this section:
       ``(1) The term `individual purchase' means a task order, 
     delivery order, or other purchase.
       ``(2) The term `multiple award contract' means--
       ``(A) a contract that is entered into by the Administrator 
     of General Services under the multiple award schedule program 
     referred to in section 2302(2)(C) of title 10, United States 
     Code;
       ``(B) a multiple award task order contract that is entered 
     into under the authority of sections 2304a through 2304d of 
     title 10, United States Code, or sections 303H through 303K 
     of the Federal Property and Administrative Services Act of 
     1949 (41 U.S.C. 253h through 253k); and
       ``(C) any other indefinite delivery, indefinite quantity 
     contract that is entered into by the head of a Federal agency 
     with two or more sources pursuant to the same 
     solicitation.''.

     SEC. 812. GRANTS OF EXCEPTIONS TO COST OR PRICING DATA 
                   CERTIFICATION REQUIREMENTS AND WAIVERS OF COST 
                   ACCOUNTING STANDARDS.

       (a) Guidance for Exceptions in Exceptional Circumstances.--
     (1) Not later than 60 days after the date of the enactment of 
     this Act, the Secretary of Defense shall issue guidance on 
     the circumstances under which it is appropriate to grant--
       (A) an exception pursuant to section 2306a(b)(1)(C) of 
     title 10, United States Code, relating to submittal of 
     certified contract cost and pricing data; or
       (B) a waiver pursuant to section 26(f)(5)(B) of the Office 
     of Federal Procurement Policy Act (41 U.S.C. 422(f)(5)(B)), 
     relating to the applicability of cost accounting standards to 
     contracts and subcontracts.
       (2) The guidance shall, at a minimum, include a limitation 
     that a grant of an exception or waiver referred to in 
     paragraph (1) is appropriate with respect to a contract or 
     subcontract, or (in the case of submittal of certified cost 
     and pricing data) a modification, only upon a determination 
     that the property or services cannot be obtained under the 
     contract, subcontract, or modification, as the case may be, 
     without the grant of the exception or waiver.
       (b) Semiannual Report.--(1) The Secretary of Defense shall 
     transmit to the congressional defense committees promptly 
     after the end of each half of a fiscal year a report on the 
     exceptions to cost or pricing data certification requirements 
     and the waivers of applicability of cost accounting standards 
     that, in cases described in paragraph (2), were granted 
     during that half of the fiscal year.
       (2) The report for a half of a fiscal year shall include an 
     explanation of--
       (A) each decision by the head of a procuring activity 
     within the Department of Defense to exercise the authority 
     under subparagraph (B) or (C) of subsection (b)(1) of section 
     2306a of title 10, United States Code, to grant an exception 
     to the requirements of such section in the case of a 
     contract, subcontract, or contract or subcontract 
     modification that is expected to have a price of $15,000,000 
     or more; and
       (B) each decision by the Secretary of Defense or the head 
     of an agency within the Department of Defense to exercise the 
     authority under subsection (f)(5)(B) of section 26 of the 
     Office of Federal Procurement Policy Act to waive the 
     applicability of the cost accounting standards under such 
     section in the case of a contract or subcontract that is 
     expected to have a value of $15,000,000 or more.
       (c) Advance Notification of Congress.--(1) The Secretary of 
     Defense shall transmit to the congressional defense 
     committees an advance notification of--
       (A) any decision by the head of a procuring activity within 
     the Department of Defense to exercise the authority under 
     subsection (b)(1)(C) of section 2306a of title 10, United 
     States Code, to grant an exception to the requirements of 
     such section in the case of a contract, subcontract, or 
     contract or subcontract modification that is expected to have 
     a price of $75,000,000 or more; or
       (B) any decision by the Secretary of Defense or the head of 
     an agency within the Department of Defense to exercise the 
     authority under subsection (f)(5)(B) of section 26 of the 
     Office of Federal Procurement Policy Act to waive the 
     applicability of the cost accounting standards under such 
     section to a contract or subcontract that is expected to have 
     a value of $75,000,000 or more.
       (2) The notification under paragraph (1) regarding a 
     decision to grant an exception or waiver shall be transmitted 
     not later than 10 days before the exception or waiver is 
     granted.
       (d) Contents of Reports and Notifications.--A report 
     pursuant to subsection (b) and a notification pursuant to 
     subsection (c) shall include, for each grant of an exception 
     or waiver, the following matters:
       (1) A discussion of the justification for the grant of the 
     exception or waiver, including at a minimum--
       (A) in the case of an exception granted pursuant to section 
     2306a(b)(1)(B) of title 10, United States Code, an 
     explanation of the basis for the determination that the 
     products or services to be purchased are commercial items; 
     and
       (B) in the case of an exception granted pursuant to section 
     2306a(b)(1)(C) of such title, or a waiver granted pursuant to 
     section 26(f)(5)(B) of the Office of Federal Procurement 
     Policy Act, an explanation of the basis for the determination 
     that it would not have been possible to obtain the products 
     or services from the offeror without the grant of the 
     exception or waiver.
       (2) A description of the specific steps taken or to be 
     taken within the Department of Defense to ensure that the 
     price of each contract, subcontract, or modification covered 
     by the report or notification, as the case may be, is fair 
     and reasonable.
       (e) Effective Date.--The requirements of this section shall 
     apply to each exception or waiver that is granted under a 
     provision of law referred to in subsection (a) on or after 
     the date on which the guidance required by that subsection 
     (a) is issued.

     SEC. 813. EXTENSION OF REQUIREMENT FOR ANNUAL REPORT ON 
                   DEFENSE COMMERCIAL PRICING MANAGEMENT 
                   IMPROVEMENT.

       Section 803(c)(4) of the Strom Thurmond National Defense 
     Authorization Act for Fiscal Year 1999 (Public Law 105-261; 
     112 Stat. 2082; 10 U.S.C. 2306a note) is amended by striking 
     ``2000, 2001, and 2002,'' and inserting ``2000 through 
     2006,''.

     SEC. 814. INTERNAL CONTROLS ON THE USE OF PURCHASE CARDS.

       (a) Requirement for Enhanced Internal Controls.--Not later 
     than 120 days after the date of the enactment of this Act, 
     the Secretary of Defense shall take action to ensure that 
     appropriate internal controls for the use of purchase cards 
     issued by the Federal Government to Department of Defense 
     personnel are in place throughout the Department of Defense. 
     At a minimum, the internal controls shall include the 
     following:
       (1) A requirement that the receipt and acceptance, and the 
     documentation of the receipt and acceptance, of the property 
     or services purchased on a purchase card be verified by a 
     Department of Defense official who is independent of the 
     purchaser.
       (2) A requirement that the monthly purchase card statements 
     of purchases on a purchase card be reviewed and certified for 
     accuracy by an official of the Department of Defense who is 
     independent of the purchaser.
       (3) Specific policies limiting the number of purchase cards 
     issued, with the objective of significantly reducing the 
     number of cardholders.
       (4) Specific policies on credit limits authorized for 
     cardholders, with the objective of minimizing financial risk 
     to the Federal Government.
       (5) Specific criteria for identifying employees eligible to 
     be issued purchase cards, with the objective of ensuring the 
     integrity of cardholders.
       (6) Accounting procedures that ensure that purchase card 
     transactions are properly recorded in Department of Defense 
     accounting records.
       (7) Requirements for regular internal review of purchase 
     card statements to identify--
       (A) potentially fraudulent, improper, and abusive 
     purchases;
       (B) any patterns of improper cardholder transactions, such 
     as purchases of prohibited items; and
       (C) categories of purchases that should be made through 
     other mechanisms to better aggregate purchases and negotiate 
     lower prices.
       (b) Training.--The Secretary of Defense shall ensure that 
     all Department of Defense purchase cardholders are aware of 
     the enhanced internal controls instituted pursuant to 
     subsection (a).
       (c) Comptroller General Review.--Not later than March 1, 
     2003, the Comptroller General shall--
       (1) review the actions that have been taken within the 
     Department of Defense to comply with the requirements of this 
     section; and
       (2) submit a report on the actions reviewed to the 
     congressional defense committees.

     SEC. 815. ASSESSMENT REGARDING FEES PAID FOR ACQUISITIONS 
                   UNDER OTHER AGENCIES' CONTRACTS.

       (a) Requirement for Assessment and Report.--Not later than 
     March 1, 2003, the Secretary of Defense shall carry out an 
     assessment to determine the total amount paid by the 
     Department of Defense as fees for the acquisition of property 
     and services by the Department of Defense under contracts 
     between other departments and agencies of the Federal 
     Government and the sources of the property and services in 
     each of fiscal years 2000, 2001, and 2002, and submit a 
     report on the results of the assessment to Congress.
       (b) Content of Report.--The report shall include the 
     Secretary's views on what, if any, actions should be taken 
     within the Department of Defense to reduce the total

[[Page 12181]]

     amount of the annual expenditures on fees described in 
     subsection (a) and to use the amounts saved for other 
     authorized purposes.

     SEC. 816. PILOT PROGRAM FOR TRANSITION TO FOLLOW-ON CONTRACTS 
                   FOR CERTAIN PROTOTYPE PROJECTS.

       Section 845 of the National Defense Authorization Act for 
     Fiscal Year 1994 (10 U.S.C. 2371 note) is amended by--
       (1) redesignating subsections (e), (f), and (g) as 
     subsections (f), (g), and (h), respectively; and
       (2) inserting after subsection (d) the following new 
     subsection (e):
       ``(e) Pilot Program for Transition to Follow-on 
     Contracts.--(1) The Secretary of Defense is authorized to 
     carry out a pilot program for follow-on contracting for the 
     production of items or processes that are developed by 
     nontraditional defense contractors under prototype projects 
     carried out under this section.
       ``(2) Under the pilot program--
       ``(A) a qualifying contract for the procurement of such an 
     item or process, or a qualifying subcontract under a contract 
     for the procurement of such an item or process, may be 
     treated as a contract or subcontract, respectively, for the 
     procurement of commercial items, as defined in section 4(12) 
     of the Office of Federal Procurement Policy Act (41 U.S.C. 
     403(12)); and
       ``(B) the item or process may be treated as an item or 
     process, respectively, that is developed in part with Federal 
     funds and in part at private expense for the purposes of 
     section 2320 of title 10, United States Code.
       ``(3) For the purposes of the pilot program, a qualifying 
     contract or subcontract is a contract or subcontract, 
     respectively, with a nontraditional defense contractor that--
       ``(A) does not exceed $20,000,000; and
       ``(B) is either--
       ``(i) a firm, fixed-price contract or subcontract; or
       ``(ii) a fixed-price contract or subcontract with economic 
     price adjustment.
       ``(4) The authority to conduct a pilot program under this 
     subsection shall terminate on September 30, 2005. The 
     termination of the authority shall not affect the validity of 
     contracts or subcontracts that are awarded or modified during 
     the period of the pilot program, without regard to whether 
     the contracts or subcontracts are performed during the 
     period.''.

     SEC. 817. WAIVER AUTHORITY FOR DOMESTIC SOURCE OR CONTENT 
                   REQUIREMENTS.

       (a) Authority.--Subchapter V of chapter 148 of title 10, 
     United States Code, is amended by adding at the end the 
     following new section:

     ``Sec. 2539c. Waiver of domestic source or content 
       requirements

       ``(a) Authority.--Except as provided in subsection (f), the 
     Secretary of Defense may waive the application of any 
     domestic source requirement or domestic content requirement 
     referred to in subsection (b) and thereby authorize the 
     procurement of items that are grown, reprocessed, reused, 
     produced, or manufactured--
       ``(1) in a foreign country that has a reciprocal defense 
     procurement memorandum of understanding or agreement with the 
     United States;
       ``(2) in a foreign country that has a reciprocal defense 
     procurement memorandum of understanding or agreement with the 
     United States substantially from components and materials 
     grown, reprocessed, reused, produced, or manufactured in the 
     United States or any foreign country that has a reciprocal 
     defense procurement memorandum of understanding or agreement 
     with the United States; or
       ``(3) in the United States substantially from components 
     and materials grown, reprocessed, reused, produced, or 
     manufactured in the United States or any foreign country that 
     has a reciprocal defense procurement memorandum of 
     understanding or agreement with the United States.
       ``(b) Covered Requirements.--For purposes of this section:
       ``(1) A domestic source requirement is any requirement 
     under law that the Department of Defense satisfy its 
     requirements for an item by procuring an item that is grown, 
     reprocessed, reused, produced, or manufactured in the United 
     States or by a manufacturer that is a part of the national 
     technology and industrial base (as defined in section 2500(1) 
     of this title).
       ``(2) A domestic content requirement is any requirement 
     under law that the Department of Defense satisfy its 
     requirements for an item by procuring an item produced or 
     manufactured partly or wholly from components and materials 
     grown, reprocessed, reused, produced, or manufactured in the 
     United States.
       ``(c) Applicability.--The authority of the Secretary to 
     waive the application of a domestic source or content 
     requirements under subsection (a) applies to the procurement 
     of items for which the Secretary of Defense determines that--
       ``(1) application of the requirement would impede the 
     reciprocal procurement of defense items under a memorandum of 
     understanding providing for reciprocal procurement of defense 
     items between a foreign country and the United States in 
     accordance with section 2531 of this title; and
       ``(2) such country does not discriminate against defense 
     items produced in the United States to a greater degree than 
     the United States discriminates against defense items 
     produced in that country.
       ``(d) Limitation on Delegation.--The authority of the 
     Secretary to waive the application of domestic source or 
     content requirements under subsection (a) may not be 
     delegated to any officer or employee other than the Under 
     Secretary of Defense for Acquisition, Technology and 
     Logistics.
       ``(e) Consultations.--The Secretary may grant a waiver of 
     the application of a domestic source or content requirement 
     under subsection (a) only after consultation with the United 
     States Trade Representative, the Secretary of Commerce, and 
     the Secretary of State.
       ``(f) Laws Not Waivable.--The Secretary of Defense may not 
     exercise the authority under subsection (a) to waive any 
     domestic source or content requirement contained in any of 
     the following laws:
       ``(1) The Small Business Act (15 U.S.C. 631 et seq.).
       ``(2) The Javits-Wagner-O'Day Act (41 U.S.C. et seq.).
       ``(3) Sections 7309 and 7310 of this title.
       ``(4) Section 2533a of this title.
       ``(g) Relationship to Other Waiver Authority.--The 
     authority under subsection (a) to waive a domestic source 
     requirement or domestic content requirement is in addition to 
     any other authority to waive such requirement.
       ``(h) Construction With Respect to Later Enacted Laws.--
     This section may not be construed as being inapplicable to a 
     domestic source requirement or domestic content requirement 
     that is set forth in a law enacted after the enactment of 
     this section solely on the basis of the later enactment.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of such subchapter is amended by inserting after 
     the item relating to section 2539b the following new item:

``2539c. Waiver of domestic source or content requirements.''.

                       Subtitle C--Other Matters

     SEC. 821. EXTENSION OF THE APPLICABILITY OF CERTAIN PERSONNEL 
                   DEMONSTRATION PROJECT EXCEPTIONS TO AN 
                   ACQUISITION WORKFORCE DEMONSTRATION PROJECT.

       Section 4308(b)(3)(B) of the National Defense Authorization 
     Act for Fiscal Year 1996 (Public Law 104-106; 10 U.S.C. 1701 
     note) is amended to read as follows:
       ``(B) commences before November 18, 2007.''.

     SEC. 822. MORATORIUM ON REDUCTION OF THE DEFENSE ACQUISITION 
                   AND SUPPORT WORKFORCE.

       (a) Prohibition.--Notwithstanding any other provision of 
     law, the defense acquisition and support workforce may not be 
     reduced, during fiscal years 2003, 2004, and 2005, below the 
     level of that workforce as of September 30, 2002, determined 
     on the basis of full-time equivalent positions.
       (b) Waiver Authority.--The Secretary of Defense may waive 
     the prohibition in subsection (a) and reduce the level of the 
     defense acquisition and support workforce upon submitting to 
     Congress the Secretary's certification that the defense 
     acquisition and support workforce, at the level to which 
     reduced, will be able efficiently and effectively to perform 
     the workloads that are required of that workforce consistent 
     with the cost-effective management of the defense acquisition 
     system to obtain best value equipment and with ensuring 
     military readiness.
       (c) Defense Acquisition and Support Workforce Defined.--In 
     this section, the term ``defense acquisition and support 
     workforce'' means Armed Forces and civilian personnel who are 
     assigned to, or are employed in, an organization of the 
     Department of Defense that is--
       (1) an acquisition organization specified in Department of 
     Defense Instruction 5000.58, dated January 14, 1992; or
       (2) an organization not so specified that has acquisition 
     as its predominant mission, as determined by the Secretary of 
     Defense.

     SEC. 823. EXTENSION OF CONTRACT GOAL FOR SMALL DISADVANTAGED 
                   BUSINESSES AND CERTAIN INSTITUTIONS OF HIGHER 
                   EDUCATION.

       Section 2323(k) of title 10, United States Code, is amended 
     by striking ``2003'' both places it appears and inserting 
     ``2006''.

     SEC. 824. MENTOR-PROTEGE PROGRAM ELIGIBILITY FOR HUBZONE 
                   SMALL BUSINESS CONCERNS AND SMALL BUSINESS 
                   CONCERNS OWNED AND CONTROLLED BY SERVICE-
                   DISABLED VETERANS.

       Section 831(m)(2) of the National Defense Authorization Act 
     for Fiscal Year 1991 (10 U.S.C. 2302 note), is amended--
       (1) by striking ``or'' at the end of subparagraph (D);
       (2) by striking the period at the end of subparagraph (E) 
     and inserting a semicolon; and
       (3) by adding at the end the following new subparagraphs:
       ``(F) a qualified HUBZone small business concern, within 
     the meaning of section 3(p)(5) of the Small Business Act (15 
     U.S.C. 632(p)(5)); or
       ``(G) a small business concern owned and controlled by 
     service-disabled veterans, as defined in section 3(q)(2) of 
     the Small Business Act (15 U.S.C. 632(q)(2)).''.

[[Page 12182]]



     SEC. 825. REPEAL OF REQUIREMENTS FOR CERTAIN REVIEWS BY THE 
                   COMPTROLLER GENERAL.

       The following provisions of the National Defense 
     Authorization Act for Fiscal Year 1996 (Public Law 104-106) 
     are repealed:
       (1) Section 912(d) (110 Stat. 410; 10 U.S.C. 2216 note), 
     relating to Comptroller General reviews of the administration 
     of the Defense Modernization Account.
       (2) Section 5312(e) (110 Stat. 695; 40 U.S.C. 1492), 
     relating to Comptroller General monitoring of a pilot program 
     for solutions-based contracting for acquisition of 
     information technology.
       (3) Section 5401(c)(3) (110 Stat. 697; 40 U.S.C. 1501), 
     relating to a Comptroller General review and report regarding 
     a pilot program to test streamlined procedures for the 
     procurement of information technology products and services 
     available for ordering through multiple award schedules.

     SEC. 826. MULTIYEAR PROCUREMENT AUTHORITY FOR PURCHASE OF 
                   DINITROGEN TETROXIDE, HYDRAZINE, AND HYDRAZINE-
                   RELATED PRODUCTS.

       (a) In General.--Chapter 141 of title 10, United States 
     Code, is amended by inserting after section 2410n the 
     following new section:

     ``Sec. 2410o. Multiyear procurement authority: purchase of 
       dinitrogen tetroxide, hydrazine, and hydrazine-related 
       products

       ``(a) Ten-Year Contract Period.--The Secretary of Defense 
     may enter into a contract for a period of up to 10 years for 
     the purchase of dinitrogen tetroxide, hydrazine, and 
     hydrazine-related products for the support of a United States 
     national security program or a United States space program.
       ``(b) Extensions.--A contract entered into for more than 
     one year under the authority of subsection (a) may be 
     extended for a total of not more than 10 years pursuant to 
     any option or options set forth in the contract.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of chapter 141 is amended by adding at the end the 
     following item:

``2410o. Multiyear procurement authority: purchase of dinitrogen 
              tetroxide, hydrazine, and hydrazine-related products.''.

     SEC. 827. MULTIYEAR PROCUREMENT AUTHORITY FOR ENVIRONMENTAL 
                   SERVICES FOR MILITARY INSTALLATIONS.

       (a) Authority.--Subsection (b) of section 2306c of title 
     10, United States Code, is amended by adding at the end the 
     following new paragraph:
       ``(5) Environmental remediation services for--
       ``(A) an active military installation;
       ``(B) a military installation being closed or realigned 
     under a base closure law; or
       ``(C) a site formerly used by the Department of Defense.''.
       (b) Definitions.--Such section is further amended by adding 
     at the end the following new subsection:
       ``(g) Additional Definitions.--In this section:
       ``(1) The term `base closure law' has the meaning given 
     such term in section 2667(h)(2) of this title.
       ``(2) The term `military installation' has the meaning 
     given such term in section 2801(c)(2) of this title.''.

     SEC. 828. INCREASED MAXIMUM AMOUNT OF ASSISTANCE FOR TRIBAL 
                   ORGANIZATIONS OR ECONOMIC ENTERPRISES CARRYING 
                   OUT PROCUREMENT TECHNICAL ASSISTANCE PROGRAMS 
                   IN TWO OR MORE SERVICE AREAS.

       Section 2414(a)(4) of title 10, United States Code, is 
     amended by striking ``$300,000'' and inserting ``$600,000''.

     SEC. 829. AUTHORITY FOR NONPROFIT ORGANIZATIONS TO SELF-
                   CERTIFY ELIGIBILITY FOR TREATMENT AS QUALIFIED 
                   ORGANIZATIONS EMPLOYING SEVERELY DISABLED UNDER 
                   MENTOR-PROTEGE PROGRAM.

       Section 831 of the National Defense Authorization Act for 
     Fiscal Year 1991 (10 U.S.C. 2302 note) is amended by adding 
     at the end the following new subsection:
       ``(n) Self-Certification of Nonprofit Organizations as 
     Qualified Organizations Employing the Severely Disabled.--(1) 
     The Secretary of Defense may, in accordance with such 
     requirements as the Secretary may establish, permit a 
     business entity operating on a non-profit basis to self-
     certify its eligibility for treatment as a qualified 
     organization employing the severely disabled under subsection 
     (m)(2)(D).
       ``(2) The Secretary shall treat any entity described in 
     paragraph (1) that submits a self-certification under that 
     paragraph as a qualified organization employing the severely 
     disabled until the Secretary receives evidence, if any, that 
     such entity is not described by paragraph (1) or does not 
     merit treatment as a qualified organization employing the 
     severely disabled in accordance with applicable provisions of 
     subsection (m).
       ``(3) Paragraphs (1) and (2) shall cease to be effective on 
     the effective date of regulations prescribed by the Small 
     Business Administration under this section setting forth a 
     process for the certification of business entities as 
     eligible for treatment as a qualified organization employing 
     the severely disabled under subsection (m)(2)(D).''.

     SEC. 830. REPORT ON EFFECTS OF ARMY CONTRACTING AGENCY.

       (a) In general.--The Secretary of the Army shall submit a 
     report on the effects of the establishment of an Army 
     Contracting Agency on small business participation in Army 
     procurements during the first year of operation of such an 
     agency to--
       (1) the Committee on Armed Services of the House of 
     Representatives;
       (2) the Committee on Armed Services of the Senate;
       (3) the Committee on Small Business of the House of 
     Representatives; and
       (4) the Committee on Small Business and Entrepreneurship of 
     the Senate.
       (b) Content.--The report required under subsection (a) 
     shall include, in detail--
       (1) the justification for the establishment of an Army 
     Contracting Agency;
       (2) the impact of the creation of an Army Contracting 
     Agency on--
       (A) Army compliance with--
       (i) Department of Defense Directive 4205.1;
       (ii) section 15(g) of the Small Business Act (15 U.S.C. 
     644(g)); and
       (iii) section 15(k) of the Small Business Act (15 U.S.C. 
     644(k));
       (B) small business participation in Army procurement of 
     products and services for affected Army installations, 
     including--
       (i) the impact on small businesses located near Army 
     installations, including--

       (I) the increase or decrease in the total value of Army 
     prime contracting with local small businesses; and
       (II) the opportunities for small business owners to meet 
     and interact with Army procurement personnel; and

       (ii) any change or projected change in the use of 
     consolidated contracts and bundled contracts; and
       (3) a description of the Army's plan to address any 
     negative impact on small business participation in Army 
     procurement, to the extent such impact is identified in the 
     report.
       (c) Time for Submission.--The report under this section 
     shall be due 15 months after the date of the establishment of 
     the Army Contracting Agency.

      TITLE IX--DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT

     SEC. 901. TIME FOR SUBMITTAL OF REPORT ON QUADRENNIAL DEFENSE 
                   REVIEW.

       Section 118(d) of title 10, United States Code, is amended 
     by striking ``not later than September 30 of the year in 
     which the review is conducted'' in the second sentence and 
     inserting ``in the year following the year in which the 
     review is conducted, but not later than the date on which the 
     President submits the budget for the next fiscal year to 
     Congress under section 1105(a) of title 31''.

     SEC. 902. INCREASED NUMBER OF DEPUTY COMMANDANTS AUTHORIZED 
                   FOR THE MARINE CORPS.

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

     SEC. 903. BASE OPERATING SUPPORT FOR FISHER HOUSES.

       (a) Expansion of Requirement To Include Army and Air 
     Force.--Section 2493(f) of title 10, United States Code, is 
     amended to read as follows:
       ``(f) Base Operating Support.--The Secretary of the 
     military department concerned shall provide base operating 
     support for Fisher Houses associated with health care 
     facilities of that military department.''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall take effect on October 1, 2002.

     SEC. 904. PREVENTION AND MITIGATION OF CORROSION.

       (a) Establishment.--Not later than 120 days after the date 
     of the enactment of this Act, the Secretary of Defense shall 
     designate an officer or employee of the Department of Defense 
     as the senior official responsible (after the Secretary of 
     Defense and the Under Secretary of Defense for Acquisition, 
     Technology, and Logistics) for the prevention and mitigation 
     of corrosion of the military equipment and infrastructure of 
     the Department. The designated official shall report directly 
     to the Under Secretary of Defense for Acquisition, 
     Technology, and Logistics.
       (b) Duties.--The official designated under subsection (a) 
     shall direct and coordinate initiatives throughout the 
     Department of Defense to prevent and mitigate corrosion of 
     the military equipment and infrastructure of the Department, 
     including efforts to facilitate the prevention and mitigation 
     of corrosion through--
       (1) development and recommendation of policy guidance on 
     the prevention and mitigation of corrosion which the 
     Secretary of Defense shall issue;
       (2) review of the annual budget proposed for the prevention 
     and mitigation of corrosion by the Secretary of each military 
     department and submittal of recommendations regarding the 
     proposed budget to the Secretary of Defense;
       (3) direction and coordination of the efforts within the 
     Department of Defense to prevent or mitigate corrosion 
     during--
       (A) the design, acquisition, and maintenance of military 
     equipment; and
       (B) the design, construction, and maintenance of 
     infrastructure; and
       (4) monitoring of acquisition practices--
       (A) to ensure that the use of corrosion prevention 
     technologies and the application of corrosion prevention 
     treatments are fully considered during research and 
     development in the acquisition process; and

[[Page 12183]]

       (B) to ensure that, to the extent determined appropriate in 
     each acquisition program, such technologies and treatments 
     are incorporated into the program, particularly during the 
     engineering and design phases of the acquisition process.
       (c) Interim Report.--When the President submits the budget 
     for fiscal year 2004 to Congress pursuant to section 1105(a) 
     of title 31, United States Code, the Secretary of Defense 
     shall submit to Congress a report regarding the actions taken 
     under this section. The report shall include the following 
     matters:
       (1) The organizational structure for the personnel carrying 
     out the responsibilities of the official designated under 
     subsection (a) with respect to the prevention and mitigation 
     of corrosion.
       (2) An outline and milestones for developing a long-term 
     corrosion prevention and mitigation strategy.
       (d) Long-Term Strategy.--(1) Not later than one year after 
     the date of the enactment of this Act, the Secretary of 
     Defense shall submit to Congress a long-term strategy to 
     reduce corrosion and the effects of corrosion on the military 
     equipment and infrastructure of the Department of Defense.
       (2) The strategy shall provide for the following actions:
       (A) Expanding the emphasis on corrosion prevention and 
     mitigation to include coverage of infrastructure.
       (B) Applying uniformly throughout the Department of Defense 
     requirements and criteria for the testing and certification 
     of new technologies for the prevention of corrosion.
       (C) Implementing programs, including programs supporting 
     databases, to foster the collection and analysis of--
       (i) data useful for determining the extent of the effects 
     of corrosion on the maintenance and readiness of military 
     equipment and infrastructure; and
       (ii) data on the costs associated with the prevention and 
     mitigation of corrosion.
       (D) Implementing programs, including supporting databases, 
     to ensure that a focused and coordinated approach is taken 
     throughout the Department of Defense to collect, review, 
     validate, and distribute information on proven methods and 
     products that are relevant to the prevention of corrosion of 
     military equipment and infrastructure.
       (E) Implementing a program to identify specific funding in 
     future budgets for the total life cycle costs of the 
     prevention and mitigation of corrosion.
       (F) Establishing a coordinated research and development 
     program for the prevention and mitigation of corrosion for 
     new and existing military equipment and infrastructure that 
     includes a plan to transition new corrosion prevention 
     technologies into operational systems.
       (3) The strategy shall also include, for the actions 
     provided for pursuant to paragraph (2), the following:
       (A) Policy guidance.
       (B) Performance measures and milestones.
       (C) An assessment of the necessary program management 
     resources and necessary financial resources.
       (e) GAO Reviews.--The Comptroller General shall monitor the 
     implementation of the long-term strategy required under 
     subsection (d) and, not later than 18 months after the date 
     of the enactment of this Act, submit to Congress an 
     assessment of the extent to which the strategy has been 
     implemented.
       (f) Definitions.--In this section:
       (1) The term ``corrosion'' means the deterioration of a 
     substance or its properties due to a reaction with its 
     environment.
       (2) The term ``military equipment'' includes all air, land, 
     and sea weapon systems, weapon platforms, vehicles, and 
     munitions of the Department of Defense, and the components of 
     such items.
       (3) The term ``infrastructure'' includes all buildings, 
     structures, airfields, port facilities, surface and 
     subterranean utility systems, heating and cooling systems, 
     fuel tanks, pavements, and bridges.
       (g) Termination.--This section shall cease to be effective 
     on the date that is five years after the date of the 
     enactment of this Act.

     SEC. 905. WESTERN HEMISPHERE INSTITUTE FOR SECURITY 
                   COOPERATION.

       (a) Authority To Accept Foreign Gifts and Donations.--
     Section 2166 of title 10, United States Code, is amended--
       (1) by redesignating subsections (f), (g), and (h), as 
     subsections (g), (h), and (i), respectively; and
       (2) by inserting after subsection (e) the following new 
     subsection (f):
       ``(f) Authority To Accept Foreign Gifts and Donations.--(1) 
     The Secretary of Defense may, on behalf of the Institute, 
     accept foreign gifts or donations in order to defray the 
     costs of, or enhance the operation of, the Institute.
       ``(2) Funds received by the Secretary under paragraph (1) 
     shall be credited to appropriations available for the 
     Department of Defense for the Institute. Funds so credited 
     shall be merged with the appropriations to which credited and 
     shall be available for the Institute for the same purposes 
     and same period as the appropriations with which merged.
       ``(3) The Secretary of Defense shall notify Congress if the 
     total amount of money accepted under paragraph (1) exceeds 
     $1,000,000 in any fiscal year. Any such notice shall list 
     each of the contributors of such money and the amount of each 
     contribution in such fiscal year.
       ``(4) For the purposes of this subsection, a foreign gift 
     or donation is a gift or donation of funds, materials 
     (including research materials), property, or services 
     (including lecture services and faculty services) from a 
     foreign government, a foundation or other charitable 
     organization in a foreign country, or an individual in a 
     foreign country.''.
       (b) Content of Annual Report to Congress.--Subsection (i) 
     of such section, as redesignated by subsection (a)(1), is 
     amended by inserting after the first sentence the following: 
     ``The report shall include a copy of the latest report of the 
     Board of Visitors received by the Secretary under subsection 
     (e)(5), together with any comments of the Secretary on the 
     Board's report.''.

     SEC. 906. VETERINARY CORPS OF THE ARMY.

       (a) Composition and Administration.--(1) Chapter 307 of 
     title 10, United States Code, is amended by inserting after 
     section 3070 the following new section 3071:

     ``Sec. 3071. Veterinary Corps: composition; Chief and 
       assistant chief; appointment; grade

       ``(a) Composition.--The Veterinary Corps consists of the 
     Chief and assistant chief of that corps and other officers in 
     grades prescribed by the Secretary of the Army.
       ``(b) Chief.--The Secretary of the Army shall appoint the 
     Chief from the officers of the Regular Army in that corps 
     whose regular grade is above lieutenant colonel and who are 
     recommended by the Surgeon General. An appointee who holds a 
     lower regular grade may be appointed in the regular grade of 
     brigadier general. The Chief serves during the pleasure of 
     the Secretary, but not for more than four years, and may not 
     be reappointed to the same position.
       ``(c) Assistant Chief.--The Surgeon General shall appoint 
     the assistant chief from the officers of the Regular Army in 
     that corps whose regular grade is above lieutenant colonel. 
     The assistant chief serves during the pleasure of the Surgeon 
     General, but not for more than four years and may not be 
     reappointed to the same position.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by inserting after the item relating to section 
     3070 the following new item:

``3071. Veterinary Corps: composition; Chief and assistant chief; 
              appointment; grade.''.

       (b) Effective Date.--Section 3071 of title 10, United 
     States Code, as added by subsection (a), shall take effect on 
     October 1, 2002.

     SEC. 907. UNDER SECRETARY OF DEFENSE FOR INTELLIGENCE.

       (a) Establishment of Position.--Chapter 4 of title 10, 
     United States Code, is amended--
       (1) by transferring section 137 within such chapter to 
     appear following section 138;
       (2) by redesignating sections 137 and 139 as sections 139 
     and 139a, respectively; and
       (3) by inserting after section 136a the following new 
     section 137:

     ``Sec. 137. Under Secretary of Defense for Intelligence

       ``(a) There is an Under Secretary of Defense for 
     Intelligence, appointed from civilian life by the President, 
     by and with the advice and consent of the Senate.
       ``(b) Subject to the authority, direction, and control of 
     the Secretary of Defense, the Under Secretary of Defense for 
     Intelligence shall perform such duties and exercise such 
     powers as the Secretary of Defense may prescribe in the area 
     of intelligence.
       ``(c) The Under Secretary of Defense for Personnel and 
     Readiness takes precedence in the Department of Defense after 
     the Under Secretary of Defense for Personnel and 
     Readiness.''.
       (b) Conforming Amendments.--(1) Section 131 of such title 
     is amended--
       (A) by striking paragraphs (2), (3), (4), and (5), and 
     inserting the following:
       ``(2) The Under Secretaries of Defense, as follows:
       ``(A) The Under Secretary of Defense for Acquisition, 
     Technology, and Logistics.
       ``(B) The Under Secretary of Defense for Policy.
       ``(C) The Under Secretary of Defense (Comptroller).
       ``(D) The Under Secretary of Defense for Personnel and 
     Readiness.
       ``(E) The Under Secretary of Defense for Intelligence.''; 
     and
       (B) by redesignating paragraphs (6), (7), (8), (9), (10), 
     and (11) as paragraphs (3), (4), (5), (6), (7), and (8), 
     respectively.
       (2) The table of sections at the beginning of chapter 4 of 
     such title is amended--
       (A) by striking the item relating to section 137 and 
     inserting the following:

``137. Under Secretary of Defense for Intelligence.'';
     and
       (B) by striking the item relating to section 139 and 
     inserting the following:

``139. Director of Research and Engineering.
``139a. Director of Operational Test and Evaluation.''.

       (c) Executive Level III.--Section 5314 of title 5, United 
     States Code, is amended by inserting after ``Under Secretary 
     of Defense for Personnel and Readiness.'' the following:

[[Page 12184]]

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

                      TITLE X--GENERAL PROVISIONS

                     Subtitle A--Financial Matters

     SEC. 1001. TRANSFER AUTHORITY.

       (a) Authority To Transfer Authorizations.--(1) Upon 
     determination by the Secretary of Defense that such action is 
     necessary in the national interest, the Secretary may 
     transfer amounts of authorizations made available to the 
     Department of Defense in this division for fiscal year 2003 
     between any such authorizations for that fiscal year (or any 
     subdivisions thereof). Amounts of authorizations so 
     transferred shall be merged with and be available for the 
     same purposes as the authorization to which transferred.
       (2) The total amount of authorizations that the Secretary 
     may transfer under the authority of this section may not 
     exceed $2,500,000,000.
       (b) Limitations.--The authority provided by this section to 
     transfer authorizations--
       (1) may only be used to provide authority for items that 
     have a higher priority than the items from which authority is 
     transferred; and
       (2) may not be used to provide authority for an item that 
     has been denied authorization by Congress.
       (c) Effect on Authorization Amounts.--A transfer made from 
     one account to another under the authority of this section 
     shall be deemed to increase the amount authorized for the 
     account to which the amount is transferred by an amount equal 
     to the amount transferred.
       (d) Notice to Congress.--The Secretary shall promptly 
     notify Congress of each transfer made under subsection (a).

     SEC. 1002. REALLOCATION OF AUTHORIZATIONS OF APPROPRIATIONS 
                   FROM BALLISTIC MISSILE DEFENSE TO SHIPBUILDING.

       (a) Amount.--Notwithstanding any other provision of this 
     Act, the total amount authorized to be appropriated under 
     section 201(4) is hereby reduced by $690,000,000, and the 
     amount authorized to be appropriated under section 102(a)(3) 
     is hereby increased by $690,000,000.
       (b) Source of Reduction.--The total amount of the reduction 
     in the amount authorized to be appropriated under section 
     201(4) shall be derived from the amount provided under that 
     section for ballistic missile defense for research, 
     development, test, and evaluation.
       (c) Allocation of Increase.--Of the additional amount 
     authorized to be appropriated under section 102(a)(3) 
     pursuant to subsection (a)--
       (1) $415,000,000 shall be available for advance procurement 
     of a Virginia class submarine;
       (2) $125,000,000 shall be available for advance procurement 
     of a DDG-51 class destroyer; and
       (3) $150,000,000 shall be available for advance procurement 
     of an LPD-17 class amphibious transport dock.

     SEC. 1003. AUTHORIZATION OF APPROPRIATIONS FOR CONTINUED 
                   OPERATIONS FOR THE WAR ON TERRORISM.

       (a) Amount.--(1) In addition to the amounts authorized to 
     be appropriated under divisions A and B, funds are hereby 
     authorized to be appropriated for fiscal year 2003 (subject 
     to subsection (b)) in the total amount of $10,000,000,000 for 
     the conduct of operations in continuation of the war on 
     terrorism in accordance with the Authorization for Use of 
     Military Force (Public Law 107-40; 50 U.S.C. 1541 note).
       (2) The amount authorized to be appropriated under 
     paragraph (1) shall be available for increased operating 
     costs, transportation costs, costs of humanitarian efforts, 
     costs of special pays, costs of enhanced intelligence 
     efforts, increased personnel costs for members of the reserve 
     components ordered to active duty under a provision of law 
     referred to in section 101(a)(13)(B) of title 10, United 
     States Code, and other costs related to operations referred 
     to in paragraph (1).
       (b) Authorization Contingent on Budget Request.--The 
     authorization of appropriations in subsection (a) shall be 
     effective only to the extent of the amount provided in a 
     budget request for the appropriation of funds for purposes 
     set forth in subsection (a) that is submitted by the 
     President to Congress after the date of the enactment of this 
     Act and--
       (1) includes a designation of the requested amount as being 
     essential to respond to or protect against acts or threatened 
     acts of terrorism; and
       (2) specifies a proposed allocation and plan for the use of 
     the appropriation for purposes set forth in subsection (a).

     SEC. 1004. AUTHORIZATION OF EMERGENCY SUPPLEMENTAL 
                   APPROPRIATIONS FOR FISCAL YEAR 2002.

       Amounts authorized to be appropriated to the Department of 
     Defense for fiscal year 2002 in the National Defense 
     Authorization Act for Fiscal Year 2002 (Public Law 107-107) 
     are hereby adjusted, with respect to any such authorized 
     amount, by the amount by which appropriations pursuant to 
     such authorization were increased (by a supplemental 
     appropriation) or decreased (by a rescission), or both, in 
     any law making supplemental appropriations for fiscal year 
     2002 that is enacted during the 107th Congress, second 
     session.

     SEC. 1005. UNITED STATES CONTRIBUTION TO NATO COMMON-FUNDED 
                   BUDGETS IN FISCAL YEAR 2003.

       (a) Fiscal Year 2003 Limitation.--The total amount 
     contributed by the Secretary of Defense in fiscal year 2003 
     for the common-funded budgets of NATO may be any amount up 
     to, but not in excess of, the amount specified in subsection 
     (b) (rather than the maximum amount that would otherwise be 
     applicable to those contributions under the fiscal year 1998 
     baseline limitation).
       (b) Total Amount.--The amount of the limitation applicable 
     under subsection (a) is the sum of the following:
       (1) The amounts of unexpended balances, as of the end of 
     fiscal year 2002, of funds appropriated for fiscal years 
     before fiscal year 2003 for payments for those budgets.
       (2) The amount specified in subsection (c)(1).
       (3) The amount specified in subsection (c)(2).
       (4) The total amount of the contributions authorized to be 
     made under section 2501.
       (c) Authorized Amounts.--Amounts authorized to be 
     appropriated by titles II and III of this Act are available 
     for contributions for the common-funded budgets of NATO as 
     follows:
       (1) Of the amount provided in section 201(1), $750,000 for 
     the Civil Budget.
       (2) Of the amount provided in section 301(a)(1), 
     $205,623,000 for the Military Budget.
       (d) Definitions.--For purposes of this section:
       (1) Common-funded budgets of nato.--The term ``common-
     funded budgets of NATO'' means the Military Budget, the 
     Security Investment Program, and the Civil Budget of the 
     North Atlantic Treaty Organization (and any successor or 
     additional account or program of NATO).
       (2) Fiscal year 1998 baseline limitation.--The term 
     ``fiscal year 1998 baseline limitation'' means the maximum 
     annual amount of Department of Defense contributions for 
     common-funded budgets of NATO that is set forth as the annual 
     limitation in section 3(2)(C)(ii) of the resolution of the 
     Senate giving the advice and consent of the Senate to the 
     ratification of the Protocols to the North Atlantic Treaty of 
     1949 on the Accession of Poland, Hungary, and the Czech 
     Republic (as defined in section 4(7) of that resolution), 
     approved by the Senate on April 30, 1998.

     SEC. 1006. DEVELOPMENT AND IMPLEMENTATION OF FINANCIAL 
                   MANAGEMENT ENTERPRISE ARCHITECTURE.

       (a) Requirement for Enterprise Architecture and Transition 
     Plan.--Not later than March 15, 2003, the Secretary of 
     Defense shall develop a proposed financial management 
     enterprise architecture for all budgetary, accounting, 
     finance, and data feeder systems of the Department of 
     Defense, together with a transition plan for implementing the 
     proposed enterprise architecture.
       (b) Composition of Architecture.--The proposed financial 
     management enterprise architecture developed under subsection 
     (a) shall describe a system that, at a minimum--
       (1) includes data standards and system interface 
     requirements that are to apply uniformly throughout the 
     Department of Defense;
       (2) enables the Department of Defense--
       (A) to comply with Federal accounting, financial 
     management, and reporting requirements;
       (B) to routinely produce timely, accurate, and useful 
     financial information for management purposes;
       (C) to integrate budget, accounting, and program 
     information and systems; and
       (D) to provide for the systematic measurement of 
     performance, including the ability to produce timely, 
     relevant, and reliable cost information.
       (c) Composition of Transition Plan.--The transition plan 
     developed under subsection (a) shall contain specific time-
     phased milestones for modifying or eliminating existing 
     systems and for acquiring new systems necessary to implement 
     the proposed enterprise architecture.
       (d) Expenditures for Implementation.--The Secretary of 
     Defense may not obligate more than $1,000,000 for a defense 
     financial system improvement on or after the enterprise 
     architecture approval date unless the Financial Management 
     Modernization Executive Committee determines that the defense 
     financial system improvement is consistent with the proposed 
     enterprise architecture and transition plan.
       (e) Expenditures Pending Architecture Approval.--The 
     Secretary of Defense may not obligate more than $1,000,000 
     for a defense financial system improvement during the 
     enterprise architecture pre-approval period unless the 
     Financial Management Modernization Executive Committee 
     determines that the defense financial system improvement is 
     necessary--
       (1) to achieve a critical national security capability or 
     address a critical requirement in an area such as safety or 
     security; or
       (2) to prevent a significant adverse effect (in terms of a 
     technical matter, cost, or schedule) on a project that is 
     needed to achieve an essential capability, taking into

[[Page 12185]]

     consideration in the determination the alternative solutions 
     for preventing the adverse effect.
       (f) Comptroller General Review.--Not later than March 1 of 
     each of 2003, 2004, and 2005, the Comptroller General shall 
     submit to the congressional defense committees a report on 
     defense financial management system improvements that have 
     been undertaken during the previous year. The report shall 
     include the Comptroller General's assessment of the extent to 
     which the improvements comply with the requirements of this 
     section.
       (g) Definitions.--In this section:
       (1) The term ``defense financial system improvement''--
       (A) means the acquisition of a new budgetary, accounting, 
     finance, or data feeder system for the Department of Defense, 
     or a modification of an existing budgetary, accounting, 
     finance, or data feeder system of the Department of Defense; 
     and
       (B) does not include routine maintenance and operation of 
     any such system.
       (2) The term ``enterprise architecture approval date'' 
     means the date on which the Secretary of Defense approves a 
     proposed financial management enterprise architecture and a 
     transition plan that satisfy the requirements of this 
     section.
       (3) The term ``enterprise architecture pre-approval 
     period'' means the period beginning on the date of the 
     enactment of this Act and ending on the day before the 
     enterprise architecture approval date.
       (4) The term ``feeder system'' means a data feeder system 
     within the meaning of section 2222(c)(2) of title 10, United 
     States Code.
       (5) The term ``Financial Management Modernization Executive 
     Committee'' means the Financial Management Modernization 
     Executive Committee established pursuant to section 185 of 
     title 10, United States Code.

     SEC. 1007. DEPARTMENTAL ACCOUNTABLE OFFICIALS IN THE 
                   DEPARTMENT OF DEFENSE.

       (a) Designation and Accountability.--Chapter 165 of title 
     10, United States Code, is amended by inserting after section 
     2773 the following new section:

     ``Sec. 2773a. Departmental accountable officials

       ``(a) Designation.--The Secretary of Defense may designate, 
     in writing, as a departmental accountable official any 
     employee of the Department of Defense or any member of the 
     armed forces who--
       ``(1) has a duty to provide a certifying official of the 
     Department of Defense with information, data, or services 
     directly relied upon by the certifying official in the 
     certification of vouchers for payment; and
       ``(1) is not otherwise accountable under subtitle III of 
     title 31 or any other provision of law for payments made on 
     the basis of the vouchers.
       ``(b) Pecuniary Liability.--(1) The Secretary of Defense 
     may, in a designation of a departmental accountable official 
     under subsection (a), subject that official to pecuniary 
     liability, in the same manner and to the same extent as an 
     official accountable under subtitle III of title 31, for an 
     illegal, improper, or incorrect payment made pursuant to a 
     voucher certified by a certifying official of the Department 
     of Defense on the basis of information, data, or services 
     that--
       ``(A) the departmental accountable official provides to the 
     certifying official in the performance of a duty described in 
     subsection (a)(1); and
       ``(B) the certifying official directly relies upon in 
     certifying the voucher.
       ``(2) Any pecuniary liability imposed on a departmental 
     accountable official under this subsection for a loss to the 
     United States resulting from an illegal, improper, or 
     incorrect payment shall be joint and several with that of any 
     other employee or employees of the United States or member or 
     members of the uniformed services who are pecuniarily liable 
     for the loss.
       ``(c) Relief From Pecuniary Liability.--The Secretary of 
     Defense shall relieve a departmental accountable official 
     from pecuniary liability imposed under subsection (b) in the 
     case of a payment if the Secretary determines that the 
     payment was not a result of fault or negligence on the part 
     of the departmental accountable official.
       ``(d) Certifying Official Defined.--In this section, the 
     term `certifying official' means an employee who has the 
     responsibilities specified in section 3528(a) of title 31.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of such chapter is amended by inserting after the 
     item relating to section 2773 the following new item:

``2773a. Departmental accountable officials.''.

     SEC. 1008. DEPARTMENT-WIDE PROCEDURES FOR ESTABLISHING AND 
                   LIQUIDATING PERSONAL PECUNIARY LIABILITY.

       (a) Report of Survey Procedures.--(1) Chapter 165 of title 
     10, United States Code, is amended by inserting after section 
     2786 the following new section:

     ``Sec. 2787. Reports of survey

       ``(a) Regulations.--Under regulations prescribed pursuant 
     to subsection (c), any officer of the armed forces or any 
     civilian employee of the Department of Defense designated in 
     accordance with the regulations may act upon reports of 
     survey and vouchers pertaining to the loss, spoilage, 
     unserviceability, unsuitability, or destruction of, or damage 
     to, property of the United States under the control of the 
     Department of Defense.
       ``(b) Finality of Action.--(1) Action taken under 
     subsection (a) is final except as provided in paragraph (2).
       ``(2) An action holding a person pecuniarily liable for 
     loss, spoilage, destruction, or damage is not final until 
     approved by a person designated to do so by the Secretary of 
     a military department, commander of a combatant command, or 
     Director of a Defense Agency, as the case may be, who has 
     jurisdiction of the person held pecuniarily liable. The 
     person designated to provide final approval shall be an 
     officer of an armed force, or a civilian employee, under the 
     jurisdiction of the official making the designation.
       ``(c) Regulations.--The Secretary of Defense shall 
     prescribe regulations to carry out this section.''.
       (2) The table of sections at the beginning of chapter 165 
     of such title is amended by inserting after the item relating 
     to section 2786 the following new item:

``2787. Reports of survey.''.
       (b) Damage or Repair of Arms and Equipment.--Section 
     1007(e) of title 37, United States Code, is amended by 
     striking ``Army or the Air Force'' and inserting ``Army, 
     Navy, Air Force, or Marine Corps''.
       (c) Repeal of Superseded Provisions.--(1) Sections 4835 and 
     9835 of title 10, United States Code, are repealed.
       (2) The tables of sections at the beginning of chapters 453 
     and 953 of such title are amended by striking the items 
     relating to sections 4835 and 9835, respectively.

     SEC. 1009. TRAVEL CARD PROGRAM INTEGRITY.

       (a) Authority.--Section 2784 of title 10, United States 
     Code, is amended by adding at the end the following new 
     subsections:
       ``(d) Disbursement of Allowances Directly to Creditors.--
     (1) The Secretary of Defense may require that any part of the 
     travel or transportation allowances of an employee of the 
     Department of Defense or a member of the armed forces be 
     disbursed directly to the issuer of a Defense travel card if 
     the amount is disbursed to the issuer in payment of amounts 
     of expenses of official travel that are charged by the 
     employee or member on the Defense travel card.
       ``(2) For the purposes of this subsection, the travel and 
     transportation allowances referred to in paragraph (1) are 
     amounts to which an employee of the Department of Defense is 
     entitled under section 5702 of title 5 and or a member of the 
     armed forces is entitled section 404 of title 37.
       ``(e) Offsets for Delinquent Travel Card Charges.--(1) The 
     Secretary of Defense may require that there be deducted and 
     withheld from any pay payable to an employee of the 
     Department of Defense or a member of the armed forces any 
     amount that is owed by the employee or member to a creditor 
     by reason of one or more charges of expenses of official 
     travel of the employee or member on a Defense travel card 
     issued by the creditor if the employee or member--
       ``(A) is delinquent in the payment of such amount under the 
     terms of the contract under which the card is issued; and
       ``(B) does not dispute the amount of the delinquency.
       ``(2) The amount deducted and withheld from pay under 
     paragraph (1) with respect to a debt owed a creditor as 
     described in that paragraph shall be disbursed to the 
     creditor to reduce the amount of the debt.
       ``(3) The amount of pay deducted and withheld from the pay 
     owed to an employee or member with respect to a pay period 
     under paragraph (1) may not exceed 15 percent of the 
     disposable pay of the employee or member for that pay period, 
     except that a higher amount may be deducted and withheld with 
     the written consent of the employee or member.
       ``(4) The Secretary of Defense shall prescribe procedures 
     for deducting and withholding amounts from pay under this 
     subsection. The procedures shall be substantially equivalent 
     to the procedures under section 3716 of title 31.
       ``(f) Under Secretary of Defense (Comptroller).--The 
     Secretary of Defense shall act through the Under Secretary of 
     Defense (Comptroller) in carrying out this section.
       ``(g) Definitions.--In this section:
       ``(1) The term `Defense travel card' means a charge or 
     credit card that--
       ``(A) is issued to an employee of the Department of Defense 
     or a member of the armed forces under a contract entered into 
     by the Department of Defense and the issuer of the card; and
       ``(B) is to be used for charging expenses incurred by the 
     employee or member in connection with official travel.
       ``(2) The term `disposable pay', with respect to a pay 
     period, means the amount equal to the excess of the amount of 
     basic pay payable for the pay period over the total of the 
     amounts deducted and withheld from such pay.''.
       (b) Conforming Amendment.--Subsection (a) of such section 
     is amended by striking ``, acting through the Under Secretary 
     of Defense (Comptroller),''.

[[Page 12186]]



     SEC. 1010. CLEARANCE OF CERTAIN TRANSACTIONS RECORDED IN 
                   TREASURY SUSPENSE ACCOUNTS AND RESOLUTION OF 
                   CERTAIN CHECK ISSUANCE DISCREPANCIES.

       (a) Clearing of Suspense Accounts.--(1) In the case of any 
     transaction that was entered into by or on behalf of the 
     Department of Defense before March 1, 2001, that is recorded 
     in the Department of Treasury Budget Clearing Account 
     (Suspense) designated as account F3875, the Unavailable Check 
     Cancellations and Overpayments (Suspense) designated as 
     account F3880, or an Undistributed Intergovernmental Payments 
     account designated as account F3885, and for which no 
     appropriation for the Department of Defense has been 
     identified--
       (A) any undistributed collection credited to such account 
     in such case shall be deposited to the miscellaneous receipts 
     of the Treasury; and
       (B) subject to paragraph (2), any undistributed 
     disbursement recorded in such account in such case shall be 
     canceled.
       (2) An undistributed disbursement may not be canceled under 
     paragraph (1) until the Secretary of Defense has made a 
     written determination that the appropriate official or 
     officials of the Department of Defense have attempted without 
     success to locate the documentation necessary to demonstrate 
     which appropriation should be charged and further efforts are 
     not in the best interests of the United States.
       (b) Resolution of Check Issuance Discrepancies.--(1) In the 
     case of any check drawn on the Treasury that was issued by or 
     on behalf of the Department of Defense before October 31, 
     1998, for which the Secretary of the Treasury has reported to 
     the Department of Defense a discrepancy between the amount 
     paid and the amount of the check as transmitted to the 
     Department of Treasury, and for which no specific 
     appropriation for the Department of Defense can be identified 
     as being associated with the check, the discrepancy shall be 
     canceled, subject to paragraph (2).
       (2) A discrepancy may not be canceled under paragraph (1) 
     until the Secretary of Defense has made a written 
     determination that the appropriate official or officials of 
     the Department of Defense have attempted without success to 
     locate the documentation necessary to demonstrate which 
     appropriation should be charged and further efforts are not 
     in the best interests of the United States.
       (c) Consultation.--The Secretary of Defense shall consult 
     the Secretary of the Treasury in the exercise of the 
     authority granted by subsections (a) and (b).
       (d) Duration of Authority.--(1) A particular undistributed 
     disbursement may not be canceled under subsection (a) more 
     than 30 days after the date of the written determination made 
     by the Secretary of Defense under such subsection regarding 
     that undistributed disbursement.
       (2) A particular discrepancy may not be canceled under 
     subsection (b) more than 30 days after the date of the 
     written determination made by the Secretary of Defense under 
     such subsection regarding that discrepancy.
       (3) No authority may be exercised under this section after 
     the date that is two years after the date of the enactment of 
     this Act.

     SEC. 1011. ADDITIONAL AMOUNT FOR BALLISTIC MISSILE DEFENSE OR 
                   COMBATING TERRORISM IN ACCORDANCE WITH NATIONAL 
                   SECURITY PRIORITIES OF THE PRESIDENT.

       (a) Authorization of Appropriations.--In addition to other 
     amounts authorized to be appropriated by other provisions of 
     this division, there is hereby authorized to be appropriated 
     for the Department of Defense for fiscal year 2003, 
     $814,300,000 for whichever of the following purposes the 
     President determines that the additional amount is necessary 
     in the national security interests of the United States:
       (1) Research, development, test, and evaluation for 
     ballistic missile defense programs of the Department of 
     Defense.
       (2) Activities of the Department of Defense for combating 
     terrorism at home and abroad.
       (b) Offset.--The total amount authorized to be appropriated 
     under the other provisions of this division is hereby reduced 
     by $814,300,000 to reflect the amounts that the Secretary 
     determines unnecessary by reason of a revision of assumptions 
     regarding inflation that are applied as a result of the 
     midsession review of the budget conducted by the Office of 
     Management and Budget during the spring and early summer of 
     2002.
       (c) Priority for Allocating Funds.--In the expenditure of 
     additional funds made available by a lower rate of inflation, 
     the top priority shall be the use of such funds for 
     Department of Defense activities for protecting the American 
     people at home and abroad by combating terrorism at home and 
     abroad.

     SEC. 1012. AVAILABILITY OF AMOUNTS FOR OREGON ARMY NATIONAL 
                   GUARD FOR SEARCH AND RESCUE AND MEDICAL 
                   EVACUATION MISSIONS IN ADVERSE WEATHER 
                   CONDITIONS.

       (a) Increase in Authorization of Appropriations for Army 
     Procurement.--The amount authorized to be appropriated by 
     section 101(1) for procurement for the Army for aircraft is 
     hereby increased by $3,000,000.
       (b) Availability.--Of the amount authorized to be 
     appropriated by section 101(1) for procurement for the Army 
     for aircraft, as increased by subsection (a), $3,000,000 
     shall be available for the upgrade of three UH-60L Blackhawk 
     helicopters of the Oregon Army National Guard to the 
     capabilities of UH-60Q Search and Rescue model helicopters, 
     including Star Safire FLIR, Breeze-Eastern External Rescue 
     Hoist, and Air Methods COTS Medical Systems upgrades, in 
     order to improve the utility of such UH-60L Blackhawk 
     helicopters in search and rescue and medical evacuation 
     missions in adverse weather conditions.
       (c) Increase in Authorization of Appropriations for 
     Military Personnel.--The amount authorized to be appropriated 
     by section 421 for military personnel is hereby increased by 
     $1,800,000.
       (d) Availability.--Of the amount authorized to be 
     appropriated by section 421 for military personnel, as 
     increased by subsection (d), $1,800,000 shall be available 
     for up to 26 additional personnel for the Oregon Army 
     National Guard.
       (e) Offset.--The amount authorized to be appropriated by 
     section 301(a)(1) for operation and maintenance for the Army 
     is hereby reduced by $4,800,000, with the amount of the 
     reduction to be allocated to Base Operations Support 
     (Servicewide Support).

                Subtitle B--Naval Vessels and Shipyards

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

       (a) Contingent Requirement for Report.--If, on the date of 
     the enactment of this Act, the total number of Navy ships 
     comprising the force of surface combatants is less than 116, 
     the Secretary of the Navy shall submit a report on the size 
     of that force to the Committees on Armed Services of the 
     Senate and the House of Representatives. The report shall be 
     submitted not later than 90 days after such date and shall 
     include a risk assessment for such force that is based on the 
     same assumptions as those that were applied in the QDR 2001 
     current force risk assessment.
       (b) Limitation on Reduction.--The force of surface 
     combatants may not be reduced at any time after the date of 
     the enactment of this Act from a number of ships (whether 
     above, equal to, or below 116) to a number of ships below 116 
     before the date that is 90 days after the date on which the 
     Secretary of the Navy submits to the committees referred to 
     in subsection (a) a written notification of the reduction. 
     The notification shall include the following information:
       (1) The schedule for the reduction.
       (2) The number of ships that are to comprise the reduced 
     force of surface combatants.
       (3) A risk assessment for the reduced force that is based 
     on the same assumptions as those that were applied in the QDR 
     2001 current force risk assessment.
       (c) Preservation of Surge Capability.--Whenever the total 
     number of Navy ships comprising the force of surface 
     combatants is less than 116, the Secretary of the Navy shall 
     maintain on the Naval Vessel Register a sufficient number of 
     surface combatant ships to enable the Navy to regain a total 
     force of 116 surface combatant ships in active and reserve 
     service in the Navy within 120 days after the President 
     decides to increase the force of surface combatants.
       (d) Definitions.--In this section:
       (1) The term ``force of surface combatants'' means the 
     surface combatant ships in active and reserve service in the 
     Navy.
       (2) The term ``QDR 2001 current force risk assessment'' 
     means the risk assessment associated with a force of 116 
     surface combatant ships in active and reserve service in the 
     Navy that is set forth in the report on the quadrennial 
     defense review submitted to Congress on September 30, 2001, 
     under section 118 of title 10, United States Code.

     SEC. 1022. PLAN FOR FIELDING THE 155-MILLIMETER GUN ON A 
                   SURFACE COMBATANT.

       (a) Requirement for Plan.--The Secretary of the Navy shall 
     submit to Congress a plan for fielding the 155-millimeter gun 
     on one surface combatant ship in active service in the Navy. 
     The Secretary shall submit the plan at the same time that the 
     President submits the budget for fiscal year 2004 to Congress 
     under section 1105(a) of title 31, United States Code.
       (b) Fielding on Expedited Schedule.--The plan shall provide 
     for fielding the 155-millimeter gun on an expedited schedule 
     that is consistent with the achievement of safety of 
     operation and fire support capabilities meeting the fire 
     support requirements of the Marine Corps, but not later than 
     October 1, 2006.

     SEC. 1023. REPORT ON INITIATIVES TO INCREASE OPERATIONAL DAYS 
                   OF NAVY SHIPS.

       (a) Requirement for Report on Initiatives.--(1) The Under 
     Secretary of Defense for Acquisition, Technology, and 
     Logistics shall submit to the Committees on Armed Services of 
     the Senate and the House of Representatives a report on 
     Department of Defense initiatives to increase the number of 
     operational days of Navy ships as described in subsection 
     (b).
       (2) The report shall cover the ongoing Department of 
     Defense initiatives as well as potential initiatives that are 
     under consideration within the Department of Defense.
       (b) Initiatives Within Limits of Existing Fleet and 
     Deployment Policy.--The Under

[[Page 12187]]

     Secretary shall, in the report, assess the feasibility and 
     identify the projected effects of conducting initiatives that 
     have the potential to increase the number of operational days 
     of Navy ships available to the commanders-in-chief of the 
     regional unified combatant commands without increasing the 
     number of Navy ships and without increasing the routine 
     lengths of deployments of Navy ships above six months.
       (c) Required Focus Areas.--The report shall, at a minimum, 
     address the following four focus areas:
       (1) Assignment of additional ships, including submarines, 
     to home ports closer to the areas of operation for the ships 
     (known as ``forward homeporting'').
       (2) Assignment of ships to remain in a forward area of 
     operations, together with rotation of crews for each ship so 
     assigned.
       (3) Retention of ships for use until the end of the full 
     service life, together with investment of the funds necessary 
     to support retention to that extent.
       (4) Prepositioning of additional ships with, under normal 
     circumstances, small crews in a forward area of operations.
       (d) Time for Submittal.--The report shall be submitted at 
     the same time that the President submits the budget for 
     fiscal year 2004 to Congress under section 1105(a) of title 
     31, United States Code.

     SEC. 1024. ANNUAL LONG-RANGE PLAN FOR THE CONSTRUCTION OF 
                   SHIPS FOR THE NAVY.

       (a) Findings.--Congress makes the following findings:
       (1) Navy ships provide a forward presence for the United 
     States that is a key to the national defense of the United 
     States.
       (2) The Navy has demonstrated that its ships contribute 
     significantly to homeland defense.
       (3) The Navy's ship recapitalization plan is inadequate to 
     maintain the ship force structure that is described as the 
     current force in the 2001 Quadrennial Defense Review.
       (4) The Navy is decommissioning ships as much as 10 years 
     earlier than the projected ship life upon which ship 
     replacement rates are based.
       (5) The current force was assessed in the 2001 Quadrennial 
     Defense Review as having moderate to high risk, depending on 
     the scenario considered.
       (b) Annual Ship Construction Plan.--(1) Chapter 9 of title 
     10, United States Code, is amended by adding at the end the 
     following new section:

     ``Sec. 231. Annual ship construction plan

       ``(a) Annual Ship Construction Plan.--The Secretary of 
     Defense shall include in the defense budget materials for 
     each fiscal year a plan for the construction of combatant and 
     support ships for the Navy that--
       ``(1) supports the National Security Strategy; or
       ``(2) if there is no National Security Strategy in effect, 
     supports the ship force structure called for in the report of 
     the latest Quadrennial Defense Review.
       ``(b) Content.--The ship construction plan included in the 
     defense budget materials for a fiscal year shall provide in 
     detail for the construction of combatant and support ships 
     for the Navy over the 30 consecutive fiscal years beginning 
     with the fiscal year covered by the defense budget materials 
     and shall include the following matters:
       ``(1) A description of the necessary ship force structure 
     of the Navy.
       ``(2) The estimated levels of funding necessary to carry 
     out the plan, together with a discussion of the procurement 
     strategies on which such estimated funding levels are based.
       ``(3) A certification by the Secretary of Defense that both 
     the budget for the fiscal year covered by the defense budget 
     materials and the future-years defense program submitted to 
     Congress in relation to such budget under section 221 of this 
     title provide for funding ship construction for the Navy at a 
     level that is sufficient for the procurement of the ships 
     provided for in the plan on schedule.
       ``(4) If the budget for the fiscal year provides for 
     funding ship construction at a level that is not sufficient 
     for the recapitalization of the force of Navy ships at the 
     annual rate necessary to sustain the force, an assessment 
     (coordinated with the commanders of the combatant commands in 
     advance) that describes and discusses the risks associated 
     with the reduced force structure that will result from 
     funding ship construction at such insufficient level.
       ``(c) Definitions.--In this section:
       ``(1) The term `budget', with respect to a fiscal year, 
     means the budget for such fiscal year that is submitted to 
     Congress by the President under section 1105(a) of title 31.
       ``(2) The term `defense budget materials', with respect to 
     a fiscal year, means the materials submitted to Congress by 
     the Secretary of Defense in support of the budget for such 
     fiscal year.
       ``(3) The term `Quadrennial Defense Review' means the 
     Quadrennial Defense Review that is carried out under section 
     118 of this title.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by adding at the end the following new item:

``231. Annual ship construction plan.''.

                   Subtitle C--Reporting Requirements

     SEC. 1031. REPEAL AND MODIFICATION OF VARIOUS REPORTING 
                   REQUIREMENTS APPLICABLE WITH RESPECT TO THE 
                   DEPARTMENT OF DEFENSE.

       (a) Provisions of Title 10.--Title 10, United States Code, 
     is amended as follows:
       (1)(A) Section 183 is repealed.
       (B) The table of sections at the beginning of chapter 7 is 
     amended by striking the item relating to section 183.
       (2)(A) Sections 226 and 230 are repealed.
       (B) The table of sections at the beginning of chapter 9 is 
     amended by striking the items relating to sections 226 and 
     230.
       (3) Effective two years after the date of the enactment of 
     this Act--
       (A) section 483 is repealed; and
       (B) the table of sections at the beginning of chapter 23 is 
     amended by striking the item relating to section 483.
       (4) Section 526 is amended by striking subsection (c).
       (5) Section 721(d) is amended--
       (A) by striking paragraph (2); and
       (B) by striking ``(1)'' before ``If an officer''.
       (6) Section 1095(g) is amended--
       (A) by striking paragraph (2); and
       (B) by striking ``(1)'' after ``(g)''.
       (7) Section 1798 is amended by striking subsection (d).
       (8) Section 1799 is amended by striking subsection (d).
       (9) Section 2220 is amended--
       (A) by striking subsections (b) and (c);
       (B) by striking ``(1)'' after ``Establishment of Goals.--
     ''; and
       (C) by striking ``(2) The'' and inserting ``(b) Evaluation 
     of Cost Goals.--The''.
       (10) Section 2350a(g) is amended by striking paragraph (4).
       (11) Section 2350f is amended by striking subsection (c).
       (12) Section 2350k is amended by striking subsection (d).
       (13) Section 2367(d) is amended by striking ``Effort.--(1) 
     In the'' and all that follows through ``(2) After the close 
     of'' and inserting ``Effort.--After the close of''.
       (14) Section 2391 is amended by striking subsection (c).
       (15) Section 2486(b)(12) is amended by striking ``, except 
     that'' and all that follows and inserting the following: ``, 
     except that the Secretary shall notify Congress of any 
     addition of, or change in, a merchandise category under this 
     paragraph.''.
       (16) Section 2492 is amended by striking subsection (c) and 
     inserting the following:
       ``(c) Notification of Conditions Necessitating 
     Restrictions.--The Secretary of Defense shall notify Congress 
     of any change proposed or made to any of the host nation laws 
     or any of the treaty obligations of the United States, and 
     any changed conditions within host nations, if the change 
     would necessitate the use of quantity or other restrictions 
     on purchases in commissary and exchange stores located 
     outside the United States.''.
       (17)(A) Section 2504 is repealed.
       (B) The table of sections at the beginning of subchapter II 
     of chapter 148 is amended by striking the item relating to 
     section 2504.
       (18) Section 2506--
       (A) is amended by striking subsection (b); and
       (B) by striking ``(a) Departmental Guidance.--''.
       (19) Section 2537(a) is amended by striking ``$100,000'' 
     and inserting ``$10,000,000''.
       (20) Section 2611 is amended by striking subsection (e).
       (21) Section 2667(d) is amended by striking paragraph (3).
       (22) Section 2813 is amended by striking subsection (c).
       (23) Section 2827 is amended--
       (A) by striking subsection (b); and
       (B) by striking ``(a) Subject to subsection (b), the 
     Secretary'' and inserting ``The Secretary''.
       (24) Section 2867 is amended by striking subsection (c).
       (25) Section 4416 is amended by striking subsection (f).
       (26) Section 5721(f) is amended--
       (A) by striking paragraph (2); and
       (B) by striking ``(1)'' after the subsection heading.
       (b) National Defense Authorization Act for Fiscal Year 
     1995.--Section 553(b) of the National Defense Authorization 
     Act for Fiscal Year 1995 (Public Law 103-337; 108 Stat. 2772; 
     10 U.S.C. 4331 note) is amended by striking the last 
     sentence.
       (c) Ballistic Missile Defense Act of 1995.--Section 234 of 
     the Ballistic Missile Defense Act of 1995 (subtitle C of 
     title II of Public Law 104-106; 10 U.S.C. 2431 note) is 
     amended by striking subsection (f).

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

       (a) Annual Report.--Not later than April 1, 2003, and each 
     year thereafter, the Secretary of Defense, Secretary of 
     Energy, and Director of Central Intelligence shall jointly 
     submit to the congressional defense committees a report on 
     the research and development activities undertaken by their 
     respective agencies during the preceding fiscal year to 
     develop a weapon to defeat hardened and deeply buried 
     targets.
       (b) Report Elements.--The report for a fiscal year under 
     subsection (a) shall--
       (1) include a discussion of the integration and 
     interoperability of the various programs to develop a weapon 
     referred to in that subsection that were undertaken during 
     such

[[Page 12188]]

     fiscal year, including a discussion of the relevance of such 
     programs to applicable decisions of the Joint Requirements 
     Oversight Council; and
       (2) set forth separately a description of the research and 
     development activities, if any, to develop a weapon referred 
     to in that subsection that were undertaken during such fiscal 
     year by each military department, the Department of Energy, 
     and the Central Intelligence Agency.

     SEC. 1033. REVISION OF DATE OF ANNUAL REPORT ON 
                   COUNTERPROLIFERATION ACTIVITIES AND PROGRAMS.

       Section 1503(a) of the National Defense Authorization Act 
     for Fiscal Year 1995 (22 U.S.C. 2751 note) is amended by 
     striking ``February 1 of each year'' and inserting ``May 1 
     each year''.

     SEC. 1034. QUADRENNIAL QUALITY OF LIFE REVIEW.

       (a) Requirement for Review.--Chapter 23 of title 10, United 
     States Code, is amended by adding at the end the following 
     new section:

     ``Sec. 488. Quadrennial quality of life review

       ``(a) Review Required.--(1) The Secretary of Defense shall 
     every four years, two years after the submission of the 
     quadrennial defense review to Congress under section 118 of 
     this title, conduct a comprehensive examination of the 
     quality of life of the members of the armed forces (to be 
     known as the `quadrennial quality of life review'). The 
     review shall include examination of the programs, projects, 
     and activities of the Department of Defense, including the 
     morale, welfare, and recreation activities.
       ``(2) The quadrennial review shall be designed to result in 
     determinations, and to foster policies and actions, that 
     reflect the priority given the quality of life of members of 
     the armed forces as a primary concern of the Department of 
     Defense leadership.
       ``(b) Conduct of Review.--Each quadrennial quality of life 
     review shall be conducted so as--
       ``(1) to assess quality of life priorities and issues 
     consistent with the most recent National Security Strategy 
     prescribed by the President pursuant to section 108 of the 
     National Security Act of 1947 (50 U.S.C. 404a);
       ``(2) to identify actions that are needed in order to 
     provide members of the armed forces with the quality of life 
     reasonably necessary to encourage the successful execution of 
     the full range of missions that the members are called on to 
     perform under the national security strategy;
       ``(3) to provide a full accounting of the backlog of 
     installations in need of maintenance and repair, to determine 
     how the disrepair affects performance and quality of life of 
     members and their families, and to identify the budget plan 
     that would be required to provide the resources necessary to 
     remedy the backlog of maintenance and repair; and
       ``(4) to identify other actions that have the potential for 
     improving the quality of life of the members of the armed 
     forces.
       ``(c) Considerations.--Among the matters considered by the 
     Secretary in conducting the quadrennial review, the Secretary 
     shall include the following matters:
       ``(1) Infrastructure.
       ``(2) Military construction.
       ``(3) Physical conditions at military installations and 
     other Department of Defense facilities.
       ``(4) Budget plans.
       ``(5) Adequacy of medical care for members of the armed 
     forces and their dependents.
       ``(6) Adequacy of housing and the basic allowance for 
     housing and basic allowance for subsistence.
       ``(7) Housing-related utility costs.
       ``(8) Educational opportunities and costs.
       ``(9) Length of deployments.
       ``(10) Rates of pay, and pay differentials between the pay 
     of members and the pay of civilians.
       ``(11) Retention and recruiting efforts.
       ``(12) Workplace safety.
       ``(13) Support services for spouses and children.
       ``(14) Other elements of Department of Defense programs and 
     Federal Government policies and programs that affect the 
     quality of life of members.
       ``(d) Submission of QQLR to Congressional Committees.--The 
     Secretary shall submit a report on each quadrennial quality 
     of life review to the Committees on Armed Services of the 
     Senate and the House of Representatives. The report shall be 
     submitted not later than September 30 of the year in which 
     the review is conducted. The report shall include the 
     following:
       ``(1) The results of the review, including a comprehensive 
     discussion of how the quality of life of members of the armed 
     forces affects the national security strategy of the United 
     States.
       ``(2) The long-term quality of life problems of the armed 
     forces, together with proposed solutions.
       ``(3) The short-term quality of life problems of the armed 
     forces, together with proposed solutions.
       ``(4) The assumptions used in the review.
       ``(5) The effects of quality of life problems on the morale 
     of the members of the armed forces.
       ``(6) The quality of life problems that affect the morale 
     of members of the reserve components in particular, together 
     with solutions.
       ``(7) The effects of quality of life problems on military 
     preparedness and readiness.
       ``(8) The appropriate ratio of--
       ``(A) the total amount expended by the Department of 
     Defense in a fiscal year for programs, projects, and 
     activities designed to improve the quality of life of members 
     of the armed forces, to
       ``(B) the total amount expended by the Department of 
     Defense in the fiscal year.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of such chapter is amended by adding at the end the 
     following new item:

``488. Quadrennial quality of life review.''.

     SEC. 1035. REPORTS ON EFFORTS TO RESOLVE WHEREABOUTS AND 
                   STATUS OF CAPTAIN MICHAEL SCOTT SPEICHER, 
                   UNITED STATES NAVY.

       (a) Reports.-- Not later than 60 days after the date of the 
     enactment of this Act, and every 90 days thereafter, the 
     Secretary of Defense shall, in consultation with the 
     Secretary of State and the Director of Central Intelligence, 
     submit to Congress a report on the efforts of the United 
     States Government to determine the whereabouts and status of 
     Captain Michael Scott Speicher, United States Navy.
       (b) Period Covered by Reports.--The first report under 
     subsection (a) shall cover efforts described in that 
     subsection preceding the date of the report, and each 
     subsequent report shall cover efforts described in that 
     subsection during the 90-day period ending on the date of 
     such report.
       (c) Report Elements.--Each report under subsection (a) 
     shall describe, for the period covered by such report--
       (1) all direct and indirect contacts with the Government of 
     Iraq, or any successor government, regarding the whereabouts 
     and status of Michael Scott Speicher;
       (2) any request made to the government of another country, 
     including the intelligence service of such country, for 
     assistance in resolving the whereabouts and status of Michael 
     Scott Speicher, including the response to such request;
       (3) each current lead on the whereabouts and status of 
     Michael Scott Speicher, including an assessment of the 
     utility of such lead in resolving the whereabouts and status 
     of Michael Scott Speicher; and
       (4) any cooperation with nongovernmental organizations or 
     international organizations in resolving the whereabouts and 
     status of Michael Scott Speicher, including the results of 
     such cooperation.
       (d) Form of Reports.--Each report under subsection (a) 
     shall be submitted in classified form, but may include an 
     unclassified summary.

     SEC. 1036. REPORT ON EFFORTS TO ENSURE ADEQUACY OF FIRE 
                   FIGHTING STAFFS AT MILITARY INSTALLATIONS.

       Not later than May 31, 2003, the Secretary of Defense shall 
     submit to Congress a report on the actions being undertaken 
     to ensure that the fire fighting staffs at military 
     installations are adequate under applicable Department of 
     Defense regulations.

     SEC. 1037. REPORT ON DESIGNATION OF CERTAIN LOUISIANA HIGHWAY 
                   AS DEFENSE ACCESS ROAD.

       Not later than March 1, 2003, the Secretary of the Army 
     shall submit to the congressional defense committees a report 
     containing the results of a study on the advisability of 
     designating Louisiana Highway 28 between Alexandria, 
     Louisiana, and Leesville, Louisiana, a road providing access 
     to the Joint Readiness Training Center, Louisiana, and to 
     Fort Polk, Louisiana, as a defense access road for purposes 
     of section 210 of title 23, United States Code.

     SEC. 1038. PLAN FOR FIVE-YEAR PROGRAM FOR ENHANCEMENT OF 
                   MEASUREMENT AND SIGNATURES INTELLIGENCE 
                   CAPABILITIES.

       (a) Finding.--Congress finds that the national interest 
     will be served by the rapid exploitation of basic research on 
     sensors for purposes of enhancing the measurement and 
     signatures intelligence (MASINT) capabilities of the Federal 
     Government.
       (b) Plan for Program.--(1) Not later than March 30, 2003, 
     the Director of the Central Measurement and Signatures 
     Intelligence Office shall submit to Congress a plan for a 
     five-year program of research intended to provide for the 
     incorporation of the results of basic research on sensors 
     into the measurement and signatures intelligence systems 
     fielded by the Federal Government, including the review and 
     assessment of basic research on sensors for that purpose.
       (2) Activities under the plan shall be carried out by a 
     consortium consisting of such governmental and non-
     governmental entities as the Director considers appropriate 
     for purposes of incorporating the broadest practicable range 
     of sensor capabilities into the systems referred to in 
     paragraph (1). The consortium may include national 
     laboratories, universities, and private sector entities.
       (3) The plan shall include a proposal for the funding of 
     activities under the plan, including cost-sharing by non-
     governmental participants in the consortium under paragraph 
     (2).

     SEC. 1039. REPORT ON VOLUNTEER SERVICES OF MEMBERS OF THE 
                   RESERVE COMPONENTS IN EMERGENCY RESPONSE TO THE 
                   TERRORIST ATTACKS OF SEPTEMBER 11, 2001.

       (a) Requirement for Report.--Not later than 90 days after 
     the date of the enactment

[[Page 12189]]

     of this Act, the Secretary of Defense shall submit to the 
     Committees on Armed Services of the Senate and the House of 
     Representatives a report on volunteer services described in 
     subsection (b) that were provided by members of the National 
     Guard and other reserve components of the Armed Forces, while 
     not in a duty status pursuant to orders, during the period of 
     September 11 through 14, 2001. The report shall include a 
     discussion of any personnel actions that the Secretary 
     considers appropriate for the members regarding the 
     performance of such services.
       (b) Covered Services.--The volunteer services referred to 
     in subsection (a) are as follows:
       (1) Volunteer services provided in the vicinity of the site 
     of the World Trade Center, New York, New York, in support of 
     emergency response to the terrorist attack on the World Trade 
     Center on September 11, 2001.
       (2) Volunteer services provided in the vicinity of the 
     Pentagon in support of emergency response to the terrorist 
     attack on the Pentagon on September 11, 2001.

     SEC. 1040. BIANNUAL REPORTS ON CONTRIBUTIONS TO PROLIFERATION 
                   OF WEAPONS OF MASS DESTRUCTION AND DELIVERY 
                   SYSTEMS BY COUNTRIES OF PROLIFERATION CONCERN.

       (a) Reports.--Not later than six months after the date of 
     the enactment of this Act, and every six months thereafter, 
     the President shall submit to Congress a report identifying 
     each foreign person that, during the six-month period ending 
     on the date of such report, made a material contribution to 
     the development by a country of proliferation concern of--
       (1) nuclear, biological, or chemical weapons; or
       (2) ballistic or cruise missile systems.
       (b) Form of Submittal.--(1) A report under subsection (a) 
     may be submitted in classified form, whether in whole or in 
     part, if the President determines that submittal in that form 
     is advisable.
       (2) Any portion of a report under subsection (a) that is 
     submitted in classified form shall be accompanied by an 
     unclassified summary of such portion.
       (c) Definitions.--In this section:
       (1) The term ``foreign person'' means--
       (A) a natural person that is an alien;
       (B) a corporation, business association, partnership, 
     society, trust, or any other nongovernmental entity, 
     organization, or group that is organized under the laws of a 
     foreign country or has its principal place of business in a 
     foreign country;
       (C) any foreign governmental entity operating as a business 
     enterprise; and
       (D) any successor, subunit, or subsidiary of any entity 
     described in subparagraph (B) or (C).
       (2) The term ``country of proliferation concern'' means any 
     country identified by the Director of Central Intelligence as 
     having engaged in the acquisition of dual-use and other 
     technology useful for the development or production of 
     weapons of mass destruction (including nuclear, chemical, and 
     biological weapons) and advanced conventional munitions in 
     the most current report under section 721 of the Combatting 
     Proliferation of Weapons of Mass Destruction Act of 1996 
     (title VII of Public Law 104-293; 50 U.S.C. 2366), or any 
     successor report on the acquisition by foreign countries of 
     dual-use and other technology useful for the development or 
     production of weapons of mass destruction.

                      Subtitle D--Homeland Defense

     SEC. 1041. HOMELAND SECURITY ACTIVITIES OF THE NATIONAL 
                   GUARD.

       (a) Authority.--Chapter 1 of title 32, United States Code, 
     is amended by adding at the end the following new section:

     ``Sec. 116. Homeland security activities

       ``(a) Use of Personnel Performing Full-Time National Guard 
     Duty.--The Governor of a State may, upon the request by the 
     head of a Federal law enforcement agency and with the 
     concurrence of the Secretary of Defense, order any personnel 
     of the National Guard of the State to perform full-time 
     National Guard duty under section 502(f) of this title for 
     the purpose of carrying out homeland security activities, as 
     described in subsection (b).
       ``(b) Purpose and Duration.--(1) The purpose for the use of 
     personnel of the National Guard of a State under this section 
     is to temporarily provide trained and disciplined personnel 
     to a Federal law enforcement agency to assist that agency in 
     carrying out homeland security activities until that agency 
     is able to recruit and train a sufficient force of Federal 
     employees to perform the homeland security activities.
       ``(2) The duration of the use of the National Guard of a 
     State under this section shall be limited to a period of 179 
     days. The Governor of the State may, with the concurrence of 
     the Secretary of Defense, extend the period one time for an 
     additional 90 days to meet extraordinary circumstances.
       ``(c) Relationship to Required Training.--A member of the 
     National Guard serving on full-time National Guard duty under 
     orders authorized under subsection (a) shall participate in 
     the training required under section 502(a) of this title in 
     addition to the duty performed for the purpose authorized 
     under that subsection. The pay, allowances, and other 
     benefits of the member while participating in the training 
     shall be the same as those to which the member is entitled 
     while performing duty for the purpose of carrying out 
     homeland security activities. The member is not entitled to 
     additional pay, allowances, or other benefits for 
     participation in training required under section 502(a)(1) of 
     this title.
       ``(d) Readiness.--To ensure that the use of units and 
     personnel of the National Guard of a State for homeland 
     security activities does not degrade the training and 
     readiness of such units and personnel, the following 
     requirements shall apply in determining the homeland security 
     activities that units and personnel of the National Guard of 
     a State may perform:
       ``(1) The performance of the activities may not adversely 
     affect the quality of that training or otherwise interfere 
     with the ability of a member or unit of the National Guard to 
     perform the military functions of the member or unit.
       ``(2) National Guard personnel will not degrade their 
     military skills as a result of performing the activities.
       ``(3) The performance of the activities will not result in 
     a significant increase in the cost of training.
       ``(4) In the case of homeland security performed by a unit 
     organized to serve as a unit, the activities will support 
     valid unit training requirements.
       ``(e) Payment of Costs.--(1) The Secretary of Defense shall 
     provide funds to the Governor of a State to pay costs of the 
     use of personnel of the National Guard of the State for the 
     performance of homeland security activities under this 
     section. Such funds shall be used for the following costs:
       ``(A) The pay, allowances, clothing, subsistence, 
     gratuities, travel, and related expenses (including all 
     associated training expenses, as determined by the 
     Secretary), as authorized by State law, of personnel of the 
     National Guard of that State used, while not in Federal 
     service, for the purpose of homeland security activities.
       ``(B) The operation and maintenance of the equipment and 
     facilities of the National Guard of that State used for the 
     purpose of homeland security activities.
       ``(2) The Secretary of Defense shall require the head of a 
     law enforcement agency receiving support from the National 
     Guard of a State in the performance of homeland security 
     activities under this section to reimburse the Department of 
     Defense for the payments made to the State for such support 
     under paragraph (1).
       ``(f) Memorandum of Agreement.--The Secretary of Defense 
     and the Governor of a State shall enter into a memorandum of 
     agreement with the head of each Federal law enforcement 
     agency to which the personnel of the National Guard of that 
     State are to provide support in the performance of homeland 
     security activities under this section. The memorandum of 
     agreement shall--
       ``(1) specify how personnel of the National Guard are to be 
     used in homeland security activities;
       ``(2) include a certification by the Adjutant General of 
     the State that those activities are to be performed at a time 
     when the personnel are not in Federal service;
       ``(3) include a certification by the Adjutant General of 
     the State that--
       ``(A) participation by National Guard personnel in those 
     activities is service in addition to training required under 
     section 502 of this title; and
       ``(B) the requirements of subsection (d) of this section 
     will be satisfied;
       ``(4) include a certification by the Attorney General of 
     the State (or, in the case of a State with no position of 
     Attorney General, a civilian official of the State equivalent 
     to a State attorney general), that the use of the National 
     Guard of the State for the activities provided for under the 
     memorandum of agreement is authorized by, and is consistent 
     with, State law;
       ``(5) include a certification by the Governor of the State 
     or a civilian law enforcement official of the State 
     designated by the Governor that the activities provided for 
     under the memorandum of agreement serve a State law 
     enforcement purpose; and
       ``(6) include a certification by the head of the Federal 
     law enforcement agency that the agency will have a plan to 
     ensure that the agency's requirement for National Guard 
     support ends not later than 179 days after the commencement 
     of the support.
       ``(g) Exclusion From End-Strength Computation.--
     Notwithstanding any other provision of law, members of the 
     National Guard on active duty or full-time National Guard 
     duty for the purposes of administering (or during fiscal year 
     2003 otherwise implementing) this section shall not be 
     counted toward the annual end strength authorized for 
     reserves on active duty in support of the reserve components 
     of the armed forces or toward the strengths authorized in 
     sections 12011 and 12012 of title 10.
       ``(h) Annual Report.--The Secretary of Defense shall submit 
     to Congress an annual report regarding any assistance 
     provided and activities carried out under this section during 
     the preceding fiscal year. The report shall include the 
     following:

[[Page 12190]]

       ``(1) The number of members of the National Guard excluded 
     under subsection (g) from the computation of end strengths.
       ``(2) A description of the homeland security activities 
     conducted with funds provided under this section.
       ``(3) An accounting of the amount of funds provided to each 
     State.
       ``(4) A description of the effect on military training and 
     readiness of using units and personnel of the National Guard 
     to perform homeland security activities under this section.
       ``(i) Statutory Construction.--Nothing in this section 
     shall be construed as a limitation on the authority of any 
     unit of the National Guard of a State, when such unit is not 
     in Federal service, to perform law enforcement functions 
     authorized to be performed by the National Guard by the laws 
     of the State concerned.
       ``(j) Definitions.--For purposes of this section:
       ``(1) The term `Governor of a State' means, in the case of 
     the District of Columbia, the Commanding General of the 
     National Guard of the District of Columbia.
       ``(2) The term `State' means each of the several States, 
     the District of Columbia, the Commonwealth of Puerto Rico, or 
     a territory or possession of the United States.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of such section is amended by adding at the end the 
     following new item:

``116. Homeland security activities.''.

     SEC. 1042. CONDITIONS FOR USE OF FULL-TIME RESERVES TO 
                   PERFORM DUTIES RELATING TO DEFENSE AGAINST 
                   WEAPONS OF MASS DESTRUCTION.

       Section 12310(c)(3) of title 10, United States Code, is 
     amended by striking ``only--'' and all that follows through 
     ``(B) while assigned'' and inserting ``only while assigned''.

     SEC. 1043. WEAPON OF MASS DESTRUCTION DEFINED FOR PURPOSES OF 
                   THE AUTHORITY FOR USE OF RESERVES TO PERFORM 
                   DUTIES RELATING TO DEFENSE AGAINST WEAPONS OF 
                   MASS DESTRUCTION.

       (a) Weapon of Mass Destruction Redefined.--Section 
     12304(i)(2) of title 10, United States Code, is amended to 
     read as follows:
       ``(2) The term `weapon of mass destruction' means--
       ``(A) any weapon that is designed or, through its use, is 
     intended to cause death or serious bodily injury through the 
     release, dissemination, or impact of toxic or poisonous 
     chemicals or their precursors;
       ``(B) any weapon that involves a disease organism;
       ``(C) any weapon that is designed to release radiation or 
     radioactivity at a level dangerous to human life; and
       ``(D) any large conventional explosive that is designed to 
     produce catastrophic loss of life or property.''.
       (b) Conforming Amendment.--Section 12310(c)(1) of such 
     title is amended by striking ``section 1403 of the Defense 
     Against Weapons of Mass Destruction Act of 1996 (50 U.S.C. 
     2302(1))'' and inserting ``section 12304(i)(2) of this 
     title''.

     SEC. 1044. REPORT ON DEPARTMENT OF DEFENSE HOMELAND DEFENSE 
                   ACTIVITIES.

       (a) Report Required.--Not later than February 1, 2003, the 
     Secretary of Defense shall submit to the congressional 
     defense committees a report on what actions of the Department 
     of Defense would be necessary to carry out the Secretary's 
     expressed intent--
       (1) to place new emphasis on the unique operational demands 
     associated with the defense of the United States homeland; 
     and
       (2) to restore the mission of defense of the United States 
     to the position of being the primary mission of the 
     Department of Defense.
       (b) Content of the Report.--The report shall contain, in 
     accordance with the other provisions of this section, the 
     following matters:
       (1) Homeland defense campaign plan.--A homeland defense 
     campaign plan.
       (2) Intelligence.--A discussion of the relationship 
     between--
       (A) the intelligence capabilities of--
       (i) the Department of Defense; and
       (ii) other departments and agencies of the United States; 
     and
       (B) the performance of the homeland defense mission.
       (3) Threat and vulnerability assessment.--A compliance-
     based national threat and vulnerability assessment.
       (4) Training and exercising.--A discussion of the 
     Department of Defense plans for training and exercising for 
     the performance of the homeland defense mission.
       (5) Bioterrorism initiative.--An evaluation of the need for 
     a Department of Defense bioterrorism initiative to improve 
     the ability of the department to counter bioterror threats 
     and to assist other agencies to improve the national ability 
     to counter bioterror threats.
       (6) Chemical biological incident response teams.--An 
     evaluation of the need for and feasibility of developing and 
     fielding Department of Defense regional chemical biological 
     incident response teams.
       (7) Other matters.--Any other matters that the Secretary of 
     Defense considers relevant regarding the efforts necessary to 
     carry out the intent referred to in subsection (a).
       (c) Homeland Defense Campaign Plan.--
       (1) Organization, planning, and interoperability.--
       (A) In general.--The homeland defense campaign plan under 
     subsection (b)(1) shall contain a discussion of the 
     organization and planning of the Department of Defense for 
     homeland defense, including the expectations for 
     interoperability of the Department of Defense with other 
     departments and agencies of the Federal Government and with 
     State and local governments.
       (B) Content.--The plan shall include the following matters:
       (i) The duties, definitions, missions, goals, and 
     objectives of organizations in the Department of Defense that 
     apply homeland defense, together with an organizational 
     assessment with respect to the performance of the homeland 
     defense mission and a discussion of any plans for making 
     functional realignments of organizations, authorities, and 
     responsibilities for carrying out that mission.
       (ii) The relationships among the leaders of the 
     organizations (including the Secretary of Defense, the Joint 
     Chiefs of Staff, the Commander in Chief of United States 
     Northern Command, the Commanders in Chief of the other 
     regional unified combatant commands, and the reserve 
     components) in the performance of such duties.
       (iii) The reviews, evaluations, and standards that are 
     established or are to be established for determining and 
     ensuring the readiness of the organizations to perform such 
     duties.
       (2) Response to attack on critical infrastructure.--
       (A) In general.--The homeland defense campaign plan shall 
     contain an outline of the duties and capabilities of the 
     Department of Defense for responding to an attack on critical 
     infrastructure of the United States, including responding to 
     an attack on critical infrastructure of the department, by 
     means of a weapon of mass destruction or a CBRNE weapon or by 
     a cyber means.
       (B) Various attack scenarios.--The outline shall specify, 
     for each major category of attack by a means described in 
     subparagraph (A), the variations in the duties, responses, 
     and capabilities of the various Department of Defense 
     organizations that result from the variations in the means of 
     the attack.
       (C) Deficiencies.--The outline shall identify any 
     deficiencies in capabilities and set forth a plan for 
     rectifying any such deficiencies.
       (D) Legal impediments.--The outline shall identify and 
     discuss each impediment in law to the effective performance 
     of the homeland defense mission.
       (3) Roles and responsibilities in interagency process.--
       (A) In general.--The homeland defense campaign plan shall 
     contain a discussion of the roles and responsibilities of the 
     Department of Defense in the interagency process of 
     policymaking and planning for homeland defense.
       (B) Integration with state and local activities.--The 
     homeland defense campaign plan shall include a discussion of 
     Department of Defense plans to integrate Department of 
     Defense homeland defense activities with the homeland defense 
     activities of other departments and agencies of the United 
     States and the homeland defense activities of State and local 
     governments, particularly with regard to issues relating to 
     CBRNE and cyber attacks.
       (d) Intelligence Capabilities.--The discussion of the 
     relationship between the intelligence capabilities and the 
     performance of the homeland defense mission under subsection 
     (b)(2) shall include the following matters:
       (1) Roles and missions.--The roles and missions of the 
     Department of Defense for the employment of the intelligence 
     capabilities of the department in homeland defense.
       (2) Interagency relationships.--A discussion of the 
     relationship between the Department of Defense and the other 
     departments and agencies of the United States that have 
     duties for collecting or analyzing intelligence in relation 
     to homeland defense, particularly in light of the conflicting 
     demands of duties relating to the collection and analysis of 
     domestic intelligence and duties relating to the collection 
     and analysis of foreign intelligence.
       (3) Intelligence-related changes.--Any changes that are 
     necessary in the Department of Defense in order to provide 
     effective intelligence support for the performance of 
     homeland defense missions, with respect to--
       (A) the preparation of threat assessments and other warning 
     products by the Department of Defense;
       (B) collection of terrorism-related intelligence through 
     human intelligence sources, signals intelligence sources, and 
     other intelligence sources; and
       (C) intelligence policy, capabilities, and practices.
       (4) Legal impediments.--Any impediments in law to the 
     effective performance of intelligence missions in support of 
     homeland defense.
       (e) Threat and Vulnerability Assessment.--
       (1) Content.--The compliance-based national threat and 
     vulnerability assessment under subsection (b)(3) shall 
     include a discussion of the following matters:

[[Page 12191]]

       (A) Critical facilities.--The threat of terrorist attack on 
     critical facilities, programs, and systems of the United 
     States, together with the capabilities of the Department of 
     Defense to deter and respond to any such attack.
       (B) DoD vulnerability.--The vulnerability of installations, 
     facilities, and personnel of the Department of Defense to 
     attack by persons using weapons of mass destruction, CBRNE 
     weapons, or cyber means.
       (C) Balanced survivability assessment.--Plans to conduct a 
     balanced survivability assessment for use in determining the 
     vulnerabilities of targets referred to in subparagraphs (A) 
     and (B).
       (D) Process.--Plans, including timelines and milestones, 
     necessary to develop a process for conducting compliance-
     based vulnerability assessments for critical infrastructure, 
     together with the standards to be used for ensuring that the 
     process is executable.
       (2) Definition of compliance-based.--In subsection (b)(3) 
     and paragraph (1)(D) of this subsection, the term 
     ``compliance-based'', with respect to an assessment, means 
     that the assessment is conducted under policies and 
     procedures that require correction of each deficiency 
     identified in the assessment to a standard set forth in 
     Department of Defense Instruction 2000.16 or another 
     applicable Department of Defense instruction, directive, or 
     policy.
       (f) Training and Exercising.--The discussion of the 
     Department of Defense plans for training and exercising for 
     the performance of the homeland defense mission under 
     subsection (b)(4) shall contain the following matters:
       (1) Military education.--The plans for the training and 
     education of members of the Armed Forces specifically for 
     performance of homeland defense missions, including any 
     anticipated changes in the curriculum in--
       (A) the National Defense University, the war colleges of 
     the Armed Forces, graduate education programs, and other 
     senior military schools and education programs; and
       (B) the Reserve Officers' Training Corps program, officer 
     candidate schools, enlisted and officer basic and advanced 
     individual training programs, and other entry level military 
     education and training programs.
       (2) Exercises.--The plans for using exercises and 
     simulation in the training of all components of the Armed 
     Forces, including--
       (A) plans for integrated training with departments and 
     agencies of the United States outside the Department of 
     Defense and with agencies of State and local governments; and
       (B) plans for developing an opposing force that, for the 
     purpose of developing potential scenarios of terrorist 
     attacks on targets inside the United States, simulates a 
     terrorist group having the capability to engage in such 
     attacks.
       (g) Bioterrorism Initiative.--The evaluation of the need 
     for a Department of Defense bioterrorism initiative under 
     subsection (b)(5) shall include a discussion that identifies 
     and evaluates options for potential action in such an 
     initiative, as follows:
       (1) Planning, training, exercise, evaluation, and 
     funding.--Options for--
       (A) refining the plans of the Department of Defense for 
     biodefense to include participation of other departments and 
     agencies of the United States and State and local 
     governments;
       (B) increasing biodefense training, exercises, and 
     readiness evaluations by the Department of Defense, including 
     training, exercises, and evaluations that include 
     participation of other departments and agencies of the United 
     States and State and local governments;
       (C) increasing Department of Defense funding for 
     biodefense; and
       (D) integrating other departments and agencies of the 
     United States and State and local governments into the plans, 
     training, exercises, evaluations, and resourcing.
       (2) Disease surveillance.--Options for the Department of 
     Defense to develop an integrated disease surveillance 
     detection system and to improve systems for communicating 
     information and warnings of the incidence of disease to 
     recipients within the Department of Defense and to other 
     departments and agencies of the United States and State and 
     local governments.
       (3) Emergency management standard.--Options for broadening 
     the scope of the Revised Emergency Management Standard of the 
     Joint Commission on Accreditation of Healthcare Organizations 
     by including the broad and active participation of Federal, 
     State, and local governmental agencies that are expected to 
     respond in any event of a CBRNE or cyber attack.
       (4) Laboratory response network.--Options for the 
     Department of Defense--
       (A) to participate in the laboratory response network for 
     bioterrorism; and
       (B) to increase the capacity of Department of Defense 
     laboratories rated by the Secretary of Defense as level D 
     laboratories to facilitate participation in the network.
       (h) Chemical Biological Incident Response Teams.--The 
     evaluation of the need for and feasibility of developing and 
     fielding Department of Defense regional chemical biological 
     incident response teams under subsection (b)(6) shall include 
     a discussion and evaluation of the following options:
       (1) Regional teams.--Options for the Department of Defense, 
     using the chemical biological incident response force as a 
     model, to develop, equip, train, and provide transportation 
     for five United States based, strategically located, regional 
     chemical biological incident response teams.
       (2) Resourcing.--Options and preferred methods for 
     providing the resources and personnel necessary for 
     developing and fielding any such teams.
       (i) Definitions.--In this section:
       (1) CBRNE.--The term ``CBRNE'' means chemical, biological, 
     radiological, nuclear, or explosive.
       (2) Weapon of mass destruction.--The term ``weapon of mass 
     destruction'' has the meaning given such term in section 1403 
     of the Defense Against Weapons of Mass Destruction Act of 
     1996 (50 U.S.C. 2302).

     SEC. 1045. STRATEGY FOR IMPROVING PREPAREDNESS OF MILITARY 
                   INSTALLATIONS FOR INCIDENTS INVOLVING WEAPONS 
                   OF MASS DESTRUCTION.

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

                       Subtitle E--Other Matters

     SEC. 1061. CONTINUED APPLICABILITY OF EXPIRING GOVERNMENTWIDE 
                   INFORMATION SECURITY REQUIREMENTS TO THE 
                   DEPARTMENT OF DEFENSE.

       (a) In General.--Chapter 131 of title 10, United States 
     Code, is amended by inserting after section 2224 the 
     following new section:

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

       ``(a) In General.--The provisions of subchapter II of 
     chapter 35 of title 44 shall continue to apply with respect 
     to the Department of Defense, notwithstanding the expiration 
     of authority under section 3536 of such title.
       ``(b) Responsibilities.--In administering the provisions of 
     subchapter II of chapter 35 of title 44 with respect to the 
     Department of Defense after the expiration of authority under 
     section 3536 of such title, the Secretary of Defense shall 
     perform the duties set forth in that subchapter for the 
     Director of the Office of Management and Budget.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of such chapter is amended by inserting after the 
     item relating to section 2224 the following new item:

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

[[Page 12192]]



     SEC. 1062. ACCEPTANCE OF VOLUNTARY SERVICES OF PROCTORS FOR 
                   ADMINISTRATION OF ARMED SERVICES VOCATIONAL 
                   APTITUDE BATTERY.

       Section 1588(a) of title 10, United States Code, is amended 
     by adding at the end the following new paragraph:
       ``(6) Voluntary services as a proctor for the 
     administration of the Armed Services Vocational Aptitude 
     Battery.''.

     SEC. 1063. EXTENSION OF AUTHORITY FOR SECRETARY OF DEFENSE TO 
                   SELL AIRCRAFT AND AIRCRAFT PARTS FOR USE IN 
                   RESPONDING TO OIL SPILLS.

       (a) Four-Year Extension.--Subsection (a)(1) of section 740 
     of the Wendell H. Ford Aviation Investment and Reform Act for 
     the 21st Century (Public Law 106-181; 114 Stat. 173; 10 
     U.S.C. 2576 note) is amended by striking ``September 30, 
     2002'' and inserting ``September 30, 2006''.
       (b) Additional Report.--Subsection (f) of such section is 
     amended by striking ``March 31, 2002'' and inserting ``March 
     31, 2006''.

     SEC. 1064. AMENDMENTS TO IMPACT AID PROGRAM.

       (a) Eligibility for Heavily Impacted Local Educational 
     Agencies Affected by Privatization of Military Housing.--
     Section 8003(b)(2) of the Elementary and Secondary Education 
     Act of 1965 (20 U.S.C. 7703(b)(2)) is amended by adding at 
     the end the following:
       ``(H) Eligibility for heavily impacted local educational 
     agencies affected by privatization of military housing.--
       ``(i) In general.--For any fiscal year beginning with 
     fiscal year 2003, a heavily impacted local educational agency 
     that received a basic support payment under subparagraph (A) 
     for the prior fiscal year, but is ineligible for such payment 
     for the current fiscal year under subparagraph (B) or (C), as 
     the case may be, by reason of the conversion of military 
     housing units to private housing described in clause (ii), 
     shall be deemed to meet the eligibility requirements under 
     subparagraph (B) or (C), as the case may be, for the period 
     during which the housing units are undergoing such 
     conversion, and shall be paid under the same provisions of 
     subparagraph (D) or (E) as the agency was paid in the prior 
     fiscal year.
       ``(ii) Conversion of military housing units to private 
     housing described.--For purposes of clause (i), `conversion 
     of military housing units to private housing' means the 
     conversion of military housing units to private housing units 
     pursuant to subchapter IV of chapter 169 of title 10, United 
     States Code, or pursuant to any other related provision of 
     law.''.
       (b) Coterminous Military School Districts.--Section 8003(a) 
     of the Elementary and Secondary Education Act of 1965 (20 
     U.S.C. 7703(a)) is amended by adding at the end the 
     following:
       ``(6) Coterminous military school districts.--For purposes 
     of computing the amount of a payment for a local educational 
     agency for children described in paragraph (1)(D)(i), the 
     Secretary shall consider such children to be children 
     described in paragraph (1)(B) if the agency is a local 
     educational agency whose boundaries are the same as a Federal 
     military installation.''.

     SEC. 1065. DISCLOSURE OF INFORMATION ON SHIPBOARD HAZARD AND 
                   DEFENSE PROJECT TO DEPARTMENT OF VETERANS 
                   AFFAIRS.

       (a) Plan for Disclosure of Information.--Not later than 90 
     days after the date of the enactment of this Act, the 
     Secretary of Defense shall submit to Congress and the 
     Secretary of Veterans Affairs a comprehensive plan for the 
     review, declassification, and submittal to the Department of 
     Veterans Affairs of all medical records and information of 
     the Department of Defense on the Shipboard Hazard and Defense 
     (SHAD) project of the Navy that are relevant to the provision 
     of benefits by the Secretary of Veterans Affairs to members 
     of the Armed Forces who participated in that project.
       (b) Plan Requirements.--(1) The records and information 
     covered by the plan under subsection (a) shall be the records 
     and information necessary to permit the identification of 
     members of the Armed Forces who were or may have been exposed 
     to chemical or biological agents as a result of the Shipboard 
     Hazard and Defense project.
       (2) The plan shall provide for completion of all activities 
     contemplated by the plan not later than one year after the 
     date of the enactment of this Act.
       (c) Reports on Implementation.--(1) Not later than 90 days 
     after the date of the enactment of this Act, and every 90 
     days thereafter until completion of all activities 
     contemplated by the plan under subsection (a), the Secretary 
     of Defense shall submit to Congress and the Secretary of 
     Veterans Affairs a report on progress in the implementation 
     of the plan during the 90-day period ending on the date of 
     such report.
       (2) Each report under paragraph (1) shall include, for the 
     period covered by such report--
       (A) the number of records reviewed;
       (B) each test, if any, under the Shipboard Hazard and 
     Defense project identified during such review;
       (C) for each test so identified--
       (i) the test name;
       (ii) the test objective;
       (iii) the chemical or biological agent or agents involved; 
     and
       (iv) the number of members of the Armed Forces, and 
     civilian personnel, potentially effected by such test; and
       (D) the extent of submittal of records and information to 
     the Secretary of Veterans Affairs under this section.

     SEC. 1066. TRANSFER OF HISTORIC DF-9E PANTHER AIRCRAFT TO 
                   WOMEN AIRFORCE SERVICE PILOTS MUSEUM.

       (a) Authority to Convey.--The Secretary of the Navy may 
     convey, without consideration, to the Women Airforce Service 
     Pilots Museum in Quartzsite, Arizona (in this section 
     referred to as the ``W.A.S.P. museum''), all right, title, 
     and interest of the United States in and to a DF-9E Panther 
     aircraft (Bureau Number 125316). The conveyance shall be made 
     by means of a conditional deed of gift.
       (b) Condition of Aircraft.--The aircraft shall be conveyed 
     under subsection (a) in ``as is'' condition. The Secretary is 
     not required to repair or alter the condition of the aircraft 
     before conveying ownership of the aircraft.
       (c) Reverter Upon Breach of Conditions.--The Secretary 
     shall include in the instrument of conveyance of the aircraft 
     under subsection (a)--
       (1) a condition that the W.A.S.P. museum not convey any 
     ownership interest in, or transfer possession of, the 
     aircraft to any other party without the prior approval of the 
     Secretary; and
       (2) a condition that if the Secretary determines at any 
     time that the W.A.S.P. museum has conveyed an ownership 
     interest in, or transferred possession of, the aircraft to 
     any other party without the prior approval of the Secretary, 
     all right, title, and interest in and to the aircraft, 
     including any repair or alteration of the aircraft, shall 
     revert to the United States, and the United States shall have 
     the right of immediate possession of the aircraft.
       (d) Conveyance at No Cost to the United States.--The 
     conveyance of the aircraft under subsection (a) shall be made 
     at no cost to the United States. Any costs associated with 
     the conveyance, costs of determining compliance with 
     subsection (b), and costs of operation and maintenance of the 
     aircraft conveyed shall be borne by the W.A.S.P. museum.
       (e) Additional Terms and Conditions.--The Secretary may 
     require such additional terms and conditions in connection 
     with a conveyance under this section as the Secretary 
     considers appropriate to protect the interests of the United 
     States.

     SEC. 1067. REWARDS FOR ASSISTANCE IN COMBATING TERRORISM.

       (a) Authority.--Chapter 3 of title 10, United States Code, 
     is amended by inserting after section 127a the following new 
     section:

     ``Sec. 127b. Rewards for assistance in combating terrorism

       ``(a) Authority.--The Secretary of Defense may pay a 
     monetary reward to a person for providing United States 
     personnel with information or nonlethal assistance that is 
     beneficial to--
       ``(1) an operation of the armed forces conducted outside 
     the United States against international terrorism; or
       ``(2) force protection of the armed forces.
       ``(b) Maximum Amount.--The amount of a reward paid to a 
     recipient under this section may not exceed $200,000.
       ``(c) Delegation to Commander of Combatant Command.--(1) 
     The Secretary of Defense may delegate to the commander of a 
     combatant command authority to pay a reward under this 
     section in an amount not in excess of $50,000.
       ``(2) A commander to whom authority to pay rewards is 
     delegated under paragraph (1) may further delegate authority 
     to pay a reward under this section in an amount not in excess 
     of $2,500.
       ``(c) Coordination.--(1) The Secretary of Defense, in 
     consultation with the Secretary of State and the Attorney 
     General, shall prescribe policies and procedures for offering 
     and paying rewards under this section, and otherwise for 
     administering the authority under this section, that ensure 
     that the payment of a reward under this section does not 
     duplicate or interfere with the payment of a reward 
     authorized by the Secretary of State or the Attorney General.
       ``(2) The Secretary of Defense shall coordinate with the 
     Secretary of State regarding any payment of a reward in 
     excess of $100,000 under this section.
       ``(d) Persons Not Eligible.--The following persons are not 
     eligible to receive an award under this section:
       ``(1) A citizen of the United States.
       ``(2) An employee of the United States.
       ``(3) An employee of a contractor of the United States.
       ``(e) Annual Report.--(1) Not later than 60 days after the 
     end of each fiscal year, the Secretary of Defense shall 
     submit to the Committees on Armed Services and the Committees 
     on Appropriations of the Senate and the House of 
     Representatives a report on the administration of the rewards 
     program during that fiscal year.
       ``(2) The report for a fiscal year shall include 
     information on the total amount expended during that fiscal 
     year to carry out this section, including--
       ``(A) a specification of the amount, if any, expended to 
     publicize the availability of rewards; and

[[Page 12193]]

       ``(B) with respect to each award paid during that fiscal 
     year--
       ``(i) the amount of the reward;
       ``(ii) the recipient of the reward; and
       ``(iii) a description of the information or assistance for 
     which the reward was paid, together with an assessment of the 
     significance of the information or assistance.
       ``(3) The Secretary may submit the report in classified 
     form if the Secretary determines that it is necessary to do 
     so.
       ``(f) Determinations by the Secretary.--A determination by 
     the Secretary under this section shall be final and 
     conclusive and shall not be subject to judicial review.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of such chapter is amended by inserting after the 
     item relating to section 127a the following new item:

``127b. Rewards for assistance in combating terrorism.''.

     SEC. 1068. PROVISION OF SPACE AND SERVICES TO MILITARY 
                   WELFARE SOCIETIES.

       (a) Authority To Provide Space and Services.--Chapter 152 
     of title 10, United States Code, is amended by adding at the 
     end the following new section:

     ``Sec. 2566. Space and services: provision to military 
       welfare societies

       ``(a) Authority To Provide Space and Services.--The 
     Secretary of a military department may provide, without 
     charge, space and services under the jurisdiction of that 
     Secretary to a military welfare society.
       ``(b) Definitions.--In this section:
       ``(1) The term `military welfare society' means the 
     following:
       ``(A) The Army Emergency Relief Society.
       ``(B) The Navy-Marine Corps Relief Society.
       ``(C) The Air Force Aid Society, Inc.
       ``(2) The term `services' includes lighting, heating, 
     cooling, electricity, office furniture, office machines and 
     equipment, telephone and other information technology 
     services (including installation of lines and equipment, 
     connectivity, and other associated services), and security 
     systems (including installation and other associated 
     expenses).''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of such chapter is amended by adding at the end the 
     following new item:

``2566. Space and services: provision to military welfare societies.''.

     SEC. 1069. COMMENDATION OF MILITARY CHAPLAINS.

       (a) Findings.--Congress finds the following:
       (1) Military chaplains have served with those who fought 
     for the cause of freedom since the founding of the Nation.
       (2) Military chaplains and religious support personnel of 
     the Armed Forces have served with distinction as uniformed 
     members of the Armed Forces in support of the Nation's 
     defense missions during every conflict in the history of the 
     United States.
       (3) 400 United States military chaplains have died in 
     combat, some as a result of direct fire while ministering to 
     fallen Americans, while others made the ultimate sacrifice as 
     a prisoner of war.
       (4) Military chaplains currently serve in humanitarian 
     operations, rotational deployments, and in the war on 
     terrorism.
       (5) Religious organizations make up the very fabric of 
     religious diversity and represent unparalleled levels of 
     freedom of conscience, speech, and worship that set the 
     United States apart from any other nation on Earth.
       (6) Religious organizations have richly blessed the 
     uniformed services by sending clergy to comfort and encourage 
     all persons of faith in the Armed Forces.
       (7) During the sinking of the USS Dorchester in February 
     1943 during World War II, four chaplains (Reverend Fox, 
     Reverend Poling, Father Washington, and Rabbi Goode) gave 
     their lives so that others might live.
       (8) All military chaplains aid and assist members of the 
     Armed Forces and their family members with the challenging 
     issues of today's world.
       (9) The current war against terrorism has brought to the 
     shores of the United States new threats and concerns that 
     strike at the beliefs and emotions of Americans.
       (10) Military chaplains must, as never before, deal with 
     the spiritual well-being of the members of the Armed Forces 
     and their families.
       (b) Commendation.--Congress, on behalf of the Nation, 
     expresses its appreciation for the outstanding contribution 
     that all military chaplains make to the members of the Armed 
     Forces and their families.
       (c) Presidential Proclamation.--The President is authorized 
     and requested to issue a proclamation calling on the people 
     of the United States to recognize the distinguished service 
     of the Nation's military chaplains.

     SEC. 1070. GRANT OF FEDERAL CHARTER TO KOREAN WAR VETERANS 
                   ASSOCIATION, INCORPORATED.

       (a) Grant of Charter.--Part B of subtitle II of title 36, 
     United States Code, is amended--
       (1) by striking the following:

                   ``CHAPTER 1201--[RESERVED]''; and

       (2) by inserting the following:

     ``CHAPTER 1201--KOREAN WAR VETERANS ASSOCIATION, INCORPORATED

``Sec.
``120101. Organization.
``120102. Purposes.
``120103. Membership.
``120104. Governing body.
``120105. Powers.
``120106. Restrictions.
``120107. Duty to maintain corporate and tax-exempt status.
``120108. Records and inspection.
``120109. Service of process.
``120110. Liability for acts of officers and agents.
``120111. Annual report.

     ``Sec. 120101. Organization

       ``(a) Federal Charter.--Korean War Veterans Association, 
     Incorporated (in this chapter, the `corporation'), 
     incorporated in the State of New York, is a federally 
     chartered corporation.
       ``(b) Expiration of Charter.--If the corporation does not 
     comply with the provisions of this chapter, the charter 
     granted by subsection (a) expires.

     ``Sec. 120102. Purposes

       ``The purposes of the corporation are as provided in its 
     articles of incorporation and include--
       ``(1) organizing, promoting, and maintaining for benevolent 
     and charitable purposes an association of persons who have 
     seen honorable service in the Armed Forces during the Korean 
     War, and of certain other persons;
       ``(2) providing a means of contact and communication among 
     members of the corporation;
       ``(3) promoting the establishment of, and establishing, war 
     and other memorials commemorative of persons who served in 
     the Armed Forces during the Korean War; and
       ``(4) aiding needy members of the corporation, their wives 
     and children, and the widows and children of persons who were 
     members of the corporation at the time of their death.

     ``Sec. 120103. Membership

       ``Eligibility for membership in the corporation, and the 
     rights and privileges of members of the corporation, are as 
     provided in the bylaws of the corporation.

     ``Sec. 120104. Governing body

       ``(a) Board of Directors.--The board of directors of the 
     corporation, and the responsibilities of the board of 
     directors, are as provided in the articles of incorporation 
     of the corporation.
       ``(b) Officers.--The officers of the corporation, and the 
     election of the officers of the corporation, are as provided 
     in the articles of incorporation.

     ``Sec. 120105. Powers

       ``The corporation has only the powers provided in its 
     bylaws and articles of incorporation filed in each State in 
     which it is incorporated.

     ``Sec. 120106. Restrictions

       ``(a) Stock and Dividends.--The corporation may not issue 
     stock or declare or pay a dividend.
       ``(b) Political Activities.--The corporation, or a director 
     or officer of the corporation as such, may not contribute to, 
     support, or participate in any political activity or in any 
     manner attempt to influence legislation.
       ``(c) Loan.--The corporation may not make a loan to a 
     director, officer, or employee of the corporation.
       ``(d) Claim of Governmental Approval or Authority.--The 
     corporation may not claim congressional approval, or the 
     authority of the United States, for any of its activities.

     ``Sec. 120107. Duty to maintain corporate and tax-exempt 
       status

       ``(a) Corporate Status.--The corporation shall maintain its 
     status as a corporation incorporated under the laws of the 
     State of New York.
       ``(b) Tax-Exempt Status.--The corporation shall maintain 
     its status as an organization exempt from taxation under the 
     Internal Revenue Code of 1986 (26 U.S.C. 1 et seq.).

     ``Sec. 120108. Records and inspection

       ``(a) Records.--The corporation shall keep--
       ``(1) correct and complete records of account;
       ``(2) minutes of the proceedings of its members, board of 
     directors, and committees having any of the authority of its 
     board of directors; and
       ``(3) at its principal office, a record of the names and 
     addresses of its members entitled to vote on matters relating 
     to the corporation.
       ``(b) Inspection.--A member entitled to vote on matters 
     relating to the corporation, or an agent or attorney of the 
     member, may inspect the records of the corporation for any 
     proper purpose, at any reasonable time.

     ``Sec. 120109. Service of process

       ``The corporation shall have a designated agent in the 
     District of Columbia to receive service of process for the 
     corporation. Notice to or service on the agent is notice to 
     or service on the Corporation.

     ``Sec. 120110. Liability for acts of officers and agents

       ``The corporation is liable for the acts of its officers 
     and agents acting within the scope of their authority.

[[Page 12194]]



     ``Sec. 120111. Annual report

       ``The corporation shall submit an annual report to Congress 
     on the activities of the corporation during the preceding 
     fiscal year. The report shall be submitted at the same time 
     as the report of the audit required by section 10101 of this 
     title. The report may not be printed as a public document.''.
       (b) Clerical Amendment.--The table of chapters at the 
     beginning of subtitle II of title 36, United States Code, is 
     amended by striking the item relating to chapter 1201 and 
     inserting the following new item:

``1201. Korean War Veterans Association, Incorporated.....120101''.....

       TITLE XI--DEPARTMENT OF DEFENSE CIVILIAN PERSONNEL POLICY

     SEC. 1101. EXTENSION OF AUTHORITY TO PAY SEVERANCE PAY IN A 
                   LUMP SUM.

       Section 5595(i)(4) of title 5, United States Code, is 
     amended by striking ``October 1, 2003'' and inserting 
     ``October 1, 2006''.

     SEC. 1102. EXTENSION OF VOLUNTARY SEPARATION INCENTIVE PAY 
                   AUTHORITY.

       Section 5597(e) of title 5, United States Code, is amended 
     by striking ``September 30, 2003'' and inserting ``September 
     30, 2006''.

     SEC. 1103. EXTENSION OF COST-SHARING AUTHORITY FOR CONTINUED 
                   FEHBP COVERAGE OF CERTAIN PERSONS AFTER 
                   SEPARATION FROM EMPLOYMENT.

       Section 8905a(d)(4)(B) of title 5, United States Code, is 
     amended--
       (1) by striking ``October 1, 2003'' both places it appears 
     and inserting ``October 1, 2006''; and
       (2) by striking ``February 1, 2004'' in clause (ii) and 
     inserting ``February 1, 2007''.

     SEC. 1104. ELIGIBILITY OF NONAPPROPRIATED FUNDS EMPLOYEES TO 
                   PARTICIPATE IN THE FEDERAL EMPLOYEES LONG-TERM 
                   CARE INSURANCE PROGRAM.

       Section 9001(1) of title 5, United States Code, is 
     amended--
       (1) by striking ``and'' at the end of subparagraph (B);
       (2) by striking the comma at the end of subparagraph (C) 
     and inserting ``; and''; and
       (3) by inserting after subparagraph (C) the following new 
     subparagraph:
       ``(D) an employee paid from nonappropriated funds referred 
     to in section 2105(c) of this title;''.

     SEC. 1105. INCREASED MAXIMUM PERIOD OF APPOINTMENT UNDER THE 
                   EXPERIMENTAL PERSONNEL PROGRAM FOR SCIENTIFIC 
                   AND TECHNICAL PERSONNEL.

       Section 1101(c)(1) of the Strom Thurmond National Defense 
     Authorization Act for Fiscal Year 1999 (Public Law 105-261; 
     112 Stat. 2140; 5 U.S.C. 3104 note) is amended by striking 
     ``4 years'' and inserting ``5 years''.

     SEC. 1106. QUALIFICATION REQUIREMENTS FOR EMPLOYMENT IN 
                   DEPARTMENT OF DEFENSE PROFESSIONAL ACCOUNTING 
                   POSITIONS.

       (a) Professional Certification.--The Secretary of Defense 
     may prescribe regulations that require a person employed in a 
     professional accounting position within the Department of 
     Defense to be a certified public accountant and that apply 
     the requirement to all such positions or to selected 
     positions, as the Secretary considers appropriate.
       (b) Waivers and Exemptions.--(1) The Secretary may include 
     in the regulations imposing a requirement under subsection 
     (a), as the Secretary considers appropriate--
       (A) any exemption from the requirement; and
       (B) authority to waive the requirement.
       (2) The Secretary shall include in the regulations an 
     exemption for persons employed in positions covered by the 
     requirement before the date of the enactment of this Act.
       (c) Exclusive Authority.--No requirement imposed under 
     subsection (a), and no waiver or exemption provided in the 
     regulations pursuant to subsection (b), shall be subject to 
     review or approval by the Office of Personnel Management.
       (d) Definition.--For the purposes of this section, the term 
     ``professional accounting position'' means a position in the 
     GS-510, GS-511, or GS-505 series for which professional 
     accounting duties are prescribed.
       (e) Effective Date.--This section shall take effect 120 
     days after the date of the enactment of this Act.

     SEC. 1107. HOUSING BENEFITS FOR UNACCOMPANIED TEACHERS 
                   REQUIRED TO LIVE AT GUANTANAMO BAY NAVAL 
                   STATION, CUBA.

       Section 7(b) of the Defense Department Overseas Teachers 
     Pay and Personnel Practices Act (20 U.S.C. 905(b)) is 
     amended--
       (1) by inserting ``(1)'' after ``(b)''; and
       (2) by adding at the end the following new paragraph:
       ``(2)(A) A teacher assigned to teach at Guantanamo Bay 
     Naval Station, Cuba, who is not accompanied at such station 
     by any dependent--
       ``(i) shall be offered for lease any available military 
     family housing at such station that is suitable for occupancy 
     by the teacher and is not needed to house members of the 
     armed forces and dependents accompanying them or other 
     civilian personnel and any dependents accompanying them; and
       ``(ii) for any period for which such housing is leased to 
     the teacher, shall receive a quarters allowance in the amount 
     determined under paragraph (1).
       ``(B) A teacher is entitled to the quarters allowance in 
     accordance with subparagraph (A)(ii) without regard to 
     whether other Government furnished quarters are available for 
     occupancy by the teacher without charge to the teacher.''.

              TITLE XII--MATTERS RELATING TO OTHER NATIONS

  Subtitle A--Cooperative Threat Reduction With States of the Former 
                              Soviet Union

     SEC. 1201. SPECIFICATION OF COOPERATIVE THREAT REDUCTION 
                   PROGRAMS AND FUNDS.

       (a) Specification of CTR Programs.--For purposes of section 
     301 and other provisions of this Act, Cooperative Threat 
     Reduction programs are the programs specified in section 
     1501(b) of the National Defense Authorization Act for Fiscal 
     Year 1997 (Public Law 104-201; 110 Stat. 2731; 50 U.S.C. 2362 
     note).
       (b) Fiscal Year 2003 Cooperative Threat Reduction Funds 
     Defined.--As used in this title, the term ``fiscal year 2003 
     Cooperative Threat Reduction funds'' means the funds 
     appropriated pursuant to the authorization of appropriations 
     in section 301 for Cooperative Threat Reduction programs.
       (c) Availability of Funds.--Funds appropriated pursuant to 
     the authorization of appropriations in section 301 for 
     Cooperative Threat Reduction programs shall be available for 
     obligation for three fiscal years.

     SEC. 1202. FUNDING ALLOCATIONS.

       (a) Funding for Specific Purposes.--Of the $416,700,000 
     authorized to be appropriated to the Department of Defense 
     for fiscal year 2003 in section 301(a)(23) for Cooperative 
     Threat Reduction programs, not more than the following 
     amounts may be obligated for the purposes specified:
       (1) For strategic offensive arms elimination in Russia, 
     $70,500,000.
       (2) For strategic nuclear arms elimination in Ukraine, 
     $6,500,000.
       (3) For weapons of mass destruction infrastructure 
     elimination in Ukraine, $8,800,000.
       (4) For weapons of mass destruction infrastructure 
     elimination in Kazakhstan, $9,000,000.
       (5) For weapons transportation security in Russia, 
     $19,700,000.
       (6) For weapons storage security in Russia, $40,000,000.
       (7) For weapons of mass destruction proliferation 
     prevention in the former Soviet Union, $40,000,000.
       (8) For biological weapons proliferation prevention 
     activities in the former Soviet Union, $55,000,000.
       (9) For chemical weapons destruction in Russia, 
     $133,600,000.
       (10) For activities designated as Other Assessments/
     Administrative Support, $14,700,000.
       (11) For defense and military contacts, $18,900,000.
       (b) Report on Obligation or Expenditure of Funds for Other 
     Purposes.--No fiscal year 2003 Cooperative Threat Reduction 
     funds may be obligated or expended for a purpose other than a 
     purpose listed in paragraphs (1) through (11) of subsection 
     (a) until 30 days after the date that the Secretary of 
     Defense submits to Congress a report on the purpose for which 
     the funds will be obligated or expended and the amount of 
     funds to be obligated or expended. Nothing in the preceding 
     sentence shall be construed as authorizing the obligation or 
     expenditure of fiscal year 2003 Cooperative Threat Reduction 
     funds for a purpose for which the obligation or expenditure 
     of such funds is specifically prohibited under this title or 
     any other provision of law.
       (c) Limited Authority To Vary Individual Amounts.--(1) 
     Subject to paragraph (2), in any case in which the Secretary 
     of Defense determines that it is necessary to do so in the 
     national interest, the Secretary may obligate amounts 
     appropriated for fiscal year 2003 for a purpose listed in any 
     of the paragraphs in subsection (a) in excess of the amount 
     specifically authorized for such purpose.
       (2) An obligation of funds for a purpose stated in any of 
     the paragraphs in subsection (a) in excess of the specific 
     amount authorized for such purpose may be made using the 
     authority provided in paragraph (1) only after--
       (A) the Secretary submits to Congress notification of the 
     intent to do so together with a complete discussion of the 
     justification for doing so; and
       (B) 15 days have elapsed following the date of the 
     notification.

     SEC. 1203. AUTHORIZATION OF USE OF COOPERATIVE THREAT 
                   REDUCTION FUNDS FOR PROJECTS AND ACTIVITIES 
                   OUTSIDE THE FORMER SOVIET UNION.

       (a) Cooperative Threat Reduction Programs and Funds.--For 
     purposes of this section:
       (1) Cooperative Threat Reduction programs are--
       (A) the programs specified in section 1501(b) of the 
     National Defense Authorization Act for Fiscal Year 1997 
     (Public Law 104-201; 110 Stat. 2731; 50 U.S.C. 2362 note); 
     and
       (B) any other similar programs, as designated by the 
     Secretary of Defense, to address critical emerging 
     proliferation threats in the states of the former Soviet 
     Union that jeopardize United States national security.
       (2) Cooperative Threat Reduction funds, for a fiscal year, 
     are the funds authorized to be

[[Page 12195]]

     appropriated for Cooperative Threat Reduction programs for 
     that fiscal year.
       (b) Authorization of Use of CTR Funds for Threat Reduction 
     Activities Outside the Former Soviet Union.--(1) 
     Notwithstanding any other provision of law and subject to the 
     succeeding provisions of this section, the Secretary of 
     Defense may obligate and expend Cooperative Threat Reduction 
     funds for fiscal year 2003, or Cooperative Threat Reduction 
     funds for a fiscal year before fiscal year 2003 that remain 
     available for obligation as of the date of the enactment of 
     this Act, for proliferation threat reduction projects and 
     activities outside the states of the former Soviet Union if 
     the Secretary determines that such projects and activities 
     will--
       (A) assist the United States in the resolution of critical 
     emerging proliferation threats; or
       (B) permit the United States to take advantage of 
     opportunities to achieve long-standing United States 
     nonproliferation goals.
       (2) The amount that may be obligated under paragraph (1) in 
     any fiscal year for projects and activities described in that 
     paragraph may not exceed $50,000,000.
       (c) Authorized Uses of Funds.--The authority under 
     subsection (b) to obligate and expend Cooperative Threat 
     Reduction funds for a project or activity includes authority 
     to provide equipment, goods, and services for the project or 
     activity, but does not include authority to provide cash 
     directly to the project or activity.
       (d) Source and Replacement of Funds Used.--(1) The 
     Secretary shall, to the maximum extent practicable, ensure 
     that funds for projects and activities under subsection (b) 
     are derived from funds that would otherwise be obligated for 
     a range of Cooperative Threat Reduction programs, so that no 
     particular Cooperative Threat Reduction program is the 
     exclusive or predominant source of funds for such projects 
     and activities.
       (2) If the Secretary obligates Cooperative Threat Reduction 
     funds under subsection (b) in a fiscal year, the first budget 
     of the President that is submitted under section 1105(a) of 
     title 31, United States Code, after such fiscal year shall 
     set forth, in addition to any other amounts requested for 
     Cooperative Threat Reduction programs in the fiscal year 
     covered by such budget, a request for Cooperative Threat 
     Reduction funds in the fiscal year covered by such budget in 
     an amount equal to the amount so obligated. The request shall 
     also set forth the Cooperative Threat Reduction program or 
     programs for which such funds would otherwise have been 
     obligated, but for obligation under subsection (b).
       (3) Amounts authorized to be appropriated pursuant to a 
     request under paragraph (2) shall be available for the 
     Cooperative Threat Reduction program or programs set forth in 
     the request under the second sentence of that paragraph.
       (e) Limitation on Obligation of Funds.--Except as provided 
     in subsection (f), the Secretary may not obligate and expend 
     Cooperative Threat Reduction funds for a project or activity 
     under subsection (b) until 30 days after the date on which 
     the Secretary submits to the congressional defense committees 
     a report on the purpose for which the funds will be obligated 
     and expended, and the amount of the funds to be obligated and 
     expended.
       (f) Exception.--(1) The Secretary may obligate and expend 
     Cooperative Threat Reduction funds for a project or activity 
     under subsection (b) without regard to subsection (e) if the 
     Secretary determines that a critical emerging proliferation 
     threat warrants immediate obligation and expenditure of such 
     funds.
       (2) Not later than 72 hours after first obligating funds 
     for a project or activity under paragraph (1), the Secretary 
     shall submit to the congressional defense committees a report 
     containing a detailed justification for the obligation of 
     funds. The report on a project or activity shall include the 
     following:
       (A) A description of the critical emerging proliferation 
     threat to be addressed, or the long-standing United States 
     nonproliferation goal to be achieved, by the project or 
     activity.
       (B) A description of the agreement, if any, under which the 
     funds will be used, including whether or not the agreement 
     provides that the funds will not be used for purposes 
     contrary to the national security interests of the United 
     States.
       (C) A description of the contracting process, if any, that 
     will be used in the implementation of the project or 
     activity.
       (D) An analysis of the effect of the obligation of funds 
     for the project or activity on ongoing Cooperative Threat 
     Reduction programs.
       (E) An analysis of the need for additional or follow-up 
     threat reduction assistance, including whether or not the 
     need for such assistance justifies the establishment of a new 
     cooperative threat reduction program or programs to account 
     for such assistance.
       (F) A description of the mechanisms to be used by the 
     Secretary to assure that proper audits and examinations of 
     the project or activity are carried out.
       (g) Report on Establishment of New Cooperative Threat 
     Reduction Programs.--(1) If the Secretary employs the 
     authority in subsection (b) in any two fiscal years, the 
     Secretary shall submit to Congress a report on the 
     advisability of establishing one or more new cooperative 
     threat reduction programs to account for projects and 
     activities funded using such authority.
       (2) The report required by paragraph (1) shall be submitted 
     along with the budget justification materials in support of 
     the Department of Defense budget (as submitted with the 
     budget of the President under section 1105(a) of title 31, 
     United States Code) in the first budget submitted after the 
     end of the two consecutive fiscal years referred to in that 
     paragraph.

     SEC. 1204. WAIVER OF LIMITATIONS ON ASSISTANCE UNDER PROGRAMS 
                   TO FACILITATE COOPERATIVE THREAT REDUCTION AND 
                   NONPROLIFERATION.

       (a) Assistance Under Cooperative Threat Reduction Act of 
     1993.--Section 1203 of the Cooperative Threat Reduction Act 
     of 1993 (title XII of Public Law 103-160; 107 Stat. 1778; 22 
     U.S.C. 5952) is amended by adding at the end the following 
     new subsection:
       ``(e) Waiver of Restrictions.--(1) The restrictions in 
     subsection (d) shall cease to apply to a state for a year if 
     the President submits to the Speaker of the House of 
     Representative and the President pro tempore of the Senate a 
     written certification that the waiver of such restrictions in 
     such year is important to the national security interests of 
     the United States, together with a report containing the 
     following:
       ``(A) A description of the activity or activities that 
     prevent the President from certifying that the state is 
     committed to the matters set forth in subsection (d) in such 
     year as otherwise provided for in that subsection.
       ``(B) A description of the strategy, plan, or policy of the 
     President for promoting the commitment of the state to such 
     matters, notwithstanding the waiver.
       ``(2) The matter included in the report under paragraph (1) 
     shall be submitted in unclassified form, but may include a 
     classified annex.''.
       (b) Administration of Restrictions on Assistance.--
     Subsection (d) of that section is amended--
       (1) by striking ``any year'' and inserting ``any fiscal 
     year''; and
       (2) by striking ``that year'' and inserting ``such fiscal 
     year''.
       (c) Eligibility Requirements under FREEDOM Support Act.--
     Section 502 of the FREEDOM Support Act (Public Law 102-511; 
     106 Stat. 3338; 22 U.S.C. 5852) is amended--
       (1) by striking ``Funds'' and inserting ``(a) 
     Eligibility.--Except as provided in subsection (b), funds''; 
     and
       (2) by adding at the end the following new subsection:
       ``(b) Waiver of Eligibility Requirements.--(1) Funds may be 
     obligated for a fiscal year under subsection (a) for 
     assistance or other programs and activities for an 
     independent state of the former Soviet Union that does not 
     meet one or more of the requirements for eligibility under 
     paragraphs (1) through (4) of that subsection if the 
     President certifies in writing to the Congress that the 
     waiver of such requirements in such fiscal year is important 
     to the national security interests of the United States.
       ``(2) At the time of the exercise of the authority in 
     paragraph (1) with respect to an independent state of the 
     former Soviet Union for a fiscal year, the President shall 
     submit to the congressional defense committees a report on 
     the following:
       ``(A) A description of the activity or activities that 
     prevent the President from certifying that the state is 
     committed to each matter in subsection (a) in such fiscal 
     year to which the waiver under paragraph (1) applies.
       ``(B) A description of the strategy, plan, or policy of the 
     President for promoting the commitment of the state to each 
     such matter, notwithstanding the waiver.
       ``(3) In this subsection, the term `congressional defense 
     committees' means--
       ``(A) the Committee on Armed Services and the Committee on 
     Appropriations of the Senate; and
       ``(B) the Committee on Armed Services and the Committee on 
     Appropriations of the House of Representatives.''.
       (d) Effective Date.--The amendments made by this section 
     shall take effect on October 1, 2002.

     SEC. 1205. RUSSIAN TACTICAL NUCLEAR WEAPONS.

       (a) Findings.--The Congress makes the following findings:
       (1) Al Qaeda and other terrorist organizations, in addition 
     to rogue states, are known to be working to acquire weapons 
     of mass destruction, and particularly nuclear warheads.
       (2) The largest and least secure potential source of 
     nuclear warheads for terrorists or rogue states is Russia's 
     arsenal of nonstrategic or ``tactical'' nuclear warheads, 
     which according to unclassified estimates numbers from 7,000 
     to 12,000 warheads. Security at Russian nuclear weapon 
     storage sites is insufficient, and tactical nuclear warheads 
     are more vulnerable to terrorist or rogue state acquisition 
     due to their smaller size, greater portability, and greater 
     numbers compared to Russian strategic nuclear weapons.

[[Page 12196]]

       (3) Russia's tactical nuclear warheads were not covered by 
     the START treaties or the recent Moscow Treaty. Russia is not 
     legally bound to reduce its tactical nuclear stockpile and 
     the United States has no inspection rights regarding Russia's 
     tactical nuclear arsenal.
       (b) Sense of the Senate.--(1) One of the most likely 
     nuclear weapon attack scenarios against the United States 
     would involve detonation of a stolen Russian tactical nuclear 
     warhead smuggled into the country.
       (2) It is a top national security priority of the United 
     States to accelerate efforts to account for, secure, and 
     reduce Russia's stockpile of tactical nuclear warheads and 
     associated fissile material.
       (3) This imminent threat warrants a special 
     nonproliferation initiative.
       (c) Report.--Not later than 30 days after enactment of this 
     Act, the President shall report to Congress on efforts to 
     reduce the particular threats associated with Russia's 
     tactical nuclear arsenal and the outlines of a special 
     initiative related to reducing the threat from Russia's 
     tactical nuclear stockpile.

                       Subtitle B--Other Matters

     SEC. 1211. ADMINISTRATIVE SUPPORT AND SERVICES FOR COALITION 
                   LIAISON OFFICERS.

       (a) Authority.--Chapter 6 of title 10, United States Code, 
     is amended by adding at the end the following new section:

     ``Sec. 169. Administrative support and services for coalition 
       liaison officers

       ``(a) Authority.--The Secretary of Defense may provide 
     administrative services and support for the performance of 
     duties by any liaison officer of another nation involved in a 
     coalition while the liaison officer is assigned temporarily 
     to the headquarters of a combatant command, component 
     command, or subordinate operational command of the United 
     States in connection with the planning for or conduct of a 
     coalition operation.
       ``(b) Travel, Subsistence, and Other Expenses.--The 
     Secretary may pay the travel, subsistence, and similar 
     personal expenses of a liaison officer of a developing 
     country in connection with the assignment of that liaison 
     officer to the headquarters of a combatant command as 
     described in subsection (a) if the assignment is requested by 
     the commander of the combatant command.
       ``(c) Reimbursement.--To the extent that the Secretary 
     determines appropriate, the Secretary may provide the 
     services and support authorized under subsections (a) and (b) 
     with or without reimbursement from (or on behalf of) the 
     recipients.
       ``(d) Definitions.--In this section:
       ``(1) The term `administrative services and support' 
     includes base or installation support services, office space, 
     utilities, copying services, fire and police protection, and 
     computer support.
       ``(2) The term `coalition' means an ad hoc arrangement 
     between or among the United States and one or more other 
     nations for common action.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of such chapter 6 is amended by adding at the end 
     the following new item:

``169. Administrative support and services for coalition liaison 
              officers.''.

     SEC. 1212. USE OF WARSAW INITIATIVE FUNDS FOR TRAVEL OF 
                   OFFICIALS FROM PARTNER COUNTRIES.

       Section 1051(b) of title 10, United States Code, is 
     amended--
       (1) in paragraph (1), by striking ``paragraph (2)'' and 
     inserting ``paragraphs (2) and (3)'';
       (2) by redesignating paragraph (3) as paragraph (4); and
       (3) by inserting after paragraph (2) the following new 
     paragraph (3):
       ``(3) In the case of defense personnel of a country that is 
     participating in the Partnership for Peace program of the 
     North Atlantic Treaty Organization (NATO), expenses 
     authorized to be paid under subsection (a) may be paid in 
     connection with travel of personnel to the territory of any 
     of the countries participating in the Partnership for Peace 
     program or of any of the NATO member countries.''.

     SEC. 1213. SUPPORT OF UNITED NATIONS-SPONSORED EFFORTS TO 
                   INSPECT AND MONITOR IRAQI WEAPONS ACTIVITIES.

       (a) Limitation on Amount of Assistance in Fiscal Year 
     2003.--The total amount of the assistance for fiscal year 
     2003 that is provided by the Secretary of Defense under 
     section 1505 of the Weapons of Mass Destruction Control Act 
     of 1992 (22 U.S.C. 5859a) as activities of the Department of 
     Defense in support of activities under that Act may not 
     exceed $15,000,000.
       (b) Extension of Authority To Provide Assistance.--
     Subsection (f) of section 1505 of the Weapons of Mass 
     Destruction Control Act of 1992 (22 U.S.C. 5859a) is amended 
     by striking ``2002'' and inserting ``2003''.

     SEC. 1214. ARCTIC AND WESTERN PACIFIC ENVIRONMENTAL 
                   COOPERATION PROGRAM.

       (a) In General.--(1) Subchapter II of chapter 138 of title 
     10, United States Code, is amended by adding at the end the 
     following new section:

     ``Sec. 2350m. Arctic and Western Pacific Environmental 
       Cooperation Program

       ``(a) Authority To Conduct Program.--The Secretary of 
     Defense may, with the concurrence of the Secretary of State, 
     conduct on a cooperative basis with countries located in the 
     Arctic and Western Pacific regions a program of environmental 
     activities provided for in subsection (b) in such regions. 
     The program shall be known as the `Arctic and Western Pacific 
     Environmental Cooperation Program'.
       ``(b) Program Activities.--(1) Except as provided in 
     paragraph (2), activities under the program under subsection 
     (a) may include cooperation and assistance on environmental 
     matters in the Arctic and Western Pacific regions among 
     elements of the Department of Defense and the military 
     departments or agencies of countries located in such regions.
       ``(2) Activities under the program may not include 
     activities relating to the following:
       ``(A) The conduct of any peacekeeping exercise or other 
     peacekeeping-related activity with the Russian Federation.
       ``(B) The provision of housing.
       ``(C) The provision of assistance to promote environmental 
     restoration.
       ``(D) The provision of assistance to promote job 
     retraining.
       ``(c) Limitation on Funding for Projects Other than 
     Radiological Projects.--Not more than 20 percent of the 
     amount made available for the program under subsection (a) in 
     any fiscal year may be available for projects under the 
     program other than projects on radiological matters.
       ``(d) Annual Report.--(1) Not later than March 1, 2003, and 
     each year thereafter, the Secretary of Defense shall submit 
     to Congress a report on activities under the program under 
     subsection (a) during the preceding fiscal year.
       ``(2) The report on the program for a fiscal year under 
     paragraph (1) shall include the following:
       ``(A) A description of the activities carried out under the 
     program during that fiscal year, including a separate 
     description of each project under the program.
       ``(B) A statement of the amounts obligated and expended for 
     the program during that fiscal year, set forth in aggregate 
     and by project.
       ``(C) A statement of the life cycle costs of each project, 
     including the life cycle costs of such project as of the end 
     of that fiscal year and an estimate of the total life cycle 
     costs of such project upon completion of such project.
       ``(D) A statement of the participants in the activities 
     carried out under the program during that fiscal year, 
     including the elements of the Department of Defense and the 
     military departments or agencies of other countries.
       ``(E) A description of the contributions of the military 
     departments and agencies of other countries to the activities 
     carried out under the program during that fiscal year, 
     including any financial or other contributions to such 
     activities.''.
       (2) The table of sections at the beginning of that 
     subchapter is amended by adding at the end the following new 
     item:

``2350m. Arctic and Western Pacific Environmental Cooperation 
              Program.''.

       (b) Repeal of Superseded Authority on Arctic Military 
     Cooperation Program.--Section 327 of the Strom Thurmond 
     National Defense Authorization Act for Fiscal Year 1999 
     (Public Law 105-261; 112 Stat. 1965) is repealed.

     SEC. 1215. DEPARTMENT OF DEFENSE HIV/AIDS PREVENTION 
                   ASSISTANCE PROGRAM.

       (a) Expansion of Program.--The Secretary of Defense is 
     authorized to expand, in accordance with this section, the 
     Department of Defense program of HIV/AIDS prevention 
     educational activities undertaken in connection with the 
     conduct of United States military training, exercises, and 
     humanitarian assistance in sub-Saharan African countries.
       (b) Eligible Countries.--The Secretary may carry out the 
     program in all eligible countries. A country shall be 
     eligible for activities under the program if the country--
       (1) is a country suffering a public health crisis (as 
     defined in subsection (e)); and
       (2) participates in the military-to-military contacts 
     program of the Department of Defense.
       (c) Program Activities.--The Secretary shall provide for 
     the activities under the program--
       (1) to focus, to the extent possible, on military units 
     that participate in peace keeping operations; and
       (2) to include HIV/AIDS-related voluntary counseling and 
     testing and HIV/AIDS-related surveillance.
       (d) Authorization of Appropriations.--
       (1) In general.--Of the amount authorized to be 
     appropriated by section 301(a)(22) to the Department of 
     Defense for operation and maintenance of the Defense Health 
     Program, $30,000,000 may be available for carrying out the 
     program described in subsection (a) as expanded pursuant to 
     this section.
       (2) Availability of funds.--Amounts appropriated pursuant 
     to paragraph (1) are authorized to remain available until 
     expended.
       (e) Country Suffering a Public Health Crisis Defined.--In 
     this section, the term ``country suffering a public health 
     crisis'' means a country that has rapidly rising rates of 
     incidence of HIV/AIDS or in which HIV/AIDS is causing 
     significant family, community, or societal disruption.

[[Page 12197]]



     SEC. 1216. MONITORING IMPLEMENTATION OF THE 1979 UNITED 
                   STATES-CHINA AGREEMENT ON COOPERATION IN 
                   SCIENCE AND TECHNOLOGY.

       (a) Responsibilities of the Office of Science and 
     Technology Cooperation.--The Office of Science and Technology 
     Cooperation of the Department of State shall monitor the 
     implementation of the 1979 United States-China Agreement on 
     Cooperation in Science and Technology and its protocols (in 
     this section referred to as the ``Agreement''), and keep a 
     systematic account of the protocols thereto. The Office shall 
     coordinate the activities of all agencies of the United 
     States Government that carry out cooperative activities under 
     the Agreement.
       (b) Guidelines.--The Secretary of State shall ensure that 
     all activities conducted under the Agreement and its 
     protocols comply with applicable laws and regulations 
     concerning the transfer of militarily sensitive and dual-use 
     technologies.
       (c) Reporting Requirement.--
       (1) In general.--Not later than April 1, 2004, and every 
     two years thereafter, the Secretary of State, shall submit a 
     report to Congress, in both classified and unclassified form, 
     on the implementation of the Agreement and activities 
     thereunder.
       (2) Report elements.--Each report under this subsection 
     shall provide an evaluation of the benefits of the Agreement 
     to the Chinese economy, military, and defense industrial base 
     and shall include the following:
       (A) An accounting of all activities conducted under the 
     Agreement since the previous report, and a projection of 
     activities to be undertaken in the next two years.
       (B) An estimate of the costs to the United States to 
     administer the Agreement within the period covered by the 
     report.
       (C) An assessment of how the Agreement has influenced the 
     policies of the People's Republic of China toward scientific 
     and technological cooperation with the United States.
       (D) An analysis of the involvement of Chinese nuclear 
     weapons and military missile specialists in the activities of 
     the Joint Commission.
       (E) A determination of the extent to which the activities 
     conducted under the Agreement have enhanced the military and 
     industrial base of the People's Republic of China, and an 
     assessment of the impact of projected activities for the next 
     two years, including transfers of technology, on China's 
     economic and military capabilities.
       (F) Any recommendations on improving the monitoring of the 
     activities of the Commission by the Secretaries of Defense 
     and State.
       (3) Consultation prior to submission of reports.--The 
     Secretary of State shall prepare the report in consultation 
     with the Secretaries of Commerce, Defense, and Energy, the 
     Directors of the National Science Foundation and the Federal 
     Bureau of Investigation, and the intelligence community.

            DIVISION B--MILITARY CONSTRUCTION AUTHORIZATIONS

     SEC. 2001. SHORT TITLE.

       This division may be cited as the ``Military Construction 
     Authorization Act for Fiscal Year 2003''.

                            TITLE XXI--ARMY

     SEC. 2101. AUTHORIZED ARMY CONSTRUCTION AND LAND ACQUISITION 
                   PROJECTS.

       (a) Inside the United States.--Using amounts appropriated 
     pursuant to the authorization of appropriations in section 
     2104(a)(1), the Secretary of the Army may acquire real 
     property and carry out military construction projects for the 
     installations and locations inside the United States, and in 
     the amounts, set forth in the following table:

                                         Army: Inside the United States
----------------------------------------------------------------------------------------------------------------
                      State                                 Installation or location                 Amount
----------------------------------------------------------------------------------------------------------------
Alabama.........................................  Anniston Army Depot........................         $1,900,000
                                                  Fort Rucker................................         $6,550,000
Alaska..........................................  Fort Richardson............................        $15,000,000
                                                  Fort Wainwright............................       $111,010,000
Arkansas........................................  Pine Bluff Arsenal.........................        $18,937,000
Colorado........................................  Fort Carson................................         $1,100,000
District of Columbia............................  Walter Reed Army Medical Center............        $17,500,000
Georgia.........................................  Fort Benning...............................        $74,250,000
                                                  Fort Stewart/Hunter Army Air Field.........        $26,000,000
Hawaii..........................................  Schofield Barracks.........................       $191,000,000
Kansas..........................................  Fort Leavenworth...........................         $3,150,000
                                                  Fort Riley.................................        $74,000,000
Kentucky........................................  Blue Grass Army Depot......................         $5,500,000
                                                  Fort Campbell..............................        $99,000,000
                                                  Fort Knox..................................         $6,800,000
Louisiana.......................................  Fort Polk..................................        $31,000,000
Maryland........................................  Fort Detrick...............................        $19,700,000
Missouri........................................  Fort Leonard Wood..........................        $15,500,000
New York........................................  Fort Drum..................................         $1,500,000
North Carolina..................................  Fort Bragg.................................        $85,500,000
Oklahoma........................................  Fort Sill..................................        $35,000,000
Pennsylvania....................................  Letterkenny Army Depot.....................         $1,550,000
Texas...........................................  Fort Hood..................................        $69,000,000
Washington......................................  Fort Lewis.................................        $53,000,000
                                                                                              ------------------
                                                    Total....................................       $964,697,000
----------------------------------------------------------------------------------------------------------------

       (b) Outside the United States.--Using amounts appropriated 
     pursuant to the authorization of appropriations in section 
     2104(a)(2), the Secretary of the Army may acquire real 
     property and carry out military construction projects for the 
     installations and locations outside the United States, and in 
     the amounts, set forth in the following table:

                     Army: Outside the United States
------------------------------------------------------------------------
                                     Installation or
            Country                      location             Amount
------------------------------------------------------------------------
Belgium........................  Chievres Air Base......     $13,600,000
Germany........................  Area Support Group,         $17,200,000
                                  Bamberg.
                                 Darmstadt..............      $3,500,000
                                 Grafenwoehr............     $69,866,000
                                 Heidelberg.............      $8,300,000
                                 Landstuhl..............      $2,400,000
                                 Mannheim...............     $43,350,000
                                 Schweinfurt............      $2,000,000
Italy..........................  Vicenza................     $34,700,000
Korea..........................  Camp Carroll...........     $20,000,000
                                 Camp Castle............      $6,800,000
                                 Camp Hovey.............     $25,000,000
                                 Camp Humphreys.........     $36,000,000
                                 Camp Tango.............     $12,600,000

[[Page 12198]]

 
                                 Camp Henry.............     $10,200,000
                                 K16 Airfield...........     $40,000,000
Qatar..........................  Qatar..................      $8,600,000
                                                         ---------------
                                 Total..................    $354,116,000
------------------------------------------------------------------------

       (c) Unspecified Worldwide.--Using the amounts appropriated 
     pursuant to the authorization of appropriations in section 
     2104(a)(3), the Secretary of the Army may acquire real 
     property and carry out military construction projects for the 
     installation and location, and in the amount, set forth in 
     the following table:

                       Army: Unspecified Worldwide
------------------------------------------------------------------------
            Location                   Installation           Amount
------------------------------------------------------------------------
Unspecified Worldwide..........  Unspecified Worldwide..      $4,000,000
------------------------------------------------------------------------

     SEC. 2102. FAMILY HOUSING.

       (a) Construction and Acquisition.--Using amounts 
     appropriated pursuant to the authorization of appropriations 
     in section 2104(a)(6)(A), the Secretary of the Army may 
     construct or acquire family housing units (including land 
     acquisition and supporting facilities) at the installations, 
     for the purposes, and in the amounts set forth in the 
     following table:

                                              Army: Family Housing
----------------------------------------------------------------------------------------------------------------
           State or Country              Installation or location             Purpose                 Amount
----------------------------------------------------------------------------------------------------------------
Alaska................................  Fort Wainwright..........  38 Units.....................     $17,752,000
Arizona...............................  Yuma Proving Ground......  33 Units.....................      $6,100,000
Germany...............................  Stuttgart................  1 Units......................        $990,000
Korea.................................  Yongsan..................  10 Units.....................      $3,100,000
                                                                                                 ---------------
                                          Total:.................                                    $27,942,000
----------------------------------------------------------------------------------------------------------------

       (b) Planning and Design.--Using amounts appropriated 
     pursuant to the authorization of appropriations in section 
     2104(a)(6)(A), the Secretary of the Army may carry out 
     architectural and engineering services and construction 
     design activities with respect to the construction or 
     improvement of family housing units in an amount not to 
     exceed $15,653,000.

     SEC. 2103. IMPROVEMENTS TO MILITARY FAMILY HOUSING UNITS.

       Subject to section 2825 of title 10, United States Code, 
     and using amounts appropriated pursuant to the authorization 
     of appropriations in section 2104(a)(6)(A), the Secretary of 
     the Army may improve existing military family housing units 
     in an amount not to exceed $239,751,000.

     SEC. 2104. AUTHORIZATION OF APPROPRIATIONS, ARMY.

       (a) In General.--Funds are hereby authorized to be 
     appropriated for fiscal years beginning after September 30, 
     2002, for military construction, land acquisition, and 
     military family housing functions of the Department of the 
     Army in the total amount of $3,007,345,000 as follows:
       (1) For military construction projects inside the United 
     States authorized by section 2101(a), $758,497,000.
       (2) For military construction projects outside the United 
     States authorized by section 2101(b), $354,116,000.
       (3) For military construction projects at unspecified 
     worldwide locations authorized by section 2101(c), 
     $4,000,000.
       (4) For unspecified minor construction projects authorized 
     by section 2805 of title 10, United States Code, $20,500,000.
       (5) For architectural and engineering services and 
     construction design under section 2807 of title 10, United 
     States Code, $148,864,000.
       (6) For military family housing functions:
       (A) For construction and acquisition, planning and design 
     and improvement of military family housing and facilities, 
     $283,346,000.
       (B) For support of military family housing (including the 
     functions described in section 2833 of title 10, United 
     States Code), $1,122,274,000.
       (7) For the construction of phase 4 of an ammunition 
     demilitarization facility at Pueblo Chemical Activity, 
     Colorado, authorized by section 2401(a) of the Military 
     Construction Authorization Act for Fiscal Year 1997 (division 
     B of Public Law 104-201; 110 Stat. 2775), as amended by 
     section 2406 of the Military Construction Authorization Act 
     for Fiscal Year 2000 (division B of Public Law 106-65; 113 
     Stat. 839) and section 2108 of this Act, $38,000,000.
       (8) For the construction of phase 5 of an ammunition 
     demilitarization facility at Newport Army Depot, Indiana, 
     authorized by section 2401(a) of the Military Construction 
     Authorization Act for Fiscal Year 1999 (division B of Public 
     Law 105-261; 112 Stat. 2193), $61,494,000.
       (9) For the construction of phase 5 of an ammunition 
     demilitarization facility at Aberdeen Proving Ground, 
     Maryland, authorized by section 2401(a) of the Military 
     Construction Authorization Act for Fiscal Year 1999, as 
     amended by section 2406 of the Military Construction 
     Authorization Act for Fiscal Year 2002 (division B of Public 
     Law 107-107; 115 Stat. 1299), $30,600,000.
       (10) For the construction of phase 3 of an ammunition 
     demilitarization facility at Blue Grass Army Depot, Kentucky, 
     authorized by section 2401(a) of the Military Construction 
     Authorization Act for Fiscal Year 2000 (113 Stat. 835), as 
     amended by section 2405 of the Military Construction 
     Authorization Act for Fiscal Year 2002 (115 Stat. 1298) and 
     section 2106 of this Act, $10,300,000.
       (11) For the construction of phase 3 of an ammunition 
     demilitarization support facility at Blue Grass Army Depot, 
     Kentucky, authorized by section 2401(a) of the Military 
     Construction Authorization Act for Fiscal Year 2000, 
     $8,300,000.
       (12) For the construction of phase 2 of Saddle Access Road, 
     Pohakoula Training Facility, Hawaii, authorized by section 
     2101(a) of the Military Construction Authorization Act for 
     Fiscal Year 2001 (division B of the Floyd D. Spence National 
     Defense Authorization Act for Fiscal Year 2001, as enacted 
     into law by Public Law 106-398; 114 Stat. 1654A-389), 
     $13,000,000.
       (13) For the construction of phase 3 of a barracks complex, 
     Butner Road, at Fort Bragg, North Carolina, authorized by 
     section 2101(a) of the Military Construction Authorization 
     Act for Fiscal Year 2001, $50,000,000.
       (14) For the construction of phase 2 of a barracks complex, 
     D Street, at Fort Richardson, Alaska, authorized by section 
     2101(a) of the Military Construction Authorization Act for 
     Fiscal Year 2002 (115 Stat. 1280), $21,000,000.
       (15) For the construction of phase 2 of a barracks complex, 
     Nelson Boulevard, at Fort Carson, Colorado, authorized by 
     section 2101(a) of the Military Construction Authorization 
     Act for Fiscal Year 2002, as amended by section 2105 of this 
     Act, $42,000,000.
       (16) For the construction of phase 2 of a basic combat 
     trainee complex at Fort Jackson, South Carolina, authorized 
     by section 2101(a) of the Military Construction Authorization 
     Act for Fiscal Year 2002, as amended by section 2105 of this 
     Act, $39,000,000.
       (17) For the construction of phase 2 of a barracks complex, 
     17th and B Streets at Fort Lewis, Washington, authorized by 
     section 2101(a) of the Military Construction Authorization 
     Act for Fiscal Year 2002, $50,000,000.
       (b) Limitation on Total Cost of Construction Projects.--
     Notwithstanding the cost variations authorized by section 
     2853 of title 10, United States Code, and any other cost 
     variation authorized by law, the total cost of all projects 
     carried out under section 2101 of this Act may not exceed--
       (1) the total amount authorized to be appropriated under 
     paragraphs (1), (2), and (3) of subsection (a);

[[Page 12199]]

       (2) $18,000,000 (the balance of the amount authorized under 
     section 2101(a) for construction of a barracks complex, Main 
     Post, at Fort Benning, Georgia);
       (3) $100,000,000 (the balance of the amount authorized 
     under section 2101(a) for construction of a barracks complex, 
     Capron Avenue, at Schofield Barracks, Hawaii);
       (4) $13,200,000 (the balance of the amount authorized under 
     section 2101(a) for construction of a combined arms 
     collective training facility at Fort Riley, Kansas);
       (5) $50,000,000 (the balance of the amount authorized under 
     section 2101(a) for construction of a barracks complex, Range 
     Road, at Fort Campbell, Kentucky); and
       (6) $25,000,000 (the balance of the amount authorized under 
     section 2101(a) for construction of a consolidated 
     maintenance complex at Fort Sill, Oklahoma).
       (c) Adjustment.--The total amount authorized to be 
     appropriated pursuant to paragraphs (1) through (17) of 
     subsection (a) is the sum of the amounts authorized to be 
     appropriated in such paragraphs, reduced by--
       (1) $18,596,000, which represents savings resulting from 
     adjustments to foreign currency exchange rates for military 
     construction, military family housing construction, and 
     military family housing support outside the United States; 
     and
       (2) $29,350,000, which represents adjustments for the 
     accounting of civilian personnel benefits.

     SEC. 2105. MODIFICATION OF AUTHORITY TO CARRY OUT CERTAIN 
                   FISCAL YEAR 2002 PROJECTS.

       (a) Modification.--The table in section 2101(a) of the 
     Military Construction Authorization Act for Fiscal Year 2002 
     (division B of Public Law 107-107; 115 Stat. 1281) is 
     amended--
       (1) in the item relating to Fort Carson, Colorado, by 
     striking ``$66,000,000'' in the amount column and inserting 
     ``$67,000,000''; and
       (2) in the item relating to Fort Jackson, South Carolina, 
     by striking ``$65,650,000'' in the amount column and 
     inserting ``$68,650,000''.
       (b) Conforming Amendments.--Section 2104(b) of that Act 
     (115 Stat. 1284) is amended--
       (1) in paragraph (3), by striking ``$41,000,000'' and 
     inserting ``$42,000,000''; and
       (2) in paragraph (4), by striking ``$36,000,000'' and 
     inserting ``$39,000,000''.

     SEC. 2106. MODIFICATION OF AUTHORITY TO CARRY OUT CERTAIN 
                   FISCAL YEAR 2000 PROJECT.

       (a) Modification.--The table in section 2401(a) of the 
     Military Construction Authorization Act for Fiscal Year 2000 
     (division B of Public Law 106-65; 113 Stat. 835), as amended 
     by section 2405 of the Military Construction Authorization 
     Act for Fiscal Year 2002 (division B of Public Law 107-107; 
     115 Stat. 1298), is further amended--
       (1) under the agency heading relating to Chemical 
     Demilitarization, in the item relating to Blue Grass Army 
     Depot, Kentucky, by striking ``$254,030,000'' in the amount 
     column and inserting ``$290,325,000''; and
       (2) by striking the amount identified as the total in the 
     amount column and inserting ``$748,245,000''.
       (b) Conforming Amendment.--Section 2405(b)(3) of that Act 
     (113 Stat. 839), as so amended, is further amended by 
     striking ``$231,230,000'' and inserting ``$267,525,000''.

     SEC. 2107. MODIFICATION OF AUTHORITY TO CARRY OUT CERTAIN 
                   FISCAL YEAR 1999 PROJECT.

       (a) Modification.--The table in section 2401(a) of the 
     Military Construction Authorization Act for Fiscal Year 1999 
     (division B of Public Law 105-261; 112 Stat. 2193) is 
     amended--
       (1) under the agency heading relating to Chemical 
     Demilitarization, in the item relating to Newport Army Depot, 
     Indiana, by striking ``$191,550,000'' in the amount column 
     and inserting ``$293,853,000''; and
       (2) by striking the amount identified as the total in the 
     amount column and inserting ``$829,919,000''.
       (b) Conforming Amendment.--Section 2404(b)(2) of that Act 
     (112 Stat. 2196) is amended by striking ``$162,050,000'' and 
     inserting ``$264,353,000''.

     SEC. 2108. MODIFICATION OF AUTHORITY TO CARRY OUT CERTAIN 
                   FISCAL YEAR 1997 PROJECT.

       (a) Modification.--The table in section 2401(a) of the 
     Military Construction Authorization Act for Fiscal Year 1997 
     (division B of Public Law 104-201; 110 Stat. 2775), as 
     amended by section 2406 of the Military Construction 
     Authorization Act for Fiscal Year 2000 (division B of Public 
     Law 106-65; 113 Stat. 839), is further amended--
       (1) under the agency heading relating to Chemical 
     Demilitarization Program, in the item relating to Pueblo 
     Chemical Activity, Colorado, by striking ``$203,500,000'' in 
     the amount column and inserting ``$261,000,000''; and
       (2) by striking the amount identified as the total in the 
     amount column and inserting ``$607,454,000''.
       (b) Conforming Amendment.--Section 2406(b)(2) of that Act 
     (110 Stat. 2779), as so amended, is further amended by 
     striking ``$203,500,000'' and inserting ``$261,000,000''.

     SEC. 2109. MODIFICATION OF AUTHORITY TO CARRY OUT CERTAIN 
                   FISCAL YEAR 2001 PROJECT.

       The table in section 2101(b) of the Military Construction 
     Authorization Act for Fiscal Year 2001 (division B of the 
     Floyd D. Spence National Defense Authorization Act for Fiscal 
     Year 2001, as enacted into law by Public Law 106-398; 114 
     Stat. 1654A-390) is amended by striking ``Camp Page'' in the 
     installation or location column and inserting ``Camp 
     Stanley''.

     SEC. 2110. PLANNING AND DESIGN FOR ANECHOIC CHAMBER AT WHITE 
                   SANDS MISSILE RANGE, NEW MEXICO.

       (a) Planning and Design.--The amount authorized to be 
     appropriated by section 2104(a)(5), for planning and design 
     for military construction for the Army is hereby increased by 
     $3,000,000, with the amount of the increase to be available 
     for planning and design for an anechoic chamber at White 
     Sands Missile Range, New Mexico.
       (b) Offset.--The amount authorized to be appropriated by 
     section 301(a)(1) for the Army for operation and maintenance 
     is hereby reduced by $3,000,000, with the amount of the 
     reduction to be allocated to Base Operations Support 
     (Servicewide Support).

                            TITLE XXII--NAVY

     SEC. 2201. AUTHORIZED NAVY CONSTRUCTION AND LAND ACQUISITION 
                   PROJECTS.

       (a) Inside the United States.--Using amounts appropriated 
     pursuant to the authorization of appropriations in section 
     2204(a)(1), the Secretary of the Navy may acquire real 
     property and carry out military construction projects for the 
     installations and locations inside the United States, and in 
     the amounts, set forth in the following table:

                     Navy: Inside the United States
------------------------------------------------------------------------
                                     Installation or
             State                       location             Amount
------------------------------------------------------------------------
Arizona........................  Marine Corps Air             $3,000,000
                                  Station, Yuma.
California.....................  Marine Corps Air             $8,700,000
                                  Station, Miramar.
                                 Marine Corps Air Ground     $25,770,000
                                  Combat Center,
                                  Twentynine Palms.
                                 Marine Corps Base, Camp    $104,200,000
                                  Pendleton.
                                 Naval Air Station,          $35,855,000
                                  Lemoore.
                                 Naval Air Station, San       $6,150,000
                                  Diego.
                                 Naval Air Warfare            $6,760,000
                                  Center, Point Mugu.
                                 Naval Construction           $6,957,000
                                  Battalion Center, Port
                                  Hueneme.
                                 Naval PostGraduate           $2,020,000
                                  School, Monterey.
                                 Naval Station, San          $12,210,000
                                  Diego.
Connecticut....................  Naval Submarine Base,        $7,880,000
                                  New London.
District of Columbia...........  Marine Corps Base,           $3,700,000
                                  Washington.
                                 Naval District,              $2,690,000
                                  Washington.
Florida........................  Eglin Air Force Base...      $6,350,000
                                 Naval Air Station,           $6,770,000
                                  Jacksonville.
                                 Naval Air Station,           $1,900,000
                                  Mayport.
                                 Naval Air Station,             $990,000
                                  Pensacola.
                                 Panama City............     $10,700,000
Georgia........................  Naval Submarine Base,        $1,580,000
                                  Kings Bay.
Hawaii.........................  Ford Island............     $19,400,000
                                 Marine Corps Base,           $9,500,000
                                  Hawaii.
                                 Naval Station, Pearl        $14,690,000
                                  Harbor.
Illinois.......................  Naval Training Center,      $93,190,000
                                  Great Lakes.
Maine..........................  Naval Air Station,           $9,830,000
                                  Brunswick.

[[Page 12200]]

 
                                 Naval Shipyard,             $15,200,000
                                  Portsmouth.
Maryland.......................  Andrews Air Force Base.      $9,680,000
                                 Naval Surface Warfare       $12,900,000
                                  Center, Carderock
                                  Division.
Mississippi....................  Naval Air Station,           $2,850,000
                                  Meridian.
                                 Naval Construction           $5,460,000
                                  Battalion Center,
                                  Gulfport.
                                 Naval Station,              $25,305,000
                                  Pascagoula.
New Jersey.....................  Naval Air Warfare            $5,200,000
                                  Center, Lakehurst.
                                 Naval Weapons Station,       $5,600,000
                                  Earle.
North Carolina.................  Camp LeJeune...........      $5,370,000
                                 Marine Corps Air             $6,040,000
                                  Station, Cherry Point.
                                 Marine Corps Air             $6,920,000
                                  Station, New River.
Rhode Island...................  Naval Station, Newport.      $9,030,000
South Carolina.................  Marine Corps Air            $13,700,000
                                  Station, Beaufort.
                                 Marine Corps Recruit        $10,490,000
                                  Depot, Parris Island.
                                 Naval Weapons Station,       $5,740,000
                                  Charleston.
Texas..........................  Naval Air Station,           $6,210,000
                                  Kingsville.
                                 Naval Station,               $5,480,000
                                  Ingleside.
Virginia.......................  Marine Corps Combat         $19,554,000
                                  Development Command,
                                  Quantico.
                                 Naval Amphibious Base,       $9,770,000
                                  Little Creek.
                                 Naval Air Station,           $2,260,000
                                  Norfolk.
                                 Naval Air Station,          $16,490,000
                                  Oceana.
                                 Naval Ship Yard,            $36,470,000
                                  Norfolk.
                                 Naval Station, Norfolk.    $168,965,000
                                 Naval Surface Warfare       $15,830,000
                                  Center, Dahlgren.
                                 Naval Weapons Station,      $15,020,000
                                  Yorktown.
Washington.....................  Naval Air Station,          $17,580,000
                                  Whidbey Island.
                                 Naval Magazine, Port         $4,030,000
                                  Hadlock.
                                 Naval Shipyard, Puget       $54,132,000
                                  Sound.
                                 Naval Station,              $45,870,000
                                  Bremerton.
                                 Naval Submarine Base,       $22,310,000
                                  Bangor.
                                 Strategic Weapons            $7,340,000
                                  Facility, Bangor.
Various Locations..............  Host Nation                  $1,000,000
                                  Infrastructure.
                                                         ---------------
                                   Total................    $988,588,000
------------------------------------------------------------------------

       (b) Outside the United States.--Using amounts appropriated 
     pursuant to the authorization of appropriations in section 
     2204(a)(2), the Secretary of the Navy may acquire real 
     property and carry out military construction projects for the 
     locations outside the United States, and in the amounts, set 
     forth in the following table:


                     Navy: Outside the United States
------------------------------------------------------------------------
                                     Installation or
            Country                      location             Amount
------------------------------------------------------------------------
Bahrain........................  Naval Support Activity,     $25,970,000
                                  Bahrain.
Cuba...........................  Naval Station,               $4,280,000
                                  Guantanamo.
Diego Garcia...................  Diego Garcia, Naval         $11,090,000
                                  Support Facility.
Greece.........................  Naval Support Activity,     $14,800,000
                                  Joint Headquarters
                                  Command, Larissa.
Guam...........................  Commander, United           $13,400,000
                                  States Naval Forces,
                                  Guam.
Iceland........................  Naval Air Station,          $14,920,000
                                  Keflavik.
Italy..........................  Naval Air Station,          $66,960,000
                                  Sigonella.
Spain..........................  Joint Headquarters           $2,890,000
                                  Command, Madrid.
                                 Naval Station, Rota....     $18,700,000
                                                         ---------------
                                   Total................    $173,010,000
------------------------------------------------------------------------

     SEC. 2202. FAMILY HOUSING.

       (a) Construction and Acquisition.--Using amounts 
     appropriated pursuant to the authorization of appropriations 
     in section 2204(a)(5)(A), the Secretary of the Navy may 
     construct or acquire family housing units (including land 
     acquisition and supporting facilities) at the installations, 
     for the purposes, and in the amounts set forth in the 
     following table:

                                              Navy: Family Housing
----------------------------------------------------------------------------------------------------------------
           State or Country              Installation or location             Purpose                 Amount
----------------------------------------------------------------------------------------------------------------
California............................  Naval Air Station,         178 Units....................     $40,981,000
                                         Lemoore.
                                        Twentynine Palms.........  76 Units.....................     $19,425,000
Connecticut...........................  Naval Submarine Base, New  100 Units....................     $24,415,000
                                         London.
Florida...............................  Naval Station, Mayport...  1 Unit.......................        $329,000
Hawaii................................  Marine Corps Base,         65 Units.....................     $24,797,000
                                         Kaneohe Bay.
Mississippi...........................  Naval Air Station,         56 Units.....................      $9,755,000
                                         Meridian.
North Carolina........................  Marine Corps Base, Camp    317 Units....................     $43,650,000
                                         LeJeune.
Virginia..............................  Marine Corps Base,         290 Units....................     $41,843,000
                                         Quantico.
Greece................................  Naval Support Activity     2 Units......................      $1,232,000
                                         Joint Headquarters
                                         Command, Larissa.
 United Kingdom.......................  Joint Maritime Facility,   62 Units.....................     $18,524,000
                                         St. Mawgan.
                                                                                                 ---------------
                                                                     Total......................    $224,951,000
----------------------------------------------------------------------------------------------------------------


[[Page 12201]]

       (b) Planning and Design.--Using amounts appropriated 
     pursuant to the authorization of appropriation in section 
     2204(a)(5)(A), the Secretary of the Navy may carry out 
     architectural and engineering services and construction 
     design activities with respect to the construction or 
     improvement of military family housing units in an amount not 
     to exceed $11,281,000.

     SEC. 2203. IMPROVEMENTS TO MILITARY FAMILY HOUSING UNITS.

       Subject to section 2825 of title 10, United States Code, 
     and using amounts appropriated pursuant to the authorization 
     of appropriations in section 2204(a)(5)(A), the Secretary of 
     the Navy may improve existing military family housing units 
     in an amount not to exceed $139,468,000.

     SEC. 2204. AUTHORIZATION OF APPROPRIATIONS, NAVY.

       (a) In General.--Funds are hereby authorized to be 
     appropriated for fiscal years beginning after September 30, 
     2002, for military construction, land acquisition, and 
     military family housing functions of the Department of the 
     Navy in the total amount of $2,478,174,000, as follows:
       (1) For military construction projects inside the United 
     States authorized by section 2201(a), $932,123,000.
       (2) For military construction projects outside the United 
     States authorized by section 2201(b), $170,440,000.
       (3) For unspecified minor construction projects authorized 
     by section 2805 of title 10, United States Code, $23,262,000.
       (4) For architectural and engineering services and 
     construction design under section 2807 of title 10, United 
     States Code, $87,803,000.
       (5) For military family housing functions:
       (A) For construction and acquisition, planning and design, 
     and improvement of military family housing and facilities, 
     $375,700,000.
       (B) For support of military family housing (including 
     functions described in section 2833 of title 10, United 
     States Code), $867,788,000.
       (6) For replacement of a pier at Naval Station, Norfolk, 
     Virginia, authorized in section 2201(a) of the Military 
     Construction Authorization Act for Fiscal Year 2002 (division 
     B of Public Law 107-107; 115 Stat. 1287), as amended by 
     section 2205 of this Act, $33,520,000.
       (b) Limitation on Total Cost of Construction Projects.--
     Notwithstanding the cost variations authorized by section 
     2853 of title 10, United States Code, and any other cost 
     variation authorized by law, the total cost of all projects 
     carried out under section 2201 of this Act may not exceed--
       (1) the total amount authorized to be appropriated under 
     paragraphs (1) and (2) of subsection (a):
       (2) $8,345,000 (the balance of the amount authorized under 
     section 2201(a) for a bachelors enlisted quarters shipboard 
     ashore, Naval Station, Pascagoula, Mississippi);
       (3) $48,120,000 (the balance of the amount authorized under 
     section 2201(a) for a bachelors enlisted quarters shipboard 
     ashore, Naval Station, Norfolk, Virginia); and
       (4) $2,570,000 (the balance of the amount authorized under 
     section 2201(b) for a quality of life support facility, Naval 
     Air Station Sigonella, Italy).
       (c) Adjustment.--The total amount authorized to be 
     appropriated pursuant to paragraphs (1) through (6) of 
     subsection (a) is the sum of the amounts authorized to be 
     appropriated in such paragraphs, reduced by--
       (1) $3,992,000, which represents savings resulting from 
     adjustments to foreign currency exchange rates for military 
     construction, military family housing construction, and 
     military family housing support outside the United States; 
     and
       (2) $10,470,000, which represents adjustments for the 
     accounting of civilian personnel benefits.

     SEC. 2205. MODIFICATION TO CARRY OUT CERTAIN FISCAL YEAR 2002 
                   PROJECTS.

       (a) Military Construction Project at Naval Station, 
     Norfolk, Virginia.--The table in section 2201(a) of the 
     Military Construction Authorization Act for Fiscal Year 2002 
     (division B of Public Law 107-107; 115 Stat. 1286) is 
     amended--
       (1) in the item relating to Naval Station, Norfolk, 
     Virginia, by striking ``$139,270,000'' in the amount column 
     and inserting ``$139,550,000''; and
       (2) by striking the amount identified as the total in the 
     amount column and inserting ``$1,059,030,000''.
       (b) Conforming Amendment.--Section 2204(b)(2) of that Act 
     (115 Stat. 1289) is amended by striking ``$33,240,000'' and 
     inserting ``$33,520,000''.
       (c) Military Family Housing at Quantico, Virginia.--The 
     table in section 2202(a) of that Act (115 Stat. 1287) is 
     amended in the item relating to Marine Corps Combat 
     Development Command, Quantico, Virginia, by striking ``60 
     Units'' in the purpose column and inserting ``39 Units''.

                         TITLE XXIII--AIR FORCE

     SEC. 2301. AUTHORIZED AIR FORCE CONSTRUCTION AND LAND 
                   ACQUISITION PROJECTS.

       (a) Inside the United States.--Using amounts appropriated 
     pursuant to the authorization of appropriations in section 
     2304(a)(1), the Secretary of the Air Force may acquire real 
     property and carry out military construction projects for the 
     installations and locations inside the United States, and in 
     the amounts, set forth in the following table:


                   Air Force: Inside the United States
------------------------------------------------------------------------
                                     Installation or
             State                       location             Amount
------------------------------------------------------------------------
Alaska.........................  Clear Air Force Station     $14,400,000
                                 Eielson Air Force Base.     $41,100,000
Arizona........................  Davis-Monthan Air Force     $19,270,000
                                  Base.
Arkansas.......................  Little Rock Air Force       $25,600,000
                                  Base.
California.....................  Beale Air Force Base...     $11,740,000
                                 Travis Air Force Base..     $23,900,000
                                 Vandenberg Air Force        $10,500,000
                                  Base.
Colorado.......................  Buckley Air Force Base.     $17,700,000
                                 Peterson Air Force Base      $5,500,000
                                 Schriever Air Force          $5,700,000
                                  Base.
                                 United States Air Force      $4,200,000
                                  Academy.
District of Columbia...........  Bolling Air Force Base.      $5,000,000
Florida........................  Eglin Air Force Base...      $4,250,000
                                 Hurlburt Field.........     $15,000,000
                                 MacDill Air Force Base.      $7,000,000
Georgia........................  Robins Air Force Base..      $5,400,000
                                 Warner-Robins Air Force     $24,000,000
                                  Base.
Hawaii.........................  Hickam Air Force Base..      $1,350,000
Louisiana......................  Barksdale Air Force         $22,900,000
                                  Base.
Maryland.......................  Andrews Air Force Base.      $9,600,000
Massachusetts..................  Fourth Cliff, Scituate.      $9,500,000
                                 Hanscom Air Force Base.      $7,700,000
Mississippi....................  Keesler Air Force Base.     $22,000,000
Nebraska.......................  Offutt Air Force Base..     $11,000,000
Nevada.........................  Nellis Air Force Base..     $56,850,000
New Jersey.....................  McGuire Air Force Base.     $24,631,000
New Mexico.....................  Cannon Air Force Base..      $4,650,000
                                 Holloman Air Force Base      $4,650,000
                                 Kirtland Air Force Base     $21,900,000
North Carolina.................  Pope Air Force Base....      $9,700,000
                                 Seymour Johnson Air         $10,600,000
                                  Force Base.
North Dakota...................  Minot Air Force Base...     $18,000,000
Ohio...........................  Wright-Patterson Air        $35,400,000
                                  Force Base.
Oklahoma.......................  Altus Air Force Base...     $14,800,000
                                 Vance Air Force Base...      $4,800,000
South Carolina.................  Shaw Air Force Base....      $6,500,000
South Dakota...................  Ellsworth Air Force         $13,200,000
                                  Base.

[[Page 12202]]

 
Texas..........................  Goodfellow Air Force        $10,600,000
                                  Base.
                                 Lackland Air Force Base     $41,500,000
                                 Sheppard Air Force Base     $16,000,000
Utah...........................  Hill Air Force Base....     $16,500,000
Virginia.......................  Langley Air Force Base.     $71,940,000
Wyoming........................  F.E. Warren Air Force       $15,000,000
                                  Base.
                                                         ---------------
                                 Total..................    $721,531,000
------------------------------------------------------------------------

       (b) Outside the United States.--Using amounts appropriated 
     pursuant to the authorization of appropriations in section 
     2304(a)(2), the Secretary of the Air Force may acquire real 
     property and carry out military construction projects for the 
     installations and locations outside the United States, and in 
     the amounts, set forth in the following table:


                  Air Force: Outside the United States
------------------------------------------------------------------------
                                     Installation or
            Country                      location             Amount
------------------------------------------------------------------------
Germany........................  Ramstein Air Base......     $71,783,000
Guam...........................  Andersen Air Force Base     $31,000,000
Italy..........................  Aviano Air Base........      $6,600,000
Japan..........................  Kadena Air Base........      $6,000,000
Korea..........................  Osan Air Base..........     $15,100,000
Spain..........................  Naval Station, Rota....     $31,818,000
Turkey.........................  Incirlik Air Base......      $1,550,000
United Kingdom.................  Diego Garcia...........     $17,100,000
                                 Royal Air Force,            $19,000,000
                                  Fairford.
                                 Royal Air Force,            $13,400,000
                                  Lakenheath.
Wake Island....................  Wake Island............     $24,900,000
                                                         ---------------
                                   Total................    $238,251,000
------------------------------------------------------------------------

       (c) Unspecified Worldwide.--Using the amounts appropriated 
     pursuant to the authorization of appropriations in section 
     2304(a)(3), the Secretary of the Air Force may acquire real 
     property and carry out military construction projects for the 
     installation and location, and in the amount, set forth in 
     the following table:


                    Air Force: Unspecified Worldwide
------------------------------------------------------------------------
            Location                   Installation           Amount
------------------------------------------------------------------------
Unspecified Worldwide..........  Classified Locations...     $24,993,000
------------------------------------------------------------------------

     SEC. 2302. FAMILY HOUSING.

       (a) Construction and Acquisition.--Using amounts 
     appropriated pursuant to the authorization of appropriations 
     in section 2304(a)(6)(A), the Secretary of the Air Force may 
     construct or acquire family housing units (including land 
     acquisition and supporting facilities) at the installations, 
     for the purposes, and in the amounts set forth in the 
     following table:


                                            Air Force: Family Housing
----------------------------------------------------------------------------------------------------------------
           State or Country              Installation or location             Purpose                 Amount
----------------------------------------------------------------------------------------------------------------
Arizona...............................  Luke Air Force Base......  140 Units....................     $18,954,000
California............................  Travis Air Force Base....  110 Units....................     $24,320,000
Colorado..............................  Peterson Air Force Base..  2 Units......................        $959,000
                                        United States Air Force    71 Units.....................     $12,424,000
                                         Academy.
Delaware..............................  Dover Air Force Base.....  112 Units....................     $19,615,000
Florida...............................  Eglin Air Force Base.....  Housing Office...............        $597,000
                                        Eglin Air Force Base.....  134 Units....................     $15,906,000
                                        MacDill Air Force Base...  96 Units.....................     $18,086,000
Hawaii................................  Hickam Air Force Base....  96 Units.....................     $29,050,000
Idaho.................................  Mountain Home Air Force    95 Units.....................     $24,392,000
                                         Base.
Kansas................................  McConnell Air Force Base.  Housing Maintenance Facility.      $1,514,000
Maryland..............................  Andrews Air Force Base...  53 Units.....................      $9,838,000
                                        Andrews Air Force Base...  52 Units.....................      $8,807,000
Mississippi...........................  Columbus Air Force Base..  Housing Office...............        $412,000
                                        Keesler Air Force Base...  117 Units....................     $16,605,000
Missouri..............................  Whiteman Air Force Base..  22 Units.....................      $3,977,000
Montana...............................  Malmstrom Air Force Base.  18 Units.....................      $4,717,000
New Mexico............................  Holloman Air Force Base..  101 Units....................     $20,161,000
North Carolina........................  Pope Air Force Base......  Housing Maintenance Facility.        $991,000
                                        Seymour Johnson Air Force  126 Units....................     $18,615,000
                                         Base.
North Dakota..........................  Grand Forks Air Force      150 Units....................     $30,140,000
                                         Base.
                                        Minot Air Force Base.....  112 Units....................     $21,428,000
                                        Minot Air Force Base.....  102 Units....................     $20,315,000
Oklahoma..............................  Vance Air Force Base.....  59 Units.....................     $11,423,000

[[Page 12203]]

 
South Dakota..........................  Ellsworth Air Force Base.  Housing Maintenance Facility.        $447,000
                                        Ellsworth Air Force Base.  22 Units.....................      $4,794,000
Texas.................................  Dyess Air Force Base.....  85 Units.....................     $14,824,000
                                        Randolph Air Force Base..  Housing Maintenance Facility.        $447,000
                                        Randolph Air Force Base..  112 Units....................     $14,311,000
Virginia..............................  Langley Air Force Base...  Housing Office...............      $1,193,000
Germany...............................  Ramstein Air Force Base..  19 Units.....................      $8,534,000
Korea.................................  Osan Air Base............  113 Units....................     $35,705,000
                                        Osan Air Base............  Housing Supply Warehouse.....        $834,000
United Kingdom........................  Royal Air Force            Housing Office and                 $2,203,000
                                         Lakenheath.                Maintenance Facility.
                                                                                                 ---------------
                                        Total....................                                   $416,438,000
----------------------------------------------------------------------------------------------------------------

       (b) Planning and Design.--Using amounts appropriated 
     pursuant to the authorization of appropriations in section 
     2304(a)(6)(A), the Secretary of the Air Force may carry out 
     architectural and engineering services and construction 
     design activities with respect to the construction or 
     improvement of military family housing units in an amount not 
     to exceed $34,188,000.

     SEC. 2303. IMPROVEMENTS TO MILITARY FAMILY HOUSING UNITS.

       Subject to section 2825 of title 10, Unites States Code, 
     and using amounts appropriated pursuant to the authorization 
     of appropriations in section 2304(a)(6)(A), the Secretary of 
     the Air Force may improve existing military family housing 
     units in an amount not to exceed $226,068,000.

     SEC. 2304. AUTHORIZATION OF APPROPRIATIONS, AIR FORCE.

       (a) In General.--Funds are hereby authorized to be 
     appropriated for fiscal years beginning after September 30, 
     2002, for military construction, land acquisition, and 
     military family housing functions of the Department of the 
     Air Force in the total amount of $2,597,272,000, as follows:
       (1) For military construction projects inside the United 
     States authorized by section 2301(a), $709,431,000.
       (2) For military construction projects outside the United 
     States authorized by section 2301(b), $238,251,000.
       (3) For the military construction projects at unspecified 
     worldwide locations authorized by section 2301(c), 
     $24,993,000.
       (4) For unspecified minor construction projects authorized 
     by section 2805 of title 10, United States Code, $11,500,000.
       (5) For architectural and engineering services and 
     construction design under section 2807 of title 10, United 
     States Code, $81,416,000.
       (6) For military housing functions:
       (A) For construction and acquisition, planning and design, 
     and improvement of military family housing and facilities, 
     $676,694,000.
       (B) For support of military family housing (including 
     functions described in section 2833 of title 10, United 
     States Code), $874,050,000.
       (b) Limitation on Total Cost of Construction Projects.--
     Notwithstanding the cost variations authorized by section 
     2853 of title 10, United States Code, and any other cost 
     variation authorized by law, the total cost of all projects 
     carried out under section 2301 of this Act may not exceed--
       (1) the total amount authorized to be appropriated under 
     paragraphs (1), (2) and (3) of subsection (a);
       (2) $7,100,000 (the balance of the amount authorized under 
     section 2301(a) for construction of a consolidated base 
     engineer complex at Altus Air Force Base, Oklahoma); and
       (3) $5,000,000 (the balance of the amount authorized under 
     section 2301(a) for construction of a storm drainage system 
     at F.E. Warren Air Force Base, Wyoming).
       (c) Adjustment.--The total amount authorized to be 
     appropriated pursuant to paragraphs (1) through (6) of 
     subsection (a) is the sum of the amounts authorized to be 
     appropriated in such paragraphs, reduced by $19,063,000, 
     which represents savings resulting from adjustments to 
     foreign currency exchange rates for military construction, 
     military family housing construction, and military family 
     housing support outside the United States.

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

       (a) Authority To Use Funds.--The Secretary of the Air Force 
     may, using amounts authorized to be appropriated by section 
     2301(b), carry out a project to provide a public road, and 
     associated improvements, to replace a public road adjacent to 
     Aviano Air Base, Italy, that has been closed for force 
     protection purposes.
       (b) Scope of Authority.--(1) The authority of the Secretary 
     to carry out the project referred to in subsection (a) shall 
     include authority as follows:
       (A) To acquire property for the project for transfer to a 
     host nation authority.
       (B) To provide funds to a host nation authority to acquire 
     property for the project.
       (C) To make a contribution to a host nation authority for 
     purposes of carrying out the project.
       (D) To provide vehicle and pedestrian access to landowners 
     effected by the project.
       (2) The acquisition of property using authority in 
     subparagraph (A) or (B) of paragraph (1) may be made 
     regardless of whether or not ownership of such property will 
     vest in the United States.
       (c) Inapplicability of Certain Real Property Management 
     Requirement.--Section 2672(a)(1)(B) of title 10, United 
     States Code, shall not apply with respect to any acquisition 
     of interests in land for purposes of the project authorized 
     by subsection (a).

     SEC. 2306. ADDITIONAL PROJECT AUTHORIZATION FOR AIR TRAFFIC 
                   CONTROL FACILITY AT DOVER AIR FORCE BASE, 
                   DELAWARE.

       (a) Project Authorized.--In addition to the projects 
     authorized by section 2301(a), the Secretary of the Air Force 
     may carry out carry out a military construction project, 
     including land acquisition relating thereto, for construction 
     of a new air traffic control facility at Dover Air Force 
     Base, Delaware, in the amount of $7,500,000.
       (b) Authorization of Appropriations.--The amount authorized 
     to be appropriated by section 2304(a), and by paragraph (1) 
     of that section, is hereby increased by $7,500,000.
       (c) Offset.--The amount authorized to be appropriated by 
     section 301(a)(10) for operation and maintenance for the Army 
     National Guard is hereby reduced by $7,500,000, with the 
     amount of the reduction to be allocated to the Classified 
     Network Program.

     SEC. 2307. AVAILABILITY OF FUNDS FOR CONSOLIDATION OF 
                   MATERIALS COMPUTATIONAL RESEARCH FACILITY AT 
                   WRIGHT-PATTERSON AIR FORCE BASE, OHIO.

       (a) Availability.--Of the amount authorized to be 
     appropriated by section 2304(a), and paragraph (1) of that 
     section, for the Air Force and available for military 
     construction projects at Wright-Patterson Air Force Base, 
     Ohio, $15,200,000 may be available for a military 
     construction project for consolidation of the materials 
     computational research facility at Wright-Patterson Air Force 
     Base (PNZHTV033301A).
       (b) Offset.--(1) The amount authorized to be appropriated 
     by section 301(a)(4) for the Air Force for operation and 
     maintenance is hereby reduced by $2,800,000, with the amount 
     of the reduction to be allocated to Recruiting and 
     Advertising.
       (2) Of the amount authorized to be appropriated by section 
     2304(a), and paragraph (1) of that section, for the Air Force 
     and available for military construction projects at Wright-
     Patterson Air Force Base--
       (A) the amount available for a dormitory is hereby reduced 
     by $10,400,000; and
       (B) the amount available for construction of a Fully 
     Contained Small Arms Range Complex is hereby reduced by 
     $2,000,000.

[[Page 12204]]



                      TITLE XXIV--DEFENSE AGENCIES

     SEC. 2401. AUTHORIZED DEFENSE AGENCIES CONSTRUCTION AND LAND 
                   ACQUISITION PROJECTS.

       (a) Inside the United States.--Using amounts appropriated 
     pursuant to the authorization of appropriations in section 
     2404(a)(1), the Secretary of Defense may acquire real 
     property and carry out military construction projects for the 
     installations and locations inside the United States, and in 
     the amounts, set forth in the following table:


               Defense Agencies: Inside the United States
------------------------------------------------------------------------
                                     Installation or
             Agency                      location             Amount
------------------------------------------------------------------------
Missile Defense Agency.........  Kauai, Hawaii..........     $23,400,000
Defense Intelligence Agency....  Bolling Air Force Base,    $121,958,000
                                  District of Columbia.
Defense Logistics Agency.......  Defense Supply Center,       $5,021,000
                                  Columbus, Ohio.
                                 Defense Supply Center,       $5,500,000
                                  Richmond, Virginia....
                                 Naval Air Station, New       $9,500,000
                                  Orleans, Louisiana....
                                 Travis Air Force Base,      $16,000,000
                                  California............
Defense Threat Reduction Agency  Fort Belvoir, Virginia.     $76,388,000
Department of Defense            Fort Bragg, North            $2,036,000
 Dependents Schools.              Carolina.
                                 Fort Jackson, South          $2,506,000
                                  Carolina..............
                                 Marine Corps Base, Camp     $12,138,000
                                  LeJeune, North
                                  Carolina..............
                                 Marine Corps Base,           $1,418,000
                                  Quantico, Virginia....
                                 United States Military       $4,347,000
                                  Academy, West Point,
                                  New York..............
Joint Chiefs of Staff..........  Conus Various..........     $25,000,000
National Security Agency.......  Fort Meade, Maryland...      $4,484,000
Special Operations Command.....  Fort Bragg, North           $30,800,000
                                  Carolina.
                                 Hurlburt Field, Florida     $11,100,000
                                 Naval Amphibious Base,      $14,300,000
                                  Little Creek, Virginia
                                 Stennis Space Center,        $5,000,000
                                  Mississippi...........
TRICARE Management Activity....  Elmendorf Air Force         $10,400,000
                                  Base, Alaska.
                                 Hickam Air Force Base,       $2,700,000
                                  Hawaii................
Washington Headquarters          Arlington, Virginia....     $18,000,000
 Services.
                                 Washington Headquarters      $2,500,000
                                  Services, District of
                                  Columbia.
                                                         ---------------
                                   Total................    $404,496,000
------------------------------------------------------------------------

       (b) Outside the United States.--Using amounts appropriated 
     pursuant to the authorization of appropriations in section 
     2404(a)(2), the Secretary of Defense may acquire real 
     property and carry out military construction projects for the 
     installations and locations outside the United States, and in 
     the amounts, set forth in the following table:


               Defense Agencies: Outside the United States
------------------------------------------------------------------------
                                     Installation or
             Agency                      location             Amount
------------------------------------------------------------------------
Defense Logistics Agency.......  Andersen Air Force          $17,586,000
                                  Base, Guam.
                                 Lajes Field, Azores,        $19,000,000
                                  Portugal..............
                                 Naval Forces Marianas        $6,000,000
                                  Islands, Guam.........
                                 Naval Station, Rota,        $23,400,000
                                  Spain.................
                                 Royal Air Force,            $17,000,000
                                  Fairford, United
                                  Kingdom...............
                                 Yokota Air Base, Japan.     $23,000,000
Department of Defense            Kaiserslautern, Germany        $957,000
 Dependents Schools.
                                 Lajes Field, Azores,         $1,192,000
                                  Portugal..............
                                 Seoul, Korea...........     $31,683,000
                                 Mons, Belgium..........      $1,573,000
                                 Spangdahlem Air Base,          $997,000
                                  Germany...............
                                 Vicenza, Italy.........      $2,117,000
TRICARE Management Activity....  Naval Support Activity,     $41,449,000
                                  Naples, Italy.
                                 Spangdahlem Air Base,       $39,629,000
                                  Germany...............
                                                         ---------------
                                   Total................    $225,583,000
------------------------------------------------------------------------

     SEC. 2402. IMPROVEMENTS TO MILITARY FAMILY HOUSING UNITS.

       Subject to section 2825 of title 10, United States Code, 
     and using amounts appropriated pursuant to the authorization 
     of appropriations in section 2404(a)(8)(A), the Secretary of 
     Defense may improve existing military family housing units in 
     an amount not to exceed $5,480,000.

     SEC. 2403. ENERGY CONSERVATION PROJECTS.

       Using amounts appropriated pursuant to the authorization of 
     appropriations in section 2404(a)(4), the Secretary of 
     Defense may carry out energy conservation projects under 
     section 2865 of title 10, United States Code, in the amount 
     of $50,531,000.

     SEC. 2404. AUTHORIZATION OF APPROPRIATIONS, DEFENSE AGENCIES.

       (a) In General.--Funds are hereby authorized to be 
     appropriated for fiscal years beginning after September 30, 
     2002, for military construction, land acquisition, and 
     military family housing functions of the Department of 
     Defense (other than the military departments) in the total 
     amount of $1,316,972,000, as follows:
       (1) For military construction projects inside the United 
     States authorized by section 2401(a), $367,896,000.
       (2) For military construction projects outside the United 
     States authorized by section 2401(b), $225,583,000.
       (3) For unspecified minor construction projects under 
     section 2805 of title 10, United States Code, $16,293,000.
       (4) For contingency construction projects of the Secretary 
     of Defense under section 2804 of title 10, United States 
     Code, $10,000,000.
       (5) For architectural and engineering services and 
     construction design under section 2807 of title 10, United 
     States Code, $44,232,000.
       (6) For energy conservation projects authorized by section 
     2403 of this Act, $50,531,000.
       (7) For base closure and realignment activities as 
     authorized by the Defense Base Closure and Realignment Act of 
     1990 (part A of title XXIX of Public Law 101-510; 10 U.S.C. 
     2687 note), $545,138,000.
       (8) For military family housing functions:
       (A) For improvement of military family housing and 
     facilities, $5,480,000.
       (B) For support of military family housing (including 
     functions described in section 2833 of title 10, United 
     States Code), $42,432,000.
       (C) For credit to the Department of Defense Family Housing 
     Improvement Fund established by section 2883(a)(1) of title 
     10, United States Code, $2,000,000.
       (9) For payment of a claim against the Hospital Replacement 
     project at Elmendorf Air Force Base, Alaska, $10,400,000.

[[Page 12205]]

       (b) Limitation on Total Cost of Construction Projects.--
     Notwithstanding the cost variations authorized by section 
     2853 of title 10, United States Code, and any other cost 
     variation authorized by law, the total cost of all projects 
     carried out under section 2401 of this Act may not exceed--
       (1) the total amount authorized to be appropriated under 
     paragraphs (1) and (2) of subsection (a); and
       (2) $26,200,000 (the balance of the amount authorized under 
     section 2401(a) for the construction of the Defense Threat 
     Reduction Center, Fort Belvoir, Virginia).
       (c) Adjustment.--The total amount authorized to be 
     appropriated pursuant to paragraphs (1) through (9) of 
     subsection (a) is the sum of the amounts authorized to be 
     appropriated in such paragraphs, reduced by--
       (1) $2,976,000, which represents savings resulting from 
     adjustments to foreign currency exchange rates for military 
     construction, military family housing construction, and 
     military family housing support outside the United States; 
     and
       (2) $37,000, which represents adjustments for the 
     accounting of civilian personnel benefits.

   TITLE XXV--NORTH ATLANTIC TREATY ORGANIZATION SECURITY INVESTMENT 
                                PROGRAM

     SEC. 2501. AUTHORIZED NATO CONSTRUCTION AND LAND ACQUISITION 
                   PROJECTS.

       The Secretary of Defense may make contributions for the 
     North Atlantic Treaty Organization Security Investment 
     program as provided in section 2806 of title 10, United 
     States Code, in an amount not to exceed the sum of the amount 
     authorized to be appropriated for this purpose in section 
     2502 and the amount collected from the North Atlantic Treaty 
     Organization as a result of construction previously financed 
     by the United States.

     SEC. 2502. AUTHORIZATION OF APPROPRIATIONS, NATO.

       Funds are hereby authorized to be appropriated for fiscal 
     years beginning after September 30, 2002, for contributions 
     by the Secretary of Defense under section 2806 of title 10, 
     United States Code, for the share of the United States of the 
     cost of projects for the North Atlantic Treaty Organization 
     Security Investment program authorized by section 2501, in 
     the amount of $168,200,000.

            TITLE XXVI--GUARD AND RESERVE FORCES FACILITIES

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

       There are authorized to be appropriated for fiscal years 
     beginning after September 30, 2002, for the costs of 
     acquisition, architectural and engineering services, and 
     construction of facilities for the Guard and Reserve Forces, 
     and for contributions there for, under chapter 1803 of title 
     10, United States Code (including the cost of acquisition of 
     land for those facilities), the following amounts:
       (1) For the Department of the Army--
       (A) for the Army National Guard of the United States, 
     $186,588,000; and
       (B) for the Army Reserve, $62,992,000.
       (2) For the Department of the Navy, for the Naval and 
     Marine Corps Reserve, $58,671,000.
       (3) For the Department of the Air Force--
       (A) for the Air National Guard of the United States, 
     $212,459,000; and
       (B) for the Air Force Reserve, $59,883,000.

     SEC. 2602. ARMY NATIONAL GUARD RESERVE CENTER, LANE COUNTY, 
                   OREGON.

       (a) Increase in Authorization of Appropriations.--The 
     amount authorized to be appropriated by section 2601(1)(A) 
     for the Army National Guard of the United States is hereby 
     increased by $9,000,000.
       (b) Availability.--(1) Of the amount authorized to be 
     appropriated by section 2601(1)(A) for the Army National 
     Guard of the United States, as increased by subsection (a), 
     $9,000,000 may be available for a military construction 
     project for a Reserve Center in Lane County, Oregon.
       (2) The amount available under paragraph (1) for the 
     military construction project referred to in that paragraph 
     is in addition to any other amounts available under this Act 
     for that project.
       (c) Offset.--(1) The amount authorized to be appropriated 
     by section 201(2) for research, development, test, and 
     evaluation for the Navy is hereby reduced by $2,500,000, with 
     the amount of the reduction to be allocated to Warfighter 
     Sustainment Advanced Technology (PE 0603236N).
       (2) The amount authorized to be appropriated by section 
     301(a)(6) for operation and maintenance for the Army Reserve 
     is hereby reduced by $6,000,000, with the amount of the 
     reduction to be allocated to the Enhanced Secure 
     Communications Program.

     SEC. 2603. ADDITIONAL PROJECT AUTHORIZATION FOR COMPOSITE 
                   SUPPORT FACILITY FOR ILLINOIS AIR NATIONAL 
                   GUARD.

       (a) Increase in Authorization of Appropriations.--The 
     amount authorized to be appropriated by section 2601(3)(A) 
     for the Air National Guard is hereby increased by 
     $10,000,000.
       (b) Availability.--Of the amount authorized to be 
     appropriated by section 2601(3)(A) for the Air National 
     Guard, as increased by subsection (a), $10,000,000 may be 
     available for a military construction project for a Composite 
     Support Facility for the 183rd Fighter Wing of the Illinois 
     Air National Guard.
       (c) Offset.--The amount authorized to be appropriated by 
     section 301(a)(5) for operation and maintenance, defense-
     wide, is hereby reduced by $10,000,000, with the amount of 
     the reduction to be allocated to amounts available for the 
     Information Operations Program.

        TITLE XXVII--EXPIRATION AND EXTENSION OF AUTHORIZATIONS

     SEC. 2701. EXPIRATION OF AUTHORIZATIONS AND AMOUNTS REQUIRED 
                   TO BE SPECIFIED BY LAW.

       (a) Expiration of Authorizations After Three Years.--Except 
     as provided in subsection (b), all authorizations contained 
     in titles XXI through XXVI for military construction 
     projects, land acquisition, family housing projects and 
     facilities, and contributions to the North Atlantic Treaty 
     Organization Security Investment program (and authorizations 
     of appropriations therefor) shall expire on the later of--
       (1) October 1, 2005; or
       (2) the date of the enactment of an Act authorizing funds 
     for military construction for fiscal year 2006.
       (b) Exception.--Subsection (a) shall not apply to 
     authorizations for military construction projects, land 
     acquisition, family housing projects, and facilities, and 
     contributions to the North Atlantic Treaty Organization 
     Security Investment program (and authorizations of 
     appropriations therefor) for which appropriated funds have 
     been obligated before the later of--
       (1) October 1, 2005; or
       (2) the date of the enactment of an Act authorized funds 
     for fiscal year 2005 for military construction projects, land 
     acquisition, family housing projects and facilities, and 
     contributions to the North Atlantic Treaty Organization 
     Security Investment program.

     SEC. 2702. EXTENSION OF AUTHORIZATIONS OF CERTAIN FISCAL YEAR 
                   2000 PROJECTS.

       (a) Extension of Certain Projects.--Notwithstanding section 
     2701 of the Military Construction Authorization Act for 
     Fiscal Year 2000 (division B of Public Law 106-65; 113 Stat. 
     841), authorizations set forth in the tables in subsection 
     (b), as provided in section 2302 or 2601 of that Act, shall 
     remain in effect until October 1, 2003, or the date of the 
     enactment of an Act authorizing funds for military 
     construction for fiscal year 2004, whichever is later.
       (b) Tables.--The tables referred to in subsection (a) are 
     as follows:


                               Air Force: Extension of 2000 Project Authorization
----------------------------------------------------------------------------------------------------------------
                 State                   Installation or location             Project                 Amount
----------------------------------------------------------------------------------------------------------------
Oklahoma..............................  Tinker Air Force Base....  Replace Family Housing (41         $6,000,000
                                                                    Units).
Texas.................................  Lackland Air Force Base..  Dormitory....................      $5,300,000
----------------------------------------------------------------------------------------------------------------



                          Army National Guard: Extension of 2000 Project Authorization
----------------------------------------------------------------------------------------------------------------
                 State                   Installation or location             Project                 Amount
----------------------------------------------------------------------------------------------------------------
Virginia..............................  Fort Pickett.............  Multi-Purpose Range Complex-      $13,500,000
                                                                    Heavy.
----------------------------------------------------------------------------------------------------------------


[[Page 12206]]

     SEC. 2703. EXTENSION OF AUTHORIZATIONS OF CERTAIN FISCAL YEAR 
                   1999 PROJECTS.

       (a) Extension.--Notwithstanding section 2701 of the 
     Military Construction Authorization Act for Fiscal Year 1999 
     (division B of Public Law 105-261; 112 Stat. 2199), 
     authorizations set forth in the table in subsection (b), as 
     provided in section 2302 of that Act and extended by section 
     2702 of the Military Construction Authorization Act for 
     Fiscal Year 2002 (division B of Public Law 107-107; 115 Stat. 
     1301), shall remain in effect until October 1, 2003, or the 
     date of the enactment of an Act authorizing funds for 
     military construction for fiscal year 2004, whichever is 
     later.
       (b) Table.--The table referred to in subsection (a) is as 
     follows:


                               Air Force: Extension of 1999 Project Authorizations
----------------------------------------------------------------------------------------------------------------
                 State                   Installation or location             Project                 Amount
----------------------------------------------------------------------------------------------------------------
Delaware..............................  Dover Air Force Base.....  Replace Family Housing (55         $8,988,000
                                                                    Units).
Florida...............................  Patrick Air Force Base...  Replace Family Housing (46         $9,692,000
                                                                    Units).
New Mexico............................  Kirtland Air Force Base..  Replace Family Housing (37         $6,400,000
                                                                    Units).
Ohio..................................  Wright-Patterson Air       Replace Family Housing (40         $5,600,000
                                         Force Base.                Units).
----------------------------------------------------------------------------------------------------------------

     SEC. 2704. EFFECTIVE DATE.

       Titles XXI, XXII, XXIII, XXIV, XXV, XXVI, and XXVII of this 
     Act shall take effect on the later of--
       (1) October 1, 2002; or
       (2) the date of the enactment of this Act.

                    TITLE XXVIII--GENERAL PROVISIONS

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

     SEC. 2801. LEASE OF MILITARY FAMILY HOUSING IN KOREA.

       (a) Increase in Number of Units Authorized for Lease at 
     Current Maximum Amount.--Paragraph (3) of section 2828(e) of 
     title 10, United States Code, is amended by striking ``800 
     units'' and inserting ``1,175 units''.
       (b) Authority To Lease Additional Number of Units at 
     Increased Maximum Amount.--That section is further amended--
       (1) by redesignating paragraphs (4) and (5) as paragraphs 
     (5) and (6), respectively;
       (2) by inserting after paragraph (3) the following new 
     paragraph (4):
       ``(4) In addition to the units of family housing referred 
     to in paragraph (1) for which the maximum lease amount is 
     $25,000 per unit per year, the Secretary of the Army may 
     lease not more than 2,400 units of family housing in Korea 
     subject to a maximum lease amount of $35,000 per unit per 
     year.'';
       (3) in paragraph (5), as so redesignated, by striking ``and 
     (3)'' and inserting ``(3), and (4)''; and
       (4) in paragraph (6), as so redesignated, by striking 
     ``53,000'' and inserting ``55,775''.

     SEC. 2802. REPEAL OF SOURCE REQUIREMENTS FOR FAMILY HOUSING 
                   CONSTRUCTION OVERSEAS.

       Section 803 of the Military Construction Authorization Act, 
     1984 (Public Law 98-115; 10 U.S.C. 2821 note) is repealed.

     SEC. 2803. MODIFICATION OF LEASE AUTHORITIES UNDER 
                   ALTERNATIVE AUTHORITY FOR ACQUISITION AND 
                   IMPROVEMENT OF MILITARY HOUSING.

       (a) Leasing of Housing.--Subsection (a) of section 2874 of 
     title 10, United States Code, is amended to read as follows:
       ``(a) Lease Authorized.--(1) The Secretary concerned may 
     enter into contracts for the lease of housing units that the 
     Secretary determines are suitable for use as military family 
     housing or military unaccompanied housing.
       ``(2) The Secretary concerned shall utilize housing units 
     leased under paragraph (1) as military family housing or 
     military unaccompanied housing, as appropriate.''.
       (b) Repeal of Interim Lease Authority.--Section 2879 of 
     such title is repealed.
       (c) Conforming and Clerical Amendments.--(1) The heading 
     for section 2874 of such title is amended to read as follows:

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

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

``2874. Leasing of housing.'';
     and
       (B) by striking the item relating to section 2879.

        Subtitle B--Real Property and Facilities Administration

     SEC. 2811. AGREEMENTS WITH PRIVATE ENTITIES TO ENHANCE 
                   MILITARY TRAINING, TESTING, AND OPERATIONS.

       (a) In General.--Chapter 159 of title 10, United States 
     Code, is amended by inserting after section 2696 the 
     following new section:

     ``Sec. 2697. Agreements with private entities to enhance 
       military training, testing, and operations

       ``(a) Agreements With Private Entities Authorized.--The 
     Secretary of Defense or the Secretary of a military 
     department may enter into an agreement with a private entity 
     described in subsection (b) to address the use or development 
     of real property in the vicinity of an installation under the 
     jurisdiction of such Secretary for purposes of--
       ``(1) limiting any development or use of such property that 
     would otherwise be incompatible with the mission of such 
     installation; or
       ``(2) preserving habitat on such property in a manner that 
     is compatible with both--
       ``(A) current or anticipated environmental requirements 
     that would or might otherwise restrict, impede, or otherwise 
     interfere, whether directly or indirectly, with current or 
     anticipated military training, testing, or operations on such 
     installation; and
       ``(B) current or anticipated military training, testing, or 
     operations on such installation.
       ``(b) Covered Private Entities.--A private entity described 
     in this subsection is any private entity that has as its 
     stated principal organizational purpose or goal the 
     conservation, restoration, or preservation of land and 
     natural resources, or a similar purpose or goal.
       ``(c) Inapplicability of Certain Contract Requirements.--
     Chapter 63 of title 31 shall not apply to any agreement 
     entered into under this section.
       ``(d) Acquisition and Acceptance of Property and 
     Interests.--(1) Subject to the provisions of this subsection, 
     an agreement with a private entity under this section--
       ``(A) may provide for the private entity to acquire all 
     right, title, and interest in and to any real property, or 
     any lesser interest therein, as may be appropriate for 
     purposes of this section; and
       ``(B) shall provide for the private entity to transfer to 
     the United States, upon the request of the United States, any 
     property or interest so acquired.
       ``(2) Property or interests may not be acquired pursuant to 
     an agreement under this section unless the owner of such 
     property or interests, as the case may be, consents to the 
     acquisition.
       ``(3) An agreement under this section providing for the 
     acquisition of property or interests under paragraph (1)(A) 
     shall provide for the sharing by the United States and the 
     private entity concerned of the costs of the acquisition of 
     such property or interests.
       ``(4) The Secretary concerned shall identify any property 
     or interests to be acquired pursuant to an agreement under 
     this section. Such property or interests shall be limited to 
     the minimum property or interests necessary to ensure that 
     the property concerned is developed and used in a manner 
     appropriate for purposes of this section.
       ``(5) The Secretary concerned may accept on behalf of the 
     United States any property or interest to be transferred to 
     the United States under paragraph (1)(B).
       ``(6) The Secretary concerned may, for purposes of the 
     acceptance of property or interests under this subsection, 
     accept an appraisal or title documents prepared or adopted by 
     a non-Federal entity as satisfying the applicable 
     requirements of section 301 of the Uniform Relocation 
     Assistance and Real Property Acquisition Policies Act of 1970 
     (42 U.S.C. 4651) or section 355 of the Revised Statutes (40 
     U.S.C. 255) if the Secretary finds that such appraisal or 
     title documents substantially comply with such requirements.
       ``(e) Additional Terms and Conditions.--The Secretary 
     concerned may require such additional terms and conditions in 
     an agreement under this section as such Secretary considers 
     appropriate to protect the interests of the United States.
       ``(f) Funding.--(1) Except as provided in paragraph (2), 
     amounts authorized to be appropriated to the Range 
     Enhancement Initiative Fund of the Department of Defense are

[[Page 12207]]

     available for purposes of any agreement under this section.
       ``(2) In the case of an installation operated primarily 
     with funds authorized to be appropriated for research, 
     development, test, and evaluation, funds authorized to be 
     appropriated for the Department of Defense, or the military 
     department concerned, for research, development, test, and 
     evaluation are available for purposes of an agreement under 
     this section with respect to such installation.
       ``(3) Amounts in the Fund that are made available for an 
     agreement of a military department under this section shall 
     be made available by transfer from the Fund to the applicable 
     operation and maintenance account of the military department, 
     including the operation and maintenance account for the 
     active component, or for a reserve component, of the military 
     department.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of such chapter is amended by inserting after the 
     item relating to section 2696 the following new item:

``2697. Agreements with private entities to enhance military training, 
              testing, and operations.''.

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

       (a) In General.--(1) Chapter 159 of title 10, United States 
     Code, as amended by section 2811 of this Act, is further 
     amended by inserting after section 2697 the following new 
     section:

     ``Sec. 2698. Conveyance of surplus real property for natural 
       resource conservation

       ``(a) Authority To Convey.--Subject to subsection (c), the 
     Secretary of a military department may, in the sole 
     discretion of such Secretary, convey to any State or local 
     government or instrumentality thereof, or private entity that 
     has as its primary purpose or goal the conservation of open 
     space or natural resources on real property, all right, 
     title, and interest of the United States in and to any real 
     property, including any improvements thereon, under the 
     jurisdiction of such Secretary that is described in 
     subsection (b).
       ``(b) Covered Real Property.--Real property described in 
     this subsection is any property that--
       ``(1) is suitable, as determined by the Secretary 
     concerned, for use for the conservation of open space or 
     natural resources;
       ``(2) is surplus property for purposes of title II of the 
     Federal Property and Administrative Services Act of 1949 (40 
     U.S.C. 471 et seq.); and
       ``(3) has been available for public benefit conveyance 
     under that title for a sufficient time, as determined by the 
     Secretary concerned in consultation with the Administrator of 
     General Services, to permit potential claimants to seek 
     public benefit conveyance of such property, but without the 
     submittal during that time of a request for such conveyance.
       ``(c) Conditions of Conveyance.--Real property may not be 
     conveyed under this section unless the conveyee of such 
     property agrees that such property--
       ``(1) shall be used and maintained for the conservation of 
     open space or natural resources in perpetuity, unless 
     otherwise provided for under subsection (e); and
       ``(2) may be subsequently conveyed only if--
       ``(A) the Secretary concerned approves in writing such 
     subsequent conveyance;
       ``(B) the Secretary concerned notifies the appropriate 
     committees of Congress of the subsequent conveyance not later 
     than 21 days before the subsequent conveyance; and
       ``(C) after such subsequent conveyance, shall be used and 
     maintained for the conservation of open space or natural 
     resources in perpetuity, unless otherwise provided for under 
     subsection (e).
       ``(d) Use for Incidental Production of Revenue.--Real 
     property conveyed under this section may be used for the 
     incidental production of revenue, as determined by the 
     Secretary concerned, if such production of revenue is 
     compatible with the use of such property for the conservation 
     of open space or natural resources, as so determined.
       ``(e) Reversion.--If the Secretary concerned determines at 
     any time that real property conveyed under this section is 
     not being used and maintained in accordance with the 
     agreement of the conveyee under subsection (c), all right, 
     title, and interest in and to such real property, including 
     any improvements thereon, shall revert to the United States, 
     and the United States shall have the right of immediate entry 
     thereon.
       ``(f) Property Under Base Closure Laws.--The Secretary 
     concerned may not make a conveyance under this section of any 
     real property to be disposed of under a base closure law in a 
     manner that is inconsistent with the requirements and 
     conditions of such base closure law.
       ``(g) Additional Terms and Conditions.--The Secretary 
     concerned may establish such additional terms and conditions 
     in connection with a conveyance of real property under this 
     section as such Secretary considers appropriate to protect 
     the interests of the United States.
       ``(h) Definitions.--In this section:
       ``(1) The term `appropriate committees of Congress' has the 
     meaning given that term in section 2801(c)(4) of this title.
       ``(2) The term `State' includes the District of Columbia, 
     the Commonwealth of Puerto Rico, the Commonwealth of the 
     Northern Marianas, and the territories and possessions of the 
     United States.
       ``(3) The term `base closure law' means the following:
       ``(A) Section 2687 of this title.
       ``(B) Title II of the Defense Authorization Amendments and 
     Base Closure and Realignment Act of 1988 (10 U.S.C. 2687 
     note).
       ``(C) The Defense Base Closure and Realignment Act of 1990 
     (part A of title XXIX of Public Law 101-510; 10 U.S.C. 2687 
     note).
       ``(D) Any other similar authority for the closure or 
     realignment of military installations that is enacted after 
     the date of the enactment of the National Defense 
     Authorization Act for Fiscal Year 2003.''.
       (2) The table of sections at the beginning of chapter 159 
     of that title, as amended by section 2811 of this Act, is 
     further amended by inserting after the item relating to 
     section 2687 the following new item:

``2698. Conveyance of surplus real property for natural resource 
              conservation.''.

       (b) Acceptance of Funds to Cover Administrative Expenses.--
     Section 2695(b) of that title is amended by adding at the end 
     the following new paragraph:
       ``(5) The conveyance of real property under section 2698 of 
     this title.''.
       (c) Agreements With Private Entities.--Section 2701(d) of 
     that title is amended--
       (1) in paragraph (1), by striking ``with any State or local 
     government agency, or with any Indian tribe,'' and inserting 
     ``any State or local government agency, any Indian tribe, or, 
     for purposes under section 2697 or 2698 of this title, with 
     any private entity''; and
       (2) by striking paragraph (4), as redesignated by section 
     311(1) of this Act, and inserting the following new paragraph 
     (4):
       ``(4) Definitions.--In this subsection:
       ``(A) The term `Indian tribe' has the meaning given such 
     term in section 101(36) of Comprehensive Environmental 
     Response, Compensation, and Liability Act of 1980 (42 U.S.C. 
     9601(36)).
       ``(B) The term `private entity' means any private entity 
     that has as its stated principal organizational purpose or 
     goal the conservation, restoration, or preservation of land 
     and natural resources, or a similar purpose or goal.''.

     SEC. 2813. MODIFICATION OF DEMONSTRATION PROGRAM ON REDUCTION 
                   IN LONG-TERM FACILITY MAINTENANCE COSTS.

       (a) Administrator of Program.--Subsection (a) of section 
     2814 of the Military Construction Authorization Act for 
     Fiscal Year 2002 (division B of Public Law 107-107; 115 Stat. 
     1310; 10 U.S.C. 2809 note) is amended by striking ``Secretary 
     of the Army'' and inserting ``Secretary of Defense or the 
     Secretary of a military department''.
       (b) Contracts.--Subsection (b) of that section is amended 
     to read as follows:
       ``(b) Contracts.--(1) Not more than 12 contracts may 
     contain requirements referred to in subsection (a) for the 
     purpose of the demonstration program.
       ``(2) Except as provided in paragraph (3), the 
     demonstration program may only cover contracts entered into 
     on or after the date of the enactment of the National Defense 
     Authorization Act for Fiscal Year 2003.
       ``(3) The Secretary of the Army shall treat any contract 
     containing requirements referred to in subsection (a) that 
     was entered into under the authority in that subsection 
     during the period beginning on December 28, 2001, and ending 
     on the date of the enactment of the National Defense 
     Authorization Act for Fiscal Year 2003 as a contract for the 
     purpose of the demonstration program under that 
     subsection.''.
       (c) Reporting Requirements.--Subsection (d) of that section 
     is amended by striking ``Secretary of the Army'' and 
     inserting ``Secretary of Defense''.
       (d) Funding.--(1) Subsection (f) of that section is amended 
     by striking ``the Army'' and inserting ``the military 
     departments or defense-wide''.
       (2) The amendment made by paragraph (1) shall not affect 
     the availability for the purpose of the demonstration program 
     under section 2814 of the Military Construction Authorization 
     Act for Fiscal Year 2002, as amended by this section, of any 
     amounts authorized to be appropriated before the date of the 
     enactment of this Act for the Army for military construction 
     that have been obligated for the demonstration program, but 
     not expended, as of that date.

                      Subtitle C--Land Conveyances

     SEC. 2821. CONVEYANCE OF CERTAIN LANDS IN ALASKA NO LONGER 
                   REQUIRED FOR NATIONAL GUARD PURPOSES.

       (a) Conveyance Authorized.--The Secretary of the Army may 
     convey to the State of Alaska, or any governmental entity, 
     Native Corporation, or Indian tribe within the State of 
     Alaska, all right, title, and interest of the United States 
     in and to any parcel of real property, including any 
     improvements thereon, described in subsection (b) that the 
     Secretary considers appropriate in the public interest.
       (b) Covered Property.--Real property described in this 
     subsection is any property located in the State of Alaska 
     that, as determined by the Secretary--

[[Page 12208]]

       (1) is currently under the jurisdiction of the Department 
     of the Army;
       (2) before December 2, 1980, was under the jurisdiction of 
     the Department of the Army for use of the Alaska National 
     Guard;
       (3) is located in a unit of the National Wildlife Refuge 
     System designated in the Alaska National Interest Lands 
     Conservation Act (94 Stat. 2371; 16 U.S.C. 1301 note);
       (4) is excess to the needs of the Alaska National Guard and 
     the Department of Defense; and
       (5) is in such condition that--
       (A) the anticipated cost to the United States of retaining 
     such property exceeds the value of such property; or
       (B) such property is unsuitable for retention by the United 
     States.
       (c) Consideration.--(1) The conveyance of real property 
     under this section shall, at the election of the Secretary, 
     be for no consideration or for consideration in an amount 
     determined by the Secretary to be appropriate under the 
     circumstances.
       (2) If consideration is received under paragraph (1) for 
     property conveyed under subsection (a), the Secretary may use 
     the amounts received, to the extent provided in 
     appropriations Acts, to pay for--
       (A) the cost of a survey described in subsection (d) with 
     respect to such property;
       (B) the cost of carrying out any environmental assessment, 
     study, or analysis, and any remediation, that may be required 
     under Federal law, or is considered appropriate by the 
     Secretary, in connection with such property or the conveyance 
     of such property; and
       (C) any other costs incurred by the Secretary in conveying 
     such property.
       (d) Description of Property.--The exact acreage and legal 
     description of any real property to be conveyed under 
     subsection (a) shall be determined by a survey satisfactory 
     to the Secretary.
       (e) Additional Terms and Conditions.--The Secretary may 
     require such additional terms and conditions in connection 
     with a conveyance of real property under this section as the 
     Secretary considers appropriate to protect the interests of 
     the United States.
       (f) Definitions.--In this section:
       (1) The term ``Indian tribe'' has the meaning given such 
     term in section 102 of the Federally Recognized Indian Tribe 
     List Act of 1994 (Public Law 103-454; 108 Stat. 4791; 25 
     U.S.C. 479a).
       (2) The term ``Native Corporation'' has the meaning given 
     such term in section 3 of the Alaska Native Claims Settlement 
     Act (43 U.S.C. 1602).

     SEC. 2822. LAND CONVEYANCE, FORT CAMPBELL, KENTUCKY.

       (a) Conveyance Authorized.--The Secretary of the Army may 
     convey, without consideration, to the City of Hopkinsville, 
     Kentucky (in this section referred to as the ``City''), all 
     right, title, and interest of the United States in and to a 
     parcel of real property at Fort Campbell, Kentucky, 
     consisting of approximately 50 acres and containing an 
     abandoned railroad spur for the purpose of permitting the 
     City to use the property for storm water management, 
     recreation, transportation, and other public purposes.
       (b) Reimbursement of Transaction Costs.--(1) The City shall 
     reimburse the Secretary for any costs incurred by the 
     Secretary in carrying out the conveyance authorized by 
     subsection (a).
       (2) Any reimbursement for costs that is received under 
     paragraph (1) shall be credited to the fund or account 
     providing funds for such costs. Amounts so credited shall be 
     merged with amounts in such fund or account, and shall be 
     available for the same purposes, and subject to the same 
     conditions and limitations, as amounts in such fund or 
     account.
       (c) Description of Property.--The acreage of the real 
     property to be conveyed under subsection (a) has been 
     determined by the Secretary through a legal description 
     outlining such acreage. No further survey of the property is 
     required before conveyance under that subsection.
       (d) Additional Terms and Conditions.--The Secretary may 
     require such additional terms and conditions in connection 
     with the conveyance under subsection (a) as the Secretary 
     considers appropriate to protect the interests of the United 
     States.

     SEC. 2823. MODIFICATION OF AUTHORITY FOR LAND TRANSFER AND 
                   CONVEYANCE, NAVAL SECURITY GROUP ACTIVITY, 
                   WINTER HARBOR, MAINE.

       (a) Modification of Conveyance Authority for Corea and 
     Winter Harbor Properties.--Section 2845 of the Military 
     Construction Authorization Act for Fiscal Year 2002 (division 
     B of Public Law 107-107; 115 Stat. 1319) is amended--
       (1) by striking subsection (b) and inserting the following 
     new subsection (b):
       ``(b) Conveyance and Transfer of Corea and Winter Harbor 
     Properties Authorized.--(1) The Secretary of the Navy may 
     convey, without consideration, to the State of Maine, any 
     political subdivision of the State of Maine, or any tax-
     supported agency in the State of Maine, all right, title, and 
     interest of the United States in and to parcels of real 
     property, including any improvements thereon and 
     appurtenances thereto, comprising the former facilities of 
     the Naval Security Group Activity, Winter Harbor, Maine, as 
     follows:
       ``(A) The parcel consisting of approximately 50 acres known 
     as the Corea Operations Site.
       ``(B) Three parcels consisting of approximately 23 acres 
     and comprising family housing facilities.
       ``(2) The Secretary of the Navy may transfer to the 
     administrative jurisdiction of the Secretary of the Interior 
     a parcel of real property consisting of approximately 404 
     acres at the former Naval Security Group Activity, which is 
     the balance of the real property comprising the Corea 
     Operations Site.
       ``(3) The Secretary of the Interior shall administer the 
     property transferred under paragraph (2) as part of the 
     National Wildlife Refuge System.''; and
       (2) in subsections (c), (d), (e), (f), (g), and (h), by 
     striking ``subsection (b)'' each place it appears and 
     inserting ``subsection (b)(1)''.
       (b) Exemption of Modified Conveyances from Federal 
     Screening Requirement.--That section is further amended--
       (1) by redesignating subsections (g) and (h) as subsections 
     (h) and (i), respectively; and
       (2) by inserting after subsection (f) the following new 
     subsection (g):
       ``(g) Exemption of Certain Conveyances From Federal 
     Screening.--Any conveyance authorized by subsection (b)(1) of 
     this section, as amended by section 2823 of the National 
     Defense Authorization Act for Fiscal Year 2003, is exempt 
     from the requirement to screen the property concerned for 
     further Federal use pursuant to section 2696 of title 10, 
     United States Code.''.

     SEC. 2824. LAND CONVEYANCE, WESTOVER AIR RESERVE BASE, 
                   MASSACHUSETTS.

       (a) Conveyance Authorized.--The Secretary of the Navy may 
     convey, without consideration, to the City of Chicopee, 
     Massachusetts (in this section referred to as the ``City''), 
     all right, title, and interest of the United States in and to 
     a parcel of real property, including 133 housing units and 
     other improvements thereon, consisting of approximately 30.38 
     acres located at Westover Air Reserve Base in Chicopee, 
     Massachusetts, for the purpose of permitting the City to use 
     the property for economic development and other public 
     purposes.
       (b) Administrative Expenses.--(1) The Secretary may require 
     the City to reimburse the Secretary for the costs incurred by 
     the Secretary to carry out the conveyance under subsection 
     (a), including survey costs, costs related to environmental 
     documentation (other than the environmental baseline survey), 
     and other administrative costs related to the conveyance.
       (2) Section 2695(c) of title 10, United States Code, shall 
     apply to any amount received under this subsection.
       (c) Description of Property.--The exact acreage and legal 
     description of the real property to be conveyed under 
     subsection (a) shall be determined by a survey satisfactory 
     to the Secretary.
       (d) Additional Terms and Conditions.--The Secretary may 
     require such additional terms and conditions in connection 
     with the conveyance under subsection (a) as the Secretary 
     considers appropriate to protect the interests of the United 
     States.

     SEC. 2825. LAND CONVEYANCE, NAVAL STATION NEWPORT, RHODE 
                   ISLAND.

       (a) Conveyance Authorized.--The Secretary of the Navy may 
     convey to the State of Rhode Island, or any political 
     subdivision thereof, any or all right, title, and interest of 
     the United States in and to a parcel of real property, 
     together with improvements thereon, consisting of 
     approximately 34 acres located in Melville, Rhode Island, and 
     known as the Melville Marina site.
       (b) Consideration.--(1) As consideration for the conveyance 
     of real property under subsection (a), the conveyee shall pay 
     the United States an amount equal to the fair market value of 
     the real property, as determined by the Secretary based on an 
     appraisal of the real property acceptable to the Secretary.
       (2) Any consideration received under paragraph (1) shall be 
     deposited in the account established under section 204(h) of 
     the Federal Property and Administrative Services Act of 1949 
     (40 U.S.C. 485(h)), and shall be available as provided for in 
     that section.
       (c) Reimbursement of Transaction Costs.--(1) The Secretary 
     may require the conveyee of the real property under 
     subsection (a) to reimburse the Secretary for any costs 
     incurred by the Secretary in carrying out the conveyance.
       (2) Any reimbursement for costs that is received under 
     paragraph (1) shall be credited to the fund or account 
     providing funds for such costs. Amounts so credited shall be 
     merged with amounts in such fund or account, and shall be 
     available for the same purposes, and subject to the same 
     conditions and limitations, as amounts in such fund or 
     account.
       (d) Description of Property.--The exact acreage and legal 
     description of the real property to be conveyed under 
     subsection (a) shall be determined by a survey satisfactory 
     to the Secretary.
       (e) Additional Terms and Conditions.--The Secretary may 
     require such additional terms and conditions in connection 
     with the conveyance under subsection (a) as the Secretary 
     considers appropriate to protect the interests of the United 
     States.

[[Page 12209]]



     SEC. 2826. LAND EXCHANGE, BUCKLEY AIR FORCE BASE, COLORADO.

       (a) Exchange Authorized.--Subject to subsection (b), the 
     Secretary of the Air Force may convey to the State of 
     Colorado (in this section referred to as the ``State'') all 
     right, title, and interest of the United States in and to a 
     parcel of real property, including improvements thereon, 
     consisting of all or part of the Watkins Communications Site 
     in Arapahoe County, Colorado.
       (b) Limitation.--The Secretary of the Air Force may carry 
     out the conveyance authorized by subsection (a) only with the 
     concurrence of the Secretary of Defense.
       (c) Consideration.--(1) As consideration for the conveyance 
     authorized by subsection (a) the State shall convey to the 
     United States of all right, title, and interest of the State 
     in and to a parcel of real property, including improvements 
     thereon, consisting of approximately 41 acres that is owned 
     by the State and is contiguous to Buckley Air Force Base, 
     Colorado.
       (2) The Secretary shall have jurisdiction over the real 
     property conveyed under paragraph (1).
       (3) Upon conveyance to the United States under paragraph 
     (1), the real property conveyed under that paragraph is 
     withdrawn from all forms of appropriation under the general 
     land laws, including the mining laws and mineral and 
     geothermal leasing laws.
       (d) Description of Property.--The exact acreage and legal 
     description of the parcels of real property to be conveyed 
     under this section shall be determined by surveys 
     satisfactory to the Secretary.
       (e) Additional Terms and Conditions.--The Secretary may 
     require such additional terms and conditions in connection 
     with the conveyances under authorized by this section as the 
     Secretary considers appropriate to protect the interests of 
     the United States.

     SEC. 2827. LAND ACQUISITION, BOUNDARY CHANNEL DRIVE SITE, 
                   ARLINGTON, VIRGINIA.

       (a) Acquisition Authorized.--The Secretary of Defense may, 
     using amounts authorized to be appropriated to be 
     appropriated by section 2401, acquire all right, title, and 
     interest in and to a parcel of real property, including any 
     improvements thereon, in Arlington County, Virginia, 
     consisting of approximately 7.2 acres and known as the 
     Boundary Channel Drive Site. The parcel is located southeast 
     of Interstate Route 395 at the end of Boundary Channel Drive 
     and was most recently occupied by the Twin Bridges Marriott.
       (b) Inclusion in Pentagon Reservation.--Upon its 
     acquisition under subsection (a), the parcel acquired under 
     that subsection shall be included in the Pentagon 
     Reservation, as that term is defined in section 2674(f)(1) of 
     title 10, United States Code.
       (c) Description of Property.--The exact acreage and legal 
     description of the real property to be acquired under 
     subsection (a) shall be determined by a survey satisfactory 
     to the Secretary.
       (d) Terms and Conditions.--The Secretary may require such 
     terms and conditions in connection with the acquisition under 
     this section as the Secretary considers appropriate to 
     protect the interests of the United States.

     SEC. 2828. LAND CONVEYANCES, WENDOVER AIR FORCE BASE 
                   AUXILIARY FIELD, NEVADA.

       (a) Conveyances Authorized to West Wendover, Nevada.--(1) 
     The Secretary of the Interior may convey, without 
     consideration, to the City of West Wendover, Nevada, all 
     right, title, and interest of the United States in and to the 
     following:
       (A) The lands at Wendover Air Force Base Auxiliary Field, 
     Nevada, identified in Easement No. AFMC-HL-2-00-334 that are 
     determined by the Secretary of the Air Force to be no longer 
     required.
       (B) The lands at Wendover Air Force Base Auxiliary Field 
     identified for disposition on the map entitled ``West 
     Wendover, Nevada-Excess'', dated January 5, 2001, that are 
     determined by the Secretary of the Air Force to be no longer 
     required.
       (2) The purposes of the conveyances under this subsection 
     are--
       (A) to permit the establishment and maintenance of runway 
     protection zones; and
       (B) to provide for the development of an industrial park 
     and related infrastructure.
       (3) The map referred to in paragraph (1)(B) shall be on 
     file and available for public inspection in the offices of 
     the Director of the Bureau of Land Management and the Elko 
     District Office of the Bureau of Land Management.
       (b) Conveyance Authorized to Tooele County, Utah.--(1) The 
     Secretary of the Interior may convey, without consideration, 
     to Tooele County, Utah, all right, title, and interest of the 
     United States in and to the lands at Wendover Air Force Base 
     Auxiliary Field identified in Easement No. AFMC-HL-2-00-318 
     that are determined by the Secretary of the Air Force to be 
     no longer required.
       (2) The purpose of the conveyance under this subsection is 
     to permit the establishment and maintenance of runway 
     protection zones and an aircraft accident potential 
     protection zone as necessitated by continued military 
     aircraft operations at the Utah Test and Training Range.
       (c) Management of Conveyed Lands.--The lands conveyed under 
     subsections (a) and (b) shall be managed by the City of West 
     Wendover, Nevada, City of Wendover, Utah, Tooele County, 
     Utah, and Elko County, Nevada--
       (1) in accordance with the provisions of an Interlocal 
     Memorandum of Agreement entered into between the Cities of 
     West Wendover, Nevada, and Wendover, Utah, Tooele County, 
     Utah, and Elko County, Nevada, providing for the coordinated 
     management and development of the lands for the economic 
     benefit of both communities; and
       (2) in a manner that is consistent with such provisions of 
     the easements referred to subsections (a) and (b) that, as 
     jointly determined by the Secretary of the Air Force and 
     Secretary of the Interior, remain applicable and relevant to 
     the operation and management of the lands following 
     conveyance and are consistent with the provisions of this 
     section.
       (d) Additional Terms and Conditions.--The Secretary of the 
     Air Force and the Secretary of the Interior may jointly 
     require such additional terms and conditions in connection 
     with the conveyances required by subsections (a) and (b) as 
     the Secretaries consider appropriate to protect the interests 
     of the United States.

     SEC. 2829. LAND CONVEYANCE, FORT HOOD, TEXAS.

       (a) Conveyance Authorized.--The Secretary of the Army may 
     convey, without consideration, to the Veterans Land Board of 
     the State of Texas (in this section referred to as the 
     ``Board''), all right, title, and interest of the United 
     States in and to a parcel of real property, including any 
     improvements thereon, consisting of approximately 174 acres 
     at Fort Hood, Texas, for the purpose of permitting the Board 
     to establish a State-run cemetery for veterans.
       (b) Reversionary Interest.--(1) If at the end of the five-
     year period beginning on the date of the conveyance 
     authorized by subsection (a), the Secretary determines that 
     the property conveyed under that subsection is not being used 
     for the purpose specified in that subsection, all right, 
     title, and interest in and to the property, including any 
     improvements thereon, shall revert to the United States, and 
     the United States shall have the right of immediate entry 
     thereon.
       (2) Any determination of the Secretary under this 
     subsection shall be made on the record after an opportunity 
     for a hearing.
       (c) Description of Property.--The exact acreage and legal 
     description of the real property to be conveyed under 
     subsection (a) shall be determined by a survey satisfactory 
     to the Secretary. The cost of the survey shall be borne by 
     the Board.
       (d) Additional Terms and Conditions.--The Secretary may 
     require such additional terms and conditions in connection 
     with the conveyance under subsection (a) as the Secretary 
     considers appropriate to protect the interests of the United 
     States.

     SEC. 2830. LAND CONVEYANCES, ENGINEER PROVING GROUND, FORT 
                   BELVOIR, VIRGINIA.

       (a) Conveyance to Fairfax County, Virginia, Authorized.--
     (1) The Secretary of the Army may convey, without 
     consideration, to Fairfax County, Virginia, all right, title, 
     and interest of the United States in and to a parcel of real 
     property, including any improvements thereon, consisting of 
     approximately 135 acres, located in the northwest portion of 
     the Engineer Proving Ground (EPG) at Fort Belvoir, Virginia, 
     in order to permit the County to use such property for park 
     and recreational purposes.
       (2) The parcel of real property authorized to be conveyed 
     by paragraph (1) is generally described as that portion of 
     the Engineer Proving Ground located west of Accotink Creek, 
     east of the Fairfax County Parkway, and north of Cissna Road 
     to the northern boundary, but excludes a parcel of land 
     consisting of approximately 15 acres located in the southeast 
     corner of such portion of the Engineer Proving Ground.
       (3) The land excluded under paragraph (2) from the parcel 
     of real property authorized to be conveyed by paragraph (1) 
     shall be reserved for an access road to be constructed in the 
     future.
       (b) Conveyance of Balance of Property Authorized.--The 
     Secretary may convey to any competitively selected grantee 
     all right, title, and interest of the United States in and to 
     the real property, including any improvements thereon, at the 
     Engineering Proving Ground, not conveyed under the authority 
     in subsection (a).
       (c) Consideration.--(1) As consideration for the conveyance 
     authorized by subsection (b), the grantee shall provide the 
     United States, whether by cash payment, in-kind contribution, 
     or a combination thereof, an amount that is not less than the 
     fair market value, as determined by the Secretary, of the 
     property conveyed under that subsection.
       (2) In-kind consideration under paragraph (1) may include 
     the maintenance, improvement, alteration, repair, remodeling, 
     restoration (including environmental restoration), or 
     construction of facilities for the Department of the Army at 
     Fort Belvoir or at any other site or sites designated by the 
     Secretary.
       (3) If in-kind consideration under paragraph (1) includes 
     the construction of facilities, the grantee shall also convey 
     to the United States--

[[Page 12210]]

       (A) title to such facilities, free of all liens and other 
     encumbrances; and
       (B) if the United States does not have fee simple title to 
     the land underlying such facilities, convey to the United 
     States all right, title, and interest in and to such lands 
     not held by the United States.
       (4) The Secretary shall deposit any cash received as 
     consideration under this subsection in the special account 
     established pursuant to section 204(h) of the Federal 
     Property and Administrative Services Act of 1949 (40 U.S.C. 
     485(h)).
       (d) Repeal of Superseded Authority.--Section 2821 of the 
     Military Construction Authorization Act for Fiscal Years 1990 
     and 1991 (division B of Public Law 101-189; 103 Stat. 1658), 
     as amended by section 2854 of the Military Construction 
     Authorization Act for Fiscal Year 1996 (division B of Public 
     Law 104-106; 110 Stat. 568), is repealed.
       (e) Description of Property.--The exact acreage and legal 
     description of the real property to be conveyed under 
     subsections (a) and (b) shall be determined by surveys 
     satisfactory to the Secretary. The cost of each such survey 
     shall be borne by the grantee.
       (f) Additional Terms and Conditions.--The Secretary may 
     require such additional terms and conditions in connection 
     with the conveyances under subsections (a) and (b) as the 
     Secretary considers appropriate to protect the interests of 
     the United States.

     SEC. 2831. MASTER PLAN FOR USE OF NAVY ANNEX, ARLINGTON, 
                   VIRGINIA.

       (a) Repeal of Commission on National Military Museum.--
     Title XXIX of the Military Construction Authorization Act for 
     Fiscal Year 2000 (division B of Public Law 106-65; 113 Stat. 
     880; 10 U.S.C. 111 note) is repealed.
       (b) Modification of Authority for Transfer from Navy 
     Annex.--Section 2881 of the Military Construction 
     Authorization Act for Fiscal Year 2000 (113 Stat. 879) is 
     amended--
       (1) in subsection (b)(2), as amended by section 2863(f) of 
     the Military Construction Authorization Act for Fiscal Year 
     2002 (division B of Public Law 107-107; 115 Stat. 1332), by 
     striking ``as a 
     site--'' and all that follows and inserting ``as a site for 
     such other memorials or museums that the Secretary considers 
     compatible with Arlington National Cemetery and the Air Force 
     Memorial.''; and
       (2) in subsection (d)--
       (A) in paragraph (2), by striking ``the recommendation (if 
     any) of the Commission on the National Military Museum to use 
     a portion of the Navy Annex property as the site for the 
     National Military Museum'', and inserting ``the use of the 
     acres reserved under (b)(2) as a memorial or museum''; and
       (B) in paragraph (4), by striking ``the date on which the 
     Commission on the National Military Museum submits to 
     Congress its report under section 2903'' and inserting ``the 
     date of the enactment of the National Defense Authorization 
     Act for Fiscal Year 2003''.
       (c) Construction of Amendments.--The amendments made by 
     subsections (a) and (b) may not be construed to delay the 
     establishment of the United States Air Force Memorial 
     authorized by section 2863 of the Military Construction 
     Authorization Act for Fiscal Year 2002 (115 Stat. 1330).

     SEC. 2832. LAND CONVEYANCE, SUNFLOWER ARMY AMMUNITION PLANT, 
                   KANSAS.

       (a) Conveyance Authorized.--The Secretary of the Army or 
     the Administrator of General Services may convey, without 
     consideration, to the Johnson County Park and Recreation 
     District, Kansas (in this section referred to as the 
     ``District''), all right, title, and interest of the United 
     States in and to a parcel of real property, including any 
     improvements thereon, in the State of Kansas consisting of 
     approximately 2,000 acres, a portion of the Sunflower Army 
     Ammunition Plant. The purpose of the conveyance is to permit 
     the District to use the parcel for public recreational 
     purposes.
       (b) Description of Property.--The exact acreage, location, 
     and legal description of the real property to be conveyed 
     under subsection (a) shall be determined by a survey 
     satisfactory to the official making the conveyance. The cost 
     of such legal description, survey, or both shall be borne by 
     the District.
       (c) Additional Terms and Conditions.--The official making 
     the conveyance of real property under subsection (a) may 
     require such additional terms and conditions in connection 
     with the conveyance as that official considers appropriate to 
     protect the interests of the United States.
       (d) Effective Date.--This section shall take effect on 
     January 31, 2003.

     SEC. 2833. LAND CONVEYANCE, BLUEGRASS ARMY DEPOT, RICHMOND, 
                   KENTUCKY.

       (a) Conveyance Authorized.--(1) The Secretary of the Army 
     may convey, without consideration, to Madison County, 
     Kentucky (in this section referred to as the ``County''), all 
     right, title, and interest of the United States in and to a 
     parcel of real property, including any improvements thereon, 
     consisting of approximately 10 acres at the Bluegrass Army 
     Depot, Richmond, Kentucky, for the purpose of facilitating 
     the construction of a veterans' center on the parcel by the 
     State of Kentucky.
       (2) The Secretary may not make the conveyance authorized by 
     this subsection unless the Secretary determines that the 
     State of Kentucky has appropriated adequate funds for the 
     construction of the veterans' center.
       (b) Reversionary Interest.--If the Secretary determines 
     that the real property conveyed under subsection (a) ceases 
     to be utilized for the sole purpose of a veterans' center or 
     that reasonable progress is not demonstrated in constructing 
     the center and initiating services to veterans, all right, 
     title, and interest in and to the property shall revert to 
     the United States, and the United States shall have the right 
     of immediate entry onto the property. Any determination under 
     this subsection shall be made on the record after an 
     opportunity for a hearing.
       (c) Administrative Expenses.--The Secretary shall apply 
     section 2695 of title 10, United States Code, to the 
     conveyance authorized by subsection (a).
       (d) Description of Property.--The exact acreage and legal 
     description of the real property to be conveyed under 
     subsection (a) shall be determined by a survey satisfactory 
     to the Secretary. The cost of the survey shall be borne by 
     the County.
       (e) Additional Terms and Conditions.--The Secretary may 
     require such additional terms and conditions in connection 
     with the conveyance under subsection (a) as the Secretary 
     considers appropriate to protect the interests of the United 
     States.

                       Subtitle D--Other Matters

     SEC. 2841. TRANSFER OF FUNDS FOR ACQUISITION OF REPLACEMENT 
                   PROPERTY FOR NATIONAL WILDLIFE REFUGE SYSTEM 
                   LANDS IN NEVADA.

       (a) Transfer of Funds Authorized.--(1) The Secretary of the 
     Air Force may, using amounts authorized to be appropriated by 
     section 2304(a), transfer to the United States Fish and 
     Wildlife Service $15,000,000 to fulfill the obligations of 
     the Air Force under section 3011(b)(5)(F) of the Military 
     Lands Withdrawal Act of 1999 (title XXX of Public Law 106-65; 
     113 Stat. 889).
       (2) Upon receipt by the Service of the funds transferred 
     under paragraph (1), the obligations of the Air Force 
     referred to in that paragraph shall be considered fulfilled.
       (b) Contribution to Foundation.--(1) The United States Fish 
     and Wildlife Service may grant funds received by the Service 
     under subsection (a) in a lump sum to the National Fish and 
     Wildlife Foundation for use in accomplishing the purposes of 
     section 3011(b)(5)(F) of the Military Lands Withdrawal Act of 
     1999.
       (2) Funds received by the Foundation under paragraph (1) 
     shall be subject to the provisions of the National Fish and 
     Wildlife Foundation Establishment Act (16 U.S.C. 3701 et 
     seq.), other than section 10(a) of that Act (16 U.S.C. 
     3709(a)).

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

      TITLE XXXI--DEPARTMENT OF ENERGY NATIONAL SECURITY PROGRAMS

         Subtitle A--National Security Programs Authorizations

     SEC. 3101. NATIONAL NUCLEAR SECURITY ADMINISTRATION.

       Funds are hereby authorized to be appropriated to the 
     Department of Energy for fiscal year 2003 for the activities 
     of the National Nuclear Security Administration in carrying 
     out programs necessary for national security in the amount of 
     $8,160,043,000, to be allocated as follows:
       (1) Weapons activities.--For weapons activities, 
     $5,988,188,000, to be allocated as follows:
       (A) For directed stockpile work, $1,218,967,000.
       (B) For campaigns, $2,090,528,000, to be allocated as 
     follows:
       (i) For operation and maintenance, $1,740,983,000.
       (ii) For construction, $349,545,000, to be allocated as 
     follows:

       Project 01-D-101, distributed information systems 
     laboratory, Sandia National Laboratories, Livermore, 
     California, $13,305,000.
       Project 00-D-103, terascale simulation facility, Lawrence 
     Livermore National Laboratory, Livermore, California, 
     $35,030,000.
       Project 00-D-107, joint computational engineering 
     laboratory, Sandia National Laboratories, Albuquerque, New 
     Mexico, $7,000,000.
       Project 98-D-125, tritium extraction facility, Savannah 
     River Plant, Aiken, South Carolina, $70,165,000.
       Project 96-D-111, national ignition facility (NIF), 
     Lawrence Livermore National Laboratory, Livermore, 
     California, $224,045,000.

       (C) For readiness in technical base and facilities, 
     $1,735,129,000, to be allocated as follows:
       (i) For operation and maintenance, $1,464,783,000.
       (ii) For plant projects (including maintenance, 
     restoration, planning, construction, acquisition, 
     modification of facilities, and the continuation of projects 
     authorized in prior years, and land acquisition related 
     thereto), $270,346,000, to be allocated as follows:

       Project 03-D-101, Sandia underground reactor facility 
     (SURF), Sandia National Laboratory, Livermore, California, 
     $2,000,000.
       Project 03-D-103, project engineering and design (PED), 
     various locations, $17,839,000.

[[Page 12211]]

       Project 03-D-121, gas transfer capacity expansion, Kansas 
     City Plant, Kansas City, Missouri, $4,000,000.
       Project 03-D-122, purification prototype facility, Y-12 
     Plant, Oak Ridge, Tennessee, $20,800,000.
       Project 03-D-123, special nuclear material component 
     requalification facility, Pantex Plant, Amarillo, Texas, 
     $3,000,000
       Project 02-D-103, project engineering and design (PED), 
     various locations, $24,945,000.
       Project 02-D-105, engineering technology complex upgrade, 
     Lawrence Livermore National Laboratory, Livermore, 
     California, $10,000,000.
       Project 02-D-107, electrical power systems safety 
     communications and bus upgrades, Nevada Test Site, Nevada, 
     $7,500,000.
       Project 01-D-103, project engineering and design (PED), 
     various locations, $6,164,000.
       Project 01-D-107, Atlas relocation, Nevada Test Site, 
     Nevada, $4,123,000.
       Project 01-D-108, microsystems and engineering sciences 
     applications (MESA), Sandia National Laboratories, 
     Albuquerque, New Mexico, $75,000,000.
       Project 01-D-124, HEU storage facility, Y-12 Plant, Oak 
     Ridge, Tennessee, $25,000,000.
       Project 01-D-126, weapons evaluation test laboratory, 
     Pantex Plant, Amarillo, Texas, $8,650,000.
       Project 01-D-800, sensitive compartmented information 
     facility, Lawrence Livermore National Laboratory, Livermore, 
     California, $9,611,000.
       Project 99-D-103, isotope sciences facilities, Lawrence 
     Livermore National Laboratory, Livermore, California, 
     $4,011,000.
       Project 99-D-104, protection of real property (roof 
     reconstruction, phase II), Lawrence Livermore National 
     Laboratory, Livermore, California, $5,915,000.
       Project 99-D-127, stockpile management restructuring 
     initiative, Kansas City Plant, Kansas City, Missouri, 
     $29,900,000.
       Project 99-D-128, stockpile management restructuring 
     initiative, Pantex Plant, Amarillo, Texas, $407,000.
       Project 98-D-123, stockpile management restructuring 
     initiative, tritium facility modernization and consolidation, 
     Savannah River Plant, Aiken, South Carolina, $10,481,000.
       Project 96-D-102, stockpile stewardship facilities 
     revitalization, Phase VI, various locations, $1,000,000.

       (C) For secure transportation asset, $157,083,000, to be 
     allocated as follows:
       (i) For operation and maintenance, $102,578,000.
       (ii) For program direction, $54,505,000.
       (D) For safeguards and security, $574,954,000, to be 
     allocated as follows:
       (i) For operation and maintenance, $566,054,000.
       (ii) For plant projects (including maintenance, 
     restoration, planning, construction, acquisition, 
     modification of facilities, and the continuation of projects 
     authorized in prior years, and land acquisition related 
     thereto), $8,900,000, to be allocated as follows:

       Project 99-D-132, stockpile management restructuring 
     initiative, nuclear material safeguards and security upgrades 
     project, Los Alamos National Laboratory, Los Alamos, New 
     Mexico, $8,900,000.

       (E) For facilities and infrastructure, $242,512,000.
       (2) Defense nuclear nonproliferation.--For defense nuclear 
     nonproliferation activities, $1,129,130,000, to be allocated 
     as follows:
       (A) For operation and maintenance, $1,037,130,000, to be 
     allocated as follows:
       (i) For nonproliferation and verification research and 
     development, $298,907,000.
       (ii) For nonproliferation programs, $446,223,000.
       (iii) For fissile materials, $292,000,000.
       (B) For plant projects (including maintenance, restoration, 
     planning, construction, acquisition, modification of 
     facilities, and the continuation of projects authorized in 
     prior years, and land acquisition related thereto), 
     $156,000,000, to be allocated as follows:
       Project 01-D-407, highly enriched uranium blend-down, 
     Savannah River Site, Aiken, South Carolina, $30,000,000.
       Project 99-D-141, pit disassembly and conversion facility, 
     Savannah River Site, Aiken, South Carolina, $33,000,000.
       Project 99-D-143, mixed oxide fuel fabrication facility, 
     Savannah River Site, Aiken, South Carolina, $93,000,000.
       (3) Naval reactors.--For naval reactors, $707,020,000, to 
     be allocated as follows:
       (A) For naval reactors development, $682,590,000, to be 
     allocated as follows:
       (i) For operation and maintenance, $671,290,000.
       (ii) For plant projects (including maintenance, 
     restoration, planning, construction, acquisition, 
     modification of facilities, and the continuation of projects 
     authorized in prior years, and land acquisition related 
     thereto), $11,300,000, to be allocated as follows:

       Project 03-D-201, cleanroom technology facility, Bettis 
     Atomic Power Laboratory, West Mifflin, Pennsylvania, 
     $7,200,000.
       Project 01-D-200, major office replacement building, 
     Schenectady, New York, $2,100,000.
       Project 90-N-102, expended core facility dry cell project, 
     Naval Reactors Facility, Idaho, $2,000,000.

       (B) For program direction, $24,430,000.
       (4) Office of administrator for nuclear security.--For the 
     Office of the Administrator for Nuclear Security, and for 
     program direction for the National Nuclear Security 
     Administration (other than for naval reactors and secure 
     transportation asset), $335,705,000.

     SEC. 3102. DEFENSE ENVIRONMENTAL MANAGEMENT.

       Funds are hereby authorized to be appropriated to the 
     Department of Energy for fiscal year 2003 for environmental 
     management activities in carrying out programs necessary for 
     national security in the amount of $6,710,774,000, to be 
     allocated as follows:
       (1) Closure projects.--For closure projects carried out in 
     accordance with section 3143 of the National Defense 
     Authorization Act for Fiscal Year 1997 (Public Law 104-201; 
     110 Stat. 2836; 42 U.S.C. 7277n), $1,109,314,000.
       (2) Site/project completion.--For site completion and 
     project completion in carrying out environmental management 
     activities necessary for national security programs, 
     $793,950,000, to be allocated as follows:
       (A) For operation and maintenance, $779,706,000.
       (B) For plant projects (including maintenance, restoration, 
     planning, construction, acquisition, modification of 
     facilities, and the continuation of projects authorized in 
     prior years, and land acquisition related thereto), 
     $14,244,000, to be allocated as follows:
       Project 02-D-402, Intec cathodic protection system 
     expansion, Idaho National Engineering and Environmental 
     Laboratory, Idaho Falls, Idaho, $1,119,000.
       Project 02-D-420, plutonium stabilization and packaging, 
     Savannah River Site, Aiken, South Carolina, $2,000,000.
       Project 01-D-414, project engineering and design (PED), 
     various locations, $5,125,000.
       Project 86-D-103, decontamination and waste treatment 
     facility, Lawrence Livermore National Laboratory, Livermore, 
     California, $6,000,000.
       (3) Post-2006 completion.--For post-2006 completion in 
     carrying out environmental restoration and waste management 
     activities necessary for national security programs, 
     $2,617,199,000, to be allocated as follows:
       (A) For operation and maintenance, $1,704,341,000.
       (B) For plant projects (including maintenance, restoration, 
     planning, construction, acquisition, modification of 
     facilities, and the continuation of projects authorized in 
     prior years, and land acquisition related thereto), 
     $14,870,000, to be allocated as follows:
       Project 93-D-187, high-level waste removal from filled 
     waste tanks, Savannah River Site, Aiken, South Carolina, 
     $14,870,000.
       (C) For the Office of River Protection in carrying out 
     environmental restoration and waste management activities 
     necessary for national security programs, $897,988,000, to be 
     allocated as follows:
       (i) For operation and maintenance, $226,256,000.
       (ii) For plant projects (including maintenance, 
     restoration, planning, construction, acquisition, 
     modification of facilities, and the continuation of projects 
     authorized in prior years, and land acquisition related 
     thereto), $671,732,000, to be allocated as follows:

       Project 03-D-403, immobilized high-level waste interim 
     storage facility, Richland, Washington, $6,363,000.
       Project 01-D-416, waste treatment and immobilization plant, 
     Richland, Washington, $619,000,000.
       Project 97-D-402, tank farm restoration and safe 
     operations, Richland, Washington, $25,424,000.
       Project 94-D-407, initial tank retrieval systems, Richland, 
     Washington, $20,945,000.

       (4) Science and technology development.--For science and 
     technology development in carrying out environmental 
     management activities necessary for national security 
     programs, $92,000,000.
       (5) Excess facilities.--For excess facilities in carrying 
     out environmental management activities necessary for 
     national security programs, $1,300,000.
       (6) Safeguards and security.--For safeguards and security 
     in carrying out environmental management activities necessary 
     for national security programs, $278,260,000.
       (7) Uranium enrichment decontamination and decommissioning 
     fund.--For contribution to the Uranium Enrichment 
     Decontamination and Decommissioning Fund under chapter 28 of 
     the Atomic Energy Act of 1954 (42 U.S.C. 2297g et seq.), 
     $441,000,000.
       (8) Environmental management cleanup reform.--For 
     accelerated environmental restoration and waste management 
     activities, $1,000,000,000.
       (9) Program direction.--For program direction in carrying 
     out environmental restoration and waste management activities 
     necessary for national security programs, $396,098,000.

     SEC. 3103. OTHER DEFENSE ACTIVITIES.

       Funds are hereby authorized to be appropriated to the 
     Department of Energy for fiscal year 2003 for other defense 
     activities in carrying out programs necessary for national 
     security in the amount of $489,883,000, to be allocated as 
     follows:
       (1) Intelligence.--For intelligence, $43,559,000.

[[Page 12212]]

       (2) Counterintelligence.--For counterintelligence, 
     $48,083,000.
       (3) Office of security.--For the Office of Security for 
     security, $252,218,000, to be allocated as follows:
       (A) For nuclear safeguards and security, $156,102,000.
       (B) For security investigations, $45,870,000.
       (C) For program direction, $50,246,000.
       (4) Independent oversight and performance assurance.--For 
     independent oversight and performance assurance, $22,615,000.
       (5) Office of environment, safety, and health.--For the 
     Office of Environment, Safety, and Health, $104,910,000, to 
     be allocated as follows:
       (A) For environment, safety, and health (defense), 
     $86,892,000.
       (B) For program direction, $18,018,000.
       (6) Worker and community transition assistance.--For worker 
     and community transition assistance, $25,774,000, to be 
     allocated as follows:
       (A) For worker and community transition, $22,965,000.
       (B) For program direction, $2,809,000.
       (7) Office of hearings and appeals.--For the Office of 
     Hearings and Appeals, $3,136,000.

     SEC. 3104. DEFENSE ENVIRONMENTAL MANAGEMENT PRIVATIZATION.

       Funds are hereby authorized to be appropriated to the 
     Department of Energy for fiscal year 2003 for privatization 
     initiatives in carrying out environmental restoration and 
     waste management activities necessary for national security 
     programs in the amount of $158,399,000, to be allocated as 
     follows:
       Project 98-PVT-2, spent nuclear fuel dry storage, Idaho 
     Falls, Idaho, $53,399,000.
       Project 97-PVT-2, advanced mixed waste treatment project, 
     Idaho Falls, Idaho, $105,000,000.

     SEC. 3105. DEFENSE NUCLEAR WASTE DISPOSAL.

       Funds are hereby authorized to be appropriated to the 
     Department of Energy for fiscal year 2003 for payment to the 
     Nuclear Waste Fund established in section 302(c) of the 
     Nuclear Waste Policy Act of 1982 (42 U.S.C. 10222(c)) in the 
     amount of $215,000,000.

                Subtitle B--Recurring General Provisions

     SEC. 3121. REPROGRAMMING.

       (a) In General.--Until the Secretary of Energy submits to 
     the congressional defense committees the report referred to 
     in subsection (b) and a period of 30 days has elapsed after 
     the date on which such committees receive the report, the 
     Secretary may not use amounts appropriated pursuant to this 
     title for any program--
       (1) in amounts that exceed, in a fiscal year--
       (A) 115 percent of the amount authorized for that program 
     by this title; or
       (B) $5,000,000 more than the amount authorized for that 
     program by this title; or
       (2) which has not been presented to, or requested of, 
     Congress.
       (b) Report.--(1) The report referred to in subsection (a) 
     is a report containing a full and complete statement of the 
     action proposed to be taken and the facts and circumstances 
     relied upon in support of the proposed action.
       (2) In the computation of the 30-day period under 
     subsection (a), there shall be excluded any day on which 
     either House of Congress is not in session because of an 
     adjournment of more than 3 days to a day certain.
       (c) Limitations.--(1) In no event may the total amount of 
     funds obligated pursuant to this title exceed the total 
     amount authorized to be appropriated by this title.
       (2) Funds appropriated pursuant to this title may not be 
     used for an item for which Congress has specifically denied 
     funds.

     SEC. 3122. LIMITS ON MINOR CONSTRUCTION PROJECTS.

       (a) Authority.--The Secretary of Energy may carry out any 
     minor construction project using operation and maintenance 
     funds, or facilities and infrastructure funds, authorized by 
     this title.
       (b) Annual Report.--The Secretary shall submit to the 
     congressional defense committees on an annual basis a report 
     on each exercise of the authority in subsection (a) during 
     the preceding year. Each report shall provide a brief 
     description of each minor construction project covered by the 
     report.
       (c) Cost Variation Reports to Congressional Committees.--
     If, at any time during the construction of any minor 
     construction project authorized by this title, the estimated 
     cost of the project is revised and the revised cost of the 
     project exceeds $5,000,000, the Secretary shall immediately 
     submit to the congressional defense committees a report 
     explaining the reasons for the cost variation.
       (d) Minor Construction Project Defined.--In this section, 
     the term ``minor construction project'' means any plant 
     project not specifically authorized by law if the approved 
     total estimated cost of the plant project does not exceed 
     $5,000,000.

     SEC. 3123. LIMITS ON CONSTRUCTION PROJECTS.

       (a) In General.--(1) Except as provided in paragraph (2), 
     construction on a construction project may not be started or 
     additional obligations incurred in connection with the 
     project above the total estimated cost, whenever the current 
     estimated cost of the construction project, authorized by 
     section 3101, 3102, or 3103, or which is in support of 
     national security programs of the Department of Energy and 
     was authorized by any previous Act, exceeds by more than 25 
     percent the higher of--
       (A) the amount authorized for the project; or
       (B) the amount of the total estimated cost for the project 
     as shown in the most recent budget justification data 
     submitted to Congress.
       (2) An action described in paragraph (1) may be taken if--
       (A) the Secretary of Energy has submitted to the 
     congressional defense committees a report on the actions and 
     the circumstances making such action necessary; and
       (B) a period of 30 days has elapsed after the date on which 
     the report is received by the committees.
       (b) Exception.--Subsection (a) does not apply to a 
     construction project with a current estimated cost of less 
     than $5,000,000.

     SEC. 3124. FUND TRANSFER AUTHORITY.

       (a) Transfer to Other Federal Agencies.--The Secretary of 
     Energy may transfer funds authorized to be appropriated to 
     the Department of Energy pursuant to this title to other 
     Federal agencies for the performance of work for which the 
     funds were authorized. Funds so transferred may be merged 
     with and be available for the same purposes and for the same 
     time period as the authorizations of the Federal agency to 
     which the amounts are transferred.
       (b) Transfer Within Department of Energy.--(1) Subject to 
     paragraph (2), the Secretary of Energy may transfer funds 
     authorized to be appropriated to the Department of Energy 
     pursuant to this title between any such authorizations. 
     Amounts of authorizations so transferred may be merged with 
     and be available for the same purposes and for the same 
     period as the authorization to which the amounts are 
     transferred.
       (2) Not more than 5 percent of any such authorization may 
     be transferred between authorizations under paragraph (1). No 
     such authorization may be increased or decreased by more than 
     5 percent by a transfer under such paragraph.
       (c) Limitations.--The authority provided by this subsection 
     to transfer authorizations--
       (1) may be used only to provide funds for items relating to 
     activities necessary for national security programs that have 
     a higher priority than the items from which the funds are 
     transferred; and
       (2) may not be used to provide funds for an item for which 
     Congress has specifically denied funds.
       (d) Notice to Congress.--The Secretary of Energy shall 
     promptly notify the Committees on Armed Services of the 
     Senate and House of Representatives of any transfer of funds 
     to or from authorizations under this title.

     SEC. 3125. AUTHORITY FOR CONCEPTUAL AND CONSTRUCTION DESIGN.

       (a) Requirement of Conceptual Design.--(1) Subject to 
     paragraph (2) and except as provided in paragraph (3), before 
     submitting to Congress a request for funds for a construction 
     project that is in support of a national security program of 
     the Department of Energy, the Secretary of Energy shall 
     complete a conceptual design for that project.
       (2) If the estimated cost of completing a conceptual design 
     for a construction project exceeds $3,000,000, the Secretary 
     shall submit to Congress a request for funds for the 
     conceptual design before submitting a request for funds for 
     the construction project.
       (3) The requirement in paragraph (1) does not apply to a 
     request for funds--
       (A) for a minor construction project the total estimated 
     cost of which is less than $5,000,000; or
       (B) for emergency planning, design, and construction 
     activities under section 3126.
       (b) Authority for Construction Design.--(1) Within the 
     amounts authorized by this title, the Secretary of Energy may 
     carry out construction design (including architectural and 
     engineering services) in connection with any proposed 
     construction project if the total estimated cost for such 
     design does not exceed $600,000.
       (2) If the total estimated cost for construction design in 
     connection with any construction project exceeds $600,000, 
     funds for that design must be specifically authorized by law.

     SEC. 3126. AUTHORITY FOR EMERGENCY PLANNING, DESIGN, AND 
                   CONSTRUCTION ACTIVITIES.

       (a) Authority.--The Secretary of Energy may use any funds 
     available to the Department of Energy pursuant to an 
     authorization in this title, including funds authorized to be 
     appropriated for advance planning, engineering, and 
     construction design, and for plant projects, under sections 
     3101, 3102, 3103, and 3104 to perform planning, design, and 
     construction activities for any Department of Energy national 
     security program construction project that, as determined by 
     the Secretary, must proceed expeditiously in order to protect 
     public health and safety, to meet the needs of national 
     defense, or to protect property.
       (b) Limitation.--The Secretary may not exercise the 
     authority under subsection (a) in the case of any 
     construction project until the Secretary has submitted to the 
     congressional defense committees a report on the activities 
     that the Secretary intends to carry out under this section 
     and the circumstances making those activities necessary.

[[Page 12213]]

       (c) Specific Authority.--The requirement of section 
     3125(b)(2) does not apply to emergency planning, design, and 
     construction activities conducted under this section.

     SEC. 3127. FUNDS AVAILABLE FOR ALL NATIONAL SECURITY PROGRAMS 
                   OF THE DEPARTMENT OF ENERGY.

       Subject to the provisions of appropriation Acts and section 
     3121, amounts appropriated pursuant to this title for 
     management and support activities and for general plant 
     projects are available for use, when necessary, in connection 
     with all national security programs of the Department of 
     Energy.

     SEC. 3128. AVAILABILITY OF FUNDS.

       (a) In General.--Except as provided in subsection (b), when 
     so specified in an appropriations Act, amounts appropriated 
     for operation and maintenance or for plant projects may 
     remain available until expended.
       (b) Exception for Program Direction Funds.--Amounts 
     appropriated for program direction pursuant to an 
     authorization of appropriations in subtitle A shall remain 
     available to be expended only until the end of fiscal year 
     2004.

     SEC. 3129. TRANSFER OF DEFENSE ENVIRONMENTAL MANAGEMENT 
                   FUNDS.

       (a) Transfer Authority for Defense Environmental Management 
     Funds.--The Secretary of Energy shall provide the manager of 
     each field office of the Department of Energy with the 
     authority to transfer defense environmental management funds 
     from a program or project under the jurisdiction of that 
     office to another such program or project.
       (b) Limitations.--(1) Not more than three transfers may be 
     made to or from any program or project under subsection (a) 
     in a fiscal year.
       (2) The amount transferred to or from a program or project 
     in any one transfer under subsection (a) may not exceed 
     $5,000,000.
       (3) A transfer may not be carried out by a manager of a 
     field office under subsection (a) unless the manager 
     determines that the transfer is necessary--
       (A) to address a risk to health, safety, or the 
     environment; or
       (B) to assure the most efficient use of defense 
     environmental management funds at the field office.
       (4) Funds transferred pursuant to subsection (a) may not be 
     used for an item for which Congress has specifically denied 
     funds or for a new program or project that has not been 
     authorized by Congress.
       (c) Exemption From Reprogramming Requirements.--The 
     requirements of section 3121 shall not apply to transfers of 
     funds pursuant to subsection (a).
       (d) Notification.--The Secretary, acting through the 
     Assistant Secretary of Energy for Environmental Management, 
     shall notify Congress of any transfer of funds pursuant to 
     subsection (a) not later than 30 days after such transfer 
     occurs.
       (e) Definitions.--In this section:
       (1) The term ``program or project'' means, with respect to 
     a field office of the Department of Energy, any of the 
     following:
       (A) A program referred to or a project listed in paragraph 
     (2) or (3) of section 3102.
       (B) A program or project not described in subparagraph (A) 
     that is for environmental restoration or waste management 
     activities necessary for national security programs of the 
     Department, that is being carried out by that office, and for 
     which defense environmental management funds have been 
     authorized and appropriated before the date of the enactment 
     of this Act.
       (2) The term ``defense environmental management funds'' 
     means funds appropriated to the Department of Energy pursuant 
     to an authorization for carrying out environmental 
     restoration and waste management activities necessary for 
     national security programs.
       (f) Duration of Authority.--The managers of the field 
     offices of the Department may exercise the authority provided 
     under subsection (a) during the period beginning on October 
     1, 2002, and ending on September 30, 2003.

     SEC. 3130. TRANSFER OF WEAPONS ACTIVITIES FUNDS.

       (a) Transfer Authority for Weapons Activities Funds.--The 
     Secretary of Energy shall provide the manager of each field 
     office of the Department of Energy with the authority to 
     transfer weapons activities funds from a program or project 
     under the jurisdiction of that office to another such program 
     or project.
       (b) Limitations.--(1) Not more than three transfers may be 
     made to or from any program or project under subsection (a) 
     in a fiscal year.
       (2) The amount transferred to or from a program or project 
     in any one transfer under subsection (a) may not exceed 
     $5,000,000.
       (3) A transfer may not be carried out by a manager of a 
     field office under subsection (a) unless the manager 
     determines that the transfer--
       (A) is necessary to address a risk to health, safety, or 
     the environment; or
       (B) will result in cost savings and efficiencies.
       (4) A transfer may not be carried out by a manager of a 
     field office under subsection (a) to cover a cost overrun or 
     scheduling delay for any program or project.
       (5) Funds transferred pursuant to subsection (a) may not be 
     used for an item for which Congress has specifically denied 
     funds or for a new program or project that has not been 
     authorized by Congress.
       (c) Exemption From Reprogramming Requirements.--The 
     requirements of section 3121 shall not apply to transfers of 
     funds pursuant to subsection (a).
       (d) Notification.--The Secretary, acting through the 
     Administrator for Nuclear Security, shall notify Congress of 
     any transfer of funds pursuant to subsection (a) not later 
     than 30 days after such transfer occurs.
       (e) Definitions.--In this section:
       (1) The term ``program or project'' means, with respect to 
     a field office of the Department of Energy, any of the 
     following:
       (A) A program referred to or a project listed in section 
     3101(1).
       (B) A program or project not described in subparagraph (A) 
     that is for weapons activities necessary for national 
     security programs of the Department, that is being carried 
     out by that office, and for which weapons activities funds 
     have been authorized and appropriated before the date of the 
     enactment of this Act.
       (2) The term ``weapons activities funds'' means funds 
     appropriated to the Department of Energy pursuant to an 
     authorization for carrying out weapons activities necessary 
     for national security programs.
       (f) Duration of Authority.--The managers of the field 
     offices of the Department may exercise the authority provided 
     under subsection (a) during the period beginning on October 
     1, 2002, and ending on September 30, 2003.

   Subtitle C--Program Authorizations, Restrictions, and Limitations

     SEC. 3131. AVAILABILITY OF FUNDS FOR ENVIRONMENTAL MANAGEMENT 
                   CLEANUP REFORM.

       (a) Limitation on Availability for Environmental Management 
     Cleanup Reform.--None of the funds authorized to be 
     appropriated by section 3102(8) for the Department of Energy 
     for environmental management cleanup reform may be obligated 
     or expended until the Secretary of Energy--
       (1) publishes in the Federal Register, and submits to the 
     congressional defense committees, a report setting forth 
     criteria established by the Secretary--
       (A) for selecting the projects that will receive funding 
     using such funds; and
       (B) for setting priorities among the projects selected 
     under subparagraph (A); or
       (2) notifies the congressional defense committees that the 
     criteria described by paragraph (1) will not be established.
       (b) Requirements Regarding Establishment of Criteria.--
     Before establishing criteria, if any, under subsection 
     (a)(1), the Secretary shall publish a proposal for such 
     criteria in the Federal Register, and shall provide a period 
     of 45 days for public notice and comment on the proposal.
       (c) Availability of Funds if Criteria Are Not 
     Established.--(1) If the Secretary exercises the authority 
     under subsection (a)(2), the Secretary shall reallocate the 
     funds referred to in subsection (a) among sites that received 
     funds during fiscal year 2002 for defense environmental 
     restoration and waste management activities under section 
     3102 of the National Defense Authorization Act for Fiscal 
     Year 2002 (Public Law 107-197; 115 Stat. 1358).
       (2) The amount of funds referred to in subsection (a) that 
     are allocated under paragraph (1) to a site described in that 
     paragraph shall bear the same ratio to the amount of funds 
     referred to in subsection (a) as the amount of funds received 
     by such site during fiscal year 2002 under section 3102 of 
     the National Defense Authorization Act for Fiscal Year 2002 
     bears to the total amount of funds made available to all 
     sites during fiscal year 2002 under that section.
       (3) No funds allocated under paragraph (1) may be obligated 
     or expended until 30 days after the Secretary submits to the 
     congressional defense committee a list of the projects at 
     each site allocated funds under that paragraph, and the 
     amount of such funds to be provided to each such project at 
     each such site.
       (4) Funds referred to in subsection (a) may not be 
     obligated or expended for any site that was not funded in 
     fiscal year 2002 from amounts available to the Department of 
     Energy under title XXXI of the National Defense Authorization 
     Act for Fiscal Year 2002.

     SEC. 3132. ROBUST NUCLEAR EARTH PENETRATOR.

       Not later than February 3, 2003, the Secretary of Defense 
     shall, in consultation with the Secretary of Energy, submit 
     to the congressional defense committees a report on the 
     Robust Nuclear Earth Penetrator (RNEP). The report shall set 
     forth--
       (1) the military requirements for the Robust Nuclear Earth 
     Penetrator;
       (2) the nuclear weapons employment policy regarding the 
     Robust Nuclear Earth Penetrator;
       (3) a detailed description of the categories or types of 
     targets that the Robust Nuclear Earth Penetrator is designed 
     to hold at risk; and

[[Page 12214]]

       (4) an assessment of the ability of conventional weapons to 
     address the same categories and types of targets described 
     under paragraph (3).

     SEC. 3133. DATABASE TO TRACK NOTIFICATION AND RESOLUTION 
                   PHASES OF SIGNIFICANT FINDING INVESTIGATIONS.

       (a) Availability of Funds for Database.--Amounts authorized 
     to be appropriated by section 3101(1) for the National 
     Nuclear Security Administration for weapons activities shall 
     be available to the Deputy Administrator for Nuclear Security 
     for Defense Programs for the development and implementation 
     of a database for all national security laboratories to track 
     the notification and resolution phases of Significant Finding 
     Investigations (SFIs). The purpose of the database is to 
     facilitate the monitoring of the progress and accountability 
     of the national security laboratories in Significant Finding 
     Investigations.
       (b) Implementation Deadline.--The database required by 
     subsection (a) shall be implemented not later than September 
     30, 2003.
       (c) National Security Laboratory Defined.--In this section, 
     the term ``national security laboratory'' has the meaning 
     given that term in section 3281(1) of the National Nuclear 
     Security Administration Act (title XXXII of Public Law 106-
     65; 113 Stat. 968; 50 U.S.C. 2471(1)).

     SEC. 3134. REQUIREMENTS FOR SPECIFIC REQUEST FOR NEW OR 
                   MODIFIED NUCLEAR WEAPONS.

       (a) Requirement for Request for Funds for Development.--(1) 
     In any fiscal year after fiscal year 2002 in which the 
     Secretary of Energy plans to carry out activities described 
     in paragraph (2) relating to the development of a new nuclear 
     weapon or modified nuclear weapon, the Secretary shall 
     specifically request funds for such activities in the budget 
     of the President for that fiscal year under section 1105(a) 
     of title 31, United States Code.
       (2) The activities described in this paragraph are as 
     follows:
       (A) The conduct, or provision for conduct, of research and 
     development which could lead to the production of a new 
     nuclear weapon by the United States.
       (B) The conduct, or provision for conduct, of engineering 
     or manufacturing to carry out the production of a new nuclear 
     weapon by the United States.
       (C) The conduct, or provision for conduct, of research and 
     development which could lead to the production of a modified 
     nuclear weapon by the United States.
       (D) The conduct, or provision for conduct, of engineering 
     or manufacturing to carry out the production of a modified 
     nuclear weapon by the United States.
       (b) Budget Request Format.--The Secretary shall include in 
     a request for funds under subsection (a) the following:
       (1) In the case of funds for activities described in 
     subparagraph (A) or (C) of subsection (a)(2), a dedicated 
     line item for each such activity for a new nuclear weapon or 
     modified nuclear weapons that is in phase 1 or 2A or phase 
     6.1 or 6.2A, as the case may be, of the nuclear weapons 
     acquisition process.
       (2) In the case of funds for activities described in 
     subparagraph (B) or (D) of subsection (a)(2), a dedicated 
     line item for each such activity for a new nuclear weapon or 
     modified nuclear weapon that is in phase 3 or higher or phase 
     6.3 or higher, as the case may be, of the nuclear weapons 
     acquisition process.
       (c) Exception.--Subsections (a) shall not apply to funds 
     for purposes of conducting, or providing for the conduct of, 
     research and development, or manufacturing and engineering, 
     determined by the Secretary to be necessary--
       (1) for the nuclear weapons life extension program;
       (2) to modify an existing nuclear weapon solely to address 
     safety or reliability concerns; or
       (3) to address proliferation concerns.
       (d) Construction With Prohibition on Research and 
     Development on Low-Yield Nuclear Weapons.--Nothing in this 
     section may be construed to modify, repeal, or in any way 
     affect the provisions of section 3136 of the National Defense 
     Authorization Act for Fiscal Year 1994 (Public Law 103-160; 
     107 Stat. 1946; 42 U.S.C. 2121 note), relating to 
     prohibitions on research and development on low-yield nuclear 
     weapons.
       (e) Definitions.--In this section:
       (1) The term ``life extension program'' means the program 
     to repair or replace non-nuclear components, or to modify the 
     pit or canned subassembly, of nuclear weapons in the nuclear 
     weapons stockpile on the date of the enactment of this Act in 
     order to assure that such nuclear weapons retain the ability 
     to meet the military requirements applicable to such nuclear 
     weapons when first placed in the nuclear weapons stockpile.
       (2) The term ``modified nuclear weapon'' means a nuclear 
     weapon that contains a pit or canned subassembly, either of 
     which--
       (A) is in the nuclear weapons stockpile as of the date of 
     the enactment of this Act; and
       (B) is being modified in order to meet a military 
     requirement that is other than the military requirements 
     applicable to such nuclear weapon when first placed in the 
     nuclear weapons stockpile.
       (3) The term ``new nuclear weapon'' means a nuclear weapon 
     that contains a pit or canned subassembly, either of which is 
     neither--
       (A) in the nuclear weapons stockpile on the date of the 
     enactment of this Act; nor
       (B) in production as of that date.

     SEC. 3135. REQUIREMENT FOR AUTHORIZATION BY LAW FOR FUNDS 
                   OBLIGATED OR EXPENDED FOR DEPARTMENT OF ENERGY 
                   NATIONAL SECURITY ACTIVITIES.

       Section 660 of the Department of Energy Organization Act 
     (42 U.S.C. 7270) is amended--
       (1) by inserting ``(a)'' before ``Appropriations''; and
       (2) by adding at the end the following new subsection:
       ``(b)(1) No funds for the Department may be obligated or 
     expended for--
       ``(A) national security programs and activities of the 
     Department; or
       ``(B) activities under the Atomic Energy Act of 1954 (42 
     U.S.C. 2012 et seq.);

     unless funds therefor have been specifically authorized by 
     law.
       ``(2) Nothing in paragraph (1) may be construed to preclude 
     the requirement under subsection (a), or under any other 
     provision of law, for an authorization of appropriations for 
     programs and activities of the Department (other than 
     programs and activities covered by that paragraph) as a 
     condition to the obligation and expenditure of funds for 
     programs and activities of the Department (other than 
     programs and activities covered by that paragraph).''.

     SEC. 3136. LIMITATION ON AVAILABILITY OF FUNDS FOR PROGRAM TO 
                   ELIMINATE WEAPONS GRADE PLUTONIUM PRODUCTION IN 
                   RUSSIA.

       (a) Limitation.--Of the amounts authorized to be 
     appropriated by this title for the program to eliminate 
     weapons grade plutonium production, the Administrator for 
     Nuclear Security may not obligate or expend more than 
     $100,000,000 for that program until 30 days after the date on 
     which the Administrator submits to the congressional defense 
     committees a copy of an agreement entered into between the 
     United States Government and the Government of the Russian 
     Federation to shut down the three plutonium-producing 
     reactors in Russia.
       (b) Agreement Elements.--The agreement under subsection 
     (a)--
       (1) shall contain--
       (A) a commitment to shut down the three plutonium-producing 
     reactors;
       (B) the date on which each such reactor will be shut down;
       (C) a schedule and milestones for each such reactor to 
     complete the shut down of such reactor by the date specified 
     under subparagraph (B);
       (D) an arrangement for access to sites and facilities 
     necessary to meet such schedules and milestones; and
       (E) an arrangement for audit and examination procedures in 
     order to evaluate progress in meeting such schedules and 
     milestones; and
       (2) may include cost sharing arrangements.

                   Subtitle D--Proliferation Matters

     SEC. 3151. ADMINISTRATION OF PROGRAM TO ELIMINATE WEAPONS 
                   GRADE PLUTONIUM PRODUCTION IN RUSSIA.

       (a) Transfer of Program to Department of Energy.--The 
     program to eliminate weapons grade plutonium production in 
     Russia shall be transferred from the Department of Defense to 
     the Department of Energy.
       (b) Transfer of Associated Funds.--(1) Notwithstanding any 
     restriction or limitation in law on the availability of 
     Cooperative Threat Reduction funds specified in paragraph 
     (2), the Cooperative Threat Reduction funds specified in that 
     paragraph that are available for the program referred to in 
     subsection (a) shall be transferred from the Department of 
     Defense to the Department of Energy.
       (2) The Cooperative Threat Reduction funds specified in 
     this paragraph are the following:
       (A) Fiscal year 2002 Cooperative Threat Reduction funds, as 
     specified in section 1301(b) of the National Defense 
     Authorization Act for Fiscal Year 2002 (Public Law 107-107; 
     115 Stat. 1254; 22 U.S.C. 5952 note).
       (B) Fiscal year 2001 Cooperative Threat Reduction funds, as 
     specified in section 1301(b) of the Floyd D. Spence National 
     Defense Authorization Act for Fiscal Year 2001 (as enacted 
     into law by Public Law 106-398; 114 Stat. 1654A-339).
       (C) Fiscal year 2000 Cooperative Threat Reduction funds, as 
     specified in section 1301(b) of the National Defense 
     Authorization Act for Fiscal Year 2000 (Public Law 106-65; 
     113 Stat. 792; 22 U.S.C. 5952 note).
       (c) Availability of Transferred Funds.--(1) Notwithstanding 
     any restriction or limitation in law on the availability of 
     Cooperative Threat Reduction funds specified in subsection 
     (b)(2), the Cooperative Threat Reduction funds transferred 
     under subsection (b) for the program referred to in 
     subsection (a) shall be available for activities as follows:
       (A) To design and construct, refurbish, or both, fossil 
     fuel energy plants in Russia that provide alternative sources 
     of energy to the energy plants in Russia that produce weapons 
     grade plutonium.
       (B) To carry out limited safety upgrades of not more than 
     three energy plants in Russia that produce weapons grade 
     plutonium in

[[Page 12215]]

     order to permit the shutdown of such energy plants and 
     eliminate the production of weapons grade plutonium in such 
     energy plants.
       (2) Amounts available under paragraph (1) for activities 
     referred to in that paragraph shall remain available for such 
     activities until expended.

     SEC. 3152. REPEAL OF REQUIREMENT FOR REPORTS ON OBLIGATION OF 
                   FUNDS FOR PROGRAMS ON FISSILE MATERIALS IN 
                   RUSSIA.

       Section 3131 of the National Defense Authorization Act for 
     Fiscal Year 1996 (Public Law 104-106; 110 Stat. 617; 22 
     U.S.C. 5952 note) is amended--
       (1) in subsection (a), by striking ``(a) Authority.--''; 
     and
       (2) by striking subsection (b).

     SEC. 3153. EXPANSION OF ANNUAL REPORTS ON STATUS OF NUCLEAR 
                   MATERIALS PROTECTION, CONTROL, AND ACCOUNTING 
                   PROGRAMS.

       (a) Covered Programs.--Subsection (a) of section 3171 of 
     the Floyd D. Spence National Defense Authorization Act for 
     Fiscal Year 2001 (as enacted into law by Public Law 106-398; 
     114 Stat. 1654A-475) is amended by striking ``Russia that'' 
     and inserting ``countries where such materials''.
       (b) Report Contents.--Subsection (b) of that section is 
     amended--
       (1) in paragraph (1) by inserting ``in each country covered 
     by subsection (a)'' after ``locations,'';
       (2) in paragraph (2), by striking ``in Russia'' and 
     inserting ``in each such country'';
       (3) in paragraph (3), by inserting ``in each such country'' 
     after ``subsection (a)''; and
       (4) in paragraph (5), by striking ``by total amount and by 
     amount per fiscal year'' and inserting ``by total amount per 
     country and by amount per fiscal year per country''.

     SEC. 3154. TESTING OF PREPAREDNESS FOR EMERGENCIES INVOLVING 
                   NUCLEAR, RADIOLOGICAL, CHEMICAL, OR BIOLOGICAL 
                   WEAPONS.

       (a) Extension of Testing.--Section 1415 of the Defense 
     Against Weapons of Mass Destruction Act of 1996 (title XIV of 
     Public Law 104-201; 110 Stat. 2720; 50 U.S.C. 2315) is 
     amended--
       (1) in subsection (a)(2), by striking ``of five successive 
     fiscal years beginning with fiscal year 1997'' and inserting 
     ``of fiscal years 1997 through 2013''; and
       (2) in subsection (b)(2), by striking ``of five successive 
     fiscal years beginning with fiscal year 1997'' and inserting 
     ``of fiscal years 1997 through 2013''.
       (b) Construction of Extension With Designation of Attorney 
     General as Lead Official.--The amendment made by subsection 
     (a) may not be construed as modifying the designation of the 
     President entitled ``Designation of the Attorney General as 
     the Lead Official for the Emergency Response Assistance 
     Program Under Sections 1412 and 1415 of the National Defense 
     Authorization Act for Fiscal Year 1997'', dated April 6, 
     2000, designating the Attorney General to assume programmatic 
     and funding responsibilities for the Emergency Response 
     Assistance Program under sections 1412 and 1415 of the 
     Defense Against Weapons of Mass Destruction Act of 1996.

     SEC. 3155. PROGRAM ON RESEARCH AND TECHNOLOGY FOR PROTECTION 
                   FROM NUCLEAR OR RADIOLOGICAL TERRORISM.

       (a) Program Required.--(1) The Administrator for Nuclear 
     Security shall carry out a program on research and technology 
     for protection from nuclear or radiological terrorism, 
     including technology for the detection (particularly as 
     border crossings and ports of entry), identification, 
     assessment, control, disposition, consequence management, and 
     consequence mitigation of the dispersal of radiological 
     materials or of nuclear terrorism.
       (2) The Administrator shall carry out the program as part 
     of the support of the Administrator for homeland security and 
     counterterrorism within the National Nuclear Security 
     Administration
       (b) Program Elements.--In carrying out the program required 
     by subsection (a), the Administrator shall--
       (1) provide for the development of technologies to respond 
     to threats or incidents involving nuclear or radiological 
     terrorism in the United States;
       (2) demonstrate applications of the technologies developed 
     under paragraph (1), including joint demonstrations with the 
     Office of Homeland Security and other appropriate Federal 
     agencies;
       (3) provide, where feasible, for the development in 
     cooperation with the Russian Federation of technologies to 
     respond to nuclear or radiological terrorism in the former 
     states of the Soviet Union, including the demonstration of 
     technologies so developed;
       (4) provide, where feasible, assistance to other countries 
     on matters relating to nuclear or radiological terrorism, 
     including--
       (A) the provision of technology and assistance on means of 
     addressing nuclear or radiological incidents;
       (B) the provision of assistance in developing means for the 
     safe disposal of radioactive materials;
       (C) in coordination with the Nuclear Regulatory Commission, 
     the provision of assistance in developing the regulatory 
     framework for licensing and developing programs for the 
     protection and control of radioactive sources; and
       (D) the provision of assistance in evaluating the 
     radiological sources identified as not under current 
     accounting programs in the report of the Inspector General of 
     the Department of Energy entitled ``Accounting for Sealed 
     Sources of Nuclear Material Provided to Foreign Countries'', 
     and in identifying and controlling radiological sources that 
     represent significant risks; and
       (5) in coordination with the Office of Environment, Safety, 
     and Health of the Department of Energy, the Department of 
     Commerce, and the International Atomic Energy Agency, develop 
     consistent criteria for screening international transfers of 
     radiological materials.
       (c) Requirements for International Elements of Program.--
     (1) In carrying out activities in accordance with paragraphs 
     (3) and (4) of subsection (b), the Administrator shall 
     consult with--
       (A) the Secretary of Defense, Secretary of State, and 
     Secretary of Commerce; and
       (B) the International Atomic Energy Agency.
       (2) The Administrator shall encourage joint leadership 
     between the United States and the Russian Federation of 
     activities on the development of technologies under 
     subsection (b)(4).
       (d) Incorporation of Results in Emergency Response 
     Assistance Program.--To the maximum extent practicable, the 
     technologies and information developed under the program 
     required by subsection (a) shall be incorporated into the 
     program on responses to emergencies involving nuclear and 
     radiological weapons carried out under section 1415 of the 
     Defense Against Weapons of Mass Destruction Act of 1996 
     (title XIV of Public Law 104-201; 50 U.S.C. 2315).
       (e) Amount for Activities.--Of the amount authorized to be 
     appropriated by section 3101(2) for the Department of Energy 
     for the National Nuclear Security Administration for defense 
     nuclear nonproliferation and available for the development of 
     a new generation of radiation detectors for homeland defense, 
     up to $15,000,000 shall be available for carrying out this 
     section.

     SEC. 3156. EXPANSION OF INTERNATIONAL MATERIALS PROTECTION, 
                   CONTROL, AND ACCOUNTING PROGRAM.

       (a) Expansion of Program to Additional Countries 
     Authorized.--The Secretary of Energy may expand the 
     International Materials Protection, Control, and Accounting 
     (MPC&A) program of the Department of Energy to encompass 
     countries outside the Russian Federation and the independent 
     states of the former Soviet Union.
       (b) Notice to Congress of Use of Funds for Additional 
     Countries.--Not later than 30 days after the Secretary 
     obligates funds for the International Materials Protection, 
     Control, and Accounting program, as expanded under subsection 
     (a), for activities in or with respect to a country outside 
     the Russian Federation and the independent states of the 
     former Soviet Union, the Secretary shall submit to Congress a 
     notice of the obligation of such funds for such activities.
       (c) Assistance to Department of State for Nuclear Materials 
     Security Programs.--(1) As part of the International 
     Materials Protection, Control, and Accounting program, the 
     Secretary of Energy may provide technical assistance to the 
     Secretary of State in the efforts of the Secretary of State 
     to assist other nuclear weapons states to review and improve 
     their nuclear materials security programs.
       (2) The technical assistance provided under paragraph (1) 
     may include the sharing of technology or methodologies to the 
     states referred to in that paragraph. Any such sharing 
     shall--
       (A) be consistent with the treaty obligations of the United 
     States; and
       (B) take into account the sovereignty of the state 
     concerned and its weapons programs, as well the sensitivity 
     of any information involved regarding United States weapons 
     or weapons systems.
       (3) The Secretary of Energy may include the Russian 
     Federation in activities under paragraph (1) if the Secretary 
     determines that the experience of the Russian Federation 
     under the International Materials Protection, Control, and 
     Accounting program with the Russian Federation would make the 
     participation of the Russian Federation in such activities 
     useful in providing technical assistance under that 
     paragraph.
       (d) Plan for Accelerated Conversion or Return of Weapons-
     Usable Nuclear Materials.--(1) The Secretary shall develop a 
     plan to accelerate the conversion or return to the country of 
     origin of all weapons-usable nuclear materials located in 
     research reactors and other facilities outside the country of 
     origin.
       (2) The plan under paragraph (1) for nuclear materials of 
     origin in the Soviet Union shall be developed in consultation 
     with the Russian Federation.
       (3) As part of the plan under paragraph (1), the Secretary 
     shall identify the funding and schedules required to assist 
     the research reactors and facilities referred to in that 
     paragraph in upgrading their materials protection, control, 
     and accounting procedures until the weapons-usable nuclear 
     materials in such reactors and facilities are converted or 
     returned in accordance with that paragraph.

[[Page 12216]]

       (4) The provision of assistance under paragraph (3) shall 
     be closely coordinated with ongoing efforts of the 
     International Atomic Energy Agency for the same purpose.
       (e) Radiological Dispersal Device Materials Protection, 
     Control, and Accounting.--(1) The Secretary shall establish 
     within the International Materials Protection, Control, and 
     Accounting program a program on the protection, control, and 
     accounting of materials usable in radiological dispersal 
     devices.
       (2) The program under paragraph (1) shall include--
       (A) an identification of vulnerabilities regarding 
     radiological materials worldwide;
       (B) the mitigation of vulnerabilities so identified through 
     appropriate security enhancements; and
       (C) an acceleration of efforts to recover and control 
     diffused radiation sources and `orphaned'' radiological 
     sources that are of sufficient strength to represent a 
     significant risk.
       (3) The program under paragraph (1) shall be known as the 
     Radiological Dispersal Device Materials Protection, Control, 
     and Accounting program.
       (f) Study of Program To Secure Certain Radiological 
     Materials.--(1) The Secretary, acting through the 
     Administrator for Nuclear Security, shall require the Office 
     of International Materials Protection, Control, and 
     Accounting of the Department of Energy to conduct a study to 
     determine the feasibility and advisability of developing a 
     program to secure radiological materials outside the United 
     States that pose a threat to the national security of the 
     United States.
       (2) The study under paragraph (1) shall include the 
     following:
       (A) An identification of the categories of radiological 
     materials that are covered by that paragraph, including an 
     order of priority for securing each category of such 
     radiological materials.
       (B) An estimate of the number of sites at which such 
     radiological materials are present.
       (C) An assessment of the effort required to secure such 
     radiological materials at such sites, including--
       (i) a description of the security upgrades, if any, that 
     are required at such sites;
       (ii) an assessment of the costs of securing such 
     radiological materials at such sites;
       (iii) a description of any cost-sharing arrangements to 
     defray such costs;
       (iv) a description of any legal impediments to such effort, 
     including a description of means of overcoming such 
     impediments; and
       (v) a description of the coordination required for such 
     effort among appropriate United States Government entities 
     (including the Nuclear Regulatory Commission), participating 
     countries, and international bodies (including the 
     International Atomic Energy Agency).
       (D) A description of the pilot project undertaken in 
     Russia.
       (3) In identifying categories of radiological materials 
     under paragraph (2)(A), the Secretary shall take into account 
     matters relating to specific activity, half-life, radiation 
     type and energy, attainability, difficulty of handling, and 
     toxicity, and such other matters as the Secretary considers 
     appropriate.
       (4) Not later than one year after the date of the enactment 
     of this Act, the Secretary shall submit to Congress a report 
     on the study conducted under this subsection. The report 
     shall include the matters specified under paragraph (2) and 
     such other matters, including recommendations, as the 
     Secretary considers appropriate as a result of the study.
       (5) In this subsection, the term ``radiological material'' 
     means any radioactive material, other than plutonium (Pu) or 
     uranium enriched above 20 percent uranium-235.
       (g) Amendment of Convention on Physical Protection of 
     Nuclear Material.--(1) It is the sense of Congress that the 
     President should encourage amendment of the Convention on the 
     Physical Protection of Nuclear Materials in order to provide 
     that the Convention shall--
       (A) apply to both the domestic and international use and 
     transport of nuclear materials;
       (B) incorporate fundamental practices for the physical 
     protection of such materials; and
       (C) address protection against sabotage involving nuclear 
     materials.
       (2) In this subsection, the term ``Convention on the 
     Physical Protection of Nuclear Materials'' means the 
     Convention on the Physical Protection of Nuclear Materials, 
     With Annex, done at Vienna on October 26, 1979.
       (h) Amount for Activities.--Of the amount authorized to be 
     appropriated by section 3102(2) for the Department of Energy 
     for the National Nuclear Security Administration for defense 
     nuclear nonproliferation, up to $5,000,000 shall be available 
     for carrying out this section.

     SEC. 3157. ACCELERATED DISPOSITION OF HIGHLY ENRICHED URANIUM 
                   AND PLUTONIUM.

       (a) Sense of Congress on Program To Secure Stockpiles of 
     Highly Enriched Uranium and Plutonium.--(1) It is the sense 
     of Congress that the Secretary of Energy, in consultation 
     with the Secretary of State and Secretary of Defense, should 
     develop a comprehensive program of activities to encourage 
     all countries with nuclear materials to adhere to, or to 
     adopt standards equivalent to, the International Atomic 
     Energy Agency standard on The Physical Protection of Nuclear 
     Material and Nuclear Facilities (INFCIRC/225/Rev.4), relating 
     to the security of stockpiles of highly enriched uranium 
     (HEU) and plutonium (Pu).
       (2) To the maximum extent practicable, the program should 
     be developed in consultation with the Russian Federation, 
     other Group of 8 countries, and other allies of the United 
     States.
       (3) Activities under the program should include specific, 
     targeted incentives intended to encourage countries that 
     cannot undertake the expense of conforming to the standard 
     referred to in paragraph (1) to relinquish their highly 
     enriched uranium (HEU) or plutonium (Pu), including 
     incentives in which a country, group of countries, or 
     international body--
       (A) purchase such materials and provide for their security 
     (including by removal to another location);
       (B) undertake the costs of decommissioning facilities that 
     house such materials;
       (C) in the case of research reactors, convert such reactors 
     to low-enriched uranium reactors; or
       (D) upgrade the security of facilities that house such 
     materials in order to meet stringent security standards that 
     are established for purposes of the program based upon agreed 
     best practices.
       (b) Program on Accelerated Disposition of HEU Authorized.--
     (1) The Secretary of Energy may carry out a program to pursue 
     with the Russian Federation, and any other nation that 
     possesses highly enriched uranium, options for blending such 
     uranium so that the concentration of U-235 in such uranium is 
     below 20 percent.
       (2) The options pursued under paragraph (1) shall include 
     expansion of the Material Consolidation and Conversion 
     program of the Department of Energy to include--
       (A) additional facilities for the blending of highly 
     enriched uranium; and
       (B) additional centralized secure storage facilities for 
     highly enriched uranium designated for blending.
       (c) Incentives Regarding Highly Enriched Uranium in 
     Russia.--As part of the options pursued under subsection (b) 
     with the Russian Federation, the Secretary may provide 
     financial and other incentives for the removal of all highly 
     enriched uranium from any particular facility in the Russian 
     Federation if the Secretary determines that such incentives 
     will facilitate the consolidation of highly enriched uranium 
     in the Russian Federation to the best-secured facilities.
       (d) Construction With HEU Disposition Agreement.--Nothing 
     in this section may be construed as terminating, modifying, 
     or otherwise effecting requirements for the disposition of 
     highly enriched uranium under the Agreement Between the 
     Government of the United States of America and the Government 
     of the Russian Federation Concerning the Disposition of 
     Highly Enriched Uranium Extracted from Nuclear Weapons, 
     signed at Washington on February 18, 1993.
       (e) Priority in Blending Activities.--In pursuing options 
     under this section, the Secretary shall give priority to the 
     blending of highly enriched uranium from weapons, though 
     highly enriched uranium from sources other than weapons may 
     also be blended.
       (f) Transfer of Highly Enriched Uranium and Plutonium to 
     United States.--(1) As part of the program under subsection 
     (b), the Secretary may, upon the request of any nation--
       (A) purchase highly enriched uranium or weapons grade 
     plutonium from the nation at a price determined by the 
     Secretary;
       (B) transport any uranium or plutonium so purchased to the 
     United States; and
       (C) store any uranium or plutonium so transported in the 
     United States.
       (2) The Secretary is not required to blend any highly 
     enriched uranium purchased under paragraph (1)(A) in order to 
     reduce the concentration of U-235 in such uranium to below 20 
     percent. Amounts authorized to be appropriated by subsection 
     (m) may not be used for purposes of blending such uranium.
       (g) Transfer of Highly Enriched Uranium to Russia.--(1) As 
     part of the program under subsection (b), the Secretary may 
     encourage nations with highly enriched uranium to transfer 
     such uranium to the Russian Federation for disposition under 
     this section.
       (2) The Secretary may pay any nation that transfers highly 
     enriched uranium to the Russian Federation under this 
     subsection an amount determined appropriate by the Secretary.
       (3) The Secretary may bear the cost of any blending and 
     storage of uranium transferred to the Russian Federation 
     under this subsection, including any costs of blending and 
     storage under a contract under subsection (h). Any site 
     selected for such storage shall have undergone complete 
     materials protection, control, and accounting upgrades before 
     the commencement of such storage.
       (h) Contracts for Blending and Storage of Highly Enriched 
     Uranium in Russia.--(1)

[[Page 12217]]

     As part of the program under subsection (b), the Secretary 
     may enter into one or more contracts with the Russian 
     Federation--
       (A) to blend in the Russian Federation highly enriched 
     uranium of the Russian Federation and highly enriched uranium 
     transferred to the Russian Federation under subsection (g); 
     or
       (B) to store in the Russian Federation highly enriched 
     uranium before blending or the blended material.
       (2) Any site selected for the storage of uranium or blended 
     material under paragraph (1)(B) shall have undergone complete 
     materials protection, control, and accounting upgrades before 
     the commencement of such storage.
       (i) Limitation on Release for Sale of Blended Uranium.--
     Uranium blended under this section may not be released for 
     sale until the earlier of--
       (1) January 1, 2014; or
       (2) the date on which the Secretary certifies that such 
     uranium can be absorbed into the global market without undue 
     disruption to the uranium mining industry in the United 
     States.
       (j) Proceeds of Sale of Uranium Blended by Russia.--Upon 
     the sale by the Russian Federation of uranium blended under 
     this section by the Russian Federation, the Secretary may 
     elect to receive from the proceeds of such sale an amount not 
     to exceed 75 percent of the costs incurred by the Department 
     of Energy under subsections (c), (g), and (h).
       (k) Report on Status of Program.--Not later than July 1, 
     2003, the Secretary shall submit to Congress a report on the 
     status of the program carried out under the authority in 
     subsection (b). The report shall include--
       (1) a description of international interest in the program;
       (2) schedules and operational details of the program; and
       (3) recommendations for future funding for the program.
       (l) Highly Enriched Uranium Defined.--In this section, the 
     term ``highly enriched uranium'' means uranium with a 
     concentration of U-235 of 20 percent or more.
       (m) Amount for Activities.--Of the amount to be 
     appropriated by section 3102(2) for the Department of Energy 
     for the National Nuclear Security Administration for defense 
     nuclear nonproliferation, up to $40,000,000 shall be 
     available for carrying out this section.

     SEC. 3158. DISPOSITION OF PLUTONIUM IN RUSSIA.

       (a) Negotiations With Russian Federation.--(1) The 
     Secretary of Energy is encouraged to continue to support the 
     Secretary of State in negotiations with the Ministry of 
     Atomic Energy of the Russian Federation to finalize the 
     plutonium disposition program of the Russian Federation (as 
     established under the agreement described in subsection (b)).
       (2) As part of the negotiations, the Secretary of Energy 
     may consider providing additional funds to the Ministry of 
     Atomic Energy in order to reach a successful agreement.
       (3) If such an agreement, meeting the requirements in 
     subsection (c), is reached with the Ministry of Atomic 
     Energy, which requires additional funds for the Russian work, 
     the Secretary shall either seek authority to use funds 
     available for another purpose, or request supplemental 
     appropriations, for such work.
       (b) Agreement.--The agreement referred to in subsection (a) 
     is the Agreement Between the Government of the United States 
     of America and the Government of the Russian Federation 
     Concerning the Management and Disposition of Plutonium 
     Designated As No Longer Required For Defense Purposes and 
     Related Cooperation, signed August 29, 2000, and September 1, 
     2000.
       (c) Requirement for Disposition Program.-- The plutonium 
     disposition program under subsection (a)--
       (1) shall include transparent verifiable steps;
       (2) shall proceed at a rate approximately equivalent to the 
     rate of the United States program for the disposition of 
     plutonium;
       (3) shall provide for cost-sharing among a variety of 
     countries;
       (4) shall provide for contributions by the Russian 
     Federation;
       (5) shall include steps over the near term to provide high 
     confidence that the schedules for the disposition of 
     plutonium of the Russian Federation will be achieved; and
       (6) may include research on more speculative long-term 
     options for the future disposition of the plutonium of the 
     Russian Federation in addition to the near-term steps under 
     paragraph (5).

     SEC. 3159. STRENGTHENED INTERNATIONAL SECURITY FOR NUCLEAR 
                   MATERIALS AND SAFETY AND SECURITY OF NUCLEAR 
                   OPERATIONS.

       (a) Report on Options for International Program To 
     Strengthen Security and Safety.--(1) Not later than 270 days 
     after the date of the enactment of this Act, the Secretary of 
     Energy shall submit to Congress a report on options for an 
     international program to develop strengthened security for 
     all nuclear materials and safety and security for current 
     nuclear operations.
       (2) The Secretary shall consult with the Office of Nuclear 
     Energy Science and Technology of the Department of Energy in 
     the development of options for purposes of the report.
       (3) In evaluating options for purposes of the report, the 
     Secretary shall consult with the Nuclear Regulatory 
     Commission and the International Atomic Energy Agency on the 
     feasibility and advisability of actions to reduce the risks 
     associated with terrorist attacks on nuclear power plants 
     outside the United States.
       (4) Each option for an international program under 
     paragraph (1) may provide that the program is jointly led by 
     the United States, the Russian Federation, and the 
     International Atomic Energy Agency.
       (5) The Secretary shall include with the report on options 
     for an international program under paragraph (1) a 
     description and assessment of various management alternatives 
     for the international program. If any option requires Federal 
     funding or legislation to implement, the report shall also 
     include recommendations for such funding or legislation, as 
     the case may be.
       (b) Joint Programs With Russia on Proliferation Resistant 
     Nuclear Energy Technologies.--The Director of the Office of 
     Nuclear Energy Science and Technology Energy shall, in 
     coordination with the Secretary, pursue with the Ministry of 
     Atomic Energy of the Russian Federation joint programs 
     between the United States and the Russian Federation on the 
     development of proliferation resistant nuclear energy 
     technologies, including advanced fuel cycles.
       (c) Participation of International Technical Experts.--In 
     developing options under subsection (a), the Secretary shall, 
     in consultation with the Nuclear Regulatory Commission, the 
     Russian Federation, and the International Atomic Energy 
     Agency, convene and consult with an appropriate group of 
     international technical experts on the development of various 
     options for technologies to provide strengthened security for 
     nuclear materials and safety and security for current nuclear 
     operations, including the implementation of such options.
       (d) Assistance Regarding Hostile Insiders and Aircraft 
     Impacts.--(1) The Secretary may, utilizing appropriate 
     expertise of the Department of Energy and the Nuclear 
     Regulatory Commission, provide assistance to nuclear 
     facilities abroad on the interdiction of hostile insiders at 
     such facilities in order to prevent incidents arising from 
     the disablement of the vital systems of such facilities.
       (2) The Secretary may carry out a joint program with the 
     Russian Federation and other countries to address and 
     mitigate concerns on the impact of aircraft with nuclear 
     facilities in such countries.
       (e) Assistance to IAEA in Strengthening International 
     Nuclear Safety and Security.--The Secretary may expand and 
     accelerate the programs of the Department of Energy to 
     support the International Atomic Energy Agency in 
     strengthening international nuclear safety and security.
       (f) Amount for Activities.--Of the amount authorized to be 
     appropriated by section 3102(2) for the Department of Energy 
     for the National Nuclear Security Administration for defense 
     nuclear nonproliferation, up to $35,000,000 shall be 
     available for carrying out this section as follows:
       (1) For activities under subsections (a) through (d), 
     $20,000,000, of which--
       (A) $5,000,000 shall be available for sabotage protection 
     for nuclear power plants and other nuclear facilities abroad; 
     and
       (B) $10,000,000 shall be available for development of 
     proliferation resistant nuclear energy technologies under 
     subsection (b).
       (2) For activities under subsection (e), $15,000,000.

     SEC. 3160. EXPORT CONTROL PROGRAMS.

       (a) Authority To Pursue Options for Strengthening Export 
     Control Programs.--The Secretary of Energy may pursue in the 
     former Soviet Union and other regions of concern, principally 
     in South Asia, the Middle East, and the Far East, options for 
     accelerating programs that assist countries in such regions 
     in improving their domestic export control programs for 
     materials, technologies, and expertise relevant to the 
     construction or use of a nuclear or radiological dispersal 
     device.
       (b) Amount for Activities.--Of the amount authorized to be 
     appropriated by section 3102(2) for the Department of Energy 
     for the National Nuclear Security Administration for defense 
     nuclear nonproliferation, up to $5,000,000 shall be available 
     for carrying out this section.

     SEC. 3161. IMPROVEMENTS TO NUCLEAR MATERIALS PROTECTION, 
                   CONTROL, AND ACCOUNTING PROGRAM OF THE RUSSIAN 
                   FEDERATION.

       (a) Revised Focus for Program.--(1) The Secretary of Energy 
     shall work cooperatively with the Russian Federation to 
     update and improve the Joint Action Plan for the Materials 
     Protection, Control, and Accounting programs of the 
     Department and the Russian Federation Ministry of Atomic 
     Energy.
       (2) The updated plan shall shift the focus of the upgrades 
     of the nuclear materials protection, control, and accounting 
     program of the Russian Federation in order to assist the 
     Russian Federation in achieving, as soon as practicable but 
     not later than January 1,

[[Page 12218]]

     2012, a sustainable nuclear materials protection, control, 
     and accounting system for the nuclear materials of the 
     Russian Federation that is supported solely by the Russian 
     Federation.
       (b) Pace of Program.--The Secretary shall work with the 
     Russian Federation, including applicable institutes in 
     Russia, to pursue acceleration of the nuclear materials 
     protection, control, and accounting programs at nuclear 
     defense facilities in the Russian Federation.
       (c) Transparency of Program.--The Secretary shall work with 
     the Russian Federation to identify various alternatives to 
     provide the United States adequate transparency in the 
     nuclear materials protection, control, and accounting program 
     of the Russian Federation to assure that such program is 
     meeting applicable goals for nuclear materials protection, 
     control, and accounting.
       (d) Sense of Congress.--In furtherance of the activities 
     required under this section, it is the sense of Congress the 
     Secretary should--
       (1) enhance the partnership with the Russian Ministry of 
     Atomic Energy in order to increase the pace and effectiveness 
     of nuclear materials accounting and security activities at 
     facilities in the Russian Federation, including serial 
     production enterprises; and
       (2) clearly identify the assistance required by the Russian 
     Federation, the contributions anticipated from the Russian 
     Federation, and the transparency milestones that can be used 
     to assess progress in meeting the requirements of this 
     section.

     SEC. 3162. COMPREHENSIVE ANNUAL REPORT TO CONGRESS ON 
                   COORDINATION AND INTEGRATION OF ALL UNITED 
                   STATES NONPROLIFERATION ACTIVITIES.

       Section 1205 of the National Defense Authorization Act for 
     Fiscal Year 2002 (Public Law 107-107; 115 Stat. 1247) is 
     amended by adding at the end the following new subsection:
       ``(d) Annual Report on Implementation of Plan.--(1) Not 
     later than January 31, 2003, and each year thereafter, the 
     President shall submit to Congress a report on the 
     implementation of the plan required by subsection (a) during 
     the preceding year.
       ``(2) Each report under paragraph (1) shall include--
       ``(A) a discussion of progress made during the year covered 
     by such report in the matters of the plan required by 
     subsection (a);
       ``(B) a discussion of consultations with foreign nations, 
     and in particular the Russian Federation, during such year on 
     joint programs to implement the plan;
       ``(C) a discussion of cooperation, coordination, and 
     integration during such year in the implementation of the 
     plan among the various departments and agencies of the United 
     States Government, as well as private entities that share 
     objectives similar to the objectives of the plan; and
       ``(D) any recommendations that the President considers 
     appropriate regarding modifications to law or regulations, or 
     to the administration or organization of any Federal 
     department or agency, in order to improve the effectiveness 
     of any programs carried out during such year in the 
     implementation of the plan.''.

     SEC. 3163. UTILIZATION OF DEPARTMENT OF ENERGY NATIONAL 
                   LABORATORIES AND SITES IN SUPPORT OF 
                   COUNTERTERRORISM AND HOMELAND SECURITY 
                   ACTIVITIES.

       (a) Agencies as Joint Sponsors of Laboratories for Work on 
     Activities.--Each department or agency of the Federal 
     Government, or of a State or local government, that carries 
     out work on counterterrorism and homeland security activities 
     at a Department of Energy national laboratory may be a joint 
     sponsor, under a multiple agency sponsorship arrangement with 
     the Department, of such laboratory in the performance of such 
     work.
       (b) Agencies as Joint Sponsors of Sites for Work on 
     Activities.--Each department or agency of the Federal 
     Government, or of a State or local government, that carries 
     out work on counterterrorism and homeland security activities 
     at a Department of Energy site may be a joint sponsor of such 
     site in the performance of such work as if such site were a 
     federally funded research and development center and such 
     work were performed under a multiple agency sponsorship 
     arrangement with the Department.
       (c) Primary Sponsorship.--The Department of Energy shall be 
     the primary sponsor under a multiple agency sponsorship 
     arrangement required under subsection (a) or (b).
       (d) Work.--(1) The Administrator for Nuclear Security shall 
     act as the lead agent in coordinating the formation and 
     performance of a joint sponsorship agreement between a 
     requesting agency and a Department of Energy national 
     laboratory or site for work on counterterrorism and homeland 
     security.
       (2) A request for work may not be submitted to a national 
     laboratory or site under this section unless approved in 
     advance by the Administrator.
       (3) Any work performed by a national laboratory or site 
     under this section shall comply with the policy on the use of 
     federally funded research and development centers under 
     section 35.017(a)(4) of the Federal Acquisition Regulation.
       (4) The Administrator shall ensure that the work of a 
     national laboratory or site requested under this section is 
     performed expeditiously and to the satisfaction of the head 
     of the department or agency submitting the request.
       (e) Funding.--(1) Subject to paragraph (2), a joint sponsor 
     of a Department of Energy national laboratory or site under 
     this section shall provide funds for work of such national 
     laboratory or site, as the case may be, under this section 
     under the same terms and conditions as apply to the primary 
     sponsor of such national laboratory under section 
     303(b)(1)(C) of the Federal Property and Administrative 
     Services Act of 1949 (41 U.S.C. 253(b)(1)(C)) or of such site 
     to the extent such section applies to such site as a 
     federally funded research and development center by reason of 
     subsection (b).
       (2) The total amount of funds provided a national 
     laboratory or site in a fiscal year under this subsection by 
     joint sponsors other than the Department of Energy shall not 
     exceed an amount equal to 25 percent of the total funds 
     provided such national laboratory or site, as the case may 
     be, in such fiscal year from all sources.

                       Subtitle E--Other Matters

     SEC. 3171. INDEMNIFICATION OF DEPARTMENT OF ENERGY 
                   CONTRACTORS.

       Section 170d.(1)(A) of the Atomic Energy Act of 1954 (42 
     U.S.C. 2210(d)(1)(A)) is amended by striking ``until August 
     1, 2002,'' and inserting ``until August 1, 2012''.

     SEC. 3172. WORKER HEALTH AND SAFETY RULES FOR DEPARTMENT OF 
                   ENERGY FACILITIES.

       The Atomic Energy Act of 1954 is amended by inserting after 
     section 234B (42 U.S.C. 2282b) the following:

     ``SEC. 234C. WORKER HEALTH AND SAFETY RULES FOR DEPARTMENT OF 
                   ENERGY NUCLEAR FACILITIES.

       ``(a) Persons Subject to Penalty.--
       ``(1) Civil penalty.--
       ``(A) In general.--A person (or any subcontractor or 
     supplier of the person) who has entered into an agreement of 
     indemnification under section 2210(d) (or any subcontractor 
     or supplier of the person) that violates (or is the employer 
     of a person that violates) Department of Energy Order No. 
     440.1A (1998), or any rule or regulation relating to 
     industrial or construction health and safety promulgated by 
     the Secretary of Energy (referred to in this section as the 
     ``Secretary'') after public notice and opportunity for 
     comment under section 553 of title 5, United States Code 
     (commonly known as the `Administrative Procedure Act'), shall 
     be subject to a civil penalty of not more than $100,000 for 
     each such violation.
       ``(B) Continuing violations.--If any violation under this 
     subsection is a continuing violation, each day of the 
     violation shall constitute a separate violation for the 
     purpose of computing the civil penalty under subparagraph 
     (A).
       ``(2) Regulations.--
       ``(A) In general.--Not later than 270 days after the date 
     of enactment of this section, the Secretary shall promulgate 
     regulations for industrial and construction health and safety 
     that incorporate the provisions and requirements contained in 
     Department of Energy Order No. 440.1A (1998).
       ``(B) Effective date.--The regulations promulgated under 
     subparagraph (A) shall take effect on the date that is 1 year 
     after the promulgation date of the regulations.
       ``(3) Variances or exemptions.--
       ``(A) In general.--The Secretary may provide in the 
     regulations promulgated under paragraph (2) a procedure for 
     granting variances or exemptions to the extent necessary to 
     avoid serious impairment of the national security of the 
     United States.
       ``(B) Determination.--In determining whether to provide a 
     variance or exemption under subparagraph (A), the Secretary 
     of Energy shall assess--
       ``(i) the impact on national security of not providing a 
     variance or exemption; and
       ``(ii) the benefits or detriments to worker health and 
     safety of providing a variance or exemption.
       ``(C) Procedure.--Before granting a variance or exemption, 
     the Secretary of Energy shall--
       ``(i) notify affected employees;
       ``(ii) provide an opportunity for a hearing on the record; 
     and
       ``(iii) notify Congress of any determination to grant a 
     variance at least 60 days before the proposed effective date 
     of the variance or exemption.
       ``(4) Applicability.--This subsection does not apply to any 
     facility that is a component of, or any activity conducted 
     under, the Naval Nuclear Propulsion Program.
       ``(5) Enforcement guidance on structures to be disposed 
     of.--
       ``(A) In general.--In enforcing the regulations under 
     paragraph (2), the Secretary of Energy shall, on a case-by-
     case basis, evaluate whether a building, facility, structure, 
     or improvement of the Department of Energy that is 
     permanently closed and that is expected to be demolished, or 
     title to which is expected to be transferred to another 
     entity for reuse, should undergo major retrofitting to comply 
     with specific general industry standards.

[[Page 12219]]

       ``(B) No effect on health and safety enforcement.--This 
     subsection does not diminish or otherwise affect--
       ``(i) the enforcement of any worker health and safety 
     regulations under this section with respect to the 
     surveillance and maintenance or decontamination, 
     decommissioning, or demolition of buildings, facilities, 
     structures, or improvements; or
       ``(ii) the application of any other law (including 
     regulations), order, or contractual obligation.
       ``(b) Contract Penalties.--
       ``(1) In general.--The Secretary shall include in each 
     contract with a contractor of the Department provisions that 
     provide an appropriate reduction in the fees or amounts paid 
     to the contractor under the contract in the event of a 
     violation by the contractor or contractor employee of any 
     regulation or order relating to industrial or construction 
     health and safety.
       ``(2) Contents.--The provisions shall specify various 
     degrees of violations and the amount of the reduction 
     attributable to each degree of violation.
       ``(c) Powers and Limitations.--The powers and limitations 
     applicable to the assessment of civil penalties under section 
     234A, except for subsection (d) of that section, shall apply 
     to the assessment of civil penalties under this section.
       ``(d) Total Amount of Penalties.--In the case of an entity 
     described in subsection (d) of section 234A, the total amount 
     of civil penalties under subsection (a) or under subsection 
     (a) of section 234B in a fiscal year may not exceed the total 
     amount of fees paid by the Department of Energy to that 
     entity in that fiscal year.''.

     SEC. 3173. ONE-YEAR EXTENSION OF AUTHORITY OF DEPARTMENT OF 
                   ENERGY TO PAY VOLUNTARY SEPARATION INCENTIVE 
                   PAYMENTS.

       (a) In General.--Section 3161(a) of the National Defense 
     Authorization Act for Fiscal Year 2000 (Public Law 106-65; 5 
     U.S.C. 5597 note) is amended by striking ``January 1, 2004'' 
     and inserting ``January 1, 2005''.
       (b) Construction.--The amendment made by subsection (a) may 
     be superseded by another provision of law that takes effect 
     after the date of the enactment of this Act, and before 
     January 1, 2004, establishing a uniform system for providing 
     voluntary separation incentives (including a system for 
     requiring approval of plans by the Office of Management and 
     Budget) for employees of the Federal Government.

     SEC. 3174. SUPPORT FOR PUBLIC EDUCATION IN THE VICINITY OF 
                   LOS ALAMOS NATIONAL LABORATORY, NEW MEXICO.

       (a) Support for Fiscal Year 2003.--From amounts authorized 
     to be appropriated to the Secretary of Energy by this title, 
     $6,900,000 shall be available for payment by the Secretary 
     for fiscal year 2003 to the Los Alamos National Laboratory 
     Foundation, a not-for-profit foundation chartered in 
     accordance with section 3167(a) of the National Defense 
     Authorization Act for Fiscal Year 1998 (Public Law 105-85; 
     111 Stat. 2052).
       (b) Use of Funds.--The foundation referred to in subsection 
     (a) shall--
       (1) utilize funds provided under this section as a 
     contribution to the endowment fund for the foundation; and
       (2) use the income generated from investments in the 
     endowment fund that are attributable to the payment made 
     under this section to fund programs to support the 
     educational needs of children in the public schools in the 
     vicinity of Los Alamos National Laboratory, New Mexico.
       (c) Repeal of Superseded Authority and Modification of 
     Authority To Extend Contract.--(1) Subsection (b) of section 
     3136 of the National Defense Authorization Act for Fiscal 
     Year 2002 (Public Law 107-107; 115 Stat. 1368) is amended to 
     read as follows:
       ``(b) Support for Fiscal Years 2003 through 2013.--Subject 
     to the availability of appropriations, the Secretary may 
     provide for a contract extension through fiscal year 2013 
     similar to the contract extension referred to in subsection 
     (a)(2).''.
       (2) The amendment made by paragraph (1) shall take effect 
     on October 1, 2002.

Subtitle F--Disposition of Weapons-Usable Plutonium at Savannah River, 
                             South Carolina

     SEC. 3181. FINDINGS.

       Congress makes the following findings:
       (1) In September 2000, the United States and the Russian 
     Federation signed a Plutonium Management and Disposition 
     Agreement by which each agreed to dispose of 34 metric tons 
     of weapons-grade plutonium.
       (2) The agreement with Russia is a significant step toward 
     safeguarding nuclear materials and preventing their diversion 
     to rogue states and terrorists.
       (3) The Department of Energy plans to dispose of 34 metric 
     tons of weapons-grade plutonium in the United States before 
     the end of 2019 by converting the plutonium to a mixed-oxide 
     fuel to be used in commercial nuclear power reactors.
       (4) The Department has formulated a plan for implementing 
     the agreement with Russia through construction of a mixed-
     oxide fuel fabrication facility, the so-called MOX facility, 
     and a pit disassembly and conversion facility at the Savannah 
     River Site, Aiken, South Carolina.
       (5) The United States and the State of South Carolina have 
     a compelling interest in the safe, proper, and efficient 
     operation of the plutonium disposition facilities at the 
     Savannah River Site. The MOX facility will also be 
     economically beneficial to the State of South Carolina, and 
     that economic benefit will not be fully realized unless the 
     MOX facility is built.
       (6) The State of South Carolina desires to ensure that all 
     plutonium transferred to the State of South Carolina is 
     stored safely; that the full benefits of the MOX facility are 
     realized as soon as possible; and, specifically, that all 
     defense plutonium or defense plutonium materials transferred 
     to the Savannah River Site either be processed or be removed 
     expeditiously.

     SEC. 3182. DISPOSITION OF WEAPONS-USABLE PLUTONIUM AT 
                   SAVANNAH RIVER SITE.

       (a) Plan for Construction and Operation of MOX Facility.--
     (1) Not later than February 1, 2003, the Secretary of Energy 
     shall submit to Congress a plan for the construction and 
     operation of the MOX facility at the Savannah River Site, 
     Aiken, South Carolina.
       (2) The plan under paragraph (1) shall include--
       (A) a schedule for construction and operations so as to 
     achieve, as of January 1, 2009, and thereafter, the MOX 
     production objective, and to produce 1 metric ton of mixed 
     oxide fuel by December 31, 2009; and
       (B) a schedule of operations of the MOX facility designed 
     so that 34 metric tons of defense plutonium and defense 
     plutonium materials at the Savannah River Site will be 
     processed into mixed oxide fuel by January 1, 2019.
       (3)(A) Not later than February 15 each year, beginning in 
     2004 and continuing for as long as the MOX facility is in 
     use, the Secretary shall submit to Congress a report on the 
     implementation of the plan required by paragraph (1).
       (B) Each report under subparagraph (A) for years before 
     2010 shall include--
       (i) an assessment of compliance with the schedules included 
     with the plan under paragraph (2); and
       (ii) a certification by the Secretary whether or not the 
     MOX production objective can be met by January 2009.
       (C) Each report under subparagraph (A) for years after 2009 
     shall--
       (i) address whether the MOX production objective has been 
     met; and
       (ii) assess progress toward meeting the obligations of the 
     United States under the Plutonium Management and Disposition 
     Agreement.
       (D) For years after 2017, each report under subparagraph 
     (A) shall also include an assessment of compliance with the 
     MOX production objective and, if not in compliance, the plan 
     of the Secretary for achieving one of the following:
       (i) Compliance with such objective.
       (ii) Removal of all remaining defense plutonium and defense 
     plutonium materials from the State of South Carolina.
       (b) Corrective Actions.--(1) If a report under subsection 
     (a)(3) indicates that construction or operation of the MOX 
     facility is behind the applicable schedule under subsection 
     (a)(2) by 12 months or more, the Secretary shall submit to 
     Congress, not later than August 15 of the year in which such 
     report is submitted, a plan for corrective actions to be 
     implemented by the Secretary to ensure that the MOX facility 
     project is capable of meeting the MOX production objective by 
     January 1, 2009.
       (2) If a plan is submitted under paragraph (1) in any year 
     after 2008, the plan shall include corrective actions to be 
     implemented by the Secretary to ensure that the MOX 
     production objective is met.
       (3) Any plan for corrective actions under paragraph (1) or 
     (2) shall include established milestones under such plan for 
     achieving compliance with the MOX production objective.
       (4) If, before January 1, 2009, the Secretary determines 
     that there is a substantial and material risk that the MOX 
     production objective will not be achieved by 2009 because of 
     a failure to achieve milestones set forth in the most recent 
     corrective action plan under this subsection, the Secretary 
     shall suspend further transfers of defense plutonium and 
     defense plutonium materials to be processed by the MOX 
     facility until such risk is addressed and the Secretary 
     certifies that the MOX production objective can be met by 
     2009.
       (5) If, after January 1, 2009, the Secretary determines 
     that the MOX production objective has not been achieved 
     because of a failure to achieve milestones set forth in the 
     most recent corrective action plan under this subsection, the 
     Secretary shall suspend further transfers of defense 
     plutonium and defense plutonium materials to be processed by 
     the MOX facility until the Secretary certifies that the MOX 
     production objective can be met by 2009.
       (6)(A) Upon making a determination under paragraph (4) or 
     (5), the Secretary shall submit to Congress a report on the 
     options for removing from the State of South Carolina an 
     amount of defense plutonium or defense plutonium materials 
     equal to the amount of defense plutonium or defense plutonium 
     materials transferred to the State of South Carolina after 
     April 15, 2002.
       (B) Each report under subparagraph (A) shall include an 
     analysis of each option set forth in the report, including 
     the cost and

[[Page 12220]]

     schedule for implementation of such option, and any 
     requirements under the National Environmental Policy Act of 
     1969 (42 U.S.C. 4321 et seq.) relating to consideration or 
     selection of such option.
       (C) Upon submittal of a report under paragraph (A), the 
     Secretary shall commence any analysis that may be required 
     under the National Environmental Policy Act of 1969 in order 
     to select among the options set forth in the report.
       (c) Contingent Requirement for Removal of Plutonium and 
     Materials From Savannah River Site.--If the MOX production 
     objective is not achieved as of January 1, 2009, the 
     Secretary shall, consistent with the National Environmental 
     Policy Act of 1969 and other applicable laws, remove from the 
     State of South Carolina, for storage or disposal elsewhere--
       (1) not later than January 1, 2011, not less than 1 metric 
     ton of defense plutonium or defense plutonium materials; and
       (2) not later than January 1, 2017, an amount of defense 
     plutonium or defense plutonium materials equal to the amount 
     of defense plutonium or defense plutonium materials 
     transferred to the Savannah River Site between April 15, 2002 
     and January 1, 2017, but not processed by the MOX facility.
       (d) Economic and Impact Assistance.--(1) If the MOX 
     production objective is not achieved as of January 1, 2011, 
     the Secretary shall pay to the State of South Carolina each 
     year beginning on or after that date through 2016 for 
     economic and impact assistance an amount equal to $1,000,000 
     per day until the later of--
       (A) the passage of 100 days in such year;
       (B) the MOX production objective is achieved in such year; 
     or
       (C) the Secretary has removed from the State of South 
     Carolina in such year at least 1 metric ton of defense 
     plutonium or defense plutonium materials.
       (2)(A) If the MOX production objective is not achieved as 
     of January 1, 2017, the Secretary shall pay to the State of 
     South Carolina each year beginning on or after that date 
     through 2024 for economic and impact assistance an amount 
     equal to $1,000,000 per day until the later of--
       (i) the passage of 100 days in such year;
       (ii) the MOX production objective is achieved in such year; 
     or
       (iii) the Secretary has removed from the State of South 
     Carolina an amount of defense plutonium or defense plutonium 
     materials equal to the amount of defense plutonium or defense 
     plutonium materials transferred to the Savannah River Site 
     between April 15, 2002 and January 1, 2017, but not processed 
     by the MOX facility.
       (B) Nothing in this paragraph may be construed to 
     terminate, supersede, or otherwise affect any other 
     requirements of this section.
       (3) The Secretary shall make payments, if any, under this 
     subsection, from amounts authorized to be appropriated to the 
     Department of Energy.
       (4) If the State of South Carolina obtains an injunction 
     that prohibits the Department from taking any action 
     necessary for the Department to meet any deadline specified 
     by this subsection, that deadline shall be extended for a 
     period of time equal to the period of time during which the 
     injunction is in effect.
       (e) Failure To Complete Planned Disposition Program.--If on 
     July 1 each year beginning in 2020 and continuing for as long 
     as the MOX facility is in use, less than 34 metric tons of 
     defense plutonium or defense plutonium materials have been 
     processed by the MOX facility, the Secretary shall submit to 
     Congress a plan for--
       (1) completing the processing of 34 metric tons of defense 
     plutonium and defense plutonium material by the MOX facility; 
     or
       (2) removing from the State of South Carolina an amount of 
     defense plutonium or defense plutonium materials equal to the 
     amount of defense plutonium or defense plutonium materials 
     transferred to the Savannah River Site after April 15, 2002, 
     but not processed by the MOX facility.
       (f) Removal of Mixed-Oxide Fuel Upon Completion of 
     Operations of MOX Facility.--If, one year after the date on 
     which operation of the MOX facility permanently ceases any 
     mixed-oxide fuel remains at the Savannah River Site, the 
     Secretary shall submit to Congress--
       (1) a report on when such fuel will be transferred for use 
     in commercial nuclear reactors; or
       (2) a plan for removing such fuel from the State of South 
     Carolina.
       (g) Definitions.--In this section:
       (1) MOX production objective.--The term ``MOX production 
     objective'' means production at the MOX facility of mixed-
     oxide fuel from defense plutonium and defense plutonium 
     materials at an average rate equivalent to not less than one 
     metric ton of mixed-oxide fuel per year. The average rate 
     shall be determined by measuring production at the MOX 
     facility from the date the facility is declared operational 
     to the Nuclear Regulatory Commission through the date of 
     assessment.
       (2) MOX facility.--The term ``MOX facility'' means the 
     mixed-oxide fuel fabrication facility at the Savannah River 
     Site, Aiken, South Carolina.
       (3) Defense plutonium; defense plutonium materials.--The 
     terms ``defense-plutonium'' and ``defense plutonium 
     materials'' mean weapons-usable plutonium.

     SEC. 3183. STUDY OF FACILITIES FOR STORAGE OF PLUTONIUM AND 
                   PLUTONIUM MATERIALS AT SAVANNAH RIVER SITE.

       (a) Study.--The Defense Nuclear Facilities Safety Board 
     shall conduct a study of the adequacy of K-Area Materials 
     Storage facility (KAMS), and related support facilities such 
     as Building 235-F, at the Savannah River Site, Aiken, South 
     Carolina, for the storage of defense plutonium and defense 
     plutonium materials in connection with the disposition 
     program provided in section 3182 and in connection with the 
     amended Record of Decision of the Department of Energy for 
     fissile materials disposition.
       (b) Report.--Not later than one year after the date of 
     enactment of this Act, the Defense Nuclear Facilities Safety 
     Board shall submit to Congress and the Secretary of Energy a 
     report on the study conducted under subsection (a).
       (c) Report Elements.--The report under subsection (b) 
     shall--
       (1) address--
       (A) the suitability of KAMS and related support facilities 
     for monitoring and observing any defense plutonium or defense 
     plutonium materials stored in KAMS;
       (B) the adequacy of the provisions made by the Department 
     for remote monitoring of such defense plutonium and defense 
     plutonium materials by way of sensors and for handling of 
     retrieval of such defense plutonium and defense plutonium 
     materials; and
       (C) the adequacy of KAMS should such defense plutonium and 
     defense plutonium materials continue to be stored at KAMS 
     after 2019; and
       (2) include such recommendations as the Defense Nuclear 
     Facilities Safety Board considers appropriate to enhance the 
     safety, reliability, and functionality of KAMS.
       (d) Reports on Actions on Recommendations.--Not later than 
     6 months after the date on which the report under subsection 
     (b) is submitted to Congress, and every year thereafter, the 
     Secretary and the Board shall each submit to Congress a 
     report on the actions taken by the Secretary in response to 
     the recommendations, if any, included in the report.

          TITLE XXXII--DEFENSE NUCLEAR FACILITIES SAFETY BOARD

     SEC. 3201. AUTHORIZATION.

       There are authorized to be appropriated for fiscal year 
     2003, $19,494,000 for the operation of the Defense Nuclear 
     Facilities Safety Board under chapter 21 of the Atomic Energy 
     Act of 1954 (42 U.S.C. 2286 et seq.).

     SEC. 3202. AUTHORIZATION OF APPROPRIATIONS FOR THE FORMERLY 
                   USED SITES REMEDIAL ACTION PROGRAM OF THE CORPS 
                   OF ENGINEERS.

       There is hereby authorized to be appropriated for fiscal 
     year 2003 for the Department of the Army, $140,000,000 for 
     the formerly used sites remedial action program of the Corps 
     of Engineers.

                          ____________________