[Congressional Record (Bound Edition), Volume 149 (2003), Part 19]
[House]
[Pages 27005-27034]
[From the U.S. Government Publishing Office, www.gpo.gov]




 CONFERENCE REPORT ON H.R. 2559, MILITARY CONSTRUCTION APPROPRIATIONS 
                               ACT, 2004

  Mr. YOUNG of Florida (during consideration of H. Con. Res. 280) 
submitted the following conference report and statement on the bill 
(H.R. 2559) making appropriations for military construction, family 
housing, and base realignment and closure for the Department of Defense 
for the fiscal year ending September 30, 2004, and for other purposes:

                  Conference Report (H. Rept. 108-342)

       The committee of conference on the disagreeing votes of the 
     two Houses on the amendment of the Senate to the bill (H.R. 
     2559) ``making appropriations for military construction, 
     family housing, and base realignment and closure for the 
     Department of Defense for the fiscal year ending September 
     30, 2004, and for other purposes,'' having met, after full 
     and free conference, have agreed to recommend and do 
     recommend to their respective Houses as follows:
       That the House recede from its disagreement to the 
     amendment of the Senate, and agree to the same with an 
     amendment, as follows:
       In lieu of the matter stricken and inserted by said 
     amendment, insert:

     That the following sums are appropriated, out of any money in 
     the Treasury not otherwise appropriated for military 
     construction, family housing, and base realignment and 
     closure functions administered by the Department of Defense, 
     for the fiscal year ending September 30, 2004, and for other 
     purposes, namely:

                      Military Construction, Army


                        (including rescissions)

       For acquisition, construction, installation, and equipment 
     of temporary or permanent public works, military 
     installations, facilities, and real property for the Army as 
     currently authorized by law, including personnel in the Army 
     Corps of Engineers and other personal services necessary for 
     the purposes of this appropriation, and for construction and 
     operation of facilities in support of the functions of the 
     Commander in Chief, $1,448,239,000, to remain available until 
     September 30, 2008: Provided, That of this amount, not to 
     exceed $126,833,000 shall be available for study, planning, 
     design, architect and engineer services, and host nation 
     support, as authorized by law, unless the Secretary of 
     Defense determines that additional obligations are necessary 
     for such purposes and notifies the Committees on 
     Appropriations of both Houses of Congress of his 
     determination and the reasons therefor: Provided further, 
     That of the funds appropriated for ``Military Construction, 
     Army'' under Public Law 107-249, $137,850,000 are rescinded: 
     Provided further, That of the funds appropriated for 
     ``Military Construction, Army'' under Public Law 107-64, 
     $24,000,000 are rescinded: Provided further, That of the 
     funds appropriated for ``Military Construction, Army'' under 
     Public Law 106-246, $17,415,000 are rescinded: Provided 
     further, That of the funds appropriated for ``Military 
     Construction, Army'' under Public Law 106-52, $4,350,000 are 
     rescinded.

                      Military Construction, Navy


                        (including rescissions)

       For acquisition, construction, installation, and equipment 
     of temporary or permanent public works, naval installations, 
     facilities, and real property for the Navy as currently 
     authorized by law, including personnel in the Naval 
     Facilities Engineering Command and other personal services 
     necessary for the purposes of this appropriation, 
     $1,238,458,000, to remain available until September 30, 2008: 
     Provided, That of this amount, not to exceed $71,001,000 
     shall be available for study, planning, design, architect and 
     engineer services, as authorized by law, unless the Secretary 
     of Defense determines that additional obligations are 
     necessary for such purposes and notifies the Committees on 
     Appropriations of both Houses of Congress of his 
     determination and the reasons therefor: Provided further, 
     That of the funds appropriated for ``Military Construction, 
     Navy'' under Public Law 107-249, $27,213,000 are rescinded: 
     Provided further, That of the funds appropriated for 
     ``Military Construction, Navy'' under Public Law 107-64, 
     $18,409,000 are rescinded.

                    Military Construction, Air Force


                         (including rescission)

       For acquisition, construction, installation, and equipment 
     of temporary or permanent public works, military 
     installations, facilities, and real property for the Air 
     Force as currently authorized by law, $1,067,751,000, to 
     remain available until September 30, 2008: Provided, That of 
     this amount, not to exceed $95,778,000 shall be available for 
     study, planning, design, architect and engineer services, as 
     authorized by law, unless the Secretary of Defense determines 
     that additional obligations are necessary for such purposes 
     and notifies the Committees on Appropriations of both Houses 
     of Congress of his determination and the reasons therefor: 
     Provided further, That of the funds appropriated for 
     ``Military Construction, Air Force'' in Public Law 107-249, 
     $23,000,000 are rescinded.

                  Military Construction, Defense-Wide


              (including rescission and transfer of funds)

       For acquisition, construction, installation, and equipment 
     of temporary or permanent public works, installations, 
     facilities, and real property for activities and agencies of 
     the Department of Defense (other than the military 
     departments), as currently authorized by law, $773,471,000, 
     to remain available until September 30, 2008: Provided, That 
     such amounts of this appropriation as may be determined by 
     the Secretary of Defense may be transferred to such 
     appropriations of the Department of Defense available for 
     military construction or family housing as he may designate, 
     to be merged with and to be available for the same purposes, 
     and for the same time period, as the appropriation or fund to 
     which transferred: Provided further, That of the amount 
     appropriated, not to exceed $65,130,000 shall be available 
     for study, planning, design, architect and engineer services, 
     as authorized by law, unless the Secretary of Defense 
     determines that additional obligations are necessary for such 
     purposes and notifies the Committees on Appropriations of 
     both Houses of Congress of his determination and the reasons 
     therefor: Provided further, That of the funds appropriated 
     for ``Military Construction, Defense-wide'' under Public Law 
     107-249, $72,309,000 are rescinded.

               Military Construction, Army National Guard

       For construction, acquisition, expansion, rehabilitation, 
     and conversion of facilities for the training and 
     administration of the Army National Guard, and contributions 
     therefor, as authorized by chapter 1803 of title 10, United 
     States Code, and Military Construction Authorization Acts, 
     $311,592,000, to remain available until September 30, 2008.

               Military Construction, Air National Guard

       For construction, acquisition, expansion, rehabilitation, 
     and conversion of facilities for the training and 
     administration of the Air National Guard, and contributions 
     therefor, as authorized by chapter 1803 of title 10, United 
     States

[[Page 27006]]

     Code, and Military Construction Authorization Acts, 
     $222,908,000, to remain available until September 30, 2008.

                  Military Construction, Army Reserve

       For construction, acquisition, expansion, rehabilitation, 
     and conversion of facilities for the training and 
     administration of the Army Reserve as authorized by chapter 
     1803 of title 10, United States Code, and Military 
     Construction Authorization Acts, $88,451,000, to remain 
     available until September 30, 2008.

                  Military Construction, Naval Reserve

       For construction, acquisition, expansion, rehabilitation, 
     and conversion of facilities for the training and 
     administration of the reserve components of the Navy and 
     Marine Corps as authorized by chapter 1803 of title 10, 
     United States Code, and Military Construction Authorization 
     Acts, $45,498,000, to remain available until September 30, 
     2008.

                Military Construction, Air Force Reserve

       For construction, acquisition, expansion, rehabilitation, 
     and conversion of facilities for the training and 
     administration of the Air Force Reserve as authorized by 
     chapter 1803 of title 10, United States Code, and Military 
     Construction Authorization Acts, $62,032,000, to remain 
     available until September 30, 2008.

                   North Atlantic Treaty Organization

                      Security Investment Program


                         (including rescission)

       For the United States share of the cost of the North 
     Atlantic Treaty Organization Security Investment Program for 
     the acquisition and construction of military facilities and 
     installations (including international military headquarters) 
     and for related expenses for the collective defense of the 
     North Atlantic Treaty Area as authorized in Military 
     Construction Authorization Acts and section 2806 of title 10, 
     United States Code, $169,300,000, to remain available until 
     expended: Provided, That of the funds appropriated for 
     ``North Atlantic Treaty Organization Security Investment 
     Program'' under Public Law 107-249, $8,000,000 are rescinded.

                   Family Housing Construction, Army


                         (including rescission)

       For expenses of family housing for the Army for 
     construction, including acquisition, replacement, addition, 
     expansion, extension and alteration, as authorized by law, 
     $383,591,000, to remain available until September 30, 2008: 
     Provided, That of the funds appropriated for ``Family Housing 
     Construction, Army'' under Public Law 107-249, $94,151,000 
     are rescinded.

             Family Housing Operation and Maintenance, Army

       For expenses of family housing for the Army for operation 
     and maintenance, including debt payment, leasing, minor 
     construction, principal and interest charges, and insurance 
     premiums, as authorized by law, $1,033,026,000.

           Family Housing Construction, Navy and Marine Corps


                         (including rescission)

       For expenses of family housing for the Navy and Marine 
     Corps for construction, including acquisition, replacement, 
     addition, expansion, extension and alteration, as authorized 
     by law, $184,193,000, to remain available until September 30, 
     2008: Provided, That of the funds appropriated for ``Family 
     Housing Construction, Navy and Marine Corps'' under Public 
     Law 107-249, $40,508,000 are rescinded.

    Family Housing Operation and Maintenance, Navy and Marine Corps

       For expenses of family housing for the Navy and Marine 
     Corps for operation and maintenance, including debt payment, 
     leasing, minor construction, principal and interest charges, 
     and insurance premiums, as authorized by law, $835,078,000.

                 Family Housing Construction, Air Force


                         (including rescission)

       For expenses of family housing for the Air Force for 
     construction, including acquisition, replacement, addition, 
     expansion, extension and alteration, as authorized by law, 
     $657,065,000, to remain available until September 30, 2008: 
     Provided, That of the funds appropriated for ``Family Housing 
     Construction, Air Force'' under Public Law 107-249, 
     $19,347,000 are rescinded.

          Family Housing Operation and Maintenance, Air Force

       For expenses of family housing for the Air Force for 
     operation and maintenance, including debt payment, leasing, 
     minor construction, principal and interest charges, and 
     insurance premiums, as authorized by law, $816,074,000.

               Family Housing Construction, Defense-Wide

       For expenses of family housing for the activities and 
     agencies of the Department of Defense (other than the 
     military departments) for construction, including 
     acquisition, replacement, addition, expansion, extension and 
     alteration, as authorized by law, $350,000, to remain 
     available until September 30, 2008.

         Family Housing Operation and Maintenance, Defense-Wide

       For expenses of family housing for the activities and 
     agencies of the Department of Defense (other than the 
     military departments) for operation and maintenance, leasing, 
     and minor construction, as authorized by law, $49,440,000.

         Department of Defense Family Housing Improvement Fund


                         (including rescission)

       For the Department of Defense Family Housing Improvement 
     Fund, $300,000, to remain available until expended, for 
     family housing initiatives undertaken pursuant to section 
     2883 of title 10, United States Code, providing alternative 
     means of acquiring and improving military family housing and 
     supporting facilities: Provided, That of funds available in 
     the ``Family Housing Improvement Fund'', $9,692,000 are 
     rescinded.

                  Base Realignment and Closure Account

       For deposit into the Department of Defense Base Closure 
     Account 1990 established by section 2906(a)(1) of the 
     Department of Defense Authorization Act, 1991 (Public Law 
     101-510), $370,427,000, to remain available until expended.

                           GENERAL PROVISIONS

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


                          (transfer of funds)

       Sec. 115. Funds appropriated to the Department of Defense 
     for construction in prior years

[[Page 27007]]

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


                          (transfer of funds)

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


                          (transfer of funds)

       Sec. 120. During the current fiscal year, in addition to 
     any other transfer authority available to the Department of 
     Defense, proceeds deposited to the Department of Defense Base 
     Closure Account established by section 207(a)(1) of the 
     Defense Authorization Amendments and Base Closure and 
     Realignment Act (Public Law 100-526) pursuant to section 
     207(a)(2)(C) of such Act, may be transferred to the account 
     established by section 2906(a)(1) of the Department of 
     Defense Authorization Act, 1991, to be merged with, and to be 
     available for the same purposes and the same time period as 
     that account.


                          (transfer of funds)

       Sec. 121. Subject to 30 days prior notification to the 
     Committees on Appropriations, such additional amounts as may 
     be determined by the Secretary of Defense may be transferred 
     to the Department of Defense Family Housing Improvement Fund 
     from amounts appropriated for construction in ``Family 
     Housing'' accounts, to be merged with and to be available for 
     the same purposes and for the same period of time as amounts 
     appropriated directly to the Fund: Provided, That 
     appropriations made available to the Fund shall be available 
     to cover the costs, as defined in section 502(5) of the 
     Congressional Budget Act of 1974, of direct loans or loan 
     guarantees issued by the Department of Defense pursuant to 
     the provisions of subchapter IV of chapter 169, title 10, 
     United States Code, pertaining to alternative means of 
     acquiring and improving military family housing and 
     supporting facilities.
       Sec. 122. None of the funds appropriated or made available 
     by this Act may be obligated for Partnership for Peace 
     Programs in the New Independent States of the former Soviet 
     Union.
       Sec. 123. (a) Not later than 60 days before issuing any 
     solicitation for a contract with the private sector for 
     military family housing the Secretary of the military 
     department concerned shall submit to the congressional 
     defense committees the notice described in subsection (b).
       (b)(1) A notice referred to in subsection (a) is a notice 
     of any guarantee (including the making of mortgage or rental 
     payments) proposed to be made by the Secretary to the private 
     party under the contract involved in the event of--
       (A) the closure or realignment of the installation for 
     which housing is provided under the contract;
       (B) a reduction in force of units stationed at such 
     installation; or
       (C) the extended deployment overseas of units stationed at 
     such installation.
       (2) Each notice under this subsection shall specify the 
     nature of the guarantee involved and assess the extent and 
     likelihood, if any, of the liability of the Federal 
     Government with respect to the guarantee.
       (c) In this section, the term ``congressional defense 
     committees'' means the following:
       (1) The Committee on Armed Services and the Military 
     Construction Subcommittee, Committee on Appropriations of the 
     Senate.
       (2) The Committee on Armed Services and the Military 
     Construction Subcommittee, Committee on Appropriations of the 
     House of Representatives.


                          (transfer of funds)

       Sec. 124. During the current fiscal year, in addition to 
     any other transfer authority available to the Department of 
     Defense, amounts may be transferred from the account 
     established by section 2906(a)(1) of the Department of 
     Defense Authorization Act, 1991, to the fund established by 
     section 1013(d) of the Demonstration Cities and Metropolitan 
     Development Act of 1966 (42 U.S.C. 3374) to pay for expenses 
     associated with the Homeowners Assistance Program. Any 
     amounts transferred shall be merged with and be available for 
     the same purposes and for the same time period as the fund to 
     which transferred.
       Sec. 125. Notwithstanding this or any other provision of 
     law, funds appropriated in Military Construction 
     Appropriations Acts for operations and maintenance of family 
     housing shall be the exclusive source of funds for repair and 
     maintenance of all family housing units, including general or 
     flag officer quarters: Provided, That not more than $35,000 
     per unit may be spent annually for the maintenance and repair 
     of any general or flag officer quarters without 30 days 
     advance prior notification to the appropriate committees of 
     Congress, except that an after-the-fact notification shall be 
     submitted if the limitation is exceeded solely due to costs 
     associated with environmental remediation that could not be 
     reasonably anticipated at the time of the budget submission: 
     Provided further, That the Under Secretary of Defense 
     (Comptroller) is to report annually to the Committees on 
     Appropriations all operations and maintenance expenditures 
     for each individual general or flag officer quarters for the 
     prior fiscal year.
       Sec. 126. None of the funds made available in this Act may 
     be transferred to any department, agency, or instrumentality 
     of the United States Government, except pursuant to a 
     transfer made by, or transfer authority provided in, this Act 
     or any other appropriation Act.
       Sec. 127. No funds appropriated in this Act under the 
     heading ``North Atlantic Treaty Organization Security 
     Investment Program'', and no funds appropriated for any 
     fiscal year before fiscal year 2004 for that program that 
     remain available for obligation, may be obligated or expended 
     for the conduct of studies of missile defense.
       Sec. 128. (a) Commission on Review of Overseas Military 
     Facility Structure of the United States.--(1) There is 
     established the Commission on the Review of the Overseas 
     Military Facility Structure of the United States (in this 
     section referred to as the ``Commission'').
       (2)(A) The Commission shall be composed of eight members of 
     whom--
       (i) two shall be appointed by the Majority Leader of the 
     Senate;
       (ii) two shall be appointed by the Minority Leader of the 
     Senate;
       (iii) two shall be appointed by the Speaker of the House of 
     Representatives; and
       (iv) two shall be appointed by the Minority Leader of the 
     House of Representatives.
       (B) Individuals appointed to the Commission shall have 
     significant experience in the national security or foreign 
     policy of the United States.
       (C) Appointments of the members of the Commission shall be 
     made not later than 45 days after the date of the enactment 
     of this Act.
       (3) Members shall be appointed for the life of the 
     Commission. Any vacancy in the Commission shall not affect 
     its powers, but shall be filled in the same manner as the 
     original appointment.
       (4) Not later than 30 days after the date on which all 
     members of the Commission have been appointed, the Commission 
     shall hold its first meeting.
       (5) The Commission shall meet at the call of the Chairman.
       (6) A majority of the members of the Commission shall 
     constitute a quorum, but a lesser number of members may hold 
     hearings.
       (7) The Commission shall select a Chairman and Vice 
     Chairman from among its members.
       (b) Duties.--(1) The Commission shall conduct a thorough 
     study of matters relating to the military facility structure 
     of the United States overseas.
       (2) In conducting the study, the Commission shall--
       (A) assess the number of forces required to be forward 
     based outside the United States;
       (B) examine the current state of the military facilities 
     and training ranges of the United States overseas for all 
     permanent stations and deployed locations, including the 
     condition of land and improvements at such facilities and 
     ranges and the availability of additional land, if required, 
     for such facilities and ranges;
       (C) identify the amounts received by the United States, 
     whether in direct payments, in-kind contributions, or 
     otherwise, from foreign countries by reason of military 
     facilities of the United States overseas;
       (D) assess whether or not the current military basing and 
     training range structure of the United States overseas is 
     adequate to meet the current and future mission of the 
     Department of Defense, including contingency, mobilization, 
     and future force requirements;
       (E) assess the feasibility and advisability of the closure 
     or realignment of military facilities of the United States 
     overseas, or of the establishment of new military facilities 
     of the United States overseas; and
       (F) consider or assess any other issue relating to military 
     facilities of the United States overseas that the Commission 
     considers appropriate.
       (3)(A) Not later than December 31, 2004, the Commission 
     shall submit to the President and Congress a report which 
     shall contain a detailed statement of the findings and 
     conclusions of the

[[Page 27008]]

     Commission, together with its recommendations for such 
     legislation and administrative actions as it considers 
     appropriate.
       (B) In addition to the matters specified in subparagraph 
     (A), the report shall also include a proposal by the 
     Commission for an overseas basing strategy for the Department 
     of Defense in order to meet the current and future mission of 
     the Department.
       (c) Powers.--(1) The Commission may hold such hearings, sit 
     and act at such times and places, take such testimony, and 
     receive such evidence as the Commission considers advisable 
     to carry out this section.
       (2) The Commission may secure directly from any Federal 
     department or agency such information as the Commission 
     considers necessary to carry out this section. Upon request 
     of the Chairman of the Commission, the head of such 
     department or agency shall furnish such information to the 
     Commission.
       (3) Upon request of the Commission, the Administrator of 
     General Services shall provide to the Commission, on a 
     reimbursable basis, the administrative support necessary for 
     the Commission to carry out its duties under this section.
       (4) The Commission may use the United States mails in the 
     same manner and under the same conditions as other 
     departments and agencies of the Federal Government.
       (5) The Commission may accept, use, and dispose of gifts or 
     donations of services or property.
       (d) Personnel Matters.--(1) Each member of the Commission 
     who is not an officer or employee of the Federal Government 
     shall be compensated at a rate equal to the daily equivalent 
     of the annual rate of basic pay prescribed for level IV of 
     the Executive Schedule under section 5315 of title 5, United 
     States Code, for each day (including travel time) during 
     which such member is engaged in the performance of the duties 
     of the Commission under this section. All members of the 
     Commission who are officers or employees of the United States 
     shall serve without compensation in addition to that received 
     for their services as officers or employees of the United 
     States.
       (2)(A) Members of the Commission shall be allowed travel 
     expenses, including per diem in lieu of subsistence, at rates 
     authorized for employees of agencies under subchapter I of 
     chapter 57 of title 5, United States Code, while away from 
     their homes or regular places of business in the performance 
     of services for the Commission under this section.
       (B) Members and staff of the Commission may receive 
     transportation on military aircraft to and from the United 
     States, and overseas, for purposes of the performance of the 
     duties of the Commission to the extent that such 
     transportation will not interfere with the requirements of 
     military operations.
       (3)(A) The Chairman of the Commission may, without regard 
     to the civil service laws and regulations, appoint and 
     terminate an executive director and such other additional 
     personnel as may be necessary to enable the Commission to 
     perform its duties under this section. The employment of an 
     executive director shall be subject to confirmation by the 
     Commission.
       (B) The Commission may employ a staff to assist the 
     Commission in carrying out its duties. The total number of 
     the staff of the Commission, including an executive director 
     under subparagraph (A), may not exceed 12.
       (C) The Chairman of the Commission may fix the compensation 
     of the executive director and other personnel without regard 
     to chapter 51 and subchapter III of chapter 53 of title 5, 
     United States Code, relating to classification of positions 
     and General Schedule pay rates, except that the rate of pay 
     for the executive director and other personnel may not exceed 
     the rate payable for level V of the Executive Schedule under 
     section 5316 of such title.
       (4) Any employee of the Department of Defense, the 
     Department of State, or the General Accounting Office may be 
     detailed to the Commission without reimbursement, and such 
     detail shall be without interruption or loss of civil service 
     status or privilege.
       (5) The Chairman of the Commission may procure temporary 
     and intermittent services under section 3109(b) of title 5, 
     United States Code, at rates for individuals which do not 
     exceed the daily equivalent of the annual rate of basic pay 
     prescribed for level V of the Executive Schedule under 
     section 5316 of such title.
       (e) Security.--(1) Members and staff of the Commission, and 
     any experts and consultants to the Commission, shall possess 
     security clearances appropriate for their duties with the 
     Commission under this section.
       (2) The Secretary of Defense shall assume responsibility 
     for the handling and disposition of any information relating 
     to the national security of the United States that is 
     received, considered, or used by the Commission under this 
     section.
       (f) Termination.--The Commission shall terminate 45 days 
     after the date on which the Commission submits its report 
     under subsection (b).
       (g) Funding.--(1) Of the amount appropriated by this Act, 
     $3,000,000 shall be available to the Commission to carry out 
     this section.
       (2) The amount made available by paragraph (1) shall remain 
     available, without fiscal year limitation, until September 
     2005.
       This Act may be cited as the ``Military Construction 
     Appropriations Act, 2004''.
         And the Senate agree to the same.

     Joe Knollenberg,
     James T. Walsh,
     Robert B. Aderholt,
     Kay Granger,
     Virgil Goode,
     David Vitter,
     Jack Kingston,
     Ander Crenshaw,
     Bill Young,
     Chet Edwards,
     Sam Farr,
     Allen Boyd,
     Sanford D. Bishop, Jr.,
     Norman Dicks,
     David Obey,
                                Managers on the Part of the House.

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

       JOINT EXPLANATORY STATEMENT OF THE COMMITTEE OF CONFERENCE

       The managers on the part of the House and the Senate at the 
     conference on the disagreeing votes of the two Houses on the 
     amendment of the Senate to the bill (H.R. 2559) making 
     appropriations for the Department of Defense for the fiscal 
     year ending September 30, 2004, and for other purposes, 
     submit the following joint statement to the House of 
     Representatives and the Senate in explanation of the effect 
     of the action agreed upon by the managers and recommended in 
     the accompanying conference report.
       The Senate deleted the entire House bill after the enacting 
     clause and inserted the Senate bill (S. 1357). The conference 
     agreement includes a revised bill.

                       Items of General Interest

       Matters Addressed by Only One Committee.--The language and 
     allocations set forth in House Report 108-173 and Senate 
     Report 108-82 should be complied with unless specifically 
     addressed to the contrary in the conference report and 
     statement of the managers. Report language included by the 
     House which is not changed by the report of the Senate or the 
     conference, and Senate report language which is not changed 
     by the conference is approved by the committee of conference. 
     The statement of the managers, while repeating some report 
     language for emphasis, does not intend to negate the language 
     referred to above unless expressly provided herein. In cases 
     where the House or the Senate have directed the submission of 
     a report from the Department of Defense, such report is to be 
     submitted to both House and Senate Committees on 
     Appropriations.
       Army National Guard and Reserve Mobilization Facilities.--
     The conferees are concerned about the growing demand being 
     placed upon mobilization facilities required to support Army 
     National Guard and Reserve personnel. The conferees, 
     therefore, direct the Chief of Staff of the Army to submit a 
     report no later than April 15, 2004, which assesses the 
     current status of Army National Guard and Reserve 
     mobilization facilities and describes their adequacy to 
     house, train, prepare, mobilize and demobilize soldiers. In 
     particular the report should assess and make recommendations 
     regarding mobilization centers' capacity to billet soldiers 
     held for extended periods of time including for medical care 
     and evaluation purposes. Likewise, the report should evaluate 
     and make recommendations to improve the management of 
     billeting resources that support mobilization.
       Audit Trail Documents.--The conferees direct the Department 
     to reinstate, beginning in March 2004, the semi-annual 
     submission of audit trail documents as directed in House 
     Report 99-275. These reports shall include line item detail 
     on projects as budgeted in the Construction Annex and also 
     include line item detail on projects funded under Minor 
     Construction and Family Housing Improvements. The semi-annual 
     reports shall include, but not be limited to, the following: 
     (a) project amount (appropriation); (b) changes due to formal 
     and below threshold reprogrammings; and (c) the current 
     working estimate for each project. The audit trail documents 
     shall reflect projects from fiscal year 2000 forward.
       Barracks Privatization.--The conferees agree that the 
     Department should implement without delay the recommendations 
     in General Accounting Office (GAO) report ``Military Housing: 
     Opportunities That Should Be Explored to Improve Housing and 
     Reduce Costs for Unmarried Junior Service members, GAO-03-
     602, June 10, 2003.'' One of the findings of the GAO report 
     is that the Department of Defense (DoD) and the services had 
     not fully explored barracks privatization to determine 
     whether the concept could provide a better economic value to 
     the government than the use of military construction 
     financing. As indicated in the FY 2003 Conference Report, the 
     conferees continue to support the barracks privatization 
     initiative and look forward to the Department of Navy report 
     on lessons learned after implementation of three pilot 
     projects (one in Norfolk, Virginia, and one each in San Diego 
     and Camp Pendleton, California). The conferees continue to be 
     concerned about the unknown consequences of commingling 
     barracks privatization funds with family housing funds and 
     the resulting integrity of the

[[Page 27009]]

     fiscal audit trail. Specifically, the conferees are concerned 
     that the DoD and Congress must be able to clearly identify 
     and track the financial advantages of privatizing 
     unaccompanied barracks versus the traditional military 
     construction approach. Merging the family housing and 
     unaccompanied housing accounts cannot be endorsed by the 
     conferees until further clarification of the project scope, 
     debt structure, and impact on funding requirements can be 
     presented.
       Family Housing Operation and Maintenance: Financial 
     Management.--The conferees agree to continue the restriction 
     on the transfer of funds among subaccounts in the family 
     housing operation and maintenance accounts. The limitation is 
     ten percent to all primary accounts and subaccounts. Such 
     transfers are to be reported to the appropriate Committees 
     within thirty days of such action.
       Family Housing Operation and Maintenance Reductions.--The 
     conferees are concerned that the assumptions and methods 
     underlying the budget request for family housing operation 
     and maintenance accounts are not adequately explained by the 
     service components. To better evaluate the efficacy of these 
     estimates, and to more fully understand this account and its 
     subaccounts, the conferees direct the GAO to conduct a study 
     on the assumptions and methods utilized by each service 
     component to develop their respective estimates, and to 
     report to Congress no later than April 15, 2004.
       Because of apparent miscalculations in estimating 
     requirements, the conferees agree to reduce $10,000,000 each 
     from the Army and Air Force operation and maintenance 
     accounts. In addition, the conferees agree to reduce 
     $17,700,000 from the Navy account, of which $7,700,000 is 
     from the management account. Unlike the other service 
     components, the Navy failed to adequately account for the 
     reduction in housing units due to the public/private venture 
     initiative.
       The conferees are extremely concerned about transfers 
     between the various family housing operation and maintenance 
     subaccounts. Therefore, in addition to the above GAO study, 
     the conferees direct GAO to review the transfer of funds 
     between these accounts, including amounts over and under the 
     established threshold and to report to Congress no later than 
     April 15, 2004.
       Housing Privatization: Rescission of Funds and Notification 
     Requirements of Reductions in Funding.--The conferees agree 
     to rescind $48,099,000 from Family Housing Construction 
     accounts to reflect savings from projects where estimated 
     equity contributions were unnecessary. Section 2853 of Title 
     10, United States Code, requires congressional notification 
     of intent to cancel or reduce the scope of a previously 
     approved military construction or family housing project by 
     more than 25 percent. The conferees note this requirement 
     applies to funds appropriated in the family housing 
     improvement accounts for the purpose of privatizing military 
     family housing. The Service Secretaries are, therefore, 
     required to submit a 21-day prior notification of intent to 
     cancel or reduce the amount previously appropriated for a 
     specific housing privatization project by more than 25 
     percent. The notification shall include the amount of the 
     reduction and the reasons therefor.
       Clarification of Housing Privatization Reporting 
     Requirements.--In accordance with current law, the Service 
     Secretaries are required to submit a 30-day prior 
     notification of each contract for the acquisition or 
     construction of family housing units that the Secretary 
     proposes to solicit under the housing privatization 
     authorities and for each conveyance or lease proposed under 
     Section 2878 of Title 10, United States Code.
       Overseas Master Plans.--The conferees direct the Department 
     to prepare comprehensive master plans for overseas military 
     infrastructure and to submit the plans with the fiscal year 
     2006 budget submission instead of the fiscal year 2005 budget 
     submission as proposed by the Senate. In addition, the 
     conferees agree a report on the status of the comprehensive 
     plans and their implementation is to be submitted with each 
     yearly military construction budget submission through fiscal 
     year 2009 instead of fiscal year 2008 as proposed by the 
     Senate. Master plans are valuable planning documents. 
     Therefore, the conferees may extend this requirement to 
     installations in the continental United States.
       Perchlorate.--The conferees direct the Department to submit 
     a report identifying the sources of perchlorate on Base 
     Realignment and Closure (BRAC) properties and the plans to 
     remediate perchlorate contamination on these sites no later 
     than April 30, 2004, instead of March 30, 2004 as proposed by 
     the Senate.


                      military construction, army

                        (including rescissions)

       The conference agreement appropriates $1,448,239,000 for 
     Military Construction, Army, instead of $1,533,660,000 as 
     proposed by the House and $1,255,155,000 as proposed by the 
     Senate. Within this amount, the conference agreement earmarks 
     $126,833,000 for study, planning, design, architect and 
     engineer services, and host nation support instead of 
     $122,710,000 as proposed by the House and $134,645,000 as 
     proposed by the Senate. The conference agreement rescinds 
     $183,615,000 from funds previously provided to this account 
     as proposed by the House and Senate. The rescissions include 
     the following amounts:

----------------------------------------------------------------------------------------------------------------
         Public Law/location               Project title            House            Senate         Conference
----------------------------------------------------------------------------------------------------------------
Public Law 107-249 (FY 2003):
    Germany: Bamberg................  Child Development            -$7,000,000      -$7,000,000      -$7,000,000
                                       Center.
    Germany: Bamberg................  Barracks Complex--           -10,200,000      -10,200,000      -10,200,000
                                       Warner.
    Germany: Coleman Barracks.......  Upgrade Access Control        -1,350,000       -1,350,000       -1,350,000
                                       Points.
    Germany: Darmstadt..............  Modified Record Fire          -3,500,000       -3,500,000       -3,500,000
                                       Range.
    Germany: Mannheim...............  Barracks Complex--           -42,000,000      -42,000,000      -42,000,000
                                       Coleman.
    Germany: Schweinfurt............  Central Vehicle Wash          -2,000,000       -2,000,000       -2,000,000
                                       Facility.
    Korea: Camp Bonifas.............  Physical Fitness              -4,350,000       -4,350,000                0
                                       Training Center.
    Korea: Camp Castle..............  Physical Fitness              -6,800,000       -6,800,000       -6,800,000
                                       Training Center.
    Korea: Camp Hovey...............  Barracks Complex.......      -25,000,000      -25,000,000      -25,000,000
    Korea: K-16 Airfield............  Barracks Complex.......      -40,000,000      -40,000,000      -40,000 000
                                                              --------------------------------------------------
      Subtotal......................  .......................     -142,200,000     -142,200,000     -137,850,000
                                                              ==================================================
Public Law 107-64 (FY 2002):
    Korea: Camp Hovey...............  Barracks Complex--Bid        -10,770,000      -10,770,000      -10,770,000
                                       Savings.
    Korea: Camp Stanley.............  Barracks Complex--Bid        -13,230,000      -13,230,000      -13,230,000
                                       Savings.
                                                              --------------------------------------------------
      Subtotal......................  .......................      -24,000,000      -24,000,000      -24,000,000
                                                              ==================================================
Public Law 106-246 (FY 2001): Korea:  Barracks Complex.......      -17,415,000      -17,415,000      -17,415,000
 Camp Page.
                                                              --------------------------------------------------
      Subtotal......................  .......................      -17,415,000      -17,415,000      -17,415,000
                                                              ==================================================
Public Law 106-52 (FY 2000): Korea:   Physical Fitness                       0                0       -4,350,000
 Camp Bonifas.                         Training Center.
                                                              --------------------------------------------------
      Subtotal......................  .......................                0                0       -4,350,000
                                                              ==================================================
      Total.........................  .......................     -183,615,000     -183,615,000     -183,615,000
----------------------------------------------------------------------------------------------------------------

       Alabama--Anniston Army Depot: Powertrain Maintenance 
     Facility.--The conferees agree that within funds provided for 
     planning and design in this account, $1,000,000 shall be made 
     available to design this facility instead of $1,050,000 in 
     minor construction funds to construct a general instruction 
     building at Anniston Army Depot, Alabama as proposed by the 
     House.
       Korea--Camp Humphreys: Barracks.--The administration has 
     informed Congress of its plans to move substantial numbers of 
     United States forces in Korea to bases south of their present 
     locations, with Camp Humphreys being the primary 
     consolidation point for the shift of U.S. Army combat forces 
     and for personnel currently stationed at Yongsan Garrison. To 
     support this transformation, the May 1, 2003 budget amendment 
     requested that $212,000,000 in FY 2004 and prior year 
     construction projects intended for other bases in Korea be 
     moved to Camp Humphreys; extensive additional construction at 
     the base is planned for future fiscal years. However, 
     according to U.S. Forces Korea officials, no master plan 
     exists for construction at Camp Humphreys, and cost-sharing 
     arrangements to fund the move of U.S. forces are still under 
     negotiation between the governments of the United States and 
     the Republic of Korea.
       While the conferees support the Defense Department's 
     overall plan for the relocation of U.S. forces in Korea and 
     have provided funding in this appropriations bill for two 
     projects at Camp Humphreys, they are concerned that planning 
     for this significant undertaking is insufficiently developed 
     at this time. Though planning may proceed, construction may 
     not proceed on the two barracks at Camp Humphreys provided 
     for in this Act until:

[[Page 27010]]

       (1) A master facilities plan is developed for the entire 
     Camp Humphreys installation which accommodates the 
     anticipated relocation of U.S. forces to that facility, and
       (2) Cost-sharing arrangements for the relocation of U.S. 
     forces are agreed to by the governments of the United States 
     and the Republic of Korea.
       Upon completion, the master facilities plan should be 
     presented to the Military Construction Subcommittees.


                      military construction, navy

                        (including rescissions)

       The conference agreement appropriates $1,238,458,000 for 
     Military Construction, Navy, instead of $1,211,077,000 as 
     proposed by the House and $1,195,659,000 as proposed by the 
     Senate. Within this amount, the conference agreement earmarks 
     $71,001,000 for study, planning, design, architect and 
     engineer services instead of $65,612,000 as proposed by the 
     House and $77,283,000 as proposed by the Senate. The 
     conference agreement rescinds $45,622,000 from funds 
     previously provided to this account instead of $39,322,000 as 
     proposed by the House and Senate. The rescissions include the 
     following amounts:

----------------------------------------------------------------------------------------------------------------
         Public Law/location                Project title            House           Senate         Conference
----------------------------------------------------------------------------------------------------------------
Public Law 107-249 (FY 2003):
    North Carolina: Cherry Point....  T-56 Jet Engine Test          -5,942,000       -5,942,000       -5,942,000
                                       Cell.
     Greece: Larissa................  Bachelor Enlisted             -6,592,000       -6,592,000       -6,592,000
                                       Quarters.
     Iceland: Keflavik NAS..........  Combined Dining              -14,679,000      -14,679,000      -14,679,000
                                       Facility.
                                                              --------------------------------------------------
       Subtotal.....................  .......................      -27,213,000      -27,213,000      -27,213,000
                                                              ==================================================
Public Law 107-64 (FY 2002):
    California: El Centro NAF.......  Transient Quarters--Bid                0                0       -2,100,000
                                       Savings.
    Guam: Guam NSA..................  Bachelor Enlisted Qtrs--               0                0       -4,200,000
                                       Bid Savings.
     Greece: Larissa................  Bachelor Enlisted            -12,109,000      -12,109,000      -12,109,000
                                       Quarters.
                                                              --------------------------------------------------
      Subtotal......................  .......................      -12,109,000      -12,109,000      -18,409,000
                                                              ==================================================
      Total.........................  .......................     -39,.322,000      -39,322,000      -45,622,000
----------------------------------------------------------------------------------------------------------------

                    MILITARY CONSTRUCTION, AIR FORCE

                         (INCLUDING RESCISSION)

       The conference agreement appropriates $1,067,751,000 for 
     Military Construction, Air Force, instead of $896,136,000 as 
     proposed by the House and $1,056,377,000 as proposed by the 
     Senate. Within this amount, the conference agreement earmarks 
     $95,778,000 for study, planning, design, architect and 
     engineer services instead of $80,543,000 as proposed by the 
     House and $112,075,000 as proposed by the Senate. Though not 
     included in the House or Senate bills, the conference 
     agreement rescinds $23,000,000 from funds provided to this 
     account in Public Law 107-249 to reflect a classified project 
     that is no longer needed.
        Alaska--Eielson Air Force Base: Replace Working Dog 
     Kennel.--The conferees agree that within funds provided for 
     unspecified minor construction in this account, $1,400,000 
     shall be made available to construct this facility instead of 
     construction of a kennel at Elmendorf Air Force Base, Alaska 
     as proposed by the Senate.
       California--Vandenberg Air Force Base: Consolidated Fitness 
     Center.--Although the conferees were unable to fund this 
     project due to severe funding constraints, the conferees 
     recognize the importance and necessity of this facility and 
     strongly urge the Secretary of Defense to include the project 
     in the President's fiscal year 2005 budget submission for the 
     Air Force.
       Wyoming--F.E. Warren Air Force Base: Stormwater Drainage 
     System.--Although the conferees were unable to fund this 
     project due to severe funding constraints, the conferees 
     recognize the importance and necessity of this project and 
     strongly urge the Secretary of Defense to include the project 
     in the President's fiscal year 2005 budget submission for the 
     Air Force.


                  MILITARY CONSTRUCTION, DEFENSE-WIDE

              (INCLUDING RESCISSION AND TRANSFER OF FUNDS)

       The conference agreement appropriates $773,471,000 for 
     Military Construction, Defense-wide, instead of $813,613,000 
     as proposed by the House and $712,567,000 as proposed by the 
     Senate. Within this amount, the conference agreement earmarks 
     $65,130,000 for study, planning, design, architect and 
     engineer services instead of $63,884,000 as proposed by the 
     House and $70,881,000 as proposed by the Senate. The 
     conference agreement rescinds $72,309,000 from funds 
     previously provided to this account instead of $32,680,000 as 
     proposed by the House and Senate. The rescission includes the 
     following amounts:

----------------------------------------------------------------------------------------------------------------
         Public Law/location               Project title            House            Senate         Conference
----------------------------------------------------------------------------------------------------------------
Public Law 107-249 (FY 2003):
    Germany: Spangdahlem AB.........  Elementary School               -997,000         -997,000         -997,000
                                       Classroom Addition.
    Germany: Spangdahlem AB.........  Hospital Replacement...                0                0      -39,629,000
    Korea: Seoul....................  Middle School                -31,683,000      -31,683,000      -31,683,000
                                       Replacement.
                                                              --------------------------------------------------
      Total.........................  .......................      -32,680,000      -32,680,000      -72,309,000
----------------------------------------------------------------------------------------------------------------

       Chemical Demilitarization.--As proposed by the House, the 
     conferees include funding for the construction of chemical 
     demilitarization facilities in the ``Military Construction, 
     Defense-wide'' account. The budget request proposed 
     consolidating the military construction component of the 
     Chemical Demilitarization program in the ``Chemical Agents 
     Munitions Defense'' account funded in the Defense 
     Appropriations bill. In the future, the Department is 
     directed to request military construction requirements for 
     this program under the ``Military Construction, Defense-
     wide'' account.
       Energy Conservation Investment Program: Renewable Energy 
     Assessment.--The conferees direct the Department to submit a 
     final report regarding an assessment of the regional 
     potential of renewable energy generation, transmission, and 
     distribution by industry on or near Department of Defense 
     installations in the United States no later than November 30, 
     2004, instead of July 31, 2004 as proposed by the Senate.
       Energy Conservation Investment Program: Overseas 
     Projects.--Due to uncertainties regarding the future of 
     overseas facilities, the Department is directed to obligate 
     no funds from the Energy Conservation Investment Program to 
     overseas projects.


               military construction, army national guard

       The conference agreement appropriates $311,592,000 for 
     Military Construction, Army National Guard, instead of 
     $208,033,000 as proposed by the House and $304,085,000 as 
     proposed by the Senate.
       California--Sacramento: Organizational Maintenance Shop.--
     The conferees agree that within funds provided for planning 
     and design in this account, $306,000 shall be made available 
     to design this facility instead of to design a readiness 
     center as proposed by the Senate.
       Colorado--Fort Carson: Centennial Training Site (Phases II 
     and III).--Of the funds provided for planning and design in 
     this account, the conferees direct that not less than 
     $3,000,000 be made available to design this facility.
       Georgia--Hunter Army Airfield: Readiness Center.--The 
     conferees encourage the Army National Guard to include this 
     project in the fiscal year 2005 budget request instead of an 
     Army Aviation Support Facility at Hunter Army Airfield as 
     proposed by the House.
       Idaho--Gowen Field: TASS Barracks.--The conferees agree 
     that within funds provided for planning and design in this 
     account, $1,140,000 shall be made available to design this 
     facility instead of for minor construction as proposed by the 
     Senate.
       Iowa--Fort Dodge: Readiness Center.--The conferees agree 
     that within funds provided for unspecified minor 
     construction, $1,500,000 shall be made available to construct 
     this facility instead of constructing a readiness center at 
     Camp Dodge, Iowa as proposed by the Senate.
       Missouri--Fort Leonard Wood: Weapons of Mass Destruction 
     (WMD) Responder Training Facility.--Funding was allocated in 
     fiscal year 2003 to design this new training facility. Fort 
     Leonard Wood is providing individual and certification 
     training for Weapons of Mass Destruction Civil Support Teams 
     and DOD Installation Emergency Responders. There are 
     currently no dedicated facilities to provide this training. 
     Training of Chemical, Biological, Radiological, and Nuclear 
     Installation Support Teams, Rapid Response Teams, and 
     Reconnaissance and Decontamination Teams for Civil Support 
     has been

[[Page 27011]]

     directed. Construction of the facility is urgently needed to 
     continue this critical homeland security training. The 
     conferees, therefore, strongly urge the Army to advance this 
     project in the fiscal year 2005 budget request.


               military construction, air national guard

       The conference agreement appropriates $222,908,000 for 
     Military Construction, Air National Guard, instead of 
     $77,105,000 as proposed by the House and $221,013,000 as 
     proposed by the Senate.


                  military construction, army reserve

       The conference agreement appropriates $88,451,000 for 
     Military Construction, Army Reserve, instead of $84,569,000 
     as proposed by the House and $73,979,000 as proposed by the 
     Senate.


                  military construction, naval reserve

       The conference agreement appropriates $45,498,000 for 
     Military Construction, Naval Reserve, instead of $38,992,000 
     as proposed by the House and $34,742,000 as proposed by the 
     Senate.


                military construction, air force reserve

       The conference agreement appropriates $62,032,000 for 
     Military Construction, Air Force Reserve, instead of 
     $56,212,000 as proposed by the House and $57,426,000 as 
     proposed by the Senate.


     north atlantic treaty organization security investment program

                         (including rescission)

       NATO Security Investment Program (NSIP).--The conferees 
     agree to rescind $8,000,000 from prior appropriations due to 
     the slow spend out rate of the program and the recurrence of 
     carryover amounts.


                   family housing construction, army

                         (including rescission)

       The conference agreement appropriates $383,591,000 for 
     Family Housing Construction, Army, instead of $409,191,000 as 
     proposed by the House and the Senate. The conference 
     agreement rescinds $94,151,000 from funds previously provided 
     to this account instead of $52,300,000 as proposed by the 
     House and Senate. The rescissions include the following 
     amounts:

----------------------------------------------------------------------------------------------------------------
         Public law/location               Project title            House            Senate         Conference
----------------------------------------------------------------------------------------------------------------
Public Law 107-249 (FY 2003):
    Hawaii: Schofield Barracks......  Privatize Family                       0                0      -21,000,000
                                       Housing.
    Virginia: Fort Belvoir..........  Privatize Family                       0                0       -8,700,000
                                       Housing.
    Germany: Darmstadt..............  Improve 48 units.......       -4,200,000       -4,200,000       -4,200,000
    Germany: Mannheim...............  Improve 72 units.......      -10,400,000      -10,400,000      -10,400,000
    Germany: Mannheim...............  Improve 60 units.......      -10,000,000      -10,000,000      -10,000,000
    Germany: Heidelberg.............  Improve 75 units.......                0                0      -12,151,000
    Germany: Schweinfurt............  Improve 234 units......       -7,600,000       -7,600,000       -7,600,000
    Germany: Vilseck................  Improve 36 units.......       -3,900,000       -3,900,000       -3,900,000
    Germany: Wuerzburg..............  Improve 136 units......      -11,200,000      -11,200,000      -11,200,000
    Korea: Yongsan..................  Improve 8 units........       -1,900,000       -1,900,000       -1,900,000
    Korea: Yongsan..................  Replace 10 units.......       -3,100,000       -3,100,000       -3,100,000
                                                              --------------------------------------------------
      Total.........................  .......................      -52,300,000      -52,300,000      -94,151,000
----------------------------------------------------------------------------------------------------------------

       Construction Improvements.--The conferees agree to reduce 
     the amount provided for construction improvements in this 
     account by $25,600,000 to reflect savings from two projects 
     no longer required in Baumholder, Germany.


             family housing operation and maintenance, army

       The conference agreement appropriates $1,033,026,000 for 
     Family Housing Operation and Maintenance, Army instead of 
     $1,043,026,000 as proposed by the House and the Senate.
       As proposed by the House, the conferees agree that 
     operation and maintenance funds should be authorized for one 
     year rather than for two years as proposed by the Senate.


           family housing construction, navy and marine corps

                         (including rescission)

       The conference agreement rescinds $40,508,000 from funds 
     previously provided to this account instead of $3,585,000 as 
     proposed by the House and Senate. The rescission includes the 
     following amounts:

----------------------------------------------------------------------------------------------------------------
         Public law/location               Project title            House            Senate         Conference
----------------------------------------------------------------------------------------------------------------
Public Law 107-249 (FY 2003)
    California Monterey NPGS........  Privatize Family                       0                0      -18,399,000
                                       Housing.
    Hawaii Oahu.....................  Privatize Family              -3,585,000       -3,585,000       -3,585,000
                                       Housing--Bid Savings.
    United Kingdom: Saint Mawgan....  Replace 62 units.......                0                0      -18,524,000
                                                              --------------------------------------------------
      Total.........................  .......................       -3,585,000       -3,585,000      -40,508,000
----------------------------------------------------------------------------------------------------------------

    family housing operation and maintenance, navy and marine corps

       The conference agreement appropriates $835,078,000 for 
     Family Housing Operation and Maintenance, Navy and Marine 
     Corps, instead of $852,778,000 as proposed by the House and 
     the Senate.
       As proposed by the House, the conferees agree that 
     operation and maintenance funds should be authorized for one 
     year rather than for two years as proposed by the Senate.


                 family housing construction, air force

                         (including rescission)

       The conference agreement appropriates $657,065,000 for 
     Family Housing Construction, Air Force, as proposed by the 
     House, instead of $657,026,000 as proposed by the Senate. The 
     conference agreement rescinds $19,347,000 from funds 
     previously provided to this account instead of $29,039,000 as 
     proposed by the House and Senate. The rescission includes the 
     following amounts:

----------------------------------------------------------------------------------------------------------------
         Public law/location               Project title            House            Senate         Conference
----------------------------------------------------------------------------------------------------------------
Public Law 107-249 (FY 2003):         Improve Family Housing.      -19,347,000      -19,347,000      -19,347,000
 Germany Spangdahlem AB.
                                                              --------------------------------------------------
      Subtotal......................  .......................      -19,347,000      -19,347,000      -19,347,000
                                                              ==================================================
Public Law 105-237 (FY 1999):         Privatize Family              -9,692,000       -9,692,000                0
 Florida: Patrick AFB.                 Housing.
                                                              --------------------------------------------------
      Subtotal......................  .......................       -9,692,000       -9,692,000                0
                                                              ==================================================
      Total.........................  .......................      -29,039,000      -29,039,000      -19,347,000
----------------------------------------------------------------------------------------------------------------

       The House and Senate proposed rescinding $9,692,000 from 
     this account for funds no longer required for a housing 
     privatization project at Patrick Air Force Base, Florida. The 
     Department, however, transferred these funds to the Family 
     Housing Improvement Fund (FHIF) before their authorization 
     expired. The conference agreement, therefore, rescinds this 
     amount from the FHIF.


          family housing operation and maintenance, air force

       The conference agreement appropriates $816,074,000 for 
     Family Housing Operation and Maintenance, Air Force, instead 
     of $826,074,000 as proposed by the House and $834,468,000 as 
     proposed by the Senate.
       As proposed by the House, the conferees agree that 
     operation and maintenance funds should be authorized for one 
     year rather than for two years as proposed by the Senate.


         family housing operation and maintenance, defense-wide

       As proposed by the House, the conferees agree that 
     operation and maintenance funds should be authorized for one 
     year rather than for two years as proposed by the Senate.

[[Page 27012]]




         department of defense family housing improvement fund

                         (including rescission)

       As discussed in the Family Housing Construction, Air Force 
     account, the conference agreement rescinds $9,692,000 from 
     this account because it is no longer required for a housing 
     privatization project at Patrick Air Force Base, Florida.


                  base realignment and closure account

       New York--Seneca Army Depot.--The conferees expect the Army 
     to comply fully with environmental remediation and building 
     maintenance requirements as required under the BRAC process 
     at Seneca Army Depot. The conferees direct the Army to 
     provide a report to the Military Construction Subcommittees 
     by March 15, 2004, detailing the current status of cleanup at 
     Seneca Army Depot, and to include a schedule for conveying 
     the property to the local economic development authority.


                           general provisions

       The conference agreement includes general provisions 
     (sections 101-122) that were not amended by either the House 
     or Senate in their versions of the bill.
       The conference agreement includes a provision, section 123, 
     as proposed by the Senate, which requires the Secretary of 
     Defense to notify Congressional Committees sixty days prior 
     to issuing a solicitation for a contract with the private 
     sector for military family housing. The House bill contained 
     no similar provision.
       The conference agreement includes a provision, renumbered 
     section 124, as proposed by the House and the Senate, which 
     provides transfer authority from the Base Realignment and 
     Closure (BRAC) account to the Homeowners Assistance Program.
       The conference agreement includes a provision, renumbered 
     section 125, as proposed by the House, regarding funding for 
     operation and maintenance of General and Flag Officer 
     Quarters (GFOQs) to no more than $35,000 per year without 
     notification. The Senate bill contained a similar provision 
     with additional language permitting the use of gift funds 
     pursuant to 10 U.S.C. 2601 for the maintenance and repair of 
     GFOQs.
       The conference agreement includes a provision, renumbered 
     section 126, as proposed by the House and the Senate, which 
     limits funds from being transferred from this appropriation 
     measure to any department, agency, or instrumentality of the 
     United States Government without authority from an 
     appropriation Act.
       The conference agreement includes a provision, section 127, 
     as proposed by the Senate, which prohibits funds appropriated 
     for the NSIP from being obligated or expended for the purpose 
     of missile defense studies. The House bill contained no 
     similar provision. The conferees are concerned about the 
     increased use of NSIP funds to finance studies rather than 
     construction projects. The conferees, therefore, direct the 
     Department to submit written notification to the Military 
     Construction Appropriations Subcommittees 21 days prior to 
     obligating NSIP funds for any study.
       The conference agreement includes a provision, section 128, 
     as proposed by the Senate, which establishes a commission to 
     review the overseas military force structure and to provide a 
     report of its findings to the President and Congress no later 
     than December 31, 2004.
       Those general provisions not included in the conference 
     agreement are as follows:
       The conference agreement deletes the House provision 
     requiring the Secretary of Defense to certify and report to 
     Congress that the United States and the Republic of Korea 
     have entered into an agreement on the availability of land 
     before obligating or expending funds made available in the 
     bill for construction projects at Camp Humphreys, Korea. The 
     Senate bill contained no similar provision.

[[Page 27013]]

     
     


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[[Page 27034]]

                   Conference Total--With Comparisons

       The total new budget (obligational) authority for the 
     fiscal year 2004 recommended by the committee of conference, 
     with comparisons to the fiscal year 2003 amount, the 2004 
     budget estimates, and the House and Senate bills for 2004 
     follow:

                       [In thousands of dollars]

New budget (obligational) authority, fiscal year 2003.......$10,698,800
Budget estimates of new (obligational) authority, fiscal year 9,117,281
House bill, fiscal year 2004..................................9,196,000
Senate bill, fiscal year 2004.................................9,196,000
Conference agreement, fiscal year 2004........................9,316,000
Conference agreement compared with:
  New budget (obligational) authority, fiscal year 2003......-1,382,800
  Budget estimates of new (obligational) authority, fiscal year+198,719
  House bill, fiscal year 2004.................................+120,000
  Senate bill, fiscal year 2004................................+120,000

     Joe Knollenberg,
     James T. Walsh,
     Robert B. Aderholt,
     Kay Granger,
     Virgil Goode,
     David Vitter,
     Jack Kingston,
     Ander Crenshaw,
     Bill Young,
     Chet Edwards,
     Sam Farr,
     Allen Boyd,
     Sanford D. Bishop, Jr.,
     Norman Dicks,
     David Obey,
                                Managers on the Part of the House.

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

                          ____________________